Slide 1: FY2016 1st Half Financial Results
FY2016 1st Half Financial Results November 9, 2016 1
Slide 2: Agenda
Agenda 1 FY2016 1H Actual 2 FY2016 Outlook 3 Mid-range Management Plan 2
Slide 3: FY2016 1H Highlights
FY2016 1H Highlights Achieved the same level of profit as the first half of FY2015 Same level of sales was maintained for tester business because of increased demand for image sensors Strong results from subsidiaries, GAIO and Sanei Consolidated sales decreased due to withdrawal from the device busi
Slide 4: FY2016 1H Actual
FY2016 1H Actual [mi. yen] Sanei IT GAIO INNOTECH STAr Regulus Consolidated YoY Hytechs Access TECHNOLOGY FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 Fiscal Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 9,624 11,349 1,631 1,431 930 1,4
Slide 5: FY2016 1H Design and Development Solution Business
FY2016 1H Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 10,000 2,415 2,500 2,349 1,426 2,000 1,626 188 1,441 189 913 1,500 三栄ハイテックス Sanei Hytechs レグラス Regulus 5,000 1,076 1,059 アイティアクセス IT Access 組込システム Embedded System 1,117 1,298 1,000 ガイオテクノロジー GAIO TECHNOLOGY
Slide 6: Design and Development Solution Business
Design and Development Solution Business EDA Sales declined compared to FY2015 first half as expected. GAIO Increased sales and profit for tools and verification services; Business remains strong. Embedded Systems Part of development projects was pushed out to the second half. IT ACCESS Business was
Slide 7: FY2016 1H Product Solution Business
FY2016 1H Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 10,000 2,500 1,937 2,002 2,000 1,490 344 1,500 IoT and IoT他 Others デバイス Devices 5,000 2,467 2,241 HDD HDD STAｒ 1,000 STAr テスター Tester 1,325 1,364 売上総利益 Gross Profit 500 2,598 2,514 0 0 15年9月期 FY2015 1H 16年9月期 FY2016 1H To
Slide 8: Product Solution Business
Product Solution Business Testers Demand increased for image sensors; demand for NAND flash memory declined compared to the first half of FY2015 and the decline was sharper than expected. STAr Probe card sales was strong. HDD Revenue decreased compared to the first half of FY2015 but almost 50% of t
Slide 9: Major Items in the Non-Operating and Extraordinary Gain and Loss
Major Items in the Non-Operating and Extraordinary Gain and Loss [mil. Yen] Non-operating Expenses and Income Items Real Estate Rent 230 Rent Expenses on Real Estates -167 Foreign Exchange Losses -34 Extraordinary Loss and Income Items Loss on Revaluation of Investment in Securities -25 （※） Rounded
Slide 10: Cash Flow
Cash Flow [mil. yen] FY2015 1H FY2016 1H Income Before Income Taxes 1,006 887 Depreciation and Amortization of Goodwill 381 367 Working Capital and Others - 2,929 1,019 Cash Flows from Operating Activities - 1,540 2,274 Purchase of Investment Securities - 273 - 102 Payments of Deposits Paid for Purc
Slide 11: Acquisition of JSC Co.,Ltd. (Sanei Hytechs)
Acquisition of JSC Co.,Ltd. (Sanei Hytechs) Expansion of embedded software business and securing engineers in the central part of Japan Strengthen ties with automotive companies, such as large-scale automotive parts manufacturers 【Corporate Overview of JSC Co.,Ltd.】 Founded in： March, 1993 Sales： 26
Slide 12: Agenda
Agenda 1 FY2016 1H Actual 2 FY2016 Outlook 3 Mid-range Management Plan 12
Slide 13: FY2016 Highlights (Estimate)
FY2016 Highlights (Estimate) Originally estimated level of financial results for the year will be maintained. Tester business for NAND flash memory will increase next year. Impact of EDA customer transfer will be apparent in the second half. Contribution from new businesses will be 13 reflected to t
Slide 14: FY2016 Estimate
FY2016 Estimate [mil. yen] Sanei IT GAIO Consolid INNOTECH STAｒ Regulus FY2015 YoY Hytechs ACCESS TECHNOLOGY ated Net Sales 18,100 3,350 2,050 2,500 3,300 600 29,500 31,243 -6% 4,100 720 420 1,200 1,360 240 8,090 7,957 Gross Profit 2% (22.7%) (21.5%) (20.5%) (48.0%) (41.2%) (40.0%) (27.4%) (25.5%) 1
Slide 15: FY2016 Outlook: Design and Development Solution Business
FY2016 Outlook: Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 20,000 4,719 4,780 5,000 2,971 3,350 4,000 15,000 321 500 2,376 2,050 Sanei Hytechs 三栄ハイテックス 3,000 レグラス Regulus 10,000 2,293 2,400 アイティアクセス IT Access 組込システム Embedded System 2,277 2,500 2,000 ガイオテクノロジー
Slide 16: FY2016 Outlook: Product Solution Business
FY2016 Outlook: Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,237 3,310 3,500 3,000 2,585 1,000 2,500 10,000 IoT and IoT他 Others 4,943 4,500 2,000 Devices デバイス HDD HDD 1,500 STAr STAｒ Tester テスター 5,000 2,640 3,300 Gross Profit 売上総利益 1,000 3,602 500 3,300 0 0 16年3月期 FY
Slide 17: EBITDA Trends
EBITDA Trends [mil. yen] 2,500 EBITDA 2H EBITDA下期 EBITDA 1H EBITDA上期 1,979 2,000 営業利益 Operating Profit 1,715 1,577 590 1,447 1,500 1,268 460 641 643 1,000 404 1,095 1,012 850 761 722 1,389 1,255 500 863 936 804 0 FY2012 13年3月期 FY2012 14年3月期 FY2013 15年3月期 FY2014 16年3月期 FY2015 17年3月期 FY2016 （※） EBITDA
Slide 18: Dividends
Dividends Dividend As of As of Full Year Payout 1H-end FY-end Ratio FY2015 7 yen 7 yen 14 yen 33.2% FY2016 7 yen 7 yen 14 yen 41.0% (Outlook) Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. 18
Slide 19: Agenda
Agenda 1 2016 1H Actual 2 FY2016 Outlook 3 Mid-range Management Plan 19
Slide 20: Overview: Mid-range Management Plan
Overview: Mid-range Management Plan (Announced in November 2014) （Background） Taking the environmental changes in the industry, M&A, and execution of structural reform into consideration （Strategy） Focus on 4 growing areas (Test, Model-Based Verification, Image Processing, Embedded Solutions ) A
Slide 21: Our Endeavors to Successfully Achieve the Mid-range Management Plan
Our Endeavors to Successfully Achieve the Mid-range Management Plan Early renewal of Agreement 〔Sales: mil. yen〕 with Cadence 〔Operating Profit: mil. yen〕 45,000 Focus on R&D 3,500 40,000 Sales 売上 Aggravated 40,000 3,000 environment for the 35,000 Operating industry, earthquake 3,000 営業利益 Profit 35,
Slide 22: Expansion of Tester Business
Expansion of Tester Business Overseas Started to ship testers for image sensors to China Product & Technology Japan Started to ship testers for 3D-NAND Expecting to expand from 2017 Started to ship handlers for MEMS sensors 22 MEMS：Micro Electro Mechanical Systems
Slide 23: GAIO TECHNOLOGY: Measures for Growth
GAIO TECHNOLOGY: Measures for Growth Challenges for Growth Measures Hiring of the Extending the Engineering Project Manager who will be the key Service engineer (on-going) Increase of Profit by the Obtaining certification of the New Product, MC-Verifier functional safety standard, ISO26262/IEC61508
Slide 24: Accelerating the Image Processing Solution
Accelerating the Image Processing Solution Prototype to Mass Production Expanding the image processing library AI Eiger →Deep Learning/AI Implementation Enhancement of Branding →Active participation into exhibitions AI McKinley Strengthen the Quality Control and Cost Control Scheme Horizontal expans
Slide 25: Embedded Solutions
Embedded Solutions Accelerated support for the next generation Gateway ‐Abnormality detection solution by the Edge computing ① data collection ② EMBOX® ③ Cloud/service (PC Gateway) ●illuminance sensor ●data analysis ●image (camera) ●Edge Processing ●machine learning ●acceleration sensor (Machine lea
Slide 26: New Business 1: FinTech E-money Payment Service (IT Access)
New Business ① FinTech E-money Payment Service (IT Access) Realization of multi payment service as well as low- cost payment service for E-money LTE E-money providers Cloud (sector) Partner Company Retailers and Retail service Transportation providers Providing terminals, Non-face-to-face Independen
Slide 27: New Business 2: Smart Skin Care (IT Access)
New Business ② Smart Skin Care® (IT Access) Developed an in-house product leveraging its development consignment know-how Starting to sell from January 2017 Jointly developed with Scalar Corporation; Professional-quality skin sensor Professional quality skin check and manage the customer data in the
Slide 28: 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