Slide 1: FY2011 Financial Results
May 15, 2012 FY 2011 Financial Results
Slide 2: Agenda
Agenda 1 FY2011 Results 2 FY2012 Outlook 3 Mid-term Business Strategy 2
Slide 3: FY2011 Highlights
FY2011Highlights 10% increase on Ordinary Profit Tester business grew substantially due to the active NAND market and launching competitive products Sharp decline in HDD business due to the Japan earthquake and the Thai flooding aftermaths; Major decrease in the device business and embedded software
Slide 4: FY2011 Results
FY2011 Results 〔mil. yen〕 Sanei Innotech IT Access Consolidated YoY Hytechs FY2011 FY2010 FY2011 FY2010 FY2011 FY2010 FY2011 FY2010 Net Sales 19,755 19,211 2,470 2,691 3,081 3,804 25,181 25,882 -3% G r o s s 5,038 4,035 421 670 871 1,096 6,401 6,004 7% P r o f i t (25.5%) (21.0%) (17.1%) (24.9%) (28
Slide 5: FY2011 Semiconductor Design Business
FY2011 Semiconductor Design Business Sales EDA Tester ASIC Design Consignment (Sanei Hytechs) 〔mil. yen〕 15,000 13,687 2,440 10,305 265 10,000 2,640 211 5,414 1,714 5,000 5,740 5,568 3,394 4,371 0 FY2010 FY2011 Gross Profit 5
Slide 6: Semiconductor Design Business
Semiconductor Design Business ＥＤＡ Smooth renewals of large contracts, minimizing the impact from weak market environment. Tester Record sales exceeding the original forecast due to a favorable business environment. ＡＳＩＣ Successfully acquired new customers, laid groundwork for future growth. Sanei De
Slide 7: FY2011 Electronic Component Business
FY2011 Electronic Component Business Sales HDD Electronic Devices Embedded Software Development (IT Access) 〔mil. yen〕 15,576 15,000 3,987 11,493 10,000 4,680 2,976 3,679 5,000 6,910 4,838 2,610 2,030 0 FY2010 FY2011 Gross Profit 7
Slide 8: Electronic Components Business
Electronic Components Business ＨＤＤ Managed to secure the originally forecasted level of business despite of supply shortage caused by natural disasters. Devices Sharp decline of semiconductor devices for the TV market YOY but embedded board business increased. ＩＴＡ Decrease of royalty income from TV
Slide 9: Temporary Factors for Decrease in Net Profit
Temporary Factors for Decrease in Net Profit Cost of Sales （mil. yen） Loss from inventory valuation due to Elpida Memory which is under bankruptcy protection under the -72 Corporate Rehabilitation Law Special Losses and Profits Loss on valuation of investment securities -49 Impairment Loss (Sanei Hy
Slide 10: Agenda
Agenda 1 FY2011 Results 2 FY2012 Outlook 3 Mid-term Business Strategy 10
Slide 11: FY2012 (Outlook) Highlights
FY2012 (Outlook) Highlights Since customer investment for testers has been completed, tester sales is expected to be half Overall profit is expected to decline but all the business except for tester will increase their profits. In order to invigorate mid-term growth, accelerate new business. 11
Slide 12: FY2012 Outlook
FY2012 Outlook 〔mil. yen〕 Sanei IT Innotech ACCESS Consolidated FY2011 YoY Hytechs Net Sales 20,000 2,500 3,200 25,500 25,181 1% Gross Profit 4,200 500 1,050 5,850 6,401 -9% (21.0%) (20.0%) (32.8%) (22.9%) (25.4%) Operating 700 200 280 1,150 1,554 -26% P r o f i t (3.5%) (8.0%) (8.8%) (4.5%) (6.2%)
Slide 13: FY2012 Outlook: Semiconductor Design Business
FY2012 Outlook: Semiconductor Design Business Sales EDA Tester ASIC Design Consignment (Sanei Hytechs) 〔mil. yen〕 15,000 13,687 2,440 11,700 265 10,000 2,500 5,414 900 2,300 5,000 5,568 6,000 4,371 3,400 0 FY2011 FY2012 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〕 15,000 13,800 11,493 3,200 10,000 2,976 5,300 3,679 5,000 4,838 5,300 2,030 2,450 0 FY2011 FY2012 Gross Profit 14
Slide 15: Estimated Dividends
Estimated Dividend s Dividend 1H 2H FY Payout Ratio FY2011 7 yen 7 yen 14 yen 33％ FY2012 (Est) 7 yen 7 yen 14yen 35％ Our dividend payout ratio policy is changed to be more than 30% from 25% in a consolidated basis. 15
Slide 16: Agenda
Agenda 1 FY2011 Results 2 FY2012 Outlook 3 Mid-term Business Strategy 16
Slide 17: Goal: FY2016 40B Yen of Sales and 3.2B Yen of Operating Profit
Goal：FY2016 40B Yen of Sales and 3.2B Yen of Operating Profit Current Sales New Sales Operating Profit (goal) Operating Pfofit(current) (Sales: 100 mil. yen) (Operating Profit：100 mil. yen) 500 35 30 400 25 300 20 200 15 10 100 5 0 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 17
Slide 18: Innotech Mid-term Slogan: Achieving "3Gs"
Innotech Mid-term Slogan：Achieving “3Gs” Transforming to a “G”lobally-renowned EDS Company Stronger “G”roup management Pursuit of “G”rowth in every aspect; technical evolution, business growth 18
Slide 19: Transforming to a Globally-renowned EDS Company
1. Transforming to a Globally-renowned EDS Company Now Future focus on “3Ms” Semiconductor Providing software and services Products Design 商品 Electronic And Innotech proprietary Components services with higher Margins Focus on growing Markets; Japanese Customers 市場 Companies expansion to Chinese and
Slide 20: Stronger "G"roup management
2. Stronger “G”roup management Acceleration in actively participating in new business domains, such as JV activities Acceleration in strengthening engineering skills by M&A Acceleration in decision making and strategy building processes 20
Slide 21: Pursuit of Growth: Leveraging Intel
3.Pursuit of Growth: ①Leveraging Intel Market Needs Digital Signage Medical Reduced workload FA Accelerated TAT Cost reduction MFP Quality assurance/reliability Robotics Smaller footprint Car Navigation Technical Support SSD Intel Authorized OS/Software Distributor Internally- developed board 21
Slide 22: Pursuit of Growth: EDA-related area
3.Pursuit of Growth: ②EDA-related area Semiconductor Design Increase competitiveness Collaboration with ARM/TSMC New area (including Overseas Heat Analysis Electro-magnetic Simulation Analysis Service Electromagnetic Expansion of field Analysis complementary tool business Innotech Initiative
Slide 23: Pursuit of Growth: New deployment of testers
3.Pursuit of Growth: ③ 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 23
Slide 24: Pursuit of Growth: Smart Home
3.Pursuit of Growth: ④Smart Home receiver receiver 4x3 HEMS Switch Smart meter receiver Blu-Ray GAME Echonet Lite Display Media Player PC Cloud NAS Router Leveraging the ITA’s software development expertise, Innotech collaborated with overseas companies to jointly develop a Smart Home system which u
Slide 25: Pursuit of Growth: Design Service
3.Pursuit of Growth: ⑤Design Service Value Needs Cost reduction Enhancement of functions High performance Long-term commitment Planning Design ・ Sales・Support Manufacturing Contributing to customers’ Solution for enhancing growth by combining our customers’competitiveness resources with Asian skills
Slide 26: 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