Highlights FY2008 (ended March 2009)

Financial Overview

(in million JPY)	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	80,468	89,862	(10.5)	-Sales declined as its customers' vehicle production volume dropped by half compared to the previous year.
Operating income	(437)	3,640	-	-Income declined for the following reasons: sales volume drastically and suddenly dropped in and after the third quarter, depreciation costs increased due to large investments and a tax system revision, and rapid appreciation of the yen.
Ordinary income	(490)	3,976	-
Current net income	(355)	2,335	-
Stamping/resin product business
Sales	57,049	63,024	(9.5)	-
Operating income	(904)	1,254	-	-Sales declined as sales volume declined, depreciation costs increased due to tax system revision and large investment, and the market price for iron scraps dropped.
Valve product business
Sales	22,906	26,085	(12.2)	-A decline in auto production volume and needs for inventory adjustment had a negative impact.
Operating income	469	2,314	(79.7)	-Due to appreciation of the yen and decrease in sales volume.

Performance by region
<Japan>
-In and after the third quarter, the Company's sales volume suddenly dropped due to a slowdown in sales of automobiles.

<Asia>
-The Company's sales and income increased thanks to expanded production in Tianjin, China, although its sales in Taiwan were much lower than the previous year.

<North America>
-Sales in dollars increased 14% from the previous year. But due to the appreciation of the yen, sales on a yen basis were almost equal to the previous year.

R&D Expense

( in millions of JPY )

-	FY2008	FY2007	FY2006
Overall	757	926	1,012
Stamping/resin products business	141	163	179
Valve products business	404	518	651
Common	206	234	170

R&D activities (FY2008)

Business segment	Major activities
Stamping/resin products business	Technology Headquarters/Technology Department: -Developed products using decorating technology based on eco-friendly bright films and focused on development of lighter products. Operation Department No.1/Production Engineering Department: -Development of hybrid vehicle products.
Valve products business	Technology Headquarters/Technology Department: -Research on more eco-friendly and lighter tire valve products that use less environmentally hazardous substances. -Completed development of new-mechanism small-diameter controllers with electrical expansion valves and started mass production of them. -Promoting development of the next-generation transmitters for TPMS products. Operation Department No.2/Production Engineering Department: -With a new production method, succeeded in implementing scrapless production and improved net shape ratio, as well as reducing the use of materials. Increased the variety of items for orders for highly-accurate stamping products and started full operation of its large mass production equipment.
Common	Technology Headquarters/Development Department: -Took part in industry-academia research on basic technology to further development on sealing and throttling valve mechanisms. Examined the knowledge gained from such efforts to see if they were applicable to real products. -Developed technology to improve productivity at TPMS mass production lines and elemental technology for the next-generation TPMS. Real application of new eco-friendly resin molding methodology and decorating technology. Developed multifunction products based on core technology of fans and substrates.

Capital Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Overall	14,194	14,343	13,486
Stamping/resin products	13,026	13,064	11,488
-Japan	9,717	9,279	7,730
-Outside Japan	3,308	3,785	3,758
Valve products	1,140	1,300	1,950

Capital investments (FY2008)

Business segment	Objective
Stamping/resin products	In Japan: - Expansion of Higashi Ogaki No. Plant (oil pan lines), introduction of stamping machines at Kyushu Plant and preparation for and production expansion of new products such as dies for new vehicle models. Outside Japan: - Addition of stamping facility in Tianjin, China, and preparation for and production expansion of stamping products in North America.
Valve products	Production increase and preparation for production of new products

New facilities

Facility (Location)	Business segment	Equipment to be installed	Planned total investment ( in million JPY)	Start	Planned completion	Production capacity growth after completion
The Company Nishi Ogaki Plant (Gifu, Japan)	Stamped and resin	New products, etc.	3,607	Aug., 2008	Mar., 2010	None
		Maintenance and renewal etc.	432	Oct., 2008	Mar., 2010	None
The Company Higashi Ogaki Plant (Gifu, Japan)	Stamped and resin	New products, etc.	780	July, 2008	Mar., 2010	None
		Maintenance and renewal etc.	333	June, 2008	Mar., 2010	None
The Company Yoro Plant (Gifu, Japan)	Stamped and resin, etc	New products, etc.	76	Nov., 2008	Dec., 2009	None
The Company Kyushu Plant (Fukuoka, Japan)	Stamped and resin	New products, etc.	200	Sept., 2008	Mar., 2010	None
The Company Kita Ogaki Plant (Gifu, Japan)	Valve	Automation and rationalization	162	Mar., 2007	Jan., 2010	None
		New products, etc.	60	July, 2006	Dec., 2009	None
The Company Mino Plant (Gifu, Japan)	Valve	Automation and rationalization	167	Mar., 2008	July, 2009	None
Pacific Industries USA Inc. (Ohio, USA)	Stamped and resin, Valve	New products, etc.	291	Jan., 2009	Dec., 2009	None
Pacific Valve (Taiwan) Co., Ltd. (Taichung, Taiwan)	Stamped and resin, Valve	New products, etc.	28	Jan., 2009	Dec., 2009	None
Pacific Valve Industrial Co., Ltd. (Yangsan, Korea)	Valve	New products, etc.	9	Jan., 2009	Dec., 2009	None
Pacific Industries (Thailand) Co., Ltd. (Chachoengsao, Thailand)	Valve	New products, etc.	10	Jan., 2009	Dec., 2009	None
Qingdao Pacific Hongfeng Industrial Co., Ltd. (Qingdao, China)	Valve	New products, etc.	1	Jan., 2009	Dec., 2009	None
Tianjin Pacific Auto Parts Co., Ltd. (Tianjin, China)	Stamped and resin,	New products, etc.	359	Sept., 2009	Dec., 2009	None