Oiles Corp. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	44,490	51,414	(13.5)	-
Operating income	3,117	4,103	(24.0)	-
Ordinary income	3,616	3,915	(7.6)	-
Net income	2,568	1,640	56.5	-
Bearings business
Sales	27,474	30,937	(11.2)	-Although the Company strengthened its efforts to win new orders from both Japanese and non-Japanese manufacturers, as well as develop new uses for its products, sales and operating income in the automotive sector decreased.
Operating income	1,863	2,318	(19.6)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Group	2,229	2,635	2,566
% of Sales	5.0%	5.1%	4.4%

-In FY2009, the number of people in charge of research and development is 182.

R&D Activities

Bearings business
-The Company developed plastic bearings for automobile cabins. These bearings produce less volatile organic compounds. The Company also developed one-way seat dumpers that achieve both easy operability and safety.

Investment Activities

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Group	1,235	3,049	3,130
Bearings business	1,006	2,387	2,243

New Bearing Facilities

(As of Mar. 31, 2010)

Company or Office	Purpose of Investment	Planned amount (in millions of JPY)	Construction start	Planned completion
Fujisawa office Research facility etc.	Renewing experimental and research facilities Improving production capacity	1,085	June, 2007	June, 2011
Fujisawa office Facility for producing plastic bearings	Renewing production facility; Streamlining operations, etc.	279	Dec. 2009	Mar. 2011
Fujisawa office Facility for producing metal bearings	Renewing production facility; Streamlining operations, etc.	26	Apr. 2010	Mar. 2011
Yamato plant Facility for producing metal bearings	Renewing production facility; Streamlining operations, etc.	23	Apr. 2010	Mar. 2011
Oita plant Facility for producing metal bearings	Renewing production facility; Streamlining operations, etc.	541	Jan. 2010	Mar. 2011
Shiga plant Facility for producing bearings etc.	Renewing production facility; Streamlining operations, etc.	460	July, 2007	Mar. 2011
Oiles America Corporation	Renewing production facility; Streamlining operations, etc.	144	Apr. 2009	Apr. 2010
Oiles Czech Manufacturing s.r.o.	Renewing production facility; Streamlining operations, etc.	97	July, 2010	Dec. 2010
UniPra Co., Ltd.	Renewing production facility; Streamlining operations, etc.	62	Apr. 2010	Mar. 2011
Other subsidiaries	Renewing production facility; Streamlining operations, etc.	132	Dec. 2007	Dec. 2010