Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of Change(%)	Remarks
Overall
Sales	26,213	23,430	11.9	-
Operating income	2,174	1,809	20.1	-
Ordinary income	2,198	1,953	12.5	-
Net income	1,634	1,182	38.1	-
Automotive Component Business
Sales	17,390	15,815	10.0	-Sales increased year-on-year, thanks to strong demand for controller valves used in the Subaru Legacy; and other products.
Operating income	1,356	1,386	(2.2)	-Operating income decreased slightly year-on-year. The reason for the drop was the Company's having had to make initial investments in advance, and also having had to spend a great deal on a program to produce CVT control valves and electromagnetic valves for use in large diesel engine vehicles, which will debut in January 2008.

Highlights
-The Company will greatly expand its core business of transmission parts. The company has received new orders from Nissan Motor Co., Ltd. and Fuji Heavy Industries Ltd. for key parts of their new belt-type continuously variable transmissions (CVTs), whose supply will start by 2009. On this occasion, the Company will make full efforts including thorough productivity improvement at its flagship plant in Vietnam to raise the automotive business sales to approx. 22 billion yen as early as FY 2009 from the current 15 billion yen (estimated for FY 2007). In the beginning, the company will strengthen its cooperation among its head office, Technical Center and the Vietnam plant to optimize local procurement in Vietnam as well as maximizing VA (value analysis) effects in the design processes. It aims to almost double the sales of control valves and to expand the overall automotive parts sales by almost 50 percent as early as 2009. (From a story in the Nikkan Jidosha Shimbun on Oct. 16, 2007)

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Overall	848	798	666
Automotive parts	609	566	395
Motors	-	-	42

Automotive parts
-To deal with the needs for comfortable, safe, fuel efficient, and environmentally friendly automobiles, the Company conducted R&D activities on electronic control technologies. The Company worked to increase its new products and forge technical developments in automatic transmissions, continuous variable transmissions and air-hydraulic control actuators that are capable of satisfying demands for high performance, high quality and global price competitiveness.

-To improve added value, the Company will complete the development and commercialization of electronic-hydraulic control systems for automatic transmissions and CVTs. Furthermore, the Company is concurrently conducting multiple development activities strengthening its development capabilities which includes conducting joint development activities with other companies.


Technological licensing-in agreements (As of March 2008) 

Company Name	Partner	Country	Contractual Coverage	Contract Period
Nidec Tosok	Nissan	Japan	Provision of technical information on image processing equipment and licensing of manufacturing and distribution rights	6 years from June 28, 1993. (Automatic renewal)

Technological licensing-out agreements (As of March 2008) 

Company Name	Partner	Country	Contractual Coverage	Contract Period
Nidec Tosok	Telster Engineering	South Korea	Provision of technical information and expertise to manufacture column type air micrometers, AE converters, and column type electric micrometers; and licensing of manufacturing and distribution rights	Five years from December 21, 2000 (Automatic renewal)
Nidec Tosok	Kefico	South Korea	Provision of technological information and expertise to manufacture RXC wiring plates and licensing of manufacturing and distribution rights	Eight years from March 24, 2003
Nidec Tosok	Unick	South Korea	Provision of technological information and expertise to manufacture proportional valves for six-speed transmissions and licensing of manufacturing and distribution rights	Five years from May 26, 2007 (Automatic renewal)

Capital Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Overall	1,469	3,207	1,081
Automotive parts	1,246	3,002	572
Motors	-	-	201

Automotive parts
-The Company invested mainly in machines and equipment , so it could transfer production to its subsidiary in Vietnam and also win new orders.

New Facilities (Automotive products)

(in millions of JPY)

Name	Location	Type of facility	Estimated amount of investment	Project Period		Planned increase in capacity
				From	To
Nidec Tosok  Headquarter Plant	Zama City, Kanagawa Prefecture	Manufacturing equipment for automotive parts	572	2008.04	2009.03	-
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Manufacturing equipment for automotive parts	2,944	2008.04	2009.03	12.6 percent  (The Company is investing to set up lines for new products, increase production volume, and conduct production in-house)