Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Sales	27,807	30,665	(9.3)	Sales declined because of a slowdown in demand in the car market, although the Company won orders for its automotive products for new vehicles.
Ordinary income	442	(1,026)	-	Income improved as a result of the Company implementing initiatives internally such as reducing costs.
Current net income	246	(942)	-

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	482	603	537

R&D Structure

-The Company has a technical center in Hamamatsu City, Shizuoka Prefecture.

R&D Activities

-The Company announced development of its aqueous urethane synthetic leather, Aquawish, which will not use any organic solvent in the manufacturing process. It is selected for application in the door grip and the front console box of the new Toyota Mark X. According to the company, this is the first vehicle application of the glossy-look synthetic leather made of aqueous urethane. While it is approx. 50% lighter than the real leather, it features softer and moister textures than conventional synthetic leathers. Its emission-absorption property is close to that of real leathers. It is applicable to any automotive interior parts, regardless of items, including durability-requiring seat covers and instrument panels and dashboards seeking for weatherproof property. (From an article in the Nikkan Jidosha Shimbun on Nov. 10, 2009)

Development agendas of the automotive interior business were:
-The Company is developing new, synthetic-leather materials that contribute to enhancing the quality of vehicles.
-The Company is working to improve upon and develop product technology that takes into consideration factors such as weight reduction, ease of recycling, lowered costs, environmental protection, and greater comfort for passengers.

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,048	1,210	1,688

-The Company made capital investments mainly to install a MCD coater at the Shinshiro Plant and to reduce costs.

New Facility (abstract)

(As of Mar. 31, 2010)

Main Products	Total Amount Invested (millions of yen)	Started	Expected to Complete in	Increased Capacity after Completion
1st Tenryu Plant
Synthetic leather (for vehicles, furniture, shoes and general merchandise)	338	Apr. 2010	Mar. 2011	No increase (initiated for rationalization purposes only)
2nd Tenryu Plant
Composites for molding and making synthetic leather (for vehicles, furniture, shoes and general merchandise)	183	Apr. 2010	Mar. 2011	No increase (initiated for rationalization purposes only)
Shinshiro Plant
Composites for molding, and other products (for automotive use)	453	Apr. 2010	Mar. 2011	No increase (initiated for rationalization purposes only)