Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	159,098	164,733	(3.4)	-Business was negatively affected by the reduction in volume of finished vehicles by Japanese OEMs because of the Great East Japan Earthquake and the flooding in Thailand.
Operating income	9,474	13,058	(27.4)	-
Ordinary income	8,717	12,413	(29.8)	-
Current net income	4,278	6,638	(35.6)	-

Recent Development Outside Japan

-The Company will increase local procurement of parts and materials at its overseas plants. By the end of FY 2013, it aims to raise its local content ratios by 10 percentage points in the regions with higher local content ratios including the U.S., China and ASEAN countries, and by 20 percentage points in Latin America and India, where it plans to further expand businesses. It will laterally spread the know-how in motorcycle parts production, whose current local content ratio is high, to automotive parts production and increase items to be manufactured in-house. In order to achieve the targets, it plans to further strengthen research activities on local firms. Nissin Kogyo aims to raise its competitiveness, while there is an urgent need to respond to the shift in powertrains for HV, EV and others as well as to respond to lower priced vehicles for the growing emerging markets. (From an article in the Nikkan Jidosha Shimbun on June 4, 2011)

<UK>
-Showa Corp. and the Company announced on Jan. 31 that they will dissolve their joint venture in the U.K., Nissin Showa UK Ltd. (NSUK), in March 2013. They have reached the decision because of its poor sales in Europe and 2012 year-end completion of production of parts for current vehicle models. (From an article in the Nikkan Jidosha Shimbun on February 2, 2012)

<Asia>
-The Company is set to further heighten local procurement ratio at its production facilities in Asian countries, including Thailand, Indonesia and India, with the aim of enhancing a competitive edge in terms of cost for not only motorcycle parts, but also automobile components. While making aggressive marketing efforts to broaden the customer base targeting local production facilities of Japanese automakers other than Honda and other U.S. and European automakers, the Company is willing to respond to requests for new products by high product quality and cost advantages through increased local procurement. (From an article in the Nikkan Jidosha Shimbun on September 8, 2011)

Joint Venture

-The Company announced on Jan. 31 establishment of a joint venture company in Indonesia with Alcar Holding GmbH of Austria, which will supply cast wheels for automobiles and motorcycles. Nissin's subsidiary in Indonesia, PT. Chemco Harapan Nusantara, and Alcar's subsidiary in Indonesia, PT Alcar Wheels Indonesia, will set up PT. Alcar Chemco Indonesia and build a plant in the Karawang International Industrial City in Karawang Regency. The Alcar Group will hold 51% and the Nissin Group will hold 49% of its capital of US$20 million, approx. 1.6 billion yen. (From an article in the Nikkan Jidosha Shimbun on February 2, 2012)

Contracts

-The Company announced that it was awarded a contract for the rear drum in brake assembly for the new Fuji Heavy Industries' Subaru "Impreza Sport" 5-door sport wagon and Impreza G4 4-door sporty sedan. The Company has started series production at its Tobu plant in Tomi City, Nagano prefecture, Japan. The Impreza series are expected to go on sale in December 2011. Fuji Heavy Industries plans to sell 2,200 vehicles per month. (From a press release on December 2, 2011)

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

Outlook for FY ending Mar. 31, 2013

(in million JPY))

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Result)	Rate of Change (%)
Sales	181,000	159,098	13.8
Operating income	14,500	9,474	53.1
Ordinary income	16,000	8,717	83.5
Net income	8,700	4,278	103.4

Outlook for Fiscal Year ending Mar. 31, 2014

-The Company has set a target of increasing its yearly sales to 205 billion yen by FY2013 (year ending March 2014), which will break its highest-ever record of 202.5 billion yen achieved in FY2007. The Company intends to accomplish this goal by stepping up sales of newly developed technologies and high value-added products in Japan and North America, while focusing on production of widely-used, low-cost products especially for the emerging markets in Asia and South America, aiming to meet local demand in a flexible manner. In preparation for a planned production hike, the Company is going to invest as much as 30 billion yen in its production facilities worldwide over the next three years through March 2014. Its major product strategies include development of lightweight brake systems for automobiles, which offer reduced driving resistance. At the same time, the Company is looking to boost sales of lighter and more price competitive components for low-cost vehicles targeted at the emerging markets. In terms of production, the Company will manufacture lightweight aluminum knuckles and low-drag calipers, as well as other high value-added products like regenerative brake systems used in hybrid and electric vehicles in Japan and North America. On the other hand, in Asia and Brazil, it will produce less expensive products, including motorcycle parts. In line with its product strategy, the Company is poised to spend heavily on plants and equipment. Out of the 30 billion yen investment for the three-year period, 11 billion yen will be spent during this term. The Company has allocated 1.9 billion yen to Japan, 3.4 billion to North America, and 5.1 billion yen to Asia. By clearly defining the functions of respective operations, the Company aims to meet the needs of each market more quickly, and thereby increase sales. (From an article in the Nikkan Jidosha Shimbun on August 16, 2011)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	6,283	6,165	5,828

R&D Structure

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

Japan
-With a global perspective in mind, the Company is developing products, materials, and manufacturing methods in the pursuit of making its products designed mainly for two- and four-wheel vehicles lighter, smaller, more fuel efficient, safer and more comfortable. These include basic brake systems, mechatronics-based automatic control-systems, and aluminum products, which form the backbone of its product range.
-The Company is working to develop products, materials, and manufacturing methods that contribute to reducing CO2 emissions.

North America
-The Company focused on developing products that meet the market needs in North America, such as basic braking systems, mechatronic automatic control systems, and aluminum products.

Major R&D Achievements in Automobile Parts

Development of an automatic control mechatronics system
-The Company's new-type VSA (Vehicle Stability Assist), which it recently developed, is already being equipped on one vehicle model. This VSA, which is compact and lightweight, enhances safety and provides ease of mind. It includes an added, new function, i.e., a CAS (Creep Aid System) that prevents the vehicle from drifting when it is in the idling stop mode.
-The Company developed an entirely new type of VSA that reduces total costs by incorporating the Yaw/G sensor into the main unit. the Company has started producing this new VSA for the Honda Civic. the Company added a new, indirect air pressure sensing function for tires with European specifications.
-The Company is delivering a new regenerative braking system to Honda's Civic Hybrid. Compared to conventional braking systems, this one is lower in cost and offers greater commercial appeal.

Basic brake development
-To respond to the requirement for lower fuel consumption, the Company optimized and expanded the development of products for brakes, such as a plunger master cylinder that is more compact, lighter in weight, and has less drag torque. Also, the Company is lowering costs and producing more products locally at its global sites.
-Four types of the Company's low-drag calipers are being equipped on vehicle models. As a result, the Company began commercial production of these at its facilities also outside Japan. the Company started producing one of the types of calipers with the new design in North America.
-Following the production of plunger master cylinders in Japan, the Company is producing two types in North America and one type in China.
-Two kinds of the Company's newly developed rear parking-brakes and one type of rear drum-brakes are being installed by two OEMs. the Company is planning to increase the application of these to new derivative models.

Development of weight reduction technology
-The Company's lightweight, aluminum engine-mounting brackets are being installed on five vehicle models and its aluminum knuckle is being installed on two models.

Product Development

Low drag brake calipers
-The Company will expand the lineup of low drag brake calipers, which dramatically reduce friction resistance between a brake pad and a disc when the vehicle is in a normal driving mode. The Company thereby intends to increase supply of these products for installation on a wider variety of vehicles, including new models coming to the market in 2012. Greater variations of the high value-added products, which contribute to heighten fuel economy, can be used on a range of vehicles from mini- and compact-vehicles to large passenger vehicles. In addition to manufacturing the calipers in Japan, Nissin Kogyo is considering launching their production also in North America, while stepping up marketing to European and U.S. automakers. In conventional disk brake systems, the pad and the disc keep in contact position even in a normal driving mode, generating resistance. By adding a return mechanism to separate the pad from the disc efficiently and making some other improvements, the Company's engineers were successful in reducing the resistance level by 85 percent from Nissin Kogyo's existing technology. The Company says the reduction will lead to about a 1 percent upgrade in fuel economy, though the percentage shall differ by vehicle weight and driving pattern. (From an article in the Nikkan Jidosha Shimbun on January 23, 2012)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan	1,530	1,188	-
North America	3,112	2,584	-
Asia	5,606	2,775	-
South America/Europe	755	646	-
Adjustment	(132)	(317)	-
Total	10,872	6,876	6,076

Japan
-The Company invested to improve and enhance its production capacity.

-The Company announced on December 20 that it will postpone a plan to build a new plant in Tomi City, Nagano Prefecture for some three years. the Company has determined it difficult to go ahead with the project as originally planned in view of the structural changes in the global economy, the yen value staying at high levels and a drastic upheaval in the business environment surrounding the automotive industry. Whereas, the Company says its position of exploring new business opportunities stays unchanged, believing the new facility will play an important role in reorganizing the business structure and pursuing strategy for growth in Japan and abroad and placing in order the environment for developing new advanced and creative technologies and production engineering. (From an article in the Nikkan Jidosha Shimbun on December 21, 2011)

North America
-The Company invested to prepare for production in response to new product models, as well as purchase land nearby for its plant.

Asia
-In responding the growing Asian market, the Company continued investing to expand its production capacity as well as prepare for the launch of new product models.

South America/Europe
-The Company invested to renew dies and increase production capacity.

Planned Capital Expenditure

(As of Mar. 31, 2011)

Company or Office Name	Facility type	Estimated amount of investment (in millions JPY)	Start	Scheduled Completion
Ueda Plant (Ueda City, Nagano Pref.)	Production facilities for automobile parts	383	Apr. 2011	July, 2013
Tobu Plant (Tomi City, Nagano Pref.)	Production facilities for automobile parts	593	July, 2011	June, 2013
Naoetsu Plant (Joetsu City, Niigata Pref.)	Production facilities for automobile and motorcycle parts	361	Oct. 2011	Mar. 2013
Nagano Development Center (Tomi City, Nagano Pref.)	R&D facilities	509	Nov. 2011	Mar. 2013
Nissin Brake Ohio Inc. (Ohio, USA)	Production facilities for automobile and motorcycle parts	2,947	Oct. 2011	Mar. 2013
Nissin Brake Georgia Inc. (Georgia, USA)	Production facilities for automobile and motorcycle parts	551	Apr. 2011	Mar. 2013
Nissin Brake (Thailand) Co., Ltd. (Nakornratchasrima, Thailand)	Production facilities for automobile and motorcycle parts	1,296	July, 2011	Dec. 2012
P.T. Chemco Harapan Nusantara (Cikarang, Indonesia)	Production facilities for automobile and motorcycle parts	3,297	Jan. 2012	Dec. 2012
Zhongshan Nissin Industry Co., Ltd. (Guangdong, China)	Production facilities for automobile parts	2,476	Oct. 2011	Dec. 2012
Nissin Brake Vietnam Co., Ltd. (Vinh Phuc, Vietnam)	Production facilities for automobile and motorcycle parts	459	Jan. 2011	Dec. 2012
Nissin Brake India Pvt. Ltd. (Rajasthan, India)	Production facilities for automobile and motorcycle parts	383	Apr. 2011	Dec. 2012
Nissin Brake Do Brasil Ltda. (Manaus-Am, Brazil)	Production facilities for automobile and motorcycle parts	608	July, 2011	Dec. 2012