Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	41,749	49,529	(15.7)	-In the transportation machine clutch division, sales decreased by 16.2% year-on-year, being affected by the contraction of the automotive market in Japan and abroad.
Operating income	(658)	548	-	-Operating income decreased as a result of lower demand due to the global economic downturn and a reduction in the value of sales amounts because of the appreciation of the yen.
Ordinary profit	(1,846)	214	-	-The Company's results were affected by negative foreign currency translation.
Net profit	(2,803)	(626)	-	-

Recent developments outside Japan
<Thailand>
-The Company set up a new subsidiary in Thailand which engages in the manufacturing and sale of transportation-equipment clutches. The new company, called Ogura Clutch Thailand Co., Ltd.,  is located in Amata City, Rayong Province and will help the Company better serve Japanese firms operating in Thailand by meeting their supply requirements locally. The new business, which is scheduled to begin operations in January 2010, was capitalized at 200 million bahts (680 million yen). The Company holds a 51% interest in the subsidiary, while the remaining 49% is held by its subsidiary Toyo Clutch. (From a press release on Jul 31, 2008)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	370	459	445

Electromagnetic clutch division/ transportation-equipment clutch division
-The Company was mainly involved in developing clutches used in air conditioners for motor vehicles and in developing torque limiters for lightweight clutches, silent clutches and external control compressors; energy- and power-saving clutches, etc.

In addition to above, the Company worked on the following developments at the transportation-equipment clutch division:
-Clutches for super-chargers and automobile reinforced clutches (at an affiliated company).
-Clutches for automotive power slide doors, rear doors, and trunks 
-Clutches/brakes for differential locks
-Fan clutches
-Clutches for water pumps

Development of products for new business areas
-The Company developed new products under the theme of environmental improvements and energy conservation. 
-The Company developed products used in motors and motor control systems.
-The Company developed a tension controller by applying electronic control technology and software technology.  The controller enables clutch brakes to be controlled with greater accuracy.
-The Company also continues to develop various types of control systems.

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Transportation-equipment clutch division	356	427	396

Electromagnetic clutch division/ Transportation-equipment clutch division
-The Company focused its investment activities on measures to enhance environmental responsiveness, improve production equipment, streamline operations, and purchase new dies at the Akabori Plant and Kohbayashi Plant.


New Facilities (related to transportation-equipment clutches)

Name (Location)	Planned total investment (million JPY)	Starting month	Planned completion	Capacity increase upon completion
Akabori Plant (Isezaki City, Gumma Pref., Japan)	164	Apr. 2009	Mar. 2010	Practically none, as this is to improve product quality
Kohbayashi Plant (Isezaki City, Gumma Pref., Japan)	65	Apr. 2009	Mar. 2010	Practically none, as this is to improve product quality
Ogura Corporation Head office plant (Michigan, USA)	39	Jan. 2009	Dec. 2009	Production capacity increase to raise the ratio of in-house production
Ogura Clutch do Brasil Ltda. Head office plant (Sao Paulo, Brazil)	14	Jan. 2009	Dec. 2009	Production capacity increase to raise the ratio of in-house production
Ogura Clutch (Dong Guan) Co., Ltd. Head office plant (Guang Dong, China)	31	Jan. 2009	Dec. 2009	Production capacity increase to raise the ratio of in-house production
Ogura Clutch Thailand Co., Ltd. Head office plant (Rayong, Thailand)	244	Jan. 2009	Dec. 2009	Construction of new facilities