Financial Overview

(in millions of JPY)

	FY2008	FY 2007	Rate of change (%)	Factors
Overall
Sales	9,856	11,361	(13.2)	-
Operating Income	(347)	345	-	-Income decreased due to an increase in depreciation costs, which resulted from investment in a 3800-ton pressing machine and soaring material prices.
Ordinary income	(472)	264	-	-
Current net income	(534)	149	-	-
Automotive components
Sales	9,326	10,731	(13.1)	-

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	45	38	22

-Number of R&D staff: 20 people 


Research and Development Activities
-The Company tried to reduce production costs while improving quality by developing new products, technology and production methods.

-In order to improve the accuracy in forging processes and lower production costs, it also developed new technology to make precision forged products and toothed products that are formed through net-shaping technology. The Company developed and improved production methods using three-dimensional CAD and CAE, as well.

-The Company aggressively worked on responding to new needs from the automotive industry for applying advanced systems to improve fuel economy and environmental performance. As a result, it won new customers.

Activities in FY 2008 are as follows;
1. Development of automotive transmission components, of which the toothed parts are net-shaped by using hot and cold forging machines.
2. Development of technology to make precision toothed parts using net-shaping technology
3. Development of high-speed forging technology for long-axis extrusion forging products.
4. Development of manufacturing technology for near-net-shape forging products as a result of an evolution in cold forging.

Capital investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	1,113	933	555

-The Company invested in installation of associated facilities for the 3800-ton automated pressing machine, creation of a die holder for the 3800-ton pressing machine, and installation of a hanger-type shot blasting machine.

-Kyushu Ichitan renovated its billet shear, hammer, and other out-dated production facilities.


New Facilities

Company name Business establishment	Type of facility	Planned investment amount (total) (thousand JPY)	Construction start date	Completion	Production capacity upon completion
Ichitan Head office/ Plant (Gunma pref., Japan)	Forging facilities	101,000	2009.06	2010.03	Increased productivity
Kyushu Ichitan Head office/ Plant (Oita pref., Japan)	Forging facilities	90,500	2009.08	2010.02	Increased productivity
Daiichi Forging Dalian Co., Ltd. Head office/ Plant (Dalian, China)	Forging facilities	61,321	2009.10	2009.11	Increased productivity