Financial Overview

(in millions of JPY)

	FY2010 (ended Mar. 2011)	FY2009	Rate of Change (%)	Factors
Overall
Sales	167,276	135,225	23.7	-
Operating income	14,650	6,308	132.2	-
Ordinary income	10,490	7,185	46.0	-
Current net income	6,010	2,963	102.8	-
Automotive and general-purpose instrument business
Sales	124,979	96,711	29.2	Sales of instruments designed for two- and four-wheel vehicles, as well as sales of all types of general-purpose instruments, increased in all regions.
Operating income	13,819	6,262	120.7	-

Outside Japan

Mexico
A new plant building at Nippon Seiki De Mexico S.A. De C.V. was completed in February 2011, after having been started in April 2010. The plant, which manufactures instruments for four-wheel vehicles, started commercial production in July 2011. Nippon Seiki De Mexico had originally been mass-producing circuit boards designed to hold instruments for four-wheel vehicles by using a part of the production facilities at Nissei Advantech De Mexico S.A. De C.V., the Company’s Mexican subsidiary. The plant was then supplying them to the Company’s U.S.A. subsidiary producing the instruments themselves.  As a result of being able to produce instruments now at its own plant, productivity and efficiency improved, while production capacity grew.  In addition, Nissei Advantech De Mexico is now producing plastic parts for instruments used on four-wheel vehicles and supplying them to the U.S.A. subsidiary, thus forming a two-plant production operation in Mexico, enabling the Company to become more cost-competitive in the North American automotive instrument market.

China
The Company set up a representative office in June 2010 in Wuhan, Hubei Province for the purpose of strengthening its marketing activities to local Chinese auto makers. The representative office, in addition to conducting sales promotions on instruments for four-wheel vehicles, is also strengthening its own design capabilities and even giving thought to building its own automotive instrument production facilities locally.

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenses

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,771	2,725	3,286
Automobile and general-purpose instruments business	2,596	2,556	3,070

R&D Activities (Automobile and general-purpose instruments business)

 -Developing driving-support information display systems such as head-up displays, and developing next-generation HMI (Human Machine Interface) devices. 
-Developing onboard optics and actuators.
-Developing onboard sensor devices.

The Company and Ortus Technology Co., Ltd. succeeded in jointly developing active-type, mono-color organic EL displays. Since 2004, the Company has supplied organic EL displays for use in automotive meters and other products. The newly-developed products can offer high brightness, large screen, high definition and high dynamic range at the same time, all of which are difficult to achieve with conventional, passive-type organic EL displays. The Company expects that the new active-type displays will be widely used for automotive meters and other applications. The two companies will now work on establishing technology for mass producing these products on high-mix, low-volume production lines, and ensuring product reliability when used in vehicles. Ortus Technology, which is based in Tokyo, specializes in developing and manufacturing TFT/organic EL displays and other products. (From a press release on November 10, 2010)

Licensing of Technology

(As of Mar. 31, 2011)

Partner (Location)	Contract	Contract Start Date	Contract Period
JNS Instruments Ltd. (India)	Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles	Jul. 25, 1998	Automatically renews

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	5,193	4,270	7,454
Automotive and general purpose instrument business	4,091	3,357	5,699

Automotive and general purpose instrument business
-The Company invested in substrate mounting facilities, instrument assembly facilities, and in adding and improving plant buildings at NS West Inc. so as to prepare facilities for producing new products, increase its production capacity, and update facilities.

Investment Outside Japan

Mexico
The Company said its subsidiary in Mexico, Nippon Seiki de Mexico, will construct a plant to produce components of instruments for automobiles by investing 1.3 billion yen. The new plant, which is scheduled to go into full operation in October 2011, will produce and ship panel assemblies to group companies in North America that are engaged in final assembly operations. In the long run, the Mexican plant is planning to go through whole processes from parts production to final assembly to boost its competitive edge. The Company is targeting to raise its share of the global automobile instrument market from the current 11 percent to 15 percent. (From an article in the Nikkan Jidosha Shimbun on April. 14, 2010)

Planned Capital Investment (Meters for automobile and general-purpose use)

Name of company or facility (Location)	Purpose	Planned total investment (in million JPY)	Starting	Planned Completion
The Company Head office Plant (Niigata Pref., Japan)	Facilities to produce fuel resisters.	164	Dec. 2009	Jan. 2012
The Company Takami Plant (Niigata Pref., Japan)	Facilities for producing board substrates	133	Apr. 2011	Jul. 2011
NS Advantech Co., Ltd. Head office Plant (Niigata Pref., Japan)	Facilities for conducting molding and printing operations.	107	Apr. 2011	Mar. 2012
NS West, Inc. Head office Plant (Hiroshima Pref., Japan)	Construction work to increase and remodel home office plant.	517	Dec. 2009	Dec. 2011
	New production management system	159	Apr. 2011	Mar. 2012
	Facilities for producing boards substrates	158	Apr. 2011	Mar. 2012
	Facilities for conducting assembly and production operations.	142	Apr. 2011	Dec. 2011
	Molding facilities	108	Apr. 2011	Aug. 2011
Thai Nippon Seiki Co., Ltd. (Chonburi, Thailand)	Facilities for producing boards substrates	159	Mar. 2011	Jul. 2011
	Production facilities to produce fuel units	124	Jan. 2011	Dec. 2011
Changzhou Nissei Display System Co., Ltd. (Jiangsu Province, China)	Facilities to produce mechanical instruments; and new building structures.	244	Mar. 2011	Dec. 2011