Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Sales	61,911	52,205	18.6	-The Company recorded strong sales and profit thanks to an increase in sales of auto body stamped  parts in and outside Japan, and through robust sales of dies to manufacture parts of new car models for the U.S., China and Brazil.
Operating Income	5,524	4,220	30.9
Ordinary Profit	5,343	3,921	36.3
Net Income	2,991	2,223	34.5

Trend by region
<Japan>
-Merged Nakamura Seisakusho Co., Ltd., a 100% owned subsidiary, to streamline development and sales operations.

-Launched production for 6 vehicle models including Accord series

-Robust export of equipment for new car models to be exported to North America and China

-Its Gunma Plant began operating a 3,000-ton transfer press machine

-Expanded operations at its die technology center (expanded building area and introduced new equipment) 

-Acquired land to build a new plant in Saitama (63,789 square meters at about 2.1 billion yen)

-Invested in overseas subsidiaries: 730 million yen in KPB and 820 million yen in GAPAI

-Changed share units from 1000 to 100 in September

<North America>
ATA
-Increased orders for products to be supplied to Aisin USA and JIC
-Achieved cost reduction by improving productivity
-Purchased a 2,000-ton leased transfer press machine
-Began operation of a 400-ton blanking press machine 

J Group
-Launched production of products to be used in two Accord models
-Prior investment for HM Indiana plant 
-Launched operation of 3,000-ton and 800-ton stamping machines 

<Latin America>
KPB
-Boosted production capacity to 120,000 units 
-Introduced a 1,600-ton transfer stamping machine and enlarged its factory building
-Launched operation of 24 welding robots
-Increased capital to 16.5 million real (about 1,070 million yen)

<China>
APAC
-Sales and profit both increased due to the production achievement of 200,000-units in the first half at the 2nd plant
-Invested in a die plant: purchased 2 trial presses, 2 NC machines, and completed expansion of plant buildings)
-Local procurement ratio of dies topped 50%
-Launched operation of a 800-ton coil press 

WAPAC
-Launched production for new models (Honda CR-V, Nissan Teana)
-Achieved profitability on a single-year basis only 2 years since start of operations

CKS
-Cleared accumulated losses two years after the start of operations

<India>
GAPAI
-Established in February 2007 and is now preparing for the launch of operations (scheduled for October 2008)
-Capital: 536 million Indian rupees (1,570 million yen)

R&D Expenditure

(in millions of JPY)

	FY 2007	FY 2006	FY 2005
R&D Expenses	416	376	N.A.
Number of  R&D staff	27	24	N.A.

-Major R&D activities and achievements FY2007
(1)Study to expand application to mash seam welding body parts
(2)Study to expand application to body parts made of high tensile steel materials.
(3)Study to expand injection simulation technology.
(4)Study to reduce weight and increase strength of CVT parts.
(5)Study to use information technology for making metal dies.
(6)Study to apply technology of high-frequency hardening to steel plate materials.


Technology contract offered by the Company (As of Mar.2008)

Partner	Country	Details	Period
Jefferson Industries Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding  technological and production  expertise on automotive parts, stamping dies, and jigs	2003.10.01～2006.09.30 automatic extension every year thereafter
Jefferson Elora Corporation	Canada	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.03.31～2002.03.30 automatic extension every 5 years thereafter
Jefferson Southern Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on  automotive parts, stamping dies, and jigs	2001.05.31～2006.05.30 automatic extension every year thereafter
Austin Tri-Hawk Automotive Inc.	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1998.01.25～2001.01.24 automatic extension every year thereafter
Kikuchi Do Brasil Ltda	Brazil	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.05.30～2002.05.29 automatic extension every year thereafter
Auto Parts Alliance (China) Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2006.10.26～2011.10.25
Wuhan Auto Parts Alliance Co., Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2005.07.01～2010.06.30

-Investment of 15,656 million yen in production facilities and equipment in response to an increase in production and model changes for FY2007.


Domestic Investments
-The Company announced on May 14 an acquisition of a site for a new factory in Fukaya-city, Saitama prefecture. The acquisition cost will be approximately 2.1 billion yen. The new plant will become a "mother plant," or a model plant, for the supplier's other facilities at home and abroad. The decision was made mainly because buildings and equipment at its main automotive body parts plant in Hamura city, Tokyo, have become too old. The new plant will produce body parts for Honda vehicles and serves as a mother plant to lead the supplier's production technology, quality control and environmental initiatives. (From a story in the Nikkan Jidosha Shimbun on May. 15, 2007)


Overseas Investments
-The Company, an automotive body parts supplier, will substantially expand its overseas operations. In response to increased vehicle production plan of its main customer Honda Motor Co., Ltd., the Company intends to increase its offshore production capacity in North America, China and South America. It plans to invest over 2 billion yen in the project to localize die production and improve local productivity so as to increase its offshore sales by 15.6% to 66.8 billion yen by fiscal 2008 from the level in the current estimate for fiscal 2006. In China, the Company will invest approximately 300 million yen in its two plants and increase its production capacity of dies and pressed parts. In Brazil, it will spend over 1.7 billion yen to expand its large transfer stamping facility and welding machines. Also in India, the company completed construction of a new plant in February this year, aiming at early start of operation. In those countries, the Company will make thorough efforts to expand facilities and ensure trouble-free operation launches so as to meet the target. (From a story in the Nikkan Jidosha Shimbun on Apr. 17, 2007)

<India>
-The Company unveiled the outline of a joint venture company to be established in India. The Company announced in February 2007 that it would set up "Global Auto-Parts Alliance India Private Ltd ", a joint venture in India, in response to an increasing local production volume of its primary customer Honda Motor Co., Ltd. Global Auto-Parts Alliance India Private Ltd, a manufacturer of auto body parts, will be located within the Tapukara Industrial Park in Rajasthan, India. The new company will be capitalized at 670 million rupees funded by three parties; the Company and Takao Kinzoku Kogyo Co., Ltd. will contribute 268 million rupees respectively (40% each) and 134 million rupees (20%) will be invested by Honda Motor Co., Ltd. Operations are scheduled to start in October 2008. (From a press release on Nov. 6, 2007)


New equipment installations

Plant	City	Equipment to be installed	Estimated amount of  investment (in million yen	From	To
Gunma Plant	Ota City, Gunma Pref.	Equipment for development and manufacturing of dies (NC machine, etc.)	302	Nov. 2005	Sep. 2008
Hamura Plant	Hamura City, Tokyo	Equipment for manufacturing auto parts  (dies, jigs and tools)	1,094	-	-
Tochigi Plant	Sakura City, Tochigi Pref.	Equipment for manufacturing auto parts (dies, jigs and tools)	331	-	-
New plant	Fukaya City, Saitama Pref.	Buildings	5,200	Jun. 2008	Sep. 2010
		Equipment for manufacturing auto parts (stamping and welding equipment)	3,000	Apr. 2009	Sep. 2010
Kikuchi do Brasil Ltda	Sao Paulo, Brazil	Equipment for manufacturing auto parts (stamping and welding equipment)	1,523	Jan. 2007	Dec. 2008
Auto Parts Alliance (China) Ltd.	Guangzhou, Guangdong Province, China.	Equipment for manufacturing auto parts (dies, jigs and tools)	484	-	-