Slide 1: FY2007 Interim Financial Results
FY2007 Interim Financial Results November 15, 2007 1
Slide 2: Agenda
Agenda 1 FY2007 Interim Results 2 FY2007 Estimate 2
Slide 3: Summary of FY2007 1st Half
Summary of FY 2007 1st Half While the ordinary profit remains at the same level as FY2006 Apr.-Sept. period, the number is 20% higher than the original plan. Semiconductor Design business showed decline compared to FY2006 Apr.-Sept. period since most orders for tester business came in during the 1st
Slide 4: Results of FY2007 1st half
Results of FY2007 1st half 〔Mil. yen〕 Sanei IT Overseas Consolidated Original Innotech ACCESS Sales Office profit/loss Change※ Estimate Hytechs Net Sales 19,310 1,847 1,160 8,751 28,298 11% 29,000 Cost of Goods S o l d 16,124 1,432 728 8,485 24,009 13% 24,900 Gross Profit on S a l e s 3,186 415 432
Slide 5: Comparison by Segment
Comparison by Segment 〔Mil. yen〕 FY2006 FY2007 Change Apr.-Sept. Apr.-Sept. Net Sales 25,506 28,298 11% Semiconductor Design 8,049 7,567 △6% Electronic Components 17,457 20,731 19% Cost of Goods Sold 21,252 24,009 13% Gross Profit on Sales 4,254 4,289 1% Semiconductor Design 2,759 2,413 △13% Electro
Slide 6: Sales of Semiconductor Design Business
Sales of Semiconductor Design Business 〔Mil. yen〕 FY2006 FY2007 Change Factors Apr.-Sept. Apr.-Sept. Semiconductor Design 8,049 7,567 △6% Strong business for mixed signal IC Cadence 3,443 3,698 7% designs Semiconductor Decrease due to focusing on Testers 2,860 2,022 △29% profitable products only Des
Slide 7: Sales of Electronic Component Business
Sales of Electronic Component Business 〔Mil. yen〕 FY2006 FY2007 Change Factors Apr.-Sept. Apr.-Sept. Electronic Components 17,457 20,731 19% HDD 12,800 13,515 6% Steady demand for OA and FA Strong business for flat panel display Electronic Devices 2,212 4,344 96% TVs ASIC Design Old ASIC products ar
Slide 8: Improving Profitability by thorough business management
Improving Profitability by thorough business management Overall cost coverage ratio Ordinary Profit Rate 5.9% 104% 5.3% 4.5% 3.9% 81% 74% 61.7% 63% -1.5% FY2003 FY2004 FY2005 FY2006 FY2007 Apr.-Sept. Overall cost coverage ratio ＝ （Sales Management Cost）／（Gross Profit 総経費カバー率＝（販管費／売上総利益＋金融収支） on Sale
Slide 9: Agenda
Agenda 1 FY2007 Interim Results 2 FY2007 Estimate 9
Slide 10: Summary of FY2007
Summary of FY2007 By strong engineering business which is strategically positioned, estimated profit level will be achieved and the final profit rate will increase by 33% compared to FY 2006. 21% growth from Cadence business and strong business from testers will contribute to more than 2 digits leve
Slide 11: FY2007 Estimate
FY2007 Estimate 〔Mil. yen〕 Sanei IT Overseas Consolidated Innotech ACCESS Sales Office profit/loss FY2006 Change Hytechs Net Sales 40,000 3,800 2,300 15,000 56,000 57,959 △3% Cost of Goods S o l d 33,400 2,800 1,450 14,600 47,300 49,640 △5% Gross Profit on S a l e s 6,600 1,000 850 400 8,700 8,319 5
Slide 12: Estimate by Segment
Estimate by Segment 〔Mil. yen〕 FY2007 FY2007 FY2006 Change Revised Estimate Initial Estimate Net Sales 57,959 56,000 △3% 61,000 Semiconductor Design 14,083 16,400 16% 15,700 Electronic Components 43,876 39,600 △10% 45,300 Cost of Goods Sold 49,640 47,300 △5% 52,300 Gross Profit on Sales 8,319 8,700
Slide 13: Sales Estimate by Business
Sales Estimate by Business 〔Mil. yen〕 FY2007 FY2007 FY2006 Change Revised Estimate Initial Estimate Semiconductor Design 14,083 16,400 16% 15,700 Cadence 6,637 8,000 21% 7,500 Semiconductor Testers 3,895 4,600 18% 4,400 Design Consignment （Sanei Hytechs） 3,551 3,800 7% 3,800 Electronic Components 43
Slide 14: Cadence
Cadence Growth accelerated by large order renewals for the Expansion of customer base 2nd half, FY2007 (customers are changing) Strong demand for analog/mixed signal tools Trying to become competitive by Acquired 7 new customers in the 1st half; internally developing high value- keep cultivating new
Slide 15: Semiconductor Tester Business
Semiconductor Tester Business Toshiba business is stable; delivery to ＳＡＮＤＩＳＫ continues Proven excellence as a tailor-made, optimized tester Continues to grow in the 2nd half by introducing the new tester supporting 45nm process technology （Mi. yen） - Sales trend - Advanced 4,000 2nd half ＲＥＴＳＥＴ 1st
Slide 16: Sanei Hytechs (LSI Design)
Sanei Hytechs （LSI Design） Steady growth is expected Plan to open the Design Center in Kansai district to acquire more customers In the area 31 new employees joined to strengthen the organizational power Strengthen design consignment business leveraging internal Innotech IP -Trend of Sales and Ordin
Slide 17: Hard Disk Drive (HDD)
Hard Disk Drive （HDD） Conversion to large capacity HDD products Decline of business for lower margin AV and CE products Price increase trends in the entire market Introduced the industry-first 1 tera FLOPS products to the market - Sales trend- Spot orders （Mil. yen） 2nd half（Add on） 2nd half 30,000
Slide 18: Electronic Devices
Electronic Devices HDMI business grows rapidly by strong high-end TV business supplementing a weak growth for PS3 Enriching consumer product portfolio - Sales trend - Trying to increase customer base （Mil. yen） 8,000 2nd half Acquired 2 new customers in 1st half ４３％UP the 1st half; keep cultivating
Slide 19: ASIC Design Consignment Sales
ASIC Design Consignment Sales Transferring middleware business to IT Access and focus on ASIC business and embedded business Ramping up of Innotech internally developed board business for industrial applications Effort on ASIC business - Sales trend - Faraday : （Mil. yen） 2nd half Promoting sales
Slide 20: Embedded Software Development (IT Access)
Embedded Software Development （IT Access） Royalty business is the leading force Middleware business is consolidated and the organization has become stronger （Mil. yen） - Sales trend - 2nd half 1st half 2,000 1,000 0 FY2005 FY2006 FY2007 (Est.) 21 20
Slide 21: From Distribution Business to Engineering Business
From Distribution Business to Engineering Business Year 1987～ Starting to Year distribute testers 1992～ Starting to distribute ＷｉｎｄＲｉｖｅｒ real-time OS Schlumberger Starting to distribute ACCESS browsers Versatest Year Established ITACCESS Credence 2000 to enter into the embedded software development
Slide 22: Note for Forward Looking Statements
Note for Forward Looking Statements The information provided in this presentation include forward looking statements based on current expectations, forecasts or beliefs. Such forward looking statements include number of preliminary assumptions about future events that are subject to factors and unce