Financial overview

In million JPY	FY2007	FY2006	Rate of Change	Factors
Sales	33,759	29,361	15.0%	- Sales increased favorably due to the robust auto market. - Sales also increased due to the Company developing new markets and business fields
Ordinary income	1,383	541	155.5%	-Ordinary income increased due to increased revenue generated by greater sales volume; and the Company's bold internal rationalization activities. However, Income was partially offset by sharp rises in the prices of materials and resources.
Current net income	563	71	793.0%	・The Company reported an extraordinary profit of 12 million JPY and an extraordinary loss of 760 million JPY.

Recent Developments in Japan

The company built a surface treatment plant at the site of the Tokai Plant located in Omaezaki City, Shizuoka prefecture, Japan in December 2007.

>>> For details, refer to the section on Investments.

Recent Developments Overseas

The Company dissolved its consolidated subsidiary, TWN Fastener Inc., in December 2007. While TWN Fasteners Inc. had manufactured and sold fasteners, it was absorbed into the Company's new subsidiary TAF established in November 2006 as a means to restructure the Group's management organization.

R&D Structure

-The Company developed products and researched both fundamental processing and evaluation technology at its development headquarters, the Design and Development Division. The Company worked on production engineering and manufacturing technology at its technology headquarters, the Production Engineering Division; and production engineering divisions at its subsidiaries.
- There are 21employees in the entire group who are assigned to work in R&D. Total R&D expenses in FY2007 for the entire Group were 227 million yen.

-The Company formed a close partnership and alliance with NHK Spring Co., Ltd., a company which is a large shareholder of Topura. Together, their efforts have been very effective in conducting R&D activities on cutting-edge technology.

R&D activities
- In order to achieve the best structural design for fastening products, the Company is jointly developing smaller and lighter fasteners by coming up with proposals on bolts that have greater strength and rigidity, and are more anti-corrosive. The Company is also working on proposals for tapping screws to be used on high-tensile steel plants. In doing so, the Company is researching basic technology to develop applications for new materials, design screws, and develop processing technology; in addition to developing technology that improves the reliability of evaluations.

・The Company worked on improving its production efficiency from a design standpoint by reducing and standardizing the items its produces based on making assessments and integrating materials and product specifications in the course of developing new materials.

- The Company developed products which are designed to reduce total costs through simplifying the production processes used for fastening parts, streamlining operations, and adding functions that prevent assembly errors. This will lead to creating screws with improved fastening qualities and more functionality.

- Based on the Company's underlying commitment to protect the environment, it succeeded in establishing manufacturing processes and developing products that do not contain environmentally controlled substances. In particular, the Company focused on mass-processing techniques and further developing technology on hexavalent chromium-free surface treatment and non-chrome surface treatment.

Licensing-out technology (receiving royalty payments) (as of March 2008)

Partner	Country	Commodity	Contract Details	Term
Conti Fasteners AG	Switzerland	Taptite	-Setting right to use trademark -Granting manufacturing or selling license -Provision of technical information	Sep. 1, 2006 - Aug. 31, 2009
Acument Gloval Technologies	The Netherlands	Torx-plus	-Licensing-out trademark rights -Granting licenses for manufacturing and sales -Providing technical information	Jan. 15, 1994 - Dec. 31, 2011

R&D