Financial Results for the 1 st Half of the Fiscal Year ending March 31, 2013

Transcription

1 Financial Results for the 1 st Half of the Fiscal Year ending March 31, 2013 November 15, 2012 Ryo Ogura, President

2 Outline of Business Structural Reform (announced on Aug 30, 2011) To establish profitable business foundation at the low growth age Reconstruct the manufacturing structure Production shift to overseas facility (mainly in packaging assembly and testing process) Reconstruction and downsizing of the domestic facilities (Liquidation of the subsidiaries / Integration and consolidation of wafer processing) Enhance the baseline products Redesign the products with new technologies (strengthen cost-competitiveness) Chip-shrinking etc. Select and concentrate on R&D investments Overhaul R&D themes and costs (concentrate on strengthening fields) Over 1 billion yen reduction Streamline of the organization and workforce 30% reduction of organization / offer of voluntary retirement (300 employees) 391 employees applied 1

3 Budget for Fiscal Year 2012 (Unit: Million JPY) FY2011 Performance FY2012 Budget Comparison Comparison (%) Net Sales 40,272 42,000 1, % Operating Income -4,101 1,100 5,201 - Net Income -9, ,898 - * Assumed exchanged rate: 1US$ =

4 Financial Results for the 1 st Half of FY2012 3

5 Financial Results Highlights for the 1 st Half of FY2012 (Unit: Million JPY) 1 st Half of FY st Half of FY2012 Comparison Net Sales 21,392 18,444-2,948 Operating Income -1, ,532 Net Income -1, ,512 The sales of our main semiconductor products remain sluggish in the 2Q. The profit exceeds the budget due to the effect of the business structural reforms (the reduction of fixed costs). (Announcement of the revision of the financial results forecasts on October 12, 2012) 4

6 Net Sales (YoY( YoY) (Million JPY) 25,000 20,000 15,000 21,392 1,442 1,278 5,310 18,444 (-13.8%) 1,119 1,333 2,810 10,000 5,000 1,599 1,182 Semiconductor 2,863 3,114 18,670 Semiconductor 15,991 Microwave Tubes and Radar Components (-14.3%) Microwave Application Products Others 8,897 8,883 Semiconductor Devices MOS ICs Bip ICs 0 FY2011 1st Half FY2012 1st Half 5

7 Operating Expenses etc. (YoY( YoY) (Unit: Million JPY) 1 st Half of FY st Half of FY2012 Comparison Comparison (%) Personnel Expenses 8,824 6,822-2, % Expenses 3,959 3, % Depreciation 1, % R & D 2,579 1, % Capital Investment 1,516 1, % 6

8 Factors for Changes in Operating Income (Million JPY) ,000-1,500 FY st Half -1,069 Fixed Costs Cut +2,446 Payroll Cost Cut +1,924 Decreased Sales etc. -1,177 Depreciation Cost Cut +337 Others +185 Depreciation Cost Cut +828 Others FY st Half -2,000-2,500 Payroll Cost Cut +2,002-3,000-3,500-4,000 Decreased Sales -2,948 Variable Costs etc. +1,181 Fixed Costs Cut +3,299 7

9 Outlook for Financial Results for FY2012 8

10 Outlook for FY2012 (Budget Comparison) (Million JPY) 1 st Half 2 nd Half Budget Actual Budget Expectation FY2012 (Full-year Forecasts) Net Sales 20,000 18,444 22,000-42,000 Operating I n c o m e ,100 Net Income * There have been no revision of FY2012 annual performance from the initially announced forecasts 9

11 Trends in Quarterly Financial Results (Million JPY) 12,000 9,000 Consolidated Net Sales Microwave Tubes and Radar Components Microwave Appplication Products Others Semiconductor Devices MOS ICs Bip ICs (Million JPY) Operating Income/Net Income ,000-1, ,000 Semiconductor -1,500-1,269-2, Q 2Q 3Q 4Q 1Q 2Q -2,500 Operating Income -2,129 Net Income -6,617 1Q 2Q 3Q 4Q 1Q 2Q (FY2011) (FY2012) (FY2011) (FY2012) 10

12 Trends in Quarterly Operating Income (Million JPY) 1, ,082-1,000-1,500-2,000-2,500-1,953 Microwave Tubes and Radar Components Microwave Application Products Semiconductor Products Contract Business 1Q 2Q 3Q 4Q 1Q 2Q (FY2011) (FY2012) 11

13 Operating Expenses Expectation for FY2012 etc. (YoY( YoY) (Unit: Million JPY) FY2011 FY2012 (Expectation) Comparison Comparison (%) Personnel Expenses 16,635 13,900-2, % Expenses 7,762 7, % Depreciation 3,546 1,750-1, % R & D 4,769 3, % Capital Investment 3,091 2, % 12

14 Trends in Break-even even Sales (Million JPY) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Break-even Sales 44,484 Fixed Costs 28,781 28,220 45,008 23,150 FY2010 FY2011 FY ,400 (Expectation) YoY -5,070 (-18.0%) 13

15 Growth Strategy 14

16 Business Environment in Japan Change in Business Environment Yen Appreciation beyond the Real Power Global Economic Slowdown Change in the Business Structure of Major Customers The Path to Growth 15

17 Path to Growth Create and Expand New Business Take Measures against Strong Yen Opportunities due to the Industry Consolidation Collaboration with Electronics Component Manufacturers In-vehicle & Industrial Market Smartphone Market Production Shift Abroad Enhancement of Baseline products East Asia Market Development 16

18 Urgent Measures against Accelerating Industry Consolidation NJR Fukuoka Measures against strong yen Strengthen cost-competitiveness C B D A NJRC Silicon FAB SAW FAB THAI NJR New Products (Taiwan) Vol products Overseas Production East Asia Market Change in External Environments Expand GaAs FAB Assembly (Saga Electronics) 17

19 Collaboration with Electronics Component Manufacturers Semiconductor (Active) Module Collaboration Passive Component Resistor Capacitor Coil SAW TOTAL SOLUTION With our semiconductor technology, we achieve the consumer needs: small size, thinness, mass production, and low price Respond to Smartphone Market 18

20 In-vehicle and Industrial Market (Example) Number of Product Development 26 Products 20 Products 8φ-BCD 5φ-BCD 16 Products 16 Products Switching Power Supply ICs for HEV/EV DC/DC Converter for Powertrain 10 Products 8 Products 2 products 13 products 16 products 26 Products (23 Products Under Development) LDO for Light etc 0 Products 6 products 3 products FY2010 2H FY2011 1H FY2011 2H FY2012 Ration of Customer Application Game Console Audio-Visual 10% Module 11% PC Car Audio- Visual 16% 1,494 items Industrial 30% In-vehicle 17% 19

21 SAW Filter Foundry Business Business Transfer from JRC + Foundry Business SAW Business Transfer 11 Oct. Held the talk about Business Transfer from JRC 11 Dec. Investment in Foundry 12 Jun. Introduction of Mechanical Equipments Trial Production 12 Aug. Pre-production 12 Oct. Began Mass-production Production 12 Nov. Add Equipments for Production increase Step into Radio-frequency Module Business (SAW+GaAs ICs) 20

22 Expand MUSES Products Guardian of Original Sound Pursue the poignant sound the original sound the inspirational sound that cannot be shown in specification numbers MUSES has been adopted in many high-end audio devices domestically and abroad!! High quality OP Amp MUSES02(Flagship model) MUSES03, which realize the world s s highest sound quality, is under development!! 21

23 Microwave Application Products O3b (Other 3 billion) Business Chosen as supplier for dedicated BUC/LNB products Correlation Chart MEO Satellites Satellite (MEO) Mobile/Wireless Backhaul IP Trunking Modem Supplier Investment Dedicated Modem Supply HUB Support Dedicated BUC/LNB Supply BUC/LNB Supplier 5W, 10W BUC/LNB Antenna Supplier 1.8m/2.4m Antenna Supply Customer Access System O3b: Satellite Communication Business to respond to high-speed data transmission Satellite Operation/Service 22

24 Core Technologies NewJRC Microwave-related 23

25 Growth Strategy Enhance the baseline product Shrinking the size of chips, World standard package, Production shift to Thailand Recovery from lost market of OP Amp, Regulator, Fan Motor, Line Amp, etc Expand the business of in-vehicle and industrial market SAW filter foundry business Expand the business of radio-frequency module business(saw+gaas ICs) Develop the new business: FORWARD 20 24

26 Thank you for your kind attention. * Translations: This document is provided as a convenience to you, and NewJRC makes no representation regarding the accuracy or completeness of the translations. 25