Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	45,653	43,204	5.7	-The Company expanded the scope of its business by reinforcing its sales operations and developing new markets based on promoting new products. As a result, its sales grew.
Operating income	2,134	1,666	28.1	-Soaring prices of crude oil and materials were offset by group-wide cost-cutting efforts, which contributed to the increase in operating income.
Current net income	901	491	83.5	-
Industrial fabric product business
Sales	39,319	36,835	6.7	-In the automotive safety parts division, sales of airbags were down due to the reduced volume of production of some vehicle models that were undergoing  changes. Sales of seat belts increased with the Company's launching mass-production of them based on new orders it received. Sales of other automotive parts such as those equipped in cabin interiors were also brisk in and outside Japan.
Operating income	2,717	2,131	27.5

Trend outside Japan
-The Company announced that it will dissolve its joint venture contract with Delphi Corp., U.S.A. It will sell all its shares in the two joint ventures producing automobile seatbelts in the U.S. and Mexico and will liquidate their holding company. The two companies plan to continue their parts business alliance in the area of automotive safety even after the dissolution. With Delphi, the Company had signed the business alliance contract in August 1999 and the joint venture contract on automotive seatbelt manufacturing and sales in 2000. (From an article in the Nikkan Jidosha Shimbun on Nov. 8, 2007)

-R&D expenses for FY2007 were 1,086 million yen.

-Out of the total, 861 million yen was spent on R&D activities at its industrial fabric business.


Seatbelt products
-The Company is working on developing seat belt retractors with pretensioners that improve the strength of the initial restraining force; and buckles with G-proof mechanisms to be installed as standard equipment.

Airbag products
-The Company is in the process of developing passenger-side air bag systems, which can inflate at reduced risked to passengers and which are compliant with a new U.S. standard; knee airbag systems which protect legs; and high-performance side airbags.

-Capital investment in FY 2007 was 1,885 million yen.

-Out of the total amount, the investment made for industrial fabric products was 1,592 million yen
Capital investment was mainly spent on the Osaka plant on revamping manufacturing of automotive related products, increasing production facilities and development related facilities.


New facilities

Segment by business type	Purpose	Planned investment  (in million yen	Starting Month	Completing Month	Capacity increase on completion
Osaka Plant (Settsu City, Osaka, Japan)
Fire extinguisher fabric products business Industrial fabric products business	To rationalize production facilities for fire extinguisher fabric, paltem, industrial fabric and automotive safety equipment	2,754	April, 2006	March, 2008	Practically none as this is to improve quality