Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change(%)	Factors
Overall
Sales	33,508	29,947	11.9	-
Operating income	3,140	4,009	(21.7)	-
Ordinary income	3,087	4,033	(23.5)	-
Net income	1,845	2,366	(22.1)	- Net income was lower because of an extraordinary loss of 54 million yen the Company posted due transferring some of its business operations.
Automotive Component Business
Sales	30,334	26,172	15.9	1)
Operating income	3,109	3,760	(17.3)

Factors
1)
Automotive Component Business
- Business at the automotive component business grew because of solid supply agreements the company won from major customers, including the agreement with Jatco to supply control valves to a light truck and the agreement with Fuji Heavy Industries (Subaru) to supply CVT control valves for the new Impreza.

Contracts

- The Company, Kanagawa Pref., Japan announced that it has started production and shipment of the new control valve for the Lineartronic CVT of the FHI's new Impreza. By optimizing the layout, the control valve is successfully positioned on the upper part of the transmission, which has contributed to downsizing the entire transmission. The hydraulic circuit for the idling stop system has been added. Through joint development with FHI, the company has simplified the hydraulic circuit system and optimized the layout, which consequently has reduced the weight by approx. 20%. At its plant in Vietnam, the rate of in-house manufacturing of major components including cast components has been raised, which has helped reduce the cost. (From an article in the Nikkan Jidosha Shimbun on February 20, 2012)

Recent Developments in japan

- The Company, Kanagawa Pref., Japan announced that it has decided to transfer the ball screw business to Nidec Sankyo Corp., Nagano Pref. and the wafer bump inspection apparatus business to Nidec-Read Corp., Kyoto Pref. and that the three companies have basically agreed. The decision was made at the special meeting of the board on March 15. The businesses to be transferred currently belong to its System Equipment Division. The transfers are scheduled to be effective on April 1, after the final agreement by the end of March. Nidec Tosok plans to concentrate its management resources of the ball screw business and the wafer bump inspection apparatus business on the growing automobile parts business in order to raise Nidec Group's competitiveness. (From an article in the Nikkan Jidosha Shimbun on March 17, 2012)

- The Company said it will enter into capital collaboration with Uogishi Seiki Interactive Corpration, a Japan-based die-manufacturing company, by acquiring a 19.9 percent stake in the partner. (From a press release on September 13, 2011)

Recent Developments Outside japan

- The Company, Kanagawa, Japan announced on Dec. 12, 2011 that it will establish on March 31, 2012 Nidec Tosok Precision Vietnam Co., Ltd., a 100% subsidiary in BenTre Province, Vietnam to manufacture and sell automatic transmissions, CVT control parts and others. This will be the company's second production facility in Vietnam, following Nidec Tosok (Vietnam) Co., Ltd. With establishment of the new company, Nidec Tosok will increase output of existing products and respond to growing demands, while preparing for sales expansion to new customers. The plant construction will start in September 2012 to commence production in April 2013. It expects to achieve three to four billion yen sales per year once production begins. (From an article in the Nikkan Jidosha Shimbun on December 13, 2011)

- The Company  announced that it will form a joint venture with Uogishi Seiki Interactive Corpration, a Japan-based die-manufacturing company, in Zhejiang Province in China. The new joint venture supplier will produce aluminum die-cast products for automobiles to supply them to Nidec's consolidated subsidiary Nidec Tosok (Zhejiang) Corporation. It also plans to manufacture and sell die-cast products and dies for other customers as well in the future. Capitalized at about 7.7 million USD (approximately 600 million yen), it is owned 92 percent by Nidec and 8 percent by Uogishi Seiki. The plant expected to be completed in May 2012 will go into operation in October of the year. (From a press release on September 13, 2011)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	985	709	719
Automotive parts	913	604	533

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. Due to the growth of technological fields involving electric-controls, motors, and inverters, the Company developed motorized oil-pumps and other products responding to the increasing motorization of hybrid and electric vehicles.

- The Company is stepping up developing technologies at its overseas facilities. The company will not only treble resident engineering staff to 100 in Vietnam, but also inaugurate a new development center in China. This is in line with the company's strategy to develop new products in Japan, while delegating applied engineering of mass market products to its overseas bases in a bid to improve efficiency in development activities. Nidec Tosok manufactures powertrain-related products, including control valves for continuously variable transmissions and diesel engine components. Leveraging stepping motor technologies it owns, it is making efforts to develop products for next generation vehicles like hybrid and electric vehicles. (From an article in the Nikkan Jidosha Shimbun on May 11, 2011)

Technological Licensing-in Agreements

(As of Mar. 31, 2012)

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, 2012)

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)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,597	6,892	2,553
Automotive parts	3,412	6,330	2,494

Automotive parts
-The Company heavily invested in mechanical devices, mainly in response to migrating its production operations to Nidec Tosok (Vietnam) Co., Ltd, and winning new supply agreements from customers.

Planned capital investments

(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	912	Apr. 2012	Mar. 2013
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	4,737	Apr. 2012	Mar. 2013
Nidec Tosok Akiba (Vietnam) Co., Ltd.	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	579	Apr. 2012	Mar. 2013
Nidec Tosok (Zhejiang) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts Equipment for manufacturing measuring devices	118	Apr. 2012	Mar. 2013
Nidec Tosok Uogishi (Pinghu) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts	1,161	Apr. 2012 (plans)	Mar. 2013