Slide 1: Results Briefings of The Second Quarter of Fiscal Ending March 2012
Securities ID code:6859 ESPEC CORP. Results Briefings of The Second Quarter of Fiscal Ending March 2012 November 24, 2011
Slide 2: Table of Contents
Table of Contents Summary of ESPEC Business Financial Results of the Second Quarter of Fiscal Ending March 2012 Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 ESPEC Medium-term Manage
Slide 3: Summary of ESPEC Business
Summary of ESPEC Business Sales Main Products Market Use composition (2011/3 2Q) Temperature & humidity chamber Electronic component For R & D Walk-in type temperature & and equipment market For credibility Environmental Test humidity chamber Automobile market and evaluation Chambers Thermal shock c
Slide 4: Financial Results of the Second Quarter of Fiscal Ending March 2012
Financial Results of the Second Quarter of Fiscal Ending March 2012
Slide 5: Improved capital spending among major customers raised sales and orders
Financial Results of the Second Quarter of Fiscal Ending March 2012 Backed by the improvement in capital spending among major customers, the company posted an increase in both sales and in the amount of orders received from the previous period. Profit (Loss) Both sales and the amount of orders recei
Slide 6: Financial Results of the Second Quarter: income statement
Financial Results of the Second Quarter of Fiscal Ending March 2012 / / Rate of Change (Millions of yen) Composition Composition Net sales Cost of Net Sales Gross profit SG & A Operating income Non-operating income Non-operating expenses Ordinary income Extraordinary income Extraordinary loss Income
Slide 7: Operating income change analysis
Financial Results of the Second Quarter of Fiscal Ending March 2012 Equipment Business Service Business Other Business Elimination (million yen) expenses administrative Other selling and personnel expenses Selling, administrative, and Increase and decrease of R&D expenses the gross profit by the Com
Slide 8: Balance sheet
Financial Results of the Second Quarter of Fiscal Ending March 2012 (million yen) Assets Liabilities and Net assets Cash and deposits equipment Property, plant and Intangible assets other assets Investment and payable-trade Notes and accounts Other current assets Other current liabilities Net assets
Slide 9: Cash flow
Financial Results of the Second Quarter of Fiscal Ending March 2012 (million yen) Increase in funds Effects of exchange rate change on cash and cash equivalents Total financial cash flow Others Cash dividends paid Decrease in short- term loans payable Total investment cash flow Others Proceeds from
Slide 10: Analysis per Segment of the Second Quarter of Fiscal Ending March 2012
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012
Slide 11: Environmental Test Chambers, Energy Device, Semiconductor Equipment
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 Environmental Test Chambers In Japan, both the sales and amount of orders received increased largely from the same period of the previous year, backed by the upward trend in capital spending and R&D investment in domestic industr
Slide 12: Segment results: equipment business
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 (million yen) Initially projected figures Year on year Orders- Received Net Sales Operating Income [Profit ratio (%)]
Slide 13: After-sales Service, Commissioned Tests and Facility Rentals
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 (million yen) Initially projected Year on year figures Orders- Received Net Sales Operating Income [Profit ratio (%)] [ ] After-sales Service and Engineering After-sales service personnel worked in closer cooperation with sales p
Slide 14: Environmental Engineering and Plant Factory
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 (million yen) Initially Year on year projected figures Orders- Received Net Sales Operating Income [Profit ratio (%)] [ ] Environmental Engineering After the earthquake, many governmental agencies and other customers were pressed
Slide 15: Non-consolidated sales by market
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 Non-consolidated Othe r m ar k e ts Autom obile m ar k e t Flat pane l dis play m ar k e t Ele ctr onic de vice and e quipm e nt m ar k e t Se m iconductor m ar k e t
Slide 16: Sales by Region
Analysis per Segment of the Second Quarter of Fiscal Ending March 2012 Regional sales composition Sales by Region ratio in segment (million yen) < Exchange rate > 2012/3 2012/3 2Q Assumption of Assumption beginning of the year after revision U.S. dollar 85.00yen 79.19yen Won 0.07yen 0.0727yen Chines
Slide 17: Business Plan for the Second-half and Full-year Periods
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012
Slide 18: Full Fiscal Year Plan March 2012
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 Full Fiscal Year Plan March 2012 Full year (Plan) Full year First half Second half Result (Result) (Revision Plan) Initially projected (million yen) figures Orders-received Net sales Gross profit [Profit rat
Slide 19: Environmental Test Chambers, Energy Device, Semiconductor Equipment plans
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 Environmental Test Chambers Develop new customers and stimulate replacement demand among existing customers by launching the Platinous J Series, a new model of the company’s core product, a temperature and h
Slide 20: Equipment Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 Equipment Business (million yen) Full year (Plan) Second half First half (Result) (Revision Plan) Initially projected Revision Plan figures Orders- Received Net Sales Operating Income [Profit ratio (%)]
Slide 21: Service Business plan
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 (million yen) Full year (Plan) Second half First half (Result) Initially projected (Revision Plan) Revision Plan figures Orders- Received Net Sales Operating Income [Profit ratio (%)] After-sales Service and
Slide 22: Other Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2012 Other Business (million yen) Full year (Plan) Second half First half (Result) Initially projected (Revision Plan) Revision Plan figures Orders- Received Net Sales Operating Income [ ] [Profit ratio (%)] Envi
Slide 23: ESPEC Medium-term Management Plan Progressive Plan 2013
ESPEC Medium-term Management Plan “Progressive Plan 2013”
Slide 24: Business Climate Surrounding ESPEC
ESPEC Medium-term Management Plan “Progressive Plan 2013” Business Climate Surrounding ESPEC While the global economy remains fraught with uncertainties, investment in green innovation is likely to grow. Major changes in the business climate The rapid appreciation of the Japanese yen will accelerate
Slide 25: Policy and Target
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy and Target from fiscal 2011 to fiscal 2013 Basic Policy for the Medium Term Green Innovation is a Prime Business Opportunity for Reorienting Our Executive Management to Play Offense Targets for Consolidated Revenues and Earnings Fiscal
Slide 26: Change of Management figures
ESPEC Medium-term Management Plan “Progressive Plan 2013” Change of Management figures
Slide 27: Medium-term Management Policies
ESPEC Medium-term Management Plan “Progressive Plan 2013” Medium-term Management Policies Policy 1 Policy 2 Accelerate growth in the green technology market Accelerate growth in the green technology market Accelerate product development in response to technical -Strengthen the development, productio
Slide 28: Policy 1. Accelerate Growth in the Green Technology Market
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 1. Accelerate Growth in the Green Technology Market Background The “Green technology market” (the market for secondary batteries, solar batteries, and power semiconductors) is in the stage of growth and development, giving rise to a va
Slide 29: Policy 1. Accelerate Growth in the Green Technology Market
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 1. Accelerate Growth in the Green Technology Market Strategies geared toward the green technology market Management targets(Non-consolidated): Achieve sales of more than 6 billion yen on a non-consolidated basis in the green technology
Slide 30: Policy 2. Expand Overseas Business Operations Primarily in China and Asia
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 2. Expand Overseas Business Operations Primarily in China and Asia Focus on China and the rest of Asia as the most important market and take measures to cope with the appreciation of the yen. Target market Strategy Goal - Enhance produ
Slide 31: Policy 2. Overseas market strategy
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 2. Expand Overseas Business Operations Primarily in China and Asia Overseas market strategy for the environmental test business Management targets: Achieve overseas sales of more than 10.5 billion yen on a consolidated basis in FY2013,
Slide 32: Policy 3. Cultivate Japanese Markets in More Depth
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 3. Cultivate Japanese Markets in More Depth to Enhance Profitability Maximizing competitiveness in the domestic market to build a robust income base that will last for 10 years to come Target market Stage Product Demand Standard enviro
Slide 33: Policy 3. Domestic market strategy and development strategy
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 3. Cultivate Japanese Markets in More Depth to Enhance Profitability Domestic market strategy and Development strategy for the environmental test business Management target(Non-consolidated): Achieve 1.4 times more sales per employee t
Slide 34: Policy 4. Speed up Management and Business Activities
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 4. Speed up Management and Business Activities with Function and Process Reforms Manufacturing strategy Management target: Reduce the lead time for temperature and humidity chambers (for the new Platinous J Series) by 50%, from 57 days
Slide 35: Policy 4. Nurture Professional Talent and Empower Employees
ESPEC Medium-term Management Plan “Progressive Plan 2013” Policy 4. Nurture Professional Talent and Empower Employees with a Sense of Purpose and Achievement by Conducting Management in Step with the Times and Carrying out Systemic Reforms Organization and personnel strategy Main measures to be take
Slide 36: Plan of Capital Investment
ESPEC Medium-term Management Plan “Progressive Plan 2013” Plan of Capital Investment Basic principle: Allocate around 3% of sales to capital investment. Million yen Total amount of capital Purpose investment Reform in the manufacturing sector and the improvement of plant equipment Promotion of the B
Slide 37: Plan of Capital Investment (R&D Investment)
ESPEC Medium-term Management Plan “Progressive Plan 2013” Plan of Capital Investment (R&D Investment) Basic principle: Allocate around 6–7% of sales in the equipment business segment (5% of total sales) to R&D investment. Million yen Total amount of capital Purpose investment Development of products
Slide 38: Forward-looking statements and inquiries
These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f
Slide 39: Reference
ESMEC Reference
Slide 40: Company and Business Profile
Company and Business Profile
Slide 41: 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 42: Global Network
Company Profile Global Network U.S.A. EU ESPEC NORTH AMERICA, INC. ESPEC EUROPE GmbH ASIA JAPAN SHANGHAI ESPEC ENVIRONMENTAL ESPEC CORP. EQUIPMENT CORP. ESPEC TECHNO CORP. GUANGZHOU ESPEC ENVIRONMENTAL ESPEC KYUSHU CORP. EQUIPMENT CO., LTD. ESPEC MIC CORP. ESPEC ENVIRONMENTAL EQUIPMENT MIC FARM OHGU
Slide 43: [Equipment Business] History of Environmental Test
Equipment Business [Equipment 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 quali
Slide 44: [Equipment Business] Usage Case with Environmental Test Chambers
Equipment Business [Equipment Business] Usage Case with Environmental Test Chambers 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 Pro
Slide 45: [Equipment Business] Usage Case with Energy Device Equipment
[Equipment Business] Usage Case with Energy Device Equipment Energy Device Equipment Deal with devices for storing, producing, and controlling electricity, such as secondary and solar batteries and power semiconductors, known collectively as “energy devices,” and offer development/evaluation systems
Slide 46: [Equipment Business] 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 47: [Equipment Business] Usage Case with FPD Equipment
Equipment Business Completion Lamination Cell Process Assembly Process Orientation film Module Process baking process Seal stiffening process substrate Usage Case with FPD Equipment substrate TFT CF Drying/Anneal Anneal Transparent electrode Single Loading Plate Processing System TFT process formati
Slide 48: [Service Business]
Service Business [Service Business] After–sales 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 Commission
Slide 49: [Other Business] Environmental Engineering Business
Other Businesses [Other Business] Environmental Engineering Business Environmental Engineering Business Forest recovery Recovery of local forest by selecting species and planting out seedlings using potential natural vegetation data. Waterfront recovery Reconstruction of natural environment, develop
Slide 50: [Other Business] Plant Factory
[Other Business] Plant Factory Plant Factory Provision of various cultivation environments employing advanced environmental control technologies to control light, temperature, humidity, carbon dioxide, etc. Plantcellar Container plant factory Phyto-toron This compact vegetable This is a container-ty