Financial Overview

( in millions of JPY )

	FY2008	FY2007	Rate of Change (%)	Remarks
Sales	142,882	159,425	(10.4)	-Car production by the Company's main customer, Honda, dropped sharply in Japan and North America, pushing down the Company's sales.
Operating income	2,754	8,686	(68.3)
Ordinary income	1,434	7,426	(80.7)
Net income	(4,316)	4,151	-

Performance by region
<Japan>
-Sales to major customer, Honda, dropped.Total sales reached 56,362 million yen, down 2.8% year-on-year, as it started reporting sales to Reterra Co., Ltd. Reterra became a new subsidiary of the Company at the end of the last fiscal year. Despite the Company's cost reduction efforts, the Company reported an operating loss of 2,057 million yen, 184.2% of the loss in the previous fiscal year.

<North America>
-Sales to the major customer, Honda, dropped, pushing down the Company's regional sales by 21.7% to 63,298 million yen. Its regional operating income was 3,100 million yen, down 35.9%.

<Asia>
-F-Tech Manufacturing (Thailand) Limited has reached full operation and its regional sales were 23,220 million yen, up 12.8%. Its operating income in this region decreased 9.1% to 2,371 million yen, due to increased operation launch costs.


Activities
<Manufacturing>
-Production of the Fit for North America and Europe started.
-The Freed, Insight and Clarity were launched in Japan.

<Sales>
-Focused activities were undertaken in order to expand sales mainly to the major customer Honda.
-The Company won orders from Toyota for parts for the Highlander and from Nissan for pedal components for the next-generation Nissan models.

R&D Expenditure

( in millions of JPY )

	FY2008	FY2007	FY2006
Total	1,940	1,924	1,452

Development in FY2008
-Haga Technical Center is in charge of product design and development, research on materials and product performance tests.

-In July 2008, the Company established F-Tech R&D Philippines, Inc. in the Philippines. It cooperates with the Company's production base in the Philippines so that the company has a consistent system to locally develop and produce pedals.


R&D Achievements
-The Company developed a three dimensional type friction stir welding system, which was adopted by Honda for producing sub frames for the Honda FCX Clarity fuel cell vehicles. Mass production of the system has already started.

-For the all-new Honda Accord and Fit, the company took a consistent lead in developing and producing parts for sub frames, suspension arms and pedals. Mass production of these parts has already started.


Major Technological Support (As of Mar. 31, 2009)

Partners	Country	Type of Support	Contract Period
Cheng Yu Industry Co., Ltd.	China	Technical support dealing with manufacturing and sales	Dec.1994-Dec.1999 Yearly automatic renewal from then on
ThyssenKrupp Automotive Tallent Ltd.	UK	Technical support dealing with manufacturing and sales	June 1996-June 2009 Yearly automatic renewal from then on
Progressive Tools & Components (P) Ltd.	India	Technical support dealing with manufacturing and sales	Nov.1996- now under way
YPS Limited	Turkey	Technical support dealing with manufacturing and sales	Apr. 1, 2000- Mar. 31, 2005 Annual automatic renewal from then on
Vietnam Autoparts Co., Ltd.	Vietnam	Technical support dealing with manufacturing and sales	Dec. 27, 2005- Dec. 26, 2010
SMC Co. Ltd.	South Korea	Technical support dealing with manufacturing and sales	Apr. 4, 2006 Apr. 3, 2011 (Annual automatic renewal from then on)
Thyssenkrupp Automotive Systems Brasil Ltda	Brasil	Technical support dealing with manufacturing and sales	Sep. 27, 2005- Sep. 26, 2012

Technological Support the Company Receives (As of Mar. 31, 2009)

Partners	Country	Company name	Type of support	Details	Contract period
F-Tech F&P Mfg Inc. F&P America Mfg Inc.	Canada	TI Corporate Services Limited(Variform, Inc.)	Automotive components	Technological support dealing with pipe forming	Oct. 20, 1994- Oct. 20, 2009

Investment Expenditure

(Unit: million yen)

	FY2008	FY2007	FY2006
Investment Expenditure	12,247	14,719	14,820
Investment for new product start-up	4,474	9,593	4,032

Planned Capital Investments

Company Name Location	Segment	Planned investment (in million yen)	Start	Completion	Increased capacity after completion
F-Tech: Kuki Plant, etc. (Saitama, Japan)	Businesses related to automotive components	1,170	Apr. 2009	Mar. 2010	Facility expansion in line with launch of a new model
F-Tech: Kameyama Plant, etc. (Mie, Japan)	Businesses related to automotive components	321	Apr. 2009	Mar. 2010	Facility expansion in line with launch of a new model
F & P America Mfg., Inc. (Ohio, USA)	Businesses related to automotive components	661	Apr. 2008	Mar. 2009	Facility expansion in line with launch of a new model