First Half Results for Fiscal Year 2014 (ending March 2014) · First Half Results for Fiscal Year...
Transcript of First Half Results for Fiscal Year 2014 (ending March 2014) · First Half Results for Fiscal Year...
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First Half Results for Fiscal Year 2014
(ending March 2014
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Nihon Dempa Kogyo Co., Ltd.
NoteStatements 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 managements assumptions and beliefs in light of information currently available to it. We caution that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on the belief that it is our obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Risks and uncertainties that might affect us include, but are not limited to; fluctuation of currency exchange rates, overall supply and customer demand in the industry, product development and production capacities, performance of affiliated companies, and other risks and uncertainties.
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1 FY2014 1st Half Results
2 Market trends and our products
3 Forecast for the full year FY2014
Contents
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Summary of FY2014 1st Half Results
(Million yen)
FY2013 FY20141st Half 1st Half
Net sales 25,727 25,572 155Operating income 696 312 384Income before tax 594 198 396Net income 565 173 392Total comprehensive income 174 657 831
Change
Net salesAlthough the sales for automotive and fixed radio communication
were higher than the previous year, the sales for mobile communication and AV/OA were lower than it (especially in FY2014 1Q), and the overall sales dropped slightly.Income
The profit was lower than the previous year, mainly due to a fall in price for mobile communication and a reduction in quantity and price of optical products for cameras.
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321
756
597
407
311385
37
424
158
471
204
575 552
284
196
398
149
482
202
401
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q Q
FY2012 FY2013 FY2014
Income (Million yen)Operating income
Income before tax
44
Quarterly Results
12,125
13,82312,685
12,17112,652
13,07512,840
12,05612,251
13,321
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q Q
FY2012 FY2013 FY2014
Net sales (Million yen)
In FY2014 2Q (Jul.- Sept.), the sales recovered to the same level as the previous year. The profit returned to the black, mainly due to products for fixed communication and AV/OA.
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Sales trend of main applications
0
1,000
2,000
3,000
4,000
5,000
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
FY2012 FY2013 FY2014
(mil.) Mobile
0
1,000
2,000
3,000
4,000
5,000
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
FY2012 FY2013 FY2014
(mil.) Fixed radio
0
1,000
2,000
3,000
4,000
5,000
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
FY2012 FY2013 FY2014
(mil.) AV/OA
0
1,000
2,000
3,000
4,000
5,000
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
FY2012 FY2013 FY2014
(mil.) Automotive
Mobile communicationIn FY2014 Q2 (Jul.- Sept.), sales recovered mainly for smart phones.Fixed radio CommunicationSales for the communication infrastructure, such as base stations for mobile phones are on the increase, from the bottom figure of FY2013 2Q.AV/OAIn FY2014 2Q (Jul. Sept.), sales for home electrical appliances, such as game consoles, recovered.AutomotiveIn FY2014 first half(Apr. Sept.), the sales recovered.
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Summary of Cash Flow
(Million yen)
FY2013 FY20141st Half 1st Half
532 1981,601 1,912
210 1,0451,923 1,065
3,339 1,230Others 145 110
3,194 1,120 1,271 55
1,496 344Cash dividends paid 195 196
1,301 54130 596
8,796 11,812 190 1968,636 11,412
Income before income taxesDepreciation and amortizationChange in working capital
Net effect of currency translation
Net decrease()/increase in cash and cash equivalents
.Operating activitiesPurchase of property, plant and equipment
.Investing activities
Cash and cash equivalents at end of year
Free cash flowIncrease in debt
.Financing activities
Cash and cash equivalents at beginning of year
1,065
55
541
Cash Flow of 1st half FY2014
1,120
FinancingCF
Free CF+
OperatingCF
InvestingCF
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4,247
2,760
3,937
5,699
2,3003,067 3,247 3,040
3,425 3,700
FY2010
actual
FY2011
actual
FY2012
actual
FY2013
actual
FY2014
forecast
Capital investmentDepreciation
Capital investment & Depreciation(Million yen)
2,2412,420
2,686 2,5002,400
4.3% 4.4%
5.3% 5.1%4.7%
FY2010
actual
FY2011
actual
FY2012
actual
FY2013
actual
FY2014
forecast
R&D expenses (Million yen)R&D expensesR&D expenses ratio against sales
7
Capital investment & R&D expenses Capital investment
2.3 billion expected for FY2014 as originally planned R&D expenses
2.4 billion expected for FY2014 as originally planned
1H actual1,1181H actual
Investment 1,230Depreciation 1,912
Additionally invested 0.7bn ahead of FY2014 plan on initial FY2013 plan(5.0bn)
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1 FY2014 1st Half Results
2 Market trends and our products
3 Forecast for the full year FY2014
Contents
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Business portfolio target
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Current business field
Expansion of business field
IndustrialConsum
er
Space/ Aviation/ Defense Medical/ Food/
Environment, etc.Public
SystemBase station/ Optical communications/ Broadcast
Mobile communications, AV/OA, Automobile
Crystal Units Optical Products
Crystal Oscillators High Accuracy
Ultrasonic DevisesSynthesizersSensors
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1,129 1,018 893 874 849
471 700 915 1,038 1,147
1,6001,718 1,808
1,913 1,997
107% 105% 106% 104%
0%
20%
40%
60%
80%
100%
120%
0
500
1,000
1,500
2,000
2,500
CY2011 CY2012 CY2013 CY2014 CY2015
Feature phone Smartphone
Reference :Goldman Sachs, TSR and estimation of NDK
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Reference: TRI
Mobile communications market
Global mobile phone market trend Brand market share of mobile phones in China1Q 2013
The mobile phone market is expected to grow continuously, but growth rate will fall along with the popularization.
In 2013, the number of smartphones will exceed feature phones.
The growing market of smartphones is crossing over from the developed countries to China or the developing nations.
The market share of local makers will increase in China.
Design simplification and price reduction will progress.
Others
(Million units) YOY
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Mobile communications market] New product : Crystal unit with a built-in temperature sensor
Clock
Temperature info.
1 package
Crystal unit
Temperature sensor
NX1612SB(size:1.61.20.65mm)
- World's lowest-profile (height 0.65mm) - Contributing to customers freedom for design
Crystal unit with a built-in temperature sensor (2016 and 1612 size)
Demands for chipsets due to simplification of design
NX2016SF(size:2.01.60.65mm)
[Structure]Tempera-ture compen-
sation Circuit
RFTransceiver
Baseband Application Processor
GPSGPSWLANWLAN
BluetoothBluetooth
Unification of multiple chips
As for the chipset, unification of multiple chips is further developed and optimum functions for it is expected.
Compact and thin, responding to space saving due to high density packaging.
Provides temperature information to chips and improves frequency accuracy
Temperature sensor built-in
Developedin FY2014
Under development
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Worldwide sales volume of automobile
8,011 8,4618,716 9,122
9,502 9,851
106% 103% 105% 104% 104%
0%
20%
40%
60%
80%
100%
0
2,000
4,000
6,000
8,000
10,000
12,000
2011 2012 2013 2014 2015 2016
(10 thousand units)
Others
China
North
AmericaEU
Japan
Total
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Automotive marketTowards a stable growth
The sales of automobiles overall expected to be a stable growth Strong growth in China and other developing nations
In 2012, Japanese makers have recovered from production reduction due to the earthquake disaster and the flood in Thailand.
America
ReferenceFuji chimera
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Camera(Front)
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Camera(rear)
Automotive marketExpanding market /Purpose collision-free car
Crystal units are used for them and expansion of market is expected. Crystal oscillators and SAW devices are expected to increase in
demand for advanced control system working with map information using GPS, etc.
Millimeter-waveradar(Front)
- Optimum distance between cars- Maintaining lane- Detection of sudden cut-in, etc.
Millimeter-waveradar(rear)
- Rear collision warning- Lane change support, etc.
Vehicle control technology leading to future automatic drive is practically applied.
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0
2,000
4,000
6,000
8,000
10,000
12,000
2012 2013 2014 2015 2016 2017
1000TB/ month
Others
Feature phones
M2M
Tablet PC
Note PC
Smartphones
13 times !
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ReferenceCISCO
Fixed radio communications marketIncrease in data traffic
Explosive increase in mobile data traffic Increase in base stations and optical communication apparatus
TB(terabyte) a trillion ( 12 times of 10)
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Fixed radio communications marketNew products:Arbitrary Output Frequency VCXO
Demands for optical communication devices
15MHz:
155.52MHz:
622.08MHz:
915MHz
NV7050SH(size:7.05.0mm)
622.08MHzor
644.53MHz
NV7050SJ(size:7.05.0mm)
Customers Customers
High accuracy, Low phase noise and Low jitter, and High reliability Moreover, VCXO enables customers to select the necessary frequency
Advantages on the part of customers(1)Reduce the items of parts and simplifies its management(2)Shorten the period of development of new products
Arbitrary frequency 1 wave output Any Rate VCXO
Select 1 wave of two frequenciesHigh frequency Selectable VCXO
Under development Under development
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Smart meter
Sensor
Battery
Smartphone
Gateway
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[Fixed radio communications market] Smart grid
HEMS=Home Energy Management System
Smart meter is being introduced in many countries, which is essential for realization of Smart grid.
Connects home electronics with wireless communication, links to external network and optimizes energy management
Gives information on meter-reading with an accurate time management to electric company
Smart meter HEMSHome electronics/Gateway)
Tuning fork crystal units, crystal oscillators, clock oscillators and SAW filters are used for smart meters or HEMS.
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-250
40 60 80 100 120
-200
-60 -40 -20 0
ppm
20
50
0
-50
-100
-150
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Fixed radio communications market/Smart metersNew products : clock oscillator for use in high-temperature
NZ2520SG(size:2.52.0mm)
Low-current-consumption, 32kHz crystal clock oscillator for use in high-temperature
Demands for attainment of accurate time managementAccurate clock source is required even under a wide temperature range environment where meters are installed. Moreover, the new product will correspond to low power consumption of meter.
- Operating under high temperature105Previously, 85- Electricity consumption:45 reduction as compared to previously
Relation of temperature and frequency
The new product has more stable frequency within a wide range of temperature, compared to the tuning fork type which is generally used as a clock source.
The new product
Tuning fork type
Developedin FY2014
Utilized our propriety technology based on an AT cut crystal oscillator, featuring outstanding temperature and accuracy properties
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1 FY2014 1st Half Results
2 Market trends and our products
3 Forecast for the full year FY2014
Contents
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Forecast for the Full year FY2014
ReferenceExchange rate sensitivityInfluence on net sales (Annual) 1 fluctuation approx.210 millionInfluence on operating income (Annual) 1 fluctuation approx.50 million
(Million Yen
1H 2H Annual(Actual) (Forecast) (Forecast)
Net sales 25,572 25,428 51,000Operating income 312 388 700Income before tax 198 302 500Net income 173 227 400Ratio of income before tax 0.8% 1.2% 1.0%Exchange rate(against the U.S. dollar)
97.99 95.00
FY2014
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Development
Preparing for next year
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New market
Fixed radio Communica-
tionGrowth
Base
Automotive
AV/OA
Mobile Communica-
tion
IndustrialConsum
er
Increase profits by expanding range of high value added products New differentiated products of OCXO/VCXO/TCXO
Development of new fields using crystal technology SensorsIndustrial, medical, etc.
Sales/ profit basisMaintaining a large share Profit secured
Profit improvement by new products using new methodsCapacity preparation is readySwitch over from TCXO to crystal unit with abuilt-in temperature sensorSecuring profit
Ensure profit improvement from the next year onwardsChange earning structure and accelerate new product development
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IR Information Contact
We are grateful for your continuous support.
Nihon Dempa Kogyo Co., Ltd.Treasury and Accounting Division
Mail: [email protected]