Stanley Electric Co., Ltd. Business report FY2006

Business Highlights

Financial overview
In million JPY FY2006 FY2005 Rate of Change (%) Factors
Overall
Sales 338,680 311,785 8.6 -
Operating income 40,649 32,039 26.9 -
Ordinary income 43,612 34,769 25.4 -
Net income 26,283 20,619 27.5 -
Car Electronics Division
Sales 231,138 213,993 8.0 (1)
Operating income 21,778 16,448 32.4 -
(1): As vehicle production volume remained strong in the global market, sales of high value-added products such as adaptive front lighting systems (AFSs), discharge head lamps (HIDs) and LED rear combination lamps increased and pushed up the sales figures. The Company's sales in the motorcycle business also grew, thanks to strong sales in Japan and Asia.

R&D

Total R&D expenses for the FY2006 (FY ended Mar. 2007) was follows.
-Total R&D expenses were 4,476 million yen.
-Automotive products 1,835 million yen
-Electronic products 1,343 million yen
-Company-wide (shared) 1,297 million yen

Main fields of R&D
1.Optoelectronics area
-High power white LEDs
-High power red/infrared LEDs
-High speed sensitive image sensors
2.Display area
-Super-high contras LCDs
-Optical micro-scanners
-Display drive circuits
3.Source of light and illumination area
-Automotive lamps
-Cold Cathode Fluorescent Lamps (CCFLs)
-LED street lightings, indoor lightings and power supply units for drive systems
-Light source unit for LCDs

4.Software area
-Distribution light simulation systems
-Optical device optimal design tools
-Human interfaces
-Products utilizing above devices and technology

Technological Cooperation Licensing-in
(as of March 2007)

Partner Technology Period
Hitachi Ltd. Patent on LCD Validity period of the patent
Nichia Corporation Patent on White LED Validity period of the patent

Technical Tie-up for Automotive Lights (as of March 2007)
Partner Content Term
Thai Stanley electric Public Co., Ltd. (Thailand) Technology related to automotive lamps 31 Mar., 2009
SL Lighting Corporation (Korea) Technology related to automotive lamps 31 Mar., 2009
Prokia Technology Co., Ltd. (Taiwan) Technology related to area light source 31 Mar., 2008
Lumax Industries Ltd. (India) Technology related to automotive lamps 31 Mar., 2007*
*The contract will be extended

Investment Activities

Total capital investment was 34,955 million yen in FY2006.
Out of the total amount, the Company invested 19,987 million JPY into manufacturing facilities for the automotive business.

Plans for new production facilities (Automotive components)

Name

Facility Planned total investment (million yen) Start month and year Planned completion
Stanley Electric Co., Ltd. (Hatano Factory, etc. ) Production facility for the vehicle business 26,802 Apr., 2006 Mar., 2008
Tian Jin Stanley Electric Co., Ltd. Production facility for the vehicle business 2,090 Dec., 2005 Mar., 2008
Stanley Electric U.S. Co., Inc. Production facility for the vehicle business 2,194 Jul., 2006 Mar., 2008