PALTEK (JASDAQ:7587)

Transcription

1 PALTEK (JASDAQ:7587) Fiscal Year 2013Q1 Supplements (English translation of original presentation) May 9, 2013 Agenda 1 2 Results of FY2013Q1 Guidance of FY

2 1 Results of FY2013Q1 3 FY2013Q1 Summary Summary! General market trend: Slowly improving Aggressive financial stimulation actions by new government help to boost domestic market and consumer spending shows improvement. Government investment is also strong Overall production trend is improving after bottoming out at the end of Private sectors expect improvements, but due to unclear European economy and other reasons, plant/equipment spending is still weak! PALTEK: Sales and income increased and exceeded estimates [Sales] Steady from communication infrastructure, medical [Income] Increased sales in semiconductor business, growth in high gross margin design services business, and gains from exchange rates from US dollar based debits contributed 4 2

3 FY2013Q1 Results: Income statement (Million Yen) 2012Q1 2013Q1 Change Amount % Amount % Amount growth Sales 3, % 3, % % Gross Margin % % % SGA % % (43) (7.0%) Operating Income (110) (3.3%) % Ordinary Income (114) (3.4%) % Net Income (73) (2.2%) % Net Income per Share (6.41Yen) - (10.79Yen) - (17.20Yen) -! Sales increased for semiconductor and design service business Main reasons for change! Gross margin increased due to gains from exchange rates for US$ based debit from suppliers and increase of sales share for design service business! Expenses decreased from cost savings measures taken in the 2 nd half of Sales by Business Unit (Million Yen) 2012Q1 2013Q1 Change Amount % Amount % Amount % Semiconductor 3, % 3, % % Design Service % % % Others % 2 0.1% (53) (96.5%) Ttl Total 3, % 3, % 0% % 1% Main reasons! Semiconductor Business: Increased sales from PLD and ASSP for for change communication infrastructure and PLD and analog IC for medical application! Design Service Business: Large increase in sales from medical and communication applications and contribution from Explorer Inc., acquired in July

4 FY2013Q1 Results: Balance Sheet (Million yen) 2012 End 2013 Q1 Change Main reasons for changes Cash and Equivalent 1,739 1, Account Receivable 3,227 3, Increased sales Inventory 1,051 1, Preparation for future sales Other Current Assets 2,618 1,901 (716) Unpaid sales tax decreased while unpaid income increased Fixed Assets Asset Total 9,266 9, Account Payable Due to increased purchasing Assets Liabilities & Equity Short-term Loans Other Current Liabilities Fixed Liabilities (15) Net Equity 7,889 7, Liabilities & Equity Total 9,266 9, FY2013Q1 Results: Cash flow Cash flow comparison 2,500 (Million Yen) 2,000 5,000 4,000 (Million yen) FY2012Q1 FY2013Q1 Operations C/F 2, Investment C/F (13) 24 Financing C/F (53) (58) 1,500 3,000 Cash end period 4,502 1,803 1,000 2,000 Movement of the cash flow 500 1,000! C/F from Operations : Surplus due to recognition of net profits in FY13Q1 and decrease in unpaid sales tax 0 0 while there are increase of sales 12Q1 13Q1 receivables, inventory, and unpaid sales, -500 Operations C/F Investment C/F -1,000! C/F from Investment : Financing C/F Increase from returns from investment to a -1,000 Cash end period -2,000 subsidiary company Operations, Investment! C/F from Financing : Cash end period Financing C/F Decrease from payouts of dividends 8 4

5 Sales and Operating Income History (Million Yen) 4,000 3,000 3,367 3,326 3,365 3, , % 30% 25% 20% 2,000 1, % 16.3% 16.9% 15.9% 3,159 3,045 3,195 3,144 3, % -3.3% -2.5% -1.6% -2.2% 12Q1 12Q2 12Q3 12Q4 13Q1 Semiconductor DesignService Others Gross Profit(%) Operating Income(%) 15% 10% 5% 0% -5% 9 Results by Business Unit 5

6 Semiconductor Business by product (Million Yen) Remarks for FY13Q1 4,000! PLD 3,000 3,301 Communication infrastructure and 3,159 3,195 3,144 3, medical are strong while broadcasting is weak ! Application Specific IC 149 Communication infrastructure and 2,000 1,526 1,073 1, ,081 mobile terminal business are strong while broadband project is weak! Standard IC New products are slowly contributing 1,000 to sales 1,358 1,472 1,572 1,473 1,151! Analog Medical, industrial and communication 0 business is strong 12Q1 12Q2 12Q3 12Q4 13Q1! Memory PLD ASSP Standard IC Strong demand from some industrial Analog IC Memory and medical customers 11 Semiconductor Business by application (Million Yen) 4,000 3,301 3,159 3, , ,045 3, , ,039 Remarks for FY13Q1! Industrial Medical customer is strong! Communication Infrastructure business is strong while broadband program is weak 1,000 1,090 1,465 1,432 1,479 1, Q1 12Q2 12Q3 12Q4 13Q1 Industrial Communication Consumer Computer Others 12 6

7 Design Service Business (Million Yen) Remarks for FY13Q1! Strong sales from medical and communication applications! Large contribution from Explorer Inc., which was acquired in July Q1 12Q2 12Q3 12Q4 13Q Guidance of FY

8 Guidance of FY2013 Guidance was revised due to increased sales and operating income than estimates in FY2013Q1! Estimates for the first half of FY2013! Q1 recorded better than estimated sales and gross margin! Weaker Japanese yen against US dollar resulted in gains in Q1, but it is expected to bring negative impact of increased cost of goods! Estimates for full FY2013! No change of guidance at the moment. Domestic economy is expected to improve, but economy in Europe seems still weak and the recovery of newly developed economies seems unclear! Change of guidance only reflects the good results of the first half of FY Revised guidance for FY2013 FY2013 (guidance on Feb 12) Revised guidance for FY2013 (April 26) (Million yen) H1 H2 Full Year H1 H2 Full Year Net Sales 6,500 8,000 14,500 7,350 8,000 15,350 Gross profit 1,300 1,250 2,550 1,410 1,250 2,660 Gross profit(%) 20.0% 15.6% 17.6% 19.2% 15.6% 17.3% SGA 1,200 1,200 2,400 1,160 1,200 2,360 Operating Income Operating Income(%) 1.5% 0.6% 1.0% 3.4% 0.6% 2.0% Ordinal Income Net Income

9 Trend of sales and income (Million Yen) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, , ,997 8, , , % 17.7% 16.3% 16.4% 15.7% 15.6% 7,973 7,659 6,202 6,340 6,740 7, % 1.8% 0.9% 0.6% -2.9% -1.9% 11H1 11H2 12H1 12H2 13H1(E)13H2(E) Semiconductor DesignService Others Gross Profit(%) FY2013Q1 Operating Results Reporting Income(%) 30% 25% 20% 15% 10% 5% 0% -5% 17 Outlook for FY2013 [Estimates for the first half of FY2013]! Sales exceeded the initial estimates due to strong sales from touchpad for mobile devices, near distance wireless IC, ASSP for COM infrastructure, and analog for communication and industrial customers.! Operating Income: Gains from exchange rates due to values of US dollar based receivables from supplier pushed up operating income [Full FY2013]! Company maintains the 2 nd half guidance due to unclear economy directions for European and newly developed countries although domestic economy is expected to improve. Engineering capabilities drive business Drive semiconductor business s profitability Engineering capabilities Strong engineering support and system-based solutions Strengthen design service business Promotion of smart energy business 18 9

10 IR Contacts For Inquiries, please contact: Investors Relations Mr. Yoshinori Shibasaki PALTEK Corporation Shin-Yokohama, Kouhoku-ku, Yokohama Japan TEL : FAX : IR@paltek.co.jp 19 Safe Harbor Disclaimer This presentation may provide projections or other forward looking statements regarding future events and/or future financial performance. We wish to caution you that such statements are just predictions and that actual events or results may differ materially due to changes in the market and/or other business conditions

11 Reference FY2013 Sales Guidance by Solution FY2013 (guidance on Feb 12) Revised guidance for FY2013 (April 26) (Million yen) H1 H2 Full Year H1 H2 Full Year Semiconductor 5,970 7,380 13,350 6,740 7,380 14,120 PLD 2,850 3,200 6,050 2,950 3,200 6,150 Application Specific IC 1,800 2,200 4,000 2,200 2,200 4,400 Standard IC , ,300 Analog IC , ,220 Memory , ,050 Design Service , ,150 Others Total Sales 6,500 8,000 14, , Operating income

12 3 risk factors from exchange rate fluctuation at PALTEK (1) Valuation of dollar based receivables for price discount (2) Valuation of inventory (3) Valuation at dollar based payment to suppliers 23 (1) Risk of valuation of discount debit (1) Pricing :Discount pricing is often applied at production stage, which is lower than standard pricing (2) Sales :Credit is issued by supplier at sales to honor predetermined discounted cost (dollar based credit) When yen moves weaker at the time of sales than from the time of deciding on pricing, amount of credit in terms of Japanese yen will increase Cost in yen decreases gross margin will increase (1) Pricing (1$ = 80 yen) (2) Sales (1$ = 90 yen) Credit for discounts Weaker Credit ($-based) yen for discounts (6$ = 480yen) (6$ = 540yen) Value at procurement (10$ = 800yen) Cost (4$ = 320yen) Cost (260yen) Cost decreased gross margin increased +60yen 24 12

13 (2) Value of inventory Cost increase profit decrease (1) At the time of Pricing (1$ = 80yen) (2) Procurement Sales (1$ = 90yen) Profit (2$ = 160yen) Cost (8$ = 640yen) Sales Price (10$ = 800yen) Weaker Yen Profit 80yen Cost (8$=720yen) Cost increased profit decreased -80yen 25 (3) Risk at payment to suppliers (1) Procurement (1$ = 80yen) (2) Sales payments (1$ = 90yen) Balance at the time of payment At the time of procurement (8$ = 640yen) Weaker yen Credit for discount pricing (6$=540yen) Actual payment (2$=100yen) CASH (2$=180yen) -80yen 26 13

14 Disclosure segment Segment PLD Application specific IC Standard IC Analog Memory Design Service Details Products centering FPGA of Xilinx and peripheral parts Application specific products (Examples: catered for communication, special interface, mobile solution) Standard products by NXP semiconductors, Microchip technology and others Analog products from Linear Technology and other analog suppliers Memory products from Micron Technology and other memory suppliers Design service, ODM/EMS/OEM, original products Others Products and services which are not categorized into the above segments 27 14