Slide 1: FY2010 1st Half Financial Results
November 11, 2010 FY2010 1st Half Financial Results
Slide 2: Agenda
Agenda 1 FY2010 1 Half Results st 2 FY2010 Outlook 3 Innotech Advantages 4 Future Steps 1
Slide 3: FY2010 1st Half Highlights
FY2010 1st Half Highlights 200% increase in Ordinary Profit due to rapid business recoveries of our subsidiaries Semiconductor Design business: Tester is coming back and profitability of Sanei is improving Electronic Component business: Sales of Device and embedded software are substantially increas
Slide 4: FY2010 1st Half Actual
FY 2010 1st Half Actual 【mil. yen】 Sanei IT Overseas Innotech Consolidated 2009 1H YoY Hytechs ACCESS Sales Net Sales 9,515 1,325 2,081 3,554 12,923 11,137 16% G r o s s 1,866 353 636 76 2,932 2,292 28% P r o f i t (19.6％) (26.6％) (30.6％) (2.1％) (22.7％) (20.6％) Operating 229 210 331 22 687 134 409%
Slide 5: FY2010 1st Half Semiconductor Design Business
FY2010 1st Half Semiconductor Design Business 【mil. yen】 Sales 5,002 5,000 4,485 1,299 1,090 198 81 579 58 3,139 3,043 1,205 1,579 0 FY2009 1H FY2010 1H EDA Tester ASIC Sanei Gross Profit （※）Part of ASIC business is transferred to the Devices Business in FY 2009 1H 4
Slide 6: FY2010 1st Half Electronic Component Business
FY2010 1st Half Electronic Component Business 【mil. yen】 Sales 7,921 6,652 2,079 1,095 5,000 1,554 2,647 4,003 3,195 1,087 1,354 0 FY2009 1H FY2010 1H HDD Device ITA Gross Profit （※）Part of ASIC business is transferred to the Devices Business in FY 2009 1H 5
Slide 7: Subsidiaries Drive the Financial Recovery
Subsidiaries Drive the Financial Recovery Sanei Hytechs IT ACCESS 【mil. yen】 【mil. yen】 Sales(left axis) Sales(left axis) 1,500 300 2,500 400 Operating profit(right axis) Operating profit(right axis) 2,000 300 1,000 200 1,500 200 1,000 500 100 100 500 0 0 0 0 FY 2009 1H FY 2010 1H FY 2009 1H FY 2010
Slide 8: Industry-top Ordinary Profit Ratio
Industry-top Ordinary Profit Ratio % FY 2010 1H 6 5.3％ Innotech 5 Average of 23 semiconductor trading houses 4 3 2 1 0 FY 2009 1H FY 2009 2H FY 2010 1H ※23 public semiconductor trading houses’ results are calculated by Innotech based on their financial statements. 7
Slide 9: Agenda
Agenda 1 FY2010 1 Half Results st 2 FY2010 Outlook 3 Innotech Advantages 4 Future Steps 8
Slide 10: FY2010 Outlook Highlights
FY 2010 Outlook Highlights Ordinary Profit will double due to Innotech business recovery Semiconductor Design business: Demands for tester will ramp up, Sanei will remain solid and stable Electronic Component business： Embedded software will be the driving force, HDD will remain solid 9
Slide 11: FY2010 Outlook
FY 2010 Outlook 【mil. yen】 Sanei IT Overseas FY2009 Innotech Consolidated YoY Hytechs ACCESS Sales Actual Net Sales 20,000 2,600 3,400 7,000 26,000 24,492 6％ G r o s s 4,170 700 1,100 130 6,100 4,933 24％ P r o f i t (20.9%) (26.9%) (32.4%) (1.9%) (23.5%) (20.1%) Operating 900 340 440 40 1,500 613 14
Slide 12: FY2010 Estimate Semiconductor Design Business
FY2010 Estimate Semiconductor Design Business 【mil. yen】 Sales 10,600 9,854 10,000 2,600 2,323 200 533 449 1800 5,000 6,549 6,000 3,620 2,633 0 FY 2009 FY 2010(estimate) EDA Tester ASIC Sanei Gross Profit （※）Part of ASIC business is transferred to the Devices Business in FY 2009 11
Slide 13: FY2010 Estimate Electronic Component Business
FY2010 Estimate Electronic Component Business 【mil. yen】 Sales 15,400 14,637 15,000 2,669 3,400 10,000 3,770 5,000 8,198 7,000 5,000 2,300 2,480 0 FY 2009 FY 2010 (estimate) HDD Device ITA Gross Profit （※）Part of ASIC business is transferred to the Devices Business in FY 2009 12
Slide 14: Innotech Business will Contribute from the 2nd Half
Innotech Business will Contribute from the 2nd Half ■Operating Profit （％ stands for Component Ratio） 【mil. yen】 Innotech business will be the Subsidiary driving force in the 2nd half 1,500 Innotech Strong businesses of two 1,000 subsidiaries contributed to the results in the 1st half 55％ 60％ 500 72％
Slide 15: Growing Demands for Flash memory
Growing Demands for Flash memory Flash Memory market forecast (peta byte) Market scale will be 15 times in 2013 （comparing to 2009） 2008 2009 2010 2011 2012 2013 14
Slide 16: Dividends
Dividends Payout 1H 2H Annual ratio FY2009 2 yen 3 yen 5 yen 55％ FY2010 4 yen 6 yen 10 yen 25％ （Estimate） Innotech is planning for dividend increase for FY 2010 (estimate) Payout ratio is targeted to be more than 25% on a consolidated basis. 15
Slide 17: Agenda
Agenda 1 FY2010 1H Results 2 FY2010 Outlook 3 Innotech Advantages 4 Future Steps 16
Slide 18: Innotech Uniqueness/Advantages
Innotech Uniqueness/Advantages Now Collaboration with strong venders and distribution of attractive products Enlarging customer base High engineering skills Strong Financial Structure In the past Too many products to support Unstable customer base Fragile financial structure 17
Slide 19: Partner Companies Supporting Core Businesses
Partner Companies Supporting Core Businesses Transaction Venders Business Superiority Innotech Services period Technical support Leading the industry CADENCE Competing for a top position with Synopsys. 23years New business development Holds No. 1 share for HDDs.(Japan domestic) Technical support Hit
Slide 20: Technical Expertise Satisfying Vender and Customer Needs
Technical Expertise Satisfying Vender and Customer Needs Innotech Engineering Skills Canon CADENCE Ricoh Hitachi GST Rohme Technical Support Technical Maintenance/train Support DNP Intel ing Sony Developed Development of internally embedded boards Sanyo Elec. Silicon Image Toshiba Design Software Sh
Slide 21: Financial Structure Substantially Improved
Financial Structure Substantially Improved ■ Debt Ratio and Capital Adequacy Ratio (%) 80 FY1998 Interest-bearing debt: 45.3 billion yen 70 Interest-bearing debt ratio 60 Capital adequacy ratio 50 40 30 FY2010 1st Half:Interest-bearing debt: 1.7 billion yen 20 10 0 FY1998 FY1999 FY2000 FY2001 FY2002
Slide 22: Agenda
Agenda 1 FY2010 1H Results 2 FY2010 Outlook 3 Innotech Advantages 4 Future Steps 21
Slide 23: Becoming an EDS Company
Becoming an EDS Company Now 5 years later Networking each business Semiconductor Design Introduction of new technologies Products Electronic Components Proposing new products and services Enlarging customer base including Customers Japanese comapany overseas company Role Supporting the Japanese Lead
Slide 24: Progress of Intel Business
Progress of Intel Business Mar. 25 Executed distribution agreement May 11~13 Demonstrated internal developped “twitter TV” at the ESEC at Intel Booth Sept. 13-15 Participated in IDF (Intel Development Forum at San Francisco) Announced availability of CPU module “TX- 50” incorporating Atom Processor
Slide 25: Innotech Group Demonstration System
Innotech Group Demonstration System 3. Software Group -Package software for DTV/STB (iSense) -Various applications 2. Board Design Group -Innotech internally-developed tuner board (ARIB standard-compliant) -Evaluation and verification of the entire system 1. Device Sales Group -Procurement of CE4100
Slide 26: Creating New Businesses by Business Synergies
Creating New Businesses by Business Synergies Device Board Software Development Development Total Solution 25
Slide 27: Achieving High Growth by Setting the EDS Business as a Core
Achieving High Growth by Setting the EDS Business as a Core 【mil. yen】 Targeting over 25％ of Sales Gross margin 3,000 2,000 1000 Ordinary Profit 0 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 -1000 To a New Growing Phase Structure Strategy Advanced Service Innotech Inside Ne
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