Innotech Corporation · TSE:9880
Innotech — 1H FY2011 Earnings Presentation
23 slides from Innotech's earnings presentation, Nov 10, 2011
Slide 1: FY 2011 1st Half Financial Results
November 10, 2011 FY 2011 1st Half Financial Results
Slide 2: Agenda
Agenda 1 FY2011 1H Results 2 FY2011 Outlook 3 Future Steps 2
Slide 3: FY2011 1H Highlights
FY2011 1H Highlights 43% Increase in Ordinary Income semiconductor design business increased both its sales and profit Electronic Component business decreased its sales due to weak demand for TVs and other related products Subsidiaries’ businesses are slow but Innotech business itself is strong cove
Slide 4: FY2011 1H Results
FY2011 1H Results 〔mil. yen〕 Sanei Innotech IT Access Consolidated YoY Hytechs FY2011 1H FY2010 1H FY2011 1H FY2010 1H FY2011 1H FY2010 1H FY2011 1H FY2010 1H Net Sales 10,343 9,515 1,199 1,325 1,647 2,081 13,098 12,923 1% G r o s s 2,583 1,866 204 353 478 636 3,286 2,932 12% P r o f i t (25.0%) (19
Slide 5: FY2011 1H Semiconductor Design Business
FY2011 1H Semiconductor Design Business 売 上高 Sales EDA テスター Tester ASIC 受託設計（三栄ﾊｲﾃｯｸｽ） Design Consignment (Sanei Hytechs) 〔mil. yen〕 6,456 1,183 5,002 5,000 163 1,299 81 2,482 579 3,043 2,628 1,579 2,173 0 10年/9月期 2010 1H 11年/9月期 2011 1H Gross Profit 5
Slide 6: FY2011 1H Electronic Component Business
FY2011 1H Electronic Component Business Sales Electronic Embedded Software Development Devices (IT Access) 〔mil. yen〕 7,921 6,642 2010 1H 2011 1H Gross 売上総利益 Profit 6
Slide 7: Semiconductor Design Business
Semiconductor Design Business EDA Contracts with large-scale customers are renewed as planned; gain on revenue stably Testers Strong business for flash memory testers driven by the smartphone market ASIC Product portfolio is reviewed; sales increase Sanei Decrease in design consignment orders due to
Slide 8: Electronic Component Business
Electronic Component Business HDD Sales relatively solid with minimum impact of an aftermath of the earthquake Electronic Devices Sales from embedded boards and other devices than key devices covered the substantial decrease in semiconductor business for TVs ITA Prolonged development cycles for desi
Slide 9: Profitability Increase
Profitability Increase 〔％〕 30.0 Gross Profit Rate of past 12 months: 24.4％ Gross Profit Rate increase by 25.1％ 2.4% points Semiconductor Design：increase by 2.1% 22.7 ％ along with a growth of Tester business 20.0 Electronic Component：0.3% decrease due to decline in sales of embedded software Ordinary
Slide 10: Cost reduction effect
Cost reduction effect 〔mil. yen〕 GSA (Excluding personnel costs) 1,400 Fixed costs Variable costs 1,200 1,000 800 600 400 200 0 FY2008 1H FY2008 FY2009 IH FY2009 FY2010 1H FY2010 FY2011 1H 10
Slide 11: Agenda
Agenda 1 FY2011 1H Results 2 FY2011 Outlook 3 Future Steps 11
Slide 12: Highlights of FY2011 Estimate
Highlights of FY2011 Estimate Tester Business is expected to be the driving force due to strong demand for flash memories HDD business may substantially decline due to an aftermath of the earthquake in Japan and flooding in Thailand Increase in profitability regardless of natural disasters and tough
Slide 13: FY2011 Estimate
FY2011 Estimate 〔mil. yen〕 Innotech Sanei Hytechs IT ACCESS Consolidated YoY FY2011 FY2010 FY2011 FY2010 FY2011 FY2010 FY2011 FY2010 Net Sales 21,200 19,211 2,500 2,691 3,400 3,804 26,500 25,882 2% G r o s s 4,840 4,035 560 670 990 1,096 6,480 6,004 8% P r o f i t (22.8%) (21.0%) (22.4%) (24.9%) (29
Slide 14: FY2011 Outlook: Semiconductor Design Business
FY2011 Outlook: Semiconductor Design Business Sales Tester Design Consignment (Sanei Hytechs) 〔mil. yen〕 13,400 10,305 FY 2010 FY 2011 Gross 売上総利益 Profit 14
Slide 15: FY2011 Outlook: Electronic Component Business
FY2011 Outlook: Electronic Component Business Sales Electronic Embedded Software Development Devices (IT Access) 〔mil. yen〕 15,576 13,100 FY 2010 FY 2011 Gross 1H Profit 売上総利益 15
Slide 16: Dividends
Dividends ・Dividends Dividend 1H 2H FY Payout Ratio FY2010 4 yen 8 yen 12 yen 27.3％ FY2011 (Estimate) 7 yen 7 yen 14 yen 25.8％ Our dividend payout ratio is planned to be more than 25% in a consolidated basis. ・Retirement of Treasury Stocks Number of stocks retired: 5,000,000 Date of Retirement: June
Slide 17: Agenda
Agenda 1 FY2011 1H Results 2 FY2011 Outlook 3 Future Steps 17
Slide 18: Progress of Intel Business
Progress of Intel Business June 16-17 Embedded Technology West 2011 ・Exhibited various embedded boards and solutions ・Aggressive business development activities in the Kansai area July 20-22 Board Computer Japan 2011 ・Held an Intel-Innotech Joint Seminar (at the show site) Oct. 7 Innotech Smart TV S
Slide 19: Exhibited Items (Actual)
Exhibited Items (Actual) Atom™ CE4100 + ITAccess Turnkey TX-70 (E600 incorporated) + Android + Instant boot Forum site 「EM-club」 Collaboration with ALTERA LOGIA＝E600 + Cyclone Ⅳ Collaboration with ALTERA 4 screen output by E600 + AG10 19
Slide 20: New Deployment of Test Solutions
New Deployment of Test Solutions Expansion to Flash Wafer-level Testing For Flash Mainly New Customer Development Including Overseas Companies Partnership and M＆A Innotech will achieve stable growth by cultivating new applications and customer base leveraging its expertise in Memory test 20
Slide 21: Cultivating Asian Market
Cultivating Asian Market Steadily developing transactions with local companies INNOMICRO Shanghai Logistics support service and marketing in the Central and Northern China SANEI HYTECHS Chengdu Design Center Technical support service ranging from system development to product design based on the exp
Slide 22: Advanced Service Multi-layer Structure Strategy
Achieving High Growth by Setting the EDS Business as a Core Ordinary 〔mil. yen〕 Profit Aiming to achieve over 25% of Gross Profit Ratio on a continual basis Structure Strategy To a New Growing Phase Advanced Service Innotech Inside New Innotech ODM Company EDS Company Revival Plan Multi-layer Flexib
Slide 23: 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