Financial Overview

(in millions of JPY)

	FY2010 (ended Mar. 2011)	FY2009	Rate of Change (%)	Remarks
Overall
Sales	78,656	70,442	11.7	-
Operating income	2,902	1,455	99.5	-
Ordinary income	3,040	1,901	59.9	-
Net income	2,036	349	483.4	-
Automotive Component Business
Sales	69,759	63,396	10.0	-
Operating income	7,037	6,193	13.6	-

 

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

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,496	1,499	1,465
Automotive parts business	2,398	1,419	1,428

R&D Structure

-The Company set up its R&D structure so that it can address diverse issues under a consolidated framework consisting of several divisions such as the basic research division dealing with tripology (friction/wear/lubrication technology) and other themes; the product development division; and the production technology development division, all working at the  Main Technology Building.
-In addition to the above, the Company also has a friction technology research center, an engine experiment center, and a production technology development center.

R&D Activities

Automotive Parts Business
1. Bearing Business:
-The Company was successful in producing engine bearings that are compatible with high performance engines; special bearings that are used in compressors; and also various other types of bearings.

-The Company's lead-free bearings, which are being equipped on environmentally friendly hybrid engines, are recognized as being highly reliable due to the RA coating that can respond to frequent starts and stops. Also, the company is supplying them to a larger number of new customers in Japan as well as to auto-manufacturer customers outside Japan, working to expand its business worldwide.

-The Company successfully reduced the number of processes required to produce bearings by 40%. During FY2011, the Company is actively working to maintain the cost advantages at its plants in Japan. Later, it will then do so outside Japan.

2. Die-casting products

-In the die-cast product sector, the Company successfully was able to optimize cold-flow and heat-flow processes through CAE making use of very efficient thin-wall molding technology and non-mechanical processes, succeeding in making its products lighter in weight.  The Company is meeting its customers' needs by supplying them products that are not only higher in precision but also lower in cost.

-The Company is working in collaboration with its customers to develop new types of cam-housings, making use of simultaneous engineering.

3. Electronics assembly business
-The Company developed, and has started mass producing, electronically controlled EGR valves that ensure a high degree of precision as well as a generous amount of flow, complying with the New Long-term Gas Emission Regulations for Commercial Vehicles that went into effect in October 2005. And in October 2010 in the U.S.A., the Company began commercial production of EGRs that comply with the 2010 Exhaust Gas Regulations that went into effect in the U.S.A. The Company has won Technical Development Awards for two consecutive years from Nissan.

-The Company developed, and has started commercial production of, a new-type vacuum pump, which is capable of generating negative pressure and can be equipped on engines with totally renewed air-intake systems, which are the types of engines currently in compliance with environmental standards.

4. Balance weight business
-The Company commercialized lead-free balance weights. It was successful in developing lead-free, clip-on balance weights like those being used in overseas markets.

-The Company also started commercial production of stick-on balance weights.

5. Gasket business
-In working on metal head gaskets for engines, the Company collaborated closely with its customers by making use of the CAE technology and expertise that Nippon Gasket Co., Ltd. (its consolidated subsidiary) has. 

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,456	1,890	7,193
Automotive Parts Business	2,391	1,654	7,468

Automotive Parts Business

 -The Company made capital investments to produce new products and update production facilities.

-The Company made capital investments to prepare facilities for producing new products and update facilities at its consolidated subsidiaries in Japan. The Company invested mainly in die-cast production facilities at its major subsidiary, Taiho Gifu Co., Ltd.

-The Company made capital investments to increase the production capacities at facilities located at its consolidated subsidiaries in Asia. Mainly, the Company invested at its major subsidiary, Taiho Kogyo Corporation of Yantai, to construct a new plating plant in order to increase the production capacity  of die-cast products.

New Facilities (Automotive Parts Business)

-The Group plans to invest 7.0 billion yen in FY2011, which ends on March 31, 2012. The breakdown of major investments is as follows.

Plant	Facilities to be built	Planned investment (in thousand JPY)	Objective
Taiho Kogyo Co., Ltd. Headquarters and Headquarters plant (Aichi Pref., Japan)	Production facilities to manufacture die casting products, etc.	145,900	Respond to switching over to producing new products, and maintain and renew facilities
Taiho Kogyo Co., Ltd. Hosoya plant (Aichi Pref., Japan)	New structures	400,000	Expand operations and increase production capacity
	Production facilities to manufacture bearings, etc.	472,750	Maintain and renew facilities
Taiho Kogyo Co., Ltd. Shinohara plant (Aichi Pref., Japan)	Production facilities to manufacture assembly products	233,800	New products
Taiho Kogyo Co., Ltd. Kyushu plant (Kagoshima Pref., Japan	Production facilities to manufacture bearings, etc.	117,500	New products
Taiho Kogyo Co., Ltd. Koukai plant (Aichi Pref., Japan)	Production facilities to manufacture bearings, etc.	237,891	Maintain and renew facilities
Taiho Seiki Co., Ltd. Headquarters and Headquarters plant (Aichi Pref., Japan)	New production plant structures	496,000	Make fundamental capital investments
TET Co., Ltd. Kasugai plant (Aichi Pref., Japan)	Processing facilities	30,000	Expand operations and increase production capacity
Taiho Gifu Co., Ltd. Headquarters and Headquarters plant (Gifu Pref., Japan)	Production facilities to manufacture bearings, etc.	384,000	Expand operations and increase production capacity
Nippon Gasket Co., Ltd. Shiga Plant (Shiga Pref., Japan)	Production facilities to manufacture gasket products	165,000	Respond to new-product production
Taiho Corporation of America Headquarters and Headquarters plant (Ohio, USA)	Production facilities to manufacture bearings, etc.	485,000	Respond to switching over to producing new products, and maintain and renew facilities
	Facilities (remodeling work)	31,000	Rationalize operations
PT. Taiho Nusantara Headquarters and Headquarters plant (Karawang, Indonesia)	Production facilities to manufacture bearings, etc.	119,000	Respond to switching over to producing new products, and maintain and renew facilities
Taiho Corporation of Europe Headquarters and Headquarters plant (Ujhartyan, Hungary)	Production facilities to manufacture bearings, etc.	55,000	Increase. maintain, and rationalize production capacity
Taiho Corporation of Korea Headquarters and Headquarters plant (Daegu, Korea)	Production facilities to manufacture bearings, etc.	75,000	Increase. maintain, and renew production capacity
Taiho Kogyo Corporation of Yantai Headquarters and Headquarters plant (Yantai, China)	Production facilities to manufacture bearings, etc.	380,000	Increase production capacity