Financial overview

( in millions of JPY )

-	FY2007	FY2006	R.C. (%)	Remarks
Sales	159,425	147,204	8.3	-Sales increased due to strong sales to Honda Motor, one of its main customers; and increased sales of die facilities.
	8,686	6,678	30.1	-
Ordinary income	7,426	5,691	30.5	-
Net income	4,151	2,989	38.9	-

The business results for each geographical area
<Japan>
- Sales in Japan increased by 4.0% year-on-year to 57,960 million yen, thanks to strong sales to Honda Motor, the Company's main customer; and to increased sales of die facilities. The Company's operating profit decreased by 23.3% compared to what it was the previous year, or to 2,444 million yen, due to increases in equipment and development costs.
<North America>
- Sales in North America were up by 4.3% year-on-year to 80,880 million yen due to higher sales to Honda and the weakened yen. Also, operating profit increased by 38.8% compared to that of the previous year, to 3,484 million yen, due to the increase in sales mentioned above, as well as to effective rationalization activities.

<Asia>
- Sales in Asia rose by 47.6% year-on-year to 20,584 million yen, thanks to increased production volume at F-Tech Zhongshan Inc. and the launch of commercial operations at F-Tech Wuhan Inc. Operating profit also rose by 53.7% year-on-year to 2,607 million yen

Status of activities
<Production>
- The Company responded to the launch of the fully remodeled Honda Accord that is being marketed in Japan, North America and China. In addition, the Company also responded to the launch of the Fit in Japan.

- F-Tech Mfg. Thailand Ltd. (Thailand) will start commercial production in April 2008.

<Sales and promotional activities>
- The Company is currently promoting sales of pedals with an anti-backward mechanism that is designed to enhance safety during collisions; as well as adjustable pedals and suspension arms for use in Honda's suspension systems as well as in Nissan's and other automakers' new vehicle models.

- In North America the Company increased its business by winning new orders from GM and Toyota Motor Manufacturing North America.
- For the Honda Fit, which was fully remodeled in October 2007 in preparation for launch in strategic global markets, the Company won a new order for H-type rear axle beams. Commercial production is also planned in Thailand and China, following Japan, which is expected to contribute to greater business for the Company.


New subsidiaries
In Nov. 2007, the Company announced that it will increase its stake in Reterra Corporation, a producer of aluminum die-casting parts, to 52.6% by acquiring additional Reterra shares, consequently making Reterra its subsidiary. The Company currently holds 29.4% of Reterra shares as the leading stockholder. The Company, in line with its commitment to Safety and Environment, has been accelerating its effort to develop higher-value products. As part of its development strategy, the Company opted to gain control of Reterra strongly driven by its desire to develop an innovative technology which enables the company to achieve significant weight saving of automobile parts and its recognition of Reterra's competence in aluminum processing technology. (From a press release on Nov. 29 , 2007)

R&D Expenditure

( in millions of JPY )

-	FY2007	FY2006	FY2005
R&D	1,924	1,452	1,267

Development in FY2007
Main object: Work on environmental and safety problems of vehicles.

- Environment: The Company is developing optimal structural designs by using hydro-forming technology and adding weight-saving features. It is doing this by introducing the use of aluminum materials and also by developing mass production technology so that its superior technology can be applied efficiently and at low cost.
- Safety: Promoting the wide spread use of anti-collision technologies.
-Others: Promoting the activities to propose products in new areas, making use of the Company’s existing technologies such as a hydro-forming technology.

- The Company's development center in North America, F.tech R&D North America Inc., finished relocating to a new facility in July 2007. F tech R&D North America worked on improving the efficiency and capabilities of its development activities by consolidating different divisions and establishing a development structure that is capable of handling greater business.

R&D achievements
- The Company utilized a prototype that makes high-pressure hydroforming possible. Honda has continuously been using the Company's hydroforming technology, for example, relying on it to produce sub-frames for the Accord, which will be fully remodeled in 2007. In its proposal for the remodeling of the Accord, the Company used new high-pressure hydroforming technology for the rear sub-frames, and offered light-weight, hi-precision, highly-rigid sub-frames. It also was able to significantly expand not only the application of hydroforming technology but also the front sub-frames themselves for vehicle models such as the Odyssey and Elysion that have been in continuous production.

- The Company is the first one in the world to apply technology in the field of two-tone plastic molding to create axel pedals made in the shape of organ pedals. It is making them for the Accord. The new technology reduces the cost and the weight of the axel pedals produced.



Major technological support (as of March 2008)

Partners	Country	Type of Support	Contract Period
Cheng Yu Industry Co., Ltd.	China	Technical support dealing with manufacturing and sales	Dec.1994-Dec.1999 Yearly automatic renewal from then on
ThyssenKrupp Automotive Tallent Ltd.	UK	Technical support dealing with manufacturing and sales	June 1996-June 2009 Yearly automatic renewal from then on
Progressive Tools & Components (P) Ltd.	India	Technical support dealing with manufacturing and sales	Nov.1996- now under way
Scorpius da Amazonia	Brazil	Technical support dealing with manufacturing and sales	Sep. 16, 1999- Sep. 15, 2009 Annual automatic renewal from then on
YPS Limited	Turkey	Technical support dealing with manufacturing and sales	Apr. 1, 2000- Mar. 31, 2005 Annual automatic renewal from then on
Chases Co., Ltd.	South Korea	Technical support dealing with manufacturing and sales	Jul. 20, 2005- Jul. 19, 2010 Annual automatic renewal from then on
Vietnam Autoparts Co., Ltd.	Vietnam	Technical support dealing with manufacturing and sales	Dec. 27, 2005- Dec. 26, 2010
SMC Co. Ltd.	South Korea	Technical support dealing with manufacturing and sales	Apr. 4, 2006 Apr. 3, 2011 (Annual automatic renewal from then on)
Thyssenkrupp Automotive Systems Brasil Ltda	Brasil	Technical support dealing with manufacturing and sales	Sep. 27, 2007- Sep. 26, 2012

Technological support the Company receives（As of March 2008）

Partners	Country	Company name	Type of support	Details	Contract period
F-Tech F&P Mfg Inc. F&P America Mfg Inc.	Canada	Variform, Inc.	Automotive components	Technological support dealing with pipe forming	Oct. 20, 1994- Oct. 20, 2009

Investment Expenditure

(Unit: million yen)

-	FY2007	FY2006	FY2005
Investment Expenditure	14,719	14,820	8,190
Investment for new product start-up	9,593	4,032	5,033

Capital investment now under way

Company Name Location	Segment	Planned investment (in million yen)	Start	Completion	Increased capacity after completion
F-Tech: Kameyama Plant, etc. (Mie, Japan)	Businesses related to automotive components	1,382	Apr. 2008	Mar. 2009	Facility expansion in line with launch of a new model
F & P America Mfg., Inc. (Ohio, USA)	Businesses related to automotive components	623	Apr. 2008	Mar. 2009	Facility expansion in line with launch of a new model
DYNA-MIG MFG. OF STRADFORD Inc. (Ontario, Canada)	Businesses related to automotive components	800	Apr. 2008	Mar. 2009	Facility expansion in line with launch of a new model
F-Tech Mfg. Thailand Ltd. (Ayutthaya, Thailand)	Businesses related to automotive components	1,460	Apr. 2008	Mar. 2009	Facility expansion in line with launch of a new model