Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Sales	185,523	175,858	5.5	-
Operating income	11,094	10,249	8.2
Ordinary income	10,308	9,862	4.5
Net income	5,253	5,164	1.7
Automotive parts division
Sales	127,892	116,415	9.9	-Sales increased due to strong export volumes, despite decreased demand for medium-duty trucks by about 20,000 units from the previous year, to 85,000 units in Japan.

Supply Agreements
-The Company won orders from Isuzu for frames, which are to be installed on all of the new Elf models.

-The Company won orders from Volvo for cabs, which are to be installed on vehicle models sold inKorea.

Launches of new products by plant (FY2007 which ended in March 2008)

<Kawasaki Plant>
-Medium size axles, which were welded, assembled and machined, for Mitsubishi Fuso Truck and Bus (Launched in January 2008）

<Fujisawa Plant>
-Medium size frames for Isuzu (Launched in April 2007)
-Light-truck axle units for Nissan (Launched in May 2007）
-High-strength steel panels for Nissan (Launched in October 2007)

<Onomichi Plant>
-Small frames and side members for Daihatsu (Launched in May 2007)
-Sunroof frames for Webasto Japan (Launched in September 2007)


Domestic business
-In Nov. 2007, the Company announced that it has decided to dissolve the operations of its subsidiary Shinwa Paint Co., Ltd. Shinwa Paint Co., Ltd. has engaged in painting and component processing works on frames manufactured at the Kawasaki Plant. The Company has recently transferred the production of frames for heavy-/medium-duty trucks supplied to Isuzu Motors from the Kawasaki Plant to the Fujisawa Plant, which ultimately resulted in the dissolution of the subsidiary. (From a press release on Nov. 16, 2007)


Global business
-The Company made Press & Plat N.V. in Belgium and Press & Plat Industri AB in Sweden its consolidated subsidiaries to reinforce its operating foundation in Europe.

-In Jun. 2007, the Company announced that its two subsidiaries in Europe are now wholly owned by the company. Taking this opportunity, the Company will accelerate steps to restructure its operations and launch marketing activities to expand sales to commercial vehicle manufacturers in Europe, including DaimlerChrysler, Volvo, and Scania. The two subsidiaries are Press & Plat N.V. (PPB) of Limburg, Belgium and Press & Plat Industri AB (PPI) of Oskarshamn, Sweden. By May 31, the Company acquired the PPB shares from a Belgian investment company-its joint venture partner-and increased its stock holding ratio from 50% to 100% to make the subsidiary its wholly-owned company. The PPI, as a wholly-owned subsidiary of PPB, will also become the Company's wholly-owned company. (From an article in the Nikkan Jidosha Shimbun on Jun.4, 2007)


Business plan
Mid-term business plan (covers FY2008 ending March 2009 and FY2010 ending March 2011)
The targets for FY2010 are:
Consolidated sales: 240 billion yen
Consolidated operating income: 15 billion yen

-R&D expenses in FY2007 totaled 187 million JPY.

R&D Activities
1) Automotive parts division:
Shortening preparation time for development and production
-The Company started compiling its expertise on analytical technology by implementing plastic forming simulation technology and FEM analysis software in other element processing areas. By doing so, it aims to build a digital engineering development structure by combining its wealth of know-how together with these analytical technologies.

Developing production methods that reduce product weight and environmental impact
-In order to constantly be able to use high-strength steel sheets, one of the Company's main products, as mass-produced material, the Company is developing a method to form plastic, in which the durability of dies can be maintained while still enabling the forming process to be accurate; and a welding method that ensures that the strength of the welded areas are durable. In addition, the Company is working on improving the performance of coating methods.

-Capital investment in FY2007 totaled 6,708 million JPY.

-Capital investments focused on building up its production operations, reducing costs, and improving quality in order to respond to new business related to frames, axles, suspensions, and construction machinery cabs, which are its main product areas.

Division
Automotive parts	6,642
Automotive assembly
Construction machinery components
Automotive stamping dies and assembly devices	11
Other	54
Total	6,708

Important addition of new facilities

Name	Purpose	Planned total investment (million JPY)	Start month	Planned completion	Increase in production capacity upon completion
Kawasaki Plant	Processing equipment for large/mid-sized axles	1,084	Dec. 2007	Aug. 2008	Production capacity will be enhanced to some extent.
Fujisawa plant	Production equipment for panels, for which the Company won new orders	79	June 2006	June 2008	Production capacity will be enhanced to some extent.
	Production equipment for panels, for which the Company won new orders	260	July 2007	Mar. 2009	Production capacity will be enhanced to some extent.
	Streamlining assembly equipment for frames	108	Aug. 2007	June 2008	Streamlined operations
	Streamlining processing equipment for frame products	500	Oct. 2008	June 2009	Streamlined operations
	Processing equipment for axles	642	June 2008	May 2009	Production capacity will be enhanced to some extent.
Onomichi Plant	Machine processing equipment for axle hubs	132	Oct. 2006	Apr. 2008	Production capacity will be enhanced to some extent.
Utsunomiya plant	Melting and cutting equipment for axles	348	Apr. 2008	Feb 2009	Production capacity will be enhanced to some extent.
Saitama Plant	Processing equipment for axles	600	Oct. 2008	June 2009	Production capacity will be enhanced to some extent.
PK U.S.A., Inc. Mississippi Plant	Stamping machines	611	Jan. 2008	Dec. 2008	Production capacity will be enhanced to some extent.
	New plant	578	Jan. 2008	Dec. 2008	Production capacity will be enhanced to some extent.
Thai Summit PKK Bangna., Ltd.	New plant	1,545	Jan. 2008	Dec. 2008	Production capacity will be enhanced to some extent.
	Stamping machines	603	Jan. 2008	Dec. 2008	Production capacity will be enhanced to some extent.