NOK Corporation Business Report FY ended Mar. 2019

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 Rate of
Change (%)
Sales 669,482 729,341 (8.2) -
Operating income 23,140 44,934 (48.5) -
Ordinary income 31,135 56,291 (44.7) -
Profit for the year attributable to owners of the parent  3,419 35,281 (90.3) -


-Seal Business: Sales were higher because deliveries of automotive seals increased in Japan due to strong sales of compact vehicles, and due to strong sales by Japanese OEMs in Southeast Asia.
Sales increased by JPY 4.8 billion year-over-year (y/y) to JPY 341.7 billion.

ーElecronic Parts Business: Sales in the automotive segment were strong, but product demand for high-spec smartphones decreased. Overall, sales decreased.
Sales decreased to JPY 63.7 billion and operating profit fell to JPY 17.1 billion.

>>>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 billion
  Operating profit margin: 7.0%

-Business targets for the fiscal year ending in March 2020, which were announced in the fiscal year that ended in March 2019, are as follows.  Sales: JPY 670 billion, operating profit: JPY 31 billion, and operating profit-margin: 4.6%.


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 10,459 9,443 8,274
-Seal 7,828 6,738 6,209

R&D Activities

Seal Business

-By applying its expertise in the field of low-friction technology, the Company launched products that save energy and respond to harsh environments by reducing dust.  It is also developing seals for E-mobility.

<O Rings>
-The Company launched sales of high-pressure seals for environmentally friendly engines, coatings that facilitate easier assembly, and seals for fuel-cell batteries.  In addition, it is developing seals for E-mobility and seals that improve fuel consumption.

<Seal Rings for Rotating Bearings Used in Automatic Transmissions>
-The Company launched seal rings in a shape that supplies oil, the medium for seals. Compared to former seal rings, these reduce torque between 70% to 80%.

<New Products>
ーThe Company is developing electronic devices, single-unit FPC parts for electric units, and heat-conduction rubber that works to improve heat dissipation.
-The Company is developing and currently selling some low-resistance, space-saving seal parts for cell stacks in fuel-cell batteries.

-In line with the growing attention that is being given to ADASs in the market, the Company has started to focus on the field of driver-assistance systems, especially in the area of drowsiness-detection systems based on using a rubber electrode that can measure vital signs of drivers.

Electronic-device Parts Business
-The Company is working on enhancing the reliability of FPCs; developing FPCs that measure voltage, in response to the growing demand for batteries; and FPCs for inverters.

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, 2019)
Partner Content Signed on
Introduction and licensing of such seal product as oil seal, O ring and related technologies Dec. 12, 2017

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018

FY ended Mar. 31, 2017

Overall 70,118 58,388 65,135
-Seal 41,482 32,101 31,221

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, 2019)
Equipment Amount
(in million JPY)
Date of start Scheduled date of completion
Company’s Nihonmatsu Operations
(Fukushima Prefecture)
Equipment to manufacture oil seals 9,563 Apr. 2018 Mar. 2021
Company’s Nihonmatsu Operations
(Fukushima Prefecture)
Facilities to manufacture gaskets 5,110 May. 2018 Apr. 2020

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