Maxell, Ltd. · TSE:6810

Maxell — Hitachi Maxell — H1 FY3/2007 Earnings Presentation

22 slides from Maxell's earnings presentation, Oct 27, 2006

  1. Slide 1: Hitachi Maxell Consolidated Results 1st Half of Fiscal Year March 2007

    Hitachi Maxell Consolidated Results 1ST Half of Fiscal Year March 2007 October 27, 2006 ©All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

  2. Slide 2: Contents

    Contents 1. Consolidated Results for 1st Half FY 3/2007 2. Topics – 1st Half of FY 3/2007 3. FY2007 Management Measures ©All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd. 2

  3. Slide 3: 1. Consolidated Results for 1st Half FY 3/2007

    1. Consolidated Results for 1st Half FY 3/2007 ©All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd. 3

  4. Slide 4: Consolidated Results for 1st Half of FY 3/2007

    Consolidated Results for 1st Half of FY 3/2007 (millions of yen) 1st Half of 1st Half of FY3/07 Change previous forecast to FY 3/06 Projection Actual Change actual for on April FY 3/2006 Net sales 97,943 100,000 99,129 +1.2% - 0.9% Operating income 1,585 2,100 4,082 +157.5% +94.4% Ordinary income 2,

  5. Slide 5: Factor Analysis for FY 3/2007 (year-on-year)

    Factor Analysis for FY 3/2007 (year-on-year) Change ( 1st Half of FY 3/2005) Factor Analysis → ( 1st Half of FY 3/2006) (millions of yen) ■ Sales Volume +26 +12 Unit price - 44 (979→991) Exchange rate +30 ■ Operating income Volume +8 +25 Unit price - 44 (16→41) Exchange rate +11 Cost reduction and o

  6. Slide 6: Overview of New Segments

    Overview of New Segments Current Segments (-FY2005) New Segments (FY2006-) Information Storage Media Information Storage Media • Computer tapes • Broadcasting video tapes • Computer tapes • Broadcasting video tapes • Optical discs • Floppy disks • Optical discs • Floppy disks • Optical components •

  7. Slide 7: Segment Information (year-on-year)

    Segment Information (year-on-year) 1st Half of FY 3/2007 (millions of yen) Sales Operating income Q2/FY2006 Q2/FY2007 Q2/FY2006 Q2/FY2007 ( change ) ( change ) Information 61,762 57,315 2,612 3,438 Storage Media ( - 7.2%) (+826) Battery 18,036 22,491 - 120 867 (+24.7%) (+987) Material- Device-Electr

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

    Segment Information (quater-on-quater) (millions of yen) 1st Half of FY 3/2007 Sales Operating Income Q1/FY2007 Q2/FY2007 Q1/FY2007 Q2/FY2007 ( change ) ( change ) Information 28,614 28,701 1,375 2,063 Storage Media (+0.3%) (688) Battery 10,715 11,776 439 428 (+9.9%) (- 11) Material- Device-Electron

  9. Slide 9: 2. Topics – 1st Half of FY 3/2007

    2. Topics – 1st Half of FY 3/2007 ©All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd. 9

  10. Slide 10: Reconstructing and Newly Developing Core Operations

    Reconstructing and Newly Developing Core Operations Core operations Market conditions and Maxell’s initiatives „ 2Q: Steady shift to high-storage-capacity products „ 3Q: Between product life cycles, LTO prices drop, volumes decrease Computer more than initial projections Tapes „ Efforts underway thr

  11. Slide 11: Optical disks: Recordable DVDs (1)

    Optical disks: Recordable DVDs (1) Change business model by strategically outsourcing production “Super ODM” Features of Super ODM -Target product category: write-once DVDs -Steady introduction to domestic market from beginning of 2007 Maxell Partners Tsukuba Works to become AD technology center Pro

  12. Slide 12: Optical disks: Recordable DVDs (2)

    Optical disks: Recordable DVDs (2) BCN Award,* Strengths: high quality and outstanding reliability No.1 again for 2006 first half (years) 24% Media 25°C 30°C Reference Domestic A media 178 74 Domestic B media - - No advancement of degradation, cannot be measured Maxell Domestic C media 15 9 Others D

  13. Slide 13: Lithium ion rechargeable batteries

    Lithium ion rechargeable batteries Strengthening supply capabilities and growing market share by increasing production - Developments in application markets Transition of maxell’s production capacity Amount of production : Ten thousand/month - Growth in demand continues for advanced functionality 2,

  14. Slide 14: Primary batteries

    Primary batteries Micro: pursue high-value-added products, alkaline: target top market share Micro batteries - Maxell’s initiatives and outlook for 3Q and beyond - Develop/increase sales of high-value-added products - Heat-resistant, coin-type lithium batteries - Mercury- and lead-free silver oxide

  15. Slide 15: Developing Robust New Businesses Early and Acquiring New Technology for the Future

    Developing Robust New Businesses Early and Acquiring New Technology for the Future Development of new businesses will concentrate on optical components and functional materials, Maxell will also advance new technology acquisition Optical components - Pickup lenses for DVDs and mini camera lens units

  16. Slide 16: Developing Robust New Businesses Early: Optical Components

    Developing Robust New Businesses Early: Optical Components Exploit differentiated technology (thin-type design, wide viewing angle, high resolution, advanced aspherical) to realize high-value-added products - Trends in application markets Transition of maxell’s lens production capacity - Firm demand

  17. Slide 17: Acquiring New Technology for the Future

    Acquiring New Technology for the Future Business PT underway - Target market: commercial-users handling large volumes of data (medical treatment providers etc.) SVOD - Distinctive features: realization of 92-micron, thin-type disc by using original stamping technology and nanoimprint technology TB-c

  18. Slide 18: 3. FY2007 Management Measures

    3. FY2007 Management Measures ©All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd. 18

  19. Slide 19: Revision of Business Forecast for the FY 3/2007

    Revision of Business Forecast for the FY 3/2007 (millions of yen) Projection Projection year-on- year (B)-(A) on April(A) on October(B) Net sales 206,000 206,000 +0.9% ±0 Operating income 5,700 6,800 +21.6% 1,100 Ordinary income 6,600 7,400 +1.9% 800 Net income 3,300 3,300 +2.0% ±0 Capital Expenditu

  20. Slide 20: Revision of Segment Information

    Revision of Segment Information (millions of yen) Comparison with Sales Operating the previous projection income Sales Operating ( change ) ( change ) income Information Storage Media 119,300 5,000 - 2,500 +700 ( - 7.1%) ( - 929) Battery 47,000 1,800 +2,500 +400 (+18.4%) (+584) Material- Device- 39,

  21. Slide 21: Revision of dividends projections

    Revision of dividends projections Dividend per share Standard Interim Year-end Full year Previous forecast (April 26,2006) ¥9.50 ¥9.50 ¥19.00 New forecast (October 27,2006) ¥10.00 ¥10.00 ¥20.00 Result for the year just ended (April 1, 2005 through March 31, 2006) ¥9.50 ¥9.50 ¥19.00 ©All Rights Reser

  22. Slide 22: Note: forward-looking statements

    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

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