Financial Overview

(in million JPY)	FY2007	FY2006	Rate of Change	Factors
Overall
Sales	197,013	193,178	2.0%	-
Operating income	21,351	19,703	8.4%	-
Ordinary income	17,996	20,770	(13.4%)	-
Current net income	11,153	11,840	(5.8%)	-
Automotive and general-purpose instrument business
Sales	134,291	127,207	5.6%	Sales of automotive instruments in Japan, North America, Europe and Asia increased.
Operating income	18,104	17,085	6.0%	Operating income increased due to its global productivity improvement activities.

Recent developments outside Japan

-Brazil

The Company prepared for the opening of a new plant at its Brazilian facility producing automotive instruments, NS Sao Paulo Components Automotivos Ltda. The new plant started commercial production in January 2008, supplying products to Honda. 

-Mexico

In April 2008 the Company decided to establish two new companies to manufacture and sell automotive instruments and related components under the aim of  enhancing its production capacity and becoming more cost competitive in the Americas.

-China

Nippon Seiki Engineering Plastic (Nantong) Co., Ltd., which is a plant that colors resin materials, will construct an additional plant building to enhance the automotive instrument business and expand the plastic molding business. The company started constructing the new building in January 2008, getting it ready for a production launch set for August 2008.

>>> See Investment for more details

-Europe

The Company started supplying heads-up displays for the PSA/Citroen C6; and combination meters for the C5. The Company plans to increase its business with PSA after FY2008, which will end March 31, 2009.


Activities to win new orders

The Company will strengthen marketing of its automotive safety system using a 360-degree ultra compact camera module. It is committed to supply this advanced driver support system to the auto industry as early as possible. (From an article in the Nikkan Jidosha Shimbun on Jun.12, 2007)

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R&D Structure

The Company has an R&D Center and a Technical Center in Nagaoka City, Niigata prefecture.

The Company was engaged in the development of vehicle equipment and other diversified products through close collaboration between the R&D Center, the development and design department of each business segment, and the production technology department.

R&D Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	3,315	3,403	3,394
Automobile and general-purpose instruments business	3,021	2,803	2,585

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

The Company is engaged in:

- developing products for HMI (Human Machine Interface) such as heads-up displays. Also developing technology on information display systems that provide assistance to drivers.

- developing technology on onboard optics and actuators

- developing onboard sensor devices

New Product Development

The Company will strengthen marketing of its automotive safety system using a 360-degree ultra compact camera module. This simply designed safety equipment is able to capture a 360-degree view at all times, and has an efficient image processing system, which allows the driver to have clear-cut images of specific zones by checking the display on an in-vehicle monitor. It is committed to supply this advanced driver support system to the auto industry as early as possible. The compact camera uses its proprietary aspherical plastic lens, which achieves a horizontal angle of 360 degrees and a depression angle of 65 degrees. The small 13.2 mm (diameter) lens can be easily installed in the compact camera. (From an article in the Nikkan Jidosha Shimbun on Jun. 12, 2007)

Licensing of technology ( As of Mar. 31, 2008)

Partner	Location	Contract	Contract Period
Tatung Precise Meter Co., Ltd.	Taiwan	Technical licensing on four- wheeled vehicle meters	5 years from 2006.02.26
JNS Instruments Ltd.	India	Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles	6 years from 2002.12.30

Capital Expenditure

(in million JPY)	FY2007	FY2006	FY2005
Overall	8,234	11,847	8,848
Automotive and general purpose instrument business	6,565	7,979	7,513

Automotive and general purpose instrument business (FY2007)

The Company invested in board-mounting facilities, printing facilities, and instrument-assembly facilities at Thai Nippon Seiki Co., Ltd. to prepare for the production of new vehicle models, expand its production capacity, and upgrade facilities..

Investments outside Japan (FY2007)

-China

Nantong NS Advantech Co., Ltd., which is a company engaged in coloring resin materials in China, will construct an additional plant building to enhance the automotive instrument business and grow the plastic molding business. The company planned to start construction of the new building in January 2008, with operations set to begin in August 2008. The Company will initially invest about 400 million yen on the building and production facilities. The new plant will manufacture processed plastic components such as instrument pointers and printed dials. As a result, the new plant will have integrated production operations that enables it to not only color and process plastic materials but also manufacture processed components. Nantong NS Advantech expects sales of 600 million yen in FY2007 and has plans to increase sales to 1.1 billion yen in FY2010. (From a press release on Dec. 25, 2007)

-India

The Company will construct a new building at a joint-venture company, JNS Instruments Ltd., to increase production of automotive instruments. Construction will be completed in December 2008.

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
Nihon Seiki Co., Ltd. Head office Plant (Niigata Pref., Japan)	HUD manufacturing facility	73	Dec. 2007	Jul. 2008
NS Advantech Co., Ltd. Head office Plant (Niigata Pref., Japan)	Forming and printing facility	198	Apr. 2008	Mar. 2009
NS Advantech Co., Ltd. Nagaoka Plant (Niigata Pref., Japan)	Coloring facility	191	Apr. 2008	Mar. 2009
YNS Inc. Head office Plant (Hiroshima Pref., Japan)	Instrument assembly facility	158	Jun. 2008	Mar. 2009
	Board mounting facility	103	Aug. 2008	Jan. 2009
UK-NSI Co., Ltd. (Worcestershire, UK)	Instrument assembly facility	76	Apr. 2008	Aug. 2008
New Sabina Industries Inc. (Ohio, USA)	Instrument assembly facility	80	Jan. 2009	Mar. 2009
Shanghai Nissei Display System Co., Ltd. (Shanghai, China)	Board mounting facility	70	Jan. 2008	Dec. 2008