Taiyo Holdings Co., Ltd. · TSE:4626

Taiyo — H1 FY12/13 Earnings Presentation

28 slides from Taiyo's earnings presentation, Nov 20, 2012

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

    ZXCV Consolidated Financial Result Digest FY12/13 First half ZXCV November 20, 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 at the time

  2. Slide 2: Classification

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

  3. Slide 3: Terminology

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

  4. Slide 4: INDEX

    INDEX ZXCV 1. Summary of FY 12/13 First half (April 1- September 30, 2012) 2. Forecasts for FY12/13 3. Progress of Medium-term business plan 4. Other topics Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 3

  5. Slide 5: 1. Summary of FY 12/13 First half

    ZXCV 1. Summary of FY 12/13 First half Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 4

  6. Slide 6: FY 12/13 1H (Actuals)

    FY 12/13 1H (Actuals) ZXCV (JPY millions ) FY 11/12 FY 12/13 Change in 5/8/2012 Items Diff. 1H 1H % Forecast Sales 21,115 18,594 (2,521) (11.9%) 19,500 Ope. Income 2,416 2,353 (62) (2.6%) 2,100 Ordinary 2,274 2,463 189 8.3% 2,100 Income Net Income 1,578 1,746 169 10.6% 1,500 <Ave. Exchange Rate> JPY

  7. Slide 7: Factors of sales decrease

    Factors of sales decrease ZXCV Sales （JPY billions） (1.6) （0.8） (0.1) Sales Volume Decrease Silver price Decrease FX rate fluctuation &Others 21.1 18.6 FY11/12 1H Actuals FY12/13 1H Actuals Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 6

  8. Slide 8: Factors of profit decrease

    Factors of profit decrease ZXCV Operating Income （JPY billions） +0.1 (0.1) Changes in FX rate Product MIX fluctuation &Others 2.4 2.4 FY11/12 1H Actuals FY12/13 1H Actuals Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 7

  9. Slide 9: FY12/13 1H Summary of Balance Sheet

    FY12/13 1H Summary of Balance Sheet ZXCV Assets Liabilities and Equity （ JPY billions ） （ JPY billions ） 45.0 45.0 40.0 40.0 7.2 7.6 35.0 35.0 13.0 14.3 30.0 30.0 25.0 4.2 3.8 25.0 20.0 20.0 9.2 9.0 33.5 33.3 15.0 15.0 10.0 10.0 14.3 13.7 5.0 5.0 0.0 0.0 3/31/12 9/31/12 3/31/12 9/31/12 Fixed assets

  10. Slide 10: FY12/13 1H Summary of Cash Flows

    FY12/13 1H Summary of Cash Flows ZXCV Operating CF Investing ＣＦ Financing ＣＦ （ JPY billions ） （ JPY billions ） （ JPY billions ） FY11/12 1H FY12/13 1H FY11/12 1H FY12/13 1H FY11/12 1H FY12/13 1H 3.0 3.0 3.0 2.0 2.0 2.0 3.0 1.0 1.0 1.0 0.4 0.3 0.0 0.0 0.0 (0.4) (1.2) (1.0) (1.0) (1.0) (1.8) (2.0) (2.0

  11. Slide 11: Sales of PWB Materials

    Sales of PWB Materials ZXCV Sales （ JPY billions ） 16.0 14.1 14.0 14.0 0.5 0.5  Low-priced products sales were brisk mainly at Chinese market. 12.0 2.9 3.2 10.0 Build-up  High-functionality products sales increased since market demands for 8.0 PKG & mobile information terminals such as Flexibile s

  12. Slide 12: Sales of FPD Materials

    Sales of FPD Materials ZXCV Sales （ JPY billions ） 7.0 6.0 Sales volume decreased due to shrinkage of the PDP TV market. 5.0 4.0 A unit price also fell because it is linked to the silver price, the main raw material of the FPD 6.7 3.0 materials. 2.0 4.2 1.0 0.0 FY11/12 1H FY12/13 1H Copyright © 20

  13. Slide 13: Result by segment for FY12/13 1H

    Result by segment for FY12/13 1H ZXCV Sales （ JPY billions ） 10.0 9.0 8.0 7.3 6.3 6.2 5.9 5.6 6.0 FY11/12 1H 4.0 FY12/13 1H 1.9 2.0 2.0 1.3 1.4 0.0 Japan China Taiwan Korea Others Operating Income 1.2 1.1 1.0 0.9 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.0 Japan China Taiwan Korea Others Cop

  14. Slide 14: 2. Forecasts for FY12/13

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

  15. Slide 15: Forecasts for FY12/13

    Forecasts for FY12/13 ZXCV (JPY millions ) Forecast for FY12/13 FY11/12 Items Original Revised Change in Results Forecast(5/8) Change Forecast % Sales 40,500 36,500 (4,000) (9.9%) 39,797 PWB+ 29,500 29,500 - - 27,490 FPD 11,000 7,000 (4,000) (36.4%) 12,307 Operating 4,500 4,500 - - 4,040 Income Ordi

  16. Slide 16: Factors of revision to FY12/13 forecasts

    Factors of revision to FY12/13 forecasts ZXCV PWB+ Sales was higher than expected during 1H. Although unit price is lower than FPD materials, it has higher profitability. FPD  Sales volume decreased due to shrinkage of the PDP TV market. Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserv

  17. Slide 17: Trend of consolidated sales from PWB+ and FPD

    Trend of consolidated sales from PWB+ and FPD ZXCV Sales PWB+ would increase from last FY. Sales volume decrease and silver price （ JPY billions ） FPD Materials PWB Materials + drop would cause FPD sales decrease. 50 45 40 10.2 35 9.5 9.4 12.3 7.0 30 6.5 6.0 5.6 25 3.1 1.5 20 33.6 15 30.9 29.9 29.

  18. Slide 18: Trend of consolidated performance

    Trend of consolidated performance ZXCV （ JPY billions ） Sales Ope. Income Net Income 50 45.3 45 41.9 40.3 39.8 40 36.5 35.3 35 35 32.6 30 27.7 25.7 25 20 15 10 7.9 8.8 6.6 6.1 4.8 4.7 5.5 4.8 5.3 4.5 4.2 3.3 3.4 4 5 2.7 2.9 1.9 3 2.5 3.2 0 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10

  19. Slide 19: Change to the market price of silver

    Change to the market price of silver ZXCV Showing trend of the silver price, which is the main raw material of the FPD materials （JPY/kg） It was around 70,000Yen during 1H, but increased recently. 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 Year 2011 Year 2012 Copyright © 2012 TAIYO H

  20. Slide 20: Investment & Depreciation expense

    Investment & Depreciation expense ZXCV （JPY millions） Investment Depreciation 1,400 1,200 1,000 800 600 400 200 0 FY09/10 FY10/11 FY11/12 FY12/13 (Estimated) Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 19

  21. Slide 21: 3. Progress of Medium-term business plan

    ZXCV 3. Progress of Medium-term business plan Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 20

  22. Slide 22: Strategy for Chinese market; Local production for Local consumption

    ZXCV Progress of Medium-term business plan Strategy for Chinese market • Grabbed market share from the competitors by the low-priced products. • Increased market share by M&A (Refer to [Strategy for M&A]). Strategy for “Local production for Local consumption” • The earthquake in Japan accelerated pr

  23. Slide 23: Strategy for new product development and global talent management

    ZXCV Progress of Medium-term business plan Strategy for new product development • Sales of new products during 1H were JPY 1.4 billion. (Sales target is JPY 3.8 billion for FY12/13.) • Sales of white SR were about JPY 0.4 billion. Strategy for Global talent management • Recruits qualified talent loc

  24. Slide 24: Strategy for M&A

    ZXCV Progress of Medium-term business plan Strategy for M&A • Reached the agreement of LOI with 「Onstatic Technology Co., Ltd.」 on August 9th, 2012. • Approved by Fair Trade Commission in Taiwan for the stock transfer on October 19th, 2012. • Will acquire 51% of the total stocks by end of February.

  25. Slide 25: Onstatic Technology Co., Ltd.

    ZXCV Progress of Medium-term business plan Onstatic Technology Co., Ltd.  Venue 7F,No.1, Ren-ai Rd, Ying-Ko Chen,Taipei Hsien, Taiwan (R.O.C.)  CEO Johnson Chiang(江徳生)  Business Various for PCB production  Foundation Sep, 1998  Financial information （JPY thousands) ITEMS FY09/10 FY10/11 FY11/12

  26. Slide 26: 4. Other topics

    ZXCV 4. Other topics Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 25

  27. Slide 27: Explosion at NIPPON SHOKUBAI

    Explosion at NIPPON SHOKUBAI ZXCV On September 29th 2012, explosion took place at the factory of NIPPON SHOKUBAI in Himeji. The factory is still under suspension and the date of the restart is unknown yet. Taiyo Holdings Group purchases resin as raw materials. Regarding the material, the producti

  28. Slide 28: ZXCV

    ZXCV Copyright © 2012 TAIYO HOLDINGS CO., LTD. All Rights Reserved. 27

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