Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	65,922	61,911	6.5	-Sales of body parts remained strong in China and Brazil. Sales of dies and tools also contributed to the sales growth.
Operating Income	4,260	5,524	(22.9)	-In Japan and the U.S., the Company's cost reduction efforts could not catch up with its sudden drop of production.
Ordinary Profit	3,473	5,343	(35.0)
Net Income	1,806	2,991	(39.6)

Recent Developments in Japan
-New model launches (EU Accord WGN, Odyssey, Freed, Exiga, Impreza)

-Tochigi Plant's 1500t Transfer and 500t Planking Press now in full operation.

-290 million yen investment in overseas subsidiary Kikuchi do Brasil Ltda.


Recent Developments Overseas
<North America>
Austin Tri-Hawk Automotive Inc.
-Land acquisition (30 acres, 121,405 square meters)

-Building expansion (1800 square meters to prepare for new model launches and improve the production system)

J Group
-Honda Acura TL launch (Jefferson Industries Corporation)

-Honda Pilot launch (Jefferson Southern Corporation)

<Latin America>
Kikuchi do Brasil Ltda.
-Land acquisition (43,684 square meters, 1 million R$)

-Building expansion (Ensuring capacity to build 150,000 units)

<China>
Auto Parts Alliance (China) Ltd.
-Start of production of new models (Nissan Qashqai, Toyota Vitz)

-Start of operation of 3000t transfer press

Wuhan Auto Parts Alliance Co., Ltd.
-Profit and sales increased due to increased production (up 37,000 units).

-Start of building expansion (to prepare for new model launch)

Conghua K&S Auto Parts Co., Ltd.
-Profit and sales increased due to increased production (up 4.5 million units).

<India>
Global Auto Parts Alliance India Private Ltd.
-Start of welding operation in November and pressing in March



Financial Forecast for FY2009

Sales by Geographic Area

(in millions of JPY)

	FY2008	FY2009
Overall	65,922	47,800
Japan	35,479	21,600
North America	6,211	3,811
South America	7,662	5,682
Asia	20,487	17,793

R&D Expenditure

(in millions of JPY)

	FY 2008	FY 2007	FY 2006
Overall	350	416	376
Number of  R&D staff	28	27	24

R&D Activities
-Major R&D activities and achievements FY2008
(1)Study to expand application to mash seam welding body parts
(2)Study to expand application to body parts made of high tensile steel materials.
(3)Study to expand injection simulation technology.
(4)Study to reduce weight and increase strength of CVT parts.
(5)Study to use information technology for making metal dies.
(6)Study to apply technology of high-frequency hardening to steel plate materials.


Technology Contract Offered by the Company (As of Mar. 2009)

Partner	Country	Details	Period
Jefferson Industries Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding  technological and production  expertise on automotive parts, stamping dies, and jigs	2003.10.01～2006.09.30 automatic extension every year thereafter
Jefferson Elora Corporation	Canada	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.03.31～2002.03.30 automatic extension every 5 years thereafter
Jefferson Southern Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on  automotive parts, stamping dies, and jigs	2001.05.31～2006.05.30 automatic extension every year thereafter
Austin Tri-Hawk Automotive Inc.	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1998.01.25～2001.01.24 automatic extension every year thereafter
Kikuchi Do Brasil Ltda	Brazil	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.05.30～2002.05.29 automatic extension every year thereafter
Auto Parts Alliance (China) Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2006.10.26～2011.10.25
Wuhan Auto Parts Alliance Co., Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2005.07.01～2010.06.30

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	11,684	15,656	11,296

-Investment is made mainly in production line expansion and preparation for model changes.


Planned Capital Investments (As of Mar. 2009)

Plant	City	Equipment to be installed	Estimated amount of investment (in millions of yen	From	To
Hamura Plant	Hamura City, Tokyo	Equipment for manufacturing auto parts  (dies, jigs and tools)	2,200	-	-
New plant	Fukaya City, Saitama Pref.	Buildings	5,100	Jun. 2008	Jun. 2010
		Equipment for manufacturing auto parts (stamping and welding equipment)	3,000	Apr. 2009	Mar. 2010
Kikuchi Do Brasil Ltda	Sao Paulo, Brazil	Equipment for manufacturing auto parts (stamping and welding equipment)	679	Jan. 2009	Dec. 2010
Auto Parts Alliance (China) Ltd.	Guangzhou, Guangdong Province, China.	Equipment for manufacturing auto parts (dies, jigs and tools)	1,264	Jan. 2009	Aug. 2009