Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — FY2005 Earnings Presentation
45 slides from Nihon Dempa Kogyo's earnings presentation, May 10, 2006
Slide 1: Results for the year ended March, 2006
2006年3月期 決算説明会資料 Results for the year ended 日時： March, 2006 2006年5月10日（水） 場所： 東証Arrows 0
Slide 2: Contents
Contents 1. Aiming for the No.1 Brand 2. Summary of results for year ended March, 2006 1
Slide 3: 1. Aiming for the No.1 Brand
Crystal Bridge to the Future 1. Aiming for the No.1 Brand
Slide 4: Aiming for the No.1 Brand: Contents
1．Aiming for the No.1 Brand <Contents> NDK’s philosophy and core mission NDK’s core competence - To meet various needs of various customers Market information - Industry trend/Existing market /New businesses 3
Slide 5: NDK's philosophy
NDK’s philosophy Contributing to the prosperity of society and world peace through our service to customers Global environmental conservation and human happiness Increasing borderless No.1 Brand economic activities Realizing CS No.1 Supplier 4
Slide 6: NDK Management Policy
NDK Management Policy １ NDK is aware of her mission and responsibility as the top manufacturer in the world, leading the crystal products ２ NDK provides high quality service to customer while staying ahead of the marketplace. industry. ３ Core-Mission NDK is seeking an easier-to-use and more stable o
Slide 7: The successful expansion of crystals in every field
The successful expansion of crystals in every field Highly precise & stable crystals Miniaturization leads play an important role in every corner of society to an affluent society 6
Slide 8: To meet various needs of various customers
1．Aiming for the No.1 Brand <Contents> NDK’s philosophy and core mission NDK’s core competence - To meet various needs of various customers Activity status in each market 1. Industry trend 2. Existing markets 3. Activities for new businesses
Slide 9: Customers and needs vary according to the market
Customers and needs vary according to the market Infrastructure transducers Automotive Ultrasonic Mobile OA/AV 5 to 1 to Project period 2 years 3 months 長 2 years 長 10 years 2 years Frequency of Med Low High Med Med technical service Number of customers Med 中 to Low High Low Low Low From 100Kpcs to
Slide 10: Market information
1．Aiming for the No.1 Brand <Contents> NDK’s philosophy and core mission NDK’s core competence - To meet various needs of various customers - Market information 1. Industry trend 2. Existing markets 3. Activities for new businesses
Slide 11: Industry trend (1): production volume of crystal devices
Industry trend (1) Trend of the production volume of crystal devices 70 65 59 ← Optical product ←Crystal filter 60 ←Clock oscillator 51 53 ←Oscillator for industrial use 50 47 Volume (100 million) 生 46 ←Crystal units for consumer 産 数 40 37 量 34 33 ←Crystal units for automotive （ 30 electronics 億 30
Slide 12: Industry trend (2): production value of crystal devices
Industry trend (2) Trend of the production value of crystal devices 3,000 2,817 2,500 2,172 2,178 2,182 Production value (100 million yen) 生 1,908 2,034 ← Optical product 産 2,000 1,884 ←Crystal filter 1,808 1,719 1,724 金 ←Clock oscillator 額 1,500 ←Oscillator for （ industrial use 億 円 1,000 ←Crystal u
Slide 13: Industry trend (3): unit price of crystal devices
Industry trend (3) Trend of the unit price of crystal devices 200 179 164 163 152 141 150 136 121 114 108 100 100 50 96 97 98 99 00 01 02 03 04 05 *Although QIAJ has been compiling data on “SAW device” since ’02, we do not include the ‘SAW device” figures. This is because during compilation of the d
Slide 14: Market information: existing markets
1．Aiming for the No.1 Brand <Contents> NDK’s philosophy and core mission NDK’s core competence - To meet various needs of various customers - Market information 1. Industry trend 2. Existing markets 3. New businesses
Slide 15: Trend of mobile communications market (1)
Trend of mobile communications market(1) Projection of mobile phone production volume Unit: Million units 1,200 1014 1,000 913 778 787 800 742 700 Projection 644 644 as of May ‘05 600 Projection as of Mar ‘06 400 200 Estimation by NDK 0 FY’04 FY’05 FY’06 FY’07 (From Jan to Dec) 14
Slide 16: Trend of mobile communications market (2)
Trend of mobile communications market(2) Additional functions using crystal devices GPS RF ID (Felica,etc) Baseband Clock Camera PLL TV/Radio Tuner RF Memory Card USB Bluetooth 15
Slide 17: Trend of the fixed radio communications market (1)
Trend of the fixed radio communications market(1) Projection of shipment for Mobile phone base stations (Worldwide) Unit: Kilo 900 800 700 600 500 WCDMA CDMA 400 GSM 300 200 100 0 Source: CSFB '04 '05 '06 '07 '08 '09 '10 16
Slide 18: Trend of Fixed Radio Communications Market (2)
Trend of Fixed Radio Communications Market(2) Production value of industrial crystal oscillators (Worldwide vs Japan) Industrial crystal oscillators Japan (QIAJ) ¥10.1 billion (Share:20%) 2005 QIAJ has a high worldwide market ¥50.9 share of 63%, however, in industrial billion crystal oscillators, Eu
Slide 19: Trend of the AV market
Trend of the AV market Increase of new applications in addition to existing base applications Million units/Year Trend of volume in AV market by product Growth rate of volume in AV market (%) 700 Others 250% PDP-TV 600 LCD-TV Projection TV Digital satellite 200% 500 broadcasting STB VTR LCD-TV PDP-T
Slide 20: Trend of OA Market
Trend of OA Market High growth rate in applications for miniaturized devices Trend of growth rate Trend of volume in OA market by product (%) in OA market by product Kilo unit Others 200% 2,500,000 Projector 180% PDA COPY 160% 2,000,000 Cable modem BLUETOOTH 140% LBP CRT monitor 120% 1,500,000 Noteb
Slide 21: Trend of Automotive applications market
Trend of Automotive applications market New applications of car electronics (Million units) New applications Existing applications Source: Fuji Chimera Research Institute Yano Research Institute 20
Slide 22: Market information: new businesses
1．Aiming for the No.1 Brand <Contents> NDK’s philosophy and core mission NDK’s core competence - To meet various needs of various customers - Market information 1. Industry trend 2. Existing markets 3. New businesses
Slide 23: Prospective new fields/applications
Prospective new fields/ applications Communications/ Automobile/ Transit/ Machine Information Hybrid car ITS Battery car IC tag IP phone Transit system Wireless LAN Industrial robot Electronic money Electronic paper Home-care robot Environment/ Optical communication Energy Nanotechnology Fuel batter
Slide 24: Wireless module (Under development)
Wireless module (Under development) Features and performance Performance Feature (Comparison with conventional system) Invention of a new wireless •100 times higher sensitivity communication system •100 to 10,000 times resistant to - Exempted from the Radio Law interference (Use of micro radio wave)
Slide 25: QCM analyzer PSA10A for research use
QCM analyzer PSA10A for research use Portable system for biosensing research applications. A sensing measurement system using a highly sensitive crystal unit that enables the analysis of hazardous substances and allergens in the fields of environment, foods and clinical care. QCM Analyzer PSA10A Fun
Slide 26: Standard synthesizer module: S430M830MA
Standard synthesizer module: S430M830MA A synthesizer module that emits wideband oscillation frequency and is used as a source of high precision reference signal for digital terrestrial broadcasting, base stations and measuring instrument. S430M830MA Functions •Output frequency: Wideband 430MHz-830M
Slide 27: 2. Summary of results for year ended March, 2006
2. Summary of results for year ended March, 2006
Slide 28: Business Organization Structure
Business Organization Structure 27
Slide 29: Financial Highlights (Consolidated)
Financial Highlights (Consolidated) 28
Slide 30: Trend of Annual Results (Consolidated)
Trend of Annual Results (Consolidated) 29
Slide 31: Trend of Semiannual Results (Consolidated)
Trend of Semiannual Results (Consolidated) 30
Slide 32: Trend of Quarterly Results (Consolidated)
Trend of Quarterly Results (Consolidated) 31
Slide 33: Trend of Cost to Net Sales (Consolidated)
Trend of Cost to Net Sales (Consolidated) 32
Slide 34: Capital Expenditures (Consolidated)
Capital Expenditures（Consolidated） 33
Slide 35: R&D Expenses (Consolidated)
R&D Expenses（Consolidated） 34
Slide 36: Shareholders' equity (Consolidated)
Shareholders' equity（Consolidated） 35
Slide 37: Trend of Profitability (Consolidated)
Trend of Profitability （Consolidated） 36
Slide 38: Per Share Data (Consolidated)
Per Share Data (Consolidated) 37
Slide 39: Stock Information
Stock Information 5,000 4,000 3,000 + Closing price(¥) 2,000 1,000 19,921 4,130 3,000 1,987 910 2,160 2,270 5.350 83,265 62,271 41,244 18,833 43,043 45,230 106.580 80,000 60,000 40,000 hy NIK Crystal Bridge to the Future 120,000 100,000 Market capitalization (¥Millions) 20,000 38
Slide 40: Cash flow (Consolidated)
Cash flow (Consolidated) hy NIK Crystal Bridge to the Future [Unit: Million yen] Annual closing of last year YOY (Mar 31,2005) Cash Flow from Operating 9,232 53 Activities Cash Flow from Investing A 11,748 5.571 Activities Free Cash Flow A 2,516 5.624 Cash Flow from Financing 3,607 A 6,220 Activitie
Slide 41: Summary of cash flow (Consolidated)
Summary of cash flow (Consolidated) 40
Slide 42: Trend of Free Cash flow & Net Income (Consolidated)
Trend of Free Cash flow & Net Income (Consolidated) 41
Slide 43: Dividends
Dividends Annual closing hy NIK Crystal Bridge to the Future Annual closing (Forecast) (Mar.31,2007) ¥30 ¥15 ¥15 Shareholders’ equity of last year (Mar.31,2005) Cash dividends per share ¥16 Half Year closing ¥8 Annual Closing ¥8 Amount of Dividends (Unit: Million yen] 31 8 Dividends ratio of 0.9% 39
Slide 44: Business Forecast of FY2006 (Consolidated)
Business Forecast of FY2006 (Consolidated) 43
Slide 45: We are grateful for your continuous support
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. These statements are based on m