Financial overview

(In million yen)	FY2006	FY2005	Rate of Change(%)	Factors
Overall
Sales	134,623	125,061	7.6	-Sales rose year-on-year, as its major customers increased the volume of products they manufactured.
Operating income	4,435	3,427	29.4	-Operating income went up from what it was last year, thanks to an improved sales-to-cost ratio.
Ordinary income	4,111	3,058	34.4	-Ordinary income and net income significantly increased year-on-year as a result of the Company's initiatives to enhance its operating base and reduce costs.
Net income	2,674	1,080	147.6
Automotive parts division
Sales	101,775	95,759	6.3	-Sales and income at the automotive parts business increased year-on-year, supported by greater production volume of manual transmission systems, engine parts, and suspension products.
Operating income	2,921	2,577	13.3

R&D structure
-The Company conducts its major R&D activities in line with developments being made at Honda Motor Co., Ltd. Also, in the area of aluminum die casting products, it works jointly with a motorcycle manufacturer based in the U.S.

Recent developments(Automotive products) 
The focus of development activities is on the following:
-Transmission systems and transmission parts such as differential gear cases and high-strength aluminum die casting products.

Total amount of R&D expenditure during FY2006 was 261 million yen. 

-Capital spending in fiscal year 2006 totaled 8,682 million yen, of which 6,888 million yen was invested in the automotive parts division. 
-In fiscal year 2007, the Company plans to invest 4,390 million yen in the domestic auto parts business, and another 3,073 million yen in the overseas auto parts business.