Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	191,021	175,981	8.5	-
Operating income	9,767	13,509	(27.7)	-
Ordinary income	15,611	14,866	5.0	-
Current net income	8,231	7,409	11.1	-
Automotive and general-purpose instrument business
Sales	140,014	128,588	8.9	-Sales of motorcycle and general-purpose meters and instruments fell, while sales of meters and instruments for passenger cars rose.
Operating income	8,638	11,989	(28.0)	-

New Company

<China>
-The Company formed a new company "Nissei Display Sales and Development Co., Ltd." in Shanghai, China on March 2013. The new company will be engaged in sales and development of in-vehicle meters and related parts. Capitalized at $1.5 million, approximately 123 million yen, it will be owned 60 percent by Nippon Seiki and 20 percent each by its group companies of Shanghai Nissei Display System and Wuhan Nissei Display System. (From an article in the Nikkan Jidosha Shimbun on April 6, 2012)

Recent Development Outside Japan

Production Launch of Passenger-car Meters and Instruments in Indonesia

-The Company will begin to produce instrument clusters for vehicles late next year locally in Indonesia in response to request from its leading customers, to which the products have been supplied from Thailand or Japan. As demand for vehicles is expected to grow in Indonesia, each of Japanese automakers is planning to expand its production. Anticipating an increase in orders for its instruments as well, the Company will boost its supply capacity by switching to local production. The instrument supplier owns production facilities worldwide to make automobile and motorcycle meters. In Southeast Asia, Indonesia is the second country, following Thailand, in which instrument clusters for vehicles are produced. The Company's Indonesian subsidiary, which now makes meters for motorcycles, will install additional manufacturing equipment. The plant will have production capacity of 600,000 instruments a year for deliveries to Japanese automakers operating in the country. (From an article in the Nikkan Jidosha Shimbun on Sep. 13, 2012)

Expanding the HUD (head-up display) business

-The Company is set to boost sales of head-up displays by 2.4 times to 17 billion yen in the fiscal year ending March 2016 compared with the fiscal year ended March 2012. Exploring new customers among European and Japanese automakers, the Company will strive to expand the application of head-up displays to an increasing number of vehicle models. Given a projected increase in demand in the future as a device to reduce the burden on the driver, the Company will vigorously make presentations of the head-up display technology, targeting automobile manufacturers. Nippon Seiki's advanced display devices have already been installed in BMW "5-", "7-" and "X-series", GM "Cadillac" and PSA Peugeot Citroen "C6". The Company earned 7 billion yen in sales of head-up displays in the fiscal year ended March 2012, and holds a 50 percent share in the global market. Along with growing demand for the new technology in the future, the number of customers will also increase. At the same time, through continued vigorous marketing activities targeted at current customers, the Company is poised to achieve the sales target. (From an article in the Nikkan Jidosha Shimbun on July 19, 2012) 

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

R&D Expenses

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	3,401	3,019	2,771
-Automobile and general-purpose instruments business	3,155	2,770	2,596

-R&D expenses in FY ended Mar. 2013 for the display business were 86 million yen.

R&D Structure

-R&D activities are overseen by the R&D Center in Nagaoka, Niigata Prefecture; and NS Technical Center, also in Nagaoka, which collaborate with the R&D functions at each business creating mass-marketed products, conducting design activities, and developing production technology.

-The Tokyo Technical Center was opened in October 2012 in Taito Ward, Tokyo, to conduct design activities.

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 smartphone technology.
-Developing on-board optics and actuators.
-Developing on-board sensor devices.

Display Business
-The Company developed high-resolution monochrome organic light-emitting diode (OLED) displays with larger display areas. Sample shipment of the new products will start soon. The Size-up series displays are embedded with a newly developed driver IC, which achieves resolution levels of up to 256x136 dpi with a single chip. The improved performance enabled adoption of larger displays. The Company's engineers also developed organic light-emitting diode elements with longer service life and excellent reliability capable of withstanding harsh in-vehicle environment. The new displays are expected to be applied to various electronic equipment, including automotive devices such as car audio systems, heater control devices and meters. The Company has been marketing OLED displays since 2004. Its products are used as indicator panels of some vehicles built by European and U.S. automakers. (From an article in the Nikkan Jidosha Shimbun on Feb. 21, 2013)

Technology licensing-out Agreement

(As of Mar. 31, 2013)

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)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	9,891	6,679	5,193
-Automotive and general purpose instrument business	8,127	5,466	4,091

Automotive and General Purpose Instrument Business
-The company made capital investments to better respond to new models and expand its production capacities and renew facilities, investing in facilities to manufacture substrate boards and assemble meters and instruments.

-NS Instruments India Private Ltd., which was set up in February 2012, began the construction of its plant building in August the same year. It is scheduled for completion in October 2013, with plans to launch commercial production of passenger-car meters and instruments from January 2014.

Planned Capital Investment (Meters for automobile and general-purpose use) (As of Mar. 31, 2013)

Name of company or facility (Location)	Purpose	Planned total investment (in million JPY)	Starting	Planned Completion
The Company Takami Plant (Niigata Pref., Japan)	Increase facilities to die-cast concave mirrors; transfer unit and magnet forming facilities	641	Nov. 2012	Jan. 2014
NS Advantech Co., Ltd. Head office Plant (Niigata Pref., Japan)	Facilities for forming and printing	115	Apr. 2013	Mar. 2014
NS West, Inc. Head office Plant (Hiroshima Pref., Japan)	Facilities to respond to production of new-model vehicles	114	Apr. 2013	Mar. 2014
Thai Nippon Seiki Co., Ltd. (Chonburi, Thailand)	Facilities for producing VS-2 units	112	Oct. 2013	Jan. 2014