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 (%)
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 -


-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

>>>Sales by Business Sector

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

-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
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)
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

Kitaibaraki plant (Ibaraki Pref.)

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.)