Taiyo Holdings Co., Ltd. · TSE:4626

Taiyo — Q2 FY2019 Earnings Presentation

22 slides from Taiyo's earnings presentation, Nov 2, 2018

  1. Slide 1: Consolidated Financial Result Digest FY2019 Q2

    Consolidated Financial Result Digest FY2019 Q2 (Fiscal Year Ending March 31, 2019) Z TAIYO HOLDINGS CO., LTD. November 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

  2. Slide 2: Our Reporting Segments

    1 Our Reporting Segments Electronics Materials Manufactures, stocks and markets chemicals for PWBs and other electronic components Medical and Pharmaceuticals Develops, manufactures, and markets pharmaceuticals and quasi-drugs Other Manufactures and markets dyes, pigments and other chemical products

  3. Slide 3: Terminology

    2 Terminology Term Definition PWB Printed wiring boards SR “Solder resist ink” or “Solder mask” PKG Semiconductor packages DF Dry film

  4. Slide 4: Classification of Product

    3 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

  5. Slide 5: FY2019 Q2 Overview

    4 FY2019 Q2 Overview 1 The realized average exchange rate for Q2 was JPY110.0/USD, weaker yen than company’s projection of JPY102.9/USD 2 Sales volume of dry film for PKG rose YoY while that of solder resist for rigid board materials slightly declined 3 TAIYO Pharma 13 long-term listed products are

  6. Slide 6: FY2019 Q2 Consolidated Financial Results

    5 FY2019 Q2 Consolidated Financial Results Result Summary Unit: JPY million FY2018 FY2019 FY2019 FY2019 Progress Q2 Q2 YoY % H1 full year rate result result forecast forecast Net sales 25,784 30,257 +4,473 +17% 30,500 99% 60,200 Operating 5,744 5,277 -467 -8% 5,100 103% 9,800 income Ordinary 5,690 5

  7. Slide 7: FY2019 Q2 Net Sales (YoY)

    6 FY2019 Q2 Net Sales (YoY) Analysis of Net Sales Unit: JPY million +3,072 +720 +1,038 -252 MNT・TMC -106 (newly consolidated) Medical and Decrease in Increase in Pharmaceuticals sales volume sales volume business of liquid SR of dry film SR Foreign currency fluctuation, change in product mix, etc. 2

  8. Slide 8: FY2019 Q2 Operating Income (YoY)

    7 FY2019 Q2 Operating Income (YoY)） Analysis of Operating Income Unit: JPY million +524 -450 Medical and Pharmaceuticals business *including amortization -59 -454 of sales rights +57 -85 Decrease in Increase in Increase in sales volume sales volume SGA expenses of liquid SR of dry film SR Foreign cu

  9. Slide 9: FY2019 Q2 Segment Information

    8 FY2019 Q2 Segment Information Sales by Segment (including inter-segment sales or transactions) Unit: JPY million FY2018 Q2 25,593 FY2019 Q2 25,049 3,072 1,633 735 ー Electronics Materials Medical and Pharmaceuticals Other Operating Income by Segment (including inter-segment sales or transactions) U

  10. Slide 10: FY2019 BS Highlights

    9 FY2019 BS Highlights BS (YoY) JPY millions Assets Liabilities and Equity 100,000 100,000 44,588 41,938 Cash & deposits 37,553 Liability 38,467 80,000 80,000 6,677 Inventories 5,946 60,000 60,000 17,840 18,600 Other Current Assets 40,000 40,000 73,023 74,544 Equity Fixed Assets 20,000 43,116 44,883

  11. Slide 11: FY2019 CF Highlights

    10 FY2019 CF Highlights CF (YoY) JPY millions Operating CF Investing CF Financing CF 5,000 0 0 (500) (886) (1,000) (1,907) 4,000 (1,000) (2,038) (2,000) 3,000 (5,467) 4,828 (1,500) (3,000) 4,807 2,000 (2,000) (4,000) 1,000 (2,500) (5,000) 0 (3,000) (6,000) FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 Q

  12. Slide 12: Electronics Materials Business

    11 Electronics Materials Business Sales Results by Product Group Category Unit: JPY million FY2017 Q2 FY2018 Q2 15,000 FY2019 Q2 10,903 10,775 10,123 10,000 6,400 6,637 6,492 6,065 5,144 5,000 4,531 1,312 1,442 865 835 1,053 819 0 Rigid(high-end) Rigid(regular) PKG Build-up/FPC Other ※ * Due to the

  13. Slide 13: Electronics Materials Business: Sales by Region

    12 Electronics Materials Business Sales by Region (including inter-regional sales or transactions) Unit: JPY million 14,000 FY2018 Q2 12,000 FY2019 Q2 10,000 8,000 6,000 11,078 11,494 4,000 8,870 10,074 2,000 4,579 4,427 5,035 5,172 2,061 2,053 0 Japan China Taiwan Korea Other ※ Operating Income by

  14. Slide 14: Trend of Quarterly Performance

    13 Trend of Quarterly Performance Net Sales & Operating Income Unit: JPY million Net sales（left axis） ● Operating income (right axis） 18,000 4,000 16,000 3,500 14,000 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) Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q

  15. Slide 15: Medical and Pharmaceutical Business Strategy

    Medical and Pharmaceutical Business Strategy

  16. Slide 16: Prospect of Medical and Pharmaceutical Business

    15 Prospect of Medical and Pharmaceutical Business

  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 情報通信(ICT)・モバイルアプリケーションの information トータルインテグレーター Company Thou-Management Corporation (“TMC”) Japanese 株式会社サウマネジメント Head Office OR Bldg, 1F, 3-23-3 Takadanobaba shinjuku-ku, Tokyo Stockholders Taiyo Holdings Co., Ltd. 100% Capital 5,000 thousand ye

  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 : There is an urgent need to renovate IT system and construct a new system in order to prevent from increasing maintenance cost and system failure risk consider to acquire a syst

  22. Slide 22: TAIYO HOLDINGS CO., LTD.

    TAIYO HOLDINGS CO., LTD. Copyright YO HOLDINGS CO., LTD. All Rights Reserved.

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