Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	40,677	48,820	(16.7)	-
Operating income	838	4,074	(79.4)	-
Ordinary income	1,210	4,877	(75.2)	-
Current net income	500	3,281	(84.8)	-

Contracts
-The Company has already acquired a new order from Ford Motor Company for components for pickup trucks. It will also be sending its engineers to Ford R&D departments in an attempt to win more orders by getting directly involved with its development activities. The Company will begin supplying fasteners to clip both exterior and interior parts to bodies of new pickup trucks that the US automaker is planning to release in 2010. The fastener production for Ford will begin in the latter half of 2009 at its Thai plant. (From an article in the Nikkan Jidosha Shimbun on Jun.16, 2008)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	515	544	421
Automotive Products	396	427	306

R&D Structure
-R&D activities were conducted by the design department, development groups in each SBU, and the development division of the Company's subsidiary, Pilolax Medical Devices, Inc.

-The Company also conducted joint development with universities and external research institutes. 


R&D Activities
Precision springs
-The Company developed compressed coil spring materials used in engines and gears. 

-It commercialized products that are more compact and lighter in weight 

-The Company strengthened its development activities on complex springs, enabling them to be installed easier. 

-The Company worked on developing surface coatings for spring materials. These coatings do not contain hexavalent chromium.

-The Company completed development of hexavalent chromium free surface treatment, complying with Directives of the European Parliament and of the Council on end-of life vehicles and Directives of the European Parliament and of the Council on the restriction of the use of certain hazardous substances in electrical and electronic equipment.

-The Company worked towards making its products meet industry (Japan Automobile Manufacturers Association) set restrictions for the use of environmentally hazardous substances including hexavalent chromium, vinyl chloride and VOC.

-It started development activities on products that comply with the new REACH Regulation in Europe 

Industrial fasteners
-The Company is developing versatile fasteners that can be used on both thin and thick metal plates, fasteners that can be more easily installed on vehicle bodies because they require less force when being installed, fasteners that have very powerful fastening capabilities, and fasteners that can be more easily disassembled when cars are being scrapped.  

-The Company is considering migrating to materials that emit less odor in vehicle interiors. In addition, it is working to develop environmentally friendly products and ones that enhance interior comfort. 

-The Company is currently developing high-strength, user-friendly net hooks used in car interior parts.

Small units
-The Company developed side locks for glove boxes, releasing them in January 2003. These are now being equipped on an increasing number of vehicle models, improving performance and workability.

-The Company worked on developing new dampers. 

-The Company is currently developing hinge parts to open/close the console box lid and the floor board in the rear luggage compartment.

Fuel systems
-In the area of valves for plastic tanks, the Company enhanced the performance and reduced the manufacturing costs of rollover valves and inlet check valves.


Licensing-in Technology from Other Companies (As of Mar. 2009)

Company	Product	Contract Detail	Term
Norma Germany GmbH	Automotive fuel delivery components	Approved use of patent	September 18, 1995 - August 17, 2000 This contract renews annually
Norma Germany GmbH	Plastic fuel tank components	Approved use of patent	Added to the contract above
Norma Germany GmbH	Plastic fuel tank components	Approved use of patent	December 13, 2001 - December 12, 2006 This contract renews annually

Licensing-out Technology to Other Companies  (As of Mar. 2009)

Company	Product	Contract Details	Term
Piolax of Taiwan Inc.(Taiwan)	Metallic and plastic fasteners	Manufacturing technology	From October 6, 1987 through October 5, 1992. To be renewed every 10 years.
Taiwan Houmu Industrial Co., Ltd. (Taiwan)	Pressure springs, torsion springs and valve springs	Manufacturing technology	From November 1, 1978 through October 31, 1983. To be renewed every 5 years.
Piolax Corp.(USA)	Precision plastic slips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from April 1, 1993.
Piolax Ltd. (UK)	Precision plastic slips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from August 8, 1995.
Piolax Co., Ltd. (Korea)	Precision plastic slips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	From June 20, 1995 through June 19, 2006. To be renewed each year.
Piolax (Thailand) Ltd. (Thailand)	Precision plastic slips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from August 10, 2000.
Dongguan Piolax Co., Ltd. (China)	Precision plastic slips, precision spring, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	From July 1, 2004 through June 30, 2014. To be renewed each year.

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	N.A.	3,567	3,986
Automotive Products	2,876	N.A.	N.A.

-The Company spent 1,805 million yen in Japan and 1,129 million yen outside Japan.


New Facilities (automobile related facilities) (As of Mar. 2009)

Company Office	Location	Business	Expected Investment (Thousands of yen)	Started in:	Expected to Complete in:
Piolax Inc. Yokohama Technical Center	Yokohama City, Japan	Dies	418	Apr. 2009	Mar. 2010
Piolax Inc. Mooka Plant	Tochigi Pref., Japan	Production facilities and dies	315	Apr. 2009	Mar. 2010
Piolax Inc. Fuji Plant	Fuji City, Japan	Production facilities and molds	238	Apr. 2009	Mar. 2010
Piolax Inc. Kyushu Plant	Fukuoka Pref., Japan	Production facilities and dies	98	Apr. 2009	Mar. 2010
Piolax Corp. Head Office/ Plant	Georgia, USA	Production facilities and dies	295	Jan. 2009	Dec. 2010
Piolax Co., Ltd Head Office/Plant	Inchon, Korea	Production facilities and dies	115	Apr. 2009	Mar. 2010
Piolax (Thailand) Ltd. Plant	Rayong, Thailand	Production facilities and dies	240	Apr. 2009	Mar. 2010
Dongguan Piolax Co., Ltd.	Dongguan, China	Production facilities and dies	310	Jan. 2009	Dec. 2010