Taiyo Holdings Co., Ltd. · TSE:4626

Taiyo — FY2011 Earnings Presentation

29 slides from Taiyo's earnings presentation, May 14, 2012

  1. Slide 1: Consolidated Financial Result Digest FY11/12

    ZXCV Consolidated Financial Result Digest FY11/12 (April 1,2011-March 31,2012) ZXCV May 14,2012 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

  2. Slide 2: Classification

    Classification ZXCV PWB Materials FPD Materials SR（Solder Resist） For PKG PWBs For PDPs For Rigid PWBs For Flexible PWBs Silver Paste, etc. White SR For Touch Panels For B/U PWBs New Products Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 1

  3. Slide 3: Terminology

    Terminology ZXCV Term Definition “PWB Materials” Chemical Products for Printed Wiring Boards (Printed Wiring Board) “FPD Materials“ Chemical Products for Flat Panel Display Panels (Flat Panel Display) “PDP Materials” Chemical Products for Plasma Display Panels (Plasma Display Panel) "SR" Solder Resi

  4. Slide 4: INDEX

    INDEX ZXCV 1. Summary of FY 11/12 Consolidated Financial Results (April 1, 2011 - March 31, 2012) 2. Forecasts for FY12/13 (Consolidated) 3. Progress of Medium-term Business Plan Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 3

  5. Slide 5: 1. Summary of FY 11/12 Consolidated Financial Results

    ZXCV 1. Summary of FY 11/12 Consolidated Financial Results (April 1, 2011- March 31, 2012) Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 4

  6. Slide 6: FY11/12 Consolidated Results

    FY11/12 Consolidated Results ZXCV (JPY millions) Change in 2/7/2012 FY10/11 FY11/12 Change % Forecast Sales 40,366 39,797 (569) (1.4 %) 40,300 Operating 5,380 4,040 (1,340) (24.9%) 4,300 Income Ordinary 5,316 4,027 (1,289) (24.3%) 4,200 Income Net Income 3,402 2,502 (900) (26.5%) 2,500 <Ave. Exchang

  7. Slide 7: FY11/12 Factors for Sales Decrease

    FY11/12 Factors for Sales Decrease (vs. FY10/11)ZXCV Sales (JPY billions) FY10/11 Actuals 40.3 Increase in selling prices of FPD Materials 3.4 Change in product mix of PWB Materials,etc. 2.1 Change in sales volume 3.3 Fluctuation in exchange rates 2.8 FY11/12 Actuals 39.7 Copyright © 2012 TAIYO HOLD

  8. Slide 8: FY11/12 Factors for Profit Decrease

    FY11/12 Factors for Profit Decrease (vs. FY10/11)ZXCV Operating Income (JPY billions) FY10/11 Actuals 5.3 Changes in product mix 0.9 Change in sales volume 1.3 Fluctuation in exchange rates 0.9 FY11/12 Actuals 4.0 Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 7

  9. Slide 9: FY11/12 Summary of Balance Sheet

    FY11/12 Summary of Balance Sheet ZXCV Assets Liabilities and Equity (JPY billions) (JPY billions) 45 42.8 45 42.8 40.7 40.7 40 40 8.6 7.2 35 13.9 35 12.9 30 30 4.1 4.2 25 25 20 9.5 9.1 20 15 34.1 33.4 15 10 10 15.1 14.3 5 5 0 0 3/31/11 3/31/12 3/31/11 3/31/12 Fixed Assets Other Current Assets Equity

  10. Slide 10: FY11/12 Summary of Cash Flows

    FY11/12 Summary of Cash Flows ZXCV Operating CF Investing ＣＦ Financing ＣＦ FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 4 4 4 2 4.5 2 2 2.7 0.7 0 0 0 -1.3 -2.9 -2 -2 -2 -3.6 -4 -4 -4 Decrease due to deposit of Own shares purchase for 1.3 Decrease in liabilities such time deposits. billion in FY

  11. Slide 11: Sales of PWB Materials

    Sales of PWB Materials ZXCV Sales (JPY billions) 35 29.9 Demand of smartphones and 30 26.7 tablet PCs remained strong, on 1.2 25 5.6 1.0 the other hand, general PC and 5.4 TV were sluggish. 20 Sales volume of low-priced products (for China Market) was 15 increased about 20% year on 22.9 year. 10 2

  12. Slide 12: Sales of FPD Materials

    Sales of FPD Materials ZXCV Sales (JPY billions) 12 10 Sales of FPD materials reached at a record high due to stable high price of 8 silver. 6 12.3 Sales volume increased in China. 9.4 4 2 0 FY10/11 FY11/12 Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 11

  13. Slide 13: Result by Segment for FY11/12

    Result by Segment for FY11/12 ZXCV Sales (JPY billions) 20 18.4 16.6 16 13.7 11.7 11.9 12 10.6 FY10/11 8 FY11/12 4.4 3.7 4 3.0 2.6 0 Japan China Taiwan Korea Others Operating Income 3.0 2.8 2.5 2.0 1.7 1.5 1.0 0.9 0.9 1.0 0.5 0.6 0.4 0.5 0.2 0.2 0.0 Japan China Taiwan Korea Others Copyright © 2012 T

  14. Slide 14: Trend of Quarterly Performance

    Trend of Quarterly Performance ZXCV Sales（left axis） Operating Income（right axis） (JPY billions) (JPY billions) 12.0 2.4 10.0 2.0 8.0 1.6 6.0 1.2 4.0 0.8 2.0 0.4 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -2.0 -0.4 FY08/09 FY09/10 FY10/11 FY11/12 Copyright © 2012 TAIYO HOLDINGS CO.,LTD.

  15. Slide 15: Loss on Cancellation of Construction of TAIYO INK (ZHONGSHAN)

    Cancellation of the Construction of TAIYO INK (ZHONGSHAN) ZXCV  Due to the changes to business environment in China, ROI reassessed far below than when planned.  Posted “Loss on valuation of investment in capital of subsidiaries and affiliates” as extraordinary loss for 421 million yen.  TAIYO IN

  16. Slide 16: Return to shareholders

    Return to shareholders ZXCV Dividend policy remains unchanged. (JPY) 140 10.0% 115 115 9.0% 120 8.6% 8.1% 90 90 90 8.0% 100 25 6.8% 6.9% 7.0% 6.5% 55 6.0% 80 5.0% 60 4.0% 90 90 90 90 3.0% 40 60 2.0% 20 1.0% 0 0.0% FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 （Projection） Ordinary Commemorative/Special D

  17. Slide 17: 2. Forecasts for FY12/13 (Consolidated)

    ZXCV 2. Forecasts for FY12/13 (Consolidated) Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 16

  18. Slide 18: Forecasts for FY12/13 (Consolidated)

    Forecasts for FY12/13 (Consolidated)ZXCV (JPY millions) FY11/12 FY12/13 Change in Change Result Forecast % Sales 39,797 40,500 703 1.8% PWB+ 27,490 29,500 2,010 7.3% FPD 12,307 11,000 (1,307) (10.6%) Operating 4,040 4,500 460 11.4% Income Ordinary 4,027 4,500 473 11.7% Income Net Income 2,502 3,200

  19. Slide 19: Forecasts for FY12/13 Overview

    Forecasts for FY12/13 Overview ZXCV PWB  Market demand expected to recover mainly in China, ASEAN.  Recovery of sales volume about 10% equal to FY10/11 level.  Raising our market share of low-priced products.  Focusing on Hole plugging ink, Marking, Flexible, etc. FPD  Sales in PDP Materials ex

  20. Slide 20: Trend of Consolidated Sales from PWB+ and FPD

    Trend of Consolidated Sales from PWB+ and FPD ZXCV Sales (JPY billions) Others FPD Materials PWB Materials 50 45.3 45 41.9 40.3 39.7 40.5 40 35.3 35.0 35 32.6 30 27.7 25.7 33.6 25 30.9 29.9 26.7 28.9 20 27.7 27.9 26.0 15 23.5 22.9 10 9.5 10.2 9.4 12.3 11.0 5 1.5 6.5 6.0 3.1 5.6 0 1.3 1.0 1.0 1.4 1.5

  21. Slide 21: Trend of Consolidated Performance

    Trend of Consolidated Performance ZXCV (JPY billions) Sales Ope. Income Net Income 50 45.3 45 41.9 40.3 39.7 40.5 40 35.3 35.0 35 32.6 30 27.7 25.7 25 23.1 20 15 10 7.9 8.8 6.6 5.5 6.1 4.8 4.7 4.2 3.3 4.8 5.3 4.0 4.5 5 4.0 2.9 3.0 3.4 3.2 2.1 2.7 1.9 2.5 0 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY0

  22. Slide 22: Investment & Depreciation Expense

    Investment & Depreciation Expense ZXCV (JPY millions) Investment Depreciation 1,200 1,000 800 600 400 200 0 FY10/11 FY11/12 FY12/13 (Projection) Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 21

  23. Slide 23: 3. Progress of Medium-term Business Plan

    ZXCV 3. Progress of Medium-term Business Plan Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 22

  24. Slide 24: Gap between FY12/13 Forecast and Medium-term Business Plan

    Gap between FY12/13 Forecast and Medium-term Business Plan ZXCV Now difficult to achieve the target. However, achievement rate of new product sales is high. (JPY millions) FY12/13 Medium-term Change Forecast Business Plan Sales 40,500 48,000 (7,500) PWB+ 29,500 38,500 (9,000) FPD 11,000 9,500 1,500

  25. Slide 25: SR Market trend in China

    SR Market trend in China ZXCV （tons） 35,000 Difference about 8,000 tons 30,000 25,000 20,000 15,000 European debt crisis 10,000 5,000 “Lehman Shock” 0 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 Forecast when planning Results（FY12/13 is forecast) Copyright © 2012 TAIYO HOLDINGS CO.,LTD.

  26. Slide 26: Progress of Strategies: Chinese market, local production

    Progress of Strategies ZXCV Strategy for Chinese market • Converted some customers from the competitors by the low- priced products. • Market share was slightly increased in FY11/12. some target customers are evaluating our products. Increase in share is expected in and after FY12/13. • Increase in

  27. Slide 27: Progress of Strategies: new products, global talent

    Progress of Strategies ZXCV Strategy for new products development • Sales of new products in FY11/12 was JPY 2.5 billion. （Sales target was JPY 2.4 billion for FY11/12.） • Sales of white SR, black SR, silver paste for through holes were increased. • Sales target for the final year of the Business Pl

  28. Slide 28: Development of New Medium-term business plan

    Development of New Medium-term business plan ZXCV  Working on a new Medium-term Business Plan covering up to FY16/17.  Developing new growth strategy with the keyword; “Speed & Communication”  Active promotion of M&A Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 27

  29. Slide 29: ZXCV

    ZXCV Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 28

Taiyo Holdings — FY2011 Earnings Presentation on 6ix