FY2016 ended Dec. 2016 Financial Results - DAI-ICHI SEIKO › english › ir › presentation ›...

1 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

FY2016 ended Dec. 2016

Financial Results

Security code: 6640

February 15, 2017

Dai-ichi Seiko Co., Ltd.


Trade Name Dai-ichi Seiko Co., Ltd.

Founded July 10, 1963 （Fiscal year end in December ）

Stock Exchange

Listings The Tokyo Stock Exchange First section, stock code: 6640

Paid-in-capital 8,522 million yen

Issued Share 16,722,800 shares

Business

Ⅰ. Connectors & Electronics Components Business

Ⅱ. Automotive Electronics & Associated Components Business

Ⅲ. Semiconductor Mfg. Equipment and Other Business

Board President: KONISHI Hideki, 10 Other Directors （2 External Directors）, 4 Statutory Auditors （External Statutory Auditors）

Stockholders Holding Company: 43.05%, Employee Holding Association: 4.17%, The Master Trust Bank of Japan, Ltd.: 3.82%, KONISHI Hideki: 2.97%, CBNY DFA INTL SMALL CAP VALUE PORTFOLIO 1.68% (As of Dec. 31, 2016)

Head Office Kyoto-City, JAPAN

Plants in Japan 6 places （3 in Fukuoka, 1 in Yamanashi, 1 in Kyoto , 1 in Shimane）

Overseas Plants 11 places （2 in Singapore, 1 in Indonesia, 2 in Malaysia, 1 in Philippines, 1 in Thailand,

2 in China, 1 in Vietnam and 1 in U.S.A.）

Subsidiaries

Matsue Dai-ichi Seiko Co., Ltd. （100% share）,

DJ Precision Co., Ltd. （70% share, 30% shared by JAE Co., Ltd.）, IGM TECH SDN. BHD. （51% share）

16 overseas companies （100% share）,

No. of Employees 5,932 (1,908 in Japan and 4,024 in Overseas) Compared with Aug. 31, 2016, our employees increased by 15 in Japan and decreased by 36 in overseas.

■ Corporate Overview as of Dec. 2016


✔ Record-high sales in the automotive components

business for four consecutive years!

✔ Actions for more growth

■ FY2016 Topics

・Entire business: 103% YoY 17.97 billion yen

・Own brand: 1.7 times YoY 1.83 billion yen

・ New business: ESTORQ → Incorporated in industrial robots

HDD → Started building a new business model

・ Up-front capital expenditures for growth in the future

✔ A recovery in performance started from 2H! ・Full shield connectors grew in 2H.

・Foreign exchange losses down due to the yen-depreciation at the end of the year

(Hundred million yen） 1H 2H Full-year Sales 220.8 237.5 458.3

Ordinary income -12.4 20.4 8.0


■ FY2016 Topics

Hundred million yen

Full-year Plan

1H Actual

2H Actual

Full-year Actual

Ver. Plan

Sales 470.0 220.8 237.5 458.3 ×

Gross Profit 126.5 56.0 65.1 121.1 ×

Operating Income 4.0 -4.1 8.1 4.0 〇

Ordinary Income 3.0 -12.4 20.4 8.0 〇

Net Income Attributable

to Owners of Parent 1.0 -13.9 15.5 1.5 〇

FY2016

(Rounded down to the nearest million yen)


■ FY2016 Actual Consolidated Financial Highlights

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.) Amount

Change (%)

Sales 48,749 45,834 - 2,915 - 6.0%

Gross Profit 13,633 12,116 - 1,517 - 11.1%

Operating Income 1,723 401 - 1,322 -76.7%

Ordinary Income 2,344 800 - 1,544 -65.9%

Net Income Attributable to

Owners of Parent 2,355 157 - 2,198 -93.3%

◆ Connector business: slow growth of micro-coax connectors, etc. due to deceleration of growth of PCs and smartphones,

and the effect of sharp yen rise from 1Q through 2Q decreased sales, although there were some signs of recovery trend in 4Q.

◆ Automotive business: in addition to continued steady market acceptance of automobiles mainly in North America and

China, development of automotive electronics contributed to a steady growth in sensor sales, and more adoption by different types of vehicles contributed to a steady growth in automobile connectors.

◆ Semiconductor equipment business: overall, continued lower demands for capital expenditures by semiconductor

manufacturers and back-end process contractors impacted sales, although demands for manufacturing facilities of automotive semiconductors remained relatively firm.

◆ Decrease in gross profit due to sales decline and the effect of foreign exchange fluctuation caused by the sharp yen rise in

1H significantly impacted all income items, although it has recovered from 3Q and 4Q.

✔ Sales were sluggish due to slow growth of connectors.

✔ All income items were down.


Million yen FY2015

(Jan.-Dec.) Ratio

FY2016

(Jan.-Dec.) Ratio

Change

(%)

Sales 48,749 100.0% 45,834 100.0% - 6.0%

Cost of Sales 35,116 72.0% 33,717 73.6%

Gross Profit 13,633 28.0% 12,116 26.4% - 11.1%

Selling Administratio

n Exps 11,909 24.4% 11,715 25.6%

Operating Income 1,723 3.5% 401 0.9% -76.7%

Non-operating Income

712 1.5% 602 1.3%

Non-operating Expense

90 0.2% 202 0.4%

Ordinary Income 2,344 4.8% 800 1.7% -65.9%

Extraordinary Income - - - -

Extraordinary Expense - - 84 0.2%

Net Income before Tax 2,344 4.8% 716 1.6% -69.5%

Taxation -18 0.0% 550 1.2%


Non-controlling Interests

7 0.0% 8 0.0%


Owners of Parent 2,355 4.8% 157 0.3% -93.3%

No. of

Employees 5,923 5,932

✔ Higher automotive division sales was unable to offset

decline in connector division sales affected by the

foreign exchange fluctuation; gross profit was down

despite recovery in 4Q.

✔ Growth in fixed costs such as depreciation expenses,

etc. also affected the performance.

✔ Overall gross margin ratio decreased by 1.6 points to

26.4% YoY.

■ FY2016 Actual Consolidated Statements of Income

✔ SG&A expenses decreased YoY but operating income

was lower due to the significant decrease in gross profit.

✔ The yen weakened rapidly in 4Q, but this was unable to

fully offset the downturns in 1Q and 2Q.

✔ Net income sharply decreased to 157 million yen YoY.

Decrease in sales of connectors

largely affected performance

FY2015 (Jan.-Dep.)

Actual

FY2016 (Jan.-Dec.)

Plan

FY2016 (Jan.-Dec.)

Actual

FY2017 (Jan.-Dec.)

Plan

5,119 5,200 5,477 5,500

Gross Margin Ratio: 26.4％

Operating Income: 401 million yen

＜ Depreciation ＞（ Million yen ）


2,201 324 668 1,156 1,623

17,370

4,714

8,962

13,464

17,974

29,178

5,897

12,453

19,212

26,237

1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q

コネクタ及びエレクトロニクス機構部品

自動車電装・関連部品

半導体設備・その他

■ FY2016 Actual Sales per Segment

45,834

（Million yen）

10,935

48,749

22,083

33,832

✔ Connector & Electronics: sales increase in

2H was unable to fully offset the downturn in 1H.

✔ Automotive Components: record-high sales

thanks to the continued favorable orders for

sensors and connectors.

✔ Semiconductor Equipment & Others: orders

were below the plan mainly because customers pushed back capital expenditure plans, etc.

Sales downed YoY

due to sluggish orders

for connectors.

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.)

Change

(%)

Connectors & Electronics

29,178 26,237 -10.1%

Automotive Components

17,370 17,974 +3.5%

Semicon Equip.

& others

2,201 1,623 -26.3%

Total 48,749 45,834 -6.0%

+12,002

+11,148

+11,749

Connectors and Electronics Components


Semicon Equip. and others

FY2015 FY2016 FY2016 FY2016 FY2016


■ FY2016 Actual Gross Profit

31.5%

26.9% 26.4%

29.4%

31.1%

24.5% 24.3% 24.1% 24.3% 24.3%

28.5%

25.5% 25.3%

26.9% 27.9%

FY2015 4Q FY2016 1Q FY2016 2Q FY2016 3Q FY2016 4Q

コネクタ及びエレクトロニクス機構部品自動車電装・関連部品全社

Million yen

FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.) Change

Amount Ratio Amount Ratio

Connectors & Electronics

8,970 30.7% 7,497 28.6% -1,473


4,272 24.6% 4,358 24.2% +86

Semicon Equip. & others

391 17.8% 261 16.1% -130

Total 13,633 28.0% 12,116 26.4% -1,517

Gross margin ratio has recovered as the factory

utilization rate increased because of increase in

connector sales due to a recovery in orders in

3Q and 4Q.

Gross Margin Ratio / Two Main Businesses and Company Total



Total



Sales steadily increased due to strong

automobile sales, but the gross margin ratio

almost remained flat due to higher fixed costs.


1,363 314

716 1,029 1,313

4,316

1,007 1,998

2,942 3,940

2,587

620

1,466

2,562

4,019

9,059

1,590

3,359

5,173

6,913

11,853

2,366

4,914

7,506

10,052

1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q

Others HDD Components FPC/FFC etc

Micro-Coax Connectors RF Coax Connectors

■ FY2016 Actual Connectors & Electronics Components

Quarterly sales increased but total sales downed YoY due to downturn in 1H.

19,212

26,237

12,453

5,897

29,178

(Million yen） ✔ Sales of RF Coax Connectors and Micro-

Coax Connectors were weak due to sluggish sales of smartphones and PCs.

✔ Sales of the newly developed full shield

board to board connector grew as its mass production has been started from 2H. Adoption of FPC for liquid crystal panels, etc. grew.

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.)

Change (%)

RF Coax

Connectors 11,853 10,052 -15.2%

Micro-Coax

Connectors 9,059 6,913 -23.7%

FPC/FFC

Board to Board 2,587 4,019 +55.4%

HDD

Components 4,316 3,940 -8.7%

Others 1,363 1,313 -3.7%

Total 29,178 26,237 -10.1%

+7,025

+6,556

+6,759

【Sales by products】

FY2015 FY2016 FY2016 FY2016 FY2016


1,156 221

524 837 1,121

4,316

1,007 1,998

2,942 3,940

2,858

728

1,735

2,745

3,729

8,995

1,575

3,282

5,182

7,395

11,853

2,366

4,914

7,506

10,052

1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q

Others HDD Components DA etc PC W/less Network

29,178 39%

28%

14%

15%

4%

40%

31%

10%

15%

4%

■ FY2016 Actual Connectors & Electronics Components

【 Component Ratio 】

FY2015

【 Sales by Applications 】

FY2016 19,212

26,237

12,453

5,897

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.)

Change (%)

W/less Network 11,853 10,052 -15.2%

PC 8,995 7,395 -17.8%

DA, Smart Phone 2,858 3,729 +30.5%

HDD

Components 4,316 3,940 -8.7%

Others 1,156 1,121 -3.0%

Total 29,178 26,237 -10.1%

+7,025

+6,759

+6,556

（Million yen）

FY2015 FY2016 FY2016 FY2016 FY2016

W/less

Network

PC

HDD

DA & Smartphone


2,205 606

1,161 1,591 1,994

3,293

820

1,715

2,833

3,905

11,872

3,288

6,086

9,040

12,075

1Q-4Q 1Q 1Q-2Q 1Q-3Q 1Q-4Q

Associated Components Electronics Automotive sensors

■ FY2016 Actual Automotive Components

【Sales by products】

Automotive components business steadily expanded

and achieved the record-high sales.

（Million yen）

17,370

13,464

17,974

4,714

8,962

✔ Orders for automotive sensors increased.

Some angle sensors, etc. are in full production to fill orders from customers.

✔ Own brand electronics parts for LED

headlights are adopted for more types of cars.

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.)

Change (%)

Automotive

sensors 11,872 12,075 +1.7%

Electronics parts 3,293 3,905 +18.6%

Associated

Components 2,205 1,994 -9.6％

Total 17,370 17,974 +3.5％

+4,510

+4,502

+4,248

Without price revisions for parts purchased from

components makers, sales would be equivalent

to 18.8 billion yen.

Record-high

FY2015 FY2015 FY2016 FY2016 FY2016


38%

36%

19%

7%

1,671 2,892 2,953 3,321 3,010

8,522 8,881 10,607 10,569

8,794

13,488 13,439

14,197 15,709

16,832

17,493 16,189

18,784 19,149

17,646

FY2012 FY2013 FY2014 FY2015 FY2016

Others Other Asian Countries Japan China

Million yen FY2015

(Jan.-Dec.)

FY2016

(Jan.-Dec.)

Change (%)

China 19,149 17,646 -7.8%

Japan 15,709 16,832 +7.1%

Other Asian Countries

10,569 8,794 -16.8%

Others 3,321 3,010 -9.4%

Total 48,749 45,834 -6.0%

【Component Ratio】

39%

32%

22%

7%

FY2015 FY2016

41,174 41,401

（Million yen） 46,541

48,749 45,834

China

Japan

Other Asian Countries

Others

■ FY2016 Actual Sales by Destination


■ FY2016 Actual Consolidated Balance Sheet

Million yen FY2015 FY2016 Change

Current Assets 32,163 31,094 - 1,069

Cash & Deposit 12,932 11,111 - 1,821

Notes & Accounts Receivable

10,815 10,665 - 150

Inventories 7,131 8,131 + 1,000

Fixed Assets 27,019 28,081 ＋ 1,062

Tangible Fixed Assets

25,884 26,710 + 826

Intangible Fixed Assets

419 378 - 41

Investments and Other Assets

716 992 ＋ 276

Total Assets 59,183 59,175 - 8

Million yen FY2015 FY2016 Change

Current Liabilities 9,498 9,112 - 386

Notes & Accounts Payable

2,409 2,378 - 31

Short-term Debt 3,330 3,250 - 80

Long-term Liabilities

3,869 5,381 ＋ 1,512

Long-term Debt 1,897 3,033 + 1,136

Total Liabilities 13,367 14,494 + 1,127

Shareholders’ Equity

44,293 44,199 - 94

Total Net Assets 45,815 44,681 - 1,134

Total Liabilities & Net Assets

59,183 59,175 - 8

Our interest-bearing debt & bonds increased 1,056 million yen versus FY2016 as planned.

Equity Ratio: 77.3% (FY2015) ⇒ 75.3%

Turnover

Period

(Unit：month)

FY2015 FY2016 Change

Accounts

Receivable 2.66 2.79 +0.13

Inventories 2.44 2.89 +0.45

Acquisition of fixed assets ： 6,914 million yen

【 Assets 】 Favorable turnover periods of accounts receivable

and inventories have been continuously maintained.

Extremely healthy condition with over 70% equity ratio has been maintained!

【 Total Liabilities & Net Assets 】


Million yen FY2015

（Jan.-Dec.） FY2016

（Jan.-Dec.）

Operating CF 6,448 4,535

Investment CF - 7,028 -6,400

Free CF - 580 -1,865

Financial CF - 549 497

Change in Cash &

equivalents -1,318 -1,759

Beginning balance on

cash & equivalents 14,042 12,724

Ending balance of

cash & equivalents 12,724 10,964

Increase in interest-bearing debt was to provide funds

for long-term capital expenditure plans

million yen FY2016

（Jan.-Dec.） Change

Cash equivalent 11,111 -1,821

Borrowed money,

bond 6,283 +1,056

Equity ratio 75.3% -2.0%

Financial Situation: remains sound

13,395

15,440

12,932

11,111

5,512 5,252 5,227 6,283

76.1% 76.4%

77.3%

75.3%

60.0%

62.0%

64.0%

66.0%

68.0%

70.0%

72.0%

74.0%

76.0%

78.0%

0

5,000

10,000

15,000

20,000

25,000

FY2013 FY2014 FY2015 FY2016

Cash equivalent Borrowed money, bondEquity ratio

¥¥ ¥¥

■FY2016 Actual Consolidated Statements of Cash Flows & Financial Situation

【 Cash Flow】

① Operating Cash Flow： 4,535 million yen

② Investment Cash Flow： -6,400 million yen

③ Financial Cash Flow： 497 million yen

⇒ Free cash flow： -1,865 million yen

【 Financial Situation 】

(million yen)


■ FY2017 Plan Brief Overview of Consolidated Business Budget for FY2017

（計画レート112円/＄）

Million yen

FY2016 Actual FY2017 Plan

Full-year Ratio Full-year Ratio YoY

Sales 45,834 100.0% 50,000 100.0% +4,166

Connectors & Electronics Components

26,237 57.2% 28,800 57.6% +2,563

Automotive Components 17,974 39.2% 18,900 37.8% +926

Semiconductor Mfg equipment & Others

1,623 3.5% 2,300 4.6% +677

Gross Profit 12,116 26.4% 14,293 28.6% +2,177

Overhead Expenses 11,715 25.6% 12,293 24.6% +578

Operating Income 401 0.9% 2,000 4.0% +1,599

Ordinary Income 800 1.7% 2,200 4.4% +1,400

Net Income Attributable to Owners of Parent

157 0.3% 1,500 3.0% +1,343

Dividends per Share 15 15


Business Strategies for FY2017

■ FY2017 Plan Business Strategies

① Connectors & Electronics

Pursue high-speed transmission technologies to

create highly value-added business.

② Automotive Electronics & Associated Components

Focus resources on this sector to expand

automotive business.

③ New Business

Catch new business opportunities and create more

“DANTOTSU” (Outstanding) products.


✔ 1.7 times YoY. Increase the use of connectors that prevent high

frequency noises in PCs and mobile phones.

・ Used in new smartphone models made in Korea

and China. ・ Target new applications involving IoT.

・ Expand sales of full shield connectors for PCs.

・ Target new applications involving robots,

medical equipment and other products.

1,313 1,300

3,940 4,000

6,913 6,500

10,052 10,000

4,019 7,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

16/12期 17/12期

FY2017 Full-year plan

・ Start using a new business model.

Establish a company “IGM TECH”.

1,313

NOVASTACK®35-HDP

Micro-Coax Connectors

■ FY2017 Plan Connectors & Electronics Components

28,800

26,033

FY2016 Actual

4,019

6,913

10,052

3,940

26,237 Board to Board Connectors

High-frequency interference prevention connectors

CABLINE®-CAⅡ

✔ 新規ビジネス本格供給開始

エストルク/産業用ロボットに採用

Pursue high-speed transmission technologies to create highly value-added

business.

RF Coax Connectors

Micro-Coax Connectors

FPC/FFC

Board to Board etc.

HDD Components

(Million yen)


1,156 1,363 1,313 1,300

4,094 4,316 3,940 4,000

2,025 2,587 4,019

7,000

8,523 9,059 6,913

6,500

12,917 11,853

10,052

10,000

FY2014 FY2015 FY2016 FY2017

Others ＨＤＤ Components

FPC/FFC etc Micro-Coax Connectors

RF Coax Connectors

（Million yen）

Million yen FY2016

(Jan.-Dec.) FY2017

(Jan.-Dec.) Change

(%)

RF Coax

Connectors 10,052 10,000 -0.5%

Micro-Coax Connectors 6,913 6,500 -6.0%

FPC/FFC

Board to Board 4,019 7,000 +74.2%

HDD

Components 3,940 4,000 +1.5%

Other 1,313 1,300 -1.0%

Total 26,237 28,800 +9.8%

26,237

28,715 29,178 28,800

【Points for FY2017】

✔ FPC and board-to-board connector sales

significantly grew.

1.7 times YoY.

✔ Create highly value-added business.

Initiatives for entering new markets and business sectors.


印刷のみ

【 Sales by Products 】


39%

28%

14%

15%

4%

1,101 1,156 1,121 1,300

4,094 4,316 3,940 4,000

2,150 2,858 3,729 4,800

8,435 8,995 7,395

8,700

12,935 11,853

10,052

10,000

FY2014 FY2015 FY2016 FY2017

Other HDD Components

Digital Appliance, Smart Phone PC


Million yen FY2016

(Jan.-Dec.)

FY2017

(Jan.-Dec.)

Change

(%)

W/less Network 10,052 10,000 -0.5%

PC 7,395 8,700 ＋17.6%

DA, Smart Phone 3,729 4,800 +28.7%

HDD

Components 3,940 4,000 +1.5%

Others 1,121 1,300 +16.0%

Total 26,237 28,800 +9.8%

35%

30%

17%

14%

4%

28,800 28,715 29,178

26,237

HDD （Million yen）

【 Sales by Applications 】【 Component Ratio 】

FY2016 FY2017

W/less

Network

PC

DA &Smartphone


✔ Orders were received for all

next-model products!

✔ Target 30% YoY increase!

Urgent need to boost production capacity!

1,994 1,600

3,905 5,200

12,075 12,100

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

16/12期 17/12期

■ FY2017 Plan Automotive Components

(Million yen）

Increase sales of our own brand connectors

18,900 17,974

12,075

1,994

3,905

4,019

4,019

Focus resources on this sector for more growth of automotive business.

Existing products are being produced

at full capacity.

・Focus resources → Organizational restructuring

・Increase ability to produce equipment

→ Established the Shanghai Technical Center

・Boost production capacity

→ Planning to enlarge factories in Japan and other countries

FY2017 Full-year

plan FY2016 Actual

【SMT Connector】

【Angle Sensor】【Pressure Sensor】

Sensor

Electronics


2,318 2,205 1,994 1,600

2,766 3,293 3,905 5,200

10,790 11,872 12,075

12,100

FY2014 FY2015 FY2016 FY2017

Associated Components Other electronics Sensors

■ FY2017 Plan Automotive Components

Million yen FY2016

(Jan.-Dec.) FY2017

(Jan.-Dec.) Change

(%)

Automotive

Sensors 12,075 12,100 +0.2%

Other Electronics 3,905 5,200 +33.2%

Associated

Components 1,994 1,600 -19.8%

Total 17,974 18,900 +5.2%

【Points for FY2017】

✔ Target record-high sales.

Goal is sales of 18.9 billion yen, a new record-high

for five consecutive years.

15,874

18,900

17,370 17,974

Estimated sales excluding effect of price

revisions for purchased parts.

(18,800) (20,000)

印刷のみ

✔ Expand the automotive components business.

Initiatives for increasing production capacity and

developing new business.

【Sales by Products】

（Million yen）


✔ Expand sales by leveraging strengths as the

market leader. Automatic taping machines for specialty packages.

✔ More progress with ultra-thin molding

technology. Increase sales of encapsulation machinery for thin

packages.

2,201

1,623

2,300

FY2015 FY2016 FY2017

✔ Reinforce sales activities in Asia. Conduct sales activities closely linked with each region and

build stronger ties with agents.

■ FY 2017 Plan Semiconductor Mfg. Equipment & Others

(Million yen)

【GP-PRO SP170】

【TS-PRO】

Promote sales activities using technology proposals that match customers’ requirements!

No. 1 Market share Auto Taping System for MAP-QFN

Semiconductor Molding Machine

For large densely molded frame

Semiconductor Molding

Machine

Other Related

Equipment


Full-scale production has started! “Electrostatic Capacitance Torque Sensor” That Realizes Human-Robot Coexistence.

Used in robots made by YASKAWA Electric Corporation.

Industrial robots and people can work in the

same location without safety fences.

ESTORQ will be installed in “Tree”, an assist robot for walking rehabilitation made by “Reif Co., Ltd.”

To be installed in rehabilitation robots.

【HC10】

■ FY 2017 Plan New Business Introduction ①

Service Medical・Nursing Care

R T

Robot Technology

Manufacture

Key Parts Application Field

*The world’s first ”Electrostatic Capacitance Method”

This sensor is used for robots’ joints to detect and control

force to rotate and twist things.

*Based on our survey


■ FY 2017 Plan New Business Introduction ②

with 3-Axis Acceleration Sensors Using Piezoelectric Thin Films

First MEMS Device - “Seismic Wave Detectors”

MEMS sensors

“Seismic wave detectors” equipped with 3-Axis Acceleration

MEMS Sensors


■ FY 2017 Plan New Business Introduction ③

Second MEMS Device – “The Mirror Device”

This MEMS mirror device reduces the size of the laser scanners that are needed for the

safe operation of self-driving vehicles. This device is also suitable for all other detection

units that use lasers (e.g., virtual keyboard input).

We are now working on using this device to create products for sale in the automobile,

information and communications, environmental, medical, and other industries.

【 Examples of how the MEMS mirror devices can be used 】 Virtual Keyboard Input Laser Scanner

*Image

The Industry’s Smallest Class MEMS Mirror (3.0 mm×4.6 mm) with Piezoelectric Thin Film


■ FY 2017 Plan New Business Introduction ④

Third MEMS Device – "High Acceleration Sensor" New MEMS sensor with piezoelectric thin film for automobile crash test!

We have developed a sensor that can detect high acceleration of up to 2,000G. They

are attached to dummies to assess damages during automobile crash tests. Samples

are currently being evaluated by prospective users.

The 2000G Acceleration Sensor

MEMS Sensor

*Image

Acceleration Sensors


■ 2017 Plan Capital Expenditures

Continue aggressive capital expenditures in new businesses, etc.

to build a powerful foundation for sustained growth.

1,819

-697 -1,234

1,246 2,355

157

1,500

3,689 5,042 5,208

4,944

5,119

5,477

5,500 4,568

6,490 6,382

5,017

8,826

6,910 7,500

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Hundred million yen

FY2013 Actual

FY2014 Actual

FY2015 Actual

FY2016 Actual

FY2017 Plan

Production M/C 60 43 62 56 60

Expansion of Plants - 4 10 2 5

New Businesses for MEMS, etc. - - 10 6 3

R & D 2 2 2 2 2

Others 1 1 4 3 5

Plan

< for 9 months >

(Million yen) Capital

Expenditures

Depreciation

Net Income


Reference


(Sales Ratio 57.2%) Connectors & Electronics Components

GP-PRO SP170 TS-PRO GP-PRO sf40

(Sales Ratio 39.2%) Automotive Electronics & Associated Components

■Reference Main Products

MHF® MINIFLEX175-ST CABLINE

®-CAⅡ NOVASTACK

®35-HDP

Note: sales ratios are based on

financial results for FY 2016.

RAMP

【RF Coax Connectors】【Micro-Coax Connectors】【Board to Board Connectors】【FPC/FFC Connectors】【HDD Components】

【Sensor】【 Connector for Automobile】【Electronics】【Associated Components】

Angle Sensor Pressure Sensor SMT Connector PCB Connector Control Unit Smart Entry Key Ignition Coil

（Sales Ratio 3.5%) Semiconductor Mfg. Equipment and Others

【Semiconductor Molding Machine】【Other Related Equipment】【Peripheral Device for Injection Molding】

Gate Cut Robot


3,151 1,634 2,057 1,776 1,952 2,201 1,623 2,300

12,523

8,911

13,559 14,920 15,874 17,370 17,974

18,900

31,133

21,175

25,558 24,705

28,715 29,178

26,237 28,800 6,716

3,247

1,042 1,328

3,098 2,344

800

2,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

FY3/11 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Semicon Equip. and others Automotive Components

Connectors and Electronics components Ordinary Income

50,000 46,807

31,720

41,174 41,401

46,541 48,749

45,834

■Reference Transition of Business Performance

Plan

（Million yen）

＜for 9 months＞


■ Reference Business Model ① -No overlap in business process-

● 2004 business integration with I-PEX

● 2006 listed on the JASDAQ securities exchange

● 2011 listed on the first section of the Tokyo Stock Exchange

● 2012 started new connector business organization

● 2012 set up our own automotive connector brand “I-PEX AUTOMOTIVE”

● 2014 started sensor business

Detect and control motions of human-like robots and

auto-assembling machines, etc.

Corporate history

● 1963 started as a precision tooling company

● 1976 started precision plastic molding

● 1979 started overseas operation

● 1980 started semicon mfg. equipment business

● 1982 started integrated production strategy

● 1994 started business with I-PEX

● 2000 started automotive business

Provides mold tooling &

assembly system technology

OEM Subcontractor

Fabless

Design & Sales

OEM

R&D plus Production

No overlap in business process

Fabless connector maker

＜2004 ～Business integration＞

New connector maker with a strong mold engineering origin.


■ Reference Business Model ② -Integrated production system-

(In-house tooling and machinery） (Production of connectors）

(1)Fast R&D

capability

(2)Production system

design + tooling ability (3)Integrated Production Sites

(Design & development

of connectors）

R&D to create the world’s first products

Fast product design

Stamping Mold

Injection Mold

Machines for Injection, Assy., Inspection and Packing

Molding Raw material

Injection

Molding M/C

Mold for plastic parts

Stamping ＆ Plating

Stamping Mold

Stamping Plant Plating Plant

Stamped metal terminals

Plated metal terminals

Molding Plant Plastic Parts Assembly

FAM for Assy.

Completion

Integrated in one company


■ Reference Business Model ③ -Source of competitive edge: precision mold-

1.0mm

Super precise mold

Comparison with razor edge

Enlarged

0.25 mm thick

0.25 mm thick

0.3 mm or less fine process

1/1,000 mm precision

Connector mold

Around 200 parts assembled

１．DAI-ICHI SEIKO: ONE and ONLY connector company born as a Mold Origin company.

(1) Final product R&D capability

＋ (2) Production system design and Tooling capability ＋ (3) Integrated production sites in Multiple countries

【 Differentiates Dai-ichi Seiko from its competitors 】

● Speedy product supply on the market with our internally-developed products and production facilities.

２．Production Technology company born as a Mold Origin company.

(1) Production system design and Tooling capability ＋ (2) Integrated production sites in multiple countries ＝ Spreads widely across other industries

【 Providing various precision parts and devices targeting customers’ needs 】

● Produce precise molds for various industries by focusing our resources on high value-added products.

Diversified products of parts for automobile and hard disk drive, and equipments for semiconductors.


■ Reference Dai-ichi Seiko and its Group Companies

Production 19

Sales 12

IGM

マレーシア追加

YAMANASHI PLANT

FUKUOKA OFFICE Ogori Plant DJ Precision

FUKUOKA OFFICE Onojo Plant

FUKUOKA OFFICE Tachiarai Plant

TOKYO

SHINAGAWA OFFICE

OSAKA BRANCH

HEAD OFFICE KYOTO PLANT

SHIZUOKA OFFICE

Matsue Dai-ichi Seiko

TOKYO MACHIDA OFFICE

U.S.A. Alabama

Plant

U.S.A. Texas

U.S.A. San Jose

U.S.A. Detroit

Philippines Laguna Plant

China Shanghai Plant 2

China Shanghai Plant １

FRANCE

China Dong Guan Plant

Thai Plant

Vietnam Plant

KOREA

TAIWAN

SHANGHAI

SINGAPORE

HONG KONG

Singapore Yishun Plant

Indonesia Bintan Plant

Singapore Woodlands Plant

Malaysia Plant

http://www.i-pex.com/ja/


Corporate Planning

Phone： + 81.942.75.5264

E-mail： [email protected]

Web： http://www.daiichi-seiko.co.jp

Contact

--- NOTE ---

This is a document for corporate

presentation purposes only and not for

solicitation of investment.

Terms and conditions may change without

prior notice.

mailto:[email protected]



http://www.daiichi-seiko.co.jp/



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