FY 2007 Half Year Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2007 Interim financial results. The original version of this material is written in Japanese. In the event of any discrepancies in words, accounts, figures or the like between this material and the original, the original Japanese version shall govern. Sales & Ordinary Income Annual Trend (\million) (%) 50 300,000 Initial Forecast 207,000 250,000 200,000 200,411 193,033 194,756 40 195,750 +0.5% 500,000 400,000 29.3 401,000 +3.4% 387,790 40 369,023 Sales 300,000 30 250,000 21.0 100,000 19.5 58,695 37,975 20,624 0 上期 H1 下期 H2 FY05 2005/3 18.2 Initial Forecast 42,000 12.2 Ordinary Income 20 21.6 40,461 44,366 +9.6% 下期 H2 FY06 2006/3 上期 H1 200,000 10 35,633 -6.2% FY07 2007/3 21.5 20 20.2 20.0 Initial Forecast 78,500 100,000 50,000 下期[予測] H2.E. Ordinary Income Ratio 150,000 0 上期 H1 50 350,000 30 Sales 50,000 (%) Initial Forecast 405,000 450,000 168,611 Ordinary Income Ratio 150,000 205,249 +6.3% (\million) 79,320 78,437 10 80,000 +2.0% Ordinary Income 0 0 FY05 05/3 FY06 06/3 FY07.E. 07/3 [予測] Sales by Product Category Annual Trend (\million) (\million) 300,000 500,000 450,000 250,000 400,000 200,411 193,033 200,000 168,611 Integrated Circuits 150,000 194,756 205,249 +6.3% 195,750 +0.5% 86,828 Discrete Semiconductor Devices 84,620 72,193 90,857 +6.3% 85,870 +1.5% 369,023 159,022 150,000 65,281 Passive 50,000 74,836 Components 12,445 Displays 0 75,799 12,870 11,164 12,127 24,630 19,973 20,602 21,465 H1 上期 H2 下期 H1 上期 H2 下期 78,396 +3.4% 12,659 +4.4% 21,549 +4.6% H1 上期 11,764 -8.6% 19,719 -8.1% H2.E. 下期 [予測] 2005/3 FY05 2006/3 FY06 2007/3 FY07.E. 176,727 +3.9% Discrete Semiconductor Devices 100,000 76,506 170,087 250,000 200,000 80,182 +7.1% Integrated Circuits 350,000 300,000 85,467 387,790 401,000 +3.4% 141,787 150,636 158,579 +5.3% 100,000 50,000 23,610 44,603 0 FY05 05/3 Passive Components 24,998 24,423 -2.3% 42,068 41,269 -1.9% FY06 06/3 FY07.E. 07/3 [予測] Displays Sales by Region / Overseas Sales Ratio Annual Trend (\million) 300,000 (%) Overseas Sales Ratio 60.1 57.2 59.4 61.3 61.8 500,000 60.0 54.9 （\million） Overseas Sales Ratio 59.7 450,000 56.1 250,000 200,000 205,249 195,750 +6.3% +0.5% 193,033 194,756 200,411 168,611 Japan 85,772 150,000 77,104 79,163 79,348 +2.9% 50.0 400,000 369,023 387,790 60.0 401,000 +3.4% 50.0 Japan 350,000 40.0 74,714 -5.6% 76,079 (%) 61.6 300,000 156,268 161,852 154,063 -1.4% 250,000 30.0 30.0 200,000 100,000 Asia 20.0 77,556 50,000 N.&S. America Europe 100,056 100,043 96,603 0 7,905 10,130 H1 上期 6,085 8,890 H2 下期 2005/3 FY05 109,416 105,580 +9.4% +5.5% Asia 150,000 174,159 200,100 214,997 +7.4% 7,399 8,149 H1 上期 H2 下期 2006/3 FY06 8,067 7,453 +4.2% +0.7% 8,417 8,002 0.0 -1.8% +3.5% H1 H2.E. 上期 下期 [予測 ] 2007/3 FY07.E. 20.0 100,000 10.0 7,739 8,133 40.0 10.0 50,000 13,990 19,021 15,138 16,282 FY05 05/3 FY06 06/3 0 15,520 +2.5% 16,419 +0.8% FY07.E. 07/3 [予測 ] N.&S. America Europe 0.0 [H1 FY2007] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Integrated Circuits Overseas Total Asia N.&S. America TOTAL Europe +9.2 +3.7 +4.3 -9.4 +4.9 +6.3 Discrete Semiconductor Devices -3.1 +12.6 +13.4 +9.5 +6.6 +7.1 Passive Components -7.2 +9.5 +16.2 -7.3 -7.6 +4.4 Displays -6.2 +9.7 +8.9 +23.6 +5.2 +4.6 TOTAL +2.9 +8.6 +9.4 +4.2 +3.5 +6.3 [Full Year FY2007 Forecast] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Integrated Circuits Overseas Total Asia N.&S. America TOTAL Europe +4.1 +3.7 +4.5 -5.4 -4.5 +3.9 Discrete Semiconductor Devices -3.4 +9.8 +11.1 +2.4 +1.9 +5.3 Passive Components -13.5 +2.6 +7.2 -13.2 -7.4 -2.3 Displays -20.5 +7.3 +4.3 +28.0 +13.8 -1.9 -1.4 +6.7 +7.4 +2.5 +0.8 +3.4 TOTAL Cost of Sales/S.G.&A. Expenses/Operating Income Annual Trend (%) (\million) 300,000 64.8 Cost of Sales Ratio 250,000 70.0 62.9 62.7 62.8 369,023 205,249 194,756 +6.3% 195,750 +0.5% 50.0 168,611 111,942 109,190 121,445 122,070 129,467 +6.6% 123,532 40.0 +1.2% 17.2 22.2 34,453 50,000 S.G.&A. Expenses Operating Income 0 19.9 37,383 54,015 37,221 38,733 19.9 17.3 20.0 35,489 -4.7% 39,010 +0.7% 350,000 50.0 300,000 253,000 +3.9% 40.0 250,000 30.0 19.3 上期 H1 FY05 下期 H2 34,366 33,952 上期 H1 下期 H2 FY06 40,292 +17.2% 150,000 100,000 上期 H1 下期H2.E. [予測 ] FY07 221,132 243,516 30.0 S.G.&A. 19.5 71,836 19.6 75,954 10.0 33,207 -2.2% Cost of Sales 200,000 50,000 22,038 Cost of Sales Ratio 401,000 60.0 +3.4% 387,790 60.0 193,033 63.1 59.9 400,000 Cost of Sales S.G.&A. Expenses Ratio 70.0 63.1 63.1 55.9 200,000 100,000 (%) 500,000 450,000 200,411 150,000 (\million) 0.0 76,054 68,318 Expenses Ratio 18.6 74,500 -1.9% 73,500 +7.6% 20.0 S.G.&A. Expenses 10.0 Operating Income 0.0 0 FY05 05/3 FY06 06/3 FY07.E. 07/3 [予測 ] Capital Expenditures Annual Trend （¥million） 49,602 50,000 （\million） 48,982 45,567 35,568 23,224 31,256 30,000 90,000 Initial Forecast 38,500 40,000 30,090 Integrated Circuits 85,171 80,239 80,000 27,165 38,295 44,254 Integrated Circuits 50,000 14,164 8,689 20,000 10,000 Passive Components Displays 0 Others 40,000 12,834 40,000 846 Discrete Semiconductor Devices 3,811 9,115 11,704 13,363 843 2,967 12,778 8,721 13,030 823 2,346 1,063 1,200 4,807 3,323 Initial Forecast 73,000 72,000 70,000 60,000 26,432 15,070 100,000 4,924 H1 下期 H2 上期 H1 H2 上期 下期 FY05 FY06 1,235 1,054 2,586 H1 上期 下期[予測] H2.E. FY07 30,000 20,000 1,364 1,645 2,613 Discrete Semiconductor Devices 22,052 10,000 1,689 6,779 16,353 20,820 21,500 1,886 3,546 9,731 0 05/3 FY05 06/3 FY06 2,600 2,700 5,200 07/3 FY07.E. [予測] Passive Components Displays Others Net Income, Depreciation, and Capex Annual Trend (\million) （\million） 60,000 40,000 60,000 30,834 Net 22,196 17,902 11,665 6,831 20,000 42,500 40,000 20,000 24,734 Net 7,066 0 0 -20,000 -15,131 （\million） 150,000 （\million） Net Income 100,000 100,000 Net Income 50,000 Depreciation 0 Capex 36,733 21,031 -35,568 8,401 26,070 -49,602 24,238 24,920 -31,256 24,065 28,855 31,748 28,411 -26,432 -48,982 45,135 22,144 35,088 -100,000 51,000 Depreciation 50,000 47,102 56,669 63,500 -85,171 -80,239 -72,000 0 -45,567 -50,000 -50,000 48,304 Capex -100,000 H1 上期 H2 下期 FY05 H1 H2 上期 下期 FY06 H1 上期 H2.E. 下期 [予測] FY07 FY05 05/3 FY06 06/3 FY07.E. 07/3 [予測 ] ＲＯＥ･ＲＯＡ (%) 15.0 9.2 10.0 ROE 8.1 7.3 7.7 6.2 6.4 6.3 6.9 6.1 5.0 5.3 5.3 5.3 ROA 0.0 FY03 FY04 FY05 FY06 FY07 H1 FY07.E. Balance Sheets (Assets) （Unit: \million） End of FY07 H1 End of FY06 Increase/ Decrease ＜ Assets ＞ 591,204 568,111 23,093 Cash and Time Deposits 307,702 310,908 -3,206 Notes and Accounts Receivable - Trade 112,746 102,048 10,698 Securities 57,697 39,174 18,523 Inventories 84,679 86,725 -2,046 4,202 3,894 308 15,902 17,787 -1,885 Refundable Income Taxes 1,088 1,032 56 Others 7,846 7,257 589 -662 -717 55 Current Assets Prepaid Pension Cost Deferred Tax Assets Allowance for Doubtful Notes and Accounts Balance Sheets (Assets) （Unit: \million） End of FY07 H1 End of FY06 Increase/ Decrease ＜ Assets ＞ 352,720 271,654 383,329 283,462 -30,609 -11,808 Buildings and Structures 176,661 173,011 3,650 Machinery and vehicles 446,954 39,097 60,882 23,790 -475,731 2,861 78,204 431,447 35,661 67,541 21,909 -446,109 2,546 97,320 15,507 3,436 -6,659 1,881 -29,622 315 -19,116 67,563 8,802 2,224 -386 87,519 8,056 2,154 -410 -19,956 746 70 24 943,924 951,441 -7,517 Fixed Assets Tangible Fixed Assets Tools and Furniture Land Construction in Progress Accumulated Depreciation Intangible Fixed Assets Investments and Other Assets Investment Securities Deferred Tax Assets Others Total Investments and Other Assets Total Assets Balance Sheets (Liabilities) （Unit: \million） End of FY07 H1 End of FY06 Increase/ Decrease ＜ Liabilities ＞ 82,502 105,778 -23,276 Notes and Accounts Payable - Trade 26,665 27,622 -957 Other Accounts Payable 29,017 47,109 -18,092 Accrued Income Taxes 12,728 16,012 -3,284 Deferred Tax Liabilities 719 538 181 13,370 14,495 -1,125 59,738 58,144 1,594 56,403 55,041 1,362 Liability for Retirement Benefits 1,201 989 212 Allowance for Directors' Retirement Benefits 2,093 2,069 24 41 44 -3 142,240 163,923 -21,683 Current Liabilities Others Fixed Liabilities Deferred Tax Liabilities Others Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY07 H1 End of FY06 Increase/ Decrease ＜ Net Assets ＞ 805,317 793,764 11,553 Common Stock 86,969 86,969 0 Capital Surplus 102,403 102,403 0 Retained Earnings 663,328 639,760 23,567 Treasury Stock-at Cost -47,383 -35,369 -12,013 Unrealized or translated gain/loss Net Unrealized Gain on Available-for-Sale Securities -3,971 -6,550 2,578 4,308 6,524 -2,215 Foreign Currency Translation Adjustments -8,280 -13,074 4,794 337 303 33 Total Net Assets 801,683 787,517 14,165 Total of Liabilities and Net Asset 943,924 951,441 -7,517 Shareholders' Equity ＜ Minority Interests ＞ Minority Interests Statements of Income （Unit: \million） FY07 H1 FY06 H1 Increase/ Decrease （% change） Net Sales 205,249 193,033 12,216 +6.3 Cost of Sales 129,467 121,445 8,022 +6.6 Gross Profit (Gross Profit Ratio） 75,782 (36.9%) 71,587 (37.1%) 4,195 (-0.2%) +5.9 Selling, General, and Administrative Expenses 35,489 37,221 -1,732 -4.7 Operating Income (Operating Income Ratio） 40,292 (19.6%) 34,366 (17.8%) 5,926 (1.8%) +17.2 5,045 6,704 -1,659 970 608 362 44,366 (21.6%) 40,461 (21.0%) 3,905 (0.6%) Non-Operating Income Non-Operating Expenses Ordinary Income (Ordinary Income Ratio） +9.6 Statements of Income （Unit: \million） FY07 H1 FY06 H1 Increase/ Decrease 2,209 234 1,975 899 3,272 -2,373 Income before Income Taxes and Minority Interests 45,677 37,424 8,253 Income Taxes - Current 11,554 10,975 579 Income Taxes - Deferred 5,239 2,226 3,013 Minority Interests(- Loss) 27 -16 43 28,855 (14.1%) 24,238 (12.6%) 4,617 (1.5%) Extraordinary Gains Extraordinary Losses Net Income (Net Income Ratio） （% change） +22.1 +19.0