mid-term corporate plan
DESCRIPTION
Mid-Term Corporate Plan. June, 2006. Contents. 1. Earnings results for the year ended on March 31,2006 2. Mid-Term Management Planning. 1. Earnings Results for the year ended on March 31,2006. Earnings Results for year ended on March 31,2006. (Million of Yen). - PowerPoint PPT PresentationTRANSCRIPT
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Mid-Term Corporate Plan
June, 2006
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Contents
1. Earnings results for the year ended on March 31,2006
2. Mid-Term Management Planning
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1. Earnings Results for the year 1. Earnings Results for the year ended on March 31,2006ended on March 31,2006
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Earnings Results for year ended on March 31,2006
Consolidated Non-Consolidated
AmountChange from the previous
yearAmount
Change from the previous
year
Net Sales 19,641-
4,47016,277 -960
Ordinary income -2,778
-3,104
-1,363-
1,392
Net income -5,923-
6,069-5,846
-5,935
(Million of Yen)
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Main Reasons of the deficit financial report
By the Accounting for the impairment of AssetHovering Net Profit in the first half of the yearDepressed Results of TOWA-InterconPaper Loss of raw materials, goods in process,
equipment for display and loaned equipment Dealing Expense by withdrawing Wafer cleaning
equipment and Bonding related equipment business
Reserve Fund, etc by reduction rearrangement of overseas manufacturing subsidiary companies
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2. Mid-Term Management 2. Mid-Term Management PlanningPlanning
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Worlds Semiconductor Manufacturing Equipment Market Changes
0
100
200
300
400
500
600
1999 2000 2001 2002 2003 2004 2005 2006(E) 2007(E) 2008(E)0
10
20
30
40
50
60
Ass
embl
y Equ
ipm
ent
Semiconductor Equipment Market Scale (Assembly Equipment)
(Hundred Millions of US$) (Hundred Millions of US$)
Assembly Equipment3 years Average Growth Rate 12.4%
Overall Manufacturing Equipment 3 years Average Growth Rate 13.8 %
Source:SEMI ( 2005.12Release )
Ove
rall
Eq
uip
men
t
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Mid-Term Management GuidelineMid-Term Management Guideline
Back to our starting point of “Mold Die related technology” and “Manufacturing” as our Core Competence, establish earning structure and construct a new growth line by invest new products “PM series”, as beginning, into the world market
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1. Re-establish Business Portfolio1. Re-establish Business Portfolio
1. Concentrate on Molding and Singulation field
2. Develop Core Competence to the growth field , LED market as beginning
3. Pioneer to the new business field by developing New Material, etc
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2. Strengthening of Sales Strategy2. Strengthening of Sales Strategy
1. Expand our market share by new products “PM Series” and convert to discrimination conversion competition
Double-Layer MethodDouble-Layer Method* Mold Clamp Pressure 1/2
* Foot Print 30% less than Y series
* Compound usage 20 - 30% less than current method
Dramatically Reduced COODramatically Reduced COO*Applicable for Green compound
High Release mold diePM SeriesPM Series
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Develope Ceramics New Material for Mold material
(Problem)Increased adhesion between compound and mold by using green compound, productivity is decreased by increased cleaning frequency
Developed Ceramics New Material Developed Ceramics New Material having High Release mold having High Release mold (Resistance value of mold release, (Resistance value of mold release, 1/10 less than current material) 1/10 less than current material) - Cut down Cleaning process - Simplified mold die by E-pin less structure
Loaded on “PM series”Loaded on “PM series”
Ceramics New MaterialCeramics New Material
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2. Strengthen fencing sub-contractor, target top 10 of world major IDM and
Taiwan market
- Provide the latest packaging technology, SIP (System In Package), Multistage stack, Low-K, etc.
- Support Taiwan sub-contractor extending its business to China market
- Sales and Marketing of “PM series”
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Year 1995 2015
Mold Width (mm)3 1 0.5 0.4 0.3 0.2 0.15 0.1 ・
・・30 50 75 100 120 150 ・・・2 5 7 ・
・・Number of stacked Chips 1Wire Length (mm) Wire Dimention (μm) 25 20 18 15 12 10 ・
・・
4 5 6 8 10 ・・・
2005Mold Thickness (mm)
Packaging Road Map and TOWA’s SolutionPackaging Road Map and TOWA’s Solution
DIP QFP
SO/TSOP
PBGA
CSP
Wafer Level
Chip StackSingle Chip
Matrix FlameIntegrated MAP
Hig
h d
ensi
ty
Multi Plunger + Side Gate Multi Plunger + Side Gate or Top Gate or Top Gate
+ FM Vacuum method+ FM Vacuum method
Compression Compression MoldMold
1 Line Frame
Single-Plunger Single-Plunger MethodMethod
Multi-Plunger MethodMulti-Plunger Method
FBGA
PM PM TargetTarget
QFN
Package Stack
Stack Die
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3. Besides Taiwan Market, set up China Market and South East Market as Important area
0
20
40
60
80
100
120
J apan Taiwan Korea China Others America Europe
2005/ 3 Result 2006/ 3 Result 2007/ 3 Plan 2009/ 3 Plan
Net Sales Classified by Area (Consolidated)( Hundred Millions of Yen )
Asia
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4. Win Back Share of Singulation Equipment Field
INJINJSBSSBS
-Small Floor Space and High
Throughput by Integrated Dicer
and Handler
-Available for Curve Liner Cut
which has not cut by blade method
-Applicable for Composite Material
and Hard-cut Material like ceramic
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5. Bring Equipment into the LED Market
Compression Mold MethodCompression Mold Method- Almost 100% Yield of Resin- Stable mold of Lens shape- Applicable to mass production
FFTFFT
Clear Resin
Clear Resin Lens
Ceramic
Silicone Resin (LED) Mold Products
(Problem)
High density LED need to use Silicone resin which is high cost for ultraviolet measures
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6. Develop New Material to Business field of Existing equipment and General electronic parts
New Products “PM series” & New Material
More than 50% Share of existing
market
Development of Electronic parts
business field
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3. Optimization of QCD3. Optimization of QCD1. VE (Value Engineering) of Existing products
2. Improvement of the operation rate for overseas manufacturing subsidiary companies
3. Cut down distribution expenses and Shorten the lead time by optimization of production system including overseas manufacturing subsidiary companies
4. Cut down material purchase expenses by increasing overseas material supply
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4. Improvement of Financial structure4. Improvement of Financial structure1. Capital stock increase by allocation of new
share to a third party ( Issued number of new stocks ) 1,000,000 shares( Total issued price ) 8 hundred millions of yen( Allocate to ) Kazuhiko Bandoh( Purpose ) - Express the responsibility of Manager - Improvement of capital stock
completeness and financial structure(Account of spending fund) - Research & Development of New material 5 hundred millions of yen - IT investment for business rationalization 3 hundred millions of yen
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2. Repayment of Loan by selling real estate of overseas manufacturing subsidiary companies
3. Reducing inventories by reconsidering prior manufacturing method of platform base
4. Cutting down the collecting term of accounts receivable
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5. Reduce Fixed Cost5. Reduce Fixed Cost1. Reducing 20% of total group member (1,000 people
structure)
2. Cutting back on the number of staff by introducing an early stage retirement favorable system and loaning revolution register (Net 400 people structure)
3. Close down TOWA Singapore and selling the plant
4. Restructuring of TOWA-Intercon
Reduce Total 2 billion yen of Fixed costReduce Total 2 billion yen of Fixed cost
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6. Reconfirm Management Responsibilities6. Reconfirm Management Responsibilities
Demolishing reserve fund for executive Demolishing reserve fund for executive retirement bonus and abolition this systemretirement bonus and abolition this system
Returning total expenses of executive reward Returning total expenses of executive reward for chairman, CEO &COO and cut them down 10 for chairman, CEO &COO and cut them down 10 to 20 % for all executivesto 20 % for all executives
Cutting down the salary of administrative Cutting down the salary of administrative position staffposition staff
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7. Reformation of company cultures 7. Reformation of company cultures and structuresand structures
1. Perfect pursuit of CS (Customer Satisfaction)
2. Enhancement of ES (Employee Satisfaction)
3. Simplification and Flat conversion of the structure
4. Labor–saving and reducing staff by IT introduction
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Management Target
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50
100
150
200
250
300
350
2005/ 3 Result 2006/ 3 Result 2007/ 3 Plan 2008/ 3 Plan 2009/ 3 Plan
Ne
t S
ale
s
- 80
- 60
- 40
- 20
0
20
40
60
80
Ord
ina
ry P
rofit
/ N
et
Pro
fit
Precision mold chase for semiconductor manufacturing Molding equipmentPackaging equipment for LED Singulation equipmentOther equipments Molding products for fine plasticNew material relating Ordinary profitNet profit
(Hundred Millions of Yen)(Hundred Millions of Yen)
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The 2006 Fiscal year TOWA Corporation whole company slogan
「「 Challenge Challenge 30!!30!! 」」
「「 Challenge Challenge 30!!30!! 」」
Back to our starting Point Back to our starting Point and toward to the prideful TOWAand toward to the prideful TOWA