Nippon Seiki Co., Ltd. Business Report FY ended Mar. 2017
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 240,520 | 243,606 | (1.3) | -Sales to GM in the Americas increased; sales to BMW, PSA and JLR in Europe decreased; and sales to Honda in Asia and Shanghai GM increased. |
| Operating income | 17,296 | 18,083 | (4.4) | -Income decreased due to higher R&D expenses for instruments and the effect of negative currency translation. |
| Ordinary income | 17,764 | 16,378 | 8.5 | - |
| Profit for the year attributable to owners of the parent | 9,412 | 9,143 | 2.9 | - |
| Automotive and general-purpose instrument business | ||||
| Sales | 190,316 | 189,784 | 0.3 | -Sales of automotive instruments decreased in Europe, but increased in the Americas and Asia. |
| Operating income | 13,941 | 15,876 | (12.2) | - |
Recent Developments in the Automotive and General Instruments Business
-The Company optimized the layouts of production plants and increased productivity, in order to win new customers and respond to growing sales volumes in major markets.
-As part of building production operations to manufacture head-up displays, NS West Co., Ltd. plants to build a new production plant, which will make it possible for the company to deliver major interior components within the Group. Ultimately there will be two plants in Japan, one in the USA, and one in the UK.
-In North America, the Company has built a production framework making it possible for each production subsidiary in the USA and Mexico to create its own products. As a result, it can flexibly respond to fluctuations in orders and vehicle types.
-The Company has enhanced its framework to enable in-house delivery within the Group, with instruments parts being shipped from Asia to Europe.
-In enhancing its design and development capabilities to respond to diversifying product functions, the Company established a new design office in Poland. Taking European customers’ needs into consideration, the Company is working to quickly expand its global market share by conducting R&D and product-development activities.
Awards
-The Company announced that Nippon Seiki de Mexico, S.A. de C.V. has received the 2015 GM Supplier Excellence Award from General Motors de Mexico S.A. de C.V. (From a press release on April 28, 2016)
Outlook for FY ending Mar. 2018 |
(in millions of JPY) |
| FY ending Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual Results) |
Rate of Change (%) |
|
| Sales | 242,000 | 240,520 | - |
| Operating income | 12,500 | 17,296 | - |
| Ordinary income | - | 17,764 | - |
| Profit for the year attributable to owners of the parent | 9,400 | 9,412 | - |
*Since the Company is adopting the International Financial Reporting Standards from the fiscal year ending in March 2018, the rate of change is not given.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Long-term Management Plan
-NS Group Long-term Business Roadmap: Company sets target of JPY 270.0 billion in sales for the fiscal year ending in March 2018, with target of JPY 300.0 billion in the future.
Policies for Achieving Mid-term Growth
Instruments business
-Optimize production operations and increase production capacity group-wide.
-Increase production plants globally and control R&D costs.
Head-up Display Business
-Boost unit production by customer and production operations to manufacture JPY 50.0 billion in HUD sales.
-Enhance capabilities to make product presentations by effectively making use of the existing production operations that consists of four locations in three countries.
Sensor Business
-The Company is expanding sales in various areas where growth is predicted by making use of its expertise in producing automotive sensors capable of functioning in harsh environments (cold, water proofing, dust control, oil resistance, and anti-vibration etc.)
Consumer Business
-Increase market share of industrial equipment, of which the market is predicted to grow.
New Business
-Launch operations in new business areas such as the IoT and new display systems, collaborating with other companies.
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 4,404 | 4,738 | 4,459 |
| -Automobile and general-purpose instruments business | 4,004 | 4,395 | 4,146 |
R&D Structure
-The R&D structure is comprised of R&D centers such as the R&D Center and NS Technical Center, which are both located in Nagaoka, Niigata Pref., Japan. They are in charge of developing mass-market products for each business area, working closely with the design function and production technology function.
Raising technological development capabilities
-While enhancing design development technology in Japan, the Company conducts design work close to customer locations, strives to lower costs, and works to raise the capability and efficiency of its design functions.
R&D Activities
Automotive and General-use Instrument Business
-Development of driver-assist type of information systems such as headup displays (HUDs) and next-generation human-machine-interface (HMI) instruments.
-Development of technology for smart phones
-Development of in-vehicle optical technology and actuator technology
-Development of in-vehicle sensor instruments
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 12,722 | 10,901 | 12,027 |
| -Automotive and general purpose instrument business | 9,774 | 8,183 | 9,384 |
Automotive and General-use Instrument Business
-Capital investment to increase production capacity and revamp facilities to meet product demand for new models; and for facilities to install substrate and assemble instruments.
Capital investment by region
- Asia: JPY 2.31 billion
- Europe: JPY 630 million
- Americas: JPY 1.97 billion
- Japan: JPY 6.43 billion
Planned Capital Investment (Meters for automobile and general-purpose use) (As of Mar. 31, 2017)
| Name of company or facility (Location) |
Purpose | Planned total investment (in million JPY) |
Starting | Planned Completion |
|
Head office and Plant |
Major business systems | 2,200 | Dec. 2014 |
Mar. 2019 |
| Management accounting systems | 339 | Jan. 2017 |
Apr. 2019 |
|
| NS Advantech Co., Ltd. Head office Plant (Ojiya City, Niigata Pref.) |
Forming and printing machines | 237 | Apr. 2016 |
Sep. 2017 |
| NS Advantech Co., Ltd. Nagaoka Plant (Nagaoka City, Niigata Pref.) |
Coloring equipment | 362 | Apr. 2016 |
Mar. 2018 |
| NS Electronics Co., Ltd. Head office Plant (Nagaoka City, Niigata Pref.) |
Replacement air-conditioners | 130 | May 2017 |
Jan. 2018 |
| NS West Co., Ltd. Miyoshi Plant, Miyoshi, Hiroshima Prefecture |
Production plant | 2,082 | Aug. 2016 |
|
| NS West Co., Ltd. Head Office plant Shobara, Hiroshima Prefecture |
Assembly of printed circuit boards | 265 |
|
Nov. 2017 |
| Wuhan Nissei Display System Co., Ltd. (Hubei Province, China) |
Facilities to manufacture automotive instruments | 219 |
Dec. |
May 2017 |
| NS Instruments India Private Ltd. (Andhra Pradesh, India) |
Facilities to manufacture automotive instruments | 260 |
Apr. |
Feb. 2018 |