Financial overview

In million JPY	FY2006	FY2005	Rate of change(%)	Factors
Overall
Sales	1,878,398	1,505,955	25
Ordinary profit	108,484	80,635	35	Despite of soaring prices of materials and increase in depreciation and personnel cost, ordinary profit was up thanks to sales increase, promotion of cost reduction efforts and a rise in non-operating revenue.
Net profit	59,468	47,077	26
Automotive Division
Sales	904,893	767,564	21	Sales in Japan have been slow, while overseas sales increased in Asia and Latin America.
Operating profit	33,592	20,095	67

<Business performance by division>
Automobiles:
- Sales stood at 470,200 million yen, up 26% year-on-year.
- Sales of RAV4 have been strong in North America and Europe. Vitz also enjoyed brisk sales overseas.
Engines
-Sales stood at 167,400 million yen, up 26% year-on-year. 
- KD diesel engines for IMV series and AD diesel engines installed on RAV4 for the European market enjoyed strong sales.

Automotive air-conditioning compressors
-Sales stood at 235,400 million yen, up 9% year-on-year.
- Sales in Japan were down, while those for North America, Europe and China increased.

New Joint Venture
In Dec 2006, TD Automotive Compressor Georgia, LLC (TACG),-a joint venture between the Company and Denso Corporation to produce car air-conditioning compressors in Georgia, U.S.- held a grand opening ceremony at its new facility on November 30. TACG is the second joint venture between the two companies to produce car air-conditioning compressors in North America and began producing variable displacement compressors in December 2005. TACG's variable displacement compressors are currently supplied for the Toyota Camry and Chrysler Sebring, and TACG expects to produce 950,000 units in the fiscal year 2006. Also TACG plans to annually produce two million units of variable displacement compressors by 2010. (From an article in the Nikkan Jidosha Shimbun on Dec.2, 2006)

R&D expenses

Unit: millions of yen	FY2006	FY2005
Automobiles	16,275	16,578
Total	34,548	31,166

Main areas of R&D:
- Power supply equipment including DC-DC converters for hybrid cars
- Variable displacement compressors that automatically control cooling performance depending on the temperature and engine status
- Fixed displacement compressors that are compact and light
- New clean diesel engines

Capital Expenditure

Unit: millions of yen	FY2006	FY2005
Automobiles	57,179	90,488
Total	158,632	151,794

Major breakdown in Automotive business ?
In particular, the Company spent 8,079 million JPY for TD Automotive Compressor Georgia, LLC.; 5,874 million JPY, Tokyu Co., Ltd. 4,319 million JPY縲ゝoyota Industry Automotive Parts (Kunshan) Co., Ltd. 2,037 million JPY, Tokaiseiki Co., Ltd. 1,589 million JPY, TD Deutsche Klimakompressor GmbH 1,570 million JPY, Iwama Loom Works, Ltd. 1,204 million JPY, Izumi Machine Mfg. Co., Ltd. 1,025 million JPY.


New equipment installment (Automotive Business)

Company/ Plant (Location)	Equipment to be installed	Expected Investment (Millions of yen)	Started	Expected Completion
Nagakusa Plant (Aichi Pref., Japan)	Manufacturing facilities for compact cars	15,085	Aug. 2006	Mar. 2008
Kariya Plant (Aichi Pref., Japan)	Manufacturing facilities for textile machinery, Manufacturing facilities for automobile air-conditioner compressors	9,220	Apr. 2007	Mar. 2008
Hekinan Plant (Aichi Pref., Japan)	Manufacturing facilities for gasoline and diesel engines	7,264	Mar. 2007	Mar. 2008
Higashiura Plant (Aichi Pref., Japan)	Manufacturing facilities for compressor  components for automobile air-conditioners	1,892	Feb. 2007	Mar. 2008
Obu Plant (Aichi Pref., Japan)	Manufacturing facilities for compressor  components for automobile air-conditioners	1,841	Feb. 2007	Mar. 2008
Higashichita Plant (Aichi Pref., Japan)	Manufacturing facilities for castings for engines, Manufacturing facilities for diesel engines	1,380	Apr. 2007	Mar. 2008