NOK Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
Change (%)
Sales 540,859 495,251 9.2 -
Operating income 26,519 30,012 (11.6) -
Ordinary income 35,202 34,694 1.5 -
Current net income 22,216 16,016 38.7 -
Sealing product division
Sales 257,974 259,143 (0.5) -Sales of automotive products were strong during the first half of the fiscal year. However, due to the worsening political situation between Japan and China during the second half, sales to Japanese OEMs in China fell year-on-year. Sales in Japan were lower year-on-year, impacted by lower new-vehicle demand in line with the end of eco-car sales incentives. In the end, sales for the entire fiscal year increased, supported by strong new-vehicle production in North America and Asia.
-Sales of general industrial equipment/machinery were lower, impacted by the continuing huge slump in demand for construction equipment, mainly in China.
Operating income 21,119 26,294 (19.7) -

Joint Ventures

-PNDT, which is a joint-venture between Pyung Hwa Holdings (parent company of Korea based Pyung Hwa Industrial) and the Company of Japan, has held a ground-breaking ceremony for its new plant in Yeongcheon, Gyeongsangbuk-do. The facility will have 25,000 square meters of building area on 48,000 square meters of land. It is scheduled to be completed in October 2013 and will produce 11 million damper pulleys per year. Annual sales are expected to reach 60 billion won. (From a press release, April 22, 2013)

Outlook for FY ending Mar. 31, 2014

(in billion JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of
Change (%)
Sales 580.0 540.9 7.2
Operating income 29.7 26.5 12.1
Ordinary income 32.6 35.2 (7.4)
Net income 18.6 22.2 (16.2)

Outlook by Segment for FY ending Mar. 31, 2014

(in billion JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of
Change (%)
Seal 273.5 258.0 6.0
Electronic Device Product 270.0 244.4 10.5
Roll 25.0 26.7 (6.4)
Other 11.5 11.7 (1.7)
Total 580.0 540.9 7.2

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


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 6,834 6,403 6,375
Seal 5,212 4,706 4,807

R&D Activities

-The Company worked to develop environmentally friendly products such as products contributing to lower energy use by lowering frictional loss; and other eco-friendly products for hybrid, electric, and fuel-powered vehicles.

-The Company developed and launched sales of low-friction, automotive oil-seals, developing conventional coated seals and a new type of low-friction seal designed to reduce friction force, in addition to seals based mainly on rubber materials. Also, the Company launched sales of seals that offer better features such as being more dust resistant, which makes them capable of responding to poor road conditions overseas such as in China and Thailand

-In its O-ring business, the Company launched material that can handle new coolants and which are environmentally friendly; and coating material that makes assembly easier. In addition, it conducted R&D activities to develop a material that is workable with hydrogen gas used in fuel cells.
-As part of its activities designed to create seals for use in EVs and HEVs, the Company developed smaller and low-reaction force gaskets for next-generation vehicles.
-The Company is working to develop FPC composites in response to the greater penetration of on board electronics, and is at the stage of conducting some evaluations.

Electronic Device Product
-The Company succeeded in developing a double-sided FPC that can be commercially produced. This FPC, which is 51.5 micrometers thin (half the thickness of existing ones), is part of the Company's efforts at making thinner and lower cost products.
-In its work in the area of multi-layered FPCs, the Company developed technology making it possible to produce FRBBs (Flex Resin Build Boards) that are 0.19mm thick and have four layers. The Company started producing and delivering these multi-layered FPCs that are exceptionally easy to install.
-Customers are demanding more efficient heat releasing (radiation) properties in digital LED signage and automotive LED lights. As a result, the Company developed metal-based FPC technology and is conducting sales activities catered to R&D activities at customers in various business sectors.

R&D Facilities

Facility Location
Shonan Development Center Kanagawa Pref., Japan

Technical Cooperation Agreement

(As of Mar. 31, 2013)
Partner Content Signed on
Introduction and licensing of such seal product as oil seal, O ring and related technologies Jan. 1, 2009

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 52,802 27,158 23,480
Seal 27,957 16,099 13,159

Sealing business
-In Japan, the Company invested mainly in the facilities at its Fukushima Plant that produces oil seals; and outside Japan, mainly in Wuxi Nok-Freudenber Oil Seal Co., Ltd. and Thai NOK Co., Ltd.

New Facilities

Equipment Amount
(in million JPY)
Date of start Scheduled date of completion
Kitaibaraki plant
(Ibaraki Pref., Japan)
Facility for manufacturing resin processed products
2,036 Jul. 2012 Jul. 2013
Thai NOK Co., Ltd.
(Chonburi, Thailand)
Facilities to manufacture various types of seals 2,800 Jun. 2013 May 2014

Outlook of Capital Expenditure for FY ending Mar. 31, 2014

(in billion JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of
Change (%)
Japan 21.9 19.5 12.3
Asia 21.5 33.1 (35.0)
Europe/USA 0.1 0.1 0
Total 43.5 52.8 (17.6)