management in fiscal 2009 - hitachi-chem.co.jp · ・sales of varnish, carbon and ceramics,...

Management in Fiscal 2009－Results Briefing Fiscal 2008－

April 28, 2009

Contents

1．FY08 Business Results2．FY09 Forecast and Key Tasks

© Hitachi Chemical Co., Ltd. 2009. All Rights Reserved.

FY08 Business Results

FY07Results

FY08Actual

Net Sales 626.9 -22Operating

Income 60.5 -67

Net Income 31.4 -91

Item

0

+33

-

490.0

15.0

0

Ordinary Income 59.5 11.0 -72 +50

488.6

(1) Consolidated

16.5

19.9

2.7

Rapid fall in demand due to worldwide recession, revenues and earnings decrease significantly

(Billion yen, %)

FY08Forecast

FY08vs.

FY07

FY08 Actual

vs. FY08

Forecast


269.6 -17

38.6 -67

23.1 -90

0

+44

-

223.0

9.0

0

40.0 11.0 -62 +38

223.2

Cash Dividendsper Share (Yen)

32.0(Regular)

34.0(Regular)

32.0(Regular)

(2) Nonconsolidated

12.9

15.2

2.3

Maintain dividends at fiscal 2007 level

FY07Results

Net SalesOperating

Income

Net Income

Item

Ordinary Income

FY08Forecast

FY08vs.

FY07

FY08Actual

FY08 Actual

vs. FY08

Forecast

FY08 Business Results(Billion yen, %)


(3) Results by Segment

Electronics Related Products (Sales: -20%, Operating Income: -63%)

・Sales of semiconductor and display related materials, printed wiringboards and related products decreased due to slumping markets.

Advanced Performance Products (Sales: -14%, Operating Income -82%)

・Sales of IC cards and tags, and Diagnostics increased.

・Sales of varnish, carbon and ceramics, automotive parts, adhesive films, and powdered metal products decreased due to slumping markets.

・Earnings were down year-on-year due to weaker demand and higherraw material costs.

・Earnings declined year-on-year due to weaker demand and yen strength.

(Percentages for sales and operating income are comparisonswith the same term of the previous fiscal year)

FY08 Business Results

Contents

1．FY08 Business Results2．FY09 Forecast and Key Tasks


FY09 Forecast

626.9

60.5

31.4

59.5

(1) Consolidated

Targeting operating income of ¥10.0 billion through rigorous cost reductions

488.6

19.9

2.7

-22

-67

-91

16.5 -72

3.0

7.5

405.0

10.0

-17

-50

-55

+9

Net Sales

OperatingIncome

Net Income

Item

Ordinary Income

FY07Results

(Billion yen, %)

FY08Results

FY09Forecast

FY09Forecast

vs. FY08

Results

FY08vs.

FY07


－

(2) Nonconsolidated

223.2269.6

12.938.6

2.323.1

-17

-67

-90

15.240.0 -62

4.0

4.5

195.0

4.5

-13

-65

-70

+74

Forecast maintenance of dividends at same level as in previous fiscal year

Net Sales

OperatingIncome

Net Income

Item

Ordinary Income

FY07Results

(Billion yen, %)

FY08Results

FY09Forecast

FY09Forecast

vs. FY08

Results

FY08vs.

FY07

32.0(Regular)

32.0(Regular)

32.0(Regular)

Cash Dividendsper Share (Yen)

FY09 Forecast


(3) Background

1. In FY09 / 1H, even with recovery in actual demandcentered on display related products, timing of full-fledged market recovery remains uncertain

FY09 outlook

Must establish next generation core productsin preparation for market recovery

2. Even after market recovery, sales volume of coreproducts unlikely to return to former levels

FY09 Forecast


President’s Policies

Change in Organization

Change in Human Resources

・Strengthen, combine existing technology foundations・Build, introduce new technology foundations・Cater fully to customer needs

・Streamline, flatten organization structure・Boldly delegate authority ・Build an open corporate culture

・Promote personnel regardless of nationality or gender・Cultivate a pioneering spirit・Provide self-development opportunities

Change in Business


3. Transparent resinmaterial technology 4. Adhesive material

technology

8. Electro-conductive / insulativematerial technology

1. Heat radiatingmaterial technology

5. Optical materialtechnology

7. Printing / coatingmaterial technology

2. Heat resistant resinmaterial technology

6. Photosensitivematerial

technology

We have…

9. Package material center 10. Resin Technology

Center

From multi-product Hitachi Chemical toward multi-technology Hitachi Chemical!

Change in Business


New technology foundations

・Magnetic PowderedMetal

・Antenna・Plastic Gears

・Battery Components for HEV / PHEV・Capacitors・Fuel Cell Components・FRP Recycling Technology

・Genetic Diagnosis・POC Diagnosis・LED

Components・Active Light ControlFilm for Glass

・Environment Friendly Materials

・Industrial Batteries・Solar Cell Components

Telecommunications& Displays Automobiles Environment

& Energy Life Sciences

Material design / synthesis technologyProcess / processing technologyAnalysis / evaluation technology

Resin technology

Hitachi Chemical’s technology platformStrengthen,

combine Build, introduce

・Optical / ElectronicDevices

・Polymer OpticalWaveguide

・Ultra-thin MultilayerMaterial

・Transparent Elastomersfor FPD

・RFID Tags・Photosensitive Films forDirect Exposure

Change in Business


Telecommunications(59%)

Environment& energy

(17%)

Automobiles(2%)

Foundationtechnologies

(22%)

FY08 FY09

Corporateresearch

Shift resources toward automobiles (HEV, EV) and environment and energy related areas

Reorganization of corporate research priorities

Corporateresearch

Telecommunications(50%)

Environment& energy

(23%)

Automobiles

Foundationtechnologies

(15%)

(13%)

Change in Business


Environment & Energy

Roll out consumer-use materials to automobile area, expand business

Requirements of Li batteries for HEV

・During hybrid running: short-time discharging/ charging performance

・During electric running: continuously large power output

Capacity (energy density: Wh / kg)

Hor

sepo

wer

(pow

er d

ensi

ty: W

/ kg

)

Plug-in HEV EVLi batteries

for HEV

Lead batteries

■Carbon Anode Materials for Lithium Ion Batteries(for HEV / development underway)

Nickel hydride

batteries

MAG Series Anode Materials (current business)

Anode Materialsfor Automobiles

(next generation business)

Hitachi Chemical has

used an original technologyto design a new particle

that meets both requirements(note: conceptual diagram)

Industrial Li Batteries

Consumer-use Li Batteries

(mobile telephones, PCs)

Change in Business


■Lead batteries for wind power generation variance control

Expand business for batteries used in natural energy

Improved the longevity of storage batteries for wind power generation based on long-life technology

■Lithium ion capacitors

Superior durability and capacity compared with existing capacitors and other products

Spread use to automobiles, various types of industrial

motive power, electric power sources, etc.

(Shin-Kobe Electric Machinery Co., Ltd.)

(sales launch scheduled for April 2009)

Environment & Energy

(development product)

Change in Business


Automobiles

・Components for VTCs (valve timing control systems)・Components for HEV / EV (inverters / motors)・Power module housing・High thermal conductivity components, etc.

・ Rear hatch door modules・ High-strength plastic gears・ Resin glass, etc.

・Antenna for vehicle mounting, etc.

Currently developing new products that caterto need for environment friendliness,

weight reduction, and safety

Safety ← Increasing use of advanced controls

Environment Friendly ← Fuel efficiency improvement, change to electric powered vehicles

Weight reduction ← Change to plastic components

Change in Business


Life Sciences

Aiming to increase FY09 sales, through actively publicizing at academic conferences, etc.

■Quick Diagnostic Kit for Allergic Conjunctivitis“Allerwatch Tear IgE”

・Japan’s first kit for diagnosing allergicconjunctivitis

・ Enables fast, simple testing

・Because special equipment notneeded, can be used at hospitalswithout test facilities

・Sales began from November 2008

Change in Business


・Business transferred from Hitachi, Ltd., in October 2008・Enables use of one machine to conduct various bloodtests required for specific health checkups, whichbegan in Japan from April 2008

・At in-house facilities, hospitals can obtain test resultsrapidly (approximately 30 minutes)

・Testing possible without specialist technicians thanks toautomatic control technology and reagent developmenttechnology

・Offer a wide variety of rapid diagnostic solutions by combining with Hitachi Chemical’s diagnostic reagents

■High-Speed Tabletop Clinical Testing Systems

・Currently working to expand sales channels in theUnited States and Europe

Life Sciences

Change in Business


Key Growth Products FY08: ¥29.9 billion (25% below target)

Accelerating launch of new products / businesses an urgent task

Apart from the above, currently choosing productsand projects that promise growth in the following term

Strengthen systems from advancing lineupschosen from existing Key Growth Products and

Strategic Development Themes (Urgent Sales Growth Projects)

Change in Business


■RFID tags, μ-Chips

Aim to increase sales by exploiting advantages ofwide-ranging lineup and collaboration with Hitachi, Ltd.

Change in Business

mouse

ノート注釈

mouse : Accepted

mouse

ノート注釈

mouse : Accepted

mouse

ノート注釈

mouse : MigrationConfirmed

mouse

ノート注釈

mouse : MigrationConfirmed

mouse

ノート注釈

mouse : Unmarked

mouse

ノート注釈

mouse : Unmarked


■Active Light Control Film for Glass

Aim to roll out for construction materials,automobiles, aircrafts, and other applications

＜Power off＞＜Power on＞

Transmission rate can be adjusted according to the voltage

Change in Business


Toward Realizing Our Corporate Vision

・In keeping with the trust our customers and society have placed in us, wepledge to fulfill our duties and responsibilities as a corporation. With this in mind, each and every one of us works to preserve the environment, maintainthe highest standards of ethics and business integrity, and seek true customersatisfaction.

■ Our vision is to contribute to society through the development

of superior technologies and products.・By combining and adapting our wide-ranging advanced material andprocessing technologies, Hitachi Chemical aims to provide superior technologies, products, and services that contribute to the bettermentof human life and society.

■ Our mission is to create new andinnovative “Value” as a frontrunner.

・With a pioneering spirit to explore uncharted areas, we develop innovativeproduct solutions in a timely manner that provide optimum value for ourcustomers and society.

■ At all times, the key value we heedand promote is “Trust.”

Vision

Mission

Values


23

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management in fiscal 2009 - hitachi-chem.co.jp · ・sales of varnish, carbon and ceramics,...

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