Maxell, Ltd. · TSE:6810
Maxell — Hitachi Maxell — H1 FY3/2006 Earnings Presentation
24 slides from Maxell's earnings presentation, Oct 28, 2005
Slide 1: Consolidated Results 1st Half of Fiscal Year March 2006
Hitachi Maxell Consolidated Results 1ST Half of Fiscal Year March 2006 October 28, 2005 1
Slide 2: Table of contents
Table of contents 1. 1st Half Consolidated Results 2. Projections of FY 3/2006 3. Progress of Management Policies 2
Slide 3: 1. 1st Half Consolidated Results
1. 1st Half Consolidated Results 3
Slide 4: Consolidated Results
Consolidated Results (millions of yen) 1st H of 1st H of FY3/06 Projection FY 3/05 on April Actual (A) (B) (C) (C)/(B) (C)/(A) Net sales 100,754 95,000 97,943 +3.1% 2.8% Operating income 4,472 1,000 1,585 +58.5% 64.6% Ordinary income 5,738 1,500 2,668 +77.9% 53.5% Net income 3,482 700 1,169 +67.0% 6
Slide 5: Factor Analysis
Factor Analysis Change ( 1st H of FY3/05 Factor Analysis → 1st H of FY3/06 ) (billions of yen) Sales 2.8 Volume +1.2 (100.7→97.9) Unit Price 4.0 Operating income Volume +0.4 2.9 Unit Price 4.0 (4.4→1.5) Cost reduction +0.7 and others 5
Slide 6: Segment Information (year-on-year)
Segment Information (year-on-year) 1ST Half of FY 3/2006 (millions of yen) Sales Operating income (year-on-year) (year-on-year) Information 52,945 (+0.2%) 1,121 ( 55.4%) Storage Media Audio Video Tape 12,905 ( 21.2%) 102 (─) Battery and 32,093 (+1.7%) 566 ( 56.3%) Electric Appliance Total 97,943 ( 2
Slide 7: Segment Information (quarter-on-quarter)
Segment Information (quarter-on-quarter) (millions of yen) Sales Operating Income Q1 Q2 Q1 Q2 FY3/2006 FY3/2006 FY3/2006 FY3/2006 (quarter-on-quarter) quarter (quarter-on-quarter) quarter Information 26,658 494 627 Storage Media 26,287 (+1.4%) (+133) 6,316 127 229 Audio Video Tape 6,589 ( 4.1%) ( 35
Slide 8: Trends in Quarterly Results
Trends in Quarterly Results (millions of yen) Operating Sales Sales Operating Income Income 60,000 3,000 50,000 2,500 40,000 2,000 30,000 1,500 20,000 1,000 10,000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 FY 3/2005 FY 3/2006 8
Slide 9: 2. Projections of FY 3/2006
2. Projections of FY 3/2006 9
Slide 10: Projections of FY 3/2006
Projections of FY 3/2006 Projections of FY 3/2006 (millions of yen) Projection Projection on April on October (year-on-year) (B) - (A) (A) (B) Net sales 192,000 196,000 ( 2.6%) (+4,000) Operating income 3,000 3,500 ( 27.1%) (+500) Ordinary income 4,000 5,100 ( 18.6%) (+1,100) Net income 2,000 2,400
Slide 11: Segment Information (comparison with the previous projection)
Segment Information (comparison with the previous projection) (millions of yen) Projections of FY 3/2006 Sales Operating Comparison with Income the previous projection (year-on-year) (year-on-year) Sales Operating Income Information 108,000 2,200 +3,000 +1,200 (+2.4%) (+66.2%) Storage Media 24,000 1
Slide 12: 3. Progress of Management Policies
3. Progress of Management Policies Management Policies for FY 3/2006 ¾ Strengthen management essentials ¾ Re -invigoration of core business Re-invigoration ¾ Early results through increased competitiveness in our Next Keystone Business 12
Slide 13: Strengthening Management Essentials
Strengthening Management Essentials Strengthening Management Essentials Early retirement Results of 600 million yen Accelerated payout in operating income for the of impaired assets first half Selection and Rebuilding the managing narrowing of system for R&D themes development areas Global integrati
Slide 14: Re-invigoration of Core Business
Re-invigoration of Core Business ─ Advanced development of next generation products ─ Integration of development and production technologies ─ Strengthen global procurement ─ Increase orders through maneuverability and speed 14
Slide 15: Re-invigoration of Core Business: Computer Tape
Re-invigoration of Core Business Computer Tape Measures to increase sales Measures to improve profits Taking lead in development Super creative manufacturing system Quick delivery High efficiency production ▪ Expanding the Maxell brand share ▪ Expansion into the enterprise-tape market (IBM3590E comm
Slide 16: Re-invigoration of Core Business: DVD
Re-invigoration of Core Business DVD Measures to increase sales Measures to improve profits Expansion of Expansion of global market share external procurement SCM Developing attractive products ▪ Developing high quality, attractive products ▪ Strengthen use of concepts such as universality and user
Slide 17: Re-invigoration of Core Business: Lithium-ion batteries
Re-invigoration of Core Business Lithium-ion batteries Measures to increase sales Measures to improve profits Take the lead Rapid production increases in development Quick delivery Flexible production system ▪ Top in the industry for high capacity and high energy concentration ▪ Increase monthly pro
Slide 18: Early Results through Increased Competitiveness in our Next Keystone Business
Early Results through Increased Competitiveness in our Next Keystone Business ─ Focus:Optical Components, Network Devices, Functional Materials ─ Differentiate with leading and unique technologies 1. Micro cameras differentiated by small size, thinness, and high pixels Meet customer needs in the cel
Slide 19: Early Results in Next Keystone Business: Digital Pen and RFID
Early Results through Increased Competitiveness in our Next Keystone Business 3. Digital pen market rapidly expanding Used in transportation, education,medical, and public sector industries ▪ Examples of use : Maintenance inspections, estimates for a moving plan, grading in a prep school, making med
Slide 20: Next Keystone Business: Strengthening Card Related Business
Early Results through Increased Competitiveness in our Next Keystone Business 1.Making card related business operations stronger Transfer control of RFID division to Maxell Seiki, Ltd Integrating contact and non-contact IC card technology Maxell Maxell Seiki, Ltd 1H FY3/06 RFID IC Card, Magnetic car
Slide 21: Next Keystone Business: Strengthening Optical Components Operations
Early Results through Increased Competitiveness in our Next Keystone Business 2. Making optical components business operations stronger Merger of Maxell Electronics (Malaysia) and Tohshin Precision (Malaysia) Maxell Malaysia Sdn.Bhd Tohshin Precision (Mass assembly production (Malaysia) Sdn.Bhd tech
Slide 22: Projection for FY 3/2006
Projection for FY 3/2006 (millions of yen) Sales Operating Income 120,000 100,754 5,000 100,442 97,943 98,057 100,000 4,472 4,000 80,000 3,000 60,000 1,915 1,585 2,000 40,000 20,000 1,000 326 0 0 1H 2H 1H 2H (Projection) FY 3/2005 FY 3/2006 22
Slide 23: Forward-looking statements note
Note: This document contains forward-looking statements which reflect management's current views and judgments with respect to certain future plans, events and strategies based on currently available information and do not constitute promises, commitments or guarantees. The forward-looking statement
Slide 24: Appendix: Major Business Lines
Appendix : Major Business Lines Information Storage Media DVDs, CDs, Computer Tapes, Broadcasting Video Tapes, Floppy Disks, MO Disks, Memory Cards, Coil-on Chip RFID System, Optical Components, Function Material, etc. Audio-Video Tape Video Tapes, MDs, Audio Cassettes, etc. Battery and Electric App