Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)
Sales	113,001	106,400	6.1
Ordinary income	5,527	4,600	18.7
Net income	1,039	600	69.2

Sales by product
<Engines>
-The volume of sales of products for installation on the Nissan Wingroad, Cube and Note that were sold in Japan decreased; while the sales volume of products destined for Europe, Russia and the Middle East increased as the markets in which the Tiida was sold were expanded. Sales increased 10.4% to 52,400 million yen as a result of brisk sales of products for installation on the Qashqai and the Note marketed in Europe.  

<Manual Transmissions>
-Sales were down, negatively affected by the discontinuation of producing  transmissions for Nissan Europe's Almera, Primera and Sentra sold in the North American market. This decrease was offset by a rise in sales volume of products installed on the Nissan Qashqai sold in the European market, recording a 1.6% increase in sales year-on-year to 23,300 million yen.  

<Automobile parts>
-Sales increased 3.5% year-on-year to 37,200 million yen.


Company plans to increase gasoline engine production for compact vehicle models
-The Company will enhance production of gasoline engines for Nissan's small-size vehicles. For fiscal 2008 the Company announced a plan to increase production by 20 to 30 percent by value from the result of the first half of fiscal 2007. This is to deal with expanded needs in the Middle East and Russia and an expected sales increase of models for which the Company supplies engines. Also in 2009 the Company will begin producing new engines for compact cars. (From an article in the Nikkan Jidosha Shimbun on Jan. 23, 2008)


Company's Global expansion plan
-The Company will step up efforts for overseas production of powertrain units. The Company will aim to start its overseas operations during the next three-year midterm management plan starting in fiscal 2009. The current global complementation scheme between Nissan Motor, which is it's leading shareholder, and Renault (France) does not cover manual transmissions in Asia. It is, therefore, highly probable that the Company will eye producing manual transmissions in Asia. The Company is expecting to receive support from Nissan Motor in its global business expansion and respond to needs in a growing Asian market. (From a story in the Nikkan Jidosha Shimbun on Dec. 14, 2007)

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Automotive Business	67	96	34

Product Development Structure
-The Company set up an integrated R&D structure that enables the Company to conduct planning, designing, and test production experiments needed for commercializing products. Also, the Company developed innovative products including clean, economical, and high performance engines and compact and light manual transmissions by fully utilizing the latest computer systems on digital mockups, simulation and data analysis. 


R&D achievements
Engines
-In January 2008 the company started production of the HR15DE, an in-line, four-cylinder engine with improved fuel efficiency compared with existing engines currently installed on the Nissan Tiida, Note, Wingroad and other vehicles models.

Manual transmissions:
-The Company modified its R31A manual transmission for FR vehicles and has been supplying it to the Nissan Skyline coupe since June 2007. 

-The Company started supplying its F52A manual transmission, which is designed for FF vehicles, to the Renault Samsung QM5 in October 2007. 

-In October 2007 the Company launched production of its GR6 dual clutch transmission designed for the Nissan GT-R. 

-In March 2008 the Company announced that it has begun shipping GR6 to Nissan Motors' Tochigi Plant. GR6 is a newly-developed six-speed dual-clutch transmission, equipped with an electromagnetic clutch E-TS all-wheel drive system and a rear-mounted transaxle. It boasts responsiveness with a minimal 0.2 sec shift-time. (From a press release on Mar. 24, 2008)


HR15DE Engine >>>Image1 , Image2 ,. Image3
-The engine was developed to attain both fuel efficiency and acceleration performance under the most common driving conditions. The engine offers the highest specs in its class, with medium and low speed torque, fuel efficiency, low-noise, and light weight/compact-size. 

-Combustion time was shortened and thermal efficiency improved by strengthening the gas flow within the combustion chamber.

-This engine employs the world's highest level of friction reduction technology through utilizing a new method to machine cylinder bores and producing a mirror-finish to the crankshaft and cam bearings.

-Out of engine composing parts, nine are manufactured in the Company >>> Rocker Cover , Water Outlet , Camshaft , Cylinder head , Cylinder Block , Connecting rod , Crankshaft , Front Cover , Oilpan (according to JSAE 2006)

Capital investment

(in millions of JPY)

	FY2007	FY2006	F2005
Automotive Business	5,300	7,400	8,900

-The Company invested 4,800 million yen mainly on streamlining and renewing manufacturing facilities to produce automotive units and parts for both redesigned engines and manual transmissions made by its customers. The Company spent 2,700 million yen on the Engine Segment and 2,100 million yen on the Manual Transmission Segment.


Capital investment
-For the 2008 fiscal year ending in March 2009, the Company plans to invest 10,100 million yen mainly on manufacturing facilities for producing automotive units and parts, in order to deal with planned model changes of engines and manual transmissions made by its customers.