Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Overall
Sales	122,880	120,574	1.9	-
Operating income	10,240	13,106	(21.9)	-
Ordinary income	10,059	12,541	(19.8)	-
Current net income	6,853	7,531	(9.0)	-
Composite plastic molded products
Sales	105,407	104,274	1.1	1)
Operating income	12,953	15,484	(16.3)

1) Composite plastic molded products
<Sales in the Japanese auto industry>
-Immediately after the Great East Japan Earthquake, auto production fell to less than half of what it was in the same period the year before. Nevertheless, this situation didn't last for long, and a recovery in production started in the first half of the year, with volumes reaching 80% of those recorded in the first half of the previous fiscal year. As a result, the Company's production levels also rose in line with the increased production volumes of its customers. During the second half of the year, production levels at all OEMs rose, greatly surpassing the levels recorded in the previous fiscal year, and as a result, the Company's sales also increased accordingly. However, the Company's export volumes were slightly impacted by the flooding in Thailand and the financial crisis in Europe.

<Sales in the auto industry outside Japan>
-The financial results of the Company's consolidated subsidiaries outside Japan varied by region. In North America, results based on yen were lower year-on-year due to negative currency translation. Nevertheless, the financial results in Asia, for example, in Korea, and in Europe improved year-on-year, contributing enough so that overall operating revenue during the fiscal year rose year-on-year. However, operating profit decreased year-on-year as a result of some negative factors such as the increase in expenses incurred in North America to expand the business operations at its facilities there.

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

R&D Expenditure

(As of Mar. 31, 2012)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,629	1,665	1,360
Composite plastic molded products	1,621	1,654	1,344

R&D Structure

-The Company plans to open a research center tentatively named as "Global Research Center" in Kanagawa Pref., Japan in early 2013 in order to promote local procurement of materials at each production operation in the world. It will perform quality and cost evaluations of materials available at its production operations worldwide. It will also develop a new functional plastic product. Although the technical centers of respective operations have been conducting researches in materials, the Company has decided to consolidate its R&D operations as it is rapidly expanding globally. Through opening the center, it aims for a global, advantageous procurement of materials as well as expanded application of its plastic materials in automobiles. (From an article in the Nikkan Jidosha Shimbun on January 6, 2012)

R&D Activities

Automotive Products
-In the area of energy-saving and environmentally friendly technology that reduces CO2 emissions, the Company is developing parts made from plastics that improve vehicle efficiency and reduce vehicle weight, such as in eco-cars like HEVs and EVs.
-The Company was successful in developing engine cooling pipes/tubes, transmission parts that reduce the amount of oil needed, and fasteners and brackets to hold engine computers in place, all of which are made of plastics instead of conventional metal.
-The Company has developed a barrel-damper used in assist-grips. These latest dampers, which offer excellent performance in terms of torque stabilization and low temperature properties, are first being installed by a Korean OEM.
-The Company developed a better valve for resin fuel tanks by improving its opening properties. It is being equipped on vehicles being built by a Malaysian OEM.

Technical Alliance Agreements

(As of Mar. 31, 2012)

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

Technology Licensing-out Agreement

(As of Mar. 31, 2012)

Company Name (Location)	Contract Coverage	Contract Term
Nifco Taiwan Corporation (Taiwan)	Manufacturing technologies for plastic buckles and industrial fasteners	Until Dec. 31, 2015
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, 2012
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, 2015
Nifco U.K. Ltd. (UK)	Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials	Until Dec. 31, 2014
Nifco America Corporation (USA)	Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials	Until Dec. 31, 2014
Nifco Products Espana S.L.U. (Spain)	Manufacturing technologies for 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)	Manufacturing technologies for 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
Boosung Industrial Corporation (Korea)	Manufacturing technologies for 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
Dongguan Nifco Co., Ltd. (China)	Manufacturing technologies for 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)	Manufacturing technologies for 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)	Manufacturing technologies for 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, 2016
Beijing Nifco Co., Ltd. (China)	Manufacturing technologies for 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, 2015
Nifco Poland Sp.zo.o. (Poland)	Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Until Dec. 31, 2016
Nifco Vietnam Ltd. (Vietnam)	Manufacturing technologies for 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
Nifco (Tianjin) Co. Ltd. (China)	Manufacturing technologies for 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, 2015
Nifco India Private Ltd. (India)	Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products	Until Dec. 31, 2015
Nifco (Hubei) Co., Ltd. (China)	Manufacturing technologies for 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, 2016
Nifco Korea USA Inc. (USA)	manufacturing technology for 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, 2015
Nifco (Jiangsu) Co., Ltd. (China)	manufacturing technology for 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, 2015

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	17,056	9,661	5,574

Composite plastic molded products
<Japan>
-In Japan, the Company invested 5,025 million yen in the following: dies to produce products in response to new orders the Company won from Japanese automakers, facilities and equipment to produce fuel-system products, and land it acquired on which it will build a new technical center.

<USA>
-Nifco America Corporation invested 1,240 million yen in facilities and equipment to produce fuel-system products; and in forming equipment.

<Korea>
-Nifco Korea Inc. spent 2,577 million yen to build a new production plant.

<China>
-The Company invested a total of 1,458 million yen in facilities and equipment at the following facilities in China: Nifco (Hong Kong) Ltd.; Shanghai Nifco Plastic Manufacturer Co.，Ltd.; Dongguan Nifco Co., Ltd.; Nifco (Tianjin) Co.,Ltd.; Nifco (Hubei) Co., Ltd.; and Nifco (Jiangsu) Co., Ltd.

Development Outside Japan

<Mexico>
-The Company, announced on January 30 that it will construct a new plant in Mexico and increase investments in its subsidiaries in India and China. A new plant in Mexico will be built by Nifco de Mexico in Silas, Guanajuato in central Mexico. Also, the company will make additional investments in its subsidiary in India and four subsidiaries in China with the aim of expanding business operations and reinforcing corporate financial structure. Capital of Nifco India Private, which was established in June 2010, will be boosted by 150 million rupee (approximately 237 million yen) to 400 million rupee (approximately 632 million yen) by this June. Furthermore, Nifco has decided to increase capital of four companies in China, including Nifco (Tianjin) Co., Ltd., a wholly-owned subsidiary of Nifco (HK) Ltd., for additional investments in equipment. (From an article in the Nikkan Jidosha Shimbun on February 3,2012)

<India>
-The Company, announced on January 10 that it will increase the capital of Nifco South India Manufacturing Private Ltd., its subsidiary in India for manufacture and sale of plastic components, for building a new plant. Added capital valued at 738 million Indian Rupee will be funded by Nifco and its wholly-owned subsidiary Nifco Korea Inc. The new plant will bring the number of its facilities in India to two, following Nifco India Private Ltd. in Haryana. Nifco South India Manufacturing that was established in State of Tamil Nadu is now owned 75 percent by Nifco Korea and 25 percent by Nifco. This ownership share will remain the same even after the capital is increased. The Indian subsidiary, which has been conducting sales and marketing activities for the Hyundai Group since it was founded, will embark on constructing a new manufacturing facility in the south of India where future business opportunities have been assured. Construction of the plant building is scheduled to begin this fall and its operation next year. (From an article in the Nikkan Jidosha Shimbun on January 12, 2012)

<Indonesia>
-The Company, recently observed a groundbreaking ceremony of a new plant at its site in Karawang, Indonesia. The new facility is an extension of the sales subsidiary that was established in May this year to add a new function of production with an increase in capital into the subsidiary. The new plant with a floor space of 6,700 square meters will be constructed at a site of 22,000 square meters in the Kawasan Industrial Park along the highway in the suburbs of Karawang. The new building will be completed in the summer of next year to get into operation by the end of that year. It will supply plastic products like fasteners to local Japanese manufacturers of vehicles and motorcycles. The investment will amount to a total of $10 million (approximately 760 million yen). (From an article in the Nikkan Jidosha Shimbun on October 25, 2011)

<UK>
-The Company, will expand its production capacity in the U.K. Its existing plant, a leading plant in Europe, is aging. The company is getting ready for an increase in production by building a new plant at a more spacious site. The construction of the new plant building is expected to complete by the end of this year, and its production will start by the spring of next year. With the expansion of production capacity, Nifco will launch marketing activities more aggressively to win orders for plastic fasteners from European automakers, including the current customers. The new plant is located several kilometers away from the current facility in the land of 56,000 square meters with a floor spare of 12,000 square meters, 1.6 times larger than the existing plant. The investment totals 7.8 million pounds (approximately 975 million yen). (From an article in the Nikkan Jidosha Shimbun on October 24, 2011)

<China>
-The Company will expand production facilities of synthetic plastic molding products like plastic fasteners for automobiles, and begin their supply of products to meet growing demand in China. Following shipment started from a new facility established in Tianjin in July, Nifco will also begin shipment from a new facility in Hubei as early as the end of this month to support Japanese automakers. It is also planning to start operations of a new plant in Jiangsu to serve U.S. and European automakers in an effort to reinforce its supply capabilities. In July Nifco (Tianjin) Co., Ltd. commenced operations mainly to serve local Toyota plants. Nifco (Hubei) Co. Ltd., which was established in Hubei last December, will commence shipment to local plants of Nissan and Honda as early as the end of this month. The two facilities are wholly owned by Nifco's Hong Kong subsidiary, Nifco (HK) Ltd. Ever after initial shipments, their production capacity will continue to expand. Also, early next year, a new plant located in Zhangjiagang about 100 kilometers from Shanghai, will begin to supply its products to U.S. and European automakers, completing a policy to produce close to the market. (From an article in the Nikkan Jidosha Shimbun on September 2, 2011)

Planned Capital Investments (Composite plastic molded products)

(As of Mar. 31, 2012)

Company/ Facility (Location)	Targeted Investment	Investment Amount (in million JPY)	From	To
Global Research Center (official name to be decided) (Yokosuka, Kanagawa Pref.)	Land	1,220	Dec. 2011	Feb. 2013
	Buildings and structures	4,087
	Machinery, equipment, and measuring instruments	369
Nifco South India manufacturing Pvt. Ltd. (Tamil Nadu, India)	Buildings and structures	970	Jan. 2012	Oct. 2012