Ushio Inc. · TSE:6925
Ushio — FY2022 Earnings Presentation
36 slides from Ushio's earnings presentation, May 2023
Slide 1: Q4 FY2022 financial results introduction
I'm Asahi, General Manager, Corporate Headquarters of USHIO INC. I would like to explain the details of our financial results for Q4 FY2022 based on the financial results materials disclosed on our website yesterday. Now, please see page two of the slides. 1
Slide 2: Three main items overview
Today, I will explain the three main items here. FY2022 revenues and earnings YoY increased. We plan higher revenues and lower earnings in FY2023. In addition, business segments will be significantly changed from the next fiscal year. I will explain the details later on. Please see page four. 2
Slide 3: Agenda: Financial Results for FY2022
Agenda USHIO I. Financial Results for FY2022
Slide 4: Summary of financial results
Here is the financial results summary. Net sales increased by 17.6% to JPY175 billion. The increase in sales was mainly due to the weaker yen in forex and contributions from optical and imaging equipment. Operating profit increased by 21.4% to JPY15.8 billion. In addition to net sales increase, the
Slide 5: Summary of Financial Results
Summary of Financial Results FY2021 (Billions of yen) Result Net Sales 148.8 Operating Profit 13.0 Operating Margin 8.8% Ordinary Profit 15.1 Profit Attributable to Owner of Parent 12.6 EPS (yen) 104.54 uso 112 FOREX (yen) EUR 131 FY2022 Result 175.0 15.8 9.1% 20.1 13.6 115.69 135 141 YoY comparison
Slide 6: Operating profit change breakdown
This is the main breakdown of the JPY2.7 billion increase in operating profit. It increased by JPY2.3 billion thanks to the effect of yen depreciation in foreign exchange. In the business, it increased by JPY3 billion from an increase in sales of lithography equipment, despite lower sales of UV lamp
Slide 7: Results by segment
Net sales increased in all segments, but operating profit decreased in imaging equipment. I will then explain the details of each segment on slide eight. 7
Slide 8: Current business environment
First, let me explain our current business environment. Major change from Q3 is uncertainty of general market conditions in the electronics field. The market for advanced semiconductor package solutions is expected to continue to see increased demand, but there is a current trend toward investment p
Slide 9: Light source segment results
Both sales and profit increased in the light source segment. Net sales increased by 6.9% to JPY61.8 billion. As a result, operating profit increased by 8.8% to JPY9 billion. There were sales and profit loss contributors such as the decrease in sales of light sources for LCD panel-related products du
Slide 10: Optical and imaging equipment results
In optical equipment, net sales increased by 19.4% to JPY57.7 billion and operating profit increased by 55% to JPY7.1 billion. Demand for semiconductor packaging is on the rise, and sales of each lithography equipment are increasing significantly. In addition, concerning light sources for EUV mask i
Slide 11: Latest Status of Promising Products: Optical Equipment
Latest Status of Promising Products: Optical Equipment USHIO + Continued growth in the 1C package market has led to firm orders and inquiries, tut there i to it Lace ead is.a tendency to postpone investment at present for + For further Gernand increase, production capacity was increased (1.3 tines)
Slide 12: Results versus initial plan and forecast
We fell short of our initial plan due to the impact of the deteriorating market conditions for semiconductors and LCDs and the shortage of materials for imaging equipment. However, compared to the forecast made in Q3, our results were better because of minimal impact of light source production adjus
Slide 13: Segment results versus plan and forecast
The results for each segment are shown with the initial plan and the revised forecast in Q3. Light sources exceeded the revised forecast. Our revision was conservative due to concerns about the impact of production adjustments caused by rapidly deteriorating market conditions for semiconductors, LCD
Slide 14: Full-year Forecast for FY2023
USHIO II. Full-year Forecast for FY2023 14
Slide 15: FY2023 full-year forecast
First, we will set EBITDA and ROE as key KPIs along with the start of the new medium-term management plan, which will be explained later today. Details will be explained in the medium-term management plan section. As for our full-year forecast for FY2023, we plan to increase net sales and decrease p
Slide 16: Change in reporting segments
Before starting my explanation by segment, we have reporting segment changes from the conventional product-centered segments to market-centered segments from the Second Medium-Term Management Plan. The detailed background and direction of the changes in segmentation will be explained in the medium-t
Slide 17: FY2023 forecasts by new segment
FY2023 forecasts for each new segment are as shown. In industrial processes, the market conditions for semiconductors, flat panels, and other products in general remained uncertain, and no marked improvement in market conditions could be expected. On the other hand, we expect a decrease in both sale
Slide 18: Segment forecast details
In industrial processes segment, under the market environment assumptions described here, sales of large field stepper for cutting-edge IC package substrates and direct imaging lithography equipment increases slightly from the previous fiscal year because the current trend of investment postponement
Slide 19: EBITDA forecast
As I explained earlier, we expect EBITDA to decrease by JPY2.6 billion, but on the business front, we plan to increase strategic investments in human resources and R&D to achieve our medium-term management plan and future business expansion, while growing mainly in the visual imaging business. Final
Slide 20: Shareholder returns
We will continue to aim for stable dividends in FY2023 and beyond, although we will explain this in detail in the medium-term management plan section. In the first year of the new medium-term management plan, we will conduct a large-scale share buyback of up to JPY30 billion and 20 million shares. M
Slide 21: Supplementary Information
USHIO III. Supplementary Information 21
Slide 22: EUV Light Source for Mask Inspection
EUV Light Source for Mask Inspection USHIO - Mask Inspection equipment poihenccshmanbic han m8 sowsrarop tical Semiconductor device - Research & development manufacturers mass-production process institution Development, Production, Sales Increase EUV light source needs for Next-generation semiconduc
Slide 23: Sales Expansion of Exposure Equipment for Cutting-edge IC Package Substrates
Sales Expansion of Exposure Equipment for Cutting-edge IC Package Substrates USHIO Cutting-edge & Next generation USHIO package demand expansion With JoT evolution, demand increased for servers for data centers processing high Large Field Stepper (UX-5) Package substrate OAT SE NG peel Ons rere Prod
Slide 24: Direct Imaging (DI) Lithography Equipment
Direct Imaging (DI) Lithography Equipment 'y] ADTEC Print-wired board demand increasing <4) ENGINEER RIG 45 application innovation Direct Imaging Print-wired board Lithograph Equipment Package substrate Development - Production - Sales manufacturer @ Ushio Strength As 5G progressed Innovation of eac
Slide 25: Care222 as Disinfection and Virus Inactivation Solution
Care222 as Disinfection and Virus Inactivation Solution USHIO Care222®*: Disinfection and Hlumination equipment ceived sence Virus Inactivation Solution Module ED Siceintastuctre > cistection and Manufacturers virus inactivation Our Goal : Safe and reassured environment, Medical facilities. which pr
Slide 26: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results (Billions of yen) Net Sales Operating Profit Operating Margin Ordinary Profit Profit Attributable to Owner of Parent EPS (yen) FOREX (yen) 1Q 34,9 2.5 7.4% a3 3.3 28.02 110 132 2Q 36.6 3.9 10.9% 4.3 3.1 25.94 110 130 3Q 38.1 4.2 11.1% | 4.8 3.6 30.52
Slide 27: Reference: Quarterly Results by Business Segments
Reference: Summary of Quarterly Financial Results by Business Segments USHIO (Bilions of yen) = —:1Q 2Q 3Q 4Q | 19 2Q 3Q 4Q Nov comparson Nia Sloe 136. 143 #«»152) «»145) «160 164 °«4150) + «142 0.3 (2.3)% Operating Profit Lg 25 24 12 31 2.0 2a 17 +04 +37.5% Operating Margin 14.3% 17.8% 16.3% 8.B% 1
Slide 28: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region USHIO FY2021 nan Net Si Japar North America 148.8 26.8% 19.9% billion yen Japar North America 21.7% 25.9% Others 0.8% Capprigte © 2071 Wek bac Aticgite weer =f
Slide 29: Reference: R&D Expenses/Capital Expenditures and Depreciation
Reference: R&D Expenses/Capital Expenditures and Depreciation USHIO Mm RED Expenses (Billions of yen) @mm Capital Expenditures (Billions of yen) —— Ratio of R&D Expenses to net sales (%) fm Depreciation (Billions of yen) 8 : 11.0 71 74 71 | 8.9 ‘ 6.1 B.2 : 1s a 7.2 69 6736.9 10100 y01 | | 7 68°" | f
Slide 30: Reference: Balance Sheet
Reference: Balance Sheet Asset eg of yen) Changes 321, 323.6 +2.5 -24.4 Cash and Bank Deposits 642° 966 +3.1 Marketable Securities 38:4 © "2.3. Notos and AR (Trade) 35.2 +18.1 Inventories +2.3 Other Current Assets Intangible Assets 2022/3 2023/3 @ Turnover (months) 2022/3 20233 Receivabletrade 8 25
Slide 31: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 20. 8.5 4 = roi 390 -76.8 gp Operating Profit mmeSales CF ggg Investment CF mmFinaciaiCF -~ Free CF Copprighe © 207 Wee tae All che seme 31
Slide 32: Renewed IR Website/ IR Mail Distribution Feature
Renewed IR Website/ IR Mail Distribution Feature USHIO > Our official website “Investor Relations Information” has been renewed. We have reorganized the contents to make it more accessible and to let you know about Ushio's present to future. > We added new feature “IR E-mail distribution” to send ou
Slide 33: Glossary of abbreviations
o1 Euv FPD GPU lot OA Artificial Intelligence Actinic Patterned Mask Defect Inspectian Ball Grid Array Cost of Ownership Central Processing Unite Digital Gnema Projector Direct Imaging Extreme Ultraviolet Radiation Flat Panel Display Graphic Processing Unit Internet of Things Office Automation The N
Slide 34: (Old) Business Segments and Main Products
(Old) Business Segments and Main Products Business segments Main products Light Source Optical Equipment Discharge lamps ! ! Halogen lamps ) Soli¢ state hight sources j I WV lames Large field steppers Direct imaging lithography equipment EUY light source for EUV mask inspection Maintenance serviees
Slide 35: (New) Business Segments and Main Products
(New) Business Segments and Main Products Visual Imaging Life Sciences Photonics Solutions UV lamps, OA tamgs, Optical equipment lamps, etc, quiprnesit UV Equipment, Curing equiprnerit, EUY light source for mast inspection, Maintenance service etc, Gnerma lamps, Data projector lamps, atc, quaprnent
Slide 36: Contact
23/5/22 178585) Contact: Investor Relations Section Corporate Communication Department Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ 36