FY 2004 Half Year Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2004 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 (%) 400,000 50 358,000 350,281 +2.2％ 250,000 200,000 Ordinary Income Ratio 154,183 21.6% 40 40 300,000 181,981 188,980 167,081 150,000 321,264 Initial Forecast 181,000 176,019 △3.7％ +9.1％ 30 161,300 26.2% 29.8% 200,000 26.7% 25.8% 25.3% Ordinary Income Ratio 30 26.3% 23.4% Sales 20 21.9% 20 100,000 Initial Forecast 54,000 Sales 50,000 Ordinary Income 56,343 36,051 35,341 38,990 46,977 10 H1 FY02 H2 上期 下期 H2 H1 FY03 91,684 94,000 10 +2.5％ 75,041 47,023 Ordinary Income △16.6％ +33.1％ 0 下期 Initial Forecast 99,000 100,000 0 上期 上期 H1 Initial Forecast 351,000 下期 H2.E [予測] FY04 0 0 2002/3 FY02 2003/3 FY03 2004/3 FY04.E [予測] Sales by Product Category (\million) (\million) 300,000 400,000 Annual Trend 350,281 250,000 321,264 Integrated Circuits 300,000 200,000 181,981 176,019 △3.7% +9.1% 188,980 167,081 150,000 76,596 159,424 81,955 △6.9% 88,029 68,753 145,349 Integrated Circuits 77,530 +8.6% 200,000 Discrete Semiconductor Devices 71,394 100,000 122,172 Discrete Semiconductor Devices 62,281 59,891 50,000 Passive Components 0 72,447 13,437 11,875 12,544 14,766 13,662 15,959 下期 上期 上期 H2 H1 FY02 159,485 +0.0% 161,300 154,183 Displays 358,000 +2.2% 63,804 69,193 △4.5% 68,599 +7.5% 下期 H2 FY03 上期 H1 下期 H2.E [予測] FY04 137,793 +1.1% 100,000 12,144 12,183 △2.9%12,642 +4.1% 13,957 18,649 +16.9%17,246 +23.6% H1 136,252 Passive Components 25,312 24,688 28,429 29,916 0 2002/3 FY02 2003/3 FY03 24,825 +0.6% 35,895 +20.0% 2004/3 [予測] FY04.E Displays Sales by Region / Overseas Sales Ratio (\million) (%) 300,000 60 54.6% 54.6% 53.9% 53.9% 56.1% 54.2% Overseas 250,000 Sales Ratio Annual Trend (\million) (%) 400,000 350,281 54.6% 321,264 50 300,000 200,000 181,981 △3.7% 188,980 167,081 Japan 87,068 75,936 74,388 70,015 79,963 △8.2% 80,657 +8.4% 30 Europe 0 9,417 10,798 上期 H1 FY02 82,024 64,962 8,964 10,240 10,014 9,872 下期 上期 H2 160,620 △0.5% 40 30 162,735 +7.5% 135,891 70,929 50 200,000 20 Asia N.&S. America 145,951 Overseas Sales Ratio Japan 100,000 50,000 161,456 55.1% 60 161,300 154,183 150,000 176,019 40 +9.1% 53.9% 358,000 +2.2% H1 69,346 84,399 +2.9% 78,335 +13.0% 10 8,096 7,582△24.3% 7,621 △5.9% 9,469 10,034+1.6% 9,404 △0.7% 0 下期 H2 FY03 上期 H1 下期 H2.E [予測] FY04 100,000 20 151,371 Asia 10 0 N.&S. America 18,381 18,111 21,039 19,342 2002/3 FY02 2003/3 FY03 15,204 △16.1% 19,439 Europe ＋0.5% 0 2004/3 FY04.E [予測] [H1 FY2005] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Integrated Circuits Overseas Total Asia N.&S. America TOTAL Europe -10.0 -3.5 -4.2 -18.8 +20.9 -6.9 -7.5 -2.5 +1.4 -28.1 -1.0 -4.5 +5.9 -7.0 +1.5 -25.0 -15.6 -2.9 Displays -7.1 +42.7 +67.1 -14.4 +2.3 +16.9 TOTAL -8.2 +0.1 +2.9 -24.3 +1.6 -3.7 Discrete Semiconductor Devices Passive Components [Full Year FY2005 Forecast] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Overseas Total Asia N.&S. America TOTAL Europe Integrated Circuits -2.7 +3.1 +2.0 -0.7 +23.6 +0.0 Discrete Semiconductor Devices -0.7 +2.4 +6.7 -22.7 -0.8 +1.1 +14.4 -6.1 +2.3 -20.6 -16.8 +0.6 +4.8 +34.3 +53.0 -6.3 -4.2 +20.0 -0.5 +4.5 +7.5 -16.1 +0.5 +2.2 Passive Components Displays TOTAL Cost of Sales/S.G.&A. Expenses/Operating Income Annual Trend (\million) 300,000 (%) 70 62.2% (\million) 400,000 (%) 70 61.8% 61.5% 350,281 250,000 Cost of Sales Ratio 54.3% 51.9% 55.3% 54.8% 60 321,264 53.0% 300,000 200,000 188,980 167,081 Cost of Sales 154,183 150,000 103,854 S.G.&A. Expenses Ratio 50,000 Operating Income 98,142 87,652 94,776 50 40 161,300 99,638 +1.5% 97,362 +11.1% 16.2% 27,113 36,113 18.8% 198,630 15.6% 39,000 29,061 61,475 18.3% 20 31,702 32,299 +8.0% △17.2% 30 H1 FY02 下期 H2 100,000 下期 H2 H1 FY03 上期 H1 下期 H2.E [予測] FY04 19.6% 96,122 50,641 46,359 +33.8% △17.6% 34,647 上期 64,000 △6.4% S.G.&A. 20 Expenses Ratio 56,175 17.5% 66,458 0 上期 40 Cost of Sales 68,363 0 60 200,000 10 30,345 185,795 197,000 +6.0% 30 17.4% 29,362 55.0% Cost of Sales Ratio 50 24.2% 100,000 S.G.&A. Expenses 181,981 176,019 △3.7% +9.1% 358,000 +2.2% S.G.&A. Expenses 17.9% 97,000 +0.9% 0 10 Operating Income 0 2002/3 FY02 2003/3 FY03 2004/3 FY04.E [予測] Capital Expenditures Annual Trend （\million） （\million） 70,000 60,000 60,000 60,000 50,000 47,279 Integrated Circuits 50,000 40,000 20,000 Discrete Semiconductor Devices 10,000 Passive Components Displays 21,043 18,809 6,754 2,740 1,034 4,248 上期 2,098 602 3,511 下期 H2 H1 FY02 19,273 20,000 18,956 10,080 9,193 7,447 5,841 40,000 30,000 21,591 9,046 Initial Forecast 45,000 15,801 17,721 24,516 0 Others 40,547 Initial Forecast 22,000 30,000 Integrated Circuits 27,000 43,326 5,957 13,548 4,838 6,452 5,666 8,148 533 1,629 1,933 951 1,869 545 上期 下期 H2 H1 FY03 20,000 763 1,994 2,553 1,237 2,506 上期 3,947 下期 H2.E [予測] H1 FY04 10,000 Discrete Semiconductor Devices 13,289 1,637 13,814 7,759 1,484 3,498 2,478 2002/3 2003/3 0 FY02 FY03 2,000 Passive Components 4,500 Displays 6,500 2004/3 [予測] FY04.E Others Net Income, Depreciation, and Capex Annual Trend （\million） 60,000 30,217 40,000 （\million） 80,000 38,560 25,936 60,000 30,445 20,055 17,869 20,000 50,500 40,000 Net 20,000 Net 0 0 （\million） （\million） 100,000 150,000 100,000 Net Income 50,000 20,618 18,655 Depreciation 23,730 28,408 32,614 20,388 24,902 27,139 -18,956 -21,591 0 Capex 64,497 48,085 -24,516 -18,809 26,808 35,192 Net Income 39,273 53,003 52,138 52,041 -43,326 -40,547 62,000 50,000 21,358 27,142 Depreciation 48,500 0 -17,721 -42,279 Capex -60,000 -50,000 -50,000 上期 H1 下期 H2 上期 H1 下期 H2 上期 H1 下期 H2.E [予測] -100,000 2002/3 FY02 FY03 FY04 FY02 2003/3 FY03 2004/3 FY04.E [予測] Shareholders' Equity/Total Assets (\million) (%) Shareholders' Equity to Total Assets 86.3% 1,000,000 78.6% 84.0% 84.7% 77.4% 800,000 764,494 805,692 740,627 676,577 648,335 819,551 694,335 85.3% 853,257 90 80 Total Assets 70 728,041 639,210 60 591,408 600,000 50 509,717 40 400,000 Total 30 Shareholders' Equity 20 200,000 10 0 0 2000/3 FY00 2001/3 FY01 2002/3 FY02 2003/3 FY03 2003/9 FY04, H1 2004/3[予測] FY04.E ＲＯＥ･ＲＯＡ (%) 20.0 15.7% 15.0 13.9% ROE 10.0 11.1% 12.2% 8.1% 7.8% 8.8% 6.4% 6.9% 5.0 6.6% 7.5% 5.2% ROA 0.0 2000/3 FY00 2001/3 FY01 2002/3 FY02 2003/3 FY03 2003/9H1 FY04, 2004/3[予測] FY04.E Balance Sheets (Assets) （Unit: \million） End of FY04 H1 End of FY03 Increase/ Decrease ＜ Assets ＞ 529,676 519,996 9,680 311,359 310,054 1,305 Notes and Accounts Receivable - Trade 98,391 84,350 14,041 Securities 45,408 47,960 -2,552 Inventories 50,616 52,487 -1,871 4,631 4,752 -121 12,709 14,159 -1,450 7,108 6,820 288 -550 -590 40 Current Assets Cash and Time Deposits Prepaid Pension Cost Deferred Tax Assets Others Allowance for Doubtful Notes and Accounts Balance Sheets (Assets) （Unit: \million） End of FY04 H1 End of FY03 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 289,875 209,836 285,696 216,201 4,179 -6,365 148,821 146,664 2,157 321,342 26,537 52,170 14,480 -353,516 2,774 77,264 314,428 25,584 52,537 17,779 -340,792 2,871 66,623 6,914 953 -367 -3,299 -12,724 -97 10,641 68,203 7,061 2,360 -360 57,355 6,966 2,691 -389 10,848 95 -331 29 819,551 805,692 13,859 Balance Sheets (Liabilities) （Unit: \million） End of FY04 H1 End of FY03 Increase/ Decrease ＜ Liabilities ＞ 79,015 83,681 -4,666 Notes and Accounts Payable - Trade 20,634 17,866 2,768 Other Accounts Payable 30,512 22,975 7,537 Accrued Income Taxes 14,027 28,732 -14,705 Deferred Tax Liabilities 833 747 86 13,008 13,359 -351 45,962 45,190 772 Deferred Tax Liabilities 27,530 26,253 1,277 Liability for Retirement Benefits 16,514 16,801 -287 1,918 2,135 -217 124,978 128,871 -3,893 Current Liabilities Others Long-Term Liabilities Allowance for Directors' Retirement Benefits Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY04 H1 End of FY03 Increase/ Decrease ＜ Minority Interests ＞ 238 Minority Interests 244 -6 ＜ Shareholders' Equity ＞ Common Stock 86,969 86,969 - Capital Surplus 102,403 102,403 - Retained Earnings Net Unrealized Gain on Available-forSale Securities Foreign Currency Translation Adjustments 531,329 506,100 25,229 2,006 709 1,297 -28,096 -19,362 -8,734 -277 -243 -34 694,335 676,577 17,758 819,551 805,692 13,859 Treasury Stock-at Cost Total Shareholders' Equity Total Liabilities, Minority Interests and Shareholders' Equity Statements of Income （Unit: \million） FY04 H1 FY03 H1 Increase/ Decrease （% change） 181,981 188,980 -6,999 -3.7 99,638 98,142 1,496 +1.5 82,342 (45.2%) 90,838 (48.1%) -8,496 (-2.9%) -9.4 Selling, General, and Administrative Expenses 31,701 29,362 2,339 +8.0 Operating Income (Operating Income Ratio） 50,641 (27.8%) 61,475 (32.5%) -10,834 (-4.7%) -17.6 Non-Operating Income 2,011 2,448 -437 Non-Operating Expenses 5,675 7,581 -1,906 46,977 (25.8%) 56,343 (29.8%) -9,366 (-4.0%) Net Sales Cost of Sales Gross Profit (Gross Profit Ratio） Ordinary Income (Ordinary Income Ratio） -16.6 Statements of Income （Unit: \million） FY04 H1 FY03 H1 Increase/ （% change） Decrease 6 123 -117 1,238 435 803 Income before Income Taxes and Minority Interests 45,745 56,031 -10,286 Income Taxes - Current 14,039 25,206 -11,167 Income Taxes - Deferred 4,884 -1,777 6,661 Minority Interests(- Loss) 13 -12 25 26,808 (14.7%) 32,614 (17.3%) -5,806 (-2.6%) Extraordinary Gains Extraordinary Losses Net Income (Net Income Ratio） -18.4 -17.8