Slide 1: 2Q FY2023/3 Consolidated Financial Results
2Q FY2023/3 Consolidated Financial Results October 31, 2022 Socionext Inc.
Slide 2: Introduction
Introduction Socionext at a Glance Solution SoC Business Model Transformation Consolidated Financial Results for the 6 Months Ended September 30, 2022
Slide 3: Socionext at a Glance
Socionext at a Glance ◼ Socionext has developed a new and distinctive “Solution SoC” business model to provide optimal custom SoCs to customers who need advanced and innovative chips Company Overview Business Overview (Ratio is NRE revenue breakdown for FY22/3) History Business model Application Mar
Slide 4: Detail of Custom SoC & ASSP
Detail of Custom SoC & ASSP ◼ Socionext operates mainly within the Custom SoC market, which are designed for a specific customer (Although ASSPs are designed also for specific applications, they are not designed for a specific customer ) Logic Application Logic IC Specific IC Socionext mainly operat
Slide 5: Features of Solution SoC Business Model (1/2)
Features of Solution SoC Business Model (1/2) ◼ The primary difference between “traditional ASIC”2 and “Solution SoC“ is how we interface with our customers ◼ The primary difference between “Solution SoC” and “ASIC designed by ASSP vendors”2 is the breadth of optional customization 2 Custom SoC(ASIC
Slide 6: Transformation into a Global Custom SoC Vendor in Advanced Technology Area
Transformation into a Global Custom SoC Vendor in Advanced Technology Area ◼ Through a transformation of our business and company culture, Socionext has turned into a global leading custom SoC vendor with a new and distinctive business model that we refer to as “Solution SoC” Expansion of Business M
Slide 7: The Image of Timeline from Design Win to Mass Production
The Image of Timeline from Design Win to Mass Production Illustrative Description of “Design Win Amount” “Design Win Amount” ・・・ “Design win amount” represents our estimate of the lifetime demand from design projects. “Design win amount” is divided into NRE-based and product-based amounts. “Design w
Slide 8: Strong Design Wins from Focus Areas
Strong Design Wins from Focus Areas ◼ Roughly doubled annual “Design Win Amount¹” since the transformation in 2018, especially in the focus areas² “Design Win Amount” (LTR) acquired in each fiscal year Focus Areas2 Others2 Approx. JPY 200 bn.~ Approx. Approx.75% Approx.80% JPY 100 bn.~ Approx.70% Ap
Slide 9: Transforming into a Global SoC Company with Cutting-edge Technologies
Transforming into a Global SoC Company with Cutting-edge Technologies ◼ Shift in NRE revenue composition illustrates the steady progress of business transformation FY18/3 FY21/3 FY22/3 Focus Areas Focus Areas 50% (NRE revenue) 79% 86% Our focus areas are (a) Automotive, (b) 5G Networks & Data Center
Slide 10: Breakdowns by Application Market (Yearly Ratios)
Breakdowns by Application Market(Yearly Ratios) Net Sales NRE Revenue 100% 100% 14% 17% 21% 34% 80% 41% 41% 80% 39% 39% 44% 50% 50% 57% 30% 23% 28% 60% 60% 24% 22% 25% 21% 27% 29% 26% 40% 40% 30% 23% 28% 30% 20% 27% 24% 16% 20% 21% 20% 28% 16% 27% 39% 14% 18% 26% 16% 21% 13% 15% 9% 11% 9% 8% 5% 0% 0
Slide 11: Breakdowns by Geographic Region (Yearly Ratios)
Breakdowns by Geographic Region(Yearly Ratios) Net Sales NRE Revenue 100% 100% 10% 8% 10% 7% 8% 12% 12% 11% 12% 11% 19% 18% 80% 80% 26% 31% 36% 48% 51% 52% 60% 59% 60% 66% 63% 55% 21% 71% 56% 25% 20% 40% 40% 27% 24% 18% 17% 45% 20% 20% 16% 14% 34% 37% 15% 19% 12% 18% 17% 11% 14% 14% 11% 7% 6% 6% 0%
Slide 12: Breakdowns by Process Node (Yearly Ratios)
Breakdowns by Process Node(Yearly Ratios) Net Sales NRE Revenue 100% 100% 14% 17% 23% 21% 24% 25% 80% 36% 80% 45% 43% 42% 18% 10% 55% 11% 64% 30% 60% 60% 33% 30% 28% 19% 23% 46% 28% 29% 40% 40% 37% 17% 34% 36% 9% 46% 31% 16% 20% 44% 43% 20% 40% 28% 15% 24% 20% 13% 15% 9% 1% 5% 3% 0% 0% FY18/3 FY19/3
Slide 13: Consolidated Financial Results for the 6 Months Ended September 30, 2022
Introduction Consolidated Financial Results for the 6 Months Ended September 30, 2022 ─ Actual Consolidated Financial Results ─ Forecast Consolidated Earnings
Slide 14: 2Q FY2023/3 Consolidated Statements of Income
2Q FY2023/3 Consolidated Statements of Income (Yen in billions) FY2022/3 FY2023/3 1Q 2Q 3Q 4Q 1Q 2Q YoY YoY % Net Sales 27.1 28.3 29.8 31.8 39.9 42.8 +14.5 +51.1% Product Revenue 19.2 21.2 20.4 23.7 31.0 35.3 +14.1 +66.4% NRE Revenue 6.4 6.4 7.7 7.5 8.7 7.4 +0.9 +14.5% Others 1.5 0.7 1.6 0.5 0.2 0.2
Slide 15: 1H FY2023/3 Consolidated Statements of Income
1H FY2023/3 Consolidated Statements of Income （Yen in billions） FY2022/3 FY2023/3 1H ２H 1H YoY YoY% Net Sales 55.4 61.6 82.8 +27.3 +49.3% Product Revenue 40.4 44.1 66.3 +25.9 +64.0% NRE Revenue 12.8 15.3 16.1 +3.3 +25.4% Others 2.2 2.1 0.4 -1.8 -83.6% Cost of Goods Sold 24.1 25.7 42.0 +17.9 +74.3% S
Slide 16: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income Net Sales Operating Income （Yen in billions） （Yen in billions） 50.0 Product Revenue Operating Income 42.8 10.0 NRE Revenue 39.9 Margin Others 40.0 7.4 31.8 14.0% 8.7 29.8 28.3 30.0 27.1 11.4% 7.5 6.4 7.7 5.0 8.9% 8.7% 6.4 8.0% 20.0 35.3 31.0 5.6 23.7 4.9 10.0
Slide 17: Details of 2Q FY2023/3 Financial Results (Including YoY changes)
Details of 2Q FY2023/3 Financial Results (Including YoY changes) 2Q Net Sales & Operating Income Operating Income YoY changes analysis （Yen in billions） （Yen in billions） （Yen in billions） Product Revenue Operating Income 50.0 NRE Revenue 42.8 10.0 Margin Others 40.0 7.4 28.3 11.4% 30.0 8.9% 6.4 5.0
Slide 18: Details of 1H FY2023/3 Financial Results (Including YoY changes)
Details of 1H FY2023/3 Financial Results (Including YoY changes) 1H Net Sales & Operating Income Operating Income YoY changes analysis （Yen in billions） （Yen in billions） （Yen in billions） 100.0 Product Revenue 15.0 Operating Income 90.0 NRE Revenue 82.8 12.6% Margin 80.0 Others 70.0 16.1 55.4 10.0
Slide 19: Consolidated Balance Sheets (As of September 30, 2022)
Consolidated Balance Sheets（As of September 30, 2022） Cash on hand and in banks (Yen in Billions) (Yen in billions) As of As of Change Mar.31,2022 Sep.30,2022 Total Assets 118.4 168.9 +50.4 53.0 Total Current Assets 90.6 135.4 +44.8 46.3 37.2 Cash on-hand and in banks 46.3 53.0 +6.7 Accounts receiva
Slide 20: Appendix: Breakdowns of Net Sales and Operating Income (Quarterly ratios)
Appendix: Breakdowns of Net Sales and Operating Income (Quarterly ratios)
Slide 21: Breakdowns by Application Market (Quarterly Ratios)
Breakdowns by Application Market (Quarterly Ratios) Net Sales NRE Revenue 100% 100% 10% 9% 12% 14% 23% 24% 33% 35% 80% 40% 40% 40% 80% 46% 28% 25% 27% 40% 24% 21% 60% 60% 24% 14% 24% 27% 27% 33% 28% 31% 23% 40% 29% 40% 29% 31% 24% 16% 29% 49% 14% 19% 20% 15% 20% 29% 31% 26% 22% 22% 17% 17% 19% 14% 1
Slide 22: Breakdowns by Geographic Region (Quarterly Ratios)
Breakdowns by Geographic Region(Quarterly Ratios) Net Sales NRE Revenue 100% 100% 7% 3% 4% 5% 11% 11% 8% 7% 12% 12% 12% 11% 80% 80% 31% 30% 17% 34% 22% 42% 48% 48% 49% 14% 51% 55% 60% 55% 60% 10% 23% 34% 37% 40% 40% 29% 16% 24% 16% 29% 57% 55% 20% 19% 20% 20% 39% 33% 29% 24% 21% 21% 22% 13% 15% 15%
Slide 23: Quarterly Breakdowns by Process Node (Quarterly Ratios)
Quarterly Breakdowns by Process Node(Quarterly Ratios) Net Sales NRE Revenue 100% 100% 8% 11% 7% 20% 21% 7% 27% 37% 35% 31% 80% 40% 41% 80% 46% 44% 14% 11% 30% 24% 11% 60% 12% 60% 23% 23% 23% 16% 30% 27% 30% 40% 29% 30% 40% 34% 15% 18% 55% 58% 17% 20% 46% 45% 9% 17% 19% 20% 36% 25% 24% 23% 15% 16% 1
Slide 24: Disclaimer
Disclaimer This presentation has been prepared solely for the purpose of presenting relevant information regarding Socionext Inc. (“Socionext”). This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitat
Slide 25: Cautionary Note Regarding "Design Win Amount"
Cautionary Note Regarding “Design Win Amount” Cautionary Note Regarding “Design Win Amount” The calculation of “design win amount” involves a considerable degree of future estimation and subjective judgment, including assumptions regarding development plans, development costs, NRE revenues, per-unit
Slide 26: Socionexlt’
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