Financial Overview

( in millions of JPY )

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	440,908	484,878	(9.1)	Sales and income decreased due to a decrease in orders in both the automotive and information equipment segments.
Operating income	10,459	30,356	(65.5)
Ordinary income	12,925	31,336	(58.8)
Net income	5,262	20,361	(74.2)
Suspension Springs Division
Sales	101,194	116,917	(13.4)	Sales and income decreased due to a decrease in automobile production volume and an unprofitable vehicle model mix on which the Company's products were installed.
Operating income	344	4,757	(92.8)
Seat Division
Sales	169,870	171,603	(1.0)	While there was a slight decline in sales, since customers launched new vehicles models on which the Company provided its products, operating income substantially decreased due to an unprofitable vehicle model mix.
Operating income	3,537	8,033	(56.0)
Precision Parts Division
Sales	132,404	154,723	(14.4)	Sales and income decreased as a result of a decrease in automotive production volume, lower demand for HDD suspensions, and negative foreign currency translation caused by the appreciation of the yen.
Operating income	4,333	14,450	(70.0)

Production Alliance with Grupo Antolin

Grupo Antolin and the Company have agreed to produce headliners in Thailand. (From a press release on Oct. 2, 2008)

Earnings Forecast by Segment

( in millions of JPY )

Segment		FY2009 (Forecast)	FY2008 (Actual)	Rate of Change (%)
Suspension springs	Sales	77,200	101,200	(23.7)
	Operating income	(2,700)	400	-
	Operating income ratio (%)	-	0.3	-
Seats	Sales	144,500	169,900	(14.9)
	Operating income	2,600	3,500	(26.2)
	Operating income ratio (%)	1.8	2.1	-
Precision parts	Sales	119,000	132,400	(10.1)
	Operating income	3,100	4,300	(28.0)
	Operating income ratio (%)	2.6	3.3	-
Industrial Machinery & Equipment	Sales	32,300	37,400	(13.7)
	Operating income	1,500	2,300	(31.8)
	Operating income ratio (%)	4.7	6.0	-
Total	Sales	373,000	440,900	(15.4)
	Operating income	4,500	10,500	(57.0)
	Operating income ratio (%)	1.2	2.4	-

Earnings Forecast by Region

( in millions of JPY )

Region		FY2009 (Forecast)	FY2008 (Actual)	Rate of Change (%)
Japan	Sales	274,500	305,000	(10.0)
	Operating income	2,200	1,400	51.5
	Operating income ratio (%)	0.8	0.5	-
North America	Sales	32,300	45,800	(29.4)
	Operating income	(1,000)	200	-
	Operating income ratio (%)	-	0.4	-
Asia	Sales	66,200	90,100	(26.5)
	Operating income	3,300	8,900	(62.7)
	Operating income ratio (%)	5.0	9.8	-
Total	Sales	373,000	440,900	(15.4)
	Operating income	4,500	10,500	(57.0)
	Operating income ratio (%)	1.2	2.4	-

Capital Investment Plan

( in millions of JPY )

	FY2009 (Planned)	FY2008 (Actual)	Rate of Change (%)
Overall	11,859	34,800	(65.9)

R&D Expenditure

( in millions of JPY )

	FY2008	FY2007	FY2006
Overall	11,452	9,989	9,676
Rate of expenditure to sales (%)	2.6	2.1	2.3

Suspension Spring Division
- R&D Expenses: 1,517 million yen
- Major issues: To reduce the costs of coil springs and develop tapered coil springs. To improve the durability of stabilizers and address the issue of three-dimensional bending. To develop high-strength leaf springs.
- Major achievements: The Company succeeded in improving durability, ensuring quality, and further reducing prices.

Seat Division
- R&D Expenses: 4,623 million yen
- Major issues: To create frames based on new structural designs, find further applications for high tensile steel sheets, and improve seat mechanisms in order to reduce products weight. To standardize parts and improve welding methods in order to reduce cost.
- Major achievements: The Company received new orders for finished seats designed for small passenger cars and supplied active head rests to more vehicle models.
- The Company also conducted R&D activities to improve the basic performance of car seats, which included improving seating comfort and reducing driver fatigue.

R&D