Financial overview

( in millions of JPY )

-	FY2008	FY2007	R. C. (%)	Factors
Overall
Sales	271,510	283,370	(4.2)	Sale decreased resulting from the decreased production of customers due to global recession and the impact of foreign exchange fluctuation.
Operating income	2,409	13,663	(82.4)	The revenues decreased due to the decreased materials prices, the impact of foreign exchange fluctuation, the increased production and increased cost to supply new models in the first half, and the impact of decreased production in the second half.
Ordinary profit	(1,137)	14,254	-
Current net income	(11,609)	6,597	-
Automotive components
Sales	259,628	278,195	(6.7)	-
Operating income	11,881	13,006	(8.6)	-

( R.C. : Rate of Change ) Highlights by region (Automotive business)

Japan
- Revenues decreased due to shrinking of the automotive market and decreased export.

The Americas
<USA>
- While there was some impact due to shrinking of the automotive market, revenues increased thanks to the effects of a new model launch and sales promotion. However, the yen-equivalent revenue decreased due to the impact of foreign exchange translation.

<Canada>
- Revenues decreased due to amendment of purchased parts prices and decreased sales of suspension subassembly, resulting from a decrease in sales.


Europe
<UK>
- While revenues increased thanks to increased sales of automotive parts due to the introduction of new models, the yen-equivalent revenues decreased because of foreign currency translation.

South East Asia
<Indonesia>
- Revenues increased thanks to increased sales of automotive parts, such as drive system parts, supported by strong customers sales.
<Thailand>
- The revenues increased thanks to the increased sales of automotive parts supported by strong customers sales.

Other regions
<China>
- Supported by a strong automotive market and driven by the positive effects of its customer's new model launch, sales figures increased with increased sales of automotive shock absorbers and power steering.

R&D Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Automobile parts	6,341	6,895	6,738
Others	142	220	223
Total	6,484	7,116	6,962

-The expansion plan of its automotive development center in Tochigi prefecture was reviewed, including postponed construction of part of its research building.

Automobile parts business:
- The Company improved the competitive edge of its existing products by reducing cost through specification amendment and other measures.
- The Company enhanced its research and development capabilities, including an evaluation of conformity to material requirements that supports local procurement of materials from a technical point of view.

Capital Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Automobile parts	29,062	20,791	17,214
Others	381	1,148	162
Total	29,444	21,940	17,377
In common	20	35	23
Consolidated	29,424	21,975	17,400

Domestic Investment
-The Company focused on improvement, streamlining and update of production facilities including construction of a new plant at Gotenba.

< New facilities >
-The total amount of capital investment planned for fiscal year 2008, which ended March, 2009, was 17,888 million yen. The following outlines major construction projects for new facilities.

	Location	Type of facility	Planned investment (total) (million JPY)	Construction start month	Planned completion
Saitama Plant	Gyoda City, Saitama, Japan	Production facilities for automobile parts	889	Apr., 2008	Jan,. 2010
Gotenba Plant	Gotenba, Shizuoka, Japan	Production facilities for automobile parts	9,024	Apr., 2008	Mar., 2010
Asaba Plant	Fukuroi, Shizuoka, Japan	Production facilities for automobile, motorcycle parts	801	Apr., 2008	Mar., 2010
American Showa, Inc. Sunbury Factory	Ohio, USA	Production facilities for automobile, motorcycle parts	1,324	June, 2008	Dec., 2009