Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	8,972	9,783	(8.3)	-
Operating income	(494)	(1,224)	-	-
Ordinary income	(437)	(1,315)	-	-
Current net income	(477)	(947)	-	-
Automotive device business
Sales	1,421	1,857	(23.4)	-Due to decreased sales of automotive carburetors.
Operating income	102	(30)	-	-
Gas device business
Sales	3,373	3,139	7.4	-Sales increased due to an increase in exports to Korea.
Operating income	(76)	(758)	-	-

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	166	231	203

R&D Activities
Fuel Systems
-The Company conducted R&D activities for its next generation electronically controlled device system for intake air systems.

Automotive Devices
-The Company conducted R&D activities for fuel system devices for CNG vehicles and diesel-alternative LPG vehicles as well as fuel supply system devices for industrial engines using natural gas and LPG.

-In March 2009 the Company achieved the target level and completed research and development of the fuel efficient LPG engine system, an R&D project commissioned by NEDO (New Energy and Industrial Technology Development Organization) in July 2006.

-The Company is conducting R&D activities in response to air pollution prevention measures which are planned in the New Long-term Emission Regulations in Japan.


ECU
-The Company works on developing new control logics that respond to new micro computers; and modeling solutions.

-The Company is working on R&D activities that respond to exhaust emissions regulations worldwide, as well as on OBD (On Board Diagnosis) II. In addition it is involved in developing fuel application technology that responds to customer requirements.

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	625	649	1,658
Automotive device business	81	81	154
Gas device business	196	125	188

-The Company focused investment on products and R&D areas expected to provide growth in the long term. It also made investments in labor savings, work rationalization and improved product liability.

-In the automotive device business, the Company made capital investments in streamlining production.

-In the gas appliance business, the Company invested in facilities and equipment corresponding to new models and more streamlined production.


New facilities (As of Mar. 2009)

Site Name	Location	Segment	Purpose	Planned investment (million JPY)	Start	Planned completion
Atsugi Plant	Atsugi City, Kanagawa Pref.	Gas device business	To streamline manufacturing facilities, etc.	349	2009.04	2010.03
		Gas device business	To streamline manufacturing facilities, etc.	271	2009.04	2010.03
		Automotive device business, Gas device business, General-purpose carburetors (General-purpose equipment business)	To streamline manufacturing facilities, etc.	72	2009.04	2010.03