Screen Holdings Co., Ltd · TSE:7735
Screen — FY2024/03 Earnings Presentation
52 slides from Screen's earnings presentation, May 9, 2024
Slide 1: Consolidated business results and forecasts
Consolidated business results and forecasts FY2024/03 ended March 31, 2024 SCREEN Holdings Co., Ltd. Toshio Hiroe Representative Director, President & CEO Yoichi Kondo Representative Director & CFO Cautionary statements: • The earnings forecasts, contained in these materials and communicated verball
Slide 2: Agenda
Agenda 01. Summary of FY2024/03 earnings P03 02. Business environment and outlook P14 03. Value Up Further 2026 P28 04. Recent SCREEN Group news P42 05. Topics P43 06. Appendix P50 SCREEN Holdings Co., Ltd. 2
Slide 3: Summary of FY2024/03 earnings
Summary of FY2024/03 earnings Innovation for a Sustainable World Consolidated business results and forecasts FY2024/03 ended March 31, 2024 Yoichi Kondo Representative Director & CFO SCREEN Holdings Co., Ltd. May 9, 2024 SCREEN Holdings Co., Ltd.
Slide 4: FY2024/03 summary of consolidated earnings
FY2024/03 summary of consolidated earnings ALL Both sales and profits increased YoY, hitting the record highs in all of net sales, OP income/margin, ordinary income, and net income. Both sales and profits surpassed the forecasts announced in January. Year-end dividend will be inc reased from ¥119 to
Slide 5: FY2024/03 consolidated earnings
FY2024/03 consolidated earnings QoQ (Billions of JPY) YoY (Billions of JPY) FY2024/03 FY2023/03 FY2024/03 (Billions of JPY) 1Q 2Q 3Q 4Q Difference (QoQ) Full Full Difference (YoY) Net sales 99.6 123.5 124.5 157.0 32.5 26.1% 460.8 504.9 44.0 9.6% OP income 13.4 25.1 25.1 30.4 21.2% 76.4 94.1 23.2% 5.
Slide 6: Financial summary
Financial summary Net sales (Billions of JPY) OP income/margin (Billions of JPY / %) Net income/ROE (Billions of JPY / %) Net sales Profit attributable to owners of parent OP income OP margin ROE 21.0% 21.0% 19.9% 18.6% 16.6% 14.9% 504.9 94.1 460.8 411.8 76.4 7.6% 7.9% 70.5 323.2 320.3 61.2 57.4 45.
Slide 7: Composition of group sales by destination
Composition of group sales by destination QoQ (Billions of JPY) YoY (Billions of JPY) 160 157.0 600 Japan 15% 140 504.9 125.5 123.5 124.5 500 460.8 Taiwan 116.5 116.8 9% 17% 120 19% 16% 23% 18% China 101.8 21% 17% 99.6 400 100 12% 8% 16% 15% Korea 24% 11% 46% 80 300 29% 24% 29% 38% 21% 39% Asia - Ot
Slide 8: Composition of group sales by segment
Composition of group sales by segment QoQ (Billions of JPY) YoY (Billions of JPY) 157.0 160 0.4% 600.0 2.7% 6.8% 504.9 140 125.5 123.5 124.5 7.5% 460.8 0.3% Other 116.5 116.8 0.5% 500.0 2.9% 0.3% 0.5% 0.3% 4.6% 120 0.2% 3.5% 3.1% 2.6% 0.2% 2.7% 5.4% 3.6% 9.5% 101.8 3.7% 4.1% 7.2% 5.7% PE 7.3% 4.8% 9
Slide 9: FY2024/03 consolidated earnings by segment
FY2024/03 consolidated earnings by segment FY2023/03 FY2024/03 FY2023/03 FY2024/03 (Billions of JPY) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full Full Net sales 84.6 91.9 94.1 100.2 82.3 103.7 101.9 129.6 370.9 417.6 SPE OP income 18.8 19.5 17.3 21.1 13.7 25.1 25.5 32.5 76.9 97.0 OP margin 22.3% 21.3% 18.5% 21.1% 1
Slide 10: FY2024/03 consolidated earnings by segment – analysis
FY2024/03 consolidated earnings by segment – analysis FY2024/03 QoQ FY2023/03 FY2024/03 Difference Difference Difference Difference (Billions of JPY) 3Q 4Q (Net sales) (OP) Full Full (Net sales) (OP) 27.4% 26.1% Net sales 101.9 129.6 27.7 27.2% 7.0 0pt 370.9 417.6 46.7 12.6% 20.0 2.5pt SPE OP income
Slide 11: Financial standing: Balance sheet
Financial standing: Balance sheet Assets (Billions of JPY) Liabilities & net assets (Billions of JPY) 691.4 676.8 691.4 676.8 635.6 635.6 611.7 611.7 114.6 75.7 Cash & time Notes & 562.8 225.1 167.2 deposits 562.8 78.3 108.8 7.1 541.8 181.5 541.8 28.3 accounts 184.6 92.9 28.9 payable 28.5 175.5 109.
Slide 12: Financial standing: Cash flows
Financial standing: Cash flows QoQ (Billions of JPY) YoY (Billions of JPY) Operating CF Investing CF Financing CF FCF 100 96.2 60 58.4 53.4 73.9 61.3 39.8 31.0 33.4 30.8 29.2 29.1 50 30 22.2 52.7 20.2 28.3 1.7 -4.5 13.2 0 -0.7 -2.6-0.3 -0.4 -0.7 -0.9 -4.9 0 -9.1 -7.0 -8.2 -8.7 -13.6 -17.5-17.2 -30 -
Slide 13: Analysis of operating income growth
Analysis of operating income growth FY2023/03 vs FY2024/03 (Billions of JPY) +13.0 +18.0 +2.0 Profitability Exchange Fixed costs rates Sales and capacity utilization Note: Impact on OP income is rounded to be shown in ¥0.5 bn increments. Increase in sales and capacity utilization is mainly attributa
Slide 14: Business environment and outlook
Business environment and outlook Innovation for a Sustainable World Consolidated business results and forecasts FY2024/03 ended March 31, 2024 Toshio Hiroe Representative Director, President & CEO SCREEN Holdings Co., Ltd. May 9, 2024 SCREEN Holdings Co., Ltd.
Slide 15: Business environment and outlook
Business environment and outlook Business environment SPE: Positive growth expected in the semiconductor market in CY2024 for PC, smartphone and server applications – for server in particular on a monetary basis. WFE outlook for CY2024 projects a positive growth to be driven by mature node investm
Slide 16: SPE: Business overview
SPE: Business overview Market trends and outlook WFE: CY2023 market growth stayed at around -5%. Mid-single-digit growth projected for CY2024. Foundry & Logic: Signs of acceleration in investment in leading-edge nodes. Memory: DRAM investment expected to recover in the late CY2024. Investment tr
Slide 17: SPE: Composition of sales by application and post-sales
SPE: Composition of sales by application and post-sales QoQ (Billions of JPY) YoY (Billions of JPY) 140 500 129.6 Foundry 120 417.6 103.7 400 Logic 100.2 101.9 370.9 100 91.9 94.1 Flash 84.6 82.3 43% 47% 36% 300 38% 80 45% 37% 43% 50% DRAM 36% 4% 49% 6% 60 10% 3% 9% 5% Imaging Device 9% 200 3% 9% 8%
Slide 18: SPE: Composition of sales by destination
SPE: Composition of sales by destination QoQ (Billions of JPY) YoY (Billions of JPY) 140 500 129.6 120 13% 417.6 Japan 100.2 103.7 101.9 8% 400 370.9 14% 100 91.9 94.1 12% 16% Taiwan 12% 84.6 14% 17% 82.3 7% 21% 20% 300 80 12% China 11% 12% 27% 49% 33% 28% 23% 43% Korea 60 44% 35% 55% 200 23% 41% 19
Slide 19: SPE: Composition of sales by application – forecast
SPE: Composition of sales by application – forecast Half-year forecast (Billions of JPY) 250 231.6 230.0 Foundry 200 186.0 Logic 47% 45% Flash 150 46% DRAM 5% 7% 4% 4% 100 Imaging Device 6% 1% 13% 10% 19% 3% Power Device 6% 5% 1% 50 8% 6% 5% 4% Other 5% 18% 17% 17% Post-sales 0 1H 2H 1H E FY2024 FY2
Slide 20: SPE: Composition of sales by destination – forecast
SPE: Composition of sales by destination – forecast Half-year forecast (Billions of JPY) 250 231.6 230.0 10% 16% 200 186.0 Japan 10% 21% 11% Taiwan 150 14% China 45% 49% Korea 100 41% Asia - Other 5% 4% 50 2% 4% 4% North America 17% 3% 16% 10% Europe 9% 4% 5% 0 Others 1H 2H 1H E FY2024 FY2025 FY2024
Slide 21: GA: Sales trends and forecast
GA: Sales trends and forecast QoQ (Billions of JPY) Half-year forecast (Billions of JPY) 14 25 23.9 23.7 24.0 12.0 12.3 12.0 11.6 11.5 11.7 12 11.3 10.5 20 10 8 15 Equipment, Other 6 10 4 Recurring business 49% 48% 51% 56% 48% 53% 50% 47% 45% 49% 5 2 46% 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1H 2H 1H E FY2023
Slide 22: FT: Sales trends and forecast
FT: Sales trends and forecast QoQ (Billions of JPY) Half-year forecast (Billions of JPY) 12 20 10.7 17.4 Post-sales, Other 10 9.0 8.4 15 8 13.0 10% 6.7 25% Energy 5% 0% 6 5.6 10 20% 35% 35% 5% OLED 4 3.0 0% 3.3 5.7 70% 5 2.3 55% 55% 55% 2 70% 40% 45% 10% LCD 25% 15% 0% 15% 25% 30% 15% 20% 0 15% 0 1Q
Slide 23: PE: Sales trends and forecast
PE: Sales trends and forecast QoQ (Billions of JPY) Half-year forecast (Billions of JPY) 5 4.7 10 4.4 4.2 4.1 4 3.8 8 7.4 7.5 7.2 3.3 3.4 3.2 3 6 Equipment, Other 2 4 Post-sales 1 2 32% 29% 34% 44% 37% 48% 37% 40% 42% 40% 36% 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1H 2H 1H E FY2023 FY2024 FY2024 FY2025 Note: P
Slide 24: FY2025/03 business forecasts (as of May 9, 2024)
FY2025/03 business forecasts (as of May 9, 2024) FY2024/03 FY2025/03 E (Billions of JPY) 1H 2H Full 1H 2H Full Net sales 223.2 281.6 504.9 276.0 284.0 560.0 OP income 38.5 55.6 94.1 48.0 52.0 100.0 OP margin 17.3% 19.7% 18.6% 17.4% 18.3% 17.9% Ordinary income 39.3 54.9 94.2 48.0 52.0 100.0 Net incom
Slide 25: R&D expenses, CAPEX and depreciation/amortization – trends and plan
R&D expenses, CAPEX and depreciation/amortization – trends and plan R&D expenses CAPEX Depreciation/Amortization 39.8 (Billions of JPY) 40.0 33.0 29.0 30.0 30.0 27.0 24.0 24.7 21.5 21.5 20.0 13.4 13.0 10.8 8.8 9.6 9.5 8.7 10.0 7.9 7.8 0.0 FY2020/03 FY2021/03 FY2022/03 FY2023/03 FY2024/03 FY2025/03 (
Slide 26: Analysis of operating income growth – forecast
Analysis of operating income growth – forecast FY2024/03 vs FY2025/03 E (Billions of JPY) Increase Decrease Total +28.0 +1.0 Profitability Sales and Fixed costs Exchange capacity rates utilization Note: Impact on OP income is rounded to be shown in ¥0.5 bn increments. Increase in sales and capacity
Slide 27: Annual dividend outlook
Annual dividend outlook FY2024/03 FY2024/03 Ref. Pre-split basis January May Remarks January May Record-high dividends E announcement E announcement (JPY, per share) Value Up 2023 targets a total shareholder return ratio of 30% Interim 167 167 Pre-split basis 167 167 dividend Distributed Distributed
Slide 28: Value Up Further 2026
Value Up Further 2026 Outline of the medium-term management plan Innovation for a Sustainable World Consolidated business results and forecasts FY2024/03 ended March 31, 2024 Toshio Hiroe Representative Director, President & CEO SCREEN Holdings Co., Ltd. May 9, 2024 SCREEN Holdings Co., Ltd.
Slide 29: Value Up 2023 Highlights: Economic value outcome
Value Up 2023 Highlights: Economic value outcome Value Up Further 2026 Managed to meet all targets by enhancing profitability and efficiency. Economic Value Targets for Economic Value FY2024/03 Results FY2024/03 Targets for the FY2024/03 (FY2024/03) (Initial plan) (Revised in July 2022) Net sales ¥4
Slide 30: Value Up 2023 Economic value outcome by business
Value Up 2023 Economic value outcome by business Value Up Further 2026 Final-year targets Final-year targets Final year results (initial plan) (revised July 2022) FY2024/03 Net sales ¥400.0 bn or more ¥500.0 bn or more ¥504.9 bn Cons OP margin 15% or above 17% or above 18.6% Net sales ¥280.0–300.0 b
Slide 31: Value Up 2023 Economic value outcome (qualitative)
Value Up 2023 Economic value outcome (qualitative) Value Up Further 2026 Basic concept: Establishing a presence as the Solution Creator in each market we serve Basic strategies Result Achievements Pursued technological development strategy aligned with business strategy Enhancing corporate value Rev
Slide 32: Value Up 2023 Highlights: Social value outcome
Value Up 2023 Highlights: Social value outcome Value Up Further 2026 Pursuing ESG initiatives as a sustainable company E (Environmental): Climate change initiatives and environmental management Reduced CO2 emissions from business activities (Scope 1+2) in line with the Science-based Target (SBT).
Slide 33: Value Up Further 2026 Major markets outlook
Value Up Further 2026 Major markets outlook Value Up Further 2026 SPE GA Better than expected CY23-24 market due to demand from China. Investment Digital printing on the rise, supported by stable demand. expected to recover in CY25 due to memory demand related to generative AI. WFE market outlook (B
Slide 34: Value Up Further 2026 Main initiatives
Value Up Further 2026 Main initiatives Value Up Further 2026 Shifting gears toward a new growth stage The three years covered by Value Up Further 2026 will be an investment phase, building a momentum for new growth while maintaining the financial foundation established in the past four years, for ac
Slide 35: Value Up Further 2026 Financial targets
Value Up Further 2026 Financial targets Value Up Further 2026 Previous medium-term plan Value Up 2023 Value Up Further 2026 3-yr (FY2025/03–FY2027/03) targets 4-yr (FY2021/03–FY2024/03) results Cumulative sales ¥1.7 trillion Cumulative sales ¥1.8 trillion or more Average OP margin 15.1% Average OP m
Slide 36: Value Up Further 2026 Financial targets by business
Value Up Further 2026 Financial targets by business Value Up Further 2026 Value Up 2023 Value Up Further 2026 (FY2021/03–FY2024/03) (FY2025/03–FY2027/03) 4-yr cumulative 3-yr cumulative targets Cumulative sales ¥1.7 trillion ¥1.8 trillion or more Cons. Average OP margin 15.1% 19% or above Cumulative
Slide 37: Value Up Further 2026 Non-financial targets
Value Up Further 2026 Non-financial targets Value Up Further 2026 Human resource strategy Sustainability strategy Develop and implement a human resource strategy Focusing on a value chain impact for addressing aligned with the business strategy covering the long-term ESG (environmental, social and e
Slide 38: Value Up Further 2026 Cash allocation (3-yr cumulative)
Value Up Further 2026 Cash allocation (3-yr cumulative) Value Up Further 2026 FY2021/03-FY2024/03 FY2025/03-FY2027/03 4-yr cumulative results 3-yr cumulative targets (estimates) Growth R&D investment ¥97.3 bn R&D ¥110.0 bn Focused allocation on growth investment CAPEX ¥90.0 bn Investment Investment
Slide 39: Value Up Further 2026 Business growth strategy: SPE and GA
Value Up Further 2026 Business growth strategy Value Up Further 2026 SPE GA Main initiatives Main initiatives 1. Improve the market share of the cleaning 1. Expand the sales pipelines of POD equipment equipment >> Enhance our approach to large-order clients >> Develop an optimal R&D environment and
Slide 40: Value Up Further 2026 Business growth strategy: FT and PE
Value Up Further 2026 Business growth strategy Value Up Further 2026 FT PE Main initiatives Main initiatives 1. Improve the profitability of display business 1. Enhance the presence of the direct patterning equipment in the industry 2. Enhance our proprietary coating technique >> Increase our market
Slide 41: Value Up Further 2026 Business growth strategy: New Business
Value Up Further 2026 Business growth strategy Value Up Further 2026 New Business Generating new businesses with net sales of ¥10 billion scale Advanced Packaging (ADPKG) Increase the market presence of existing products: direct partnering, coaters Launch new products (Cu/Cu low-temperature hybrid
Slide 42: Recent SCREEN Group News
Recent SCREEN Group News (extracted from the official website, February 1, 2024 – May 9, 2024) Selected as a Clarivate Top 100 Global Innovator for 2024, for the Third Consecutive Year (March 7, 2024) Selected as a Health & Productivity Stock for the first time; Certificated as a Health & Produc
Slide 43: Topics: Truepress JET 560HDX
Topics Details here (official website) Developed Truepress JET 560HDX to Deliver Innovation in Print Production (announced on February 6, 2024) A new high-speed roll-fed digital inkjet press for the commercial printing, direct mail, and publishing printing markets It can operate in a variety of pr
Slide 44: Topics: Clarivate Top 100 Global Innovator
Topics Details here (official website) Selected as a Clarivate Top 100 Global Innovator for 2024, for the Third Consecutive Year (announced on March 7, 2024) SCREEN has been selected as one of the Top 100 Global Innovators for 2024 for the third consecutive year by Clarivate, based on its analysis o
Slide 45: Topics: Health & Productivity Stock selection
Topics Details here (in Japanese only) Selected as a Health & Productivity Stock for the first time and certificated as a Health & Productivity Management Organization (called “WHITE 500” by METI) (announced on March 12, 2024) Among the listed companies implementing health management, SCREEN has bee
Slide 46: Topics: Collaboration Agreement with Shiga Prefecture
Topics Details here (in Japanese only) Signed a "Comprehensive Collaborative Agreement" with Shiga Prefecture (announced on March 25, 2024) SCREEN and Shiga Prefecture have agreed to collaborate in the following fields, with the aim of effectively utilizing the human and material resources held by b
Slide 47: Topics: Okochi Memorial Production Prize
Topics Details here (official website) Received the Okochi Memorial Production Prize for the First Time (announced March 27, 2024) SCREEN Holdings Co., Ltd. and SCREEN Semiconductor Solutions Co., Ltd. have received the Okochi Memorial Production Prize during the 70th annual award ceremony sponsored
Slide 48: Topics: Acquisition of Phoenix Seiko
Topics Details here (official website) Acquired 100% Share of Phoenix Seiko, a Company Which Specializes in Plastic Processing to ensure stable supply of SPE components (announced on February 6, 2024, change of company name announced on March 29, 2024) SCREEN has acquired 100% share of Phoenix Seiko
Slide 49: Topics: JSPST Technology Award for Truepress LABEL 350UV
Topics Details here (official website) Received Technology Award from Japanese Society of Printing Science and Technology (JSPST) for Truepress LABEL 350UV Series (announced on April 18, 2024) The JSPST presents these awards to recognize technologies that have made an outstanding contribution to the
Slide 50: SPE sales composition – FY2024/03
SPE sales composition – FY2024/03 Appendix Other FY2021/03 FY2022/03 FY2023/03 FY2024/03 (%) Coater/Developer 5% 5% Single-wafer cleaner 70 70 65 70 Batch-type Batch-type cleaner 25 25 25 20 cleaner Coater/Developer 5 5 5 5 20% 70% Other 0 0 5 5 Single-wafer cleaner Note: Above shares are rounded to
Slide 51: KPI trends
KPI trends Appendix FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 E (Billions of JPY) Net sales 237.6 259.6 300.2 339.3 364.2 323.2 320.3 411.8 460.8 504.9 560.0 OP income 17.1 23.5 33.7 42.7 29.6 12.5 24.4 61.2 76.4 94.1 100.0 OP margin (%) 7.2 9.1 11.2 12.6 8.1 3.9 7
Slide 52: Earnings trends by segment
Earnings trends by segment Appendix SPE GA FT PE OP Margin 営業利益率 16.6 18.6 17.9 (%) 7,000 14.9 20 11.2 12.6 15 (Billions of JPY) 6,000 7.2 9.1 8.1 7.6 560.0 3.9 504.9 10 500 5,000 460.8 5 411.8 400 4,000 339.3 364.2 0 300.2 323.2 320.3 -5 300 3,000 237.6 259.6 -10 200 2,000 -15 -20 100 1,000 -25 00