Slide 1: CFO presentation 2002
2002 12 2 CFO 2002 7 30 1
Slide 2: 2
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Slide 3: 2002 results overview
2 2002 4 2002 6 3
Slide 4: Consolidated results Q2 2002 vs 2001
( ) ( ) 2 2002 2001 3 2 2 10,754 6,312 70% 599 336 78% 10,155 5,976 70% 6,828 5,082 34% 3,326 893 272% 3,201 751 326% 30% 12% ( ) 4
Slide 5: Consolidated results and exchange rates
( ) ( ) 2 2002 2001 3 2 2 10,754 6,312 70% 1 = 126.25 122.50 1 = 116.76 106.66 2001 2 10,452 6,312 65% 10,452 6,106 71% - 206 - ( ) 5
Slide 6: Sales by region 2Q2001 vs 2Q2002
( ) ( ) + 146% 5,000 4,602 4,500 2Q2001 4,000 2Q2002 3,500 + 12% + 71% 3,000 2,487 2,500 2,254 2,014 2,000 1,867 1,455 + 48% 1,500 1,091 1,000 736 + 33% 500 238 318 0 Japan US Europe Asia Pacific Others ( ) 6
Slide 7: Sales by region 2Q2001 vs 2Q2002
2001 2 ( ) ( ) + 146% 5,000 4,602 2Q2001 4,000 2Q2002 + 56% 3,000 + 9% 2,187 2,272 2,014 2,000 1,867 1,455 + 44% 1,058 1,000 736 + 39% 238 331 0 Japan US Europe Asia Pacific Others ( ) 7
Slide 8: Sales mix by region
( ) 2001 2 2002 2 6,312 10,754 Others Others Asia 4% Asia Pacific Pacific 3% 12% 10% Japan 30% Japan Europe 43% Europe 23% 23% US 32% US 21% ( ) 8
Slide 9: Quarterly operating profit trend
( ) ( ) 4,000 3,500 3,916 3,000 3,326 2,500 3,030 2,000 2,665 1,500 2,004 1,000 500 893 0 1Q2001 2Q2001 3Q2001 4Q2001 1Q2002 2Q2002 ( ) 9
Slide 10: Gross margin and operating profit margin
( ) Gross margin Operating profit margin 40% 100% 36% 35% 35% 95% 94% 94% 30% 31% 31% 95% 95% 30% 94% 93% 90% 25% 20% 85% 14% 15% 80% 10% 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q FY2001 FY2002 FY2001 FY2002 ( ) 10
Slide 11: Sales by product category
( ) ( ) 12,000 10,754 2Q2001 2Q2002 Internet sever 10,000 41% 42% LAN 11% 14% 8,000 6,312 PC(consumer) 18% 20% 6,000 PC(enterprize), 30% 24% others 4,000 Total 100% 100% 2,000 0 2Q2001 2Q2002 ( ) 11
Slide 12: Operating expenses breakdown
( ) ** ( ) 7,000 1Q2002 2Q2002 1,124 6,000 715 R&D 12% 16% 5,000 1,719 1,577 Marketing 26% 25% 4,000 Sales 31% 30% 3,000 2,040 Support 1,913 13% 14% Others 2,000 18% 15% 820 947 1,000 Total 100% 100% 1,100 999 0 1Q2002 2Q2002 ** ( ) 12
Slide 13: Expense changes by category
2002 3 2002 6 1,592 1,712 Others Others 196 Sales, 211 Marketing Sales, Technical Technical Marketing Support 546 + 120 Support (+ 8%) 315 597 315 Research, Development Research, Development 535 589 13
Slide 14: Profit comparison
( ) 36 M 84 M 111 M 136 M 51 M 9M 3,326 M 3,201 M 3,192 M ( ) 14
Slide 15: Deferred revenue trend
( ) ( ) 14,000 + 7% 12,000 + 9% 12,017 10,000 11,222 + 32% 10,259 8,000 + 12% + 49% 6,000 7,779 6,966 4,000 4,686 2,000 0 Mar-'01 Jun-'01 Sep-'01 Dec-'01 Mar-'02 Jun-'02 ( ) 15
Slide 16: First half 2002
2002 1 2002 6 16
Slide 17: First half consolidated results
( ) 2002 2001 6 20,507 12,939 58% 1,195 732 63% 19,311 12,207 58% 12,954 9,308 39% 6,356 2,898 119% 6,271 3,004 109% 31% 23% ( ) 3,517 - 1,376 ( ) 17
Slide 18: Consolidated Results
Consolidated Results ( ) ( ) 2002 2001 6 20,507 12,939 58% 1 = 129.30 120.86 1 = 116.38 107.78 2001 19,776 12,939 53% 19,776 12,434 59% - 505 - ( ) 18
Slide 19: Sales growth 1H1998-1H2002
( ) 25,000 20,507 20,000 CAGR(1H98 - 1H02) 44% 58% 15,000 35% 12,939 9,600 10,000 70% 20% 5,631 4,710 5,000 0 1H1998 1H1999 1H2000 1H2001 1H2002 ( ) 19
Slide 20: 1H sales by region
( ) ( ) 10,000 + 91% 8,570 1H2001 8,000 1H2002 + 16% + 67% 6,000 4,667 4,681 4,487 4,017 4,000 2,796 + 63% 1,984 + 43% 2,000 1,216 421 603 0 Japan US Europe Asia Pacific Others ( ) 20
Slide 21: 1H sales by region
( ) ( ) 2001 10,000 + 91% 8,570 1H2001 8,000 1H2002 6,000 + 9% + 55% 4,487 4,0174,362 4,335 4,000 2,796 + 57% 1,910 + 42% 2,000 1,216 597 421 0 Japan US Europe Taiwan Others ( ) 21
Slide 22: 1H expenses breakdown
( ) ** ( ) 14,000 1H2001 1H2002 12,000 1,839 R&D 17% 14% 10,000 3,296 Marketing 18% 25% 1,571 8,000 Sales 29% 31% 1,641 6,000 3,953 Support 11% 14% 2,683 4,000 Others 26% 16% 1,038 1,767 2,000 Total 100% 100% 2,375 2,099 0 1H2001 1H2002 ** ( ) 22
Slide 23: 1H profit comparison
44 M 157 M 185 M 98 M 13 M 46 M 11 M 6,356 M 6,271 M 6,260 M ( ) 23
Slide 24: Balance sheet
( ) ( ) 2002 6 2001 6 69,667 + 16,254 53,413 46,055 + 11,436 34,618 10,740 + 3,073 7,667 ( ) 3,313 + 515 2,798 2,854 - 88 2,943 ( ) 24
Slide 25: Balance sheet details
( ) ( ) 2002 6 2001 6 34,938 + 8,440 26,498 1,879 + 1,403 476 12,017 + 5,050 6,966 14,500 - 900 15,400 34,729 + 7,814 26,914 7,240 + 440 6,799 12,135 + 733 11,401 15,496 + 7,315 8,180 ( ) 25
Slide 26: Cash is King
Cash is King ( ) ( ) 26
Slide 27: Cash flow comparison
( ) ( ) 2002 2001 6 6,271 3,004 SFAS 123 426 326 5,845 2,677 7% down 11% down 27
Slide 28: Full-year 2002 forecast
3 ( ) 3 2002 7 9 2002 1 12 9,800 - 10,300 42,000 30% - 36% 34% 2,250 - 2,550 13,000 1,250 - 1,450 7,300 • • • 1 = 115 1 = 110 ( ) 28
Slide 29: Thank you!
Thank you! 29