[Company analysis] Nisshinbo Holdings Inc. (日清紡ホールディングス)

「Nisshinbo Holdings Inc. (日清紡ホールディングス)」was founded as a textile company and is now engaged in business activities in various fields such as electronics, automobile brakes, mechatronics, chemistry, papers, and real estate.「Nisshin Seifun Group Inc.(日清製粉グループ本社)」 which also has Nisshin as its company name, and this「Nisshinbo」has a mutual investment relationship. However, there is no connection with「Nissin Food Products Co.,Ltd.(日清食品)」or「The Nisshin OilliO Group, Ltd.(日清オイリオグループ)」. The number of consolidated employees is approximately 22,850.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nisshinbo Holdings Inc.
Company name (Japanese)	日清紡ホールディングス
Date of establishment	Tuesday, February 5, 1907
Headquarters location	〒103-8650 東京都中央区日本橋人形町二丁目31番11号
Capital	27,639
Consolidated sales	512,047
Consolidated operating profit	15,085
Consolidated total assets	654,227
Consolidated capital	290,434
Capital adequacy ratio	44.4%
Consolidated number of employees	22,850

 

 

 

2. Summary and Features

 
「Nisshin Cotton Spinning Co., Ltd.(日清紡績株式会社)」which was founded in 1907, is the beginning of「Nisshinbo」. As the company name of "Cotton spinning", originally, their core business item was fiber. By the 1960s, the textile business accounted for 90% of total sales, but in 1980 it fell to 67% and became less than half that amount in 1990. Still, they continue the textile business such as non-woven fabrics and elastomers. In 2015, which is relatively recent, they bought the「Tokyoshirts Group(東京シャツ)」, Japan's largest men's shirt maker and retail business.

Currently, the core business of「Nisshinbo」is the electronic business including wireless communication technology products and the automotive brake friction materials business, which boasts the top share in the world. In the case of the electronic business, they purchased「New Japan Radio Co., Ltd.(新日本無線)」in 2005 and made it a wholly owned subsidiary in 2010, and it became the largest business division of「Nisshinbo」. In other words, since this purchase, the electronic business which centered on semiconductors and radio equipment are is now their core business.

As for the brake business, its origins date back to the time of World War II. The textile business and automobile brakes seem to have no relation to each other, but there were some similarities in terms of element technology. Even we don't use it now, but at that time「Nisshinbo」began their brake business, they used fibrous asbestos into a sheet and used it as a brake friction material. So, this company, whose main business was cotton spinning, was able to handle that.

After the end of World War II, there was an explosive increase in demand for brakes and precision machinery. So the brake business remained as a core business to「Nisshinbo」. In 2011, it became the world's largest brake friction material manufacturer by purchasing「TMD Friction Group SA」, a major manufacturer of brake friction materials in Luxembourg. Since the 2000s, they have aggressively promoted M & A and even now they are trying to expand their business scale.

 

 

 

3. Major Business

 

■ Electronic business
They have strengths in analog semiconductor and microwave related technologies.

■ Brake business
It is recognized as the world's best company in the field of friction materials for brakes, which are the core parts of automobiles.

■ Precision equipment business
It is a precision equipment business that started in 1943 by manufacturing aircraft tails. For about 70 years since then, they have continued to expand to industrial machinery such as various industrial machine tools and solar cell manufacturing equipment, precision parts for automobiles, and plastic products.

■ Chemical business
They are focusing on the development of fuel cell separators and high-performance resin materials.

■ Textile business
They possess the world's highest level technology in all processes from development to production in the spinning, processing and sewing fields.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		533,989	527,274	512,047
Consolidated operating profit		12,617	4,890	15,085
Consolidated total assets		651,793	646,288	654,227
Consolidated net assets		284,471	275,753	290,434
Breakdown of sales	Electronic business	205,367	190,851	193,620
	Brake business	165,037	146,061	154,204
	Precision equipment business	29,525	60,687	64,918
	Chmical business	8,285	9,482	11,285
	Textile business	60,127	55,842	54,639
	Paper manufacturing business	32,584	32,647
	Real estate business	8,357	8,083	8,405
	Others	24,703	23,616	24,973