Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change(%)	Factors
Overall
Sales	31,280	33,508	(6.6)	1)
Operating income	1,715	3,140	(45.4)	-
Ordinary income	1,974	3,087	(36.1)	-
Net income	1,091	1,844	(40.8)	-

Factors
1) Sales
-Control Valves for CVTs (main product line): Sales in Japan were higher year-on-year, supported by strong new-car sales. However, sales were down in China, Europe and the Americas due to the stagnating markets in these regions.
-Fuel Control Values: Sales of diesel-engine fuel control valves, compliant with European environmental regulations, were lower year-on-year due to a slow-down in the European market.

Recent Developments Outside japan

Strengthening automotive motor business
- The Company is going to enhance its automotive motor business, including motors for electric power steering (EPS) systems. The company plans to establish a new plant in India, while transferring part of its development activities to outside Japan. Since demand for motors used in EPSs and dual clutch transmissions is increasing, the company will locate a new development base for these products in Dalian, China, in addition to its existing development center in Japan. In the area of switched reluctance (SR) motors for EVs and HVs, the company is poised to improve its capability by developing closer collaboration among its three development bases in Japan, the U.S. and the U.K. The new Indian facility is expected to begin producing motors for EPSs, engine cooling fans, and power windows in December 2013. Having won new businesses not only from Japanese automakers, but also from European and U.S. companies, which are increasing production in the emerging markets, the company is poised to expand local production, while holding down its development cost by sharing its technical information on a global basis. (From an article in the Nikkan Jidosha Shimbun on April 26, 2012)

<USA>
- The Company announced that it will establish a wholly-owned subsidiary, Nidec Automotive Motor Americas Corporation, in Michigan, U.S.A. on April 5. The new company, which will be capitalized at about 41 million USD (approximately 3.8 billion yen), will oversee Nidec's in-vehicle motor business in the American market. By setting up the new subsidiary, the Company is poised to enhance its production, sales, and development operations to win more orders in the North American market, where automakers are expanding their production volumes. (From an article in the Nikkan Jidosha Shimbun on Mar. 29, 2013)

<China>
- The Company announced that it will acquire shares in Jiangsu Kaiyu Auto Appliance Co., Ltd. (Kaiyu), a Chinese motor supplier. It has concluded an agreement with Jiangsu Luokai Mechanical and Electrical Manufacturing Group Co., Ltd. (Luokai) and other Kaiyu shareholders that it will acquire new shares allocated to the Company through a capital increase transaction and that the Company will hold a 51% ownership. Kaiyu manufactures brush motors for EPS and fans and supplies them to Chinese OEMs. The Company aims to obtain the technology of brush EPS motors, which it does not possess at present, and to expand business with local OEMs. (From an article in the Nikkan Jidosha Shimbun on Jun. 22, 2012)   

Mid-term Management Plan

- The Company aims to increase by 50 percent its consolidated sales to 50 billion yen by the year ending March 2016. Based on new programs it has won from Japanese automakers, the company will start supplying control valves for automatic transmissions and continuously variable transmissions in 2014-2015. In order to cope with increased requirements for these products, the company is establishing a second plant in Vietnam. During the next fiscal year ending March 2014, the Company will also extend its product lineup by beginning to mass-produce new items like electric oil pumps. Its aluminum die-casting operations will be enhanced in both Vietnam and China. Nidec Tosok Akiba (Vietnam) Co., Ltd. will set up an additional plant, while the group's Chinese facility will start making valve bodies as well as dies for producing die-casting components. By shifting product development activities to the local markets and further accelerating cost reduction initiatives, the company is poised to become more competitive, as it aims to expand its global sales. (From an article in the Nikkan Jidosha Shimbun on August 1, 2012)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	1,065	985	709
Automotive parts	-	913	604

R&D Activities

-The Company has been actively engaged in developing its prowess in the field of electric control technology, in line with responding to the needs for vehicle comfort, safety, and fuel efficiency; and with the recent increase in sales of hybrid vehicles and the rise in the prominence of electric vehicles.

R&D activities are focused on developing new technologies and products in the following three sectors.
1. Existing products: further raising the functions and performance of control-valve assemblies for automatic transmissions and CVTs; and also developing new products for local Chinese OEMs.
2. Applied technology for electromagnetic values: developing environmentally friendly and energy-saving automotive products such as diesel-engine fuel control valves, and working to develop electromagnetic valves in new business sectors such as the home appliance sector.
3. Products compatible with automotive electrification: developing products for hybrid and electric vehicles such as electric oil pumps, in line with the advances taking place in technology on electric control units, motors, and invertors.

Strengthening Global R&D Functions
-The Company, which will strengthen R&D functions worldwide, is increasing its volume of new program business from OEMs due to the growth of vehicle production in developing countries. To better respond to this, the Company plans to strengthen its ability to respond to local parts makers and auto makers by enhancing its capabilities in developing new products, which is planned to start delivering after the second half of 2013.

• Vietnam: Increase the current number of 40 R&D staff to 100 in 2012.
• China: Establish a new R&D center in the Suzhou New Technology District, employing 50 R&D staff.
• Japan: Maintain an R&D workforce of 100.

Product Development

Commercializing an electric oil pump
- The Company is entering into production of electric oil pumps in 2013 in Vietnam for wider applications in hybrids and vehicles equipped with an automatic engine stop and start system. The Company has already obtained orders for the electric oil pump from several automakers in that it has reduced size, yet enhanced its durability by using the technology to develop a stepping motor for transmissions. The Company is aiming to expand its customer base targeting both Japanese and non-Japanese automobile manufacturers. (From an article in the Nikkan Jidosha Shimbun on July 23, 2012)

Technological Licensing-in Agreements

(As of Mar. 31, 2013)

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, 2013)

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	5 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	8 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	5 years from March 26, 2007 (Automatic renewal)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	10,418	3,597	6,892
Automotive parts	-	3,412	6,330

-The Company made capital investments in new plants; and also in production facilities so as to produce new products.

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	581	Apr. 2013	Mar. 2014
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	1,475	Apr. 2013	Apr. 2014
Nidec Tosok Akiba (Vietnam) Co., Ltd.	Ho Chi Minh City, Vietnam	Equipment for manufacturing automotive parts	606	Apr. 2013	Dec. 2013
Nidec Tosok (Zhejiang) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts	1,285	Apr. 2013	Dec. 2013
Nidec Tosok Uogishi (Pinghu) Corp.	Zhejiang, China	Equipment for manufacturing automotive parts	427	Apr. 2013	Dec. 2013
Nidec Tosok Precision Vietnam Co., Ltd.	Ben Tre, Vietnam	Equipment for manufacturing automotive parts	1,527	Apr. 2013	Dec. 2013