Financial Overview

(in million JPY)	FY2007	FY2006	Rate of change (%)	Factors
Overall
Sales	22,464	21,094	6.5	-
Operating income	495	697	(29.0)	Operating income decreased year-on-year due to soaring  prices of scrap iron and other materials.
Ordinary income	921	1,122	(17.9)	-
Current net income	614	609	0.8	-
Automobile & other vehicle components
Sales	18,508	17,691	4.6	Sales increased as a result of a greater volume of autos being exported.
Operating income	972	1,352	(28.1)	-

Production structure
-The Company is reviewing its project to build a new plant in Toki City, Gifu Prefecture. The planned new facility was scheduled to start operations in October 2008. 

R&D Structure

-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.

R&D Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Automobile & other vehicle components	22	35	42

Capital Expenditure

(in millions of JPY)		FY2007	FY2006	FY2005
Overall		1,641	1,805	3,140
Automobile & other vehicle components	Casting	792	689	2,136
	Processing	844	1,100	1,002

Capital investments (Automobile & other vehicle components - FY2007)

- The cast parts segment focuses its investment activities on maintaining, revamping, and streamlining its existing production lines including those at Suzhou Chuo Malleable Iron Ltd. in China. 
- The processing segment worked on streamlining production and reducing the number of its workforce.  

New equipment installations

Company/ Facility (Location)	Equipment	Planned amount of investment (million yen)	Project period		Capacity increase
			From	To
The Company Nissin Plant (Aichi, Japan)	Dies and casting facilities	178	Mar. 2008	Mar. 2009	*1
The Company Nissin Plant (Aichi, Japan)	Processing facilities	826	Mar. 2008	Mar. 2009	*1
The Company Kumamoto Plant (Kumamoto, Japan)	Processing facilities	173	Mar. 2008	Mar. 2009	*1
Toki Malleable Iron Co., Ltd. (Gifu, japan)	Casting facilities	29	Apr. 2008	Mar. 2009	*1
Suzhou chuo Malleable Iron Ltd. (Suzhou, China)	Casting facilities	19	Jan. 2008	Sep. 2008	*1

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