Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	72,274	76,199	(5.2)	1)
Operating income	4,643	1,547	200.1	-
Ordinary income	4,577	950	381.9	-
Net income	2,342	271	762.5	-

Factors
1)
-Despite a continued rebound in demand for the Company's major products, including tubing products for automobiles and transportation equipment as well as plastic products for automobiles, after completion of a round of production adjustment at automakers, sales failed to reach the level in the previous year.

-While sales of plastic products such as quick connectors and tubing increased over the previous term, sales of car tubing products like braking and fuel tubes, brazed products for fuel injection, water and oil cooling,  as well as vehicle safety products for seatbelts decreased compared with a year earlier. 

Recent Developments outside Japan

-Sanoh America, Inc. acquired a plant in Archbold, Ohio and started production of tubes for automobiles at the plant in March 2010. Comprehensive production capacity from tube making to bending in-house was established. 

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,463	1,582	1,639

R&D Activities

Tubing for automobiles 
-Putting the highest priority on improving fuel efficiency (reduction in CO2 emissions) by reduction of weight, the Company developed new products by using light weight materials such as plastic, aluminum and stainless steel.
-The Company is engaged in development of new high pressure fuel injection rails, fuel tubes, EGR pipes and super high pressure fuel injection tubes in response to needs  for  improving fuel efficiency, reducing emissions and using flexible fuels. 
-The Company reinforced its development capabilities by introducing new equipment for reliability testing and monitoring environmentally hazardous and other materials, as well as software for simulation analysis.

Investment Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Group	2,731	5,789	7,475
Automobile parts	2,596	5,453	7,019

-Investments were focused on improving productivity and renewal of equipment.