Slide 1: FY2020 Financial Results
INNOTECH CORPORATION FY2020 Financial Results May 12, 2021 1
Slide 2: Agenda
Agenda 1 FY2020 Actual 2 FY2021 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: FY2020 Highlights
FY2020 Highlights Consolidated Operating Profit increased by 17.0% YoY. INNOTECH business remained stable mainly based on the tester business; achieved substantial increase in revenue and profit. IT ACCESS revenue and profit increased mainly due to strong settlement system business for vending machi
Slide 4: FY2020 Actual
FY2020 Actual Sanei IT GAIO STAr INNOTECH REGULUS Consolidated Hytechs Access Technology Technologies YoY FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 Year Net Sales 12,863 14,780 3,548 3,550 4,518 4,669 3,665 3,421 5,793 5,563 962 648 31,161 32,5
Slide 5: FY2020 Design and Development Solution Business
FY2020 Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 25,000 5,715 6,000 5,684 5,000 20,000 3,543 3,529 943 617 4,000 Sanei Hytechs 三栄ハイテックス 15,000 4,518 4,667 REGULUS レグラス IT Access アイティアクセス 3,000 Embedded System 1,733 1,547 組込システム 10,000 ガイオテクノロジー GAIO TECHNOLO
Slide 6: Design and Development Solution Business
Design and Development Solution Business EDA Increased revenue by winning a large-amount contract mainly for the H/W emulator business. GAIO Profit declined due to R&D investment but its revenue and profit sizes still contribute to the consolidated results. Embedded System Revenue decreased due to t
Slide 7: FY2020 Product Solution Business
FY2020 Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 5,000 12,500 3,880 4,270 4,000 990 10,000 Others 1,265 3,000 その他 STAr 7,500 5,518 STAｒ Technologies Technologies 5,749 2,000 Tester テスター 5,000 売上総利益 Gross Profit 2,500 5,123 1,000 2,962 0 0 20/3月期 FY2019 21/3月期 FY2020
Slide 8: Product Solution Business
Product Solution Business Testers Substantial revenue increase as the demands for memory products recovered and customers’ capital investment was solid. STAr Results temporarily declined as the supply chain was affected due to the Covid-19 pandemic in the first half; however businesses in Taiwan and
Slide 9: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income [mil. yen] FY2019 FY2020 Research & Development 1,236 1,379 Depreciation 985 993 Amortization of Goodwill 207 250 Major Items of Non-operating Expenses and Income Real Estate Rent Income 464 475 Related Expenses for Real Estate Rent 302 334 Foreig
Slide 10: Cash Flow
Cash Flow (*) Rounded down to the nearest 1 million yen. [mil. yen] FY2019 FY2020 Profit Before Income Taxes 1,895 2,458 Depreciation and Amortization of Goodwill 1,193 1,244 Working Capital and Others 27 -2,865 Cash Flows from Operating Activities 3,116 836 Purchase of Investment Securities -470 -8
Slide 11: Agenda
Agenda 1 FY2020 Actual 2 FY2021 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 11
Slide 12: FY2021 Highlights
FY2021 Highlights Consolidated Operating Profit will increase by 17.7% YoY R&D for tool business of GAIO TECHNOLGY is completed for the time being; revenue and profit will increase as the engineering service business recovers. STAr will increase its revenue and profit as businesses in Taiwan and Chi
Slide 13: FY2021 Estimate
FY2021 Estimate [mil. yen] Sanei GAIO FY2020 INNOTECH IT Access STAr REGULUS MoDeCH Consolidated YoY Hytechs Technology Actual Net Sales 15,700 3,500 4,150 3,650 6,300 800 350 34,000 32,536 4.5% Gross 4,320 850 1,100 1,450 2,780 180 150 10,700 9,954 7.5% Profit (27.5%) (24.3%) (26.5%) (39.7%) (44.1%
Slide 14: Regroup the Business Segments
Regroup the Business Segments; ～Optimize the Business Portfolio and Create Synergy～ Prior Business Segments New Business Segments Design and Development Solution Business Test Solution Business EDA, Embedded System, Testers Others STAr Sanei Hytechs Semiconductor Design-related IT Access Business GA
Slide 15: FY2021 Outlook: Test Solution Business
FY2021 Outlook: Test Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 14,000 4,900 5,000 12,000 4,143 10,000 4,000 8,000 3,000 Sales 売上 6,000 12,100 10,641 2,000 Gross Profit 売上総利益 4,000 1,000 2,000 0 0 21/3月期 FY2020 22/3月期 FY2021 (Estimate) （※） Rounded down to the nearest 1 million yen
Slide 16: Test Solution Business
Te s t S o l u t i o n B u s i n e s s Testers Expect major revenue increase as testers for NAND flash memory products sell well. STAr ・Business opportunities are increasing as the economies of Taiwan and China are recovering. ・Strong business of Accel-RF will contribute to improve overall profitabi
Slide 17: FY2021 Outlook: Semiconductor Design-related Business
FY2021 Outlook: Semiconductor Design-related Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 3,000 14,000 2,569 2,350 12,000 10,000 2,000 8,000 Sales 売上 Gross Profit 6,000 11,416 11,450 売上総利益 1,000 4,000 2,000 0 0 FY2020 21/3月期 22/3月期 FY2021 (Estimate) （※） Rounded down to the nearest 1 million y
Slide 18: Semiconductor Design-related Business
Semiconductor Design-related Business ＥＤＡ Multi-year contracts are successfully renewed; business remains stable with existing customers. Sanei Business in Vietnam is declining compared to 2020 but business in Japan is recovering and expect the same level of sales as the year 2020. MoDeCH Large-amou
Slide 19: FY2021 Outlook: System and Service Business
FY2021 Outlook: System and Service Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 14,000 4,000 3,450 12,000 3,242 3,000 10,000 8,000 2,000 Sales 売上 6,000 10,479 10,450 Gross Profit 売上総利益 4,000 1,000 2,000 0 0 21/3月期 FY2020 22/3月期 FY2021 (Estimate) （※） Rounded down to the nearest 1 million yen 1
Slide 20: System and Service Business
Sy s t e m a n d S e r v i c e B u s i n e s s Embedded System Customer demands are dull but demands for infrastructure look promising; expect to achieve the same level of sales as the year 2020. IT Access Demands for the cloud settlement systems are slow due to the COVID-19 pandemic; still, likely
Slide 21: EBITDA Trends
EBITDA Trends [mil. yen] 4,000 EBITDA 3,500 Operating 営業利益 3,731 3,669 3,000 Profit 3,233 3,102 2,500 2,300 2,000 2,046 1,955 1,954 1,500 1,670 1,000 1,244 500 0 FY2017 18年3月期 19年3月期 FY2018 20年3月期 FY2019 21年3月期 FY2020 22年3月期（予） FY2021 (Estimate) （※） EBITDA= Earnings before interest, tax, depreciatio
Slide 22: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2020 20 yen 30 yen 50 yen 41.4% FY2021 (Outlook) 30 yen 30 yen 60 yen 50.9% We intend our consolidated divided payout ratio not to be less than 30%. Our goal is to maintain around 50% level as long as our business remains stable
Slide 23: Agenda
Agenda 1 FY2020 Actual 2 FY2021 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 23
Slide 24: Mid-Term Management Plan
Mid-Term Management Plan (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 internally-develop
Slide 25: Sales Trend of Test Solution Business
Sales Trend of Test Solution Business (mil. yen) 14,000 12,000 10,000 6,200 8,000 5,073 5,518 6,000 5,749 4,537 4,000 5,900 5,210 5,123 2,000 3,340 2,962 0 18年3月期 FY2017 19年3月期 FY2018 20年3月期 FY2019 21年3月期 FY2020 22年3月期(予想) FY2021 (Estimate) 25 INNOTECH イノテック STAr
Slide 26: Trends: Ratio of Internally-developed Products
Trends: Ratio of Internally-developed Products Sales: (mil. yen) （％） 40,000 69.6 71.2 72.4 68.9 70.0 35,000 57.4 60.0 30,000 9,376 9,364 50.0 9,059 9,680 25,000 12,240 20,000 49.8 7,428 50.6 40.0 47.4 45.9 6,975 6,624 7,179 36.8 1,486 1,630 30.0 15,000 5,920 1,455 1,411 10,000 1,276 20.0 14,712 15,5
Slide 27: Sales Partner Agreement Executed between INNOTECH and TRIPLEIZE
Sales Partner Agreement Executed between INNOTECH and TRIPLEIZE Image recognition platform “AIZE” developed by Tripleize Co., Ltd. has a high recognition rate and expected to be utilized for various purposes. New Edge AI service proposals become available by combining Tripleize facial recognitio
Slide 28: Capital Management Policy: Our current numerical goals
Capital Management Policy: Our current numerical goals (Announced in February 2018) ROE • Mid-term and long-term goal is 8-10%. ROIC (Return on Invested Capital) • Aiming at 8-10% in the future; expand the ROIC - WACC spread. D/E Ratio (Debt Equity Ratio) • In the event of fundraising by interest-be
Slide 29: ROE/ROIC Trends
ROE/ROIC Trends （％） （％） ROE ROIC 9.0 6.0 8.0 7.0 5.0 6.0 4.0 5.0 3.0 4.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2016 2017 2018 2019 2020 YEAR 2016 2017 2018 2019 2020 YEAR ※Invested Capital＝Shareholders’ Equity＋Interest-bearing Debt 29
Slide 30: Equity Capital, Equity Ratio, Interest-bearing Debt, and D/E Ratio Trends
Equity Capital, Equity Ratio, Interest-bearing Debt (IBD), and D/E Ratio Trends (mil. yen) （％） 30,000 90.0 80.0 25,000 70.0 20,000 60.0 50.0 15,000 40.0 10,000 30.0 20.0 5,000 10.0 0 0.0 17年3月期 FY2016 18年3月期 FY2017 19年3月期 FY2018 20年3月期 FY2019 21年3月期 FY2020 Equity Capital 自己資本額 Amount IBD Amount 有利子負
Slide 31: Shareholder Returns
Shareholder Returns (Dividends, Treasury Share Repurchases, Dividend Payout Ratio and Total Return Ratio) （百万円） (mil. Yen) （％） 5,000 300.0 4,000 200.0 3,000 2,000 100.0 1,000 0 0.0 17年3月期 FY2016 18年3月期 FY2017 19年3月期 FY2018 20年3月期 FY2019 21年3月期 FY2020 Total Repurchase Amount of Dividend 年間配当額 Full-ye
Slide 32: Analysis of the Most Recent Three-year Consolidated Cash Flow
Analysis of the Most Recent Three-year Consolidated Cash Flow (Finance/Use) (mil. Yen) FY2018～2020 14,000 Cash in Hand Others 12,000 Cash flow Capital from Operating Investment 10,000 Activities Investment 8,000 Dividends Paid 6,000 Net Increase of 4,000 Interest-bearing Debt Treasury Share Repurcha
Slide 33: Renewal of Management Team
Re n e w a l o f M a n a g e m e n t Te a m Changes in Management New Title Name Previous Title From April 1, 2021 Toshihiko Ono Chairman President and Representative Director Nobuyuki Otsuka President and Representative Director Representative Senior Managing Director Yoshinori Tanahashi Representa
Slide 34: Efforts on ESG/SDGs
Efforts on ESG/SDGs INNOTECH Organization to INNOTECH Group Corporate Promote ESG-SDGs Activities ・Contribute to the future society Board of Directors ・Contribute to technical development ・Solve problems and dedicate ourselves to Management Meeting satisfy our customers Management President Philosop
Slide 35: COVID-19: Our Measures
COVID-19: Our Measures In order to minimize the spread of COVID-19, INNOTECH has been encouraging its employees to avoid peak rush hours while commuting and to take a break time separately from others since March 2020, and to work from home since April 2020. Upon declaration of a state of emergency
Slide 36: 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