Financial overview

In million JPY	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	93,948	90,810	3.5	-Domestic sales declined due to a slowdown in consumer automotive sales; and lower demand for delivery trucks, which resulted in lower sales of refrigerated vehicles. Nevertheless, sales in North America were strong and sales on the whole increased.
Operating income	8,740	6,516	34.1	-Overall sales increased, thanks to strong performance at the stamped-products business. This was enough to offset the loss generated by the non-stamped-products business.
Ordinary income	8,342	7,030	18.7	-Due to a non-operating loss resulting from currency translation on loans made to the Company's affiliates overseas, ordinary income increased only 18.7%.
Current net income	4,023	3,639	10.5	-
Stamped products
Sales	56,183	49,768	12.9	Sales of products in Japan destined for major vehicle models were slow due to a slowdown in demand for new vehicles. But sales overseas were relatively strong. On the whole, the Company was able to maintain the same volume of sales as that of the previous year. -The Company's North American plant, Topre America Corporation, was able to maintain a high volume of sales of products for major vehicle models both in the first and second halves of the year, leading to a significant increase in sales.
Operating income	7,358	3,841	91.6	-Overseas, Topre America Corporation improved its sales volume and profit. In Japan, sales launches of products for new vehicle models were successful. The Company also won more orders for parts destined for test vehicles, increasing its income. Also, the Company increased its income in the stamped-products business.

Recent Developments Outside Japan
<USA>
The Company, a stamped parts maker, will significantly expand its U.S. business. The Company will consider opening new facilities and expanding the existing plant in Alabama as concrete measures to increase production capacity by the end of 2007. In consideration of an increasing local production of its major customers including Nissan, the Company decided that it has to strengthen its production structure depending on orders expected in the future. In 2010 and thereafter the Company will raise annual sales in the U.S. to approx. 25 billion yen from the present 20 billion (projection for FY2008.) The Company's U.S. plant started operations in 2004 as its first overseas subsidiary and manufactures stamped parts such as body frames. During the fiscal year 2006 the plant was expanded in the second phase of investment and expansion of a stamping line was completed. Sales have been staying favorable against its initial plan, and are expected to reach 20 billion yen in 2008. (From an article in the Nikkan Jidosha Shimbun on Jul. 27, 2007)

R&D Structure
R&D Headquarters: The Company is developing  and commercializing new products which make use of its core technologies.
The Divisions: All of the divisions are developing new products and technologies, with the idea of creating new features.

R&D Expenditure
R&D expenses amounted to 987 million yen in FY2007.

Stamped Products
-Automakers have huge needs for lighter products that can comply with new emission standards, which are to take effect both in and outside Japan in 2010 and after. To meet such needs, the Company is developing technology, including a new die quenching method, which it is has already starting making preparations to commercially launch.

-In its development activities on molding simulation technology, the Company developed analytic technology that can predict stamp-forming properties better than it could before. The Company has already starting using this technology in mass production.

Technical Alliances Outside Japan (as of Mar. 2008)

Company	Country	Products	Associates	Contract Period
Sunrise Machinery Co., Ltd.	China	Automotive stamped products and dies	License providing technological  information and know how	From August 31, 2007 until August 30, 2012

Capital Expenditure
Overall capital investment in FY 2007 was 6,661 million JPY, which was mainly spent on the stamped-products business.

The Company invested 5,470 million JPY in facilities at its stamped-parts business.
- 3,492 million JPY was invested in molds for automotive stamped parts.
- 1,978 million JPY was invested in consolidated subsidiaries, Topre Kyusyu and Topre America Corporation, mainly for manufacturing facilities to produce stamped components for automotive use.


New facility (Stamped-products business)

Name	Type of facility	Planned total investment (in million JPY)	Start	End	Increased capacity upon completion
Sagamihara Office	Facility for molds used in making stamped, automotive parts	1,277	March 2008	March 2009	About the same
Hiroshima Office
Topre America Corporation Headquarters Plant (Alabama, USA)	Expanded facility for automotive stamped parts	4,000	March 2008	Dec. 2009	50%