Innotech Corporation · TSE:9880
Innotech — 1H FY2021 Earnings Presentation
34 slides from Innotech's earnings presentation, Nov 10, 2021
Slide 1: FY2021 1st Half Financial Results
INNOTECH CORPORATION FY2021 1st Half Financial Results Nov 10, 2021 1
Slide 2: Agenda
Agenda 1 FY2021 1H Actual 2 FY2021 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 1H Highlights
FY2021 1H Highlights YoY 3.7 times increase in Consolidated Operating Profit; Consolidated Net Profit was the record highest for the first half figure. INNOTECH substantially increased its revenue and profit mainly by its tester business. All business areas recovered their demands; all subsidiaries
Slide 4: FY2021 1H Consolidated Results by Company
Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access Technology Technologies YoY FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 Year 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H Net Sales 7,058 9,630 1,699 1,858 2,
Slide 5: FY2021 1H Test Solution Business
F Y 2 0 2 1 1 H Te s t S o l u t i o n B u s i n e s s 〔Sales: mil. yen〕 〔売上：百万円〕 Profit: mil. yen〕 〔売上総利益：百万円〕 〔Gross 9,000 2,981 3,000 7,500 2,500 6,000 2,000 1,655 4,500 1,500 Sales 売上 7,689 Gross 売上総利益 Profit 3,000 1,000 4,319 1,500 500 0 0 FY2020 1H2Q 21年/3月期 FY2021 1H 22年/3月期 2Q 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 Strong sales of testers for NAND flash memory products; substantial revenue increase with sales of products for the Chinese market whose orders were received in the FY2020 as well. STAr Major revenue increase as the economic activities in Taiwan and Chi
Slide 7: FY2021 1H Semiconductor Design-related Business
FY2021 1H Semiconductor Design-related Business 7,000 1,500 1,333 6,000 1,212 1,200 5,000 4,000 900 Sales 売上 3,000 6,020 Gross 売上総利益 5,482 600 Profit 2,000 300 1,000 0 0 FY2020 1H 21年/3月期 2Q FY2021 1H 22年/3月期 2Q 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue increase with larger amount renewals of subscription contracts and increase of customer demands for design and verification. Sanei High operation rate with recovery of domestic businesses in Japan; increase in revenue and profit with high-profitabili
Slide 9: FY2021 1H System Service Business
FY2021 1H System Service Business 6,000 1,629 1,800 1,553 5,000 1,500 4,000 1,200 3,000 900 Sales 売上 5,133 5,153 Gross 売上総利益 Profit 2,000 600 1,000 300 0 0 FY2020 1H2Q 21年/3月期 FY2021 1H 22年/3月期 2Q 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 Increase in revenue by supporting order increase for internally-developed products with successful procurement of parts and components. IT Access Decline in revenue and profit for weak shipment for the vending machine applications due to the C
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income 〔mil. yen〕 FY2020 1H FY2021 1H Research & Development 743 721 Depreciation 463 519 Amortization of Goodwill 135 114 Major Items of Non-operating Expenses and Income Subsidy Income 20 109 Real Estate Rent Income 238 231 Related Expenses for Real Es
Slide 12: Cash Flow
Cash Flow FY2020 1H FY2021 1H Profit Before Income Taxes 599 1,960 Depreciation and Amortization of Goodwill 598 633 Working Capital and Others -102 -959 Cash Flow from Operating Activities 1,095 1,634 Purchase of Fixed Assets -518 -709 Purchase of Long-term Prepaid Expenses -23 -74 Purchase of Shar
Slide 13: Agenda
Agenda 1 FY2021 1H Actual 2 FY2021 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: FY2021 Highlights
FY2021 Highlights Upward revision of FY2021 estimate based on the substantial revenue increase in the 1st half; net profit will possibly reach the highest ever. Revenue of tester business will be lower compared to the 1st half but the fiscal year results is expected to exceed the estimate made in th
Slide 15: FY2021 Estimate
FY2021 Estimate [mil. yen] GAIO STAr INNOTEC Sanei IT Consolid FY2020 TECHNOL Technolo REGULUS MoDeCH YoY H Hytechs ACCESS ated Actual OGY gies Net Sales 17,200 3,700 4,500 3,350 6,950 800 350 36,400 32,536 12% 4,850 950 1,000 1,300 2,700 180 150 11,000 9,954 Gross 11% Profit (28.2%) (25.7%) (22.2%)
Slide 16: Continued Impact on the Business Environment
Continued Impact on the Business Environment Impact of the Covid-19 Pandemic on Each Business Area No impact on tester business and semiconductor design-related business. Some business areas are affected due to restraint on investment in railway and medical as well as beverage vending machine. S
Slide 17: FY2021 Outlook: Test Solution Business
FY2021 Outlook: Test Solution Business 15,000 5,350 5,500 12,000 4,143 4,400 9,000 3,300 Sales 売上 13,750 6,000 2,200 Gross 売上総利益 10,641 Profit 3,000 1,100 0 0 FY2020 21年/3月期 FY2021 (Est) 22年/3月期 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 Increase in revenue is expected by stable business as estimated in the beginning of the year, mainly with sales of testers for NAND Flash Memory Products. STAr Increase in profitability may remain small due to soaring prices of parts and components, inv
Slide 19: FY2021 Outlook: Semiconductor Design-related Business
FY2021 Outlook: Semiconductor Design-related Business 15,000 3,000 2,569 2,500 12,000 2,400 9,000 1,800 Sales 売上 6,000 12,050 1,200 Gross 11,416 売上総利益 Profit 3,000 600 0 0 FY2020 21年/3月期 FY2021 (Est) 22年/3月期 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business ＥＤＡ Revenue is expected to increase as the demand expands, such as larger amount renewal of subscription contracts, adoption of IP core in major design projects and so on. Sanei Revenue increase is expected as orders from the Japanese domestic customers continue
Slide 21: FY2021 Outlook: System Service Business
FY2021 Outlook: System Service Business 12,000 3,600 3,242 3,150 10,000 3,000 8,000 2,400 Sales 売上 6,000 1,800 Gross 売上総利益 10,479 10,600 Profit 4,000 1,200 2,000 600 0 0 FY2020 21年/3月期 FY2021 (Est) 22年/3月期 21
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 Expect to increase revenue as the sales of internally-developed products grow while procurement of parts and components remains difficult. IT Access Profitability of the settlement service steadily increases but demands from beverage makers wi
Slide 23: EBITDA Trends
EBITDA Trends [mil. yen] 4,000 EBITDA 3,500 3,960 Operating 3,731 3,000 営業利益 Profit 3,233 3,102 2,500 2,400 2,000 2,046 1,955 1,954 1,500 1,670 1,244 1,000 500 0 FY2017 18年3月期 FY2018 19年3月期 FY2019 20年3月期 FY2020 21年3月期 22年3月期（予） FY2021 (Estimate) （※） EBITDA= Earnings before interest, tax, depreciatio
Slide 24: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2020 20 yen 30 yen 50 yen 41.4% FY2021 (Outlook) 30 yen 30 yen 60 yen 43.7% We intend our consolidated divided payout ratio not to be less than 30%. Our goal is to maintain around 50% level as long as our business remains stable
Slide 25: Agenda
Agenda 1 FY2021 1H Actual 2 FY2021 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 25
Slide 26: Mid-Term Management Plan (Announced in February 2019)
Mid-Term Management Plan (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 internally-develop
Slide 27: Trends: Ratio of Internally-developed Products
Trends: Ratio of Internally-developed Products Sales: (mil. yen) （％） 35,000 69.6 71.2 72.4 68.9 70.0 30,000 57.4 60.0 9,364 9,680 25,000 9,059 12,240 50.0 20,000 6,975 6,624 47.4 7,179 49.8 50.6 40.0 45.9 4,940 15,000 1,486 5,920 36.8 1,411 30.0 1,455 3,445 10,000 1,276 828 20.0 12,891 14,712 12,666
Slide 28: ROE/ROIC Trends
ROE/ROIC Trends （％） （％） ROE ROIC 10.0 6.0 9.0 8.0 5.0 7.0 4.0 6.0 5.0 3.0 4.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2017 2018 2019 2020 2021 年度 YEAR 2017 2018 2019 2020 YEAR 2021 年度 (予想) (Estimate) (Estimate) (予想) ※Invested Capital＝Shareholders’ Equity＋Interest-bearing Debt 28
Slide 29: Semiconductor Policy of Japan and INNOTECH Business
Semiconductor Policy of Japan and INNOTECH Business Measures to Strengthen Semiconductor Manufacturing Base in Japan ①Jointly develop cutting-edge semiconductor manufacturing technology and construct foundries in Japan ②Accelerate investment in digital technology and strengthen design of cutting-
Slide 30: NEDO Public Solicitation Project; Contribute to Post 5G
NEDO Public Solicitation Project; Contribute to Post 5G by participating in R&D on High-bandwidth Large- capacity Flash Memory Modules MoDeCH will participate in the publicly-solicitated NEDO project, “Post 5G Information and Communication System Infrastructure R&D Project/Development of Post 5G I
Slide 31: INNOTECH Efforts on ESG/SDGs①
INNOTECH Efforts on ESG/SDGs① Contribute to reduce environmental footprint Contribute to our sustainable by semiconductor and electronics technology future with stakeholders and the society • Contribute to efficient usage of power by providing power • Promote innovation and value Environment creatio
Slide 32: INNOTECH Efforts on ESG/SDGs②
INNOTECH Efforts on ESG/SDGs② Open the ESG website to share what it does Open the ESG section from August, 2021 in the corporate website; https://www.innotech.co.jp/esg/ 32 Communicate INNOTECH ESG-related fundamental policy and efforts to achieve SDGs
Slide 33: The Prime Market: TSE New Market Segment
The “Prime Market”: TSE New Market Segment As of July 9, 2021, INNOTECH received the results of its initial assessment from the Tokyo Stock Exchange (TSE), confirming that INNOTCH met the continued listing criteria for the “Prime Market” in the new market segments of the TSE. INNOTECH Board of D
Slide 34: 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