dainippon screen mfg. co., ltd.aug 9, 2013 dainippon screen mfg. co., ltd. business results &...

DAINIPPON SCREEN MFG. CO., LTD.Business Results & Forecast

The first quarter ended June 30, 2013

Senior Managing Director & CFO Osamu RyonaiAug 9, 2013

DAINIPPON SCREEN MFG. CO., LTD.DAINIPPON SCREEN MFG. CO., LTD.Business Results & Forecast Business Results & Forecast

The first quarter ended June 30, 2013The first quarter ended June 30, 2013

Senior Managing Director & CFO Osamu RyonaiSenior Managing Director & CFO Osamu RyonaiAug 9, 2Aug 9, 20013 13

• 1Q Business Results• Business Situation• Progress of Approaches for Earnings Recovery • FY2014 Business Forecast

AgendaAgenda

Cautionary statement with respect to these materials;The earnings forecasts contained in these materials and communicated verbally, are made in accordance with currently available information and rational assumptions. Dainippon Screen dose not promise that the forecasts or estimates will be accurate. Therefore, it should be noted that actual results could differ significantly due to a variety of factors. Figures have been rounded down to eliminate amounts less than ¥100 million, except per share figures.

1

Business Results1st Quarter ended June 30, 2013

Business ResultsBusiness Results11stst Quarter ended June 30, 2013Quarter ended June 30, 2013

2

FY2014 1Q Business Results FY2014 1Q Business Results (consolidated)(consolidated)

* SE: Semiconductor Equipment、FE: FPD Equipment、MP: Media and Precision Technology* Amounts for FY2013 in SE and FE have been reclassified with amounts calculated applying retroactively completion of installation basis.

Result vs.4Q vs.1Q

（Unit：Billions of JPY）１Q 2Q 3Q 4Q Full 1Q % %

66.6 42.8 34.8 55.4 199.7 59.3 7.0% -11.0%

51.6 28.0 23.5 37.3 140.6 43.3 16.0% -16.1%4.8 2.0 2.0 3.0 12.0 4.1 35.2% -14.8%9.9 12.5 9.0 14.7 46.3 11.6 -20.8% 16.9%

Graphic Arts Equip.（MT) 8.9 10.7 8.1 12.3 40.1 10.0 -18.5% 12.6%PCB Equip.（PE) 1.0 1.8 0.9 2.3 6.1 1.5 -33.2% 54.7%

0.1 0.1 0.1 0.2 0.7 0.1 -40.5% 14.5%

Operating Income 3.1 (4.4) (4.8) 1.2 (4.8) 2.2 75.1% -29.7%

3.6 (4.4) (3.1) 0.1 (3.7) 2.1 1267.8% -42.3%0.2 (0.5) (0.5) (0.0) (0.8) 0.1 - -56.3%

(0.3) 1.0 (0.6) 1.4 1.4 0.4 -70.8% -(0.4) (0.4) (0.4) (0.3) (1.7) (0.4) - -

3.3 (4.7) (5.2) 1.6 (5.0) 2.2 38.4% -32.8%

2.0 (8.9) (5.3) 0.9 (11.3) 1.6 87.2% -17.3%

FY2013

SENet Sales

Result (Completion of installation basis）

FY2014

Ordinary Income

Net Income

FE

Other

MP

Other & Adjustments

SEFEMP

3

1Q 4Q Diff. Point

43.3 37.3 5.9

Sales of single wafer cleaning equipment and coater/developersincreased.By region, sales to North America and Europe decreased, but those toTaiwan and Japan increased.

4.1 3.0 1.0 Sales of coater/developers for small- and medium-sized glasssubstrate increased.

11.6 14.7 (3.0)

MT 10.0 12.3 (2.2) Sales of consumable supplies (ink) increased, but as for equipmentboth CTP and POD sales decreased due to seasonal factors.

PE 1.5 2.3 (0.7) Both sales of exposure system and inspection system decreased.

Segment

SE

FE

MP

1Q 4Q Diff. Point

2.1 0.1 1.9 Earnings growth owing to sales increase and cost cutbacks.

0.1 (0.0) 0.1 Earnings recovery owing to sales increase.

0.4 1.4 (1.0) Profit decline due to sales decrease.MP

SE

FE

Segment

1Q JPY 59.3bn. / 41Q JPY 59.3bn. / 4QQ JPY 55.4bn. (JPY 55.4bn. (Differential : JPY3.8bn. Increase)Differential : JPY3.8bn. Increase)

1Q JPY 2.2bn. / 4Q1Q JPY 2.2bn. / 4Q JPY 1.2bn. (Differential : JPY 0.9bn. Increase)JPY 1.2bn. (Differential : JPY 0.9bn. Increase)

Net SalesNet Sales

Operating IncomeOperating Income

FY2014 1Q Business Result FY2014 1Q Business Result (over the previous Q)(over the previous Q)

(Unit : Billions of JPY)


* Amounts for FY2013 in SE and FE have been reclassified with amounts calculated applying retroactively completion of installation basis.

4

32.736.5

49.555.4

48.2

36.1

54.2 51.6

28.023.5

37.343.3

8.29.2

6.1

9.0

5.1

9.3

10.4

7.74.8

2.0

2.0

3.0

4.110.3

9.9

9.0

28.9

12.8

13.5 14.6

11.0

10.612.5

10.3

13.0 11.614.73.8

2.2

4.62.7

(4.4)

1.2

(4.8)

6.37.5 8.1

6.2

0.6

3.1

0.0

30.0

60.0

90.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q(20.0)

(10.0)

0.0

10.0

20.0

SE FE MP Other Operating Income (right) OPNet Sales

FY2011

Net SalesNet Sales

FY2012 FY2013

51.4 58.9 66.2 78.3 64.5 58.4 50.2 76.8 66.6 42.8 34.8 55.4

Quarterly Net Sales and Operating Income Quarterly Net Sales and Operating Income (Consolidated)(Consolidated)


59.3

FY2014

* Amounts for FY2013 in SE and FE have been reclassified with amounts calculated applying retroactively completion of installation basis.

Shipment basis Completion of installation basis

5


Quarterly Orders Received and Order Backlog (Consolidated)Quarterly Orders Received and Order Backlog (Consolidated)

FY2012

52.5 49.0 45.353.7

39.132.8

43.1

29.238.2

25.4 29.035.0 35.1

5.1 8.6

6.4

9.4

6.1

2.7

2.0

0.6

1.1

6.08.4

2.37.3

11.1 10.7

10.7

13.0

12.9

11.1

12.1

13.1

11.2

10.5

13.412.9

10.8

75.083.1

69.5

104.197.9

70.1

58.1

91.784.496.0

102.2107.6

78.7

0.0

25.0

50.0

75.0

100.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q0.0

40.0

80.0

120.0

SE FE MP Other Order Backlog (right)Order BacklogOrder Received

FY2011

Order Order ReceivedReceived

FY2013

68.9 68.4 62.5 76.2 46.758.2 57.3 42.9 50.6 42.0 48.3 50.8

FY2014

* Order backlog for FY2013 in SE and FE have been reclassified with amounts calculated applying retroactively completion of installation basis.

55.3

Shipment basis Completion of installation basis

6

0%

50%

100%

FY11/1QFY11/2Q

FY11/3QFY11/4Q

FY12/1QFY12/2Q

FY12/3QFY12/4Q

FY13/1QFY13/2Q

FY13/3QFY13/4Q

FY14/1Q

Other

Logic

Memory

Foundry

ImagingDevice

24％

0% 20% 40% 60% 80% 100%

1Q Order received : JPY 35.1 bn. (consolidated)1Q Order received : JPY 1Q Order received : JPY 35.135.1 bn. (consolidated)bn. (consolidated)

31%DRAM: 8%Flash: 23%

25%

JapanJapan TaiwanTaiwan KoreaKorea SingaporeSingaporeUSAUSA

OtherOtherChinaChina EuropeEurope

Semiconductor Production Equipment Semiconductor Production Equipment Quarterly Quarterly OrOrder der RReceivedeceived Ratio by Device Application (Nonconsolidated)Ratio by Device Application (Nonconsolidated)

FY2014 1Q ordersby region

(Nonconsolidated)

*Parts are classified as Other from FY12/2Q

7

0%

50%

100%

FY11/1QFY11/2Q

FY11/3QFY11/4Q

FY12/1QFY12/2Q

FY12/3QFY12/4Q

FY13/1QFY13/2Q

FY13/3QFY13/4Q

FY14/1Q

Over G8

G7

G6

G5

G4

Under G3

Other

0% 20% 40% 60% 80% 100%

1Q order received : JPY 7.3 bn. (consolidated)1Q order received : JPY 7.3 bn. (consolidated)1Q order received : JPY 7.3 bn. (consolidated)

Japan Taiwan China

FPDFPD Production Equipment Production Equipment Quarterly Orders Received by Generation Quarterly Orders Received by Generation (Nonconsolidated)(Nonconsolidated)

FY2014 1Q ordersby region

(Nonconsolidated)

*Calculated by gross in FY12/4Q

8

45.4 40.6 38.6 39.9 39.6

11.3 9.8 6.9

49.4 61.2 78.5 73.1 69.5

52.070.9 45.0 41.0 47.9

31.2

39.937.6

40.455.7

31.2 28.9 29.1 32.930.8

7.47.2

0

100

200

300

2010/3 2011/3 2012/3 2013/3 2013/6

Cash & time depositsNotes & accounts receivableInventoriesOther current assetProperty, plant & equipmentIntangible assets/investment

77.255.5

47.678.6

52.3

81.960.7

65.9

65.087.6 84.0 81.376.8

3.1

1.81.9

2.9 3.518.8

26.0 23.721.3 23.7

70.4

81.4

0

100

200

300

2010/3 2011/3 2012/3 2013/3 2013/6

Notes & accounts payableInterest-bearing debtOther current liabilitiesOther noncurrent liabilitiesNet assets

Assets（Unit: Billions of JPY）

Trend in B/S (consolidated)Trend in B/S (consolidated)Liabilities & Net Assets

216.6

Equity Ratio 32.8% (2013/3) 31.9% (2013/6)

253.1238.8 232.3

（Unit: Billions of JPY）

253.3

* Amounts for 2012/3 and 2013/3 in SE and FE have been reclassified with amounts calculated applying retroactively completion of installation basis.

Shipment basis Completion of Installation basis

Shipment basis Completion of Installation basis

216.6

253.1238.8 232.3 253.3

9

25.1

11.2

(15.3)

7.8

(27.1)(22.2)

(9.4)

21.5

8.1

34.2

(1.7)(5.7)(4.1)

6.8

(2.1)

(40.0)

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

FY2010 FY2011 FY2012 FY2013 FY2014 1Q

Operating CF Investing CF Financing CF

Free Cash Flow : JPY6.1 bn.Free Cash Flow : JPY6.1 bn.Free Cash Flow : JPY6.1 bn.

Consolidated Cash FlowsConsolidated Cash Flows


10

56.9

74.9 75.2

96.3102.5

131.0

122.7

111.1

77.2 75.371.9 71.6

54.6

69.7 69.4

47.6

39.3

45.9

76.9

70.4

78.6

25.831.2

39.9 41.3

53.4

44.2

27.0

42.4 40.4

55.755.5

26.2

31.7

45.2 39.5

37.6

29.7

53.5

38.6

57.3

50.2 50.3

28.1

51.0

30.022.916.116.2

25.2

10.012.2

30.6

43.247.1

18.0 15.6 13.3

45.9

34.4

76.6 80.772.4

53.8

35.833.2

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Mar. 20

08 Jun.

Sep.

Dec.

Mar. 20

09 Jun.

Sep.

Dec.

Mar. 20

10 Jun.

Sep.

Dec.

Mar. 20

11 Jun.

Sep.

Dec.

Mar. 20

12 Jun.

Sep.

Dec.

Mar. 20

13 Jun.

Interest-bearing Debt Cash and Time Deposits Net interest-bearing debt

*Lease obligations are not included in interesting-bearing debt as of end of Mar. 2008

InterestInterest--bearing Debt (Consolidated)bearing Debt (Consolidated)(Unit: Billions of JPY)

11

Business AreaBusiness AreaBusiness Area

12

SE SE

Outlook for 2Q and afterOutlook for 2Q and after

1Q1Q

Business EnvironmentBusiness Environment

• From FY14_1Q, the revenue recognition waschanged to completion of installation basis.

• Orders received by foundry decreased comparedto 4Q, but those by logic and memory increased,resulting in the same level as 4Q.

• In the 1st half of FY14, sales for memory and foundry are expected to exceed our forecast in May.•Continue to obtain benefits of the expansion of cleaning equipment market associated with the

miniaturization.• The results of cost reduction will be partially offset by the effects of product mix, etc.

The improvement in variable cost ratio will start to fully contribute to earnings from the 2nd half of FY14.

43.337.3

23.5

28.051.6 (3.1)

0.1

(4.4)

2.13.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1Q/FY13 2Q/FY13 3Q/FY13 4Q/FY13 1Q/FY14(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

Net sales(left)OP(right)

<SE> Quarterly Sales & O/PBillions of JPY

* Amounts for FY13 have been reclassified with amounts calculated applying retroactively completion of installation basis.

13

FE FE

• From FY14_1Q, the revenue recognition was changed to completion of installation basis.

• Sales to Japan remained on the same level, while those to Korea increased.

• Acquired large-scale orders in China.• Modification business remained strong.

• Business deals toward the year 2014 are under way.• Make continuing efforts to receive orders in China.

１Q１Q


Outlook for 2Q and afterOutlook for 2Q and after

3.0

2.02.0

4.84.1

(0.0)0.2 0.1

(0.5) (0.5)

0.0

2.0

4.0

6.0


(1.0)

(0.5)

0.0

0.5

1.0

Net sales(left) OP(right)

<FE> Quarterly Sales & O/PBillions of JPY

Amounts for FY13 have been reclassified with amounts calculated applying retroactively completion of installation basis.

14

MP MP １Q１Q

• As to graphic arts equipment, sales in the U.S.and Japan remained strong as a whole, despitehaving the effects of an economic slowdown inEurope and a growth recession in China.

• As to PCB related equipment, sales of directimaging system remained strong in Korea.

• POD sales will be sluggish in Europe.•Inkjet label printing system will be launched with a view to POD expansion into package

industry.• POD sales promotion on the domestic market will be enhanced at JGAS (Oct. 2nd to 5th ).• Try to further increase sales of direct imaging system by releasing high-end equipment.


Outlook for ２Q and afterOutlook for ２Q and after

11.6

14.79.012.59.9

(0.6)

1.4

0.4

(0.3)

1.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0


(1.0)

(0.5)

0.0

0.5

1.0

1.5

2.0

Net sales(let) OP(right)

<MP> Quarterly Sales & O/PBillions of JPY

15

Progress of Approaches for Earnings Recovery

Progress of Approaches for Progress of Approaches for Earnings RecoveryEarnings Recovery

16

Progress of Approaches for Earnings RecoveryProgress of Approaches for Earnings Recovery

Structure Reform

1. Efficient use of R&D expenses and capital investmentGoing on as forecast in May

2. Reduction of variable costsDelayed improvement in SE variable cost ratio in the 1st half of FY2014

• Effects of product mix• Timing for cost reduction to contribute to earnings is behind.

Will improve in the 2nd half of FY2014 (as forecast in May)3. Reconstitution of business structure

Improvement of unprofitable businesses is under way.Build new businesses – Life science in addition to Energy, Printed electronics,

and Inspection/ Measurement.

Urgent Countermeasures1. Personnel costs & benefits cutbacks

Going on as forecast in May

17

Business ForecastFiscal Year Ending March 31, 2014

Business ForecastBusiness ForecastFiscal Year Ending March 31, 2014Fiscal Year Ending March 31, 2014

18

Forecast of annual cash dividends for FY2014 : JPY 3.00 per share (year-end cash dividend) ……………Unchanged


Business Forecast for FY2014Business Forecast for FY2014Rate: USD1= 95 yen, EUR1= 125 yen

Forecast (May.10） Forecast (Aug.9）

Full 1st H 2nd H Full 1st H 2nd H Full199.7 102.0 102.0 204.0 109.0 102.0 211.0140.6 68.0 65.0 133.0 75.0 65.0 140.0

12.0 9.5 11.5 21.0 10.0 11.5 21.5

22.5 23.7 46.3 24.0 25.0 49.0 23.5 25.0 48.5

Graphic Arts Equip. (MT) 19.6 20.5 40.1 20.4 21.4 41.8 20.0 21.4 41.4

PCB Equip. (PE) 2.8 3.2 6.1 3.6 3.6 7.2 3.5 3.6 7.1

0.7 0.5 0.5 1.0 0.5 0.5 1.0

(4.8) 2.5 4.0 6.5 2.5 4.0 6.5(0.7) (2.9) (3.7) - - - - - -

(0.3) (0.5) (0.8) - - - - - -

0.7 0.7 1.4 - - - - - -

(0.9) (0.8) (1.7) - - - - - -

(5.0) 2.1 3.4 5.5 2.1 3.4 5.5(11.3) 1.5 2.5 4.0 1.5 2.5 4.0(6.9) (4.4)Net Income

(1.4) (3.6)Ordinary Income

Other & Adjustments

MP

FE

(1.2) (3.5)

SE

0.4

Operating Income

0.3

5.1

MP

Other

6.9

79.7 60.9

FE

90.3

SE

109.41st H 2nd H

Net Sales

FY2013 FY2014Result

(Completion of Installation）

09 Aug. 2013

<<Reference>> FY2013 Consolidated Business Results<SE & FE Segment Sales, Completion of installation basis>

(Figures have been rounded down to eliminate amounts less than one million yen, except per share figures.)

1Q 2Q 1st Half 3Q 4Q Full

Net sales 66,623 42,843 109,466 34,895 55,433 199,795

Gross profit 14,828 7,460 22,288 6,530 13,186 42,005 Selling, general and administrative expenses 11,682 11,891 23,573 11,341 11,923 46,838

Operating income 3,146 (4,431) (1,284) (4,811) 1,262 (4,833)

Ordinary income 3,320 (4,770) (1,450) (5,214) 1,612 (5,052)

Net income 2,042 (8,955) (6,913) (5,322) 902 (11,333)

Net sales 51,654 28,086 79,740 23,577 37,371 140,689

Operating income 3,654 (4,433) (779) (3,127) 154 (3,752)

Net sales 4,845 2,055 6,901 2,087 3,053 12,041

Operating income 258 (563) (304) (509) (21) (835)

Net sales 9,977 12,546 22,524 9,070 14,729 46,323

Operating income (303) 1,004 700 (686) 1,460 1,474

Net sales 145 154 300 160 279 739

Operating income (95) (39) (134) (106) 82 (158)

Operating income (367) (399) (766) (381) (412) (1,560)

Total assets 222,402 208,213 228,308 232,390

Equity 82,098 72,520 71,139 76,249

Equity ratio 36.9% 34.8% 31.2% 32.8%

Consolidated Business ResultsCompletion of installation basis

Adjustments

Other

Total

SE

FE

MP

dainippon screen mfg. co., ltd.aug 9, 2013 dainippon screen mfg. co., ltd. business results &...

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