fy2010 business environment and 2010年3月期事業環境と業績 …

CORP IR / May 14, 2009

25

2010年3月期事業環境と業績予想

代表取締役社長竹中博司

2009年5月14日May 14, 2009

Hiroshi Takenaka, President

FY2010: April 1, 2009 – March 31, 2010

FY2010 Business Environment and Financial Estimates


26

Overview► The semiconductor and FPD markets will continue to expand in three

dimensions:• Regions: Shift from developed countries to high population Asia,

emerging countries• Applications: Shift from mobile devices to medical, communications and

other social infrastructure• Performance: Faster devices with larger memory, lower energy

consumption► A production equipment industry that supports technological innovation of

electronics will make this expansion a reality, and our industry will continue to grow with cyclical peaks and troughs

Over nearly half a century in the production equipment business, TEL has built absolute trust with customers through its pre-eminent technology development capability.We will continue to leverage these comprehensive strengths to grow our business.


27

Changing SPE environment

Process technology: Shrinkage; Shift to low powerconsumption

Customers: Accelerated oligopolySPE market: Shift to AsiaEquipment: Pursuit of higher productivity,

environment-friendly equipmentPost sales: Shift to longer life cycles of equipment

Identifying market changes to enhance our position


28

HighHigh--kk

Double Double patterningpatterning 3DI3DI

Emerging Emerging MemoryMemory LowLow--kk

Carbon Carbon nanonano tubetubeAdvanced Advanced capacitorcapacitor

Charge trapCharge trap GeGe transistortransistor

EUVEUV

3D / 3D / Vertical transistorVertical transistor

InterconnectInterconnect( ( BarrierBarrier/ /

SeedSeed ))

Shrinkage / Low Power ConsumptionShrinkage / Low Power Consumption

MEMORYMEMORY LOGICLOGIC

SPE technological innovation will continue

Intense pursuit of scaling and lower power consumption


29

Worldwide TEL products in operation

50,000 systems

On-call service

Parts/Consumables

Service contract

Preventive maintenance

Repair

ModificationEnvironment-friendly

Refurbish

Relocation

Overhaul

Strengthening post sales operations

Discover new business opportunities, respond to demand for long-life equipment


30

Joint development with SHARP• Plasma CVD system for thin-film silicon PV• TEL: joint development, manufacturing and sales

Alliance with Oerlikon Solar• End-to-end thin-film silicon PV solutions • TEL: representative in Asia & Oceania

Independent development by TEL

Strengthening PV Production Equipment business

PVE business to form our third pillar alongside SPE and FPD

TEL PVE business program:

PV: Photovoltaic


31

FY2009 OverviewFY2009: April 1, 2008 – March 31, 2009


32

► Stayed profitable by rapidly responding to violent market changes• Year-on-year fixed-cost cuts of 40 billion yen

► Maintained a strong balance sheet• Operating cash flow: 81 billion yen• Year end cash* position 210.1 billion yen; D/E ratio 0.7%

► Sustained R&D investment and new product creation• R&D expenses: 60.9 billion yen• Launched new model SPE and 10th gen. FPD production equipment• Established double patterning technology for volume production

► Progressed PVE business• Formed strategic alliance with Oerlikon Solar

FY2009 overview

* Cash = Cash & Deposits + certificates of deposit (short-term securities)


33

62.3%

50.6%

59.8%

46.1%

29.9%

17.3%

8.7%6.7%0.7%

0%

20%

40%

60%

80%

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

D/E ratio

（Billion of Yen)

Net debt 107.3 billion yen

207.7

155.7 151.3

127.0

99.4

65.1

40.2 36.0

65.348.4 52.9

42.6

115.4

140.0 134.3

203.5

3.8

210.1

0

100

200

300

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

Interest-bearing debt

Cash & Deposits + Certificates of Deposit

Net cash 206.3 billion yen

Maintained a strong balance sheet


34

Scrubber SystemNS300+Single Wafer Deposition System

TriasTM SPAi

MEMS TesterTEMEON™-C

Wafer ProberWDFTM12DPWafer Prober

Precio octoTM

PFC Abatement SystemPA-01T

Coater / DeveloperCLEAN TRACKTM

LITHIUS ProTM V

FY2009 new products

Aiming for higher productivity and environmental friendliness


35

LLEIsland / Line & Space (Isolation, Gate, Metal 1…)

LELE SpacerLELE, LLEHole (Contact, Via…)

42nm Line

22nm Line

Established double patterning technology


36

TEL as the exclusive representative (sales, start-up and customer support) for end-to-end thin-film silicon PV solutions

Territory: Asia including Japan and Oceania

Expand business in the high growth Asian market

World No. 1 in cumulative shipments of E2E thin-film silicon PV systems

Superior technology, and trusted customer support + sales capability

Strategic alliance with Oerlikon Solar


37

Business Environment


38

► SPE capexTough environment for orders will continue, but a number of customers’

investment projects for shrinkage coming up• NAND: Due to active smart-phone demand, commencing 30nm investment• DRAM: All the major players will commence 50nm investment for shrinkage• LOGIC/Foundries: Inventory adjustment progressing, 45nm/32nm

investment restarting

► FPD capexProduction is bottoming out due to TV demand from China, recovery is expected, but slow

► PV capexSlight slowdown due to worsening worldwide economy and toning down of government support measures, but major expectations for future growth

Calendar 2009 business environment


39Source: TEL Marketing estimates

80%

90%

100%

110%

120%

07/Q

1 Q2 Q3 Q408

/Q1 Q2 Q3 Q4

09/Q

1 Q2 Q3 Q4

80%

90%

100%

110%

120%

07/Q

1 Q2 Q3 Q408

/Q1 Q2 Q3 Q4

09/Q

1 Q2 Q3 Q4

NAND

DRAM

Oversupply

Shortage

OversupplyShortage

(CY)

(CY)

Memory supply/demand balance

Supply shortages (NAND in 09/Q2, DRAM in 09/Q3) are creating large appetite for investment


40

Fab utilization and investment for memory

Following the recovery of foundry capacity utilization, NAND andDRAM will see active investment for shrinkage

Source: TEL marketing estimates

Output (k wafer)DRAM40nm pilot

DRAM50nmNAND

30nm

Utilization Ave.

Forecast

Utilization rate recovery

200

400

600

NANDinvestment for

shrinkage

DRAMinvestment for

shrinkage

(CY)

50%60%70%80%90%

100%110%120%130%

Q3/08

Q41Q

/09 2Q 3Q 4Q1Q

/10 2Q

Utilization


41

FY2010 Financial Estimates


42

20.437.5

6.40.4

0

50

100

150

200

250

7-9/

00

10-1

2/ 0

01-

3/01

4-6/

017-

9/01

10-1

2/01

1-3/

024-

6/02

7-9/

0210

-12/

021-

3/03

4-6/

037-

9/03

10-1

2/03

1-3/

044-

6/04

7-9/

0410

-12/

041-

3/05

4-6/

057-

9/05

10-1

2/05

1-3/

064-

6/06

7-9/

0610

-12/

061-

3/07

4-6/

077-

9/ 0

710

-12/

071-

3/08

4-6/

087-

9/ 0

810

-12/

081-

3/09

FPD/PVESemiconductor Production Equipment (SPE)

* Figures until 10-12/05 are non-consolidated, figures from Jan-Mar 2006 are consolidated.* Main difference between consolidated and non-consolidated: Consolidated figures include post-sales orders at overseas

subsidiaries.

(Billions of Yen)1-3/09SPE: 20.4 bil yenFPD/PVE: 6.4 bil yenTotal: 26.9 bil yen

Quarterly SPE+FPD/PVE Orders


43

84424Cash dividends per share (yen)

--61.0 (-20.3)-20.0 (-11.5)-41.0 (-32.5)20.5 (4.0)Ordinary income

--

--100%

-18%-33%-50%-41%

YoYchange

FY2010(E）

-38.0 (-12.7)-61.0 (-20.3)

-63.0 (-21.0)0.0

77.059.0

164.029.588.1

-20.0 (-11.5)-41.0 (-32.5)9.6 (1.9)EBIT

-21.0 (-12.1)-42.0 (-33.3)14.7 (2.9)Operating Income

300.0

Full year

0.040.5

104.0

0.036.529.560.0

0.394.2

325.3

FY2009

OthersEC/CNFPD/PVESPE

-26.0 (-20.6)

126.0

1H

-12.0 ( -6.9)

174.0

2H

7.5 (1.5)

508.0

Full year

Net income

Net Sales

FY2010 Financial Estimates(Billions of yen)

• SPE: Semiconductor Production Equipment, FPD/PVE: Flat Panel Display and Photovoltaic Cell Production Equipment, EC/CN: Electronic Components and Computer Networks

• ( ): Profit ratio


44

723.8

417.8460.5

529.6

635.7 673.6

851.9

121.0 1.1 22.2 75.7 143.9 168.4

906.0

508.0

300.014.7

-18.3

-63.0

63.9

16.7%

0.2%4.2%

16.9% 18.6%

2.9%

-21.0%

11.2%10.1%

-4.4%

-500

0

500

1,000

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10(E)

-30%

0%

30%

60%

Net Sales Operating income Oprating margin

Net Sales, Operating Income, Operating Margin

(Billions of Yen)


45

54.066

56.952.9 53.8

50.1

44.1 43.849.1

60.9

0.0

20.0

40.0

60.0

80.0

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

(E)

R&D Expenses

12.3 11.0 9.8 13.3 18.122.727.130.9 10.0

49.4

21.6

26.2 27.324.9

21.419.1 18.8

21.4 23.020.0

0.0

20.0

40.0

60.0

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

(E)

CAPEXDepreciation

R&D Expenses and CAPEX

Active investment in selected areas of R&D; Capex, minimum required

(Billions of yen) (Billions of yen)


46

1. Cost cuts of 30 billion yen （to give cumulative 2 year total of 70 billion yen）－ Further reduction in general expenses－ Restrain capex－ Effects from reduced outsources

2. Maximize potential of existing business－ Actively strengthen existing business areas

3. Sustained investment in R&D to achieve growth－ Selective, active investment in high growth areas

4. Flexible response to market changes－ New framework for post-sales business－ Strengthen PV business－ Greater environmental awareness

Maintain a medium-term perspective while responding to short-term issues

Key Measures for the Current Fiscal Year


47

1. SPE orders are showings signs of recovery but this will be reflected in TEL’s revenues from FY2011 and beyond, so TEL’s results will continue to be severely affected this fiscal year

2. Continuing from last fiscal year, we will implement large cost cuts and lower our break-even point

3. We see the changes in the market as opportunities and in the next upturn we will aim to outperform the market growth rate

4. We will strengthen our investment in the R&D and human resources required for growth

Summary


48

fy2010 business environment and 2010年3月期事業環境と業績 …

Documents