Innotech Corporation · TSE:9880
Innotech — H1 FY2022 Earnings Presentation
32 slides from Innotech's earnings presentation, Nov 11, 2022
Slide 1: FY2022 1st Half Financial Results
INNOTECH CORPORATION FY2022 1st Half Financial Results November 11, 2022 1
Slide 2: Agenda
Agenda 1 FY2022 1H Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 2
Slide 3: FY2022 1H Highlights
FY2022 1H Highlights Consolidated Net Sales increased by 4.8％ YoY; Consolidated Operating Profit decreased by 24.9％ YoY INNOTECH increased its revenue and profit mainly by its tester business. IT ACCESS IT ACCESSremained stays solidly solidlyprofitable. profitable. REGULUSand REGULUS andSTAr STAr tu
Slide 4: FY2022 1H Actual
FY2022 1H Actual Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access Technology Technologies YoY FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 9,630 9,8
Slide 5: FY2022 1H Test Solution Business
F Y 2 0 2 2 1 H Te s t S o l u t i o n B u s i n e s s 9,000 3,500 3,120 2,981 7,200 2,800 5,400 2,100 売上 7,689 7,771 売上総利益 3,600 1,400 1,800 700 0 0 FY2021 22年/ FY2022 23年/ 1H 2Q 3月期 1H 2Q 3月期 5
Slide 6: Test Solution Business
Te s t S o l u t i o n B u s i n e s s Testers Strong results continue in the 1st half as burn-in boards, which is new business, sell well in addition to stable sales of testers for NAND flash memory products. STAr Revenue was expected to increase but ended up around the same level as last year on t
Slide 7: FY2022 1H Semiconductor Design-related Business
FY2022 1H Semiconductor Design-related Business 1,471 7,000 1,500 1,333 5,600 1,200 4,200 900 売上 6,749 売上総利益 6,020 2,800 600 1,400 300 0 0 FY2021 22年/ FY2022 23年/ 1H 2Q 3月期 1H 2Q 3月期 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue increased by existing business, such as larger-amount renewals of subscription contracts and increase of customer demands for design and verification projects. Sanei Maintained the same level of results as last year; profit slightly decreased however
Slide 9: FY2022 1H System Service Business
FY2022 1H System Service Business 6,000 1,800 1,624 1,553 1,500 4,800 1,200 3,600 900 売上 5,153 5,243 2,400 売上総利益 600 1,200 300 0 0 FY2021 22年/ FY2022 23年/ 1H2Q 3月期 1H 2Q 3月期 9
Slide 10: System Service Business
Sy s t e m S e r v i c e B u s i n e s s Embedded System Revenue increased by acquiring new business, such as winning orders for public infrastructure products. IT Access Increased revenue and profit as the cloud settlement service remained stably profitable by the subscription revenue. GAIO TECHNOL
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income FY2021 1H FY2022 1H Research & Development 721 973 Depreciation 519 601 Amortization of Goodwill 114 118 Major Items of Non-operating Expenses and Income Real Estate Rent Income 231 225 Related Expenses for Real Estate Rent 163 164 Foreign Exchang
Slide 12: Cash Flow
Cash Flow FY2021 1H FY2022 1H Profit Before Income Taxes 1,960 1,528 Depreciation and Amortization of Goodwill 633 720 Working Capital and Others -959 -2,949 Cash Flow from Operating Activities 1,634 -701 Purchase of Fixed Assets -709 -957 Purchase of Long-term prepaid expenses -74 -61 Purchase of I
Slide 13: Investment in the operating company of PieceX
Investment in the operating company of “PieceX”, the marketplace to exchange software source code GAIO TECHNOLOGY has invested in ONE ACT Inc., the operating company of “PieceX” “PieceX” (https://www.piecex.com/) is a web-based global platform to exchange software source code, utilized by more t
Slide 14: Agenda
Agenda 1 FY2022 1H Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 14
Slide 15: FY2022 Highlights
FY2022 Highlights Downward revision for the Operating Profit due to slow semiconductor business; Upward revision for the Ordinary Profit and the Net Profit Tester business will decline in the 2nd half due to weakening market Semiconductor Design-related Business and System Service Business will gene
Slide 16: FY2022 Estimate
FY2022 Estimate [mil. yen] Sanei IT GAIO STAr Consoli FY2021 INNOTECH REGULUS MoDeCH YoY Hytechs ACCESS TECHNOLOGY Technologies -dated Actual Net Sales 16,580 3,800 5,000 3,600 10,200 700 350 40,000 37,238 7.4% Gross 4,630 990 1,160 1,450 4,250 190 200 12,800 11,219 Profit 14.1% (27.9%) (26.1%) (23.
Slide 17: FY2022 Outlook: Test Solution Business
FY2022 Outlook: Te s t S o l u t i o n B u s i n e s s 16,000 6,300 6,500 5,377 12,800 5,200 9,600 3,900 売上 15,200 14,447 売上総利益 6,400 2,600 3,200 1,300 0 0 FY2021 22年/3月期 23年/3月期 FY2022 (Estimate) 17
Slide 18: Test Solution Business
Te s t S o l u t i o n B u s i n e s s Testers Revenue will decrease in the 2nd half as the tester business for the NAND flash memory products drops due to the declining market; business for burn-in industrial board is estimated to remain strong for the 2nd half as well and it will help maintain the
Slide 19: FY2022 Outlook: Semiconductor Design-related Business
FY2022 Outlook: Semiconductor Design-related Business 2,900 15,000 3,000 2,647 12,000 2,400 9,000 1,800 売上 13,100 6,000 12,429 1,200 売上総利益 3,000 600 0 0 FY2021 22年/3月期 FY2022 (Estimate) 23年/3月期 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue will increase mainly by existing business, such as larger- amount renewals of subscription contracts and the positive impact from the depreciating yen. Sanei Profit will continue to increase from the first half with high domestic operation rate. MoDe
Slide 21: FY2022 Outlook: System Service Business
FY2022 Outlook: System Service Business 3,600 12,000 3,600 3,184 10,000 3,000 8,000 2,400 売上 6,000 11,700 1,800 売上総利益 10,360 4,000 1,200 2,000 600 0 0 FY2021 22年/3月期 FY2022 (Estimate) 23年/3月期 21
Slide 22: System Service Business
Sy s t e m S e r v i c e B u s i n e s s Embedded System Expected to achieve growth in revenue through flexible procurement efforts and cost adjustment while supply shortage of parts and components will continue. IT Access Increase in revenue and profit is estimated. Subscription revenues from cloud
Slide 23: EBITDA Trends
EBITDA Trends 5,000 EBITDA 4,000 営業利益 4,298 4,269 3,731 3,000 3,102 3,233 2,500 2,585 2,000 1,955 1,954 1,670 1,000 0 19年3月期 20年3月期 21年3月期 22年3月期 23年3月期（予） 23
Slide 24: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2021 30 yen 35 yen 65 yen 38.5% FY2022 (Outlook) 35 yen 35 yen 70 yen 52.5% We intend our consolidated divided payout ratio not to be less than 30%. Our goal is to maintain around 50% level as long as there is no sudden change i
Slide 25: Agenda
Agenda 1 FY2022 1H Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 25
Slide 26: Mid-Term Management Plan Overview
Mid-Term Management Plan Overview (Announced in February 2019) (Background) • Changes in the industry environment • Active overseas expansion and investment • Improvement of capital efficiency in the INNOTECH Group (Five Strategies) • Expansion of test solution business • Increase sales of internall
Slide 27: ROE/ROIC Trends
ROE/ROIC Trends （％） （％） ROE ROIC 12.0 8.0 10.0 10.4 7.0 6.7 6.0 5.6 8.0 7.8 6.6 5.0 7% range 4.7 5% range 6.0 5.8 4.0 4.5 4.0 3.0 2.0 2.0 1.0 0.0 0.0 2018 2019 2020 2021 2022 年度 2022 2018 2019 2020 2021 2022 2022 年度 Estimate (予想) Estimate (予想) 27
Slide 28: Trends: Ratio of Internally-developed Products
Trends: Ratio of Internally-developed Products （％） 40,000 69.6 71.2 73.3 72.1 68.9 70.0 35,000 9,955 60.0 30,000 9,364 50.0 9,059 9,680 25,000 6,940 54.6 54.6 47.4 49.8 40.0 20,000 6,975 1,692 6,624 7,179 45.9 5,510 15,000 1,486 30.0 1,455 1,411 3,459 10,000 826 20.0 18,651 12,666 12,891 14,712 5,00
Slide 29: Changing the Sector Classification at the Tokyo Stock Exchange (TSE)
Changing the Sector Classification at the Tokyo Stock Exchange (TSE) New Sector Old Sector (From October 3, 2022) Main Trade Manufacturing classification Sub Wholesale Trade Electric Appliances classification INNOTECH was founded in 1987 as a technology trading company but since 2000, it has been
Slide 30: INNOTECH Efforts on ESG and SDGs; Progress on Materiality
INNOTECH Efforts on ESG and SDGs; Progress on Materiality Materiality On-going and Future Measures Stock Compensation for Employees Consumption Increase of Childcare Leave by Male Employees Human Capital Management Increase of Recruitment ratio of Female Employees Planned Survey on Employee
Slide 31: ESG and SDGs-related Efforts; Scholarship by STAr
ESG and SDGs-related Efforts; Scholarship by STAr STAr Technologies starts a scholarship program for elementary school pupils in Miaoli County in Taiwan, named, “A STAr is Born” STAr will contribute more than NT$ 4 million yearly to 119 elementary schools and their branches in Miaoli; STAr will
Slide 32: Note for Forward Looking Statements
Note for Forward Looking Statements The information provided in this presentation includes forward looking statements based on current expectations, forecasts or beliefs. Such forward looking statements include a number of preliminary assumptions about future events that are subject to factors and u