Financial overview

( in millions of JPY )

-	FY2008	FY2007	Rate of Change (%)	Factors
Sales	186,346	202,469	(8.0)	Despite the increased sales in Asia, overall sales decreased as a result of significant decline in production volume and sales in Japan and North America and also due to foreign exchange translation.
Operating income	12,317	21,029	(41.4)	Revenues significantly decreased due to decreased sales.
Ordinary income	10,800	22,368	(51.7)
Current net income	4,222	13,348	(68.4)

Contracts

The Company announced that it has been awarded a new contract by Honda to supply its brake components and aluminum parts for the new Odyssey and that it has already entered mass production of these products. The products supplied include compact and lightweight VSA NK21V units to be equipped as original equipment on the Odyssey, vacuum boosters & master cylinders, front/rear disc brakes, drum brakes as well as aluminum brackets. (From a press release on Oct. 16, 2008)


Recent developments in Japan - Restructuring and enhancing production structure

The Company announced that it will construct a new plant to manufacture vehicle brake parts in Tomi city, Nagano Prefecture, to improve efficiency of the manufacturing operation in Japan and strengthen support for the overseas operation. This will be the company's fourth production base in Japan. Construction work will begin in November, with the operation scheduled to start in October 2009 in Kurakake Industrial Park in Tomi city. The 16,000-square-meter plant, the largest one in Japan for Nisshin built at a cost of about 4.6 billion yen, will be located on the premises of roughly 83,000 square meters. (From an article in the Nikkan Jidosha Shimbun on Oct. 29, 2008)

The Company will postpone more than one year the construction of a new plant in Tomi, Nagano Prefecture, which was planned to go into operation in October 2009. (From an article in the Nikkan Jidosha Shimbun on Feb. 4, 2009)



Business plan

<Efforts made for small cars and hybrid cars>
- To accelerate development of lighter products
- To reduce dragging of brake.
- |To Expand sales of regenerating brake products.

R&D Expense

( in millions of JPY )

-	FY2008	FY2007	FY2006
R&D expense	6,884	7,313	6,870

R&D Structure
R&D facilities: Tochigi R&D Center (Nasukarasuyama City, Tochigi Pref.), Nagano R&D Center (Tomi City, Nagano Pref.)

The Company focused on development of basic brake systems and automatic mechatronics control systems, creating design technologies for reducing weight mainly by using aluminum products, and developing materials and manufacturing methods in order to reduce the weight of motorcycles and automobiles as well as to improve the safety and comfort of vehicles. It also carried out development activities on full brake systems under joint cooperation with automakers.

Major R&D achievements in automobile parts
<Development of an automatic control mechatronics system>
-The Company supplied NK21V, a newly developed small and light VSA (Vehicle Stability Assist), for 5 vehicle models. NK21V contributes to security and safety of the vehicle.
-One of its models has HSA (Hill Start Assist), which reduces strain on drivers when a car starts on a hill.
-Three of its models have collaboration control with MA-EPA (Motion Adaptive EPS). This assists steering force so that under-steering or over-steering of the car can easily be lessened.

<Basic brake development>
-In order to meet demand to improve fuel economy of the car, the Company expanded application of drag torque reduction technology for brake systems as well as application of lighter systems.
-The Company reviewed part specifications to reduce cost and implemented new specifications for 9 models.

<Development of a full brake system>
-The Company developed a full brake system for one vehicle and supplied it for one model.

<Development of weight reduction technology>
-The Company supplied 53 types of aluminum engine mount bracket that contribute to reducing vehicle weight for 12 models.
-The Company supplied aluminum rear knuckle for one model.

Capital Investment (FY2008)
Capital investment in FY 2008 (ended Mar. 2009) was 10,206 million JPY.

Plans to add new facilities for automotive parts (As of end of March 2009)

Business segment and main products	Type of facility	Planned total investment (million JPY)	Starting month	Planned completion
Ueda Plant (Nagano Pref., Japan)	Production facility	213	May, 2008	Feb., 2010
Tobu Plant (Nagano Pref., Japan)	Production facility	411	June 2008	Jan., 2010
Naoetsu Plant (Niigata Pref., Japan)	Production facility	564	Aug., 2008	Jan., 2010
Nissin Brake Ohio Inc.(Ohio, USA)	Production facility	974	Apr., 2008	Mar., 2010
Nissin Brake Georgia, Inc.(Georgia, USA)	Production facility	183	Apr., 2008	Mar., 2010
Nissin Brake (Thailand) Co., Ltd. (Nakornratchasrima, Thailand)	Production facility	1,760	Apr., 2008	Dec., 2009
P.T. Chemco Harapan Nusantara (Jawa Barat Indonesia)	Production facility	495	Jan., 2009	Dec., 2009
Zhongshan Nissin Industry Co., Ltd.(Guangdong, China)	Production facility	380	Apr., 2008	Dec., 2009
Nissin Brake Vietnam Co., Ltd.(Vinh Phuc, Vietnam)	Production facility	237	July 2008	Dec., 2009
Nissin Brake India Private Ltd. (Rajasthan, India)	Production facility	324	Oct., 2008	Dec., 2009
Nissin Brake Do Brasil Ltda. (Amazon, Brazil)	Production facility	777	Apr. 2008	Dec., 2009