Consolidated Financial Statements for the Third Quarter of Fiscal Year Ending March 31, 2011
(Nine Months Ended December 31, 2010) (Based on J-GAAP)
February 14, 2011
Company Name : Nippon Manufacturing Service Corporation. Listing : JASDAQ (Osaka Securities Exchange)
Stock Code: 2162
URL:
http://www.n-ms.co.jp/
Representative : Fumiaki Ono,President and CEO
Contact: Norihiko Suehiro, Director and CFO
Tel: +81-3-5333-1711
Scheduled Date of Filing Quarterly Securities Report: February 14, 2011
Scheduled Commencement Date of Dividend Payout: —Third Quarter Financial Results Presentation Materials: Yes (Japanese version only)
Explanatory Meeting on Third Quarter Financial Results : None
(All amounts are rounded down to the nearest million yen)

1. Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2011 (April. 1, 2010 – December. 31, 2010)(Percentages represent year-over-year changes)(1) Results of operations (nine months)
Net sales
Operating income
Ordinary income
Net income
Million yen

3Q FY 2011
3Q FY 2010%

14,974———Million yen

Million yen———Net income per share
3Q FY 2011
3Q FY 2010%

440417—%

Million yen

—
—%865

—
—

—

Diluted net income per share
YenYen43,453.08

41,559.55——

Note: Quarterly consolidated financial statements were first prepared beginning with the first half of the fiscal year ended March 31, 2011.
Figures for the third quarter of the fiscal year ended March 31, 2010 and changes compared with the same quarter a year earlier are therefore notstated.

(2) Financial position
Total assets

Net assets

Million yen

3Q FY 2011
FY 2010Equity ratio

Net assets per share

Million yen

7,892%

2,115

—

26.6

—

Reference: Shareholders’ equity (million yen):

Yen

105,312.97—

3Q FY 2011: 2,096—

FY 2010: —Note: Quarterly consolidated financial statements were first prepared beginning with the first half of the fiscal year ended March 31, 2011.
Figures for the third quarter of the fiscal year ended March 31, 2010 are therefore not stated.

2. Dividends
1Q-endInterimYen

FY 2010
FY 2011
FY 2011(forecasts)

Annual dividends
3Q-endYen——

Yearend

Yen

0.00
0.00

AnnualYen

Yen

500.00500.001,000.00

1,000.00——

Note: Revisions to the dividend forecast in the current quarter: None
3. Forecasts for the Fiscal Year Ending March 31, 2011 (April 1, 2010 – March 31, 2011)(Percentages represent year-over-year changes)

Net sales

Operating income

Million yen

Full year

21,000%—Million yen

470

Ordinary income%Million yen

—

440%

—

Net income pershare

Net income
Million yen

700%

—

Yen

35,163.51

Note: Revisions to the financial forecast in the current quarter: None
Quarterly consolidated financial statements were first prepared beginning with the first half of the fiscal year ended March 31, 2011. Changes
compared with the same quarter a year earlier are therefore not stated.

4. Others (For details, refer to “2. Other Information” on page 3 of the Attachment)(1) Changes in significant subsidiaries during the current quarter: None
New: None (Company name:)
Excluded: None (Company name:)(Note) This section shows a change that led to the change of the consolidation scope during the current quarter.
(2) Application of simplified accounting procedures and special accounting procedures: Yes(Note) This item inquires whether the reporting entity applies simplified accounting treatment and special accounting
treatment in the preparation of quarterly financial statements.
(3) Changes in accounting principles, procedures and method of presentation
1) Changes caused by revision of accounting standards: Yes
2) Other changes:
None(Note) Items to be disclosed in “Significant Changes in the Basis of Presenting Quarterly Financial Statements”.
(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding
3Q FY 2011
21,611 shares(including treasury stock) at end ofperiod
2) Number of treasury stock at end of
3Q FY 20111,703 sharesperiod3) Average number of shares
3Q FY 2011
19,907 shares
outstanding during the period

FY 2010

21,608 shares

FY 2010

1,703 shares

3Q FY 2010

20,039 shares* Implementation of quarterly review proceduresThis summary of quarterly financial statements is not subject to quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. At the time of disclosure of this summary of quarterly financial statements, the review
procedures of quarterly financial statements pursuant to the FIEA were completed.
* Cautionary statement with respect to forward-looking statements
The forward-looking statements such as the forecasts for the business performance described in this document are basedon the judgments made by the Company in accordance with information currently available that is rational. For this reason,
actual results may differ from these forecasts due to a number of factors, including but not limited to the operatingenvironment. For the underlying assumptions and usage of earnings projections refer to the disclaimer in “(3) Qualitative
information concerning business performance forecast” under “1. Qualitative Information Concerning Financial Results”
on page 3 of the Attachment to the summary of quarterly financial statement.

Nippon Manufacturing Service Corporation. (2162) / Consolidated Financial Results for the Third Quarter of Fiscal Year Ending
March 31, 2011
(Nine Months Ended December 31, 2010) (Based on J-GAAP)

1. Qualitative Information Concerning Financial Results(1) Qualitative information concerning operating results
The Japanese economy in the period under review continued to show a moderate recovery, supported by the growth in emerging
economies in Asia, specifically China. The outlook remains uncertain, however, due to negative factors such as the recent yen
appreciation and deflationary pressures as well as the crisis-level national fiscal deficit for which no solution is in sight.
Moreover, while other countries have set their sights on the abolition of tariff barriers and the promotion of free trade, Japan has
yet to draw up a clear growth strategy for the future and reach a consensus on a participation in the Trans-Pacific Strategic
Economic Partnership Agreement (TPP). In this setting, Japan’ export-driven industries, which have been driving the economy,
have been dealt a blow by the current yen appreciation, prompting an accelerating overseas shift in manufacturing.
Although manufacturers in the contractor industry where nms has been making effort to bolster earnings have been working torebuilt earnings, for manufacturing worker dispatch services and contract manufacturing services a business recovery has yet totake clear shape, given an undercurrent that has a growing number of clients consider moving their manufacturing bases
overseas. Moreover, although the parliamentary debate about the Worker Dispatching Act remains suspended, industry members
and manufacturing clients alike are making preparations in the anticipation that manufacturing worker dispatch will in principle
be barred. Specifically, manufacturers have started probing for the optimal solution among moving their manufacturing bases
overseas, outsourcing to partner companies (i.e., contracting), and hiring employees under irregular contracts on their own
account, among other options. The ongoing shakeout in the contractor industry will therefore likely continue as a consequenceof weakening comprehensive manufacturing frameworks in terms of legal compliance issues and contracting capabilities.
Occasioned by these developments, nms Group (the Company and its consolidated subsidiaries) has formulated a new businessstrategy concept (“neo EMS”) under which the Group will promote business initiatives that address key issues of the Group’s
individual operations. Specific measures include the following:- Raise the competitive strength of Inline Solutions (IS) operations, the Group’s core business- Expand Manufacturing Solution (MS) operations, a business with growth potential- Improve business systems in Global Engineering (GE) operations, indispensable for the “neo EMS” one-stop service
concept- Establish a business platform for Electronics Manufacturing Service (EMS) operations, necessary for gaining greater
manufacturing prowess
Based on the foregoing, for the period under review, the Group reported revenues of 14,974 million yen, operating income of
440 million yen, ordinary income of 417 million yen, and net income of 865 million yen.
Segment results developed as follows.
[1] Inline Solutions (IS) operations
As mentioned above, in an operating environment marked by progressing yen appreciation, nms’s manufacturer clients havestarted to look for manufacturing frameworks for the time after a ban of manufacturing worker dispatch. In this situation, theability to offer proposals will make the difference for future earnings performance. In fact, despite the number ofmanufacturers who close their domestic manufacturing bases in preparation for a shift overseas and others who switch tohiring irregular-contract employees on their own account, many manufacturers have appointed the nms Group to use
contracting. The Group has been making valuable propositions to existing and new clients and continues to proactivelyengage in the contracting business. Moreover, in connection with a possible principle ban on manufacturing worker dispatch,
for almost ten years the Group has been continuously engaged in dispatching permanent employees of nms to which different
regulations apply, and created a framework enabling manufacturer clients to enter into manufacturing worker dispatch
agreements with the Group without having to worry about compliance matters. Manufacturers have been rating the nms
Group highly for its policy initiatives, business stance, solid track record, and specific propositions, etc., which has enabled
the Group to increase order receipts by some width. Based on the foregoing, revenues in the period under review totaled 6,519
million yen.
[2] Manufacturing Solution (MS) operations
Starting last fiscal year, the Group rolled out a management policy that proposes highly profitable business initiatives byusing the Company’s in-house factories, and has been proactively working on developing new business fields. During theperiod under review, continuing on from the last fiscal year, repair operations for home-use game consoles and mobile phones,
etc., posted business growth amid a stable scope of operations and rising handling volumes. This expansion was possible
thanks to manufacturers’ trust in nms’s repair business operations for both home-use game consoles and mobile phones.
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March 31, 2011
(Nine Months Ended December 31, 2010) (Based on J-GAAP)

Based on the foregoing, revenues for the period under review totaled 2,417 million yen.
[3] Global Engineering (GE) operations
The Group’s Engineering Solution (ES) operations and Global Solution (GS) operations have historically been treated anddeveloped as distinct individual business models. However, business efficiency improvement measures implemented last
fiscal year to achieve organizational integration activated inter-operational synergies, which connected to the redefinition ofEngineering Solution (ES) operations and Global Solution (GS) operations, combining the two as Global Engineering (GE)
operations.
In the period under review, to reduce the standby cost of ES operations, cost controls were enforced and steps implemented toenhance profitability. Moreover, at GS operations, to develop nms Group’s global contracting business (“The UKEOI”) andto capitalize on the Groups contracting power overseas, the Group established a local subsidiary in Vietnam as the first
Vietnam-based business model of its kind and accelerated activities to acquire new customers. Based on the foregoing,revenues for the period under review totaled 508 million yen.
[4] Electronics Manufacturing Service (EMS) operations
These operations constitute a new business centered on SHIMA Electronic Industry Co., Ltd, which joined the Group in July
2010, and its subsidiaries in Hong Kong and Malaysia and the China based manufacturing service plant that caters to theHong Kong subsidiary. In the period under review, sales, marketing, and technology aspects underwent rigorous reviews for a
restructuring of business strategies in order to activate inter-operational synergies at the Group level; at the same time
infrastructure for future business growth was put into place. In sales and marketing in particular, efforts concentrated on thesearch for possible integration effects such as by commencing business with nms clients. Based on the foregoing, revenues forthe period under review totaled 5,528 million yen.
As no quarterly consolidated financial statements were prepared for the third-quarter period of the previous fiscal year,prior-year comparisons are omitted.
(2) Qualitative information concerning financial position
Consolidated assets at the end of the period under review totaled 7,892 million yen.
Current assets totaled 6,964 million yen, which included 1,705 million yen in cash and deposits, 3,290 million yen in trade notes
and accounts receivable, and 1,186 million yen in raw materials and supplies.
Fixed assets totaled 927 million yen, which included 463 million yen in property, plant, and equipment, and 447 million yen in
investments and other assets.
Consolidated liabilities totaled 5,776 million yen.
Current liabilities totaled 4,745 million yen, which included 1,707 million yen in trade notes and accounts payable, 1,079 million
yen in short-term loans payable, and 1,083million yen in other accounts payable.
Consolidated net assets totaled 2,115 million yen, comprised of 500 million yen in legal capital, 216 million yen in capitalsurplus, and 1,468 million yen in retained earnings.
(Cash flows)
Consolidated cash and cash equivalents at the end of the period under review totaled 2,044 million yen.
Net cash provided by operating activities was a 657 million yen. Main factors were a 1,017 million yen in net income before
income taxes and a 592 million yen in goodwill expenses.
Net cash used in investing activities was a 201 million yen. Main factors were a 293 million yen in income from the repaymentof time deposits and a 498 million yen in expenses for the acquisition of subsidiary stocks due to a change in the scope ofconsolidation.
Net cash provided by financing activities was a 700 million yen. Main factors were a 1,400 million yen in income from newlong-term loans and, among expenses, a 450 million in net repayment of short-term loans and a 239 million in repayment oflong-term loans.
As no quarterly consolidated financial statements were prepared for the third-quarter period of the previous fiscal year,prior-year comparisons are omitted.
(3) Qualitative information concerning business performance forecast
The initial consolidated earnings estimates for the full fiscal year ended March 31, 2011 released on August 2, 2010, remain-3-

Nippon Manufacturing Service Corporation. (2162) / Consolidated Financial Results for the Third Quarter of Fiscal Year Ending
March 31, 2011
(Nine Months Ended December 31, 2010) (Based on J-GAAP)

unchanged.
It should be noted that earnings estimates are based on the information available at the time of release and are subject to revisionin case earnings trends change due to events.

2. Other Information(1) Summary of changes in significant subsidiaries during the period under review
None.
(2) Summary of simplified and special accounting procedures
Consolidated depreciation charges on non-current assets are computed pursuant to the declining balance method and periodicallyprorated based on the depreciation charge amount for the fiscal year.
(3) Summary of changes in accounting principles, procedures, and method of presentation, etc.
(Application of the Financial Accounting Standard for Business Combinations)
Beginning with the second quarter of the current fiscal year, the Company applies the following accounting standards andaccounting standard application guidelines: Accounting Standard for Business Combinations (Business Accounting Standard
No. 21, December 26, 2008), Accounting Standard for Consolidated Financial Statements (Business Accounting Standard No.
22, December 26, 2008), Partially Revised Accounting Standard for Research and Development Costs (Business AccountingStandard No. 23, December 26, 2008), Accounting Standard for Business Divestitures, etc. (Business Accounting Standard No.
7, December 26, 2008), Accounting Standard for Equity Method Accounting (Business Accounting Standard No. 16,
December 26, 2008; Promulgated Portion) and the Application Guidelines for the Accounting Standard for Business
Combinations and the Accounting Standard for Business Divestitures (Business Accounting Standard Application Guidelines
No. 10, December 26, 2008).
(Application of the Accounting Standard for Asset Retirement Obligations)
Beginning with the first quarter of the current fiscal year, the Company applies the Accounting Standard for Asset Retirement
Obligations (Business Accounting Standard No. 18; March 31, 2008) and the Application Guideline for the AccountingStandard for Asset Retirement Obligations (Business Accounting Standard Application Guideline No. 21, March 31, 2008).
This accounting change has no effect on the operation income, ordinary income, and net income before income taxes reported
for the period under review.
(4) Summary of material matters concerning the going-concern assumptionNone.

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