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
© Copyright 2013 ADVANTEST CORPORATION
2
All Rights Reserved - Advantest Corporation
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
All Rights Reserved - Advantest Corporation
(¥B)
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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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)
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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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
All Rights Reserved - Advantest Corporation 7
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)
2013/4/25 All Rights Reserved - Advantest Corporation 8
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)
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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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
All Rights Reserved - Advantest Corporation 9
Gross Profit/Operating Expenses/ Operating Income
FY2012
2Q 4Q 1Q 3Q
FY2013
1Q
Operating Expenses, Operating Income
50%
Operating Income
Operating Expenses
(¥B)
2013/7/25 All Rights Reserved - Advantest Corporation 10
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)
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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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
All Rights Reserved - Advantest Corporation 11
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
All Rights Reserved - Advantest Corporation
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
© Copyright 2013 ADVANTEST CORPORATION
7
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
2013/7/25 14 All Rights Reserved - Advantest Corporation
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
© Copyright 2013 ADVANTEST CORPORATION
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2013/7/25 15 All Rights Reserved - Advantest Corporation
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)
2013/7/25 16 All Rights Reserved - Advantest Corporation
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
New Business Update 2
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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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
New Business Update 3
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
New Business Update 4
F7000 EB Lithography System Terahertz Wave Spectroscopy & Analysis Platform
July 25, 2013
© Copyright 2013 ADVANTEST CORPORATION
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2013/7/25 19
FY2013 Forecast
All Rights Reserved - Advantest Corporation
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:
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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