Results for the year ended March 2010

Transcription

1 Results for the year ended March 21 1

2 Contents Ⅰ.Results for the year ended March 21 Ⅱ. Approach to the polarized needs 1.Approach to the Volume Zone 2.Approach to the High-value-added markets Ⅲ. New technologies & products developments Ⅴ. Issues on the year ended March 211 2

3 Ⅰ. Results for the year ended March Net sales was 52.6 billion for the year ended March Recovered from the heavy loss incurred in the previous year and realized 4.3 billion net income Net sales(\mil) 8, 6, 4, 2, 6/3 63,642 Operating income/(loss) Income before taxes Net income/(loss) Net sales 73,37 7/3 8/3 77,786 9/3 59,43 52,59 1/3 Income(\mil) 1, 5, 5, 25, 1, 3, 15, IFRS IFRS IFRS IFRS IFRS (Million yen) 6/3 7/3 8/3 9/3 1/3 Result Result Result Result Result Net sales 63,642 73,37 77,786 59,429 52,59 Operating income/(loss) 3,747 7,53 8,442 25,38 3,979 Income before taxes 3,61 6,75 7,7 24,358 4,33 Net income/(loss) 3,485 4,484 5,246 28,731 4,337 Operating income ratio 5.9% 1.2% 1.9% 42.7% 7.6% Financial statements are prepared in accordance with IFRSs(NDK is the first company in Japan to apply IFRSs voluntarily) Japan Standard 1/3 Result 52,65 4,895 4,2 4, % 3

4 Ⅰ. Results for the year ended March 21 Sales trend of main applications Sales in main applications such as Mobile Communications, Audiovisual / Office Automation and Automotive Electronics hit the bottom at the 2nd half of FY28. (Million yen) (Million yen) 15, (Mobile Communications) (Fixed Radio Communications) (Others) (Audiovisual/Office Automation) (Automotive Electronics) 1, 5, FY27 1H FY27 2H FY28 1H FY28 2H FY29 1H FY29 2H 4

5 Ⅱ. Approach to the polarized needs Volume Zone New targets in emerging countries Low-end products Polarized needs High-value-added markets Broadband Ubiquitous Society Highly-accurate highly-reliable products Flattening & digitalizing society 5

6 Ⅱ. Approach to the polarized needs GDP per capita forecast for the emerging countries such as China, India shows large growth in 5 years Business chance in countries such as China, India! Business chance in new markets in advanced countries! ( U S $ ) GDP per capita (21 215) 2, 15, 1, 5, +92% CY % CY215 At over $5,, consumption demand rises largely +19% +69% India China Brazil Russia (Reference)Goldman Sachs ( U S $ ) 6, 5, 4, 3, 2, 1, GDP per capita(21 215) CY21 CY % +19% +28% +31% US Japan Germany UK 6

7 Ⅱ. Approach to the polarized needs World economy is expecting about 4% annual growth toward year 211. However, the speed of growth seems to polarize between emerging countries such as China, India etc. and advanced countries. Real economic growth rate(29-211(forecast)) 12 1 ( % ) CY29 CY21 (forecast) CY211 (forecast) World USA Euro Japan China India (Reference)IMF: World Economic Outlook (April 21) 7

8 Ⅱ. Approach to the polarized needs Approach to Volume Zone Audiovisual (AV) Office Automation (OA) Mobile Phone Growing applications such as liquid crystal TV, notebook PCs, are the main targets Market volume will further increase due to increasing demand in emerging countries Approach to High-value-added markets Infrastructure related Automotive Electronics & GPS Actively exploit telecommunications infrastructure market Secure profits by providing highly-reliable and highly-accurate products 8

9 Ⅱ.1 Approach to Volume Zone (AV/OA) Production volume of Audiovisual / Office Automation set devices (estimate) Production area of Audiovisual / Office Automation devices mil units 4, 3,5 3, 2,5 2, 1,5 1, 5 2,236 2,483 2,532 2,841 3,284 3,748 Others DVD/Blu-ray Game USB memory Printer DSC DesktopPC Portable audio FlatTV NotePC HDD W-LAN(WiFi) Latin America, 4% Europe, 7% Asia, 14% North America, 2% Others, 1% Japan, 4% China Taiwan Hong Kong 68% Reference:EM data, JP Morgan, Fuji chimera, Navian Reference:Fuji chimera <Trend <Trend in in set set devices> devices> *Two-digit *Two-digit increase increase is is expected expected from from *68% *68% of of the the world world productions productions are are from from the the China China region region (as (as of of 28) 28) 9

10 Ⅱ.1 Approach to Volume Zone (Mobile Phone) Number of Crystal devices used for PLL of mobile phone (NDK estimate) mil units 1,6 1,4 1,2 1, , , , ,25 1, ,455 1, Crystal unit TCXO 1,6 1,4 1,2 1, mil units ,115 Smart-phone share among total mobile phone (NDK estimate) 9% 1,17 1,135 12% 16% 1,253 19% 1,353 23% 1,462 1,94 1,49 1,12 1,9 1, % 3% 25% 2% 15% 1% 5% % normal handset smartphone share of smartphone <Trend <Trend in in mobile mobile phone phone hand hand sets> sets> *Further *Further increase increase is is expected expected in in low-end low-end model model used used at at emerging emerging countries countries *The *The proportion proportion of of smart-phone smart-phone is is expected expected to to increase increase rapidly rapidly 1

11 Ⅱ.1 Approach to Volume Zone (Production) The production of the products demanded at Volume Zone shifts to Suzhou and Malaysia Overseas production ratio Suzhou Factory Japan FY9 FY1 29% 36% Overseas factories Malaysia Factory Utilize inexpensive labors Reduce influence of exchange fluctuations Expected exchange rate for FY21 (US$): 9 (FY29 result average: 92.85) Influence on operating profit 1 fluctuation approx. 6 mil 11

12 Ⅱ.2 Approach to high-value-added markets (Infrastructure) Market trend of mobile phone base stations (shipment volume) Market trend of optical communication devices (shipment volume) (kunits) (kunits) 1,6 1,4 1,4 1,2 1,2 1, WiMAX LTE TD-SCDMA W-CDMA CDMA2 GSM 1, SONET/SDH WDM Reference: EJL Reference: Dell`Oro <Overall <Overall trend> trend> Further Further increase increase of of mobile mobile handsets handsets and and rapid rapid increase increase of of communication communication traffics traffics lead lead to to stable stable growth growth of of infrastructure infrastructure related related devices devices such such as as mobile mobile phone phone base base stations stations and and optical optical communication communication devices devices 12

13 Ⅱ.2 Approach to high-value-added markets (Infrastructure) Manufacturers of mobile phone base stations (sales base) Manufacturers of optical communication devices (sales base) ALCATEL LUCENT 8% OTHERS 7% year 29 year 29 ZTE 1% ERICSSON 29% OTHERS 25% ALCATEL LUCENT 23% NOKIA SIEMENS 18% HUAWEI 28% CIENA 5% ERICSSON 6% NEC 5% FUJITSU 6% NORTEL 8% HUAWEI 16% NOKIA SIEMENS 6% Reference : Dell`Oro Reference : Dell`Oro <Overall <Overall situation> situation> *US, *US, European European and and the the Chinese Chinese have have the the overwhelming overwhelming share share *Especially, *Especially, Chinese Chinese manufacturers manufacturers are are rapidly rapidly emerging emerging 13

14 Ⅱ.2 Approach to high-value-added markets (Infrastructure) Received Excellence Global Core Partner prize from Huawei 29 global core partner convention was held on November 5 and NDK has been selected as a core partner of Huawei. This award is given to the top 1 suppliers among approx. 2 companies. 1 mil$ Huawei sales trend(4-9) (24-29) , staff, which is 43% of the total employee are working at 14 R&D centers located worldwide Reference : Nikkei business daily (3.Aug 29) 14

15 Ⅱ.2 Approach to high-value-added markets (Infrastructure) Developed super high precision OCXO in October 29 Realized frequency with temperature characteristic of ±1 1-9/-4~85 NH37M28L series Even if external temperature fluctuates from -4 to85, frequency moves only ±1 billionth. (37 28 H19(max)mm) If one billionth is described in distance, it means you aim at a target set at London from Tokyo (about 1 thousand km) and the result is only 1 cm gap with the target. London Tokyo 15

16 Ⅱ.2 Approach to high-value-added markets (Automotive) Amount of crystal devices used at automotive by functions (NDK estimate) mil units 1,4 1,2 1, ,63 1, ,17 1,212 ITS related information related car control related 12, 1, 8, 6, 4, ten thousand units 2.6% Worldwide sales volume forecast of hybrid/electronic cars 4.2% 4.6% 6.6% 7.2% 8.6% 9.5%1.2% 12.% 1.% 8.% 6.% 4.% car production production of HEV/PHEV/EV share of HEV/PHEV/EV 2 2, 2.% % Reference :CSN,NRI <Trend <Trend in in automotive automotive market> market> *Sales *Sales at at emerging emerging countries countries such such as as China China and and India India will will lead lead the the market market to to a stable stable growth growth from from *New *New demands demands are are expected expected at at electronic electronic cars, cars, ITS, ITS, car car navigations navigations and and car car PCs PCs 16

17 Ⅲ. New technologies & products development At the Laboratory ATOM, highly skilled engineers are engaged in the cutting-edge R&D regarding next generation frequency control and selection devices Applied research of crystal/saw device Laboratory ATOM Pursue potentiality with new devices Started operation from May 8, 29 17

18 Ⅲ. New technologies & products development New product NAPiCOS Auto was released this April Character * Immune reaction is automatically measured by easy pipetting operation! *Micro scale sample can be measured with the newly developed micro fluid chip!(5μl:1/1 of our conventional product) * Possesses high function of manual type, such as short time measurement (minimum 15 min: 1/5 of competitors conventional products) To other applications * immune reaction, biochemistry, molecular biology, clinic, food, material, environment, etc. NAPiCOS Auto 2A (Auto type) Newly developed! Micro fluid chip NAPiCOS 1A (Manual type) 19mm Now selling to universities, institutes, etc 18

19 Ⅲ. New technologies & products development NDK is pursuing crystal device of small, high accuracy and advanced function by combining three technologies. The three technologies are the technology to develop crystal of high quality, the technology to process wafer, and the e photolitho technology which are essential for micro processing. Technology to develop crystal of high quality Silicon MEMS resonator (co-developed with TOHOKU university) Technology to process large thin wafer Creation of new technology Photolithography technology S-Disk 3µm Poly-Si electrode Distance between disc and electrode:1nm 19

20 Ⅳ. Issues on the year ended March 211 Priority on Quality Focus on Profitability Secure income target by fully utilizing the existing resource Focus on new product development corresponding with the new environment after the Lehman shock New markets such as energy, environment, health, will also be exploited 2

21 Ⅳ. Issues on the year ended March Capital investment will be at the same level as of the year ended March 21 and allocated to new product developments 2. Increase of orders will be matched by fully utilizing the existing facility 2, 15, 1, 5, -5, -1, Operating cash1 Investing cash2 Free cash flow1-2 (Million yen) 6/3 7/3 8/3 9/3 1/3 11/3 actual actual actual actual actual forecast Operating cash1 9,145 14,7 13,979 6,371 4,8 5,1 Investing cash2 6,21 11,51 12,347 11,768 3,871 3,4 Free cash flow1-2 3,124 3,199 1,632 5, ,7 21

22 Ⅳ. Issues on the year ended March 211 Certain amounts of R&D expenses for new product development will be secured (Unit : million yen) 3, 2,5 2, 1,5 1, 5 R&D expenses 2,336 2,189 R&D expenses ratio against sales 2,31 2,531 Lowered approx. 2 million yen due to method change for depreciation from declining balance to straight line method 2,241 2,225 6.% 5.% 4.% 3.% 2.% 1.%.% (Million yen) 6/3 7/3 8/3 9/3 1/3 11/3 actual actual actual actual actual forecast R&D expenses 2,336 2,189 2,31 2,531 2,241 2,225 R&D expenses ratio against sales 3.7% 3.% 3.% 4.3% 4.3% 4.% 22

23 Ⅳ. Issues on the year ended March 211 NDK will secure income target along with new product development corresponding with the new environment and make further progress as a leader of quartz crystal industry Net sales: Million yen 6, 4, 2, Operating income/(loss) Income before taxes Net income/(loss) Net sales 59,429 52,59 55, 9/3 1/3 11/3 Income: Million yen 1, 5, 5, 25, 1, IFRS IFRS IFRS (Million yen) 9/3 1/3 11/3 actual actual forecast Net sales 59,429 52,59 55, Operating income/(loss) 25,38 3,979 3,5 Income before taxes 24,358 4,33 3,2 Net income/(loss) 28,731 4,337 3, Operating income ratio 42.7% 7.6% 6.4% 3, 15, 23

24 Finally Global environmental changes Still unstable era seems to continue Europe Transformation of energy Shift to new players Emerging countries Volume zone Japan US Broadband Ubiquitous Smart Grid Global warming Aging world Population explosion In the year ending March 211, NDK will accumulate sufficient strength and technology by carefully watching the future environmental changes NDK aims to become a true global player 24

25 Thank you for your attention. We are grateful for your continuous support. Note Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about our future performance. These statements are based on management s assumptions and beliefs in light of information currently available to it. We caution that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on the belief that it is our obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Risks and uncertainties that might affect us include, but are not limited to; fluctuation of currency exchange rates, overall supply and customer demand in the industry, product development and production capacities, performance of affiliated companies, and other risks and uncertainties. 25