Financial overview

(in millions of JPY)

	FY2007	FY 2006	Rate of change (%)	Factors
Overall
Sales	11,361	10,969	3.6	-Overall sales grew year-on-year, thanks to increased sales of automotive components.
Operating Income	345	383	(9.9)	-Income declined partly because of increased depreciation costs and material prices.
Ordinary income	264	249	5.6	-
Current net income	149	168	11.3	-
Automotive components
Sales	10,731	10,305	4.1	-

Challenges for FY2008
Under the aim of becoming one of the best suppliers of forged products with a solid business structure, the Company is committed to:
1. Drastically improving its production efficiency, while reducing overall costs
2. Reforming the level of its quality assurance system 
3. Strengthening its sales and marketing structure 
4. Enhancing both its core and proprietary technology 
5. Maintaining its human resources and providing a safe working environment in a systematic way

Development Structure
-R&D expenses in fiscal 2007 were 38million yen.

-Number of R&D staff : 17 people 


Research and Development Activities
-The Company tried to reduce production costs while improving quality by developing new products, technology and production methods.

-In order to improve the accuracy in forging processes and lower production costs, it also developed new technology to make precision forged products and toothed products that are formed through net-shaping technology. The Company developed and improved production methods using three-dimensional simulations, as well.

-The Company aggressively worked on responding to new needs from the automotive industry for applying advanced systems to improve fuel economy and environmental performance. As a result, it won new customers.

Activities in FY 2007 are as follows;
1. Development of automotive transmission components, of which the toothed parts are net-shaped by using hot and cold forging machines.
2. Development of technology to make precision toothed parts using net-shaping technology
3. Development of technology to make precision forged parts using thick plate forging technology
4. Development of technology to make bevel gears using cold block forging technology
5. Development of technology to lower costs in the hot forging process
6. Basic research to make the product-lives of dies longer

-The total capital investment in fiscal 2007 was 933million yen.

-The Company installed a 3800T forging press, renovated a 4500T forging press, and installed a NC turning machine. Kyushu Ichitan renovated its heat treatment oven, press machines, and other out-dated production facilities.


New facilities

Company name Business establishment	Type of facility	Planned investment amount (total) (thousand JPY)	Construction start date	completion	Production capacity upon completion
Ichitan Head office/ Plant (Gunma pref., Japan)	Forging facilities	1,118,765	2007.09	2008.06	Increased productivity
Kyushu Ichitan Head office/ Plant (Oita pref., Japan)	Forging facilities	150,000	2008.03	2009.03	Increased productivity
Daiichi Forging Dalian Co., Ltd. Head office/ Plant (Dalian, China)	Forging facilities	27,428	2008.01	2008.12	Increased productivity