Nippon Seiki Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 263,163 | 245,967 | 7.0 |
-Sales of automotive meters and instruments decreased in Japan; while the sales in Asia and Europe increased. |
| Operating income | 14,109 | 15,172 | (7.0) | - |
| Profit before tax | 15,854 | 15,356 | 3.2 | - |
| Profit for the year attributable to owners of the parent | 11,105 | 10,164 | 9.3 | - |
Business Developments
ｰIn the HUD business, the Company is improving manufacturing sites and enhancing manfuacturing capabilities to cope with an increase in demand.
For the manufacturing of the products for the high-end class that requires high technological strength, the Company is continuing business with the existing customers by improving its industry-leading technologies and enhancing the products' visibility (high-precision, high view angle and high quality).
For the manufacturing of the products for the low-end class, where an improvement is required for the diffusion of the products, the Company aims to create a new market and win new customers.
In both classes the Company will make efforts to make its products lighter and more compact to improve mountability.
ｰThe Company is enhancing its production system in line with the expansion of its HUD business.
Its manufacturing base in the U.K. is scheduled to begin mass production of HUDs from September 2018. The Company has so far produced HUDs in Japan and the U.S., and will start producing it in Europe where the use of HUDs is on the increase. The Company expects that the local production of HUDs will make the supply of HUDs smoother and help the Company to win new orders. The Company hopes to increase the sales of HUDs to JPY 50 billion (more than double) at an early date.
In Japan, NS West Co., Ltd.'s plant started operations. This completed a system to supply important components within NS group.
ｰGoing forward, the Company aims to enhance its competitiveness in the global market by strengthening manfuacturing capabilities in the ASEAN region and Thailand.
Mid-term Management Plan
The NS Group Mid-term Management Plan for the three years from 2018 through 2020 was released. The Company expects novel development and globalization of its busiensses.
Targeted consolidated sales for the fiscal year ending March 2020 are JPY 280 billion.
In the fiscal year ended March 2018, the automotive meters and instrument business attained sales of JPY 206.9 billion against the target of JPY 190 billion.
Although the other businesses failed to meet their respective targets, the Company's overall sales came close to the target. (JPY 263.1 billion against 270 billion)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | |
| Overall | 4,147 | 4,404 | 4,738 |
| -Automobile and general-purpose instruments business | 3,804 | 4,004 | 4,395 |
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.
Strengthening of the design and development function
-In order to respond to an increase in the number of processes due to the sophistication of vehicle functions, the Company will secure necessary materials for future orders by enhancing design and development functions.
The following functions will be improved: forecasting the future orders; cost reduction by controlling the development processes; and enhancing development capabilities by applying design resources to the development process.
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, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 12,295 | 12,722 | 10,901 |
| -Automotive and general purpose instrument business | 9,752 | 9,774 | 8,183 |
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.
Planned Capital Investment (Meters for automobile and general-purpose use) (As of Mar. 31, 2018)
| Name of company | Name of facility (Location) |
Purpose | Planned total investment (in million JPY) |
Starting | Planned Completion |
| Nippon Seiki Co., Ltd. | Head office and plant (Nagaoka City, Niigata Pref.) |
Major business systems | 3,618 | Dec. 2014 |
Aug. 2019 |
| Management accounting systems | 406 | Jan. 2017 |
Aug. 2019 |
||
| Takami plant and NS technical center (Nagaoka City, Niigata Pref.) |
HUD production plant | 414 | Mar. 2018 |
Dec. 2020 |
|
| NS Electronics Co., Ltd. | Head office and plant (Nagaoka City, Niigata Pref.) |
Facilities to manufacture automotive instruments | 226 | Apr. 2018 |
Oct. 2018 |
| Facilities to mount substrates | 200 | May 2018 |
Dec. 2018 |
||
| NS West Co., Ltd. | Miyoshi plant (Miyoshi City, Hiroshima Pref.) | HUD production plant | 594 | Sep. 2017 |
Oct. 2018 |
| Head office and plant (Shobara City, Hiroshima Pref.) |
HUD production plant | 256 | Jun. 2017 |
Jun. 2018 |
|
| PT. Indonesia Nippon Seiki | Banten, Indonesia | Facilities to manufacture automotive instruments | 166 | Feb. 2018 |
May 2019 |
| Shanghai Nissei Display System Co., Ltd. | Shanghai, China |
Facilities to manufacture automotive instruments | 236 | Nov. 2017 |
May 2019 |
| Facilities to manufacture automotive instruments | 172 | Nov. 2017 |
Nov. 2019 |