Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	175,981	167,276	5.2	-
Operating income	13,509	14,650	(7.8)	-
Ordinary income	14,866	10,490	41.7	-
Current net income	7,409	6,010	23.3	-
Automotive and general-purpose instrument business
Sales	128,588	124,979	2.9	-Sales at its Automotive and General-purpose Instrument Business increased year-on-year, thanks to greater sales of instruments for two-wheel vehicles, as well as greater sales of general-purpose instruments.
Operating income	11,989	13,819	(13.2)	-

New Company

<India>
-The Company announced on March 7 establishment of a new wholly-owned subsidiary "NS Instruments India Private Limited” in Chennai, Tamil Nadu in southern India for manufacture and sales of instruments used in vehicles and motorcycles. A new plant will be set up responding to growing production of vehicles and motorcycles in the southern region of India. It will go into operation in January 2014. With the construction of the new facility, Nippon Seiko is aiming to increase market share of instruments in India by 10 percent for vehicles and motorcycles respectively. The new plant will be built in Andhra Pradesh in the South with a total investment of 430 million rupees (approximately 688 million yen) within the next several years in land, buildings and equipment combined. Its construction is scheduled to begin in July 2012 and complete in July 2013. Production of instruments for vehicles will be enough to equip more than 600,000 vehicles a year in 2017 and instruments for motorcycles more than 1.5 million motorcycles. Production for motorcycles will begin in early 2013 at an outside facility prior to the inauguration of the new plant. (From an article in the Nikkan Jidosha Shimbun on March 8, 2012)

<China>
-The Company has announced that it will establish a new company to manufacture and sell automotive instrument products in Wuhan, Hubei Province, China. The new facility will become Nippon Seiki's second vehicle instrument company in China, following the Shanghai facility which opened in 1995. The Wuhan company will be created through a joint investment with Hubei Dongiun Industrial Trade Co., Ltd., which will hold a 25 stake in the new company, while Nippon Seiki will hold 75 percent. The two companies aim to establish the joint venture in June after obtaining approval of the Chinese government. Production is scheduled to begin in November 2012 with yearly production expected to reach 1 million units in 2016. The expansion is intended to increase Nippon Seiki's share of the Chinese automotive instrument market from the current 7 percent to 11 percent by 2016. The new company will be called Wuhan Nissei Display System Co., Ltd. It will be located at the Wuhan Economic and Technological Development Zone where automakers such as Honda and PSA Peugeot Citroen Group operate joint businesses. (From an article in the Nikkan Jidosha Shimbun on May 25, 2011)

Awards

-The Company announced that it has been honored with BMW's "Supplier Innovation Award" in the "Quality" category for its full-color head-up display. (From a press release on November 22, 2011)

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

R&D Expenses

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,019	2,771	2,725
Automobile and general-purpose instruments business	2,770	2,596	2,556

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

-Developing driving-support information display systems such as head-up displays, and developing next-generation HMI (Human Machine Interface) devices.
-Developing onboard optics and actuators.
-Developing onboard sensor devices.

-The Company and Ortus Technology Co., Ltd. succeeded in jointly developing active-type, mono-color organic EL displays. Since 2004, the Company has supplied organic EL displays for use in automotive meters and other products. The newly-developed products can offer high brightness, large screen, high definition and high dynamic range at the same time, all of which are difficult to achieve with conventional, passive-type organic EL displays. The Company expects that the new active-type displays will be widely used for automotive meters and other applications. The two companies will now work on establishing technology for mass producing these products on high-mix, low-volume production lines, and ensuring product reliability when used in vehicles. Ortus Technology, which is based in Tokyo, specializes in developing and manufacturing TFT/organic EL displays and other products. (From a press release on November 10, 2010)

Technology licensing-out Agreement

(As of Mar. 31, 2012)

Partner (Location)	Contract	Contract Start Date	Contract Period
JNS Instruments Ltd. (India)	Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles	Jul. 25, 1998	Automatically renews

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	6,679	5,193	4,270
Automotive and general purpose instrument business	5,466	4,091	3,357

Automotive and general purpose instrument business
-The Company invested in substrate mounting facilities, instrument assembly facilities, and in adding and improving plant buildings at NS West Inc. so as to prepare facilities for producing new products, increase its production capacity, and update facilities.

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
Headquarters NS Technical center （Niigata Pref., Japan）	Systems to improve both design quality and design efficiency	708	Jan. 2012	Mar. 2013
NS Advantech Co., Ltd. Head office Plant (Niigata Pref., Japan)	Facilities for forming and printing	174	Apr. 2012	Mar. 2013
NS West, Inc. Head office Plant (Hiroshima Pref., Japan)	Facilities for producing VS-2 units	163	Apr. 2012	Apr. 2012
UK-NSI Co., Ltd. (Worcestershire, UK)	Facilities for producing boards substrates	199	Apr. 2012	Aug. 2012
Thai Nippon Seiki Co., Ltd. (Chonburi, Thailand)	Facilities for producing boards substrates	174	Jan. 2012	Oct. 2012
P.T. Indonesia Nippon Seiki (Banten, Indonesia)	Facilities for producing boards substrates	153	Jun. 2012	Dec. 2012
	Facilities for producing liquid-fuel sensors	103	Feb. 2012	Aug. 2012
Shanghai Nissei Display System Co., Ltd. （Shanghai, China）	Facilities for producing boards substrates	122	Jan. 2012	Feb. 2012