Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	157,487	185,523	(15.1)	-Overall sales decreased from the previous year's result, despite the Company's active marketing activities, which resulted in winning new program business. Its new business included axle unit assembly programs for Mitsubishi Fuso's heavy- and medium-duty trucks.
Operating income	2,753	11,094	(75.2)	-
Ordinary income	2,190	10,308	(78.7)	-
Net income	(1,945)	5,253	-	-
Automotive parts division
Sales	110,027	127,892	(14.0)	-Sales at the Division decreased from a year ago due to falling demand for medium-duty trucks in Japan and a significant decrease in exports.

Supply Agreements
-The Company announced that it has received a new order to assemble and process large and medium axle units from Mitsubishi Fuso Truck and Bus Corporation. The Company has been welding and machine processing large and medium axles for Mitsubishi Fuso. The Company is due to start working on the all the assembly and processing work done on axel units, which was work previously conducted by Mitsubishi Fuso in the past, at its Kawasaki factory in August 2008. Approximately 15 billion yen in sales is expected annually with this newly won business. ( From a press release on May 16, 2008)

-Having won its first supply agreement with Toyota Motor, the Company will start supplying its products to the automaker in October 2009.


Reorganizing Operations
<Thailand>
-The Company announced that it plans to establish a new joint venture with Thai Summit Auto Parts Industry Co., Ltd. (TSA) for the purpose of consolidating its four existing joint venture companies in Thailand, which are Thai Summit PKK Co., Ltd.; Thai Summit PKK Bangna Co., Ltd.; Thai Summit PKK Bangpakong Co., Ltd.; and Thai Summit PKK Engineering Co., Ltd. The new joint venture called Thai Summit PK Corporation Ltd. is scheduled to be established at the end of November 2008. The new entity, a producer of automotive components and metal molds, will be capitalized at 700 million baht, with both the Company and TSA each holding a 50% stake. (From a press release on Nov 13, 2008)

<USA>
-In order to cope with the shrinking SUV market, the Company closed down two plants in the southern U.S., integrating their operations into its Indiana facility.


Business Plan
Mid-term business plan (covers FY2008 ending March 2009 and FY2010 ending March 2011)
The targets for FY2010 are:
Consolidated sales: 240 billion yen
Consolidated operating income: 15 billion yen

R&D Expenditures

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	299	187	116

R&D Activities
1. Automotive parts division
Shortening preparation time for development and production
-The Company started compiling its expertise on analytical technology by implementing plastic forming simulation technology and FEM analysis software in other element processing areas. By doing so, it aims to build a digital engineering development structure by combining its wealth of know-how together with these analytical technologies.

Developing production methods that reduce product weight and environmental impact
-In order to reduce product weight, the Company developed and implemented new technologies. One of these technologies is being applied to form high-tensile steel sheets; while another is a method for plating coating materials at low-temperature. The Company also launched a development project to engineer a new production technology that can be applied on products that currently involve large energy losses.

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	5,632	6,708	6,462

-The Company focused its investment activities on building up its production operations, reducing costs, promoting labor savings, enhancing production efficiency, and improving the reliability of its products in order to respond to new program business for frames, axles, suspensions, and construction machinery cabs, which are its main products.

Division	(in millions of JPY)
Automotive parts	5,551
Automotive assembly
Construction machinery components
Automotive stamping dies and assembly devices	2
Other	77
Total	5,632

Planned Capital Investments (automotive components) (As of Mar. 2009)

Name	Purpose	Planned amount of investment (million JPY)	Start month	Planned completion
Fujisawa plant	Production equipment for panels	260	July, 2007	Sep. 2009
Utsunomiya plant	Production equipment for axles	865	Oct. 2008	Dec. 2009
Thai Summit PKK Co., Ltd.	Production equipment for frames	279 million Thai Baht	to be determined	to be determined
	Production equipment for axles	78 million Thai Baht	to be determined	to be determined
Thai Summit PKK Bangna., Ltd.	Production equipment for axles	222 million Thai Baht	Oct. 2008	July, 2011
	New facility	454 million Thai Baht	June, 2008	Sep. 2009