Financial Overview

( in millions of JPY )

	FY2006	FY2005	R.C.	Factors
Overall
Sales	797,102	754,964	5.6
Net income	(6,761)	(84,986)	-
Car Electronics Division
Sales	359,802	332,101	8.3	Sales increased due to greater sales of car navigation systems and car audio products. OEM sales of car navigation systems increased mainly in North America. OEM sales of car audio products decreased in North America, but increased in Japan and China. OEM sales account for about 36% of the total sales at the car electronics business.
Operating income	22,116	17,486	26.5

( R.C. : Rate of Change )

Recent Developments Overseas
-China
The Company established a subsidiary in Shanghai which produces and sells car electronics products such as car audio systems. It will start commercial production in August 2007.

-Thailand
The Company constructed a new plant for producing car electronics products, and started production in April 2007.

-Brazil
The Company plans to double its production capacity for car audio systems. New facilities will start operations in April 2008.

For details, please refer to Investment

R&D Expenditure

( in millions of JPY )

	FY2006	FY2005	FY2004
Overall	59,222	63,442	55,897
Car electronics business	21,388	23,217	17,816

R&D