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%) -

-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

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

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

Enhancing its development structure
The Company expanded the building holding the Tochigi R&D Center, which conducts experiments on air-conditioning devices.
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