Slide 1: FY2014 Financial Results
FY2014 Financial Results May 13, 2015 1
Slide 2: Agenda
Ａｇｅｎｄａ 1 FY2014 Results 2 FY2015 Outlook 3 Mid-range Management Plan 2
Slide 3: FY2014 Highlights
FY2014 Highlights 34% Decrease in Operating Profit 13 % increase in Design Development Solution Business; 29% increase in Operating Profit. 12% increase in Product Solution Business; 90% decrease in Operating Profit Acquisition of STAr and making it as a subsidiary 3
Slide 4: FY2014 Results
FY2014 Results [mil. yen] Gaio Innotech Sanei Hytechs IT ACCESS STAr Regulus Consolidated YoY Technology F i s c a l 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Y e a r Net Sales 18,514 17,570 2,842 2,790 2,149 2,418 2,266 511 596 - 394 398 26,483 23,585 12% G r o s s 3,632
Slide 5: FY2014 Design Development Solution Business
FY2014 Design Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 25,000 5,000 4,456 20,000 3,724 4,000 Sanei Hytechs 三栄ハイテックス 15,000 2,814 3,000 Regulus レグラス 2,771 342 310 2,145 IT ACCESS アイティアクセス Embedded System 組込システム 10,000 2,411 1,807 2,000 Gaio Technology ガイオテクノロジー 1,361 2
Slide 6: Design Development Solution Business
Design Development Solution Business ＥＤＡ Stable with successful renewals of existing contracts for automotive and electronic components Gaio Businesses remain strong for automotive software sales and engineering services Embedded System Revenue increased with growth of board sales for defense and in
Slide 7: FY2014 Product Solution Business
FY2014 Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,000 2,396 2,500 1,892 10,000 2,000 Devices デバイス 3,167 2,590 1,500 HDD HDD STAr STAｒ Tester テスター 5,000 2,913 4,100 1,000 Gross Profit 売上総利益 590 500 3,347 2,031 0 0 FY2013 2014/3月 FY2014 2015/3月 Total 8,850 9,888 7 (*
Slide 8: Product Solution Business
Product Solution Business Tester Lost momentum for the NAND business in the 2nd half; revenue decreased STAr STAr results are based on numbers from October 2014 to December 2014. HDD Revenue increased by recovery of OA business but high-margin entertainment business was weak Devices Revenue increase
Slide 9: Special Factors
Special Factors 〔mil. yen〕 （Itemized Cost of Sales） Loss on Valuation of Software △39 Loss on Valuation of Inventories △156 （Itemized Non-operating Income and Expenses） Foreign Exchange Gains 50 Other Income and Expenses （Insurance Premiums Refunded Cancellation, Repayment with Premium, etc.） 53 （It
Slide 10: Cash Flows
Cash Flows 〔mil. yen〕 FY2013 FY2014 Income Before Income Taxes and Minority Interests 1,015 858 Depreciation and Amortization of Goodwill 431 717 Working Capital and Others △544 △461 Cash Flows from Operating Activities 902 1,114 Purchase of Shares of Subsidiaries △172 △827 Purchase of Investment Se
Slide 11: Establishment of CVC ("Innotech Fund")
Establishment of CVC （”Innotech Fund”） 1. Expansion of existing sales Purpose 2. Starting New businesses Next generation technologies such as IT, Health Care, Internet, Area and Big Data U.S., Europe, South East Asia, South Asia, Israel, Japan, and Region others Investment Maximum USD 20 mil. Amount
Slide 12: Agenda
Agenda 1 FY2014 Results 2 FY2015 Outlook 3 Mid-range Management Plan 12
Slide 13: FY2015 Highlights (Estimate)
FY2015 Highlights (Estimate) Revenue is estimated to increase by 13%, Operating Profit by 11%. Design Development Solution Business will remain stable; Gaio business will continue to be strong, Embedded System business will grow. STAr will contribute to the Product Solution business throughout the y
Slide 14: FY2015 Estimate
FY2015 Estimate [mil. yen] IT Gaio FY2014 Innotech Sanei Hytechs STAr Regulus Consolidated YoY ACCESS Technology Actual Net Sales 19,500 2,800 2,000 2,300 3,000 600 30,000 26,483 13% G r o s s 3,800 680 550 1,050 1,500 200 7,800 6,348 23% P r o f i t (19.5%) (24.3%) (27.5%) (45.7%) (50.0%) (33.3%) (
Slide 15: FY2015 Design Development Solution Business
FY2015 Design Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 25,000 4,630 5,000 4,456 20,000 4,000 Sanei Hytechs 15,000 2,815 2,800 3,000 三栄ハイテックス Regulus レグラス 342 600 2,145 2,000 IT ACCESS アイティアクセス Embedded System 組込システム 10,000 1,807 2,100 2,000 Gaio Technology ガイオテクノロジー 2
Slide 16: FY2015 Product Solution Business
FY2015 Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,170 3,500 3,000 2,500 1,892 2,500 10,000 4,500 2,000 Devices デバイス 3,167 HDD HDD 1,500 STAr STAｒ Tester テスター 5,000 4,100 3,000 Gross Profit 売上総利益 1,000 590 500 3,200 2,031 0 0 FY2014 2015/3月 FY2015 2016/3月 Sales 9,88
Slide 17: Outlook on Dividends
Outlook on Dividends Dividend 1H 2H FY Payout Ratio FY2014 7 yen 7 yen 14 yen 44.5％ FY2015 (Estimate) 7 yen 7 yen 14 yen 44.7％ Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. 17
Slide 18: Agenda
Agenda 1 FY2014 Results 2 FY2015 Outlook 3 Mid-range Management Plan 18
Slide 19: Overview: Mid-range Management Plan (Numerical Targets)
Overview: Mid-range Management Plan （Backgrond） 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 investm
Slide 20: Committing to Support the Growth of IoT Market by Our Solutions
Committing to Support the Growth of IoT Market by Our Solutions Growing IoT Market Social Semiconductor Automotive Medical Infrastructure Tests Industrial Robotics Focus on 4 growing areas Model-based verification (tools/services) Test (probe cards/testers/analysis software) Image Processing (
Slide 21: Model-based Verification Solution
Model-based Verification Solution V-shaped Specifi- Process System cation Test Process Industry （Actual Railway Design IEC 61511 IEC 62278 Machine) (RAMS) Automotive Nuclear ISO 26262 Consoli- IEC 61513 System dates Medical Functional Design Test Industrial IEC 62304 IEC 62061 Safety MC-Verifier Sta
Slide 22: Achievements from Gaio Acquisition and Future Strategies
Achievements from Gaio Acquisition and Future Strategies Joined Innotech Group from January 2014 〔Sales: mil. yen〕 売上 Sales 営業利益 Operating Profit 〔Operating Profit: mil. yen〕 2,500 FY2014 1,000 2,000 Operating Profit 439 mil. yen 800 1,500 600 1,000 400 500 200 0 0 2008 2009 2010 2011 2012 2013 2014
Slide 23: Test Solutions
Test Solutions Innotech TS Department STAr Merge the expertise and experience of Innotech and STAr to expand our business Challenge Measures Vision Expand the • Deployment to Chinese, Japan only geographical area Taiwanese, and Korean markets Increase • Major test houses Making Customers as customer
Slide 24: Expansion of Tester Product Portfolio by Collaborating with STAr
Expansion of Tester Product Portfolio by Collaborating with STAr Mixed Function Probe Card 3D-IC Signal LED Memory Measurement Device Control Image Sensor High Voltage Software Parametric Resistance Reliability Probe Card Device Solution Product portfolio which realizes one-stop solutions for tester
Slide 25: Image Processing Solutions
Image Processing Solutions Automotive Social Infrastructure Medical Surveillance Collision Avoidance Around View Human Funduscopy Endoscopy IoT+Application Software Tracking Road Test Image Processing (Algorithm) Consumer Testing Image Processing （Capture Board） Regulus Wearable Semiconductor Image
Slide 26: Example of Image Processing Solution: Summit Series Products
Example of Image Processing Solution: Concept of “Summit Series” Products Various Choices of Sensors Com m on Library High-sensitivity Group Sensors IFB - Intel high-speed CPU High-speed - Vast memory Kailas Sensors IFB Capacity - Capture Board - Varios Sensor I/F Multiple - ISP Wavelength IFB - Hig
Slide 27: Embedded Solutions
Embedded Solutions Total Market：994 billion yen （2013）, 1 tril. 250 billion yen （2016 Estimate） Source: Fuji Keizai Co., Ltd. Automotive IoT Offices Communication Industrial Medical Robotics MFP STB Energy Embedded Element Market： Embedded SI Market： 647.8 bil. Yen （2013 Actual） 346.2 bil. Yen （2013
Slide 28: Example of Embedded Solution: Gateway for IoT Market ISS Moon Island
Example of Embedded Solution: “Gateway for IoT Market” ISS Moon Island OS～MW WindRiver IDP WindRiverLinux Various Device Drivers Intel incorporated HW Intel “MoonIsland” Intel All-in-one GateWay deployed by Intel Worldwide 28 Solution deployment with ISS Department and ITA
Slide 29: Cultivating New Businesses by CVC
Cultivating New Businesses by CVC Investment mainly to companies in silicon valley and newly emerging Asian countries Early discoveries and capturing of new silicon valley technologies and businesses Cultivating future business opportunities in growing Asian markets Existing Software Services Resour
Slide 30: 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