Dear Stockholders and Investors,
The world simultaneous recession from the latter half of 2008 gave big influence to the automobile industries. However, automobile industries has been rather recovering even though it has not returned to its former state. This is because Government of many countries including Japan took measures to boost domestic demand and subsidize ecocar which increased its demands. Furthermore, the improvement of income standard among rising nations realized additional demands.
Above all China became global number one market and car manufacturer strengthen their production, which resulted our subsidiaries in China could not catch up production.
Starting prediction for 2009 financial result of our company was big loss. First half year we had a hard fight for reduction of sales because of inventory adjustment by car makers. However, strong cost reduction activity and big cut down the expenses resulted in minimize minus and Second half year profit increased because of recovery of operation ratio by increased order volume and increase of sales in rising countries. Full year financial result could show profit. We sincerely thank stockholders' and stakeholders' strong support and cooperation.
We predict this year's profit will expand more because still strong economy in rising countries and economic recovery in Japan and USA even though strong exchange rate of yen affection of cancellation of ecocar subsidize in second half year.
We will work on global most suitable production and most suitable purchasing by further expansion of large developed Chinese subsidiaries and strengthen investment to rising Asian countries like India etc. We will try to diversify business toward non-engine related area like EV development business by SIM-DRIVE Co., In addition, we will start new business in nursing to make a contribution for local society as a memory of our 70th anniversary.
In "11 Mid-Term Plan" started last year, we continue evolving more under the slogan: "Change and Challenge". Toward the" environment advanced company" , "true global company" and highest quality challenge company",we will put our power together for the technological innovation as its key word of environmental technology, global production innovations and improvement of global management control which made full use of five world polar bodies systems which are the strength of the TPR group.
We hope our stockholders and investors to continue the patronage.

Isao Hiraide, Chairman, President and CEO