Nabtesco Corporation Business Report FY2006

Business Highlights

Financial Overview ( in millions of JPY )
- FY2006 FY2005 Rate of Change(%) Factors
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
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

Investment Activities

- 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.