FY 2005 Half Year Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2005 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) Ordinary Income Ratio 29.8% 181,589 +4.6％ 161,300 25.8% Sales 26.0% 300,000 30 26.2% 200,000 18.9% Initial Forecast 58,000 Ordinary Income 25.9% 24.3% 経常利益率 20 21.9% 46,977 35,341 45,106 20 150,000 10 100,000 58,695 56,343 30 Ordinary Income Ratio 250,000 29.3% 100,000 50,000 +24.9％ 50,000 34,305 91,684 92,083 0 0 H2 下期 FY03 H2 下期 H1 上期 FY04 H1 上期 H2.E 下期[予測] FY05 93,000 +1.0％ 10 Ordinary Income 0 △24.0％ H1 上期 40 Sales 173,649 150,000 355,630 350,000 +10.1％ 181,981 382,000 +7.4％ 350,281 40 200,411 188,980 50 400,000 Initial Forecast 202,000 250,000 200,000 (%) (\million) 50 450,000 300,000 0 2003/3 FY03 2004/3 FY04 2005/3[ 予測 ] FY05.E Sales by Product Category Annual Trend (\million) (\million) 450,000 300,000 382,000 +7.4％ 400,000 350,281 250,000 355,630 350,000 Integrated Circuits 200,411 200,000 +10.1％ 188,980 181,981 Integrated Circuits 150,000 181,589 300,000 +4.6％ 173,649 86,828 88,029 81,955 73,491 +5.9％ 76,488 +4.1％ Discrete Devices 72,447 63,804 69,193 69,815 50,000 Passive Components 0 Discrete Semiconductor Devices 200,000 150,000 100,000 Semiconductor Displays 155,446 250,000 161,300 71,394 159,424 76,506 +10.6％ 12,445 12,418 +2.2％ 136,252 11,673 △6.0％ 12,144 15,959 13,957 18,649 17,923 +32.1％ 24,630 20,300 下期 H2 上期 H1 H2 下期 上期 H1 H2.E 下期[予測] FY04 50,000 +13.3％ FY05 149,632 +7.6％ Passive Components +4.7％ 12,544 FY03 139,009 73,125 100,000 12,183 上期 H1 163,317 +5.1％ 24,688 24,601 29,916 36,573 2003/3 2004/3 0 FY03 FY04 24,119 △2.0％ 44,930 +22.9％ 2005/3[予測 ] FY05.E Displays Sales by Region / Overseas Sales Ratio Annual Trend (\million) (%) 300,000 (\million) 60 450,000 Overseas Sales Ratio 56.1% 250,000 53.9% 53.9% 55.8% Overseas Sales Ratio 53.9% 57.2% 56.0% 55.9% 382,000 +7.4％ 400,000 50 350,000 350,281 355,630 200,411 200,000 Japan 150,000 +10.1％ 188,980 181,981 +4.6％ 173,649 161,300 87,068 181,589 40 300,000 85,772 +7.3％ 79,963 76,799 79,979 +4.1％ 100,000 84,399 82,024 0 156,762 69,346 79,057 10,014 9,872 8,096 9,469 7,582 10,034 7,229 10,563 上期 H1 下期 H2 上期 H1 下期 H2 FY03 FY04 96,603 +14.5％ 30 7,905 +4.3％ 10,130 +1.0％ 上期 H1 181,384 +11.0％ 20 Asia 163,457 100,000 10 6,859 0 △5.6％ 下期[予測] H2.E 10 N.&S. America 50,000 △5.1％ FY05 40 200,000 84,780 9,969 50 30 151,371 +7.2％ 60 Japan 20 150,000 N.&S. 50,000 America Europe 161,456 165,752 +5.7％ 250,000 74,388 Asia 56.6% (%) 0 14,764 △0.3％ 20,597 20,996 △2.4％ 18,111 19,342 14,811 2003/3 2004/3 FY03 FY04 2005/3[予測 ] FY05.E Europe 0 [H1 FY2005] Sales by Region and Products (Y.o.Y.) (Unit: %) Overseas Japan Overseas Total Asia N.&S. America TOTAL Europe Integrated Circuits +2.3 +9.7 +10.3 +6.1 +3.6 +5.9 Discrete Semiconductor Devices +5.9 +13.5 +15.3 -3.7 +14.5 +10.6 Passive Components +3.1 +1.7 +7.6 -4.9 -11.4 +2.2 +41.1 +25.8 +32.6 +49.1 -19.3 +32.1 +7.3 +12.4 +14.5 +4.3 +1.0 +10.1 Displays TOTAL [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 +4.7 +5.5 +6.9 -3.0 -6.1 +5.1 Discrete Semiconductor Devices +1.9 +11.4 +13.3 -1.7 +6.7 +7.6 Passive Components +1.8 -4.0 +1.1 -16.7 -11.6 -2.0 +28.0 +19.4 +23.5 +29.2 -7.6 +22.9 +5.7 +8.7 +11.0 -0.3 -2.4 +7.4 Displays TOTAL Cost of Sales/S.G.&A. Expenses/Operating Income Annual Trend (\million) (%) 300,000 70 60.1% Cost of Sales Ratio 250,000 54.3% 51.9% 54.8% 54.8% 55.9% Cost of Sales 150,000 181,981 87,652 S.G.&A. Expenses 50,000 Operating Income 0 111,942 99,638 95,218 17.4% 15.6% 61,475 39,000 34,647 +12.3％ 31,701 50,641 19.9% 300,000 181,589 194,856 40 109,158 250,000 34,565 43,865 17.2% 34,453 +8.7％ FY03 50 H1 上期 下期 H2 FY04 上期 H1 S.G.&A. Expenses Ratio 19.6% 68,363 18.6% 66,266 100,000 37,446 50,000 18.8% 71,900 +8.5％ S.G.&A. 96,122 94,507 △5.8％ Operating Income 0 △20.3％ 下期[予測] H2.E FY05 20 Expenses 10 89,000 10 34,985 40 Cost of Sales 30 20 +8.3％ 54,015 221,100 +13.5％ 185,795 200,000 150,000 0 H2 下期 382,000 +7.4％ +14.6％ 20.6% +6.7％ H1 上期 60 54.8% 350,281 355,630 24.2% 29,362 53.0% 50 30 S.G.&A. Expenses Ratio 100,000 (%) 57.9% +4.6％ 173,649 161,300 98,142 Cost of Sales Ratio 350,000 +10.1％ 188,980 400,000 60 200,411 200,000 (\million) 450,000 0 2003/3 FY03 2004/3 FY04 2005/3[予測 ] FY05.E Capital Expenditures （¥million） Annual Trend 60,000 （\million） 90,000 48,932 50,000 80,000 Integrated Circuits 34,237 30,000 35,568 38,500 51,958 Discrete Semiconductor Devices 15,070 17,171 18,956 9,193 17,721 14,137 10,080 13,363 5,957 0 70,000 60,000 21,591 10,000 Integrated Circuits 23,429 40,000 20,000 84,500 1,657 9,576 5,666 8,148 533 1,629 1,933 951 1,869 545 H1 上期 H2 下期 FY03 6,452 902 2,471 763 1,994 2,553 4,115 H1 上期 H2 下期 FY04 843 3,532 2,967 6,176 3,323 上期 H1 Passive Components Discrete Semiconductor Devices 40,547 23,129 40,000 30,000 27,500 19,273 16,028 20,000 13,814 Displays 1,665 10,000 Others 下期[予測] H2.E FY05 50,000 0 1,484 3,498 2,478 2003/3 FY03 2,500 6,500 Passive Components Displays 4,466 6,669 2004/3 FY04 9,500 2005/3[予測 ] FY05.E Others Net Income, Depreciation, and Capex Annual Trend （\million） 80,000 （¥million） 50,000 38,560 25,936 30,445 26,853 30,000 10,000 64,497 60,000 22,196 57,298 19,500 40,000 Net Net 20,000 -10,000 0 -2,697 （\million） 150,000 （\million） 100,000 100,000 Net Income 50,000 Depreciation 32,614 20,388 24,902 27,139 -18,956 -21,591 0 Capex 36,908 26,808 24,181 21,358 36,733 17,267 53,003 63,717 52,041 45,539 -40,547 -51,958 54,000 50,000 28,968 21,031 Net Income 50,000 Depreciation 0 -17,721 -34,237 -35,568 -48,932 -84,500 -50,000 -50,000 Capex -100,000 -100,000 上期 H1 下期 H2 FY03 上期 H1 下期 H2 FY04 上期 H1 下期 [予測] H2.E FY05 FY03 2003/3 2004/3 FY04 2005/3[ FY05.E 予測 ] Shareholders' Equity/Total Assets (%) (\million) 86.3% 1,200,000 84.0% 84.5% 83.8% 84.0% 77.4% 80 Shareholders' Equity to Total Assets 1,000,000 903,697 591,408 740,627 639,210 676,577 915,915 70 846,799 805,692 764,494 800,000 600,000 90 757,090 715,938 769,309 60 Total Assets 50 40 30 400,000 Total 20 Shareholders' Equity 200,000 10 0 0 2001/3 FY01 2002/3 FY02 2003/3 FY03 2004/3 FY04 2004/9 FY05, H1 2005/3[予測] FY05.E ＲＯＥ･ＲＯＡ (%) 20.0 15.7% 15.0 ROE 10.0 12.2% 9.2% 10.0% 8.1% 7.3% 6.4% 6.9% 5.0 7.7% 8.4% 6.1% 5.2% ROA 0.0 FY01 2001/3 FY02 2002/3 FY03 2003/3 FY04 2004/3 FY05, H1 2004/9 FY05.E 2005/3[予測] Dividends / Payout Ratio (\) （%) 100.00 18.7% 20.0 90.00 85.0 18.0 80.00 16.0 70.00 Year-End 14.0 42.50 60.00 12.0 55.0 50.00 Payout Ratio 10.0 10.3% 40.00 5.7% 30.00 20.00 10.00 19.0 3.4% 9.50 9.50 19.0 9.50 19.0 9.50 2.6% 9.50 22.0 8.0 First Six Monts 42.50 6.0 4.9% 42.50 4.0 12.50 2.0 9.50 9.50 12.50 0.00 0.0 FY00 '00/3 FY01 '01/3 FY02 '02/3 FY03 '03/3 FY04 '04/3 FY05.E '05/3[ 予 /Est.] Balance Sheets (Assets) （Unit: \million） End of FY05 H1 End of FY04 Increase/ Decrease ＜ Assets ＞ 567,001 530,121 36,880 Cash and Time Deposits 315,098 307,319 7,779 Notes and Accounts Receivable - Trade 111,259 92,508 18,751 Securities 46,625 38,681 7,944 Inventories 66,635 61,493 5,142 4,047 4,356 -309 14,211 12,425 1,786 339 3,560 -3,221 9,320 10,279 -959 -536 -502 -34 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 FY05 H1 End of FY04 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 336,695 233,437 316,678 217,627 20,017 15,810 153,288 150,281 3,007 349,852 29,251 54,351 26,792 -380,098 2,253 101,004 328,069 27,691 53,968 23,592 -365,976 2,632 96,419 21,783 1,560 383 3,200 -14,122 -379 4,585 92,922 6,614 1,802 -335 89,084 5,794 1,835 -294 3,838 820 -33 -41 903,696 846,799 56,897 Balance Sheets (Liabilities) （Unit: \million） End of FY05 H1 End of FY04 Increase/ Decrease ＜ Liabilities ＞ 100,936 88,319 12,617 Notes and Accounts Payable - Trade 26,416 23,431 2,985 Other Accounts Payable 40,882 42,213 -1,331 Accrued Income Taxes 10,196 9,339 857 Deferred Tax Liabilities 20,905 10,400 10,505 234 381 -147 12,498 11,892 606 Deferred Tax Liabilities 45,349 42,246 3,103 Liability for Retirement Benefits 36,000 32,857 3,143 Allowance for Directors' Retirement Benefits 7,423 7,404 19 Others 1,925 1,983 -58 146,286 130,566 15,720 Current Liabilities Others Long-Term Liabilities Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY05 H1 End of FY04 Increase/ Decrease ＜ Minority Interests ＞ 320 Minority Interests 294 26 ＜ 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 598,338 566,749 31,589 3,078 2,673 405 -33,373 -42,556 9,183 -326 -301 -25 757,090 715,938 41,152 903,696 846,799 56,897 Treasury Stock-at Cost Total Shareholders' Equity Total Liabilities, Minority Interests and Shareholders' Equity Statements of Income （Unit: \million） FY05 H1 FY04 H1 Increase/ Decrease （% change） Net Sales 200,411 181,981 18,430 +10.1 Cost of Sales 111,942 99,638 12,304 +12.3 Gross Profit (Gross Profit Ratio） 88,469 (44.1%) 82,342 (45.2%) 6,127 (-1.1%) +7.4 Selling, General, and Administrative Expenses 34,453 31,701 2,752 +8.7 Operating Income (Operating Income Ratio） 54,015 (27.0%) 50,641 (27.8%) 3,374 (-0.8%) +6.7 5,230 2,011 3,219 550 5,675 -5,125 58,695 (29.3%) 46,977 (25.8%) 11,718 (+3.5%) Non-Operating Income Non-Operating Expenses Ordinary Income (Ordinary Income Ratio） +24.9 Statements of Income （Unit: \million） FY05 H1 Increase/ （% change） Decrease FY04 H1 5 6 -1 145 1,238 -1,093 Income before Income Taxes and Minority Interests 58,555 45,745 12,810 Income Taxes - Current 22,696 14,039 8,657 Income Taxes - Deferred -890 4,884 -5,774 Minority Interests(- Loss) 16 13 3 36,733 (18.3%) 26,808 (14.7%) 9,925 (+3.6%) Extraordinary Gains Extraordinary Losses Net Income (Net Income Ratio） +28.0 +37.0 Statements of Cash Flow （Unit: \million） FY05 H1 FY04H1 Increase/ Decrease Operating Activities Ⅰ 6 . Increase (-decrease) in Net Liability for Retirement Benefits 58,555 21,200 334 -1,362 -3,340 292 45,745 21,526 8 -1,187 3,326 -165 12,810 -326 326 -175 -6,666 457 Decrease (-increase) in Notes and Accounts Receivables Trade -17,155 -15,691 -1,464 -4,171 139 -4,310 3,165 3,589 -424 5,431 62,950 4,189 61,481 1,242 1,469 1,035 1,383 -8,503 56,866 1,273 -28,366 34,388 -238 1,383 19,863 22,478 1 . Income before Income Taxes and Minority Interests 2 . Depreciation and Amortization 3 . Amortization of Goodwill 4 . Interest and Dividends Income 5 . Foreign Currency Exchange Losses (Gains) 7. 8 . Decrease (-increase) in Inventories 9. Increase (-decrease) in Notes and Accounts Payables Trade 10 . Other Subtotal 11 . Interest and Dividends -Received 12 . Interest -Paid 13 . Income Taxes -Refunded (-paid) Net Cash Provided by Operating Activities Statements of Cash Flow （Unit: \million） FY05 H1 Ⅱ 2 . Purchases of Securities and Investment Securities Proceeds from Sales and Repayments of Securities 3. and Investment Securities 4 . Purchases of Property, Plant and Equipment 5 . Other Net Cash Used in Investing Activities 2 . Other Net Cash Used in Financing Activities Ⅴ Ⅵ Ⅶ 8,110 -32,528 18,124 3,541 -25,168 18,227 4,569 -7,360 -103 -37,786 565 -43,515 -20,130 194 -23,335 -17,656 371 -20,180 -5,048 -26 -5,074 -1,484 -35 -1,519 -3,564 9 -3,555 7,013 -9,934 16,947 Financing Activities 1 . Dividends Paid Ⅳ Increase/ Decrease Investing Activities 1 . Decrease (-increase) in Time Deposits Ⅲ FY04 H1 Effect of Exchange Rate Changes on Cash and Cash Equivalents Net Increase (-decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of the Term 15,290 -402 15,692 310,578 322,549 -11,971 Cash and Cash Equivalents at End of the Term 325,868 322,147 3,721 Cash and Cash Equivalents FY05 H1 304,832 Securities TOTAL 21,036 325,868 FY04 H1 Increase/Decrease 301,119 3,713 21,027 322,147 9 3,721