Sanoh Industrial Co. , Ltd. Business Report FY2008

Business Highlights

Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	76,199	93,146	(18.2)	-Production of its main products, automotive and transport machine tubing products, and automotive resin products substantially decreased as a result of rapidly proceeding production adjustment.
Operating income	1,547	5,076	(69.5)
Ordinary income	950	4,463	(78.7)
Net income	271	2,478	(89.0)

Recent Developments in Japan
-The Company announced that effective March 31, 2009, it will absorb Multi Products Industrial Co., Ltd., which is its wholly owned subsidiary in Koga City, Ibaraki Prefecture. The consolidation will allow the Group to improve its business efficiency, as automakers and vehicle parts suppliers are striving to cope with shrinking demand in the market, which is forcing them to lower their production volume. Multi Products was established in February 1990. It handles production and sales of high-mix, low-volume vehicle components for the Company. (From an article in the Nikkan Jidosha Shimbun on Feb. 26, 2009)

Contracts
-The Company announced that the Company is supplying multiple components for "Insight", a new hybrid model by Honda. The products adopted include fuel injection rail (FIR) and cluster tubes for brake and fuel lines. (From a press release on Mar. 23, 2009)

R&D

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	1,582	1,639	1,539

R&D Activities
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 special piping and joints for hybrid , electric and fuel-cell vehicles.