Nihon Plast Co., Ltd. Business Report FY ended Mar. 2015

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of
Change (%)
Sales 123,325 116,756 5.6 -Sales increased y/y despite production falls at the Company’s major customers in Japan. Sales rose due to increased production at major customers in North America and to the effects of a weak yen.
Operating income 2,915 1,480 97.0 Operating income, ordinary income, and net income significantly increased y/y due to the following factors:
-an increase in sales;
-the effects of rationalization;
-changes in depreciation methods for tangible fix assets; and
-a new accounting method (introduced in the second quarter of the year) temporarily extended the royalty periods between the Company and its consolidated subsidiaries.
Ordinary income 3,156 1,632 93.4
Net income 2,388 1,052 127.0
Sales by product
-Handles (Steering wheel) 23,007 20,930 9.9 -
-Airbags 46,051 48,842 (5.7) -
-Resin components 54,230 46,943 15.5 -
-Other 35 41 (14.6) -

Launch of cost reduction program

-The Company has launched a cost reduction program which covers all fields of steering wheels, air bags, and plastic products. The Global Cost Reduction Team, which is under the direct control of the president, will fundamentally revamp the Company's cost reduction efforts. The project covers the period between April 2014 and March 2017. The Company is faced with increased price-cutting requirements from automakers in the fierce global competition. While continuing its conventional cost reduction activities in manufacturing processes, the Company plans to revamp product specifications, including changes in materials and sizes, in order to propose lower-cost products to its customers. (From an article in the Nikkan Jidosha Shimbun on August 21, 2014)

Sales promotion

Handles (Steering wheels), Airbags
-The Company is making proposals in response to two different needs:

  • a need for high performance and quality products that meet strict safety regulations in North America and other markets
  • a need for low-cost products for emerging countries

Resin components
-Under the themes reducing weight and enhance recyclability, the Company is developing and introducing thin-walled products as well as alternatives to metal and glass products.

Outlook for FY ending Mar. 2016

(in million JPY)
  FY ending Mar. 31, 2016
FY ended Mar. 31, 2015
(Actual results)
Rate of
Change (%)
Sales 129,000 123,325 4.6
Operating income 3,100 2,915 6.3
Ordinary income 2,700 3,156 (14.4)
Net income 1,700 2,388 (28.8)
Sales by product
-Handles (Steering wheel) 23,430 23,007 1.8
-Airbags 43,809 46,051 (4.9)
-Resin components 61,740 54,230 13.8
-Other 21 35 (4.0)

-Sales are expected to increase, as production is forecast to fall in Japan but to rise in North America and China.
-Sales of safety components are forecast to decline, but those of plastic products are expected to increase.

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

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Safety components 1,232 1,168 855
Resin components 646 525 468
Total 1,879 1,694 1,324

R&D Structure

-The Company's R&D organization consists of the following functions:

  • Japan: Technical Center (Shizuoka Prefecture) with advanced development, interior/exterior systems, testing, and new-product technology
  • In North America: at Neaton Auto Products Manufacturing Inc., the Neaton Auto Technical Center (NATC)
  • China: Technical Center established in 2013

R&D Activities

Safety Components
<Handles (Steering wheels)>
-The Company is developing high-quality and lightweight steering wheels by adopting heaters and vibration control technologies to improve functionality and maneuverability. It also uses new decorative techniques to add a high-quality feel.  
- In order to enhance safety features, the Company is developing steering wheel packages that include an airbag. 

<Passenger seat airbags / Side impact airbag modules>
-The Company is developing products with advanced occupant safety features that meet new safety regulations.  
-The Company is working on reducing the use of organic solvents.

Urethane waste recycling technology
-The Company will propose use of a urethane waste recycling technology for mass-produced parts to automakers within the fiscal year ending in March 2016. The new recycling technology was jointly developed with Obihiro University of Agriculture and Veterinary Medicine. The Company intends to obtain automakers' approvals at an early stage to start recycling urethane waste as a material for steering wheels, one of its main products. The recycling technology is employed to make urethane waste a recyclable material using microorganisms. The processed urethane, which offers sound and water absorbing properties, can be used for a variety of purposes in addition to a recycled material for steering wheels. With the recycling technology, the Company aims to reduce material costs and commercialize other products such as sound absorbing materials. (From an article in the Nikkan Jidosha Shimbun on March 17, 2015)

Resin Components
<Exterior resin products>
-The Company developed new fender protectors and cowl top covers by utilizing its super-fine injection molding technologies and lip-integrated structure design with glazing.
-The Company developed and commercialized blow-molded wheel resonators, which help reduce road noise.

<Interior resin products>
-Ultra thin and highly functional ventilators
-The Company improved the functionality of consoles and glove boxes.
-It also developed and commercialized new interior panels by adding various decorative techniques to its advanced resin molding technology.

Investment Expenditure

(in million JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Japan 2,507 1,817 1,861
North America 2,197 2,521 2,181
China 2,198 2,088 1,003
Southeast Asia 955 253 312
Total 7,859 6,681 5,358

-During FY ended Mar. 2015, the Company invested in new equipment mainly to deal with vehicle model changes.
-The Company plans to spend JPY 7,534 million as capital expenditure for FY ending Mar. 2016.

Planned Capital Investment

(As of Mar. 31, 2015)
Company Plant Details Planned amount of investment (in million JPY) Start End
Fuji Plant Shizuoka,
Facilities for producing
safety products and resin components
433 Apr. 2015
Mar. 2016
Isezaki Plant Gunma,
Facilities for producing
safety products and resin components
1,571 Apr. 2015
Mar. 2016
Kyushu Plant Fukuoka,
Facilities for producing
safety products and resin components
142 Apr. 2015
Mar. 2016
Technical center Shizuoka,
Facilities for testing and researching safety products and resin components 407 Apr. 2015
Mar. 2016
Neaton Auto Products Manufacturing Inc. Ohio, U.S.A. Facilities for producing
safety products and resin components
995 Jan. 2016 Dec. 2016
Nihon Plast (Wuhan) Co., Ltd. Hubei,
Facilities for producing
safety products and resin components
957 Jan. 2016 Dec. 2016
Nihon Plast (Zhongshan) Co.,Ltd. Guangdong,
Facilities for producing
safety products and resin components
889 Jan. 2016
Dec. 2016