results for the year ended march 2012(revised final) [互換 …result of march 2010 result of march...

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Results for the year endedMarch 2012

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Contents

Ⅰ. Results for the year ended March 2012

Ⅱ. Forecast for the year ended March 2013

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Ⅰ. Results for the year ended March 2012

・Net sales declined by approx. 4.1billion yen for the year ended March 2012 due to stagnated demand affected by the supply chain disruption which was caused by the earthquake and Thailand flood. ・However, NDK maintained profit level equivalent to last year mainly by cost reduction of crystal oscillators for smartphones and mobile phone base stations

(Million yen) Annual Annual AnnualResult Result preannounced

forecast(31 Mar 2011) (31 Mar 2012) (31 Mar 2012)

Net sales 54,934 50,804 55,000Operating income 2,094 2,081 2,500Income before tax 1,695 1,615 2,200Net income 1,738 1,759 2,000Total comprehensive income 852 1,863 －

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Ⅰ . Results for the year ended March 2012

▲ 500

0

500

1,000

1,500

2,000

2,500

3,000

▲ 2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Net sales Operating income Income before tax

Net

Sal

es (M

illio

n ye

n)

Inco

me

(Mill

ion

yen)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QNet sales 13,814 14,433 13,744 12,943 12,125 13,823 12,685 12,171Operating income 395 1,087 689 ▲ 77 321 756 597 407Income before tax 287 1,014 590 ▲ 196 204 575 552 284

Result of March 2011Result of March 2010

・For the year ended March 2012, sales and profit increased in 2Q mainly by sales increase of crystal oscillators for mobile phone base stations. However, sales and profit decreased in 3Q and 4Q mainly by the Thailand flood which affected AVOA business.

63 .6

73 .378 .1

59 .4

52 .654 .9

50 .853 .0

3 .6

6 .9

9 .1

4 .31 .7 1 .6 2 .2

0.0

10 .0

20 .0

30 .0

40 .0

50 .0

60 .0

70 .0

80 .0

90 .0

resu lt resu lt resu lt resu lt resu lt resu lt resu lt forecast

’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 '12/3 '13/3

-10.0

-5.0

0 .0

5 .0

10.0

15.0

20.0

Net sales

Income before tax

Leman Shock（Sep. 2008）

(Income before tax)(Net sales)

▲24.4

◆

(Unit: billion yen)

555


▲20.0

Net sales

Income before

tax

NDK Sales/Income (’06/3～ ’13/3 forecast）

1.2 (special factor excluded)

53.0

2.2

Background of the ’11/3 ⇒’12/3 trend

Decline of average unit price was small due to product mix

However, price reduction continues

Production Volume & Unit Price of Crystal Products (QIAJ)

* SAW and OUT-OUT are not included（Data source) QIAJ : Quartz Crystal Industry Association of Japan


①Tuning fork crystal units and crystal units for consumer use declined (Production of Japanese electronics companies declined )

②Order of TCXOs and crystal units for smartphones by QIAJ companies increased

'06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '11/3⇒'12/3Production Volume(※） 537 628 754 670 756 901 780 -13.4%Unit price (Yen) 33.9 32.9 29.2 25.7 21.4 20.3 19.5 -3.9%（※）Million units (Monthly average)

77


Source : NDK estimate

NX2016HA

2.0(L)×1.6(W)×0.7(H)mmsize

Volume Zone

Increase in demand at AV / OA market

Expand sales with new competitive priced products

Develop new products with new engineering

methods, responding to price reduction trend

Small SMD type crystal units

Production volume of AV/ OA set devices (estimate)

3,2533,561

3,8894,140

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011 2012 2013 2014

Unit: Million

合計

OthersDSCLCD TVWLANUSBHDDPC

49.3%46.6%

41.3% 39.8%

34.6%30.7%

25.5%22.6%

66.0%63.7% 65.4%

62.6%57.8% 57.1% 55.7% 54.5%

9.3%

7.2%

6.4%4.4% 3.7% 3.1%

2.6% 2.1%

9.2%

7.9%

5.5% 4.2% 3.3% 2.8%

2.9% 2.9%

30.7% 32.1% 33.3% 33.2%29.9%

27.4%

29.1% 30.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2005 2006 2007 2008 2009 2010 2011 2012

FlatPanelTV DigitalCamera MobilePhone NotePC HDD

Source : JEITA


Global market share of Japanese products

The importance of the Chinese

market is growing

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Global market share of Japanese

products are declining

China, 65%

Taiwan, 0%

Japan, 2%

Asia, 26%

North America,

1%

Central and South

America, 3%

Europe, 3%

999


Strengthen business in Chinese market

Production base

Growth of consumption

Approach to Chinese local

makers

Production/development base

＋

Development ofChinese local

makers

China

Production area of AV/OA devices in 2011

Reference：Fuji chimera

Promote localization

1,153 1,154 1,120 1,071 1,007

287437

610 786 943

1,4401,591

1,7301,857

1,950

20%

27%

35%

42%

48%

0%

10%

20%

30%

40%

50%

0

500

1,000

1,500

2,000

2,500

CY2010 CY2011 CY2012 CY2013 CY2014

単位：百万台携帯電話生産台数

SmartphoneFeaturephoneSmartphone割合

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High Precision Devices Markets ①

Mobile phones have become increasingly sophisticated

Functions of smartphones have diversified

Source :Goldman Sachs, EM data

2010 2011 2012 2013 2014

Improvement in data processing function and in communication speed, etc

Unit: Million

share

Smart-phone production

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■NDK line up for smartphone diversification

NT2016SA

Size 2.0(L)×1.6(W)×0.8(H)mm

NX2520SG

Size 2.5(L)×2.0(W)×0.9(H)mm

One Chip Chip Downsizing Multiple functions

+Simple design

＜required crystal devices＞

＋High accuracy

TCXO＋

built-in temperature sensor

NDK has lined up the best production for

both patterns

Limited functions+

Lower price

High-tech semiconductor

Crystal unit+

Temperature sensorLower cost

semiconductor


High Precision Devices Markets②

12

0

500

1,000

1,500

2,000

2007 2008 2009 2010 2011 2012 2013

単位：千台＜基地局出荷台数推移＞

WiMAX

CDMA

LTE

W-CDMA

GSM/GPRS/EDGE

Souce：Dell'Oro

Increase in data traffic volume

Introduction of LTE will grow

Base station shipment trend

→Trend toward multi-base station (LTE+W-CDMA)

Unit: thousand Source : Dell’Oro

Data traffic volume increase 26 times !from 2010 to 2015

14.6(L)×9.7(W)×6.5(H)mmsize

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Increase of small stations

Small size OCXO(14x9mm)

Utilized originally designed technology for- crystal units- IC for temperature control circuit

Realized high stability (±20ppb) in wide temperature range (-40 to +85deg.C) with small sized OCXO

One-third volume of conventional size

(21x13x10㎜)

Ultra-high accuracy of 1/ 50 million(world top level)

Small size and high stabilityoscillators are required for LTE small stations

Small size and high stability


Reduction of phase noise

■Low phase noise facilitates smooth transfer data even under weak radio wave

VCXO (7x5mm) with low phase noise

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Even a small mismatch becomes a major problem in large-scale communication network

★Developed in-house IC to realize circuit that best suits the character of crystal units

NV7050SG

7.0(L)×5.0(W)×1.7(H)mmsize

Now loading


size 13.8×8.9×4.5mm

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VCXO with high frequency (1.7/1.9GHz)

Improves connection speed and realize smooth communication

- High stability - Low jitter and low phase noise

Increase in data traffic volumerequire higher speed and larger capacity of optical communication devices

High Frequency

Source : Dell’Oro

Unit: thousand

Market trend of optical communication devices

100Gbps can transmit 2 hours full high definition video (5 DVDs) in 2 seconds !

Crystal units are used to realize

ERICSSON35%

NOKIA SIEMENS

21%

HUAWEI20%

ALCATEL-LUCENT

15%


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ERICSSON35%

NOKIA SIEMENS

21%

HUAWEI20%

ALCATEL-LUCENT

15%

Market share in mobile phone base stations in 2010

Expand sales to top 4 companies

Top 4 companies have approx.

90% market share

Source : Dell’Oro

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Received “Supplier of the Year 2011” prize from Ericsson

Received “The Excellent Core Partner” prize

from Huawei

NDK products are delivered to the boards of mobile phone base stations(This award was given to 2 suppliers among approx. 400 companies. )

Won the prize for the 3rd consecutive year from 2009(This award was given to the top 10 suppliers among approx. 800 companies)

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2.5(L)×2.0(W)×0.8(H)mmsize

NT2520SB

Increase in demand of TCXO

■Telematic services development will enhance demand

High Precision Devices Markets③

Telematic center-Traffic info- Stolen vehicle tracking

- Restaurant guide,etc.

GPS/Mobile phones

GPS will play greater roles in automobile

-Positioning data-Vehicle behavior info, etc.

2,538

5,042

▲ 4,081▲ 5,000

▲ 1,543 42

▲ 2,920▲ 830

▲ 10,000

▲ 8,000

▲ 6,000

▲ 4,000

▲ 2,000

0

2,000

4,000

6,000

8,000

10,000

’12/3actual

’13/3forecast

Operating cash ① Investing cash ② Free cash flow ①-② Financing cash

Depreciation and amortisation ¥3,040 MCash at year end ¥8,796 M

Depreciation and amortisation ¥3,760 MCash at year end ¥8,008 M

1919


Promote production by utilizing in-house machines

¥2.5 billion R&D expenses expected for the year ended March 2013

¥5 billion capital investment expected for the year ended March 2013

2,4202,686 2,500

4.4%5.3%

4.7%

0%

1%

2%

3%

4%

5%

6%

0

500

1,000

1,500

2,000

2,500

3,000

’11/3actual

’12/3actual

’13/3forecast

R&D expensesR&D expenses ratio against sales

(Million yen)

(Million yen)

2020


Exchange rate for the year ended Mar. 2013 (US$)：¥75(Previous year average exchange rate ： ¥79.30)

Influence on Net Sales¥1 fluctuation⇒ approx.¥250mil

Influence on Operating Profit¥1 fluctuation⇒ approx.¥80mil

(Million Yen）'12/3

actual'13/3

forecastNet sales 50,804 53,000Operating income 2,081 2,500Income before tax 1,615 2,200Net income 1,759 2,000Ratio of income before tax 3.2% 4.2%

2013

2012

Finally

Solidify the base for growth

Make a leap toward growth

Establish solid financial base

2014

Make progress toward

sustainable growth

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Thank you for your attention.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.

results for the year ended march 2012(revised final) [互換 …result of march 2010 result of march...

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