Highlights in FY2007 (ended Mar. 2008)

Financial Overview

(in million JPY)	FY2007	FY2006	Rate of Change	Main factors
Overall
Sales	189,589	175,003	8.3%	Sales of its three major products, namely fuel pump modules, throttle bodies and canisters, rose thanks to increased production and marketing activities in and outside Japan
Operating income	9,211	7,997	0.9%	Income rose due to increased sales and rationalization efforts
Net income	5,310	3,285	61.6%	Net income rose significantly because the Company did not have any extraordinary loss to account for this year, as it did last year.
Automotive Components Division
Sales	182,041	167,627	8.6%	-

Sales by region

(in million JPY)	FY2007	FY2006	Rate of Change	Main factors
Japan	132,889	129,351	2.7%	Increase in sales of engine valves and fuel pump modules
North America	27,916	23,769	17.4%	Increase in sales of fuel pump modules and throttle bodies
Asia	26,740	21,021	27.2%	Increase in sales of fuel pump modules and throttle bodies
Europe	16,645	13,908	19.7%	Increase in sales of fuel pump modules and throttle bodies

Japan

Strengthening its alliance with Denso

Denso Corporation initiated a bid to buy the company's  ordinary shares. The two companies have expanded the scope of their joint development and supplemental production activities, starting with throttle bodies in 2000 and later adding injectors and fuel pumps. The two plan to establish an even closer relationship in terms of development and production of fuel injection systems from the conceptual phase. In relation to this, Denso will make a bid to acquire 5.5 million shares in the Company, or a 9.94% stake. The Company will also buy Denso shares as a means of further strengthening their relationship. (Press release dated May 11, 2007)  

Outside Japan

-Initiating structural reform of global operations

Czech Republic

The Company expanded a production plant of Aisan Industry Louny s..r.o., to strengthen the aluminum die-cast business.

China

The Company has been preparing to launch fuel pump module production at Aisan (Tianjin) Auto Parts Co., Ltd.

Korea

The Company made an assessment of its management organization under the aim of strengthening the Group's structure. As a result, it invested even more in its production subsidiaries, Hyundam Industrial Co., Ltd. and Samae Precision Co., Ltd., increasing its share to 95.0%.  

R&D Expenditures*

(in million JPY)	FY2007	FY2006	FY2005
Overall	7,208	6,592	6,267

*figures above are for auto parts

R&D (FY2007)

-The Company commercialized Japan's first liquefied petroleum (LP) gas injection system that is compliant with the new long-term emission regulations in Japan. 

-The Company commercialized an exhaust gas control valve for diesel engines that, depending on the vehicle's driving condition, is able to recover diesel particulate filters (DPFs) by closing the exhaust channel. This then creates greater exhaust pressure and a higher temperature. 

-The Company announced that will conduct some R&D activities focused on environmental issues in order to reduce electricity consumption as well as lessen vehicle weight and improve control in electronic throttle bodies, fuel pump modules, and canisters, which are its main products. The Company was also engaged in the development of biofuel products.

Capital Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	10,890	13,674	10,857

-By product and subsidiary (FY2007)

Products	Company	Country	Capital investment (in million JPY)
Major three products -Fuel pump modules -Throttle bodies -Canisters	The Company	Japan	1,911
	Hyundam Industrial Co., Ltd.	Korea	879
	Franklin Precision Industry, Inc.	USA	476
	Aisan (Tianjin) Auto Parts Co., Ltd.	China	541
	P.T. Aisan Nasmoco Industri	Indonesia	394
	Total		4,888
Engine valves	The Company	Japan	1,295
	Aisan (Foshan) Auto parts Co., Ltd.	China	685
	Total		1,980

Investment by region (FY2007)

-	Details
Japan	-The Company invested in developing new products such as exhaust pressure control valves, EGR cooler bypass valves, and LP gas fuel injection systems for diesel engines so as to comply with new fuel efficiency and emission regulations.  -The Company invested in expanding its facilities to produce its major product items, namely fuel pump modules, throttle bodies and engine valves.
Europe	-The Company made capital investments to expand its facilities so as to enhance its aluminum die-cast production operations.
China	-The Company made investments to expand its facilities in order to market fuel pump modules, throttle bodies and engine valves.

Worldwide investment activities

The Company will expand the lineup of aluminum casting products for engines to increase their sales overseas. Its plants in Czech and Tianjin, China will be expanded in 2008 to increase their production capacity, and sales of aluminum casting products will be raised to 6 billion yen in fiscal 2010 from 2 billion in fiscal 2007. This expansion is aimed at coping with a brisk demand from Japanese automakers operating overseas, including Toyota. Utilizing its technological expertise in aluminum casting for the throttle body, its main product, the company will expand the product lineup. In Feb. 2008 its Czech plant will be expanded to boost monthly production capacity to 270,000 units in 2009, from 100,000 in 2007. While the Tianjin plant in China is scheduled to be enlarged in the summer of 2008, to boost production capacity to 250,000 units a month from 100,000 in 2007. The Company plans to invest 600 million yen in fiscal 2007 and 700 million in fiscal 2008 in Czech and Tianjin plants. (From a story in the Nikkan Jidosha Shimbun on Oct. 5, 2007)

The Company will expand its production of EGR cooler bypass valves, which help to reduce exhaust gases from diesel-powered vehicles. The products are used to control temperature of the exhaust from cooled EGRs to cut the emission of particulate matter (PM). It expects to quadruplicate its annual sales of the bypass valves to over 4 billion yen in fiscal 2010. As the demands are expected to grow in Europe and Japan, as well as from markets in the ASEAN (Association of Southeast Asian Nations), the Company will start producing the EGR cooler bypass valves at its subsidiary in Indonesia. (From an article in the Nikkan Jidosha Shimbun on Mar. 31, 2008)

Plans for new facilities

Plant name (Location)	Type of facility or plans	Expected amount  ( in million JPY)	Start date	Planned completion
The Company Headquarters Plant (Aichi, Japan)	EGR valve production facilities	409	Oct. 2007	Feb. 2009
	Remodeling energy building	900	Aug. 2007	Sep. 2008
The Company Anjo Plant (Aichi, Japan)	Manufacturing engine valves	969	Apr. 2008	Mar. 2009
	Manufacturing throttle bodies	919	Aug. 2007	Mar. 2009
The Company Toyota Plant (Aichi, Japan)	Manufacturing fuel pump modules	1,035	Nov. 2007	Feb. 2009
Franklin Precision Industry Inc. (Kentucky, USA)	Manufacturing throttle bodies	487	May 2007	Dec. 2008
Aisan Industry s.r.o. (Louny, Czech Republic)	Manufacturing throttle bodies	661	Oct. 2007	Dec. 2008
	Manufacturing die-cast products	408	Dec. 2007	Nov. 2008
Aisan (Tianjin) Auto Parts Co., Ltd. (Tianjin, China)	Enlarging the plant	700	Oct. 2007	Oct. 2008
	Manufacturing fuel pump modules	598	Dec. 2007	Dec. 2008