Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	23,516	23,245	1.2	-Sales increased due to an increase in sales of onboard motors.
Operating income	576	394	46.2	-
Ordinary income	676	473	42.9	-Ordinary income increased due to the company's reducing cost such as initial costs ad restructuring.
Net income	359	321	12.0	-
Electric Products Division
Sales	13,570	13,868	(2.1)	-While sales of products for outboard boat-motors increased, thanks to strong sales in the European market, total sales and operating income decreased due to slumping sales of products for snow mobiles in the North American market because of lighter snowfall. The decline is also the result of slumping sales of products for ATVs due to the rise in the price of oil; and the slowdown in business in general.
Operating income	659	701	(6.0)
Generator Division
Sales	1,484	2,568	(42.2)	-Sales in this sector significantly dropped because of sluggish demand for engine-power generators, the company's main stay products, in the North American market.
Operating income	56	(39)	-
Motor Division
Sales	8,461	6,809	24.3	-Revenue grew due to an increase in the sales of power steering motors for 4WD vehicles.
Operating income	289	144	100.7

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Electrical Products Division	213	195	179
Generator Division	14	10	6
Motor Division	67	67	26
Others	25	34	31
Total	319	306	242

Major R&D Activities
Electrical Products Division
-The Company worked in the area of, namely highly efficient, high-output AC generators and regulators. The Company improved its ignition and fuel injection systems by getting them to fit as optimally as possible in engines. 

-The Company worked on developing and commercializing charging systems and engine control systems used in motorcycles, ATVs, snowmobiles, outboard boat motors, and utility engines.

Generator Division
-Under the aim of achieving energy savings, size reductions, improved efficiency, and noise reductions, the Company is working not only on developing new sales wins but also on increasing current volumes of high quality inverter generators based on one of its areas of core competencies, permanent-magnetic generators.

Motor Division
-Working under the objective of saving energy, the Company is currently developing small sized, highly efficient, low cogging motors for automobiles. It is also developing small-sized ABS motors that are being made more convenient to install. 

-The Company is currently developing and expanding sales of various actuator motors for motorcycles, ATVs, and snowmobiles that demonstrate excellent properties in terms of vibration, pressure, and dust resistance.

-The Company spent 737 million yen on capital investments in FY2007, focusing on constructing a new motor production line, rationalizing investments to achieve energy savings, introducing IT, investing in molds in response to orders for new products, and investing to replace aging facilities.


The major investments on mechanical equipment in FY 2007

Segment	in million yen	Main facilities
Electrical Products Division	340	Electric components rationalization facilities, etc.
Motor Division	61	Construction of new motor production line

Capital investment plans

Site name	Location	Type of facility and activities	Planned investment amount (million yen)	Commencement and completion Month/Year
				Commencement	Completion
Headquarters factory	Numazu city, Shizuoka prefecture	Electric components production; and rationalizing facilities	145	May. 2008	Mar. 2009
Gotemba factory	Gotemba city, Shizuoka prefecture	Electric component production; and rationalizing facilities	184	May. 2008	Mar. 2009