Socionext Inc. · TSE:6526
Socionext — Q1 FY2024/3 Earnings Presentation
22 slides from Socionext's earnings presentation, Jul 28, 2023
Slide 1: 1Q FY2024/3 Consolidated Financial Results
1Q FY2024/3 Consolidated Financial Results July 28, 2023 Socionext Inc.
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for the purpose of presenting relevant information regarding Socionext Inc. (“Socionext”). This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitat
Slide 3: Cautionary Note Regarding Design Win Amount and Design Win Balance
Cautionary Note Regarding “Design Win Amount” and “Design Win Balance” Cautionary Note Regarding “Design Win Amount” and “Design Win Balance” The calculation of “Design Win Amount” and “Design Win Balance” involves a considerable degree of future estimation and subjective judgment, including assumpt
Slide 4: Consolidated Financial Results for the 3 Months Ended June 30, 2023
Consolidated Financial Results for the 3 Months Ended June 30, 2023 ─ Actual Consolidated Financial Results1Q FY24/3 Results ─ Forecast Consolidated Earnings ─ Mid-term Financial Targets Socionext is in 40 days of quiet period (July 14 to August 22) due to the international offering announced on Jul
Slide 5: 1Q FY24/3 Consolidated Statements of Income
1Q FY24/3 Consolidated Statements of Income (Yen in billions) FY23/3 FY24/3 1Q 2Q 3Q 4Q 1Q YoY YoY % Net Sales 39.9 42.8 56.1 53.9 61.4 21.5 53.9% Product Revenue 31.0 35.3 43.9 46.5 52.9 21.9 70.5% NRE Revenue 8.7 7.4 11.5 7.3 8.4 -0.4 -4.0% Others 0.2 0.2 0.6 0.2 0.1 0.0 -14.1% Cost of Sales 19.9
Slide 6: Quarterly Net Sales and Operating Income and Changes
Quarterly Net Sales and Operating Income and Changes Net Sales1 Operating Income1 Product Revenue （Yen in billions） Operating Income （Yen in billions） NRE Revenue 15.0 Margin • Increase in product revenue 61.4 • Change of product mix Others • JPY depreciation etc. 56.1 16.5% 53.9 8.4 11.5 7.3 14.0%
Slide 7: Details of 1Q FY24/3 Financial Results - YoY Changes
Details of 1Q FY24/3 Financial Results - YoY Changes Net Sales & Operating Income Operating Income YoY Analysis Others （Yen in billions） Operating Income （Yen in billions） 6.6 ｰ0.8 （Yen in billions） NRE Revenue Margin -2.1 Product Revenue 16.5% 0.8 14.0% 61.4 8.4 39.9 10.1 8.7 52.9 10.1 5.6 31.0 5.6
Slide 8: Details of 1Q FY24/3 Financial Results - QoQ Changes
Details of 1Q FY24/3 Financial Results - QoQ Changes Net Sales & Operating Income Operating Income QoQ Analysis Others （Yen in billions） Operating Income （Yen in billions） （Yen in billions） NRE Revenue Margin Product Revenue 16.5% 61.4 0.5 2.1 53.9 8.4 0.9 7.3 9.2% 1.6 10.1 52.9 10.1 46.5 5.0 5.0 2
Slide 9: Consolidated Balance Sheet (As of June 30, 2023)
Consolidated Balance Sheet（As of June 30, 2023） Cash on Hand and in Banks (Yen in billions) (Yen in billions) As of As of Change Mar.31,2023 Jun.30,2023 Total Assets 193.9 184.0 -9.9 53.0 46.3 45.1 Total Current Assets 156.1 147.7 -8.4 37.2 38.1 33.9 Cash on-hand and in banks 45.1 33.9 -11.2 Account
Slide 10: Capex-Depreciation & Amortization / Cash Flow
Capex-Depreciation & Amortization / Cash Flow Capex1-Depreciation & Amortization2 Cash Flow2 (Yen in billions) (Yen in billions) 8 Factors in operating cash flow change in FY24/3 1Q Decreased due to bonus and tax payments 40 6 20 4 0 2 0 -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY
Slide 11: Breakdown by Application Market
Breakdown by Application Market Net Sales NRE Revenue Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial & Others Smart Devices Industrial & Others 100% 100% 14% 17% 23% 21% 24% 32% 80% 41% 41% 80% 39% 39% 44% 50% 50% 57% 30% 17% 28% 33% 24% 60% 60% 22%
Slide 12: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Others US China Japan Others 100% 100% 10% 7% 8% 10% 7% 8% 12% 12% 11% 12% 11% 19% 18% 20% 80% 80% 26% 31% 37% 36% 13% 44% 51% 52% 60% 59% 60% 66% 63% 21% 23% 71% 56% 55% 25% 20% 40% 40% 33% 46% 24% 18% 17% 45% 44% 20% 20% 16% 14% 3
Slide 13: Breakdown by Process Node
Breakdown by Process Node Net Sales NRE Revenue 5-7nm 10-16nm 20-28nm 40nm & above / Others 5-7nm 10-16nm 20-28nm 40nm & above / Others 100% 100% 10% 11% 14% 17% 23% 23% 21% 25% 29% 12% 10% 80% 42% 80% 45% 43% 18% 10% 55% 12% 64% 19% 22% 30% 60% 22% 60% 33% 30% 28% 46% 11% 28% 29% 40% 16% 40% 37% 34
Slide 14: Consolidated Earnings Forecast
Consolidated Earnings Forecast (Yen in billions) FY2023/3 FY2024/3 Full Year Forecast Full Year Results YoY YoY % as of April 2023 1 Net Sales 192.8 200.0 7.2 3.8% Operating Income 21.7 22.5 0.8 3.6% Margin 11.3% 11.3% 0.0%pt Profit 19.8 17.5 -2.3 -11.5% Margin 10.3% 8.8% -1.5%pt Basic Earnings per
Slide 15: Mid-Term Financial Targets
Mid-Term Financial Targets Mid-Term FY23/3 FY21/3 FY22/3 Target1 Results Net Sales 99.7 117.0 High teen% 192.8 Growth billion yen billion yen CAGR billion yen Low-to-Mid OP Margin 1.6% 7.2% 11.3% teen % 1. The mid-term targets presented herein represent our plans and expectations as of September 202
Slide 16: Appendix: Overview
Appendix: Overview ─ Breakdown of Net Sales (Quarterly) ─ Design Win Illustrative Description ─ Follow-on Transaction Summary
Slide 17: Breakdown by Application Market (Quarterly Ratios)
Breakdown by Application Market (Quarterly Ratios) Net Sales1 NRE Revenue1 Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial & Others Smart Devices Industrial & Others 100% 100% 10% 9% 12% 14% 17% 23% 23% 24% 30% 28% 33% 35% 33% 35% 80% 40% 40% 40% 80%
Slide 18: Breakdown by Geographic Region (Quarterly Ratios)
Breakdown by Geographic Region (Quarterly Ratios) Net Sales1 NRE Revenue1 US China Japan Others US China Japan Others 100% 100% 6% 3% 4% 5% 6% 7% 8% 7% 8% 7% 12% 11% 12% 11% 12% 11% 12% 20% 31% 23% 80% 80% 17% 34% 30% 22% 43% 40% 37% 28% 13% 42% 48% 48% 49% 14% 51% 55% 60% 55% 60% 10% 26% 23% 15% 23
Slide 19: Breakdown by Process Node (Quarterly Ratios)
Breakdown by Process Node (Quarterly Ratios) Net Sales1 NRE Revenue1 5-7nm 10-16nm 20-28nm 40nm & above / Others 5-7nm 10-16nm 20-28nm 40nm & above / Others 100% 100% 8% 11% 10% 11% 15% 23% 23% 7% 20% 21% 27% 7% 27% 31% 10% 37% 35% 80% 40% 41% 80% 13% 46% 44% 24% 14% 11% 12% 30% 24% 21% 22% 11% 21%
Slide 20: Detail of Design Win Amount to Revenue
Detail of “Design Win Amount” to Revenue Illustrative Description of “Design Win Balance” “Design Win Balance1” ・・・ “Design win balance” (LTR; Life Time Revenue) represents our estimates of remaining accumulated “design win amount” that is associated with projects that are active as of a particular
Slide 21: Follow-on Transaction Summary
Follow-on Transaction Summary Offering Structure International Offering (Regulation S / Rule 144A) # of Shares Offered 12,624,800 shares (37.5% of total shares outstanding as of March 31, 2023) Selling Shareholders Development Bank of Japan, Inc., Fujitsu Limited, Panasonic Holdings Corporation Pric
Slide 22: Socionext
Socionext’