Taiyo Holdings Co., Ltd. · TSE:4626

Taiyo — FY12/13 Earnings Presentation

31 slides from Taiyo's earnings presentation, May 9, 2013

  1. Slide 1: Consolidated Financial Result Digest FY12/13

    ZXCV Consolidated Financial Result Digest FY12/13 ZXCV May 9 ,2013 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 ,

  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” Printed Wiring Boards (Printed Wiring Board) “FPD Materials“ Flat Panel Display Panels (Flat Panel Display) “PDP Materials” Plasma Display Panels (Plasma Display Panel) “SR”(Solder Resist） Solder Resist Ink or Solder Mask “PKG Materials” Package Subst

  4. Slide 4: INDEX

    INDEX ZXCV 1. Summary of FY 12/13 Financial Results (April 1, 2012 - March 31, 2013) 2. Forecasts for FY13/14 3. Review of Medium-term Business Plan 4. Long-term Target 5. Other topics Copyright © 2012 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 3

  5. Slide 5: 1. Summary of FY12/13 Financial Results

    ZXCV 1. Summary of FY 12/13 Financial Results (April 1, 2012 - March 31, 2013) Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 4

  6. Slide 6: FY12/13 (Actuals)

    FY12/13 (Actuals) ZXCV (JPY millions) Change in FY11/12 FY12/13 Diff. Forecasts % Sales 39,797 36,184 (3,613) (9.1%) 36,500 Operating 4,040 4,385 345 8.5% 4,500 Income Ordinary 4,027 4,743 717 17.8% 4,500 Income Net Income 2,502 3,367 865 34.6% 3,200 <Ave. Exchange Rate> JPY/USD 79.3 83.2 3.9 - 80.0

  7. Slide 7: Factors of Sales Decrease

    ZXCV Factors of Sales Decrease Sales (JPY billions) +1.3 -4.3 FX rate -0.6 appreciation &changes in Sales volume product mix decrease Silver price &others decrease 39.7 36.1 FY11/12 Actuals FY12/13 Actuals Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 6

  8. Slide 8: Factors of Profit Increase

    ZXCV Factors of Profit Increase Operating Income (JPY billions) +0.8 -0.5 FX rate Sales volume appreciation decrease &others 4.0 4.3 FY 1 1 / 1 2 Ac t u als FY 1 2 / 1 3 Ac t u als Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 7

  9. Slide 9: FY12/13 Summary of Balance Sheet

    FY12/13 Summary of Balance Sheet ZXCV Assets Liabilities and Equity (JPY billions) (JPY billions) 44.0 44.0 45 40.7 45 40.7 40 40 7.2 14.6 7.2 35 12.9 35 30 30 3.6 25 4.2 25 20 8.8 9.1 20 36.8 15 33.4 15 10 17 10 14.3 5 5 0 0 3/31/12 3/31/13 3/31/12 3/31/13 Fixed Assets Other Current Assets Equity L

  10. Slide 10: FY12/13 Summary of Cash Flows

    FY12/13 Summary of Cash Flows ZXCV Operating CF Investing ＣＦ Financing ＣＦ FY11/12 FY12/13 FY11/12 FY12/13 FY11/12 FY12/13 8 4 4 6 4 2 2 6.1 2 2.7 0 0 -1.3 0 -2.4 -2.3 -2.9 -2 -2 -2 -4 -4 -4 Profit increased. Payment increased in Account receivables Payment increased because FY11/12 because of de

  11. Slide 11: Sales of PWB Materials

    Sales of PWB Materials ZXCV Sales (JPY billions) 30 1 0.9 27.9 Although the sales of the 25 26.7 products for PC and AV 5.4 6.7 decreased, sales of the products 20 for cars and amusement was 15 robust. 10 20.2 20.2 High-end PKG products for smartphones and tablets 5 increased. 0 FY11/12 FY12/13 Ri

  12. Slide 12: Sales of FPD Materials

    Sales of FPD Materials ZXCV Sales (JPY billions) 12 10 A unit selling price fell because it is linked to the silver price, the main raw 8 material of the FPD materials. 6 12.3 Sales volume decreased due to shrinkage of the PDP TV market. 4 7.3 2 0 FY11/12 FY12/13 Copyright © 2013 TAIYO HOLDINGS CO

  13. Slide 13: Result by Segment for FY12/13

    Result by Segment for FY12/13 ZXCV Sales (JPY billions) 20 16.6 16 13 11.7 11.7 12 10.6 10.8 FY11/12 8 FY12/13 3.7 3.9 4 2.6 2.8 0 Japan China Taiwan Korea Others Operating Income 2 1.7 1.6 1.6 1.5 1.2 0.9 0.8 0.6 0.5 0.4 0.4 0.3 0.4 0.2 0 Japan China Taiwan Korea Others Copyright © 2013 TAIYO HOLDI

  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 2.0 10.0 1.6 8.0 1.2 6.0 0.8 4.0 0.4 2.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -2.0 -0.4 FY09/10 FY10/11 FY11/12 FY12/13 Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All

  15. Slide 15: Return to shareholders

    Return to shareholders ZXCV FY12/13 dividend forecasts remains unchanged. A commemorative dividend (in addition to an interim dividend) is planned in FY13/14. (JPY) 140 115 10.0% 120 9.0% 120 8.6% 8.3% 90 90 90 8.0% 100 25 30 6.8% 6.9% 7.0% 6.6% 80 6.0% 45 45 45 45 45 5.0% 60 4.0% 40 3.0% 2.0% 20

  16. Slide 16: 2. Forecasts for FY13/14

    ZXCV 2. Forecasts for FY13/14 Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 15

  17. Slide 17: Forecasts for FY13/14

    Forecasts for FY13/14 ZXCV (JPY millions) FY12/13 FY13/14 Change in Diff. Results Forecast % Sales 36,184 40,000 3,816 10.5% PWB+ 28,866 34,000 5,134 17.8% FPD 7,316 6,000 (1,316) (18.0%) Operating 4,385 6,800 2,415 55.0% Income Ordinary 4,743 6,800 2,057 43.3% Income Net Income 3,367 4,700 1,333 39

  18. Slide 18: Forecasts for FY13/14 Overview

    Forecasts for FY13/14 Overview ZXCV PWB  Price reduction in the low-ended products has stopped because of the M&A activities.  Sales of the products for PKG for smart-phones and tablets is expected to continue robust. FPD  Stable profit would be secure after competitors withdraw from the market.

  19. Slide 19: 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 50.0 45.3 45.0 41.9 40.3 40.0 39.7 40.0 35.3 36.1 35.0 35.0 32.6 30.0 27.7 33.6 25.0 30.9 29.9 26.7 27.9 33.2 20.0 27.7 26.0 26 15.0 23.5 10.0 9.5 10.2 6.0 12.3 5.0 3.1 6.5 6.0 7.3 11.0 5.6 0.0

  20. Slide 20: Trend of Consolidated Performance

    Trend of Consolidated Performance ZXCV (JPY billions) Sales Ope. Income Net Income 50 45.3 45 41.9 35.0 39.7 40 40 35.3 35 36.1 35 32.6 30 27.7 25.7 25 20 15 10 7.9 8.8 6.8 6.6 5.5 6.1 4.8 4.0 4.0 4.7 4.2 5.3 4.7 5 2.9 3.3 3 3.0 4 3.3 2.7 1.9 2.5 0 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY0

  21. Slide 21: Investment & Depreciation Expense

    Investment & Depreciation Expense ZXCV (JPY millions) Investment Depreciation 2,500 2,000 1,500 1,000 500 0 FY11/12 FY12/13 FY13/14 Forecast Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 20

  22. Slide 22: 3. Review of Medium-term Business Plan (GBP2010)

    ZXCV 3. Review of Medium-term Business Plan (GBP2010) Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 21

  23. Slide 23: Sales and Operating income targets were not achieved

    Differences between Results and the Original Targets ZXCV Sales and Operating income targets were not achieved. (JPY billions) Medium-term FY12/13 Change Business Plan Sales 36.1 48.0 (11.9) PWB+ 28.8 38.5 (9.7) FPD 7.3 9.5 (2.2) Operating Income 4.4 7.7 (3.3) Operating 12.1 16.0% (4.9%) Income Rat

  24. Slide 24: SR Market trend in China

    SR Market trend in China ZXCV （tons） 35,000 Differences about 9.000 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 Original forecast Results（FY12/13 is forecast) Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All

  25. Slide 25: Review of Mid-term Plan (GBP2010)

    Review of Mid-term Plan(GBP2010) ZXCV  Sales of the strategically low-end products to certain customers was successful to some extent since we increased market share.  Our market share in China reached 50% as a result of the acquisition of OTC.  Development of new touch panel materials started in

  26. Slide 26: 4. Long-term Targets

    ZXCV 4. Long-term Targets Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 25

  27. Slide 27: Long-term target

    Long-term target ZXCV No.1 market share of SR Over 80% of the total sales is →Strongly influenced by the overseas sales. market trend →Strongly influenced by FX rate Share and New products As a result, Sales and Profit Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 26

  28. Slide 28: Strategy

    Strategy ZXCV Strengthening of R&D structure Rapid commercialization of new products Encouraging initiative in talent Development of measures to reduce foreign currency risk Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 27

  29. Slide 29: 5. Other Topics

    ZXCV 5. Other Topics Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 28

  30. Slide 30: Status of Acquiring of OTC

    Status of Acquiring of OTC ZXCV  Signed an LOI to acquire a 51.0% stake of Onstatic Technology Co., Ltd. on August 9, 2012.  Acquired a 25.5% stake with NTD 899 million (JPY 2,511 million) on November 22, 2012.  Pricing negotiation to acquire the remaining 25.5% stake is under way.  After the ac

  31. Slide 31: ZXCV

    ZXCV Copyright © 2013 TAIYO HOLDINGS CO.,LTD. All Rights Reserved. 30

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