Slide 1: FY2009 Financial results
May 14, 2010 FY2009 Financial results
Slide 2: Agenda
Agenda 1 FY2009 Results 2 FY2010 Outlook 3 Efforts on EDS Business 1
Slide 3: FY2009 Highlights
FY2009 Highlights Confirmed the financial bottom every quarter; the results exceeded the estimate made in the beginning of the year. Semiconductor Design business: Cadence business was solid, acquiring new customers; Sanei business recovered. Electronic Component business: Device business was strong
Slide 4: Recovery of Profitability at Each Quarter
Recovery of Profitability at Each Quarter 〔mil. yen〕 10,000 10.0% 8,959 9,000 9.0% 7,938 8,000 8.0% 7,375 6,957 7,000 7.0% 6,397 6,000 5,744 5,583 5,554 6.0% 5,000 5.0% 4.9% 5.1% 4,000 4.0% 4.4% 3,000 3.6% 3.0% 3.3% 2,000 2.0% 2.5% 1,000 1.8% 1.0% 1.5% 0 0.0% FY08 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY09 Q1
Slide 5: FY2009 Results
FY2009 Results 〔mil. yen〕 Initial Estimate Actual Results YoY Net Sales 24,500 24,492 0% Semiconductor Design 10,600 10,168 -4% Electronic Components 13,900 14,324 3% Cost of Sales 19,450 19,559 1% Gross Profit 5,050 4,933 -2% Semiconductor Design 2,850 2,695 -5% Electronic Components 2,200 2,238 2%
Slide 6: Profitability by Segment
Profitability by Segment 〔mil. yen〕 Semiconductor Design Electronic Components 7,000 12,000 6,000 10,000 1,420 1,708 1,559 5,000 1,233 8,000 551 551 3,233 1,090 1,574 4,000 480 791 741 391 6,000 1,161 1,095 366 2,071 3,000 58 1,341 1,386 3,442 3,501 3,139 3,410 4,000 2,000 5,752 2,000 4,267 4,003 4,
Slide 7: Thorough Cost Reduction
Thorough Cost Reduction 〔100 mil. yen〕 60 51.2 △16％ 50 43.2 40 28.7 △10％ 30 25.8 20 13.7 △33％ 9.2 10 8.8 △7％ 8.2 0 FY2008 FY2009 Fixed Cost Variable Cost Human Resources Cost 6
Slide 8: Agenda
Agenda 1 FY2009 Results 2 FY2010 Outlook 3 Efforts on EDS Business 7
Slide 9: Highlights of FY2010 Estimate
Highlights of FY2010 Estimate Overall: 87％ increase in operating profit; target to increase net profit by three times Semiconductor Design business: expecting a substantial increase in the tester business driven by the recovery of facility investment in the industry. Electronic Component business :
Slide 10: FY2010 Estimate
FY2010 Estimate 〔mil. yen〕 FY2009 FY2010 (Estimate) YoY Net Sales 24,492 28,500 16% Semiconductor Design 9,854 10,000 1% Electronic Components 14,637 18,500 26% Cost of Sales 19,559 22,750 16% Gross Profit 4,933 5,750 17% Semiconductor Design 2,633 3,150 20% Electronic Components 2,300 2,600 13% SGA
Slide 11: FY2010 Estimate
FY2010 Estimate 〔Sales: mil. yen〕 〔Ordinary Profit：mil. yen〕 16,000 1,600 Net Sales Ordinary Profit 14,000 1,400 16,000 12,000 1,200 10,000 13,355 12,500 1,000 8,000 11,137 800 6,000 600 800 4,000 400 515 2,000 200 300 0 225 0 FY2009 FY2010 1st Half 2nd Half 1st Half (Estimate) 2nd Half 6.0% Ordinar
Slide 12: Profitability Estimate by Segment
Profitability Estimate by Segment 〔mil. yen〕 6,000 12,000 Semiconductor Design Electronic Components 5,000 10,000 1,500 1,233 1,200 4,000 1,090 335 1,200 300 8,000 391 1,574 1,400 3,450 100 800 198 300 3,000 58 1,095 6,000 2,215 2,600 5,650 3,139 3,410 3,000 3,000 1,555 2,000 4,000 4,003 4,195 3,900
Slide 13: Business Trends of Testers
Business Trends of Testers • Large scale investment is officially announced • Orders will start coming in from the 2nd Half • Demands are expected to further increase from FY2011 〔100 mil. yen〕 Annual Sales of Testers 20 15 10 5 0 FY08 FY09 FY10 12
Slide 14: Dividends
Dividends 1H 2H FY FY2009 2 yen 3 yen 5 yen FY2010 （Estimate） 4 yen 6 yen 10 yen Acquiring Treasury Stocks Acquired （FY2009） ：2,704,500 stocks Acquired Amount ：1 billion 196 million yen Total Number of Treasury Stocks ：5,728,728 stocks（24.7％） Total Amount of Acquisition ：2 billion 266 million yen
Slide 15: Agenda
Agenda 1 FY2009 Results 2 FY2010 Outlook 3 Efforts on EDS Business 14
Slide 16: EDS Business Targeted by Innotech
Highlights of FY2010 Estimate EDS Business Targeted by Innotech Strategic Collaboration with Intel Targeting to achieve record-high profit in 3 years 15
Slide 17: EDS Business Targeted by Innotech
EDS Business Targeted by Innotech Product Realization Flow specs, evaluation Determination of Quality Control maintenance Manufacturing Distribution Hardware Mechanical Marketing Software Sales and service, Planning Testing Product design design design design Exterior Traditional EMS Scope of Innote
Slide 18: Shifting to EDS Business Leveraging Synergy Effects of Multiple Businesses
Shifting to EDS Business Leveraging Synergy Effects of Multiple Businesses Sanei/ASIC EDA Tester HDD Board Embedded Software Device intel 17
Slide 19: Strategic Collaboration with Intel
Strategic Collaboration with Intel Cultivate Digital Consumer, Non-PC Medical, and Security Markets Non-PC Market 200 bil. Yen in 2015 PC／Server intel Existing Market New Market 18
Slide 20: Digital TVs Requiring Diversified Capabilities
Digital TVs Requiring Diversified Capabilities Broadband Connection Connection with Digital Cable TVs Connection with High-speed Cell Phone Formats such as LTE and WiMax （From 2012） Nowadays, as TVs evolve with digital technologies, Internet connection capability is becoming indispensable for TV dis
Slide 21: Targeting to Achieve 6% of Ordinary Profit ratio and 60% of Cost Coverage Ratio
Targeting to Achieve 6% of Ordinary Profit ratio and 60% of Cost Coverage Ratio 【Cost coverage ratio】 【Ordinary Profit ratio】 Revival Plan EDS Business 15% 90% 10% 60% 30% 5% Cost coverage ratio Ordinary profit ratio 0% 0% FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 (Estimate) Cos
Slide 22: Enhancing the Operational Efficiency by Expanding the EDS Business
Enhancing the Operational Efficiency by Expanding the EDS Business 【 Total Asset Turnover Ratio】 【GMOA】 30% Revival Plan EDS Business 1.5 20% 1.0 10% 0.5 Total Asset Turnover Ratio GMOA 0.0 0% FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 (Estimate) GMOA(Gross Margin on Asset)= Gros
Slide 23: Targeting to Achieve Record-High Profit
Targeting to Achieve Record-High Profit 〔Sales：100 mil. yen〕 〔Ordinary Profit：100 mil. yen〕 600 60 Net Sales Ordinary Profit 500 50 400 40 300 30 200 20 100 10 0 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 ・・・ FY12 ・・・ (Estimate) Implementing the Revival Plan 22
Slide 24: 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