Financial overview

In million JPY	FY2006	FY2005	Rate of Change (%)	Factors
Sales	120,524	121,214	(0.6)%	- Sales of automotive parts dipped 0.8 percent year-on-year to 117,140 million yen.
Operating income	3,277	2,156	52.0%	- Operating income and ordinary income increased significantly compared to those in the previous year, as a result of the Company's  streamlining efforts involving cutting materials prices and improving production equipment.
Ordinary income	4,162	2,941	41.5%
Net income	(900)	1,448	-	- The Company posted a net loss, as it recorded an extraordinary loss to cover projected costs to settle an issue involving product quality.

Domestic business
Strengthening its production structure
- In April 2006, the Company announced it will start producing automotive lamps at its new plant in Nakatsu City, Oita Prefecture as early as April 2007.
- The Company will consolidate its automotive mirror production in Japan to its Gunma plant.

Overseas
Joint venture and technical alliance
- In April 2006, the Company announced it has entered a technical support agreement with FIEM, a supplier of two wheelers' lamps and mirrors in New Delhi, India.
- In June 2006, the Company announced an establishment of a joint venture company to produce automotive lamps in Guangdong, China.
- In December 2006, the Company announced that the company and Mitsuba Corporation, an independent auto parts supplier, have signed a joint venture agreement on the same day to manufacture automotive mirrors and other products in North America.

>>See Investment for details

R&D expenses for FY2006 were 5,800 million yen.

R&D Area
Lighting equipment and signals
1) Highly functional automotive lighting equipment suited to meet car designs.
2) Research on situation-sensitive light distribution properties and evaluation systems.
       ICHIKOH light distribution simulation system
3) Development of high-definition automotive signals.
4) Development of new light sources.  

View-related Devices
1) Development of nescience prevention mirror system.
2) Development of view-related systems, utilizing functional thin membranes, electronics, etc.
3) Development of car control systems and control devices.
4) Development of vehicle perimeter sensing and security devices.

Opto-mechatronics
1) Development of display devices using new light sources such as LED.
2) Development of multiple transmission systems for motor vehicles
3) Development of mechatronics devices utilizing membrane/precision molding technologies.

Major technical assistance agreements (as of March 2007)

Company Name	Country	Technology	Contract Period
			From	To
Anpas Industries	Thailand	Manufacturing technologies for automotive lamps and rear view mirrors	Dec.16, 1992	April 14, 2007 (yearly automatic renewal from then on)
Tokyo Electrica de Mexico	Mexico	Manufacturing technologies for automotive lamps and rear view mirrors	Nov. 21, 1997	Until sales of products are ended
FIEM Industries	India	Manufacturing technologies for rear view mirrors	Nov. 11, 2005	Nov. 10, 2010 (yearly automatic renewal from then on)

R&D