Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of change (%)	Main factors
Overall
Sales	141,646	131,637	7.6	-Sales grew in both the composite plastic molded products sector and in the beds and furniture sector.
Operating income	14,649	13,696	7.0	-The increase in sales was large enough to offset increased fixed costs such as those incurred in connection with R&D activities, quality-improvement activities, and tax reforms requiring the Company to record higher depreciation expenses.
Ordinary income	15,115	14,382	5.1	-
Current net income	9,949	9,391	5.9	-
Industrial plastic parts and components
Sales	119,116	110,688	7.6	<For domestic automotive company customers> -The Company focused on sales of interior parts such as cup holders; and exterior parts such as bumper retainers. In doing so, the Company succeeded in having greater volume of its products equipped on customers' vehicles, thus raising the value of its products. <For automotive company customers overseas> -Both sales and income grew year-on-year, thanks to Japanese automaker's increasing their production volume overseas and the Company's improving the performance of its subsidiaries in Europe, the USA, and Asia.
Operating income	16,503	14,753	11.9

Development of Subsidiaries
<Germany>
Subsidiary in Germany Established
-In June 2007, the Company established Nifco Deutschland GmbH in Germany, a subsidiary to manufacture and sell industrial plastic fasteners, dampers and molds. So far, the Company has been offering its products mainly to Japanese and US automakers operating in Europe. But the new company based in Germany will focus on developing business with European automakers. The new company is capitalized at 25,000 euros (approximately 4 million yen) which was entirely invested by Nifco. (From a press release on May 7, 2007)

Additional Investment
-On January 2008, the Company announced that it will increase the capital in Nifco Deutschland GmbH, which is a consolidated subsidiary of the Company, by 800,000 euros (approximately 130 million yen). The purpose is to strengthen Nifco Deutschland's sales structure so as to further increase its business with European automakers. (From a press release on January 30, 2008)


<India>
Business Restructuring
-In May 2007, the Company announced that it had formulated a plan to annul a joint-venture agreement regarding Tata Nifco Fasteners Private Limited, a joint-venture company in India, under which it will dissolve and liquidate the company. Tata Nifco Fasteners, which was established with the Tata Group of India on a fifty-fifty basis, became a dormant company in March 2000. Both the Company and Tata agreed to annul the contract, with the liquidation scheduled to take place around the end of December 2007. (From a press release on May 7, 2007)


<Korea and Taiwan>
Company Name Changes
-On October 1, 2007, the Company renamed its subsidiaries overseas. Korea Industrial Faster Corp. (KIFCO) was renamed Nifco Korea Inc., while Taiwan Industrial Faster Corp. (TIFCO) was renamed Nifco Taiwan Corp. Renaming its Group companies under the Nifco brand will allow the Company to improve its market presence and strengthen the Group's management worldwide. (From a press release on September 28, 2007)

Stock Acquisition
-In December 2007, the Company announced that it had acquired additional shares of stock in its subsidiaries overseas. As a result, the Company now owns 100% of the shares in  Nifco Korea Inc., which is based in South Korea; and 60% of the shares in Nifco Taiwan Corp., increasing its ownership from 55%. (From a press release on December 3, 2007)

<Japan>
Company Name Change
-On April 1, 2008, the Company renamed its domestic subsidiaries. JT Nifco Corporation was renamed Nifco Yamagata Inc. while Kyushu JT Nifco Corporation was renamed Nifco Kumamoto Inc. The two companies manufacture and sell composite plastic molded products. (From a press release on January 30, 2008)

Business Strategy

Business Strategy