Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Sales	101,041	101,942	(0.9)	1)
Operating income	4,975	3,277	51.8	-
Ordinary income	4,932	3,290	49.9	-
Net income	2,876	1,534	87.5	-

Factors
Engines
-The Company sold fewer engines for the Nissan Almera sold in the Middle East and the Nissan March sold in Japan. However, it sold more for the Nissan Tida, Note and Cube marketed in Japan and more for Renault Samsung models. As a whole, its engine sales increased 5.8% to 50.4 billion yen.

Manual transmissions
-Sales for Nissan pickups built for export, and for Renault Samsung vehicles, decreased. As a result, the Company's sales of manual transmissions dropped 30.8% to 17.1 billion yen.

Automobile parts
-Sales of engine parts for the Chinese market increased. As a result, the Company's sales in this segment increased 13.7% to 33.4 billion yen.

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Automotive Business	60	66	67

Product Development Structure

-The Company set up an integrated R&D structure that enables the Company to conduct planning, designing, and test production experiments needed for commercializing products. Also, the Company developed products including clean, economical, and high performance engines and compact and light manual transmissions by utilizing the latest computer systems on digital mockups, simulation and data analysis.

R&D Activities

Engines
-Responding to the global trend of tightening fuel efficiency requirements, the Company is continuously developing engines that offer both higher fuel efficiency and performance.

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Automotive Business	5,400	10,200	5,300

-The Company invested 5,200 million yen (4,300 million yen in the engine department and 900 million yen in the manual transmission department) to rationalize and upgrade equipment producing automotive parts that are used in new vehicle models.

Capital Investment

-For the 2010 fiscal year ending in March 2011, the Company plans to invest 5,900 million yen mainly on manufacturing facilities for producing automotive units and parts, in order to deal with planned model changes of engines and manual transmissions made by its customers.