Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)	Factors
Overall
Sales	29,946	24,105	24.2	-
Operating income	4,009	2,638	51.9	-
Ordinary income	4,033	2,293	75.8	-
Net income	2,366	321	637.0	-
Automotive Component Business
Sales	26,172	20,966	24.8	1)
Operating income	3,760	2,937	28.0

Factors
1)
Automotive Component Business
-Both sales and profit improved significantly year-on-year as a result of the following: strong sales of high-level cars in China, strong sales in Japan and the U.S.A. of compact cars, continued program business from Jatco and Fuji Heavy Industries for control valves (used on a new type of CVT) and for automatic transmission control valves, and continued program business from European carmakers for electromagnetic valves used to control the fuel flow.

Contracts

-The Company started supplying electromagnetic valves and spool valves to Chery.

Acquisitions

- The Company announced on October 1, 2010 that it has completed the acquisition of the Motors & Controls business of Emerson Electric Company headquartered in the U.S.A., and established Nidec Motor Holdings Corporation in Minami Ward, Kyoto as a holding company of the acquired business. As a result, the new holding company, and 12 companies acquired from Emerson in the U.S.A., Canada, Mexico, the U.K. were placed under the management of Nidec. In the future, the Group plans to integrate the 12 companies from Emerson into Nidec Motor Holdings. Among its new subsidiaries, Nidec Motor Corporation in the U.S. will play a central role in the management of the motors and controls business. With this move, Nidec will add large industrial motors to its product portfolio, while applying a high level of motion control technologies to its automotive motors such as drive motors in order to expand the business.(From an article in the Nikkan Jidosha Shimbun on October. 2, 2010)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	709	719	858
Automotive parts	604	533	617

R&D Activities

Automotive Component Business
-The Company has been working on R&D activities to respond to the following: need for vehicle comfort, safety and fuel efficiency; increased sales of hybrid cars; and further developments in the field of electronic-control technology in line with the rise in electric vehicles.

The Company’s R&D activities to develop the latest technology and expand new product sales are focused on the following three areas.
1.Improving existing products (control valve assemblies for automatic transmissions and CVTs), making them even better in terms of function and performance. Also, the Company collaborates with Chinese carmakers to develop new products.
2. Developing automotive products, which use less energy and are environmentally friendly, such as fuel-control valves for diesel engines as an application of electromagnetic valve technology
3. Developing electric-powered oil pumps and actuators for hybrid and electric cars in line with the expansion of technology in the fields of electronic control, motors, and inverters.



- The Company will further accelerate its efforts to strengthen the automotive motor business. Setting the primary target for automotive motor sales of 500 billion yen by FY 2015, it will build new production bases, expand the business through M&A and develop new products. As for the product lineup, Nidec will largely increase the variety of brushless motors, focusing on four items including those for dual clutch transmissions (DCT) and electric oil pumps. While it first supplied EV motors to Daimler AG, Germany, it will expand the HV/EV drive motor business with other automakers as well. Nidec also plans to put a motor without permanent magnets into practical use in commercial vehicles by 2013 or 2014. (From an article in the Nikkan Jidosha Shimbun on October. 28, 2010)

- The Company to augment its development engineers as part of its efforts to strengthen its business of motors for automotive applications. As the company intends to foster the automotive motor business as one of its core operations, it is working on its expansion beyond the current major automotive motor products for interior and exterior parts. Although most of HV/EV driving motors have been manufactured by automakers themselves, Nidec has undertaken the development and started sample shipment of some of its HV/EV motors. The company has recently acquired the Motors & Controls businesses of Emerson Electric Co., U.S.A. in order to enhance its business base in North America. According to Nidec, "Emerson's engineers with sophisticated knowledge on large motor technology and electronic engineering control should be capable enough for development of motors for the next-generation vehicles." The company plans to strengthen its development engineers while taking advantage of the technical staff from the acquired manufacturer. (From an article in the Nikkan Jidosha Shimbun on September. 7, 2010)

- The Company, which is developing drive motors for hybrid and electric vehicles, is planning to launch these products in series. In an effort to boost its market share in the field, the company is set to release as early as possible its new drive units for next generation vehicles, demand for which is growing significantly. Nidec has been stepping up its development activities for in-vehicle motors both at home and abroad. Following the expansion of its existing R&D facility in Shiga, Japan last year, the company is currently working on a project to establish a new R&D center in Dalian, China next year. (From an article in the Nikkan Jidosha Shimbun on April. 16, 2010)

Technological Licensing-in Agreements

(As of Mar. 31, 2011)

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, 2011)

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)

	FY2010	FY2009	FY2008
Overall	6,892	2,553	2,392
Automotive parts	6,330	2,494	2,197

Automotive parts
-Since the first half of the year, the Company heavily invested in its subsidiary in Vietnam, spending for facilities and equipment to respond to an increase in program business. It also invested to boost its production operations of control valves for CVTs, at its 6th and newest plant building; and install new die-cast machines at its neighboring die-cast manufacturing subsidiary, increasing its production capacity.    

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	735	Apr. 2011	Mar. 2012
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	1,704	Apr. 2011	Mar. 2012
Nidec Tosok Akiba (Vietnam) Co., Ltd.	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	341	Apr. 2011	Mar. 2012
Nidec Tosok (Zhejiang) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts Equipment for manufacturing measuring devices	2,935	Apr. 2011	Mar. 2012