Innotech Corporation · TSE:9880
Innotech — H1 FY2024 Earnings Presentation
33 slides from Innotech's earnings presentation, Nov 8, 2024
Slide 1: INNOTECH Corporation FY2024 1st Half Financial Results
INNOTECH CORPORATION FY2024 1st Half Financial Results November 8, 2024
Slide 2: Agenda
1 FY2024 1H Actual 2 FY2024 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
Slide 3: FY2024 1H Highlights
FY2024 1H Highlights Consolidated net sales increased by 6.9％ YoY; Consolidated operating profit increased by 5.2％ YoY Domestic Tester Business remained flat due to slow demand recovery of testers for NAND flash memory products. Profit of Semiconductor Design-related Business slightly declined YoY w
Slide 4: FY2024 1H Actual
FY2024 1H Actual Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access TECHNOLOGY Technologies YoY FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 6,826 7,4
Slide 5: FY2024 1H Test Solution Business
FY2024 1H T est S olution Business [Sales: mil. Yen] [Gross Profit: mil. yen] 9,000 3,000 2,647 2,488 7,500 2,500 6,000 2,000 4,500 1,500 売上 売上総利益 6,916 7,053 3,000 1,000 1,500 500 0 0 FY2023 1H 24年/3月期 2Q FY2024 1H 25年/3月期 2Q (＊) Rounded down to nearest 1 million yen 5
Slide 6: Test Solution Business
Test Solution Business Testers Sales of decoder boards for image sensors was as forecasted; sales of testers for NAND flash memory products remained flat as the demand did not recover. STAr Due to the exchange rate fluctuations from the second half of FY2023, sales seems to have increased based on t
Slide 7: FY2024 1H Semiconductor Design-related Business
FY2024 1H Semiconductor Design-related Business [Sales: mil. Yen] [Gross Profit: mil. yen] 9,000 1,800 1,499 1,528 7,500 1,500 6,000 1,200 4,500 900 売上 売上総利益 6,364 6,622 3,000 600 1,500 300 0 0 24年/3月期 2Q 25年/3月期 2Q FY2023 1H FY2024 1H (＊) Rounded down to nearest 1 million yen 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue increased due to larger-amount contract renewals for the core business, new customer wins and the increase of term license orders continued from the second half of last year. Sanei Hytechs Operation rate for the semiconductor business recovered in th
Slide 9: FY2024 1H System Service Business
FY2024 1H System Service Business [Sales: mil. Yen] [Gross Profit: mil. yen] 9,000 2,700 2,341 7,500 2,250 1,852 6,000 1,800 4,500 1,350 売上 売上総利益 7,132 3,000 6,189 900 1,500 450 0 0 FY2023 1H2Q 24年/3月期 FY2024 1H 25年/3月期 2Q (＊) Rounded down to nearest 1 million yen 9
Slide 10: System Service Business
System Service Business Embedded System Revenue increased as the demand and sales increased for INNOTECH internally-developed products for the infrastructure and industrial machinery applications and the deliveries were pulled in. IT Access Shipment of settlement terminals for vending machines remai
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income 〔mil. yen〕 FY2023 1H FY2024 1H Research & Development 1,107 1,183 Depreciation 634 679 Amortization of Goodwill 118 115 Major Items of Non-operating Expenses and Income Real Estate Rent Income 234 247 Related Expenses for Real Estate Rent 188 193
Slide 12: Cash Flow
Cash Flow 〔mil. yen〕 FY2023 1H FY2024 1H Profit Before Income Taxes 1,208 751 Depreciation and Amortization of Goodwill 752 794 Working Capital and Others -1,316 -1,373 Cash Flow from Operating Activities 644 172 Purchase of Fixed Assets -565 -564 Purchase of Long-term Prepaid Expenses -27 -142 Purc
Slide 13: FY2024 Outlook
1 FY2024 1H Actual 2 FY2024 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
Slide 14: FY2024 Highlights
FY2024 Highlights Test Solution Business will decline substantially for the full year of FY2024; need for a downward revision of the consolidated results from the initial estimate INNOTECH on a non-consolidated basis expects its revenue to increase for the EDA and embedded system businesses while de
Slide 15: Revision of Earnings Forecast
Revision of Earnings Forecast (mil. yen) Profit Earnings per Net Sales Operating Profit Ordinary Profit Attributable to Share Owners of Parent Previous Forecast（A） 43,500 2,500 2,550 1,700 126.32 Current Forecast（B） 41,500 1,800 1,800 1,350 100.30 Difference（B－A） -2,000 -700 -750 -350 － Change（ % ）
Slide 16: FY2024 Estimate
FY2024 Estimate [mil. yen] Sanei GAIO STAr Consoli FY2023 INNOTECH IT Access TECHNOLOGY Technologies REGULUS MoDeCH YoY Hytechs -dated Actual Net Sales 14,000 3,900 5,800 5,000 12,300 850 350 41,500 41,358 0.3% 3,410 1,080 1,540 1,900 3,950 270 180 12,200 13,160 Gross -7.3% Profit (24.4%) (27.7%) (2
Slide 17: FY2024 Outlook: Test Solution Business
FY2024 Outlook: Test Solution Business [Sales: mil. Yen] [Gross Profit: mil. yen] 21,000 6,174 6,600 17,500 5,500 4,600 14,000 4,400 10,500 3,300 売上 売上総利益 15,885 7,000 13,830 2,200 3,500 1,100 0 0 FY2023 24年/3月期 FY2024 25年/3月期 (＊) Rounded down to nearest 1 million yen (Estimate) 17
Slide 18: Test Solution Business
Test Solution Business Testers Timing of when the domestic demand for testers for NAND flash memory products will come back is unclear; counting on overseas demands and business wins of decoder boards for image sensors. STAr Expecting to turn black for the full year but will not reach the same level
Slide 19: FY2024 Outlook: Semiconductor Design-related Business
FY2024 Outlook: Semiconductor Design-related Business [Sales: mil. Yen] [Gross Profit: mil. yen] 18,000 3,600 3,000 2,905 15,000 3,000 12,000 2,400 9,000 1,800 売上 売上総利益 12,884 13,150 6,000 1,200 3,000 600 0 0 FY2023 24年/3月期 FY2024 25年/3月期 (Estimate) (＊) Rounded down to nearest 1 million yen 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Estimated to increase revenue as the orders accumulate for the core business in a solid pace continued from the first half. Sanei Hytechs Business may slow down and revenue will decrease slightly due to a slow recovery of the semiconductor business but expec
Slide 21: FY2024 Outlook: System Service Business
FY2024 Outlook: System Service Business [Sales: mil. Yen] [Gross Profit: mil. Yen] 18,000 4,600 4,800 4,080 15,000 4,000 12,000 3,200 売上 9,000 2,400 売上総利益 14,520 6,000 12,589 1,600 3,000 800 0 0 FY2023 24年/3月期 FY2024 25年/3月期 (＊) Rounded down to nearest 1 million yen (Estimate) 21
Slide 22: System Service Business
System Service Business Embedded System Sales will decline as a result of pulled-in orders in the first half but business will remain stable mainly for INNOTECH internally-developed products; revenue will increase and exceed the initial estimate. IT Access Sales forecast is unclear for the settlemen
Slide 23: Business Results Trends
Business Results Trends Operating Profit Sales 〔mil. yen〕 〔mil. yen〕 5,000 売上高 Sales 50,000 Operating 営業利益 Profit 4,000 41,358 41,500 40,000 38,629 37,238 3,000 32,536 30,000 2,585 2,319 2,474 2,000 20,000 1,954 1,800 1,000 10,000 0 0 FY2020 FY2021 FY2022 FY2023 FY2024 (＊) Figures on the top of the
Slide 24: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2023 35 35 70 63.3% FY2024 (Outlook) 35 35 70 69.8% 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 in our financial results.
Slide 25: Mid-Term and Long-Term Strategy
1 FY2024 1H Actual 2 FY2024 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
Slide 26: Mid-Term Management Plan Overview (FY2024-FY2026)
Mid-Term Management Plan Overview (FY2024-FY2026) Basic Direction Both profitability (e.g.,ROE) and growth (PER) must improve to increase share price and PBR Basic Stragey (Enhance ROE, Reduce Cost of Capital, and Increase Expected Growth Rate) Expanding Operating Profit ・Grow and improve profitabil
Slide 27: Test Solution Business: Expanding product line-up
Test Solution Business Expanding product line-up in addition to Products for NAND Flash Memory as a core; Increase solutions for other devices such as CMOS image sensors; Tester Provide test peripheral solutions which require special technologies, such as Business burn-in solutions; and Aim to grow
Slide 28: R&D Investment in the Next-generation Devices Testers
R&D Investment in the Next-generation Devices Testers FY24 FY25 MEMORY Expand Concurrent Multi-layer Measurement Function Burn-in High-efficiency WLBI Test System Enhance efficiency of programs Develop New Tester Platform Increase of Speed Expand DRAM-support Function CIS High-speed IF Capture Board
Slide 29: Reorganization of the Product Portfolio
Spinning Off the Function Probe Card Business; Reorganization of the Product Portfolio STAr function probe card business was spun off and transferred to XingR Group; Invest in the new company (XingR CHINA) jointly with multiple partners including major customers; INNOTECH invests 14% and made XingR
Slide 30: Partnering with Seafarix whose main product is AppSupport
Partnering with Seafarix whose main product is “AppSupport” What is AppSupport? • AppSupport is a container solution which enables Android applications to operate on Linux • Possible to design by the user company’s own UI regardless of the platforms; memory consumption is also low Background of the
Slide 31: Financial Strategy (FY2024-2026)
Financial Strategy （FY2024～2026） （100 million yen） INNOTECH Strategy for Growth and Capital Allocation 120 Focusing On Shareholder Returns Maximum 0.5 times of D/E ratio in order to maintain financial soundness and to take Debt Capacity Possible Range of an agile investment approach for growth New I
Slide 32: Acquisition of Treasury Stocks
Financial Strategy (FY2024-FY2026) Acquisition of Treasury Stocks INNOTECH resolved matters related to acquisition of treasury shares at the board meeting held on November 8, 2024. Purpose of Acquisition • Enhance the capital efficiency and reduce the cost of capital, taking the ROE, financial struc
Slide 33: 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