Taiyo Holdings Co., Ltd. · TSE:4626

Taiyo — FY2018 Earnings Presentation

30 slides from Taiyo's earnings presentation, May 2, 2018

  1. Slide 1: Consolidated Financial Result Digest FY2018

    Consolidated Financial Result Digest FY2018 (Fiscal Year Ended March 31, 2018) Z TAIYO HOLDINGS CO., LTD. May 2, 2018 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 c

  2. Slide 2: Terminology

    1 Terminology Term Definition PWB Printed wiring boards SR “Solder resist ink” or “Solder mask” PKG Semiconductor packages

  3. Slide 3: Classification of Product

    2 Classification of Product Group Category Type Remarks high-end Rigid Liquid regular ・SR materials for insulation and surface PWB protection use PKG Liquid/Dry Film insulating materials FPC Liquid/Dry Film ・build-up materials for interlayer insulation and Build-up Liquid/Dry Film hole plugging use

  4. Slide 4: FY2018 Overview

    3 FY2018 Overview The realized average exchange rate for the full year was 1 JPY111/USD, in line with company's projection of JPY111/USD (announced February 2, 2018) Sales volume of regular rigid board materials declined, but sales 2 volume of dry film (DF) and flexible printed circuit (FPC) board m

  5. Slide 5: FY2018 Consolidated Financial Results

    4 FY2018 Consolidated Financial Results Results Summary JPY millions FY2017 FY2018 FY2018 * results results YoY % forecasts vs.forecasts Net sales 47,866 52,241 +4,375 +9% 51,300 +941 102% Operating 9,221 11,337 +2,116 +23% 10,800 +537 105% income Ordinary 9,202 11,199 +1,997 +22% 10,700 +499 105% i

  6. Slide 6: Extraordinary Loss Recorded in OTC

    5 Extraordinary Loss Recorded in OTC ＜Content of Extraordinary Loss ＞ Individual accounting Loss on valuation of stock of affiliated company : 4,174 million yen Consolidated accounting One-time amortization of goodwill : 3,278 million yen ＜ Background and Reasons for Recording the Extraordinary Loss

  7. Slide 7: FY2018 Net Sales (YoY)

    6 FY2018 Net Sales (YoY) Analysis of Net Sales JPY millions +2,861 +820 -453 +1,147 Medical & pharmaceutical Decrease in Increase in Foreign currency business sales volume sales volume fluctuation of liquid SR of dry film SR and Change in product mix, etc. 47,866 52,241 FY2017 FY2018

  8. Slide 8: FY2018 Operating Income (YoY)

    7 FY2018 Operating Income (YoY) Analysis of Operating Income JPY millions +1,701 +9 Medical & +629 pharmaceutical -223 business *including 353 million yen in amortization of sales rights Decrease in Increase in Foreign currency sales volume sales volume fluctuation of liquid SR of dry film SR and Ch

  9. Slide 9: FY2018 BS Highlights

    8 FY2018 BS Highlights BS (YoY) JPY millions Assets Liabilities and Equity 120,000 111,490 120,000 111,490 100,000 100,000 92,386 92,386 38,467 Liability 44,588 Cash & deposits 80,000 80,000 20,540 48,800 60,000 5,946 Inventories 60,000 17,840 Other Current Assets 40,000 4,416 40,000 71,846 73,023 E

  10. Slide 10: FY2018 CF Highlights

    9 FY2018 CF Highlights CF (YoY) JPY millions Operating CF Investing CF Financing CF 10,000 0 (1,063) 25,000 (5,000) 8,000 20,000 (10,000) 6,000 (24,161) 15,000 (15,000) 9,042 4,000 8,100 10,000 20,342 (20,000) 2,000 5,000 11,319 (25,000) 0 (30,000) 0 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 ・FY2017

  11. Slide 11: FY2018 Sales Results by Product Group Category

    10 FY2018 Sales Results by Product Group Category Sales Results by Product Group Category JPY millions FY2016 FY2017 25,000 FY2018 21,429 20,230 20,211 20,000 15,012 12,913 15,000 13,005 11,029 10,000 9,376 9,676 5,000 4,199 3,523 3,165 2,670 1,702 1,809 0 Rigid(high-end) Rigid(regular) PKG Built-up

  12. Slide 12: FY2018 Segment Information

    11 FY2018 Segment Information Sales by Segment (including inter-segment sales or transactions) JPY millions 25,000 FY2017 20,000 FY2018 15,000 10,000 20,618 21,539 17,917 19,807 5,000 10,042 9,116 8,825 10,271 4,076 4,979 0 Japan China Taiwan Korea Others Operating Income by Segment (including inter

  13. Slide 13: Trend of Quarterly Performance

    12 Trend of Quarterly Performance Net Sales & Operating Income JPY millions Net sales（left axis） ● Operating income (right axis） 16,000 4,000 14,000 3,500 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 (500) Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

  14. Slide 14: Medical and Pharmaceutical Business Strategy

    Medical and Pharmaceutical Business Strategy

  15. Slide 15: Areas where the Taiyo Group can Manifest its Strengths

    14 Areas where the Taiyo Group can Manifest its Strengths

  16. Slide 16: Future Plans

    eS long-term listed products @Domestic CMO to Global CMO ’ 15) Future Plans iz) S “ SS, 4 Aé 3 Rae 7 —p_P- <~ E Acquire or establish domestic factory Establish overseas factory @ Manufacture Japan-quality @Establish large factory in overseas pharmaceutical @Manufacture high quality product @ Manufac

  17. Slide 17: Mid-term Strategy

    16 Mid-term Strategy Long-term Listed Products ・Additional acquisition of manufacturing and sales rights for long-term listed products Manufacturing Factory ・Acquire factory and change the company’s owned long-term listed products manufacturing from outsourcing to in-house production ・Accumulate man

  18. Slide 18: Mid-term Plan of 13 Long-term Listed Products

    17 Mid-term Plan of 13 Long-term Listed Products JPY millions FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 August-March April-March April-March April-March April-March April-March (Year 0) (1st year) (2nd year) (3rd year) (4th year) (5th year) *1 *2 Net Sales 820 7,592 9,113 8,634 8,362 7,732 Gross Pro

  19. Slide 19: Acquisition of Systems Engineering Company

    Acquisition of Systems Engineering Company

  20. Slide 20: Acquisition of System Engineering Company

    19 Acquisition of System Engineering Company Company 「人 × 社会 × 技術」 information 未来を想造し “ デザイン ” する Global Gateway Company Company Micro Network Technologies Corp., (“MNT”) Japanese 株式会社マイクロネットワークテクノロジーズ Head Office 18F, Otemachi Financial City Grand Cube, 1-9-2 Otemachi Chiyoda-ku, Tokyo Stockholders

  21. Slide 21: Acquisition of System Engineering Company: Background and Effects

    20 Acquisition of System Engineering Company Background External factor : A chronic shortage of IT talent Internal factor : It has been 20 years since the last IT system installation. There is an urgent need to renovate IT system and construct a new system in order to prevent from increasing mainten

  22. Slide 22: FY2019 Financial Forecasts

    FY2019 Financial Forecasts @TAIYO HOLDINGS CO.,LTD.

  23. Slide 23: Electronics Market Forecasts

    22 Electronics Market Forecasts Production by the Global Electronics and IT industries Source: JEITA (December 19, 2017). Production Forecasts for the Global Electronics and Information Technology Industries, p4.

  24. Slide 24: FY2019 Financial Results Forecasts

    23 FY2019 Financial Results Forecasts Financial Results Forecasts JPY millions FY2019 FY2018 forecast FY2019 result (reference) vs. reference forecast vs. forecast Net sales 52,241 63,800 +11,559 +22% 60,200 +7,959 +15% Operationg income 11,337 11,400 +63 +1% 9,800 -1,537 -14% Ordinary income 11,199

  25. Slide 25: FY2019 Net Sales Forecast (YoY)

    24 FY2019 Net Sales Forecast (YoY) Net Sales Forecast JPY millions +1,500 -3,600 +6,772 MNT （newly consolidated Foreign currency subsidiary company） fluctuation +3,287 Medical & pharmaceutical Increase in sales business volume of SR, change in product mix, etc. 52,241 63,800 60,200 FY2018 FY2019 FY2

  26. Slide 26: FY2019 Operating Income Forecast (YoY)

    25 FY2019 Operating Income Forecast (YoY) Operating Income Forecast JPY millions +1,206 -700 -343 -100 -1,600 Increase in Increase in sales Medical & SGA expenses of SR, pharmaceutical change in business *including 1,411 Foreign currency product mix million yen in amortization fluctuation of sales r

  27. Slide 27: Trend of Financial Results

    26 Trend of Financial Results Trend of Financial Results JPY millions Net sales（left axis） ● Operating income（right axis） ● Net income（right axis） 70,000 60,200 14,000 60,000 9,800 12,000 50,000 10,000 40,000 8,000 30,000 6,000 6,700 20,000 4,000 10,000 2,000 0 0

  28. Slide 28: Capital Investment & Depreciation

    27 Capital Investment & Depreciation Trend of Capital Investment & Depreciation JPY millions Capital investment Depreciation 4,500 4,000 3,500 3,000 2,485 2,500 *2 1,891 1,941 2,000 4,055 1,411 1,181 3,321 1,500 1,046 1,003 2,555 1,000 1,722 1,565 500 *1 682 605 0 FY2012 FY2013 FY2014 FY2015 FY2016

  29. Slide 29: (Reference) News Topic

    28 (Reference) News Topic On April 10, 2018, Apple announced that “Nine More Apple Suppliers Commit to 100 Percent Clean Energy Production”*1 *１ Source: Apple’s press release on April 10, 2018 https://www.apple.com/newsroom/2018/04/apple-now-globally-powered-by-100-percent-renewable-energy/ （Excerpt

  30. Slide 30: Next Stage

    ext ST "NEXT STAGE ~ & AZ TAIYO HOLDINGS CO., LTD. Copyright YO HOLDINGS CO., LTD. All Rights Reserved.

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