Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	50,790	65,893	(22.9)	-
Operating income	1,218	3,623	(66.4)	-Income decreased as a result of sales decline and capital investment increase.
Ordinary income	1,408	3,833	(63.3)
Current net income	456	2,592	(82.4)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	256	416	432
Engine parts business	0	41	43
Automotive parts division	256	374	389

R&D Activities
-Under its partnership with JBK Services, which mainly involves R&D activities, the Company is jointly researching and developing automotive parts used in diverse powertrains.

-Part of the activities in advanced technological products are being conducted jointly with Isuzu.

Automotive parts
-Development was carried out both on various propeller shafts for pickup truck transmissions to increase higher torque output and on various power takeoffs designed to match the type of body, as well as cam gears, rocker arm and flywheels.

-Because the Company has promoted their business to receive awards from automobile makers which with they never had business together in the past, it has been developing large and small propeller shafts to suit the needs of new customers.


Technology Import (As of Mar. 2009)

Licenser	Licensed technology	Contract	Contract term
Eaton Corporation (U.S.A.)	Manufacturing technologies for no-spin differentials	1.To provide know-hows, drawings and technical data on design and forming process. 2.To license trademark.	Apr.16, 2006- Apr.15, 2009

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	4,056	2,738	1,675
Engine parts business	619	1,147	430
Automotive parts division	3,435	1,590	1,244

Engine parts business
-The Company invested in enhancement of production capacity of industrial machinery engines.

Automotive parts division
-Investment at the automotive components division was mainly focused on increasing capacity to manufacture propeller shafts, flywheel and rocker arm assemblies, and upgrading aging facilities.


New Facilities (automotive parts business) (As of Mar. 2009)

Name	Location	Type of facility	Planned total  investment (in millions of JPY)	Construction start month	Planned completion month
Head Office/ Ebina Plant	Kanagawa Pref., Japan	Processing equipment for power transmission parts, etc.	110	Apr. 2009	Mar. 2010
		Processing equipment for power transmission parts, etc.	930	Apr. 2009	Mar. 2010
Mooka Plant	Tochigi Pref., Japan	Processing equipment for engine parts, etc.	140	Apr. 2009	Mar. 2010
P.T. Jibuhin Bakrie Indonesia	Karawan, Indonesia	Processing equipment for engine parts, etc.	70	Jan. 2009	Dec. 2009
Jibuhin (Thailand) Co., Ltd.	Chonburi, Thailand	Processing equipment for power transmission parts, etc.	70	Jan. 2009	Dec. 2009