Financial Report for the 2nd Quarter Ended September 30, 2014

JAPAN PURE CHEMICAL CO., LTD.
Financial Report for
The Second Quarter Ended September 30, 2014
Financial Results
Review of the Second Quarter of FY2014
Electronic Components Industry
The production of electronic components was strong in anticipation of the launch of new
high-end smartphones, while the industry was also supported by the production of
smartphones intended for China.
The electrification of automobiles was accelerated, and the growing demand for on-board
electronic components also served as a tailwind.
Despite the rebound to the last-minute demand before the consumption tax hike in Japan
and the slowdown in overseas economy, the brisk demand remained for electronic
components and semiconductors, and general conditions were favorable for the industry.
JPC’s Financial Review
Sales of hard gold plating chemicals for micro-connectors used in high-end smartphones
and automobiles were strong due to our technological superiority.
With the increased demand for pure gold plating chemicals for the wire bonding of memory
substrates, the decreasing trend reversed into a slightly increasing trend.
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
2
Review of the Second Quarter Financial Results of FY2014
(millions of yen,%)
FY2013
Period
First Half
(April 2013September 2013)
FY2014
First
Quarter
Second
Quarter
First
Half
(April 2014September
2014)
Year-onyear
change
FY2014
Forecast
*2
Change
from
previous
year’s
results
Net sales
5,013
2,339
2,743
5,082
1.4
9,600
4.5
Operating
income
545
315
281
597
9.5
1,050
8.1
Ordinary
income
572
343
287
630
10.2
1,100
7.3
Net income
380
240
182
422
11.3
720
7.4
64.90
41.37
31.26
72.26
11.9
123.64
7.7
Net income
per share *1
*1 The Company executed a 100-for-1 stock split with respect to its ordinary shares effective April 1, 2014. Net
income per share was thus calculated assuming that said stock split had taken place at the beginning of the previous
fiscal year.
*2 The Company revised its financial forecast as of October 14, 2014.
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
3
Historical metal prices
Prices of copper, tin and nickel
■ Copper
(yen/g)
■ Tin
Prices of gold and palladium
■ Gold
■ Nickel
■ Palladium
5,000
7.00
(yen/g)
4,500
6.00
4,000
Prices as of September 30, 2014
Gold
4,305/g
Palladium 2,855/g
5.00
3,500
3,000
4.00
2,500
3.00
2,000
1,500
2.00
1,000
1.00
500
0.00
07/3
0
07/9
08/3
08/9
09/3
09/9
10/3
10/9
11/3
11/9
12/3
12/9
13/3
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
13/9
14/3
14/9
4
Sales by Final Product and Region
Others
Lead Frames
Connectors & Micro-switches
Printed Circuit Boards & Semiconductor Substrates
3,000
2,000
1,000
0
１Q
２Q
３Q
４Q
１Q
２Q
FY2010
３Q
４Q
１Q
２Q
FY2011
３Q
４Q
２Q
FY2012
３Q
４Q
FY2013
Sales by Region (Export)
Export Sales (millions of yen)
１Q
Taiwan
２Q
FY2014
Korea
Export Ratio
1,500
１Q
Singapore･Malaysia
Others
China
60
1,200
50
900
40
30
600
20
300
10
0
0
１Q
２Q
３Q
FY2010
４Q
１Q
２Q
３Q
FY2011
４Q
１Q
２Q
３Q
４Q
１Q
FY2012
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
２Q
３Q
FY2013
４Q
１Q
２Q
Export Ratio (% to Total Sales)
Sales (millions of yen)
Sales by Final Product
FY2014
5
Operating Income(5 years)
(millions of yen)
FY2010
FY2011
FY2012
FY2014
FY2013
300
250
200
150
100
50
0
-50
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
Dec
Jan
Feb
Mar
6
SGA & Operating Income
SGA(Ａ)
(millions of yen)
Operating Income(Ｂ)
SGA(Ａ)/Gross Profit(Ａ+Ｂ)
700
600
（％）
65
64.5
382
389
366
341
342
500
60
350
334
316
310
261
299
315
267
50.2
52.1
47.3
400
40.8
38.1
300
46.1
39.8
39.8
42.5
271
45.0
45.4
41.4
281
55
47.2 50
153
235 229
45
47.4
40
42.4
41.4
35
37.1
200
30
100
25
225
239 235
226
242
247
223
211
239
258
247
237
249
259
244
279
232
251
0
20
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2010
FY2011
FY2012
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
FY2013
FY2014
7
New Product Lineup
Electroless plating
Electrolytic plating
Plating methods
Applications
New products in and before 2012
New products in and after 2013
Pure gold plating
（more than 99.99％）
The series of TEMPERESIST
Used for wire bonding of IC packages
Hard gold plating
（Alloy of gold and cobalt）
The series of OROBRIGHT
Used for contacts such as connectors.
BAR(NI)
BAR7 was developed for fine pitch connectors.
Electrolytic palladium
plating
The series of PALLABRIGHT
Used for lead frames
NANO2 compatible to ultra-thin PPF plating.
Immersion gold plating
The series of IM-GOLD
Used for ACF connection and soldering of
mobile substrates
IB2, CN-I compatible to smart phone.
Electroless Ni/IB2X, OM
Auto catalytic gold plating
The series of NEO GOLD
Intended for MPU packages such as servers
and desktop PCs.
NEO GOLD V(PN)
HY-GOLD CN
Auto catalytic palladium
plating
The series of NEO PALLABRIGHT
Intended for CSP packages such as smart
phone.
NEO PALLABRIGHT 2
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
8
New Product Development and Sales Expansion
New Product Development and Sales Expansion Policy
1. Product development and sales expansion
compatible with the recent trend for gold saving
2. Entry into markets that promise significant growth
3. Use of unique proprietary technology
We will engage in product development and sales expansion by
promoting the three projects that meet the above requirements.
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
9
Project 1 Gold Saving Plating for On-board Connectors
Project 1
The use of electrolytic hard gold plating (BAR7) has become widespread in mobile
terminals. Further sales expansion of BAR7 is expected, as certain connecter
manufacturers also have strengths in the automotive field.
Additionally, the tightening of environmental regulations and the need for driving safety
support have accelerated the electrification of automobiles, and on-board components
are on an increasing trend.
The automotive field also holds high expectations for the gold saving effects of BAR7
and product improvements are being made so that the products can meet various
requirements including reduced cost and durability.
Application: From connectors for mobile terminals to on-board connectors
Expected Effect: Expanded application of BAR7
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
10
Project 2 ENIG Process Intended for Chinese Market
Project 2
China produces more than 50% of the world’s printed circuit boards and the ENIG
(Electroless Nickel/ Immersion Gold) process has become widespread.
Meanwhile, Chinese customers had request for a total ENIG process, which had been a
challenge for our company in terms of expanding its sales.
Acidic
Degreasing
→
Microetching
→
Acid
Cleaning
→ Activation
Pretreatment Chemicals from a Partner
→
Acid
Cleaning
Electroless
Nickel Plating
→
Electroless
Nickel (Partner)
→
Electroless
Gold Plating
Electroless
Gold
Application: Mother boards for mobile terminals
Expected Effect: Expansion of market share by proposing a total ENIG process
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
11
Project 3 Direct EPIG Process on Copper
Project 3
Direct EPIG (Electroless Palladium/ Immersion Gold) process on copper for nextgeneration smartphones has been newly developed.
The process, by omitting the electroless nickel, has enabled wiring with higher density.
Gold (Au)
Palladium (Pd)
Nickel (Ni)
0.05～0.1μm
0.05～0.1μm
1～5μm
Gold (Au)
Palladium (Pd)
0.05～0.1μm
0.05～0.1μm
Copper (Cu)
Wiring
Copper (Cu)
Wiring
ENEPIG Process
Direct EPIG Process on Copper
Application: CSP (Chip Size Package) for mobile terminals
Expected Effect: Promising market, as it uses more semiconductors than PCs
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
12
Cautionary Statements about Projections
The materials used in the preparation of forecasts of results and predictions are based
upon predicted trends in the industries related to the Company's operations. Accordingly,
economic conditions both in Japan and overseas, fluctuations in exchange rates and
other factors may influence forecasts of results. The predictions and forecasts made are
based upon the information available as of September 2014.
There are a number of factors that cannot be predicted with certainty that may have an
influence on these forecasts, including market conditions, competitors’ actions, the
performance of newly introduced products and services, and the global IT market and
related markets. Accordingly, actual results may vary significantly from the forecasts
presented in this document.
The copyright of this document belongs to Japan Pure Chemical Co., Ltd. Reproduction,
copying, or redistribution of this document is strictly prohibited without the written
permission of the Company.
For Further Information
TEL. +81-3-3550-1048
FAX. +81-3-3550-1006
Corporate Planning Division
[email protected]
http://www.netjpc.com
Copyright © 2014 JAPAN PURE CHEMICAL CO., LTD. All rights reserved. May not be copied or reprinted without prior written approval.
13

Download Report