Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)	Factors
Overall
Sales	41,543	29,440	41.1	-
Operating income	3,372	459	634.6	-
Ordinary income	3,328	532	525.5	-
Current net income	1,671	681	145.3	-

Highlights for FY2010
1) New programs
The Company won a number of new programs especially from overseas as a result of its vigorous marketing activities targeted at truck manufacturers, construction/ industrial machinery manufacturers, and engine suppliers at home and abroad.

2) Cost reduction
The Company made all-out efforts to reduce materials costs and expenses based on a cost-cutting target of 20 percent.

3) Development of low-priced products and eco friendly products
The Company's development division focused on developing low-priced products for the emerging markets as well as environmentally friendly products that offer enhanced fuel economy, while presenting the new technologies to truck makers and construction/industrial machinery manufacturers.

4) Expanding business overseas
The Company worked on increasing local procurement and production at its overseas subsidiaries and affiliates in Thailand, China and India so as to meet growing demand for commercial vehicles especially in China and India.

Sales and profit by region
(Japan)
Thanks to production recovery at Japanese truck manufacturers, sales of automotive components increased 41.8 percent year-on-year to 34,412 million yen, while operating profit surged 392.3 percent year-on-year to 3,254 million yen.

(Asia)
Due to the economic recovery in Thailand, China and other countries, sales rose 50.2 percent year-on-year to 9,010 million yen, while operating profit went up 89.6 percent year-on-year to 1,221 million yen.

(North America)
Despite the Company's vigorous efforts to win new business, sales decreased due to a production cutback at its customers. Sales were 341 million yen, down 30.4 percent from the previous year's result, and operating loss reached 170 million yen (operating loss for FY2009 was 169 million yen).

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Group	1,007	837	848
Brake production facilities	510	425	492
Engine Components	496	331	303
Other divisions	-	80	53

-R&D expenditure on new product development amounted to 35 million yen in FY 2010.

R&D Section

-The following departments are engaged in R&D activities: No. 1 Development Dept., No. 2 Development Dept., New Products Development Dept. and the Experiment Department.
-The R&D activities are promoted by No.1 Development Dept., No.2 Development Dept., New Products Development Dept. and the Experiment Department.
-The Group has a total of 73 researchers, which account for about 5.2 percent of its entire workforce.

Brake Business
-An increasing number of the Company's air wedge drum brakes, which all Japanese OEMs are  installing, are being equipped on more vehicle models produced by both Japanese and non-Japanese OEMs.
-The Company's next-generation brake, which is an air-disk brake, is now being developed as a module. The Company is now working on creating proprietary pads, rotors and other parts, and preparing for future applications.
-The Company is conducting research and development activities, which are focusing on safer, environmentally friendly, and energy-saving products, accumulating its technology and passing it on to engineers for the future.

Engine Components
-The company promoted the improvement and development of water and oil pumps for engines of small, medium, and heavy-duty vehicles and buses.
-The company developed water and oil pumps for engines of domestic OEMs which meet the new long term exhaust emission regulations.

Other divisions
-The use of retarder has expanded for medium, and heavy-duty vehicles and buses, as it is regarded as a suitable device for engines designed to meet the exhaust emission regulations.
-The Company worked on enhancing its product mix of retarders, in addition to increasing the number of vehicle models on which they can be adopted.

Licensing of Technology from Other Companies

(As of Mar. 31, 2011)

Name of the contractor	Country	Contract item	Contract coverage	Contract period
Arvin Meritor Corp.	U.S.A.	Brake parts for large trucks	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	From March 8, 1991 to March 6, 2011

Licensing of Technology to Other Companies

(As of Mar. 31, 2011)

Name of the contractor	Country	Contract item	Contract coverage	Contract period
TBKK (Thailand) Co., Ltd.	Thailand	Automotive brakes, camshafts, oil pumps, water pumps	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	Mar. 29, 1990 - 10 years from sales launch (then automatic extension every year)
Sangsin Brake Co., Ltd.	Korea	Brakes for large vehicles	Same as above	Jan. 14, 1994 10 years from mass production starting date (then automatic extension every year)
TBK India Private Ltd.	India	Water pumps and oil pumps for automobiles	Same as above	June 28, 1998 7 years from mass production starting date (then automatic extension every year)
GSB-TBK Automotive Components, S.L.	Spain	Same as above	Same as above	June 7, 2000 10 years from mass production starting date (then automatic extension every year)
Full Win Developments Ltd.	China	Brake linings	Same as above	Aug. 1, 2002 10 years from the effective date (then automatic extension every year)
Hangzhou TBK-APG Brakes Co., Ltd.	China	Same as above	Same as above	July 30, 2003 10 years from mass production starting date (then automatic extension every year)
Chang chun TBK Shili Auto Parts Co., Ltd.	China	Friction materials for brakes used in commercial vehicles	Same as above	Dec.22, 2005 10 years from mass production starting date (then automatic extension every year)
TBK America, Inc.	USA	Water pumps and oil pumps for automobiles	Same as above	Nov. 15, 2006 10 years from the initial payment date (then automatic extension every year)
Chang'an TBK Co., Ltd.	China	Brake linings	1. To approve use of TBK brand 2. To support improve the quality of linings 3. To support its product development projects	From Jan. 1, 2010, through Dec 31, 2010
Sangsin Brake Co., Ltd.	Korea	Electromagnetic retarders	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	From Sep. 30, 2010 10 years from mass production starting date (then automatic extension every year)

Capital Investment

(in millions of JPY)

	FY2010	FY2009	FY2008
Japan	1,068	-	-
-Brake production facilities	512	-	-
-Pump production facilities	180	-	-
Asia	209	-	-
North America	18	-	-
Automotive Components	1,296	1,490	3,404

Major investment projects
Japan: 512 million yen for engine component business, 180 million yen for brake business
Asia: 140 million yen for engine component business