To our shareholders and investors

Firstly I would like to express sincere gratitude for your support to NPR group.

　Last year’s Japanese economy was under difficult circumstances such as reduction in capital spending and deterioration in employment, but Japanese economy shows signs of recovery in specific industrial sectors due to economic stimulus package by the government and other things.  While in some countries including China economy slightly recovered, the entire world recession has continued and there is a concern for protracted recession in Europe and the US.

　In the automobile industry that NPR group is involved in, domestic production is being gradually recovered by advancement of inventory adjustment and tax reduction for eco-friendly car purchase.  Both domestic sales and export, however, fell short of the previous year.

　NPR group have implemented various initiatives such as building up global supply system, expanding sales and developing new products under our guideline, “Start on business structural reform (Improve efficiency of human, material and financial resources)”.  These efforts were offset, however, by reduction in car production that continued from late 2008.  As a result, the consolidated sales in the first half of fiscal 2009 fell 36.3% year-on-year to ￥17,195 million .

　With regard to profit and loss, despite we have implemented reduction of labor and other costs to improve the earnings; impact of reduced car production in Japan and abroad was serious, thereby the ordinary loss was ￥1,886 million.  Interim net loss was ￥1,943 million due to extraordinary loss of PCB disposal cost.

　Although circumstances surrounding automobile industry are showing improvement little by little, recovery of the market is erratic and thus overall, difficult circumstances will continue.

　NPR group will continuously strive to improve earning power as soon as possible mainly by reducing fixed costs.  We will also make efforts to improve corporate value by actively working on the following tasks: developing earth-conscious products such as for low-fuel consumption, low emission and alternative fuel, efficiently utilizing foreign and domestic production bases, improving or eliminating unprofitable products, and approaching to non-vehicle engines.

　Your continued support and understanding will be greatly appreciated.