Financial Results for the 1st Half of the Fiscal Year ending March 31, 2018

November 21, 2017

Financial Results Highlights

2

(million JPY)

Average exchange rate：FY March2017 1st Half JPY107.07/USD1 FY March2018 1st Half JPY111.13/USD1

Six months ended September30,2016

Six months ended September 30,2017

Comparison Comparison（％）

Net Sales 24,058 25,270 +1,212 +5.0%

Operating

Income 645 889 +244 +37.9%

Profit Attributable to Owners of

Parent 359 844 +485 +135.0%

+1,102

+100

△ 1,451

+612

+308

△ 3

+560

△ 16

+1,212

△ 2,000 0 2,000

Silicon IC

OPTO Ic

RF decvices

SAW

Contract manufacturing

Others

Microwave applications

Microwave tubesand rader components

Total

Net sales according to the product

12,195 13,297

355 456

3,543 2,093

1,637 2,249

3,594 3,902 3

1 1,515 2,075 1,211 1,195 24,058

25,270

0

26,000

17/3 1stHalf 18/3 1stHalf

(million JPY) (million JPY)

3

Satellite communication

Smartphones

Automotive/Industry

645

889

0

500

1,000

1,500 ＋805 △325

△48 △428

Impact of real sales fluctuation

Analysis of Operating Income

4

(million JPY)

17/3 1stHalf

Depreciation cost

Others Exchange fluctuation

18/3 1stHalf

＋240

JPY107.07/USD1 ↓

JPY111.13/USD1

Personnel expenses

5

FY March2017 FY March2018

Comparison

Comparison

（％） Budget Forecast

Net Sales 48,865 52,000 52,000 +3,135 +6.4%

Operating

Income 1,792 2,500 2,500 +708 +39.5%

Profit Attributable to Owners of

Parent 616 2,500 2,500 +1,884 +305.7%

(million JPY)

Outlook of FY March2018 No changes from the outlook announced on April 28,2017

Average exchange rate：FY March2017 JPY108.60/USD1 FY March2018 JPY110.60/USD1 *Expectation

Sales forecast according to the product

24,865 27,665

672 930 6,226

4,190 3,541 4,260

7,486 7,550

4 5 3,302

4,560 2,763 2,840 48,865

52,000

0

10,000

20,000

30,000

40,000

50,000

60,000

17/3 18/3Forecast

+2,799

+257

△ 2,036

+718

+63

+1

+1,257

+76

+3,135

-4,000 -2,000 0 2,000 4,000

Silicon IC

OPTO Ic

RF decvices

SAW

Contract manufacturing

Others

Microwave applications

Microwave tubesand rader components

Total

(million JPY) （million JPY）

6

JPY108.60/USD1

JPY110.60/USD1 （Including exchange differences +355)

Comparison by item Increase and decrease

+1,069

+18

+4

△ 238

△ 255

+3

+410

+450

+1,460

△ 2,000 0 2,000

Silicon IC

OPTO Ic

RF decvices

SAW

Contract manufacturing

Others

Microwave applications

Microwave tubesand rader components

Total

Sales forecast according to the product

13,297 14,368

456 474 2,093

2,097 2,249

2,011

3,902 3,648

1 4 2,075 2,485 1,195

1,645 25,270 26,730

0

27,000

18/3 1stHalf 18/3 2ndHalf Forecast

(million JPY)

(million JPY)

7

Comparison by item

Increase and decrease （ 1stHalf → 2ndHalf ）

1,792

2,088

＋250 2,500

0

2,500

5,000

Impact of real sales fluctuation

Personnel expenses

Others Exchange fluctuation

Depreciation cost

Analysis of operating Income（The comparison of 1H）

8

(million JPY)

△680

△305 △645

JPY108.60/USD1 ↓

JPY110.60/USD1

17/3 18/3 Forecast

Transition of net sales and operating income

9

（Net Sales：million JPY） （Operating Income ：million JPY）

645

1,147

889

1,611

24,058 24,807 25,270 26,730

0

500

1,000

1,500

2,000

2,500

3,000

0

10,000

20,000

30,000

17/3 1stHalf 17/3 2ndHalf 18/3 1stHalf 18/3 2ndHalf

Forecast

Operating Income Net Sales

2,199

1,766

2,214

3,450

2,766

4,100

1,705

2,059

2,170 1,887 1,964

2,270

0

1,000

2,000

3,000

4,000

5,000

13/3 14/3 15/3 16/3 17/3 18/3Forecast

Capital Investment

Depreciation

1,762

1,649

158

463 68

18/3 Forecast

Capital Investment

10

Facility Renewal

Others R&D

Cost down

Production Capability up

（million JPY)

4,100 million yen （43.0%）

（3.9%）

（40.2%）

（11.3%） （1.6%）

Strategy for more Growth

11

Expand the baseline products and launch new businesses

Expand In-automotive and Industrial

Cost down to maintain our share

Existing Product Line

40,272

36,417

42,080 45,220

47,816 48,865 52,000

0

10,000

20,000

30,000

40,000

50,000

60,000

12/3 13/3 14/3 15/3 16/3 17/3 18/3Forecast

Microwave device

External sales ofsubsidiary

Others

Communication

Industrial

Automotive

Audio/Video

12

Trends in net sales of customer application （Consolidated）

MarkLines

（million JPY）

Trends in net sales of “Forword” products

13

0

5,000

10,000

15,000

13/3 14/3 15/3 16/3 17/3 Forecast Initial plan

18/3

SAW

MEMS

Other electronic device products

Microwave device

（million JPY）

Trends in net sales of automotive and industrial products (Including wireless communications device division）

0

5,000

10,000

15,000

20,000

13/3 14/3 15/3 16/3 17/3 18/3Forecast

Others

Power supply IC

Operational Amplifier/Comparator

Smartkey(SAW)

Communications(GaAsICs)

Foundry

ECU ※

Navigation

14

（million JPY)

MarkLines

Wireless Communications Device Division

※ECU : Electronic Control Unit

Automotive

Industrial

Trends in net sales of automotive products (Including wireless communications device division）

0

5,000

10,000

15,000

13/3 14/3 15/3 16/3 17/3 18/3Forecast

Smartkey(SAW)

Communications(GaAsICs)Foundry

ECU ※

Navigation

15

（million JPY）

MarkLines

Wireless Communications Device Division

※ECU : Electronic Control Unit

By Application

Power Control Unit NJW4***

Navigation system NJW4184/4185/4186 NJW4119 NJW4131/32 NJW4128/4152/4154/4155 NJW4196

Compressors NJW4***

Meter panel NJW4188/11 NJW4140/28 NJW4381

Headlight control NJW4185

EFI ECU NJW4***

Keyless Entry NJW4184 NJW4113/16

EPS NJW4113 NJW4140

Camera NJW4152 NJW4750

Roof Lamp NJW4615A

Cooler Box NJW4305

Blower Motor NJW4822

Custom design

Std Product

Exhaust Sensors NJW4***

ISS Power NJW4*** PMAP32

16

17

For Power Control Unit of HV system For Collision mitigation brake system of ADAS

For Resolver Drive system For LED Head Light system

By application concerning EV

MARKLINES

AFE（Analog Front End）

18

Sensor Op amp ADC Analog to Digital Converter

MCU Micro Controll er Unit

Amplification Digitalization Signal processing Sensing

０１０１０ The flow of electrical signals

Incorporated in one chip

We can make products that included all of these.

Wireless Communications

Device

Transmission

Analog signal･･･ Sound,Light,Movement,Temperature,Pressure,and so on

Industrial products

19

0

2,000

4,000

6,000

13/3 14/3 15/3 16/3 17/3 18/3Forecast

Others

Power supply IC

OperationalAmplifier/Comparator

(million JPY)

※It was reclassified from FY March 2018

Product development of AC Servo

FANUC Corporation

30%

YASKAWA Electric

Corporation 20%

Mitsubishi Electric

17%

Panasonic 15%

Others 18%

Market share of AC Servomotor

Servomotor

Servo amplifier

Use cases of AC Servomotor: Industrial robot

Example of control ・Position ・Speed ・Torque

Command Control Drive・detect

Power supply

Controller Servo amplifier Servomotor

20

Feedback

Current sensor amplifier

Opt IC for Optical rotary encoder(Industrial)

21

Optical rotary encoder is not Influenced by the magnetic field

Opt devices

LED

Lenz

Code wheel

The rotation direction and lever switch of DSC

The position of seat and angle

Flowmeter Gas meters

LiDAR or VR (The position of laser irradiation and angle )

3D Laser radar

100m detection

with NJL5820R

Examples

22

23

-The car will become technologically advanced , for example ADAS and Self-driving and environmental aspects (EV/PHV Hybrid) -From domestic to WW development -Electronic advances in the world -High speed internet

Automotive Wireless communications device Microwave

Responding to change towards 2020

Completed PA(Power Amp),install it in FEM(Front End Module)

24

LNA

SW

Antenna

SAW

PA

RF IC

SAW Filter

Low Noise Amp

Switch

We started to mass production toward Japanese tablets since 2017/9

FE Module SAW+SW/LNA +PA

Resin mold

AU wire

Matching circuit

CMOS Control IC

SMD parts

Epoxy resin substrate

HBT PA MMIC

LPWA（Low Power Wide Area)

25

Spread of IoT devices

By: Ministry of Internal Affairs and Communications Data rate (Mbps）

Low Power Wide Area

Chip,RFmodule Base station Cloud

IoT service Pets monitoring

Water meters

Low Power Wide Area

NB-IoT

IoT device (billion)

Forecast

Mobile network

○GNSS SAW/LNA/FEM ★High-precision positioning･･･Self-driving , DSSS(driving safety support systems) L2/L5/L6 Band

26

FEM corresponding to QZSS “MICHIBIKI”

L5

1176.45MHz

1227.60MHz

1575.42MHz

L2 L1

1278.75MHz

L6Source：qzss.go.jp

SAW LNA

IN OUT

Module (SAW+LNA+SAW）

27

V2X/GPS COLLISION PREVENTION INTER-VEHICLE ROAD-VEHICLE

In development Supplied as chipset *Gray color are other SoC(System on a Chip) vendor’s product

PA

LNA SW

SAW Filter

ANT

Receiver

Transmitter

RFIC

*SAW: Foundry Service Product

V2X (Vehicle to X) Same technology for smartphones

Monocular camera Millimeter wave radar

Pedestrian

Microwave products

28

2,726

3,270

0

500

1,000

1,500

2,000

2,500

3,000

3,500

17/32ndHalf

18/32ndHalf

（million JPY）

Microwave tubes

Microwave applications

+37.3%

△1.3%

Good sales of BUC/LNB for global xpress

29

Equipment for replacement

Ku-band antenna

GX Ka-band antenna

Replacement

Equipment for replacement Antenna ball・Waveguide part

Our BUC/LNB

Since high-speed communication and seamless service area can be realized ,

demand for replacement rapidly increases

0

400

800

1H 2H

Budget Forecast[¥M] Price

Ship for GX devices（for the new）

New

18/3

Up512kbps/Down2Mbps

Each time connected to the other companies multiple satellite

Up5Mbps/Down50Mbps

Always connected to GX dedicated satellite

0

200

400

600

800

1,000

1,200

2016/3 2017/3 BUD 2018/3 Medium-term 2019/3 Medium-term 2020/3 Medium-term

Expansion of fields and applications of sensors [¥M]

New product

Iot set business

Existing product applications

● Vending machine use

Existing product applications

New product

● Biometric sensing For air conditioners Presence detection sensor

● New module

■ Parking lot inventory management ■ Street light ■ Door phone

Iot set business

●Mansion repair , Security sensor

Real rate Real rate JPY 110.00/USD1 JPY110.00/USD1 JPY110.00/USD1

30

Distance measurement

module

Doppler module Doppler module NJR4266

31

Company Management by segment

General purpose

automotive

Industry

IoT

Thank you for your kind attention.

32