FY 2006 Half Year Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2006 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) 300,000 (%) (\million) 50.0 450,000 Initial Forecast 387,500 (%) 50.0 382,000 400,000 Initial Forecast 198,000 250,000 200,000 △3.7% 168,611 300,000 250,000 26.0 200,000 Ordinary Income Ratio 21.5 18.8 150,000 Sales 12.2 50,000 46,977 Initial Forecast 43,000 58,695 45,106 △31.1% 0 H1 H2 FY04 H1 H2 FY05 H1 100,000 50,000 40,461 20,624 Initial Forecast 83,500 16.7 10.0 Ordinary Income Ratio 20.0 25.9 20.0 21.0 100,000 Ordinary Income 30.0 30.0 29.3 150,000 40.0 350,000 Sales 188,966 +12.1% 173,649 25.8 355,630 193,033 200,411 181,981 40.0 +3.5% 369,023 92,083 79,320 72,000 △9.2% 31,538 +52.9% H2.E. FY06 0.0 10.0 Ordinary Income 0.0 0 FY04 FY05 FY06.E Sales by Product Category Annual Trend (\million) 450,000 (\million) 300,000 400,000 382,000 355,630 250,000 369,023 +3.5% 350,000 Integrated Circuits 200,000 Integrated Circuits 150,000 200,411 181,981 300,000 193,033 188,966 △3.7% 173,649 +12.1% 168,611 86,828 81,955 84,201 85,467 73,491 72,193 △1.6% F +16.6% 69,815 50,000 69,193 Passive Components 12,183 12,418 18,649 17,923 H1 H2 FY04 76,506 65,281 12,445 11,164 24,630 19,973 H1 H2 FY05 74,836 72,296 △2.2% +10.7% 12,127 12,309 △2.6% +10.3% 20,602 △16.4% 20,159 +0.9% H1 H2.E FY06 +6.7% Discrete Semiconductor Devices 200,000 139,009 Discrete Semiconductor Devices 169,668 250,000 150,000 100,000 0 Displays 155,446 159,022 141,787 147,133 +3.8% 100,000 50,000 24,601 23,610 24,437 36,573 44,603 40,761 +3.5% △8.6% 0 FY04 FY05 FY06.E Passive Components Displays Sales by Region / Overseas Sales Ratio Annual Trend (\million) (%) 70.0 300,000 （\million） 55.9 60.1 Overseas Sales Ratio 250,000 55.8 56.1 57.2 59.3 54.9 60.0 (%) 60.0 59.7 450,000 56.1 Overseas Sales Ratio 400,000 355,630 369,023 382,000 50.0 +3.5% 350,000 181,981 193,033 △3.7% 173,649 Japan 150,000 50.0 200,411 200,000 168,611 85,772 79,963 Japan 77,104 △10.1% 76,799 188,966 154,081 300,000 +12.1% 156,762 40.0 76,976 161,852 △4.8% 250,000 +1.2% 76,079 40.0 30.0 30.0 200,000 Asia 100,000 150,000 20.0 Asia 100,056 96,603 84,399 77,556 79,057 50,000 97,198 100,000 +25.3% 197,255 163,457 174,159 +13.3% 10.0 10.0 N.&S. America Europe 0 +3.6% 20.0 7,582 10,034 7,229 10,563 7,905 10,130 6,085 8,890 H2 H1 H2 H1 FY04 FY05 7,739 △2.1% +3.3% △19.7% △4.3% 8,133 H1 8,507 H2.E FY06.E N.&S. America 50,000 6,283 0.0 0- 14,022 +0.2% Europe 19,021 16,641 0.0 △12.5% 14,811 20,597 13,990 FY04 FY05 FY06.E [H1 FY2006] Sales by Region and Products (Y.o.Y.) (Unit: %) Japan Overseas Overseas Total Asia N.&S. America TOTAL Europe Integrated Circuits -4.1 +0.8 +2.9 +13.6 -34.7 -1.6 Discrete Semiconductor Devices -7.4 +0.9 +3.7 -8.9 -17.9 -2.2 Passive Components -14.9 +4.1 +9.4 +0.0 -11.6 -2.6 Displays -38.6 +1.2 +2.6 -6.8 -2.7 -16.4 TOTAL -10.1 +1.1 +3.6 -2.1 -19.7 -3.7 [Full Year FY2006 Forecast] Sales by Region and Products (Y.o.Y.) (Unit: %) Japan Overseas Overseas Total Asia N.&S. America TOTAL Europe Integrated Circuits -0.6 +14.4 +18.4 +13.7 -33.4 +6.7 Discrete Semiconductor Devices -3.7 +8.3 +11.5 -2.2 -13.6 +3.8 Passive Components -8.5 +10.2 +15.2 -3.8 +0.1 +3.5 Displays -25.0 +2.8 +1.8 -8.3 +20.6 -8.6 TOTAL -4.8 +10.0 +13.3 +0.2 -12.5 +3.5 Cost of Sales/S.G.&A. Expenses/Operating Income Annual Trend (\million) (%) 300,000 64.8 64.0 62.9 70.0 (\million) (%) 450,000 70.0 63.5 59.9 400,000 54.8 250,000 54.8 60.0 55.9 350,000 Cost of Sales Ratio 181,981 Cost of Sales 150,000 +3.5% 173,649 95,218 111,942 19.9 17.4 50,641 Operating Income 0 34,565 22.2 H2 2004/3 19.3 150,000 19.8 34,453 37,221 H1 H2 2005/3 37,378 +8.0% △0.0% 34,366 △36.4% H1 221,132 +9.6% 200,000 100,000 22,038 H1 30.0 20.0 54,015 194,856 40.0 +10.8% +8.5% 17.2 37,383 43,865 250,000 120,954 121,445 109,190 Cost of Sales 50.0 242,400 +12.1% 168,611 60.0 300,000 188,966 40.0 31,701 S.G.&A. 50,000 Expenses 369,023 50.0 193,033 △3.7% 99,638 S.G.&A. 100,000 Expenses Ratio 382,000 54.8 200,411 200,000 355,630 Cost of Sales Ratio 10.0 18.6 66,266 19.5 71,836 H2.E 2006/3 74,600 +3.8% 50,000 94,507 76,054 20.0 S.G.&A. Expenses 10.0 65,000 △14.5% 30,633 +39.0% 19.5 30.0 S.G.&A. Expenses Ratio 0.0 0 FY04 FY05 FY06.E Operating 0.0 Income Capital Expenditures Annual Trend Initial Forecast 62,000 （\million） （\million） 60,000 100,000 55,743 90,000 49,602 50,000 34,237 35,568 23,224 Initial Forecast 37,200 30,000 51,958 Discrete Semiconductor Devices 5,957 10,000 Passive Components 6,452 0 Others 8,689 846 3,811 13,363 9,576 763 1,994 2,553 H1 902 2,471 4,115 H2 FY04 843 2,967 Integrated Circuits 50,000 17,171 17,721 38,295 60,000 15,070 Integrated Circuits 45,000 30,835 70,000 31,256 Displays 87,000 80,000 40,000 20,000 85,171 13,030 3,323 40,000 14,164 H2 FY05 22,052 15,384 30,000 9,115 20,000 24,500 16,028 823 2,346 1,676 2,153 10,000 1,665 4,466 4,807 5,692 6,668 0 H1 23,129 H1 H2.E FY06 FY04 Discrete Semiconductor Devices 1,689 6,779 16,353 FY05 2,500 4,500 10,500 FY06.E Passive Components Displays Others Net Income, Depreciation, and Capex Annual Tremd （\million） （\million） 80,000 60,000 40,000 20,000 0 30,445 26,853 22,196 60,000 17,902 -5,902 Net 57,298 Net 40,000 12,000 20,000 -20,000 -15,131 7,066 0 （\million） 100,000 （\million） 150,000 Net Income 50,000 26,808 Depreciation 0 36,908 21,358 24,181 21,031 -17,721 -34,237 -35,568 Capex Net Income 100,000 36,733 19,761 8,401 24,238 26,070 24,920 30,079 -31,256 -55,743 -49,602 63,717 44,000 45,135 Depreciation 55,000 50,000 45,539 47,102 0 -50,000 Capex -51,958 -50,000 -85,171 -87,000 FY05 FY06.E -100,000 H1 H2 FY04 H1 H2 FY05 H1 H2.E FY06 -100,000 FY04 Shareholders' Equity/Total Assets (%) (\million) 1,200,000 86.3 84.0 84.5 85.2 84.8 85.0 90 80 Shareholders' Equity to Total Assets 1,000,000 805,692 800,000 740,627 639,210 676,577 867,322 846,799 715,938 739,329 892,459 756,465 907,004 771,010 70 60 50 600,000 40 Total Assets 30 400,000 20 200,000 Total 10 Shareholders' Equity 0 0 FY02 FY03 FY04 FY05 FY06 H1 FY06.E ＲＯＥ･ＲＯＡ (%) 15.0 ROE 9.2 10.0 8.1 6.4 7.7 6.5 6.2 5.8 6.9 5.0 5.5 5.3 5.2 5.0 ROA 0.0 FY02 FY03 FY04 FY05 FY06 H1 FY06.E Balance Sheets (Assets) （Unit: \million） End of FY06 H1 End of FY05 Increase/ Decrease ＜ Assets ＞ 527,682 512,990 14,692 Cash and Time Deposits 295,711 270,337 25,374 Notes and Accounts Receivable - Trade 103,363 93,078 10,285 Securities 30,729 58,175 -27,446 Inventories 73,878 68,037 5,841 3,775 3,676 99 12,710 12,138 572 983 1,645 -662 7,289 6,494 795 -760 -594 -166 Current Assets Prepaid Pension Cost Deferred Tax Assets Refundable Income Taxes Others Allowance for Doubtful Notes and Accounts Balance Sheets (Assets) （Unit: \million） End of FY06 H1 End of FY05 Increase/ Decrease ＜ Assets ＞ Fixed Assets Property, Plant and Equipment Buildings and Structures Machinery, Equipment and vehicles 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 364,777 262,044 354,332 253,958 10,445 8,086 164,102 156,327 7,775 383,917 32,932 64,616 28,309 -411,835 1,717 101,015 364,086 31,391 64,582 33,181 -395,610 1,803 98,570 19,831 1,541 34 -4,872 -16,225 -86 2,445 91,096 8,194 1,995 -270 89,781 7,253 1,785 -250 1,315 941 210 -20 892,459 867,322 25,137 Balance Sheets (Liabilities) （Unit: \million） End of FY06 H1 End of FY05 Increase/ Decrease ＜ Liabilities ＞ 85,607 85,964 -357 Notes and Accounts Payable - Trade 25,944 22,153 3,791 Other Accounts Payable 35,509 42,260 -6,751 Accrued Income Taxes 9,450 8,873 577 Deferred Tax Liabilities 468 477 -9 14,233 12,199 2,034 50,054 41,688 8,366 47,010 38,896 8,114 Liability for Retirement Benefits 1,002 805 197 Allowance for Directors' Retirement Benefits 2,006 1,986 20 35 － 35 135,661 127,652 8,009 Current Liabilities Others Long-Term Liabilities Deferred Tax Liabilities Others Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY06 H1 End of FY05 Increase/ Decrease ＜ Minority Interests ＞ 331 Minority Interests 340 -9 ＜ Shareholders' Equity ＞ Common Stock 86,969 86,969 - Capital Surplus 102,403 102,403 - Retained Earnings Net Unrealized Gain on Availablefor-Sale Securities Foreign Currency Translation Adjustments 620,910 601,689 19,221 3,755 2,569 1,186 -27,224 -34,061 6,837 Treasury Stock-at Cost -30,348 -20,241 -10,107 756,465 739,329 17,136 892,459 867,322 25,137 Total Shareholders' Equity Total Liabilities, Minority Interests and Shareholders' Equity Statements of Income （Unit: \million） FY06 H1 FY05 H1 Increase/ Decrease （% change） Net Sales 193,033 200,411 -7,378 -3.7 Cost of Sales 121,445 111,942 9503 8.5 Gross Profit (Gross Profit Ratio） 71,587 (37.1%) 88,469 (44.1%) -16,882 (-7.0%) -19.1 Selling, General, and Administrative Expenses 37,221 34,453 2,768 +8.0 Operating Income (Operating Income Ratio） 34,366 (17.8%) 54,015 (27.0%) -19,649 (-9.2%) -36.4 6,704 5,230 1,474 608 550 58 40,461 (21.0%) 58,695 (29.3%) -18234 (-8.3%) Non-Operating Income Non-Operating Expenses Ordinary Income (Ordinary Income Ratio） -31.1 Statements of Income （Unit: \million） FY06 H1 Increase/ Decrease FY05 H1 234 5 229 3,272 145 3,127 Income before Income Taxes and Minority Interests 37,424 58,555 -21,131 Income Taxes - Current 10,975 22,696 -11,721 Income Taxes - Deferred 2,226 -890 3,116 Minority Interests(- Loss) -16 16 -32 24,238 (12.6%) 36,733 (18.3%) -12,495 (-5.7%) Extraordinary Gains Extraordinary Losses Net Income (Net Income Ratio） （% change） -36.1 -34.0