Nippon Seiki Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 135,225 167,296 (19.2) -
Operating income 6,308 10,382 (39.2) -
Ordinary income 7,185 12,896 (44.3) -
Current net income 2,963 8,245 (64.1) -
Automotive and general-purpose instrument business
Sales 96,711 117,772 (17.9) -Sales of automotive, motorcycle and general-purpose instruments all decreased year-on-year.
Operating income 6,262 10,516 (40.5) -

Supply Contracts

-The Company has won a contract to supply its next-generation organic light emitting displays (OLEDs) to Daimler of Germany. The Company's single color, full-dot white OLEDs with improved visibility and quicker response levels will be used as air-conditioner panels in the new Mercedes-Benz E-class models. Mass production for the program already began this month. The Company, which has never supplied OLEDs to European companies before, is now set to explore new business opportunities by leveraging its deal with Daimler, which is known to have strict quality standards. Since OLEDs do not require backlights, they can be made very thin with high-luminance and low power consumption levels. For these advantages, they are used in an increased variety of mobile devices including cellular phones. Automotive application, however, has been limited because of the difficulty in proving their reliability. Whether OLEDs will start to really take off in the vehicle market is currently drawing attention. (From an article in the Nikkan Jidosha Shimbun on May 12, 2009)

-The Company's automotive instruments will be used in the new Nissan Micra (known as the March in Japan), production of which started in Thailand. Although the company's products were featured before on forklifts produced by Nissan, this is the first automotive instrument program it has won from the automaker. Production and delivery of the instruments will be handled by Thai Nippon Seiki Co., Ltd. The Micra is positioned as a global strategic model of Nissan's compact car lineup. In line with the automaker's plan to start assembling the Micro also in India and China in the future, The Company intends to produce instruments for the model at its existing facilities in these countries as well. (From an article in the Nikkan Jidosha Shimbun on March 31, 2010)

Financial Outlook for Fiscal Year 2010, Ending March 2011

-Sales at the instrument business for fiscal year 2009 (which ends in March 2011) are expected to increase by 6 billion yen to 102.7 billion yen. This would be a 6.2% increase year-on-year. 
-Sales of automotive instruments increased in all regions. Sales of motorcycle instruments increased mainly in Indonesia, Vietnam and China.

Production Volume for Automotive Instruments

(in thousand units)
Asia 2510 2150 2100
Europe 510 490 660
Americas 1680 1540 1640
Japan 3070 2970 3210
Total 7770 7150 7610

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


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 2,725 3,286 3,315
Automobile and general-purpose instruments business 2,556 3,070 3,021

Major R&D Activities (Automobile and general-purpose instruments business)

Development focus is set on the following:
-Developing driving-support information display systems such as head-up displays, and developing next-generation HMI (Human Machine Interface) devices. 
-Onboard optics and actuators.
-Onboard sensor devices.

Licensing of Technology

(As of Mar. 31, 2010)

Partner Location Contract Contract Period
JNS Instruments Ltd. India Supplying know-how on manufacturing meters for motorcycles and four- wheeled vehicles 2005.03.07 -

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 4,270 7,454 8,234
Automotive and general purpose instrument business 3,357 5,699 6,565

Automotive and general purpose instrument business
-The Company invested in substrate mounting facilities, instrument assembly facilities, and in adding and improving plant buildings at YNS Inc. so as to prepare facilities for producing new products, increase its production capacity, and update facilities.

Investment Outside Japan

-The Company announced on April 21 to boost production of automobile instruments in India. JNS Instruments Ltd., in which The Company invests 49 percent, will construct a new plant with a plan to launch production of motorcycle instruments from March 2010. Total investments in land, building and equipment will amount to about 330 million yen. Through construction of new facilities, the company is intending to increase local production of instruments for 4.3 million motorcycles in fiscal 2011, or an increase of 1.7 times, compared with fiscal 2007, and to boost sales of the joint venture company including instruments for automobiles to 7.5 billion yen, or an increase of 1.4 times, respectively. The new plant will be built in Uttarakhand in Northern India at a site of 15,840 square meters having a floor space of 3,118 square meters. Its annual production capacity will be for 1.2 million vehicles. The Company will make efforts to strengthen cost competitiveness through in-house production of components. Motorcycle instruments will be produced at two locations, the existing and new plants in order to respond to new needs in the rapidly expanding market. (From an article in the Nikkan Jidosha Shimbun on April 22, 2009)

Planned Capital Investment (Meters for automobile and general-purpose use)

Name of company
or facility
Purpose Planned total investment
(in million JPY)
Starting Planned Completion
Head office Plant
(Niigata Pref., Japan)
Replace accounting system 183 Dec. 2009 Oct. 2010
NS Advantech Co., Ltd.
Head office Plant
(Niigata Pref., Japan)
Add molding and printing facilities 231 Apr. 2010 Mar. 2011
NS Advantech Co., Ltd.
Nagaoka Plant
(Niigata Pref., Japan)
Add painting facilities 113 Apr. 2010 Mar. 2011
YNS Inc.
Head office Plant
(Hiroshima Pref., Japan)
Add and improve buildings at Head office Plant 488 Dec. 2009 Sep. 2011
Add substrate mounting facilities 302 May 2010 Dec. 2010
Add a new production control system 212 Apr. 2010 Feb. 2011
Thai Nippon Seiki Co., Ltd.
(Chonburi, Thailand)
Add substrate mounting facilities 122 July 2010 Sep. 2010
P T. Indonesia Nippon Seiki
(Banten, Indonesia)
Add facilities for manufacturing integrating meters in-house 210 June 2010 Sep. 2010