Maxell, Ltd. · TSE:6810
Maxell — Hitachi Maxell — Q1 FY2007 Earnings Presentation
19 slides from Maxell's earnings presentation, Jul 30, 2007
Slide 1: Hitachi Maxell Consolidated Financial Results for the First Quarter of FY2007
Hitachi Maxell Consolidated Financial Results for the First Quarter of FY2007 (April 1, 2007-June 30, 2007) July 30, 2007 ©All Rights Reserved, Copyright 2007 Hitachi Maxell, Ltd.
Slide 2: Contents
Contents 1．Consolidated Financial Results for 1Q of FY2007 2．Topics 3．Projection of FY2007 ©All Rights Reserved, Copyright 2007 Hitachi Maxell, Ltd. 2
Slide 3: Consolidated Financial Results for 1Q of FY2007
1．Consolidated Financial Results for 1Q of FY2007 11-1. -1. Consolidated Financial Results for 1Q of FY2007 11-2. -2. Factor Analysis for 1Q of FY2007 （year on year FY2007（year ） year） 11-3. -3. Segment Information（year-on-year ） Information（year-on-year 11-4. -4. Segment Information（quater-on-quate
Slide 4: 1-1. Consolidated Financial Results for 1Q of FY2007
1-1. Consolidated Financial Results for 1Q of FY2007 (millions of yen) 1Q/FY06 1Q/FY07 change Net sales 48,867 50,766 +3.9% Operating income 1,386 554 -60.0% Ordinary income 1,554 1,068 -31.3% Net income 847 167 -80.3% Capital expenditure 1,925 2,920 +51.7% Depreciation 2,543 2,739 +7.7% R&D costs 2
Slide 5: 1-2. Factor Analysis for 1Q of FY2007 (year-on-year)
1-2. Factor Analysis for 1Q of FY2007 （year-on-year ） Change Factor Analysis (1Q/FY06→ 1Q/FY07) (100 millions of yen) ■ Sales Volume 24 +19 Unit price -31 (489→508) Exchange rate 26 ■ Operating income Volume 8 -8 Unit price -31 (14→6) Exchange rate 5 Cost reduction 10 and others ©All Rights Reserved
Slide 6: 1-3. Segment Information (year-on-year)
1-3. Segment Information（year-on-year ） (millions of yen) Sales Operating income (loss) 1Q/FY06 1Q/FY07 1Q/FY06 1Q/FY07 （ change ） （ change ） Information 28,614 27,969 1,375 461 Storage Media (-2.3%) (-914) Battery 10,715 12,938 439 368 (+20.7%) (-71) Material- Device-Electronic 9,538 9,859 -428 -27
Slide 7: 1-4. Segment Information (quarter-on-quarter)
1-4. Segment Information（ quater-on-quater ） (millions of yen) Sales Operating income (loss) 4Q/FY06 1Q/FY07 4Q/FY06 1Q/FY07 （ change ） （ change ） Information 27,538 27,969 1,538 461 Storage Media (+1.6%) (-1,077) Battery 11,860 12,938 1,025 368 (+9.1%) (-657) Material- Device-Electronic 9,425 9,859
Slide 8: 2. Topics
2．Topics 2-1．Three Priority Businesses 2-2．Core Business/Business Projects 2-3．Enhancement of Management Efficiency 2-4． Strengthen Functional Materials ©All Rights Reserved, Copyright 2007 Hitachi Maxell, Ltd. 8
Slide 9: 2-1. Three Priority Businesses
2-1. Three Priority Businesses Three Priority Business ■ Secondary Batteries：strong sales of cell phone, portable game Increased production capacity in lithium ion batteries (units/month) Oct.07’ 16.5M （Apr.06’ 10.5M→Dec.06’ 12.5M→Jun.07’ 14.5M） Batteries ■ Primary Batteries：sales rose for high-valu
Slide 10: 2-2. Core Businesses / Business Projects
2-2. Core Businesses / Business Projects Core Businesses ■ Despite of price decline, sales increased due to shipment growth and foreign exchange rate Computer tape ■ Launched LTO4(800GB) in April and its volume shipment will start from 2Q ■ DVD unit price declined more than initial expectation in do
Slide 11: 2-3. Enhancement of Management Efficiency
2-3. Enhancement of Management Efficiency Promoting MPI（Maxell Process Innovation）initiatives ■ Enhancement of management efficiency through innovation Objectives of management process （procurement-manufacture-sales） ■ Strengthen organization power Shorten lead time by making waste visible and elimi
Slide 12: 2-3. Enhancement of Management Efficiency
2-3. Enhancement of Management Efficiency Bolstering Value Engineering (VE) initiative Aggressive pursuit of a top-down approach to companywide Objective comprehensive cost reduction activities Lateral initiatives among development/business/sales divisions and Initiatives group companies by each the
Slide 13: 2-4. Strengthen Functional Materials
2-4. Strengthen Functional Materials Outline ■ Acquiring shares of Sliontec Corporation from Nomura Principal Finance Co., Ltd. ■ Numbers of shares to be acquired (plan)：93.45% ■ Agreement of LOI in accordance with Maxell’s resolution of the board of directors on July 27 Mid-term Business Plan ■ Bas
Slide 14: 2-4. Strengthen Functional Materials
2-4. Strengthen Functional Materials Company outline ■ Establishment in 1954, Adhesive related products ■ manufacturer ■ Core tech.： Pressure-sensitive-adhesion processes and Coating tech. ■ Major products： Adhesive tapes for electric and electronic parts, metallic foil, dicing applications and gene
Slide 15: 2-4. Strengthen Functional Materials: Anticipated synergy benefits
2-4. Strengthen Functional Materials Pursuing synergy benefits on the functional materials business through mutual operations Short term Synergy Midium-to-long term Synergy Anticipated synergy benefits •(M) Utilize pressure-sensitive-adhesion •(M) Utilize high-precise pressure Technology processes -
Slide 16: 3. Projection of FY2007
3．Projection of FY2007 ©All Rights Reserved, Copyright 2007 Hitachi Maxell, Ltd. 16
Slide 17: Projection of FY2007
Projection of FY2007 (millions of yen) (As of Aril 26) First Half Full Year Net sales 100,500 208,000 Operating income 1,000 4,000 Ordinary income 1,300 4,500 Net income 250 1,300 Exchange rate $1=¥110 $1=¥110 1Euro=¥140 1Euro=¥140 Regarding the acquisition of Sliontec shares, we will announce its f
Slide 18: Note: forward-looking statements
Note: This document contains forward-looking statements which reflect management's current views and judgments with respect to certain future plans, events and strategies based on currently available information and do not constitute promises, commitments or guarantees. The forward-looking statement
Slide 19: Reference: Major Business Lines
Reference : Major Business Lines Segment Main Products Computer tapes, Broadcasting video tapes, Information Blu-ray Discs, HD DVDs, DVDs, CDs, Storage Media MO Disks, Floppy Disks, MiniDiscs, Audio tapes, Video tapes Lithium ion rechargeable batteries, Coin-type lithium rechargeable batteries, Batt