Results for the year ended March 2012 1 Contents Ⅰ. Results for the year ended March 2012 Ⅱ. Forecast for the year ended March 2013 2 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 Annual Result Result preannounced forecast (31 Mar 2011) (31 Mar 2012) (31 Mar 2012) Net sales Operating income Income before tax Net income Total comprehensive income 54,934 2,094 1,695 1,738 852 50,804 2,081 1,615 1,759 1,863 55,000 2,500 2,200 2,000 － 3 Ⅰ . Results for the year ended March 2012 ・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. Net sales Operating income Income before tax Net Sales (Million yen) 14,000 2,500 12,000 2,000 10,000 8,000 1,500 6,000 1,000 4,000 Income (Million yen) 3,000 16,000 500 2,000 0 0 ▲ 2,000 Net sales Operating income Income before tax ▲ 500 Result of March 2010 1Q 2Q 3Q 4Q 13,814 14,433 13,744 12,943 395 1,087 689 ▲ 77 287 1,014 590 ▲ 196 Result of March 2011 1Q 2Q 3Q 4Q 12,125 13,823 12,685 12,171 321 756 597 407 204 575 552 284 4 Ⅱ. Forecast for the year ended March 2013 NDK Sales/Income (’06/3～ ’13/3 forecast） (Unit: billion yen) (Net sales) (Income before tax) 90 .0 2 0.0 7 3 .3 80 .0 70 .0 6 3 .6 9 .1 60 .0 50 .0 7 8 .1 Leman Shock （ Sep. 2008） Net sales 5 9 .4 5 2 .6 6 .9 3 .6 5 4 .9 1 .7 N e t sale s In c ome be fo re tax 30 .0 20 .0 5 0 .8 53.0 5 3 .0 1 0.0 2.2 2 .2 5 .0 1 .6 4 .3 40 .0 1 5.0 Income before tax ◆ 1.2 (special factor excluded) 0 .0 - 5.0 10 .0 ▲ 24.4 -▲20.0 10 .0 0 .0 re su lt re su lt re su lt re su lt re su lt re su lt re su lt f ore c ast ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 '1 2 / 3 '1 3 / 3 5 Ⅱ. Forecast for the year ended March 2013 Production Volume & Unit Price of Crystal Products (QIAJ) '06/3 Production Volume(※） 537 Unit price (Yen) 33.9 （※）Million units (Monthly average) '07/3 628 32.9 '08/3 754 29.2 '09/3 670 25.7 '10/3 756 21.4 '11/3 901 20.3 '12/3 '11/3⇒'12/3 780 -13.4% 19.5 -3.9% * SAW and OUT-OUT are not included （Data source) QIAJ : Quartz Crystal Industry Association of Japan Background of the ’11/3 ⇒’12/3 trend 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 Decline of average unit price was small due to product mix However, price reduction continues Ⅱ. Forecast for the year ended March 2013 Volume Zone Increase in demand at AV / OA market Expand sales with new competitive priced products Production volume of AV/ OA set devices (estimate) Unit: Million 4,500 4,140 3,889 4,000 3,500 3,561 3,253 合計 3,000 Others 2,500 DSC 2,000 LCD TV Develop new products with new engineering methods, responding to price reduction trend Small SMD type crystal units NX2016HA WLAN 1,500 USB 1,000 HDD 500 PC 0 2011 2012 2013 2014 Source : NDK estimate size 2.0(L)×1.6(W)×0.7(H)mm 7 Ⅱ. Forecast for the year ended March 2013 Global market share of Japanese products FlatPanelTV 70.0% 66.0% DigitalCamera 63.7% 65.4% MobilePhone 57.8% 49.3% 57.1% 40.0% 54.5% 29.1% 30.2% Global market share of Japanese products are declining 39.8% 34.6% 30.7% 30.7% 32.1% 33.3% 33.2% 29.9% 20.0% 10.0% 55.7% 46.6% 41.3% 30.0% HDD 62.6% 60.0% 50.0% NotePC Source : JEITA 9.3% 9.2% 0.0% 2005 7.9% 7.2% 2006 6.4% 5.5% 2007 27.4% 25.5% 22.6% 4.4% 3.7% 3.1% 2.9% 2.9% 4.2% 2008 3.3% 2009 2.8% 2010 2.6% 2011 2.1% 2012 The importance of the Chinese market is growing 8 Ⅱ. Forecast for the year ended March 2013 Strengthen business in Chinese market Production/ development base Production base Production area of AV/OA devices in 2011 Central and South America, 3% North America, 1% ＋ Growth of consumption Europe, 3% Development of Chinese local makers Asia, 26% China, China 65% Japan, 2% Taiwan, 0% Reference：Fuji chimera Promote localization Approach to Chinese local makers 9 Ⅱ. Forecast for the year ended March 2013 Improvement in data processing function and in communication speed, etc High Precision Devices Markets ① Mobile phones have become increasingly sophisticated Functions of smartphones have diversified Smart-phone production 携帯電話生産台数 Unit: Million 単位：百万台 2,500 Smartphone Featurephone Smartphone割合 share 2,000 1,500 1,440 287 1,000 1,591 437 27% 48% 50% 42% 1,730 1,857 1,950 35% 610 40% 30% 786 943 20% 20% 500 0 10% 1,153 1,154 1,120 1,071 1,007 2010 CY2010 2011 CY2011 2012 CY2012 2013 CY2013 2014 CY2014 0% Source : Goldman Sachs, EM data 10 Ⅱ. Forecast for the year ended March 2013 ■NDK line up for smartphone diversification One Chip Chip Downsizing Multiple functions + Simple design Limited functions + Lower price ＜required crystal devices＞ High-tech semiconductor NX2520SG ＋ Crystal unit + Temperature sensor Lower cost semiconductor built-in temperature sensor Size 2.5(L)×2.0(W)×0.9(H)mm NDK has lined up the best production for both patterns ＋ High accuracy TCXO NT2016SA Size 2.0(L)×1.6(W)×0.8(H)mm 11 Ⅱ. Forecast for the year ended March 2013 Data traffic volume increase 26 times ! from 2010 to 2015 High Precision Devices Markets② Increase in data traffic volume Introduction of LTE will grow 単位：千台 Unit: thousand 2,000 ＜基地局 出荷台数推移＞ Base station shipment trend Souce：Dell'Oro Source : Dell’Oro WiMAX 1,500 CDMA LTE 1,000 W-CDMA 500 GSM/GPRS /EDGE →Trend toward multi-base station (LTE+W-CDMA) 0 2007 2008 2009 2010 2011 2012 2013 12 Ⅱ. Forecast for the year ended March 2013 Small size and high stability Small size and high stability oscillators are required for LTE small stations Increase of small stations Small size OCXO(14x9mm) Realized high stability (±20ppb) in wide temperature range (-40 to +85deg.C) with small sized OCXO Ultra-high accuracy of 1/ 50 million (world top level) size 14.6(L)×9.7(W)×6.5(H)mm One-third volume of conventional size (21x13x10㎜) Utilized originally designed technology for - crystal units - IC for temperature control circuit 13 Ⅱ. Forecast for the year ended March 2013 Reduction of phase noise Even a small mismatch becomes a major problem in large-scale communication network VCXO (7x5mm) with low phase noise NV7050SG size 7.0(L)×5.0(W)×1.7(H)mm ■Low phase noise facilitates smooth transfer data even under weak radio wave Now loading ★Developed in-house IC to realize circuit that best suits the character of crystal units 14 Ⅱ. Forecast for the year ended March 2013 High Frequency 100Gbps can transmit 2 hours full high definition video (5 DVDs) in 2 seconds ! Unit: thousand Increase in data traffic volume require higher speed and larger capacity of optical communication devices Market trend of optical communication devices VCXO with high frequency (1.7/1.9GHz) Crystal units are used to realize - High stability - Low jitter and low phase noise Improves connection speed and realize smooth communication size 13.8×8.9×4.5mm Source : Dell’Oro 15 Ⅱ. Forecast for the year ended March 2013 Expand sales to top 4 companies Market share in mobile phone base stations in 2010 ALCATELALCATELLUCENT LUCENT 15% 15% HUAWEI HUAWEI 20% 20% ERICSSON ERICSSON 35% 35% Top 4 companies have approx. 90% market share NOKIA NOKIA SIEMENS SIEMENS 21% 21% Source : Dell’Oro 16 Ⅱ. Forecast for the year ended March 2013 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 Won the prize for the 3rd consecutive year from 2009 (This award was given to 2 suppliers among approx. 400 companies. ) (This award was given to the top 10 suppliers among approx. 800 companies) 17 Ⅱ. Forecast for the year ended March 2013 High Precision Devices Markets③ ■Telematic services development will enhance demand Telematic center GPS/ Mobile phones -Positioning data -Vehicle behavior info, etc. -Traffic info - Stolen vehicle tracking - Restaurant guide, etc. NT2520SB GPS will play greater roles in automobile Increase in demand of TCXO size 2.5(L)×2.0(W)×0.8(H)mm 18 Ⅱ. Forecast for the year ended March 2013 (Million yen) Operating cash ① ¥5 billion capital investment expected for the year ended March 2013 Investing cash ② Free cash flow ①-② Financing cash 10,000 8,000 5,042 6,000 4,000 2,538 2,000 42 ▲ 1,543 0 ▲ 830 ▲ 2,000 Promote production by utilizing in-house machines ▲ 2,920 ▲ 4,000 ▲ 4,081 ▲ 6,000 ▲ 8,000 ▲ 10,000 ▲ 5,000 Depreciation and amortisation ¥3,040 M Depreciation and amortisation ¥3,760 M Cash at year end ¥8,796 M Cash at year end ¥8,008 M ’12/3 actual R&D expenses R&D expenses ratio against sales (Million yen) ¥2.5 billion R&D expenses expected for the year ended March 2013 3,000 2,500 ’13/3 forecast 2,420 2,686 6% 2,500 5% 5.3% 2,000 4.7% 4.4% 4% 1,500 3% 1,000 2% 500 1% 0 0% ’11/3 actual ’12/3 actual ’13/3 forecast 19 Ⅱ. Forecast for the year ended March 2013 (Million Yen） Net sales Operating income Income before tax Net income Ratio of income before tax '12/3 actual 50,804 2,081 1,615 1,759 3.2% '13/3 forecast 53,000 2,500 2,200 2,000 4.2% 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 20 Finally 2014 2013 Make progress toward sustainable growth Establish solid financial base Make a leap toward growth 2012 Solidify the base for growth 21 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. 22