Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	18,565	22,058	(15.8)	-Sales decreased due to a decline in orders as a result of a drastic contraction of the automobile market;  and other factors.
Operating income	(301)	365	-
Ordinary income	(468)	252	-
Current net income	(678)	13	-
Automotive components division
Sales	17,241	19,130	(9.9)	-
Operating income	(382)	144	-	-

Recent Developments Outside Japan
<China>
-In northern China, the Company installed an extrusion machine at its subsidiary, Dalian Meiwa Chemical Industry Products Co., Ltd. In December 2008, the Chinese subsidiary started to produce its main product, Meitone, and strengthened its position in the automotive components business.

Outlook for FY2009

(in millions of JPY)

	FY2008	FY2009	Rate of Change (%)
Automotive components division	17,241	14,050	(18.5)
Total	18,565	15,500	(16.5)

Business Strategy Outside Japan
<China>
-The Company will continue to focus on its investments in China, which include launching new production facilities, because the Chinese automotive market is expected to continue to grow in the future, with many Japanese automakers concentrating their operations in Guangzhou in southern China.

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Automotive components division	32	84	27

R&D Activities
Automotive components division
The Company will work on the following ideas in its R&D activities. It will be focusing on reducing costs, creating products that are both lighter in weight and more rigid, improving products to make them more commercially appealing, and making products that contribute to improving the environment.
-Improving the product performance of Meitone
-Developing lightweight and highly rigid deck board systems
-Improving the product performance of mats
-Developing lightweight foaming materials that can be used for press molding
-Developing recyclable materials to reduce environmental impact

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	1,388	1,108	1,932
Automotive components division	1,385	1,099	1,931

-For the automotive components division, the Company invested mainly to install production facilities and molds at existing plants in order to manufacture products that are for new orders the Company won. The Company aims to enhance the production capacity and streamline and renew the production facilities through making capital investments.


Planned Capital Investments (As of Mar. 2009)

Name	Location	Business/Facilities	Total Planned  Investment (million JPY)	Start	Planned completion
Nagano Plant	Shimoina-gun, Nagano Pref.	Facilities for manufacturing cabin interior floor parts	98	July, 2008	June, 2009