Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	38,196	38,797	(1.5)	-
Operating income	693	947	(26.8)	-Performance was lower year-on-year due to the worsening state of profitability because of the severe price competition in developing countries.
Ordinary profit	469	637	(26.4)	-
Net profit	259	799	(67.6)	-
Transportation-equipment clutch division
Sales	28,016	29,309	(4.4)	-Even though sales were strong in China and Southeast Asian countries, sales in Japan were lower year-on-year due to the lower volumes of units that OEMs produced because of the Great East Japan Earthquake. In addition, negative currency translation also was a factor for the lower financial performance.
Operating income	464	577	(19.6)	-Operating revenue was significantly impacted by two factors: the heated price competition that was taking place in the market, and the skyrocketing prices of raw materials.

Awards

-The Company announced that its U.S.-based affiliate company Ogura Corporation has received "Ford Q1" quality certification. (From a press release on November 17, 2011)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	345	364	277
Transportation-equipment clutch division	159	-	-

R&D Activities

Transportation Equipment Business
-The Company predicts that there will be market demand for its products in connection with forecast changes being made to automobiles in the future, so is working to develop lighter, quieter, energy-efficient, and low-power clutches; torque limiters for external-control compressors; and other products.

Clutches and related products the Company is developing

• Super-charger clutches
• Sliding-door clutches
• Power-rear-door clutches
• Power-luggage door clutches
• Diff-lock clutch brakes
• Water-pump clutches

Other products the Company is developing

• Superchargers designed for supercharged engines
• Air-pumps for regeneration devices with filters designed to remove diesel-engine exhaust gas.
• Air-pumps and hydrogen pumps for fuel cells

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Transportation-equipment clutch division	343	248	561

Transportation Equipment Business
-The Company made capital improvements to its Akabori and Kohbayashi Plant to enhance and rationalize the production facilities and equipment and make them environmentally compliant, in addition to investing in dies needed for its various products.

Investment Outside Japan

<China>
-The Company announced that its affiliate in China, Ogura Clutch (Dong Guan) Co., Ltd., has completed the expansion of its floor space to 3,945 square meters with the aim of increasing its production capacity, which will boost annual production capacity of clutches from 1.5 million to 2.5 million pieces per year. The clutch supplier has already started volume production since mid October. (From a press release on November 8, 2011)

Planned Capital Investments (Transportation-equipment clutches)

(As of Mar. 31, 2012)

Name (Location)	Planned total investment (in million JPY)	Starting month	Planned completion	Capacity increase upon completion
Plant No.1, Plant No.2 (Kiryu-shi, Gumma Pref., Japan)	114	Apr. 2012	Mar. 2013	Practically none, as this is to improve product quality
Plant No.3 (Gumma Pref., Japan)	66	Apr. 2012	Mar. 2013	Practically none, as this is to improve product quality
Akabori Plant (Gumma Pref., Japan)	306	Apr. 2012	Mar. 2013	Practically none, as this is to improve product quality
Kohbayashi Plant (Gumma Pref., Japan)	191	Apr. 2012	Mar. 2013	Practically none, as this is to improve product quality
Ogura Corporation Head office plant (Michigan, USA)	36	Jan. 2012	Dec. 2012	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch do Brasil Ltda. Head office plant (Sao Paulo, Brazil)	25	Jan. 2012	Dec. 2012	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch (Dong Guan) Co., Ltd. Head office plant (Guangdong, China)	185	Jan. 2012	Dec. 2012	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch Thailand Co., Ltd. Head office plant (Rayong, Thailand)	442	Jan. 2012	Dec. 2012	An increase will be achieved, as this project is to add new facilities