Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — H1 FY2009 Earnings Presentation
27 slides from Nihon Dempa Kogyo's earnings presentation, Nov 9, 2009
Slide 1: 1st Half Results of FY2009, ended March 31, 2010
1st Half Results of FY2009, ended March 31,2010 9th November, 2009 1
Slide 2: Contents
Contents st Ⅰ．1sthalf Ⅰ．1 halfresults resultsof ofFY2009, FY2009,ended endedMarch March31,2010 31,2010 Ⅱ. Correspond Ⅱ. Correspond with with the the polarized polarized needs needs １．For mass １．For mass products’ products’ needs needs （１）Mobile communications （１）Mobile communications （２）Audio visual
Slide 3: 1st half results of FY2009
Ⅰ．1st half results of FY2009 ➢ Points： １．Sales rose 35% compared to 2nd half of FY2008 and returned to the 85% level of 1st half of FY2008. 2．On the other hand, sales price keeps falling and sales remain at the 70% level of 1st half of FY2008. 3．Returned to profit that includes special factors such
Slide 4: Sales trend of main applications
Ⅰ． 1st half results of FY2009 ■Sales trend of main applications Sales (FY06 1H to FY09 1H) (Million Yen) 15,000 （Mobile Communications） （Audio Visual/Office Automation） 10,000 （Fixed Radio Communications） （Automotive Electronics） （Others） 5,000 0 FY06 FY06 FY07 FY07 FY08 FY08 FY09 1H 2H 1H 2H 1H 2H
Slide 5: Lowered break-even point
Ⅰ． 1st half results of FY2009 Lowered break-even point mainly by reduction of fixed cost such as depreciation. Sales Break-even point Fixed cost ratio Variable cost ratio 80,000 70% 70,000 65% 60,000 57.7% 60% 50,000 55% Million yen 56.1% 40,000 52.0% 50% 51.9% 50.4% 50.9% 48.8% 30,000 41.6% 45% 20,
Slide 6: Correspond with the polarized needs
Ⅱ．Correspond with the polarized needs Flattening & digitalizing society Inexpensive Highly networked consumer terminal system Price destruction at Component demand with high accuracy & advanced mass components function Everyone in the Correspond with the Support the world can gain polarized needs! g
Slide 7: For mass products' needs (Growing GDP in emerging countries)
Ⅱ.1 For mass product’ needs （Growing GDP in emerging countries） ■GDP in emerging countries such as China, India etc. will grow largely. Future GDP trend in main countries(～2050） Trillion US$ 80 Increase in demand for inexpensive 70 Consumer terminal is expected 60 China China 50 US India 40 Japan 30
Slide 8: Volume of crystal products will grow
Ⅱ.1 For mass products’ needs （Volume of crystal products will grow ） Semi-annual trend of the production volume of crystal products(100 mil units) The volume will grow steadily 100 mil of units 50 48 49 43 43 40 39 37 Optical product 34 32 Crystal filter 31 30 Clock oscillator Industrial oscillator
Slide 9: Value of crystal products grows slowly
Ⅱ.1 For mass products’ needs （Value of crystal products grows slowly ） Trend of the production value of crystal devices (billion yen) & unit price (index) Growth of the production value is struggling due to price decrease Billion yen 200 100 101 99 index 97 100 91 合計 83 77 76 Optical product 150 80
Slide 10: Mobile Communications (Growing GPS, smart phone)
Ⅱ.1(1) Mobile Communications （Growing GPS・smart phone） Volume of crystal products used for PLL Volume of crystal devices used for mobile of mobile phone (NDK estimate) phone additional functions (NDK estimate) Million units Million units 2,500 2,262 1,500 2,048 1,360 1,843 2,000 1,260 1,574 Addition
Slide 11: Audio Visual/Office Automation
Ⅱ.1(2) Audio Visual/Office Automation （Target the growing use/area） Production volume of Audio Visual/Office Production area of Audio Visual/Office Automation (NDK estimate) Automation Million Units Others 4,000 others North America (2008 forecast) 1% SSD 3,500 3,358 2% Latin America 3,002 DVD/BD 4%
Slide 12: Quartz crystal tuning fork
Ⅱ.1(3) Quartz crystal tuning fork Market trend in quartz crystal tuning fork (SMD) (NDK estimate) Reference：NDK Million units Switch from 3,500 120% cylinder 106% 107% 107% 104% SMDtype 3,000 93% 100% Compared to 2,500 last year 80% 2,000 60% ＜Trend ＜Trendininquartz quartzcrystal crystaltuning tunin
Slide 13: Production shift to overseas factories
Ⅱ.1(4) Production shift to overseas factories ■Production of mass products shift to Suzhou and Malaysia Overseas ・Utilize inexpensive labor power factories ・Reduce the influence of exchange fluctuations The labor cost between Suzhou and Malaysia Production for recovering orders tends to diminish wil
Slide 14: For high accuracy products' needs (Support the growing information)
Ⅱ.2 For high accuracy products’ needs （Support the growing information ） W/W Traffic trend 2,500,000 2009 to2013 Traffic will increase by 26-fold! Data P2P 2,000,000 Video Audio 1,500,000 TB/Month 1,000,000 500,000 0 2008 2009 2010 2011 2012 2013 （Reference：Cisco Systems） Especially, data of moving
Slide 15: Fixed Radio Communications (Expanding infrastructure market)
Ⅱ.2(1) Fixed Radio Communications （Expanding infrastructure market） Market trend of mobile Market volume of optical phone base station （shipment volume） communication devices (shipment volume） W/W W/WBase WDMStation Forecast SONET/SDH 2007-2012 Forecast W/W WDM SONET/SDH Forecast (k Units) (k Units)
Slide 16: Relationship with infrastructure companies
Ⅱ.2(1) Fixed Radio Communications （Relationship with infrastructure companies） Manufacturers of mobile phone Manufacturers of optical base stations （sales base） （sales base） communication devices W/W Mobility Infrastructure Market W/W Optical Communication Market 2009.1-3 2008.1-3 NORTEL 4% OTHERS A
Slide 17: As a core partner of Huawei
Ⅱ.2(1) Fixed Radio Communications （As a core partner of Huawei） Received “Excellence Global Core Partner” prize from Huawei 2009 global core partner convention was held on November 5 and NDK has been selected as a core partner of Huawei. This award is given to the top 10 suppliers among approx. 2000
Slide 18: Developed 1ppb OCXO
Ⅱ.2(1) Fixed Radio Communication （Developed 1ppb OCXO） October 2009 Developed single-oven OCXO with super high precision performance equivalent to double-oven OCXO NH37M28L series New technology made it possible to produce super high precision OCXO by single oven, frequency with temperature characte
Slide 19: Automotive (Correspond with new use & maintain high share)
Ⅱ.2(2) Automotive （Correspond with new use & maintain high share） Amount of crystal quartz used for auto by function Worldwide sales volume forecast of (NDK estimate) hybrid/electronic cars Million units 10 thousand units 475 1,400 1,297 500 1,244 1,178 1,200 1,087 400 , Fuel-cell cars 988 ITS relat
Slide 20: Maintain certain R&D expenses
Ⅲ. New technologies & products （Maintain certain R&D expenses） (Unit：million R&D expenses R&D expenses ratio Average of listed yen） against Sales manufacturer 3,000 6.0% 2,531 2,500 2,500 2,336 2,310 5.0% 2,189 2,000 4.0% 1,500 3.0% 1,000 2.0% 500 1.0% 0 0.0% 10/3 06/3 07/3 08/3 09/3 plan R&D expens
Slide 21: New technologies & products (Biosensor)
Ⅲ. New technologies & products （Biosensor） ＊ Now providing immune sensor system using crystal oscillators to leading research institutes & universities. (product name : NAPiCOS) ＊ Accomplished one of the world’s highest sensitivity (10ng/ml) and shortest time measuring (one fifth of the conventional
Slide 22: MEMS technologies for next generation
Ⅲ. New technologies & products （MEMS technologies for next generation） NDK is pursuing crystal device of small, high accuracy and advanced function by combining three technologies. The three technologies are the technology to develop crystal of high quality, the technology to process wafer, and the
Slide 23: Cutting-edge R&D
Ⅲ. New technologies & products （Cutting-edge R&D） Highly skilled engineers are engaged in the leading R&D regarding next generation frequency control and selection at this “Laboratory ATOM”. 《Laboratory ATOM》 Started operation from May 8, 2009 23
Slide 24: Finally (Cash flow)
Ⅳ．Finally （Cash flow） （Million yen） 09/3 08/9 09/9 Income before taxes ▲ 25,423 887 2,731 Depreciation 9,015 4,690 1,900 Change in receivables 5,852 ▲ 238 ▲ 2,596 Change in inventories 4,826 ▲ 853 ▲ 3,088 Change in trade payables ▲ 2,256 ▲ 303 1,787 Other, net ※ 14,365 ▲ 722 2,146 Operating cash flo
Slide 25: Upward revision for FY2009
Ⅳ. Finally （Upward revision for FY2009） Mobile Fixed Radio 80,000 20,000 Communications Communications 78,098 AV/OA Net sales Automotive 70,000 15,000 Others Electronics 60,000 59,170 10,000 100 mil yen 51,500 800 4.9% （Ratio against net sales） sales） 50,000 5,000 18.0% 40,000 0 600 5.0% +6,504 +3,5
Slide 26: NDK will be well prepared for after FY2009
Ⅳ. Finally （NDK will be well prepared for after FY2009） Might be too early to assume that market has fully recovered NDK will be prepared for a possible unstable future NDK will establish a stable foundation which will generate stable profit under the new environment after the Lehman shock 26
Slide 27: Thank you for your attention
Thank you for your attention. We are grateful for your continuous support. 【Note】 Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about our future performance.