Consolidated Financial Statements for the First Quarter of Fiscal Year Ending March 31, 2012
(Three Months Ended June 30, 2011) (Based on J-GAAP)
August 5, 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: August 5, 2011
Scheduled Commencement Date of Dividend Payout: —First Quarter Financial Results Presentation Materials: Yes
Explanatory Meeting on First Quarter Financial Results : None
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2012 (April 1, 2011 – June 30, 2011)(1) Consolidated results of operations (three months)
Net sales
Operating income
Million yen%
Million yen
5,346
—45
—
1Q FY 2012————
1Q FY 2011
(Note) Comprehensive income (million yen): 1Q FY 2012: (50) (—%)
Net income per share(Percentages represent year-over-year changes)
Ordinary incomeNet income%Million yen%
Million yen%21—(0)—————
1Q FY 2011: — (—%)

Diluted net income per shareYen(7.46)

Yen
1Q FY 2012—
1Q FY 2011——Note 1: Quarterly consolidated financial statements were first prepared beginning with the second quarter of the fiscal year ended March 31, 2011.
Figures for the first quarter of the fiscal year ended March 31, 2011 and changes compared with the same quarter a year earlier are therefore notstated.
Note 2: With regard to diluted net income per share data for the first quarter of the fiscal year ending March 31, 2012, although dilutive
instruments are in issue, diluted net income per share is not stated since a net loss was reported for the period.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Million yen
Million yen
1Q FY 2012
7,522
2,120
FY 2011
7,362
2,169
Reference: Shareholders’ equity (million yen): 1Q FY 2012: 2,094
FY 2011: 2,147%
27.8
29.2

2. Dividends
1Q-endInterimYen

FY 2011
FY 2012FY 2012(forecasts)

Yen
0.00

—
—

Annual dividends
3Q-end
Yen—0.00—

YearendAnnualYen
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
1H (six months)
Full year

Million yen
11,50024,500%28.0
18.5

Operating income

Ordinary income

Million yen
150650Million yen
120630%(45.7)
7.8

Note: Revision of the latest released business performance forecast: None%(54.8)
7.9

Net income
Million yen
60370

Net income pershare%Yen(92.2)
602.77(59.2)
3,717.10

4. Others(1) Changes in significant subsidiaries during the consolidated quarter (three months) under review(changes in subsidiaries accompanying change in the scope of consolidation): None
New:
None (Company name:)
Excluded: None (Company name:)(2) Application of accounting procedures specific to creation of quarterly consolidated financial statements: Yes(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:

Yes
None
None
None

(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (including
1Q FY 2012
108,055 shares FY 2011
108,055 sharestreasury stock) at end of period
2) Number of treasury stock at end of period
1Q FY 2012
8,515 shares FY 2011
8,515 shares
3) Average number of shares outstanding
99,525 shares
1Q FY 2012
99,540 shares 1Q FY 2011
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 FinancialInstruments 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 ofthe Quarter under Review” on page 3 of the Attachment.
(How to obtain Quarterly Financial Results Presentation Materials)
Quarterly financial results presentation materials are published on the same day on TDnet.

Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Quarter of Fiscal Year Ending March 31, 2012
(Three Months Ended June 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 consolidatedsubsidiaries) as of the end of the consolidated quarter under review.

(1) Qualitative information concerning operating results
The Japanese economy in the period under review was affected by the widespread devastation caused by the Great East Japan
Earthquake on March 11, 2011, which introduced a highly adverse economic environment. The nuclear accident that occurred as
secondary damage of the earthquake has drawn into question the principles of Japan’s reliance on nuclear power generation andposes a huge problem for the supply of electric power, adding to the uncertainty overshadowing the economic environment in thesecond and following quarters. However, despite the fact that the pace of recovery, including the rebuilding of infrastructure in
the disaster area, remains slow, the supply disruptions of electronic components feared immediately after the earthquake havegiven way to a rapid rebound and economic activity is gradually moving back to normal.
Under these conditions, production at manufacturers in our industry has started to recover faster than previously expected after
the Great East Japan Earthquake. As a result, operations in manufacturing staff dispatch and subcontracting services too havebeen displaying a more rapid rebound than anticipated. However, in the light of the earthquake damage and the resulting severed
supply chains and power supply insufficiencies, etc., manufacturers have been reviewing their production frameworks and arelooking for ways to sustain domestic production despite obstacles such as high corporation tax rates and the strong yen. On theother hand, current production has been seeing a number of manufacturers increase output to cover inventory shortages causedby the sudden production recovery, with positive effects also for the industry of the Company. There is occasional evidence thatorders from manufacturers tend to concentrate on industry members with outstanding staff procurement capabilities and an
established reputation for compliance, which has further deepened the divide between strong and weak industry members.
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. 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 ofexpectations, as the Group has frequently been nominated as a service provider by Group clients whose production as alreadyshifted into higher gear. As a result, consolidated sales for the first quarter totaled 5,346 million yen, with operating income of
45 million yen, ordinary income of 21 million yen, and net income near break-even.
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. In light of these obstacles,
manufacturers have reached a situation compelling them to review the roles of production bases from wider global perspective.
On the other hand, in the period under review, parts procurement has been recovering fast despite unavoidable production
adjustments. With manufacturers changing direction from depleted inventories towards increased production, a preference isemerging for building up inventories taking into consideration the electricity supply problems in the summer and later. As aresult, earnings of the Group’s IS operations in June were almost back to the level before the earthquake, staging a recovery
ahead for expectations.
Moreover, in connection with the launch of overseas IS operations, aggressive sales and marketing activities were promoted inChina and Vietnam respectively in cooperation with Beijing Zhongji Zhonghe International Technical Services Ltd. (“ZhongjiZhonghe”) and nms International Vietnam Company Limited. (“nms Vietnam”). Despite a lack of big successes in the period
under review, trade inquiries from Japanese manufacturers have been strong, and conditions for an early resumption of full-scale
operations are in place.
Based on the foregoing, for the consolidated quarter under review, the Group reported revenues of 2,008 million yen withoperating income of 205 million yen.
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(Three Months Ended June 30, 2011) (Based on J-GAAP)[2] Manufacturing Solution (MS) operations
With regard to MS operations, although the physical damage from the earthquake, specifically with respect to buildings, was notsmall, in the period under review the Group was quick to implement transfers of operating bases and worked with the objectiveof a speedy resumption of operations. Thanks to these efforts, performance in June recovered almost to the level before theearthquake. Moreover, under a management policy of proactive development activities in new business areas, MS operations
will work to develop repair operations and acquire orders also outside the existing operations for home-use game consoles andmobile phones. Although these results could not be accomplished in the period under review, existing repair operations havecontinued to enjoy the trust of manufacturers, and efforts have been made to at further business growth.
Based on the foregoing, for the consolidated quarter under review, the Group reported revenues of 685 million yen with
operating income of 79 million yen.
[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, byshifting the operations 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. At the same time, research has been conducted for the launch ofoverseas staff dispatch operations.
Based on the foregoing, for the consolidated quarter under review, the Group reported revenues of 155 million yen withoperating income of 15 million yen.
[4] Electronics Manufacturing Service (EMS) operations
EMS operations constitute a 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 the Hong Kong
subsidiary.
Results for the period under review declined more strongly than at other operations due to the direct effects from disrupted
global components procurement after the Great East Japan Earthquake.
However, based on expectations of a rebound beginning in the second quarter, all-out efforts were made to limit performance
deterioration as much as possible through cost minimum operations. Moreover, at EMS operations, rigorous reviews will be
implemented with regard to sales, marketing, and technology in order to obtain further synergies between group operations in thefuture.
Based on the foregoing, for the consolidated quarter under review, the Group reported revenues of 2,497 million yen withoperating income of 12 million yen.
As no quarterly consolidated financial statements were prepared for the first-quarter period of the previous fiscal year, prior-yearcomparisons are omitted.
(2) Qualitative information concerning financial position
Consolidated assets at the end of the period under review totaled 7,522 million yen.
Current assets totaled 6,672 million yen, which included 1,587 million yen in cash and deposits, 3,119 million yen in trade notes
and accounts receivable, and 969 million yen in raw materials and supplies.
Fixed assets totaled 850 million yen, which included 429 million yen in property, plant, and equipment, and 406 million yen in
investments and other assets.
Consolidated liabilities totaled 5,402 million yen.
Current liabilities totaled 4,512 million yen, which included 1,439 million yen in trade notes and accounts payable, 1,405 million
yen in short-term loans payable, and 1,071million yen in other accounts payable.
Consolidated net assets totaled 2,120 million yen, comprised of 500 million yen in legal capital, 216 million yen in capitalsurplus, and 1,470 million yen in retained earnings.
As no quarterly consolidated financial statements were prepared for the first-quarter period of the previous fiscal year, prior-yearcomparisons are omitted.
(3) Qualitative information concerning business performance forecast
The earning estimates for the consolidated first half of fiscal year ending March 31, 2012 (six months ending September 30,2011) listed in “Notice about Revision on Earning Estimates for the Consolidated First Half of Fiscal Year Ending March 31,
2012 (Six Months Ending September 30, 2011)” released on August 1, 2011, remain unchanged. Also, the earning estimates for-3 -Nippon Manufacturing Service Corporation. (2162) /Consolidated Financial Results for First Quarter of Fiscal Year Ending March 31, 2012
(Three Months Ended June 30, 2011) (Based on J-GAAP)

the fiscal year ending March 31, 2012 (full year) listed in “Consolidated Financial Statements for the Fiscal Year Ended March31, 2011” released on March 31, 2011, remain unchanged.
Notably, effects on operating results from the acquisition of the stock of TKR Corporation are currently being researched andnot reflected in earnings estimates. Earnings estimates will be revised as soon as performance data of TKR Corporation become
available.
Note: For the acquisition of the stock of TKR Corporation, please refer to "the Acquisition of Shares in TKR Corporation,
Turning the Company into Subsidiary (Management Integration)" released on July 26, 2011.

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