Financial overview

( in millions of JPY )

-	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	167,296	197,013	(15.1)	-
Operating income	10,382	21,351	(51.4)	-
Ordinary income	12,896	17,996	(28.3)	-
Current net income	8,245	11,153	(26.1)	-
Automotive and general-purpose instrument business
Sales	117,772	134,291	(12.3)	Sales of automotive, motorcycle, and general-purpose instruments decreased from a year ago.
Operating income	10,516	18,104	(41.9)	-

Recent developments outside Japan

<Mexico>
- In April 2008, the Group established two new companies to manufacture and sell automotive instruments in Mexico, marking its first venture into the country.

- Setting up the two facilities in Mexico will supplement the Group's operations in the Americas, which now consist of a production facility and a sales office in the US, and two production facilities in Brazil. The Company's decision for creating these new companies was based on a projected increase in demand not only in Mexico but also in other countries in the Americas over the medium term. The names of the two companies are Nippon Seiki de Mexico S.A. de C.V. and Nissei Advantech Mexico S.A. de C.V.

*The above information is based on a press release issued by the Company in April 2008. As of May 2009, however, the Company has since decided that Nippon Seiki de Mexico S.A. de C.V. will share its production facility with Nissei Advantech Mexico S.A. de C.V. , planning for a launch of commercial production in March 2010. The postponement is intended to cut down capital spending. The Group will reschedule the plant construction project in accordance with the pace of recovery in the North American market.

>>> See Investments for more details

<Taiwan>
The Company has raised its stake in Tatung Precise Meter Co., Ltd. in Taiwan from 49% to 80%, making the Taiwanese entity its subsidiary effective October 1, 2008. Tatung Precise Meter, a joint venture between Nippon Seiki and Taiwan-based Tatung Co., engages in the manufacturing and sales of automobile and motorcycle meters. The Company, playing a leading role in the management of Tatung Precise Meter, intends to raise its share in the Taiwanese automobile meter market from 28% in 2007 to 35% in 2010. (From a press release on Oct. 15, 2008)


Outlook for FY2009 ending in March, 2010
- Sales of overall instrument business is projected to total 80.6 billion yen, a decrease of 37.1 billion yen from FY2008's result.
- According to the Company's projection, sales of automotive instruments will decline globally. Sales of motorcycle instruments, on the other hand, are expected to rise in China, but decrease in other markets.

Production volume for automotive instruments

(in thousand units)

	Forecast	Actual result	Actual result
	FY2009	FY2008	FY2007
Asia	2,070	2,100	1,640
Europe	620	660	720
North America	1,460	1,640	2,030
Japan	2,280	3,210	3,840
Total	6,430	7,610	8,230

- In order to cut down its capital spending, the Company postponed part of its plant construction project at Nippon Seiki de Mexico S.A. de C.V. , which was established in 2008.

R&D Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Overall	3,286	3,315	3,403
Automobile and general-purpose instruments business	3,070	3,021	2,803

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

Development focus is set on the following:
- HMI (Human Machine Interface) such as heads-up displays, and information display systems that provide assistance to drivers
- Onboard optics and actuators
- Onboard sensor devices

Licensing of technology ( As of Mar. 31, 2009)

Partner	Location	Contract	Contract Period
JNS Instruments Ltd.	India	Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles	2005,03.07 - 2011.03.06

 

Capital Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Overall	7,454	8,234	11,847
Automotive and general purpose instrument business	5,699	6,565	7,979

Automotive and general purpose instrument business
The Company invested in board-mounting facilities and instrument-assembly facilities to prepare for the production of new vehicle models, expand its production capacity, and upgrade facilities. Another target for investment was a new plant construction project at Indonesia Nippon Seiki.


Investments outside Japan

-Mexico
In April 2008, the Company and NS Advantech Co., Ltd., one of its group companies, established the following two new companies to manufacture and sell automotive instruments in Mexico.

1. Nippon Seiki de Mexico S.A. de C.V. (NSM)*
- NSM is Nippon Seiki's wholly owned subsidiary with a registered capital of 50,000 pesos. In late April 2008, Nippon Seiki will increase its investment to 27 million pesos.
- Plant construction is scheduled to begin in February 2009 and be completed in November 2009. Launch of commercial production is planned to take place in September 2010. The Company plans to invest approximately 2.2 billion yen in this new subsidiary over the next few years.
- NSM will manufacture and sell automotive instruments mainly for the Mexican market. It will also supply board assemblies to its automotive instrument plant in the US. By 2014, its annual production volume is planned to reach 300,000 units and sales are expected to total approximately 5 billion yen.

2. Nissei Advantech Mexico S.A. de C.V. (NSVM)
- NSVM is capitalized at 50,000 pesos, of which 90 percent was invested by NS Advantech and the remaining 10 percent by Nippon Seiki. In late April 2008, its capital is planned to be increased to 35 million pesos.
- Plant construction is scheduled to begin in November 2008 and be completed in June 2009. Launch of commercial production is planned to take place in September 2010.
- NSVM will manufacture and sell processed plastic components such as instrument pointers and printed dials for automotive instruments.
- In addition to supplying its products to NSM and the Nippon Seiki's production facilities in the U.S. and Brazil, NSVM will sell its components to other auto parts suppliers to expand its business. Its sales target for 2014 is set at 1.6 billion yen.

*The above information is based on a press release issued by the Company in April 2008. As of May 2009, however, the Company has since decided that Nippon Seiki de Mexico S.A. de C.V. will share its production facility with Nissei Advantech Mexico S.A. de C.V. , planning for a launch of commercial production in March 2010. The postponement is intended to cut down capital spending. The Group will reschedule the plant construction project in accordance with the pace of recovery in the North American market.

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
UK-NSI Co., Ltd. (Worcestershire, UK)	Printed circuit board assembly facility	116	Jan., 2010	Jan., 2010