Miraial Co., Ltd. Co., Ltd. Results Briefing for ... Financial Forecast for the Fiscal Year Ending...

March 14, 2011

Miraial Co., Ltd.Results Briefing for the Year Ended January 2011

Copyright：2011© Miraial Co., Ltd. All Rights Reserved. 1

Contents

Overview of Financial Results for the Fiscal Year Ended January 2011…... 2

Financial Forecast for the Fiscal Year Ending January 2012 ……………….…12

Business Environment of the Company .……………..……………………………15

Policies for the Current Fiscal Year .…………………………….……..……………17

Overview of Financial Results for the Fiscal Year Ended January 2011


1. Comparison between Sales and Ordinary Income


Sales (Unit: millions of yen) Ordinary income (Unit: millions of yen)Sales in the plastic molding segment recovered due to the recovery of demand within the semiconductor industry. At the same time, while the molder segment saw a slight improvement in orders received on the strength of a recovery in capital expenditures, the situation remains severe.

Ordinary income recovered due to a recovery in sales and efforts to reduce costs.

Sales rose 22.6% year on year to 11,939 million yen, while ordinary income increased by 63.7% on the previous fiscal year to 3,179 million yen.

14,020

9,738

11,939 11,098

8,531

10,184

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Fiscal year ended Jan 2009



2,324

1,942

3,179

2,3752,134

3,141

0

500

1,000

1,500

2,000

2,500

3,000

3,500




Left:Consolidated

Right:

Non-ConsolidatedLeft:Consolidated

Right:

Non-Consolidated


2. Comparison of Sales by Segment

Sales by Segment (Consolidated)

Results for fiscal year ended Jan 2010

9,738 million yen

Plastic MoldingSales in the semiconductor related segment rose 17.9% year on year to 9,697 million yen backed by a recovery in the demand for semiconductors.

In other businesses, sales rose to 486 million yen a 58.1% increase compared with the previous fiscal year.

MoldersDespite the continuing severe conditions, signs of a recovery in capital expenditures were evident as sales recovered to show a 45.6% year on year rise to 1,755 million yen.


11,939 million yen

Molders1,206 million yen

12.4%

Other307 million yen

3.1%


Molders1,755 million yen

14.7%

Other486 million yen

4.1%

Semiconductor related9,697 million yen

81.2%

Semiconductor related8,224 million yen

84.5%


9,738 million yen


3. Performance of Semiconductor Related Segment

FY ended Jan 2007 FY ended Jan 2008 FY ended Jan 2009 FY ended Jan 2010 FY ended Jan 2011

Sales Trends of Silicon Wafer Shipping ContainersSales of silicon wafer shipping containers increased by 9.6% over the previous fiscal year, as sales of in-process containers showed a 227.8% year-on-year increase on the back of a capital expenditure recovery in the semiconductor industry.

FOSB sales showed a 26.8% year-on-year increase for the first half of the fiscal year, before inventory adjustment resulted in a 9.5% year-on-year decline for the second half of the fiscal year, with a 6.9% year-on-year increase for the whole business year.

24.4% rise 22.6% fall


15.6% fall9.6% rise


4. Share of FOSB Shipping Results by Client

Japan

Overseas

SUMCO Group47.8%

Shin-EtsuHandotai17.0%

Other (Japan)15.4%

Overseas19.8%

Japan

Overseas

Trend in Share of FOSB Shipping Results by Client

SUMCO Group48.4%

Shin-Etsu Handotai

15.7%

Other (Japan)15.5%

Overseas20.4%

Fiscal year ended Jan

2010


Fiscal year ended Jan

2011


6. Quarterly Sales Trends

1,514

2,216

2,4792,322

2,800

2,5652,489

2,328

1,869

2,467

2,702 2,698

3,362

2,8542,942

2,780

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1Q FY

ended Jan

2010

2Q FY

ended Jan

2010

3Q FY

ended Jan

2010

4Q FY

ended Jan

2010

1Q FY

ended Jan

2011

2Q FY

ended Jan

2011

3Q FY

ended Jan

2011

4Q FY

ended Jan

2011Non-Consolidated Consolidated

Quarterly Sales Trends (Consolidated and Non-Consolidated) (Unit: millions of yen)Consolidated sales declined by 5.5% from the third quarter of the fiscal year to 2,780 million yen.

Non-Consolidated sales declined by 6.4% from the third quarter of the fiscal year to 2,328 million yen.

At Miraial Co., Ltd., sales of FOSB mainstay products declined due to inventory adjustment for the demand of silicon wafers from the beginning of autumn.

Sales from Sanjo Seiki Co., Ltd., a consolidated subsidiary, were relatively flat despite signs of a recovery in capital expenditure in some industries.



6. Performance of Semiconductor Related Segments

Quarterly Sales Trends of Silicon Wafer Shipping ContainersFourth quarter sales of shipping containers declined 13.0% over the previous quarter due to semiconductor inventory adjustment from the beginning of autumn.

1Q FY ended Jan

2010

2Q FY ended Jan

2010

3Q FY ended Jan

2010

4Q FY ended Jan

2010

1Q FY ended Jan

2011

2Q FY ended Jan

2011

3Q FY ended Jan

2011

4Q FY ended Jan

2011


47.6% rise

8.8% rise 7.3% fall14.0% rise 7.7% fall

3.0% fall13.0% fall

Copyright：2011© Miraial Co., Ltd. All Rights Reserved.

+1,256

9

Year-on-Year Comparison (Unit: millions of yen)

7. Analysis of Factors Influencing Change in Consolidated Operating Income


Year ended Jan 2010 Year ended Jan 2011

Operating income increase

1,655

2,911

+839+117

△133+319△129 +243

Depreciation

SGA expenses

Labor and other costsQuantity/Price

Cost reduction Sanjo Seiki


Fiscal year ended January 2010


Amount Year-on-year rate Amount

Year-on-year rate

Sales 9,738 △30.5 11,939 22.6

Gross profit 3,434 △24.2 4,855 41.3

Operating income 1,654 △21.2 2,911 75.9

(Operating margin) 17.0 24.4

Ordinary income 1,942 △16.4 3,179 63.7Current fiscal year pre-tax net income 1,590 △21.7 3,462 117.7

Current fiscal year net income 953 △26.9 2,191 129.8

Capital expenditures 120 79

Depreciation 900 604

Net assets 14,948 15,643

Total assets 19,611 20,196



Amount Year-on-year rate Amount

Year-on-year rate

Sales 8,531 △23.1 10,184 19.3

Gross profit 3,257 △17.6 4,406 35.3

Operating income 2,009 △11.4 3,022 50.4

(Operating margin) 23.6 29.7

Ordinary income 2,134 △10.1 3,141 47.1Current fiscal year pre-tax net income 1,780 △19.0 3,255 82.9

Current fiscal year net income 996 △26.5 1,974 98.2

Capital expenditures 80 53

Depreciation 857 564

Net assets 13,927 15,289

Total assets 17,175 18,711

Consolidated (Unit: millions of yen/%) Non-Consolidated (Unit: millions of yen/%)


8. Reference: Performance Overview


9. Reference: Cash Flows (Consolidated)

Cash Flows (Unit: millions of yen)

Year ended January 2010

Year ended January 2011 Change

Cash flows provided by operating activities 2,674 2,326 △348

Cash flows used in investing activities △1,645 △327 1,317

Cash flows used in financing activities △663 △967 △304

Decrease in Interest-bearing debt △359 △360 △1

Dividends paid △303 △607 △303Cash and cash equivalents at end of year 6,404 7,435 1,031


Financial Forecast for the Fiscal Year Ending January 2012


1. Financial Forecast Summary

World semiconductor markets are expected to continue their macro expansion under the influence of an upswing in the business cycle.

Although FOSB demand decreased due to deterioration in the supply-demand balance from the second half of last year, production of 4.1 million 300 mm silicon wafers is expected by the end of this fiscal year, a double-digit increase compared with the previous fiscal year.

The quantity of reused FOSBs is estimated to account for around 30% of containers overall, with no rapid increase in the immediate future.

With regard to the subsidiary Sanjo Seiki Co., Ltd., demand in the molders industry has shown signs of a recovery through rises in consumption within the automobile and household appliance industries due to business stimulation measures introduced by the government last year. Demand for electrical components associated with the auto industry's eco-friendly vehicles and for bioscience and other cutting-edge fields is expected to continue to rise during the current fiscal year.

Sales

Miriaial Co., Ltd. will continue to strengthen collaboration within the group and further reduce costs.

Capital expenditure will be limited to that needed for rationalization and quality maintenance.

Investment for 450 mm wafer related investment will be conducted on an as needed basis.

Operating Income and Ordinary Income



2. Financial Forecast


Income Statement (Consolidated) (Unit: millions of yen / %)

Sales by Segment (Unit: millions of yen / %)

Fiscal year ending January 2012 (forecast)Fiscal year ended January

2011Second quarter results

Fiscal year ending January 2012

Amount Component ratio

Year-on-year rate Amount Component

ratioYear-on-year rate Amount Component

ratioYear-on-year rate

Plastic molding segment 10,184 85.3 19.4 5,080 81.9 △5.3 10,430 82.6 2.4

Semiconductor related 9,697 81.2 17.9 4,850 78.2 △5.0 9,950 78.8 2.6

Others 486 4.1 58,1 230 3.7 △12.6 480 3.8 △1.4

Molder segment 1,755 14.7 46.0 1,120 18.1 31.5 2,200 17.4 25.3

Total 11,939 100.0 22.6 6,200 100.0 △0.3 12,630 100.0 5.8


Fiscal year ending January 2012 (forecast)Second quarter results

Fiscal year ending January 2012

Amount Year-on-year rate Amount Year-on-year

rate Amount Year-on-year rate

Sales 11,939 22.6 6,200 △0.3 12,630 5.8

Operating income 2,911 76.0 1,390 △18.1 3,110 6.8

Ordinary income 3,179 63.7 1,530 △19.2 3,300 3.8Net income (this fiscal year) 2,191 129.8 930 △35.1 2,020 △7.8

Business Environment of the Company


Trends in the Silicon Wafer Market

Despite a temporary decline, it is expected that demand will increase for silicon (particularly 300 mm) wafers in relation to an expansion in the use of semiconductors.

Expected demand for 300 mm silicon wafers (Unit: thousand wafers/month)

Business Environment of the Company

Source: company forecast

0

1,000

2,000

3,000

4,000

5,000

December 2011 December 2012 December 2013 December 2014

Policies for the Current Fiscal Year


Policies for the Current Fiscal YearPolicies for the Current Fiscal Year

Semiconductor Related Segment

Molders Segment

(1)Stabilize existing business income(2)Build new revenue resources (3)Strengthen the corporate base

Important measures for Sanjo Seiki Co., Ltd.


(1) Stabilize Existing Business Income

Fully pursue profit acquisition (300mm) in proportion to market expansion

Incorporate greater quality (competitiveness through quality)

Prepare for share acquisition with the next generation in mind (450 mm)

Expand sales of high-margin products which integrate production, sales and technology and develop new products


Strengthen Competitiveness by Being No. 1 for Quality and by Further Reducing Costs

Shipping containers In-process containers and cassettes


(2) Build New Revenue Resources

Future Business Strategy

New business creation

【 Utilize external resources 】Business alliance / collaboration with industries and universities/ M&A 【 Utilize internal resources 】In-house development

Promote the Development of New and the Expansion of Existing Business Areas

New product development

【 Utilize internal resources 】In-house development

Focus on spreading the business risk incurred through expansion and diversification of business areas Set sights on in-house development and on utilizing external resources such as business alliances, collaboration with industries and universities, joint development and M&A

Develop new products in existing business areas, and promote 450 mm and subsequent process deployment With a focus on the field of semiconductors, utilize group core technologies and meet needs through in-company collaborationFully strengthen the promotion of integrating the sales, technology, and manufacturing divisions


Future Business Strategy

(3) Strengthen the Corporate Base

1 Strengthen collaboration with Sanjo Seiki Co., Ltd.

2 Establish a stable revenue base and fiscal health


Important measures for Sanjo Seiki Co., Ltd.


Efforts to be the No.1 manufacturer of vertical type

molders

Construct a more efficient system of production

Increase shareGeneral, LIM, compression and transfer molders

Create top productsPromote development plans for a new molder system

Construct an increased production system with a select few

Maximize profit through greater price competitiveness


Thank you for your time today

IR Contact

<Notes about matters relating to the forecast for the future>

These materials are aimed at providing information to our investors and are not intended to solicit sales.

Forecasts made in these materials are based on targets and predictions, and do not provide a definite promise or guarantee. Please use these materials in the knowledge that the future achievements of this company may differ from the current predictions.

Moreover, while statements such as those made about the industry are based on data considered to be reliable, this company does not guarantee their accuracy or completeness.

These materials and data are presented to investors on the premise that they are used at the discretion of the investors themselves, regardless of their objective, and with the understanding that this company shall bear no responsibility for their use under any circumstances whatsoever.

“The future of Miraial”Aiming toward tomorrow

"Ponder the future, consider the future, build the future"Challenge yourself and create dreams

Accounting Department, Miraial Co., Ltd.Phone：03-3986-3782 FAX：03-3986-3853 E-Mail：[email protected]

Miraial Co., Ltd. Co., Ltd. Results Briefing for ... Financial Forecast for the Fiscal Year Ending...

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