Slide 1: FY2021 Financial Results
INNOTECH CORPORATION FY2021 Financial Results May 13, 2022 1
Slide 2: Agenda
Agenda 1 FY2021 Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 2
Slide 3: FY2021 Highlights
FY2021 Highlights Consolidated Operating Profit increased by 32.3% YoY. Consolidated Net Profit renewed the record highest figure. INNOTECH substantially increased its revenue and profit mainly by its robust tester business. Semiconductor Design-related Business remained strong as well. Negative imp
Slide 4: FY2021 Actual
FY2021 Actual Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access Technology Technologies YoY Year FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 Net Sales 14,780 17,218 3,550 3,880 4,669 4,274 3,421 3,233 5,563 7,73
Slide 5: FY2021 Test Solution Business
F Y 2 0 2 1 Te s t S o l u t i o n B u s i n e s s 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 16,000 6,000 5,377 12,000 4,143 4,500 8,000 3,000 Sales 売上 14,447 売上総利益 Gross Profit 10,641 4,000 1,500 0 0 FY2020 21年/3月期 22年/3月期 FY2021 5
Slide 6: Test Solution Business
Te s t S o l u t i o n B u s i n e s s Testers Achieved the record highest results by substantial increase of revenue due to robust sales of testers for NAND flash memory products and business in the Chinese market. STAr Revenue and profit increased as the demands for Taiwanese and Chinese markets r
Slide 7: FY2021 Semiconductor Design-related Business
FY2021 Semiconductor Design-related Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,000 2,569 2,647 12,000 2,400 9,000 1,800 Sales 売上 売上総利益 Gross 6,000 12,429 1,200 Profit 11,416 3,000 600 0 0 21年/3月期 22年/3月期 FY2020 FY2021 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business ＥＤＡ Revenue increased by stable growth of sales as the demand increased, such as by the larger-amount renewals of subscription contracts and design-in of IP cores in the design projects. Sanei Maintained high operation rate and substantially surpassed the busine
Slide 9: FY2021 System Service Business
FY2021 System Service Business 12,000 3,600 3,242 3,184 10,000 3,000 8,000 2,400 6,000 1,800 Sales 売上 10,479 10,360 Gross 売上総利益 Profit 4,000 1,200 2,000 600 0 0 21年/3月期 22年/3月期 FY2020 FY2021 9
Slide 10: System Service Business
Sy s t e m S e r v i c e B u s i n e s s Embedded System Revenue increased by supporting increased demands for internally- developed products, successfully coping with the supply shortage of parts and components by coordination with suppliers, design changes and so on. IT Access While the cloud sett
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income 〔mil. yen〕 FY2020 FY2021 Research & Development 1,379 1,644 Depreciation 993 1,058 Amortization of Goodwill 250 230 Major Items of Non-operating Expenses and Income Subsidy Income 159 149 Real Estate Rent Income 475 456 Related Expenses for Real E
Slide 12: Cash Flow
Cash Flow FY2020 FY2021 Profit Before Income Taxes 2,458 2,976 Depreciation and Amortization of Goodwill 1,244 1,289 Working Capital and Others -2,865 -1,524 Cash Flow from Operating Activities 836 2,741 Purchase of Fixed Assets -1,039 -1,278 Purchase of Long-term Prepaid Expenses -134 -215 Purchase
Slide 13: Agenda
Agenda 1 FY2021 Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 13
Slide 14: FY2022 Highlights
FY2022 Highlights Consolidated Net Sales increase by 4.7% YoY; Consolidated Operating Profit increase by 2.5% YoY. INNOTECH profit will decrease due to reactionary fall in demand for testers but other businesses including those of subsidiaries are expected to contribute to revenue and profit increas
Slide 15: FY2022 Estimate
FY2022 Estimate [mil. yen] Sanei IT GAIO STAr Consoli FY2020 INNOTECH REGULUS MoDeCH YoY Hytechs ACCESS TECHNOLOGY Technologies -dated Actual Net Sales 17,500 3,650 5,000 3,650 8,300 800 300 39,000 37,238 4.7% Gross 4,550 950 1,150 1,450 3,600 200 200 12,100 11,219 Profit 7.8% (26.0%) (26.0%) (23.0%
Slide 16: Coping with Supply Shortage and Extreme Price Increase of Parts and Components
Coping with Supply Shortage and Extreme Price Increase of Parts and Components Our Efforts to Counter Supply Shortage Keep the impact minimum by making advance orders, finding new vendors, and considering replacing parts for internally-developed products from early stage. Design was changed for
Slide 17: FY2022 Outlook: Test Solution Business
FY2022 Outlook: Te s t S o l u t i o n B u s i n e s s 16,000 6,000 5,750 5,377 12,000 4,500 8,000 3,000 Sales 売上 14,447 14,600 Gross 売上総利益 Profit 4,000 1,500 0 0 22年/3月期 FY2021 FY2022 23年/3月期 (Estimate) 17
Slide 18: Test Solution Business
Te s t S o l u t i o n B u s i n e s s Testers Strong sales to the domestic market will be maintained at about the same level as FY2021 but revenue is expected to decline YoY due to uncertainties of businesses for China. STAr Revenue and profit are expected to increase as the MEMS probe card busines
Slide 19: FY2022 Outlook: Semiconductor Design-related Business
FY2022 Outlook: Semiconductor Design-related Business 15,000 3,000 2,750 2,647 12,000 2,400 9,000 1,800 Sales 売上 6,000 12,429 12,700 1,200 Gross 売上総利益 Profit 3,000 600 0 0 FY2021 22年/3月期 FY2022 23年/3月期 (Estimate) 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business ＥＤＡ Plan to increase revenue and profit by obtaining additional deals and cultivating new customers in existing businesses. Sanei Profit increase YoY is expected as there is no more temporary expenses related to employees’ retirement benefit, while overseas busi
Slide 21: FY2022 Outlook: System Service Business
FY2022 Outlook: System Service Business 3,600 12,000 3,600 3,184 10,000 3,000 8,000 2,400 Sales 売上 6,000 11,700 1,800 Gross 売上総利益 10,360 Profit 4,000 1,200 2,000 600 0 0 FY2021 22年/3月期 FY2022 23年/3月期 21 (Estimate)
Slide 22: System Service Business
Sy s t e m S e r v i c e B u s i n e s s Embedded System Customer demand is high. Aim to achieve growth in revenue and profit through appropriate production planning while supply shortage of parts and components will continue. IT Access Increase in revenue and profit is estimated. Subscription reven
Slide 23: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2021 30 yen 35 yen 65 yen 38.5% FY2022 (Outlook) 35 yen 35 yen 70 yen 54.0% We intend our consolidated divided payout ratio not to be less than 30%. Our goal is to maintain around 50% level as long as there is no sudden change i
Slide 24: Agenda
Agenda 1 FY2021 Actual 2 FY2022 Outlook 3 M i d -Te r m a n d L o n g -Te r m S t ra t e g y 24
Slide 25: Mid-Term Management Plan Overview
Mid-Term Management Plan Overview (Announced in February 2019) (Background) • Changes in the industry environment • Active overseas expansion and investment • Improvement of capital efficiency in the INNOTECH Group (Five Strategies) • Expansion of test solution business • Increase sales of internall
Slide 26: ROE/ROIC Trends
ROE/ROIC Trends （％） ROE （％） ROIC 12.0 8.0 10.0 10.4 7.0 6.7 6.0 5.6 8.0 7.8 6.6 5.0 4.7 6.0 5.8 4.0 4.5 3.0 3.3 4.0 3.0 2.0 2.0 1.0 0.0 0.0 2017 2018 2019 2020 2021 YEAR 2017 2018 2019 2020 2021 YEAR ※Invested Capital＝Shareholders’ Equity＋Interest-bearing Debt 26
Slide 27: Trends of R&D Expenses/Ratio of R&D Expenses to Sales
Trends of R&D Expenses/Ratio of R&D Expenses to Sales 〔mil. yen〕 2,500 6.0% 5.2% 5.0% 2,000 4.4% 4.2% 4.0% 3.6% 4.0% 1,500 3.3% 3.0% 1,000 2,023 1,644 2.0% 1,379 1,236 500 1,079 950 1.0% 0 0.0% 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 2020年度 FY2020 2021年度 2022年度（予) FY2021 FY2022(Estimate) 27 連結 R&D
Slide 28: INNOTECH Group Investment Status for Development: Testers, STAr
INNOTECH Group Investment Status for Development Testers From FY2017: Development of CIS testers has started as new products. From FY2019: Development of SSD testers has started. From FY2021: In addition to CIS and SSD testers, development of new testers for NAND flash memory products and mass
Slide 29: Investment Status for Development: Embedded Systems, IT ACCESS
INNOTECH Group Investment Status for Development Embedded Systems Since FY2020, focusing on development of embedded boards with new-model CPUs and edge computing. Jointly developing AI facial recognition service utilizing edge computing for industrial equipment. IT ACCESS In FY2017, sales of s
Slide 30: Investment Status for Development: GAIO TECHNOLOGY, REGULUS
INNOTECH Group Investment Status for Development GAIO TECHNOLOGY Since FY2017, new product development has been started in the areas outside of its main tools as well. In FY2020, large scale investment was made to develop new tools supporting C++/Linux. In FY2022, new features are being added
Slide 31: Deploying cutting-edge technology to the video streaming service market
Deploying cutting-edge technology to the video streaming service market As the demand and competition soar in the video streaming service industry with the prolonged Covid pandemic, providing cutting-edge software solutions developed overseas to enhance the Quality of Experience and to automate an
Slide 32: INNOTECH Efforts on ESG and SDGs
INNOTECH Efforts on ESG and SDGs: identify the materiality and aim for continuous growth of the corporate value Materiality Key Theme Efforts on SDGs ・Securing and nurturing human resources, Knowledge management Human Capital ・Diversity & Inclusion Management ・Enhancing employees motivations ・Pursui
Slide 33: Introducing ESOP and RS for Employees
Introducing ESOP and RS for Employees At the Board of Directors’ meeting held on May 12, 2022, it was resolved that INNOTECH would introduce the employee share ownership plan (J-ESOP) and the restricted shares (RS) compensation as incentives to employees. As these plans are introduced, the compa
Slide 34: APPENDIX
Ae CORPORATION APPENDIX
Slide 35: EBITDA Trends
EBITDA Trends [mil. yen] 4,500 EBITDA 4,000 Operating 営業利益 4,298 4,010 3,500 Profit 3,000 3,731 3,102 2,650 2,500 3,233 2,585 2,000 1,955 1,954 1,500 1,670 1,000 500 0 FY2018 19年3月期 FY2019 20年3月期 FY2020 21年3月期 FY2021 22年3月期 FY2022 23年3月期（予） (Estimate) （※） EBITDA= Earnings before interest, tax, depre
Slide 36: Trends: Ratio of Internally-developed Products
Trends: Ratio of Internally-developed Products Sales: (mil. yen) （％） 73.3 73.1 70.0 50,000 71.2 69.6 68.9 60.0 54.6 50.6 40,000 49.8 47.4 45.9 50.0 10,487 9,955 30,000 40.0 9,364 9,059 9,680 6,940 7,310 30.0 20,000 6,975 1,692 1,740 6,624 7,179 1,486 20.0 1,455 1,411 10,000 18,651 19,463 12,891 14,7
Slide 37: TSR (Total Shareholders Return) Trends
TSR (Total Shareholders Return) Trends 1800 238% 250% 220% 1500 193% 225 160 200% 30 1200 153% 143% 150% 70 900 110 1384 100% 1274 1328 600 965 860 50% 300 0 0% 2017年度 FY2017 2018年度 FY2018 2019年度 FY2019 2020年度 FY2020 2021年度 FY2021 株価 Share 配当累計 Cumulative 株主総利回り TSR (*) Price Dividends 37 (*) (Share
Slide 38: 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