Slide 1: FY2013 Financial Results
FY2013 Financial Results May 13, 2014
Slide 2: Agenda
Agenda 1 FY2013 Results 2 FY2014 Outlook O tl k 3 Mid-range Management Plan 2
Slide 3: FY2013 Highlights
FY2013 Highlights 44% Increase in Operating Profit 33% increase in sales and 96% increase in operating profit for Semiconductor Design Business 5% decrease in sales for f Electronic Component Business, operating profit became negative. Acquired GAIO Technology Co. Ltd and invested in Sassor Inc to p
Slide 4: FY2013 Results
FY2013 Results 〔mil. yen〕 Sanei Gaio Innotech IT Access Regulus g Consolidated YoY Hytechs Technology FY2013 FY2012 FY2013 FY2012 FY2013 FY2012 FY2013 FY2012 FY2013 FY2012 FY2013 FY2012 Net Sales 17,570 17 570 14,578 14 578 2 790 2,790 2 614 2,614 2 389 2,389 3 119 3,119 511 ‐ 398 297 23,585 23 585
Slide 5: FY2013 Results: Semiconductor Design Business
FY2013 Results: Semiconductor Design g Business 〔mil. yen〕 Sales 売上高 EDA Tester テスター Sanei Hytechs 三栄ハイテックス Regulus レグラス Gaio Technology ガイオテクノロジー 20,000 Gross Profit 売上総利益 14,308 512 15,000 10,754 310 2 771 2,771 280 10,000 3,348 2,605 1,686 1 686 7,367 5,000 6,183 4,634 3 295 3,295 0 FY2012 2013年/
Slide 6: Semiconductor Design Business
Semiconductor Design Business EDA IIncrease in i sales l due d to renewals l off large-scale l l contracts and winning the government procurement project Tester Substantial increase in sales due to active investment continued by the customers in the 1st half Sanei Hytechs y Increase in sales and pro
Slide 7: FY2013 Results: Electronic Component Business
FY2013 Results: Electronic Component Business Sales 〔mil yen〕 〔mil. Electronic l i Embedded b dd d Software f Device Development (IT ACCESS) Gross Profit 9,794 9,277 FY2012 FY2013 （※） Rounded to the whole number. 7
Slide 8: Electronic Component Business
Electronic Component Business HDD Substantial decrease in sales due to weak demands in the main MFP business but expected to recover in the 2nd half Device Increase in sales due to growth of HDMI and Intel businesses but profitability declined IT ACCESS Decrease in profit due to decline of TV royalt
Slide 9: Acquisition of Gaio Technology
Acquisition of Gaio Technology Expansion of verification tool business Participation in the automotive market Investment ratio： 100% Establishment： in 1980 Business： Embedded software tools for Automotive, OA, consumer electronics Major products are regarded as mini mini-defacto defacto standard i
Slide 10: Investment in Sassor
Investment in Sassor Expansion of embedded business bu Cultivation of IoT market Investment ratio： 14.1％ Establishment： in 2010 Business： Sales of p power management g systems y as well as provision p of power consulting business Development and provision of network solutions Development consignm
Slide 11: Agenda
Agenda 1 FY2013 Results 2 FY2014 Outlook l k 3 Mid-range Management Plan 11
Slide 12: FY2014 Estimate Highlight
FY2014 Estimate Highlight Expect 2-digit growth in sales while operating profit fit iincrease may remain i bby 5% Semiconductor S i d t Design D i Business B i EDA business will remain strong; Gaio will fully contribute tto our b business i year-round d Tester sales is expected to decline while
Slide 13: FY2014 Estimate
FY2014 Estimate 〔mil. yen〕 Sanei Gaio ld Consolid Innotech IT Access Regulus FY2013 YoY Hytechs Technology ated Net Sa l e s 18 500 18,500 2 750 2,750 2 500 2,500 1 700 1,700 550 26 000 26,000 23 585 10% 23,585 Gross Profit 4,090 650 800 750 150 6,490 6,121 6% （22.1％） （22 1％） （23.6％） （23 6％） （32.0％）
Slide 14: FY2014 Outlook: Semiconductor Design Business
FY2014 Outlook: Semiconductor Design g Business Sales 売上高 〔mil yen〕 〔mil. EDA EDA Tester テスタ テスター Sanei Hytechs 三栄ハイテックス レグラス Regulus ガイオテクノロジー Gaio Technology 20,000 Gross Profit 売上総利益 14 308 14,308 15 000 15,000 15,000 512 310 1,700 550 2,771 2,750 10,000 3,348 2,700 7,367 7,300 5,000 4,634 4,610
Slide 15: FY2014 Outlook: Electronic Component Business
FY2014 Outlook: Electronic Component p Business 〔mil. yen〕 Sales 売上高 El Electronic i E b dd d S Embedded Software ft HDD 電子デバイス Device 組込ソフト開発（ITアクセス） Development (IT ACCESS) 15,000 Gross Profit 売上総利益 11,000 9,277 10,000 2,500 ,500 2,411 4,700 3 948 3,948 5,000 2 918 2,918 3,800 1,486 1,880 0 2014年/
Slide 16: Tighter Collaboration with STAr
Tighter Collaboration with STAr Accelerating Tester Business Expansion of product portfolio Participation in Taiwanese, Chinese, and Korean markets Provision of total solutions ((From probe p cards to analysis y software)) Joint J i marketing k i and d sales l p Joint development of new pr
Slide 17: Outlook on Dividends
Outlook on Dividends Dividend 1H 2H FY Payout Ratio FY2013 7 yen 7 yen 14 yen 46.6％ FY2014 (Estimate) 7 yen 7 yen 14 yen 35 1％ 35.1％ Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. 17
Slide 18: Agenda
Agenda 1 FY2013 Results 2 FY2014 Outlook l k 3 Mid-range Management Plan 18
Slide 19: Resolutely Carrying Out the Business Structural Reform
Resolutely Carrying Out the Business Structural Reform Current Status Since the Lehman crash, business environment surrounding Innotech has drastically changed; we are reaching to our growth limit with our business model as an electronic component distributor. Our Moves We have invested 1.3 billion
Slide 20: Current Status: Sales and Profitability Are Stagnated
Current Status: Sales and Profitabilityy Are Stagnated g Total Gross 売上総利益合計 Semiconductor 半導体設計事業 Electronic 電子部品事業 Total 売上合計 Semiconductor 半導体設計事業 Electronic 電子部品事業 Design Business Design Profit Component Sales Component Business 〔百万円〕 Business 〔百万円〕 Business 10,000 30,000 売上高 Sales mil. yen 売上総利
Slide 21: Our Moves: 1.3 Billion yen of Investment in the Past 3 Years
Our Moves: 1.3 Billion yen of Investment in the Past 3 years 〔mil. yen〕 投資額 Investment Amount 800 600 400 200 0 2012/3 2013/3 2014/3 Regulus Gaio Technology Giga Hertz Technology STAｒ SASSOR 21
Slide 22: Change the Future
Our Vision for the Business Structural Reform Change the Future Transform f the h business b portfolio f l Innotech to evolve to a solution vendor from a component vender （leave the distribution and territorial businesses behind) Actively pursue overseas customers Nurture global businesses （Develop
Slide 23: Challenge for Growth
Policy and Measures for Business Structural Reform Challenge for Growth Pursuit of solution businesses to p penetrate the growing g g markets in the IoT era Actively promote and deploy solution businesses to overseas customers Consolidate and invest management resources in the growing segments Revie
Slide 24: 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 uto ot e Medical Infrastructure Tests Industrial Robotics Innotech Differentiating Solution Model-based verification (tools/services) Test (probe cards/testers/analysis software)
Slide 25: Core Business for Growth (Verification Tools/Services)
Core Business for Growth (Verification Tools/Services / ) V-shaped System Specification Test Design Process （Actual Machine） Process Industry Railway IEC 61511 IEC 62278 (RAMS) System Consolidates Automotive Nuclear Power Design Test ISO 26262 IEC 61513 Functional (1) Industrial Safety Detailed Medi
Slide 26: Gaio Technology (Verification Tools/Service)
Gaio Technology (Verification Tools/Service) New Market Tackling the automotive area➝Horizontal deployment to the IoT market (Medical, infrastructure, and so on) New Business Tool as well as service businesses for software/hardware model model-based based verification Technology to Differentiate Hig
Slide 27: Core Business for Growth (Test Solutions)
Core Business for Growth (Test Solutions) Innotech TS STAr Department 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 C
Slide 28: STAr (Test Solutions)
STAr (Test Solutions) New Market Penetrating Taiwanese/Chinese/Korean major foundries and major test houses New Business Expansion of product portfolio to cover testers for sensors (CIS), reliability tests, and 3D tests Technology to Differentiate Total solutions spanning from probe cards to analysi
Slide 29: Core Business for Growth (Image Processing Solutions)
Core Business for Growth (Image Processing Solutions) Automotive Medical Social Infrastructure And Surveillance Collision Around view avoidance Fundus Endoscope examination I T A li ti Software IoT+Application S ft Human Road tracking Inspection Image Processing (algorithm) Testing Image Processing
Slide 30: Regulus (Image Processing Solutions)
Regulus (Image Processing Solutions) New Market Target new customers in the IoT Market (automotive, (automotive medical, social infrastructure, and so on) New Business Develop and sell total solutions covering the application software, shedding its shell of “design consignment” Technology to Differe
Slide 31: Core Business for Growth (Embedded Solutions)
Core Business for Growth （Embedded Solutions) Total market： 994 billion yen （in 2013）、1trillion 250 billion yen (2016 Estimate） Source: Fuji Keizai Automotive IoT Co.Ltd. Business Communication Industrial Medical Robotics MFP STB Energy Embedded Element Market： Embedded SI Market： 647.8 billion yen
Slide 32: IT ACCESS (Embedded Solution)
IT ACCESS (Embedded Solution) New Market Target new customers in the IoT market (automotive, medical, social infrastructure,, home automation,, security, y, and so on)) New Business Sell total solutions spanning from board to software for each application in the IoT area (hard modules/OS/middleware/
Slide 33: Active Investment for Growth
Active Investment for Growth Verification Solution Test Solution Image Processing Solution Embedded Solution Innotech plans to focus on above above-mentioned mentioned four solution areas as its core to achieve growth. Innotech will execute necessary investment for product and technology dev
Slide 34: New Organization to Accelerate Solution Business
New Organization to Accelerate Solution Business Consolidated Management of Groupp Companies p Solution Innotech Group Companies Design EDA Gaio Technology Test Tester STAr Image Business Development Group Regulus g Processing (planning stage) Embedded Embedded Board IT ACCESS/Sassor Solutions Distr
Slide 35: Mid-range Plan
Mid-range Plan Target： 40billion yen of sales, 3.2 billion yen of operating p g profit p in FY2016 (Sales: 100 mil. yen) (Operating Profit: 100 mil. yen) 500 50 Operating 売上高 Sales 営業利益 400 Profit 40 300 30 200 20 100 10 0 0 35 2011年度 FY2012 FY2013 FY2012 FY2011 2012年度 FY2014 2015年度 FY2013 2014年度 20
Slide 36: Note for Forward Looking Statements
Note for Forward Looking Statements The information provided in this presentation includes forward looking statements based on current expectations expectations, forecasts or beliefs. Such forward looking statements include a number of preliminary assumptions about future events that are subject to