NGK Spark Plug Co., Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
Change (%)
Sales 302,798 284,746 6.3 -
Operating income 23,754 24,478 (3.0) -
Ordinary income 27,674 23,740 16.6 -
Current net income 20,909 25,524 (18.1) -
Automotive components
Sales 248,795 222,635 11.8 -Sales and operating income both increased year-on-year due to higher shipments of products in North America, although performance was negatively impacted by the slowdown in new-vehicle sales in Europe.
Operating income 33,159 30,703 8.0

New Company

-The Company established a new sales company, NGK Spark Plugs (Vietnam) Co., Ltd., in Ho Chi minh City, Vietnam. The new company is capitalized at USD 200,000, wholly invested by NGK Spark Plugs (Thailand) Co., Ltd. Starting its operations in September 2012, the new entity will sell spark plugs and oxygen sensors in the Vietnamese Market. (From a press release on August 31, 2012)

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of
Change (%)
Sales 305,000 302,798 0.7
Operating income 38,000 23,754 60.0
Ordinary income 39,000 27,674 40.9
Net income 23,500 20,909 12.4

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


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 17,100 16,036 15,763
-R&D expenditures, excluding costs for upgrading current products; and applied research 3,733 3,542 3,152
-Automotive components 837 773  828

R&D Structure

-The Company has various centers of R&D activities. There is the R&D Division that is a headquarters function, the New Business Development Division, SOFC project and the R&D functions at each business division. In addition, the Company gathers and implements the latest technology through participating in academic conferences and associations, and conducting joint research with university and private-sector R&D organizations.
-The Company has technical centers in the U.S.A., Europe, Brazil, and Korea.

R&D Activities

Spark plugs
-The Company is developing smaller and more wide-ranging products by further increasing their heat resistance, high voltage resistance, and ignitability. It is working to create a seamless operating structure, from developing materials up to designing products and production methods.
-The Company completed development of new-type insulators that vastly improve performance in terms of high-voltage resistance compared to that of conventional insulators by making the insulator structure more precise and detailed. It began supplying them to European OEMs.

Glow plugs for diesel engines
-The Company developed plugs with a longer life and superior temperature rise characteristics. It also developed a temperature control system for plugs.
-The Company is working on developing an integrated unit combining glow plugs and pressure sensors, which contribute to reducing exhaust-gas emissions and raising fuel efficiency more than other company's conventional glow-plugs with pressure sensors. This was achieved by improving the precision of low-pressure sensing and by very minutely controlling fuel injection. In addition, the cold-start capability of engines was vastly improved by the Company's being able to assemble a ceramic heater capable of generating high-temperature heat.

-The Company is developing sensors that need to comply with exhaust-gas-emissions; offer improved performance in terms of resistance to heat, thermal shock/impulse, vibration, and water penetration; and also reduce energy and the consumption of resources.
-The Company developed sensors such as OBD (on-board diagnostics) sensors which are required under new exhaust-gas emission regulations; and sensors that control EGR systems.

Other technologies
-The Company developed and commercialized ignition units for improving the durability of plugs for gasoline engines.
-The Company developed the next generation ASIC (Application Specific Integrated Circuit) for full-range air-fuel ratio sensors that have an interface function with an engine control circuit in automobiles.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 24,012 14,004 8,767
-Automobile related business 17,960 11,854 6,365

-In the fiscal year that ends March 2014, the Company plans to invest 53,800 million yen in facilities and equipment, among which 45,803 million yen will be allocated to the Automobile related business.

Investments in Japan

-The Company held a groundbreaking ceremony of its new insulator plant in Gifu Prefecture, Japan. The Japanese supplier will build the factory with a total floor area of 53,000 square meters at a cost of approximately 28 billion yen in the first phase of the construction project. The new plant will start operations in April 2014 to make 13.5 million insulators for spark plugs per month, and is scheduled to increase its production capacity in stages. (From an article in the Nikkan Jidosha Shimbun on Dec. 26, 2012)

Planned Capital Investment

(As of Mar. 31, 2013)
Planned amount of investment
(in million JPY)
Tono Ceramic Inc. (*1)
(Gifu Pref., Japan)
28,000 Plant building and facilities for spark plugs.
*1: Name was changed to SparkTec TONO Co., Ltd., as of April 1, 2013.