Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	220,144	191,021	15.2	-
Operating income	18,215	9,767	86.5	-
Ordinary income	23,029	15,611	47.5	-
Current net income	13,908	8,231	69.0	-
Automotive and general-purpose instrument business
Sales	167,820	140,014	19.9	-Sales of automotive instruments, motorcycle instruments, and general purpose instruments increased
Operating income	17,034	8,638	97.2	-

Recent Development Outside Japan

<USA>
Starts producing HUD in USA
-The Company will start producing Head-Up Displays (HUD) in the U.S. during 2013. The company will install a dedicated HUD assembly line in its Ohio plant which currently produces gauges for motorcycles and automobiles. HUDs are currently supplied by the company’s production base in Japan. The Company plans to produce 100,000 HUD units per year in the U.S. in 2014 and 2015. HUDs present data such as speed on a vehicle’s windshield and are currently only installed on luxury models. In order to meet an increase in orders for HUDs in the U.S., the Company will gradually shift new orders to on-site production. (From an article in the Nikkan Jidosha Shimbun on August 22, 2013)

<Mexico>
-The Company will start producing automotive instrument clusters in Mexico by the end of 2013. The Company already produces substrates and other components for instrument clusters in the country. In order to respond to the needs of Japanese automakers that are increasing their own production in Mexico, the Company decided to establish an integrated manufacturing structure by adding assembly operations to its existing facility. Currently, the Company supplies its U.S.-made instrument clusters to customers in Mexico. The supplier hopes the expansion will significantly enhance its presence in the North American market. (From an article in the Nikkan Jidosha Shimbun on October 1, 2013)

-The Company has established a new sales subsidiary for automotive instrument clusters and other parts in Guadalupe, Nuevo Leon, Mexico. The new subsidiary is named Nissei Display Mexico, S.A de C.V. Nippon Seiki already has two plants in Mexico. Adding the local sales company will allow Nippon Seiki to supply fully-assembled instrument clusters and parts directly to Japanese automakers' plants in Mexico, which are now increasing production. (From an article in the Nikkan Jidosha Shimbun on September 6, 2013)

<Vietnam>
-The Company has opened a software design and development base in Danang, Vietnam. The Company currently develops software in Japan, U.S. and Europe. By opening a new base in Vietnam, the company hopes to enhance its cost competitiveness and expand its business. The company invested USD 1 million (JPY 98 million) to establish a wholly-owned subsidiary, Danang Nippon Seiki Company Limited. The new subsidiary will hire local engineers who will develop software based on specifications and designs determined in Japan. (From an article in the Nikkan Jidosha Shimbun on October 18, 2013)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	3,616	3,401	3,019
-Automobile and general-purpose instruments business	3,416	3,155	2,770

R&D Structure

-R&D activities are overseen by the R&D Center in Nagaoka, Niigata Prefecture; and NS Technical Center, also in Nagaoka, which collaborate with the R&D functions at each business creating mass-marketed products, conducting design activities, and developing production technology.

-The Tokyo Technical Center was opened in October 2012 in Taito Ward, Tokyo, to conduct design activities.

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 smartphone technology.
-Developing on-board optics and actuators.
-Developing on-board sensor devices.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	12,061	9,891	6,679
-Automotive and general purpose instrument business	9,520	8,127	5,466

Automotive and General Purpose Instrument Business
-The company made capital investments to better respond to new models and expand its production capacities and renew facilities, investing in facilities to manufacture substrate boards and assemble meters and instruments.
-NS Instruments India Private Ltd., which was set up in February 2012, began the construction of its plant building in August the same year. It is scheduled for completion in October 2013, with plans to launch commercial production of passenger-car meters and instruments from January 2014.

Planned Capital Investment (Meters for automobile and general-purpose use) (As of Mar. 31, 2014)

Name of company or facility (Location)	Purpose	Planned total investment (in million JPY)	Starting	Planned Completion
Head office Plant (Nagaoka City, Niigata Pref.)	Testing building	960	Seｐ. 2013	Jan. 2014
Takami Plant and NS Technical Center (Nagaoka City, Niigata Pref.)	Production equipment for optical components	265	Mar. 2014	Jan. 2015
Takami Plant and NS Technical Center (Nagaoka City, Niigata Pref.)	Production equipment for head-up displays	154	Feb. 2014	Jun. 2014
NS Advantech Co., Ltd. Head office Plant (Ojiya City, Niigata Pref.)	Forming and printing machines	397	Apr. 2014	Mar. 2015
NS Advantech Co., Ltd. Nagaoka Plant (Nagaoka City, Niigata Pref.)	Coloring equipment	269	Apr. 2014	Mar. 2015
NS West, Inc. Head office Plant (Hiroshima Pref., Japan)	Board mounting equipment	310	Apr. 2014	Jan. 2015
	Manufacturing equipment	189	Apr. 2014	Feb. 2015
Nippon Seiki de Mexico S.A. de C.V. (Nuevo Leon, Mexico)	Board mounting equipment	116	Feb. 2014	Jun. 2014
Nissei Advantech Mexico S.A. de C.V. (Nuevo Leon, Mexico)	Forming machines and new plant building	420	Feb. 2014	Seｐ. 2014
Shanghai Nissei Display System Co., Ltd. (Shanghai, China)	Forming machines and board mounting equipment	371	Jan. 2014	Oct. 2014