Oiles Corp. Business Report FY2008

Business Highlights

Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	51,414	58,733	(12.5)	-Sales and income decreased despite the Company's consistent efforts to reduce costs in all its divisions. These efforts included reducing production costs and amending product prices in response to rises in material prices.
Operating income	4,103	7,089	(42.1)
Ordinary income	3,915	7,302	(46.4)
Net income	1,640	4,294	(61.8)
Bearings business
Sales	30,937	37,308	(17.1)	-Sales and income decreased, although the Company enhanced its activities to acquire new orders for automotive parts from Japanese and foreign automakers as well as to develop new uses for existing products.
Operating income	2,318	5,249	(55.8)

R&D

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Group	2,635	2,566	2,447
% of Sales	5.1%	4.4%	4.4%

-The number of people in charge of research and development is 166.

R&D Activities
-The Company developed a new-type strut bearing unit for automotive suspension equipment, achieving cost and weight reduction, component integration, improvement in steering operation feel, etc.

Investment Activities

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Group	3,049	3,130	2,500
Bearings business	2,387	2,243	2,216

New Facilities (Bearing-related)

Location	Type of facility	Planned amount (in millions of JPY)	Construction start	Planned completion
Fujisawa office Research facility etc.	Renewal of experimental and research facilities Improving production capacity	720	Apr. 2009	Mar. 2010
Fujisawa office Production facility for plastic bearings	Production facility renewal Streamlining etc.	309	Nov. 2005	Mar. 2010
Fujisawa office Production facility for metal bearings	Production facility renewal Streamlining etc.	10	Apr. 2009	Mar. 2010
Yamato plant Production facility for metal bearings	Production facility renewal Streamlining etc.	48	Apr. 2009	Mar. 2010
Ohita plant Production facility for metal bearings	Production facility renewal Streamlining etc.	445	Dec. 2009	Mar. 2010
Shiga plant Production facility for bearings etc.	Production facility renewal Streamlining etc.	487	May,. 2007	Mar. 2010
UniPra Co., Ltd.	Production facility renewal, Streamlining etc.	408	Sep. 2008	Mar. 2010
Riko Kihara Co., Ltd.	Production facility renewal, Streamlining etc.	165	Apr. 2009	Oct. 2009
Oiles America Corporation	Production facility renewal, Streamlining etc.	142	Jan. 2009	Dec. 2009
Other subsidiaries	Production facility renewal, Streamlining etc.	253	Oct. 2008	Mar. 2010