Transport Equipment Business 1/2 Nabtesco Operating Review Transport Equipment Business Fiscal 2012 Highlights Net sales in the Transport Equipment Business fell 8.3% year on year to ¥44,262 million, while operating income shrank 30.6% year on year to ¥4,214 million. Sales of railroad vehicle equipment saw a decline due to a seasonally driven lack of new vehicle launches in the domestic market as well as a decrease in sales to China. Sales of commercial vehicle equipment rose, reflecting growing demand for trucks in emerging countries. Marine vessels equipment sales fell on the back of a stagnant vessel market. In December 2012, Nabtesco established a joint venture with Minda Industries, Ltd. in India. The joint venture aims to strengthen the commercial vehicle equipment business in India. In March 2013, Nabtesco acquired OCLAP S.R.L. (Italy). Going forward, Nabtesco intends to expand sales in Europe, including sales of the new electric-driven door operating system and other products. In April 2013, Nabtesco established a production base for marine vessels equipment in Shanghai, China. The base will support further promotion of sales in the Chinese market. Outlook for Fiscal 2013 For fiscal 2013, Nabtesco is expecting net sales in the Transport Equipment Business of ¥48,700 million, up 10.0% year on year, and operating income of ¥5,300 million, up 25.8%. Sales of railroad vehicle equipment will increase, reflecting the recovery of sales to China and the launch of new vehicles in the domestic market. Marine vessels equipment sales are expected to decline due to the impact of stagnant vessel demand at home and abroad. Sales of commercial vehicle equipment are forecasted to grow due to expanded external demand for trucks, mainly from Southeast Asian markets. Transport Equipment Business 2/2 Railroad brake systems and door operating units, engine control systems for marine vessels, air brake Operations peripheral equipment for commercial vehicles, etc. Railroad vehicle Brake systems, door operating units: JR Group companies, private Japanese railway equipment companies, Kawasaki Heavy Industries, Chinese high-speed rail and urban transport Remote control systems for marine diesel engines: Kawasaki Heavy Industries, Mitsui Marine vessels Main Customers (Names Engineering & Shipbuilding, Hitachi Zosen, Mitsubishi Heavy Industries, Diesel United, equipment are Abbreviated) Hyundai Heavy Industries, MAN Diesel Commercial (Nabtesco Automotive Corporation), Air brake peripheral equipment for commercial vehicle vehicles: Hino Motors, Mitsubishi Fuso Truck and Bus, Isuzu Motors, UD Trucks equipment Japan Kobe Plant Railroad vehicle Manufacturing Bases equipment Overseas China, Italy Japan Seishin Plant Marine vessels equipment Overseas South Korea, China Commercial Japan Yamagata Plant vehicle equipment Overseas Thailand Nabtesco Automotive Corporation: Manufacture, sales and after-sales service of equipment for commercial vehicles Nabtesco Service Co., Ltd.: Sales, installation and maintenance of hydraulic and pneumatic equipment for automobiles, railroad vehicles and industrial machinery, etc. Japan Shikoku Marine Customer Service Co., Ltd.: Witnessed inspection, repair, maintenance and remodeling of marine vessels equipment and related parts NABTEC Co., Ltd.: Subcontractor for design of products and production equipment for various machinery Nabtesco Railroad Products (Beijing) Co., Ltd.: Sales and after-sales service for railroad vehicle brake systems and related products Taiwan Nabtesco Service Co., Ltd.: Manufacture, sales and after-sales service for railroad vehicle brake systems and other related products Jiangsu Nabtesco KTK Railroad Products Co., Ltd.: Manufacture and sales for railroad vehicle brake and door operating systems Nabtesco Marine Service Singapore Pte Ltd.: Maintenance and after-sales Group Network service for marine vessels equipment, mainly in Southeast Asia and Oceania Asia Nabtesco Marinetec Co., Ltd.: Manufacture, sales and after-sales service for main engine remote control equipment and electronic governor systems, mainly in South Korea Overseas Nabtesco Marine Machinery (Shanghai) Co., Ltd.: Design, manufacture, sales, quality assurance and after-sales service for marine vessels equipment Nabtesco Marine Control Systems (Shanghai) Co., Ltd.: Currently transferring operations to Nabtesco Marine Machinery (Shanghai Co., Ltd.) Nabtesco Automotive Products (Thailand) Co., Ltd.: Manufacture and sales of brake products for commercial vehicle NABMIC B.V.: Maintenance, sales and after-sales service for main engine remote control equipment and electronic governor systems Europe Nabtesco Oclap S.r.l.: Manufacture, sales and after-sales service of automatic door systems for railway rolling stock, platform screen doors, disabled passenger assistance equipment.