NGK SPARK PLUG CO., LTD. Business Report FY ended Mar. 2019

Financial Overview

(in million JPY)
FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 Rate of
Change (%)
Sales 425,013 409,912 3.7 -Sales at the automotive segment increased due to strong sales of after-market products in Asia.
Operating income 58,672 67,279 (12.8)
Ordinary income 59,545 69,094 (13.8)
Net income 42,813 44,335 (3.4) -


Joint Venture

-On July 5 NGK Spark Plug Co., Ltd. (NGK Spark Plug) and Mitsubishi Hitachi Power Systems, Ltd. (MHPS) announced that they have agreed to establish a joint venture to manufacture and sell cylindrical cell (single cell) stacks for fuel cells on October 1, 2019. The fuel cells to be manufactured will be sold for industrial and business use. The joint venture will be set up with a capital of JPY 300 million after the review of the anti-trust law authority. It will be located in Komaki Plant of NGK Spark Plug in Komaki City, Aichi Prefecture, central Japan. The investment ratio is 70% for NGK Spark Plug and 30% for MHPS. The name of the JV and its representative are yet to be determined. NGK Spark Plug and MHPS concluded a business partnership agreement in June 2014 for the development of cylindrical cell stacks for solid oxide fuel cells (SOFC) that generate electricity using reformed town gas or other sources. Cylindrical fuel stacks are structures of elements on the outer surface of a ceramic substrate tube, which produce a power-generating reaction. The elements are serially connected by a conductive ceramic interconnector, allowing for efficient generation of low current, high voltage electricity. (From an article in the Nikkan Jidosha Shimbun on July 8, 2019)


7th Mid-term Management Plan (from FY ending in March 2017- FY ending in March 2021)

-Objectives to be achieved by the FY ending in March 2021 (121st term, final year of the plan): sales of JPY 520 billion, operating profit of JPY 100 billion; three basic strategies of the plan: further strengthening of the existing businesses, creation of new businesses, and establishing a firm management base.

-Present state and future initiatives of the automotive components business are:

<Further strengthening of the existing businesses

  1. Plug repair
    -Sales in emerging markets grew steadily.
    -Aims to expand sales in China and India.
  2. Automotive sensors
    -The Company expects that the demand of sensors, mainly value-added products, will remain strong.
    -The Company will continue production of sensors in Thailand and India.
  3. Automotive repair business
    -Increase sales of automotive products by taking advantage of the expertise of its subsidiary Wells Vehicle Electronics, L.P.

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 28,071 25,283 23,416
-Automotive Components Group 543 1,293 1,081


R&D Structure

-The Company's R&D functions include Technology Development Headquarters at the head office and the engineering functions at each business.

-The Company has technical centers in the U.S., Europe, Brazil, and Korea.


R&D Activities

Spark plugs
-The Company is working to increase the performance of spark plugs by improving their resistance to high heat and high voltage, as well as enhance their high-ignition capability. This is in addition to reducing the size of their diameters and elongating them. This involves seamless R&D activities, from developing materials, up to designing products and developing new production methods.

Glow plugs for diesel engines
-The Company is developing spark plugs that meet exhaust-gas regulations, offer better performance against rising temperatures, and have longer product lives. It is also developing control systems that control spark plug temperatures.

-The Company is developing energy-saving and resource-saving sensors that need to comply with exhaust-gas regulations, making them more environmentally efficient by improving their performance in terms of coping with high temperatures, thermal shock, vibration, and moisture.

-While developing plugs and sensors, the Company promotes the development of NGK brand ignition coils, easy-to-use and selective compact multi gas meters.

Capital Expenditure

(in million JPY)
FY ending Mar. 31, 2019 FY ending Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 56,587 37,591 36,328
-Automotive Components Group 45,614 29,525 27,577

Planned Capital Investment

(As of Mar. 31, 2019)
Company Name Segment Planned investment
(in million JPY)
Type of facilities / purpose
The Company
Automotive 26,256 Production increase and R&D facilities
Technical ceramics 3,452 Production increase and facilities to streamline operations
Others 1,041 R&D facilities
Consolidated subsidiaries in Japan Technical ceramics 2,512 Production increase and facilities to streamline operations
Consolidated subsidiaries outside Japan Automotive 18,895 Production increase and facilities to streamline operations
Technical ceramics 144 Production increase and facilities to streamline operations
Others 100 Production increase and facilities to streamline operations