Nissin Kogyo Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(IFRS, in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Sales | 188,221 | 166,889 | 12.8 | -Sales increased due to greater sales of (1) aluminum products in every business segment in North America, Asia, and Japan; (2) motorcycle products in Asia; and (3) automobile products in China. In addition, favorable currency translation contributed to increasing sales. |
| Operating income | 13,162 | 12,278 | 7.2 | - |
| Ordinary income | (1,173) | 12,880 | - | - |
| Profit for the year attributable to owners of the parent | (8,717) | 5,385 | - | - |
| Sales by Segment | ||||
| -Japan | 26,866 | 25,953 | 3.5 | -Sales increased due to greater sales of aluminum products and motorcycle products, despite a decrease in sales of automobile products and after-market/repair parts. |
| -North America | 42,045 | 42,078 | (0.1) | -Sales remained flat year-over-year because increased sales volumes of aluminum products and favorable currency translation were canceled out by lower sales of automobile products. |
| -Asia | 106,171 | 86,830 | 22.3 | -Sales increased because all of the Company’s subsidiaries in Asia, especially those in Thailand and China, generated greater sales year-over-year. In addition, favorable currency translation contributed to the increase. |
| -South America/Europe | 13,139 | 12,029 | 9.2 | -Sales increased because of a slight economic recovery in the Brazilian market and because of favorable currency translation. |
Outlook for FY ending Mar. 31, 2019 |
(IFRS, in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ended Mar. 31, 2018 (Actual Result) |
Rate of Change (%) |
|
| Sales | 190,000 | 188,221 | 0.9 |
| Operating income | 15,000 | 13,162 | 14.0 |
| Ordinary income | 15,000 | (1,173) | - |
| Profit for the year attributable to owners of the parent | 6,700 | (8,717) | - |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 4,805 | 4,744 | 4,634 |
-For FY ending Mar. 31, 2019, JPY 4,900 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 |
Major R&D Achievements in Automobile Parts
Foundation brake development
-In meeting the needs for improving fuel economy and making light-weight products, the Company developed a new-design, low-drag disc brake. Expanding content ratio of lighter weight brakes on more new vehicle models by replacing existing materials with aluminum ones.
-The number of vehicles on which electric parking brakes (EPBs) are being mounted is increasing in line with the electrification of automobiles. The Company is advancing cost-cutting initiatives across all of its product lines, as well as increasing local production outside Japan.
Development of weight reduction technology
-In meeting the requirement for lighter weight products, replace steel suspension parts and brackets with aluminum ones, which will reduce weight between 30-40%.
-The Company is expanding the use of aluminum materials and enhancing its casting technology for front knuckles, automotive products in which input loads are high and cast-iron is general used.
Product development
-The Company and NTN Corporation (NTN) will jointly develop an electro-mechanical brake (EMB) system that controls friction brakes with an electric motor. The two companies aim to put the brake into commercial application for electric vehicles (EVs) in 2025. EMBs are lighter than hydraulic brakes and use comparatively fewer components and have an advantage in cooperative control with regenerative brakes that covert deceleration energy into electric power. Nissin Kogyo and NTN will tap new needs by highlighting the system's strength to extend the mileage of EVs. They aim to commercialize it after securing a system fail-safe and clearing cost issues. (From an article in the Nikkan Jidosha Shimbun on November 7, 2017)
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Japan | 2,993 | 2,149 | 1,538 |
| North America | 1,454 | 3,493 | 5,027 |
| Asia | 5,668 | 5,448 | 5,149 |
| South America/Europe | 319 | 29 | 222 |
| Adjustment | (175) | (173) | (200) |
| Total | 10,258 | 11,214 | 11,737 |
-In FY ending Mar. 2019, the Company plans to invest JPY 12,500 million in facilities and equipment.
Planned Capital Expenditure |
(As of Mar. 31, 2018) |
| Company or Office Name | Facility type | Estimated amount of investment (in millions JPY) |
Start | Scheduled Completion |
| Tobu Plant (Tomi City, Nagano Pref.) |
Production facilities | 2,609 | Dec. 2017 |
Nov. 2018 |
| Naoetsu Plant (Joetsu City, Niigata Pref.) |
Production facilities | 1,131 | Dec. 2017 |
Sept. 2018 |
| Nagano Development Center (Tomi City, Nagano Pref.) |
R&D facilities | 411 | Sep. 2017 |
Aug. 2018 |
| Nissin APS Co., Ltd. (Ueda City, Nagano Pref.) |
Production facilities | 55 | Jan. 2018 |
Mar. 2019 |
| Nissin Brake Ohio Inc. (Ohio, USA) |
Production facilities | 2,185 | Oct. 2017 |
Mar. 2019 |
| Nissin Brake Georgia Inc. (Georgia, USA) |
Production facilities | 597 | Oct. 2017 |
Mar. 2019 |
| Nissin Brake de Mexico, S.A. de C.V. (Guanajuato, Mexico) |
Production facilities | 183 | Sept. 2017 |
Mar. 2019 |
| Nissin Brake (Thailand) Co., Ltd. (Nakornratchasrima, Thailand) |
Production facilities | 1,742 | Sept. 2017 |
Mar. 2019 |
| P.T. Chemco Harapan Nusantara (Cikarang, Indonesia) |
Production facilities | 663 | Jan. 2018 |
Mar. 2019 |
| Zhongshan Nissin Industry Co., Ltd. (Guangdong, China) |
Production facilities | 3,676 | Jan. 2018 |
Mar. 2019 |
| Nissin Brake Vietnam Co., Ltd. (Vinh Phuc, Vietnam) |
Production facilities | 563 | Apr. 2017 |
Mar. 2019 |
| Nissin Brake India Pvt. Ltd. (Rajasthan, India) |
Production facilities | 2,692 | Jan. 2018 |
Mar. 2019 |
| Nissin Brake Do Brasil Ltda. (Manaus-Am, Brazil) |
Production facilities | 348 | Apr. 2017 |
Mar. 2019 |