Financial Overview

( in millions of JPY )

-	FY2006	FY2005	Rate of Change(%)	Factors
Overall
Sales	161,444	147,427	9.5	-
Operating income	16,427	14,828	10.8
Ordinary income	16,869	14,481	16.5
Net income	9,783	8,211	19.1
Transport Equipment Business (*Sales for unaffiliated customers)
Sales*	45,725	37,524	21.9	see note below
Operating income	5,493	3,524	55.9

Factors
In the automotive business in Japan, the extraordinary demand, which was prevalent the previous few years, for customers to replace ordinary trucks with those that are compliant with stricter regulations, subsided, resulting in sluggish demand for the Company's products. However, sales remained almost unchanged from those of previous year, thanks to an increase in production volume overseas and to greater volume of exports of vehicles from Japan.

-	FY2006	FY2005	FY2004
Overall	4,023	3,635	3,706
Transport Equipment	1,028	824	890

Transport Equipment Business
-The Company will implement R&D activities in the area of systems and equipment to be used in brakes on commercial vehicles and on clutches to be used on passenger vehicles.
-The main R&D achievement for the year ending March 2007 was revamping the brake systems and equipment for commercial vehicles.

Major technical partnership agreements

(as of March 2007)

Partner	Country	Items	Period
Knorr-Bremse Systeme fur Nutzfahrzeuge GmbH	Germany	Protection valves and hand brake valves	From February 1993 To September 2008
MGM Breaks Division of Indian Head Industries Corp.	U.S.A.	Double diaphragm spring brake chamber and WPC spring chamber	From September 2002 To September 2010

-	FY2006	FY2005	FY2004
Group	7,037	4,457	5,194
Transport Equipment	1,001	550	651

The Company's basic investment policy is to focus on investments that improve productivity, be first or early to market new products and businesses, and strengthen competitiveness.

Transport Equipment Business
- The Company will make investments to strengthen its production capacity and rationalize production operations.