Ulvac, Inc. · TSE:6728
Ulvac — H1 FY2022 Earnings Presentation
31 slides from Ulvac's earnings presentation, Feb 14, 2023
Slide 1: Business Results: The First Half of FY2022
ULVAC, Inc. Business Results The First Half of FY2022 (July 2022 - December 2022) Feb. 14, 2023 Securities Code：6728 Breakthrough 2022 © 2023 ULVAC, Inc. | Confidential and Proprietary Information 1
Slide 2: Disclaimer regarding forward-looking statements
Disclaimer regarding 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 company performance, such as the glob
Slide 3: Summary
Summary 1. Summary of Consolidated Business Results for FY2022 1H • Orders: Semiconductor & Electronics orders continued strongly but FPD orders declined due to a reactionary decline from last year, -11% YoY, but mostly in line with plan • Net sales: -6% from plan due to longer delivery lead times f
Slide 4: FY2022 1H Consolidated Business Results
FY2022 1H Consolidated Business Results © 2023 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 4
Slide 5: Summary of Business Results for FY2022 1H
1. Summary of Business Results for FY2022 1H Orders received: Mostly as planned by growth in Semiconductor & Electronics but a reactionary decline in FPDs, -11% YoY Net sales: +5% YoY though -6% from plan due to longer delivery times for parts Operating income: -8% YoY due to increase in SG&A
Slide 6: Orders and Net Sales: Grow Steadily in Semiconductor & Electronics
2. Orders and Net Sales: Grow Steadily in Semiconductor & Electronics Orders received: Decreased YoY due to reactionary decline in FPD despite the increase of Semiconductor & Electronics (+35%) and Components (+3%) that has higher margin. Net sales: Increased YoY Orders Received (Unit: ¥1 billio
Slide 7: Orders and Net Sales: Growing steadily in Semiconductor & Electronics
3. Orders and Net Sales: Growing steadily in Semiconductor & Electronics Steady growth in Semiconductor & Electronics driven by Logic, Power devices, Electronic devices, etc. Order backlogs: ¥136 billion (+¥15.8 billion YoY ) Orders Received (Unit: ¥1 billion) Net Sales (Unit: ¥1 billion) Semico
Slide 8: Semiconductor & Electronics: Driven by Logic, Power, Electronic Devices
4. Semiconductor & Electronics: Driven by Logic, Power, Electronic Devices, etc. Steady growth mainly in Japan and China, driven by Logic, Power devices, Electronic devices, etc. Semiconductor & Electronics Orders by Sector › (Unit: ¥1 billion) 52.7 MHM Process: Grow steadily despite slight slowdo
Slide 9: Half Year Profit Margin Trends
5. Half Year Profit Margin Trends Gross profit margin (29.9%) and operating profit margin (9.4%) both declined due to lower sales compared to FY2021 2H Gross Profit Margin (Unit: ¥1 billion,%) Operating Profit Margin (Unit: ¥1 billion,%) Net Sales Gross Profit Margin Net Sales Operating Profit Mar
Slide 10: Quarterly Profit Trends
6. Quarterly Profit Trends Gross profit margin (30.5%) and operating profit margin (9.7%) both improved due to an improved mix of Semiconductor & Electronics compared to FY2022 1Q Continue to improve profit margin by improving mix and increasing sales of Semiconductor & Electronics, etc. Gross P
Slide 11: Revision of FY2022 Earnings Forecast & Environment Surrounding ULVAC
Revision of FY2022 Earnings Forecast & Environment Surrounding ULVAC © 2023 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 11
Slide 12: Revision of FY2022 Forecasts
1. Revision of FY2022 Forecasts Revised downward net sales, operating profit, and profit attributable to owners of the parent due to expected decrease in orders received for FPDs and materials and decrease in net sales and operating profit resulting from longer delivery time of parts Both net sa
Slide 13: Revision of Orders Received and Sales Forecast
2-(1) Revision of Orders Received and Sales Forecast Orders are expected to be ¥260.0 billion, mainly due to FPDs and Materials expected not to reach the plan. Net sales are expected to be ¥230.0 billion due to the delay in contribution to sales caused by the failure to achieve the plan for orde
Slide 14: Revised sales targets
2-(2) Revised sales targets Sales targets in the mid-term management plan established in August 2020 have been revised upward every year (¥210 billion ⇒ ¥235 billion ⇒¥250 billion) FY20 and FY21 results far exceeded the initial plan. The revised forecast of ¥230 billion is higher than the init
Slide 15: Semiconductor: Growth through new customers and new processes
3. Semiconductor: Growth through entry of new customers and new processes in addition to logic MHM Growth exceeding the market through MHM process of logic, new customers, and entry into new processes Mid to long-term trend of investment expansion remains unchanged, especially from FY24 onward,
Slide 16: Electronics: Power Devices Grow Mainly in Japan and China
4-(1) Electronics: Power Devices Grow Mainly in Japan and China Investment in power devices, optical devices, electronic devices, etc. expanded in Japan and China Continous growth in power devices and various electronic devices is expected from FY2023 and beyond Order Plan (by sector) (Unit: ¥1
Slide 17: Electronics: Grow Power Devices with the Shift to Green Energy and EVs
4-(2) Electronics: Grow Power Devices with the Shift to Green Energy and EVs Power devices grew strongly, especially in Japan and China (orders in 1H: 2.3x YoY) Orders received Japan China portions in 1H Market Environment Continuously invest in 8-inch production increase + Start investment in Mar
Slide 18: FPD: Driven by OLEDs and Roll-to-Roll Deposition Equipment
5.FPD: Driven by OLEDs and Roll-to-Roll Deposition Equipment for EV Batteries Lower than planned due to postponement of some additional LCD investments and battery investments Orders are expected from FY23 onwards mainly for sputtering equipment for large-size substrate OLED for IT panels and Ro
Slide 19: Stable Business Bases Also Solid
6. Stable Business Bases Also Solid Components Materials Customer Support Orders received Vs. FY19 1.2 times Orders received Vs. FY19 1.4 times Net sales Vs. FY19 1.3 times FY19 Results FY22 Forecast FY19 Results FY22 Forecast FY19 Results FY22 Forecast CS out of net sales ¥28.5 billion ¥33 billion
Slide 20: Initiatives to Improve Profit Margin
7. Initiatives to Improve Profit Margin Gross profit margin improved to 30.9% due to the effect of Semiconductor & Electronics mix improvement In the next mid-term management plan, we aim to achieve a gross profit margin of 35% or more by improving the Semiconductor & Electronics mix, increasing
Slide 21: Mid-term Management Plan on Track
8. Mid-term Management Plan on Track Basic Policy Investment in Development for Growth Profit-oriented management (Selection and Concentration) through structural change Priority Strategies Outcome and progress evaluation › Semiconductor: Growth through new customers and entry into new processes in
Slide 22: Shareholder Return
9. Shareholder Return Aiming for further growth by strengthening R&D investment in growth areas centered on semiconductor and electronics Steadily increasing dividends by positioning shareholder return as one of the most important policies Aiming to increase dividends over long term bases by ach
Slide 23: Growth in FY2023 and beyond
10. Growth in FY2023 and beyond The next mid-term (3 years) management plan is scheduled to be announced in August 2023 The mid to long-term investment expansion trend in semiconductor & electronics, etc. remain unchanged, and the following growth drivers will continue to outperform the market
Slide 24: Topics
Topics Construction of Technology Center in Korea Value Report 2022 issued As part of R&D investment in the semiconductor business, ULVAC has Formulation of Vision 2032 decided to build Technology Center PYEONGTAEK. It is intended to accelerate product and technology development, be closer to ～To
Slide 25: ULVAC's Value Creation: Here & There, Near your side
ULVAC’s Value Creation: “Here & There, Near your side” Wind Power SED AI SED Wind power AEED Artificial Intelligence(AI) Power device Semiconductor AEED High performance IED Electric parts battery for electricity Component Component Material Material Smart home SED Hospital SED Smart home AEED IoT A
Slide 26: Supporting 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 27: Appendix
Appendix © 2023 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 27
Slide 28: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results FY2021 FY2022 YoY (Unit: ¥1 billion) 1Q 2Q 3Q 4Q 1Q 2Q Amount % Orders Received 66.3 78.3 59.6 65.9 66.6 62.5 -15.8 -20% Net Sales 47.4 58.3 60.4 75.2 56.2 55.2 -3.1 -5% Gross Profit 13.2 18.9 18.6 23.0 16.5 16.8 -2.0 -11% Gross Profit Margin 27.9% 32.4% 30.8
Slide 29: Orders received and Net sales by Segment (Quarterly)
Orders received and Net sales by Segment (Quarterly) Orders received (Unit: ¥1 billion) Net sales (Unit: ¥1 billion) Semiconductor & Electronics Semiconductor & Electronics Device Production Equipment Components Materials Device Production Equipment Components Materials FPD Production Equipment Indu
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Unit: ¥1 billion) Liabilities and Net Assets (Unit: ¥1 billion) Cash and deposits Notes and accounts payable,trade Notes and accounts receivable,trade Interest-bearing debt Inventories Other current liabilities Other current assets Other non-current liabilities Pro
Slide 31: ULVAC Vacuum Technology Contributes to Many Industries and Applications
ULVAC Vacuum Technology Contributes to Many Industries and Applications © 2023 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 31