Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	81,071	95,912	(15.5)	-Sales decreased as a result of substantial production decreases made by automakers, which in turn resulted in a decline in the number of days the plants operated. In addition, the sharp appreciation of the yen created negative currency translation that impacted results. <Sales by product> Suspension springs -Sales decreased to 24 billion 52 million yen, a 17.1% decrease year-on-year, due to a decline in sales of helical springs; and due to other factors. Precision springs -Sales decreased to 18 billion 983 million yen, a 18.7% decrease year-on-year, due to a decline in sales of flat and wire springs; and due to other factors. Cables -Sales decreased to 21 billion 975 million yen, a 16.2% decrease year-on-year, due to a decline in sales of control cables; and due to other factors.
Operating income	(2,461)	1,647	-	-Income decreased as a result of a decline in sales, the strong yen, and an increase in depreciation costs.
Ordinary income	(2,373)	1,772	-
Current net income	(3,993)	1,511	-

Recent Developments outside Japan
<Switzerland>
-In Apr. 2008, the Company announced its planned dissolution of Mubea Chuo SA located in Heiden, Switzerland. Mubea Chuo SA, which was established in 1999 as a 50-50 joint venture between the Company and its local partner Mubea Engineering AG, engages in the sale of suspension coil springs and stabilizers for the automotive industry. The Company will liquidate the joint venture following the dissolution of its partnership with Mubea Engineering AG. (From a press release on Apr. 25, 2008)

<USA>
-In Dec. 2008, the Company announced that it will dissolve a joint venture agreement with US-based Dura Automotive Systems Inc. (DURA). In 1989 the two companies established a joint venture ACK Controls, Inc. in Kentucky, U.S.A. The termination of the contract was a direct result of DURA's openly disclosed intention to withdraw from the partnership. The Company holds a 87.3% stake in ACK Controls, a manufacturer of control cables for the automotive industry. The Company, further stepping up its role in the management, will continue to operate the existing business. (From a press release on Dec. 24, 2008)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	361	345	349

R&D Activities
Suspension Springs Business
-The Company supplied cold formed coil springs to more vehicle models. These springs are made by using a new coating technology designed for suspension coil springs. It also start production of hot formed coil springs with this new coating technology.
-Production volume of the Side Action Spring by CHKK (SASC), which is now the Company's flagship product, is used by many customers at home and abroad.
-The Company continues to develop reinforcement treatment techniques and high-strength materials that contribute to reducing weight.
-For the purpose of making a thorough assessment of high performance springs and weight-saving technology before launching these springs, the Company is now setting up dedicated trial production lines in stages.

Precision Spring Business
-The Company is developing a new, high-strength valve spring for engines, aiming to launch it in fiscal year 2009 or after.
-The Company is enhancing its production capacity to produce large disc springs used on hybrid vehicles by installing an additional high-frequency heat treatment line that can reduce the effects on the environment.
-The Company started in-house production of surface treatment coating film that is used for spiral springs on seats. The Company also advanced the preparation to mass-produce DPF knitted wire mesh products in response to the increased use of diesel engines.
-The Company focused on developing new thin plate springs by utilizing analysis technologies and proprietary precision press technology. It also expanded the volume of die machining it does in-house.

Cable Business
-The Company is working on expanding its technology so as to be able to cover studies on basic theories of twisted wires, up to the point to where it is able to develop simulation technology. It also started mass production of high-performance wires.
-The Company enhanced cooperation with Chuhatsu Techno Co., Ltd., which served as a satellite facility designing and evaluating cables in order to further synchronize development activities with customers.


Agreements on Licensing Technology (As of Mar. 2009)

Suppliers	Country	Contents of contract	Date of Contract	Contract period
Supreme Spring (A Division of Metindustrial (Proprietary) Ltd.)	South Africa	Chassis springs for automobiles and railroad cars.	1984.03.31	Five years (with provision for automatic extension)
Metal Textiles Corporation	USA	Knitted wire meshes	1994.06.01	Five years (with provision for automatic extension)
Knitmesh Limited	UK	Knitted wire meshes	1991.04.01	Five years (with provision for automatic extension)
Dura Automotives Systems, Limited	USA	Control cables	1995.06.02	Five years (with provision for automatic extension)
Shanghai Chisca Auto Suspension Components Co., Ltd.	China	Stabilizers	2004.09.15	Five years (with automatic extension)
Mubea, Inc.	USA	Automotive chassis springs	2005.06.30	Until the project is terminated
Tiajin Lizhou Hardware Spring Co., Ltd.	China	Valve springs, Torsion bars	2006.09.01	Five years
TC Springs Ltd.	India	Automotive chassis springs	2007.05.30	Three years
Rozmas Celik Sanayi Ve Ticaret A.S.	Turkey	Automotive chassis springs	2008.02.20	Two years
Muhr Und Bender KG	Germany	Automotive chassis springs	2008.06.10	Until the project is terminated

Investment Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	2,289	5,229	5,585

Suspension spring business
The focus of the investment activities:
-increasing production capacity and efficiency to manufacture hot-formed coil springs, cold-formed coil springs, and stabilizers

Precision spring business
-The Company invested mainly to increase both its production capacity and efficiency in making valve springs and disk springs.

Cable business
The focus of the investment activities:
-preparing production lines to make new products; and
-improving the efficiency and product quality on its existing lines.


New Facilities and Refurbishment Plans (As of Mar. 2009)

Company name	Category	Facility plan	Planned budget (in millions of JPY)	Construction start and completion
Chuo Spring	Building	Manufacturing plant for chassis springs	235	Jun. 2008 - Mar. 2010
	Machinery	Manufacturing facilities for precision springs	97	Nov. 2008 - Mar. 2010
	Machinery	Manufacturing facilities for cables	63	Apr. 2009 - Mar. 2010
	Industrial tools	Dies and jigs	19	Apr. 2009 - Mar. 2010