FY 2008 Half Year Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2008 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) 250,000 (%) Initial Forecast 196,000 205,249 200,000 193,033 Ordinary Income Ratio Operating 150,000 Income Ratio 194,756 21.6 21.0 189,831 30.0 450,000 400,000 387,790 200,458 199,541 +5.6% △2.8% 22.4 21.6 395,081 17.5 350,000 19.6 20.0 21.0 (%) 30.0 400,000 +1.2% Sales 22.0 20.2 19.5 17.8 Initial Forecast 400,000 (\million) 300,000 Ordinary Income Ratio 19.6 20.0 20.0 19.0 250,000 17.4 17.6 Operating Income Ratio 17.6 15.4 Sales 200,000 100,000 Initial Forecast 35,000 Initial Forecast 39,000 10.0 44,616 43,383 44,366 50,000 41,984+0.6% 40,461 +30.6% 37,975 40,292 38,015 33,212 +4.2% 34,366 33,952 +30.2% 29,205 Operating 78,437 50,000 0.0 H1 H2 FY06 H1 H2 FY07 H1 H2 .E. FY08 150,000 100,000 Income Ordinary 0 Income Initial Forecast 74,000 68,318 Initial Forecast 10.0 83,000 88,000 80,000+13.4% 77,578 +15.1% 69,497 Operating Income Ordinary Income 0.0 0 FY06 FY07 FY08.E. Sales by Product Category Annual Trend (\millon) (\million) 450,000 250,000 400,000 205,249 200,000 193,033 194,756 Integrated Circuits 150,000 199,541 189,831 △2.8% 84,620 82,584 88,810 +1.2% Integrated Circuits 170,087 173,441 174,890 +0.8% +4.2% 250,000 △2.3% Discrete Semiconductor Devices 200,000 74,836 75,799 80,182 76,352 82,095 +2.4% 83,965 12,870 12,127 12,659 12,075 20,602 21,465 21,549 18,819 H H2 H1 H2 0 FY06 FY07 11,735 150,636 156,535 166,060 +6.1% 100,000 12,431 △7.3% +2.9% △21.6% △4.4% 16,900 150,000 +10.0% 50,000 Displays 400,000 350,000 86,080 90,857 Discrete Semiconductor 100,000 Devices Passive Components 395,081 200,458 +5.6% 300,000 85,467 387,790 50,000 17,982 H1 H2.E. FY08 24,998 24,735 24,166 △2.3% 42,068 40,369 FY06 FY07 0 34,882 △13.6% FY08.E. Passive Components Displays Sales by Region / Overseas Sales Ratio Annual Trend (\million) 250,000 Overseas Sales Ratio 60.1 200,000 Japan (%) 70.0 59.4 194,756 193,033 79,163 77,104 61.3 60.8 205,249 63.1 60.9 199,541 200,458 189,831 79,348 74,322 △2.8% +5.6% 73,655 78,281 △7.2% +5.3% 150,000 (\million) Overseas Sales Ratio 450,000 400,000 387,790 395,081 60.0 59.7 61.1 300,000 156,268 62.0 153,671 151,937 △1.1% Asia 50,000 100,056 100,043 109,416 100,321 110,699 106,840 +1.2% +6.5% 200,000 20.0 150,000 50.0 40.0 250,000 30.0 60.0 Japan 40.0 100,000 70.0 400,000 +1.2% 350,000 50.0 (%) Asia 30.0 200,100 209,738 217,540 +3.7% 20.0 100,000 10.0 N.&S. America Europe 0 7,739 8,133 7,399 8,149 8,067 8,417 7,145 8,042 H1 H2 H H2 FY06 FY07 7,110△11.9% 6,631△7.2% 8,075△4.1% 8,705 +8.2% 0.0 H1 H2.E. FY08 50,000 0 15,138 16,282 15,212 16,459 FY06 FY07 13,742 △9.7% 16,780 +2.0% FY08.E. N.&S. 10.0 America Europe 0.0 [H1 FY2008] Sales by Region and Products (Y.o.Y.) (Unit:%) Overseas Japan Integrated Circuits Discrete Semiconductor Devices Passive Components Ovearseas Total Asia N.S.& Americas Total Europe -3.1 -1.4 -0.0 -16.2 -17.1 -2.3 -5.4 +6.0 +7.6 -6.1 -2.4 +2.4 -25.6 -0.4 +3.9 -16.2 -13.0 -7.3 -32.9 -17.0 -20.8 -18.6 +18.5 -21.6 -7.2 -0.0 +1.2 -11.9 -4.1 -2.8 Displays Total [Full Year FY2008 Forecast] Sales by Region and Products (Y.o.Y.) (Unit:%) Overseas Japan Integrated Circuits Discrete Semiconductor Devices Passive Components Overseas Total Asia N.S.& America Total Europe +0.6 +1.1 +1.9 -16.1 -0.2 +0.8 +1.9 +8.0 +9.5 -2.3 -0.2 +6.1 -20.8 +4.4 +10.3 -18.1 -12.1 -2.3 -16.3 -12.6 -16.6 -14.9 +22.8 -13.6 -1.1 +2.8 +3.7 -9.7 +2.0 +1.2 Displays Total Cost of Sales/S.G.&A. Expenses/Operating Income (\million) (%) 250,000 70.0 S.G.&A. Expenses Ratio 62.9 62.7 64.3 63.1 193,033 194,756 189,831 (¥million) (%) 450,000 70.0 S.G.&A. Expenses Ratio 60.0 62.3 60.6 205,249 200,000 Annual Trend 199,541 △2.8% 200,458 +5.6% 62.8 60.0 63.7 400,000 387,790 395,081 350,000 61.5 400,000 +1.2% 50.0 50.0 150,000 Cost of Sales 121,445 122,070 129,467 120,972 △6.6% 122,048 124,827 +2.3% 300,000 40.0 30.0 50,000 S.G.&A. Expenses Operating Income 20.3 19.9 19.3 17.3 37,221 38,733 35,489 38,577 18.3 18.8 36,583 +3.1% 37,616 △2.5% 20.0 150,000 100,000 33,952 40,292 29,205 41,984 +4.2% 38,015 +30.2% H2 H1 H2.E. 0 50,000 30.0 19.6 18.7 18.6 75,954 74,067 74,200 +0.2% 68,318 69,497 80,000 +15.1% FY06 FY07 FY08.E. 0.0 H1 H2 FY06 H1 FY07 FY08 Cost of Sales 40.0 200,000 10.0 34,366 251,516 250,000 100,000 Cost of Sales Ratio 243,516 245,800 △2.3% 0 Cost of 20.0 Sales Ratio S.G.&A. Expenses 10.0 Operating Income 0.0 Net Income, Depreciation, and Capex Annual Trend (¥million) (\million) 60,000 60,000 40,000 37,866 Net 17,902 20,000 30,834 18,634 16,324 6,831 47,159 20,000 24,734 0 (\million) 150,000 (\million) 100,000 100,000 48,304 50,000 Depreciation 0 Capex Net 40,000 0 Net Income 56,500 24,238 24,920 -31,256 24,065 31,748 28,855 28,411 -26,432 -48,982 18,590 32,227 -34,493 27,469 25,530 26,136 31,363 -15,739 -38,260 -50,000 50,000 56,669 47,446 Net Income 60,638 57,500 Depreciation 0 -50,000 53,000 -80,239 -60,925 -54,000 Capex -100,000 -100,000 H1 H2 H1 H2 H1 H2.E. -150,000 FY06 FY07 FY08.E ROE・ROA (%) 10.0 9.2 8.0 ROE 7.7 6.2 6.3 6.7 5.9 6.4 6.0 5.3 5.3 5.7 5.5 5.0 4.0 ROA 2.0 0.0 FY04 FY05 FY06 FY07 FY07 H1 FY08.E. Balance Sheets (Assets) (Unit: \million) End of FY08 H1 End of FY07 Increase/ Decrease < Assets > 595,691 602,704 △7,013 Cash and Time Deposits 353,704 336,122 17,582 Notes and Accounts Receivable - Trade 109,198 102,419 6,779 Securities 30,702 50,538 △19,836 Inventories 79,380 85,059 △5,679 4,548 4,417 131 12,529 11,758 771 386 1,174 △788 Others 5,841 11,792 △5,951 Allowance for Doubtful Notes and Accounts △600 △578 △22 Current Assets Prepaid Pension Cost Deferred Tax Assets Refundable Income Taxes Balance Sheets (Assets) (Unit: \million) End of FY08 H1 End of FY07 Increase/ Decrease < Assets > 360,663 263,612 359,898 275,207 765 -11,595 Buildings and Structures 198,924 196,505 2,419 Machinery and vehicles 465,737 40,726 62,294 14,359 -518,431 2,427 94,623 457,425 39,396 61,617 17,994 -497,731 2,674 82,015 8,312 1,330 677 -3,635 -20,700 -247 12,608 80,149 7,888 6,958 -372 69,763 10,364 2,284 -397 10,386 -2,476 4,674 25 956,354 962,602 -6,248 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 FY08 H1 End of FY07 Increase/ Decrease < Liabilities > 70,797 80,382 △9,585 Notes and Accounts Payable - Trade 21,928 23,649 △1,721 Other Accounts Payable 22,050 34,066 △12,016 Accrued Income Taxes 11,720 8,079 3,641 Deferred Tax Liabilities 651 780 △129 14,447 13,807 640 64,193 64,401 △208 61,156 61,245 △89 1,176 957 219 0 2,159 △2,159 1,861 39 1,822 134,991 144,784 △9,793 Current Liabilities Others Fixed Liabilities Deferred Tax Liabilities Liability for Retirement Benefits Allowance for Directors' Retirement Benefits Others Total Liabilities Balance Sheets (Liabilities) (Unit: \million) End of FY08 H1 End of FY07 Increase/ Decrease < Net Assets > 819,918 813,722 6,196 Common Stock 86,969 86,969 0 Capital Surplus 102,403 102,403 0 Retained Earnings 697,959 676,749 21,210 △67,413 △52,400 △15,013 Unrealized or translated gain/loss Net Unrealized Gain on Available-for-Sale Securities 1,098 3,746 △2,648 3,908 3,614 294 Foreign Currency Translation Adjustments △2,809 131 △2,940 345 349 △4 Total Net Assets 821,363 817,818 3,545 Total of Liabilities and Net Asset 956,354 962,602 △6,248 Shareholders' Equity Treasury Stock-at Cost < Minority Interests > Minority Interests Statements of Income (Unit: \million) FY08 H1 FY07 H1 Increase/ Decrease (% change) Net Sales 199,541 205,249 △5,708 △2.8 Cost of Sales 120,972 129,467 △8,495 △6.6 Gross Profit (Gross Profit Ratio) 78,568 (39.4%) 75,782 (36.9%) 2,786 (2.5%) +3.7 Selling, General, and Administrative Expenses 36,583 35,489 1,094 +3.1 Operating Income (Operating Income Ratio) 41,984 (21.0%) 40,292 (19.6%) 1,692 (1.4%) +4.2 Non-Operating Income 6,506 5,045 1,461 Non-Operating Expenses 3,874 970 2,904 44,616 (22.4%) 44,366 (21.6%) 250 (0.8%) Ordinary Income (Ordinary Income Ratio) +0.6 Statements of Income (Unit: \million) FY08 H1 FY07 H1 Increase/ Decrease Extraordinary Gains 1,530 2,209 △679 Extraordinary Losses 1,043 899 144 Income before Income Taxes and Minority Interests 45,103 45,677 △574 Income Taxes - Current 15,203 11,554 3,649 Income Taxes - Deferred 2,410 5,239 △2,829 Minority Interests(- Loss) 20 27 △7 27,469 (13.8%) 28,855 (14.1%) △1,386 (△0.3%) Net Income (Net Income Ratio) (% change) △ 1.3 △ 4.8 Foreign shareholding ratio Foreign shareholding ratio 1 1 2