November 11, 2014 FY2014 CONSOLIDATED RESULTS FOR THE SECOND QUARTER

Transcription

1 November 11,

2 Business Results for FY2014 Ended September 30, 2014 Forecast for FY2014 Ending March 31, 2015 Measures of FY2014 Ending March 31,

3 Business Results for FY2014 Ended September 30,

4 Consolidated Statements of Income ( million) FY2013 2Q FY2014 2Q Year-over-Year Comparison Net Sales 4,076 5, Cost of Sales 2,809 4, Gross Profit 1,267 1, Selling, General and Administrative Expenses 3,101 2, Experiment and Research Expenses 1,290 1, Operating Income (Loss) -1,835-1,473 - Non-Operating Income Dividend Income Foreign Exchange Gains Non-Operating Expenses Ordinary Income (Loss) -1,762-1,085 - Extraordinary Income Extraordinary Loss Net Income (Loss) -1,763-1,097 - Orders Received 5,074 4,

5 R&D Expenses, Capital Expenditures and Depreciation ( million) ( million) 3,000 1,000 2,500 2,000 1,921 2,033 2,589 2,200 (Forecast) (Forecast) 800 (Forecast) 1,500 1,000 1,500 1, /3 2012/3 2013/3 2014/3 2015/ /3 2012/3 2013/3 2014/3 2015/3 Capital Expenditures Depreciation

6 6 Consolidated Balance Sheets ( million) FY2013 FY2014 2Q Increase Total Current Assets 16,645 16, Cash and Deposits 9,212 8, Notes and Accounts Receivable-trade 2,110 3,291 1,181 Work in Process 1,624 1, Total Noncurrent Assets 9,414 10, Investment Securities 2,526 3, Total Assets 26,059 26, Total Current Liabilities 585 1, Accounts Payable-trade Total Noncurrent Liabilities 1,072 1, Deferred Tax Liabilities Total Liabilities 1,657 2, Total Net Assets 24,402 23, Retained Earnings 9,287 8,129-1,158 Valuation Difference on Available-for-sale Securities 871 1, Total Liabilities and Net Assets 26,059 26,

7 Consolidated Cash Flows ( million) FY2013 2Q FY2014 2Q Increase Cash Flows from Operating Activities Loss before Income Taxes and Minority Interests 1,760-1, Depreciation and Amortization Decrease (Increase) in Notes and Accounts Receivable-trade 244-1,162-1,407 Decrease (Increase) in Inventories Decrease (Increase) in Notes and Accounts Payable-trade Cash Flows from Investing Activities Payments into Time Deposits Proceeds from Withdrawal of Time Deposits Purchase of Property, Plant and Equipment Cash Flows from Financing Activities Cash and Cash Equivalents at End of Period 8,776 8,

8 ( million) 7,000 Quarterly Orders Received and Net Sales 6,000 5,880 5,000 5,049 4,000 3,277 3,000 2,000 2,054 1,271 2,085 2,906 1,728 2,348 2,168 1,488 1,823 2,166 1,583 2,884 2,631 1,912 2,800 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Orders Received Net Sales

9 Sales Breakdown by Product Type Others Equipments 4.3% Spare Parts 15.6% Other Equipments 1.0% Spare Parts 10.5% Die Bonder 17.9% Die Bonder 16.0% Wire Bonder 64.1% Wire Bonder 70.6% 9

10 Sales Breakdown by Region Others 0.9% Others 0.3% Others in Asia 16.5% Japan 20.3% Others in Asia 10.2% Japan 14.0% South Korea 15.7% China 22.1% Taiwan 15.5% South Korea 25.4% China 40.8% Taiwan 18.3% 10

11 Forecast for FY2014 Ending March 31,

12 Semiconductor and Bonder Market (Worldwide) 450, ,000 Result Forecast 4,500 4, ,000 3, ,000 3, ,000 2, ,000 2, ,000 1, ,000 1,000 50, ($ million) Semiconductor Market (Scale on Left) Bonder Market (Scale on Right) ($ million) 0 12 Required Disclaimer: The Gartner Report(s) described herein, (the Gartner Report(s) ) represent(s) data, research opinion or viewpoints published, as part of a syndicated Subscription service, by Gartner, Inc. ( Gartner ), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this enterprise report) and the opinions expressed in the Gartner Report(s) are subject to change without notice. Source: Gartner, Forecast: Semiconductor Manufacturing Equipment, Worldwide, 3Q14 Update Bob Johnson et al. October 2014 Chart created by Shinkawa based on Gartner data.

13 Bonder Market by Product Type (Worldwide) 1,400 1,200 Result Forecast 1, ($ million) Wire Bonder Die Bonder Flip Chip Bonder 13 Source: Gartner, Forecast: Semiconductor Manufacturing Equipment, Worldwide, 3Q14 Update Bob Johnson et al. October 2014 Chart created by Shinkawa based on Gartner data.

14 Forecast for FY2014 3Q ( million) FY2013 3Q FY2014 3Q Year-over-Year Comparison Net Sales 5,899 7, % Operating Income (loss) Ordinary Income (loss) Net Income (loss) -2,888-2, ,651-2, ,199-2,090 - Orders Received 6, *Assumed Exchange Rate : 105 yen / U.S. dollar 14

15 Measures of FY2014 Ending March 31,

16 Improve Company Structure Enhance Product Planning Capability Increase Profitability Strengthen Global Business Operation 16

17 Enhance Product Planning Capability Group / Team System Organization Promoting Projects Optimizing Development Process Produced great results in Die Bonder Group Utilizing outside consultants Academic / Industry Partnerships Started eight new partnerships Joint Development with Customer Succeeded in new process development, and proceeded to volume production evaluation stage in the field of Flip Chip Bonder Product Development to Meet Market Demands 17

18 Increase Profitability Japanese Factory Production for High-Value-Added Products Thai Factory Production for Volume Production Preparing for Outsourcing Production Outsource Manufacturing of Some Products Optimizing Production Capacity Standardizing Core Units of UTC Series Completed 18

19 Strengthening Global Business Operation Main sales operations to be transferred to overseas sales bases Korea Sales Operation of HQ Thailand Shanghai Taiwan Sales Div. of HQ serves a supervisory role by creating sales strategy and implementing product planning SGR 19

20 Strengthening Global Business Operation Customized design operation to be transferred to Thailand and Vietnam Research and Development Customized Design Thailand HQ mainly conducting research and development Vietnam 20

21 Strengthening Global Business Operation Whole Wire Bonder operation to be transferred to Thai Factory Out- sourcing Japanese Factory Utilizing outsourcing Thai Factory 21

22 Business Expansion According to Models 22

23 M$ 450, ,000 Device Revenue Trend (Worldwide) CAGR ( ) 12.4% Nonoptical Sensors 350, % Optoelectronics 300, , , % 5.4% Discrete Analog 150, % Logic,ASSP,ASIC 100, % Microcomponents 50, YR 2014 YR 2015 YR 2016 YR 2017 YR 2018 YR 3.5% Memory Recapturing share of the memory market which is Shinkawa s specialty Also acquiring important customers in the growing market. 23 Source: Gartner, Forecast Analysis: Electronics and Semiconductor, Worldwide, 3Q14 Update Andrew Norwood et al. October 2014 Chart created by Shinkawa based on Gartner data.

24 Wire Bonder Obtained Qualification from OSAT! Alliance with Material Manufacturers Strengthening Production Support Function UTC-5000 Series Development of the UTC-5000NeoCu Upgraded Version Completed Expanding Sales of the UTC-5000NeoCu and Promoting the Development for Its Upgrade 24

25 Die Bonder STC-500 for Discrete Launching New Products Customer Evaluation Proceeding Smoothly STC-800 Developing Functions to Handle New Bonding Process 25 SPA-400 for IC New Model for IC Planning to Bring to Market in FY 2015

26 Flip Chip Bonder Expecting volume production for server and graphics Forecasting the timing to shift to volume production of flip chip products utilizing TCB process 26 LFB-1102Super LFB FY 2016FY 2017FY Promoting development of new models capable of handling wide-ranging process with the prospect of market growth Source:Internal research

27 SHASHI (excerpt) Corporate Mission Shinkawa leads in robot technology to contribute to society which allows the human being to be more creative. Action Philosophy Challenge Change Collaboration 27

28 Cautionary Statement This presentation sheets contain forward-looking statements that reflect management s views and assumptions based on the information currently available with respect to certain future events including earning forecast, business strategies and prospect. Actual results may differ materially from those statements due to changes in various factors, thus the events and results of such forward-looking assumptions cannot be assured. Any forward-looking statements speak only as of the date of this presentation sheets, and SHINKAWA assumes no duty to update such statements. The factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for SHINKAWA s products owing to changes in the economic conditions in SHINKAWA s markets, changes in exchange rates, the impact of changes in regulations, accounting principles and practices. Corporate Planning Dept. SHINKAWA LTD. TEL: FAX: