Slide 1: FY2015 1st Half Financial Results
FY2015 1st Half Financial Results November 10, 2015 1
Slide 2: Agenda
Agenda 1 FY2015 1H Actual 2 FY2015 Outlook 3 Mid-range Management Plan 2
Slide 3: FY2015 1H Highlights
FY2015 1H Highlights Significant increase in revenue and profit Significant increase of the NAND Tester business compared to the FY2014 1st half Revenue increase in all businesses except for the Devices business STAr became a consolidated subsidiary (FY2014:4Q, FY2015:1Q-2Q) 3
Slide 4: FY2015 1H Actual
FY2015 1H Actual 〔mil. yen〕 Sanei IT GAIO Innotech STAr Regulus Consolidated YoY Hytechs Access TECHNOLOGY FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 Fiscal Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 11,349 9,533 1,431 1,340 1,462
Slide 5: 2015 1H Design and Development Solution Business
2015 1H Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 10,000 2,500 2,415 2,164 1,426 2,000 1,327 188 128 1,441 三栄ハイテックス Sanei Hytechs 1,086 1,500 レグラス Regulus 5,000 818 1,076 IT Access アイティアクセス 1,062 1,117 1,000 Embedded System 組込システム GAIO TECHNOLOGY ガイオテクノロジー E
Slide 6: Design and Development Solution Business
Design and Development Solution Business EDA Business remains solid without large-amount subscription renewals but winning new subscriptions GAIO TECHNOLOGY Strong automotive tool and the engineering services Embedded Systems CPU boards remain strong and box-type products increased sales IT Access L
Slide 7: FY2015 1H Product Solution Business
FY2015 1H Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 10,000 2,000 1,937 1,500 1,490 1,025 デバイス Devices 5,000 2,467 1,000 HDD HDD STAr STAｒ 1,884 Tester テスター 1,325 Gross Profit 売上総利益 1,895 500 2,598 1,298 0 0 FY2014 1H 14年9月期 FY2015 1H 15年9月期 Total 5,077 7,880 (*) Rounded to
Slide 8: Product Solution Business
Product Solution Business Tester NAND business is strong; shipment of Testers for image sensor has started STAr Probe card business was tough but test systems was strong HDD Trend of recovery; business is stable Devices Decrease in revenue due to narrowing down the product portfolio but the results
Slide 9: Business Transfer from TriTec (Regulus)
Business Transfer from TriTec (Regulus) Strengthen development team of FPGA Design Leverage image processing IPs, provide a wide range of services Business transfer Date: July 1, 2015 【TriTec, Inc. Overview 】 Established on: February 1996 Sales: 42 mil. Yen (as of January 2015) Capital: 10 mil. yen
Slide 10: Opening the Vietnam Local Office (Sanei)
Opening the Vietnam Local Office ( Sanei) Offshore development center leveraging the cost benefits Company Name: SANEI HYTECHS VIETNAM Co., Ltd Established on : July 2015 Capital: USD500,000 Location: Da Nang, Vietnam Business: -Logic and software verification -Development of FPGA 10
Slide 11: Making Giga Hertz Technology a subsidiary
M a k i n g G i g a H e r t z Te c h n o l o g y, I n c . a s a subsidiary (merger is planned for December) Strengthen the area of verification and analysis tools Secure skilled professionals 【Giga Hertz Technology Inc. Overview】 Established on: January 2005 Sales: 84 mil. Yen (as of March 2015) Cap
Slide 12: Cash Flow
Cash Flow [mil. yen] FY2014 1H FY2015 1H Income Before Income Taxes 627 1,006 Depreciation and Amortization of Goodwill 308 381 Working Capital and Others △ 821 △ 2,929 Cash Flows from Operating Activities 114 △ 1,540 Purchase of Investment Securities △ 14 △ 273 Payments of Deposits Paid for Purchas
Slide 13: Agenda
Agenda 1 FY2015 1H Actual 2 FY2015 Outlook 3 Mid-range Management Plan 13
Slide 14: FY2015 Estimate Highlights
FY2015 Estimate Highlights Revised up estimate reflecting the strong 1st half results Business environment changing rapidly; Sanei and STAr may be affected in the 2nd half Device business will decline due to distribution channel transfers associated with mergers of our venders NAND tester business i
Slide 15: FY2015 Estimate (After Upward Revision)
FY2015 Estimate （After Upward Revision） 〔mil. yen〕 Sanei IT GAIO Consolid Innotech STAｒ Regulus FY2014 YoY Hytechs Access TECHNOLOGY ated N e t S a l e s 19,800 2,800 2,200 2,300 2,600 500 30,000 26,483 13% 3,960 600 550 1,100 1,350 180 7,800 6,348 Gross Profit 23% (20.0%) (21.4%) (25.0%) (47.8%) (5
Slide 16: FY2015 Estimate (As of May 2015)
FY2015 Estimate （As of May 2015） 〔mil. yen〕 Sanei IT GAIO Consolid Innotech STAｒ Regulus FY2014 YoY Hytechs Access TECHNOLOGY ated N e t S a l e s 19,500 2,800 2,000 2,300 3,000 600 30,000 26,483 13% Gross Profit 3,800 680 550 1,050 1,500 200 7,800 6,348 23% (19.5%) (24.3%) (27.5%) (45.7%) (50.0%) (
Slide 17: FY2015 Estimate: Design and Development Solution Business
FY2015 Estimate: Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 20,000 4,720 5,000 4,456 2,800 4,000 15,000 2,815 342 500 (600) 2,145 2,200(2,000) 3,000 Sanei Hytechs 三栄ハイテックス レグラス Regulus 10,000 1,807 2,100 アイティアクセス IT Access 2,265 2,300 2,000 組込システム Embedded Sy
Slide 18: FY2015 Estimate: Product Solution Business
FY2015 Estimate: Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,500 3,080 3,000 2,300 1,892 (2,500) 2,500 10,000 Devices 4,500 2,000 デバイス HDD HDD 3,167 STAr STAｒ 1,500 Tester テスター 5,000 4,100 2,600 Gross Profit 売上総利益 1,000 (3,000) 590 500 3,500 2,031 (3,200) 0 0 FY2014
Slide 19: Trend of EBITDA
Trend of EBITDA [mil. yen] 2,500 1H EBITDA下期 2H EBITDA上期 2,107 Operating Profit 営業利益 2,000 1,820 849 1,577 1,447 431 1,500 1,554 1,268 643 641 1,000 404 1,095 950 761 723 1,389 1,258 500 863 936 804 0 FY2011 12年3月期 FY2012 13年3月期 FY2013 14年3月期 FY2014 15年3月期 FY2015 16年3月期 （※） EBITDA= Income Before Inc
Slide 20: Dividends
Dividends Dividend 1H 2H FY2015 Payout Ratio FY2014 7 yen 7 yen 14 yen 44.5％ FY2015 7 yen 7 yen 14 yen 35.1％ （Estimate） Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. 20
Slide 21: Agenda
Agenda 1 FY2015 1H Actual 2 FY2015 Outlook 3 Mid-range Management Plan 21
Slide 22: Overview: Mid-range Management Plan
Overview: Mid-range Management Plan （Background） New mid-range management plan was devised, taking the environmental changes in the industry, M&A, and execution of structural reform into consideration （Strategy） Focus on 4 growing areas (solution businesses) Active overseas deployment and invest
Slide 23: Four growing areas to focus
Committing to Support the Growth of IoT Market by Our Solutions Growing IoT Market Social Semiconductoｒ Automotive Medical Infrastructure Tests Industrial Robotics Four growing areas to focus Test (probe cards/testers/analysis software) Model-based Verification (tools/services) Image Processin
Slide 24: Joint Development of Test Solutions with STAr
Joint Development of Test Solutions with STAr World’s Smallest Mixed Signal Tester 3458 Cal Meter Supply Power Supply Power Communication Board PDX (PDIO) PDX (PDIO) PDX (PDIO) PDX (PDIO) User Power I/O Power I/O Power End cap QIC QIC LPX-8 * 2 Interface Card 200mm 24 600-700mm
Slide 25: Supporting Model-based Development
Supporting Model-based Development GHT Core Technology Incorporated into GAIO Tool Test & Design & Analysis Verification Generate specification for Testing Final System Requirements Systems MiLScan Analysis Technology Algorithm Control Software Basic Control Software Functionality Integration Test
Slide 26: Contribution to Innotech Group by GHT
Contribution to Innotech Group by GHT Technical cooperation and development/provision of tools Testers Embedded EDA Enhance Systems reliability Expand the area of Reduce design TAT, cost, CAD Business and enhance reliability Provide technology, expand the area of software development New services, a
Slide 27: Image Processing Solutions
Image Processing Solutions Intelligent Camera System “Summit Series” Drone （Image Capture, Common Library Analysis） Group Machine Vision -Intel high-speed CPU （Semiconductor -Vast memory Manufacturing Equipment, Capacity Kailas Tester, Industrial) -Capture Board -Various Sensor I/F -ISP -High-frame
Slide 28: Image Processing Solution: Commercial Deployment Discussion On-going
Image Processing Solution: Commercial Deployment Discussion On-going • Shooting images by drones, analysis, communication, and alarm • Surveillance, Traffic, Agriculture, Fishery, Measuring, and Construction • Solar Power Generation (large-scale surveillance), Harvesting Crops, Pest Controls Solar P
Slide 29: EMBOX Platform for Embedded Market
EMBOX® Platform for Embedded Market Examples of Applications Traffic Signage at Medical Infrastructure stations Vending Cashing Industrial machines Machines Efforts for the IoT CPU Board & EMBOX® Series Market Features ① Purely Japan-made (designed and manufactured • Analog I/O in Japan) • Digital I
Slide 30: Human Traffic Analysis Platform Utilizing Beacon
Human Traffic Analysis Platform Utilizing Beacon Cloud Server Network Server Send only necessary Wi-Fi data to Cloud Ethernet NAS Example: Data analysis utilizing the human traffic analysis engine Beacon Wi-Fi BLE B2W Gateway + B Gateway enables direct upload to the network without going through sma
Slide 31: Example of Innotech Funds Investment
Example of Innotech Funds Investment Collaboration among Innotech x IT Access x Investments : Plant Cultivation Support Solution “EDYN” 2nd International Next Generation Agricultural Expo at Makuhari, Japan Soil Sensor Outdoor Network Server for 31 ”EDYN” Access Point Plant Factories ”Water AP” “QNA
Slide 32: Corporate Governance
Corporate Governance Two independent directors on board since the general shareholders meeting in June 2015 Setting up guidelines which corresponds to the Corporate Governance Code Continuously laying groundwork to further pursue group management 32
Slide 33: 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