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This datum is based on the data as of June 30, 2011. The opinion and forecast described here is based on our judgment at that time and may possibly be.

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Presentation on theme: "This datum is based on the data as of June 30, 2011. The opinion and forecast described here is based on our judgment at that time and may possibly be."— Presentation transcript:

1 This datum is based on the data as of June 30, 2011. The opinion and forecast described here is based on our judgment at that time and may possibly be changed without notice. August 9, 2011 Results for the Three Months Ended June 30, 2011 (Supplementary explanation)

2 1 Subject 1.Operating results for the three months ended June 30, 2011 2.Forecast for FY ended March 2012 3.Acquisiton of 100% shares of STRAWBERRY CORPORATION

3 2 ( Million yen, %) 1-1 Summary of Consolidated Financial Results for the Three Months Ended June 2011 FY2011 1Q FY2012 1Q Change AmountRatio Net Sales 7,9746,331-1,643-20.6% Operating Income 216115-100-46.4% ( Margin ) ( 2.7% ) ( 1.8% ) -0.9%- Ordinary Income 141 -1 -143- ( Margin )( 1.8% )( 0.0% ) -1.8%- Net Income 164-145-309- ( Margin )( 2.1% )( -2.3% ) -4.4%-

4 3 1-2 Highlight ◆ Decrease in sales and income year on year Net sales decreased 20.6%. Operating income decreased 46.4% year on year because of decreased net sales and increased labor costs mainly in overseas. The ordinary loss amounted to \1 million and the net loss decreased to \145 million compared to the same period of previous fiscal year. ◆ Decrease in sales caused by earthquake and change of status of Motor business subsidiary to a company under equity method Sales in Precision Springs and Plastics (mainly in OA equipment and automotive market) decreased both in domestic and overseas due to the impact of the earthquake. Due to exclusion of Motor business subsidiary, net sales was largely decreased compared to the same period the previous fiscal year. ◆ Downsizing of main business in Hinge was announced After the announcement of downsizing of business for mobile phone market this April, net sales for the Hinge business were decreased. In addition, the continuation of partial production of unprofitable products led to a greater loss.

5 4 Mar/12 1 Q (百万 円) ( Million yen ) Mar/12 1 Q Mar/11 1 Q Net Sales Operating Income Net Income ( Million yen ) Operating Income Margin(%) ( Million yen ) Mar/12 1 Q Mar/11 1 Q 1-3 Trend of Sales and Income (Consolidated) Mar/11 1 Q Mar/12 1 Q

6 5 1-4 Quarterly Transition of Sales and Income Operating Income/ Margin Net Income Mar/11 Mar/12 Mar/11 Mar/12 Mar/11 Mar/12 Net Sales ( Million yen )

7 6 Net Sales Operating Income 1-5 Net Sales and Operating Income by Business Segment Precision SpringsHinges Motors Precision Springs Sales in the OA equipment and automotive markets were decreased due to the impact of the earthquake. Though domestic earnings were improved due to the increase of profitable products, total earnings were decreased because of decreased sales and increased labor costs in overseas markets. Net sales: -4.7% Operating income: decrease of \ 110 million Plastics ・ Sales to OA equipment and automotive markets were decreased due to the impact of the earthquake. ・ Earnings were improved due to the shift to more profitable products in domestic markets and increase in product price and cost reduction in China. ・ Net sales: -11.4% Operating income: decrease of \52 million Hinges ・ Net sales were decreased after the announcement of downsizing hinge business for mobile phone market this April ・ The continuation of partial production of unprofitable products led to a greater loss. Net sales: -19.0% Operating income: decrease of \11 million Motors (excluded from business segment) ・ As of the first quarter of this fiscal year, motor business segment is excluded because Motor business subsidiary, Fuji Micro Co., was changed consolidated subsidiary to equity method affiliate. ( Million Yen ) Factors for change from the previous period 12/1Q 11/1Q12/1Q11/1Q 12/1Q11/1Q12/1Q ( Million Yen ) Precision Springs HingesMotors 11/1Q 12/1Q11/1Q12/1Q11/1Q12/1Q Plastics

8 7 1-6 Net Sales and Operating Income by Geographical Segment Operating Income Net Sales JapanAsiaUSAEurope JapanAsiaUSAEurope Japan ・ Sales in Precision Springs and Plastics decreased due to the impact of the earthquake. Also sales decreased due to the downsizing of Hinge business and exclusion of Motor subsidiary. ・ Though in Precision Springs and Plastics earnings were improved due to the increase of profitable products, total loss was increased due to Hinge business. ・ Net sales: -24.9% Operating income: decrease of \19million Overseas ・ In Europe, sales and income were decreased due to decreased sales of Tangless Coilthread. In Asia, though earnings in Plastics were improved, sales and income in Precision Springs were decreased in China and Thailand affected by the earthquake in Japan. Net sales: -12.2% Operating income: decrease of \ 82 million ( Million Yen ) 10/1Q 11/1Q 10/1Q 11/1Q 10/1Q 11/1Q 10/1Q 11/1Q 10/1Q11/1Q10/1Q11/1Q10/1Q11/1Q10/1Q11/1Q Factors for change from the previous period

9 8 1-7 Net Sales by Market ( Million yen ) Mar/2012Mar/2011Change 1Q% %Amount % OA equipment 1,951 30.8 % 2,306 28.9 % -355 - 15.4% Automotive 1,354 21.4 % 1,540 19.3 % -186-12.1% PC and PC related 5488.7%3234.0%25569.8% Household equipment 4957.8%974 12.2 % -479 - 49.2% AV/ Home appliance 4096.5%5767.2%-167 - 29.0% Mobile phone and related 3826.0%6137.7%-231 - 37.7% Precision Components 3114.9%3724.7%-61 - 16.4% Medical and Healthcare equipment 1943.1%2172.7%-23 - 10.4% Others 68710.9 % 1,05413.2 % -368 - 34.9% Total 6,331100%7,974100%- 1,643 - 20.6%

10 9 2 Forecast for FY ended March 2012 (Consolidated) ( Million yen ) FY ended March 2011FY ended March 2012Change First HalfFull yearFirst HalfFull year *First HalfFull year Net Sales 16,15 9 31,45 9 12,50026,000-3,659-5,459 Operating Income 393552150850-243298 Operating Income margin 2.4%1.8%1.2%3.2%-1.2%1.4% Ordinary Income 21132650590-161264 Net Income 93 -152-150330-243482 * No revision has been made to the forecast at the moment.

11 10 3 Acquisition of 100% shares of Strawberry Corporation ◆ Agreement for the Share Exchange made on Aug 9 th, 2011. Strawberry Corporation will become a wholly-owned subsidiary of Advanex. Effective date of the Share Exchange is scheduled on November 1, 2011. Advanex will allocate 92 shares of common stock of Advanex to one share of Strawberry. The common stock of Strawberry will be delisted from JASDAQ Market on October 27, 2011. ◆ Purpose of Making Strawberry Advanex’s Wholly-Owned Subsidiary through the Share Exchange Strawberry was put in a state of asset deficiency and announced to downsize hinge sales to mobile phone handset market this April. As withdrawal from this business was much delayed, a greater loss will be forecasted in the future. To stop the damage to the Group from expanding further, by making Strawberry a wholly-owned subsidiary of Advanex, we will reduce cost by immediately integrating all the redundant functions of two companies and exercise flexible funding to support their business. In future, we will develop market such as automotive, housing related, and medical market and produce synergy effect with Advanex’s Precision Spring business.

12 11 ( CONTACT ) ADVANEX INC. Corporate Communication Dept. TEL : 81-3 - 3822 – 5865 FAX : 81-3 - 3822 – 5873 URL : http://www.advanex.co.jp


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