Consolidated Financial Result Digest FY12/13 Financial Result Digest FY12/13 ZXCV May 9 ,2013 Any...

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ZXCV

Consolidated Financial Result Digest

FY12/13

ZXCV

May 9 ,2013

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 on the

company's own analysis at the time of compilation , and their accuracy is not guaranteed .

These data may be revised without prior announcement. The company will neither assume

nor compensate any loss of anybody resulting from decision based on information

provided here .


ZXCV

1

SR（Solder Resist）

For Touch Panels

For PKG

PWBs

Classification

PWB Materials

For Flexible

PWBs

For Rigid PWBs

For B/U

PWBs

FPD Materials

For PDPs

Silver Paste, etc.

White SR

New Products


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Term Definition

“PWB Materials”

(Printed Wiring Board) Printed Wiring Boards

“FPD Materials“

(Flat Panel Display) Flat Panel Display Panels

“PDP Materials” (Plasma Display Panel)

Plasma Display Panels

“SR”(Solder Resist） Solder Resist Ink or Solder Mask

“PKG Materials”

(Package) Package Substrates

Terminology


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INDEX

1. Summary of FY 12/13 Financial Results

(April 1, 2012 - March 31, 2013)

2. Forecasts for FY13/14

3. Review of Medium-term Business Plan

4. Long-term Target

5. Other topics


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1. Summary of FY 12/13 Financial Results

(April 1, 2012 - March 31, 2013)


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FY11/12 FY12/13 Diff. Change in

% Forecasts

Sales 39,797 36,184 (3,613) (9.1%) 36,500

Operating

Income 4,040 4,385 345 8.5% 4,500

Ordinary

Income 4,027 4,743 717 17.8% 4,500

Net Income 2,502 3,367 865 34.6% 3,200

<Ave. Exchange Rate>

JPY/USD 79.3 83.2 3.9 - 80.0

FY12/13 (Actuals)

(JPY millions)


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Factors of Sales Decrease

Sales (JPY billions)

39.7 36.1

FY11/12 Actuals FY12/13 Actuals

FX rateappreciation&changes inproduct mix

&others

+1.3-4.3

-0.6

Silver pricedecrease

Sales volumedecrease


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Factors of Profit Increase

Operating Income (JPY billions)

+0.8 -0.5

Sales volumedecrease

4.0 4.3

FY11/12 Actuals FY12/13 Actuals

FX rateappreciation

&others


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14.3 17

9.1 8.8

4.2 3.6

12.9 14.6

0

5

10

15

20

25

30

35

40

45

3/31/12 3/31/13

Fixed Assets Other Current Assets

Inventories Cash

FY12/13 Summary of Balance Sheet

33.4 36.8

7.2 7.2

0

5

10

15

20

25

30

35

40

45

3/31/12 3/31/13

Equity Liabilities

Assets

Cash increased.

Investments in securities increased because

of M&A.

Foreign currency translation adjustments

improved.

Retained earnings increased.

40.7 44.0

40.7

44.0

Liabilities and Equity

(JPY billions) (JPY billions)


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2.7

6.1

-4

-2

0

2

4

6

8FY11/12 FY12/13

FY12/13 Summary of Cash Flows

Profit increased.

Account receivables

decreased.

Inventories decreased.

-1.3 -2.4

-4

-2

0

2

4

FY11/12 FY12/13

-2.9 -2.3

-4

-2

0

2

4

FY11/12 FY12/13

Payment increased because

of M&A.

Payment increased in

FY11/12 because of

commemorative dividend.

Operating CF Investing ＣＦ Financing ＣＦ


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Sales of PWB Materials

Although the sales of the

products for PC and AV

decreased, sales of the products

for cars and amusement was

robust.

High-end PKG products for

smartphones and tablets

increased.

27.9 26.7

Sales

(JPY billions)

20.2 20.2

5.4 6.7

10.9

0

5

10

15

20

25

30

FY11/12 FY12/13

Rigid PKG&Flexible Build-up


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Sales of FPD Materials

12.3

7.3

0

2

4

6

8

10

12

FY11/12 FY12/13

A unit selling price fell because it is

linked to the silver price, the main raw

material of the FPD materials.

Sales volume decreased due to

shrinkage of the PDP TV market.

Sales

(JPY billions)


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Result by Segment for FY12/13

11.7 10.6

3.7

16.6

2.6

13

10.8

3.9

11.7

2.8

0

4

8

12

16

20

Japan China Taiwan Korea Others

FY11/12

FY12/13

Sales

Operating Income

(JPY billions)

0.9

1.7

0.40.6

0.2

1.61.5

0.40.5

0.3

0

0.4

0.8

1.2

1.6

2

Japan China Taiwan Korea Others


ZXCV Trend of Quarterly Performance

13

-0.4

0.0

0.4

0.8

1.2

1.6

2.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Sales（left axis） Operating Income（right axis）

FY09/10 FY10/11 FY11/12 FY12/13

(JPY billions) (JPY billions)


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45 45 45 45 45

45 45 45 45 45

25 306.8%

8.6%

6.9%6.6%

8.3%

0

20

40

60

80

100

120

140

FY9/10 FY10/11 FY11/12 FY12/13 FY13/140.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Interim Year-End Memorial DOE

14

Return to shareholders

（Estimated）

90

115

90

FY12/13 dividend forecasts remains unchanged.

A commemorative dividend (in addition to an interim

dividend) is planned in FY13/14.

(JPY)

（Estimated）

90

120


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2. Forecasts for FY13/14


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Forecasts for FY13/14

FY12/13

Results

FY13/14

Forecast Diff.

Change in

%

Sales 36,184 40,000 3,816 10.5%

PWB+ 28,866 34,000 5,134 17.8%

FPD 7,316 6,000 (1,316) (18.0%)

Operating

Income 4,385 6,800 2,415 55.0%

Ordinary

Income 4,743 6,800 2,057 43.3%

Net Income 3,367 4,700 1,333 39.6%

<Foreign Exchange Rate>

JPY/USD 83.2 95.0 11.8 -

(JPY millions)


ZXCV Forecasts for FY13/14 Overview

17

PWB

FPD

Price reduction in the low-ended products has stopped because of the

M&A activities.

Sales of the products for PKG for smart-phones and tablets is expected to

continue robust.

Stable profit would be secure after competitors withdraw from the market.

With the technology and know-how for PDP materials, developing and

sales of the touch panel materials would be focused on.


ZXCV Trend of Consolidated Sales from PWB+ and FPD

Sales

Forecast

1.0 1.0 1.0 1.5 0.9 0.9 0.9 0.7 0.8 0.8

3.1 6.5 9.5 10.2

5.6 6.0 6.0 12.3

7.3 11.0

23.5

27.7

30.9 33.6

26 26.0

29.9 26.7

27.9 33.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Others FPD Materials PWB Materials

40.3

35.0

39.7

32.6

45.3 41.9

35.3

27.7

40.0

36.1

(JPY billions)


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25.7 27.7

35.3

41.9

45.3

32.6 35

35.0 39.7

36.1

40

4.0 4.7 6.6

7.9 8.8

3.3 4.8 5.3

4 4.0

6.8

2.7 2.9 4.2

5.5 6.1

1.9 3 3.0 2.5 3.3 4.7

0

5

10

15

20

25

30

35

40

45

50

FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14

Sales Ope. Income Net Income

Trend of Consolidated Performance

Forecast

(JPY billions)


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Investment & Depreciation Expense

0

500

1,000

1,500

2,000

2,500

FY11/12 FY12/13 FY13/14

Investment Depreciation(JPY millions)

Forecast


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3. Review of Medium-term Business Plan

(GBP2010)


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FY12/13 Medium-term

Business Plan Change

Sales 36.1 48.0 (11.9)

PWB+ 28.8 38.5 (9.7)

FPD 7.3 9.5 (2.2)

Operating

Income 4.4 7.7 (3.3)

Operating

Income Ratio 12.1 16.0% (4.9%)

Sales of New product and

fields 3.4 4.0 (0.6)

Sales and Operating income targets were not achieved.

Differences between Results and the Original Targets

(JPY billions)


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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Original forecast Results（FY12/13 is forecast)

（tons）

Differences

about 9.000 tons

“Lehman Shock”

European debt

crisis

SR Market trend in China


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Review of Mid-term Plan(GBP2010)

Sales of the strategically low-end products to certain customers was successful to some extent since we increased market share.

Our market share in China reached 50% as a result of the acquisition of OTC.

Development of new touch panel materials started in FY12/13. Sales is expected to increase in the near future.

Research and development strategies were clearly redefined, based on the time line. Basic research capability was improved. Manufacturing and sales structure for the new products were strengthened.

The policy of the human resources management was adopted. The system of human resources training was established such as systematic education and training programs including sending chemists to universities and research institutes.


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4. Long-term Targets


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Long-term target

Sales and Profit

Share and

New products

No.1 market share of SR

→Strongly influenced by the

market trend

Over 80% of the total sales is

overseas sales.

→Strongly influenced by

FX rate

As a result,


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Strategy

Strengthening of R&D structure

Rapid commercialization of new products

Encouraging initiative in talent

Development of measures to reduce foreign currency risk


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5. Other Topics


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Status of Acquiring of OTC

Signed an LOI to acquire a 51.0% stake of Onstatic

Technology Co., Ltd. on August 9, 2012.

Acquired a 25.5% stake with NTD 899 million (JPY 2,511

million) on November 22, 2012.

Pricing negotiation to acquire the remaining 25.5% stake

is under way.

After the acquisition of the 51.0% stake, the balance of

49.0% stake is also planned to be acquired.


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