Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	58,733	55,344	6.1	-
Operating income	7,089	6,362	11.4	-
Ordinary income	7,302	6,769	7.9	-
Net income	4,294	3,706	15.8	-
Bearings business
Sales	37,308	34,905	6.9	-Sales to automakers steadily increased, surpassing an increase in domestic auto production. This was due to a rise in new orders and robust demand for knockdowns assembled outside Japan. On the global market the Company enjoyed greater growth than in the Japanese market. This is attributed to increased output by Japanese automakers and expansion of business with carmakers outside Japan.
Operating income	5,249	5,074	3.4

Recent Developments Overseas
<Europe>
-Oiles Czech Manufacturing s.r.o., the Company's production and supply base in Europe, completed expansion work to deal with an increase in demand by carmakers in March 2008.


<Thailand>
-Oiles (Thailand) Company Limited, the Company's production and supply base in Thailand, began construction of a new plant to meet brisk demand by automakers. The new plant will be completed in September 2008, increasing its production capacity.

>>>See Investment for more details

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Group	2,566	2,447	2,296
% of Sales	4.4%	4.4%	4.4%

-The number of people in charge of research and development is 155.

Status of R&D on bearings
-Developed rack bushings and rubber spring units used in automotive steering systems.

-Developed a unit enabling tuning to meet demands by automakers to improve steering feeling.

Capital Investment

(in millions of JPY)

	FY2007	FY2006	FY2005
Group	3,130	2,500	2,807
Bearings business	2,243	2,216	2,187

Overseas Investment
-The Company announced that it will move and expand the plant belonging to Oiles (Thailand) Co., Ltd., its production subsidiary in Thailand, to meet the increased demand for automotive products. The Company plans to acquire land & building in the premises of AMATA Industrial Park, Payong, where the existing plant is located. With a total investment of 500 million yen, the new site is slated to start production in September 2008. Oiles (Thailand), at its new site, is expected to achieve annual sales of 1.32 billion yen in FY2010. (From a press release on Feb. 27, 2008)

New facilities (Bearing-related)

(in millions of JPY)

Location	Type of facility	Planned amount	Construction start	Planned completion
Fujisawa office Research facility etc.	Renewal of experimental and research facilities Improving production capacity	622	Apr., 2008	Mar., 2009
Fujisawa office Production facility for plastic bearings	Production facility renewal Streamlining etc.	373	Apr., 2008	Mar., 2009
Fujisawa office Production facility for metal bearings	Production facility renewal Streamlining etc.	17	Apr., 2008	Mar., 2009
Yamato plant Production facility for metal bearings	Production facility renewal Streamlining etc.	113	Apr., 2008	Mar., 2009
Ohita plant Production facility for metal bearings	Production facility renewal Streamlining etc.	298	Apr., 2008	Mar., 2009
Ashikaga office Research facility etc.	Renewal of experimental and research facilities Product capacity improvement	86	Apr., 2008	Mar., 2009
Shiga office Production facility for bearings etc.	Production facility renewal Streamlining etc.	393	Apr., 2008	Mar., 2009
Oiles America Corporation	Productivity improvement, product facility renewal, streamlining	231	Jan., 2008	Dec., 2008
Oiles Czech Manufacturing S.R.O.	Productivity improvement, product facility renewal, streamlining	669	Jun., 2007	Dec., 2008
Oiles (Thailand) Co., Ltd.	Productivity improvement, product facility renewal, streamlining	474	Jan., 2008	Dec., 2008
Other subsidiaries	Productivity improvement, product facility renewal, streamlining	246	Jan., 2008	Mar., 2009