Maxell, Ltd. · TSE:6810

Maxell — Hitachi Maxell — Q3 FY2007 Earnings Presentation

27 slides from Maxell's earnings presentation, Jan 31, 2008

  1. Slide 1: Consolidated Financial Results for the Third Quarter of FY2007

    Hitachi Maxell Consolidated Financial Results For the Third Quarter of FY 2007 ( April 1, 2007 - December 31, 2007 ) January 31, 2008 ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd.

  2. Slide 2: Contents

    Contents 1．Consolidated Financial Results for 3Q of FY2007 2．Topics 3．Projection for FY2007 4．Midterm Business Target 5．Fine Payment for the European Commission ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 2

  3. Slide 3: Consolidated Financial Results for 3Q of FY2007

    1．Consolidated Financial Results for 3Q of FY2007 1-1．Consolidated Financial Results for 3Q of FY2007 (Three-months (Three-months period) period) 1-2．Factor Analysis （year-on-year ） 1-3．Consolidated Financial Results for 3Q of FY2007 (Nine-months (Nine-months period) period) 1-4．Factor Analysis （yea

  4. Slide 4: Consolidated Financial Results for 3Q of FY2007 (Three-months period)

    1-1．Consolidated Financial Results for 3Q of FY2007 (Three-months period) (millions of yen) 3Q/FY06 3Q/FY07 change Net sales ５４,２８８ ５８,１４５ ＋７.１％ Operating income １,５８３ １,９７６ ＋２４.８％ Ordinary income ２,００３ ２,６８３ ＋３３.９％ Net income １,００６ １,３８１ ＋３７.３％ Capital expenditure ２,６８６ ２,８７０ ＋６.９％ Depreciation ２,８

  5. Slide 5: Factor Analysis (year-on-year), Three-months period

    1-2．Factor Analysis （year-on-year ） Change Factor Analysis (3Q/FY06→ 3Q/FY07： Three-months period) (100 millions of yen) ■Net sales Volume ６２ ＋３８ Unit price －２０ （５４３ → ５８１） Exchange rate －４ ■ Operating income Volume １８ ＋４ Unit price －２０ （１６ → ２０） Exchange rate －２ Cost reduction and others ８ ©All Rig

  6. Slide 6: Consolidated Financial Results for 3Q of FY2007 (Nine-months period)

    1-3．Consolidated Financial Results for 3Q of FY2007 (millions of yen) (Nine-months period) ３Q/FY06 3Q/FY07 change Net sales １５３,４１７ １５９,９４５ ＋４.３％ Operating income ５,６６５ ４,４９４ ー２０.７％ Ordinary income ６,４２９ ５,０９２ ー２０.８％ Net income ２,３８１ １,７４５ ー２６.７％ Capital expenditure ８,８５４ ９,６４４ ＋８.９％ Depreciation ７,

  7. Slide 7: Factor Analysis (year-on-year), Nine-months period

    1-4．Factor Analysis （year-on-year ） Change Factor Analysis (3Q/FY06→ 3Q/FY07： Nine-months period) (100 millions of yen) ■ Sales Volume １０４ ＋６５ Unit price －７０ （１,５３４ → １,５９９） Exchange rate ３１ ■ Operating income Volume ３５ ー１２ Unit price －７０ （５７ → ４５） Exchange rate Cost reduction ５ and others １８ ©All R

  8. Slide 8: Segment Information (year-on-year)

    1-5．Segment Information（year-on-year ） (Three-months period) (millions of yen) Sales Operating income (loss) 3Q/FY06 3Q/FY07 3Q/FY06 3Q/FY07 （ change ） （ change ） Information Storage Media ３１,８２８ ２８,５６５ １,５９７ １,３９７ （ー１０.３％） （ー２００） Battery １２,７００ １４,８９９ ４１２ ９００ （＋１７.３％） （＋４８８） Material- Device- ９,７６０

  9. Slide 9: 3Q Segment Information (quarter-on-quarter)

    1-6．3Q Segment Information （quater-on-quater ） (millions of yen) Sales Operating income (loss) 2Q/FY07 3Q/FY07 2Q/FY07 3Q/FY07 （ change ） （ change ） Information Storage Media ２７,０００ ２８,５６５ ９５０ １,３９７ （＋５.８％） （＋４４７） Battery １４,１２３ １４,８９９ １,２４７ ９００ （＋５.５％） （ー３４７） Material- Device- ９,９１１ １４,６８１ ー２３３ ー３２

  10. Slide 10: Topics

    2．Topics 2-1．Three Priority Business 2-2．Core Business 2-3．Measures to strength Optical Components Business 2-4．Improve Improve Management Management Efficiency Efficiency and and Increase Increase Organizational Organizational Strength Strength ©All Rights Reserved, Copyright 2008 Hitachi Maxell, L

  11. Slide 11: Three Priority Business

    2-1. Three Priority Business Three Priority Business ■ Rechargeable Batteries：strong sales for cell phone, portable game Increased production capacity in lithium ion batteries 1H/07 14.5M→3Q/07 16.50M (units/month) Batteries ■ Primary Batteries：sales rose for micro batteries, especially heat-resista

  12. Slide 12: Core Businesses

    2-2. Core Businesses Core Businesses ■ Sales rose slightly by increased high capacity model (LTO3 ,LTO4）and positive effect on foreign exchange rate Computer tape ■ Recorded large decrease of profit by price decline ■ Implement cost reduction rigorously through MPI*1 initiative ■ Shipment increased

  13. Slide 13: Chinontec Overview and Tie-up

    2-3. Strengthen Optical Components Business—Chinontec Tie-up Chinontec Overview „ 1948 Sanshin Seisakusho was established （ Changed company name to Chinon in 1973） „ 1997 Spin off from Chinon „ Product lineup: glass/plastic lenses processing, optical engines/projection lenses for projectors, medical

  14. Slide 14: Synergies with Chinontec

    2-3. Strengthen Optical Components Business —Synergies with Chinontec Maxell ’s Strengths Maxell’s Strengths Common Common Strengths Strengths Chinontec ’s Strengths Chinontec’s Strengths Strengths of the companies Technologies ・Precision molding/substrate Lens design ・Assembly capabilities based on

  15. Slide 15: Improvement of Management Efficiency and Organizational Strength

    2-4. Improvement of Management Efficiency and Increase Organizational Strength ・ Promote MPI initiative to all business group MPI ・ Promote MPI initiative to Group companies (Sliontec) initiative ・ Implemented on Computer tape in April 07, reduced 35% of product and work-in process inventory, fewer

  16. Slide 16: Projection for FY2007

    3．Projection for FY2007 3-1．Revision of Business Projection for FY2007 3-2．Revision of Segment information ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 16

  17. Slide 17: Revision of Business Projection for FY2007

    3-1. Revision of Business Projection for FY2007 (millions of yen) Projection Projection (B)-(A) on October (A) on December(B) Net sales ２１０,０００ ２１０,０００ ±０ Operating income ４,５００ ５,０００ ＋５００ Ordinary income ４,８００ ５,５００ ＋７００ Net income １,５００ １,５００ ±０ Exchange rate $1=¥ １１７ $1=¥１１５ 1Euro=¥ １５６ 1Euro=¥１６

  18. Slide 18: Revision of Segment Information Projection

    3-2. Revision of Business Projection for FY2007 (millions of yen) Comparison with the Operating previous projection Sales income Operating （change） （change） income(loss) Information １０６,０００ ３,２００ ＋１,０００ Storage Media （－９％） （－５１％） Battery ５６,０００ ３,０００ －１００ （＋１９％） （＋３０％） Material- Device- Electronic ４

  19. Slide 19: Progress of Mid-term Business Plan

    4．Progress of Mid-term Business Plan 4-1．Measurement for Changing Business Portfolio 4-2．Changes of Segment Composition 4-3．Investment for Three Priority Businesses ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 19

  20. Slide 20: Measurement for Changing Business Portfolio

    4-1． Measurement for Changing Business Portfolio Measures executed in 3Q/FY07 Aggressive investment for batteries and optical components Restructure of optical disk business Strength optical component business by operational and capital tie-up with Chinontec ©All Rights Reserved, Copyright 2008 Hita

  21. Slide 21: Changes of Segment Composition

    4-2．Changes of Segment Composition Sales by segment Material-Device-Electronic Information Appliances Storage Media 19% 23% 30% 40% 23% 58% 50% 27% 電池 30% Batteries FY2006 FY2007 projection FY2010 Target ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 21

  22. Slide 22: Investment for Three Priority Businesses

    4-3．Investment for Three Priority Businesses Capital investment by segment Information Material-Device-Electronic Storage Media Appliances 15% 25% 35% 14% 29% 40% 45% 23% 36% 40% 36% 35% 33% Batteries FY2006 FY2007(plan) 15B yen FY2007～FY2009 11.4 Billion yen Previous Forecast (Oct.) 18B yen 3 years

  23. Slide 23: Fine Payment for the European Commission

    5．Fine Payment for the European Commission ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 23

  24. Slide 24: Fine payment for the European Commission

    5. Fine payment for the European Commission <Background> ・May 2002 Inspection carried by European Commission ・March 2007 Received Statement of Objections ・Nov. 2007 Fine payment order（14.4M euro/approx. 2.3B yen） ・Jan.2008 Resolution of payment for the Fine Payment <Financial impact ＞ ・Plan to charg

  25. Slide 25: 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

  26. Slide 26: Reference: Major Business Lines

    Reference : Major Business Lines Segment Main Products Computer tapes, Broadcasting video tapes, Information Blu-ray Discs, HD DVDs, DVDs, CDs, Storage Media Audio tapes, Video tapes Lithium ion rechargeable batteries, Coin-type lithium rechargeable batteries, Battery Silver oxide batteries, Lithium

  27. Slide 27: ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd.

    ©All Rights Reserved, Copyright 2008 Hitachi Maxell, Ltd. 27

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