Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	37,218	36,319	2.5	-Sales increased, as the Company maintained a high rate of capacity utilization throughout the year for its mainstay auto parts products such as valve springs for automotive engines and ring gears.
Operating income	3,552	3,099	14.6	-Operating income increased due to increased revenue and a reduction in initial costs such as expenses incurred for outsourcing.
Ordinary income	3,410	3,295	3.5	-
Net income	1,841	1,807	1.9	-
Functional precision materials division
Sales	4,258	4,032	5.6	-Sales increased, thanks to the high volume of high-strength, high-tensile steel exported for use in valve springs equipped on automotive engines; as well as to strong sales of precision structure materials for automotive transmissions.
Functional precision components division
Sales	20613	18,874	9.2	-Supported by strong automobile production, sales of the following parts steadily increased: valve springs for automotive engines, ring gears for starters, and retractor spiral springs for seat belts.

R&D Expenditure
-R&D costs in FY2007 totaled 828 million yen.


Major R&D Achievements
Hybrid-vehicle components
-Looking at the future of the hybrid vehicle market, the Company is working on developing products such as motors for EVs and peripheral devices for inverters by leveraging technology in the field of insulating film processing, which is a new technology that the Company developed. This technology was developed based on precision plastic molding, one of the Company's core technologies. Moreover, as a theme on which to base new developments, the Company is working on developing products which can be used both as mechanical as well as functional components.

Functional precision materials/components
-To comply with the requirement of the new fuel economy regulations that will take effect in 2015, i.e., a 23.5 % improvement in fuel economy compared to actual fuel economy in 2004), higher performance and better fuel economy are becoming necessary. Also, demand is growing greater for smaller and lighter products. Under these circumstances, the Company started to develop springs, and wires for springs, that use new materials that are stronger than conventional materials in order to improve durability in response to the demand for improving product-life and the springs' coiling properties.

Capital Expenditure
The Company invested 3,229 million yen in FY2007.
-The Company invested mainly to prepare production lines for new products, enhance its production capacity, and improve quality and productivity.


By division
Functional precision materials division
-Focusing on improving the quality of materials used for valve springs and precision shaped materials, the Company invested 2,089 million yen.

Functional precision components division
-Focusing on preparing production lines to produce new automotive products, increase production capacity, enhance the quality of automatic-transmission components, and improve the productivity of valve springs for engines, the Company invested 2,364 million yen.


New Facilities (Functional Precision Components division)

Company or Office Name	Facilities	Expected Investment (thousand yen)	Started	Complete
Toyota Plant (Aichi Pref., Japan)	Manufacturing equipment	204,000	2008.06	2009.03
	Manufacturing equipment	55,000	2008.08	2009.01
Hirose Technology (Aichi Pref., Japan)	Manufacturing equipment	102000	2008.04	2008.08
Suncall Engineering (Yamanashi Pref., Japan)	Manufacturing equipment	41,500	2008.06	2008.11
Suncall Kikuchi (Kumamoto Pref., Japan)	Manufacturing equipment	88,500	2008.06	2008.12
Suncall America Inc. (Indiana, USA)	Manufacturing equipment	110,560	2008.02	2008.06
Sancall (Guangzhou) Co.,Ltd. (Guangzhou City, China)	Manufacturing equipment	60,660	2008.03	2008.06
Increased capacity after completion (at all the facilities above): improvement in quality and productivity