FUJI OOZX Inc. Business Report FY2007

Business Highlights

Financial Overview
(in million JPY) FY2007 FY2006 Rate of
Change
(%)
Factors
Sales 21,767 21,614 0.7 The Company maintained sales volume in Japan and rolled out active sales activities such as price increase negotiation. The Company's KD exports were strong. Supported by these factors, sales in the products business increased by 3.2% year-on-year to 19,867 million yen, including engine valves which is the Company's mainstay product, 
Operating income 1,832 1,800 1.8

Operating income increased due to cost reduction and productivity improvement activities.

Ordinary income 1,881 1,937 (2.9) -
Net
income
1,226 1,134 8.1 -

R&D

R&D Structure

OOZX technical center was completed in December 2006 within the Company's Shizuoka plant. 

R&D Expenditure
(in millions JPY) FY2007 FY2006 FY2005
Overall 200 142 142

R&D Activities
During fiscal year 2007 that ended March 2008, the Company worked on strengthening its R&D structure, developing valve production technology that relies on the use of high-intensity materials, and enhancing its R&D capabilities in terms of making parts lighter in weight.

Technical Agreements (As of Mar. 2008)


1) Mutual Technical Assistance Agreements
Partner Items Contents Period
TRW Automotive U.S. LLC
(USA)
Engine valves Approval for non-Exclusive rights for manufacturing, sales and use Jan. 1 1996 -
(Automatic renewal)
TRW Automotive GmbH.
(Germany)

2) Licensor

Partner Items Contents Period
Wuchou Valve Industry Co., Ltd.
(Taiwan)
Engine valves Approval for non-exclusive rights for manufacturing, sales and use of technology Mar.14, 2005 -
(Automatic renewal)
Cotters Approval for exclusive rights for manufacturing, sales and use of technology Jun. 30, 2006
-
Jun. 29, 2011
Shin Han Valve Ind. Co., Ltd.
(Korea)
Engine valves Approval for exclusive rights for manufacturing, sales and use of technology Sep. 29, 2005
-
Sep. 28, 2008
TRW Fuji Serina Co., Ltd.
(Thailand)
Engine valves Approval for non-exclusive rights for manufacturing, sales and use of technology Jan. 1, 2007
-
Dec. 31, 2011
TRW Fuji Valve Inc.
(USA)
Engine valves Approval for non-exclusive rights for manufacturing, sales and use of technology Sep. 15, 1988
-
dissolution of JV
Shriram Pistons & Rings
(India)
Engine valves Approval for non-exclusive rights for manufacturing, sales and use of technology Dec. 5, 2005
-
Dec. 4, 2012

Investment Activities

Capital Expenditure
(in million JPY) FY2007 FY2006 FY2005
Overall 645 1,084 1,702
Product Division 418 1,024 1,463

In the products business, the Company invested in machinery and equipment to streamline the engine valve production line at Shizuoka Plant in FY2007 (ended March 2008).

New facilities:
Facility
(Location)
Division Facility type Planned Investment Amount
(millions JPY)
Start Scheduled Completion
Shizuoka Factory
(Kikukawa-shi Shizuoka Pref.)
Products business division Facilities for small valves used in engines 315 Mar. 2008 Mar. 2009
Maintenance and renewal 190 Mar. 2008 Mar. 2009