NSK Ltd. Business Report FY ended Mar. 2020

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 Rate of Change (%) Factors
Overall
Sales 831,034 991,365 (16.2) -
Operating income 24,065 79,229 (69.6) -
Current net income 17,412 55,809 (68.8) -
Automotive Business Division
Sales 573,814 689,658 (16.8) Sales decreased due to the sluggish automotive markets in China and Europe, lower unit-production volumes of new vehicles because of the coronavirus global pandemic, and lower sales of electric power-steering systems due to the launch of redesigned vehicles.
Operating income 9,804 44,949 (78.2) -

 

Recent Business Developments

NSK Steering Systems’ Akagi Plant Launched Production of Ball Screws in January 2020
-NSK Ltd. announced that it has inaugurated a second line producing ball screw units for electric-hydraulic brakes at Akagi plant in January 2020. Global demand for the ball screw units is rapidly increasing with regulators mandating new vehicles be equipped with automatic emergency braking systems. NSK started production of the units in March 2019 at its Saitama plant. NSK is also considering establishing additional production sites outside Japan, and is aiming to produce more than 10 million units a year globally by 2026. The company is investing around JPY 10 billion to expand ball screw production capacity. (From a press release dated February 4, 2020)

-NSK Ltd. aims to win orders for ball-screws for power-brake boosters used in 10 million vehicles by fiscal year 2026 that ends in March 2027. Demand for brake boosters using highly responsive motors is estimated to increase with the spread of Advanced Driver-Assistance Systems (ADAS) and vehicle electrification technologies. Ball-screws are used in machine tools that require high position accuracy and enables highly efficient conversion of rotary motion of the motor into linear motion. New international standards for automatic emergency brake systems will become effective in Japan in early 2020 and will spread to other countries in stages, which will contribute to an increase in orders for ball-screws. NSK has taken orders for ball-screws for power-brake boosters used in five million vehicles by FY 2021 and expanded its production capacity in Japan accordingly. However, the initial production plan is expected to be postponed due to weak sales of new cars affected by economic stagnation, as a result of U.S.-China trade frictions and unstable political situations outside Japan. (From an article in the Nikkan Jidosha Shimbun on December 18, 2019)

Signed Agreement with Volkswagen on Steering Business
-NSK Ltd. (NSK) and Volkswagen AG (Volkswagen) have reached a joint development agreement for a steering system business. NSK intends to gain advanced technologies and know-how on autonomous driving and electrification through the joint research and development with the automaker. The two companies will also cooperate in the production of steering systems. Initially they will jointly develop next-generation electronic power steering (EPS) systems to start mass production within three to four years. This will be the first time for NSK to collaborate with an automaker in areas beyond development. NSK has been supplying bearings and EPSs for midsize and small cars to the Volkswagen Group. (From an article in the Nikkan Jidosha Shimbun on June 7, 2019)

 

R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 FY ended Mar. 31, 2018
Overall 18,265 19,023 17,059
Automotive Business Division 13,866 14,909 13,222

 

Product Development

Developed 30K RPM Ball Bearing for Drivetrain Motors Mounted on Electric Vehicles
-NSK Ltd. (NSK) has developed a high-speed-revolution ball bearing that can be used for electrified drive motors that revolve at 30,000 revolutions per minute (rpm). The retainer of existing ball bearings deform toward the outside by centrifugal force during high-speed revolution, and are broken when coming into contacted with the outer ring. NSK has adopted a new material and shape so that retainers are resistant to deformation in order to improve high-speed revolution. The company aims to achieve sales of JPY 10 billion with the new ball bearing in 2030, and will start the development of products that can cope with higher speeds. Use of the new ball bearing will contribute to the downsizing of motors by about 45% compared with motors that use bearings that withstand up to 11,000 rpm. (From an article in the Nikkan Jidosha Shimbun on March 12, 2020)

Developed New Taper Roller Bearing for Various Types of Electric-Powered Vehicles
-NSK Europe informed that it has developed a new tapered roller bearing for use in electric vehicles (including hybrid, fuel cell and battery electric variants) that offers long life even under severely lean lubrication conditions. The bearings dramatically boost seizure resistance under lean lubrication, in turn improving transmission reliability and efficiency, and enabling the use of smaller lubrication systems and more compact gearbox designs. NSK created a special cage that retains and distributes oil in fine grooves via capillary action. The oil is held in the cage near the roller end and, when lubrication is low, seeps out of the fine grooves to the area most in need. It achieves seven times higher seizure resistance after shutting off the oil pump in comparison with the company’s conventional alternatives. Compared with NSK’s conventional tapered roller bearings, the latest bearings require 95% less lubrication oil to prevent seizure. The bearings also offer a reduced width, which has been achieved by optimising the cage shape. In a comparison with NSK’s conventional tapered bearings, the latest product is 10% narrower and has 5% less mass. (From a press release on January 13, 2020)

Developed Third-generation In-wheel Motor Incorporating Motor, Inverter, and Wireless Charger
-NSK Europe that it has developed the third generation of its in-wheel motor, the world’s first design of its type to feature a complete package comprising motor, inverter and wireless charging unit. The innovative wireless in-wheel motor (W-IWM) for the electric vehicle (EV) market is capable of charging from coils embedded in the road, while in motion. The third-generation W-IWM has been created for use in larger passenger cars (25kW per wheel). The aim is to enter the verification phase for the real-world testing of an in-motion wireless charging system by 2025. Development of the latest unit was conducted jointly by a research group comprising NSK, the Fujimoto Laboratory at the University of Tokyo’s Graduate School of Frontier Sciences, Bridgestone Corporation, ROHM Co Ltd and Toyo Electric Mfg Co Ltd. (From a press release on December 18, 2019)

Developed Redesigned LCube II Series of Tapered Roller Bearings for EV Transmissions
-NSK Europe unveiled its new LCube II series of tapered roller bearings for use in electric vehicle (EV) transmission systems. LCube II bearings are specifically designed to improve efficiency by contributing to better fuel economy (lower power consumption) and enhance reliability through higher levels of durability and seizure resistance. LCube II bearings feature pore-like micro-indents in the rolling contact surface and roller head. This microstructure helps retain an oil film, which significantly inhibits surface damage. The upshot is that LCube II tapered roller bearings achieve more than eight times higher durability and equal or greater seizure resistance compared with conventional alternatives. An additional benefit is that improved lubricant oil accumulation and retention on the roller surface contributes to 10% less friction at low speeds in comparison with conventional bearings. (From a press release on December 13, 2019)

Developed Tapered Roller Bearing for Use in Sparsely Lubricated Environments (ex: Electric Vehicle Gear Boxes)
-On October 9 NSK Ltd. announced that it has developed a tapered roller bearing for a lean lubrication environment such as gearboxes of electrified vehicles. Compared with other types of roller bearings, tapered roller bearings can withstand high load but are prone to seizures at the end surface of the roller due to oil film shortage. The new bearing has fine grooves in the part coming into contact with the end surface of the roller of the retainer. The grooves retain and supply lubricants, thus enhancing the seizure resistance. Gearbox manufacturers are reducing the use of lubricants with the aim of improving fuel efficiency and electric mileage. NSK projects that the sales of this new bearing developed for a lean lubrication environment will reach JPY 2 billion in 2025. (From an article in the Nikkan Jidosha Shimbun on October 10, 2019)

Exhibited Latest Technology and Products in Field of Electrification at Tokyo Motor Show 2019
-NSK Ltd. announced that it will showcase its latest technologies and products for electrification at the Tokyo Motor Show. The “Seamless 2-speed e-Axle Concept” will be on display, which combines a high speed motor with NSK’s own traction drive speed reducer. This combination contributes to extending the cruising range of electric vehicles (EVs) by making it 30% smaller and lighter and enabling an increase in battery capacity. The company will also showcase its “Cluster Rover Module Concept” as a world premiere, which integrates acceleration, turning and braking functions. In addition, the company will exhibit tapered roller bearings for the lean lubrication environments of EVs for the first time and present extremely high speed needle bearings for planetary mechanisms. (From a press release on October 11, 2019)

Developing 2-Speed Transmission Capable of Enhancing Driving Performance and Extending the Traveling Distance of Electric Vehicles
-NSK Ltd. is developing a two-speed transmission mechanism to extend the cruising range and improve driving performance of electric vehicles (EVs). The transmission mechanism includes a traction drive speed reducer without gears and a magnetostrictive torque sensor to detect output torque. The company aims to put it into practical use for adaption in EVs that are released around 2023 - 2024. The “Seamless 2-speed e-Axle” drive system includes the traction drive speed reducer and the magnetostrictive torque sensor, and NSK will promote the use of it as the entire system or individual units. With a reduction in size and weight and an improvement in energy efficiency, the new transmission mechanism is expected to offer an improvement of 7% in power efficiency in the WLTC mode (for C segment vehicles in Europe). (From an article in the Nikkan Jidosha Shimbun on September 10, 2019)

Developed New Grease that Improves Durability of Bearings Used in Shaking/Oscillating Environments
-NSK, Ltd. (NSK) announced that it has developed new grease that enhances the durability of bearings used under a fluctuating environment. The base oil, thickener and additive in the grease were optimized to reduce abrasion of bearings while maintaining heat resistance. According to Hayato Omi, NSK executive officer, the grease improves “sound durability” to reduce noise generated by abrasion. Omi also said that the new grease will contribute to sales promotion of bearings. Bearings used in a fluctuating environment, such as electric power steering, is subject to fretting abrasion caused by metal contact between the rolling body and the inner and outer ring. The metal contact occurs when grease leans to one side as the bearing rotates in one direction but does not return to the original position when the bearing rotates backward. To address this problem, NSK changed the specification of the thickener added to retain the base oil so that it sticks to the rolling body more easily. By making it easy to separate the thickener and the base oil, the thickener remains on the surface of the rolling body as a layer, thereby reducing fretting abrasion and the noise by about 70% compared with the existing grease. (From an article in the Nikkan Jidosha Shimbun on April 19, 2019)

 

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 FY ended Mar. 31, 2018
Overall 54,927 81,102 68,788
Automotive Business Division 33,187 54,926 49,646

 

Capital Investments for the Fiscal Year Ending in March 2021

-The Company is unable to finalize its capital-investment spending because of the difficulty in forecasting when the coronavirus will end and how long it will take for the global economy to recover thereafter.