Business Strategies

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Business Strategies

  1. 1. Contents % Newly - integrated company ’ssneibumado sarketndm % woandhetgriWy ynergsatoc % wNely - anypomedctgri ’ssneaiburfoct % mandulogieM - esgiatrm Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  2. 2. ’s BueinsDomadMkrt
  3. 3. 1. roup G ’snaomiDseBu & onitcdurPemS An integration of Nihon Aim and Apex expands our business domain to An integration of Nihon Aim and Apex expands our business domain to cover almost all production processes of semiconductor manufactu rers. cover almost all production processes of semiconductor manufactu rers. Apex ’ iesnbu Nihon Aim ’s aidonm iesnbuadom Production Equipment Maintenance installation Semiconductor Move/disposal Supply replacement, manufacturers’ of equipment repairs production activities Responding to Overhaul troubles(on calls) Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  4. 4. 2. Structural Changes in sed Equipment arket and U M Business Opportunities for the New Company ain usage M More installation of 300mm More installation of 300mm equipments means used equipments equipments means used equipments -processing system 300mm (12 > CPU for PCs, image 0.1 micron (200 mm ) have to be moved (200 mm > ) have to be moved > LSI for games, flash memory for digitalinch) cameraas 0.35 micron > elody IC on mobile phones, 200mm (8 inch) M control IC on digital cameras More needs More needs More needs More needs in highly - in highly - in in skilled skilled refurbishing refurbishing High -pressure, high IC, -resistant device device (changesin (changes in -supply IC for household125 micron > power 0.8 operators operators design and design and appliances (i.e. air conditioners, -6 inch) -150mm (5 devices) devices) refrigerators, TVs) 0.8 micron < Transistors, diodes, resistors, all -6 inch) electronics equipments 100 -150mm (4 pper line: line of semiconductors U -width Lower line:: wafer diameter Needs for manufacturing outsourcing Needs for manufacturing outsourcing Needs for used equipment Needs for used equipment - skilled operators and engineers arerowth in the used equipmentwhich cannot be rowth in GG market creates - skilled operators and engineers areneeds forthe used equipmentwhich cannot be Highly Highly market creates needed to meet for upgraded devices needs for technicaldevice makers. needed to meet for upgraded devices technical support support fulfilled by device makers. fulfilled by Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  5. 5. 3. New Company ’s Targeted arkets M iemcdonStrufas iemcdonStrufas (alseof (alseof ¥ ¥ .ltri5)on .ltri5)on ’’ ctosrue ctosrue mapnywNeco New company ’sa’syntdrgsweokbl ayntdrgsweokbl a ri V - rageMn le b st c o r s a o t O pe f% o t 1 4u A b f% o t 1 4u A b m N o i Ahn ’s .Mgf .Mgf NoniAhm NoniAhm ’s’s ab L o r ; sa l e ; sa l e corignsut corignsut P r o d u c t io n S ta f f in g E q u ip m e n t d e p r e c ia t io n % 10 ies n b mu a s c ot f o e i z s ta r k m f o e i z s ta r k m ¥ ¥ l i o n b. 2 4 1 l i o n b. 2 4 1 iOePsnbu OiPsenbu ¥ ¥ n l io 0 b 7 n l io 0 b 7 mdaison a f tc se n i M r weyitpo(Ul r ) a e t w , pu s e n px E stinpmquefolS aVelu - g n a i l e c srt ,p R d ea senp rxOht deFix rageMn st c o ab L o r orces/dPitvfa t 7 u oA b t 7 u oA b ; saf l e o ; saf l e o - - % 14 % 14 e,acnMit e,canMit mNoiAhn mNoiAhn ’s’s % 65 s c ot rseginE f o e i z s ta r k m f o e i z s ta r k m edtmkgaTr , b h r i s e u fa p , b h r i s e u fa p MiesnbuEL/ MiesnbuEL/ On - s e f r t p ol cu a ¥ ¥ 5 38 5 38 - - 70 70 e w r t a fo g l c a e iv nmt h o( l c a e i v n mt h o( ilnbo ilnbo i o ae t nr g ) s o tp r u ) s o tp r u e Ap x e Ap x ’’ lcaeinth lcaeinth s e n px E la,urhvegionsbfR ¥ ¥ l i o n b. 7 6 l i o n b. 7 6 es i vn b r cu es iv n br c u srt a p i e senprxOht ; o f c ne I a s s e d t n iu m p q e Mor &D R a b tl se st c o s o t i m E p uc q e n 5% %06 e Ap x e Ap x ’’ etnmipuq etnmipuq f% o t 2 u 9 A b f% o t 2 9u A b esdouafTr esdouafTr iesnbu iesnbu t rk e m a; s l t rk e m a; s l e Ap x ’ m ai n , s e t n im p u q , s e t n im p u q ift r o P f oe iz s f oe iz s ¥ ¥ 95 1, 95 1, ies n b u s l, p i e u t a r s l, p i e u t a r m n A o iNh m n A o iNh ’s’s % 20 ilnbo ilnbo mdaiosn ¥ ¥ l i o n b. 5 8 l i o n b. 5 8 v i c e r t n ps m q u v i c e r t n ps m q u otprluTeiscnha s ein u b s ein u b % e0 f 4 s Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  6. 6. nmesp:cSrivtuoEqdP4. neirfcD asver.OnpJ uJntpaow uJntpaow iftrJnepau fitrJenupa resviOtauno resviOtauno Depic Depic akersmfiocntulh akersmfiocnutlh icervsfothlaq,punm icervsfothlaq,punm incealhTrsvpdoby incealhTrsvpdoby Ulnikaesrmov,Jp Ulnikaesrmov,Jp ’s’s i.m0e,3 i.me0,3 iecmson icemosn .eqipt,unm .eqit,punm irdthpaesl(mc)on irdthpaels(mc)on icdevakrmspontlh icdevakrmspontlh danfitlcuero danfitlcuero othauriedzbymscn othauriedzbymscn icervsbymth.l icervsbymth.l orthgiuncealvs orthgiuncealvs pc,ersodtunbyivakm. pc,ersotdunbyivakm. edtosqiup.nm edtosqiu.pnm Lsewildgtonqupm Lsewildgtonqupm otePrmusdfqipn otePrmusfdqipn otePrmusdfqipn otePrmusdfqipn fiucsnItealhporby fiucsntIealhporby icdevakrmstnfo icdevakrmstnfo icervsdonqupm,t icervsdonqupm,t T T irdh irdh - - party party incealhpusort incealhpusort is is Litledanmchpusor Litledanmchpusor piderovbythas piderovbythas alredycowgv alredycowgv piderovbytha.s piderovbytha.s pcometiarkv. pcometiarkv. Apexirsnaftuo Apexirsnaftuo asirdthpynezkl. asirdthpynezkl. Jnpa Japan ’si’ntcahsepluromkfd q intcahsepluromkfd q ipmtnebrsglh ipmtnebrsglh aresvtmkoNi.hdnAxpbcu aresvtmkoNi.hdnAxpbcu risenubpot. risenubpot. Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  7. 7. 5. A pex Competitive Landscape (for reference) Device-maker-affiliated Independent firms firms Among dozens of independent companies, most Device makers’ engineering division or are involved only in brokerage and a few hold subsidiary. Highly-skilled. But service their own equipment inventory or engineering their own equipment, only. division. Company Sales Size Company Sales Size (billion yen) (billion yen) AMJ NA 7.2 ÿ incl. 6.5 related to APEX used equipment and 0.4 Nikon 4 -5 for technical services) Canon 2 INTERTEC 3.6 NOAH .0 (incl. 1.0 related to 4 Tokyo Electron NA used equipment) LVAC U 2 Hightec Systems Canon ANELVA 1.5- 2 FASTGATE 1.0- 2.5 Advantest 1 TLC Equipment Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  8. 8. 6. Growth otential of Targeted Markets P rowth outlook inin Japan semicon .. manufacturing outsourcing & used equipment markets G rowth outlook Japan ’s semicon manufacturing outsourcing & used equipment markets G ’s 250 235 201 200 178 14 5 171 150 120 132 100 125 100 115 113 103 96 50 0 2004 2005 2006 2007 2008 Japan' s semiconductor market Outsourcing and engineering services U sed equipment market Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  9. 9. 7. hy to integrate? W Main business Main business Client needs Client needs Issues Issues Measures, post -integration Measures, post -integration Nihon Aim Upgraded devices have to advanced training Nihon Aim Upgraded devices have to advanced training An An Semiconductor Semiconductor program must be built,iersgnEqicacbukltdypatexA Engineers ’can be trained be serviced by advanced program must be built, given be serviced by advanced given manufacturing manufacturingskilled operators and the latest development Cter.n quickly at ’Apex skilled operators and the latest development in in echT echT outsourcing engineers. devices. Cter.n outsourcing engineers. devices. orheStaginsc orheStaginsc beold,rsivynug beold,rsivynug Apex Growth in the used Inability to hire a sufficient Inability to hire a sufficient Apex Growth in the used number of engineers limits number of engineers limits NoniAhm NoniAhm ’s’sihrgn ihrgn equipment market creates equipment market creates business growth. capbiltydnseh capbiltydnseh Used semiconductor business growth. Used semiconductor for technical support needs for technical support needs uanohresmc. uanohresmc. equipment -related which cannot be filled bynationwide service -related which cannot be filled A nationwide service equipment by businesses device makers. businesses device makers. A Aicervstwoknab Aicervstwoknab network is needed. network is needed. ilbutonpNfAhm ilbutonpNfAhm ’s’s atinwoderk. atinwoderk. oitspncmrueSafdh oitspncmrueaSfdh and and iumnqtpeyabsr,gchovl iumnqtpeyabrs,gchovl .. Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  10. 10. 8. Post - integration Strategies for Growth Business activities Nihon Aim’s problems Apex’ problems Solution Skill-ups of operators Lack of clean rooms, training Regular training programs at and maintenance staff equipment for skill-ups Apex Tech Center Cost-down in technical Securing the number of Use of Nihon Aim’s human support support staff resources 0û Find and evaluate new 0û Incorporate to Nihon Aim’s products 0û Appropriate sales system maintenance programs Equipment supplies 0û Inventory storage space 0û Securing the number of staff 0û Training of maintenance 0û Skills to start up equipment staff by Apex’ engineers after replacement of parts 0û Space for repair work and 0û Incorporate to Nihon Aim’s storage 0û Appropriate sales system maintenance programs Unit repair 0û Skills to replace or install 0û Securing the number of staff 0û Training of maintenance repair units staff by Apex’ engineers Operating at customer site, 0û New capital spending using Nihon Aim’s nationwide Parts cleaning 0û Securing the number of staff 0û Operational know-how network and Apex’ equipment operation know-how 0û Technical skills 0û Use of Nihon Aim’s special Responding to on-calls 0û Availability and storage of 0û Securing the number of staff coaches, “Green Berets” replacement parts Equipment refurbishing 0û Technical skills 0û Securing the number of staff 0û Use of Nihon Aim’s special & overhaul 0û Diverse parts, clean room coaches, “Green Berets” Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  11. 11. 9. How to Foster Human Resources  ’sngeirs 0ati)w,n8ode(6b4usfprmS2 eciERv - liearndgwb - traigonescmdup nariIteslcpofm narIiteslcpofm  ’ eiqupmtns aitrnUesgpuom.lAk aitrnUesgupom.lAk - - aitrnpugeohds aitrnpugeohds oethfrsmpn2 oethfrsmpn2 - - 3nthoms1 3nthoms1 - - we4ks we4ks Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  12. 12. 10. How to Govern in ursuit of Synergies P Steps in realizing synergy effects Steps in realizing synergy effects   ’ staff gather by project theme and set up an operation flow chart, key performance indicators (i.e, a number of reference to potential customers per sales branch), and profit targets.      Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  13. 13. 11. Themes by Business Segment Production  ’ know- how. outsourcing   Parts, supplies  Trade of used equipment   Technical  support Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  14. 14. 12 ÿ Sales and Operating rofit Outlook P 11 -- anyre3d anyre3d -- &gOktluaeyroS O&gktluyareoS satiledc(fyrgnasoemit rpenwilotY r) ae t ldc n u o b e a or s f c t 0 1 / 3 Y F New New ( ¥ 100mn) ( ¥ 10mn) Market Market e.artdclonub Company Company 100,000 800 rdinary profit excluding synergy effects) O ( 90,000 echnical igh T H 700 support margin 36 80,000 30 J asda 0Ù0¹000Ê000ï00¹000Ê00ª 600 È · ê ª ü È · ê pmr 5 24. aiom 70,000 nnk e sut ’ arts, P 500 60,000 12 ec supplies, used Mid - ct equip - margin 50,000 400 ment 97 40,000 o trade 89 r 300 67 66,929 30,000 60,284 110 55,323 95 51,549 30 200 fg. M 85 Mid - 20,000 67 outsour - cing margin 100 174 187 10,000 143 123 0 0 603/FY FY3/07 FY3/08 FY3/09 FY3/10 ÿ mage ÿ I 3- ear orst case scenario 3- y ear w orst case scenario y w 1 1- - kolturyae year outlook 3- ear best case scenario 3- y ear best case scenario y he Silicon Cycle ill turn slugish and enter into T he Silicon Cycle w ill turn slugish and enter into T w gg he Silicon Cycle ill eaken and result in somewhat eak T he Silicon Cycle w ill w eaken and result in somewhat w eak T w w w otaknsh,girmdsaleinwhtgroydS Steady growth in sales and margin, thanks to downturn and semiconductor device manufacturers downturn and semiconductor device manufacturers results in FY3/09. owever, demand for equipment results in FY3/09. H owever, demand for equipment H rskemacvidoutnes semiconductor device makers’ alpitc alpitc ’ tighten production from FY3/09. owever, higher tighten production from FY3/09. H owever, higher H replacement, technical support, and manufacturing replacement, technical support, and manufacturing gi n d pe s g i n d pe s outsourcing ratio ill allow us to maintain the number of outsourcing ratio w ill allow us to maintain the number of w outsourcing are to increase towards FY3/10. outsourcing are to increase towards FY3/10. outsourcing staff. outsourcing staff. ÿ Sales and profits in FY3/06 and their forecasts for FY3/07 have added respective numbers of Apex for FY4/06 and FY4/07. Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  15. 15. 13. Silicon Cycle & Business ortfolio P Images of the silicon cycle and business cycles Images of the silicon cycle and business cycles Different peak points We try to smooth out We try to smooth out Cycle of semiconductor earnings by having earnings by having production equipment businesses with businesses with different peak points different peak points An increased exposure in An increased exposure in technical support will technical support will make an earnings trend make an earnings trend more stable. more stable. Steady cycle in Silicon cycle High margin in technical High margin in technical technical support ÿ Cycle in production support will contribute to support will contribute to outsourcing earnings stability. earnings stability. Aim at a more stable earnings structure by expanding business do and main Aim at a more stable earnings structure by expanding business do and main raising an exposure to lesscyclical technical support. - raising an exposure to lesscyclical technical support. - Expansion in business is expected to make us less cyclical, as p as Cs, mobile phones, Expansion in business is expected to make us less cyclical, as p as P Cs, mobile phones, roducts such roducts such P DVDs, car navigation systems, LCD TV sets, and automobiles have different cycles. iPiPods, DVDs, car navigation systems, LCD TV sets, and automobiles have different cycles. ods, Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  16. 16. 14. New Company ’s Business Portfolio Nihon Aim & ApexFY06 (simply combined) -integrated company in in /3 Newly Technica  l14% Other support 2% Used eqmt Sales fg.  parts, M ing trade, outsourc ¥ supplies 54% 22.030% billion l20% Other Technica  1% support Ordinary profit fg. M Used outsourc eqmt. ¥ supplies 53% ing 1.2 trade, parts, billion  26% Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.
  17. 17. “Nihon Aim and Apex intend to become a company that is indispensable to the functioning of the world.” Aiming to become the only one company in its field Thank you very much. Copyright (C) 2006 Nihon Aim Co. Ltd. & Apex Inc. All Rights Reserved.

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