Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	8,040	6,602	21.8	- Overall sales increased year-on-year, thanks to growth in revue at each division. Business was supported by recovery in demand at home and abroad and the expansion of the gas device market.
Operating income	566	(979)	-	- The Company returned to profitability because of increased sales and reduced cost as a result of its improving and streamlining operations.
Ordinary income	395	(1,072)	-
Current net income	317	(845)	-
Automotive device business
Sales	1,128	1,072	5.2	- Sales at the automotive device division increased year-on-year, thanks to growth in sales of carburetors.
Operating income	93	(142)	-	-
Gas device business
Sales	3,010	2,276	32.2	- Sales of gas devices increased year-on-year. Some of the major reasons for the rise were a recovery in sales of fuel injection system devices and industrial equipment in Korea, as well as an increase in sales of fuel injection systems in Asia.
Operating income	96	(596)	-	-

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	83	172	166

R&D Activities

Gas appliance business
- Development activities in the area of gas appliances were focused on electronic fuel injection systems for CNG vehicles and LPG vehicles. The Company also developed electronic control technology for these products.  
- R&D spending at the Gas Appliance business totaled 44 million yen.

Automotive device business
- The Automotive Device Division developed high-pressure pumps for dimethyl ether (DME) and other alternative fuels.
- R&D spending at the Automotive Device business totaled 10 million yen. 

ECU
-The Company is conducting R&D activities in response to new generation microcomputers, modeling, new control concept and downsizing.

-The Company is working on R&D activities that respond to exhaust emissions regulations worldwide, as well as on OBD (On Board Diagnosis) II. In addition it is involved in developing fuel application technology that responds to customer requirements.

Capital Investment

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	273	741	625
Automotive device business	3	24	81
Gas device business	135	548	196

-The Company focused investment on products and R&D areas expected to provide growth in the long term. It also made investments in labor savings, work rationalization and improved product liability.

Automotive device business
-The Company made capital investments in streamlining production.

Gas appliance business
-The Company invested in facilities and equipment corresponding to new models and more streamlined production.

New Facilities

(As of Mar. 2011)

Site Name	Location	Segment	Purpose	Planned investment (million JPY)	Start	Planned completion
Atsugi Plant	Atsugi city, Kanagawa Pref.	Automotive device business	To streamline manufacturing facilities, etc.	3	Apr. 2011	Mar. 2012
		Automotive device business, Gas device business, General-purpose carburetors (General-purpose equipment business)	To streamline manufacturing facilities, etc.	51	Apr. 2011	Mar. 2012