Advantest e fy13_20130725_slide

July 25, 2013

© Copyright 2013 ADVANTEST CORPORATION

1

All Rights Reserved - Advantest Corporation

July 25, 2013

Advantest Corporation

Information Meeting

2013/7/25 All Rights Reserved - Advantest Corporation

NOTE ・Prepared in accordance with US GAAP ・Cautionary Statement with Respect to Forward-Looking Statements This presentation contains “forward-looking statements” that are based on Advantest's current expectations, estimates and projections. These

statements include, among other things, a discussion of Advantest’s business strategy, outlook and expectations as to market and business

developments, production and capacity plans. These forward-looking statements can be identified by use of forward-looking terminology are

subject to known and unknown risks, uncertainties and other factors that may cause Advantest’s actual results, levels of activity, performance

or achievements to be materially different from those expressed or implied by such forward-looking statements. These factors include: (i)

changes in demand for the products and services produced and offered by Advantest’s customers, including semiconductors,

communications services and electronic goods; (ii) circumstances relating to Advantest’s investment in technology, including its ability to

develop in a timely fashion products that meet the changing needs of semiconductor manufacturers and communications network equipment

and component makers and service providers; (iii) significant changes in the competitive environment in the major markets where Advantest

purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and

(iv) changes in economic conditions, currency exchange rates or political stability in the major markets where Advantest procures materials,

components and supplies for the production of its principal products or where its products are produced, distributed or sold. A discussion of

these and other factors which may affect Advantest’s actual results, levels of activity, performance or achievements is contained in the

“Operating and Financial Review and Prospects”, “Key Information - Risk Factors” and “Information on the Company” sections and elsewhere

in Advantest’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

July 25, 2013


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Financial Results for 1st Quarter of FY2013

July 25, 2013

Hiroshi Nakamura

Director and Managing Executive Officer

2013/7/25 4

Summary of Results

FY2012 FY2013

1Q 2Q 3Q 4Q 1Q Q on Q

（%）

Y on Y

（%）

Orders 46.2 25.3 24.4 29.8 39.5 32.1 -14.5

Sales 33.4 39.2 24.6 35.7 30.1 -15.8 -9.8

Cost of Sales 15.8 18.7 11.6 17.9 14.8 -17.5 -6.3

Gross Profit 17.6 2.05 13.0 17.8 15.3 -14.0 -12.9

Operating Income 0.8 2.6 -2.6 -0.7 -3.3 - -

Non-Operating Income 0.5 -0.8 -0.4 -0.7 0.5 - -5.7

Income Before Tax 1.3 1.8 -3.0 -1.4 -2.8 - -

Net Income 0.4 1.1 -3.4 -1.9 -3.6 - -

Order Backlog 36.4 22.5 22.3 16.4 25.8 57.0 -29.1


(¥B)

July 25, 2013


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2013/7/25

29.3

14.3 14.8 17.2

20.1

8.3

3.8 1.9

3.2

8.1

2012 1Q

2012 2Q

2012 3Q

2012 4Q

列2 2013 1Q

All Rights Reserved - Advantest Corporation 5

4.7 4.6 4.7 6.7 6.7

4.2 3.2 2.7 2.9 4.7

37.6

18.1 16.7

20.4

28.2

46.2

0

37.6

Orders by Segment

25.3

18.1 16.7

20.4

0

FY2012

2Q 4Q 1Q 3Q

FY2012

2Q 4Q 1Q 3Q

FY2013 FY2013

1Q 1Q

24.4

29.8

39.5

28.2

30 30 Semiconductor & Component Test Systems

Mechatronics Systems

Services, Support & Others

Memory Test Systems

Non-Memory Test Systems

Note: Intersegment transactions have been eliminated from totals

Semiconductor & Component Test System

Breakdown

(¥B)

2013/7/25 All Rights Reserved - Advantest Corporation 6

3.6 1.4 1.8 1.7 2.5

2.3 2.5 1.8 1.3

3.3

6.3

3.1 3.5 3.7 2.7

5.8

2.1 0.6 2.8 3.3

9.7

6.3 9.6 11.8

14.3

15.7

7.2 3.6

5.6

8.9

2.8

2.7 3.5

2.9

4.5

Japan

S Korea

Taiwan

China

Americas

Europe

Others

25.3

0

46.2

FY2012

2Q 4Q 1Q 3Q

FY2013

29.8

24.4

1Q

Orders by Region

39.5

(¥B)

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2013/4/25

20.4 24.1

15.9

22.9

15.1

5.5

6.4

1.5

4.4

5.9

2012 1Q

2012 2Q

2012 3Q

2012 4Q

列2 2013 1Q


4.6 5.1 4.9 5.5 5.6

3.3 4.9

2.5 3.0 3.5

25.9

30.5

17.4

27.3 21

33.4

0

25.9

Sales by Segment

39.2

30.5

17.4

27.3

0

FY2012

2Q 4Q 1Q 3Q

FY2012

2Q 4Q 1Q 3Q

FY2013 FY2013

1Q 1Q

24.6

35.7

30.1

21.0

30 30 Semiconductor & Component Test Systems

Mechatronics Systems

Services, Support & Others

Memory Test Systems

Non-Memory Test Systems

Note: Intersegment transactions have been eliminated from totals

Semiconductor & Component Test System

Breakdown

(¥B)


3.5 2.7 1.6 1.8 1.8

2.3 2.7 2.2 1.9 2.2

5.5 3.8 5.3 6.0

3.0

3.2 5.1

1.4 2.3 2.9

7.0 8.3

6.5

14.0

9.9

9.0

13.1

4.1

5.6

7.6

2.9

3.5

3.5

4.1

2.7

Japan

S Korea

Taiwan

China

Americas

Europe

Others

39.2

0

33.4

FY2012

2Q 4Q 1Q 3Q

FY2013

35.7

24.6

1Q

Sales by Region

Overseas Sales %

91.4%

90.9%

88.3%

86.1%

91.1%

30.1

(¥B)

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2013/7/25

16.8 17.9

15.6

18.5 18.6

0.8 2.6

-2.6 -0.7

-3.3

52.6% 52.3% 53.1%

49.8% 50.8%

Gross Margin


Gross Profit/Operating Expenses/ Operating Income

FY2012

2Q 4Q 1Q 3Q

FY2013

1Q

Operating Expenses, Operating Income

50%

Operating Income

Operating Expenses

(¥B)


8.1 8.6

7.5

8.9 8.7

2.9 2.8

4.0

2.9

1.4 1.9 1.9 2.0 2.3 2.3

R&D Capex Depreciation and Amortization

R&D Expenses/Capex/ Depreciation and Amortization

R&D as a % of Sales

24.1% 22.0%

30.6%

24.8%

FY2012

2Q 4Q 1Q 3Q

FY2013

1Q

29.0%

(¥B)

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2013/7/25

51.0 66.0 67.7

42.3

42.8 42.6

32.4

32.4 32.4 26.5

31.4 32.0 25.0

25.0 25.0 17.2

17.5 18.4 18.7

10.4 12.5

12.8 13.8 14.4

35.2 41.7 44.9

14.8 15.8 16.1

35.4 41.4 41.3 7.2 8.3 8.5 33.2

31.8 32.7 24.5

27.0 25.4

50.0 45.7 47.3


Balance Sheet

213.1

June 30, 2013

June 30, 2012

230.6 225.5

March 30, 2013

125.7 141.2 142.6

59.0% 62.6% 61.8%

June 30, 2013

June 30, 2012

March 30, 2013

(Equity)

Liabilities & Equity

Property, Plant & Equipment

Other Assets

Cash, Cash Equivalents

Accounts Receivable

Inventories

Other Current Assets

Intangible Assets

Goodwill

Accounts Payable

Other Liabilities

Common Stock

Capital Surplus

Retained Earnings & Others

Corporate Bonds

Other Current Liabilities

213.1

230.6 225.5 (¥B)

(Equity-to-Assets

Ratio)

Assets


We reiterate our anticipation of increased demand from the memory market.

FY2013 1Q Business Update

July 25th 2013 Haruo Matsuno

Representative Director, President & CEO

July 25, 2013


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2013/7/25 13 All Rights Reserved - Advantest Corporation

Memory Tester Business

• Short-term demand driven by higher-speed mobile DRAM

• A new round of investment in front-end processes also foreseen

• Advantest’s new T5831, launched in July, poised to capture additional share in the NAND tester market

Non-Memory Tester Business

• Low-end smartphones establishing a stronger presence

• High-end smartphone growth may sag in the near term

• 2H demand projections are positive for a broad range of device types including logic ICs and CIS

FY2013 Business Outlook Update 1


Handler Business, Device Interface Business

• In addition to the recovery of the memory tester market, finer-pitch semiconductor processes for mobile devices will drive high-volume demand in 2H

• Business environment is improving

• Probe cards currently under customer evaluation, expected to contribute to revenues in 2H

Service & Support Business

• Sales continue to find a higher range, correlating with the growth of Advantest’s installed base

FY2013 Business Outlook Update 2

July 25, 2013


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Entry Into Wireless Test Market

• In June 2013, Advantest completed its acquisition of W2BI, a provider of system level test automation software focusing on wireless communications

Advantest’s global sales and support network can rapidly expand sales of W2BI’s highly-regarded solutions

New Business Update 1

USD 700M

USD 1,400M

2012 2017

Estimated value of

mobile device system level test

software market (source: Advantest)

（CY）


Entry Into SSD Tester Market

• Advantest has announced a new SSD tester platform enabling the first truly scalable, platform-based solutions for SSDs

Enterprise storage demand is powering high growth in the SSD tester market

The SSD tester market is forecast to triple in value to ¥9 billion within the next three years

Advantest’s experience in the NAND flash memory market and expertise in test position us to capture a significant share of this market


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2013/7/25

Status of Other New Businesses

• Corporate reorganization executed in June with the goal of accelerating new business development

Additional sales resources allocated to new businesses

• Advantest’s CloudTesting Service launched in the USA

Europe and Taiwan rollouts scheduled for FY2013 Currently focusing on brand recognition for the

service, with substantial revenue contributions expected in FY2014

17 All Rights Reserved - Advantest Corporation


2013/7/25

Status of Other New Businesses

• First order for new F7000 Electron Beam lithography tool secured

• New terahertz wave spectroscopy and analysis platform developed

Coverage extends from R&D to industrial uses, including in-line monitoring of manufacturing processes

Expands the horizons of applied terahertz technology

18 All Rights Reserved - Advantest Corporation


F7000 EB Lithography System Terahertz Wave Spectroscopy & Analysis Platform

July 25, 2013


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2013/7/25 19

FY2013 Forecast


FY2012 Results

FY2013 Full Year Forecast

Orders 125.7 165.0

Sales 132.9 160.0

Operating Income 0.1 13.0

Net Income -3.8 9.8

FY2013 exchange rate assumptions: 1USD＝¥90, 1Euro＝¥120

Interim Dividend Per Share ¥10 ¥10 (forecast)

Year-End Dividend Per Share ¥10 ¥10 (forecast)

(¥B)

2013/7/25 20

FY2013 Earnings Outlook:


0

50

100

150

200

250

FY2012 FY2013¥132.9B

Core Businesses Approx. ¥103B

Approx. ¥9B

FY2012

(¥B)

¥160B

FY2013

Approx. ¥21B

Approx. ¥116B

Category

Breakdown

New Businesses: +¥4B YoY GOAL: Expand sales in new markets including EB lithography and terahertz analysis GOAL: Aggressively develop wireless test and SSD tester businesses

Tester Peripherals: +¥10B YoY Device Interfaces GOAL: Win probe card customers GOAL: Expand share within existing DI categories

Services GOAL: Grow earnings from maintenance services by expanding sales

Core Businesses: +¥13B YoY Semiconductor Test Systems GOAL: Maintain share of mobile test segment GOAL: Improve share of CIS, power IC, MCU segments GOAL: Corral demand for high-speed DRAM and NAND memory testers

Test Handlers GOAL: Maintain demand correlation with memory testers

Approx. ¥13B

Approx. ¥31B

Tester Peripherals

New Businesses

Advantest e fy13_20130725_slide

Economy & Finance

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