Slide 1: Results of Operations, First Half FY ending May 2009
Results of Operations First Half of the Fiscal Year Ending May 31, 2009 (June 1, 2008 – November 30, 2008) INTER ACTION Corporation January 15, 2009 1
Slide 2: Results of Operations (FY5/09 1H)
Results of Operations (FY5/09 1H) 1. Review of 1H Financial Results 2. Business Strategies 3. Q&A Session Copyright © 2009 INTER ACTION Corporation 2
Slide 3: Review of 1H Financial Results
INTER ACTION Group Review of 1H Financial Results Akio Nakataki, Managing Director 3
Slide 4: Consolidated Financial Results (FY5/09 1H)
Consolidated Financial Results (FY5/09 1H) (yen in millions) FY5/08 1H FY5/09 1H YoY change Amount % Amount % (%) Sales 692 100.0% 563 100.0% (18.6)% Gross profit 301 43.6% 214 38.1% (28.9)% Operating (160) (23.1)% (118) (21.1)% - income Ordinary (199) (28.8)% (161) (28.7)% - income Net income (140)
Slide 5: Comparison of Sales by Product
Comparison of Sales by Product Illuminator Image testing equipment (yen in millions) FY5/08 1H FY5/09 1H Tester equipment Security Amount Amount 16% Electronics testing 582 512 6% equipment Illuminators 528 394 2% Image testing FY5/08 1H 13 78 equipment 76% Tester 41 39 9% equipment 7% Security syst
Slide 6: R&D Expenses/Capital Expenditures/Depreciation and Amortization
R&D Expenses/Capital Expenditures/ Depreciation and Amortization (yen in millions) FY5/08 1H FY5/09 1H Consolidated Consolidated R&D expenses 72 18 Capital 39 9 expenditures Depreciation and 49 53 amortization R&D expenses: Curbed because of lower sales Capital expenditures: Equipment for production
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets (yen in millions) FY5/08 FY5/09 1H Change Cash and deposits in banks 1,944 1,419 (524) Assets Trade notes and accounts receivable 293 221 (72) Collection of trade Raw materials 316 311 (5) accounts receivable Work in process 316 258 (57) Total current assets 3,096 2,470 (
Slide 8: Consolidated Cash Flow Position
Consolidated Cash Flow Position (yen in millions) FY5/08 1H FY5/09 1H Change Cash flows from operating activities (256) (131) 125 Net income before income taxes (197) (138) 59 Depreciation and amortization 49 54 5 Decrease (increase) in trade receivables (93) 38 132 Decrease (increase) in inventorie
Slide 9: Quarterly Orders/Deliveries/Backlogs
Quarterly Orders/Deliveries/Backlogs (Production on Order) (yen in millions) FY5/07 FY5/08 FY5/09 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Orders received 208 671 193 516 401 492 242 173 Illuminators 92 Image testing equipment 69 Tester equipment 10 Security 0 Deliveries 273 581 299 393 497 534 365 197 Illuminators
Slide 10: Consolidated Forecasts (FY5/09)
Consolidated Forecasts (FY5/09) (yen in millions) FY5/08 Actual FY5/09 YoY change First-half Full-year (%) First-half Full-year (Actual) (Forecast) Sales 692 1,724 563 802 (53.5)% Operating (160) (159) (118) (301) - income Ordinary (199) (226) (161) (389) - income Net income (140) (169) (102) (256)
Slide 11: Non-consolidated Forecasts (FY5/09)
Non-consolidated Forecasts (FY5/09) (yen in millions) FY5/08 Actual FY5/09 YoY change First-half Full-year (%) First-half Full-year (Actual) (Forecast) Sales 623 1,526 515 746 (51.1)% Operating (118) (98) (84) (245) - income Ordinary (153) (158) (125) (328) - income Net income (95) (127) (61) (190)
Slide 12: Business Strategies
Business Strategies Hideo Kiji, President 12
Slide 13: Solar Cell Business and Possible Facility in Xi'an, China
Business Development Strategies - Solar Cell Business Activities and Possible Establishment of Facility in Xi’an, China - Copyright © 2009 INTER ACTION Corporation 13
Slide 14: Business Development Strategies: Background
Business Development Strategies Background Demand for solar cells is growing rapidly worldwide. Solar energy is playing an important role in the energy and environmental protection initiatives of countries around the world, including the Green New Deal initiative of the incoming Democratic Obama a
Slide 15: Outline of business operations
Business Development Strategies Outline of business operations z Supply of raw materials and manufacturing and inspection equipment INTER ACTION plans to form alliances in China with a leading silicon raw materials manufacturer, silicon ingot production equipment manufacturer and other Chinese compa
Slide 16: An Introduction to Xi'an (1) – History and Access
Business Development Strategies An Introduction to Xi’an (1) – History and Access z Xi’an z Xi’an has has aa history history dating dating back back 3,100 3,100 years. years. Much Much of of China’s China’s culture culture originated originated in in this this region region and and Xi’an Xi’an was w
Slide 17: An Introduction to Xi'an (2) – Human Resources
Business Development Strategies An Introduction to Xi’an (2) – Human Resources 35 public-sector universities with about 400,000 students, 48 graduate student training facilities 48 private universities with about 400,000 students, 236 professional schools including 178 for national and local gov
Slide 18: Xi'an Hi-tech Industries Development Zone (1)
Business Development Strategies An Introduction to Xi’an Hi-tech Industries Development Zone (1) Home to well-known companies from many countries 890 companies from more than 30 countries have made an investment in the zone; registered capital totals US$2 billion; facilities of famous multinatio
Slide 19: Xi'an Hi-tech Industries Development Zone (2)
Business Development Strategies An Introduction to Xi’an Hi-tech Industries Development Zone (2) Selected as one of five national development zones in the 2001 10th National Five-year Plan Selected as one of China’s six most energetic cities and regions in 2002 by the U.N. Industrial Development
Slide 20: The superiority of Xi'an for the solar cell business
Business Development Strategies The superiority of Xi’an for the solar cell business More than 30 Chinese and foreign companies associated with solar power generation systems, including U.S.-based Applied Materials, have operations in the Xi’an Hi-tech Industries Development Zone. Fiscal 2007 sale
Slide 21: Major solar cell companies in Xi'an
Business Development Strategies Major solar cell companies in Xi’an Company name Core product Shaanxi Tianhong (STSIC) Polycrystalline silicon Xi’an Longi Silicon ingot Xi’an Lijing Silicon ingot Xi’an Huajing Wafer slice Xi'an University of Technology Single-crystal manufacturing equipment Xi’an Si
Slide 22: Facilities of solar cell companies under construction in Xi'an
Business Development Strategies Facilities of solar cell companies under construction in Xi’an Copyright © 2009 INTER ACTION Corporation 22
Slide 23: The global crystalline solar cell industry
Business Development Strategies The solar cell business (1) – The global crystalline solar cell industry Solar power Polycrystalline silicon Silicon wafer Solar cell Solar cell module generation system Hemlock SUMCO Q-cells Siliken Conergy Tokuyama M.Setek Motech MSK Powerlight Wacker JFE Solon Mits
Slide 24: The solar cell market by country
Business Development Strategies The solar cell business (2) – The solar cell market by country (MW) Fiscal year 2006 2007 2008 2009 2010 2011 2012 Germany 850 1100 1500 1500 1500 1650 1800 Spain 97 300 300 300 400 400 400 Italy 12 40 80 130 200 270 360 Greece 1.2 2 10 50 100 130 180 France 14 45 60
Slide 25: The crystalline solar cell industry in China
Business Development Strategies The solar cell business (3) – The crystalline solar cell industry in China Applied product Polycrystalline silicon Silicon wafer Solar cell Solar cell module development Changzhou Trina Luoyang Zhonggui Hebei Jinglong Suntech Power Suntech Power Solar Emei Semiconduct
Slide 26: 2006 production volume of major Chinese manufacturers
Business Development Strategies The solar cell business (4) – 2006 production volume of 10 major Chinese manufacturers Company name Employees Production volume (MW) Suntech Power Co. Ltd. 3000 160 Yingli Green Eanergy Holdings Co., Ltd. 1600 90 JA Solar Holdings Co., Ltd. 800 75 China Sunergy Co., L
Slide 27: Conversion efficiency and production volume comparisons
Business Development Strategies The solar cell business (5) – Conversion efficiency and production volume comparisons zSingle-crystal solar cell conversion efficiency (Japan) SANYO Electric 19.7%, (China) SUNTECH 17.5% Polycrystalline solar cell conversion efficiency (Japan) KYOCERA 17.5%, (Germany)
Slide 28: Issues involving crystalline solar cells
Business Development Strategies The solar cell business (1) – Issues involving crystalline solar cells Need for reliable supply of inexpensive silicon raw materials Further improvement in conversion efficiency of solar power generation systems Longer service life and quality guarantee period o
Slide 29: Business plan for crystalline solar cell issues
Business Development Strategies The solar cell business (2) – Business plan for issues involving crystalline solar cells Cooperation with leading suppliers of silicon raw materials in China to ensure a reliable supply of low-cost materials (have already visited potential partners) Rapidly create
Slide 30: Issues involving thin-film solar cells
Business Development Strategies The solar cell business (3) – Issues involving thin-film solar cells Creation of low-cost technologies (manufacturing equipment, production technologies, etc.) for mass production of thin-film solar cells Increase the conversion efficiency of solar power generatio
Slide 31: Business plan for thin-film solar cell issues
Business Development Strategies The solar cell business (4) – Business plan for issues involving thin-film solar cells INTER ACTION inspection equipment is already used on thin-film solar cell production lines in Japan; plan to sell this equipment to manufacturers of thin-film solar cells in Xi’an
Slide 32: Forward-Looking Statements
Forward-Looking Statements These presentation materials contain information that is based on the company’s current expectations, estimates and forecasts. These forward-looking statements embody known and unknown risks and uncertainties that could cause the company’s actual financial condition and op
Slide 33: Copyright © 2009 INTER ACTION Corporation
Copyright © 2009 INTER ACTION Corporation 33