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201205 201205 Document Transcript

  • FY2011 Results (from April 1, 2011 to March 31, 2012) May 14, 2012 This is a translation of materials used for the analyst meeting held in Tokyo, Japan on May 14,2012This document contains forward-looking statements that are based on managementsexpectations, estimates, projection and assumptions that were available and reasonableat the time of release. Actual future results and trends may differ materially from thosein the forecasts due to a variety of factors. Today’s Presentation Summary of Financial Results for FY2011 ( Ended March 31, 2012) Forecast for FY2012 ( Ended March 31, 2013) Segment Information Medium-term Business Plan R&D / Capital Expenditure Financial Condition 1
  • FY2011 FY2011 Consolidated Financial Results Presentation (¥Bil.) FY2010 FY2011 Growth ratio N e t S a l e s 239.4 245.0 247.8 +4% 24.0 Operating Income 32.1 26.1 -19% 26.0 Ordinary Income 32.7 28.7 -12% -40.0 Net Income 24.4 -35.6 - Revised on 12/2011 Sales increased but Op. Income decreased. Net Income into the red for the first time.■ Demand for Automotive related products remained strong, but influence of the fire incident of NAS caused a bigger deficit in Power Business. Electronics Business remained flat.■ ¥61.1Bil. of extraordinary loss as “Loss on NAS Battery safety measure” was recorded. Impairment losses on fixed assets associated with reorganization of Insulator Business structure, correction notice of transfer-pricing taxation and the loss in NAS as noted above led to heavy deficit. FY2011 Change Analysis for FY2011 Presentation Sales Op. Income (¥Bil.) Influence of Others Earthquake SPE related Power related +4.0 FX Rate Automotive +1.1 Automotive Others Influence of related -8.5 related Earthquake +6.6 247.8 32.1 +0.5 FX Rate -8.2239.4 +3.2 Power related -4.5 SPE related +13.4 -2.3 26.1 -1.8 -1.23/’11 3/’12 3/’11 3/’12 3/’11 3/’12 FX Rate ¥ 88 /US$ ¥ 80 /US$ ¥116 /ER ¥111 /ER 2
  • FY2011 Forecasts for FY2012 Presentation (¥Bil.) FY2011 FY2012 Growth ratio N e t S a l e s 247.8 270.0 +9% Operating Income 26.1 28.0 +7% Ordinary Income 28.7 30.0 +5% Net Income -35.6 24.0 - Sales & Op. Income increase. Net Income gets back into the black.■ Power Insulators : Overseas sales increase, which put Insulator Business into black. NAS Battery : Implementation of safety measures and resuming production from second half of 2012.■ Ceramics : Sales increase due to demand for automotive related products remains strong, but segment op.income decrease due to more amortization cost, lower pricing and strong Yen.■ Electronics : Sales & income of semiconductor production equipment increase due to steady market and acquisition of other company. Electronic components business has a hard time due to drastic decrease in demand. FY2011 Change Analysis for FY2012 Presentation Sales Op. Income SPE related FX Rate (¥Bil.) Bil.) Power related Others 270.0 +4.4 -4.1 -0.2 Automotive related +9.1 Automotive 247.8 SPE related related Power related +13.0 +1.5 FX Rate Others 28.0 26.1 -6.0 -1.0 -0.7 +8.23/’12 3/’13 3/’12 3/’13 3/’12 3/’13 FX Rate ¥ 80 /US$ ¥ 80 /US$ ¥111 /ER ¥100 /ER 3
  • FY2011 Power Business Presentation (¥Bil.) Bil.) <After Consolidation Elimination> 140 ■ Business environment Sales of Insulators Sales of NAS Insulators : ( ) Op. Income 9.1% Op. Incom e Ratio Domestic: Power companies keep low Capex 120 due to downturn after the earthquake. Overseas: Facing tighter competition in China 100 -6.2% NAS Battery : 87.3 - 15.0% ( 8.0 ) Suspended production in response to the fire -21.8% incident. 80 19.7 65.0 ( -4.0 ) ■ Tasks 53.8 55.8 60 ( -12.2 ) 8.0 Insulators : ( -8.1 ) 0.9 Optimizing four factories in Japan and China. Promoting cost reduction by implementing 40 structural production innovation. 67.6 54.9 57.0 Concentrating on sales of higher-voltage products 58.6 20 in China where competition is increasing. NAS Battery : Implementation of safety measures to restore 0 market confidence. -4.8 Meeting demand overseas.△ 20 3/10 3/11 3/12 3/13Est. FY2011 Safety measure schedule for NAS batteries Presentation 2011 2012 2013 Sep. Dec. Mar. Jun. Sep. Dec. Mar. Fire incident In-house Investigation commission Investigation Proposal for measure Investigation Fire authority investigation Measure review Suspension of operation Resumption of operation Activities in Repeatability test Remedial action for下期 生産再開 of Resumption factory Intense watch on batteries in battery inventory production operation Remedial action for batteries Preparation for remedial action of customers etc. 4
  • FY2011 Ceramics Business Presentation (¥Bil.) Bil.) <After Consolidation Elimination>220 Sales of SiC-DPF Sales of Cd-DPF& Large-size Honeycomb ■ Business environment Sales of Honeycomb Sales of Sensor Automotive related :200 Sales of Industrial process Op. Income Ratio ( ) Op. Income Car sales increase in emerging markets and remains strong in Europe, U.S. and Japan.180 Truck sales recovery in U.S. and increase in emerging 25.1% 24.9% 18.6% markets.160 13.0% Emission regulation for off-road vehicles tightens. 145.0 Strong Yen. ( 27.0 ) 133.8 Industrial process :140 123.8 ( 33.3 ) Demand for maintenance for pharmaceutical and Low-level ( 31.1 ) 26.5 radioactive waste treatment system remains strong.120 24.2 Concerns about unpredictable domestic Capex of customer 101.3 22.0 10.0 ( 13.2 ) due to power shortage and strong yen. 8.2100 5.3 ■ Tasks 26.4 80 49.0 Automotive related : 46.3 2.4 48.0 Meeting demand for off-road vehicles in emerging markets. 60 Optimizing global manufacturing system to meet 38.8 expansion of demand. 40 24.8 34.5 Reducing the cost while increasing production capacity 19.0 8.8 Increasing production and profitability of NOx-sensor 20 Industrial process : 24.9 29.5 30.2 25.0 Meeting demand in pharmaceutical and secondary battery 0 market. 3/10 3/11 3/12 3/13Est. FY2011 Electronics Business Presentation (¥Bil.) Bil.) <After Consolidation Elimination>100 Sales of Metal related products Sales of SPE related products ■ Business environment Sales of Electronics related products Sales of Soshin Electrics Co. Semiconductor production equipment related : Op. Income Ratio ( ) Op. Income SPE market remains strong. 14.6% 8.4% 8.3% Miniaturization of semiconductors. 80 4.9% Electronics components : Demand for electronics components decrease due to 61.7 expanded share of competition. ( 9.0 ) 58.2 60.0 Decline in profit of existing products. 60 ( 4.9 ) ( 5.0 ) Beryllium Copper : 11.7 46.9 11.2 11.8 Market in China becomes more important. ( 2.3 ) ■ Tasks 14.7 9.0 9.7 12.1 Semiconductor production equipment related : 40 Expanding the business by using thermal 13.9 spray technology. 21.0 16.7 16.5 Electronics components : Generating new products by utilizing cooperation 20 6.9 with R&D section , other companies , and M&A to make up for decrease in profit. 16.4 18.6 18.4 18.2 Beryllium Copper : Establishing sales network in China. 0 3/10 3/11 3/12 3/13Est. Searching for new demand by using new applications. 5
  • FY2011 Medium-term business plan Medium- Presentation Fresh start in sustainable growth in FY2012Sales 19.0 <After Consolidation Elimination>(¥Bil.) 16.2 12.0 13.4 9.1 11.0 10.0 10.5 10.4400 7.5 5.2 364.9 Op. Income Ratio 320.1 44.1 301.8300 283.8 45.3 273.2 266.1 270.0 49.4 251.3 77.5 247.8 52.5 235.5 239.4 55.6 73.3 59.6 60.0 Sales 59.9 54.1 58.2 46.9 61.7200 Casting 67.7 58.3 65.3 61.0 162.0 Engineering 130.7 126.4 101.3 145.0 Electronics 95.8 123.8 133.8100 67.0 76.3 83.7 Ceramics Power 67.8 75.1 81.3 82.9 87.3 64.5 62.6 61.5 53.8 55.8 65.0 0 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13Est. 3/14Est. 3/15Est. FX Rate (¥/US$) ¥125 ¥116 ¥108 ¥111 ¥116 ¥118 ¥104 ¥94 ¥88 ¥80 ¥80 ¥80 ¥80 FY2011 Business Composition (Sales & Op. Income) Presentation FY2011 FY2014 New products 1% New products Sales Electronics 22% Automotive Electronics Automotive related related 44% Power 40% Ind. 23% Power process bus. Ind. 10% Process Need to generate next core products to New products break away from high dependance on Op. Electronics automotive related products. Income Power ・Power:return into black Ind. Process Automotive related ・Electronics :improve income ratio 70% ・Ceramics :increase income while expanding capacity 6
  • FY2011 Business plan for sustainable growth Presentation Create new products for next core business Accelerate creation of new products with innovative technology Expand overseas business Optimize global manufacturing system Role of NGK group in Japan is development of internationally competitive technologies and products. Improve profit performance in Power Business NAS Battery safety measures and resumption of production Reorganize Insulator Business FY2011 Wafer projects Presentation Accelerate creation of new business from these projects *UHB : Ultra High Brightness Bonded Wafer GaN Wafer GaN Wafer PPLN Wafer for SAW Filter for UHB* LED for Power Device for Green Laser Has the function Makes it possible to High energy savings rate Green laser light which eliminates produce LEDs having generated using frequency drift due to high luminous wavelength conversion thermal fluctuation efficiency technologyDevice Temperature compensated UHB LED light bulb SAW filter High-voltage inverter Ultra-compact green laser module Smart Phone Projector for Home Head-up-displayFinal products business appliance for automobiles Tablet Mobile phones with Head Electric device embedded projector light vehicle 7
  • FY2011 R & D Input Presentation20.0 (¥Bil.) Bil.) Consolidated R&D Consolidated R&D / Sales Ratio 4.7% 4.8% 4.5% 4.6% 4.4%15.0 12.0 12.9 Corp 2.5 orate10.0 11.4 11.4 10.7 3.5 Elect- ronics 5.0 2.0 Power 4.0 Cera- mics 0.0 3/09 3/10 3/11 3/12 3/13Est. FY2011 Capital Expenditures Presentation 60 Ceramics Bus. Power Bus. (¥Bil.) Bil.) Electronics Bus. Corporate We changed the FY for subsidiaries overseas. Depreciation & Amortization FY :from Jan. to Dec. FY :from April to Mar. 50 26.2 45.0 2.0 40 4.0 22.0 18.9 19.0 18.9 3.0 30.4 30 28.8 1.8 3.6 25.3 2.2 2.8 20.9 2.4 5.6 2.2 2.8 20 3.7 36.0 1.5 11.2 10 19.4 10.6 21.0 5.5 9.5 5.1 5.3 0 3/09 3/10 3/11 3/12 1~3/’12 3/13Est. Capex overseas during the difference of FY 8
  • FY2011 Summary of Consolidated Cash Flow Presentation (¥Bil.) Bil.) 3/’11 3/’12 3/’13Est.O p e r a t i n g A c t i v i t i e s 36.7 13.9 9.0I n v e s t i n g A c t i v i t i e s -17.9 -45.4 -17.0F i n a n c i n g A c t i v i t i e s -5.1 56.6 -10.0Effect of exchange rate change -4.0 -2.9 -Net Change in Cash & Eq-. 9.6 22.1 -18.0Effect of changing the FY period (1~3 /’12 ) - - -4.0Cash & Eq-. at the End of Year 63.0 85.1 63.0 FY2011 Total Assets & ROE / EPS & Dividends Presentation 700 (¥Bil.) Bil.) 150 (¥) Total assets-Net assets-Interest-bearing liabilities Interest-bearing liabilities EPS Dividends Net assets 600 100 523.2 73.66 74.80 73.50 500.0 500 475.8 479.8 54.51 444.2 50 400 22 16 20 20 20 71.5 69.2 129.0 0 62.1 131.4 300 319.5 323.9 301.4 286.0 264.4 200 100 -109.06 0 3/09 3/10 3/11 3/12 3/13Est. 3/09 3/10 3/11 3/12 3/13Est. Payout ROE 8.1% 6.1% 8.0% -12.7% 9.0% Ratio 29.9% 29.4% 26.7% - 27.2% 9
  • FY2011 Sales by Product (annual) Presentation<After consolidation elimination> (¥Bil.) Bil.) March ’10 March ’11 March ’12 March ’13 Est. Insulators 67.5 58.5 54.9 57.0 NAS 19.7 -4.8 0.9 8.0 Power Business 87.3 53.8 55.8 65.0 Honeycomb Ceramics 38.8 48.0 46.3 49.0 SiC-DPF 24.9 29.5 30.2 25.0 Cd-DPF / LSH 8.8 19.0 24.8 34.5 Sensor 2.4 5.3 8.2 10.0 Industrial Process 26.4 22.1 24.2 26.5 Ceramics Business 101.3 123.8 133.8 145.0 Metal related 16.4 18.6 18.4 18.2 SPE related 6.9 16.7 16.5 21.0 Electric related 13.9 14.7 12.1 9.0 Soshin Electric Co. 9.7 11.7 11.2 11.8 Electronics Business 46.9 61.7 58.2 60.0 Total 235.5 239.4 247.8 270.0 FY2011 Sales by Product (semi-annual) (semi- Presentation<After Consolidation Elimination> (¥Bil.) Bil.) March ’12 March ’13 Est. 1st. Half 2nd. Half 1st. Half 2nd. Half Insulators 26.9 28.0 25.0 32.0 NAS 0.5 0.4 0 8.0 Power Business 27.4 28.4 25.0 40.0 Honeycomb Ceramics 22.6 23.7 25.0 24.0 SiC-DPF 15.3 14.9 12.5 12.5 Cd-DPF / LSH 11.5 13.3 16.5 18.0 Sensor 3.7 4.5 4.5 5.5 Industrial Process 10.2 14.1 11.5 15.0 Ceramics Business 63.3 70.5 70.0 75.0 Metal related 10.0 8.5 9.3 8.9 SPE related 9.3 7.3 9.5 11.5 Electric related 6.5 5.5 4.6 4.4 Soshin Electric Co. 5.8 5.4 5.6 6.2 Electronics Business 31.6 26.6 29.0 31.0 Total 122.3 125.5 124.0 146.0 10
  • FY2011 3/’ 3/’ Consolidated Results from 3/’05 to 3/’13 Presentation (¥Bil.) Bil.) 80 Op. Income 400 364.9 Ordinary Income 69.4 69.3 70 Net Income 350 320.1 Sales 283.8 60 300 266.1 273.2 270.0 52.0 50.3 247.8 235.5 239.4 50 46.0 250 40 200 32.8 31.3 30.9 31.5 32.1 32.7 29.4 28.7 30.0 30 28.0 150 26.1 24.3 24.1 24.5 24.9 24.4 24.0 23.5 20 16.5 17.8 100 12.0 10 50 0 0△ 10 -35.6 -50 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13Est. 11
  • The figures included in this brief, including the businessperformance targets and figures, are all projected data basedon the information currently available to the NGK Group,and are subject to variable factors such as economic conditions,competitive environments and future demands. Accordingly, please be advised that the actual results ofbusiness performance may differ substantially from theprojections described here. 2-56, Suda-cho, Mizuho-ku, Nagoya 467-8530, Japan Finance & Accounting Department Tel. : + 81-52-872-7212 Fax. : + 81-52-872-7160 E-mail : ir-office@ngk.co.jp NGK Website (English Version) : http://www.ngk.co.jp/english/index.html 12