Slide 1: Results Briefings for Fiscal Ending March 2011
Securities ID code:6859 ESPEC CORP. Results Briefings for Fiscal Ending March 2011 Ma 25, 2011
Slide 2: Table of Contents
Table of Contents Summary Summaryof ofESPEC ESPECBusiness Business Business BusinessResult Resultfor forFiscal FiscalEnding EndingMarch March2011 2011 Analysis Analysisper perSegment Segmentfor forFiscal Fiscal Ending EndingMarch March2011 2011 Management Managementpolicy policyand andBusiness Busin
Slide 3: Summary of ESPEC Business
Summary of ESPEC Business Sales Main Products Market Use composition (2011/3) Temperature & humidity Electronic component chamber For R & D and equipment market Walk-in type temperature & For credibility Environmental Automobile market humidity chamber and evaluation Semiconductor Equipment Business
Slide 4: Business Result for Fiscal Ending March 2011
Business Result for Fiscal Ending March 2011
Slide 5: Consequences of the Great East Japan Earthquake
Business Result for Fiscal Ending March 2011 Consequences of the Great East Japan Earthquake Damage and impact of the earthquake on the ESPEC Group No Noloss lossof oflife/injury life/injurywas wassustained sustainedby byany anyof ofthe theemployees employeesof ofthe theESPEC ESPECGroup Groupor orth
Slide 6: Financial Highlights
Business Result for Fiscal Ending March 2011 Financial Highlights Backed by improvement in capital spending among major customers, the company posted an increase in income and restored profitability Profit (Loss) The Thecompany companyposted postedaasharp sharpincrease increaseininboth boththe thesa
Slide 7: Summary of Profits and Losses
Business Result for Fiscal Ending March 2011 Summary of Profits and Losses 2010/3 2011/3 Rate of Change (millions of yen, %) Composition Composition Net sales Cost of Sales Gross profit Selling, general and administrative expenses Operating income (loss) Non-operating income Non-operating expenses O
Slide 8: Analysis of Operating Income
Business Result for Fiscal Ending March 2011 Analysis of Operating Income Equipment Business Service Business Increase and Decrease Factor Other Business Elimination (millions of yen) Increase and decrease of the gross profit by the fluctuation of the net sales personnel expenses Selling, administra
Slide 9: Balance Sheet
Business Result for Fiscal Ending March 2011 (millions of yen) Assets Liabilities and equity Other current assets Property, plant and equipment Intangible assets Investment and other assets Noncurrent liabilities Net assets Other current liabilities Notes and accounts receivable-trade Notes and acco
Slide 10: Statement of Cash Flow
Business Result for Fiscal Ending March 2011 (millions of yen) Increase in funds Effect of exchange rate change on cash and cash equivalents Total financial cash flow Purchase of treasury stock Cash dividends paid Increase and decrease in short-term loans payable Total investment cash flow Proceeds
Slide 11: Analysis per Segment for Fiscal Ending March 2011
Analysis per Segment for Fiscal Ending March 2011
Slide 12: Analysis of Variance between Planned and Actual Results
Analysis per Segment for Fiscal Ending March 2010 Analysis of Variance between Equipment Business Service Business Planned and Actual Results Other Business Elimination (millions of yen) Net sales Operating income Initial forecast Full year results Initial forecast Full year results The Thecompany c
Slide 13: Equipment Business
Analysis per Segment for Fiscal Ending March 2011 Equipment Business Environmental Test Chambers Energy-saving models of major products, such as thermal shock chambers and temperature and humidity chambers, were developed. Battery production equipment and other products were newly developed and laun
Slide 14: Equipment Business
Analysis per Segment for Fiscal Ending March 2011 Equipment Business Initial forecast (millions of yen) The Initial forecast ratio Orders- Received Net Sales Operating Income [Profit ratio (%)]
Slide 15: Service Business
Analysis per Segment for Fiscal Ending March 2011 Service Business Initial forecast (millions of yen) The Initial forecast ratio Orders- Received Net Sales Operating Income [Profit ratio (%)] [ ] After-sales Service and Engineering The amount of orders received increased from the previous period bac
Slide 16: Environmental Engineering, New Business
Analysis per Segment for Fiscal Ending March 2011 Initial forecast (millions of yen) The Initial forecast ratio Orders- Received Net Sales Operating Income [Profit ratio (%)] [ ] Environmental Engineering, New Business The vegetation factory business remained solid, and both the sales and amount of
Slide 17: Breakdown of Sales by Market
Analysis per Segment for Fiscal Ending March 2011 Non-consolidated Other markets Automobile market Breakdown of sales in Flat panel display market Environmental Test Chambers Electronic device and equipment market by market Semiconductor market 100% 100% 13 14 24 24 27 29 80% 15 17 80% 12 14 17 13 1
Slide 18: Sales by Region
Analysis per Segment for Fiscal Ending March 2011 Regional sales composition Sales by Region ratio in segment (millions of yen) Overseas sales ratio 35.1% 34,914 34,914 29,589 29,589 11/3 23,775 23,775 < Non-consolidated > 10/3 11/3 (yen) (yen) U.S. ollar 93.62 87.83 Euro 13.72 12.99 Won 12.08 11.31
Slide 19: Management Policy and Business Plan March 2012
Management policy and Business Plan March 2012
Slide 20: Business Climate Surrounding ESPEC
Management policy and Business Plan March 2012 Business Climate Surrounding ESPEC While the Japanese economy is faced with many uncertainties, investment in green innovation is likely to grow. Major changes in the business climate The Theincreasing increasingglobalization globalizationof ofJapanese
Slide 21: Management Policy
Management policy and Business Plan March 2012 Management Policy Basic policy Creation of “Powerful Products” and “Powerful Factories” Key Strategies Promote Promotethe thesales salesof ofproducts productsthat thatare arebetter bettertailored tailoredto tonew new customer customerneeds needsand ande
Slide 22: Key Strategies
Management policy and Business Plan March 2012 Key Strategies Promote the sales of products that are better tailored to new customer needs and enhance the ability to meet the increasing need for customized products The company will promote the sales of the energy-saving models of its thermal shock c
Slide 23: Key Strategies
Management policy and Business Plan March 2012 Key Strategies Increase sales in the green technology market The company will promote the sales of products and services for development, evaluation, production, and inspection processes in the green technology market, the market for secondary and solar
Slide 24: Key Strategies
Management policy and Business Plan March 2012 Key Strategies Improve the ability to meet customer needs by capitalizing on the consolidation of the two subsidiary companies. Meanwhile, increase profit by streamlining the business processes The company will maximize the synergies from the consolidat
Slide 25: Full Fiscal Year Plan March 2012
Management policy and Business Plan March 2012 Full Fiscal Year Plan March 2012 2011/3 (Results) 2012/3 (Plan) Second Quarter Fiscal Second Fiscal 2Q on 2Q Year on year (millions of yen) Quarter ratio ratio Orders-received Net sales Gross profit [Profit ratio (%)] Operating income (loss) [Profit rat
Slide 26: Equipment Business
Management policy and Business Plan March 2012 Equipment Business Environmental Test Chambers Stimulate replacement demand among existing customers by launching the energy- efficient models of major products. Enhance the ease of customization and improve the cost-to-sales ratio. Put special focus on
Slide 27: Equipment Business
Management policy and Business Plan March 2012 Equipment Business 2011/3 (Result) 2012/3 (Plan) Second Quarter Fiscal Second (millions of yen) Fiscal Quarter 2Q on 2Q ratio Year on year ratio Orders- Received Net sales Operating income [Profit ratio (%)] [ ] [ ]
Slide 28: Service Business
Management policy and Business Plan March 2012 Service Business 2011/3 (Result) 2012/3 (Plan) Second Second Quarter Fiscal Fiscal (millions of yen) Quarter 2Q on 2Q ratio Year on year ratio Orders- Received Net sales Operating income [Profit ratio (%)] [ ] After-sales Service and Engineering Apply a
Slide 29: Environmental Engineering New Business
Management policy and Business Plan March 2012 2011/3 (Result) 2012/3 (Plan) Second Second Quarter Fiscal Quarter Fiscal 2Q on 2Q Year on year (millions of yen) ratio ratio Orders-Received Net sales Operating income [Profit ratio (%)] Environmental Engineering Promote sales in the sectors of forest
Slide 30: Dividends
Management policy and Business Plan March 2012 Dividends Dividend policy Recognizing that passing on profits to our shareholders is a key priority and that raising corporate value on a lasting basis is fundamental to raising shareholder value, dividends are decided taking into account sustainability
Slide 31: Toward Sustained Growth and Development
Management policy and Business Plan March 2012 Toward Sustained Growth and Development Take green innovation as a golden business opportunity to affect a shift to more “proactive management.” the Great Global East Japan recession Earthquake FY2008 FY2009 FY2010 FY2011 Period of emergency action NEW
Slide 32: Forward-looking statements and inquiries
These Thesematerials materialscontain containforward-looking forward-lookingstatements, statements,including includingthe the Company’s Company’spresent presentplans plansand andforecasts forecastsof ofperformance, performance,that that reflect the Company’s plans and forecasts based on reflect the
Slide 33: Reference
ESPEC Reference
Slide 34: Company and Business Profile
Company and Business Profile
Slide 35: Company Profile
Company Profile Company Profile Name ESPEC CORP. Head Office 3-5-6, Tenjinbashi, Kita-ku, Osaka Represented By Masaaki Ishida Established July 25,1947 Incorporated January 13,1954 Paid-up Capital ¥6,895Million Shares Issued 23,781,394 Shares Employees 1,298 (consolidated) Main Business Manufacture a
Slide 36: Global Network
Company Profile Global Network U.S.A. U.S.A. EU EU ESPEC ESPEC NORTH NORTH AMERICA, AMERICA, INC. INC. ESPEC ESPEC EUROPE EUROPE GmbH GmbH ASIA ASIA JAPAN JAPAN SHANGHAI SHANGHAI ESPEC ESPEC ENVIRONMENTAL ENVIRONMENTAL ESPEC ESPEC CORP. CORP. EQUIPMENT CORP. EQUIPMENT CORP. ESPEC ESPEC TECHNO TECHNO
Slide 37: History of Environmental Test
Environmental Test Business History of Environmental Test What is Environmental Test Test to analyze and evaluate effects of environmental factors such as temperature, humidity, pressure, and light on various industrial products like electronic components in order to ensure product quality. <During
Slide 38: Usage Case with Environmental Test Chamber
Equipment Business [Equipment Business] Usage Case with Environmental Test Chamber Car Navigation (GPS) Compact Size Motor Secondary Cell Secondary Cell (Battery) Power Device In-vehicle Sensor Representative Examples In-vehicle for Environmental Testing Sensor Device Process/Test Condition Our Prod
Slide 39: Usage Case with Semiconductor Equipment
Equipment Business [Equipment Business] Usage Case with Semiconductor Equipment Screening Used for inspection in the manufacture of semiconductor devices to ensure product reliability suitable for mass production Semiconductors Heat load Burn-in chamber Elimination of latent early failures Reliabili
Slide 40: Usage Case with FPD Equipment
Equipment Business Completion Completion Lamination Cell Process Assembly Process Orientation film Module Process baking process Seal stiffening process substrate substrate Usage Case with FPD Equipment substrate TFT TFT CF Drying/Anneal Anneal Transparent electrode Single Loading Plate Processing S
Slide 41: Service Business
Service Business [Service Business] After Service and Engineering Preventive maintenance of products, maintenance service, and the upgrading/improvement and installation/relocation of products Well-developed domestic and overseas networks Technical service available around-the-clock Commissioned Tes
Slide 42: Other Business
Other Businesses [Other Business] Forest Recovery Waterfront Recovery Seedling-based forest recovery Bestmann plant-based waterfront technology recovery system Recovery of local forest by selecting Reconstruction of natural environment, species and planting out seedlings using development of vegetat
Slide 43: Usage Case with plant factory
Other Businesses [Other Business] Usage Case with plant factory Plant factories are attracting greater attention against the backdrop of the growing awareness of food safety/security among consumers and because of concern over the increase of extreme weather, which is considered a by-product of glob