Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of change (%)	Factors
Overall
Sales	107,505	122,518	(12.3)	-
Operating income	8,553	7,237	18.2	-
Ordinary income	8,118	6,906	17.5	-
Current net income	4,468	3,934	13.6	-
Industrial plastic parts and components
Sales	89,512	101,469	(11.8)	1)
Operating income	10,848	9,479	14.4	2)

Factors
Industrial plastic parts and components
1)
<Sales in the Japanese auto industry>
-Sales of the Company's products declined because there was a higher percentage of compact cars being produced in Japan, and the Company supplies a relatively small amount of products to compact cars.

<Sales in the auto industry outside Japan>
-Sales at the Company's subsidiary in China recovered in the latter half of the year. But its full-year sales declined because Japanese OEMs reduced their volumes produced outside Japan as a result of suffering from the economic slowdown that started in and after the first half of the year.

2)
-The Company postponed expanding plants and facilities at its subsidiaries outside Japan, consolidated two of its US subsidiaries (with the merger completed on April 1, 2009), and took several other rationalization measures.

New Company

-The Company announced that it will establish a subsidiary in Tianjin, China. Since 1996 when it first opened its operation in Shanghai, it has worked on the business in China at four locations including two in Dongguan and one in Beijing. By setting up the fifth operation in Tianjin, it aims to enhance its business in China, which is expected to become the world's largest automobile market. The new company, tentatively named as Nifco Tianjin Co. Ltd., is scheduled to be established in December with a capital of US$7 million (approx. 630 million yen) and fifty employees for manufacture and sale of plastic components. Nifco (Hong Kong) Ltd., a 100% subsidiary of the Company, will fully fund this Tianjin subsidiary. (From an article in the Nikkan Jidosha Shimbun on Nov. 7, 2009)

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

Outlook for FY2010

(in billions of JPY)

	FY2010	FY2009	Rate of change (%)
Sales	112.0	107.5	4.2
Operating income	10.0	8.5	17.6
Ordinary income	9.8	8.1	21.0
Net income	6.0	4.4	36.4
R&D Expenditure	1.8	1.3	38.5
Investment Expenditure	10.0	5.6	78.6

Plastic Molded Products Business Division: Sales by Region

(in billions of JPY)

	FY2010	FY2009	Rate of change (%)
Japan	53.5	51.9	3.1
North America	11.0	8.6	27.9
Europe	5.5	5.2	5.8
Asia	25.4	23.6	7.6
Total	95.4	89.5	6.6

Three-year plan

(in billions of JPY)

	FY2010 (Target)	FY2009 (Budget)	FY2008 (Actual)
Sales	150.0	112.0	1,075
Operating income	18.0	10.0	85

Aggressive Investment in Growing Markets

<China>
-Responding to the Chinese market based on its continued growth.
-Strengthening local facilities in Tianjin and other areas.

<India>
-Studying the possible launch of operations in Northern and Southern India.

<North America>
-Strengthening facilities in Mexico. (anticipating entry into the Brazilian market)

<New markets>
-Considering new investments in Indonesia and Brazil (particularly in the automobile and motor cycle markets).

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,360	1,710	2,018
Industrial plastic parts and components	1,344	1,685	1,775

R&D Activities

Automotive
-Making use of its eco-friendly technology, the Company commercialized fuel tank components that comply with the world's most stringent automotive emission regulations.

-The Company worked on commercializing alternative fuel (ethanol) filters that will help cut C02 emissions and prevent global warming.

-The Company conducted development activities aimed at further improving the quality of its interior components and its maintaining its competitive edge in the global market.

-The Company expanded the applications of its exterior components such as dumpers, using them on Plug-in Hybrid Vehicles (PHEVs).

Technical Alliance Agreements

(As of Mar. 31, 2010)

Company Name (Location)	Contract Coverage	Contract Term
Illinois Tool Works Inc. (USA)	Plastic buckles	Until Aug. 27, 2023

Technical License Agreements

(As of Mar. 31, 2010)

Company Name (Location)	Contract Coverage	Contract Term
Nifco Taiwan Corporation (Taiwan)	Manufacturing technologies for plastic buckles and industrial fasteners	Until Dec. 31, 2010
Nifco Korea Inc. (Korea)	Manufacturing technologies for plastic buckles and fasteners	Until Dec. 31, 2014
Union Nifco Co, Ltd. (Thailand)	Manufacturing technologies for plastic buckles; and assembling both plastic and metal fasteners	Until Dec. 31, 2011
Nifco Manufacturing (Malaysia) Sdn. Bhd (Malaysia)	Manufacturing technologies for plastic buckles and fasteners	Until Dec. 31, 2012
Nifco (Hong Kong) Ltd. (Hong Kong)	Manufacturing technologies for plastic buckles, plastic or metal fastener assembly	Until Dec. 31, 2010
Nifco U.K. Ltd. (UK)	Industrial plastic parts and assemblies that contain other parts and materials	Until Dec. 31, 2014
Nifco America Corporation (USA)	Industrial plastic parts and assemblies that contain other parts and materials	Until Dec. 31, 2014
Nifco Products Espana S.L.U. (Spain)	Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Until Dec. 31, 2012
Shanghai Nifco Plastic Manufacturer Co., Ltd. (China)	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Until Dec. 31, 2012
Dongguan Nifco Co., Ltd. (China)	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Until Dec. 31, 2012
Nifco Thailand Co., Ltd. (Thailand)	Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Until Dec. 31, 2013
Tifco (Dongguan) Co., Ltd. (China)	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Until Dec. 31, 2011
Beijing Nifco Co., Ltd. (China)	Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products	Until Dec. 31, 2010

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	5,574	11,474	9,803
Industrial plastic parts and components	2,367	3,865	5,006

Industrial plastic parts and components
-The Company made a capital investment for the purpose of making dies for new products in response to new orders from Japanese automakers. It also invested in facilities for making fuel system products and automatic assemblers.

<USA>
-Nifco America Corporation invested 512 million yen mainly in information equipment in order to further improve its work efficiency and reduce its inventory.

<Korea>
-Nifco Korea Inc. made a capital investment of 467 million yen.

<China>
-Beijing Nifco Co., Ltd. made a capital investment of 442 million yen.
-Nifco (Hong Kong) Ltd.; Shanghai Nifco Plastic Manufacturer Co.; Ltd. and Dongguan Nifco Co., Ltd. made a capital investment of 297 million yen collectively.

<Thailand>
-Nifco Thailand Co., Ltd. made a capital investment of 403 million yen.

Freezing Investment in Plants

-In response to fluctuating demand in the second half of fiscal year 2009, the Company reviewed its investment plans, deciding to freeze investments for building new facilities or expanding those at existing plants in Thailand, Korea and Utsunomiya, Japan.

Facility Construction Plans (Industrial plastic parts and components business)

(As of Mar. 31, 2010)

Company/ Facility (Location)	Facility	Investment Amount (in million JPY)	From	To
Utsunomiya Plant (Tochigi Pref., Japan)	Buildings and plants	80	Apr. 2010	Mar. 2011
	Mechanical equipment and measuring instruments	283
Sagamihara Plant (Kanagawa Pref., Japan)	Buildings and plants	193	Apr. 2010	Mar. 2011
	Mechanical equipment and measuring instruments	615
Nagoya Plant (Aichi Pref., Japan)	Buildings and plants	124	Apr. 2010	Mar. 2011
	Mechanical equipment and measuring instruments	430
Other plants	Buildings and plants	47	-	-
	Mechanical equipment and measuring instruments	345
	Land	1,218
All plants	Dies	1,407	-	-
Beijing Nifco Co., Ltd. (Beijing, China)	Buildings and plants	449	Jul. 2008	Jul. 2010
Nifco Thailand Co., Ltd. (Chonburi, Thailand)	Buildings and plants	706	Oct. 2009	June, 2010
Nifco Tianjin Co. Ltd. (Tianjin, China)	Buildings and plants	756	Apr. 2009	Dec. 2010
	Mechanical equipment and tools	285