FY2007 Half year Consolidated Financial Results(April 1, 2006 through September 30, 2006)
October 31, 2006
Company NameAISIN SEIKI Co., Ltd.

The Tokyo, Osaka and Nagoya
Stock Exchanges (1st division)
Aichi, JAPAN

Listed on

Code Number
7259(URL http://www.aisin.com)

Location

Representative
Reference person in charge

Yasuhito Yamauchi, President
Masaaki Yasui,
General Manager, Finance & Accounting Dept.
Date of the meeting of the board of directors for financial results
Name of parent company
Toyota Motor Corporation (Code number: 7203)
US GAAPNot applied

TEL 81 - 566 - 24 - 8265
October 31, 2006
Parent company s shareholding 23.2%

１. Results of the Half year of FY2007（Apr. 1, 2006 through Sep. 30, 2006）(1)Consolidated Operating Results(Amounts less than million yen are rounded down)
Net Sales
Operating Income
Ordinary Income
FY2007 Half year
FY2006 Half year
FY2006

Million Yen％

Million Yen％

Million Yen％

1,120,307
994,240
2,120,588

12.7
15.0

52,171
51,950118,096

0.4
23.4

54,69555,383125,096( 1.2)
25.1

Net Income
FY2007 Half year
FY2006 Half year
FY2006

Fully Diluted Earnings
Per Share

Earnings Per Share

Million Yen

％

Yen

Yen

24,68225,94461,095( 4.9)
38.7

85.99
90.60
209.1585.86
90.54
208.86Note1 : Equity in earnings of affiliates
FY2007 Half year : 3,059 million yen, FY2006 Half year : 2,317 million yen, FY2006 : 5,542 million yen
Note2 : Average number of shares issued and outstanding each period after adjustment (Consolidated)
FY2007 Half year : 287,037,132 shares, FY2006 Half year : 286,353,836 shares, FY2006 : 286,628,374 shares
Note3 : Change in the accounting policy : none
Note4 : Percentages for net sales, operating income, ordinary income and net income indicate changes from the same period of theprevious year.

(2)Consolidated Financial Position
Total Assets
FY2007 Half year
FY2006 Half year
FY2006

Total Net Assets

Shareholders' Equity Ratio Shareholders' Equity Per Share

Million Yen

Million Yen％

1,849,181
1,618,468
1,853,458

875,854
606,616 ※678,881 ※37.6
37.5 ※
36.6 ※

Yen

2,417.14
2,114.67 ※2,361.66 ※Note1 : Number of shares issued as of the respective balance sheet date（Consolidated）
FY2007 Half year : 287,317,530 shares, FY2006 Half year : 286,861,793 shares, FY2006 : 286,973,466 shares
Note2 : The points marked ※ are based on previous accounting standards.

(3)Situation of Consolidated Cash Flows
From operating
activities

From investing
activities

From financing
activities

Million Yen

Million Yen

Cash and cash equivalents
at Half year end
or the end of the year
Million Yen

134,725 )89,316 )215,495 )

32,524
12,52036,834

97,311
102,383
128,212

Million Yen

FY2007 Half year
FY2006 Half year
FY2006

71,281
60,778
185,715((((4)Consolidation Scope
Number of consolidated subsidiaries
Number of unconsolidated subsidiaries
Affiliates accounted for under equity method: 136: none14:(5)Changes in Consolidation Scope and Application of the equity method
3Consolidated subsidiaries
Added:
1 (From Affiliates accounted for under the equity method)
Added:
Excluded : none1
Affiliates accounted for
Added:
1 (To Consolidated subsidiaries)
under the equity method
Excluded :２. Consolidated forecast for FY2007 (Apr. 1, 2006 through Mar. 31, 2007)
Net Sales
Operating Income
Ordinary Income
FY2007Net Income

Million Yen

Million Yen

Million Yen

Million Yen

2,320,000

118,000

121,000

58,000

Reference : Forecast of earnings per share for FY2007

201.87yen※ Forecasts above are based on AISIN's plans and expectations. These are not guarantees of future performance of inclusion of
known and unknown risks, uncertainties and other factors that may cause actual results, performance, achievements or financial
position to be materially different from the forecasts expressed or implied in this report.

Overview of Associated Companies
Aisin Seiki and its subsidiaries (collectively, AISIN) comprises 150 subsidiaries and affiliates, including 99 production companies, 13
sales companies and 38 other companies, with its operations entailing manufacturing and sales related to the core Automotive Parts andSystems Business and the Life & Energy Related and Other Business.
The associated companies positions in the businesses and relation to the business segments are shown below,（Automotive Related Business）
The products of AISIN are various; as main products, for Drivetrain Related Products, Aisin AW Co., Ltd. produces and sells automatictransmissions, and Aisin AI Co., Ltd. produces and sells manual transmissions. Also, for Information Related Products, Aisin AW Co., Ltd.
produces and sells car navigation systems. For Brake & Chassis Related and Body Related Products, Aisin Seiki Co., Ltd., Aisin Takaoka
Co., Ltd., and Aisin Chemical Co., Ltd. share parts with each other in production. And ADVICS Co., Ltd. develops and sells brake
related components. Additionally, in Overseas, business is conducted in North America, Europe, Asia and other regions; for main
production manufacturing companies, there are Aisin U.S.A. Mfg., Inc. and Aisin Automotive Casting, LLC.; and for main sales
companies, there are Aisin World Corp. of America and Aisin Europe S.A.
（Life & Energy Related Business）
Aisin Seiki Co., Ltd. produces and sells shower-toilet seats, beds, and gas engine driven heat-pump air conditioners; and Zhejiang Aisin
Elite Machinery & Electric Co., Ltd. produces sewing machines in China. Also, there are Aisin World Corp. of America and Aisin Europe
S.A. for overseas sales.
（Other Business）
There are businesses required for smooth operation of AISIN: Aisin Development Co., Ltd., for construction business, Konan Kogyo
Co., Ltd. for sales of oil, and Aisin Cosmos R&D Co., Ltd. and IMRA America, Inc. for funded research and development.

Customers【Japanese manufacturing companies】
Aisin Takaoka Co., Ltd.,
Aisin Chemical Co., Ltd.,【Japanese development
and sales companies】
ADVICS Co., Ltd.

【Overseas sales companies】
Aisin World Corp. of America,
ADVICS North America, Inc.,
Aisin Europe S.A., etc.

Aisin AW Co., Ltd., Aisin Keikinzoku Co., Ltd.,
Aisin Kiko Co., Ltd., Aisin AI Co., Ltd.,【Overseas manufacturing companies】

Aisin Sin ei Co., Ltd.,

Aisin U.S.A. Mfg., Inc., Aisin Automotive Casting, LLC.,

Aisin AW Industries Co., Ltd.,

Aisin Drivetrain, Inc., AW North Carolina, Inc.,

Hosei Brake Industry Co., Ltd., etc.

ADVICS Manufacturing Ohio, Inc.,
Aisin Europe Manufacturing (UK) Ltd.,
Elite Sewing Machine Mfg. Co., Ltd.,
Tangshan Aisin Gear Co., Ltd.,【Japanese other companies】

Zhejiang Aisin Elite Machinery & Electric Co., Ltd., etc.

Aisin Living Planner Co., Ltd.,
Aisin Cosmos R&D Co., Ltd.,【Overseas other companies】

Aisin Development Co., Ltd.,

Aisin Holdings of America, Inc.,

Konan Kogyo Co., Ltd., etc.

IMRA America, Inc.,IMRA Europe S.A.S., etc.

Aisin Seiki Co., Ltd.
Life & Energy Related Business

Automotive Related Business− １ −Management Policy
1. Basic Management Policy
AISIN sets its Corporate Principles as Quality First.
AISIN aims to offer products
and services that customers would satisfy by the following principles: enhanced value
creation, continuous global growth, harmony with society and nature, and individual
creativity and initiative. Additionally, through these policies, AISIN enhances its corporate
value and contributes to stakeholders such as shareholders, regional societies, business
partners, and employees.

2. Basic Policy on the Distribution of Profits
Based on its policy of maintaining stable dividends, AISIN returns profits to shareholders
taking into consideration a comprehensive range of factors that include the Group sbusiness results and its payout ratio.
As earning retention, in order to secure shareholder s profit, AISIN is planning topromote its business in Japan and overseas and to invest to strengthen company s growth.

3. Medium-to Long-Term Management Strategies and Countermeasures
AISIN utilizes its technology and various types of products to grow in Automotive
Related Business and to create new businesses in Life & Energy Related Business.
Therefore, AISIN aims to increase the market share in Japan and overseas, inAutomotive Related Business concerning mainly on Drivetrain Related, Brake & ChassisRelated, Body Related, and Engine Related. In tandem, AISIN focuses on developing
System Products concerned with environment, safety and comfort, etc. Furthermore, AISIN
proceeds globalization of business by expanding production in North America, China, Asia,
Australia and Europe. Also, concerning Life & Energy Related Business, AISIN provides
services and develops new products that meet people s demand on living.
AISIN sets its management goal to 10% of ROE (Return On Equity) managing to becompetitive in the market and to improve efficiency of capital.

− ２ −4. Matters concerning the Parent Company and other entities(1) Trade Name and other items related to the Parent Company and other entities(As of Sep. 30, 2006)

Percentage ofvoting rights
held by parent
company andothers (％)

Parent company
and others

Attributes

Toyota Motor
Corporation

The relevant
other company
when a listedcompany isan affiliatedcompany of thisother company

２３.１６（０.１２）

Stock exchanges on which sharecertificates issued by the parent
company are listed
Tokyo stock exchange
Osaka securities exchange
Nagoya stock exchange
Sapporo securities exchange
Fukuoka stock exchange
New York stock exchange
London stock exchange

Notes: The figure shown inside the parenthesis indicates the percentage of indirectly held voting rights
among all voting rights held by the parent company and others.

(2) Matters concerning Transactions with the Parent Company and other entities
FY2007 Half year （Apr. 2006 through Sep. 2006）
Details of affiliation
Concurrent
post ofBusiness
directors
affiliation

Transaction
details(The number ofpeople)Concurrent
posts: 1
Employmenttransfers: 3

Sale ofproducts of
Aisin Seiki
Co., Ltd.

Sale of
Auto Parts
and others
Purchase ofmaterial of
Auto Parts

Transaction
amountCategory(Million Yen)

Half year-end
balance(Million Yen)

Trade
159,060 Accounts
Receivable
Trade9,869 Accounts
Payable42,535

Notes 1 : Aisin Seiki Co., Ltd. decides terms and conditions of transaction same as general terms andconditions through price negotiation in every term after showing our hope price based on
consideration for market price and total cost.
Notes 2 : There are no matters in details of affiliation and transaction details mentioned above thatwould restrict the Company s independence.
Notes 3 : There are no monetary loan debit and credit relationships, guarantee or warranty relationships.

− ３ −

3,592

Operating Results and Financial Position
1．Operating Results(1) Achievements for the Half year Ended Sep. 30, 2006
AISIN has worked on enhancing its business in the global market; AISIN has
developed and sold new products corresponding to social change and meetingcustomer s demands.
Sales within the Auto Parts segment increased 13.3% (¥1,074,673 million) compared withthe same half year of the previous fiscal year (¥948,535 million) due to clients production
expansions, in addition to aggressive sales activities for automatic transmissions, manualtransmissions, car navigation systems, and power sliding doors. Sales of the Life & Energy
related products and other business decreased 0.2% (¥45,634 million) compared with thesame half year of the previous fiscal year (¥45,705 million).
As a result, total sales increased 12.7% (¥1,120,307 million) compared to the same halfyear of the last fiscal year (¥994,240 million).
Despite the favorable activities to streamline and raise efficiency in all areas ofoperations through cost reductions and other measures, great impacts from increasing
depreciation and amortization expenses and surging material costs such as aluminum
resulted in a 0.4% increase in operating income from ¥51,950 million to ¥52,171 million.
Ordinary income decreased 1.2% to ¥54,695 million. (Previous: ¥55,383 million) Net income
decreased 4.9% to ¥24,682 million. (Previous: ¥25,944 million)
Interim dividends per share are 16 yen provided for FY2007 Half year. For FY2007 in
total, AISIN is planning to provide the dividend of 32 yen, same as FY2006.
(2) Outlook for FY2007
Concerning future business environments, there are still uncertainties such as soaring
material prices of crude oil, steel, and aluminum, as well as intensifying price competitions.
Amid this environment, together with adequately addressing immediate challenges, theAISIN Group will combine its collective strengths and proactively undertake initiatives tostrengthen global competitiveness and its corporate constitution along with aiming tobecome a preeminent global brand. To that end, we will accelerate the development ofsystem products that create new markets in fields related to the environment,
safety,comfort and convenience. Concurrently, we will strive to improve mono-zukuri(manufacturing expertise in value-added products) by cultivating human resources anddeveloping new production methods and will actively propose products that ensure thesatisfaction of our customers. Additionally, we will build a global supply network by further
upgrading our production, development and sales structures in Japan as well as in North
America, Australia, Asia and Europe, as we establish a structure capable of responding
quickly to customer needs in regions worldwide.

− ４ −As a company trusted by society, we aim to be a top environmental player bysteadily promoting our five-year environmental preservation plan that is based on our
newly formed Fourth Environmental Action Plan. In tandem, we are undertaking
corporate citizenship activities with emphasis on development of local communities,
preservation of the natural environment and the nurturing of young people, while
continually making earnest efforts to undertake highly fair and transparent businessactivities and develop into a company that attains growth and development in harmony
with society.
With regard to the forecast in FY2007, net sales, operating income, ordinary income, andnet income would be revised to ¥2,320,000 million, ¥118,000 million, ¥121,000 million, and¥58,000 million respectively. (Estimated exchange rate for dollar in latter half year:
1US$=¥115)

2．Financial Position
For FY2007 Half year, cash flows provided by operating activities amounted to¥71,281 million, cash flow from investing activities was ¥134,725 million, cash flow
provided by financing activities amounted to ¥32,524 million and cash flow provided bytranslation adjustment of cash and cash equivalents totaled ¥17 million. As a result,cash and cash equivalents as of Sep. 30, 2006 stood at ¥97,311 million, a decrease of¥30,901 million, or 24.1%, compared with ¥128,212 million as of Mar. 31, 2006.
(Cash Flows from Operating Activities)
Net cash provided by operating activities increased ¥10,503 million, or 17.3%,
from ¥60,778 million to ¥71,281 million. The chief factor for this rise in cash was anincrease of ¥12,730 million in depreciation and amortization, although income before
income taxes and minority interest resulted in a decrease in cash of ¥688 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities rose ¥45,409 million, or 50.8%, from ¥89,316
million to ¥134,725 million. The chief reason was an increase in cash of ¥24,891
million from ¥97,622 million to ¥122,513 million in payments for purchase ofproperty, plant and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities rose ¥20,004 million from ¥12,520 million
to ¥32,524 million. The key factor was an increase of ¥33,462 million in commercial
paper and short-term borrowings.

− ５ −3．Risk Information
The following risks can potentially impact AISIN s performance and financial
position.
Any forward-looking statements mentioned herein reflect estimates as of Oct. 31,
2006.
(1) Economic Trends
Within revenues from AISIN s worldwide operations, demand for mainstay automobile
related products is vulnerable to economic conditions in the countries and regions where
AISIN products are sold. Consequently, economic recessions in such crucial markets asJapan, North America, Europe and Asia as well as subsequent contraction in demand havethe potential to negatively impact AISIN s performance and financial position.
AISIN s operations could also be indirectly vulnerable due to economic conditions inregions where competitors manufacture products. For example, in cases where competitors
employ cheaper labor in the region, this may have an adverse effect on AISIN s sales of thesame types of products since competitors can provide competitively priced products.
Moreover, if the local currency in which AISIN produces components and raw materials
depreciates, manufacturing costs may decline for both AISIN and other manufacturers. This
may result in intensified export and price competition, and subsequently, may have anegative impact on AISIN s performance and financial position.
(2) Supply of Raw Materials and Components
AISIN s products are heavily dependent on raw materials and components provided
by multiple suppliers outside the AISIN Group. While these external suppliers are
obligated to provide stable services through basic contracts, they cannot guarantee
supply in the event of shortages due to rapidly rising prices from market changes,
supply crunches or unforeseen mishaps in their operations. Such an event has thepotential to drive up prices for AISIN s products and halt production, andsubsequently, may have a negative impact on AISIN s performance and financial
position.

− ６ −(3) Principal Customers
AISIN chiefly produces and sells Automotive Parts and Life & Energy related
products, with its mainstay Automotive Parts and Systems Business mostly targeting
automobile manufacturers in and outside Japan. Among these customers, AISIN has
the highest level of dependence on Toyota Motor Corporation (TMC) and the Toyota
Group, with sales totaling ¥741,765 million and representing 66.2% of AISIN s net
sales in FY2007 Half year. For that reason, changes in sales volume within TMC andthe Toyota Group have the potential to negatively impact AISIN s performance andfinancial position. As of Sep. 30, 2006, the portion of AISIN s voting shares held by
TMC directly was 23.0%, and indirectly was 0.1%.
(4) Exchange Rate Fluctuations
AISIN has worked to bolster its sales in the Japanese market and aggressively
pursue the cultivation of overseas markets chiefly in North America, Europe andAsia, to the extent that the ratio of overseas net sales to total net sales was 36.5%
in FY2007 Half year.
Accounting items listed in local currency rates, including sales, expenses and assets in
respective overseas countries, are converted into yen when making the consolidated
financial statements. Accordingly, there is a possibility that the value of accounting items
may be negatively impacted after translation even when there are no fluctuations in local
currencies. The strengthening of the yen against other currencies (especially against the
U.S. dollar and the euro, which account for a significant portion of AISIN s sales) may
negatively impact AISIN s performance and financial position.
Such a strengthening of the yen against other currencies in business operations
that manufacture and export from Japan could relatively reduce AISIN s pricecompetitiveness on a global basis and potentially have a negative impact on AISIN sperformance and financial position. AISIN is working to minimize the negative impact
of fluctuations among various currencies, including the U.S. dollar, the euro and theyen, through currency hedge transactions. However, exchange rate fluctuations may
have the potential to negatively impact AISIN s performance and financial position.

− ７ −(5) Business Inroads in Overseas Markets
AISIN has subsidiaries and affiliates in such varying areas as North America,
Europe and Asia. Expanding businesses in overseas markets entails the risks listed
below, and may have the potential to negatively impact AISIN s performance andfinancial position when they occur.
① Unanticipated laws and regulations and changes to the tax system unfavorable to business② Underdeveloped social overhead capital (infrastructure)③ Occurrences of unfavorable governmental issues or economic conditions④ Difficulties in hiring and retaining staff⑤ Social upheavals due to terrorism, war and other factors(6) Product Development
AISIN works to develop new products to provide added value and contribute to theenrichment of society. While AISIN aims to continue developing original and attractive
products, the following are some of the risks entailed in the often complex and uncertain
process involving the development and sales of cutting-edge products. The inability to
sufficiently anticipate changes in respective industries and markets as well as develop andrelease attractive new products in a timely manner due to the following risks could hamper
future growth and profitability and have a negative impact on AISIN s performance andfinancial position.
① There is no guarantee that the necessary funds and resources for investment in new
products and technologies will be sufficiently available.
② There is no guarantee that long-term and substantial investment will produce successful
new products and technologies.
③ There is no guarantee that AISIN will accurately predict which new products andtechnologies will gain the support of the market or succeed in marketing these products.
④ There is no guarantee that new products and technologies will be protected as
intellectual property.
⑤ Rapid advances in technology and changes in market needs may make AISIN s products
obsolete.
⑥ Delays in commercialization of technologies under development may not keep pace withtrends in market demand.

− ８ −(7) Product Defects
AISIN is fully committed to producing high-quality, attractive products thatmeet customer needs based on the concept of Quality First. However, AISIN
cannot guarantee that there will be no defects or that recalls will not be made in
the future. Moreover, while AISIN is insured for product liability indemnity, there
is no guarantee that this policy will fully cover the final indemnities. Productdefects that lead to widespread recalls and product liability indemnities could
produce large cost burdens and downgrade the valuation of AISIN. This would
subsequently hamper sales and could negatively impact AISIN s performance andfinancial position.
(8) Effects of Disaster and Power Blackouts
AISIN conducts regular disaster prevention and equipment checks to minimize theadverse effects of a halt in production line operations. However, there is no guaranteethat AISIN can fully prevent or lessen the effects of a disaster, power blackout orother such events that may cause discontinuation of operations at a production facility.
For example, the majority of AISIN s domestic factories are located in the Chubu areaof Japan. Consequently, a large-scale earthquake in the Chubu area or other events
that halt operations could negatively impact AISIN s performance and financial
position.

− ９ −Consolidated Net Sales by Item
Category

FY2007 Half year
(Apr. 2006 throughSep. 2006)
AmountPercentage

FY2006 Half year
(Apr. 2005 throughSep. 2005)
AmountPercentage%

Increase Variation(Decrease)
ratio（Million Yen）
FY2006(Apr. 2005 throughMar. 2006)
Amount%%Percentage%

Engine Related

105,644

9.4

93,3049.4

12,34013.2

197,398

9.3

Drivetrain Related

470,88242.0

423,904

42.6

46,97811.1

901,644

42.5

Brake & Chassis
Related

225,575

20.2

199,100

20.0

26,47513.3

425,181

20.1

Body Related

209,723

18.7

172,171

17.3

37,552

21.8

379,549

17.9

Information Related

62,848

5.6

60,053

6.1

2,795

4.7

123,231

5.8

Sub Total

1,074,673

95.9

948,535

95.4

126,138

13.3

2,027,005

95.6

Life & Energy Related

24,723

2.2

26,585

2.7

Others

20,911

1.9

19,119Grand Total

1,120,307

100.0

994,240

A
u
t
o
m
o
t
i
v
e
R
e
l
a
t
e
d

(

1,862 ) (7.0 )52,988

2.5

1.9

1,792

9.4

40,5951.9

100.0

126,06712.7

2,120,588

100.0

Note : Sales of Others includes Construction and Engineering Works Business” and Oil Sales Business,”and so on.

− １０ −

Consolidated Statements of Income
FY2007 Half year FY2006 Half year
(Apr. 2006 through (Apr. 2005 throughSep. 2006)
Sep. 2005)

Increase(Decrease)（Million Yen）
FY2006(Apr. 2005 throughMar. 2006)

Net Sales

1,120,307

994,240

126,067

2,120,588

Cost of Sales

981,747

858,923

122,824

1,829,682

Gross Profit

138,560

135,316

3,244

290,906

Selling, General &Administrative Expenses

86,38983,366

3,023

172,809

Operating Income

52,171

51,950221

118,096

Non-Operating Income

10,087

8,996

1,091

20,341

Interest & Dividend Income

2,408

1,903

505

3,926

Investment Profit on Equity
Method

3,059

2,317

742

5,542

Other Income

4,619

4,776

157 )

10,873

Non-Operating Expenses

7,563

5,562

2,001

13,341

Interest Expense

1,434

1,150

284

2,581

Other Expenses

6,129

4,412

1,717

10,760Ordinary Income

54,69555,383(688 )

125,096

Income Before Income Taxes
and Minority Interests

54,69555,383(688 )

125,096

Income Taxes-current

13,901

17,470(3,569 )

47,800

Income Taxes-deferred

5,241

2,119

3,122

Minority Interests in Net Income

10,869

9,848

1,021

23,849Net Income

24,68225,944

1,262 )

61,095Note : Depreciation and Amortization

70,41957,68912,730123,033

−

１１

−

(

(

(

7,649 )

Consolidated Balance Sheets（Million Yen）

FY2007 Haｌf year

FY2006

Increase(Decrease)(As of Sep. 30, 2006) (As of Mar. 31, 2006)

FY2006 Half year
(As of Sep. 30, 2005)〔 Assets 〕
Current Assets

676,149

694,030(

17,881 )617,743

Cash and Cash Equivalents

94,08995,443(

1,354 )

78,405Trade Notes & Accounts
Receivable

330,184

336,864(

6,680 )

307,372

Marketable Securities

16,02532,434(

16,409 )31,134Inventories

158,425

148,782

9,643

136,457

Deferred Tax Assets

37,65442,842

5,188 )

34,307

Others40,51439,4381,076

30,977

1,775 )

1,030

1,173,032

1,159,428

13,6041,000,725

Property, Plant & Equipment

785,140

777,7637,377

679,594

Buildings & Structures

218,964

211,914

7,050

193,578

Machinery, Equipment &Vehicles394,899382,263

12,636332,613

Tools, Furniture & Fixtures

39,21537,783

1,432

33,258Land

85,63785,320317

84,817

Construction in Progress

46,42360,481

14,058 )35,325

12,714

10,249

2,465

9,109

Consolidation Adjustments

2,190

―

2,190

―

Software

8,142

7,911

231

6,837

Others

2,382

2,338

44

2,272

Investments & Other Assets

375,176

371,415

3,761

312,021

Investments in Securities

321,397319,716

1,681

262,532

Long-term Loans

4,827

4,314

513

4,498

Deferred Tax Assets

22,09921,450649

21,621Others

28,06826,3881,680

25,056

Less: Allowance for Doubtful
Accounts(

Fixed Assets

Intangible Fixed Assets

Less: Allowance for Doubtful
Accounts
Total Assets
Note: 1. Accumulated depreciation
2. Guarantees on Liability

(

745 )

1,216 )

(

(

(

(

761 )

1,849,181

1,853,458(

4,277 )

1,618,468

1,289,836
1,979

1,244,250
1,994(

45,586
15 )

1,195,317
1,992

１２

−

(

912 )

455 )

−

(

(

1,687 )

（Million Yen）

FY2007 Haｌf year

FY2006

Increase(Decrease)(As of Sep. 30, 2006) (As of Mar. 31, 2006)〔 Liabilities 〕
Current Liabilities
Trade Notes& Accounts Payable
Commercial Paper& Short-term Borrowings
Current Portion of Bonds
PayableAmount in Arrears
Accrued Expenses
Accrued Income Taxes
Deposits Received from
Employees
Accrued Warranty Cost
OthersLong-term Liabilities
Bonds Payable
Long-term Debt
Deferred Tax Liabilities
Allowance for Employees
Retirement Benefits
Long-term Accrued
Expenses
Consolidation Adjustments
OthersTotal Liabilities〔 Net Assets 〕
Shareholders' Equity
Common Stock
Capital Surplus
Retained Earnings
Less:Treasury Stock, at Cost
Evaluation andConversion Difference
Net Unrealized Gain on
Available-for-sale Securities
Profit & Loss of Deferral
Hedge Accounting
Foreign Currency
Translation Adjustments
Subscription Warrant
Minority Interests
Total Net Assets
Total Liabilities
and Net Assets((

FY2006 Half year
(As of Sep. 30, 2005)

577,675

639,100(

61,425 )544,188317,242

327,176(

9,934 )

286,105

55,04746,887

8,160

48,873

150

150

―

―

32,581
113,465
12,35370,516
117,499
31,78337,935 )4,034 )
19,430 )48,378106,177
16,316

17,163

16,781382

16,936

14,891
14,77914,461
13,843430
936

13,475
7,924

395,652
35,000208,558
62,596363,294
35,500176,81163,60932,358500 )
31,747
1,013 )

312,433
25,650158,343
43,83085,51684,750766

82,185

1,864

2,542

(

678 )

2,366

1,181
934
973,32780―
1,002,394

(

1,101
934
29,067 )41
16856,622570,82945,04963,813
463,359
1,393 )

551,732
45,04963,262445,241
1,820 )

19,097―551
18,118427

520,160
45,04963,245
413,784
1,919 )

(

(
(
(

(
(

(

123,657

127,148(

3,491 )

86,455122,099

123,720(

1,621 )

92,288

559 )

―

(

559 )

―

2,118

3,427

(

1,309 )

41
181,324
875,854―
172,183
851,064

1,849,181

1,853,458

−

１３

−

(

(

5,832 )

41
9,141
24,790―155,229
761,846

4,277 )

1,618,468

Consolidated Statements of Changes in Shareholders' Equity（Million Yen）

FY2007 Haｌf year （Apr. 2006 through Sep. 2006）
Shareholders' Equity

Balance as of Mar. 31, 2006

Evaluation and Conversion Difference

CommonStockCapitalSurplusRetained
Earnings

Less:
Treasury
Stock,
at Cost45,04963,262445,241( 1,820 ) 551,732

Net Unrealized Profit & Loss
Foreign
Gain onof Deferral
Currency
Available-forHedge
Translation
sale Securities Accounting Adjustments

Sub Total

123,720―Subscription
Warrant
Sub Total

Minority
Interests

Total
Net
Assets127,148

172,183

851,064

3,427―

Increase(Decrease)
in FY2007 Half year((

Dividends Paid
Bonus of Directors and Corporate Auditors
Net Income

5,401 )
1,162 )
24,682((5,401 )
1,162 )
24,682103 ) (
103 )
530
1,081

(

Purchase of Treasury Stock551

Disposal of Treasury Stock
Net Change of items other thanShareholders' Equity
Total Changes in the Term
Balance as of Sep. 30, 2006((

5,401 )
1,162 )
24,682
(
103 )
1,081
(

―
45,049551
63,813

18,118463,359427
19,097( 1,393 ) 570,829

Type of shares

Number as of Mar. 31, 2006

Increase

Common stock

7,701,168

1,621 ) (( 1,621 ) (122,099 (559 ) ( 1,309 ) (3,491 )

41

9,141

5,692

559 ) ( 1,309 ) ( 3,491 )
559 )
2,118
123,657

41
41

9,141
181,324

24,790875,854

Note : Type and number of treasury stock

Reason for changes（Shares）
Decrease
174,471

Number as of Sep. 30, 2006

518,535（Increase）

Share belong to minority when purchasing from consolidated subsidiaries 151,040 shares
Change in proportionate interest
20,142
Request for purchase of less-than-one-unit shares
3,289（Decrease）

Exercise of stock option
Request for additional purchase of less-than-one-unit shares

7,357,104

518,200
335

Reference: Consolidated Statements of Changes in Shareholders' Equity of FY2006 Half year and FY2006
which are based on the same accounting standards as FY2007 Half year
FY2006 Haｌf year （Apr. 2005 through Sep. 2005）（Million Yen）
Shareholders' Equity

Balance as of Mar. 31, 2005

Evaluation and Conversion Difference

CommonStockCapitalSurplusRetained
Earnings

Less:
Treasury
Stock,
at Cost45,04963,061

392,836( 3,116 ) 497,829

Sub Total

Net Unrealized Profit & Loss
Foreign
Gain onof Deferral
Currency
Available-forHedge
Translation
sale Securities Accounting Adjustments

66,597―( 11,674 )Sub Total

Subscription
Warrant

Minority
Interests

Total
Net
Assets54,922―

145,693

698,445

Increase(Decrease)
in FY2006 Half year((

Dividends Paid
Bonus of Directors and Corporate Auditors

3,968 )
1,027 )
25,944

3,968 )
1,027 )
25,944(11 ) (
11 )
1,208
1,393

20,948413,784

1,197
22,331( 1,919 ) 520,160

Net Income
Purchase of Treasury Stock184

Disposal of Treasury Stock
Net Change of items other thanShareholders' Equity
Total Changes in the Term
Balance as of Sep. 30, 2005―
45,049184
63,245((((

3,968 )
1,027 )
25,944(
11 )
1,393
25,691―

5,842

31,533―

9,536

41,06925,691
92,288――5,842( 5,832 )

31,53386,455――

9,536
155,229

63,401
761,846

FY2006 （Apr. 2005 through Mar. 2006）（Million Yen）
Shareholders' Equity

Balance as of Mar. 31, 2005

Evaluation and Conversion Difference

CommonStockCapitalSurplusRetained
Earnings

Less:
Treasury
Stock,
at Cost45,04963,061

392,836( 3,116 ) 497,829

Sub Total

Net Unrealized Profit & Loss
Foreign
Gain onof Deferral
Currency
Available-forHedge
Translation
sale Securities Accounting Adjustments

66,597―( 11,674 )Sub Total

Subscription
Warrant

Minority
Interests

Total
Net
Assets54,922―

145,693

698,445

Increase(Decrease)
in FY2006((

Dividends Paid
Bonus of Directors and Corporate Auditors
Net Income

7,663 )
1,027 )
61,095Purchase of Treasury Stock201

Disposal of Treasury Stock
Net Change of items other thanShareholders' Equity
Total Changes in the Term
Balance as of Mar. 31, 2006―
45,049201
63,262

52,405445,241((

7,663 )
1,027 )
61,095(23 ) (
23 )
1,319
1,521

1,296
53,903( 1,820 ) 551,732

−

１４

−

(
(

7,663 )
1,027 )
61,095(23 )
1,521
57,123―

15,101

72,226―

26,49098,716

57,123
123,720――

15,101
3,427

72,226
127,148――

26,490172,183

152,619851,064

Consolidated Statements of Cash FlowsFY2007 Half year

FY2006 Half year

Increase(Decrease)(Apr. 2006 through (Apr. 2005 throughSep. 2006)
Sep. 2005)（Million Yen）
FY2006(Apr. 2005 throughMar. 2006)

Ⅰ Cash flows from operating activities
Income before income taxes and minority interest

Depreciation and amortization
Increase(Decrease) in allowance for retirement benefits

Interest and dividend income
Interest expenses
Return on investment by equity method((

Loss on disposal of property, plant and equipment(Increase)Decrease in trade notes and accounts receivable(Increase)Decrease in inventories(((

Increase(Decrease) in trade notes and accounts payable

OthersSubtotalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by operating activities((

54,69570,419766
2,408 )
1,434
3,059 )
1,667
7,854
8,448 )
9,739 )
9,123 )
104,056
3,373
958 )
35,189 )71,281

55,383
57,689220
1,903 )
1,150
2,317 )
1,762
18,590 )13,013 )21,442
18,932 )82,892
2,576
1,170 )
23,520 )60,778(8,460
97,622 )3,685
4,413 )
―

(
(

(

(
(

2,128
482
635 )
411
1,812 )
89,316 )(18,030 )

(
(
(
(
(

(
(

(
(
(

(

(

688 )
12,730
546
505 )
284
742 )
95 )
26,444
4,565
31,181 )9,809
21,164797
212
11,669 )10,503

(
(
(
(
(

(
(

125,096
123,033
2,785
3,926 )
2,581
5,542 )
3,716
46,720 )23,493 )59,047
13,694 )222,885
4,747
2,498 )
39,419 )
185,715

Ⅱ Cash flows from investing activities(((Increase)Decrease in time deposit and short‑term investments

Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment((

Payments for purchase of investments in securities
Payments for acquisition of subsidiaries' stock
resulting in change in scope of consolidation

Proceeds of sales of investments in securities
Proceeds of redemption at maturity of investments in securities

Increase in loans
Decrease in loans
OthersNet cash used in investing activities(((

Ⅲ Cash flows from financing activities
Increase(Decrease) in commercial paper andshort‑
term borrowings
Proceeds from long‑term debt
Repayments of long‑term debt
Proceeds from issuance of bonds payable
Repayments of bonds payable
Contributions from minority shareholders
Cash dividends paid

6,589 )
122,513 )5,563
8,827 )
508 )
54
2,219
2,208 )
459
2,375 )
134,725 )
15,432(((((

Cash dividends paid for minority shareholders

Payments for purchase of treasury stock
Proceeds for disposal of treasury stock
Net cash provided by (used in) financing activities

36,67012,250 )―500 )525,397 )
2,727 )
12 )
1,257
32,524

Ⅵ Cash and cash equivalents at beginning of year

17
30,901 )128,212

Ⅶ Cash and cash equivalents
at half year end or the end of the year

97,311

Ⅳ Translation adjustment of cash and cash equivalents

Ⅴ Net increase in cash and cash equivalents

(

(
(

(

(

(
(
(

(

(
(

(
(
(

15,049 )24,891 )
1,878
4,414 )
508 )
2,074 )
1,737
1,573 )
48
563 )
45,409 )33,462(

10,074
218,753 )
4,113
9,433 )
―

(
(

2,506
1,086
1,067 )
1,009
5,031 )
215,495 )(

22,598 )(40,0475,501 )――
287
3,971 )
1,690 )
13 )
1,393
12,520((1,998
14,017 )
116,401((

1,981 )
16,884 )11,811

4,757
11,811
116,401

102,383(

5,072 )

128,212(((((3,377 )
6,749 )
―
500 )
235 )
1,426 )
1,037 )
1136 )
20,004(65,187
7,688 )
10,000―671
7,659 )
2,568 )
29 )
1,521
36,834((((

Note: Reconciliation between Cash & Cash Equivalents and accounts on the consolidated balance sheet##
Cash and Cash Equivalents
Marketable Securities
Other Current Assets
Subtotal
Saving accounts over three months

Short-term investments of over three months until due date
Other current assets beside Cash & Cash Equivalents

Cash and Cash Equivalents(((

94,08916,02540,514
150,630
9,850 )
6,285 )
37,182 )97,311− １５ −(((

78,405
31,13430,977140,517
1,841 )
6,314 )
29,977 )102,383((((

15,684
15,109 )9,537
10,1138,009 )
29
7,205 )
5,072 )(((

95,44332,43439,438167,316
2,051 )
6,649 )
30,402 )128,212Basis of Presenting Consolidated Financial Statements
1. Scope of Consolidation
Consolidated subsidiaries

Aisin AW Co., Ltd., etc.
Total: 136 companies (Japan: 61 companies, Overseas: 75 companies)(Main companies are mentioned in Overview of Associated Companies. )2. Scope of Equity method
Affiliates accounted for under equity method
Exedy Corporation, etc.
Total: 14 companies (Japan: 10 companies, Overseas: 4 companies)
3. Changes in scope of Consolidation and Equity method(1) Consolidated subsidiaries (Added)
Aisin Chemical Indiana, LLC., etc.
Total: 3 companies (Overseas)(2) Consolidated subsidiaries (Added from Affiliates accounted for under equity method)
PT. Aisin Indonesia
1 company (Overseas)(3) Affiliates accounted for under equity method (Added)
Noubi Co., Ltd.
1 company (Japan)(4) Affiliates accounted for under equity method (Excluded to Consolidated subsidiaries)
PT. Aisin Indonesia
1 company (Overseas)
4. Half year end of Consolidated subsidiaries
Of Consolidated subsidiaries, 70 companies in total, Aisin Holdings of America, Inc. and other subsidiaries, sets its
half year end on Jun. 30. Since the difference of interim closing date between its subsidiaries and AISIN consolidation
does not vary more than three months, AISIN coordinates material transactions that occurred in the term between the
consolidated half year end according to The Rule of Interim Consolidated Financial Statements.
5. Significant Accounting Policies(1) Valuation of Significant assets① Marketable Securities
Ot her Securities
with readily determinable fair values…… Mainly fair value method using market price at interim closing date
(Unrealized gains and losses are recorded as a portion of shareholders equity.
Sales cost of marketable securities is determined by the moving average method.)
without readily determinable fair values…… Mainly at cost, as computed by moving-average method② Derivative…… Market value method③ Inventories
Finished products, work in process and supplies (excluding steel supplies and fuel)…… Mainly at cost, as determined by the periodic average method
Supplies (steel supplies and fuel) and raw materials…… Mainly at the lower of cost, as determined by the last-in, first-out method, or market− １６ −

(2) Depreciation and Amortization
Depreciation expenses of Property, Plant and Equipment are computed mainly by the declining-balance method.
Amortization of Intangible Assets is computed by the straight-line method.
(3) Significant Allowance① Allowance for Doubtful Accounts
Allowance for doubtful accounts has been provided for at the aggregate amount of estimated credit losses
for doubtful or troubled receivables and a general reserve for other receivables calculated based on
historical loss experience for a certain past period.
② Accrued Warranty Cost
Accrued warranty cost has been provided for at the aggregate amount of the estimated claim incurred in
the warranty period based on historical experience.
③ Allowance for Employees Retirement Benefits
For the purpose of preparation for future payment of employees retirement benefits, AISIN accrues anamount which is considered to be incurred in the period based on the estimated projected benefit
obligations and estimated pension assets at the end of year.
AISIN provides for the accrued cost (¥6,491 million) of retirement benefits payable to directors (including
managing officers) corporate auditors at an amount equivalent to 100 percent of such benefits for which
AISIN would be required to pay based on an internal rule regarding the directors retirement benefits.
This is recorded including in Allowance for Employees Retirement Benefits.
(4) Accounting for Finance Leases
Non-cancelable lease transactions are accounted for as operating leases, except those lease agreements that
stipulate the transfer of ownership of the lease assets to the lessee, which are accounted for as finance leases.
(5) Hedge Accounting method
The deferral method of hedge accounting is applied. For forward exchange contracts, unrealized gain or loss isdeferred as an asset or liability when the criteria for deferral hedge accounting are met, while for interest rate
swaps that meet certain conditions, the short-cut method is applied.
(6) The Consumption Tax
The Consumption Tax is computed based on the net-of-tax method.
6. Scope of Cash and Cash Equivalents on the Consolidated Statements of Cash Flows
Cash and Cash Equivalents on the Consolidated Statements of Cash Flows include cash on hand, bank deposits to bewithdrawn at any time and short-term investment with original maturities of three months or less, that are readily
convertible to known amounts of cash and are so near maturity that they present insignificant risk of in fair value.

− １７ −

〔Changes in Accounting Standards〕（Accounting standard for directors bonus）
Effective from FY2007 Half year ended Sep. 30, 2006, AISIN adopted Accounting standard for directors
bonus (Accounting Standards Board of Japan Statement No. 4, issued by the Accounting Standards Board ofJapan on Nov. 29, 2005). As a result of the adoption, income before income taxes and minority interest
decreased ¥782 million.
And at Geographical Segments of Segment Information, Operating income of Japan decreased the sameamount.
（Accounting standard and guidance presentation of net assets in the balance sheet）
Effective from FY2007 Half year ended Sep. 30, 2006, AISIN adopted Accounting standard for presentationof net assets in the balance sheet (Accounting Standards Board of Japan Statement No. 5, issued by the
Accounting Standards Board of Japan on Dec. 9, 2005) and Guidance on accounting standard forpresentation of net assets in the balance sheet (Accounting Standards Board of Japan Guidance No. 8,
issued by the Accounting Standards Board of Japan on Dec. 9, 2005).
As a result of the adoption, in the consolidated balance sheets, conventional total shareholders equity
and minority interests have been changed to total net assets, and total net assets is indicated byclassifying shareholders' equity,
evaluation and conversion difference,subscription warrant andminority interests.
Additionally Loss of Deferral Hedge Accounting and Profit of Deferral Hedge Accounting, those wereindicated including total assets and total liabilities in the consolidated balance sheets at FY2006 andFY2006 Half year, have been indicated as net Profit & Loss of Deferral Hedge Accounting of evaluationand conversion difference since FY2007 Half year. The amounts corresponding to net Profit & Loss ofDeferral Hedge Accounting in the consolidated balance sheets at FY2007 Half year are ¥14 million at
FY2006, and ¥2 million at FY2006 Half year.
（Accounting standard and guidance for stock options）
Effective from FY2007 Half year ended Sep. 30, 2006, AISIN adopted Accounting standard for stock
options (Accounting Standards Board of Japan Statement No. 8, issued by the Accounting Standards Boardof Japan on Dec. 27, 2005) and Guidance on Accounting standard for stock options (Accounting Standards
Board of Japan Guidance No. 11, last revised by the Accounting Standards Board of Japan on May 31, 2006).
As a result of the adoption, income before income taxes and minority interest decreased ¥41 million.
And at Geographical Segments of Segment Information, Operating income of Japan decreased the sameamount.

− １８ −

Segment Information
１．Industry Segments
AISIN's main business is manufacturing and sales of automotive parts. The amount of sales andoperating income in this business occupies over 90% of these in all segments.
Therefore information of industry segments is omitted.
２．Geographical Segments
FY2007 Half year (Apr. 2006 through Sep. 2006)
North
Japan
America
Sales
776,996 186,735(1) Customers
segment(2) Inter‑
Total
Operating Costs & Expenses
Operating Income

Total
Operating Costs & Expenses
Operating Income

OthersTotal

79,86076,715 1,120,307

160,159 ( 160,159 )segment(2) Inter‑
Total
Operating Costs & Expenses
Operating Income

1,120,307

4,633

2,907

3,697

925,916
890,177
35,738191,368
186,692
4,676

82,76880,572
2,195

80,413 1,280,466 ( 160,159 ) 1,120,307
70,913 1,228,356 ( 160,219 ) 1,068,136
9,500
52,11060
52,171

Total

Others65,89747,369994,240

152,675 ( 152,675 )―

142,873

4,117

2,435

3,249

858,402815,51942,882

169,561
165,943
3,618

68,332
68,157
175

50,619 1,146,916 ( 152,675 )
44,898 1,094,519 ( 152,229 )
5,720
52,397 (
446 )

Japan

North
America

EuropeOthers1,516,392

348,156

142,643

113,397 2,120,588

299,070

9,336

5,430

1,815,462
1,716,252
99,209357,492
352,812
4,679

148,074
147,463
610

7,954

Total

―

（Million Yen）
Elimina‑ Consoli‑
tions
dated

EuropeFY2006 （Apr. 2005 through Mar. 2006）

Sales(1) Customers―

148,919

FY2006 Half year (Apr. 2005 through Sep. 2005)
North
Japan
America
Sales
715,529 165,444(1) Customers
segment(2) Inter‑

Europe（Million Yen）
Elimina‑ Consoli‑
tions
dated

994,240―994,240942,290
51,950（Million Yen）
Elimina‑ Consoli‑
tions
dated
―

321,791 ( 321,791 )

2,120,588―

121,351 2,442,380 ( 321,791 ) 2,120,588
106,747 2,323,276 ( 320,785 ) 2,002,491
14,603 119,103 ( 1,006 )118,096

Note: 1.Geographical segments determined according to geographical closeness.
2.Main countries are① North America :② Europe:③ Others:

U.S.A., Mexico
Belgium, Czech
Thailand, China

3.The influences that the changes in accounting standards give Segment Information are
described at Change in Accounting Standards.

− １９ −

３．Sales by Customer Location
FY2007 Half year (Apr. 2006 through Sep. 2006)（Million Yen）

North America

EuropeOthers

Total

Overseas Sales

206,369

102,056

100,032

408,458

Net Sales―――

1,120,307

Overseas Sales
Ratio to Net Sales

18.4 ％

9.1

％

9.0

％

FY2006 Half year (Apr. 2005 through Sep. 2005)

36.5 ％（Million Yen）

North America

EuropeOthers

Total

Overseas Sales

179,457

81,10770,010330,575

Net Sales―――

994,240

Overseas Sales
Ratio to Net Sales

18.0

％

8.2

％

7.0

％

FY2006 （Apr. 2005 through Mar. 2006）

33.2（Million Yen）

North America

EuropeOthers

Total

Overseas Sales

377,540

173,878

162,585

714,004

Net Sales―――

2,120,588

Overseas Sales
Ratio to Net Sales

17.8

Note: Main countries are① North America :② Europe:③ Others
:

％

％

8.2

％

7.7

U.S.A., Mexico
Germany, Sweden
Thailand, China, South Korea− ２０ −％

33.7％

Marketable Securities
FY2007 Half year (As of Sep. 30, 2006)
1. Held-to-maturity Bond with fair value

N/A

2. Other Securities with fair value（1）Stocks（2）Bonds
Government
Corporate（3）Others
Total

Cost
45,884

Fair and Carrying Value
250,967

17,3382,790
188
66,201

17,3362,787
188271,280（Million Yen）
Unrealized Gains(loss)
205,083((1
3
0
205,078))

3. Contents and carrying amounts of securities without readily determinable for practicable to fair value（1） Held-to-maturity Bond N/A
9,189 Million Yen（2） Other Securities
Unlisted stocks
9,917 Million Yen
Bonds, money management funds, others

FY2006 Half year (As of Sep. 30, 2005)
1. Held-to-maturity Bond with fair value

N/A

2. Other Securities with fair value（1）Stocks（2）Bonds
Government
Corporate（3）Others
Total

Cost
45,813

Fair and Carrying Value
201,033

12,2794,374
277
62,744

12,2834,351
277
217,946（Million Yen）
Unrealized Gains(loss)
155,220(4
23
0
155,202)

3. Contents and carrying amounts of securities without readily determinable for practicable to fair value（1） Held-to-maturity Bond N/A
7,882 Million Yen（2） Other Securities
Unlisted stocks
22,372 Million Yen
Bonds, money management funds, others

FY2006 (As of Mar. 31, 2006)
1. Held-to-maturity Bond with fair value

N/A

2. Other Securities with fair value（1）Stocks（2）Bonds
Government
Corporate（3）Others
Total

Cost
45,880Fair and Carrying Value
254,031

12,4893,802
218
62,391

12,4093,787
218
270,447（Million Yen）
Unrealized Gains(loss)
208,150
(
(

79
15
0
208,055

3. Contents and carrying amounts of securities without readily determinable for practicable to fair value（1） Held-to-maturity Bond N/A
9,427 Million Yen（2） Other Securities
Unlisted stocks
25,785 Million Yen
Bonds, money management funds, others

−

２１

−

)
)

FY2007 Half year Non-consolidated Financial Results(April 1, 2006 through September 30, 2006)
Company NameAISIN SEIKI Co., Ltd.

The Tokyo, Osaka and Nagoya
Stock Exchanges (1st division)
Aichi, JAPAN

Listed on

Code Number
7259(URL http://www.aisin.com)
Representative
Reference person in charge

Location

Yasuhito Yamauchi, President
Masaaki Yasui,
General Manager, Finance & Accounting Dept.
Date of the meeting of the board of directors for financial results
October 31, 2006
Date of starting actual payment of cash dividends
November 27, 2006
Number of shares in unit share system
100 shares

TEL 81 - 566 - 24 - 8265

１. Results of the Half year of FY2007 (Apr. 1, 2006 through Sep. 30, 2006)(1)Operating Results(Amounts less than million yen are rounded down.)
Net Sales
Operating Income
Ordinary Income
FY2007 Half year
FY2006 Half year
FY2006

Million Yen％

Million Yen％

Million Yen％

366,755
344,325
720,541

6.5
10.0

8,836
16,94235,220( 47.8)20.9

14,501
22,02541,969( 34.2)34.8

Net Income
FY2007 Half year
FY2006 Half year
FY2006

Earnings Per Share

Million Yen％

Yen

11,193
14,93928,664( 25.1)
48.1

38.07
50.88
96.52

Note1 : Average number of shares issued and outstanding each period after adjustment
FY2007 Half year : 293,992,857 shares, FY2006 Half year : 293,623,454 shares, FY2006 : 293,890,507 shares
Note2 : Change in the accounting policy : none
Note3 : Percentages for net sales, operating income, ordinary income and net income indicate changes from the same period of theprevious year.

(2)Financial Position

FY2007 Half year
FY2006 Half year
FY2006

Total Assets

Total Net Assets

Million Yen

Million Yen

980,277
809,440
951,182448,513405,010 ※445,848 ※Shareholders' Equity Ratio Shareholders' Equity Per Share％

45.7
50.0 ※
46.9 ※

Yen

1,524.62
1,377.01 ※1,514.51 ※Note1 : Number of shares issued as of the respective balance sheet date
FY2007 Half year : 294,153,708 shares, FY2006 Half year : 294,123,509 shares, FY2006 : 294,188,376 shares
Note2 : Number of treasury stock as of respective balance sheet date
FY2007 Half year : 520,926 shares, FY2006 Half year : 551,125 shares, FY2006 : 486,258 shares
Note3 : The points marked ※ are based on previous accounting standards.

２. Forecast for FY2007 (Apr. 1, 2006 through Mar. 31, 2007)
Net Sales
Operating Income
FY2007

Ordinary Income

Net Income

Million Yen

Million Yen

Million Yen

Million Yen

765,000

25,00031,00023,000

Reference : Forecast of earnings per share for FY2007

78.19yen

３. Cash Devidends
InterimCash Devidends Per Share (Yen)AnnualTotal

FY2006

13.00

19.00

32.00

FY2007 (Results)

16.00

―

FY2007 (Forecast)

―

16.00
−

２２

32.00
(Forecast)−Non-Consolidated Net Sales by Item
Category

FY2007 Half year

FY2006 Half year

(Apr. 2006 throughSep. 2006)(Apr. 2005 throughSep. 2005)

AmountPercentage

Amount

R
e
l
a
t
e
d

Increase Variation(Decrease)
ratio

Percentage

%
A
u
t
o
m
o
t
i
v
e

（Million Yen）
FY2006(Apr. 2005 throughMar. 2006)
Amount%Percentage%%

Engine Related

54,64414.9

49,314

14.3

5,330

10.8

103,127

14.3

Drivetrain Related

65,95518.0

60,199

17.5

5,756

9.6

126,690

17.6

Brake & Chassis
Related62,39717.0

59,220

17.2

3,177

5.4

122,825

17.0

Body Related

142,27938.8

126,383

36.7

15,89612.6

273,562

38.0

Information Related

21,8876.0

25,3077.4

3,420 ) ( 13.5 )48,822

6.8

Sub Total

347,165

94.7

320,42593.1

26,7408.3

675,028

93.7

Export42,33811.5

43,51412.6(

1,176 ) (2.7 )88,14012.2

19,5905.3

23,8996.9(4,309 ) ( 18.0 )45,513

6.3

Export

3,439

0.9

5,450

1.6

(

2,011 ) ( 36.9 )10,493

1.5

Grand Total

366,755

100.0

344,325100.0

22,4306.5

720,541

100.0

Export

45,77712.5

48,96514.2

3,188 ) (6.5 )98,633

13.7

Life & Energy Related− ２３ −((

Non-Consolidated Statements of Income
FY2007 Half year FY2006 Half year
(Apr. 2006 through (Apr. 2005 throughSep. 2006)
Sep. 2005)

Increase(Decrease)（Million Yen）
FY2006(Apr. 2005 throughMar. 2006)

Net Sales

366,755

344,325

22,430720,541

Cost of Sales

329,521297,474

32,047627,298

Gross Profit

37,233

46,850(9,617 )

93,243

Selling, General &Administrative Expenses

28,39629,907(

1,511 )

58,022

Operating Income

8,836

16,942(

8,106 )

35,220Non-Operating Income

9,562

7,045

2,517

12,452

Interests & Dividend Income

8,113

5,439

2,674

8,528

Other Income

1,448

1,605

157 )

3,924

Non-Operating Expenses

3,897

1,962

1,935

5,703

Interest Expense

1,081

626

455

1,316

Other Expenses

2,815

1,336

1,479

4,386

Ordinary Income

14,501

22,025(

7,524 )

41,969

Income Before Income Taxes

14,501

22,025(

7,524 )

41,969

Income Taxes-current

1,200

6,300

(

5,100 )

14,800

Income Taxes-deferred

2,107

785

Net Income

11,193

14,939Note : Depreciation and Amortization

16,79613,133

−

２４

−

(

1,322
(

(

1,494 )

3,746 )

28,664

3,663

26,758

Non-consolidated Balance Sheets（Million Yen）

FY2007 Haｌf year

FY2006

Increase(Decrease)(As of Sep. 30, 2006) (As of Mar. 31, 2006)〔 Assets 〕
Current Assets
Cash and Cash Equivalents
Trade Notes Receivable
Trade Accounts Receivable
Marketable Securities
Finished Products
Raw Materials
Work in Process
Supplies
Prepaid Expenses
Deferred Tax Assets
Accrued Accounts Receivable
Short-term Loans
OthersLess: Allowance for Doubtful
Accounts
Fixed Assets
Property, Plant & Equipment
Buildings
Structures
Machinery & Equipment
Vehicles & Delivery Equipment
Tools, Furniture & Fixtures
Land
Construction in Progress
Intangible Fixed Assets
Software
Institution Usufruct
OthersInvestments & Other Assets
Investments in Securities
Investments for Affiliates
Equity Share Capital

309,470
19,8202,191
152,886
9,811
6,129
433
12,674
3,236
361
11,0204,870
85,265
1,011(

Total Assets
Note: 1. Accumulated depreciation
2. Guarantees on Liability

(

205 )

670,806
170,505
50,376
13,97659,853903
11,26827,208
6,919
3,912
3,799
56
56
496,388
94,571
295,072992
22,132
76,5816,110
1,057

Equity Share Capital for Affiliates

Long-term Loans
Long-term Prepaid Expenses
OthersLess: Allowance for Doubtful
Accounts

243 )

292,886
21,398
2,683
154,532
23,102
5,791
661
10,692
2,834
277
13,2605,487
52,060
309

(

130 )

658,295
169,391
43,533
14,427
54,128943
10,75627,20818,395
3,932
3,817
60
55
484,970
90,896295,220980
21,777
69,367
5,813
1,042
(

126 )

980,277

951,182

348,112365− ２５339,417
579
−

(
(
(
(
(

(
(

(

(
(

(
(
(
(

(

(

(

FY2006 Half year
(As of Sep. 30, 2005)

16,584
1,578 )
492 )
1,646 )
13,291 )
338
228 )
1,982
402
84
2,240 )
617 )
33,205702
38 )

246,160
10,9702,758
146,981
16,731
5,936
266
11,771
2,735
262
11,1983,984
31,969825(

12,511
1,114
6,843
451 )
5,725
40 )
512
―
11,476 )
20 )
18 )
4)
1
11,418
3,675
148 )
12
355
7,214
297
15
4)

231 )
563,280
143,807
39,58013,40347,291
740
8,584
27,114
7,092
3,540
3,450
63
26
415,931
71,934
254,927906
16,37965,020
5,824
1,061

(

122 )

29,095

809,440

8,695
214 )

334,598
2

（Million Yen）

FY2007 Haｌf year

FY2006

Increase(Decrease)(As of Sep. 30, 2006) (As of Mar. 31, 2006)〔 Liabilities 〕
Current Liabilities
Trade Notes Payable
Trade Accounts Payable
Commercial Paper
Amount in Arrears
Accrued Expenses
Accrued Income Taxes
Deposits Received
Deposits Received from
Employees
Accrued Warranty Cost
OthersLong-term Liabilities
Bonds Payable
Long-term Debt
Deferred Tax Liabilities
Allowance for Employees
Retirement Benefits
Long-term Accrued Expenses
OthersTotal Liabilities

158,856
2,262
88,108―
11,547
37,776
4,406
1,987

7,364

45

7,440

5,517
1,111
335,197
35,000200,000
60,2695,193
930
300,327
35,000
164,000
62,345324
181
34,870―36,0002,076 )

4,203
1,124
245,573
25,000140,000
42,11638,01037,653357

36,897982
934
531,7631,329―
505,333

347 )
934
26,4301,560―
404,430

329,08145,04963,171
62,926244
222,217
10,285211,932

324,432
45,04963,262
62,926336
216,910
10,285
206,625

4,649
―
91 )
―
91 )
5,307
―
5,307

314,41945,04963,24562,926319
207,009
10,285
196,724

588

536

52

536

Reserve for Reduction of
Acquisition Cost of Fixed Assets

2,875

3,161

286 )

3,161

General Reserve
Unappropriated Retained
Earnings
Less:Treasury Stock, at Cost
Evaluation andConversion Difference
Net Unrealized Gain on
Available-for-sale Securities
Profit & Loss of Deferral
Hedge Accounting
Subscription Warrant
Total Net Assets
Total Liabilities
and Net Assets

112,500

112,500―

112,500

95,96890,4285,540

80,527((205,005
3,086
98,522―
26,35942,053
8,118
13,375

7,409

1,356 )

(
(
(

(
(

(
(

(

790 )

(

566 )

119,389

121,415(

2,026 )

90,590119,951

121,415(

1,464 )

90,590

562 )

―

(

562 )

―

41
448,513―445,848

41
2,665

―
405,010980,277

951,182

29,095

809,440

−

(

(
(
(

(As of Sep. 30, 2005)

8,440 )
530 )793 )15,00015,393 )2,722 )
8,080 )
3,529

〔 Net Assets 〕
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Legal Reserve
Other Retained Earnings
Reserve for Special
Depreciation

196,565
2,556
97,72915,00010,96639,331
38
16,904

FY2006 Half year

２６

−

(

884 )

Non-Consolidated Statements of Changes in Shareholders' Equity
FY2007 Haｌf year （Apr. 2006 through Sep. 2006）（Million Yen）
Shareholders' Equity

Capital Surplus

Retained Earnings
Other Retained Earnings

CommonStock45,049Balance as of Mar. 31, 2006

CapitalReserve

Other Capital
Surplus

Sub Total

62,926336

63,262

Reserve forReserve for Reduction
Legal Reserve Special of AcquisiDepreci- tion Cost
ation
of Fixed
Assets

10,285

536

3,161

Less:
Treasury
Stock, atCost

Sub Total

790 )

324,432

GeneralReserve

UnappropriatedRetained
Earnings

112,500

90,428

216,910

334 )

―

―

567

―

―

Sub Total(

Increase(Decrease)
in FY2007 Haｌf year

334

Increase in Reserves(

Decrease in Reserves

282 ) ((

286 )Dividends Paid(

5,589 ) (5,589 )(

5,589 )

Bonus of Directors andCorporate Auditors(

297 ) (

297 )

(

297 )

11,193Net Income

11,193

11,193(Purchase of Treasury Stock(91 ) (91 )― (91 ) (

91 )―

63,171

10,285

Subscripition
Warrant

Total
Net
Assets

Disposal of Treasury Stock

1,915 ) (1,915 )

1,349

1,257

Net Change of items otherthan Shareholders' Equity
Total Changes in the Term―

Balance as of Sep. 30, 2006

45,04962,926

244

52 (
588

286 )

―

5,540

5,307

(

566 )

4,649

2,875

112,500

95,968222,217(

1,356 )

329,081

Evaluation and Conversion Defference

Net Unrealized
Gain onAvailable-forsale Securities

Profit &Loss ofDeferralHedge
Accounting

Sub Total―

121,415

121,415

Balance as of Mar. 31, 2006―

445,848

Increase(Decrease)
in FY2007 Half year
Increase in Reserves―

Decrease in Reserves―

Dividends Paid(

5,589 )

Bonus of Directors andCorporate Auditors

(

297 )
11,193Net Income

1,915 )(

Purchase of Treasury Stock

1,257

Disposal of Treasury Stock
Net Change of items otherthan Shareholders' Equity(

1,464 ) (562 ) (

2,026 )

41

Total Changes in the Term(

1,464 ) (562 ) (

2,026 )

41

2,665

119,951 (562 )119,38941

448,513

Balance as of Sep. 30, 2006

1,984 )(

Note ： Type and number of treasury stock
Type of shares
Common Stock

Reason for changes(Increase)(Shares)Number as of Mar. 31, 2006

Increase

486,258

Decrease
553,203

518,535

549,914 shares

Purchase from consolidated subsidiaries
Request for purchase of less-than-one-unit shares

3,289(Decrease) Exercise of stock option
Request for additional ｐurchase of less-than-one-unit shares

518,200
335

−

２７

−

Number as of Sep. 30, 2006
520,926