Management in Fiscal 2012

Transcription

1 Management in Fiscal Results Briefing Fiscal Apr 26, 2012

2 Contents 1. FY2011 Business Results and Outcome 2. FY2012 Forecasts and Key Tasks

3 FY2011 Business Results Consolidated Item FY10 Results FY11 Forecast FY11 Actual (Billion yen, %) FY11 vs. FY10 FY11 Actual vs. FY11 Forecast Net Sales Operating Income Ordinary Income Net Income Cash Dividends per Share (yen) 36.0 (Regular) 36.0 (Regular) 36.0 (Regular) Sales and operating income were down due to the sluggish conditions in the semiconductor and LCD markets as well as the impacts of the Great East Japan Earthquake and the Thailand floods. Net income was higher than expected due to the recording of extraordinary income in the form of compensation received from The Tokyo Electric Power Company.

4 FY2011 Business Results Results by Segment (Percentages for net sales and operating income are comparisons with the previous fiscal year) Functional Materials Segment (Net sales -5%, Operating income -36%) Sales of epoxy molding compounds and die bonding materials were down due to sluggish conditions in the semiconductor market. Sales of carbon anode materials were up with a mainly increase in sales for lithium ion batteries used in automobiles. Sales of anisotropic conductive films were down due to lower demand for LCD TVs and others. Operating income was down due to sluggish conditions in the semiconductor market as well as the impacts of high raw material prices and the strong yen.

5 FY2011 Business Results Results by Segment (Percentages for net sales and operating income are comparisons with the previous fiscal year) Advanced Components and Systems Segment (Net sales -5%, Operating income -64%) Sales of friction materials and other automotive parts were down due to the impacts of the Great East Japan Earthquake and the Thailand floods. Sales of printed wiring boards were down due to lower demand for products used in mobile phones and automobiles. Operating income was down following lower sales of automotive products due to the impacts of the Great East Japan Earthquake and the Thailand floods.

6 Outcome of FY2011 Outcome of Key Tasks Restoration Initiatives Great East Japan Earthquake (Fukushima Dai-ichi Nuclear Power Station Related Incidents) Disk Brake Pads: Production recovered to approx. 70% of pre-earthquake levels due to establishment of new production base and supplement of production with other bases in China and Mexico,etc. Carbon Brushes: Production recovered to approx. 60% of pre-earthquake levels due to establishment of new production base. Thailand Floods Disk Brake Pads: Portion of production at flooded bases recovered during February. Full recovery will be targeted for May Diversification of Production Product Carbon products Country /Region Thailand Details New base Carbon anode materials for LiB China New base Copper-clad laminates CMP slurry ACF China Taiwan China Capacity increase New base New base Start date April 2012 March 2012 July 2012 April 2013 April 2013 Steadily advancing initiatives for fast recovery

7 Outcome of FY2011 Outcome of Key Tasks M&A Activities Converted Shin-Kobe Electric Machinery Co., Ltd. into wholly owned subsidiary (as of March 31, 2012). Acquired 75% share of Hitachi Chemical Electronics Materials (Hong-Kong, Guangzhou) Limited (formerly Mica-Ava). Acquired Nitto Denko Corporation s semiconductor encapsulating materials business (basic agreement concluded in March2012). Advancing preparations to expand business scope in growth fields Expanding Lineup of New Products Sales of optically clear adhesive film FINESET for use in touch panels were up. Sales of carbon anode materials for LiB to be used in environmentally-friendly automobiles were up. Sales increases seen in growth fields

8 Outcome of FY2011 Outcome of Key Tasks Global Expansion Country /Region Product Details Photosensitive dry films Production capacity increase (April 2011) China Epoxy molding compounds Carbon anode materials Production capacity increase (November 2011) Production base establishment (March 2012) PT Hitachi Powdered Metals Indonesia Friction materials (Disk brake pads) Production capacity increase (July 2011) Indonesia Powder metal products Production base establishment (February 2012) 8 USA Powder metal products Production capacity increase (February 2012)

9 Contents 1. FY2011 Business Results and Outcome 2. FY2012 Forecasts and Key Tasks

10 FY2012 Forecasts (1)Consolidated (Billion yen, %) Item FY10 Results FY11 Results FY11 vs. FY10 FY12 Forecast FY12 vs. FY11 Net Sales Operating Income Ordinary Income Net Income Cash dividends per share (yen) 36.0 (Regular) 36.0 (Regular) (Regular)

11 FY2012 Forecasts (2)Background Outlook for Fiscal 2012 Electronics market of tablet PCs and smartphones will continue to be strong while future conditions regarding TVs, PCs, etc. are unclear. Automotive market will expand centered on emerging countries. While product selling prices will continue to decline, sales increases and cost reductions will be targeted. Must achieve increased sales and income through addressing demand in growth fields in fiscal 2012

12 Challenges and Key Tasks for Fiscal 2012 What We Should Do in Fiscal 2012 Expanding Environmental and Energy Businesses Strengthening New Businesses and New Products Accelerating Global Expansion Developing Strategic Approach to the Middle-Range Zone

13 Key Tasks FY2012 Expanding Environmental and Energy Businesses Growth Fields Storage batteries Alternative energy Environmentally-friendly automobiles Generate Synergies between Hitachi Chemical and Shin-Kobe Electric Machinery Realize superior performance and reliability by utilizing Hitachi Chemical s material and evaluation technologies Accelerate the Group s overseas expansion by leveraging Hitachi Chemical Group s infrastructure Establish the Energy Devices & System Business Headquarters. Improve competitiveness and address global demand.

14 Key Tasks FY2012 Expanding Environmental and Energy Businesses (Managed by the Energy Devices & System Business Headquarters) Hitachi Chemical Synergies Shin-Kobe Electric Machinery Expansion areas Material technologies / Evaluation technologies Electrode manufacturing Device assembly Battery control units Power control systems After-sales Maintenance services (Upstream) Flow of value chain (Downstream) Develop comprehensive rechargeable device business that spans entire value chain

15 Key Tasks FY2012 Strengthening New Businesses and New Products Allocation of Corporate Research Resources Element Technologies 24% Environmental & energy 17% Telecommunications 59% FY2008 Focus Markets Element Technologies 29% Life sciences 7% Telecommunications 24% Environmental & energy 40% FY2012 Focus resources on growth fields (environmental and energy) Energy (solar cells, wind power batteries, environmentally-friendly automobiles) Mobile devices (touch panels, sensors) LED / Organic EL (TVs, lighting, electric signs) Develop and commercialize new products for growth fields

16 Key Tasks FY2012 Conductive Film CF series, Low-Temperature Melting Interconnecting Paste CP series Lineup of customer-need meeting products to be used as environmentally friendly alternative for solder Low-temperature bonding prevents cracks and reduces warping Expand CF series sales in fiscal 2012 and install production line at Hitachi Chemical (Nantong) Company, Ltd. (Scheduled to begin operation in April 2013) CP series to be adopted by several customers Tab Ribbon Bus Bar Strengthening New Businesses and New Products -Energy Fields- Low- Temperature Bonding <Structure of Solar Cells> CF series CP series Expand usage of the CF and CP series to respond to future growth in the solar cell market

17 Key Tasks FY2012 Strengthening New Businesses and New Products -Energy Fields- Polyimide-Type Screen Printable Paste HP series (For Solar Cells) Unique filler technology forms uniform film and delivers excellent reliability (high moisture resistance and high weather resistance) Adoption by several customers anticipated < Cross Section Example of Solar Cell with Back Electrode > Silicon Wafer Positive Electrode Negative Electrode Insulating paste HP series Expanded adoption anticipated in tandem with spread of solar cells with back electrodes

18 Key Tasks FY2012 Strengthening New Businesses and New Products -Energy Fields- Lead-Acid Batteries for Cars with Idle-Stop System Possesses necessary durability to withstand the high frequency of charges and discharges required for cars with idle-stop system Sales up in fiscal 2011 due to new adoption for use in compact and light automobiles Accelerating global expansion China: Focus on acquiring new customers among local auto manufacturers Thailand: Newly established Hitachi Storage Battery (Thailand) Co., Ltd. began operations in April 2012 TuflongECO Series Hitachi Storage Battery (Thailand) Co.,Ltd. Expanding sales of products for use in China and Thailand, both growing markets

19 Key Tasks FY2012 Strengthening New Businesses and New Products -Mobile devices Fields- Transparent Conductive Transfer Film Adapts the usage of polycarbonate or PET film in place of glass substrate Contributes to reduction in the number of fabrication processes for customers as a transparent conductive film that can replace ITO Cover panel / Chassis Transparent Conductive Transfer Film Touch panel <Example of application> Optically clear adhesive Transparent conductive transfer film Substrate Transparent conductive transfer film Optically clear adhesive LCD module Back light unit Address demand for touch panels for tablet PCs and smartphones; plan to expand application to new areas, such as organic EL, e-papers, and solar cells field; start operations in fiscal 2012; and target net sales of 3.0 billion in fiscal 2013

20 Key Tasks FY2012 Accelerating Global Expansion India, New Delhi suburbs Automotive-use friction materials Joint-venture manufacturing company establishment (Starts operations Dec. 2012) Powder metal products Production base establishment (Starts operations Apr. 2013) Thailand, Chachoengsao Province Automotive lead batteries Production base establishment (Starts operations Apr. 2012) Powdered metal products Production capacity increase (To be completed Jul. 2013) Automotive parts Land acquisition (Scheduled for Apr. 2012) Malaysia, Penang Epoxy molding compounds Production capacity increase (To be completed May 2012) Hong Kong Copper-clad laminates Product lineup expansion (To be completed Jul. 2012) China, Nantong ANISOLM, conductive film CF series Production base establishment (Starts operations Apr. 2013) Advanced performance resins, chemical materials Production base establishment (Starts operations Jan. 2013) Taiwan, Tainan area CMP slurry Production base establishment (Starts operations Apr. 2013) China, Zhengzhou Automotive plastic molded products Production base establishment (Starts operations Jan. 2014) Mexico, Nuevo Leon Friction materials Production capacity increase (To be completed Aug. 2012)

21 Key Tasks FY2012 Accelerating Global Expansion Sales by region (FY2011) Region YoY Asia -5% (of which China -1%) Billions of yen (Forecast) Overseas sales Sales ratio % North America -11% Other -22% Promote local production and usage as well as strengthen initiatives targeting overseas markets

22 Key Tasks FY2012 Developing Strategic Approach to the Middle-Range Zone High-end Middle-range Low-end Provide materials that create new value for customers possessing advanced technologies Improve marketing efforts and cost competitiveness Optimization of sales and production bases Optimization of material suppliers Optimization of manufacturing processes Low-cost production leveraging volume benefits Strategic products Chinese-made copperclad laminates for servers Carbon anode materials for LiB to be used in general-use mobile PCs Low- and mediumlayered PWBs Chinese-made conductive films for solar cells Ultrathin clear adhesive film etc. Total of 9 products Improve competitiveness and develop high earnings structure by reinforcing efforts in both high-end and middle-range zones

23 Key Tasks FY2012 Developing Strategic Approach to the Middle-Range Zone Business Development Examples Copper-clad laminates Required characteristics (Low) Carbon anode materials for LiB Required characteristics (Low) (High) Semiconductor PKG Servers, Smartphones (highly functional terminals) Digital consumer electronics, For automobile use (accessories), etc (High) High capacity (smartphones, etc.) Medium capacity (mobile PCs) Low capacity (general-use laptop PCs) High-end Develop and provide substrates that meet the demand for next-generation PKG substrates Middle-range Expand sales at overseas subsidiaries acquired though M&A activities (Hong Kong and Guangzhou in China) Address demand in China, world s largest PWB market High-end Develop and provide new materials for LiB geared toward functions that meet market needs Middle-range Expand sales at newly established overseas bases (Yantai in China) Locate bases near raw material (natural graphite) producing regions Address demand from companies advancing operations in China (LiB manufacturers)

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