Second Quarter Financial Statements 2009(From April 1, 2008 to September 30, 2008)

TBK Group Management PhilosophyThe TBK Group is a major player in the development, production and sales of components such as

brakes, water pumps for engine cooling and oil pumps for engine lubrication. These components are

essential to the safety of small to large vehicles and buses. TBK upholds its flagship policy of produc-

ing customer-oriented products while contributing to the well-being of society. Since our customers

demand high levels of environmental friendliness, consumer safety and affordability, TBK realizes the

need for adding value through its quality assurance policy of "providing customers with products

excelling in safety and reliability."

Fulfilling our corporate social responsibility allows TBK to enhance business and management.

This in turn enables TBK to meet the requirements of all its stakeholders.

Contents

Consolidated 2nd Quarter Financial Highlights ............................... 1

Qualitative information and financial statements, etc. ..................... 2

Consolidated Interim Financial Statements ..................................... 5

Global Production and Marketing Networks .................................... 9

Corporate Information .................................................................... 10

1TBK Co., Ltd.

Consolidated 2nd Quarter Financial HighlightsTBK Co., Ltd. and Consolidated Subsidiaries

Six-months ended Sept. 30, 2008 and the year ended March 31, 2008

2005 ’06 ’07 ’08 ’09

Consolidated Net Sales(¥ millions)

2005 ’06 ’07 ’08 ’09

Operating Income(¥ millions)

2005 ’06 ’07 ’08 ’09

Net Income(¥ millions)

16,902

35,350

41,122

19,385

41,974

20,289

47,282

23,942

24,657

1,666

734

2,515

1,331

3,911

1,2551,166

3,860

1,650 1,928

4,429

3,458

AnnualInterim

AnnualInterim

AnnualInterim

2,339

1,5571,682

3,179

1,3731,261

3,010

Net sales ....................................................................................... ¥24,657 ¥47,282 $238,070

Operating income ......................................................................... 1,928 4,429 18,615

Net income.................................................................................... 1,166 3,010 11,258

Total net assets .............................................................................. 19,581 18,915 189,060

Total assets .................................................................................... 47,301 46,675 456,705

Capital adequacy ratio (%) .......................................................... 40.1 39.3 —

Net assets per share (Yen) ............................................................ 646.72 624.53 6.244

Millions of yenThousnads of

US dollars

2008 2008 2008

Six months endedSept. 30,

Year endedMarch 31,

Six months endedSept. 30,

Notes:1. Yen amounts are rounded down to the nearest ¥1 million.

2. U.S. dollar amounts are translated, for convenience only, at ¥103.57=US$1.00, the rate prevailing on Sept. 30, 2008, and translated US dollar amounted are rounded down to the nearest $1 thousand.

Qualitative information concerning consolidated

business results

In the first and second quarters of 2008, Japan's economic slow-

down continued as the effects of the US subprime problem

caused chaos in world financial markets, the cost of crude oil

and raw materials increased sharply, currency fluctuations

caused reduced corporate earnings, and consumer spending

decreased.

In this environment, TBK group saw a strong increase of or-

ders to the Company's engine components business. As a re-

sult, consolidated net sales for the first two quarters increased

2.9% year-on-year to ¥24,657 million.

Although the Company made efforts to decrease the cost of

goods and undertook rationalization measures, soaring prices for raw materials caused con-

solidated operating income to decrease 17.5% to ¥1,953 million. Similarly, ordinary income

decreased 13.9% to ¥1,953 million, and net income decreased 7.5% to ¥1,166.

Performance for global areas were as follows:

Japanese domestic net sales were ¥21,494 million, and operating income was ¥1,975 million.

Net sales in the rest of Asia were ¥4,760 million, and operating income was ¥518 million.

North American sales were ¥267 million, and operating income was ¥33 million.

Qualitative information and financial statements, etc.

Hiroshi SumitaniPresident

2TBK Co., Ltd.

Sales by geographical area(including internal transaction)

U.S.A.: ¥267 million (1.0%)

Asia: ¥4,760 million (17.9%)

Japanese domestic: ¥21,494 million (81.0%)

3TBK Co., Ltd.

Qualitative information concerning consolidated financial condition

a. Consolidated Balance Sheet Status

In the second quarter, total assets recorded at the end of the consolidated accounting term

increased 1.3% or ¥625 million year on year to ¥47,301 million. This was mainly due to a

¥400 million increase in inventory.

Liabilities decreased 0.1%, or ¥40 million to ¥27,719. The primary causes were, a ¥492

million increase in payables for equipment, and a decrease of ¥628 million of both loans and

corporate bonds.

Net Assets increased by 3.5%, or ¥666 million, to ¥19,581 million. The primary causes for

this are due to dividend payments of ¥234 million made because of the increase of earnings

to ¥1,166 million for the last period, coupled with declining stock prices and a write-down of

investments of ¥166 million. As a result, the equity ratio increased year on year from 39.3%

to 40.1%.

b. Consolidated cash flows status:Cash and cash equivalents at the end of the second quarter stood at ¥881 million. A break-

down of consolidated cash flows follows.

i) Operating activities

Cash from the first two quarters of business activities was ¥2,078 million. Major factors in-

clude depreciation costs of ¥1,217 million, an increase of account payables of ¥498 million,

an increase in inventory of ¥441 million and corporate tax payments of ¥751 million, all

against a pre-tax net profit of ¥1,895 million for the quarter..

ii) Investing activities

The first two quarters showed a decrease in investment funds to ¥1,391 million. This is mainly

due to a ¥1,310 million outflow for acquiring tangible fixed assets when the Company in-

vested in plant and infrastructure for the car part manufacturing business.

iii) Financing activities

Net cash used in financing activities was ¥981 million. This was mainly due to a ¥595 million

outflow for interest payments for long-term loans, corporate bonds and interest-bearing debt

and a ¥237 million outflow for dividend payments.

4TBK Co., Ltd.

Qualitative information concerning consolidated business results

The outlook for the next half-year is increasingly uncertain due to anxiety about the future

deterioration of business conditions, the continuing downward trend in the domestic truck

manufacturing industry, as well as the predicted drop in demand from developing nations

due to steep price hikes caused by a strong yen. A sharp decline in demand is forecast.

Further, the sudden increase in raw material prices during the first half of the year, a strong

yen, declining share prices, add to the concern of a deteriorating Japanese economy and con-

tribute to a challenging business environment for the Group.

Under these severe circumstances, we will step up sales activities to increase orders, as well

as decreasing costs, strengthening overseas operations, and work hard to improve our perfor-

mance. However, considering the predicted reduction in production from the truck manufac-

turing industry, we have revised earnings downward for the fiscal year ending March 2009 to

forecast sales of ¥40,000 million, operating income of ¥1,200 million, and ordinary income

of ¥1,100 million.

Major Performance

Net Sales(¥ billions)

2005/3 2006 2007 2008 2009(Est.)

35.3

41.1 41.947.2

40.0

Operating Income(¥ billions)

2005/3 2006 2007 2008 2009(Est.)

3.1

3.83.4

4.4

1.2

Interest bearing debt(¥ billions)

2004/3 2005 2006 2007 2008

16.6

12.811.7

9.6

6.9

Retained Earnings(¥ billions)

2005/3 2006 2007 2008 2009(Est.)

4.7

2.4

5.9

8.6

9.5

Reducing TBK's dependency on the domestic truck market(%)

2004/3 2005 2006 2007 2008

74.5

60.1 60.4 60.0 58.0

5TBK Co., Ltd.

AssetsCurrent assets:

Cash on hand and at banks ...................................................... ¥ 881 ¥ 1,223 $ 8,510Notes and accounts receivable .................................................. 11,704 11,485 113,009Merchandise and finished products ......................................... 1,261 997 12,179Work in progress ........................................................................ 1,112 1,076 10,744Raw materials and stores ........................................................... 1,284 1,184 12,402Deferred tax assets ..................................................................... 417 474 4,032Other .......................................................................................... 350 364 3,386Reserve for possible loan losses ................................................ (26) (24) (258)Total current assets ..................................................................... 16,986 16,781 164,005

Non-current assetsTangible fixed assets:

Land ...................................................................................... 9,945 9,953 96,024Buildings and structures: Buildings and structures .................................................. 16,328 16,271 157,652 Less: Accumulated depreciation ...................................... (6,117) (5,819) (59,063) Buildings and structures — net ....................................... 10,210 10,452 98,588Machinery: Machinery ......................................................................... 22,244 21,524 214,780 Less: Accumulated depreciation ...................................... (15,736) (15,352) (151,945) Machinery — net .............................................................. 6,507 6,171 62,835Construction in progress ..................................................... 786 447 7,597Other: Other ................................................................................. 7,168 7,067 69,209 Less: Accumulated depreciation ...................................... (6,122) (5,934) (59,115) Other — net ...................................................................... 1,045 1,132 10,094Total tangible fixed assets .................................................... 28,496 28,157 275,140

Intangible fixed assets:Software ................................................................................ 17 12 173Other ..................................................................................... 79 82 766Total intangible fixed assets ................................................. 97 94 939

Investment and other assets:Investment securitites ........................................................... 656 707 6,341Investment in capital ............................................................ 228 228 2,208Deferred tax assets ................................................................ 646 481 6,244Other ..................................................................................... 238 245 2,303Reserve for possible loan losses ........................................... (16) (16) (160)Reserve for loss on investment ............................................ (32) (4) (314)Total investment and other assets ....................................... 1,721 1,642 16,622

Total non-current assets ............................................................. 30,315 29,894 292,702Total assets ....................................................................................... ¥47,301 ¥46,675 $ 456,709

Consolidated Balance SheetsTBK Co., Ltd. and Consolidated Subsidiaries

Notes:

1. Yen amounts are rounded down to the nearest ¥1 million.

2. U.S. dollar amounts are translated, for convenience only, at ¥103.57=US$1.00, the rate prevailing on Sept. 30, 2008, and translated US

dollar amounted are rounded down to the nearest $1 thousand.

Consolidated Financial Statements

Millions of yenThousnads of

US dollars

Sept. 30, 2008

Mar. 31, 2008

Sept. 30, 2008

6TBK Co., Ltd.

LiabilitiesCurrent liabilities:

Notes and accounts payable ...................................................... ¥ 8,336 ¥ 7,902 $ 80,491Short-term borrowings .............................................................. 3,243 2,934 31,314Bonds due whithin one-year ..................................................... 940 940 9,075Accrued income taxes ................................................................ 843 935 8,144Accrued bonuses to employees ................................................. 666 671 6,433Accrued bonuses to the directors .............................................. 25 100 241Notes payable-equipment ......................................................... 935 442 9,035Other .......................................................................................... 1,261 1,555 12,182Total current liabilities ............................................................... 16,252 15,482 156,918

Non-current liabilities:Corporate bonds ........................................................................ 70 540 675Long-term borrowings ............................................................... 1,989 2,456 19,208Deferred tax liabiliteis ............................................................... 17 — 167Deferred tax liabiliteis on land revaluation ............................. 3,060 3,060 29,554Accrued pension and severance costs ....................................... 2,390 2,323 23,080Long-term unearned revenue .................................................... 558 571 5,388Security deposits received .......................................................... 1,866 1,845 18,025Lease deposits received .............................................................. 1,344 1,344 12,976Other .......................................................................................... 170 136 1,645Total non-current liabilities ....................................................... 11,467 12,278 110,723

Total liabilities ................................................................................. 27,719 27,760 267,642

Net Assets:Shareholders' equity:

Common stock .......................................................................... 4,617 4,617 44,581Capital surplus ........................................................................... 250 250 2,415Retained earnings ....................................................................... 9,586 8,662 92,565Treasury stock ............................................................................. (27) (25) (261)Total shareholders' equity ......................................................... 14,427 13,504 139,301

Valuation and translation adjustments:Net unrealized (losses) gains on securities .............................. (28) 138 (272)Deferred losses on hedging instruments .................................. (14) (19) (139)Net unrealized gains from revaluation of land ........................ 4,645 4,645 44,855Foregin currency translation adjustments ................................ (48) 63 (469)Total valuation and translation adjustments ........................... 4,554 4,828 43,974

New stock subscription rights ........................................................ — — —Minority interest .............................................................................. 599 582 5,790Total net assets ................................................................................. 19,581 18,915 189,067

Total liabiliteis and net assets .............................................................. ¥47,301 ¥46,675 $456,709

Millions of yenThousnads of

US dollars

Sept. 30, 2008

Mar. 31, 2008

Sept. 30, 2008

7TBK Co., Ltd.

Net sales ....................................................................................... ¥24,657 ¥47,282 $238,074Cost of sales .................................................................................. 21,041 39,641 203,163

Gross profit ............................................................................. 3,615 7,641 34,911

Selling, general and administrative expenses .............................. 1,687 3,211 16,295Operating income .................................................................. 1,928 4,429 18,615

Other income:Interest income ........................................................................ 0 2 9Dividend income .................................................................... 6 17 61Income from the sale of iron scrap ........................................ 127 136 1,232Other ....................................................................................... 52 77 504Total other income .................................................................. 187 234 1,808

Other expenses:Interest expense ....................................................................... 107 257 1,035Foreign exchange losses .......................................................... 48 32 472Other ....................................................................................... 6 25 59Total other expenses ................................................................ 162 314 1,567

Ordinary income ......................................................................... 1,953 4,349 18,857

Extraordinary gains:Gains on prior year's adjustments .......................................... — 64 —Reversal of reserve for loss on investment ............................. — 8 —Reversal of reserve for possible loan losses ............................ — 1 —Gains on reversal of stock options ......................................... — 21 —Gains on sales of fixed assets .................................................. 0 2 5Total extraordinary gains ........................................................ 0 114 5

Extraordinary losses:Loss on sales/disposal of property, plant and equipment .... 10 193 104Loss on devaluation of investment securities ........................ 19 38 192Provision for loss on investment ............................................ 27 — 268Loss on devaluation of membership, etc. .............................. — 9 —Loss on product claims ........................................................... — 258 —Total extraordinary losses ....................................................... 58 500 565

Income before income taxes and minority interest ................ 1,895 3,963 18,297

Income taxes:Current ..................................................................................... 637 1,377 6,150Deferred ................................................................................... 26 (520) 260Total income taxes ................................................................... 663 856 6,411

Ninority interest ............................................................................ 64 96 624

Net income ................................................................................... ¥ 1,166 ¥ 3,010 $ 11,261

Consolidated Statements of OperaitonsTBK Co., Ltd. and Consolidated Subsidiaries

Millions of yenThousnads of

US dollars

2008 2008 2008

Six months endedSept. 30,

Year endedMarch 31,

Six months endedSept. 30,

8TBK Co., Ltd.

Consolidated Statements of Cash FlowsTBK Co., Ltd. and Consolidated Subsidiaries

Cash flows from operating activities:Income before income taxes and minority interest .................... ¥ 1,895 ¥ 3,963 $ 18,297Adjustment —

Depreciation ............................................................................ 1,217 2,335 11,752Increase (decrease) in accrued bonuses to employees .......... (2) 7 (26)Increase (decrease) in accrued bonuses to directors ............. (75) 49 (724)Increase in accrued pension and severance costs .................. 51 75 501Interest and dividend income ................................................ (7) (20) (71)Interest expense ....................................................................... 107 257 1,035Loss on sale of property, plant and equipment ..................... 0 (2) 4Loss on disposal of property, plant and equipment ............. 9 193 94Decrease (increase) in trade receivables ................................ (313) 84 (3,026)Increase in inventories ............................................................ (441) (257) (4,263)Increase in notes and accounts payable ................................. 498 550 4,813Decrease (increase) in consumption taxes receivable ........... 1 (5) 10Increase (decrease) in consumption taxes payable ............... (129) 102 (1,252)Increase (decrease) in accounts payable ................................ 86 (31) 833Other ........................................................................................ 13 (257) 133 Subtotal ................................................................................ 2,911 7,042 28,109

Interest and dividends received .............................................. 7 20 71Interest paid ............................................................................. (89) (222) (859)Income taxes paid ................................................................... (751) (1,791) (7,253)

Net cash provided by operating activities .................................... 2,078 5,048 20,068

Cash flows from investing activities:Paymant for purchase of property, plant and equipment .......... (1,310) (3,386) (12,653)Proceeds from sale of property, plant and equipment ............... 145 38 1,402Payment for purchase of intangible fixed assets ......................... (3) (13) (31)Payment for purchase of investment securities ........................... (247) (140) (2,390)Proceeds from sale of investment secuirties ................................ — 216 —Payment of loans .......................................................................... (0) 0 (0)Proceeds from collection of loans ............................................... 0 1 3Other ............................................................................................ 23 (17) 229Net cash used in investing activities ............................................ (1,392) (3,303) (13,442)

Cash flows from financing activiteis:Proceeds from short-term borrowings ......................................... 3,030 5,376 29,255Repayment of short-term borrowings .......................................... (2,428) (5,574) (23,443)Proceeds from long-term borrowings .......................................... 262 1,800 2,532Repayment of long-term borrowings ........................................... (989) (1,782) (9,553)Payment for bond retirement ....................................................... (470) (940) (4,537)Payment for early redemption of CB ........................................... — (1,515) —Payment of cash dividends ........................................................... (237) (439) (2,297)Other ............................................................................................ (148) 529 (1,434)Net cash used in financing activities ............................................ (981) (2,455) (9,479)

Effect of exchange rate changes on cash and cash equivalents ............ (14) (88) (144)Net decrease in cash and cash equivalents ........................................ (310) (799) (2,998)Cash and cash equivalents at beginning of the year ......................... 1,191 1,599 11,508Increase in cash and cash equivalents due to the change of its consolidation ...................................................... — 350 —Increase in cash and cash equivalents due to the merger with unconsolidated subsidiaries ..................................... — 41 —Cash and cash equivalents at end of the second quarter ................. ¥ 881 ¥ 1,191 $ 8,510

Millions of yenThousnads of

US dollars

2008 2008 2008

Six months endedSept. 30,

Year endedMarch 31,

Six months endedSept. 30,

Japanese truck manufacturers are globalizing their production and marketing networks in

efforts to reduce costs and bring products closer to market. TBK intends to extend the over-

whelming support the company has received from existing customers in Japan by expanding

its own production and marketing networks internationally.

The Company operates pump production centers in Thailand, India and Spain with other

production centers for brakes in China. These production centers are gearing up to supply

vehicle manufacturers in Asia, North America and Europe.

Global Production and Marketing Networks

9TBK Co., Ltd.

Head Office andTBK Sales Co., Ltd.

Tokachi Proving Gound

TBR Co., Ltd.

Tokyo Seiko Co., Ltd.

Fukushima No. 1 PlantManufactures drum brakes, disc brakes, and retarders

Fukushima No. 2 PlantManufactures engine cylinder heads, crankcase, enginecamshafts, and automobile water pumps

Tokachi Proving GroundPerformance testing of brakes and pumps

TBK Sales Co., Ltd.Marketing and servicing of parts for vehicles and construction machinery

Tokyo Seiko Co., Ltd.Manufactures water pumps , oil pumps and gears for automobiles and construction machinery engines

TBR Co., Ltd.Manufactures oil pumps, brake shoes, castings, and engine components

TBK America, Inc.Manufactures and markets pumps and engine components to engine maker and vehicle manufactures in the U.S.

TBKK (Thailand) Co., Ltd.Manufactures water pumps, oil pumps, drum brakes and engine components such as camshafts and turbo-charger housings

Full Win Developments LimitedManufactures brake linings to TBK

TBK China Co., Ltd.Manufactures and markets brakes and pumps

Chang'an TBK Co., Ltd.Manufactures and markets brake linings

Changchun TBK SHILI Auto Parts Co., Ltd.Manufactures and markets brake linings

Hangzhou TBK-APG Brakes Co., Ltd.Manufactures and markets brakes

TBK INDIA PRIVATE LIMITEDManufactures water and oil pumps of vehicles and construction machinery

GSB-TBK Automotive Components, S.L.Manufactures oil pumps for European automakers

Fukushima No. 1 PlantFukushima No. 2 Plant

GSB-TBK Automotive Components, S. L.

Head Office andDomestic Network

TBKK (Thailand) Co., Ltd.

Hangzhou TBK-APG Brakes Co., Ltd.

Changchun TBK SHILI Auto Parts Co., Ltd.

TBK China Co., Ltd.

Chang'an TBK Co., Ltd.

Full Win Developments Limited

TBK INDIA PRIVATE LIMITED

TBK America, Inc.

ISO14001 certification

ISO/TS16949 certification

Corporate Information

10TBK Co., Ltd.

TBK Co., Ltd.

Head Office4-21-1, Minami Naruse, Machida, Tokyo 194-0045,JapanTEL: 042-739-1471 FAX: 042-739-1477

Fukushima No. 1 Plant304-7, Miyanomae, Kawabe, Tamakawa-mura,Ishikawa-gun, Fukushima 963-6313, JapanTEL: 0247-57-4911 FAX: 0247-57-4900

Fukushima No. 2 Plant304-11, Miyanomae, Kawabe, Tamakawa-mura,Ishikawa-gun, Fukushima 963-6313, JapanTEL: 0247-37-1700 FAX: 0247-37-1701

Tokachi Proving GroundIwanai-cho, Nishi 3 Sen, Obihiro,Hokkaido 080-2123, JapanTEL: 0155-60-2667 FAX: 0155-60-2471

Subsidiaries:

Tokyo Seiko Co., Ltd.393-1, Miyanomae, Kawabe, Tamakawa-mura,Ishikawa-gun, Fukushima 963-6313 , JapanTEL: 0247-57-3181 FAX: 0247-57-3683

TBR Co., Ltd.1-11-16, Takarada, Tsuruoka, Yamagata 997-0011, Ja-panTEL: 0235-23-9551 FAX: 0235-22-7222

TBK Sales Co., Ltd.4-21-1,Minami Naruse, Machida, Tokyo 194-0045,JapanTEL: 042-739-1480 FAX: 042-739-2290

Overseas Group Companies:

TBK America, Inc.1761 Sheridan Street, Richmond, IN 47374, U.S.A.TEL: +1-765-962-0147 FAX: +1-765-962-0650

TBKK (Thailand) Co., Ltd.700/34 Moo 6 TB. Nhongmaidaeng, AP. Muangcholburi, Cholburi 20000, ThailandTEL: +66-38-213-398FAX: +66-38-214-811

Full Win Developments Limited7A Wing Hong Center, 18 Wing Hong Street, CheungSha Wan, Kowloon, Honk Kong, ChinaTEL: +86-769-8343-9662FAX: +86-769-8343-9693

TBK China Co., Ltd.Hekeng Village, Qiaotou Town, Dongguan City, Guangdong Province 523527, China

Chang’an TBK Co., Ltd.No. 3 Industrial Zone, Jiangbei Village, Wusha, Chang'an Town, Dongguan City, Guangdong Province 523859,ChinaTEL: +86-769-8541-1030 +86-769-8533-7669FAX: +86-769-8541-1031

Changchun TBK SHILI Auto Parts Co., Ltd.No. 1899 Huaguang Road, Changchun National High-Tech Industries Development Area, Changchun City,Jilin Province 130012, ChinaTEL: +86-431-8705-3186FAX: +86-431-8705-3187

Hangzhou TBK-APG Brakes Co., Ltd.No.1399 Yatai Road, Shushan Street, Xiaoshan District,Hangzhou City, Zhejiang Province 311203, China

TBK INDIA PRIVATE LIMITEDGat No. 309, Village-Shivare, Taluka-Bhor, District-Pune, Maharashtra 412206 India

GSB-TBK Automotive Components, S.L.Vilanova i la Geltrú (Barcelona), in Catalonia, Spain