Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	21,647	27,818	(22.2)	-
Operating income	789	466	69.3	-
Ordinary income	770	447	72.3	-
Net income	516	(33)	-	-
Automotive Components
Sales	16,118	16,028	0.6	-Government-initiated incentive programs in Japan and other countries, as well as brisk sales of eco-cars and compact vehicles in emerging markets mainly in Asia made a positive impact on sales.

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

R&D Activities

-For production of core components like a sheave of a CVT （Continuously Variable Transmission) and hybrid systems, the Company is conducting comprehensive manufacturing process from forging to machining in an attempt to elevate efficiency and lower costs in manufacturing.

-For production of key components such as connecting rods and cranks, the Company, leveraging its technological expertise it has nurtured from 3-D designing and strength/molding analysis, makes presentations to customers for manufacturing solutions with an eye on environmentally friendly products. It is also aggressive in joint development programs in the form of design-in or concurrent engineering process.    

-For forging gears, the Company is engaged in developing components and enhancing precision in products.

Licensing of Technology from Other Companies

(As of Mar. 31, 2010)

Partners	Country	Technology	The term of a contract
Bharat Forge Ltd.	India	Manufacturing technology for forged products	Nov. 2003 - Mar. 2010
PT Menara Terus Makmur	Indonesia	Manufacturing technology for forged products	Oct. 1996 - (Automatic renewal)

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	318	836	377

-Stamping machines were renewed at the subsidiary Metalforge. Capital investments were made primarily in maintenance and renewal of equipment at other facilities in the group.