NGK Insulators, Ltd. Nov. 2009

Transcription

1 NGK Insulators, Ltd. Nov. 29

2 Today's Speakers Name Shun Matsushita Hiroshi Wada Title President & Chief Executive Officer Director & Senior Vice President

3 Bil. 1st Half Result Sales Operating Income Net Income Sep.'8 Sep.'9Est. Sep.'9Est. Sep.'9Est. Sep.'9 Sep.'8 Sep'9Est. Sep'9Est. Sep'9Est. Sep.'9 Sep.'8 Sep.'9Est. Sep.'9Est. Sep.'9Est. Sep.'9 (Result) (May'9) (Jul'9) (Sep'9) (Result) (Result) (May'9) (Jul'9) (Sep'9) (Result) (Result) (May'9) (Jul'9) (Sep'9) (Result)

4 Points of 1stH Result (Unit: Bil.) Sales & Income decreased from the 1stH of previous year Due to worldwide economic slowdown, demand for automotive related ceramic products, ceramic components for semi-conductor production equipment and Beryllium Copper products decreased sharply. Change from the 1stH of previous year Sales 48.9 (Power +3., Ceramic 35.5, Electronics 16.4 ) Op. Income 22.7 (Power+.6, Ceramic 16.7, Electronics 6.6 ) Impact of stronger yen ( 95/$, 128/ER) Sales 5.8 Op.Income 1.4 Forecast for Fiscal year Ending March 21 Sales & Income will decrease from previous year due to weaker demand for automotive related ceramic products, ceramic components for semi-conductor production equipment, Beryllium Copper products and so on, even though the business trend for the Power business is firm.

5 Net Sales of NGK / Half Term Bil. After consolidation elimination Engineering Electronics Power Ceramic Products st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 3/ 8 3/ 9 3/ 1(May) 1st Half 2nd Half 3/ 1(Sep)

6 Income of NGK / Half Term Bil Electronics Power Ceramic Products Engineering st Half nd Half st Half nd Half -1. 1st Half nd Half 3/ 8 3/ 9 3/ 1(May) -.5 1st Half 1.7 2nd Half 3/ 1(Sep)

7 Net Sales of NGK After consolidation elimination Bil (Engineering) Electronics Ceramic Products /'7 3/'8 3/'9 3/'1Est. 3/'1Est. (May 9) (Sep 9) Power

8 Income of NGK Bil Operating Income Net Income /'7 3/'8 3/'9 3/'1Est. 3/'1Est. annual average (May 9) < /$> <116> <118> <14> <9> <93> < /Euro> <147> <162> <153> <12> <129> (Sep 9)

9 Factors of Sales Variation Bil FX Rate Automobile related Metal related -4 Semi-conductor related Industrial equipment -3-4 NAS +5 Others /'9 3/'1

10 Factors of Op. Income Variation Bil FX Rate -1.7 Automobile related Industrial equipment -1.4 Power related +1. Others /'9 3/'1

11 Power Business Sales & Operating Income Bil After consolidation elimination 75 (6.4) 81 (8.7) 1.7% 8.5% Sales 83 (7.6) Op. Income Ratio (8.) (8.) 9.1% 9.2% 9.3% ( )Op.Income /'7 3/'8 3/'9 3/'1Est. 3/'1Est. (May. 9) (Sep. 9) -4.

12 Overview Electrical Insulators : -Domestic demand for 5KV transmission line project is at peak. -Domestic power demand for industrial use is decreasing. -Demand for UHV and direct current in China is active. -Construction of transmission lines in the Middle East is active. NAS batteries : -Overseas market is active due to orders received from Abudhabi and EDF-EN. -Demand for stabilization of the power distribution system is expected to increase due to the spreading use of renewal energy. Tasks Electrical Insulators : - Reinforce and expand production base in China. - Establish stable goods supply. NAS batteries - Establish increased production. - Promote cost reduction.

13 Expansion of Power Market in China (Million of KW) 2 Power generation facilities in China Increase from 211 to 215 Increase from 216 to 22 8 million KW/Year 13 th Project 15 Increase from 26 to 21 7 million KW/Year 12 th Project 1 Increase from 21 to 25 6 million KW/Year 11 th Project Inclusive UHV transmission 5 4 million KW/Year 1 th Project ,26 Start UHV Reinforce UHV Combination 1, Sales Forecast in China (Unit:Billion of Yen)

14 Bil Sales(Export) Sales(Domestic) Op.income(right axis) Sales & Income of NAS batteries business /'6 3/'7 3/'8 3/'9 3/'1Est. 3/'11Est. 3/'12Est. -5.

15 Bil % Ceramic Products Business Sales & Operating Income After consolidation elimination (31.) (43.8) 27.% Sales (22.2) Op. Income Ratio (4.5) ( )Op.Income (7.) % 7.6% 4.8% 3/'7 3/'8 3/'9 3/'1Est. 3/'1Est. (May 9) (Sep 9)

16 Overview Due to worldwide economic slowdown, car sales have decreased sharply. Demand will tend to increase mid & long-term due to CO2 and emission regulations being tightened worldwide. Automotive catalytic converters ( Honeycomb Ceramics ) : Worldwide introduction of emissions regulations. Cd-DPF& Large-size honeycombs :Tighter regulations for truck and construction equipment. SiC-DPF : Tighter emission regulations in EU. Stiff competition with other materials. Tasks Honeycomb Ceramics & Cd-DPF & Large-size honeycomb & SiC- DPF: Establish the optimum production framework to deal with reduced demand for production. SiC-DPF :Differentiate from other materials in terms of performance and price.

17 Bil Sales Forecast of Ceramic Products Business After consolidation elimination Sales of Other products Sales of Honeycomb ceramics Sales of Cd-DPF & Large size Honeycomb Sales of SiC-DPF /'7 3/'8 3/'9 3/'1Est. (Sep. 9) Diesel related products

18 (Million of Car) Automobile Sales Forecast Broken Line:Previous Forecast / Solid Line:Current Forecast BRICs E U U S Japan

19 Electronics Business Sales & Operating Income Bil After consolidation elimination 73 (13.1) 78 (13.5) 17.8% 17.4% Sales Op. Income Ratio 6 (3.) 5 (2.5) ( )Op.Income 47 (2.) 2 5.1% 5.% 4.3% 3/'7 3/'8 3/'9 3/'1Est. 3/'1Est. (May. 9) (Sep. 9)

20 Overview Beryllium Copper :Demand decreases due to economic slow down. Ceramic Components for Semi-conductor Production Equipment : Demand decreases due to decline of investments of semiconductor makers. Ceramic Actuators for Color Printer Heads : Demand decreases due to worldwide slow down in printer market. Soshin Electric Products : Demand for industrial equipment and data & communications related products tends to decrease. Tasks Review production framework to cope with declining demand. Promote development and expansion of new product sales.

21 Bil. Sales Forecast of Electronics Products Business Metal related products Ceramic components for semi-conductor manufacturing Electronic related products Soshin Electric Co '7/3 '8/3 '9/3 '1/3Est 6 47 (Sep. 9)

22 ($Bil.) 3 Forecast of Market Scale of Semiconductor and Production Equipment ( 単位 :$B) 6 ($Bil.) 25 Semiconductor Market 5 Shipping amount of semiconductor Semiconductor Production Equipment Market Shipping amount of production equipment ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 '11 From WSTS & Gartner

23 9 Medium Term Estimates / Sales After consolidation elimination Bil Engineering Electronics Power Ceramic Products Market expansion due to tighter emission regulations. Demand for electrical insulators due to the expansion of overseas market. Demand for NAS batteries in overseas market is increasing /'8 3/'9 3/'1Est. 3/'1Est. 3/'12Est. (May 9) (Sep 9) (May 9)

24 9 Medium Term Estimates / Operating Income Bil Engineering Electronics Power Ceramic Products OP/Sales 19.% 12.% /'8 3/'9 3/'1Est. 3/'1Est. 3/'12Est. (May 9) 17. (Sep 9) (May 9) 6.5% 7.6% 14.5% ROE 15.3% 8.1% 3.9% 4.3% 1.%

25 R&D Input Consolidated R&D Consolidated R&D/Sales Ratio ( Bil.) Parent R&D Parent R&D/Sales Ratio 6.3% 6.3% 4.7% 4.7% 4.9% 4.7% 4.9% 4.% % 3.6% /'6 3/'7 3/'8 3/'9 3/'1Est. (Sep 9)

26 Capital Expenditures Bil Power Bus. Ceramic Prod.Bus. Engineering Bus. Electronics Bus. Corporate Depreciation and amortization /'6 3/'7 3/'8 3/'9 3/'1Est. (Sep 9)

27 Summary of Cash Flow ( Bil.) Income before taxes 78.2 Income taxes paid Depreciation Increase in Acct. Rec. Increase / Decrease in inventories Other changes Operating Activities 3/ 8 3/ 9 3/ 1Est Property, plant & equip Disposal, investment securities Other investments Investing Activities

28 Acquisition of treasury stock -.6 3/ 8 3/ 9 3/ 1Est Cash dividends Redemption of bonds Proceeds from new borrowings Other Financing Activities Effect of exchange rate change Net Changes in Cash & eq Change in consolidated subsidiaries Cash & eq. at End of Year

29 Total Asset & ROE Bil. % 8 Net Asset ROE /'6 3/'7 3/'8 3/'9 3/'1EST

30 EPS & Payout Ratio EPS Dividents Payout Ratio 26.5% % (Unit: ) % 29.9% 16.1% '6/3 '7/3 '8/3 '9/3 '1/3Est Number of Stocks Issued 357Mil 357Mil 338Mil 338Mil 338Mil Number of utstanding Stocks 337Mil 337Mil 337Mil 327Mil 327Mil

31 Semi-annual Sales and Operating Income by Segment (1) After consolidation elimination ( Bil.) Total 1st H 3/ 9Actual 2nd H Total 1st H 3/ 1 Est. 2nd H Total Sales Operating Income OI Margin 19% 3% 12% 6% 9% 8% Power Business Sales Operating Income OI Margin 9% 1% 9% 9% 9% 9%

32 Semi-annual Sales and Operating Income by Segment (2) After consolidation elimination ( Bil.) Ceramic Products Business 1st H 3/ 9 Actual 2nd H Total 1st H 3/ 1 Est. 2nd H Total Sales Operating Income OI Margin 25% 5% 17% 7% 8% 8% Electronics Business Sales Operating Income OI Margin 17% - 5% - 9% 4%

33 Disclaimer : This material is not an offer or a solicitation of an offer to buy or sell securities. Please note that although NGK has made careful efforts to update the contents in order to ensure the accuracy, this material may not provide or reflect the latest information. NGK assumes no responsibility for losses that result from use of this material. Please be aware that decisions regarding investing are the responsibility of users themselves.

34 NGK Insulators, Ltd. 2-56, Suda-cho, Mizuho-ku, Nagoya , Japan Finance & Accounting Department Tel. : Fax. : ir-office@ngk.co.jp NGK Homepage Address (English Version) :