NOK Corporation Business Report FY ended Mar. 2018
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) |
Factors | |
Overall | ||||
Sales | 729,341 | 713,138 | 2.3 | - |
Operating income | 44,934 | 39,776 | 13.0 | - |
Ordinary income | 56,291 | 45,709 | 23.2 | - |
Profit for the year attributable to owners of the parent | 35,281 | 27,328 | 29.1 | - |
Factors
-Sealing Product Business: Sales of automotive seals increased due to strong demand in Japan. Sales of automotive seals in China increased due to strong demand for Japanese OEMs’ vehicles.
Sales were JPY 336.9 billion, a year-on-year (y/y) increase of JPY 26.3 billion.
-Electronic Parts Business: Overall sales were lower y/y due to a drop in demand for high-spec smartphones, even though there was higher demand for electronic parts in line with the growth of vehicle electrification.
Sales were JPY 5.7 billion lower y/y, while operating income (JPY 3.0 billion) was JPY 2.3 billion higher
New Three-year Management Plant
(From the fiscal year ending in March 2018 to the fiscal year ending in March 2020)
-Targets for the fiscal year ending in March 2020:
Sales: JPY 800 billion
Operating income: JPY 56.0 billion
Operating profit margin: 7.0%
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
Overall | 9,443 | 8,274 | 7,632 |
-Seal | 6,738 | 6,209 | 5,861 |
R&D Activities
Seal Business
<Le-μ’s>
-Developing low-friction technology such as low-friction coatings and low-friction rubber materials that save energy by reducing sliding resistance; and launching a special low-friction grease designed specifically for seals jointly developed with NOK KLÜBER Co., Ltd., a subsidiary.
-Launched sales of high-pressure seals for eco-friendly engines, coating with improved assembility, and seals for fuel-cell vehicles. Further advanced R&D activities on seals responding to E-mobility.
-Developing electronic devices; integrated seal parts used in single-unit, flexible printed circuit boards; and thermal-conductive rubber that facilitates heat radiation.
-Developing low-resistant, space-saving seal parts for cell-stacks placed in fuel cells. Launched commercial production of some of these.
-In line with the growing market focus on ADASs, focusing on the area of drowsiness-detection technology that uses rubber electrodes capable of measuring body signals.
Electronic equipment parts business
-In line with the advancement of self-driving technology, developing various sensors with high-speed-transmission capability.
-In line with the growth of vehicle electrification, advancing development of technology making highly reliable connections possible between flexible printed circuit boards and onboard devices. In reducing vehicle weight, considering the possibility of using flexible printed circuits boards in some wire-harnesses.
R&D Facilities
Facility | Location |
Shonan Development Center | Kanagawa Pref., Japan |
Tokai Environmental-Technology R&D Center | Makinohara, Shizuoka Prefecture |
Technical Cooperation Agreement |
(As of Mar. 31, 2018) |
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, 2018 |
FY ended Mar. 31, 2017 |
FY ended Mar. 31, 2016 |
|
Overall | 58,388 | 65,135 | 61,399 |
-Seal | 32,101 | 31,221 | 21,996 |
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 Investments |
(as of March 31, 2018) |
Facilities (Location) |
Equipment | Amount (in million JPY) |
Date of start | Scheduled date of completion |
Company’s Nihonmatsu Operations (Fukushima Prefecture) |
Equipment to manufacture oil seals | 10,000 | Apr. 2018 | Mar. 2020 |
NOK |
Facilities to manufacture plastic products | 4,939 | Jun. 2017 | Nov. 2018 |
Unimatec Singapore Pte. Ltd. |
Equipment to manufacture chemical synthetics | 8,157 | Sep. 2015 | Mar. 2019 |
MEKTEC Manufacturing Corp. Vietnam Ltd. |
Facilities to manufacture flexible circuit boards | 5,592 | Apr. 2018 | Mar. 2019 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)