NOK Corporation Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of
Change (%)
Sales 713,138 746,147 (4.4) -
Operating income 39,776 48,258 (17.6) -
Ordinary income 45,709 53,727 (14.9) -
Profit for the year attributable to owners of the parent 27,328 30,053 (9.1) -
Sealing product division
Sales 310,569 296,189 4.9 -Sales increased because of demands recovery in overseas like in North America and China as well as in Japan.
Operating income 37,132 32,531 14.1 -Income increased by sales increase.

Three-year Midterm Management Plan (from FY ending March 2018-FY ending March 2020)


  • Build a balanced customer base
  • Exceed in achieving an exceptionally high level of quality
  • Build a feasible BCM plan
  • Create an organization that respects human resources

-Targets for March 2020:

  • Sales: JPY 800 billion
  • Operating profit: JPY 56.0 billion

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 8,274 7,632 8,096
-Seal 6,209 5,861 6,261

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.

-In the automotive safety and IT segment, the Company is developing high, value-added products by integrating automotive braking products and electronic parts.

-In the oil-seal segment, in addition to developing and launching sales of conventional coated seals, the Company has developed and launched sales of low-friction seals designed to reduce friction force while still maintaining reliability, by combining low-friction rubber materials and torque grease, which was jointly developed by the Company and a subsidiary, NOK Klueber Co., Ltd. Also, the Company developed and launched products designed for emerging countries. The products, which have improved anti-dust performance, are designed to respond to tough road conditions.

-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 and integrated seal parts of flexible printed circuit boards (FPCs) for next-generation vehicles, launching commercial production of some of them.

-The Company is advancing preparations to start producing and supplying sealing products for cars running on fuel-cell battery stacks.

-In order to determine drivers’ conditions, driver-monitoring systems are essential to advanced driver assistance systems (ADASs). The Company’s proprietary rubber electrodes are capable of measuring biological signals such as electrocardiac information, power-saving positions, brain waves, etc., giving hope that one day these electrodes will be able to detect driver fatigue and drowsiness.

Electronic Device
-The Company is conducting R&D activities on processes, materials, and parts on flexible print circuit-boards (FPCs) for automotive use; as well as developing new FPCs. The concept behind development activities is to create core technologies for FPCs in terms of making them higher definition, improving their features, and modularizing them.

-The Company is developing technology that achieves highly reliable connections between FPCs and cables, and FPCs and devices, making product presentations to customers about the related technology.

R&D Facilities

Facility Location
Shonan Development Center Kanagawa Pref., Japan

Technical Cooperation Agreement

(As of Mar. 31, 2017)
Partner Content Signed on
Introduction and licensing of such seal product as oil seal, O ring and related technologies Jan. 1, 2009

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 65,135 61,399 41,470
-Seal 31,221 21,996 18,680

Sealing business
-The Company mainly invested in its operations in Japan and at NOK (Wuxi) Vibration Control China Co., Ltd. and Thai NOK Co., Ltd.

Planned Capital Investment

(As of Mar. 31, 2017)
Equipment Amount
(in million JPY)
Date of start Scheduled date of completion
Tottori Plant (Tottori Pref.)
Facilities to manufacture antivibration rubber 6,105 May 2015
July 2017

Kitaibaraki plant (Ibaraki Pref.)
Facilities to manufacture plastic products 4,318 Jun. 2017 Nov. 2018
Unimatec Singapore Pte. Ltd.
Facilities to manufacture chemical compounds 7,928 Sep. 2015 Mar. 2018
Wuxi NOK Freudenberg Co., Ltd. (Wuxi, China) Facilities to manufacture oil seals 2,260 Jul. 2016 Jul. 2017
MEKTEC Manufacturing Corp. Vietnam Ltd. Facilities to manufacture flexible circuit boards 6,144 Nov. 2016 Jul. 2017

Outlook of Capital Expenditure for FY ending Mar. 31, 2018

(in billion JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of
Change (%)
Japan 312 269 16.0
Asia 338 376 (10.1)
Europe/USA 8 6 33.3
Total 658 651 1.1

Outlook for FY ending Mar. 31, 2018

(in million JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of
Change (%)
Sales 716,800 713,138 0.5
Operating income 44,500 39,776 11.9
Ordinary income 52,000 45,709 13.8
Profit for the year attributable to owners of the parent 32,000 27,328 17.1

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