Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change(%)	Factors
Overall
Sales	24,105	22,981	4.9	-
Operating income	2,638	1,318	100.1	-
Ordinary income	2,293	1,184	93.6	-
Net income	321	358	(10.2)	-
Automotive Component Business
Sales	20,966	17,331	21.0	1)
Operating income	2,937	1,343	118.7	-

Factors
1)
Automotive Component Business
-The Automotive Component Division generated its largest sales ever, in the third quarter of FY2009. Then in the fourth quarter of 2010, it continued to enjoy record sales. Buoyed by eco-car incentive programs introduced in many countries, new vehicle sales started showing a remarkable recovery in the second quarter. Supported by this global trend, there was strong demand for control valves used in continuously variable transmissions being installed on compact vehicles made by Japanese automakers. The volume of requirements for control valves used in Jatco's and Fuji Heavy Industries' advanced CVTs for vehicles sold in both North America and China was also greater than expected. In the second half of the year, sales fully recovered to the same level as that prior to the financial crisis that hit the global market in the third quarter of 2008. This was followed by increased requirements from car manufacturers that increased their production volume in the fourth quarter, which subsequently boosted the division's sales to the all-time high figure.

Contracts

-The Company has developed control valves for "Lineartonic", a newly introduced constantly variable transmission (CVT) by Fuji Heavy Industries Ltd. for the Subaru Legacy, which debuted in May 2009. Nidec Tosok (Vietnam) Co., Ltd. (NTVC) has been supplying the valves for the model. (From a press release on Jun. 30, 2009)

-The Company announced that it has started preparations for the upcoming shipment of its CVT control valves to JATCO. These are for the next generation CVTs to be installed in Nissan vehicles. Nidec Tosok Vietnam Corporation (NTVC) will be producing the valves. The Company will also get prepared for the delivery of linear solenoid valves - the technology the company developed jointly with JATCO. (From a press release on Aug. 25, 2009)

Recent Developments Outside Japan

<China>
-The Company announced that it will start manufacturing and selling automotive parts in China. It plans to increase capital of its subsidiary there in the measuring equipments business to begin manufacturing electromagnetic valves for automatic transmissions and control valves for continuously variable transmissions (CVT). Its operation is scheduled to commence in June 2011. Having the production base close to the clients is expected to maximize its competitiveness. The new plant will output electromagnetic valves, control valves, spool valves and circuit boards at the site of 70,000 m2. The plant will also prepare itself for producing products for electric vehicles (EV) in view of possible EV production there in the future. (From an article in the Nikkan Jidosha Shimbun on Jan. 30, 2010)

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	719	858	848
Automotive parts	533	617	609

R&D Activities

Automotive Component Business
-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. It is also providing optimized business solutions and technical support to emerging markets, where the use of vehicles is rapidly growing.

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 Mar. 31, 2010)

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 Mar. 31, 2010)

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)

	FY2009	FY2008	FY2007
Overall	2,553	2,392	1,469
Automotive parts	2,494	2,197	1,246

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
				From	To
Nidec Tosok Headquarters Plant	Zama City, Kanagawa Prefecture, Japan	Equipment for manufacturing automotive parts Equipment for manufacturing measuring devices	427	2010.04	2011.03
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	3,827	2010.04	2011.03
Nidec Tosok Akiba (Vietnam) Co., Ltd.	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	328	2010.04	2011.03
Nidec Tosok System Engineering (Zhejiang) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts Equipment for manufacturing measuring devices	2,556	2010.04	2011.03