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 (%) |
Factors | |
| Overall | ||||
| 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)
-Policies
- 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
Seal
-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 |
| Freudenberg (Germany) |
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) |
| Facilities (Location) |
Equipment | Amount (in million JPY) |
Date of start | Scheduled date of completion |
| NOK Tottori Plant (Tottori Pref.) |
Facilities to manufacture antivibration rubber | 6,105 | May 2015 | July 2017 |
| NOK Kitaibaraki plant (Ibaraki Pref.) |
Facilities to manufacture plastic products | 4,318 | Jun. 2017 | Nov. 2018 |
| Unimatec Singapore Pte. Ltd. (Singapore) |
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 (Forecast) |
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 (Forecast) |
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.)