Consolidated Financial Statements for the First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) (Based on J-GAAP)
November 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: November 14, 2011
Scheduled Commencement Date of Dividend Payout: —First Half Financial Results Presentation Materials: Yes
Explanatory Meeting on First Half Financial Results: Yes (For Institutional Investors and Analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Half of Fiscal Year Ending March 31, 2012 (April 1, 2011 – September 30, 2011)(1) Consolidated results of operations (six months)(Percentages represent year-over-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
11,00622.5
149(46.0)
83(68.3)
1,273
66.5
1H FY 2012
8,983
—
276
—
265
—
764
—
1H FY 2011
(Note) Comprehensive income (million yen): 1H FY 2012: 1,184 (62.1%)
1H FY 2011: 730 (—%)
Net income per share

Diluted net income per shareYen
Yen
1H FY 2012
12,796.05
11,951.19
1H FY 2011
7,685.85
7,341.68
Note 1: Quarterly consolidated financial statements were first prepared beginning with the second quarter of the fiscal year ended March 31, 2011.
Changes compared with the same quarter a year earlier are therefore not stated.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Million yen
Million yen
1H FY 2012
20,5435,853
FY 2011
7,362
2,169
Reference: Shareholders’ equity (million yen): 1H FY 2012: 3,297
FY 2011: 2,147

%
16.1
29.2

2. Dividends
1Q-endInterimYen

FY 2011
FY 2012FY 2012(forecasts)

Yen
0.00
0.00

—
—

Annual dividends
3Q-endYen—

Yearend—AnnualYen
2,000.00

Yen
2,000.00

300.00300.00Note: Revision of the latest released dividend forecast: None

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2012 (April 1, 2011 – March 31, 2012)(Percentages represent year-over-year changes)

Net sales
Full year

Million yen
35,000%69.3

Operating income

Ordinary income

Million yen
750

Million yen
730

%
24.4

Note: Revision of the latest released business performance forecast: None

Net income%
25.0

Million yen
1,050

Net income per
share
%
Yen
15.7
10,548.52

4. Others(1) Changes in significant subsidiaries during the consolidated quarter (six months) under review(changes in subsidiaries accompanying change in the scope of consolidation): Yes
New: 6 (Company name) TKR Corporation, Tohoku TKR Corporation, TKR MANUFACTURING(MALAYSIA) SDN. BHD., TKR PRECISION (MALAYSIA) SDN. BHD., TKR
HONG KONG LIMITED, TKR HUANAN ELECTRONICS (DONG GUAN) CO.,LTD.
Excluded: None (Company name:)(Note)For details, refer to "2. Summary (Other) Information" on page 4 of the Attachment.

(2) Application of accounting procedures specific to creation of quarterly consolidated financial statements: Yes(Note)For details, refer to "2. Summary (Other) Information" on page 4 of the Attachment.

(3) Change of accounting policies; change and/or restatement of accounting estimates
1) Change of accounting policies caused by revision of accounting standards:
2) Change of accounting policies other than stated in (1):3) Change of accounting estimates:
4) Retroactive restatement:(Note)

Yes
None
None
None

For details, refer to "2. Summary (Other) Information" on page 4 of the Attachment.

(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (including
1H FY 2012
108,055 shares FY 2011
108,055 shares
treasury stock) at end of period
2) Number of treasury stock at end of period
1H FY 2012
7,980 shares FY 2011
8,515 shares
3) Average number of shares outstanding
1H FY 2012
99,543 shares 1H FY 2011
99,533 shares
during the period(Note)On April 1, 2011, the Company instituted a 5-for-1 stock split of common shares. The number of shares is calculated assuming thatthe stock split was carried out the beginning of the previous consolidated fiscal year.

* 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 operating
environment. 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 of
the Quarter under Review” on page 4 of the Attachment.
(How to obtain Quarterly Financial Results Presentation Materials)
Quarterly financial results presentation materials are published on the same day on TDnet.
Explanatory meeting for institutional investors and analysts is scheduled to be held on December 7, 2011. The video of the meeting will beavailable on the Company’s website promptly.
(Stock sprit)
On April 1, 2011, the Company instituted a 5-for-1 stock split of common shares. The net income per share and diluted net income per share
are calculated assuming that the stock split was carried out the beginning of the previous consolidated fiscal year.

Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) (Based on J-GAAP)

1. Qualitative Information Concerning Financial Results of the Quarter under Review

Forward-looking information included in the text reflects the judgment of the nms Group (the Company and consolidated
subsidiaries) as of the end of the consolidated quarter under review.

(1) Qualitative information concerning operating results
In the period under review, as the impact of the Great East Japan Earthquake that hit in March 2011 showed signs of spreading
extensively, there was movement toward reconstruction, such as the manufacturing industry quickly restoring parts and materials
supply chains. However, despite the fact that a new Japanese prime minister took office, there were no signs of the government
being able to secure funds for reconstruction, and consensus could not even be reached on how to resolve the nuclear powerissue. Under these conditions, there was a sense of economic stagnation within Japan, exemplified by the Japanese government’s
inability to settle on basic stances regarding numerous economic issues such as measures to combat the strong yen, pension
reform, and whether to participate in negotiations on the Trans-Pacific Partnership. In addition, the Japanese economy struggled
as numerous negative global economic developments unfolded that suggest more economic turbulence since the collapse of
Lehman Brothers, including the downgrading of U.S. government debt and the Greek debt crisis.
Under these conditions, Production at manufacturers in our industry has started to recover faster than previously expected after
the Great East Japan Earthquake. With the supply chain recovering at a considerable speed and each company swiftly facilitating
readjustment of their production systems in fears of the power supply shortage during the summer, we were able to restore astable production status.
However, situations in which manufacturers keep domestic production remain difficult due to obstacles such as high corporation
tax rates and the signs of long-term strong yen. In mid-and-long term, shifting manufacturing bases overseas is unavoidable.
Occasioned by these circumstances, 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. The Group has been successful to a certain degree in regard to these efforts. Specific measures include thefollowing:- 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
The earthquake has impacted also the Group’s earnings to no small extent. In spite of this, results have been ahead of
expectations, as the Group has frequently been nominated as a service provider by Group clients whose production shifted intohigher gear to cover inventory shortages.
As a result, for the second quarter sales revenue increased 22.5 percent on the year to 11,006 million yen, but operating income
declined 46.0 percent to 149 million yen and ordinary income fell 68.3 percent to 83 million yen. Net income for the period
totaled 1,273 million yen (+66.5 % on the year).
Segment results developed as follows.
[1] Inline Solutions (IS) operations
The Group’s manufacturing clients have been faced with an array of problems after the Great East Japan Earthquake and in thesubsequent recovery efforts, such as physical damage to plant and equipment, partly dysfunctional supply chains forcomponents procurement, and unstable production operations due to electric power shortages. Considering these obstacles, in
mid-and-long term, manufacturers have reached a situation compelling them to review their production systems from wider
global perspective on the assumption of shifting manufacturing bases overseas.
On the other hand, in the period under review, parts procurement has been recovering fast despite unavoidable production
adjustments. Manufacturers has changed their direction from depleted inventories towards increased production and built up theagile production shift to address electricity supply problems in the summer. As a result, earnings of the Group’s IS operations
were almost back to the level before the earthquake in June and has exceeded the last year’s earnings from August.
Moreover, in connection with the launch of overseas IS operations, to acquire new orders, aggressive sales and marketing
activities were promoted in China and Vietnam respectively in cooperation with Beijing Zhongji Zhonghe International
Technical Services Ltd. (“Zhongji Zhonghe”) and nms International Vietnam Company Limited. (“nms Vietnam”). In particular,
Zhongji Zhonghe was unable to achieve the net sales forecasts for the first half but trade inquiries from Japanese manufacturers
have been strong and the company was able to steadily make progress on preparations for expanding business, which included-2 -Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) (Based on J-GAAP)

opening an office in the city of Wuxi, located in eastern China where there is a concentration of Japanese manufacturers.
Based on the foregoing, for the consolidated quarter under review, the Group reported revenues of 4,407 million yen (+2.0 % on
the year) with operating income of 464 million yen (+8.7 % on the year).
[2] Manufacturing Solution (MS) operations
With regard to MS operations, although the physical damage from the earthquake, specifically with respect to buildings, was not
small, in May the Group was quick to implement transfers of operating bases and worked with the objective of a speedy
resumption of operations. Thanks to these efforts, performance in June recovered almost to the level before the earthquake.
Moreover, under a management policy of proactive development activities in new business areas, MS operations has worked todevelop repair operations and acquire orders also outside the existing operations for home-use game consoles and mobile phones.
In the period under review, the lineup of target items for repair was increased in the field services area which provides visit
repair services. Moreover, existing repair operations which contract repair work have continued to enjoy the trust of
manufacturers, and efforts have been made to at further business growth.
As a result, the Group reported revenues of 1,491 million yen (−6.9 % on the year) with operating income of 229 million yen(−5.8 % on the year).
[3] Global Engineering (GE) operations
GE operations in the period under review engaged in aggressive sales and marketing activities to acquire new orders frommanufacturing clients with a view to keep the effects of the earthquake as small as possible. With respect to business initiative in
nms Group’s global contracting business (“The UKEOI”) designed to capitalize on the Group’s contracting power overseas, by
shifting the responsible department in Japan side that collaborate with Zhongji Zhonghe and nms Vietnam to the IS operations,the domestic technical staff dispatch business became the main entity at GE operations. In the period under review, there were
initial signs of difficulty in securing engineers in the market for Japanese engineers dispatch, which nms viewed as a business
opportunity; working with Beijing Rihua Caichuang International Technical Services Ltd. and Zhongji Zhonghe, two local
affiliates in China, nms made further improvements to the Group’s unique business model of dispatching Chinese engineers toJapanese manufacturers in China and met the needs of its clients.
As a result, the Group reported revenues of 308 million yen (−5.9 % on the year) with operating income of 22 million yen(+27.5 % on the year).
[4] Electronics Manufacturing Service (EMS) operations
As a business centered on SHIMA Electronic Industry Co., Ltd, which joined the Group in July 2010, and its subsidiaries inHong Kong and Malaysia and the China based manufacturing service plant that caters to the Hong Kong subsidiary ("SHIMAElectronic Industry Group"), EMS operations has developed its business up to the period under review. In addition, due to the
management integration of TKR Corporation by purchasing more than half of its shares in July 2011, nms constructed theframework to promote EMS operations with TKR Corporation and its subsidiaries in Japan (3 corporations), Malaysia (2corporations), Hong Kong (2 corporations) and China (1 corporation) ("TKR Group") along with the SHIMA Electronic Industry
Group, which was turned into a subsidiary last year. However, results for the period under review declined more strongly than at
the Group’s other operations due to the direct effects from disrupted global components procurement after the Great East Japan
Earthquake.
On the other hand, all-out efforts were made to limit performance deterioration as much as possible through cost minimum
operations as well as rigorous reviews will be implemented with regard to sales, marketing, and technology in order to obtainfurther synergies between group operations in the future.
As a result, the Group reported revenues of 4,799 million yen (+75.7 % on the year) with operating income of 7 million yen(−86.2 % on the year).
As the financial results of TKR for the first-half period include the results before the date of acquisition, the financial results of
TKR Group are not included in the quarterly consolidated financial statements.
(2) Qualitative information concerning financial position
Consolidated assets at the end of the period under review increased 13, 181 million yen compared with the end of the priorfiscal year to 20,543 million yen.
Current assets increased 7,896 million yen compared with the end of the prior fiscal year to 14,404 million yen. This was due
to cash and deposits, trade notes and accounts receivable, and raw materials and supplies, which increased 2,976 million yen,
3,312 million yen, and 593 million yen, respectively.
Fixed assets increased 5,284 million yen compared with the end of the prior fiscal year to 6,139 million yen. This was due to-3 -Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) (Based on J-GAAP)

property, plant, and equipment, and investments and other assets, which increased 4,126 million yen and 868 million yen,respectively.
Consolidated liabilities increased 9,497 million yen compared with the end of the prior fiscal year to 14,690 million yen.
Current liabilities increased 7,365 million yen compared with the end of the prior fiscal year to 11,597 million yen. This wasdue to trade notes and accounts payable and short-term loans payable, which increased 2,233 million yen and 4,313 million yen,respectively.
Long-term liabilities increased 2,132 million yen compared with the end of the prior fiscal year to 3,092 million yen. Thiswas due to long-term loans and accrued employees’ retirement benefits, which increased 1,298 million yen and 423 million
yen, respectively.
Consolidated net assets 3,683 million yen compared with the end of the prior fiscal year to 5,853 million yen. This is due toretained earnings and minority shareholder's interest, which increased 1,233 million yen and 2,529 million yen, respectively.
(Cash flow)
Consolidated net cash and cash equivalents ("Cash") at the end of the period under review totaled 4,095 million yen (1,773
million yen at the same period in the previous year).
Cash flows and relevant factors in the period under review are as follows:[Cash flows from operating activities]
Cash used in operating activities totaled 295 million yen (Cash provided by operating activities totaled 377 million yen at thesame period in the previous year). Main factors were a 1,331 million yen in income before taxes, a 1,198 million yen in goodwill
expenses and a 259 million yen decrease in accounts payable.
[Cash flows from investing activities]
Cash provided by investing activities totaled 462 million yen (Cash used in investing activities totaled 420 million yen at
the same period in the previous year). Main factor was a 517 million yen in income from the acquisition of subsidiary stocks
due to a change in the scope of consolidation.
[Cash flows from financing activities]
Cash provided by financing activities totaled 2,229 million yen (Cash provided by financing activities totaled 920 million yen at
the same period in the previous year). Main factors were a 2,405 million in net repayment of short-term loans and a 139 million
in repayment of long-term loans.
(3) Qualitative information concerning business performance forecast
The earning estimates for the fiscal year ending March 31, 2012 (full year) listed in “Notice about Revision on Earning Estimates
for the Consolidated Fiscal Year Ending March 31, 2012 (Full Year)” released on September 27, 2011, remain unchanged. The
forward-looking statements such as the forecasts for the business performance described in this document are based on 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 operating environment.

2. Summary (Other) Information(1) Changes in significant subsidiaries during the consolidated quarter (six months) under review
On July 28, 2011, the Company acquired 53.01% of TKR Corporation's shares, turning the company into a subsidiary. With
the acquisition, the subsidiaries of TKR Corporation, Tohoku TKR Corporation, Iwate TKR Corporation, Ibaraki TKRCorporation, TKR HOLDINGS LIMITED, TKR MANUFACTURING (MALAYSIA) SDN. BHD., TKR PRECISION(MALAYSIA) SDN. BHD., TKR HONG KONG LIMITED, TKR HUANAN ELECTRONICS (DONG GUAN) CO., LTD.,
become second-tier subsidiaries of the Company.

(2) Application of accounting procedures specific to creation of quarterly consolidated financial statements(Application of accounting procedures specific to creation of quarterly consolidated financial statements)
None.
(Application of simplified accounting procedures and special accounting procedures)Consolidated depreciation charges on non-current assets are computed pursuant to the declining balance method andperiodically prorated based on the depreciation charge amount for the fiscal year.
(3) Change of accounting policies; change and/or restatement of accounting estimates(Application of the Financial Accounting Standard for Net Income Per Share)
Beginning with the first quarter of the current fiscal year, the Company applies the Accounting Standard for Net Income Per
Share (Business Accounting Standard No. 2; June 301, 2010), the Application Guideline for the Accounting Standard for Net
Income Per Share (Business Accounting Standard Application Guideline No. 4, June 30, 2010; Promulgated Portion) and-4 -Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) (Based on J-GAAP)

Practical Solution on Net Income Per Share (Professional Issue Task Force Report No.9, June 30, 2010).
A stock split was conducted during the first quarter of the fiscal year under review. The net income per share and diluted net
income per share are calculated assuming that the stock split was carried out the beginning of the previous consolidated fiscal
year.

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