Highlights FY2007 (ended Mar. 2008)

Financial Overview

(in million JPY)	FY2007	FY2006	Rate of Change (%)	Remarks
Overall
Sales	225,440	216,200	4.3	-
Operating income	3,841	3,096	24.0	-
Ordinary income	3,897	4,250	(8.3)	-
Current net income	649	(134)	-	-
Transportation equipment related business
Sales	216,826	207,631	4.4	Sales of transportation equipment increased year-on-year, supported by favorable sales mainly in Asia, and the performance of three new consolidated subsidiaries in Europe.
Operating income	3,269	2,716	20.4	Operating income rose year-on-year due to increased sales in the automotive business mainly in Asia.

Absorption

The Company decided to absorb its wholly owned subsidiary, Jidosha Denki Kogyo Co., Ltd., effective as of April 1, 2007. Major companies that became the Company's consolidated subsidiaries as a result of absorption included;

-Mitsuba Bardstown, Inc. (USA)
-Mitsuba Manufacturing Batangas Corporation (The Philippines)
-Mitsuba Electric (Dalian) Co., Ltd. (China)
-Mitsuba Manufacturing France S.A. (France)

Contracts

-The Company supplies door-mirror type side turn lamps for Toyota Crown launched in 2008.

-The Company supplies brushless power steering motors for Honda Accord launched in 2008 for the European market.

Business plan

The Company announced its mid-term plan through Mar. 2011, "The eighth mid-term business management plan." Setting the target of 3.5% consolidated operating profit margin as a pillar of the plan, the Company will promote global marketing of its integrated wiper systems and development of the next-generation power window motors. It will reorganize the corporate structure to reinforce the purchasing function and to increase authority of responsible officers of each business. In global business, the Company will promote management in inventory control and investment. (From an article in the Nikkan Jidosha Shimbun on Feb. 21, 2007)

R&D Structure

-Japan

Facility	Location
Mitsuba R&D Center	Gunma
Yokohama R&D Base	Yokohama

-Overseas
The Company is working on globalizing its R&D structure. It has enhanced development capability in the U.S.A., as well as improved overseas development capability in Vietnam, the Philippines, India, Italy, Germany and Thailand.


R&D Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	1,136	658	658
Transportation equipment related	960	448	448

R&D activities (FY2007)

-New Product Development

The Company successfully developed door-mirror type side turn lamps which utilizes new film formation technology. This technology enables the Company to form silver mirror finished film inside the lamp with the Ultra Molding & Sputtering System. This system offers a film formation process in addition to an OSI formation process for forming and joining in one molding die, thereby improving value and reducing cost. The Company supplies the new product for Toyota Crown launched in 2008.

The Company developed a new brushless power steering motor which retains high output performance and successfully reduces size and noise at the same time. It is an environmentally friendly product and contributes to improving fuel economy of automobiles. The Company supplies the product for Honda Accord launched in 2008 for the European market.

-The Company is working on developing various kinds of system products as well as next-generation actuators, along with elemental technology in order to enhance the reliability of its products.

-Development plan

The Company, in efforts to strengthen its in-vehicle electric component business, will step up development of brushless DC motors. Starting with brushless motors for the electric power steering (EPS) system for Honda Motor Co., Ltd., the automotive electric parts supplier will further study the possibility of developing other in-vehicle mid-and larger-sized motors, such as those for cooling fans. It is trying to dedicate its expertise as an automotive parts manufacturer to developing motors smaller, but with higher output and lower cost. The Company aims to win large orders by developing highly competitive in-vehicle motors, including their components such as control semi-conductors, which often are a bottleneck for cost reduction. (From an article in the Nikkan Jidosha Shimbun on Nov. 26, 2007)

Contracts for receiving technical support (as of Mar. 31, 2008)

Contractor Name	Name of other party	Contract details	Contract Period
The Company, Tokyo Electrica de Mexico, S.A. de C.V.	Ichikoh Industries	Exercising the usage of patents and expertise in manufacturing automotive components in Mexico.	Between Dec.1993 and the time the Company discontinues production of related products
The Company	Donnelly (USA)	License agreement on rearview mirror systems fixed on the body. This includes turn signal lights.	Between Sep. 2005 and the time when the patent expires

Contracts for giving technical support (as of Mar. 31, 2008)

Partner	Agreement Details	Contract Period
Shihlin Electric & Engineering Corp.(Taiwan)	Production technology license and operational license for motorcycles / automobiles electric parts	From Aug. 1998 (automatic renewal)
Armstrong Auto Parts Sdn. Bhd. (Malaysia)	Production technology license and operational license for motorcycles/automobiles electric parts	From May 1992 (automatic renewal)
Valeo (France)	Production technology license and operational license for automobile starter motors	From March 1989 (automatic renewal)
Kamco (Korea)	Licensing of technology for wiper motors for automobiles	Feb. 2008 - Feb. 2010
Kamco (Korea)	Licensing of technology for power window motors for automobiles	May 2007 - May 2009
Smith (South Africa)	Licensing of manufacturing technology for wiper motors for automobiles	From Mar. 1979 (automatic renewal)
APM Auto (Malaysia)	Licensing of technology for wiper motors and washers etc. for automobiles	Apr. 2007 - Apr. 2012
Taizene Electric (Taiwan)	Licensing of manufacturing technology for wiper motors, power window motors and door lock actuators etc. for automobiles	Jun. 2003 - Jun. 2008
Deloyd (Malaysia)	Licensing of manufacturing technology for power window motors and door lock actuators for automobiles	From Oct. 2001 (automatic renewal)

Capital Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	15,048	17,731	17,731
Transportation equipment related	14,866	17,452	17,452

Capital investment (FY2007)

-The Company invested mainly in automobile power window motors and automobile wiper motors for the transportation equipment components business.
-The Company's stand-alone investment was 7,402 million yen.

Main facility construction projects (as of Mar. 31, 2008)

Name	Facility type	Planned investment amount (million JPY)	Construction start month	Planned completion month
The Company
R&D Center	R&D facilities	482	Apr. 2008	Mar. 2009
Akagi Plant	Machines for new products	330	Apr. 2008	Mar. 2009
Niisato Plant	Machines for new products	207	Apr. 2008	Mar. 2009
Onishi Plant	Machines for new products	1,738	Apr. 2008	Mar. 2009
Tone Plant	Machines for new products	265	Apr. 2008	Mar. 2009
Tomioka Plant	Machines for new products	200	Apr. 2008	Mar. 2009
Fukushima Plant	Machines for new products	137	Apr. 2008	Mar. 2009
Nigata Plant	Machines for new products	528	Apr. 2008	Mar. 2009
Kikukawa Plant	Machines for new products	73	Apr. 2008	Mar. 2009
Domestic Subsidiaries
Sun-You Corporation	Machines for new products	250	Apr. 2008	Mar. 2009

Note: The Tomioka Plant and Fukushima Plant belong to Jidosha Denki Kogyo Co., Ltd. (JIDECO), which the Company absorbed on April 1, 2007.