Slide 1: FY2012 Financial Results
May 14, 2013 FY2012 (For Fiscal Year ended March, 2013) Financial Results
Slide 2: Agenda
Agenda 1 FY2012 Results 2 FY2013 Outlook 3 Mid-term Management Plan 2
Slide 3: FY2012 Highlights
FY2012 Highlights 51% decrease in Operating Profit Tester business was decreased due to halt of customers’ investment phase Substantial decline in HDD demands for MFPs Profitability improvement of subsidiaries supported the overall Innotech group results 3
Slide 4: FY2012 Results
FY2012 Results 〔mil. yen〕 Sanei Innotech IT Access Regulus Consolidated YoY Hytechs FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 FY2012 FY2011 Net Sales 14,578 19,755 2,614 2,470 3,119 3,081 297 - 20,548 25,181 -18% G r o s s 3,708 5,038 594 421 983 871 95 - 5,447 6,401 -15% P r o f i t （
Slide 5: FY2012 Semiconductor Design Business
FY2012 Semiconductor Design Business Sales Gross Profit EDA Tester ASIC Design Consignment Regulus 〔mil. yen〕 (Sanei Hytechs) 15,000 13,687 2,440 265 10,754 10,000 5,414 280 2,605 293 1,686 5,000 5,568 5,890 4,371 3,295 0 FY2011 FY2012 5
Slide 6: Semiconductor Design Business
Semiconductor Design Business EDA Increase in sales due to expansion of contracts for electronic components. Tester Substantial decline in sales due to weakened demands in reaction to the strong FY2011 procurement activities ASIC Maintained the same level of sales as last year despite the tough envi
Slide 7: FY2012 Electronic Component Business
FY2012 Electronic Component Business Sales Gross Profit HDD Electronic Devices Embedded Software Development 〔mil. yen〕 (IT Access) 15,000 11,493 10,000 2,976 9,794 3,060 3,679 3,434 5,000 4,838 3,300 2,030 2,152 0 FY2011 FY2012 7
Slide 8: Electronic Component Business
Electronic Component Business ＨＤＤ Weak MFP business, decline in sales due to shrinkage of product portfolio Devices Business declined for TVs but Intel products and embedded board businesses are growing ＩＴＡ Increase in sales of consignment businesses for STBs; new product area contributes to sales 8
Slide 9: Non-operating income or loss, and extraordinary gain or loss
Non-operating income or loss, and extraordinary gain or loss Non-operating income or loss 〔mil. yen〕 Local tax refund from Kanagawa Prefecture(Penalty) 16 Cost and expenses by selling land -29 Extraordinary gain or loss Gain on sales of investment securities 25 Loss on valuation of investment securi
Slide 10: Agenda
Agenda 1 FY2012 Results 2 FY2013 Outlook 3 Mid-term Management Plan 10
Slide 11: FY2013 (Estimate) Highlights
FY2013 (Estimate) Highlights 31% increase in Operating Profit Target automotive area for EDA and design consignment businesses Recovery of demands expected for testers 11
Slide 12: FY2013 Estimate
FY2013 Estimate 〔mil. yen〕 Sanei Consolida FY2012 Innotech IT Access Regulus YoY Hytechs ted Results Net Sales 17,000 2,600 3,000 500 23,000 20,548 12% G r o s s 4,000 570 970 160 5,760 5,447 6% P r o f i t （23.5％） （21.9％） （32.3％） （32.0％） （25.0％） （26.5％） Operating 550 230 230 40 1,000 761 31% P r o
Slide 13: FY2013 Estimate: Semiconductor Design Business
FY2013 Estimate: Semiconductor Design Business Sales Gross Profit EDA Tester Design Consignment Regulus 〔mil. yen〕 (Sanei Hytechs) 15,000 12,400 10,754 500 280 2,600 10,000 2,605 2,300 1,686 7,000 5,000 6,183 3,295 3,580 0 FY2012 FY2013 （※） EDA includes ASIC 13
Slide 14: FY2013 Estimate: Electronic Component Business
FY2013 Estimate: Electronic Component Business Sales Gross Profit HDD Electronic Devices Embedded Software Development 〔mil. yen〕 (IT Access) 15,000 10,600 10,000 9,794 3,000 3,060 3,800 3,434 5,000 3,300 3,800 2,152 2,180 0 FY2012 FY2013 14
Slide 15: Outlook on Dividends
Outlook on Dividends Dividend 1H 2H FY Payout Ratio FY2012 7 yen 7 yen 14 yen 46.9％ FY2013 (Estimate) 7 yen 7 yen 14 yen 40.8％ Our dividend payout ratio is targeted to be more than 30% in a consolidated basis. 15
Slide 16: Agenda
Agenda 1 FY2012 Results 2 FY2013 Outlook 3 Mid-term Management Plan 16
Slide 17: New Organization
New Organization Merging Business Units （EDA and ASIC） An organization which does not only sell EDA software and provide its associated support but also provides comprehensive services including selling IPs IC Solutions Unit （EDA、ASIC） Test Solutions Unit （Testers） Semiconductor Design Business Sane
Slide 18: New Leadership
New Leadership • New Top Management(as of April 1, 2013 ) Chairman & CEO: Makoto Sumita President & COO: Toshihiko Ono • New Directors Director: Yoshinori Tanahashi CFO Director: Yoshihiro Mabuchi For stronger group management （Sanei President） Outside Director: Mitsumasa Murase For stronger corpora
Slide 19: Management Policy: Challenges with 3G
Management Policy: Challenges with 3G Transforming ourselves to a Globally-renowned EDS Company Strengthen Group Management Pursuit of Growth Global ※EDS＝Electronics Design Service 3G Group Growth 19
Slide 20: Transforming ourselves to a Globally-renowned EDS Company
Transforming ourselves to a Globally-renowned EDS Company Focusing on “3Ms” Efforts Providing software, services and New testers Products Innotech proprietary services with Internally developed boards higher margins Smartphone-related services Focus on growing markets; Opening of Taiwan Office Marke
Slide 21: Internally-developed Boards
Internally-developed Boards Growth Market Margin The 3rd generation Intel® Core™ Processor Family incorporated; ultra small-footprint CPU board “IX-5050” For areas where higher speed and big data support are required Medical, industrial, communication, 100×100mm automotive, surveillance 21
Slide 22: New Business by IT ACCESS
New Business by IT ACCESS Group Growth Market Margin Deployment to Smartphone Business Audio Watermark Cloud Application DLNA Smartphones working with TV programs and Skincare with Controlling home advertisement smartphones electronics by smartphones 22
Slide 23: Focusing on Chinese and Taiwanese Markets
Global Focusing on Chinese and Taiwanese Markets Group Growth M&A Market Opening Taiwan Office after Hong-Kong, Shanghai and Singapore Location: Taipei Taiwan Office Establishment: April, 2013 Sanei Hytechs Mission: Design Center in China -Expansion of joint business with STAr -Search for new produc
Slide 24: Partnership with STAr
Global Partnership with STAr Growth M&A Market Investment in STAr Technologies, Inc. Investment ratio：15％ （Top shareholder） Establishment：2000 Business: Manufacturing and sales of semiconductor test equipment, technology leader for parametric testers, probe cards, and reliability test systems Sales:
Slide 25: Launching New Tester Businesses
Global Launching New Tester Businesses Group Growth Market Smart Testers Margin Succeeding the business model formed by the BIST tester business; Offering competitive testers which are optimal to customers’ needs Smart Tester for IS Jointly developed with Regulus (Image Sensor) Cultivate domestic an
Slide 26: Active Investment in Growing Areas
Global Active Investment in Growing Areas Group Growth M&A Market Margin New business development from software perspective ・ Objective：Obtaining new product lines, penetrating overseas market ・ Scope：Automobiles, medical, energy, robotics, communication, and others ・ Past cases: March 2012: Giga He
Slide 27: Goal: FY2016 40B Yen of Sales and 3.2B Yen of Operating Profit
Goal：FY2016 40B Yen of Sales and 3.2B Yen of Operating Profit Current Sales New Sales Operating Profit(goal) Operating Profit(current) (Sales: 100mil. yen) (Operating Profit: 100mil. yen) 500 35 30 400 25 300 20 200 15 10 100 5 0 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 27
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