Slide 1: FY2022 Financial Results
INNOTECH CORPORATION FY2022 Financial Results May 12, 2023 1
Slide 2: Agenda
Agenda 1 FY2022 Actual 2 FY2023 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: FY2022 Highlights
FY2022 Highlights Consolidated Net Consolidated Net Sales Sales increased increased by by 3.7％ ●％ YoY; YoY; Consolidatedoperating Consolidated operatingprofit profitdecreased increasedbyby10.3％ ●％ YoYYoY Test Solution Business declined due to continued weakening of the semiconductor market from the
Slide 4: FY2022 Actual
FY2022 Actual Sanei IT GAIO STAr INNOTECH REGULUS MoDeCH Consolidated Hytechs Access Technology Technologies YoY Year FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 Net Sales 17,21816,537 3,880 3,941 4,274 4,899 3,233 3,510 7,730 8,950
Slide 5: FY2022 Test Solution Business
F Y 2 0 2 2 Te s t S o l u t i o n B u s i n e s s 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 5,679 6,000 5,377 12,000 4,800 9,000 3,600 Sales 売上 14,447 13,938 Gross 売上総利益 6,000 2,400 Profit 3,000 1,200 0 0 FY2021 22年/3月期 FY2022 23年/3月期 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 Revenue declined as the sales of testers for NAND flash memory products declined in the second half despite that burn-in boards, which is new business, sold well. STAr Revenue increased as the majority of shipment of reliability test equipment was made
Slide 7: FY2022 Semiconductor Design-related Business
FY2022 Semiconductor Design-related Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 2,922 15,000 3,000 2,647 12,500 2,500 10,000 2,000 Sales 売上 7,500 1,500 売上総利益 Gross 13,287 Profit 12,429 5,000 1,000 2,500 500 0 0 FY2021 22年/3月期 FY2022 23年/3月期 7
Slide 8: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Revenue increased with steady renewals of term license contracts with the customers and soaring customer demand for design and verification. Sanei Operating profit increased as the operation rate for the Japanese domestic business remained generally high YoY
Slide 9: FY2022 System Service Business
FY2022 System Service Business 13,000 4,000 3,640 3,184 10,400 3,200 7,800 2,400 Sales 売上 11,404 5,200 10,360 1,600 Gross 売上総利益 Profit 2,600 800 0 0 22年/3月期 23年/3月期 FY2021 FY2022 9
Slide 10: System Service Business
System Service Business Embedded System Revenue increased with stable business of internally-developed products, successfully coping with tight supply of parts and components. IT Access Revenue and profit increased as the cloud settlement service remained stably profitable by the subscription model;
Slide 11: Major Expenses and Non-Operating Expenses and Income
Major Expenses and Non-Operating Expenses and Income 〔mil. yen〕 FY2021 FY2022 Research & Development 1,644 2,071 Depreciation 1,058 1,197 Amortization of Goodwill 230 232 Major Items of Non-operating Expenses and Income Foreign Exchange Gains 216 112 Subsidy Income 149 78 Real Estate Rent Income 456
Slide 12: Cash Flow
Cash Flow FY2021 FY2022 Profit Before Income Taxes 2,976 2,482 Depreciation and Amortization of Goodwill 1,289 1,429 Working Capital and Others -1,524 -2,232 Cash Flow from Operating Activities 2,741 1,680 Purchase of Fixed Assets -1,278 -1,569 Purchase of Long-term Prepaid Expenses -215 -116 Other
Slide 13: Agenda
Agenda 1 FY2022 Actual 2 FY2023 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: FY2023 Highlights
FY2023 Highlights Consolidated Net Sales will increase by 11.3％ YoY; Consolidated operating profit will increase by 29.3％ YoY Revenue and profit are expected to expand for the Test Solution Business as STAr will recover its business and demand for testers will come back from the second half. Revenue
Slide 15: FY2023 Estimate
FY2023 Estimate [mil. yen] Sanei IT GAIO STAr Consoli FY2022 INNOTECH REGULUS MoDeCH YoY Hytechs ACCESS TECHNOLOGY Technologies -dated Actual Net Sales 17,800 3,750 5,300 3,700 11,500 800 400 43,000 38,629 11.3% 5,010 920 1,350 1,500 4,230 250 240 13,500 12,242 Gross 10.3% Profit (28.1%) (24.5%) (25
Slide 16: Business Results Trends
Business Results Trends Operating Profit/EBITDA Sales 〔mil. yen〕 〔mil. yen〕 5,000 50,000 Sales 売上高 4,298 4,441 45,000 EBITDA 3,963 4,000 3,731 40,000 Operating 営業利益 Profit 3,102 43,000 35,000 38,629 37,238 3,000 3,000 30,000 32,536 2,585 25,000 31,161 2,319 2,000 1,954 20,000 1,670 15,000 1,000 10,0
Slide 17: FY2023 Outlook: Test Solution Business
FY2023 Outlook: Te s t S o l u t i o n B u s i n e s s 20,000 7,000 6,500 5,679 16,000 5,600 12,000 4,200 Sales 売上 17,350 売上総利益 Gross 8,000 2,800 Profit 13,938 4,000 1,400 0 0 FY2022 23年/3月期 FY2023 24年/3月期 17 (Estimate)
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 Expecting the recovery of demand for memory testers as the semiconductor market will revive in the latter half of the year; aim to increase revenue by expanding the peripheral solutions other than memory products. STAr Aim to increase revenue and profit
Slide 19: FY2023 Outlook: Semiconductor Design-related Business
FY2023 Outlook: Semiconductor Design-related Business 2,922 2,950 15,000 3,000 12,000 2,400 9,000 1,800 Sales 売上 13,287 13,250 Gross 売上総利益 6,000 1,200 Profit 3,000 600 0 0 FY2022 23年/3月期 FY2023 24年/3月期 (Estimate) 19
Slide 20: Semiconductor Design-related Business
Semiconductor Design-related Business EDA Main business will remain solid with large-amount renewals of contracts. Aim to increase revenue by further expanding the business and acquiring customer demands. Sanei Domestic business will slow down by large customers’ budget cutbacks; revenue and profit
Slide 21: FY2023 Outlook: System Service Business
FY2023 Outlook: System Service Business 15,000 4,500 4,050 3,640 12,000 3,600 9,000 2,700 Sales 売上 売上総利益 Gross 6,000 12,400 1,800 Profit 11,404 3,000 900 0 0 FY2022 23年/3月期 FY2023 24年/3月期 (Estimate) 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 Jointly developing the edge face recognition solution for industrial appliances with a partner company. Revenue is expected to rise by increasing the number of mass production projects while supply shortage of parts and components will continu
Slide 23: Dividends
Dividends Dividend As of 1H- As of FY- Full Year Payout end end Ratio FY2022 35 yen 35 yen 70 yen 55.1% FY2023 (Outlook) 35 yen 35 yen 70 yen 46.0% 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 i
Slide 24: Agenda
Agenda 1 FY2022 Actual 2 FY2023 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 24
Slide 25: Mid-Term Management Plan Overview (Announced in February 2019)
Mid-Term Management Plan Overview (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 internall
Slide 26: ROE/ROIC Trends
ROE/ROIC Trends （％） （％） ROE ROIC 12.0 8.0 10.4 10.0 7.0 6.7 6.0 5.6 8.0 7.8 6.6 7.3 5.0 5.0 6.0 4.0 4.5 4.7 5.8 4.0 3.0 2.0 2.0 1.0 0.0 0.0 2018 2019 2020 2021 2022 YEAR 2018 2019 2020 2021 2022 YEAR ※Invested Capital＝Shareholders’ Equity＋Interest-bearing Debt 26
Slide 27: Product Development Strategy for Testers
Product Development Strategy for Testers Requirements/Needs New Tester Development Increase of capacity for 3D NAND memory products with multiple Accumulated expertise for massively layers parallel testing technology 今まで蓄積された超多数個同時測定技術 ＋ ＋ 【Strengthen core technology】 Increase of gross die per w
Slide 28: EDA Business Trend (IC→System Domain)
EDA Business Trend（IC→System Domain） Package Printed Circuit Structural Analysis LSI パッケージ プリント基板 Board システム解析 System Analysis 構造解析 Area of Chip Package Module System Development PCB Thermal Solution Design Verification Design Verification Design Verification EMC Thermal CFD Fluid Design/Verificatio
Slide 29: Product and service strategy of IT Access
Product and service strategy of IT Access ① Expand Customer Base Three strategies and growing in-house Shopping and dining 2018 2019 2020 2021 2022 Super business areas of train stations profitable locations MAX 568 888 1,819 2,045 2,283 Highly VMPU-01-S VMPU-04-E MID 822 New ③ 822 Service 1,055 1,3
Slide 30: Joint Development with TRIPLEIZE; Edge Face Recognition for Industrial Appliances
Joint Development with TRIPLEIZE; Edge Face Recognition for Industrial Appliances The “World Business Satellite”, which is a TV program of the TV Tokyo Corporation, aired an edition on the “AIZE”, which is the face recognition technology of TRIPLEIZE CO., LTD. “AIZE” is capable of detecting faci
Slide 31: Efforts to Pursue Capital Cost-Conscious and Capital Profitability-Conscious Management
Efforts to Pursue Capital Cost-Conscious and Capital Profitability-Conscious Management Analyzing and Understanding the Current Status of INNOTECH Group Report on the share price trend at the management meeting on a monthly basis Analyze the factors which cause the share price fluctuations every m
Slide 32: INNOTECH Efforts on ESG and SDGs: Materiality 1 Human Capital Management
INNOTECH Efforts on ESG and SDGs: (Measures for Materiality): Materiality 1 Human Capital Management Key Theme Efforts Resolved and Implemented in FY2022 Introducing Employee Stock Compensation Plan ・Employee Stock Ownership Plan (J-ESOP) ・Restricted Stock (RS) Enhancing Employees Introducing Compen
Slide 33: Materiality 2: Harmonious Coexistence with the Society and Contribution to the Sustainable Future
INNOTECH Efforts on ESG and SDGs: (Measures for Materiality): Materiality 2: Harmonious Coexistence with the Society and Contribution to the Sustainable Future 本社ビル屋上ソーラーパネル設置(第一期工事完了) Setting up a solar panel system on the rooftop of the headquarter building (completed the phase 1 construction) S
Slide 34: APPENDIX
APPENDIX 34
Slide 35: Trends: Ratio of Internally-developed Products
Trends: Ratio of Internally-developed Products Sales: (mil. yen) （％） 73.3 74.5 70.0 50,000 71.2 72.2 68.9 57.2 60.0 54.6 53.2 40,000 49.8 45.9 10,948 50.0 9,956 10,755 30,000 40.0 9,634 7,442 9,680 6,940 7,314 1,784 30.0 20,000 6,975 1,692 1,661 7,179 1,486 20.0 1,411 10,000 22,826 18,653 18,901 12,
Slide 36: 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