Financial Overview

(in million JPY)	FY2006	FY2005	Rate of Change(%)
Overall
Sales	131,637	123,351	6.7%
Operating income	13,696	11,759	16.5%
Ordinary income	14,382	12,194	17.9%
Current net income	9,391	5,756	63.1%
Plastic component business division
Sales	110,688	103,340	7.1%
Operating income	14,753	12,360	19.4%

Overview of business performance at the plastic component business
<For the domestic automotive industry>
The Company increased the total amount of content per vehicle by selling more interior parts such as cup holders, fuel system components that address environmental problems, bumpers, and retainers; in addition to its mainstay products, fasteners.

<For the oversees automotive market>
Sales increased mainly in Asian countries such as Korea, China, and Thailand, as a result of Japanese automakers procuring more parts locally in Asia because they have expanded their production volume overseas in these countries. In addition, consolidated subsidiaries overseas marked year-on-year increases in sales and profits due to improved performance by European subsidiaries, as well as other factors.

Major business performance by region

(in million JPY)	FY2006	FY2005	Rate of Change(%)	Main factors
Japan
Sales	82,609	78,870	4.7%	Sales increased as a result of steady domestic production of four-wheel vehicles by automakers, which resulted from a rise in the volume of export products
Operating income	11,594	11,533	0.5%	Good performance at the Company's main business contributed to increased income
Asia
Sales	32,908	26,280	25.2%	Increased sales resulted from the good performance by subsidiaries overseas, mainly in Korea, supported by growth at Hyundai Motor Company; as well as in China and Hong Kong
Operating income	3,928	2,716	44.6%	Increased profit was driven by increased sales
North America
Sales	14,841	14,128	5.0%	Sales rose because of increased revenue that was attributed to the growth of Japanese automakers
Operating income	618	721	(14.3%)	Operating income decreased as a result of higher costs such as start-up costs and costs for production improvement activities
Europe
Sales	6,730	8,911	(24.5%)	Sales decreased due to a change (reduction) in the accounting period at the UK subsidiary (a nine-month reporting period), and due to the withdrawal of unprofitable products, etc.
Operating income	(117)	(629)	-	-

R&D expenses in FY2006 ending Mar. 31, 2007, were 1,788 million yen. The major share of the expenses were for the composite plastics molded products business, in which the Company invested 1,657 million yen.

R&D activities in the composite plastic molded products business (Automotive)
Technology responding to environmental issues
The Company developed products in response to the California, USA PZEV regulations. These include a thinner FLVV (Fill Limit Vent Valve) for fuel tanks that are thinner than conventional tanks; and a small ROV (Roll Over Valve) that provides greater added value because of having many functions integrated within it.  
Technology on elemental systems
The Company developed new dampers such as a sophisticated small damper that has more consistent torque under any temperature range and improved features in terms of temperature factors; and a damper that responds at medium and high torque ranges.  

Technology Agreements (Inward) (as of Mar. 2007)

Partners	Contents of tie-ups	Country	Contract term
Illinois Tools Works	Plastic buckles	U.S.A.	Up to Aug. 2028
Mitsubishi Gas Chemical Company, Mitsubishi Corporation	Gas assisted injection molding methods and related equipment (Including a sublicense of a patent of Sympress, UK)	Japan, U.K.	Up to Oct. 2009
Thixomat	Injection molding technology for molten metal (magnesium) to which thixotropy phenomenon is applied.	U.S.A.	Up to Feb. 2009

Technology Agreements (Outward) (as of Mar. 2007)

Partners	Country	Contents of contract	Contract term
Taiwan Industrial Fastener Corporation	Taiwan	Manufacturing technologies for plastic buckles and industrial fasteners	Up to Dec. 2010
Korean Industrial Fastener Corporation (KIFCO)	Korea	Manufacturing technologies for plastic buckles and fasteners	Up to Dec. 2009
Nifco Manufacturing (Malaysia) Sdn. Bhd.	Malaysia	Manufacturing technologies for plastic buckles and industrial fasteners	Up to Dec. 2007
Nifco (Hong Kong) Ltd.	Hong Kong	Manufacturing technologies for plastic buckles, plastic or metal fastener assembly	Up to Dec. 2010
Nifco (UK Limited) Ltd	U.K.	Industrial plastic parts and assemblies that contain other parts and materials	Up to Dec. 2009
Nifco America Co.	U.S.A.	Industrial plastic parts and assemblies that contain other parts and materials	Up to Dec. 2009
Nifco Products Espana S.L.U.	Spain	Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Up to Dec. 2007
Shanghai Nifco Plastic Manufacturer Co., Ltd.	China	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Up to Dec. 2007
Nifco Shi-Long Plastic Factory	China	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Up to Dec. 2007
Nifco Thailand Co., Ltd.	Thailand	Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Up to Dec. 2008
NIFCO (Donngguan) Co., Ltd.	China	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Up to Dec. 2008
Beijing Nifco Co., Ltd.	China	Resin products with adhesive properties, metal parts and components, complex products with resin and metal parts, buckles and the related production technology and tools for these parts and components.	Up to Dec. 2010

Capital investment  for FY2006 was 7,649 million JPY.

The Company invested 4,308 million JPY in the composite plastic molded products business for die equipment, fuel system facilities, and automated assembly facilities to respond to new business won from Japanese automakers. 

Domestic Investments
The Company invested 528 million JPY in JT Nifco and Kyushu JT Nifco in order to build a domestic production system that utilizes the Company's expertise on automation.

Investments Overseas
USA
The Company announced that it will establish a new subsidiary in the United States in response to an increasing production volume by Japanese automobile manufactures, its primary customers, in North America. Nifco is planning to set up a new, wholly-owned subsidiary, Nifco North America Inc., in Kentucky in March 2007, for the production of industrial plastic fasteners and parts for automotive use. The new company will be capitalized at 8.5 million USD (approx. 1 billion yen) and will start its operations with approx. 150 people. Nifco North America is the Company's second facility in the United States, following Nifco America Corporation (Ohio). (From a press release on Mar. 14, 2007)

ASIA
-Thailand
Nifco Thailand Co., Ltd. invested 430 million JPY mainly in its die plant in order to improve product quality.

-Korea
Korea Industrial Fastener Corp. (KIFCO) invested 238 million JPY.

-Taiwan
Taiwan Industrial Fastener Corporation (TIFCO) invested 118 million JPY.

The Company made a capital investment of 1,564 million JPY throughout the entire Asian region in order to build an organizational framework which enables it to produce and sell high-value added products to both  Japanese and non-Japanese automakers globally.    

Newly added facilities (Composite Plastic mold business)

Name (Location)	Type of facility	Planned total investing amount (million JPY)	Construction
			Starting month	Completion month
Utsunomiya office (Kawachi gun, Tochigi, Japan)	Buildings and plants	134	Apr. 2007	Mar. 2008
	Mechanical equipment and measuring instruments	202
Sagamihara office (Sagamihara, Kanagawa, Japan)	Mechanical equipment and measuring instruments	660	Apr. 2007	Mar. 2008
Nagoya office (Toyota, Aichi, Japan)	Buildings and plants	760	Apr. 2007	Aug. 2007
	Mechanical equipment and measuring instruments	750
All the offices	Dies	2,650	-	-
	Buildings and plants	169
	Mechanical equipment and measuring instruments	283
Kyushu JT Nifco Corporation (Kumamoto, Japan)	Buildings and plants	420	Dec. 2006	Apr. 2007
	Mechanical equipment and tools	510	Apr. 2007	Mar. 2008
Nifco North America Inc. (Ohio, USA)	Buildings and plants	595	Jun. 2007	Mar. 2008
	Mechanical equipment and tools	178
Nifco Poland. sp. z o. o. (Swidnica, Poland)	Buildings and plants	407	Feb. 2006	Mar. 2007
	Mechanical equipment and tools	192