Slide 1: FY2015 Financial Results
FY2015 Financial Results May 13, 2016 1
Slide 2: Agenda
Agenda 1 FY2015 Actual 2 FY2016 Outlook 3 Mid-range Management Plan 2
Slide 3: FY2015 Highlights
FY2015 Highlights Operating Profit Increase by 40% Significant revenue increase for testers for NAND flash memory business; Starting mass production for CIS (CMOS Image Sensor) GAIO still Strong, STAr results contribution throughout the year Over-all revenue increase of all group companies for the y
Slide 4: FY2015 Actual
FY2015 Actual 〔mil. yen〕 GAIO INNOTECH Sanei Hytechs IT ACCESS STAr Regulus Consolidated YoY TECHNOLOGY F i s c a l Y e a r FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 FY2015 FY2014 Net Sales 20,448 18,514 2,982 2,842 2,380 2,149 2,277 2,266 3,624 596 441 394
Slide 5: FY2015 Design and Development Solution Business
FY2015 Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 20,000 5,000 4,456 4,719 2,971 4,000 15,000 2,815 321 342 2,376 Sanei Hytechs 三栄ハイテックス 2,145 3,000 Regulus レグラス 10,000 1,807 2,293 アイティアクセス IT Access Embedded System 組込システム 2,265 2,277 2,000 ガイオテクノロジー GAIO TEC
Slide 6: Design and Development Solution Business
Design and Development Solution Business EDA Bulk contracts with multiple large-scale customers renewed successfully. GAIO Record highest profit achieved from strong sales of automotive tools. Embedded Systems BOX products sold well, cost reduction measures were executed as well. IT ACCESS Large lic
Slide 7: FY2015 Product Solution Business
FY2015 Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,237 3,500 2,585 3,000 1,892 2,500 10,000 4,943 2,000 デバイス Devices HDD 3,167 HDD STAｒ 1,500 STAr テスター Tester 5,000 4,100 2,640 売上総利益 Gross Profit 1,000 590 500 3,602 2,031 0 0 15年3月期 FY2014 16年3月期 FY2015 Total 9,888
Slide 8: Product Solution Business
Product Solution Business Testers Strong business for the 1st half, for NAND business decreases in the 2nd half. Delivery of testers for CIS has started. STAr Affected by large foundries’ suppression of investment but its business still contributed to our profitability. HDD Expanded its customer sha
Slide 9: Major Items in the Non-Operating and Extraordinary Gain and Loss
Major Items in the Non-Operating and Extraordinary Gain and Loss 〔mil. yen〕 Non-operating Expenses and Income Items Real Estate Rent 436 Rent Expenses on Real Estates -325 Surrender Value of Insurance 45 Foreign Exchange Losses -72 Extraordinary Loss and Income Items Gain on Step Acquisitions 44 9
Slide 10: Cash Flow
Cash Flow 〔mil. yen〕 FY2014 FY2015 Income Before Income Taxes 858 1,207 Depreciation and Amortization of Goodwill 717 771 Working Capital and Others - 462 - 471 Cash Flows from Operating Activities 1,114 1,506 Purchase of Investment Securities - 19 - 451 Acquisition of New Consolidated Subsidiary -
Slide 11: Trend of EBITDA
Trend of EBITDA 〔mil. yen〕 2,500 EBITDA 営業利益 Operating Profit 2,000 2,107 1,979 1,500 1,554 1,577 1,447 1,268 1,095 1,000 1,012 761 722 500 0 FY2011 12年3月期 FY2012 13年3月期 FY2013 14年3月期 FY2014 15年3月期 FY2015 16年3月期 （※） EBITDA=Net Income Before Tax + Depreciation +Amortization 11
Slide 12: Agenda
Agenda 1 FY2015 Actual 2 FY2016 Outlook 3 Mid-range Management Plan 12
Slide 13: FY2016 Highlights (Estimate)
FY2016 Highlights (Estimate) Transition period of our product portfolio; sales and profit are estimated to decrease Strengthen R & D as our industry’s environment changes Tester business is expected to expand from the 2nd half Distribution agreement with Cadence will be 13 renewed ahead of schedule
Slide 14: FY2016 Estimate
FY2016 Estimate 〔mil. yen〕 Sanei IT GAIO Consolid INNOTECH STAｒ Regulus FY2015 YoY Hytechs ACCESS TECHNOLOGY ated N e t S a l e s 18,500 3,000 2,150 2,350 3,300 600 29,500 31,243 -6% 4,100 660 450 1,130 1,450 250 8,090 7,957 Gross Profit 2% (22.2%) (22.0%) (20.9%) (48.1%) (43.9%) (41.7%) (27.4%) (25
Slide 15: FY2016 Outlook: Design and Development Solution Business
FY2016 Outlook: Design and Development Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 20,000 4,719 4,710 5,000 2,971 3,000 4,000 15,000 321 500(600) 2,376 (2,000) 2,150 Sanei Hytechs 三栄ハイテックス 3,000 Regulus レグラス 10,000 2,293 2,400 IT ACCESS アイティアクセス Embedded System 組込システム 2,277 2,350 2,
Slide 16: FY2016 Outlook: Product Solution Business
FY2016 Outlook: Product Solution Business 〔Sales: mil. yen〕 〔Gross Profit: mil. yen〕 15,000 3,237 3,380 3,500 3,000 2,585 1,000 (2,500) 2,500 10,000 4,943 4,700 Others その他 2,000 Devices デバイス HDD HDD 1,500 STAr STAｒ Tester テスター 5,000 2,640 3,300 (3,000) 1,000 売上総利益 Gross Profit 3,602 3,500 (3,200) 50
Slide 17: Major Expenses in the FY2016 (Estimate)
Major Expenses in the FY2016 (Estimate) 〔mil. yen〕 FY2014 FY2015 FY2016 (Estimate) Depreciation 578 565 582 Amortization of Good Will 139 205 212 R&D 338 875 925 R & D of FY2016 INNOTECH Continued development of image sensor testers Expansion of embedded board line-up IoT-related projects IT ACCES
Slide 18: Distribution Agreement with Cadence
Distribution Agreement with Cadence Early renewal of the Agreement whose term originally expires in December 2017 Effective Term: 4 years until December 2019 （1-year renewal thereafter if there is no termination cause） Distribution right for the biggest customer will be transferred from INNOTECH
Slide 19: Outlook on Dividends
Outlook on Dividends Dividend As of As of Full Year Payout 1H-end FY-end Ratio FY2015 7 yen 7 yen 14 yen 33.2％ FY2016 7 yen 7 yen 14 yen 41.0％ （Outlook） Our dividend payout ratio is targeted to be more than 30% on a consolidated basis. 19
Slide 20: Agenda
Agenda 1 FY2015 Actual 2 FY2016 Outlook 3 Mid-range Management Plan 20
Slide 21: Overview: Mid-range Management Plan
Overview: Mid-range Management Plan (Announced in November 2014) （Background） New mid-range management plan was devised, taking the environmental changes in the industry, M&A, and execution of structural reform into consideration （Strategy） Focus on 4 growing areas (Test, Model-Based Verification,
Slide 22: Efforts to Achieve the Goals Set by Mid-range Management Plan
Efforts to Achieve the Goals Set by Mid-range Management Plan Early renewal of Agreement 〔Sales: mil. yen〕 with Cadence 〔Operating Profit: mil. yen〕 45,000 3,500 Focus on R&D 40,000 Sales 売上 Aggravated 40,000 3,000 environment for the 35,000 Operating industry, earthquake 3,000 営業利益 Profit 35,000 2,
Slide 23: Expansion of Tester Business
Expansion of Tester Business Joint development of new products Start delivery Testers for CIS STAr-made Tester ITC acquired and STAr Prove Cards Testers for Testers for NAND flash memory 3D NAND 2013 2014 2015 2016 2017 2018 23
Slide 24: Growth of GAIO TECHNOLOGY
Growth of GAIO TECHNOLOGY 〔mil. yen〕 Cost increase by securing 3,000 personnel for the engineering 売上 Sales service business 2,500 Operating Profit 営業利益 2,350 2,266 2,277 2,000 M&A 1,500 Expansion of engineering 1,411 service 1,000 Contribution of new 500 493 450 product to profitability 439 Develop
Slide 25: Launching the Image Processing Solution
Launching the Image Processing Solution Regulus Camera System selected by Aerosense, Inc. Regulus Stereo Camera ”Stereo Eiger” Aerosense Drone ・Stereo camera system with real-time image processing realized by two connected sensors ・Small foot print and light-weight: suitable for drones and various o
Slide 26: Embedded Board (System)
Embedded Board (System) Accelerated development of new and successor models Targeting to expand the number of mass production projects Promotion of the next-generation gateway support Target Values 2014 2015 2016 2017 2018 ① Number of mass x0.7 1 x1.2 x1.4 x1.6 production projects Gateway Considerat
Slide 27: Other New Business: Utilization of Beacon
Other New Business: ① Utilization of Beacon Portable Fixed Cloud・NAS Beacon Transmitter Beacon Receiver Data Analysis INNOTECH-made Schools, Hospitals, Nursing Factories, Cleaning Facilities, Municipal Governments (Security, Mobile （Monitoring） Management) Traffic, Stores Offices, Factories, Stores
Slide 28: Other New Business: Model-Based Development (MBD)
Other New Business: ② Model-Based Development （MBD） From MBD tool distribution to total solution business ranging from MBD tool to service INNOTECH Needs Understanding Know-how MBD Customers Results INNOTECH Utilization Tools Differentiating our business by development staffs with 28 know-how and IN
Slide 29: Other New Business: Linking with the IoT Platform
Other New Business: ③ Linking with the IoT Platform Secure IoT Platform “Afero” (INNOTECH Funds’ Investee) One-stop realization from the IoT devices, Viable proposal to all customers 29 applications to the cloud service who consider adoption of IoT
Slide 30: Sympathy to Those Affected by the 2016 Kumamoto Earthquake
We would like to express my heartfelt sympathy to those who were affected by The 2016 Kumamoto Earthquake. 30
Slide 31: 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