Post on 19-Mar-2020
Consolidated Financial Results for the Year Ended March 31, 2015
and
Future Management Policies
Eiji Watanuki President and Chief Executive Officer
May 11, 2015
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【Summary of FYE March 2015】 Ferrite and applied products and integrated modules & devices grew in line with projections Composition ratio of super high-end products grew in line with projections Sales opportunities for capacitors missed due to shortage of capacity to meet sharp expansion
in demand Negative impact on operating income from temporary costs of 2.9 billion yen recorded
Summary of Consolidated Results (Y/Y)
¥ in billion FYE March 2014 (01 Apr 2013 – 31 Mar 2014)
FYE March 2015 (01 Apr 2014 – 31 Mar 2015)
Increase/(Decrease)
% Amount
Net sales 208.2 227.1 9% 18.9
Operating income 11.4 13.2 16% 1.8
Ordinary income 12.2 15.7 28% 3.5
Net income 7.0 10.9 56% 3.9 *The numbers are rounded off.
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Substantial improvement in profitability thanks to expansion of super high-end products Operating income : 1H ¥2.5 billion → 2H ¥10.7 billion
Net Sales and Operating Margin for FYE March 2015
-2%
0%
2%
4%
6%
8%
10%
12%
0
10
20
30
40
50
60
70
1Q 2Q 3Q 4Q
Net sales
Operating margin
¥ in billion
4
Five Bases Initiatives Our Goal
Increase sales of growth equipment and focus markets*
Product Expand sales of super high-end
/next high-end products
Customer Establish a high status
Achieve positive net cash position
• Carry out the super high-end product strategy aimed at leading the market : 1. Product that obtains the top position
in the global market 2. Product that only 2.5 suppliers can
develop in the field 3. Product that provides solutions for
growth market 4. Product that sustains strong
competitive edge • Increase product lineup for focus markets • Expand and diversify commercial distribution
Net income management by each in-house mini-company
More than 50% sales ratio
Expand focus markets
More than 30% sales ratio
Improvement of the corporate structure Finance
• Net sales: over ¥300 billion • Operating income: Company
record levels • ROE: above 10%
Medium-term targets
Market Expand super high-end products
Training, promotion and better use of human resources
Human resources Fair evaluation and treatment
Mobility of human resources for better personnel use
Global human resource strategy
*Focus markets: Automobiles, Industrial equipment, Healthcare, Environmental energy
Growth strategy
Basic Strategies for Achieving Medium-term Targets
○ Smartphones driving electronics industry
Inductors Small size
High current High reliability
MLCC Ultra-small
High capacitance High reliability
¥18 trillion (CY2012)→¥30 trillion (CY2020) Infotainment:
1.7 times
RF devices (FBAR/SAW) Small size
High performance
Body: 1.6 times
Safety: 1.9 times
Power-train: 1.7 times
• Multi-banding • Higher CPU
performance
• 4-5% growth in unit numbers
• Accelerating computerization
Greater demand for high function components (acceleration of super high-end usage)
Source:JEITA (December 2013)
Ensure position through focused investment
Strong demand for electronic components
0.0
0.5
1.0
1.5
2.0
2014 2015 2016 2017
LTE Others
Billion units Use of LTE progressing steadily
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Two Major Trends Surrounding Our Business
○ Expansion in car electronics market: 1.7 times
0201 0603 1005
0402
Mass production of world’s smallest 0201 size
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Aiming to make 1000μF a reality
To be world’s No.1 in super high-end products
Ultra-miniaturization
1005-90umMAX ★Advancing materials technologies
(In-house development, super fine particles, dispersion)
★Advancing multi-layer technologies
★Investing in boosting production with productivity improvement
MLCC
Ultra high capacity
Ultra-low profile
Mass production of world’s biggest capacity 330μF・470μF
Mass production of world’s thinnest 110μm product
Mass production of further low profile products, 90μm, in the second half
Expansion of material lineup +
Advancing winding/multi-layering process technologies
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All-around adaptation for large to small and low profile products through flexible
development
2013
2014
ME series High-spec
MA series Small size standard
2012
EST series Large/high current
MA-H series Upgrade product of MA
MB series Cost-effective
2015
MD series Large/low profile
MC series Ultra small/low profile
Power Inductors
Expand MCOILTM product lineup Monthly production:
400 million ⇒ 600 million units
To be world’s No.1 in super high-end products
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CA化、多バンド化
高周波化
Frequency 1GHz 2GHz 3GHz
Tech
nolo
gy c
ompl
exity
SAW Band20
GPS
Band28
~2014 2015 2016~ 4G LTE
LTE-Advanced (CA/MIMO)
Band expansion (~3.8GHz・5GHz LAA) Carrier aggregation and multi-band
Differentiation based on FBAR/SAW hybrid technology Dominant position in high frequency, narrow adjacent bandwidth
High-Q SAW Next
Band 25 Band 3
Band 7 Band 40
Wi-Fi
Band 41
High-Q FBAR TC- FBAR
Next Band 42
Band 43
Band 1 Band 4
TC-SAW FBAR/TC-SAW Band 13 Band 8 Band 26
FBAR/SAW
Band 2
Band12 Band17 Band 5
FBAR/SAW Devices for Mobile Communications
High frequency and narrow adjacent bandwidth
To be world’s No.1 in super high-end products
Acquired 15,000,000 shares in ELNA Co., Ltd. and concluded a capital and business alliance to co-develop large electric double layered capacitors and lithium ion capacitors for automotive and industrial equipment markets
Mass production of motor-drive regeneration system Mass production of wireless monitoring system
• For use in power-assisted bicycles • Expand into small agricultural
machinery and wheelchairs, etc.
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Power source technology
Wireless technology
Integrating technology
System solution proposals
combining core technologies
HV Inverter ■Car electronics market
■Industrial equipment (environmental and energy market) and Healthcare products
Surface treating technology
Multilayer technology
Optics technology
Ceramic capacitors for power circuit
Fail safe Soft-termination, frame type ceramic capacitors
Piezoelectric actuators (lead-free)
Active dumper
Next High-end Product
• SolmivTM for use at photovoltaic power plants
Product release of optical displacement sensor
High precision measurement of torque and displacement
Product release of visible light communication system
Ultra-high speed communication in locations where radio waves cannot be used
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
FYE Mar 2015
FYEMar 2016
Medium-term target
¥ in billion Net Sales and KPI
Focus market
Operating margin
50%
30%
13%
10
MCOILTM
FBAR/SAW Head office (Ome, Tokyo)
Tokorozawa Plant (Saitama, Japan)
Centralized in Ome from Suzaka and Shin Yokohama, boosted capacity at Tokorozawa
Super high-end products
TAIYO YUDEN Mobile Technology
That’s Fukushima Chuki Seiki (Wakayama, Japan)
MLCC NIIGATA TAIYO YUDEN TAIYO YUDEN (SARAWAK)
Strategic Investment and Principal Sites
Commenced mass production at That’s Fukushima, constructing new building at Chuki Seiki
Constructing new buildings in Niigata and Malaysia (Sarawak)
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¥ in billion FYE March 2015
Actual FYE March 2016
Forecast
Increase/(Decrease)
% Amount
Net sales 227.1 244.0 7% 16.9
Operating income 13.2 19.0 45% 5.8
Ordinary income 15.7 19.0 21% 3.3
Net income 10.9 12.0 10% 1.1
Exchange rate (1US $) ¥108.42 ¥118.00 - -
【Dividend Policy】 Achieve positive net cash and aim for 30% total return ratio FYE March 2015: 10 yen annual dividend (interim: 5 yen, year-end: 5 yen) FYE March 2016: 15 yen annual dividend (interim: 5 yen, year-end: 10 yen)
*The numbers are rounded off.
Earnings Forecast and Dividend Policy for FYE March 2016
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This document contains information about the plans, business results, and strategies of TAIYO YUDEN CO.,
LTD. and the TAIYO YUDEN Group. These forward-looking statements other than historical facts represent
judgments made by the Company based on information available at present and are inherently subject to a
variety of uncertainties. TAIYO YUDEN cannot provide any guarantee as to the attainment of certain figures in
the future. The Company’s actual activities and business results could differ significantly due to changes
including, but not limited to, changes in the electronics market in which the Company’s business activities are
centered. Readers should not overly rely on the information contained in this document.
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