Nisshinbo Holdings Inc. Business Report FY ended Mar. 2015
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of change (%) |
Factors | |
Overall | ||||
Sales | 523,757 | 494,350 | 5.9 | 1) |
Operating income | 13,744 | 13,175 | 4.3 | - |
Ordinary income | 20,650 | 22,171 | (6.9) | |
Net income | 13,693 | 9,011 | 52.0 | |
Automotive Brakes | ||||
Sales | 161,886 | 148,699 | 8.9 | 2) |
Operating income | (2,068) | (1,813) | - | |
Electronics Business | ||||
Sales | 209,115 | 187,742 | 11.4 | - |
Operating income | 12,703 | 9,351 | 35.8 | |
Chemicals Business | ||||
Sales | 8,942 | 8,810 | 1.5 | - |
Operating income | 514 | 105 | 389.5 | - |
Precision equipment | ||||
Sales | 28,607 | 28,655 | (0.2) | - |
Operating income | 263 | 1,075 | (75.5) |
Factors
1) Overall Sales
-Sales increased year-on-year due to significant growth in the electronics and brake operations.
2) Sales - Automotive Brakes
Japan: Sales and profits increased year-on-year due to greater volumes of exports and favorable currency translation, even though sales at Japanese OEMs decreased once the last-minute buying spree ended after the consumption tax was increased.
Outside Japan: Sales and profits increased year-on-year due to favorable currency translation (due to the weak yen) of results from subsidiaries in the U.S. and Korea, and because subsidiary operations in China turned a profit. However, sales and profits were lower at the operations in Thailand.
TMD Friction: As a result of higher automotive sales in Europe, business results improved. However, sales of aftermarket products decreased and depreciation expenses rose as a result of the weak yen.
Mid-term Management Plan
-Performance objectives by the end of the fiscal year that ends in March 2018 are as follows.
Sales: JPY 600 billion
Operating income: JPY 40 billion
ROE: 9% or more
The Company launched Next 2015, a new mid-term management plan that covers three fiscal year starting from April 2013.
Performance objectives for the fiscal year that ends in 2016 are as follows:
Sales: JPY 550 billion
Operating income: JPY 24 billion
In order to achieve these objectives, the Company will implement the following.
-strengthen its global competitiveness
-renew and grow the electronics business
-strengthen the brake business
-strengthen the profit structure of the textile, paper, precision instruments, and chemical products businesses
-In the fiscal year that ended in March 2015, the Company announced long-term, strategic objectives to be achieved in FY2025, and they are sales of JPY 1 trillion and an ROE of more than 12%.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Outlook for FY ending Mar. 31, 2016 |
(in million JPY) |
FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
Sales | 550,000 | 523,757 | 5.0 |
Operating income | 20,000 | 13,744 | 45.5 |
Ordinary income | 25,000 | 20,650 | 21.1 |
Net income | 16,000 | 13,693 | 16.9 |
Sales by major business division | |||
Automotive Brakes | 170,000 | 161,886 | 5.0 |
Electronics | 210,000 | 209,115 | 0.4 |
Chemicals | 8,500 | 8,942 | (4.9) |
Precision equipment | 30,000 | 28,607 | 4.9 |
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Overall | 20,938 | 19,630 | 17,912 |
-Automotive Brakes | 9,142 | 8,573 | 7,081 |
-Electronics | 9,781 | 9,018 | 8,774 |
-Chemicals | 490 | 580 | 479 |
-Precision equipment | 12 | 23 | 49 |
R&D Facilities
Automotive Brakes | |
Nisshinbo Brake Inc. Development Center and Testing Center |
Gunma Pref., Japan |
NAMI BD Center | Detroit, USA |
Saeron Automotive | Cheonan, Korea |
TMD Friction EsCo | Leverkusen, Germany |
TMD Friction do Brazil | Indaiatuba, Brazil |
R&D Activities
Automotive Brakes
-The automotive brake division will work on developing new product and technologies based on the following strategies:
1. Ensuring "Safety First"
- 2. Thoroughly implementing Group concepts
3. Developing human resources
4. Strengthening quality assurance
5. Advancing strategy for global operations
6. Marketing differentiating products that are cost competitive
7. Thoroughly complying with laws and responding to business risks
<Friction Materials>
-The Company is developing environmentally low-impact products that ensure a high level of reliability as important safety products that comply with regulations on copper, etc.; focusing on meeting customer needs in terms of reducing noise and vibration.
-The Company is enhancing development assistance to its overseas subsidiaries and promoting cost reduction activities in close collaboration among functions of development, manufacturing and production engineering with the aim of strengthening its competitive edge.
-In aiming to gain the synergy effects from TMD Friction Group S.A. as quickly as possible, the Company is continuing to develop products that satisfy global needs.
<Automotive Brakes>
-In order to expand global business operations, the Company is not only reinforcing its development assistance to its overseas subsidiaries, but also promoting technological collaborations with overseas partners.
-Focus on making products lighter in weight in order to improve fuel efficiency, commercialize technology that responds to environmental concerns, and commercialize new technology with a vision toward the future.
-Through standardizing components and increasing efficiency in development activities, as well as taking cost reduction measures from early stages in development, the Company is working on strengthening its competitive edge.
Electronics
<Nagano Japan Radio Group>
-Development of elemental wireless power supplies, and fundamental research on technology to ensure high fastening reliability of coils for onboard use.
Chemicals
<Fuel cells>
-The Company is conducting research and development activities to enhance performance of a fuel cell separator by taking advantage of features of carbon materials.
Company-wide
<Functional materials for radios>
-In responding to the hydrogen age, conducting R&D activities on carbon-alloy catalysts and hydrogen storage carbon that are the most reliable in the world, as replacements for platinum catalysts.
Major Technology Licensing-in Agreements |
(As of Mar. 31, 2015) |
Company (Country) |
Contract details | Contract term |
Meritor Heavy Vehicle Braking Systems (UK) Limited. (UK) |
Know-how on design and manufacturing technology for disc brake assemblies, drum brake assemblies and their components | Nov. 2003 to Nov. 2008 (yearly automatic extension after Nov. 2008) |
Major Technology Licensing-out Agreement |
(As of Mar. 31, 2015) |
Company (Country) |
Contract details | Contract term |
Rane Brake Linings Limited (India) |
Know-how on manufacturing technology, material composition, and technical information on manufacturing facilities for brake linings, disc pads and clutch facings manufacturing. | 5 years from Jan. 2010 |
Heng Tong Auto Parts Inc. (Taiwan) |
Know-how on manufacturing technology, material composition, and technical information on manufacturing facilities for brake linings and disc pads. Also, guidance on factory construction for licensed products. | 3 years from Dec. 2013 |
Know-how on design and manufacturing technology for drum brakes and related components. | 3 years from Jun. 2013 |
Capital Expenditure |
(in million JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Overall | 36,909 | 19,895 | 20,123 |
Automotive Brakes
-Capital investments during fiscal year that ended in March, 2015:
- JPY 4,888 million to add facilities for producing friction materials at TMD Friction GmbH and other subsidiaries.
Planned Capital Investment (automotive related) |
(As of Mar. 31, 2015) |
Company/plant name (Location) |
Details of the facility | Planned investment amount (millions of yen) |
Start | Expected to be completed in: | Increase in manufacturing capacity after completion |
TMD Friction Do Brasil S.A. (Brazil) |
Manufacture and sale of brake products | 6,438 | Feb. 2014 |
Dec. 2016 |
- |
TMD Friction Esco GmbH Germany |
Manufacture and sale of brake products | 7,400 | Sep. 2015 |
Dec. 2020 |
- |
Nisshinbo Somboon Automotive Co., Ltd. (Thailand) |
Manufacture and sale of brake products (Second phase of investment) | 674 | Apr. 2013 |
Sep. 2015 |
- |
Manufacture and sale of brake products (Third phase of investment) | 1,684 | Sep. 2014 |
Dec. 2017 |
10% increase |