Screen Holdings Co., Ltd · TSE:7735
Screen — Dainippon Screen Mfg. — FY2014 Earnings Presentation
26 slides from Screen's earnings presentation, May 7, 2014
Slide 1: Business Results & Forecast Fiscal Year Ended March 31, 2014
DAINIPPON SCREEN MFG. CO., LTD. Business Results & Forecast Fiscal Year Ended March 31, 2014 President & COO Eiji Kakiuchi May 7, 2014 Agenda • FY2014 Business Results • Business Situation • FY2015 Business Forecast • “Challenge2016” [New Three-year Medium-term Management Plan] • Change to Holding C
Slide 2: Business Results Fiscal Year Ended March 31, 2014
Business Results Fiscal Year Ended March 31, 2014 1
Slide 3: FY2014 Business Results (consolidated)
FY2014 Business Results (consolidated) FY2013 FY2014 Result Forecast (installation Result basis) (Feb. 4） （Unit：Billions of JPY） Full １Q 2Q 3Q 4Q Full Y/Y Full Net Sales 199.7 59.3 51.8 52.1 72.6 235.9 36.1 231.0 SE 140.6 43.3 32.3 36.7 50.6 163.1 22.4 159.5 FE 12.0 4.1 6.8 3.3 5.5 19.8 7.8 20.0 MP
Slide 4: Quarterly Net Sales and Operating Income (Consolidated)
Quarterly Net Sales and Operating Income (Consolidated) SE FE MP Other Operating Income (right) Net Sales Operating Income 90.0 10.0 8.1 Shipment Basis Completion of Installation Basis 6.2 3.8 4.3 3.1 2.7 1.2 2.2 1.5 13.5 0.8 0.6 14.6 0.0 11.0 60.0 9.0 9.9 16.2 7.7 12.8 4.8 (4.4) (4.8) 11.6 5.5 5.1
Slide 5: Quarterly Orders Received and Order Backlog (Consolidated)
Quarterly Orders Received and Order Backlog (Consolidated) Order Received SE FE MP Other Order Backlog (right) Order Backlog 100.0 Shipment Basis Completion of Installation Basis 120.0 102.2 75.0 96.0 13.0 91.7 91.2 84.4 83.1 78.7 75.0 80.6 78.4 9.4 80.0 70.1 69.5 15.3 12.9 13.4 12.1 50.0 12.9 12.2
Slide 6: 4Q Order Received: JPY 35.1 bn. (Semiconductor Production Equipment)
<Semiconductor Production Equipment> Quarterly Order Received Ratio by Device Application (Nonconsolidated) 4Q Order Received : JPY 35.1 bn. (consolidated) 100% Other 11％ Logic 22% Memory 50% DRAM: 16% 29% Flash: 13% Foundry 36％ Imaging Device 2％ 0% 1/4Q 2/1Q 2Q 3Q 4Q 3/1Q 2Q 3Q 4Q 4/1Q 2Q 3Q 4Q F
Slide 7: 4Q Order Received: JPY 11.0 bn. (FPD Production Equipment)
< FPD Production Equipment> Quarterly Orders Received by Generation (Nonconsolidated) 4Q Order Received : JPY 11.0 bn. (consolidated) 100% Over G8 G7 G6 50% G5 G4 Under G3 Other 0% /4 Q /1 Q 2Q 3Q 4Q /1 Q 2Q 3Q 4Q /1 Q 2Q 3Q 4Q Y11 Y12 Y13 Y14 F F F F *Calculated by gross in FY12/4Q Taiwan Korea FY
Slide 8: Trend in B/S (consolidated)
Trend in B/S (consolidated) Cash & time deposits Notes & accounts payable Assets Notes & accounts receivable Liabilities & Net Assets Interest-bearing debt （Unit: Billions of JPY） Inventories （Unit: Billions of JPY） Other current liabilities Other current asset Other noncurrent liabilities Property,
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows Free Cash Flow : JPY20.5 bn. (Unit : Billions of JPY) Operating CF Investing CF Financing CF 40.0 34.2 30.0 25.1 24.7 21.5 20.0 11.2 10.0 6.8 0.0 (2.1) (4.1) (4.2) (10.0) (5.7) (9.4) (20.0) (15.3) (30.0) (22.2) (27.1) (29.3) (40.0) FY2010 FY2011 FY2012 FY2013 FY2014 8
Slide 10: Interest-bearing Debt (Consolidated)
Interest-bearing Debt (Consolidated) (Unit: Billions of JPY) Interest-bearing Debt Cash and Time Deposits Net interest-bearing debt 140.0 131.0 122.7 120.0 111.1 102.5 100.0 76.6 80.7 77.2 76.9 78.6 80.0 75.3 72.4 71.9 71.6 69.7 70.4 69.4 64.9 57.3 55.5 60.0 53.5 55.7 50.2 50.3 54.6 53.4 50.7 53.8 4
Slide 11: Business Area
a SCREEN Business Area DAINIPPON SCREEN MFG Co.,LTD.
Slide 12: Business Environment: Semiconductor Equipment (SE)
Business Environment <SE> Quarterly Sales & O/P SE Billions of JPY 60.0 4.0 3.9 Net sales(left) OP(right) 4Q 50.0 2.1 1.8 3.0 2.0 40.0 0.7 • Sales of cleaning equipment (both batch-type and 1.0 30.0 0.1 50.6 0.0 single wafer) for foundry were leading 43.3 37.3 (1.0) 20.0 • Order received fell below
Slide 13: Business Environment: FPD Equipment (FE)
Business Environment <FE> Quarterly Sales & O/P FE Billions of JPY 8.0 0.5 Net sales(left) OP(right) 0.1 4Q 6.0 (0.0) (0.1) (0.1) 6.8 0.0 (0.2) 5.5 • Both sales and earnings largely went on as Feb. 4.0 forecast 4.1 (0.5) • Orders received significantly increased thanks 2.0 3.0 3.3 to China deals 0.0
Slide 14: Business Environment: Media and Precision Technology (MP)
Business Environment MP <MP> Quarterly Sales & O/P Billions of JPY 18.0 2.0 Net sales(let) OP(right) 1.2 4Q 16.0 1.4 1.5 14.0 12.0 14.7 0.5 0.4 1.0 • Sales exceeded Feb. forecast both in Graphic 10.0 0.5 8.0 0.4 16.2 Arts equipment and PCB related equipment 6.0 0.0 12.4 (Domestic sales were affected
Slide 15: Business Forecast Fiscal Year Ending March 31, 2015
Business Forecast Fiscal Year Ending March 31, 2015 14
Slide 16: Business Forecast for FY2015
Business Forecast for FY2015 4Q Forecast Rate: USD1= 100 yen, EUR1= 135 yen (Unit : Billions of JPY) FY2014 FY2015 Result Forecast 1st H 2nd H Full 1st H 2nd H Full Forecast Forecast Forecast Net Sales 111.1 124.8 235.9 108.0 128.0 236.0 SE 75.6 87.4 163.1 73.0 81.5 154.5 FE 10.9 8.8 19.8 8.5 18.0 2
Slide 17: New Three-year Medium-term Management Plan Challenge2016
New Three-year Medium-term Management Plan “Challenge2016” （April 1, 2014 to March 31, 2017） 16
Slide 18: Review of Previous Medium-term Plan NextStage70 (1)
Review of the Previous Three-year Medium-term Management Plan “NextStage70” (1) Summary of the Previous Plan (FY2012/3 - FY2014/3) Fundamental policies: “Establishing a Stable Earnings Structure” and “Building a Foundation for New Growth” Numerical Targets: • Equity ratio above 50%, Reducing net i
Slide 19: Review of Previous Medium-term Plan NextStage70 (2)
Review of the previous Three-year Medium-term Management Plan “NextStage70” (2) (Unit : Billions of JPY) Business Vision2003 Vision2008 Restructuring NextStage70 Plan Operating Income Ratio 7.5% 10.5% 5.0% 5.2% 5.4% 10.1% 3.8% 9.4% -2.1% -2.4% -8.6% OT Sales MP FE 301.3bn. SE 279.8bn. OP ratio (%) 2
Slide 20: Review of Previous Medium-term Plan NextStage70 (3)
Review of the previous Three-year Medium-term Management Plan “NextStage70” (3) Equity ratio Interest-bearing debt (Unit : Billions of JPY) Equity ratio(%) Interest- bearing debt Cash & time deposits Net Interest- 46.8 41.9 38.7 37.2 76.6 41.6 36.7 55.2 34.4 32.2 32.8 45.9 29.8 28.1 32.3 30.6 30.0 2
Slide 21: Challenge2016 (1): Preconditions and Directions
New Three-year Medium-term Management Plan “Challenge2016” (1) 1. Preconditions and Directions for New Three-year Medium-term Management Plan External Environment Directions to move • Macroeconomic growth inclusive of risks forward • Independent stance >> Alliance stance • Change of the industry
Slide 22: Challenge2016 (2): Targets
New Three-year Medium-term Management Plan “Challenge2016”(2) 2. Targets Complete earnings structure reforms and achieve consistently higher earnings Achieve operating income to net sales of 10% or above in the final year of the plan Launch businesses in new fields Generate profits in each n
Slide 23: Challenge2016 (3): Fundamental Policies
New Three-year Medium-term Management Plan “Challenge2016”(3) 3. Fundamental Policies Enhance profitability through a holding company structure Build a high-profit business portfolio Promote balance sheet management Advance CSR management 22
Slide 24: Change to Holding Company Structure
Change to Holding Company Structure 23
Slide 25: Change to Holding Company Structure: Purpose, Contents, Schedule
Change to Holding company structure 1. Purpose Achievement of “Challenge2016” and further growth . Contents Demerger by absorption type company split . Schedule May 7, 2014 Establishment of preparatory subsidiaries (registration of incorporation) June 26, 2014 Resolution of ordinary general meeting
Slide 26: Outline of Change to Holding Company Structure
Outline of Change to Holding Company Structure Change to a holding company structure with split of three businesses, shared services operations and manufacturing support and contracting operations Holding Company （SCREEN Holdings Co., Ltd.) Manufacturing Shared SE FE MP Support & services Contractin