Slide 1: FY2023 1st Half Financial Results
INNOTECH CORPORATION FY2023 1st Half Financial Results November 10, 2023 1
Slide 2: Agenda
Agenda 1 FY2023 1H Actual 2 FY2023 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: FY2023 1H Actual
FY2023 1H Actual Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access TECHNOLOGY Technologies YoY FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 9,846 6,8
Slide 4: FY2023 1H Highlights
FY2023 1H Highlights Consolidated Net Sales declined by 1.5％ YoY; Consolidated Operating Profit declined by 32.3％ YoY INNOTECH revenue and profit declined as its core Tester business was weak while the embedded system business went well. Sanei Hytechs and IT Access significantly increased their prof
Slide 5: FY2023 1H Test Solution Business
F Y 2 0 2 3 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 7,200 2,647 2,800 5,400 2,100 売上 7,771 売上総利益 3,600 6,916 1,400 1,800 700 0 0 FY2022 1H 23年/3月期 2Q FY2023 1H 24年/3月期 2Q 5
Slide 6: Test Solution Business
Test Solution Business Testers Substantial decrease in revenue due to slow tester business for NAND flash memory products from the 2nd half of FY2022, while burn-in boards, which is new business, continued to sell well. STAr Increase in revenue with a substantial growth of sales of its reliability t
Slide 7: FY2023 1H Semiconductor Design-related Business
FY2023 1H Semiconductor Design-related Business 〔売上：百万円〕 9,000 2,000 7,200 1,471 1,499 1,600 5,400 1,200 売上 売上総利益 3,600 800 6,749 6,364 1,800 400 0 0 FY2022 23年/3月期1H2Q FY2023 1H 24年/3月期 2Q （※） 百万円未満切捨て 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue did not reach the same level as the same period last year despite larger-amount contract renewals and newly added businesses. Sanei Increase in revenue and profit as the operation rate remained high for domestic businesses and the annotation business
Slide 9: FY2023 1H System Service Business
FY2023 1H System Service Business 〔売上：百万円〕 8,000 1,852 2,000 1,624 6,400 1,600 4,800 1,200 売上 売上総利益 3,200 6,189 800 5,243 1,600 400 0 0 FY2022 1H2Q 23年/3月期 FY2023 1H 24年/3月期 2Q （※） 百万円未満切捨て 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 increase by acquiring new orders for internally-developed products for infrastructure and industrial applications, such as custom boards for transportation. IT Access Revenue and profit increase by recovering demands of settlement term
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income 〔mil. yen〕 FY2022 1H FY2023 1H Research & Development 973 1,107 Depreciation 601 634 Amortization of Goodwill 118 118 Major Items of Non-operating Expenses and Income Real Estate Rent Income 225 234 Related Expenses for Real Estate Rent 164 188 Fo
Slide 12: Cash Flow
Cash Flow 〔mil.〔百万円〕 yen〕 FY2022 1H FY2023 1H Profit Before Income Taxes 1,528 1,208 Depreciation and Amortization of Goodwill 720 752 Working Capital and Others -2,949 -1,316 Cash Flow from Operating Activities -701 644 Purchase of Fixed Assets -957 -565 Purchase of Long-term Prepaid Expenses -61 -
Slide 13: Agenda
Agenda 1 FY2023 1H Actual 2 FY2023 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 13
Slide 14: FY2023 Estimate
FY2023 Estimate [mil. yen] Sanei IT GAIO STAr Consoli FY2022 INNOTECH REGULUS MoDeCH YoY Hytechs Access TECHNOLOGY Technologies -dated Actual Net Sales 14,740 3,900 5,300 4,000 13,300 650 350 42,000 38,629 8.7% 4,360 980 1,450 1,480 4,680 170 170 13,300 12,242 Gross 8.6% Profit (29.6%) (25.1%) (27.4
Slide 15: Revision of Earnings Forecast
Revision of Earnings Forecast Profit O p e r a t i n g O r d i n a r y Attributable to Earnings per Net Sales P r o f i t P r o f i t Owners of S h a r e Parent Previous Forecast（A） 43,000 3,000 3,000 2,000 152.33 Current Forecast（B） 42,000 2,500 2,900 1,950 145.20 Difference（B－A） -1,000 -500 -100 -
Slide 16: FY2023 Highlights
FY2023 Highlights Despite the downward revision of the initial forecast, revenue and profit are expected to increase YoY. Slow tester business for NAND flash memory products due to weak market conditions will continue for the 2nd half. STAr and GAIO show some signs of recovery; Strong business of IT
Slide 17: FY2023 Outlook: Test Solution Business
FY2023 Outlook: Test Solution Business 〔売上：百万円〕 〔売上総利益：百万円〕 20,000 7,000 6,400 5,679 16,000 5,600 12,000 4,200 売上 売上総利益 8,000 16,150 2,800 13,938 4,000 1,400 0 0 FY2022 23年/3月期 24年/3月期 FY2023 (Estimate) （※） 百万円未満切捨て 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 Market conditions continue to decline and the business outlook is uncertain for testers for NAND flash memory products; revenue is expected to drop substantially. STAr Reliability test equipment will sell well in the 2nd half as well; revenue will incre
Slide 19: FY2023 Outlook: Semiconductor Design-related Business
FY2023 Outlook: Semiconductor Design-related Business 〔売上：百万円〕 〔売上総利益：百万円〕 2,922 15,000 2,800 3,000 12,000 2,400 9,000 1,800 売上 13,287 13,050 売上総利益 6,000 1,200 3,000 600 0 0 FY2022 23年/3月期 FY2023 (Estimate) 24年/3月期 （※） 百万円未満切捨て 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue will increase with contract renewals and improved retention of maintenance services for existing businesses as well as development of new businesses leveraging synergy effects with MoDECH. Sanei Growth will rapidly slow down compared to strong 1st ha
Slide 21: FY2023 Outlook: System Service Business
FY2023 Outlook: System Service Business 〔売上：百万円〕 〔売上総利益：百万円〕 4,100 12,500 4,100 3,640 10,000 3,280 7,500 2,460 12,800 売上 11,404 売上総利益 5,000 1,640 2,500 820 0 FY2022 FY2023 FY2023 (Estimate) 0 23年/3月期 24年/3月期 （※） 百万円未満切捨て 21
Slide 22: System Service Business
System Service Business Embedded Systems Estimated to maintain revenue increase by adding up businesses for infrastructure and industrial machinery applications from the 1st half. IT Access Revenue and profit will increase with continued strong sales of settlement terminals for vending machines and
Slide 23: Business Results Trends
Business Results Trends Operating Profit/EBITDA Sales 〔mil. yen〕 〔mil. yen〕 5,000 売上高 Sales 45,000 4,298 4,460 EBITDA 40,000 3,963 4,000 営業利益 3,731 35,000 3,102 30,000 3,000 25,000 2,585 20,000 2,319 2,500 2,000 1,954 15,000 1,670 1,000 10,000 5,000 0 0 FY2019 FY2020 FY2021 FY2022 FY2023 20年3月期 21年3
Slide 24: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2022 35 35 70 55.1% FY2023 (Outlook) 35 35 70 48.2% 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 in our financial results.
Slide 25: Agenda
Agenda 1 FY2023 1H Actual 2 FY2023 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 Around 8% 8％程度 6.0 8.0 5％程度 Around 5% 7.8 5.0 4.5 5.8 7.3 4.7 5.0 6.0 4.0 4.0 3.0 2.0 2.0 1.0 0.0 0.0 Fiscal Fiscal 2019 2020 2021 2022 2023 Year 2019 2020 2021 2022 2023 年度 Year (Estimate) (予想) (Estimate) (予想) ※Invested Capital＝Shareholder
Slide 28: Growth of STAr's Business for Foundries
Growth of STAr’s Business for Foundries Dramatic Sales Increase of Reliability Test Equipment and Measurement Tools Products ・Parametric and Reliability Test Equipment ・Reliability and Burn-in Testers for RF and Power ICs Customers ・Foundries (Taiwan, Korea, China, Singapore, and Japan) ・Aviation
Slide 29: Reliability Test and RF Device Test Equipment
Reliability Test and RF Device Test Equipment Leading the world by reliability testing for cutting-edge (<3nm) semiconductors and compound semicondutors (GaN/SiC) Providing reliability test equipment for process control monitoring during manufacturing of the most cutting-edge semiconductor devic
Slide 30: Probe Cards for Foundries' Research and Development
Probe Cards for Foundries’ Research and Development Leading the world by probe cards for the WAT (Wafer Acceptance Test) and reliability test of cutting-edge (<3nm) semiconductors. Provide industry’s best probe cards and test services based on a number of patented technologies and many years of
Slide 31: Efforts on Governance
Efforts on Governance: ～Becoming a Company with the Audit & Supervisory Committee～ Company with the Audit & Company with the Audit & Supervisory Supervisory Board Committee (From June 23, 2023) Directors Directors 6 2 (Executive Directors) Board of Directors Outside Directors Outside 3 (Audit & Supe
Slide 32: Cost of Capital and Share Price-Conscious Management
Cost of Capital and Share Price-Conscious Management Basic Principles for the New Mid-term Management Plan Setting up numerical target to stably maintain the ROE which is greater than the cost of shareholders’ equity and the ROIC which is higher than the WACC. Speedy achievement of the Price Boo
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