business results&business forecast second quarter ......• progress of the business...
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DAINIPPON SCREEN MFG.CO.,LTD.Business Results & Business Forecast
Second Quarter Ended September 30, 2009November 10, 2009
DAINIPPON SCREEN MFG.CO.,LTD.Business Results & Business Forecast
Second Quarter Ended September 30, 2009November 10, 2009
Cautionary statement with respect to these materials;The earnings forecasts contained in these materials and communicated verbally, are based on the most recent information available to Dainippon Screen. However, rapid changes can occur in Dainippon Screen’s business environment, due to factors such as global economic changes, technological developments in the electronics industry and changes in the semiconductor and LCD panel markets. As a result, Dainippon Screen’s earnings performance and achievements may materially differ from those expressed in these materials. Figures have been rounded down to eliminate amounts less than ¥100 million yen, except per share figures.
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Business Results Second Quarter Ended September 30, 2009
President & COO Masahiro Hashimoto
Business Results Business Results Second Quarter Ended September 30, 2009Second Quarter Ended September 30, 2009
President & COOPresident & COO Masahiro HashimotoMasahiro Hashimoto
AgendaAgenda•• 2Q Business Result & Analysis 2Q Business Result & Analysis •• Business Environment & Order SituationBusiness Environment & Order Situation•• Progress of the Business Restructuring PlanProgress of the Business Restructuring Plan•• Financial & Capital AreaFinancial & Capital Area
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Business Results Second Quarter Ended September 30, 2009
Business Results Business Results Second Quarter Ended September 30, 2009Second Quarter Ended September 30, 2009
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2Q FY2010 Business Result2Q FY2010 Business Result
1Q
Result Forecast Result Forecast Result
Net Sales 25.9 39.6 41.4 65.5 67.3
OperatingIncome(Loss) (6.1) (7.9) (9.5) (14.0) (15.7)
OP Ratio -23.6% -19.9% -23.1% -21.4% -23.3%
Ordinary Income(Loss) (7.4) (8.6) (10.1) (16.0) (17.6)
NetIncome(Loss) (2.5) (8.5) (10.3) (11.0) (12.8)
2Q 1st Half
(Unit:Billions of JPY)
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(Unit:Billions of JPY) 1Q 2Q 1st Half 2nd Half Total(Revised)
Total(Previous)
Net Sales 25.9 41.4 67.3 85.6 153.0 140.0SPE 15.1 22.6 37.8 49.4 87.3 72.5FPD 2.2 7.2 9.4 9.9 19.4 21.0
Other Electronics 0.6 1.2 1.8 2.5 4.4 4.4GA 7.7 10.1 17.9 23.2 41.2 41.4
Others 0.2 0.1 0.3 0.3 0.7 0.7OperatingIncome(Loss) (6.1) (9.5) (15.7) (3.2) (19.0) (20.0)
Electronic Equipmentand Components (5.0) (8.8) (13.8) - - -
Graphic Arts Equipment (0.9) (0.7) (1.7) - - -Others (0.1) 0.0 (0.1) - - -
OrdinaryIncome (Loss) (7.4) (10.1) (17.6) (4.3) (22.0) (23.5)NetIncome (Loss) (2.5) (10.3) (12.8) 0.8 (12.0) (15.0)
FY2010Result Forecast
Rate 1$=90yen 1 €=130yen
FY2010 Business ForecastFY2010 Business Forecast
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-17.0
-15.0
-13.0
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
▲3.2
2H Forecast
1HResult
1H Forecast
(3.2)bn(15.7)bn(14.0)bnOperating Income (Loss)
85.6bn67.3bn65.5bnNet Sales
(Unit: Billions of JPY)
Revised : JPY(3.2)bnRevised : JPY(3.2)bn
Previously announced : JPY (6.0)bnPreviously announced : JPY (6.0)bn
2H Business Forecast2H Business Forecast
Operating IncomeOperating Income
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101%
105%
87%
109%
vsvs Forecast Forecast ((%%))PointPoint
1H Results1H Results
Bottomed out in 1Q and have been improving
Resulted as planned
Remained low, but showed the recovery trend
Increased significantly for foundries
17.9GA
1.8 Other Electronics
9.4FPD
37.8SPE
(Unit:Billions of JPY)
1H Result JPY (1H Result JPY (1515..77)bn)bn
0.0
0.1
(1.8)
vsvs Forecast Forecast (amount(amount))
PointPoint1H Results1H Results
Slightly increased due to cost reduction measures
Declined compared to the forecast due to increased provision of inventories
(0.1)Other
(1.7)GA
(13.8)Electronic Equipment & Components
(Unit:Billions of JPY)
Net SalesNet Sales
Operating IncomeOperating Income
1H Result JPY 67.3 1H Result JPY 67.3 bnbn Forecast JPY65.5bnForecast JPY65.5bn
11stst Half FY2010 Business Result AnalysisHalf FY2010 Business Result Analysis
SPE: Semiconductor Production Equipment, FPD: FPD Production Equipment, GA: Graphic Arts Equipment.
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Net Sales/Operating Income(Consolidated)
0
20
40
60
80
100
FY09/1H FY09/2H FY10/1H FY10/2H-20
-15
-10
-5
0
5Net Sales(Left)Operating Income(Right)
Electronic Equipment & Components
<SPE>・Foundries’ investment accelerated beyond our expectation・DRAM price reached up to profitable level
and both of DRAM and Flash makers started investment for miniaturization
<FPD>・New capital expenditures became active・LCD panel makers began to shift its investment location to China
2nd Half Outlook2nd Half Outlook
1st Half1st Half
<SPE>・Memory makers are expected to continue capital expenditures for miniaturization・Orders from foundries are firm although slowing down a little
<FPD>・Businesses in China and Taiwan have been increasing・LCD production equipment compatible with spacer process,
utilizing Inkjet printing technology began users’ evaluation ・Direct imaging equipment is in the final stage toward mass production・Promoting product development utilizing nozzle-printing method
(Unit: Billions of JPY)
Business Environment by SegmentBusiness Environment by Segment
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・Business situation in Japan, U.S. and the Europe is expected to remain harsh, but U.S. had a good start thanks to successful results in the “Print” exhibition
・Asia is upward by stimulating potential demand・POD sales have been increasing since the start of 2H・Both POD and CTP sales have been improving
Graphic Arts EquipmentGraphic Arts Equipment
・Economic recession and higher yen in Japan, America and the Europe
・Unit sales of main products decreased year on year CTP : slightly over 50% POD : 40%
・Implementing sales strategy by region and expanding production in the China factory
Net Sales/Operating Income(Consolidated)
0
7
14
21
28
35
FY09/1H FY09/2H FY10/1H FY10/2H-3
-2
-1
0
1
2
3Net Sales(Left)Operating Income(Right)
2nd Half Outlook2nd Half Outlook
1st Half1st Half
(Unit: Billions of JPY)
Business Environment by SegmentBusiness Environment by Segment
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30.6
44.0
23.834.2
18.213.4
22.6
3.8
16.7
12.11.9 1.2
2.7
2.0
15.1
16.5
7.216.1
17.5
2.2
2.0
1.2
2.0
0.6
13.6
14.4
7.7
16.6
12.3 10.1
19.0
15.0
0.3
0.5
0.4
0.2
0.6
0.40.4
0
30
60
90
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q-20
-10
0
10
20
SPE FPD Other Equip GA Other Operating Income(Right)
44.444.4
▲▲6.6.11
41.441.4
▲▲6.6.332525..9 9
▲▲99..55
(Unit: Billions of JPY)
Blue italic figures show quarterly total sales.
OperatingIncome
NetSales
FY08 FY09 FY10
Quarterly Net Sales and Operating Income Quarterly Net Sales and Operating Income (Consolidated)(Consolidated)
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29.9 25.0 29.9 31.4
8.9 7.4 11.2
34.3
11.427.3
28.8
4.1
19.314.4
16.3
11.2 7.4
11.3
0.2 0.03
0.1
1.6
4.8
0.80.82.2
1.8
2.21.4
2.40.9
0.40.8
15.4
10.8
0
0.010.04
0.10.1
0
25
50
75
100
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q0
40
80
120
160SPE FPD Other Equip GA Other Order Backlog(Right)
63.663.6
19.619.6
60.260.2
2020..55
51.651.6
7700..55
Order Backlog
OrderReceived
Blue italic figures show quarterly total orders received
(Unit: Billions of JPY) FY08 FY09 FY10
Quarterly Orders Received and Order Backlog Quarterly Orders Received and Order Backlog (Consolidated)(Consolidated)
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2Q Order received : JPY34.3bn(Consolidated)Orders from foundries increased substantially and memory makers started investment
2Q Order received : JPY2Q Order received : JPY334.3bn4.3bn((ConsolidatedConsolidated))Orders from foundries increased substantially Orders from foundries increased substantially and memory makers started investment and memory makers started investment
0%
50%
100%
FY08/4Q FY09/1Q FY09/2Q FY09/3Q FY09/4Q FY10/1Q FY10/2Q
Other
LogicMemory
Foundry
System LSIImaging Device
70.5%
9.4%
18.5%
1.4%
DRAM:1.5%Flash:7.8%
Japan Taiwan KoreaOther Asia
NorthAmerica Europe
0% 20% 40% 60% 80% 100%
1H orders by location
(Nonconsolidated)
Semiconductor Production Equipment Semiconductor Production Equipment Quarterly Quarterly OrOrder der RReceivedeceived Ratio by Device Application Ratio by Device Application (Nonconsolidated)(Nonconsolidated)
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0%
50%
100%
FY08/4Q FY09/1Q FY09/2Q FY09/3Q FY09/4Q FY10/1Q FY10/2Q
Over G8
G7
G6
G5
Under G4
Other
FPDFPD Production Equipment Production Equipment Quarterly Orders Received by Generation Quarterly Orders Received by Generation (Nonconsolidated)(Nonconsolidated)
Japan Taiwan Korea China
0% 20% 40% 60% 80% 100%
Capital Expenditures for G8 resumedMost sales are covered by Coater/developersCapital Expenditures Capital Expenditures for G8 for G8 resumedresumedMost sales are covered by Most sales are covered by Coater/developersCoater/developers
1H orders by location
(Nonconsolidated)
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Progress of the Business Restructuring PlanProgress of the Business Restructuring PlanProgress of the Business Restructuring Plan
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Business Related
R&D
Employment Cost
Expenditures
Propotional CostTargetActions implementedContinuedContinued
DoneDone
ContinuedContinued
ContinuedContinued
ContinuedContinued
The target of cost reduction: JPY 40 billionTotal amount of the actions implemented is about 35 billion yenThe target of cost reduction: JPY 40 billionThe target of cost reduction: JPY 40 billionTotal amount of the actions implemented is about Total amount of the actions implemented is about 35 billion yen35 billion yen
Progress of the Business Restructuring PlanProgress of the Business Restructuring Plan
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Financial AreaFinancial AreaFinancial Area
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-30
-20
-10
0
10
20
30
40
Mar.2007 Mar.2008 Mar.2009 Sept.2009
Operating CF Investing CF Financing CF
・Operating CF : JPY3.0bn・Investing CF :JPY3.4bn・Financing CF:JPY18.5bn
Consolidated Cash FlowsConsolidated Cash Flows
Free Cash Flow:JPY6.4bnFree Cash FlowFree Cash Flow::JPY6.4bnJPY6.4bn
(Unit: Billions of JPY)
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-150
-100
-50
0
50
100
150
Mar. 2008 Jun. Sept. Dec. Mar.2009 Jun. Sept.-0.50
0.50
1.50
2.50
Interesting-bearing Debt Cash and Time DepositsEquity D/E RatioNet D/E Ratio
100
1,50
50
*Lease obligations are not included in interesting-bearing debt as end of Mar. 2008
InterestingInteresting--bearing Debt and D/E Ratiobearing Debt and D/E RatioInteresting-bearing D
ebtEquity
Cash
Net D
ebt
Interesting-bearing Debt (Unit: Billions of JPY) D/E Ratio
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Decreasing interest-bearing debt - Business environment has been better cash flow has been improving
Accelerating advance payment for interest-bearing debtMinimize the risk of increasing interest on debt
Expanding EquitySelling of securities holdings
1.191.141.110.250.10Net D/E ratio
2.01
25.9%
Sept. 2009
1.851.480.470.36D/E Ratio
27.5%28.1%41.9%41.6%Equity Ratio
Jun. 2009Mar. 2009Mar. 2008Mar. 2007
Focus on improving “Equity ratio” and “D/E ratio” without capital increaseFocus on improving Focus on improving ““Equity ratioEquity ratio”” and and ““D/E ratioD/E ratio”” without without capital increasecapital increase
Financial AreaFinancial Area
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SPE: Sales rebounded strongly.We focus on sales promoting for single wafer cleaning tools and Flash Lamp Annealing systems.
FPD business is in a trend of recovery but full recovery will be in the next fiscal year.We focus on gaining new business area.
GA business have remained as planned.We focus on additional cost reduction for CTP and sales expansion for POD.
Complete the business restructuring plan Accomplishment of BEP JPY150bn Positive profit in the next fiscal year
Strengthening the financial base
Business areaBusiness areaBusiness area
Areas we focus onAreas we focus onAreas we focus on
SummarySummary
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