Slide 1: FY 2012 1st Half Financial Results
November 12, 2012 FY 2012 1st Half Financial Results
Slide 2: Agenda
Agenda 1 FY2012 1H Results 2 FY2012 Outlook 3 Future Steps 2
Slide 3: FY2012 1H Highlights
FY2012 1H Highlights 30% decrease in Ordinary Profit Tester sales declined by 46% due to customers’ conservative investment plan; active R & D for new area HDD and Device business substantially declined due to weak demands for major product line Strengthen business base by acquiring and adding Regul
Slide 4: FY2012 1H Results
FY2012 1H Results 〔mil. yen〕 Sanei Innotech IT Access Consolidated YoY Hytechs FY2012 1H FY2011 1H FY2012 1H FY2011 1H FY2012 1H FY2011 1H FY2012 1H FY2011 1H Net Sales 7,951 10,343 1,262 1,199 1,408 1,647 10,733 13,098 -18% G r o s s 2,193 2,583 295 204 444 478 3,005 3,286 -9% P r o f i t (27.6%) (
Slide 5: FY2012 1H Semiconductor Design Business
FY2012 1H Semiconductor Design Business Sales EDA Tester ASIC Design Consignment (Sanei Hytechs) Reglus 〔mil. yen〕 6,456 1,183 5,580 163 98 5,000 1,258 2,482 139 1,347 2,628 2,739 0 FY2011 1H FY2012 1H Gross Profit 5
Slide 6: Semiconductor Design Business
Semiconductor Design Business EDA Successful renewals of multi-year contracts: stable business despite the tough industry environment Testers Substantial decrease in sales due to existing customers’ conservative investment plans ASIC Decrease in sales due to delays in customers development projects
Slide 7: FY2012 1H Electronic Component Business
FY2012 1H Electronic Component Business Sales HDD Electronic Devices Embedded Software Development (IT Access) 〔mil. yen〕 6,642 1,565 5,152 5,000 1,415 2,183 1,737 2,894 2,000 0 FY2011 1H FY2012 1H Gross Profit 7
Slide 8: Electronic Component Business
Electronic Component Business HDD Decrease in sales due to the HDD industry’s reorganization Devices Sales of HDMI chips which are the main-stream products declined but embedded board business remains stable ITA Design consignment business is recovering but TV business declines and overall sales is
Slide 9: Stronger R & D
Stronger R & D Fixed Cost Variable Cost 〔mil.yen〕 2,394 2,404 Variable Cost 2,000 546 691 95 mil. Yen increase in R&D cost 1,000 1,848 1,712 R&D increases for future benefits but SGA cost is kept flat 0 FY2011 1H FY2012 1H 9
Slide 10: Agenda
Agenda 1 FY2012 1H Results 2 FY2012 Outlook 3 Future Steps 10
Slide 11: FY2012 Highlights
FY2012 Highlights Business environment becomes even tougher; earnings numbers are lowered but dividends will be kept Sales for Testers, HDD, Devices and Embedded Software are expected to decline EDA and Design Consignment Businesses will remain stable 11
Slide 12: FY2012 Estimate
FY2012 Estimate 〔mil. yen〕 Sanei Innotech IT Access Consolidated YoY Hytechs FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 Net Sales 15,000 19,755 2,500 2,470 2,750 3,081 21,000 25,181 -17% G r o s s 3,900 5,038 550 421 900 871 5,550 6,401 -13% P r o f i t (26.0%) (25.5%) (22.0%) (17.1%) (
Slide 13: FY2012 Outlook: Semiconductor Design Business
FY2012 Outlook: Semiconductor Design Business Sales EDA Tester ASIC Design Consignment (Sanei Hytechs) Reglus 〔mil. yen〕 13,687 2,440 11,050 265 350 10,000 2,500 5,414 400 2,000 5,000 5,568 5,800 0 FY 2012 FY 2013 Gross Profit 13
Slide 14: FY2012 Outlook: Electronic Component Business
FY2012 Outlook: Electronic Component Business Sales HDD Electronic Devices Embedded Software Development (IT Access) 〔mil. yen〕 11,493 10,000 2,976 9,950 2,750 3,679 5,000 3,200 4,838 4,000 0 FY2012 FY2013 Gross Profit 14
Slide 15: Revision of Forecast
Revision of Forecast Semiconductor Design Business Electronic Component Business EDA HDD 〔mil. yen〕 Tester 〔mil. yen〕 Electronic Devices ASIC Embedded Software Development (IT Access) 15,000 Design Consignment (Sanei Hytechs) Reglus 15,000 13,800 11,700 11,050 3,200 2,500 350 10,000 9,950 2,500 10,0
Slide 16: Outlook on Dividends
Outlook on Dividends 7 yen of Interim (1H) dividends were paid FY2012 dividends is estimated to be 14 yen Dividends Dividend 1H 2H FY Payout Ratio FY2011 7 yen 7 yen 14 yen 32.9％ FY2012 （Estimate） 7 yen 7 yen 14 yen 54.5％ Our dividend payout ratio is targeted to be more than 30% in a consolidate
Slide 17: Agenda
Agenda 1 FY2012 1H Results 2 FY2012 Outlook 3 Future Steps 17
Slide 18: Transforming to a Globally-renowned EDS Company
Transforming to a Globally-renowned EDS Company Focusing on “3Ms” Efforts Providing software and services Active development of Products testers and expansion and Innotech proprietary of internally-developed services with higher Margins boards Strengthen Focus on growing Markets; collaboration with
Slide 19: Acquisition of Regulus
Acquisition of Regulus • Capital：50 mil. yen • FY2011 Sales：576 mil. yen • Capital Investment Ratio：100% （Consolidated subsidiary） • President：Hirotaka Furusawa • Number of employees：27 （Among 27, 22 are engineers） • Established in 1999 • Major businesses： System development focusing on image proc
Slide 20: Synergy Effect with Regulus
Synergy Effect with Regulus High-quality image processing Board development technology System development Tester development corresponding to customer needs Overall solution ranging from system specification design to mass production ASIC・LSI design and development Sales support for existing busines
Slide 21: Customer Customer
New deployment of testers Multi-function High cost Responding to users needs Customer Customer Collaboration with Japanese companies Existing Leveraging overseas vendors Manufacturers M M o u n l o t i Single function low cost 21
Slide 22: Expanding internally-developed embedded board product-line
Expanding internally-developed embedded board product-line Digital signage Medical FA Robotics Car navigation Surveillance System Communication Entertainment Realized by Innotech Engineering Delivering small footprints, all-in-one functionality design, and low power altogether High reliability, redu
Slide 23: Audio and Visual System Control Utilizing Smartphone
Audio and Visual System Control Utilizing Smartphone Bedroom Kitchen Receiver Receiver 4x3 Switch Receiver Blue-Ray GAME ITA and overseas companies Media Player PC jointly developed a system to Cloud Rack Living Room universally control AV systems NAS (Home Theater) supplied by different manufacture
Slide 24: 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