Slide 1: FY 2009 2nd Quarter Financial Results
November 13, 2009 FY 2009 2nd Quarter Financial Results
Slide 2: Agenda
Agenda 1 FY2009 1st Half Results 2 FY2009 Outlook 3 Progress of Advanced Service Business 1 1
Slide 3: FY 2009 1st Half Highlights
FY 2009 1st Half Highlights Sales increased by 5% compared to the initial estimate and 200 million yen of ordinary income was achieved. Semiconductor Design business is solid due to Cadence multi-year licensing contracts; Tester business has no new orders and the Design Service business has less ord
Slide 4: FY2009 1st Half Results
FY2009 1st Half Results 〔mil. yen〕 Sanei Overseas Innotech IT ACCESS Consolidated YoY Hytechs Sales Net Sales 8,905 1,123 1,095 1,554 11,137 -34% Cost of Sales 7,204 976 734 1,504 8,845 -34% Gross Profit 1,701 146 361 50 2,292 -33% S G A 1,555 194 265 55 2,157 -16% Operating 145 -47 95 -5 134 -84% I
Slide 5: Comparison of Estimate by Segment
Comparison of Estimate by Segment 〔mil. yen〕 Initial estimate Actual results Comparison Net Sales 10,600 11,137 5% Semiconductor Design 4,900 4,652 -5% Electronic Components 5,700 6,484 14% Cost of Sales 8,260 8,845 7% Gross Profit 2,340 2,292 -2% Semiconductor Design 1,340 1,240 -7% Electronic Comp
Slide 6: Sales by Business
Sales by Business 〔mil. yen〕 FY2008 1H FY2009 1H YoY Factors Semiconductor Design 6,493 4,652 -28% Stable due to multi-year EDA Software 3,442 3,139 -9% licensing contracts Semiconductor Testers 791 58 -93% No new orders ASIC Design / Sales 551 365 -34% Less ASIC design projects Design Consignment 1
Slide 7: Financial structure is improving
Financial structure is improving 80% Ratio of bank loans to total assets Capital Equity ratio 70% 60% 48.2% 72.5% 50% 40% 30% 32.7% 20% 9.6% 10% 0% FY2005 FY2006 FY2007 FY2008 FY2009 1H 15 Amount of treasury stocks acquired 10 5 10 7 0 6
Slide 8: Thorough cost reduction scheme worked well
Thorough cost reduction scheme worked well Reduced variable cost by 17% 〔100 mil. yen〕 2.5 2.29 billion △6％ 2.16 billion 2.0 1.31 1.5 △2％ 1.29 1.0 Human resources Cost 0.58 △17％ 0.48 Variable Cost 0.5 Fixed Cost 0.4 △3％ 0.39 0 Intial Estimate Actual results 7
Slide 9: Reforming the business structure
Reforming the business structure 〔mil. yen〕 Profit and loss from Ordinary investment securities ▲120 Income Structural reform cost ▲48 225 Reforming the business structure of the design service subsidiary to decrease fixed cost Income before tax 57 8
Slide 10: Dividends
Dividends Dividends will be distributed as initially planned 1H 2H FY2009 Dividends 2 yen 3 yen 5 yen ※Dividends for the 2nd half and the fiscal year are estimates Acquiring treasury stocks （as of the end of October） Available for acquisition ：2,000,000 stocks Acquired ：1,755,900 stocks Acquired
Slide 11: Agenda
Agenda 1 FY2009 1 ST Half Results 2 FY2009 Outlook 3 Progress of Advanced Service Business 10 10
Slide 12: FY2009 Highlights
FY2009 Highlights Targeting to achieve the published estimate income level Executing various efforts for business growth in 2010 and beyond Actualization of ODM business, new efforts for Tester business 11
Slide 13: FY2009 Estimate
FY2009 Estimate 〔mil. yen〕 Sanei IT Overseas Innotech Consolidated Hytechs ACCESS Sales 1H FY 1H FY 1H FY 1H FY 1H FY N e t S a l e s 8,905 18,300 1,123 2,300 1,095 2,500 1,554 3,900 11,137 23,500 Cost of Sales 7,204 14,970 976 1,830 734 1,650 1,504 3,800 8,845 18,700 Gross Profit 1,701 3,330 146 47
Slide 14: Estimate by Segment
Estimate by Segment 〔mil. yen〕 FY2009 FY2008 YoY ［Estimate］ Net Sales 30,018 23,500 -22% Semiconductor Design 12,844 9,700 -24% Electronic Components 17,174 13,800 -20% Cost of Sales 23,669 18,700 -21% Gross Profit 6,349 4,800 -24% Semiconductor Design 3,705 2,600 -30% Electronic Components 2,644 2,
Slide 15: Estimate by Business
Estimate by Business 〔mil. yen〕 FY2009 FY2008 YoY [Estimate] Semiconductor Design 12,844 9,700 -24% EDA Software 6,943 6,300 -9% Semiconductor Testers 1,532 500 -67% ASIC Design / Sales 1,102 600 -46% Design Consignment （Sanei Hytechs） 3,267 2,300 -30% Electronic Components 17,174 13,800 -20% HDD 10
Slide 16: EDA Software
EDA Software 〔100 mil. yen〕- Sales Trends - 80 Stable business with multi-year contracts 2H 60 1H Acquired two new customers despite the tough economy 40 Enriched portfolio of EDA products 20 0 FY2008 FY2009 Estimate （ New Product “Arteris”） Expansion of multi-year contracts Actively promoting to ID
Slide 17: Semiconductor Testers
Semiconductor Testers 〔100 mil. yen〕 - Sales Trends - 20 2H Resume shipment in the 2nd half 1H Increase competitiveness with 10 lower cost Promoting one-stop solutions 0 FY2008 FY2009 Estimate With the recovery of NAND market in mind, completed the development of the next generation tester and prepa
Slide 18: ASIC Design Consignment
ASIC Design Consignment - Sales Trends - For medical and communication 〔100 mil. yen〕 Low NRE Structured ASIC Ideal to slash costs from FPGA 10 1H Low power, high performance 2H For server and communication High performance, cutting-edge SoC/ASIC High-speed SerDes technology Most advancedpro
Slide 19: Design Consignment (Sanei Hytechs)
Design Consignment （Sanei Hytechs） - Sales Trends - 〔100 mil. yen〕 40 2H Business turned profitable by 1H reducing costs 20 Stable business with major customers due to market recovery Actively pursuing collaboration 0 with Innotech FY2008 FY2009 Estimate Focusing on power source and MPU businesses l
Slide 20: HDD (Hard Disk Drives)
HDD （Hard Disk Drives） 〔100 mil. yen〕 - Sales Trends - 100 Strong growth for AV 2H products in the 1st half 1H Expecting OA business recovery in the 2nd half 50 Re-growing trend continues every quarter （100 mil. yen） Sales Trends 0 30 FY2008 FY2009 Estimate 20 10 0 08Q3 08Q4 09Q1 09Q2 19
Slide 21: Electronic Devices
Electronic Devices - Sales Trends - 〔100 mil. yen〕 50 Adoption of a new product “InstaPort” is accelerating 2H Reduce switching time between HDMI 1H (ports from 4-7 seconds to less than 1 second) New device is launched 25 (US SiliconCore Technology) Low cost, high performance laserdiode driver;
Slide 22: Embedded Software (IT ACCESS)
Embedded Software （IT ACCESS） 〔100 mil. yen〕 - Sales Trends - Strengthen embedded one-stop solution 30 2H 1H Stable profitability from the flat panel display TV business; 20 Multiple effects from governmentally offered green-effort incentives and increase in internet-supported models 10 Growing dema
Slide 23: Agenda
Agenda 1 FY2009 1 st Half Results 2 FY2009 Outlook 3 Progress of Advanced Service Business ・ODM Business ・Test solutions 22 22
Slide 24: Innotech DNA
Innotech DNA Engineering Skills Business creation capabilities Nurturing necessary Deeply penetrating leading human resources companies leveraging information “Innotech Inside” Market creating capabilities Highly competitive Good eyes to discover product portfolio promising businesses Expertise in c
Slide 25: Starting ODM Business
Starting ODM Business maintenance Determination Manufacturing Distribution evaluation Hardware Mechanical Marketing of specs, Sales and Software Planning service, Product Testing control Quality design design design design Exterior Networking Video Embedded CPU Device Software Board Low Power Small
Slide 26: Expanding embedded software business
Expanding embedded software business Development Cost CAGR 15.2％（2004-2009） 〔100 bil. yen〕 Development Cost of Embedded Products (100 bil. yen) Development Cost of Embedded Software (100 bil. yen) Ratio of Development Cost of Embedded Software within the Entire Product Development Cost (100 bil. yen
Slide 27: Measures to increase competitiveness
Measures to increase competitiveness Increase in demands from the NAND market Efforts to reduce cost Better management of supply chain, tighter collaboration with EMS Delivering customer-requested specifications Increase Smaller footprint, saving energy competitiveness Increase test efficiency Intro
Slide 28: Diversification of Solutions
Diversification of Solutions Accumulating know-how of test solutions Expansion of Business not dependant on specific applications or existing customers Cultivating new requirements One-stop Suggestion-based sales activities, strengthening marketing activities Test solutions Alliance with overseas co
Slide 29: 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