Nissin Kogyo Co., Ltd. Business Report FY ended Mar. 2016

Financial Overview

(IFRS, in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 Rate of Change (%) Factors
Sales 167,709 162,784 3.0 -
Operating income 7,490 12,090 (38.0)

-JPY 3.3 billion in expenses incurred with spinning off automotive brake-control and brake appliance business

Ordinary income 7,406 13,856 (46.6) -
Profit for the year attributable to owners of the parent 33,654 10,917 208.3 -Includes JPY 40.8 billion profits in transferring business
Sales by Segment
-Japan 24,684 24,837 (0.6) -Even though sales of products for automobiles and motorcycles decreased, sales of parts increased. As a result, sales in Japan were almost equal year-on-year.
-North America 43,841 36,366 20.6

-Higher business revenue due to a robust automotive market and favorable currency translation.

-Asia 86,452 86,389 0.1 -Even though sales in Thailand and Indonesia decreased, sales overall were practically the same as those of the previous year as a result of a launch of new model in China and favorable currency translation.
-South America/Europe 12,732 15,192 (16.2) -Even though a new automotive model was launched in Brazil and sales of motorcycles parts increased in Europe, sales overall decreased because of the depressed motorcycle market in Brazil and negative currency translation.

-The Company spun off the automotive brake control and brake appliance division, which became a discontinued business segment. As a result, sales, as well as earnings before taxes, for the fiscal years that ended in March 2015 and 2016 are shown for the remaining business sectors.

Joint Ventures

-On March 31, 2016, the Company spun off its automotive brake-control and brake appliance business and turned it into a joint-venture company with Autoliv (Sweden), called Autoliv-Nissin Brake Systems (ANBS). Nissin has a 49% stake while Autoliv has the remaining 51%. The Company aims at continuing to grow its business in the integrated brake system segment while increasing sales to global OEMs.

-Autoliv-Nissin Brake Systems (ANBS) combines the current brake control business of Autoliv with a “carve-out” of Nissin Kogyo's automotive braking business. ANBS has manufacturing facilities in Japan, China, and the U.S. It will be part of Autoliv's Electronics business segment (consisting of passive safety electronics products, ADAS products and brake control systems). The enterprise value of the joint venture is around JPY 58.2 billion (USD 524.4 million). Autoliv purchased 51% of the joint venture for JPY 29.7 billion (approximately USD 264 million. (From a press release on April 1, 2016)

-With manufacturing facilities in Japan, China and the United States, Autoliv-Nissin Brake Systems (ANBS) will include approximately 2,000 technical, commercial, manufacturing and administrative employees focused upon the design, development and production of "Brake Control and Brake Apply Systems" for the global light vehicle market. The joint venture will have three engineering sites and two test tracks with access to over 1,200 patents and other intellectual property. (From a press release on September 9, 2015)

-In November 2015, the Company established an R&D center, Autoliv Nissin Brake Research Asia Co., Ltd., in Bangkok, Thailand.


-The Company has taken its first order from Mazda Motor Corporation and started supplying aluminum rear brake calipers for the all-new "Roadster" sports car. Following this first order, the auto parts supplier intends to win more orders from Mazda by actively making new proposals to Mazda, whose auto sales are steadily growing. The rear brake calipers are all manufactured in Nagano and shipped to Mazda's plant in Hiroshima. The order quantity is not disclosed. (From an article in the Nikkan Jidosha Shimbun on April 30, 2015)

-Major supply agreements during the fiscal year that ended March 2016.

Car maker Model The Company's product Start of sales
Mazda "Roadster" Aluminum brake caliper, aluminum front upper arm Japan, May 2015

"Shuttle" Electric servo brakes (HV)
Master cylinders & master-power (petrol)
Front caliper
Torque rod bracket
Differential bracket (4WD)
Japan, May 2015
"Accord" North America Model Aluminum front disc brake caliper -
"Fit" North America Model Disc brake calipers (using pads compliant with copper regulations) -
GAC Honda "Vezel" VSA
Master cylinders & master-power
Front caliper
Pre-filled clutch system
Aluminum brackets

More than 110,000 units of both models were sold in 2015.
Dongfeng Honda "XR-V"

Nissin Kogyo’s Innovative Automotive Initiatives

Making use of technology on aluminum, launch high, value-added products that meet the need for improved fuel efficiency.

  • Work to offer more, stronger aluminum frame parts that reduce vehicle weight
  • Further expand sales of aluminum calipers

Develop and increase sales of advanced products that raise added value of autonomous brakes

  • Launch electric parking brakes (EPB)
  • Expand product range of drum-brake type EPBs

Rebuild the profit structure of the caliper business based on a scrap and build approach

Outlook for FY ending Mar. 31, 2017

(IFRS, in million JPY)
FY ending Mar. 31, 2017
FY ended Mar. 31, 2016
(Actual Result)
Rate of
Change (%)
Sales 160,000 167,709 (4.6)
Operating income 9,000 7,490 20.2
Ordinary income 11,000 7,406 48.5
Profit for the year attributable to owners of the parent 5,600 33,654 (83.4)

13th mid-year plan

(IFRS, in million JPY)
FY ending Mar. 31, 2017
FY ending Mar. 31, 2018
FY ending Mar. 31, 2019
FY ending Mar. 31, 2020
Sales 1,600 1,742 1,793 1,883
Operating margin (%) 5.6 - - 10.0

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 4,634 8,605 8,041

-For FY ending Mar. 31, 2017, JPY 5,000 million is planed for R&D expenditure.

R&D Facilities

Country Name of facility Location
Japan Nagano Development Center Tomi City, Nagano Pref.
Tochigi Development Center Nasukarasuyama City, Tochigi Pref.
Spain Nissin R&D Europe, S.L.U.

Barcelona, Catalunya

Thailand Nissin R&D Asia Co., Ltd. Bangkok
China Nissin R&D China - Zhongshan Zhongshan, Guangdong
Nissin R&D China - Chongqing Chongqing
U.S. Nissin R&D USA - East Liberty Ohio
Nissin R&D USA - Milwaukee Wisconsin

R&D Activities

-With a global perspective in mind, the Company is developing products, materials, and manufacturing methods in the pursuit of making its products designed mainly for two- and four-wheel vehicles lighter, smaller, more fuel efficient, safer and more comfortable. These include basic brake systems, mechatronics-based automatic control-systems for motorbike, and aluminum products, which form the backbone of its product range.

-The Company is working to develop products, materials, and manufacturing methods that contribute to reducing CO2 emissions.

-The Company focused on developing products that meet the market needs in North America, such as basic braking systems and aluminum products.

Major R&D Achievements in Automobile Parts

Foundation brake development
-To respond to the requirement for lower fuel consumption, the Company optimized the development of products for brakes which has less drag torque and less weight using aluminum technology. Also, the Company is lowering costs and producing more products locally at its global sites.
-The Company further expanded the applicable sizes of its series of new-design, low-drag, disc brake systems, including 15 inch front brakes.

Development of weight reduction technology
-In addition to making its iron made engine mounting brackets and knuckles lighter in weight, the Company developed aluminum chassis parts that are approximately 40% lighter. In addition, the Company is further working on developing parts that are thin-walled by using high-strength aluminum that has a particular characteristic of being easily stretched. The aluminum-cast engine mounting brackets are being equipped on 4 vehicle models, the aluminum-cast rear knuckles are being equipped on 3 vehicle model, while aluminum-cast front upper arms are being equipped on 1 vehicle model.

Product Development

Electrically controlled parking brake, rear; EPB
-The Company has developed a new electric parking brake (EPB). The new EPB comes with a choice of drum and disc types. The Company will begin production of both types of new EPBs in 2017. For the Company it is the first time to develop the new drum-type EPB, while it has produced disc-type EPB. The Company will separate its automobile brake control operations to establish a joint venture (JV) with Autoliv, Inc., a Swedish manufacturer. In line with the establishment of the JV, the Company is focusing on its automobile brake caliper business and other drivetrain components business. Since demand for EPBs is expected to grow, the Company will shift its EPB business into full gear in an effort to increase its competitiveness in the brake market. (From an article in the Nikkan Jidosha Shimbun on December 10, 2015)

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Japan 1,538 2,384 2,185
North America 5,027 2,801 3,149
Asia 5,149 5,954 6,548
South America/Europe 222 837 1,346
Adjustment (200) (319) (268)
Total 11,737 11,658 12,961

-In FY ending Mar. 2017, the Company plans to invest JPY 11,000 million in facilities and equipment.

Planned Capital Expenditure

(As of Mar. 31, 2016)
Company or Office Name Facility type Estimated
amount of
(in millions JPY)
Start Scheduled Completion
Tobu Plant
(Tomi City, Nagano Pref.)
Production facilities 600 Jun.
Naoetsu Plant
(Joetsu City, Niigata Pref.)
Production facilities 592 Aug.
Nagano Development Center
(Tomi City, Nagano Pref.)
R&D facilities 803 Dec.
Nissin APS Co., Ltd.
(Ueda City, Nagano Pref.)
Production facilities 380 Jan.
Nissin Brake Ohio Inc.
(Ohio, USA)
Production facilities 3,134 Oct.
Nissin Brake Georgia Inc.
(Georgia, USA)
Production facilities 3,130 Oct.
Nissin Brake de Mexico, S.A. de C.V.
(Guanajuato, Mexico)
Production facilities 667 Jan.
Nissin Brake (Thailand) Co., Ltd.
(Nakornratchasrima, Thailand)
Production facilities 2,844 Jan.
P.T. Chemco Harapan Nusantara
(Cikarang, Indonesia)
Production facilities 561 Apr.
Zhongshan Nissin Industry Co., Ltd.
(Guangdong, China)
Production facilities 3,305 Jan.
Nissin Brake Vietnam Co., Ltd.
(Vinh Phuc, Vietnam)
Production facilities 414 Jul.
Nissin Brake India Pvt. Ltd.
(Rajasthan, India)
Production facilities 341 Oct.
Nissin Brake Do Brasil Ltda.
(Manaus-Am, Brazil)
Production facilities 273 Apr.