1
1st Half Results of FY2010,ended March 2011
2
Ⅰ.1st half results for the year ended March 2011Ⅱ. Approach to markets that draw attention
1. Network-related market2. GPS-related market3. Energy-related market4. Sensor-related market
Ⅲ. Forecast toward the full year ended March 2011
Contents
3
Ⅰ. 1st half results for the year ended March 2011
1. Net sales was ¥28.2billion for the 1st half of FY2010(rise of 9.7% on a year-to-year comparison )
2. Profits for 1st half of FY2009 included reduction of unrealized loss of 3.1 billion yen incurred by inventory evaluation. Therefore, if this special factor was excluded the 1st half of of FY2010 would havewould have marked increases both in sales and profit.
Financial statements are prepared in accordance with IFRSs from the year ended March 2010(NDK is the first company in Japan to apply IFRSs voluntarily)
(Million yen)*1H of FY2009 1H of FY2010 1H of FY2010(30 Sept. 2009) (30 Sept. 2010) (30 Sept. 2010)
actual actual announcedforecast
Net sales 25,758 28,247 27,000Operating income 3,057 1,482 1,500Income before taxes 3,508 1,301 1,350Net income 3,539 1,316 1,250Total comprehensive income 2,872 314 -* Include 3 .1billion yen reduction of unrealized loss incurred by inventoryevaluation as of Sep 2009.
4
Ⅰ. 1st half results for the year ended March 2011
Net sales of main applications of 1st half FY2010 increased compared to 2nd half FY2009.
■Sales trend of main applications
0
4,000
8,000
12,000
FY20081H
FY20082H
FY20091H
FY20092H
FY20101H
(Million yen)
MobileCommunications
Audio Visual/OfficeAutomation
Fixed RadioCommunications
AutomotiveElectronics
Others
5
Ⅰ.1st half results for the year ended March 2011Ⅱ. Approach to markets that draw attention
1. Network-related market2. GPS-related market3. Energy-related market4. Sensor-related market
Ⅲ. Forecast toward the full year ended March 2011
Contents
66
Ⅱ. 1. Approach to markets that draw attention
- Network-related market
7
147204
285
382
499
639
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013 2014
単位:exa bytes
Mobile Data
Managed IP
Internet
Total
7
Forecast of network traffic volume
Source : Cisco* “exa” is quintillion or 10^18.
Ⅱ. 1. Approach to markets- Network-related market
●Network traffic volume will increase.⇒ Higher speed and capacity will be required with
telecommunications peripheral devices and the volume of the devices will increase as well.
Traffic will increase by 4.3 times from 2009
Unit : *exa bytes
8
Wired WirelessBroadcasting
equipment
Microwave communication
Zigbee
Bluetooth
WiFi
Mobile phone base station
FWA*
Mobile phone
SmartphoneEntry model
Femtocellbase station
The requirement of function (specs) and volumes in network equipment varies depending on each level of both wired and wireless network.
Core
Terminal
Access
Submarine cable system
WDMSONET/SDH
PLC
ONU
STB
Routers
Ethernet equipment Relaying
apparatus
Broadband router
*FWA: fixed wireless access with subscribers
Ⅱ. 1. Approach to markets- Network-related market
9
Bluetooth
Core
Terminal
Access
ZigbeeWiFi
FWA
Mobile phone
SmartphoneEntry model
FemtocellBase Station
WDMSONET/SDH
PLC
ONU
STB
Routers
Relaying apparatus
Broadband router
Volume zone
Ethernet equipment
Highly-accurate devices marketsSubmarine
cable system Microwave
communicationBroadcasting
equipmentMobile phone base station
Volume zone is expanding
Highly accurate OCXOs and VCXOs are used in the core system, VCXOs and TCXOs are used in the access system, and devices such as low-priced oscillators, TCXOs and clock oscillators are used in the volume zone.
Ⅱ. 1. Approach to markets- Network-related market
1010
Volume zone
The number of terminals on the network will increase ↓
Need to prepare for commodity products that could be sufficiently delivered with reasonable performance and price.
Highly-accurate devices markets
An increase in the communication traffic requires a large increase in speed and capacity
↓High accuracy and high frequency
crystal devices are required
Ⅱ. 1. Approach to markets- Network-related market
111111
Synthesizer for digital terrestrial broadcasting(home and abroad)
Synthesizer for microwave relay stations ( to 15GHz: public telecommunication, etc.)
Digitalization and a large increase in speed and capacity in each frequency bands is in progresss is in progress
Signaling equipment for evaluation or clock
(10MHz~3GHz)
Resolved highly challenged spec, such as low phase noise , by digital circuit technology
Met the highly-accurate needs for the large-volume digital broadcasting
Realized low phase noise at challenging GHz band
Met the highly-accurate evaluation needs by creating signal of low phase noise
A new field developed by the crystal technology & the digital technology
Ⅱ. 1. Approach to markets- Network-related market
1212
Ⅱ. 2. Approach to markets that draw attention
- GPS-related market
1313
Car navigation system
PND
DSC
Note PC
Surveying instrument
Smartphone
Automobile
Mobile communication
Industrial applications
Audiovisual / Office Automation
Applications used outdoor
Ⅱ. 2. Approach to markets - GPS-related market
GPS spreads in
various use
GPS spreads in various equipments such as mobile phones, car navigation system, cameras and note PC. GPS is also used in various way such as charging in accordance to distance , reporting location atat emergency, and automated driving of of construction and surveying vehicle.
High precisionTCXO usedfor GPS
14
66 64 7181
96
121
152
0
50
100
150
200
2008 2009 2010 2011 2012 2013 2014
単位:百万台others
DVC
その他車載
HandyGPS
PMP
デジカメ
ポータブルゲーム
カーナビ
テレマティクス
PC(ノート/タブレット)
PND
260311
398484
587
712
852
194247
327403
490591
700
6664
71
81
96
121
152
0
200
400
600
800
1,000
2008 2009 2010 2011 2012 2013 2014
単位:百万台
その他
携帯電話
Number of GPS equipped by set devices
Source :TSR
Although GPS is mostly used for the mobile phone, its usage extends to various applications, such as PND and Note PC
* DVC :Digital Video Camera** PMP:Portable Multimedia Player***PND :Personal Navigation Device
Car navigation system
Telematics
Portable game
DSC
Ⅱ. 2. Approach to markets - GPS-related market
Mil units Mil units
<Products otherthan mobile phones>
Other automotive devices
Note PC & Tablet PC
Mobile phones
Others
< The entire GPS market >
1515
Ⅱ. 3. Approach to markets that draw attention
- Energy-related market
1616
Ⅱ. 3. Approach to markets - Energy-related market
Central Power Station- hydraulic power, thermal power, nuclear…
Supply-demand stability control /power outage monitoring(power company)
Large renewable power sources- Sunlight, heat energy, wind power…
BatteriesSmart building
Smart home
Smart electrical appliances
Smart meter
HV/PHEV/EV
In the energy-related markets, the communication of the energy control and information are integrated in the network where the equipments and the technologies realizes the reduction, creation and efficiency use of energy consumption.
Water Water metermeter
Waste Waste disposaldisposal
CogenerationCogeneration
flow of electricity
flow of information“New world” created by smart grid
Infrastructure
Services
PLCZigbee
BluetoothWiFi
Building control
equipment
MetersNetwork devices
Batterycontrol
Equipment to use crystal devices
Hybrid CarElectric car
1717
Crystal devices for Communication between meters and interior equipment (volume zone)
Crystal devices for meter function(volume zone)
Automotive crystal devices(highly-reliable products)
Highly-accurate crystal devices for core network equipment
Crystal devices for energy control equipment in buildings, plants, etc.(highly-reliable products)
Crystal devices for battery control equipment(highly-reliable products for outdoor use )
Crystal devices used in various equipment
Ⅱ. 3. Approach to markets - Energy-related market
PLCZigbee
BluetoothWiFi
Building control
equipment
MetersNetwork devices
Batterycontrol
Equipment to use crystal devices
Hybrid CarElectric Car
18
0.9 1.3
5.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2009 2010 ~ 2014
単位:兆円
Smart grid - related market
Source: Fuji Keizai
4.5 times larger compared to 2010 level
Trillion yen
Ⅱ. 3. Approach to markets - Energy-related market
1919
Ⅱ. 4. Approach to markets that draw attention
- Sensor-related market
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Ⅱ. 4. Approach to markets - Sensor-related market
NDK contributes to NDK contributes to medical caremedical care, healthcare and , healthcare and biotechnology fields with hbiotechnology fields with highigh--accuracyaccuracy sensor sensor technology . technology .
UUltrasonic sensorltrasonic sensorss
Continuing Continuing growth is growth is expected expected
NAPiCOSNAPiCOS
In addition to In addition to network and network and consumer consumer
applicationsapplications
33DD probeprobe((for the for the abdomenabdomen))
3D linear 3D linear probe probe
highhigh--sensitive measuring sensitive measuring equipment of equipment of intermolecular intermolecular
interactioninteraction
21
◆◆UUltrasonic sensorltrasonic sensorss
Enables realEnables real--time & 3D time & 3D display of the diseased area display of the diseased area and enhances accurate and enhances accurate diagnostic imaging diagnostic imaging
Parallel Parallel scanscan enhances enhances lateral resolution of lateral resolution of diagnostic imagingdiagnostic imaging
Possible to Possible to diagnosis diagnosis of of mammary glandmammary gland, muscles, , muscles, tendon, blood vessels, etc. and to measurement of tendon, blood vessels, etc. and to measurement of subcutaneous fat and muscle masssubcutaneous fat and muscle mass
33DD probeprobe((for the for the abdomenabdomen))
3D linear probe 3D linear probe
Ⅱ. 4. Approach to markets – Ultrasonic sensors
2222
”NAPiCOS Auto” are sold to universities, institutes, and fields of material and clinical system, etc.
19mm
◆Character- Immune reaction is automatically
measured by easy pipetting operation!
( auto type)- Micro scale sample can be measured with
the newly developed micro fluid chip!(5μL:1/10 of our conventional product)( auto type)
- Short time measurement(minimum 15 min: 1/5 of competitors’conventional products)
- Application not only to liquid phase but also to gas phase( manual type)
NAPiCOS Auto 20A (Auto type)
Newly developed!Micro fluid chip
NAPiCOS 10A (Manual type)
Ⅱ. 4. Approach to markets – Biosensors
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Ⅰ.1st half results for the year ended March 2011Ⅱ. Approach to markets that draw attention
1. Network-related market2. GPS-related market3. Energy-related market4. Sensor-related market
Ⅲ. Forecast toward the full year ended March 2011
Contents
24
Reduce influence of exchange fluctuations by increasing overseas production ratio
SuzhouFactory
MalaysiaFactory
Ⅲ. Forecast toward the full year ended March 2011
Expected exchange rate for the 2nd half of FY2010 (US$):¥80(FY2010 1st half result average : ¥88.85)
Overseas Overseas production ratioproduction ratio
FY2009FY2009Full year Full year
29%29%
FY2010FY201011stst half half
34%34%
Influence on net sales (2nd half of FY2010)¥1 fluctuation⇒ approx.¥100 mil
Influence on operating profit (2nd half of FY2010)¥1 fluctuation⇒ approx.¥25 mil
Japan
25
11,768
137
5,1006,371
4,008 3,871 3,400
▲ 5,397
1,700
-6,000
-3,000
0
3,000
6,000
9,000
12,000
March 2009actual
March 2010actual
March 2011forecast
Operating cash ① Investing cash ② Free cash flow ①-②
¥¥33..44 billion billion ccapital
investment expected as
planned
¥¥2.2.2 2 billionbillionexpected to be allocated to R&D as
planned
(Million yen)
2,241 2,2252,531
4.0%4.3%4.3%
0
500
1,000
1,500
2,000
2,500
3,000
March 2009actual
March 2010actual
March 2011forecast
0%
1%
2%
3%
4%
5%
6%R&D expenses R&D expenses ratio against sales(Million yen)
Ⅲ. Forecast toward the full year ended March 2011
26
(Million yen) March 2009actual
March 2010*actual
March 2011forecast
Net sales 59,429 52,590 55,000Operating income/(loss) ▲ 25,380 3,979 3,500Income before taxes ▲ 24,358 4,303 3,200Net income/(loss) ▲ 28,731 4,337 3,000Operating income ratio ▲ 42.7% 7.6% 6.4%
Global environmental changes
IFRS IFRS IFRS
Accumulate sufficient Accumulate sufficient strengthstrength ( through
securing income target )
Accumulate sufficient Accumulate sufficient technology (crystal + technology (crystal + digital technology )digital technology )
Meet diversifying needs with our technical capacityMeet diversifying needs with our technical capacity
* Include 3.1 billion yen reduction of unrealized loss incurred by inventory evaluation as of March 2010.
Ⅲ. Forecast toward the full year ended March 2011
27
Thank you for your attention.Thank you for your attention.We are grateful for your continuous support.We are grateful for your continuous support.
【Note】Statements made in this presentation with respect to our current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about our future performance. These statements are based on management’s assumptions and beliefs in light of information currently available to it. We caution that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on the belief that it is our obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Risks and uncertainties that might affect us include, but are not limited to; fluctuation of currency exchange rates, overall supply and customer demand in the industry, product development and production capacities, performance of affiliated companies, and other risks and uncertainties.