Highlights in FY2007 (ended Mar. 2008)

Financial Overview

(in million JPY)	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	39,207	35,324	11.0	The Company focused  its efforts on certain strategic products. It also initiated cost reduction activities to increase profitability. As a result, the Company marked record-high sales and income in FY2007 which ended in March 2008.
Operating income	3,044	1,744	74.6
Ordinary income	2,809	1,705	64.8
Net income	1,704	1,121	52.0
Engine components business
Sales	28,792	26,260	9.6	The Company focused its efforts on certain strategic products, namely connecting rods, cylinder heads and cylinder blocks. In addition, sales of connecting rods significantly increased as a result of the Company's launching a new production line. These factors contributed to a year-on-year sales increase at the engine components business.
Operating income	2,278	1,399	62.8	Cost reduction activities such as improving productivity; as well as increased production volume, contributed to the increase in operating income.

Business plan

-The Company revealed its second mid-term business plan, which begins from April 2008 and ends in March 2011.

-Consolidated targets

-	FY2010 (ended in Mar. 2011)
Sales	50 billion yen
Operating income	4 billion yen
Profit margin	About 8%
ROE (Return on equity)	13% or more
Equity capital ratio	40% or more

R&D Expense

(in million JPY)	FY2007	FY2006	FY2005
Overall	234	269	216

Capital Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	1,383	2,675	5,700
Engine components business	1,202	2,514	5,489

Capital investments (Engine components business - FY2007)

-The Company's Head Office Plant, Nabari Plant, Casting Plant, and Yume Polis Plant together invested 1,035 million yen in machinery, equipment, tools, instruments, and parts under the primary objective of rationalizing operations, saving on labor, and ensuring a high level of quality.   

-P.T. Yasunaga Indonesia, the Company's consolidated subsidiary, invested 65 million yen in facilities such as machinery and equipment with the primary objective of responding to new orders received. 

New facilities (Engine components business related)

Plant (Location)	Purpose	Planned total investment (in million JPY)	Start	Planned completion	Increased capacity upon completion
Yasunaga Corporation
Head Office Plant (Mie Pref., Japan)	To acquire,  remodel, and refurbish machinery	41	Mar. 2008	Jun. 2008	*1
	To acquire, renew and renovate buildings	72	Jul. 2007	Mar. 2009	*1
Saimyoji Plant (Mie Pref., Japan)	To acquire,  remodel, and refurbish machinery	74	Mar. 2008	Aug. 2008	*1
	To acquire,  remodel, and refurbish tools/devices	34	May 2008	May 2008
Nabari Plant (Mie Pref., Japan)	To acquire,  remodel, and refurbish machinery	450	Jun. 2007	Sep. 2008	*1
	To acquire, renew and renovate buildings	87	Jun. 2007	Sep. 2008
Yume Polis Plant (Mie Pref., Japan)	To acquire,  remodel, and refurbish machinery	468	Mar. 2008	Jun. 2008	37%
	To acquire, renew and renovate buildings	34	May 2008	May 2008
P. T. Yasunaga Indonesia
Head office plant (Indonesia)	To acquire,  remodel, and refurbish machinery	650	May 2008	Jul. 2008	14%

*1: The increase in capacity is minimal, as the purpose of the capital investment is to update, renovate and rationalize production facilities in order to handle a change in production items as well as to improve product quality.