Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change(%)	Factors
Overall
Sales	22,981	26,213	(12.3)	-
Operating income	1,318	2,174	(39.4)	-
Ordinary income	1,184	2,198	(46.1)	-
Net income	358	1,634	(78.1)	-
Automotive Component Business
Sales	17,331	17,390	(0.3)	-The growing slump in global auto sales caused a sudden decline in orders starting from the latter half of the third quarter and continuing through and beyond the fourth quarter. Sales and income declined, for its major products such as control valves for the Subaru Legacy, control valves for mini-vehicles, and control valves for small-sized vehicles for JATCO. This was in contrast to strong sales of these products in the first half of the third quarter.
Operating income	1,343	1,356	(1.0)

Joint-ventures
-The Company announced that it will establish some new companies in Vietnam. One in Ho Chi Minh, Vietnam is Nidec Tosok Akiba, a joint venture with Akiba Die Casting Co., Ltd. that is located in Takasaki City, Gunma, Japan. This new company, which will be established on June 1, 2009, is being built purposely to supply automotive die-cast products Nidec Tosok (Vietnam) and zinc die-cast products to other customers. The joint venture is capitalized at 500 million yen, of which 85 percent is being invested by the Company and the remaining 15 percent by Akiba Die Casting. (From an article in the Nikkan Jidosha Shimbun on Mar. 17, 2009)

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Overall	858	848	798
Automotive parts	617	609	566

R&D Activities
Automotive parts
-The Company's R&D activities on automotive parts were focused on making  products capable of responding to progress being made in the area of electric control technology. The Company is working to meet the needs for not only more comfortable and safer vehicles but also for more fuel efficient and environmentally friendly vehicles in response to increased sales of hybrid and electric vehicles.

1.The Company added more and improved functions to existing products such as control valve assemblies for automatic transmissions, CVTs, and magnet valves.

2. The Company developed environmentally friendly, energy-saving products such as magnetic control valves for diesel common-rail system engines that comply with European emission standards. These valves, which are based on existing magnetic valves, offer a more precise and accurate level of flow.

3. The Company created a new area of business based on electronic control and inverter technology, developing products for hybrid vehicles such as electric oil pumps for idle stop systems.


Technological Licensing-in Agreements (As of March 2009) 

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 2009) 

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)

	FY2008	FY2007	FY2006
Overall	2,392	1,469	3,207
Automotive parts	2,197	1,246	3,002

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

(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	250	2009.04	2010.03	-
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Manufacturing equipment for automotive parts	2,188	2009.04	2010.03	8 percent  (The Company is investing to set up lines for new products, increase production volume, and conduct production in-house)