IKUYO CO., LTD. Business report FY2008

Business Highlights

Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	14,446	20,464	(29.4)	-Sales and income decreased due to a sharp global decline in production volume. This was despite the Company's efforts to reduce costs through reexamination of all costs and expenses including cuts in workforce and wages.
Operating income	(451)	548	-
Ordinary income	(684)	252	-
Current net income	(760)	134	-
Automotive component business
Sales	14,121	19,826	(28.8)	-

Recent Developments
-The Company announced its intention to temporarily close its Yamaguchi Hikari Plant as of March 31, 2009. The business has been hard hit by lower order volumes since the beginning of the second half of FY2009. Consequently, a part of production at the plant, which is located in Hikari City, Yamaguchi, will be transferred and consolidated into its Okayama Plant. (From a press release on Jan 30, 2009)

R&D

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	2	7	16

Introduction of Technology (As of Mar. 2009)

Partner	Country	Items in Contract	Terms of Contract	Length of Contract
Idemitsu Petrochemical Co., Ltd.	Japan	Sales and manufacture of technology to produce hollow injection molding	Patent permission	From February 14, 1995 until expiration of the patent