Slide 1: Results Briefings of the Second Quarter of Fiscal Ending March 2011
Securities ID code:6859 ESPEC CORP. Results Briefings of The Second Quarter of Fiscal Ending March 2011 November 25, 2010 www.espec.co.jp Copyright (C) 2010 ESPEC CORP. All rights reserved 1
Slide 2: Table of Contents
Table of Contents Summary of ESPEC Business Financial Results of the Second Quarter of Fiscal Ending March 2011 Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Progress of Key Strategy March 2011 Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending
Slide 3: Segment Change
Summary of ESPEC Business Segment Change Business segments were changed in April 2010 according to type of business. Fiscal Year ended March, 2010 Fiscal Year ending March, 2011 Environmental Test Business Equipment Business ■Environmental Test Chamber ■Environmental Test Chamber ■After Service and
Slide 4: Equipment Business
Summary of ESPEC Business Individual Business Market / Use Sales Main Products Market Use composition (2011/3 2Q) ・Temperature & humidity chamber ・Semiconductor ・For R & D ・Walk-in type temperature & market ・For credibility Environmental humidity chamber ・FPD market and evaluation Equipment Business
Slide 5: Financial Results of the Second Quarter of Fiscal Ending March 2011
Financial Results of the Second Quarter of Fiscal Ending March 2011 Copyright (C) 2010 ESPEC CORP. All rights reserved 5
Slide 6: Financial Highlights
Financial Results of the Second Quarter of Fiscal Ending March 2011 Financial Highlights Backed by the improvement in capital spending, the business results during the period under review show a drastic increase from the same period of the previous year. Profit (Loss) ■The company revised its busine
Slide 7: Summary of Profits and Losses
Financial Results of the Second Quarter of Fiscal Ending March 2011 Summary of Profits and Losses ２０１０/３ ２０１０/３ ２Ｑ ２０１１/３ ２Ｑ Rate of (Millions of yen) Composition Composition Composition Change Net sales ２３，７７５ １００．０ ９，４３３ １００．０ １２，９１６ １００．０ ３６．９％ Cost of Net Sales １７，１４８ ７２．１ ７，１０３ ７５．３ ８，７９２ ６８．１
Slide 8: Analysis of Operating Income Increase and Decrease Factor
Financial Results of the Second Quarter of Fiscal Ending March 2011 Analysis of Operating Income Equipment Business Service Business Increase and Decrease Factor Other Business＋Elimination (million yen) Increase and decrease of Increase and decrease of Increase and decrease of the gross profit by th
Slide 9: Changes in Balance Sheets
Financial Results of the Second Quarter of Fiscal Ending March 2011 Changes in Balance Sheets (million yen) Assets Liabilities and Net assets △149 △99 △291 70 395 798 608 △433 △87 1,000 equipment Property, plant and Intangible assets Short-term loans payable other assets Investment and Net assets Ot
Slide 10: Statement of Cash Flow
Financial Results of the Second Quarter of Fiscal Ending March 2011 (million yen) 716 Increase in funds △71 △10 △11 △43 Effects of exchange rate change on cash and cash equivalents Total financial cash flow Others Cash dividends paid Increase and decrease in 70 short-term loans payable △80 Total inv
Slide 11: Analysis per Segment of the Second Quarter of Fiscal Ending March 2011
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Copyright (C) 2010 ESPEC CORP. All rights reserved 11
Slide 12: Variation Analysis on the Period First Plan and Second Quarter Results
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Variation Analysis on The period First Equipment Business Service Business Plan and The Second Quarter Results Other Business＋Elimination (million yen) Sales Operating income 122 884 △90 0 217 12,916 550 12,000 233 100 ＋916 ＋450
Slide 13: Equipment Business
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Equipment Business ２０１１／３ ２Ｑ Change from the First Plan (million yen) First Plan Environmental Test Chamber １０，０３０ １４．０％ ８，８００ Orders- Semiconductor Equipment １，６７５ ２８．８％ １，３００ Received FPD Equipment ４３７ ４５．７％ ３００ Total １１，９９６ １５
Slide 14: Equipment Business
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Equipment Business Environmental Test Chamber ■ Design and production processes for customized products were reinforced, focusing on the energy market. ■Replacement demand for new energy-efficient models was stimulated among exis
Slide 15: Service Business
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Service Business ２０１１／３ ２Q Change from First Plan (million yen) the First Plan After Service １，９８７ ２８．２％ １，５５０ Orders- Commissioned Test ７２４ １１．４％ ６５０ Received Total ２，７１１ ２３．２％ ２，２００ After Service １，６９１ ９．１％ １，５５０ Net sales Comm
Slide 16: Other Business
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Other Business ２０１１／３ ２Q Change from First Plan (million yen) the First Plan Orders- Received ４６３ ７．７％ ４３０ Net Sales ３８１ △１３．４％ ４４０ Operating Income △３２ △３０ (loss) －％ [Profit ratio (%)] [－％] [－％] Environmental Engineering, New Bu
Slide 17: Top Users in Terms of Value of Sales by Segment
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Top Users in Terms of Value of Sales by Segment Non-consolidated *Listed in alphabetical order Environmental Test Chamber Semiconductor Equipment Canon Inc. (Japan) DENSO CORPORATION (Japan) Honda R&D Co., Ltd. (Japan) Powertech
Slide 18: Breakdown of Sales by Market
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Breakdown of Sales by Market Non-consolidated Othe r m ark e ts Breakdown of sales in Environmental Test Chamber Autom obile m ark e t by market Flat pane l dis play m ark e t 100% Ele ctronic de vice and e quipm e nt m ark e t S
Slide 19: Sales by Region
Analysis per Segment of the Second Quarter of Fiscal Ending March 2011 Sales by Region Regional sales composition Sales by Region ratio in segment (million yen) Japan Taiwan Overseas sales ratio：37.2% 20,000 18,402 China/Hong Kong Korea Japan 5.5% Taiwan 812 Eurppe/America Others 10.7% China/Hong Ko
Slide 20: Progress of Key Strategy March 2011
Progress of Key Strategy March 2011 Copyright (C) 2010 ESPEC CORP. All rights reserved 20
Slide 21: Management Policy
Management policy and Strategy March 2011 Management Policy Establishing overwhelming business competitiveness through the concentration of cross-group synergy and innovation Key Strategies Re-building domestic competitiveness through reform of “production, sales and technology” from a customer pers
Slide 22: Re-building domestic competitiveness through reform of production, sales and technology
Management policy and Strategy March 2011 Re-building domestic competitiveness through reform of “production, sales and technology” from a customer perspective Developing new customers and markets, and restructuring the revenue base by enhancing strength in: production, sales, and technology Sales ■
Slide 23: Product and Service Development: strengthening capability in technology and R&D (1)
Management policy and Strategy March 2011 Product and Service Development: strengthening capability in technology and R&D（1） Launch high-quality products and services in the market earlier Product Product name Market-launch Features category time Battery Charge-Discharge Launched in Employs a double
Slide 24: Product and Service Development: strengthening capability in technology and R&D (2)
Management policy and Strategy March 2011 Product and Service Development: strengthening capability in technology and R&D（2） Customer need for products Products differentiated in terms of that consume less energy energy efficiency and total price High temperature and high Thermal Shock Chamber humid
Slide 25: Product and Service Development: strengthening capability in technology and R&D (3)
Management policy and Strategy March 2011 Product and Service Development: strengthening capability in technology and R&D（3) Constant Climate Cabinet Pattern Manager Web Manager Pattern Manager This product is designed for editing and executing the patterns of test program operation, as well as for
Slide 26: Proactive development of overseas growth markets
Management policy and Strategy March 2011 Proactive development of overseas growth markets Take positive action to develop business within the growth markets in China and other emerging economies in Asia, in order to increase revenue. Enhancing corporate capabilities by reorganizing the formation of
Slide 27: Expansion of new business fields with a view to growth
Management policy and Strategy March 2011 Expansion of new business fields with a view to growth Expand business into new growth markets/areas and develop new business themes. Increasing sales of battery production equipment ■Develop and offer for sale new equipment for the production of secondary a
Slide 28: Radical reform of the revenue base in order to restore profitability
Management policy and Strategy March 2011 Radical reform of the revenue base in order to restore profitability Regain profitability by management rationalization and completing a drastic reform of the revenue base. Promoting cost reduction Reduce costs by ■Reduce the cost of production by further im
Slide 29: Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Copyright (C) 2010 ESPEC CORP. All rights reserved 29
Slide 30: Business environment and measures to be taken in the second half of the fiscal year
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Business environment and measures to be taken in the second half of the fiscal year While the economic situation remains uncertain, the company’s major customers are steadily improving performance. Negative
Slide 31: Full Fiscal Year Plan March 2011
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Full Fiscal Year Plan March 2011 ２０１０／３ ２０１１／３ Full year (Plan) Full year First half Second half (million yen) First Plan （Result） (Result) (Plan) Change from the First Plan Orders-received ２２，９８９ １５，１０１ １４，
Slide 32: Equipment Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Equipment Business Environmental Test Chamber ■Stimulate replacement demand among existing customers by launching energy-efficient models of major products. ■ Expand business into non-electronics markets (es
Slide 33: Equipment Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Equipment Business ２０１１／３ (million yen) First half Second Full year (Plan) (Result) half (Plan) First Plan Change from the First Plan Environmental Test １０，０３０ ９，７７０ １９，８００ １０．３％ １７，９５０ Chamber Semiconductor
Slide 34: Service Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Service Business ２０１１／３ (million yen) First half Second Full year (Plan) (Result) half (Plan) Change from the First Plan First Plan After Service １，９８７ １，８１３ ３，８００ ７．０％ ３，５５０ Orders- Commissioned ７２４ ６７６ １，４
Slide 35: Other Business
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Other Business ２０１１／３ Full year (Plan) (million yen) First half Second half First Plan (Result) (Plan) Change from the First Plan Orders- ４６３ ７３７ １，２００ ３３．３％ ９００ Received Net sales ３８１ ８１９ １，２００ ２０．０％ １，０００
Slide 36: Toward Sustained Growth and Development
Business Plan for the Second-half and Full-year Periods of the Fiscal Year Ending March 2011 Toward Sustained Growth and Development Become a company that has an impressive presence despite being small in size. FY2008 FY2009 FY2010 FY2011 Global recession Period of emergency action Restructuring of
Slide 37: 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 38: Reference
Reference Copyright (C) 2010 ESPEC CORP. All rights reserved 38
Slide 39: Company and Business Profile
Company and Business Profile Copyright (C) 2010 ESPEC CORP. All rights reserved 39
Slide 40: Company Profile
Company Profile Company Profile Name ESPEC CORP. Head Office 3-5-6, Tenjinbashi, Kita-ku, Osaka Represented By Nobuyosh Shin Established July 25,1947 Incorporated January 13,1954 Paid-up Capital ¥6,895Million Shares Issued 23,781,394 Shares Employees 1,301 (consolidated) Main Business Manufacture an
Slide 41: 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
Slide 42: [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 43: [Equipment Business] Usage Case with Environmental Test Chamber
Equipment Business [Equipment Business] Usage Case with Environmental Test Chamber Car Navigation (GPS) Compact Size Motor ＣＣＤ ＥＣＵ Secondary Cell Secondary Cell (Battery) Power Device In-vehicle ＬＥＤ Sensor ＥＣＵ Representative Examples In-vehicle for Environmental Testing Sensor Device Process/Test Co
Slide 44: [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 Rel
Slide 45: 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 45 Drying/Anneal Anneal Transparent electrode 【Single Loading Plate Processing System TFT process 【
Slide 46: [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
Slide 47: [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 veget
Slide 48: [Other Business] 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