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
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.


-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
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

>>>Refer to the R&D Structure

Planned Capital Investment (Meters for automobile and general-purpose use) (As of Mar. 31, 2017)

Name of company
or facility
Purpose Planned total investment
(in million JPY)
Starting Planned Completion

Head office and Plant
(Nagaoka City, Niigata Pref.)

Major business systems 2,200 Dec.
Management accounting systems 339 Jan.
NS Advantech Co., Ltd.
Head office Plant
(Ojiya City, Niigata Pref.)
Forming and printing machines 237 Apr.
NS Advantech Co., Ltd.
Nagaoka Plant
(Nagaoka City, Niigata Pref.)
Coloring equipment 362 Apr.
NS Electronics Co., Ltd.
Head office Plant
(Nagaoka City, Niigata Pref.)
Replacement air-conditioners 130 May
NS West Co., Ltd. Miyoshi Plant,
Miyoshi, Hiroshima Prefecture
Production plant 2,082 Aug.


NS West Co., Ltd.
Head Office plant
Shobara, Hiroshima Prefecture
Assembly of printed circuit boards 265


Wuhan Nissei Display System Co., Ltd.
(Hubei Province, China)
Facilities to manufacture automotive instruments 219


NS Instruments India Private Ltd.
(Andhra Pradesh, India)
Facilities to manufacture automotive instruments 260