Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	27,818	27,385	1.6	-As a result of substantial adjustments to production volumes by customers, orders for the Company's products dramatically decreased from the second half of November 2008. While gross turnover slightly increased, this was the result of increased steel prices being passed on to customers as higher product selling prices in the 2008 fiscal year that ended in March 2009. The shipping volume itself actually decreased.
Operating income	466	1,319	(64.6)	-Despite the Company's efforts to reduce cost, including labor costs by reviewing its operational framework, income decreased due to a greater-than-expected dramatic decrease in orders.
Ordinary income	447	1,252	(64.2)
Net income	(33)	720	-	-

R&D Activities
-The Company conducts development activities aiming to further reduce the costs and weights of its products manufactured at its CVT sheave (pulley component) processing plant, which started operations in March 2008.

Licensing of Technology from Other Companies (As of Mar. 2009)

Partners	Country	Technology	The term of a contract
Bharat Forge Ltd.	India	Manufacturing technology for forged products	Nov. 2003 - Oct. 2009
PT Menara Terus Makmur	Indonesia	Manufacturing technology for forged products	Oct. 1996 - (Automatic renewal)

Capital Investment
-In the 2008 fiscal year that ended in March 2009, the Company invested 836 million yen, focusing on establishing a new die manufacturing plant at Metal Forge, updating a hammer press, and maintaining and updating the Group's facilities.