Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change(%)	Factors
Overall
Sales	27,733	23,181	19.6	-Overall sales grew, thanks to strong sales of automotive devices in the USA.
Operating income	1,102	1,507	(26.9)	-Operating income declined because of higher costs for materials and changes in the Company's product mix at each business segment that resulted in higher cost ratios.
Ordinary income	703	1,496	(53.0)	-Ordinary income declined due to a large loss resulting from negative exchange-rate translation because of a sudden raise in the value of the yen.
Net income	561	861	(34.8)	-
Automotive Components Division
Sales	26,070	21,167	23.2	-Sales increased, thanks to greater sales of automotive antennas and connecting cables.
Operating income	1,125	1,587	(29.1)	-

New business
-The Company will make a foray into the automotive electric components business. Using its know-how gained from making antennas for cars and mobile phones, such as advanced technology to reduce electromagnetic disturbance and noise, the company plans to develop filters, coils, and other new products, in which such technique can be applied. As car manufacturers are increasingly using sophisticated electric control units in their vehicles, demand for products that help prevent glitches is most likely to expand. Riding on such market trends, the company intends to foster the electric components business as one of its key areas that will contribute to a stable management structure. As part of its long-term plans targeting 2016, the Company aims to launch new business, which can become the company's key areas next to the antenna unit. The entry into the car electric parts industry will enable the Company to leverage the group's know-how and its extensive business network with car manufacturers and parts suppliers. (From an article in the Nikkan Jidosha Shimbun on Jul.2, 2007)


Challenges for the future
The Company mapped out its eighth medium-term business plan covering a three year period from fiscal year 2007. The plan includes the following targets:
1. Sales target: consolidated sales of 30,000 million yen
2. To cultivate new business fields by taking full advantage of its core technology
3. To establish the "Harada" standard in terms of improving its development and industrial engineering capability, as well as the efficiency of its total cost structure.
4. To set up an optimal organizational framework and a firm financial structure.

-Total R&D expenses for FY2007 were 1,250 million yen.

-Out of the total amount, 1,135 million JPY was spent on the automotive components business.


Automotive antenna business
-In line with the increasing move toward digitization in the world's TV and radio industry, the Company developed digital TV and radio antennas that are capable of supporting digital broadcasting services when they become fully operative in each country.

-The Company has been active in sending engineers to auto manufacturers to further develop complex roof antennas and short pole-type roof antennas so as to improve the performance of these antennas. The engineers are also working on lowering the costs of amplifier modules used in glass antennas.  Also, the Company started development of glass antenna patterns, achieving some success. 

Next-generation automotive antenna business
-In response to growing needs from car makers for flat or integrated antennas, the Company began developing antennas for satellite radio receivers; and multi-function antenna systems for onboard, integrated telematics services.

Basic R&D activities
-The Company began developing concepts for future antennas, collaborating with academic institutes and other corporations.

-To meet the current need for environmental protection, the Company is taking advantage of its capability to produce co-axial cables in-house, specifically by proposing fuel-saving solutions to automakers based on the advantages of its advanced products.

Capital Investments
-Total capital investments for FY2007 were 979 million yen, the majority of which was spent on the Automotive Components Division and IT Components Division 

-The focus of these investments was to enable the Company to respond to further advances taking place in mobile communication technology. 

-Capital investments for the Automotive Components Division were 939 million yen, which was spent to strengthen the Company's production and R&D facilities.


Plans for construction of new facilities (As of March 2008)

Company	Location	Type of facility	Planned amount of investment (in millions of JPY)	Started	Completed	Capacity upon completion
Harada Industries(Mexico), S. A. de C. V.	Queretaro, Mexico	Facility to  produce connecting cables in-house	167	2007.4	2008.7	160 million connecting cables /month