Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	309,283	319,765	(3.3)	-Sales declined due to a decrease in program business in Japan and to negative currency translation, although orders for automotive parts in the rest of Asia increased.
Operating profit	6,050	8,799	(31.2)	-In Japan, sales of automotive parts decreased, which resulted in lower income. Lower figures were also posted due to negative currency translation. Depreciation costs and R&D expenditures increased. In the rest of Asia, sales increased, which resulted in greater income. Cost reduction activities were effective and the Company posted favorable figures due to positive currency translation stemming from sales in dollars in North America. Overall, though, sales decreased.
Ordinary profit	5,619	8,124	(30.8)
Net income	391	7,360	(94.7)
Automotive components field
Sales	178,877	196,435	(8.9)	<Japan> -Sales decreased due to fewer orders for motor cycle components and underbody parts. Plus the Company made a change to its product mix. <North America> -Sales decreased due to fewer orders at the Company's subsidiaries in Canada and the U.S., namely Yachiyo of Ontario Mfg., Inc. and AY Manufacturing Ltd. Also, the Company reported lower figures due to negative currency translation. <Asia other than Japan> -Even though orders increased at its subsidiaries in the rest of Asia, namely Yachiyo Zhongshan Manufacturing Co., Ltd. (China); Yachiyo Wuhan Mfg. Co. Ltd. (China); Siam Goshi Mfg. Co., Ltd. (Thailand); and Goshi-Thanglong Auto-Parts Co., Ltd. (Vietnam), the Company suffered negative currency translation. Overall, though, sales in the rest of Asia showed a year-on-year increase.
Automobile Assembly
Sales	130,167	122,943	5.9	-Sales grew, thanks to increased orders for the new Life, which was released in November 2008.

Recent Developments in Japan
-The Company, which manufactures Honda's mini vehicles, will establish a more independent business structure to support the automaker's new model launches. The Company's production division will function autonomously just like the Honda Saitama Factory and Suzuka Factory, which are directly managed by Honda. As a result, Honda will delegate responsibilities to the Company for preparing mass production of new models and launching the first complete car by fiscal year 2010. Honda believes that increasing its business operations will sharpen the Group's competitive edge in the mini-vehicle market. (From an article in the Nikkan Jidosha Shimbun on Apr. 3, 2008)

Outlook for FY2009

(in millions of JPY)

	FY2008 (actual)	FY2009 (forecast)	Year-on-year comparison
Sales	309,300	288,000	(21,300)
Car business	130,200	164,000	33,800
Parts business	179,100	124,000	(55,100)

Sales Volume Forecasts (car business)

(in 1,000 units)

	FY2008 (actual)	FY2009 (forecast)	Year-on-year comparison
Total production volume	192	165	（27）

Sales Volume Forecasts (parts business - tank)

(in 1,000 units)

	FY2008 (actual)	FY2009 (forecast)	Year-on-year comparison
Total production volume	2,818	2,435	(383)
Japan	1,137	879	(258)
North America	804	700	(104)
Thailand	386	298	(88)
China	491	558	67

Sales Volume Forecast (parts business - sunroof)

(in 1,000 units)

	FY2008 (actual)	FY2009 (forecast)	Year-on-year comparison
Total production volume	1,369	1,041	(328)
Japan	349	152	(197)
North America	794	545	(249)
China	226	344	118

Investment Plan

(in millions of JPY)

	FY2008 (actual)	FY2009 (forecast)
Total investment (consolidated)	23,400	11,100
Domestic car business	7,300	5,800
Domestic parts business	8,700	2,400
Overseas	7,400	2,900

Major Investment Plans for FY2009

(in millions of JPY)

	Amount
Land acquisition	(8)
-For a new-car production plant	8
New car production plant	(8)
-to build an engine plant facility	8
New company (YG Tech)	(1)
-Construction of plant and transferring operations	1
New facilities	(2)
-New facility in India	2
Capacity expansion	(19)
-Car business	1
-Parts business (addition of Tochigi Laboratory)	6
-Subsidiaries outside Japan (expansion of sunroof production capacity in China, etc.)	12
New product models (including dies and tools)	(58)
-Japan (cars and parts)	49
-Subsidiaries outside Japan	9
Rationalization and renovation activities	(15)
-Japan (cars and parts)	8
-Subsidiaries outside Japan	7
Total	111

Tenth Medium-term Business Plan (Apr. 1, 2008 through Mar. 31, 2011)

Sales Plan

(in millions of JPY)

	FY2008	FY2009	FY2010
Sales	309,300	288,000	330,000
Car business	130,200	164,000	-
Parts business	179,100	124,000	-

Sales Volume of Major Products (resin fuel tanks)

(in 1,000 units)

	FY2008	FY2009	FY2010
Total production volume	2,578	2,177	2,400
Japan	901	687	-
North America	800	634	-
China	491	558	-
Asia	386	298	-

Sales Volume of Major Products (sunroofs)

(in 1,000 units)

	FY2008	FY2009	FY2010
Total production volume	1,369	1,041	1,150
Japan	349	152	-
North America	794	545	-
China	226	344	-

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	2,240	1,657	1,622

R&D structure
-R&D activities are conducted at both the Company, Goshi Giken Co., Ltd.; and Yachiyo of America Inc.


For automotive components, achievements  and continuing R&D activities involved the following:
(1) Launching mass-production of plastic fuel tanks for installation in new vehicles
(2) Launching mass-production of sunroofs for installation in new vehicles
(3) Development of metal honeycomb, high-density cell carriers for motor cycles, which comply with emission standards in Japan and abroad.
(4) Research and development of new-design resin fuel tanks
(5) Research and development of environmental technology for producing sunroofs.
(6) Research and development on environmental technology for sunroofs.
(7) Research and development on environmentally friendly plastic fuel tanks for motor cycles
(8) Research and development of environmental technology for producing resin fuel tanks for motor cycles
(9) Research and development of press forming technology capable of handling semi-melted aluminum materials

Investment Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	23,407	21,874	10,181
Automotive components	14,281	15,339	8,991
Automobile Assembly	9,007	6,507	1,176

Automotive components
-Investment was made in order to respond to new orders, expand and strengthen production capacity, and maintain and streamline processes.

Automobile Assembly
-Investment was made in order to acquire land for a new plant, respond to new orders, and expand and strengthen production capacity.


Domestic Investments
-At Yokkaichi Plant, the Company added an engine rebuild plant and car assembly plant, targeting a launch of operations in the latter half of 2010. In response to the drastic and sudden change in the recent economic environment, however, the Company  postponed the launch of the car assembly plant by over one year. As for the engine assembly plant, it already launched operations in May 2009, as scheduled.


New Facilities for Automotive Parts Business (As of Mar. 2009)

Name	Purpose	Planned total investment (in millions of JPY)	Starting	Planned completion
Kashiwabara Plant (Saitama Prefecture, Japan)	Production facilities R&D facilities	274	2009.01	2010.03
Yokkaichi Plant (Mie Prefecture, Japan)	Production facilities	6,113	2008.06	2010.03
Suzuka Plant (Mie Prefecture, Japan)	Production facilities	534	2008.03	2010.01
Kameyama Office (Mie Prefecture, Japan)	Production facilities	37	2008.06	2010.01
Tochigi Research Center (Tochigi Prefecture, Japan)	R&D facilities	744	2008.09	2009.11
Goshi Giken Co., Ltd.  (Kumamoto Prefecture, Japan)	Production facilities	1,261	2008.02	2010.03
Yachiyo of Ontario Mfg., Inc. (Ontario, Canada)	Production facilities	580	2007.12	2009.12
Yachiyo Manufacturing of Alabama LLC (Alabama USA)	Production facilities	1,667	2006.07	2009.12
AY Manufacturing Ltd. (Ohio, USA)	Production facilities	664	2008.06	2009.12
Yachiyo Zhongshan Manufacturing Co., Ltd. (Zhongshan, China)	Production facilities	406	2008.12	2009.09
Yachiyo Wuhan Mfg. Co., Ltd. (Wuhan, China)	Production facilities	231	2008.04	2009.12