KEIHIN CORPORATION Business report FY2007

Business Highlights

Financial overview

In million JPY	FY2007	FY2006	Rate of Change (%)	Factors
Sales	339,320	330,612	2.6%	-Sales increased due to strong sales of products for motor cycles; and general-purpose products.
Operating income	24,008	22,112	8.6%	-
Ordinary income	24,456	23,375	4.6%	-Ordinary income increased due to growing sales coupled with cost reduction efforts.
Current net income	11,201	12,846	(12.8%)	-

Contracts
-The Company supplied products for fuel supply systems, electronic control systems, and air-conditioning systems. These included environmentally friendly new injectors, significantly lighter magnesium intake manifolds, etc. for the new Accord and Fit that Honda launched.

Building organizational structure to supply products globally
<The U.S.A.>
The Company established Keihin Michigan Manufacturing, LLC., which started commercial production of fuel supply systems for automobiles in March 2008.
See Investments for detail

<China>
Dongguan Keihin Engine Management System Co., Ltd. started commercial production of air-conditioning system products in February 2008.

<Thailand>
Keihin Autoparts (Thailand) Co., Ltd. （KTR) constructed a new EMS plant for automotive business, which started commercial production of fuel supply system for automobiles in March 2008.
See Investment for detail

R&D

R&D Costs for 2007 were 14,983 million yen. (Cost of sales and administrative costs were 1,713 million yen.)

Enhancing its development structure
<Japan>
The Company expanded the building holding the Tochigi R&D Center, which conducts experiments on air-conditioning devices.
<Germany>
Keihin Sales and Development Europe GmbH, which was established in January 2007, installed testing facilities and started to provide technological support to its customers.

Four wheel vehicle business
- Activities related to modularity, integration technology, and new production technology for fuel supply systems; and hydraulic control systems (already commercialized)
- System parts which use alternate fuels (already commercialized)
- Highly functional injectors (already commercialized)
- Products that respond to European environmental regulations on hazardous substances
- Development of highly responsive solenoids for active control engine mounts (already commercialized)

Electronics business
- High integration of engine control units (already commercialized)
- Development of the control units for four-wheel vehicles (already commercialized)
- Development of the control units for hybrid vehicles, and the power modules for drivetrains (already commercialized)
- Development of the control units for safety equipment such as air bags (already commercialized)
- Development of control units for active control engine mounts (already commercialized).

Air conditioning business
- Low priced, highly efficient scroll type compressors (already commercialized)
- Simulation tools designed for energy efficient air conditioners
- Development of high performance and compact automotive air conditioning systems (already commercialized)

Investment Activities

R&D

CONTENTS

SERVICE

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