Sawafuji Electric Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of change(%)	Factors
Overall
Sales	22,750	34,731	(34.5)	-
Operating Profit	(1,130)	(125)	-	-
Ordinary income	(908)	(169)	-	-
Net income	(1,202)	(1,670)	-	-
Electrical Component Business
Sales	8,181	11,120	(26.4)	-Despite symptoms of recovery in demand for electrical components for trucks in the Asian market, which started in the 3rd quarter, demand in the U.S. and Japanese markets fell substantially because of the global decline in demand.
Operating income	449	286	57.0	-

R&D

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	749	923	893
Electrical Component	240	374	418

R&D Activities

Electrical Components
-Currently developing small and light, and high-powered electrical components that are in compliance with new regulations on mid-to-large-sized diesel-powered vehicles.

Investment Activities

Capital Investment

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	490	1,024	750

-The Company made investments in equipment mainly for improving profitability and streamlining production operation.

Plans for Construction of New Facilities

(As of Mar. 31, 2010)

Company/Office Name	Location	Facilities	Expected Investment (millions of yen)	Started	Completed
Nitta Factory	Ota City, Gunma Pref.	Manufacturing facilities for electrical components	273	Apr.2010	Mar.2011