Financial Overview

(in million JPY)

	FY2010 (ended Mar. 2011)	FY2009	Rate of Change (%)	Remarks
Overall
Sales	16,062	13,596	18.1	-
Operating income	1,803	746	141.7	-
Ordinary income	1,764	874	101.8	-
Net income	936	489	91.4	-
Automotive parts production business
Sales	15,135	12,799	18.3	Sales and operating profit at the automotive parts production business increased year-on-year, because the Company improved productivity, cut down on variable expenses and fix expenses, and invested heavily in affiliates overseas.
Operating income	1,601	587	172.7

New Company

China
The Company will establish a new joint venture company for production of engine valves in Guangdong Province, China and start production next year on the scale of 20 million valves a year in response to increasing local production at Japanese automakers. The joint venture, which will be established in August, will conduct comprehensive production from material fabrication to final assembly process to gain competitive edge and enhance product quality. Capitalized at about 900 million yen, the joint venture is owned 67 percent by Fuji Oozx, 25 percent by a joint venture partner of TRW Asia Pacific and 8 percent by another partner of Shin Han Valve Ind. Co., Ltd. The three-party joint venture follows engine valve production in Beijing. (From an article in the Nikkan Jidosha Shimbun on June. 30, 2010)

R&D Structure

-OOZX technical center was completed in December 2006 within the Company's Shizuoka plant.

R&D Expenses

(in million JPY)

	FY2010	FY2009	FY2008
Overall	182	192	155

R&D Activities

-The Company worked to research and develop light-weight parts and highly abrasion-resistant materials, to establish technology for manufacturing valves with high-strength materials and to enhance its research system.

Technical Agreements

1) Mutual Technical Assistance Agreements

(As of Mar. 31, 2011)

Partner	Items	Contents	Period
TRW Automotive U.S. LLC (USA)	Engine valves	Approval for non-Exclusive rights for manufacturing, sales and use	Jan. 1 1996 - (Automatic renewal)
TRW Automotive GmbH (Germany)	Engine valves	Approval for non-Exclusive rights for manufacturing, sales and use	Jan. 1 1996 - (Automatic renewal)

2) Licensor

(As of Mar. 31, 2011)

Partner	Items	Contents	Period
Wuchou Valve Industry Co., Ltd. (Taiwan)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Mar.14, 2005 - Jun. 29, 2011
Wuchou Valve Industry Co., Ltd. (Taiwan)	Cotters	Approval for exclusive rights for manufacturing, sales and use of technology	Jun. 30, 2006 - Jun. 29, 2011
Shin Han Valve Ind. Co., Ltd. (Korea)	Engine valves	Approval for exclusive rights for manufacturing, sales and use of technology	Sep. 29, 2008 - Sep. 28, 2011
TRW Fuji Serina Co., Ltd. (Thailand)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Jan. 1, 2011 - Dec. 31, 2015
TRW Fuji Valve Inc. (USA)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Sep. 15, 1988 - dissolution of JV
Shriram Pistons & Rings (India)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Dec. 5, 2005 - Dec. 4, 2012
Fuji Valve (Guangdong) Corporation (China)	Engine valves Cotters Retainers	Approval for non-exclusive rights for manufacturing, sales and use of technology	Oct. 1, 2010 - Sep. 30, 2013

Capital Expenditure

(in million JPY)

	FY2010	FY2009	FY2008
Overall	567	224	291
Automotive parts business	536	60	171

-During FY2010, the automotive parts business focused its investment activities on enhancing facilities to manufacture engine valves.

New Facilities

Facility (Location)	Facility type	Planned Investment Amount (in million JPY)	Start	Scheduled Completion
Shizuoka Factory (Kikukawa-shi Shizuoka Pref.)	Production facilities to manufacture engine valves	195	Mar. 2011	Mar. 2012
	Maintenance and renewal	189	Mar. 2011	Mar. 2012