Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	198,527	169,303	17.3	-
Operating income	22,858	20,212	13.1	-
Ordinary income	24,656	22,365	10.2	-
Current net income	14,756	13,387	10.2	-
Transport Equipment Business
Sales	48,289	48,182	0.2	-The increased demand for trucks in developing countries contributed to the increased sales volume.
Operating income	6,068	5,915	2.6	-

Outlook for FY ending Mar. 31, 2013 (Transport Equipment Business)

(in millions of JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Result)	Rate of Change (%)
Sales	46,600	48,289	(3.5)
Operating income	5,000	6,068	(17.6)

-Since there was stronger demand for commercial-vehicle trucks in developing countries, the Company's operating revenue for the fiscal year that ended March 2012 increased year-on-year. For the fiscal year ending March 2013, the Company forecasts that sales during the first half of the year will increase due to the return of government-sponsored sales incentive programs; however, during the second half of the year, the Company predicts a downturn in sales. As a result, the Company predicts that sales will be flat for the year as a whole.

Mid-term Management Plan

-In 2012, the Company announced its latest mid-term management plan, Global Challenge: Advance to the Next Stage, which covers the period from the fiscal year ending March 2012 (i.e., starting April 2011) to that ending March 2014. Under the plan, the Company will strengthen and enhance its operations overseas in expanding its global activities. In addition, by strengthening its operations in Japan as its core area of operations, it aims to become a leading, global company capable of surviving the current, extreme competition and working to ensure it permanently enhances its corporate value. The basic objectives of the management plan are as follows:

• Sales: 240 billion by fiscal year ending March 2014
• Operating profit: 31.3 billion yen by fiscal year ending March 2014 (Operating profit margin of 13.0%)
• R&D expenses: 15 billion yen accumulative total over 3 years
• Capital investments in facilities and equipment: 38 billion yen accumulative total over 3 years
• Financial investment to grow the business: 30 billion yen accumulative total over 3 years (includes forming Group companies and commercial alliances, and conducting M&A, etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2012
Overall	5,200	3,911	3,746
Transport Equipment Business	1,905	1,587	1,629

-During the fiscal year that ended March 2012, the Company's major achievement was successfully developing a series of electrically operated, automotive vacuum-pumps.

R&D Facility (Nabtesco Automotive)

Name	Location
Yokosuka Technical Center	Kanagawa Pref., Japan

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	13,524	6,337	4,809
Transport Equipment Business	1,478	1,192	1,565

-During the fiscal year that ends March 2013, the Company plans to spend 2,500 million yen on facilities and equipment at its Transport Equipment Business.