Nippon Seiki Business Report FY2006
Business Highlights
| (in million JPY) | FY2006 | FY2005 | Rate of Change (%) | Factors |
| Overall | ||||
| Sales | 193,178 | 175,229 | 10.2 | - |
| Operating income | 19,703 | 16,299 | 20.9 | - |
| Ordinary income | 20,770 | 17,925 | 15.9 | - |
| Current net income | 11,840 | 9,318 | 27.1 | - |
| Automotive and general-purpose instrument business | ||||
| Sales | 127,207 | 111,641 | 13.9 | Sales of automotive instruments in Japan, North America, Europe and China increased. Sales of motorcycle instruments increased in Japan and Brazil. |
| Operating income | 17,085 | 14,243 | 20.0 | In addition to the sales increase, initiatives to improve the Company's productivity, integrate purchasing activities, and have all the Group facilities mutually supply parts to each other , effectively worked to lower material costs, creating positive results. |
In August 2006, a new technical center constructed at the Takami plant (Nagaoka-shi, Niigata Prefecture) began operating.
>>>See Investment for details.
Highlights in overseas
-Brazil
Its automotive instrument manufacturing and sales company established in Brazil in July 2007 began constructing a plant in October 2006.
>>> See Investment for details.
-Vietnam
The Company established Vietnam Nippon Seiki Co., Ltd. in Hanoi as a subsidiary to manufacture motorcycle instruments. The construction of the production facility started in April 2007 and will be completed in October 2007. Operations are scheduled to start in April 2008.
>>> See Investment for details.
-Thailand
Construction of No.2 plant at Thai Nippon Seiki Co., Ltd. was completed in August 2006. The plant started operating in October.
R&D
-FY2006 total R&D expenses were
3,403 million yen.
-The Company was engaged in the development of vehicle equipment
and other diversified products through close collaboration between
the R&D Center, the development and design department of each
business segment, and the production technology department.
In April 2006, the Company established
Nippon Seiki North American Design Center, which is the design and
development department of its sales subsidiary in North America,
NS International Ltd.
The Company announced that its technical center, which has been
under construction at the site of the Takami Plant for manufacture
and assembly of instrument parts in Nagaoka City, Niigata Prefecture,
will start operation on August 21, 2007. It will be responsible
for development and design of automotive instruments and precision
processing of molds. The company aims to achieve higher competitiveness
such as shorter development period through establishing an integrated
manufacturing system from development to production with these additional
functions to the existing plant. Takami Plant is a mother factory
for the Company's overseas operations and it will strengthen the
"mother" function to improve quality and cost performance
by locating the technical center within the plant. (From a story
in the Nikkan Jidosha Shimbun on Jul. 29, 2006)
R&D expenses were 2,803 million yen.
The Company is engaged in:
- Development of products for HMI (Human Machine Interface) such as heads-up displays. Also technical development of information display systems that provide assistance to drivers.
- Technical development of telematics systems for cars
Technical tie-up (as of March, 2007)
| Partner | Location | Contract | Contract Period |
| Tatung Precise Meter Co., Ltd. | Taiwan | Technical licensing on motorcycle meters | 5 years from 2004.04.12 |
| Technical licensing on four- wheeled vehicle meters | 5 years from 2006.02.26 |
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| JNS Instruments Ltd. | India | Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles | 6 years from 2002.12.30 |
| Machino-Autoparts Company | Vietnam | Technical licensing on motorcycle meters | 7 years from 2006.11.20 |