Financial Overview

in million JPY	FY2006	FY2005	Rate of change (%)	Factors
Sales	18,174	15,478	17.4	- Sales increased due to greater production volume by automakers, which are its major customers. - The sales of precision forged products were 10,902 million yen, a 21.9% increase year-on-year; and those of screws were 6,934 million yen, a 11.3% increase year-on-year. Sales of precision forged products and screws increased significantly due to greater production volume by automakers. For the precision forged products, the increased sales stems from the fact that the Company was able to pass materials costs, which had been rising since the previous fiscal year, onto the selling prices of its products.
Operating income	1,129	691	63.4	- Both the operating income and ordinary profit increased in spite of price hikes in raw materials, which have been steadily rising since the previous fiscal year. The increased sales are attributed to the fact that the Company was able to partially pass the costs of materials for synchronizer rings (one of its major products), onto the selling prices of its products; reduce the amount of its losses; and improve its physical-distribution network. -The Company posted expenses for the centennial project commemorating its foundation; and a business impairment loss at its subsidiary in the United States, OSR, Inc., as an extraordinary loss. However, profits increased because the Company recorded the revenue,  which was derived from the repayment of insurance premium for an insurance policy that matured, as an extraordinary profit.
Ordinary income	1,192	769	55.1
Current net income	677	467	45.1

-R&D expenditures for FY2006 were 1,886thousand yen.

(1) Precision forged products: 996 thousand yen.
The Company reassessed the materials used in and the processing methods conducted for manufacturing synchronizer rings in order to improve durability and to develop high-performing, lower-cost products.
R&D activities were conducted on surface coating technology based on plasma spray coating techniques.

(2) Screws: 890 thousand yen
In its screw business, the Company is working to developing weld & press bolts. These products can shorten work time because work, which is conventionally done by either welding or press fitting by using a stamping machine, can be done by bolting parts or pieces together. In addition, the Company also is making strides to develop high-performing, low-priced products. 

Technology Agreements -Inward (as of March, 2007)

Company	Country	Products under agreement	Details of agreement
Conti Fasteners AG, Inc.	U.S.A.	Trilobular screws	1.Setting the usage rights related to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information	From Sep. 1, 2004 to Aug. 31, 2009
Comcar Division Oftextron, Inc.	U.S.A.	Torx	1.Setting the usage rights related to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information	From July 26, 2005 to July 26, 2008
		Torx Plus		From Jan. 5, 1994 to Dec. 31, 2011
		Strux		From Sep. 26, 2004 to Sep. 26, 2007
Ejot Gmbh&Co.KG Industrila Fastner Division	Germany	Screws	1.Setting the usage rights related to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information	From July 21, 2004 to July 27, 2018

Capital investments in FY 2006 were 635,730 thousand yen, with 526,548 thousand yen spent on machinery.

(1) Precision forged products: 316,058 thousand yen.
To deal with increased supply contracts and also the launch of production of new of synchronizer rings, the Company invested in its manufacturing facilities so as to upgrade them and boost productivity.

(2) Screws: 200,290 thousand yen
To deal with increased orders won, the Company invested on heat treatment furnaces and header machines.

Domestic investment
The Company will build up its heat treatment capacity for screws - the company's core products - in response to growing production of automobiles in Japan. The Company will invest 200 million yen to install an additional heat-treating furnace at its main plant in Nagoya, which now has three furnaces. With the installation work to be completed by the end of this year, the new furnace is scheduled to launch operations at the beginning of 2007, raising the company's domestic heat treatment capacity by 20 percent from the current level. (From an article in the Nikkan Jidosha Shimbun on Nov.16 2006)

New facilities

Type of facility	Planned investment (000 JPY)	Start	Planned completion	Capacity increase upon completion
OYT Co.,Llt. (Rayong, Thailand)
Land and plant building	147,026	Feb., 2007	Apr., 2007	-