ASKA CORPORATION Business reports for FY2006

Business Highlights

Financial overview
In million yen FY2006 FY2005 Rate of Change
Sales 21,470 17,541 22.4%
Ordinary profit 819 272 201.1%
Net profit 364 74 385.3%
Automotive Components Division
Sales 12,903 10,069 28.1%

- The Company posted record sales, ordinary profit, and net profit in fiscal 2006, as a result of its initiatives to develop new manufacturing technology and improve production efficiency, while strengthening its activities to propose technical solutions.

Automotive business
- Sales at the automotive division grew, supported by greater sales to Toyota, which was achieved through its highly focused marketing activities targeting the group.


R&D for FY2006

FY ended on Nov. FY2006 FY2005 FY2004
R&D Expenses 94 79 91
Personnel 12 10 -

R&D Organization
Based on its long-term vision to develop innovative technology and products that translate into new areas of business, the R&D focus is set on developing IT related products and derivative technologies, which are secondary to the Company's existing business.

- Each division is responsible for different uses for and manufacturing methods of its products. Each division has its own R&D function. the Development headquarters is engaged in new products that do not belong to existing product groups.

Recent Developments (as of November 11)
Automotive Division
- The Company developed a new general-purpose arc spot welding system and a highly efficient multipurpose arc system.

Investment Activities

-The Company invested a total of 498.64 million yen for the purpose of streamlining its production lines in fiscal 2006.
- No major investment plan has been announced by the company as of November 2006.