Slide 1: FY2023 Financial Results
FY2023 Financial Results Ushio Inc. May 14, 2024 Copyright © 2024 Ushio Inc., All Rights Reserved * Amounts in the material have been rounded down to the hundred millions of yen. * Sales to external customers and operating profit as a percentage of sales to external customers are shown * FY2023 star
Slide 2: FY2023 Overview
FY2023 Overview 1. FY2023 Results: Higher revenues and lower earnings*1 2. Projecting lower revenues and lower earnings*1 in FY2024 3. Outcome from reviewing Medium-Term Management Plan (New Growth Strategy)*2 *1：year-on-year *2：Presented in a separate document on Ushio’s website Confidential Copyri
Slide 3: Agenda
Agenda I. Financial Results for FY2023 II. Full-Year Forecasts for FY2024 III. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 3
Slide 4: Summary of FY2023 Financial Results
Summary of FY2023 Financial Results YoY Comparison: +4.3 billion yen (+2.5%） Net Sales - Industrial Processes Business: Sales decreased owing to deteriorating conditions in semiconductor and flat panel display markets 179.4 billion yen - Visual Imaging Business: Sales rose on higher digital cinema p
Slide 5: FY2023 Summary of Financial Results
FY2023 Summary of Financial Results YoY comparison Comparison FY2022 FY2023 Previous (with previous forecast) Result Result Forecast Achievement （Billions of yen) Changes (％) (2024.2.9) Changes (%) Net Sales 175.0 179.4 +4.3 +2.5% 178.0 +1.4 100.8% Operating Profit*1 15.8 12.9 -2.8 -18.2% 12.5 +0.4
Slide 6: YoY Variation Analysis of Operating Profit for FY2023
YoY Variation Analysis of Operating Profit for FY2023 (Billions of yen) ＋0.8 -6.1 +1.9 -0.4 15.8 -1.5 +3.9 -2.1 FOREX +0.6 PHS 12.9 (Sales change Strategic LS impacts) Investments (Sales change (R&D) Strategic Others impacts) Investments IP VI (Human capital) (Sales change (Sales change impacts) imp
Slide 7: FY2023 Financial Results by Business Segments
FY2023 Financial Results by Business Segments YoY comparison Comparison FY2022 FY2023 Previous (with previous forecast) Result Result Forecast (2024.2.9) Achievement （Billions of yen) Changes (％) Changes (%) Industrial Net Sales 89.4 82.1 -7.3 -8.2% 83.0 -0.8 98.9% Processes Operating Profit 18.2 10
Slide 8: FY2023: Industrial Processes Results
FY2023: Industrial Processes Results FY2022 FY2023 YoY Comparison Result Result (Billions of yen) Changes (%) ■Net Sales: Down 7.3 billion yen YoY Net Sales 89.4 82.1 -7.3 -8.2% – Sales of equipment for LCD panel declined owing to ① decreased demand – Sales of equipment declined owing to curtailed ②
Slide 9: FY2023: Visual Imaging Results
FY2023: Visual Imaging Results FY2022 FY2023 YoY Comparison Result Result (Billions of yen) Changes (%) ■Net Sales: Up 11.6 billion yen YoY Net Sales 68.9 80.5 +11.6 +16.9% – DCP sales benefited from elimination of materials ① shortages and rose on replacement demand – Sales increased on an acceptan
Slide 10: FY2023: Life Sciences and Photonics Solutions Results
FY2023: Life Sciences and Photonics Solutions Results Life Sciences FY2022 FY2023 YoY Comparison ■Net Sales: Down 0.4 billion yen YoY (Billions of yen) Result Result Changes (%) – Sales decreased in light source for environmental Net Sales 5.6 5.2 -0.4 -7.2% hygiene solutions Operating Profit -5.1 -
Slide 11: Agenda: Full-Year Forecasts for FY2024
I. Financial Results for FY2023 II. Full-Year Forecasts for FY2024 III. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 11
Slide 12: Summary of FY2024 Full-Year Forecasts
Summary of FY2024 Full-Year Forecasts Revenues and earnings should decline owing to dip in lithography equipment sales and expanded forward investments (performance is expected to recover from FY2025*) *For details, please see the New Growth Strategy: ⚫ 175.0 billion yen (Down 4.4 billion yen YoY) F
Slide 13: FY2024 Full-Year Forecast: Summary
FY2024 Full-Year Forecast : Summary FY2023 FY2024 YoY Comparison Result Forecasts (Billions of yen) Changes (%) Net Sales 179.4 175.0 -4.4 -2.5% Operating Profit 12.9 5.0 -7.9 -61.5% Operating Margin 7.2% 2.9% -4.4P - Ordinary Profit 16.0 6.5 -9.5 -59.6% Profit Attributable to Owners of Parent 10.7
Slide 14: YoY Variation Analysis of Operating Profit for FY2024
YoY Variation Analysis of Operating Profit for FY2024 12.9 -3.8 -2.6 Impacts from lower sales -1.3 Impacts from -1.1 ＋1.9 5.0 Including ¥3.7 billion production drops, for IP business price hikes, etc. Forward -1.0 investments relating to Increased Applied Materials development costs for future Highe
Slide 15: FY2024 Full-Year Forecast: By Business Segments
FY2024 Full-Year Forecast : By Business Segments FY2023 FY2024 YoY Comparison (Billions of yen) Result Forecasts Changes (%) Net Sales 82.1 79.0 -3.1 -3.8% Industrial Processes Operating Profit 10.8 3.5 -7.3 -67.8% [Operating Margin] [13.2%] [4.4%] [-8.8P] - Visual Net Sales 80.5 78.0 -2.5 -3.1% Im
Slide 16: FY2024 Full-Year Forecasts: Industrial Processes
FY2024 Full-Year Forecasts : Industrial Processes Net Sales Operating Profit ■Business environment assumptions 82.1 79.0 While demand to remain weak, emerging signs of gradual recovery - Semiconductor market should gradually recover from second half of 2024 - In advanced packaging market, investment
Slide 17: FY2024 Full-Year Forecasts: Visual Imaging
FY2024 Full-Year Forecasts : Visual Imaging Net Sales Operating Profit ■Business environment assumptions 80.5 While demand should be firm, keeping tabs on impact of worsening 78.0 Chinese economy and Hollywood strike Cinema market - Temporarily reduced cinema operations owing to Hollywood strike - D
Slide 18: FY2024 Full-Year Forecasts: Life Sciences and Photonics Solutions
FY2024 Full-Year Forecasts : Life Sciences and Photonics Solutions Life Sciences Net Sales Operating Profit ■Business environment assumptions 5.2 5.0 Demand should remain stable for medical equipment and other offerings ■Net Sales: Down 0.2 billion yen YoY - Sales to be flat for environmental hygien
Slide 19: Shareholder Returns
Shareholder Returns Dividends (yen) 149.6 Dividends payout ratio 【Dividend policy】 Generating stable returns Will set dividend floor of ¥70 per share annually Dividends for FY2024~FY2026 47.2 56.3 47.8 43.2 51.4 per Share 30.3 30.2 35.5 FY2023: ¥50 (Plan) 70 FY2024: Plan to increase to ¥70 50 50 50
Slide 20: Agenda: Supplementary Information
I. Financial Results for FY2023 II. Full-Year Forecasts for FY2024 III. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 20
Slide 21: (New) Business Segments and Main Products
(New) Business Segments and Main Products New Business Main Products Product Examples Segment Light Source: UV lamps, OA lamps, Optical equipment lamps, etc. Industrial Equipment: Processes UV Equipment, Curing （提供：TNO） equipment, EUV light source for UV lamps OA lamps Large filed Direct imaging EUV
Slide 22: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY2022 FY2023 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Changes (%) Net Sales 39.7 48.2 40.4 46.6 39.2 45.7 47.5 46.9 +0.2 +0.5% Operating Profit 4.4 5.6 3.4 2.3 2.0 2.9 5.2 2.7 +0.4 +18.7% Operating 11.3% 11.7% 8.5% 5.0% 5.2% 6.4% 11.
Slide 23: Reference: Quarterly Financial Results by Business Segments
Reference: Summary of Quarterly Financial Results by Business Segments FY2022 FY2023 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Changes (%) Net Sales 19.8 27.5 19.3 22.8 17.4 20.3 22.5 21.7 -1.0 -4.6% Industrial Operating profit 3.9 6.9 4.1 3.1 2.2 1.7 4.0 2.8 -0.3 -11.0% Processes Ope
Slide 24: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region Others 0.8% FY2022 Net Sales Japan North America Asia Europe 175.0 21.7% 25.9% 44.7% 6.9% billion yen FY2023 Japan North America Asia Europe Net Sales 179.4 22.6% 27.5% 40.8% 8.5% billion yen Others 0.6% Copyright © 2024 Ushio Inc., All Rights Reserved 24
Slide 25: Reference: R&D Expenses/Capital Expenditures and Depreciation
Reference: R&D Expenses/Capital Expenditures and Depreciation R&D Expenses（Billions of yen） Capital Expenditures (Billions of yen) Ratio of R&D Expenses to net sales (%) Depreciation (Billions of yen) 8.5 8.1 15.0 7.2 7.1 14.0 6.4 6.5 12.9 11.8 11.4 10.1 10.5 10.0 8.9 9.0 8.2 8.3 7.36.9 7.6 7.1 6.86
Slide 26: Reference: Balance Sheet
Reference: Balance Sheet Asset Liabilities/Total Net Equity (Billions of yen) Changes (Billions of yen) Changes 337.5 +13.9 +13.9 323.6 337.5 +1.4 Cash and Bank Deposits 323.6 -4.5 Notes and AP 65.6 21.6 64.2 26.2 +1.3 Other Current Liabilities 37.6 +1.2 Marketable Securities 36.2 39.7 +24.2 Long-te
Slide 27: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 21.6 14.3 13.0 16.1 15.8 14.5 12.9 11.0 5.5 8.9 6.6 5.3 4.3 -0.3 1.1 0.7 0.8 FY19 FY20 -0.7 FY21 FY22 FY23 -3.4 -1.1 -5.5 -10.6 -13.4 -20.3 -26.8 Operating Profit Sales CF Investment CF Finacial CF Free CF Copyright © 2024 Ushio Inc., All Rights Reserved 27
Slide 28: Glossary
Glossary AI Artificial Intelligence APMI Actinic Patterned Mask Defect Inspection BGA Ball Grid Array CoO Cost of Ownership CPU Central Processing Unite DCP Digital Cinema Projector DI Direct Imaging EUV Extreme Ultraviolet Radiation FPD Flat Panel Display GPU Graphic Processing Unit IoT Internet of
Slide 29: Renewed IR Website/ IR Mail Distribution Feature
Renewed IR Website/ IR Mail Distribution Feature ➢ 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 our IR i
Slide 30: Disclaimer
<Disclaimer> This report contains forward-looking statements, including earnings forecasts, which are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Please be advised that actual results may differ substantially from those forward-looking
Slide 31: Contact: Investor Relations Office
Contact: Investor Relations Office Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ir/ Copyright © 2024 Ushio Inc., All Rights Reserved 31