consolidated financial result digest fy11/12 second … financial result digest fy11/12 second...

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)


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


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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3

INDEX

1. Summary of FY 11/12 Second Quarter


2. Forecasts for FY11/12

3. Progress of Medium-term business plan


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4

1. Summary of FY 11/12 Second Quarter



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5

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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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



FY11/12 1H Actuals


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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



Changes in product mix


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8

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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9

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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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



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12

Result by segment for FY11/12 1H

Sales

Operating Income



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13

2. Forecasts for FY11/12


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14

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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15

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


ZXCV Trend of consolidated sales from PWB+ and FPD

Sales

PWB+ expected slow.

FPD expected to increase due

to price increase of silver.


Forecast 16


ZXCV Trend of consolidated performance

Forecast


17


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18

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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19

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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20

3. Progress of Medium-term business plan


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21

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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