Financial Overview

(in million JPY)	FY2006	FY2005	Rate of change (%)	Factors
Overall
Sales	21,094	19,874	6.1	-
Operating income	697	883	(21.0)	Operating income was down, affected by  price hikes in materials such as iron scrap.
Ordinary income	1,122	1,057	6.1	Ordinary income increased due to a rise in investment returns and gains due to favorable currency translation.
Current net income	609	214	183.7	Current net income increased without any impairment loss of fixed assets during FY2006.
Automobile & other vehicle components
Sales	17,691	15,333	5.9	Sales increased as a result of a greater volume of autos being exported.
Operating income	1,352	1,522	(11.1)	-

R&D Expenditure

(in million JPY)	FY2006	FY2005	FY2004
Automobile & other vehicle components	35,397	42,506	56,801

Automobile & other vehicle components

- The technical section within the technical department took charge of all activities, from development through to design, casting, and appraisal for the Company's business relating to automotive and body components businesses.

- In order to respond to customers' needs calling for reductions in vehicle weight, costs and lead-time, the Company enhanced its customer-support in the areas of design and appraisal, from proposals on optimum component shapes to appraisal of prototypes, by providing both casting technology and CAE analysis. CAE designs and at the same time can analyze degree of strength, mold fill, and solidification at the 3D model stage.

-As for developments in the area of casting, the Company renewed a low-speed filling die-cast process in order to replace conventional materials with aluminum and to further improve near-perfect precision.

Capital Expenditure

(in millions of JPY)		FY2006	FY2005	FY2004
Overall		1,805	3,140	1,683
Automobile & other vehicle components	Casting	689	2,136	925
	Processing	1,100	1,002	721

Automobile & other vehicle components

- In the casting division, 689 million yen was invested mainly in the maintenance, renewal and rationalization of existing facilities.
- In the processing division, 1,100 million yen was invested mainly in rationalizing operations and installing labor-saving equipment.

Domestic Investments
The Company plans to build a new main plant in Toki City, Gifu Pref., which will be operational in October 2008. 

New Facilities

(in million JPY)

Facility Name	Facilities	Expected Investment	Started in:	Expected to Complete in:	Production Capacity after Completion
Nissin Plant (Aichi, Japan)	Dies and casting facilities	491	Mar. 2007	Mar. 2008	*1
Nissin Plant (Aichi, Japan)	Processing facilities	688	Jan. 2007	Mar. 2008	*1
Kumamoto Plant (Kumamoto, Japan)	Casting and processing facilities	220	Dec. 2006	Mar. 2008	*1
Toki Plant (Gifu, Japan)	Casting facilities	3,000	Jun. 2007	Oct. 2008	1,800 tons/month
Toki Malleable Iron Co., Ltd. (Gifu, japan)	Casting facilities	67	Apr. 2007	Mar. 2008	*1

*1: The project is to renew facilities, so the production capacity will remain unchanged.