Ulvac, Inc. · TSE:6728
Ulvac — H1 FY2021 Earnings Presentation
29 slides from Ulvac's earnings presentation, Feb 15, 2022
Slide 1: Business Results The First Half of FY2021
ULVAC, Inc. Business Results The First Half of FY2021 (July 2021 - December 2021) Feb. 15, 2022 Securities code：6728 Breakthrough 2022 © 2022 ULVAC, Inc. | Confidential and Proprietary Information FY211QPSN20220215E 1
Slide 2: Disclaimer regarding forward-looking statements
Disclaimer regarding forward-looking statements The forward-looking statements, including the earnings forecasts shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by the Co
Slide 3: Summary
Summary 1. Overview of Consolidated Business Results for 1H FY2021 Orders, net sales, and operating profit increased significantly YoY • OP Margin：improved to 10.8%（+3.8pt YoY） • Gross Profit Margin(the second quarter)：32.4% ⇒Highest level since listing due to strengthened manufacturing capabilities
Slide 4: 1H FY2021 Business Results
1H FY2021 Business Results © 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215E 4
Slide 5: 1. Overview of 1H FY2021 Business Results
1. Overview of 1H FY2021 Business Results Orders Received：Increased 59% YoY due to the investment expansion in semiconductors and electronics, etc. Net Sales：Increased 26％ YoY / Operating Profit： Increased 95％ YoY OP Margin：Improved to 10.8%（+3.8pt YoY）（Further improvement expected in 2H） FY2020 1H
Slide 6: 1-(1) Orders and Net Sales by segments: Increased significantly due to active investment
1-(1) Orders and Net Sales by segments: Increased significantly due to active investment Significant YoY increase due to active investment in semiconductors, electronics and FPDs Orders received (Unit: ¥1 billion) Net sales (Unit: ¥1 billion) Semiconductor & Electronics Semiconductor & Electronics D
Slide 7: 1-(2) Orders and Sales by Segment: Growth in Semiconductors and Electronics exceeding plan
1-(2) Orders and Sales by Segment: Growth in Semiconductors and Electronics exceeding plan Semiconductors and Electronics: Growth exceeding mid-term plan FPD: Significant increase in 1H due to the increased investment in LCD Increased order backlog will contribute to sales in the next fiscal year an
Slide 8: 2. Revision of full-year order Plan: Revised to ¥245.0 billion (+¥15.0 billion)
2. Revision of full-year order Plan : Revised to ¥245.0 billion (+¥15.0 billion) Full-year order plan revised from ¥230.0 billion to ¥245.0 billion (+¥15.0 billion) due to active investment in semiconductors, electronics, and FPDs Aiming for further growth with a focus on semiconductors and electron
Slide 9: 3-(1) 2Q Profit Margin: Gross Profit Margin at highest level since listing
3-(1) 2Q Profit Margin: Gross Profit Margin at highest level since listing Gross Profit Margin: 32.4%, Highest level since listing Operating Profit Margin: 13.5%, improved significantly YoY Gross Profit Margin (Unit: ¥1 billion,%) Operating Profit Margin (Unit: ¥1 billion,%) Net Sales Gross Profit M
Slide 10: 3-(2) 1H Profit Margin: Improvement over the same period of the previous year
3-(2) 1H Profit Margin: Improvement over the same period of the previous year Both gross profit margin and operating profit margin improved. Profitability in 2H is expected to improve further by strengthening manufacturing capabilities. Gross Profit Margin (Unit: ¥1 billion,%) Operating Profit Margi
Slide 11: Environment surrounding ULVAC
Environment surrounding ULVAC © 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215E 11
Slide 12: Semiconductors, Electronics and FPD: Investment expanding in Medium-to-Long Term
Semiconductors, Electronics and FPD: Investment expanding in Medium-to-Long Term High-level investment continues in medium-to-long term Advancement of Investment in Smart Society and Digitalization Technological Innovation Metaverse Investment for Green Energy Conversion Increasing Production Establ
Slide 13: 1-(1) Semiconductors: Expanding business opportunities by entering Logic market
1-(1) Semiconductors: Expanding business opportunities by entering Logic market 中期経営計画を上方修正：22年度売上高 Logic: 2,100億円→2,350億円、営業利益 Expanding business opportunities by entering the metal hard mask (MHM)340億円→390億円 process Achieving growth through both logic and memory 半導体・電子・FPD関連の投資拡大が見込まれることから、技術革新に対応
Slide 14: 1-(2) Semiconductors: Growth expected to exceed market growth
1-(2) Semiconductors: Growth expected to exceed market growth 中期経営計画を上方修正：22年度売上高 2,100億円→2,350億円、営業利益 Continued capex expansion for both logic and memory 340億円→390億円 Logic: Aiming to grow faster than market growth by MHM process and other processes increase 半導体・電子・FPD関連の投資拡大が見込まれることから、技術革新に対応する研究開発
Slide 15: 2-(1) Electronics: Lineup of equipment for various electronic device fields and applications
2-(1) Electronics: Lineup of equipment for various electronic device fields and applications Application Device ULVAC Equipment EV Automotive Devices IGBT Power Device Inverter Motors SiC Industrial robots Diodes Power Saving Devices MOSFET AR/VR μOLED Automotive instrument Anti-reflection film Sput
Slide 16: 2-(2) Electronics: Growth mainly in China, also in Japan, Taiwan, etc.
2-(2) Electronics: Growth mainly in China, also in Japan, Taiwan, etc. Active investment in power devices, optical devices, communication devices, etc., mainly in Japan and China Especially in China, the government's policy of domestic production has stimulated investment, mainly in the field of pow
Slide 17: 2-(3) Electronic growth factors: Power devices growth with the shift to green energy・EVs
2-(3) Electronic growth factors: Power devices growth with the shift to green energy・EVs Power devices becomes a growth engine as the shift to green energy and EVs progresses. （Orders Received in 1H：1.4x YoY） Market Environment ULVAC’s Strenghth IGBT • The number of power devices installed • High ma
Slide 18: 2-(4) Electronic growth factors: Accelerated growth of China's electronic device market
2-(4) Electronic growth factors: Accelerated growth of China's electronic device market China's domestic production policy Increased demand for electronic devices・ • Stabilization of the supply chain Dependence on imports • Improvement of trade balance • Power devices • High-frequency devices Local
Slide 19: 3. FPD: Orders increased in 1H, Mid-to-Long Term growth by OLED-shift・Battery-related
3. FPD: Orders increased in 1H, Mid-to-Long Term growth by OLED-shift ・Battery-related 1H: Active investment in LCD for IT panels; significant increase in orders for both LCD and OLED Progress in the shift to OLED (mobile + IT panel + TV)⇒ Active investment in large substrate (G8.5) OLED from FY2022
Slide 20: 4. Stable business bases also strong
4. Stable business bases also strong • Strong orders due to active investment in semiconductor electronics, FPD, and consumer electronics. • Strong sales of leak detectors (HELIOT series) used for product inspection Components (1H：+30%YoY) of air-conditioning parts, etc. • Some orders were received
Slide 21: Progress of Mid-term Management Plan
Progress of Mid-term Management Plan © 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215E 21
Slide 22: Progress of Mid-term Management Plan (Summary)
Progress of Mid-term Management Plan (Summary) Mid-term Management Plan Activities Evaluation of results and progress • New entry into logic miniaturization process • Active investment in logic and memory ⇒ Orders exceeding plan Semiconductor • Memory investment resumed, new • Growth through MHM pro
Slide 23: Topics
Topics Revision of Environmental Targets Merger of Wholly Owned Subsidiaries We will strive to curb greenhouse gas emissions and address climate In order to accelerate the "Strengthening of the manufacturing change through a variety of activities, including energy conservation capability", two major
Slide 24: Supporting the realization of a smart and digital society and green energy
Supporting the realization of a smart and digital society and green energy through technological innovation Smart and Digital Society Green Energy Conversion Realization Low Power Consumption Smart Society⇒Solving Social Problems Communicating Memory Logic IC Sensor Device Battery Miniaturization Hi
Slide 25: Appendix
Appendix © 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215E 25
Slide 26: Quarterly Business Results
Quarterly Business Results FY2020 FY2021 YoY (Unit: ¥1 billion) 1Q 2Q 3Q 4Q 1Q 2Q Amount Ratio Orders Received 31.2 59.8 42.1 65.8 66.3 78.3 +18.5 +31% Net Sales 36.6 47.3 44.7 54.5 47.4 58.3 +11.0 +23% Gross Profit 9.4 13.9 13.4 17.1 13.2 18.9 +5.0 +36% Gross Profit Margin 25.7% 29.5% 29.9% 31.4% 2
Slide 27: Orders and Net Sales by Segment (Quarterly)
Orders and Net Sales by Segment (Quarterly) Orders received (Unit: ¥1 billion) Net sales (Unit: ¥1 billion) Semiconductor & Electronics Semiconductor & Electronics Device Production Equipment Component Materials Device Production Equipment Component Materials FPD Production Equipment Industrial Equi
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Unit: ¥1 billion) Liabilities and Net Assets (Unit: ¥1 billion) Investment securities etc. Property,plant and equipment Net Assets Other Long-term liabilities Other current assets Inventories Other current liabilities Interest-bearing debt Notes and accounts receiv
Slide 29: ULVAC Vacuum Technology Contributes to Many Industries and Applications
ULVAC Vacuum Technology Contributes to Many Industries and Applications © 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215E 29