Financial Results of FY2016 IBIDEN Co., Ltd.(4062) April … Product Development and Supply in...

Copyright 2017 IBIDEN Co.,LTD, All rights reserved

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Financial Results of FY2016

IBIDEN Co., Ltd.(4062)

April 28th, 2017

Copyright 2017 IBIDEN Co.,LTD, All rights reserved Page#2/18

Forecasts in this statement have been made based on the premise,

prospect and plan of IBIDEN as of April 27th, 2017.

Actual results may widely differ from this statement due to any

uncertain factor such as international economy, market competition

and exchange fluctuation.


[Consolidated]

Results of FY2016


147.9

99.0 99.2

104.8

100.0 101.3

61.5

66.0 65.9

314.1

265.0 266.5

11.5

▲ 4.5 ▲ 3.6

5.9

3.5 4.3

5.2

6.0 6.5

22.6

5.0 7.1

120 105 107 Exchange rate (USD)

132 117 118 Exchange rate (EUR)

7.2%

1.9% 2.7%

[ ▲33% ]

[ ▲3% ]

[ +7% ]

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Compared to

the last year▲15.2％

0 [ ▲27% ]

[ +25% ]

7.5

0

2.4%

-24.0% -23.6%

Result Forecast

Disclosed

on Feb 3 Result

FY15 FY16

▲62.8 ▲63.5

Electronics

Ceramics

Others

Electronics

Ceramics

Others

[ go into

the red ]

Result Forecast

Disclosed

on Feb 3 Result

FY15 FY16

Result Forecast

Disclosed

on Feb 3 Result

FY15 FY16

Net Sales (Unit: Billions of Yen)

Operating Income (Unit: Billions of Yen)

Net Income (Unit: Billions of Yen)

Forecasts of Net Sales, Operating Income

and Net Income in FY2016

〔〕 shows %

compared to

the last year

〔〕 shows %

compared to

the last year

Compared to

the last year▲68.4％

OPM ROS

Compared to

the last year▲70.4B Yen


[Consolidated]

Forecasts of FY2017


24%

7% 0%

3% 4%

5%

5%

-12%

5% 4%

CY14 CY15 CY16 CY17 CY18

Result Forecast

3.1 2.8

2.6 2.5 2.5

-2%

-11%

-6%

-2%

3.8 3.9 3.5 3.6 3.8

9.3 10.4 11.3 11.7 12.3

2.3 2.1 1.7 1.6 1.6 15.3

16.4 16.5 17.0 17.6

-0%

□PC market continues to show negative growth, yet its pace has become slower (favorable)

□High-end Smartphone market: hit the bottom in CY16, but expect to turn to positive

growth from CY17 on

[Electronics] Market Trends

Market of PC (PKG) Market of Smartphone /

Tablet Market (CSP・PWB) (Unit: 100M Units) *According to IBIDEN's survey

Smartphone and

Tablet Growth Rate

Smartphone

(High-end)

Growth Rate

Smartphone (High-end)

Smartphone (Low-end etc)

Tablet

PC Growth Rate


Result Forecast

(Unit: 100M Units) *According to IBIDEN's survey


0

10

20

30

40

50

0

50

100

150

200

250

300

0

500

1,000

1,500

2,000

Market of In-vehicle device Market of Data center

(Data Traffic) Market of IoT device

CY 15 CY25 CY15 CY25 CY15 CY25

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CY20 CY20 CY20

[CY15CY20]

Compound Annual

Growth Rate: 90%

(Unit: Trillions of yen)

*According to IBIDEN's survey *According to IBIDEN's survey *According to IBIDEN's survey

(Unit: Trillions of yen) (Unit: Trillion gigabytes)

[CY15CY20]

Compound Annual

Growth Rate: 6%

[CY15CY20]

Compound Annual

Growth Rate: 43%

[Electronics]

Develop new customers from growing markets

□ Launch products from growing markets [IoT/In-vehicle device/

Data center]


8.3 8.9 9.2 9.2 9.2

5.0 5.1 5.4 5.6 5.8

13.3 14.0 14.5 14.7 15.0

4%

2%

5% 4% 4%

6.7 7.1 7.4 7.7 8.1

4.2 3.9 3.7 3.6 3.6

10.9 11.0 11.1 11.3 11.7

12%

6% 5% 4% 5%


Result Forecast

[Ceramics] Market Trends

*According to IBIDEN's survey *According to IBIDEN's survey (Unit: Million Unit) (Unit: 1,000ton)

Market of DPF Market of Mats

Global diesel heavy duty cars

market growth ratio Non Expansion

Mats market growth ratio

Non Expansion

Mats

Expansion Mats

EU diesel

passenger cars

Global diesel

heavy duty cars*

*Include constructional/farm machineries.

1 DPF applied to the said machineries is counted as

3 DPFs applied to a passenger cars

□ Global automotive market is steadily growing.


Result Forecast

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③ Other Operations (Domestic Operations + Electric power Business)

■ Domestic: Stably expand business in housing materials/green business/food by

distinctive products

■ Electric power: Develop stable source of earnings mainly by Hydro and Solar energy

② Ceramics Operation

■Exhaust system market: 1) Enhance proposal-making capabilities through

synergy of DPF・SCR・AFP

2) Ensure competitive force in heavy-duty vehicles

and emerging market

■Other new market: Expand to other Automotive/Airplane/Electric Power generation

Stabilize operations by 3 major businesses

『Electronics/Ceramics/Others』

① Electronics Operation

■PKG Market: 1) Expand mass production of high-performance PKG for

Data center and In-vehicle device.

2) Develop fine and thin package which can be competitive to

FOWLP・PLP and introduce to the market

■Motherboard Market: Recovery of customer orders by launching MSAP product

for high-end smartphone


Result Plan

FY13 FY14 FY15 FY16 FY17

Result Plan


37.7

56.4

41.0

21.0

37.0 35.7 39.4

44.1

33.1

27.0

12% 12%

14%

12%

9%

□Electronics Operation: Investment for next generation(fine/thin/MSAP products)

□Ceramics Operation: Further Investment for heavy-duty cars and emerging

market

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Electronics

Ceramics

Others

Electronics

Ceramics

Others

Capital Expenditure (Unit: Billions of Yen) Depreciation (Unit: Billions of Yen) Ratio computed by

Depreciation/Consolidated net sales

Plan of Capital Expenditure and Depreciation



Result Plan

15.0 15.5 15.2 14.1 16.5

□Launched 4 R&D product development centers (Automotive Functional/Future

Mobility/Advanced Ceramics/Biomaterial) to achieve commercialization of new

products in the early stage

□IBIDEN’s R&D operation supports group companies’ operation to enhance

Distinctive competitiveness

(Unit: Billions of Yen)

R&D Expenditure plan

Increase by 17%

4.8% 4.9% 4.8% 5.3%

5.7% 5.8% 6.0% 6.0%

7.0% 7.5%

Consolidated

Sales ratio

Electronics +

Ceramics

Sales Ratio R&D Expenditure

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Copyright 2017 IBIDEN Co.,LTD, All rights reserved Page#12/ Page#12/18

Capital and business alliance with Denso Corporation

Quota of stock ： Common stock 6,825,900 shares (allot treasury stock)

The allocated price： ¥1,758/share

Purchase price ： ¥11,999,932,200 (Approximately 12billion yen)

1. Collaboration in developing next generation’s exhaust system

2. Collaboration in the area of electrification to respond to diversifying powertrains

Items to be implemented

Productization with system perspective

through Product Development and

Supply in intake/ignition/exhaust

process of gasoline or diesel engines

Background and objective

As international regulations on vehicle exhaust emissions become more strict, internal

combustion engines are required to be more efficient and exhaust system to be improved.

This capital and business alliance will enable the two companies to bring cultivated

strengths and accelerate development of high-performance vehicle exhaust systems

for internal combustion engines, including gasoline, diesel, HV-PHV engines.

Summary of Third-Party Allocation of New Shares

Development of high-performance

ceramics for exhaust systems

cultivated by DPF business


▲ 2.1 ▲ 1.5

2.0 3.0 1.3

3.0

2.0

3.0

2.9

3.6 2.0

4.0

2.0

5.1 6.0

10.0 1.5%

3.7% 4.3%

6.6%

50.8 48.4 58.5 61.5

49.1 52.2 50.0 50.0

29.1 36.8

30.0 40.0

129.0 137.5 138.5

151.5

0

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106 109 110 110 Exchange rate (USD)

119 117 115 115 Exchange rate (EUR)

Result

1st half

Result

2nd half

Forecast

1st half

Forecast

2nd half

FY16 FY17

Result

1st half

Result

2nd half

Forecast

1st half

Forecast

2nd half

FY16 FY17

Electronics

Ceramics

Others

Electronics

Ceramics

Others

OPM



Forecast of Net Sales and Operating Income

in Half Year of FY2017


11.5

▲ 3.6

5.0

9.5

5.9

4.3

5.0

7.5

5.2

6.5

6.0

7.0

22.6

7.1

16.0

24.0

7.2%

2.7%

5.5%

8.0%

147.9

99.2 120.0 125.0

104.8

101.3

100.0 100.0

61.5

65.9

70.0 75.0

314.1

266.5

290.0 300.0

Result Forecast

FY15 FY16 FY17 FY18

0

7.5

11.0

18.0

0

2.4%

-23.6%

3.8% 6.0%

▲62.8

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Net Income (Unit: Billions of Yen)

Result Forecast Result Forecast

FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18

Electronics

Ceramics

Others

Electronics

Ceramics

Others

OPM ROS

Business forecast of 2017~


Return to

Shareholders


FY12 FY13 FY14 FY15 FY16 FY17

15 15 15 15 15 15

15 15 20 20 20 20

30 30 35 35 35 35

Acquisition 5.0 - - 5.0 - TBD

Retirement - - - 10.0 -

187.8% 23.7% 25.3% 63.3% - 42.3%

□ Continue stable dividend

□ Determined special benefit plan for shareholders

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(Plan)

Return to Shareholders

Dividend per Share

(Unit: Yen)

Interim

dividend

Year-end

dividend

■ Payout ratio

■ Acquisition and retirement of treasury stocks (Unit: Million shares)


For better

Corporate

Governance

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【 Background #2】

Globalization of the business

Organization design change

Organization design change and supervisory function

reinforcement of the Board of Directors

【Background #1】

Respond to the change of

business environment

【Demand】

1. Build lean Board of Directors that enables quick decision-making

to respond to change of business environment

2. Simpler design of the organization for global standard

3. Enforce supervisory function by adopting Outside Directors

Transition to Company with Audit and Supervisory Committee

Plan of Board of Directors (currently117)

Plan of Audit and Supervisory

Committee(currently4 5)

Supervisory function Reinforcement of the Board of Directors ★：New candidate

※ Ratio of outside directors to the board (12members)：50%

※ Ratio of outside directors to the committee：60%(majority)

Hiroki Takenaka Chairman of the Board, Representative Director

Takeshi Aoki President & CEO, Representative Director

Tsuyoshi Nishida Executive Vice President, Representative Director

Kozo Kodama Executive Vice President, Representative Director

Chiaki Yamaguchi Outside Director (President, TOWA REAL ESTATE co.,Ltd)

Toshio Mita Outside Director ★(Senior Advisor, Chubu Electric Power Company)

Koichi Yoshihisa Outside Director ★(President, Meijo University)

Keiichi Sakashita full-time member

Yoichi Kuwayama full-time member

Fumio Kato Outside member(Certified Public Tax Accountant)

Masaki Horie Outside member(Certified Public Accountant)

Nobuko Kawai Outside member ★(Attorney)

【 Background #3】 Request of

Corporate Governance code

Financial Results of FY2016 IBIDEN Co., Ltd.(4062) April … Product Development and Supply in...

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