Nifco Inc. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 185,167 | 139,916 | 32.3 | - |
| Operating income | 15,718 | 10,549 | 49.0 | - |
| Ordinary income | 17,022 | 10,946 | 55.5 | - |
| Net income | 9,771 | 5,348 | 82.7 | - |
| Composite plastic molded products | ||||
| Sales | 161,846 | 120,946 | 33.8 | 1) |
| Operating income | 17,610 | 12,560 | 40.2 | |
1) Composite plastic molded products
<Sales in the Japanese auto industry>
-Sales during the first half of the fiscal year that ended March 2014 were nearly the same as those during the same period last year. During the second half of the year, individual consumption increased because of the Abe administration economic policies, i.e., Abenomics. Sales increased due to greater automotive sales that resulted from the last-minute demand for new-car purchases that arose before the consumption tax increased from April 2014. Overall, sales and income increased year-on-year.
<Sales in the auto industry outside Japan>
-Sales and income at consolidated subsidiaries outside Japan improved year-on-year, thanks to strong sales to Japanese and Korean OEMs, and significantly higher sales generated in North America and Asia. In addition, income rose substantially in Europe because of an M&A.
-In terms of profits, mass-production was on track at new subsidiaries, with three business operations located outside Japan making a profit for the year.
Acquisition
Expanding its business in Europe, acquiring German automotive plastic parts supplier-The Company will acquire German automotive plastic parts supplier, KTW GmbH & Co. KG and its group companies. The Company will buy all shares of the group to convert it into its subsidiary. After settling the purchase price and other details, the Company aims to conclude the acquisition in a few months. The KTW Group manufactures and sells automotive plastic parts such as instrument panels and door trims. In 2013, its revenue increased by 11.3% year-over-year to JPY 8.4 billion. KTW's sole plant is located in Bavaria. The group deals mostly with German automakers, with sales to BMW accounting for more than half of the total. Nifco intends to enhance its business in Europe by expanding business with the German automakers. The Company's global sales network will help it supply to the German automakers' plants located around the world. (From an article in the Nikkan Jidosha Shimbun on April 23, 2014)
Outlook for FY ending 2015
|
(in million JPY) |
| FY ending Mar. 31, 2015 (Forecast) |
FY ended Mar. 31, 2014 (Actual Results) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 195,000 | 185,167 | 5.3 |
| Operating income | 17,000 | 15,718 | 8.2 |
| Ordinary income | 17,500 | 17,022 | 2.8 |
| Net income | 10,000 | 9,771 | 2.3 |
-Sales in Japan of composite plastics for the fiscal year ending March 2015 are forecast to decrease 6.3% year-on-year, while they are forecast to increase 5.3% year-on-year overall due to expected growth in North America, Europe, and Asia.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)
R&D
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
| Overall | 2,492 | 1,776 | 1,629 |
| -Composite plastic molded products | 2,468 | 1,763 | 1,621 |
-The Company plans to invest JPY 2,600 million for R&D activities during FY ending Mar. 2015.
R&D Structure
-R&D activities on technology designed to respond to future markets are being conducted mainly at the Nifco Technology Development Centre.R&D Activities
Automotive Products-In developing technology that responds to the need for reduced energy use, the Company developed power train related components which contribute to improve fuel efficiencies.
-In developing technology that responds to the need for automotive safety, the Company developed brake parts used to mitigate collisions and obstacle-detection sensors.
Technical Alliance Agreements |
(As of Mar. 31, 2014) |
| Company Name (Location) |
Contract Coverage | Contract Term |
|
Illinois Tool Works Inc. (USA) |
Plastic buckles | Until Aug. 27, 2023 |
Technology Licensing-out Agreement |
(As of Mar. 31, 2014) |
| Company Name (Location) |
Contract Coverage | Contract Term |
| Nifco Taiwan Corporation (Taiwan) |
Manufacturing technologies for plastic buckles and industrial fasteners | Until Dec. 31, 2015 |
| Nifco Korea Inc. (Korea) |
Manufacturing technologies for plastic buckles and industrial fasteners | Until Dec. 31, 2014 |
| Union Nifco Co, Ltd. (Thailand) |
Manufacturing technologies for plastic buckles; and assembling both plastic and metal fasteners | Until Jun. 30, 2017 |
| Nifco Manufacturing (Malaysia) Sdn. Bhd (Malaysia) |
Manufacturing technologies for plastic buckles and fasteners | Until Dec. 31, 2017 |
| Nifco (Hong Kong) Ltd. (Hong Kong) |
Manufacturing technologies for plastic buckles, plastic or metal fastener assembly | Until Dec. 31, 2015 |
| Nifco U.K. Ltd. (UK) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2014 |
| Nifco America Corporation (USA) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2014 |
| Nifco Products Espana S.L.U. (Spain) |
Manufacturing technologies for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2017 |
| Shanghai Nifco Plastic Manufacturer Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2017 |
| Boosung Industrial Corporation (Korea) |
Manufacturing technologies for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2017 |
| Dongguan Nifco Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2017 |
| Nifco (Thailand) Co., Ltd. (Thailand) |
Manufacturing technologies for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2018 |
| Tifco (Dongguan) Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2016 |
| Beijing Nifco Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2015 |
| Nifco Poland Sp.zo.o. (Poland) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2016 |
| Nifco Vietnam Ltd. (Vietnam) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2018 |
| Nifco (Tianjin) Co. Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2015 |
| Nifco India Private Ltd. (India) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2015 |
| Nifco (Hubei) Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2016 |
| Nifco Korea USA Inc. (USA) |
Manufacturing technology for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2015 |
| Nifco (Jiangsu) Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2015 |
| Nifco South India Manufacturing Private Ltd. (India) |
Manufacturing technology for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2017 |
| Nifco (Yancheng) Co., Ltd. (China) |
Manufacturing technologies for resin and metal parts/finished goods with fastening properties; Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2016 |
| PT. Nifco Indonesia (Indonesia) |
Manufacturing technology for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2017 |
| Nifco Korea Poland Sp. z o.o. (Poland) |
Manufacturing technologies for industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2017 |
| Nifco Central Mexico S.de R.L.de C.V. (Mexico) |
Manufacturing technology for buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2018 |
Investment Activities
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
| Overall | 21,166 | 18,521 | 17,056 |
Composite plastic molded products (FY ended Mar. 2014)
<Japan>
-To respond to new orders won from Japanese OEMs, an investment of JPY 3,658 million for facilities to produced dies, fuel-system products, etc. was made.
<USA>
-Nifco America Corporation invested JPY 1,293 million in facilities and equipment to produce fuel-system products; and in forming equipment.
<Asia>
-Invested JPY 10,075 in the Asian region, mainly to construct new plants at Nifco Korea Inc. (JPY 367 million) and Nifco (Yancheng) Co., Ltd. in China (JPY 2,581 million).
-The Company plans to invest JPY 18,000 million toward overall investment activities.
Planned Capital Investments (Composite plastic molded products) |
(As of Mar. 31, 2014) |
| Company/ Facility (Location) |
Targeted Investment | Investment Amount (in million JPY) |
From | To |
| Nifco (HK) Ltd. (Hong Kong, China) |
New plant | 2,457 | Sep. 2013 |
Aug. 2015 |