FY2005 Year End Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2006 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 Revised Forecast 382,000 （\million） （ 百万円） 450,000 409,335 400,000 369,023 36.2% 350,281 350,000 355,630 +3.8％ （ ％） 40.0 387,500 +5.0％ 321,264 30.0 300,000 26.2% 250,000 Ordinary Income Ratio 25.9% 23.4% 21.5% 200,000 150,000 Revised Forecast 93,000 148,136 100,000 75,041 91,684 92,083 21.5% 20.0 Sales 79,320 83,500 △13.9％ +5.3％ 10.0 Ordinary Income 50,000 0 0.0 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[ 予想 ] FY06.E Sales by Product Category （（\million） 百万円） 450,000 409,335 369,023 400,000 350,281 350,000 175,454 355,630 +5.0％ 321,264 300,000 159,424 250,000 +3.8％ 387,500 155,446 159,022 +2.3％ 171,478 ＋7.8％ 145,349 Integrated Circuits 200,000 150,000 157,236 136,252 139,009 25,312 24,688 24,601 33,952 28,429 29,916 36,573 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 122,172 100,000 50,000 42,691 0 141,787 +2.0％ 23,610 △4.0％ 146,611 ＋3.4％ 23,602 △0.0％ 44,603 +22.0％ 45,807 +2.7％ '05/3 FY05 '06/3[ 予想 ] FY06.E Discrete Semiconductor Devices Passive Components Displays Sales by Region / Overseas Sales Ratio （（\million） 百万円） 450,000 58.9% 409,335 54.6% 53.9% 55.9% 387,500 400,000 369,023 52.0% 350,000 300,000 56.1% 350,281 （ ％） 60.0 355,630 Overseas Sales Ratio +5.0％ +3.8％ 50.0 321,264 196,293 159,445 161,456 250,000 156,762 161,852 △1.5％ 40.0 +3.2％ Japan 145,951 30.0 200,000 Asia 150,000 150,259 151,371 100,000 163,457 174,159 +6.5％ 193,998 +11.4％ 135,891 50,000 0 20.0 10.0 28,576 34,205 18,381 21,039 18,111 19,342 14,811 20,597 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 13,990△5.5％ 12,955 △7.4％ 19,021△7.7％ 21,101 +10.9％ 0.0 '05/3 FY05 '06/3[ 予想 ] FY06.E N.&S. America Europe [FY2005] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Overseas Total Asia N.&S. America Europe TOTAL Integrated Circuits +3.6 +0.9 +1.9 -9.7 -3.0 +2.3 Discrete Semiconductor Devices -2.3 +4.8 +7.2 -9.2 -3.4 +2.0 Passive Components -1.7 -5.3 +1.4 -19.1 -16.6 -4.0 Displays +24.8 +20.1 +25.6 +33.5 -16.5 +22.0 TOTAL +3.2 +4.2 +6.5 -5.5 -7.7 +3.8 [FY2006 Forecast] Sales by Region and Products (Y.o.Y.) (Unit: %) Japan Overseas Overseas Total Asia N.&S. America Europe TOTAL Integrated Circuits +1.2 +14.9 +15.4 +14.2 +9.4 +7.8 Discrete Semiconductor Devices +1.3 +4.7 +6.9 -13.7 -0.9 +3.4 Passive Components -4.5 +2.4 +7.4 -31.0 +3.1 ‐ 0.0 Displays -20.2 +18.6 +16.2 -2.5 +56.7 +2.7 TOTAL -1.5 +10.1 +11.4 -7.4 +10.9 +5.0 Cost of Sales/S.G.&A. Expenses/Operating Income （\million） （ ％） 70.0 （ 百万円） 450,000 409,335 400,000 350,281 350,000 300,000 250,000 61.8% 52.6% 321,264 53.0% 185,795 215,366 355,630 369,023 387,500 +3.8％ +5.0％ 59.9% 59.9% 54.8% 194,856 60.0 Cost of Sales Ratio 50.0 221,132 +13.5％ 232,000 +4.9％ 40.0 Cost of Sales 198,630 200,000 150,000 30.0 56,225 17.5% 100,000 13.7% 50,000 137,743 19.6% 68,363 56,175 18.6% 19.5% 66,266 71,836 75,500 +8.4％ +5.1％ 19.5% S.G.&A. Expenses Ratio 20.0 S.G.&A. 10.0 66,458 96,122 94,507 76,054 △19.5％ 80,000 +5.2％ 0 Operating Income 0.0 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[ 予想 ] FY06.E Capital Expenditures （（\million） 百万円） 140,000 125,020 120,000 100,000 Revised Forecast 84,500 60,876 85,171 80,000 38,295 60,000 51,958 32,137 40,000 20,000 62,000 43,326 15,801 14,103 2,491 40,547 15,411 '01/3 FY01 '02/3 FY02 22,052 16,028 13,814 7,759 0 23,129 19,273 13,289 4,838 1,637 28,500 '03/3 FY03 1,484 3,498 2,478 6,668 '04/3 FY04 1,665 4,466 1,689 17,500 6,779 2,000 4,000 16,353 10,000 Integrated Circuits Discrete Semiconductor Devices Passive Components Displays Others '05/3 FY05 '06/3[ FY06.E 予想 ] Net Income, Depreciation, and Capex （\million） （ 百万円） 80,000 48,085 60,000 40,000 20,000 64,497 57,298 14,053 52,500 7,066 Net 0 （ 百万円） （\million） '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 39,273 53,003 63,717 52,138 52,041 45,539 -43,326 -40,547 -51,958 '05/3 FY05 '06/3[ 予想 ] FY06.E 200,000 150,000 100,000 86,164 45,135 54,500 Net Income 50,000 52,909 47,102 60,000 Depreciation 0 -50,000 -85,171 -62,000 -125,020 -100,000 -150,000 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[予 想] FY06.E Capex Shareholders' Equity/Total Assets （\million） (百万円) 1,200,000 1,100,000 (%) 86.3% 84.0% 84.5% 85.8% 90 Shareholders’ Equity 株主資本比率 to Total Assets 80 85.2% 77.4% 1,000,000 900,000 846,799 867,322 805,692 800,000 764,494 700,000 600,000 740,627 639,210 715,938 739,329 901,490 70 773,496 60 676,577 50 総 資 産 Total Assets 591,408 40 500,000 Total 株主資本 Shareholders’ Equity 400,000 300,000 30 20 200,000 10 100,000 0 0 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[予想] FY06.E ROE・ROA （ ％） 18.0 16.0 15.7% 14.0 ROE 12.0 12.2% 9.2% 10.0 8.1% 8.0 6.2% 6.4% 6.0 6.9% 5.2% 4.0 7.2% 7.7% 6.2% ROA 5.3% 2.0 0.0 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[ 予想 ] FY06.E Dividends / Payout Ratio （\） （ 円） 100.0 22.2％ 90.0 In the case of excluding Extraordinary losses 80.0 90.0 85.0 18.9% 70.0 42.5 60.0 （ ％） 24.0 20.0 19.1% 18.0Payout Ratio 45.0 50.0 10.3% 10.0 42.5 30.0 20.0 5.7% 19.0 19.0 9.5 10.0 22.0 9.5 12.5 9.5 9.5 2.6% 9.5 8.0 42.5 4.9% 16.0 Year End 14.0 Dividends 12.0 55.0 40.0 22.0 45.0 6.0 4.0 Half Year 2.0Dividends 12.5 0.0 0.0 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3 FY05 '06/3[ 予想 ] FY06.E Balance Sheets (Assets) （Unit: \million） End of FY05 End of FY04 Increase/ Decrease ＜ Assets ＞ 512,990 530,121 -17,131 270,337 307,319 -36,982 Notes and Accounts Receivable - Trade 93,078 92,508 570 Securities 58,175 38,681 19,494 Inventories 68,037 61,493 6,544 3,676 4,356 -680 12,138 12,425 -287 Refundable Income Taxes 1,645 3,560 -1,915 Others 6,494 10,279 -3,785 -594 -502 -92 Current Assets Cash and Time Deposits Prepaid Pension Cost Deferred Tax Assets Allowance for Doubtful Notes and Accounts Balance Sheets (Assets) （Unit: \million） End of FY05 End of FY04 Increase/ Decrease ＜ A ssets ＞ Buildings and Structures 354,332 253,958 156,327 316,678 217,627 150,281 37,654 36,331 6,046 M achinery, Equipment and vehicles 364,086 328,069 36,017 31,391 64,582 33,181 -395,610 27,691 53,968 23,592 -365,976 3,700 10,614 9,589 -29,634 1,803 98,570 89,781 7,253 1,785 -250 2,632 96,419 89,084 5,794 1,835 -294 -829 2,151 697 1,459 -50 44 867,322 846,799 20,523 Fixed Assets Property, Plant and Equipm ent Tools and Furniture Land Construction in Progress Accum ulated Depreciation Intangible Fixed Assets Investm ents and O ther Assets Investm ent Securities Deferred Tax Assets O thers Total Investm ents and O ther Assets Total A ssets Balance Sheets (Liabilities) （Unit: \million） End of FY05 End of FY04 Increase/ Decrease ＜ Liabilities ＞ 85,964 88,319 -2,355 Notes and Accounts Payable - Trade 22,153 23,431 -1,278 Other Accounts Payable 42,260 42,213 47 Accrued Income Taxes 8,873 10,400 -1,527 Deferred Tax Liabilities 477 381 96 12,199 11,892 307 41,688 42,246 -558 38,896 32,857 6,039 805 7,404 -6,599 1,986 1,983 3 127,652 130,566 -2,914 Current Liabilities Others Long-Term Liabilities Deferred Tax Liabilities Liability for Retirement Benefits Allowance for Directors' Retirement Benefits Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY05 End of FY04 Increase/ Decrease ＜ Minority Interests ＞ 340 Minority Interests 294 46 ＜ Shareholders' Equity ＞ Common Stock 86,969 86,969 0 Capital Surplus 102,403 102,403 0 Retained Earnings 601,689 566,749 34,940 Net Unrealized Gain on Available-for-Sale Securities 2,569 2,673 -104 Foreign Currency Translation Adjustments -34,061 -42,556 8,495 Treasury Stock-at Cost -20,241 -301 -19,940 Total Shareholders' Equity 739,329 715,938 23,391 867,322 846,799 20,523 Total Liabilities, Minority Interests and Shareholders' Equity Statements of Income （Unit: \million） Increase/ Decrease FY05 FY04 Net Sales 369,023 355,630 13,393 +3.8 Cost of Sales 221,132 194,856 26,276 +13.5 Gross Profit (Gross Profit Ratio） 147,891 (40.1%) 160,773 (45.2%) -12,882 (-5.1%) -8.0 71,836 66,266 5,570 +8.4 76,054 (20.6%) 94,507 (26.6%) -18,453 (-6.0%) -19.5 Non-Operating Income 4,767 4,058 709 Non-Operating Expenses 1,501 6,482 -4,981 79,320 (21.5%) 92,083 (25.9%) -12,763 (-4.4%) Selling, General, and Administrative Expenses Operating Income (Operating Income Ratio） Ordinary Income (Ordinary Income Ratio） （% change） -13.9 Statements of Income （Unit: \million） FY05 Extraordinary Gains Increase/ Decrease FY04 21 12,812 -12,791 Extraordinary Losses Income before Income Taxes and Minority Interests 8,500 3,826 4,674 70,841 101,070 -30,229 Income Taxes - Current 20,975 26,731 -5,756 Income Taxes - Deferred 4,691 10,537 -5,846 Minority Interests(- Loss) 40 84 -44 45,135 (12.2%) 63,717 (17.9%) -18,582 -5.7% Net Income (Net Income Ratio） （% change） -29.9% -29.2% Statements of Cash Flow （Unit: \million） Ⅰ Increase/ Decrease FY05 FY04 70,841 47,442 668 -3,318 -1,320 － -6,003 283 716 -5,252 -1,630 5,039 107,465 101,070 45,868 16 -2,370 2,015 -1,837 -8,977 9 -10,822 -12,142 6,604 4,439 123,873 -30,229 1,574 652 -948 -3,335 1,837 2,974 274 11,538 6,890 -8,234 600 -16,408 3,510 1,383 -20,440 91,919 2,569 － -48,077 78,365 941 1,383 27,637 13,554 Consolidated Statements of Cash Flow 1 . Income before Income Taxes and Minority Interests 2 . Depreciation and Amortization 3 . Amortization of Goodwill -net 4 . Interest and Dividends Income 5 . Foreign Currency Exchange Losses (- Gains) 6 . Compensation for Expropriation 7 . Increase(- Decrease) in Net Liability for Retirement Benefits 8 . Write-down of Investment Securities 9 . Decrease(- Increase) in Notes and Accounts Receivables - Trade 10 . Decrease(- Increase) in Inventories 11 . Increase(- Decrease) in Notes and Accounts Payable Trade 12 . Other -net Sub-total 13 . Interest and Dividends- Received 14 . Compensation for Expropriation - Received 15 . Income Taxes -Refunded (- Paid) Net Cash Provided by Operating Activities Statements of Cash Flow （Unit: \million） FY05 Ⅱ Increase/ Decrease Investing Activities 1 . Decrease(- Increase) in Time Deposits 2 . Purchase of Securities and Investment Securities Proceeds from Sales and Repayments of Securities and 3. Investment Securities 4 . Purchases of Property, Plant and Equipment 5 . Other -net Net Cash Used in Investing Activities Ⅲ FY04 15,909 -56,497 31,932 -78,753 -19 -87,429 -4,782 -62,585 39,270 -45,221 1,180 -72,136 20,691 6,088 -7,338 -33,532 -1,199 -15,293 -19,940 -10,096 -1 -30,037 -57 -2,969 -1 -3,028 -19,883 -7,127 0 -27,009 3,994 -15,171 19,165 -21,603 310,578 288,974 -11,971 322,549 310,578 -9,632 -11,971 -21,604 Financing Activities 1 . Purchases of Treasury Stock 2 . Dividends Paid 3 . Other -net Net Cash Used in Financing Activities Ⅳ Effect of Exchange Rate Changes on Cash and Cash Equivalents Ⅴ Net Increase(- Decrease) in Cash and Cash Equivalents Ⅵ Cash and Cash Equivalents at Beginning of Year Ⅶ Cash and Cash Equivalents at End of Year (\million) FY05 Cash and Time Deposits Securities Total Cash and Cash Equivalents FY04 267,934 21,040 288,974 289,546 21,032 310,578 Increase/Decrease -21,612 8 -21,604