Slide 1: FY2024/6 Business Results
ULVAC ULVAC, Inc. FY2024/6 Business Results (July 2023 - Jun 2024) Aug.13, 2024
Slide 2: Disclaimer regarding forward-looking statements etc.
Disclaimer regarding forward-looking statements etc. = Forward-looking statements Forward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared. There are several factors that directly or indirectly impact the com
Slide 3: Summary: three key points
There are three key points in the summary. First, consolidated results for FY24/6 were favorable, Orders received, Net sales, and each profit item significantly exceeded both YoY and the plan. In particular, Net sales of ¥261.1 billion and Gross profit margin of 30.9% recorded the highest level sinc
Slide 4: FY24/6 Business Results
FY24/6 Business Results
Slide 5: FY24/6 results overview
Orders received for FY24/6 totaled ¥258.2 billion, an increase of ¥11 billion YoY, Net sales increased by ¥33.6 billion to ¥261.1 billion, Operating profit increased by ¥9.8 billion to ¥29.8 billion, Both of these figures were significantly higher than FY23/6 and the plan. Net sales and Gross profit
Slide 6: Orders received and net sales
The left graph shows Orders received, which increased by ¥11 billion YoY to ¥258.2 billion due to increased investment in Power devices and Batteries, etc., in addition to increased investment in Materials, etc. Net sales on the right reached ¥261.1 billion, the highest level since the company was l
Slide 7: Gross and operating profit margins
Gross profit margin on the left was 30.9%, the highest level since the company's listing, due to increased Net sales and an improved mix. The Operating profit margin in the middle also improved significantly to 11.4%, driven by an improved Gross profit margin and, as shown in the graph on the right,
Slide 8: Consolidated balance sheet
On the consolidated balance sheet, assets such as accounts receivable and inventories increased due to the increase in Net sales. 8
Slide 9: Review of Mid-Term Management Plan and FY25/6 Consolidated Earnings Forecast
Review of Mid-Term Management Plan and FY25/6 Consolidated Earnings Forecast
Slide 10: Mid-term management plan progress
In FY24/6, the first year of the mid-term management plan, both Net sales and Operating profit exceeded the initial plan. We will continue to steadily increase sales and profits in FY25/6, and focus on achieving our goals for the final year FY26/6, which include Net sales of ¥300 billion, Operating
Slide 11: FY25/6 consolidated earnings forecast
The forecast for FY24/6, Orders received and Net sales are expected to increase to ¥270 billion and ¥275 billion, respectively, and Operating income to ¥34.5 billion and Operating profit margin to improve to 12.5%, due to the recovery of investment in Memory and Logic in Semiconductors and the full-
Slide 12: Orders and net sales forecast
Orders received is expected to be ¥270 billion, due to the recovery of investment in Semiconductors such as Memory and Logic, the full-scale investment in OLEDs, as well as an increase in Leak Test Equipment categorized in Components and Surface Analysis Systems categorized in Others. Net sales are
Slide 13: Profit margin forecast
Regarding the profit margin, we expect Gross profit margin to improve to 32.4% and Operating profit margin to improve to 12.5% due to the increase in Net sales and the mix effect from the increased ratio of Semiconductors and Electronics. 13
Slide 14: Growth drivers
For growth drivers, from the bottom of the graph (1) In Power devices, due to the slowdown in EVs growth, we expect the full- scale investment in SiC 8-inch to begin in FY27/6 onward, about one year later than originally planned. (2) In various Electronics devices, investments in Packaging and µOLED
Slide 15: Semiconductors: Memory and Logic
As for Semiconductors, Memory has been adopted in the HBM process for DRAM, and we aim to continue to grow through investment recovery and increased adoption in processes around the wiring related processes, etc. Logic is expanding its business opportunities in new processes, including adoption of t
Slide 16: Power device business
In the Power device business, due to the slowdown in EV growth, full-scale investment in 8-inch SiC is expected in FY27/6 onward. In addition to Sputtering equipment for Japan and Ion Implanter for China, where we have a high market share, we aim to expand sales by cross-selling Ion Implanter and Et
Slide 17: Battery business
In the Battery business, investment has begun in replacing conventional metal foil with double-sided evaporation film using plastic film, a technology that improves safety and extends driving range by reducing size and weight. We expect the investment in FY25/6 to be about the same amount as in FY24
Slide 18: OLEDs business
The OLEDs business for tablets and PCs will also see full-scale investment in mass production. The substrate will be enlarged from the conventional G6 size for smartphones to G8.7 size for IT panels such as tablets and PCs. We have already developed a multi chamber G8.7 Sputtering equipment with sem
Slide 19: Leak test equipment and surface analysis systems
Business opportunities are also increasing for Leak Test Equipment to meet the growing demand for leak testing due to the shift to EVs, and for Surface Analysis System, which holds a majority share of the global market, due to a growing need for surface analysis. 19
Slide 20: Strengthening manufacturing capabilities
We will continue to make efforts to strengthen manufacturing capabilities, a key strategy of the mid-term management plan. In Semiconductors, Power devices, Batteries, and other products, we are working to improve profit margins by expanding planned production, strengthening product planning capabil
Slide 21: R&D investment
We are continuing to invest in R&D with a focus on growth drivers such as Semiconductors, Power devices, and Batteries for mid- to long-term growth. Our R&D investment plan remains unchanged at ¥75 billion over three years. With the completion of the Korea Technology Center in May 2024, we will driv
Slide 22: Shareholder returns
In terms of shareholder returns, the company aims to increase dividends over the long term through further growth by expanding development investment in growth areas, particularly in Semiconductors and Electronics. To enhance shareholder returns, we have increased the performance-based dividend payo
Slide 23: Appendix
Appendix
Slide 24: Consolidated Financial Results (Quarterly Actual)
| 1 J Consolidated Financial Results (Quarterly Actual) ULVAC Unit: ¥1 billion Orders Received Net Sales Gross Profit Gross Profit Margin SG&A Operating Profit Operating Profit Margin Profit attributable to owners of parent To net sales ratio FY 23/6 Qi 66.6 56.2 16.5 29.3% 11.3 5.1 9.1%) 41 7.2% Q2
Slide 25: Orders received and net sales by product category
| 2 J Orders received and Net sales by Product Category (Quarterly Actual) ULVAC | Orders Received unit ¥:pition l Net Sales ani: sition Semiconductors & Electronics jevice Production Equipment Ml Component (W_ Display and energy-related Production Equipment Materials Industrial Equipment Mill Other
Slide 26: Profit Margins (Quarterly Actual)
Ey Profit Margins (Quarterly Actual) ULVAC [cross Profit Margin J Operating Profit Margin |s.c.8a. Expenses (%) (Unit: ¥ 1 billion, %) (Unit: ¥ 1 billion, %) oceacipieae (Unit ¥ 4 billion, %) Net Sales==Gross Profit Margin NetSales Operating Profit Margin mem R&D Expenses Pm SGEA Expensgs to Net sal
Slide 27: Net sales by Region (Actual)
| 4 J Net sales by Region (Actual) ULVAC Unit: ¥1 billion | Net Sales l Net Sales Ratio = Japan «China «Korea =Taiwan «OtherAsia = Europe.others "Japan «China = Korea ®Taiwan = Other Asia = Europe,athers FY22/6 FY20/6 FY21/6 FY22/6 FY23/6 Copyright® 2024, ULVAC, Inc. All rights reserved 27 27
Slide 28: Changes in Capital Investment and R&D Expenses
Ey Changes in Capital Investment and R&D Expenses (Actual and FY24 Plan) ULVAC | Capital Expenditure Unit ¥4 billion l R&D Expenses Unit ¥4 billion 13.8 133 | 14.0 10.3 i 84 84 H Fy206 © FY21/6 = FY22/6«FY236 = FY24/6 | FY25/6 ‘Plan 1 Kesearen and Development Fes Buiings, production facies, Deprecia
Slide 29: Supporting a smart and digital society and green energy through technological innovation
BF vrorting the realization of a smart and digital society and green energy through technological innovation, J I \/AC Green Energy Conversion Smart and Digital Society Be foe Deaea cranteneatnn Realization [ Memory if Logic IC Electronic Devices ! Power Device Battery en Miniaturization/ High perfo
Slide 30: ULVAC Vacuum Technology Contributes to Many Industries and Applications
ULVAC Vacuum Technology Contributes to Many Industries and: Applications