Consolidated Financial Result Digest FY11/12...2012/05/30 · Copyright © 2012 TAIYO HOLDINGS...

Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.

ZXCV

Consolidated Financial Result Digest

FY11/12

ZXCV

May 14,2012

Any information incorporated in this document is not intended for suggestion of purchase

or sale of equity share of the company . All the description and projection are based on the

company's own analysis at the time of compilation , and their accuracy is not guaranteed .

These data may be revised without prior announcement. The company will neither assume

nor compensate any loss of anybody resulting from decision based on information

provided here .

(April 1,2011-March 31,2012)


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1

SR（Solder Resist）

For Touch Panels

For PKG

PWBs

Classification

PWB Materials

For Flexible

PWBs

For Rigid PWBs

For B/U

PWBs

FPD Materials

For PDPs

Silver Paste, etc.

White SR

New Products


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Term Definition

“PWB Materials”

(Printed Wiring Board) Chemical Products for Printed Wiring Boards

“FPD Materials“

(Flat Panel Display) Chemical Products for Flat Panel Display Panels

“PDP Materials” (Plasma Display Panel)

Chemical Products for Plasma Display Panels

"SR" Solder Resist Ink or Solder Mask

“PKG Materials”

(Package) Chemical Products for IC Package Substrates

Terminology


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INDEX

1. Summary of FY 11/12 Consolidated Financial

Results (April 1, 2011 - March 31, 2012)

2. Forecasts for FY12/13 (Consolidated)

3. Progress of Medium-term Business Plan


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1. Summary of FY 11/12 Consolidated Financial

Results (April 1, 2011- March 31, 2012)


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FY10/11 FY11/12 Change Change in

%

2/7/2012

Forecast

Sales 40,366 39,797 (569) (1.4 %) 40,300

Operating

Income 5,380 4,040 (1,340) (24.9%) 4,300

Ordinary

Income 5,316 4,027 (1,289) (24.3%) 4,200

Net Income 3,402 2,502 (900) (26.5%) 2,500

<Ave. Exchange Rate>

JPY/USD 85.8 79.3 (6.5) (7.6%) 78.7

FY11/12 Consolidated Results

(JPY millions)


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FY11/12 Factors for Sales Decrease (vs. FY10/11)

2.8

3.3

2.1

3.4

40.3

39.7FY11/12 Actuals

Fluctuation in exchange rates

Change in sales volume

Change in product mix of PWB

Materials,etc.

Increase in selling prices of FPD

Materials

FY10/11 Actuals

Sales (JPY billions)


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FY11/12 Factors for Profit Decrease (vs. FY10/11)

4.0

0.9

1.3

0.9

5.3

FY11/12 Actuals

Fluctuation in

exchange rates

Change in sales

volume

Changes in

product mix

FY10/11 Actuals

Operating Income (JPY billions)


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15.1 14.3

9.5 9.1

4.1 4.2

13.9 12.9

0

5

10

15

20

25

30

35

40

45

3/31/11 3/31/12

Fixed Assets Other Current Assets

Inventories Cash

FY11/12 Summary of Balance Sheet

34.1 33.4

8.6 7.2

0

5

10

15

20

25

30

35

40

45

3/31/11 3/31/12

Equity Liabilities

Assets

Decrease in cash and deposits.

Decrease in fixed assets due to depreciation

and loss on valuation of investment in capital

of subsidiaries and affiliates.

Decrease in liabilities due to decrease in trade

payables, accounts payable-other, income tax

payable, etc.

Decrease in equity due to dividend payment

exceeding net income.

42.8 40.7

42.8 40.7

Liabilities and Equity

(JPY billions) (JPY billions)


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4.5

2.7

-4

-2

0

2

4

FY10/11 FY11/12

FY11/12 Summary of Cash Flows

Decrease in liabilities such

as trade payables, etc.

Decrease in Operating

income.

0.7

-1.3

-4

-2

0

2

4

FY10/11 FY11/12

-3.6 -2.9

-4

-2

0

2

4

FY10/11 FY11/12

Decrease due to deposit of

time deposits.

FY11/12 maintains the same

level of investment as in the

FY10/11.

Own shares purchase for 1.3

billion in FY10/11.

Increase in dividend for 0.5

billion due to commemorative

dividend.

Operating CF Investing ＣＦ Financing ＣＦ


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22.9 20.2

5.6

5.4

1.2 1.0

0

5

10

15

20

25

30

35

FY10/11 FY11/12

Rigit PKG&Flexible Build-up

10

Sales of PWB Materials

Demand of smartphones and

tablet PCs remained strong, on

the other hand, general PC and

TV were sluggish.

Sales volume of low-priced

products (for China Market) was

increased about 20% year on

year.

Sales volume in Korea was

relatively strong.

26.7 29.9

Sales

(JPY billions)


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Sales of FPD Materials

9.4

12.3

0

2

4

6

8

10

12

FY10/11 FY11/12

Sales of FPD materials reached at a

record high due to stable high price of

silver.

Sales volume increased in China.

Sales

(JPY billions)


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Result by Segment for FY11/12

18.4

11.9

4.4

13.7

3.0

11.7 10.6

3.7

16.6

2.6

0

4

8

12

16

20

Japan China Taiwan Korea Others

FY10/11

FY11/12

1.0

2.8

0.5

0.9

0.2

0.9

1.7

0.4 0.6

0.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Japan China Taiwan Korea Others

Sales

Operating Income

(JPY billions)


ZXCV Trend of Quarterly Performance

13

-0.4

0.0

0.4

0.8

1.2

1.6

2.0

2.4

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Sales（left axis） Operating Income（right axis）

FY08/09 FY09/10 FY10/11 FY11/12

(JPY billions) (JPY billions)


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Due to the changes to business environment in China,

ROI reassessed far below than when planned.

Posted “Loss on valuation of investment in capital of subsidiaries and affiliates” as extraordinary loss for 421 million yen.

TAIYO INK (SUZHOU) meets increasing future demand.

We are developing a plan(BCP) to minimize risk

concentration to TAIYO INK (SUZHOU).

Cancellation of the Construction of TAIYO INK (ZHONGSHAN)


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Return to shareholders

60

90 90 90 90

55

25

8.1%

6.5% 6.8%

8.6%

6.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

20

40

60

80

100

120

140

FY07/08 FY08/09 FY09/10 FY10/11 FY11/12

Ordinary Commemorative/Special DOE（Projection）

115

90 90

115

90

Dividend policy remains unchanged.

(JPY)


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2. Forecasts for FY12/13 (Consolidated)


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Forecasts for FY12/13 (Consolidated)

FY11/12

Result

FY12/13

Forecast Change

Change in

%

Sales 39,797 40,500 703 1.8%

PWB+ 27,490 29,500 2,010 7.3%

FPD 12,307 11,000 (1,307) (10.6%)

Operating

Income 4,040 4,500 460 11.4%

Ordinary

Income 4,027 4,500 473 11.7%

Net Income 2,502 3,200 698 27.9%

<Foreign Exchange Rate>

JPY/USD 79.3 80.0 0.7 0.9%

(JPY millions)


ZXCV Forecasts for FY12/13 Overview

18

PWB

FPD

Market demand expected to recover mainly in China, ASEAN.

Recovery of sales volume about 10% equal to FY10/11 level.

Raising our market share of low-priced products.

Focusing on Hole plugging ink, Marking, Flexible, etc.

Sales in PDP Materials expected to increase chiefly in China.

Korean market expected to shrink, but sales volume to be maintained due

to raising market share.

For Touch panel materials, we have launched a new organization unit

consolidating R&D, production and sales to increase sales.


ZXCV Trend of Consolidated Sales from PWB+ and FPD

Sales

Forecast

1.3 1.0 1.0 1.4 1.5 0.9 0.9 0.9 0.7 0.6

1.5 3.1

6.5 9.5 10.2

5.6 6.0 9.4 12.3 11.0

22.9 23.5

27.7

30.9 33.6

26.0 27.9

29.9 26.7 28.9

0

5

10

15

20

25

30

35

40

45

50

Others FPD Materials PWB Materials

40.3

35.0

39.7

32.6

45.3 41.9

35.3

27.7 25.7

40.5

(JPY billions)


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23.1 25.7

27.7

35.3

41.9

45.3

32.6 35.0

40.3 39.7 40.5

4.0 4.8 4.7 6.6

7.9 8.8

3.3 4.8 5.3 4.0 4.5

2.1 2.7 2.9 4.2

5.5 6.1

1.9 3.0 3.4 2.5 3.2

0

5

10

15

20

25

30

35

40

45

50

FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Sales Ope. Income Net Income

Trend of Consolidated Performance

Forecast

(JPY billions)


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Investment & Depreciation Expense

0

200

400

600

800

1,000

1,200

FY10/11 FY11/12 FY12/13

Investment Depreciation

(Projection)

(JPY millions)


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3. Progress of Medium-term Business Plan


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FY12/13

Forecast

Medium-term

Business Plan Change

Sales 40,500 48,000 (7,500)

PWB+ 29,500 38,500 (9,000)

FPD 11,000 9,500 1,500

Operating

Income 4,500 7,700 (3,200)

Operating

Income Ratio 11.1% 16.0% (4.9%)

Sales of New product and

fields 3,800 4,000 (200)

Now difficult to achieve the target. However, achievement rate of new

product sales is high.

Gap between FY12/13 Forecast and Medium-term Business Plan

(JPY millions)


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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Forecast when planning Results（FY12/13 is forecast)

（tons）

Difference about

8,000 tons

“Lehman Shock”

European debt

crisis

SR Market trend in China


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Strategy for Chinese market

• Converted some customers from the competitors by the low-priced products.

• Market share was slightly increased in FY11/12. some target customers are evaluating our products. Increase in share is expected in and after FY12/13.

• Increase in sales force helps provide better services to our customers.

Strategy for “Local production for Local consumption”

• The earthquake in Japan accelerated production transfer from Japan to overseas subsidiaries.

• The local supply rate of the raw materials increased in subsidiaries.(about 50% in FY11/12)

• Will promote to export raw materials to Japan, taking advantage of the stronger yen.

Progress of Strategies


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Strategy for new products development

• Sales of new products in FY11/12 was JPY 2.5 billion.（Sales target was JPY 2.4 billion for FY11/12.）

• Sales of white SR, black SR, silver paste for through holes were increased.

• Sales target for the final year of the Business Plan (FY12/13) is JPY 3.8 billion.

Strategy for Global talent management

• Will promote local employees to managers and executives at local subsidiaries.

• Will promote highly qualified local talent to Board members for Taiyo Holdings.

Progress of Strategies


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Development of New Medium-term business plan

Working on a new Medium-term Business Plan

covering up to FY16/17.

Developing new growth strategy with the

keyword; “Speed & Communication”

Active promotion of M&A


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Consolidated Financial Result Digest FY11/12...2012/05/30 · Copyright © 2012 TAIYO HOLDINGS...

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