Slide 1: FY2016 Financial Results
FY2016 Financial Results May 12, 2017 1
Slide 2: Agenda
Agenda 1 FY2016 Actual 2 FY2017 Outlook 3 Mid-range Management Plan 2
Slide 3: FY2016 Highlights
FY2016 Highlights Sales plan was not achieved but ordinary profit increased by 8% Business suffered and slowed down on a non- consolidated basis but profit exceeded the plan Tester business substantially declined; contribution by new businesses shall be visible from FY2017 GAIO and STAr increased th
Slide 4: FY2016 Actual
FY2016 Actual [mil. yen] Sanei IT GAIO INNOTECH STAr Regulus Consolidated Hytechs Access TECHNOLOGY YoY Fiscal Year FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 N e t S a l es 17,049 20,448 3,279 2,982 2,118 2,398 2,622 2,277 3,561 3,624 501 441 2
Slide 5: FY2016 Design and Development Solution Business
FY2016 Design and Development Solution Business [Sales: mil. yen] [Gross Profit: mil. yen] 20,000 4,719 5,000 4,847 2,971 3,270 4,000 15,000 324 440 2,375 2,106 三栄ハイテックス 3,000 Sanei Hytechs レグラス Regulus 10,000 2,291 2,235 アイティアクセス IT Access Embedded System 組込システム 2,277 2,622 2,000 ガイオテクノロジー GAIO TEC
Slide 6: Design and Development Solution Business
Design and Development Solution Business ＥＤＡ Sales decreased due to customer transfers but results were as originally planned in the beginning of the year GAIO Verification service business largely expanded; renewed the record of its highest profit Embedded System Same level of sales as last year; s
Slide 7: FY2016 Product Solution Business
FY2016 Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,237 3,229 2,585 3,000 620 10,000 IoT and 4,943 4,476 2,000 IoT他 Others Devices デバイス HDD HDD STAｒ STAr テスター 5,000 2,640 3,515 Tester 1,000 売上総利益 Gross Profit 3,602 3,122 0 0 FY2015 16年3月期 FY2016 17年3月期 Total 13,770 1
Slide 8: Product Solution Business
Product Solution Business Testers Business slowed down in the 2nd half; sales plan of the beginning of the year was not achieved and revenue declined. STAr Business is strong mainly for the probe cards; major increase from last year (revenue increased in actuality) HDD Number of units sold increased
Slide 9: Major Items in Selling and Administration Expense and Non-Operating Items
Major Items in the Selling and Administration Expense and Non-Operating Expenses and Income Items [mil. yen] FY2015 FY2016 Selling and Administration Expense R&D 875 960 Non-operating Expenses and Income Items Real Estate Rent 436 448 Rent Expenses on Real Estates -325 -316 Foreign Exchange Losses/G
Slide 10: Cash Flow
Cash Flow [mil. yen] FY2015 FY2016 Income Before Income Taxes 1,207 1,227 Depreciation and Amortization of Goodwill 771 767 Working Capital and Others -471 493 Cash Flows from Operating Activities 1,506 2,487 Purchase of Investment Securities -451 -233 Payments of Deposits Paid for Purchase of Share
Slide 11: Agenda
Agenda 1 FY2016 Actual 2 FY2017 Outlook 3 Mid-range Management Plan 11
Slide 12: Announcement of HDD Business Selling Off
Announcement of HDD Business Selling Off Intending to focus on solution businesses, INNOTECH has announced its withdrawal from and made a basic agreement to sell off the HDD business as we did for the device business last year. Selling off to: SATORI ELECTRIC CO., LTD. Basic Agreement: May 11, 201
Slide 13: FY2017 Highlights (Estimate)
FY2017 Highlights (Estimate) Both revenue and profit are estimated to decline; withdrawal from most of the electronic component trading businesses INNOTECH on a non-consolidated basis is likely to have negative operational earnings due to selling off of its HDD business and EDA customer transfers Te
Slide 14: FY2017 Estimate
FY2017 Estimate [mil. yen] Sanei IT GAIO Consolida INNOTECH STAｒ Regulus FY2016 YoY Hytechs ACCESS TECHNOLOGY ted Net Sales 14,700 3,400 2,400 2,700 3,900 700 27,500 28,863 -5% 3,300 785 520 1,280 1,640 265 7,850 8,076 Gross Profit -3% (22.4%) (23.1%) (21.7%) (47.4%) (42.1%) (37.9%) (28.5%) (28.0%)
Slide 15: FY2017 Outlook: Design and Development Solution Business
FY2017 Outlook: Design and Development Solution Business [Sales: mil. yen] [Gross Profit: mil. yen] 20,000 4,847 4,840 5,000 3,270 3,400 4,000 15,000 440 720 2,106 2,400 3,000 Sanei Hytechs 三栄ハイテックス レグラス Regulus 10,000 2,235 2,400 アイティアクセス IT Access 組込システム Embedded System 2,622 2,000 ガイオテクノロジー 2,700
Slide 16: FY2017 Outlook: Product Solution Business
FY2017 Outlook: Product Solution Business [Sales: mil. yen] [Gross Profit: mil. yen] 15,000 3,229 3,010 3,000 620 10,000 890 4,476 2,000 IoT and 1,250 IoT他 Others HDD HDD STAr STAｒ 3,900 テスター Tester 5,000 3,515 Gross 売上総利益 Profit 1,000 3,122 3,800 0 0 17年3月期 FY2016 18年3月期 FY2017 Total 11,733 9,840 1
Slide 17: EBITDA Trends
EBITDA Trends [mil. yen] 2,000 1,978 1,994 EBITDA Operating 1,500 営業利益 Profit 1,576 1,446 1,267 1,095 1,000 1,012 999 761 722 500 0 13年3月期 FY2012 14年3月期 FY2013 15年3月期 FY2014 FY2015 16年3月期 FY2016 17年3月期 （※） EBITDA= Income Before Income Taxes + Depreciation and Amortization of Goodwill 17
Slide 18: Dividends
Dividends Dividend As of As of Full Year Payout 1H-end FY-end Ratio FY2016 7 yen 8 yen 15 yen 32.7% FY2017 7 yen 8 yen 15 yen 40.5% (Outlook) Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. On April 19, INNOTECH has announced that our dividends for the year- end of
Slide 19: Agenda
Agenda 1 FY2016 Actual 2 FY2017 Outlook 3 Mid-range Management Plan 19
Slide 20: Overview: Mid-range Management Plan
Overview: Mid-range Management Plan (Announced in November 2014) （Background） Taking the environmental changes in the industry, M&A, and execution of structural reform into consideration （Strategy） Focus on 4 growing areas (Test, Model-Based Verification, Image Processing, Embedded Solutions ) A
Slide 21: Mid-range Management Plan: Current Status and Measures for the Remaining 2 Years
Mid-range Management Plan: Current Status and Measures for the Remaining 2 Years Current Status No change to the business strategies, but as for our numerical goals, some of our assumptions at the time of planning have changed. It is expected that our business of the fiscal year of 2017 will be stag
Slide 22: To Accomplish the Mid-range Management Plan
To Accomplish the Mid-range Management Plan Assumption Changes of the Mid-range Management Plan and Recovery Factors for the FY2018 Assumption Changes Recovery Factors (FY2018) Selling off of HDD Sales Business Launching New Model Testers for CIS Early Renewal of Cadence Agreement 3D-NAND Flash Memo
Slide 23: Expanding Tester Business
Expanding Tester Business Testers for CIS Initial Development of Full Shipment to be Shipment New Models Expected Starting to SSD Inspection NEW Development ship Solutions for Develop Starting Full Shipment to be Package Test NEW ment to ship Expected Testers for 3D- NAND Flash Starting to Full Ship
Slide 24: STAr Technologies: Strategies for Growth
STAr Technologies: Strategies for Growth Accelerate collaboration with Enhance competitiveness INNOTECH of existing products Pioneering in solution Establish and development for strengthen Participation in the new cutting-edge customer market technologies partnerships RF Measurement Tools Deployment
Slide 25: Embedded Boards (Systems)
Embedded Boards (Systems) Goals from early 2016 2015 2016 2017 2018 ①# of mass 1 x1.2 x1.4 x1.6 production projects Sample evaluation Gatewayリrelease Starting to sell ②Support for Specification review for Edge IoT processing FY2016 Goals were achieved Success cases：security terminals, medical applia
Slide 26: Image Processing Solutions
Image Processing Solutions Major applications of intelligent cameras (Summit series) ・Semiconductor Test Equipment FA/Inspection ・Panel Inspection ・High-end Camera with AI for Human Surveillance Detection ・Stereo Camera System ・Camera to generate daily growth report of crops Agriculture ・Multi-wavel
Slide 27: Progress of Other New Businesses: Starting to take off
Progress of Other New Businesses: Starting to take off FY2016 FY2017 Fintech (E-money Payment System) Development/Sales Starting the vending machine service Smart Skin Care® Development/Sales Starting sales of hardware/cloud service Agricultural sensors （EDYN) Joint-sales through partnership Individ
Slide 28: 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