Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change(%)	Factors
Overall
Sales	84,681	92,943	(8.9)	-Despite steady growth in Asia, especially in China, sales were affected by declining production volumes at customers in Japan, North America and Europe.
Operating income	2,636	(2,213)	-	-
Ordinary income	2,294	(3,600)	-	-
Current net income	1,180	(3,720)	-	-
Steering parts business
Sales	40,365	42,386	(4.8)	-
Operating income	1,460	(2,343)	-	-
Seat parts business
Sales	30,102	33,678	(10.6)	-
Operating income	506	(97)	-	-
Shifter parts business
Sales	6,128	7,144	(14.2)	-
Operating income	642	99	545.7	-
Engine parts business
Sales	5,120	5,301	(3.4)	-
Operating income	249	102	144.1	-
Parts for large vehicles business
Sales	817	1,338	(38.9)	-
Operating income	(78)	54	-	-
Other automotive components business
Sales	716	1,063	(32.6)	-
Operating income	(3)	(37)	-	-

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,230	1,528	1,301
Automotive Parts Division	1,199	1,491	1,238
-Steering parts business	477	581	453
-Seat parts business	427	573	514
-Shifter parts business	149	139	117
-Engine parts business	112	136	101
-Parts for large vehicles business	107	34	29
-Other Automotive Parts	104	26	21

-A total of 319 staff members conducted R&D; some of these staff members are engaged in trial manufacturing and experiments. Of these, 314 staff members worked in the automotive parts business.
-Industrial property rights owned by the Company as of March 2010 are all concerned with its automotive parts business and number 312 in total.

R&D Activities

Steering parts business
-The Company is working to reduce product costs and weight while trying to improve safety and product appeal. It will do this by improving the level of plastic forming technologies it uses. It plans to achieve this by reaching the required level of functions and performance demanded for steering columns by utilizing the most optimal mechanisms and designs.
-The Company is addressing the issues and needs surrounding globalization; enhancing its framework for conducting development activities in three regions (Japan, Europe, and the U.S.A.); and improving its competitive edge and product lineup by taking customer demand in the U.S.A. and Europe into consideration.
-The Company is jointly developing future technologies and products with automakers and system manufacturers to improve running performance.
-The Company conducted joint development activities with JTEKT Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, ways to reduce development time.

Seat parts business
-The Company worked on developing functional core components and systems used in seats, such as seat recliners, height adjusters and slides. In response to the growing needs for environmental measures, safety, and comfort, the Company is engaged in reducing the size, weight and cost of products, as well as improving their strength and functions in addition. It is also developing products that can satisfy the seating layouts used in RV vehicles, hoping to improve their  usability so as to satisfy increasingly diverse customers' demands.
-The Company conducted joint development activities with Tach-S Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, improvement of development speed.

Shifter parts business
-The Company is developing mass-marketed shifters in order to reduce both their cost and weight. It plans to achieve this by optimizing the design of automatic transmission shifters, which will lead to improving the Company's competitive edge.
-The Company is also improving product performance in terms of optimizing both feel and maneuverability, which also encompasses operational handling and noise.
-The Company is developing products that can respond to future size reductions.

Engine parts business
-The Company continues to work on engine drive components such as pulleys and drive plates, which are products it is developing in various shapes in response to the needs for processing sheet-metal in the market. The Company plans to achieve this by utilizing several of its proprietary technologies such as plastic forming and product analysis, which include the processes for adding thickness and forming slots on boards.

Parts for the large-vehicles business
-In focusing on components used in both manual and automatic transmissions, the Company is developing products based on customers' specifications.

Technical Transfer Agreements (Inward)

(As of Mar. 31, 2010)

Country	Licensor	Content	Period
German	Keiper GmbH&Co.	Production technology for seat reclining mechanism and head-rest adjusters	1987.09.25 - 2010.12.31 (automatic renewal)
		Patent license for wedge-type seat reclining mechanism	1997.04.18 - 2010.12.31 (automatic renewal)
Germany	Winkelman Pannhoff GmbH	Production technology for one piece drive-plates	1996.01.29 - 2011.01.28 (automatic renewal)
Liechtenstein	ThyssenKrupp Presta AG	Patent cross license agreement for steering columns	2007.07.30 - 2017.04.17

* The agreement with ThyssenKrupp Presta AG includes the following technical licensing agreements.

Technical Licensing Agreements (Outward)

(As of Mar. 31, 2010)

Country	Licensee	Content	Period
Taiwan	Taiwan Atsugi Co., Ltd.	Production technology for steering column	1992.10.06 - 2009.10.05 (automatic renewal)
Taiwan	Joyu-Fuji Machinery Co., Ltd.	Production technology for A/T device, M/T linkage and pulley	1996.10.08 - 2009.10.07 (automatic renewal)
Malaysia	Auto Parts Manufacturers Co. SDN BHD	Production technology for seat reclining devices and sheet lifters	5 years from 2003.03.25 (automatic renewal)
China	Shye Fu Koyo (Xiamen) Mechanical Industry Co., Ltd.	Production technology for steering columns	From 2005.12.1 (automatic renewal)
USA	Douglas Autotech Corporation	Production technology for steering columns and automatic transmission devices	Five years from April 1, 2006 or the production life of the specific vehicle models
USA	Fuji Autotech U.S.A L.L.C.	Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms	Five years from April 1, 2006 or the production life of the specific vehicle models
Czech	Fuji Koyo Czech s.r.o.	Production technology for steering columns and intermediate shafts	Five years from April 1, 2006 or the production life of the specific vehicle models
France	Fuji Autotech France S.A.S.	Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms	Five years from April 1, 2006 or the production life of the specific vehicle models
Indonesia	PT. Autotech Indonesia	Production technology for steering columns and intermediate shafts	Five years from April 1, 2006 or the production life of the specific vehicle models
China	Fuji Autotech Guangzhou Co., Ltd.	Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms	Nine years from Jan. 1, 2007
Thailand	Summit Fujikiko Kurata Manufacturing Co., Ltd.	Production technology for steering columns and intermediate shafts	Five years from Jan. 1, 2007 or the production life of the specific vehicle models
India	Sona Fuji Kiko Automotive Ltd.	Production technology for steering columns and intermediate shafts	Seven years from Feb. 28, 2008 or the production life of the specific vehicle models
Taiwan	Hsin Chong Machinery Works Co., Ltd.	Production technology for seat reclining devices	Five years from Mar. 18, 2008 or the production life of the specific vehicle models

Capital Investment

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,488	3,587	9,581
Automotive Parts Division
-Steering parts	634	2,343	6,086
-Seat parts	595	617	1,286
-Shifter parts	N.A.	-	1,590
-Other Automotive Parts	258	627	618

-The Company made capital investments in the auto parts business specifically in the areas of steering systems and seats. The investments were mainly for improving its production structure so as to manufacture new products in response to new orders and model changes.

New Facilities (automotive parts production facilities)

(As of Mar. 31, 2010)

Company Name	Location	Business	Planned investment (million JPY)	Start	Completion	Production capacity increase on completion
Fuji Kiko Co., Ltd. Washizu Plant	Shizuoka Pref., Japan	Seat parts Engine parts	1,179	2008.7	2011.3	No change
Fuji Kiko Co., Ltd. Nii Plant	Shizuoka Pref., Japan	Steering wheel parts	252	2009.3	2011.3	No change
Fuji Kiko Co., Ltd. Honjo Plant	Saitama Pref., Japan	Shifter parts Parts for large vehicles	113	2009.2	2011.3	No change
Fuji Autotech France S.A.S	Beaulieu, France	Steering parts	250	2010.1	2010.12	No change
Fuji Koyo Czech s.r.o.	Plzen, Czech	Steering parts	186	2010.1	2010.12	No change

Facility Upgrade (automotive parts production facilities)

(As of Mar. 31, 2010)

Company Name	Location	Business	Planned investment (million JPY)	Start	Completion	Production capacity increase on completion
Fuji Kiko Co., Ltd. Nii Plant	Shizuoka Pref., Japan	Steering wheel parts	106	2010.2	2011.3	No change