Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change(%)	Factors
Overall
Sales	39,511	47,282	(16.4)	-
Operating income	1,277	4,429	(71.2)
Ordinary income	1,357	4,349	(68.8)
Current net income	75	3,010	(97.5)
Automotive component manufacturing business
Sales	38,972	46,744	(16.6)	-Sales of the brake division decreased by 20.1% year-on-year because orders from domestic truck manufacturers decreased due to a sharp decline in demand at home and overseas.  -Despite an increase in sales of engine parts, total sales of the engine component division decreased by 17.4% year-on-year due to substantial decline in orders for automotive pumps.
Operating income	2,149	5,385	(60.1)	-

Business Partnership
-The Company announced that it has reached an agreement with Mitsubishi Heavy Industries (MHI) to form a capital and business alliance. This partnership is in line with MHI's plans to boost its turbocharger production capacity. MHI will acquire 4.6% of the shares in the Company. In addition, Mitsubishi Turbocharger Asia Co., Ltd. (MTA), a MHI subsidiary in Thailand, will have a 2.5% stake in its Thai unit TBKK (Thailand) Co., Ltd.(TBKK).TBKK will set up a separate manufacturing facility within the premises of MTA and engage in machining of parts exclusively for MTA. (From a press release on Dec 1, 2008)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Group	848	937	929
Brake production facilities	492	548	581
Engine Components	303	309	261
Other divisions	53	79	86

R&D Section
-The following departments are engaged in R&D activities: No. 1 Development Dept., No. 2 Development Dept., New Products Development Dept. and the Experiment Department.
-The R&D activities are promoted by No.1 Development Dept., No.2 Development Dept., New Products Development Dept. and the Experiment Department.

-The Group has a total of 80 researchers, which account for about 5.9 percent of its entire workforce.

Brake Business
-Transition to full air brake system completed in all domestic truck manufacturers, and an air wedge drum brake for heavy-duty vehicle was adopted by more vehicle models. 

-The company developed a new drum brake for medium-duty vehicles for major domestic manufacturers. 

-The Company is conducting research and development activities, which are focusing on safer, environmentally friendly, and energy-saving products, accumulating its technology and passing it on to engineers for the future.

Engine Components
-The company promoted the improvement and development of water and oil pumps for engines of small,  medium, and heavy-duty vehicles and buses. 


-The company developed water and oil pumps for engines of domestic OEMs which meet the new long term exhaust emission regulations.

Other divisions
-The use of retarder has expanded for medium, and heavy-duty vehicles and buses, as it is regarded as a suitable device for engines designed to meet the exhaust emission regulations.  

-The Company worked on enhancing its product mix of retarders, in addition to increasing the number of vehicle models on which they can be adopted.


Licensing of Technology from Other Companies (As of Mar. 2009)

Name of the contractor	Country	Contract item	Contract coverage	Contract period
Arvin Meritor Corp.	U.S.A.	Brake parts for large trucks	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	From March 8, 1991 to March 6, 2011

Licensing of Technology to Other Companies (As of Mar. 2009)

Name of the contractor	Country	Contract item	Contract coverage	Contract period
TBKK (Thailand) Co., Ltd.	Thailand	Automotive brakes, camshafts, oil pumps, water pumps	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	March 29, 1990 - 10 years from sales launch (then automatic extension every year)
Sangsin Brake Ind. Co., Ltd.	Korea	Brakes for large vehicles	Same as above	January 14, 1994 10 years from mass production starting date (then automatic extension every year)
TBK India Private Ltd.	India	Water pumps and oil pumps for automobiles	Same as above	June 28, 1998 7 years from mass production starting date (then automatic extension every year)
GSB-TBK Automotive Components, S.L.	Spain	Same as above	Same as above	June 7, 2000 10 years from mass production starting date (then automatic extension every year)
Full Win Developments Ltd.	China	Brake linings	Same as above	August 1, 2002 10 years from the effective date (then automatic extension every year)
Hangzhou TBK-APG Brakes Co., Ltd.	China	Same as above	Same as above	July 30, 2003 10 years from mass production starting date (then automatic extension every year)
Chang chun TBK Shili Auto Parts Co., Ltd.	China	Friction materials for brakes used in commercial vehicles	Same as above	Dec.22, 2005 10 years from mass production starting date (then automatic extension every year)
TBK America, Inc.	USA	Water pumps and oil pumps for automobiles	Same as above	November 15, 2006 10 years from the initial payment date (then automatic extension every year)

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Automotive Components	3,404	1,310	3,630
-Brake production facilities	573	300	790
-Pump production facilities	664	911	642