Business Highlights

Financial overview
( in millions of JPY ) FY2006 FY2005 Rate of Change (%) Factor
Sales 95,546 85,777 11.4 -
Operating income 2,992 3,990 (25.0) Operating income and ordinary income decreased year-on-year due to the two following factors:
-Soaring materials prices
-Increased capital investment costs to ensure future growth.
Ordinary income 2,917 4,380 (33.4)
Net income 1,383 2,228 (37.9) -
Automotive Components Division
Sales 66,041 61,110


Automotive products:
Sales increased in the Chinese and the North American car markets.

Motorcycle products:
Sales of carburetors decreased in Japan, while they rose in China and ASEAN countries.

Fuel injection systems:
Sales were strong in Japan, Europe, and the U.S.A.
Operating income 2,782 4,072 (31.7) -Operating income dropped from what it was last year because prices of raw materials such as aluminum, zinc, and brass rose.

The Company announced that it has been awarded an order for a plastic intake manifold to be installed on the next engine on Suzuki's mini vehicles. The intake manifold will be supplied as an intake module, combined with a throttle body, for which Mikuni has already received the order from Suzuki. The order volume will be 445,000 units per year, with the delivery beginning in June 2008. This time Mikuni gained orders for a full volume of intake manifolds mounted on naturally-aspirated engines of mini vehicles except for turbo models. Prospective production site is in Shizuoka prefecture. The supply will last for six years, meaning that dedicated capital investment is necessary to supplement existing production facilities of plastic products. (From an article in the Nikkan Jidosha Shimbun on Nov.22, 2006)


R&D Expenditure
( in millions of JPY ) FY2006 FY2005 FY2004
R&D 1,446 1,384 1,267
Automotive products 1,220 1,073 1,085
Automotive products
-The Company implemented R&D activities primarily on electronic control fuel injection system components and air intake modules. In addition, it conducted R&D activities on fundamental technologies for control systems, actuator products, sensing devices, and engineering materials, as examples.

-The Company is also promoting development of urgently needed technologies such as: 1) technologies to reduce harmful effects on the environment; and 2) technologies dealing with the use of alternative fuels

Major R&D achievements for FY2006

-Development of Air intake module for four-wheel vehicles
-The Company developed and launched commercial production of a new variable intake manifold made of plastic.
-The Company developed and began mass-production of a new electronic-control throttle body.
-The Company developed an electronic variable valve lift system.
-The Company developed a new continuously variable transmission system.
-The Company developed a new vacuum pump.
-Development of Engine cooling water control valve
-Development of Air purging oil pump and variable oil pump
-Technology on materials that are compliant with environmental impact regulations
-Liquid control valve and hydrogen sensor for fuel-cell vehicles*

*The Company has succeeded in developing a hydrogen sensor, utilizing a ceramics-palladium (Pd) composite film, for the detection of hydrogen (density level of 0.01-4%) leak. This sensor, a technology for finely dispersing palladium into ceramics being adopted for the first time in the world, features outstanding detection sensitivity and hydrogenation reaction selectivity as well as high durability and low cost. With a growing needs for "enviromentally-friendly"products in the automotive industry Mikuni has been working on developing a hydrogen sensor as one of the alternatives for fuel cells. The company intends to start marketing the new product within FY2009. (From a press release on Mar. 19, 2007)

Investment Activities

Investment Expenditure
( in millions of JPY ) FY2006 FY2005 FY2004
Group 5,255 4,036 2,850
Automotive products 3,932 3,022 2,247

-The automotive division focused its investment activities on building new plant facilities, developing new products, strengthening basic studies, launching production of new models, and streamlining operations.

New Equipment Installment (automotive segment) ( in millions of JPY )
Equipment Estimated amount
of investment
Period of the project
From To
Odawara Plant
(Kanagawa Pref., Japan)
* 486 April, 2007 March, 2008
Morioka Plant
(Iwate Pref., Japan)
* 441 April, 2007 March, 2008
Kikukawa Plant
(Shizuoka Pref., Japan)
* 376 April, 2007 March, 2008
Sagara Plant
(Shizuoka Pref., Japan)
* 321 April, 2007 March, 2008
*Equipment : Manufacturing equipment for automotive products