Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change(%)	Factor
Sales	105,719	98,277	7.5	-Sales increased due to the volume of increased orders received for curtain airbag modules in Japan as well as to the volume of increased sales resulting from automakers' launching of new vehicles models in China.
Operating income	3,283	2,949	11.3	-Despite the increase in depreciation costs as a result of tax revisions, the Company's operating income grew, thanks especially to the sustained high level of revenue generated by the Chinese subsidiary, and the earlier than planned profit achieved by the Thai subsidiary, which was substantial enough to offset the fall in income of a North American subsidiary.
Ordinary income	2,931	3,003	(2.3)	-
Current net income	1,993	2,165	(7.9)	-

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Safety components	1,009	964	917
Resin components	849	728	688
Overall	1,859	1,692	1,605

R&D Operations
-The technology development department; the design department; and Neaton Auto Products Mfg., Inc, a North America subsidiary, conduct the Company's R&D activities . A total of 179 employees are engaged in R&D activities.


R&D facilities

Name	Location
Technical center	Fujinomiya City, Shizuoka Pref.
Technical center 1	Fujinomiya City, Shizuoka Pref.
Technical center 2	Fuji City, Shizuoka Pref.

R&D on Safety Components
Steering products
-The Company is working on developing magnesium cored bar and low specific gravity urethane to reduce vehicle weight and achieve a higher level of performance in terms of lower by introducing a floating mechanism. It is also developing higher quality products such as airbag covers with metallic separate emblem, steering wheels offering a superior sense of feel, and high-grade wood-tone decorative steering wheels.

-The Company is making efforts to reduce environmental impact by developing cleaner inflator gas and reducing the use of organic solvents in urethane, coating materials, and leather in the production process.

Passenger seat airbag modules
-The Company developed hard-material airbags which eliminated the tearing process in order to create products without any seams. In response to the demand for surface embellishments, the Company developed its proprietary NPSS (Nihon Plast Soft Surface) processing method, which is based on the urethane RIM processing method. It also worked on developing a processing method that makes products feel even softer to the touch; and enhanced it product mix of integrated panels for airbags, for which demand is growing. 

-The Company also developed a proprietary design structure for air bags, i.e., that incorporates folds, aiming to reduce the possibility of damage and injury.

Side impact airbag modules
-The Company worked on developing curtain airbags which provide long lasting protection based on sealing technology in which pressure during overturns is applied to the sewn part. The Company also developed knee airbags which protect occupants' knees. 

-In development activities engaged in manufacturing methods, the Company finished developing a machine that automatically folds curtain bags. It also improved the performance of all its airbags mounted on vehicles, as well as streamlined the manufacturing processes used to make these airbags. 


R&D on Resin Components
Exterior resin products
-The Company developed fender protectors that are made through super-fine injection molding as a means to further advance developments in injection-molding larger parts. It also developed a flexible rubber integrated cover cowl top that is made through a process that involves two-color injection molding based on a mold designed incorporating a slide. This raised the level of product quality and eliminated one process in the production process.  

Interior resin products
-The Company improved its products' features by designing a louver with a mechanism that enables the louver to shut completely. It also developed a centralized mechanism for ventilators, which diffuses the switching; a part that controls air; and also a ventilator that was made much thinner than conventional ones. It is also developing technology to streamline production, with one example being an automatic assembly bench.

-The Company responded to the demand for low-cost, high-quality resign panels by developing various decorating technologies. These included a processing method that gives the surface of seat cushions a softer touch, and a processing method that can produce upholstered pillars without the need for a bonding process.  It also developed glow boxes, consoles, and other products that incorporate highly functional designs while integrating multiple components. This is a feature which is being required more and more.


Licensing of technology (as of March 2008)

Name	Country	Contract	Period
Neaton Auto Products Mfg., Inc.	U.S.A.	Designing, testing, production, and inspection of automotive parts	Jan, 2008 - Dec, 2008

Business alliance (as of March 2008)

Name	Country	Contract	Period
Morrar Group KG	Germany	Development, design, and production of automotive interior and exterior resin parts	Jan. 2008 -  Dec. 2008
Calsonic Kansei	Japan	Development, design, and production of automotive interior and exterior resin parts	Sep. 2007 - Sep. 2008

Investment Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Safety components	4,529	3,193	2,825
Resin components	3,740	3,871	2,445
Others	10	24	9
Overall	8,280	7,088	5,281

-Capital investments were made mainly to increase production capacity in response to the new orders that the Company received, as well as to make molds in response to automakers' making model changes in fiscal year 2007 that ended March 31, 2008.

-In the Safety Components Division, the Company made a capital investment of 4,529 billion JPY in order to respond to automakers' making model changes and to win new orders.

-In the Resin Components Division, the Company made a capital investment of 3,740 billion JPY in molds to respond to automakers' making model changes as well as to new orders received at the North American subsidiary.


Major new facilities

Company	Plant	Details	Planned amount of  investment (in millions of JPY)	Start	End
Fuji Plant - First	Shizuoka, Japan	Production facilities for steering wheels and airbags	523	Apr, 2008	Mar, 2009
Fuji Plant - Second	Shizuoka, Japan	Production facilities for airbags	308	Apr, 2008	Mar, 2009
Isezaki Plant	Gunma, Japan	Production facilities for resin components	985	Apr, 2008	Mar, 2009
Kyushu Plant	Fukuoka, Japan	Production facilities for steering wheels, airbags and resin components	168	Apr, 2008	Mar, 2009
Technical center	Shizuoka, Japan	Test and research facility for steering wheels, airbags and resin components	337	Apr, 2008	Mar, 2009
Zhongshan Plast Industry Co., Ltd.	Guangdong, China	Production facilities for steering wheels and resin components	1,276	Jan, 2008	Dec, 2008
Neaton Auto Products Mfg., Inc.	Ohio, U.S.A.	Production facilities for steering wheels and resin components	752	Jan, 2008	Dec, 2008