Copyright © 2011 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.
ZXCV
Consolidated Financial Result Digest
FY11/12 Second Quarter
ZXCV
November 15,2011
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- September 30, 2011)
Copyright © 2011 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.
ZXCV Classification
1
SR(Solder Resist)
White SR For Touch Panels
Silver Paste, etc.
PWB Materials
For Rigid PWBs
For PKG
PWBs
For Flexible
PWBs
For B/U
PWBs
FPD Materials
For PDPs
New Products
Copyright © 2011 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.
ZXCV Terminology
2
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
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ZXCV
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INDEX
1. Summary of FY 11/12 Second Quarter
(April 1- September 30, 2011)
2. Forecasts for FY11/12
3. Progress of Medium-term business plan
Copyright © 2011 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.
ZXCV
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1. Summary of FY 11/12 Second Quarter
(April 1- September 30, 2011)
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FY10/11
1H
FY11/12
1H Change
Change in
%
5/11/2011
Forecast
Sales 20,716 21,115 399 1.9% 21,500
Operating
Income 3,522 2,416 (1,106) (31.4%) 2,500
Ordinary
Income 3,422 2,274 (1,148) (33.5%) 2,500
Net Income 2,232 1,578 (654) (29.3%) 1,700
<Ave. Exchange Rate>
JPY/USD 88.9 79.7 (9.2) (10.3%) 80.0
FY11/12 1H Results
(JPY millions)
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ZXCV
2.0
2.2
1.6
3.0
20.7
21.1FY11/12 1H Actuals
Fluctuation in exchange rate
Decrease in sales volume
Change in product mix of PWB Materials
Increase in selling prices of FPD Materials
FY10/11 1H Actuals
6
FY11/12 1H Factors for sales increase (vs. FY10/11 1H)
Sales ( JPY billions )
Change in product mix of PWB Materials
Increase in selling prices of FPD Materials
FY10/11 1H Actuals
Decrease in sales volume
Fluctuation in exchange rate
FY11/12 1H Actuals
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ZXCV
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FY11/12 1H Factors for profit decline (vs. FY10/11 1H)
3.5
0.5
0.8
0.8
2.4FY11/12 1H
Actuals
Fluctuation inexchange rate
Decrease in salesvolume
Changes inproduct mix
FY10/11 1HActuals
Operating Income ( JPY billions )
FY10/11 1H Actuals
FY11/12 1H Actuals
Decrease in sales volume
Fluctuation in exchange rate
Changes in product mix
Copyright © 2011 TAIYO HOLDINGS CO.,LTD. All Rights Reserved.
ZXCV
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15.1 14.5
9.6 9.5
4.1 4.8
13.9 11.8
0
5
10
15
20
25
30
35
40
45
3/31/11 9/30/11
Fixed Assets Other Current Assets
Inventories Cash
FY11/12 1H Summary of Balance Sheet
34.1 32.4
8.68.2
0
5
10
15
20
25
30
35
40
45
3/31/11 9/30/11
Equity Liabilities
Assets Liabilities and Equity
Inventories grew as a result of the impact
of the 3/11 earthquake in Japan.
PDP inventory value increased due to the
soaring price of silver.
Fixed assets depreciated.
Investments in subsidiaries eroded due
to the stronger yen.
(Decrease in foreign currency
translation adjustments)
( JPY billions ) ( JPY billions )
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FY11/12 1H Summary of Cash Flows
Operating CF Investing CF
Decrease due to
increasing in inventories.
Decrease in Operating
income.
Financing CF
Increase due to withdrawal
of time deposits in FY10/11.
FY11/12 maintains the
same level of investment
as in the FY10/11.
Decrease due to increase
in dividend.
(commemorative
dividend)
( JPY billions ) ( JPY billions ) ( JPY billions )
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ZXCV
10
Sales of PWB Materials
Sales volume decreased due to
the global demand decreased
and production decreased partly
due to rolling power shortage in
Japan.
Ave. selling price fell down due
to the stronger yen.
Demand of smartphones and
tablet PCs is robust.
14.0 15.8
Sales
( JPY billions )
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11
Sales of FPD Materials
Sales volume increased slightly year-
on-year.
Sales was steady in China.
Selling price and sales amount
increased in 2H due to the soaring
price of silver.
Sales
( JPY billions )
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Result by segment for FY11/12 1H
Sales
Operating Income
( JPY billions )
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2. Forecasts for FY11/12
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Forecasts for FY11/12
FY10/11
Result
Forecast for FY11/12
Original
Forecast(5/11)
Revised
Forecast Change
Change in
%
Sales 40,366 44,500 42,500 (2,000) (4.5%)
PWB+ 30,909 33,000 29,500 (3,500) (10.6%)
FPD 9,455 11,500 13,000 1,500 13.0%
Operating
Income 5,380 5,600 4,800 (800) (14.3%)
Ordinary
Income 5,316 5,600 4,600 (1,000) (17.9%)
Net Income 3,402 3,800 3,200 (600) (15.8%)
<Foreign Exchange Rate>
JPY/USD 85.8 80.0 78.0 (2.0) (2.5%)
(JPY millions )
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Factors of revision to FY11/12 forecasts
Considered partly uncertain factors such as the impact
of the floods in Thailand on supply chain of electronics
device production.
A decline in worldwide demand expected.
Review of the foreign exchange rate.(assumed rate in
2H is 1USD=76JPY)
Selling prices for FPD Materials expected to increase.
Profit ratio expected to improve due to the product mix.
Sales volume expected to decrease due to the above
factors.
Macroeconomics factors
FPD
PWB
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ZXCV Trend of consolidated sales from PWB+ and FPD
Sales
PWB+ expected slow.
FPD expected to increase due
to price increase of silver.
( JPY billions )
Forecast 16
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ZXCV Trend of consolidated performance
Forecast
( JPY billions )
17
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Change to the market price of silver
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
Change to the market price of silver which is the main materials of FPD Materials
(JPY/kg)
2010 2011
Showing the stable trend recently.
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0
500
1,000
1,500
2,000
2,500
3,000
FY08/09 FY09/10 FY10/11 FY11/12
Investment Depreciation
(Projection)
Projected 1.7 billion
investment for Taiyo
Zhongshan included.
Investment & Depreciation expense
(JPY millions)
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3. Progress of Medium-term business plan
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Strategy for Chinese market
• Grabbed market share from the competitors by the low-priced products.
• The Office of China Strategy:Identifying a market for new products. Established a liaison office in Shenzhen in Nov. 2011.
• Construction of Taiyo Zhongshan expected to start next year, though land development was a bit late.
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 1H)
• Will promote to export raw materials to Japan, taking advantage of the stronger yen.
Progress of Medium-term business plan
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Strategy for new products development
• Sales of new products in 1H was JPY 1.6 billion. (Sales target is JPY 3 billion for FY11/12.)
• Sales of white SR was about JPY 0.4 billion.
• Participation in Japan Advanced Printed Electronics Technology Research Association.
Strategy for Global talent management
• Recruiting qualified talent locally.
• Will promote highly qualified local talent to Board members for Taiyo Holdings.
• Will promote local talent to senior management level.
• Job-rotation between the subsidiaries.
Progress of Medium-term business plan
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