FY2004 Year End Presentation Note: This material is a translation of the material which Company prepared for the analyst meeting after the announcement of FY 2004 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 (\million ) Revised Forecast 358,000 450,000 409,335 396,000 355,630 400,000 360,079 350,281 350,000 300,000 (%) +11.4％ +1.5％ 40 321,264 34.0% Sales 36.2% 30 250,000 200,000 150,000 50 23.4% 26.2% 148,136 122,581 100,000 75,041 91,684 25.9% 27.5% Revised Forecast 94,000 92,083 +0.4％ Ordinary Income Ratio 20 Ordinary Income 109,000 +18.4％ 10 50,000 0 0 '00/3 FY00 '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 '05/3[ 予想 ] FY05.E Sales by Product Category (\million) 450,000 396,000 409,335 +11.4% 400,000 355,630 360,079 350,281 350,000 +1.5% 321,264 175,454 300,000 155,446 148,339 159,424 250,000 △ 2.5% 175,991 +13.2% Integrated Circuits 145,349 200,000 150,000 143,113 157,236 122,172 100,000 50,000 0 36,400 42,691 32,226 '00/3 FY00 136,252 139,009 +2.0% 25,312 24,688 24,601△0.4% 33,952 28,429 29,916 36,573+22.3% '01/3 FY01 '02/3 FY02 '03/3 FY03 '04/3 FY04 152,566 Discrete Semiconductor Devices +9.8% 25,793 Passive Components 41,649 Displays +4.8% +13.9% '05/3[ 予想 ] FY05.E Sales by Region / Overseas Sales Ratio Overseas Sales Ratio (\million) 450,000 52.7% 409,335 54.6% 53.9% 400,000 360,079 60 +11.4% +1.5% 50 321,264 300,000 250,000 350,281 (%) 396,000 355,630 52.0% 350,000 55.9% 58.2% 165,389 196,293 161,456 170,483 156,762 40 Japan +5.5% △ 2.9% 30 145,951 200,000 Asia 150,000 130,137 150,259 135,891 100,000 151,371 163,457 195,117 20 +19.4% +8.0% 10 50,000 0 29,937 28,576 29,521 34,205 '00/3 FY00 '01/3 FY01 18,381 21,039 '02/3 FY02 18,111 14,811△18.2%14,496 △2.1% 19,342 20,597+6.5% 20,996 +1.9% '03/3 FY03 '04/3 FY04 '05/3[ FY05.E予想 ] N.&S. America 0 Europe [FY2004] Sales by Region and Products (Y.o.Y.) （ Unit:%） Overseas Japan Overseas Total Asia N.&S. America TOTAL Europe Ingegrated Circuits -5.9 +1.3 -0.3 -9.8 +36.7 -2.5 Discrete Semiconductor Devices -1.0 +4.1 +8.4 -24.1 +4.3 +2.0 Passive Components +7.8 -4.2 +4.8 -22.1 -14.6 -0.4 Displays +1.1 +42.1 +62.1 +1.7 -0.6 +22.3 -2.9 +5.3 +8.0 -18.2 +6.5 +1.5 TOTAL [FY2005 Forecast] Sales by Region and Products (Y.o.Y.) （ Unit:%） Overseas Japan Integrated Circuits Discrete Semiconductor Devices Passive Components Displays TOTAL Overseas Total Asia N.&S. America TOTAL Europe +10.0 +16.6 +17.9 +3.6 +9.1 +13.2 -3.0 +18.0 +22.0 -2.8 +3.1 +9.8 +4.4 +5.1 +14.1 -34.1 +0.7 +4.8 +14.0 +13.8 +17.6 +25.4 -12.6 +13.9 +5.5 +16.0 +19.4 -2.1 +1.9 +11.4 Cost of Sales/S.G.&A. Expenses/Operating Income (\million) (%) 450,000 409,335 396,000 61.8% 400,000 360,079 350,281 350,000 300,000 250,000 321,264 49.8% 179,379 53.0% 52.6% 215,366 198,630 70 185,795 355,630 +11.4% 60 +1.5% 54.8% 55.3% 194,856 219,000 +4.9% +12.4 % Cost of Sales Ratio 50 40 Cost of Sales 200,000 150,000 100,000 50,000 58,357 30 56,225 17.5% 16.2% 122,342 13.7% 137,743 68,363 66,266 △ 3.1% +5.6% 19.5% 18.6% 17.7% 56,175 66,458 70,000 96,122 94,507 △ 1.7% S.G.&A. Expenses Ratio 107,000 +13.2 % 0 20 S.G.&A. 10 Operating Income 0 FY00 '00/3 FY01 '01/3 FY02 '02/3 FY03 '03/3 FY04 '04/3 FY05.E '05/3[ 予想 ] Capital Expenditures (\million) 130,000 125,020 120,000 110,000 100,000 60,876 90,000 80,000 Revised Forecast 60,000 70,000 60,000 57,996 50,000 24,197 51,958 32,137 40,000 30,000 13,736 14,103 3,633 1,895 2,491 14,533 15,411 FY00 '00/3 FY01 '01/3 FY02 '02/3 0 27,000 16,028 13,289 13,814 2,500 1,665 1,484 5,500 4,466 3,498 7,500 2,478 6,668 FY03 '03/3 FY04 '04/3 Integrated Circuits Discrete Semiconductor Devices 23,129 19,273 4,838 1,637 7,759 32,500 40,547 15,801 20,000 10,000 43,326 75,000 FY05.E '05/3[ 予想 ] Passive Components Displays Others ROE・ROA (%) 20.0 15.7% 15.0 13.9% ROE 10.0 11.1% 12.2% 8.1% 9.2% 9.0% 7.7% 7.7% '04/3 FY04 '05/3[ 予想 ] FY05.E 6.4% 6.9% ROA 5.0 5.2% 0.0 '00/3 FY00 '01/3 FY01 '02/3 FY02 '03/3 FY03 Dividends / Payout Ratio （\) （%) 100.0 15.1% 90.0 85.0 16.0 Payout Ratio 14.0 80.0 12.0 10.3% 70.0 42.50 60.0 55.0 8.0 50.0 5.7% 40.0 4.9% 30.0 3.4% 20.0 10.0 Year End 10.0 Dividends 9.50 9.50 0.0 FY00 '00/3 19.0 19.0 19.0 2.6% 42.50 22.0 42.50 9.50 12.50 9.50 9.50 9.50 FY01 '01/3 FY02 '02/3 FY03 '03/3 9.50 6.0 4.0 Half Year 2.0 Dividends 12.50 0.0 FY04 '04/3 FY05.E '05/3[予想] Balance Sheets (Assets) （Unit: \million） End of FY04 End of FY03 Increase/ Decrease ＜ Assets ＞ Current Assets 530,121 519,996 10,125 307,319 310,054 -2,735 Notes and Accounts Receivable - Trade 92,508 84,350 8,158 Securities 38,681 47,960 -9,279 Inventories 61,493 52,487 9,006 4,356 4,752 -396 12,425 14,159 -1,734 3,560 － 3,560 10,279 6,820 3,459 -502 -590 88 Cash and Time Deposits Prepaid Pension Cost Deferred Tax Assets Refundable Income Taxes Others Allowance for Doubtful Notes and Accounts Balance Sheets (Assets) （Unit: \million） End of FY04 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 316,678 217,627 285,696 216,201 30,982 1,426 150,281 328,069 27,691 53,968 23,592 -365,976 2,632 96,419 146,664 314,428 25,584 52,537 17,779 -340,792 2,871 66,623 3,617 13,641 2,107 1,431 5,813 -25,184 -239 29,796 89,084 5,794 1,835 -294 57,355 6,966 2,691 -389 31,729 -1,172 -856 95 846,799 805,692 41,107 Balance Sheets (Liabilities) （Unit: \million） End of FY04 End of FY03 Increase/ Decrease ＜ Liabilities ＞ 88,319 83,681 4,638 Notes and Accounts Payable - Trade 23,431 17,866 5,565 Other Accounts Payable 42,213 22,975 19,238 Accrued Income Taxes 10,400 28,732 -18,332 Deferred Tax Liabilities 381 747 -366 11,892 13,359 -1,467 42,246 45,190 -2,944 32,857 26,253 6,604 Liability for Retirement Benefits 7,404 16,801 -9,397 Allowance for Directors' Retirement Benefits 1,983 2,135 -152 130,566 128,871 1,695 Current Liabilities Others Long-Term Liabilities Deferred Tax Liabilities Total Liabilities Balance Sheets (Liabilities) （Unit: \million） End of FY04 End of FY03 Increase/ Decrease ＜ Minority Interests ＞ Minority Interests 294 244 50 ＜ Shareholders' Equity ＞ Common Stock 86,969 86,969 0 Capital Surplus 102,403 102,403 0 Retained Earnings 566,749 506,100 60,649 2,673 709 1,964 -42,556 -19,362 -23,194 -301 -243 -58 715,938 676,577 39,361 846,799 805,692 41,107 Net Unrealized Gain on Available-forSale Securities Foreign Currency Translation Adjustments Treasury Stock-at Cost Total Shareholders' Equity Total Liabilities, Minority Interests and Shareholders' Equity Statements of Income （Unit: \million） Increase/ Decrease FY04 FY03 Net Sales 355,630 350,281 5,349 +1.5 Cost of Sales 194,856 185,795 9,061 +4.9 Gross Profit (Gross Profit Ratio） 160,773 (45.2%) 164,486 (47.0%) -3,713 (-1.8%) -2.3 Selling, General, and Administrative Expenses 66,266 68,363 -2,097 -3.1 Operating Income (Operating Income Ratio） 94,507 (26.6%) 96,122 (27.4%) -1,615 (-0.8%) -1.7 Non-Operating Income 4,058 4,649 -591 Non-Operating Expenses 6,482 9,087 -2,605 92,083 (25.9%) 91,684 (26.2%) 399 (-0.3%) Ordinary Income (Ordinary Income Ratio） （% change） +0.4 Statements of Income （Unit: \million） FY04 Increase/ （% change） Decrease FY03 12,812 190 12,622 3,826 1,399 2,427 101,070 90,476 10,594 Income Taxes - Current 26,731 35,280 -8,549 Income Taxes - Deferred 10,537 2,198 8,339 Minority Interests(- Loss) 84 -6 90 63,717 (17.9%) 53,003 (15.1%) 10,714 +2.8% Extraordinary Gains Extraordinary Losses Income before Income Taxes and Minority Interests Net Income (Net Income Ratio） +20.2