Embed Size (px)
Citation preview
NGK Insulators, Ltd.
Nov. 2009
Today's Speakers
Name TitleShun Matsushita President & Chief Executive Officer
Hiroshi Wada Director & Senior Vice President
1st Half Result
18.8
0.53.0 3.7
2.0
Sep.'08 Sep.'09Est. Sep.'09Est. Sep.'09Est. Sep.'09
3.56.36.0
2.5
29.0
Sep.'08 Sep'09Est. Sep'09Est. Sep'09Est. Sep.'09
99.0103.4101.099.0
152.3
Sep.'08 Sep.'09Est. Sep.'09Est. Sep.'09Est. Sep.'09
(Sep'09) (Result)(Result)
■Sales ■Operating Income
(Sep'09) (Result)(Result)
■Net Income
(Sep'09) (Result)(Result)
¥ Bil.
(May'09) (May'09) (May'09)(Jul'09) (Jul'09) (Jul'09)
■Points of 1stH Result （Unit：¥ Bil.）
Sales & Income decreased from the 1stH of previous yearDue to worldwide economic slowdown, demand for automotive related ceramic products, ceramic components for semi-conductor production equipment and Beryllium Copper products decreased sharply.
【Change from the 1stH of previous year】
Sales △48.9 （Power ＋3.0, Ceramic △35.5, Electronics △16.4 ）Op. Income △22.7 （Power＋0.6, Ceramic △16.7, Electronics△6.6 ）Impact of stronger yen (¥95/$,¥128/ER) Sales △5.8 Op.Income △1.4
■Forecast for Fiscal year Ending March 2010
Sales & Income will decrease from previous year due to weaker demand for automotive related ceramic products, ceramic components for semi-conductor production equipment, Beryllium Copper products and so on, even though the business trend for the Power business is firm.
51.0 42.0 51.0 44.2 48.3
37.5
46.836.0
51.039.1
23.121.0
29.020.2
26.3
78.183.9 79.7
46.9
43.8 36.1
37.0 36.540.5
32.311.8
122103
13199
121
174191
152
0
50
100
150
200
250
1stHalf
2ndHalf
1stHalf
2ndHalf
1stHalf
2ndHalf
1stHalf
2ndHalf
03/’08 03/’09 03/’10(May)
Net Sales of NGK / Half Term¥Bil. After consolidation elimination
Engineering
Electronics
Power
Ceramic Products
03/’10(Sep)
2.4 1.0 3.5 3.1 3.94.5
2.53.7 4.3
-3.1
2.520.223.619.8
4.0
5.5
4.7 3.1
-0.5-1.0
3.5
5.46.1
8.1 4.1
-0.9
10.76.3
12.5
2.53.8
34.9 34.5
29.0
-5
0
5
10
15
20
25
30
35
40
1stHalf
2ndHalf
1stHalf
2ndHalf
1stHalf
2ndHalf
1stHalf
2ndHalf
03/’08 03/’09 03/’10(May)
¥Bil.
Electronics
Power
Ceramic Products
Engineering
03/’10(Sep)
Income of NGK / Half Term
83 87
126
73 60
50
81 8675
93 93131162
47
78
44
45
0
50
100
150
200
250
300
350
03/'07 03/'08 03/'09 03/'10Est. 03/'10Est.
365¥ Bil.
Power
CeramicProducts
(Engi-neering)
Elec-tronics
Net Sales of NGK
320273
（May’09)
225230
（Sep’09)
After consolidation elimination
52.0
69.4
32.8
15.0 17.0
29.4
46.0
24.5
11.0 12.5
0
10
20
30
40
50
60
70
03/'07 03/'08 03/'09 03/'10Est. 03/'10Est.
Operating IncomeNet Income
¥ Bil.
Income of NGK
annual average
<153>
<104>
<162><147><¥/Euro>
<118><116><¥/$> <90>
<120> <129>
<93>（May’09) （Sep’09)
Factors of Sales VariationFactors of Sales Variation
+5
273
225
200
250
300
-10
03/'09 03/'10
-27 -3
-4 -4
-4
¥ Bil.
FX Rate
Others
Automobile related
Semi-conductor related
Metal related
Industrial equipment NAS
Factors of Op. Income VariationFactors of Op. Income Variation
32.8
10
15
20
25
30
35
40
-1.7
+1.0
03/'09 03/'10
-13.1-1.4
17.0
-0.6
¥ Bil.
FX Rate
Power related Others
Automobile related
Industrial equipment
Power BusinessSales & Operating Income
83 87 8675
81
8.5%10.7%
9.1% 9.3%9.2%
0
20
40
60
80
100
03/'07 03/'08 03/'09 03/'10Est. 03/'10Est.-4.0
1.0
6.0
11.0
16.0
Sales Op. Income Ratio ¥Bil. ( )Op.Income
（7.6）
（6.4）（8.7）
（May. ’09)
After consolidation elimination
（8.0） （8.0）
（Sep. ’09)
OverviewElectrical Insulators :-Domestic demand for 500KV transmission line project is at peak.-Domestic power demand for industrial use is decreasing. -Demand for UHV and direct current in China is active.-Construction of transmission lines in the Middle East is active.NAS batteries : -Overseas market is active due to orders received from Abudhabi and EDF-EN. -Demand for stabilization of the power distribution system is expected to increase due to the spreading use of renewal energy.
TasksElectrical Insulators :- Reinforce and expand production base in China.- Establish stable goods supply.NAS batteries- Establish increased production.- Promote cost reduction.
320340350 380440510620
720 790860950
1 ,260
1 ,650
0
500
1000
1500
2000
´00 ´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´15 ´20
(Million of KW)
40 million KW/Year10 th Project
Increase from 2001 to 2005
60 million KW/Year11 th Project
Increase from 2006 to 2010
70 million KW/Year12 th Project
Increase from 2011 to 2015
80 million KW/Year13 th Project
Start UHV Reinforce UHV Combination
Inclusive UHV transmission
Expansion of Power Market in ChinaExpansion of Power Market in China
Power generation facilities in ChinaPower generation facilities in China
Increase from 2016 to 2020
Sales Forecast in China’08 ’09 ’10 ’158.9 10.8 15.5 20.0
（Unit：Billion of Yen）
¥Bil.
21.0
13.3
30.0
16.7
10.26.3
35.0
-0.7
0.61.6 2.0
-2.3
3.0
5.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
03/'06 03/'07 03/'08 03/'09 03/'10Est. 03/'11Est. 03/'12Est.-5.0
0.0
5.0
Sales(Export)Sales(Domestic)Op.income (right axis)
Sales & Income Sales & Income of NAS batteries businessof NAS batteries business
93 93
126 131
162
4.8%7.6%
27.0%
16.9%
24.5%
0
50
100
150
03/'07 03/'08 03/'09 03/'10Est. 03/'10Est.0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Sales Op. Income Ratio
Ceramic Products BusinessSales & Operating Income
¥Bil. ( )Op.Income
（43.8）
（31.0）
（4.5）
（22.2）
（May’09)
After consolidation elimination
（7.0）
（Sep’09)
OverviewDue to worldwide economic slowdown, car sales have decreased sharply.Demand will tend to increase mid & long-term due to CO2 and emission regulations being tightened worldwide.
Automotive catalytic converters (“Honeycomb Ceramics”) :Worldwide introduction of emissions regulations.Cd-DPF& Large-size honeycombs :Tighter regulations for truck and construction equipment.
SiC-DPF : Tighter emission regulations in EU. Stiff competition with other materials.
TasksHoneycomb Ceramics & Cd-DPF & Large-size honeycomb & SiC-DPF:Establish the optimum production framework to deal with reduced demand for production.SiC-DPF :Differentiate from other materials in terms of performance and price.
4733
21
35
27
34
36
30
317
14
20
12
56
61
48
93
131
162
126
0
50
100
150
200
03/'07 03/'08 03/'09 03/'10Est.
Sales of Other productsSales of Honeycomb ceramics Sales of Cd-DPF & Large size HoneycombSales of SiC-DPF
Sales Forecast of Ceramic Products Business¥Bil.
After consolidation elimination
（Sep.’09)
Diesel
related
products
(Million of Car)(Million of Car)
20072007 20082008 20092009 20102010 20120111 20120122
4
6
8
10
12
14
16
18
20
Automobile Sales ForecastAutomobile Sales Forecast
BRICs
E U
U S
Broken Line：Previous Forecast / Solid Line：Current Forecast
Japan
Electronics BusinessSales & Operating Income
475060
7873
17.8% 17.4%
5.1% 4.3%5.0%0
20
40
60
80
100
03/'07 03/'08 03/'09 03/'10Est. 03/'10Est.
Sales Op. Income Ratio¥Bil. ( )Op.Income
（13.5）（13.1）
（2.0）
（3.0）
（May.’09)
After consolidation elimination
（2.5）
（Sep.’09)
Overview “Beryllium Copper”:Demand decreases due to economic slow down.“Ceramic Components for Semi-conductor Production Equipment”:Demand decreases due to decline of investments of semi-conductor makers. “Ceramic Actuators for Color Printer Heads”: Demand decreases due to worldwide slow down in printer market. “Soshin Electric Products”: Demand for industrial equipment and data & communications related products tends to decrease.
TasksReview production framework to cope with declining demand.Promote development and expansion of new product sales.
15 1115 9
12 14 1513
711
2120 18
22
2827
7873
60
47
0
50
100
'07/3 '08/3 '09/3 '10/3Est
Metal related products
Ceramic components for semi-conductor manufacturing
Electronic related products
Soshin Electric Co.
Sales Forecast of Electronics Products BusinessSales Forecast of Electronics Products Business¥Bil.
（Sep.’09)
（単位：$B）
（$Bil.）
0
50
100
150
200
250
300
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '110
10
20
30
40
50
60
From WSTS & Gartner
SemiconductorMarket
SemiconductorProduction Equipment
Market
Shipping amount of
semiconductor
Shipping amount of
production equipment
Forecast of Market Scale Forecast of Market Scale of Semiconductor and Production Equipmentof Semiconductor and Production Equipment
（$Bil.）
8183
130162 1319393
110
8687
6070
50
78
47
44
0
100
200
300
400
03/'08 03/'09 03/'10Est. 03/'10Est. 03/'12Est.
273
365
310Electronics
Engineering
Ceramic Products
Power
¥Bil.
230
’09 Medium Term Estimates / SalesAfter consolidation elimination
225
（May’09)（Sep’09)
◆Market expansion due to tighter emission regulations.◆Demand for electrical insulators due to the expansion
of overseas market.◆Demand for NAS batteries in overseas market is increasing.
（May’09)
20.0
43.8
22.2
7.04.5
13.0
8.08.0
8.7
7.6
12.0
2.5
13.5
2.0
3.0
3.2
0
20
40
60
80
03/'08 03/'09 03/'10Est. 03/'10Est. 03/'12Est.
32.8
69.4
45.0Electronics
Engineering
Ceramic Products
Power
¥Bil.
15.0
’09 Medium Term Estimates / Operating Income
OP/Sales 19.0% 12.0%15.3% 8.1%
6.5% 7.6％ 14.5%ROE 3.9% 4.3％ 10.0%
17.0
（May’09)（Sep’09)（May’09)
11.3 12.2 13.2 12.911.0
9.6 10.6 10.6 11.110.0
3.6%4.0%
4.9%4.7%
3.8%
6.3%6.3%
4.9%4.7%4.7%
03/'06 03/'07 03/'08 03/'09 03/'10Est.
Consolidated R&D Parent R&DConsolidated R&D/Sales Ratio Parent R&D/Sales Ratio
R&D Input (¥ Bil.)
（Sep’09)
6 6
0
1
1
5
4
4
2
2
3
12
3
19 6
917
312
3
3
2
2
41
21 23
3026
1919 26
2624
0
5
10
15
20
25
30
35
40
45
03/'06 03/'07 03/'08 03/'09 03/'10Est.
Power Bus. Ceramic Prod.Bus.
Engineering Bus. Electronics Bus.
Corporate Depreciation and amortization
¥Bil.Capital Expenditures
（Sep’09)
Summary of Cash Flow (¥ Bil.)03/’08 03/’09 03/’10Est.
Income before taxes 78.2-21.626.33.4
-7.1-12.566.7
-21.0Disposal, investment securities 1.1 1.4 4.5Other investments 3.2 7.0 -2.0
-16.7
Income taxes paid16.021.0
-23.026.212.4
-21.317.4
Depreciation
32.7
-30.0
-21.6
1.818.5
-18.45.6
Increase in Acct. Rec.Increase / Decrease in inventoriesOther changes
Operating Activities-1.522.0
Property, plant & equip. -22.5
-20.0Investing Activities
03/’08 03/’09 03/’10Est.Acquisition of treasury stock -0.6
-6.7Redemption of bonds -2.2 -15.2 -25.8 Proceeds from new borrowings - - -
Change in consolidated subsidiaries - -4.2 -
Effect of exchange rate change 1.6 -14.1 -
-0.6
-10.1
41.5
Cash & eq. at End of Year 119.8 76.5 46.5
Cash dividends --13.7
-7.4
Other 0.2
-36.1Financing Activities
-39.1
-6.2
-
Net Changes in Cash & eq.
-32.0
-30.0
312338301304276
434444
557515489
10.815.3
8.1
4.36.7
0
100
200
300
400
500
600
700
800
03/'06 03/'07 03/'08 03/'09 03/'10EST0.0
5.0
10.0
15.0
20.0
25.0
30.0Net Asset ROE
%
Total Asset & ROE¥Bil.
38.26
73.66
136.36
87.23
48.99
13 16 222216
41.8%29.9%
16.1%18.3%
26.5%
0102030405060708090
100110120130140150160
'06/3 '07/3 '08/3 '09/3 '10/3Est-40-38-36-34-32-30-28-26-24-22-20-18-16-14-12-10-8-6-4-202468101214161820222426283032343638404244464850525456586062646668707274767880828486889092949698100102104106108110112114116118120EPS
DividentsPayout Ratio （Unit：¥）
337MilNumber of
Outstanding Stocks 337Mil 337Mil 327Mil 327Mil
EPS & Payout Ratio
Number of Stocks Issued 357Mil 357Mil 338Mil 338Mil 338Mil
03/’09ActualTotal
1st H
152.329.0
OI Margin 19% 3% 12%
2nd H Total
120.9 273.232.83.8
Sales
Operating Income
9%10%9%OI Margin
3.1
36.1
7.6
82.9
4.5
46.8
Operating Income
Sales
Power Business
8%9%6%6.3
103.4
1st H
03/’10 Est.
17.0225.0
Total
10.7121.6
2nd H
9%9%9%
3.7
39.1
8.0
86.0
4.3
46.9
Semi-annual Sales and Operating Income by Segment (1)
( ¥ Bil.)After consolidation elimination
03/’09 ActualCeramic Products Business 1st H
79.719.8
OI Margin 25% 5% 17%
2nd H Total
51.0 130.722.22.4
Sales
Operating Income
8%8%7%3.1
44.2
1st H
03/’10 Est.
7.092.5
Total
3.948.3
2nd H
5%-17%OI Margin
6.1
36.5
3.0
59.6
-3.1
23.1
Operating Income
Sales
Electronics Business
4%9%-
-5.0
20.2
2.0
46.5
2.5
26.3
Semi-annual Sales and Operating Income by Segment (2)After consolidation elimination
( ¥ Bil.)
Disclaimer :This material is not an offer or a solicitation of an offer to buy or sell securities. Please note that although NGK has made careful efforts to update the contents in order toensure the accuracy, this material may not provide or reflect the latest information.NGK assumes no responsibility for losses that result from use of this material.Please be aware that decisions regarding investing are the responsibility of users themselves.
NGK Insulators, Ltd.2-56, Suda-cho, Mizuho-ku, Nagoya
467-8530, Japan
Finance & Accounting Department
Tel. : + 81-52-872-7186 Fax. : + 81-52-872-7160E-mail : [email protected]
NGK Homepage Address (English Version) ：http://www.ngk.co.jp/english/ir/index.html
