Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change (%)	Factors
Sales	194,155	165,827	17.1	Sales increased thanks to the effect of successive launches of new vehicles by customers in the previous fiscal year, in markets in which the Company has facilities.
Operating income	11,472	6,978	64.4	Sales increased in all markets where the Company did business. While the depreciation cost increased as a result of corporate tax revision in Japan, group-wide rationalization initiatives including UPS activities offset this.
Ordinary income	10,638	7,261	46.5	-
Net income	5,741	3,479	65.0	-

Contracts
-In Sept. 2007, the Company announced that Unipres Guangzhou Corporation, its Chinese subsidiary, has been awarded an order of automatic transmission parts by Tianjin AW Automatic Transmission Co., Ltd., the Chinese subsidiary of Aisin AW Co. Ltd., and will start mass production for the new program. Unipres Guangzhou Corporation is expected to manufacture and supply 8,500 units of stamped auto parts for automatic transmissions a month. This is the first time for the Company, which is Nissan-affliated, to receive orders from any of Toyota group companies. (From a press release on Sep. 21, 2007)

-In Nov. 2007. the Company announced that it has been awarded new business from JATCO to supply torque converters. Under the contract the Company will supply torque converters for FWD automatic transmissions by setting up integrated system of production from stamping to assembly at the Fuji Plant (Fuji City, Shizuoka Pref.) as well as at the customer's Fujinomiya Plant (Fujinomiya City, Shizuoka Pref.) The Company will be investing 1.6 billion yen in this project with an estimated sales of 7 billion yen in 2010. The full-scale production will be commenced in the first half of 2008. (From a press release on Nov. 28, 2007)


Reinforcement of business structure
Reinforcement of AT parts business
-In Jun. 2007, the Company announced that it plans to reinforce its automatic transmission (AT) parts business. It will review production responsibilities of each operational site for rationalization and sales expansion, as in the case of a parts processing subsidiary which will introduce a full-scale integrated manufacturing system. The transmission business division aims to achieve sales of 20 billion yen this fiscal year, up 3.6 percent from a year earlier, and the revenue-expenditure balance improvement of 300 million yen. (From an article in the Nikkan Jidosha Shimbun on Jun. 12, 2007)

Enhancing support in Japan for overseas operations.
-In Aug. 2007, the Company announced that it plans to enhance support in Japan for its overseas operations. As it will transfer in FY 2007 its stamped parts production to Tochigi Plant (Moka city, Tochigi prefecture), from Sagami Office and Kanagawa Plant (both in Yamato city, Kanagawa prefecture), it plans to develop the Sagami district as a mother factory where production preparations, die evaluation, experimental volume production will be performed to support its overseas operations. It aims to shorten the lead time before starting mass production overseas by making full efforts in previous evaluations on new vehicle parts to be assembled overseas by its customer automakers. (From an article in the Nikkan Jidosha Shimbun on Aug. 23, 2007)


Business Plan
Mid-term management plan
-In Jun. 2007, the Company unveiled its mid-term management plan from FY2007 to FY2009. The plan includes expansion of local operations in response to increasing overseas production of its main customer Nissan Motor, as well as strengthening product lines such as body parts made of high-tensile steel plates and transmission components. The Company will also review its domestic production structure and consolidate production of its mainstay stamped body parts to two facilities in Tochigi and Kyusyu. Targets on a consolidated basis for the final year are sales of 185 billion yen (up 11.6% from FY2006) , operating margin of 10 billion yen (up 42.9%), and ordinary profit of 9 billion yen (up 23.3%). Capital investment is planned at 41 billion yen while R&D cost is set at 5.1 billion yen for the three years. The new management plan intends to respond to production shift overseas of its major customers, including Nissan, focused on increasing sales and improving profit in China and Mexico. Target for annual sales in China, where Unipres expanded its business in fiscal 2004, is set at 20 billion yen (up 132.6%) while that in Mexico is 16 billion yen (up 16.8%). (From an article in the Nikkan Jidosha Shimbun on Jun. 6, 2007)

R&D

R&D