Financial overview

( in millions of JPY )

	FY2007	FY2006	Rate of Change (%)	Factors
Sales	93,146	86,807	7.3	-Sales and income increased. In the Americas, Sanoh America, Inc., which is a core facility in the region, was on track to recovery. In order to improve production capacity in the region, the Company also reexamined its production centers. For example, The Company constructed a new plant at Sanoh Industrial de Mexico S.A. de C.V. in Mexico and transferred production of some products there. In Europe, the Company started production in August 2007 at a new plant at Sanoh Magyar Kft., which was established in Hungary .
Operating income	5,076	3,363	5.1
Ordinary income	4,463	3,412	30.8
Net income	2,478	1,582	56.6

Contracts
-The Company announced that it has been supplying clutch reservoir tubes to Mazda Motor Corporation for the Mazda's sport compact model "Axela". The clutch reservoir tubes, made of resin, come with high-performance quick connectors assembled on both ends of the plastic tubing. They feature compact design, compared to other existing products, and have a great benefit of layout flexibility. The clutch reservoir tubes are slated to be adopted in other Mazda manual transmission models to be launched in the future. (From a press release on May 11, 2007)

-Multiple products offered by the Company have been selected by Honda for the new "Fit", the winner of the 2007/2008 Japan Car of the Year Award and 2007/2008 Japan Automotive Hall of Fame Award. Products adopted in the award-winning model include tubing such as cluster tubes for brake and fuel lines as well as fuel injection rail (FIR) and other engine related components. (From a press release on Feb. 13, 2008)

<Europe>
-Brake & fuel tubes supplied by the Company have been selected by Suzuki for the new "Splash," a compact car model scheduled to be launched in Europe beginning in spring 2008. These products have already been manufactured at Sanoh Magyar Kft., Sanoh's new manufacturing facility in Hungary, which is located adjacent to the premises of the Magyar Suzuki Corporation. Sanoh Magyar Kft., a wholly-owned Hungarian subsidiary of it, was established in November 2006 as a step to further expand its operations in Europe. It started operations in August 2007. (From a press release on Jan. 7, 2007)

R&D Expenditure

( in millions of JPY )

	FY2007	FY2006	FY2005
R&D	1,639	1,539	1,600

Automobile parts business
-The Company continued its development activities on products requiring steel tube applications, incorporating both elemental technology and applied technology. It also worked on developing new products using light-weight materials such as multi-layer resin tubes, aluminum tubes, and stainless pipes, to name a few.

-The Company developed and now produces fuel injection rails and EGR pipes to support fuel-efficient, low emission, and FFV vehicles. It also developed pipes for ultra high-pressure fuel injection systems.

-The Company develops piping and joints for fuel-cell and hybrid vehicles.

Investment Expenditure

( in millions of JPY )

	FY2007	FY2006	FY2005
Group	7,475	6,427	4,948
Automobile parts	7,019	5,849	4,437

Overseas
<Hungary>
-The Company announced that a new plant at Sanoh Magyar Kft., its wholly-owned subsidiary in Hungary, has launched production in August 2007. The Company established Sanoh Magyar Kft in November 2006. The Company has invested a total of 600 million yen in the operations at the plant which engages in the production and sales of brake tubes, fuel tubes, and other tubing/piping products with 90 employees. The revenue at the Hungarian subsidiary is expected to reach 900 million yen in 2008, then to be upgraded to 1.1billion yen from 2010 onwards. The company intends to boost the production capacity at Sanoh Magyar Kft which serves as one of the major production facilities in its European operations and explore further opportunities to accelerate its growth in the entire European market. (From a press release on Nov. 1, 2007)

<Mexico>
-The Company announced a plan to construct a new plant at Sanoh Industrial de Mexico S.A. de C.V (SANMEX), its manufacturing subsidiary in Aguascalientes, Mexico. The new plant is slated to start operation in January 2008. This will allow the company to increase capacity to produce parts for fuel and break pipes for automakers in the U.S. and South America. Capitalized at 600 million yen, the new plant targets to generate sales of 5.5 billion yen in 2010. The Company will introduce to the new facility a distribution system that works in corporation with the system installed in old facilities to improve product quality and production efficiency. The company, which began restructuring of its operations in North and Latin Americas in December last year, has announced a new midterm business plan targeting sales of 30 billion yen in the area in fiscal 2008. The capacity expansion at the production site in Mexico is part of such efforts, and the company intends to make SANMEX its manufacturing and supply base that covers both the U.S. and South America to expand its business in the region. (From an article in the Nikkan Jidosha Shimbun on Jun.15, 2007)