Financial overview

(in million JPY)	FY2007	FY2006	Rate of Change (%)	Factors
Overall
Sales	662,497	593,454	11.6	-
Operating income	52,125	31,550	65.2	-
Ordinary income	50,541	31,347	61.2	-
Net income	30,802	15,943	93.2	-
Automotive component business
Sales	631,384	560,114	12.7	Sales of the automotive component business increased in all markets globally.  New product development activities and active marketing efforts focusing on interior/exterior components and safety system products contributed to greater sales.
Operating income	51,285	35,420	44.8	Operating income increased due to rationalization initiatives that reduced initial costs and improved its marketing activities worldwide, especially in Asia and Australia.

Sales by region

(in million JPY)	FY2007	FY2006	Rate of Change (%)	Factors
Japan
Sales	407,620	374,191	8.9	Increased sales volume to customers such as Toyota Motor, in addition to the Company's marketing activities promoting interior/exterior parts and safety systems contributed to greater sales.
Operating income	25,837	18,975	36.2	Increased sales and rationalization activities such as reducing initial costs contributed to higher income.
North America
Sales	143,664	141,404	1.6	Increased production by major customers and effective marketing activities contributed to greater sales.
Operating income	8,414	6,367	32.2	Operating income increased, thanks to increased sales, and to reduced costs in connection with launching new production facilities.
Australasia
Sales	121,702	91,183	33.5	Brisk demand mainly in China and Thailand contributed to greater sales
Operating income	15,572	6,648	134.2	Expanding business operations mainly in China and Thailand contributed to increasing income.
Others
Sales	36,372	26,626	36.6	Expanding business operations in the Czech Republic contributed to increasing sales.
Operating income	1,683	(1,001)	-	Increased sales and rationalization efforts contributed to increasing income.

Recent Developments in Japan

- Absorbing Toyoda Gosei Kyushu

The Company absorbed the operations of its wholly owned subsidiary, Toyoda Gosei Kyushu Co., Ltd. on January 1, 2008 in order to improve its productivity so as to more effectively respond to the increased production volume of car manufacturers in the Kyushu region. (From the Company's press release dated September 20, 2007) 

- Capital Investment

The Company decided in November 2007 to manufacture interior/exterior components, in addition to body ceiling and safety products, at its Kita-Kyushu Plant.

>>> See Investment for more details

Recent Developments Outside Japan

-USA

In March 2008, the Company announced that it would establish a new plant in Mississippi, USA. to manufacture interior/exterior components.

>>> See Investment for more details

R&D Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Automotive Parts Business	22,300	19,900	19,000
Non-Automotive Parts Business	3,600	5,300	5,400

R&D Structure
Each division's development department cooperated on global R&D activities in collaboration with the Technology Department, Production Technology Department, Technology Management Department, Development Department, Production Technology Development Department, Material Technology Department, and TG North America's technology headquarters and TG Europe, which are currently consolidated subsidiaries. By conducting these activities the Company aims to have eight of its products lead in market share in the world in 2010.

The Company established a Technical Center in Inazawa City, Aichi Prefecture, in 1961. 

The Company will build its second technical development center in Japan in order to strengthen development activities to engineer advanced technology and production engineering techniques, especially in the area of safety systems. (From an article in the Nikkan Jidosha Shimbun on Dec. 15, 2007)

R&D Activities (FY2007)

-The Company developed, and now commercially produces, curtain airbags that cover the entire three rows of seats in vehicles in order to more effectively respond to rollovers.
-The Company developed, and now commercially produces, map-light source units that use LEDs and scuff plates.
- The Company developed, and now commercially produces, new opening trim weather-strips that not only are low in cost but also come in highly stylized designs. 

-The Company developed full limit vent valves with a new design architecture, commercially producing them for new customers. 

-The Company worked on developing materials such as water-borne paint for PP interior parts; products; and production technology that comply with environmental regulations.   
-The Company worked on developing an all-composite, high-pressure hydrogen tank for fuel cell vehicles.

Technological Alliance

The Company and OSRAM GmbH in Germany have entered an agreement to allow the two entities, inclusive of their subsidiaries, to use each other's patents for specific technologies in Group III-V nitride compound semiconductor light emitting diodes (LEDs), including white LEDs technology. This agreement will provide both parties with greater freedom in their development efforts. New developments in LED technology will be further facilitated, including an acceleration of research to improve the luminosity of LEDs, by actively promoting research works at both companies. (From a press release on Sep. 28, 2007)

Patent License Contracts for Innovations in Technology (as of Mar. 31, 2008)

Company	Country	Contract	Period
Eaton Corporation	USA	A patent license agreement for fuel valves.	Feb. 10, 1999 - Feb. 18, 2013
Autoliv Development AB	Sweden	A patent license agreement for curtain airbags.	Feb. 5, 2001 - Feb. 20, 2016
Stant Manufacturing, Inc.	USA	A patent license agreement for quick turn fuel caps.	Apr. 2, 2001 - Oct. 18, 2014
Visteon Global Technologies, Inc.	USA	A patent license agreement for fuel valves.	Nov. 20, 2001 - Aug. 24, 2010
Intier Automotive Interiors of America	USA	A patent and expertise license agreement for urethane spray surfaces	Nov. 18, 2002 - May 10, 2014

Technical Assistance Contracts (as of Mar, 31, 2008)

Company	Country	Contract	Period
Stant Manufacturing, Inc.	USA	An expertise license agreement for conductive fuel caps	Nov. 17, 1998 - Dec. 21, 2018
TI Automotive Ltd.	UK	A patent license agreement for fuel cut-off valves	Sep. 12, 2002 - Oct. 16, 2009
Magna Steyr Fuel Systems	Germany	A patent license agreement for conductive fuel caps.	Feb. 26, 2004 - Dec. 21, 2018
Orbitronics Co., Ltd.	Pakistan	An expertise license agreement for steering wheels	Dec. 29, 2006 - Dec. 28, 2014
Pong Codan Rubber (M) Co., Ltd.	Malaysia	A technological licensing agreement on weather-strips	Jul. 16, 2007 - Jul. 15, 2012

Capital Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Automotive Parts Business	49,300	52,000	44,400
Non-Automotive Parts Business	3,800	2,900	1,200
Group	53,100	54,900	45,600

Domestic Investment (FY2007)

The Company decided to manufacture interior/exterior components in addition to body sealing products and safety products at its Kita-Kyushu Plant in order to respond to automakers' increasing their production volume in the Kyushu region. In June 2008, the Company started to manufacture grills, back panels, bumper malls, meter rings, etc. at the Kyushu facility. The Company is planning to invest about 1.2 billion yen in fiscal 2008, and about 0.9 billion yen in fiscal 2009 to upgrade the facility. The company expects the sales of interior/exterior components at the Plant to be about 0.4 billion yen in fiscal 2008, and about 3.8 billion yen in fiscal 2010. (From the Company's press release dated November 14, 2007)

Overseas Investment (FY2007)

-USA

Investing about 2.1 billion yen, the Company will establish a new plant to manufacture interior/exterior components in Mississippi, U.S.A. The main items that the new facility will produce are peripheral components for  instrument panels;  console boxes; and radiator grills. Production will start in 2010. The new plant is being positioned as a satellite plant of its subsidiary, TG Missouri Corporation (TGMO), and will supply the products it produces to Toyota Motor Manufacturing Missisippi, Inc. (TMMMS), which will start operating around 2010. The Company expects first-year sales to be about 3.4 billion yen (From the Company's press release dated March 3, 2008).

Capital Investment Plan (FY2008)

-The Company plans to invest 61,000 million yen to construct and expand facilities company-wide. The investment in the automotive part business is expected to be 56,295 million yen.