Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Sales	7,411	8,138	(8.9)	-Sales were down  because the Company's major clients decreased their production volumes.
Operating income	303	(25)	-	-
Ordinary income	248	(83)	-	-
Current net income	229	(79)	-	-

Recent Developments in Japan

-Tochigi Teito, a subsidiary of the Company, announced that it will downsize its rubber hose production operation as a dramatic decline in the production and sales performance among the Japanese automakers forced Tochigi Teito to realign its manufacturing capacity. Consequently, part of the operation will be transferred to the Company as well as to Yashima Gomu Kogyo Co., Ltd. Yashima Gomu is an affiliate of Kinugawa Rubber. (From a press release on Apr. 24, 2009)

Recent Developments outside Japan

-The Company announced its plans to liquidate its consolidated subsidiary Teito Rubber America Inc. based in Michigan, USA. Teito Rubber America sells rubber hose products for the automotive industry. The decline in demand for automotive hoses in the United States since the fall of 2008 has forced the Company to reach a decision. The liquidation procedures will be completed at the end of Mar. 2010. (From a press release on Sep. 24, 2009)

R&D Activities

Recent Developments
-Fuel hoses that reduce fuel-vapor permeation to zero.
-Fuel hoses that can be used with bio diesel fuel.

-R&D on hoses for hybrid, electric, and fuel cell vehicles is on going.

Licensing of Technology from Other Companies

(As of Mar. 31, 2010)

Company name	Country	Technology	Contract period
Meiji Rubber & Chemical Co., Ltd.	Japan	Manufacturing technology for medium- and high-pressure hoses	Five years from Sep. 27, 1989 (Automatic renewal from then on)

Licensing of Technology to Other Companies

(As of Mar. 31, 2010)

Company Name	Country	Contract	Contract period
Meiji Rubber Kasei	Japan	Licensing of patent rights for TS-type process heads and technologies concerning continuous processing of cloth reinforced rubber hoses (under TS method).	Five years from Sep. 27, 1989 (Automatic renewal from then on)
Orion Rubber Mfg.	Philippines	Licensing of patent rights for TS-type process heads and technologies concerning continuous processing of cloth reinforced rubber hoses (under TS method), and technical partnership for manufacturing braided rubber hoses using the TBL method developed by the Company.	Five years from Feb. 27, 1992 (Automatic renewal from then on)
Kasmina	Vietnam	Technologies for manufacturing single-layer rubber hoses.	One year from July 1, 1998 (Automatic renewal from then on)
		Technical assistance for outer braided/inner braided hoses.	One year from Mar. 30,2005 (Automatic renewal from then on)
		Technical assistance for spiral hoses.	Five year from Mar. 30, 2005 (Automatic renewal from then on)
Indocarlo	Indonesia	Technical assistance for manufacturing of fuel hoses/breather hoses (single-layered/double-layered rubber hoses without braid reinforcement) for motorcycles and water hoses (braid-reinforced rubber hoses) for automobiles.	Seven year from Sep. 3, 2004 (Automatic renewal from then on)
		Technical assistance for manufacturing fuel hoses and master vacuum hoses for automobiles	Seven years from Sep. 30, 2005 (Automatic renewal from then on)

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	57	187	170

-The main purposes for the capital investments were to make the Company's facilities producing hoses more efficient, fix and upgrade facilities according to a set schedule, meet environmental and safety requirements, and respond to new car launches.

Planned Capital Investments

(As of Mar. 31, 2010)

Segment	Estimated amount of investment
Rationalization	9
Upgrading the main system	26
Test facilities	3
Quality improvements/Others	12
Cored bars and tools	30
Total	80