NIDEC TOSOK CORPORATION Business Report FY2007
Business Highlights
Financial overview | (in millions of JPY) |
FY2007 | FY2006 | Rate of Change(%) |
Remarks | |
Overall | ||||
Sales | 26,213 | 23,430 | 11.9 | - |
Operating income | 2,174 | 1,809 | 20.1 | - |
Ordinary income | 2,198 | 1,953 | 12.5 | - |
Net income | 1,634 | 1,182 | 38.1 | - |
Automotive Component Business | ||||
Sales | 17,390 | 15,815 | 10.0 | -Sales increased year-on-year, thanks to strong demand for controller valves used in the Subaru Legacy; and other products. |
Operating income | 1,356 | 1,386 | (2.2) | -Operating income decreased slightly year-on-year. The reason for the drop was the Company's having had to make initial investments in advance, and also having had to spend a great deal on a program to produce CVT control valves and electromagnetic valves for use in large diesel engine vehicles, which will debut in January 2008. |
Highlights
-The Company will greatly expand its core business of transmission parts. The company has received new orders from Nissan Motor Co., Ltd. and Fuji Heavy Industries Ltd. for key parts of their new belt-type continuously variable transmissions (CVTs), whose supply will start by 2009. On this occasion, the Company will make full efforts including thorough productivity improvement at its flagship plant in Vietnam to raise the automotive business sales to approx. 22 billion yen as early as FY 2009 from the current 15 billion yen (estimated for FY 2007). In the beginning, the company will strengthen its cooperation among its head office, Technical Center and the Vietnam plant to optimize local procurement in Vietnam as well as maximizing VA (value analysis) effects in the design processes. It aims to almost double the sales of control valves and to expand the overall automotive parts sales by almost 50 percent as early as 2009. (From a story in the Nikkan Jidosha Shimbun on Oct. 16, 2007)
R&D
R&D Expenditure | (in millions of JPY) |
FY2007 | FY2006 | FY2005 | |
Overall | 848 | 798 | 666 |
Automotive parts | 609 | 566 | 395 |
Motors | - | - | 42 |
Automotive parts
-To deal with the needs for comfortable, safe, fuel efficient, and environmentally friendly automobiles, the Company conducted R&D activities on electronic control technologies. The Company worked to increase its new products and forge technical developments in automatic transmissions, continuous variable transmissions and air-hydraulic control actuators that are capable of satisfying demands for high performance, high quality and global price competitiveness.
-To improve added value, the Company will complete the development and commercialization of electronic-hydraulic control systems for automatic transmissions and CVTs. Furthermore, the Company is concurrently conducting multiple development activities strengthening its development capabilities which includes conducting joint development activities with other companies.
Technological licensing-in agreements (As of March 2008)
Company Name | Partner | Country | Contractual Coverage |
Contract Period |
Nidec Tosok | Nissan | Japan | Provision of technical information on image processing equipment and licensing of manufacturing and distribution rights | 6 years from June 28, 1993. (Automatic renewal) |
Technological licensing-out agreements (As of March 2008)
Company Name | Partner | Country | Contractual Coverage |
Contract Period |
Nidec Tosok | Telster Engineering |
South Korea | Provision of technical information and expertise to manufacture column type air micrometers, AE converters, and column type electric micrometers; and licensing of manufacturing and distribution rights | Five years from December 21, 2000 (Automatic renewal) |
Nidec Tosok | Kefico | South Korea | Provision of technological information and expertise to manufacture RXC wiring plates and licensing of manufacturing and distribution rights | Eight years from March 24, 2003 |
Nidec Tosok | Unick | South Korea | Provision of technological information and expertise to manufacture proportional valves for six-speed transmissions and licensing of manufacturing and distribution rights | Five years from May 26, 2007 (Automatic renewal) |
Investment Activities
Capital Expenditure | (in millions of JPY) |
FY2007 | FY2006 | FY2005 | |
Overall | 1,469 | 3,207 | 1,081 |
Automotive parts | 1,246 | 3,002 | 572 |
Motors | - | - | 201 |
Automotive parts
-The Company invested mainly in machines and equipment , so it could transfer production to its subsidiary in Vietnam and also win new orders.
New Facilities (Automotive products) | (in millions of JPY) |
Name | Location | Type of facility | Estimated amount of investment | Project Period | Planned increase in capacity | |
From | To | |||||
Nidec Tosok Headquarter Plant |
Zama City, Kanagawa Prefecture | Manufacturing equipment for automotive parts | 572 | 2008.04 | 2009.03 | - |
Nidec Tosok (Vietnam) Co., Ltd. Headquarters Plant |
Ho Chi Minh City, Vietnam | Manufacturing equipment for automotive parts | 2,944 | 2008.04 | 2009.03 | 12.6 percent (The Company is investing to set up lines for new products, increase production volume, and conduct production in-house) |