Slide 1: FY2017 Financial Results
FY2017 Financial Results USHIO INC. May 10, 2018 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 subst
Slide 2: Main Points of Today's Presentation
Main Points of Today’s Presentation Net sales and earnings increased YoY For FY2017 Net sales were below but operating income achieved forecast Forecast higher net sales and earnings YoY For FY2018 Forecast operating income of ¥12.5 billion, target for second year of Medium-term Management Plan Medi
Slide 3: Agenda
Agenda I. Financial Results for FY2017 II. Forecasts for FY2018 III. Medium-Term Management Plan IV. Supplementary Information 3
Slide 4: Highlights of Financial Results for FY2017
Highlights of Financial Results for FY2017 Consolidated Net Sales up 0.4% year on year to ¥173.4 billion Consolidated Operating Income up 18.0% year on year to ¥10.1 billion. Higher sales and earnings overall. - Operating Income outperformed forecasts announced on May 11, 2017 - 売上高 Net ：1,734億円 Sal
Slide 5: Summary of Financial Results FY2017
Summary of Financial Results FY2017 YoY （billion yen） FY16 FY17 Changes ％ Net Sales 172.8 173.4 ＋0.6 +0.4 Operating Income 8.6 10.1 +1.5 +18.0 Operating Income (%) 5.0 5.9 ＋0.9P - Ordinary Income 11.0 12.0 ＋1.0 ＋9.5 Profit Attributable to Owners of Parent 7.0 11.0 ＋3.9 ＋56.2 EPS（yen） 55.06 86.11 +31
Slide 6: Variation Analysis of Operating Income
Variation Analysis of Operating Income (billion yen) +2.1 ▲2.6 FOREX（US$） FY16=109yen FY17=111yen (Changes+2yen) +0.8 10.1 +0.9 8.6 +0.3 Amelioration in Optical Equipment Amelioration in Business Imaging Others Effect of early Performance Equipment retirement benefits FOREX at USHIO INC. (based on G
Slide 7: Financial Results by Business Segments
Financial Results by Business Segments YoY (billion yen) FY16 FY17 Changes ％ Net Sales 97.6 97.6 +0.0 +0.0 Equipment Operating Income 0.0 ▲0.5 ▲0.5 - Operating Income 0.1 ▲0.5 ▲0.6P - （%） Net Sales 71.9 72.4 +0.5 +0.7 Light Sources Operating Income 8.1 10.4 +2.2 +28.1 Operating Income 11.3 14.4 +3.1
Slide 8: Business Segment Overview (1)
Business Segment Overview (1) Equipment Business Overview Net Sales（billion yen） Imaging Equipment YoY ＋￥0.0 billion 97.6 97.6 Cinema ：▲7% +0.0% ・Intensified competition from solid-state light 2.0 1.7 ▲￥0.2 billion source (laser phosphor) projector expansion in China ▲13.2% General imaging ：▲6% ・Int
Slide 9: Business Segment Overview (2)
Business Segment Overview（２） Light Sources Business Overview Net Sales（billion yen） Discharge Lamp YoY 71.9 72.4 +￥0.5 billion UV lamps ：+8% +0.7% ・Growth in capital investment for semiconductors and FPDs(G10.5, OLED) Lamps for cinema ：▲2% ・Demand for lamps decreased in line with increased conversio
Slide 10: Comparison of Full-year Forecasts with Actual Results
Comparison of Full-year Forecasts with Actual Results FY17 FY17 Changes Achievement （billion yen） Forecasts Results Rate(%) Net Sales 180.0 173.4 ▲6.5 96.4 Operating Income 10.0 10.1 +0.1 101.5 Operating Income (%) 5.6 5.9 +0.3P - Ordinary Income 11.5 12.0 +0.5 104.8 Profit Attributable to Owners of
Slide 11: Net Sales by Sub-segment: Plan vs Actual
Net Sales by Sub-segment Comparison of Full-year Plan with Actual Results Full Year Plan Achievement （billion yen） FY17 (Announced on October 30） Rate(%) （Results) Revised Vs. October Initial Plan October 30 Vs. Initial Plan 30 revision Imaging- equipment 62.7 72.5 67.5 86.6 93.0 Optical- 33.0 27.5
Slide 12: II. Forecasts for FY2018
I. Financial Results for FY2017 II. Forecasts for FY2018 III. Medium-Term Management Plan IV. Supplementary Information 12
Slide 13: Forecasts for FY2018
Forecasts for FY2018 YoY FY17 FY18 （billion yen） Results Forecasts Changes ％ Net Sales 173.4 180.0 +6.5 +3.7 Operating Income 10.1 12.5 +2.3 +23.1 Operating Income (%) 5.9 6.9 +1.0P - Ordinary Income 12.0 14.0 +1.9 +16.2 Profit Attributable to Owners of Parent 11.0 11.5 +0.4 +4.5 EPS（yen） 86.11 90.0
Slide 14: Business Outlook by Sub-segments
Business Outlook by Sub-segments Equipment ＋1.4％ Imaging ・Slowdown in establishment of new movie theaters, mainly in China ・Increase in sales of competitive RGB laser projectors in tune with market demand for shift to solid- equipment state light sources ・Strengthen sales, focusing on entertainment
Slide 15: Forecasts for FY2018 Net Sales by Sub-segments
Forecasts for FY2018 Net Sales by Sub-segments YoY FY17 FY18 （billion yen） Results Forecasts Changes ％ Imaging- equipment 62.7 60.0 ▲2.7 ▲4.4 Equipment Optical- equipment 33.0 37.5 +4.4 +13.3 Illumination and others 1.7 1.5 ▲0.2 ▲15.2 Sub-total 97.6 99.0 +1.3 +1.4 Net Discharge- lamps 59.9 64.5 +4.5
Slide 16: III. Medium-Term Management Plan
I. Financial Results for FY2017 II. Forecasts for FY2018 III. Medium-Term Management Plan IV. Supplementary Information 16
Slide 17: Agenda: Medium-term Management Plan
Agenda １．About the Medium-term Management Plan ・About the Medium-term Management Plan (figures) ・Review of FY2017 (1st year) ・Earnings structural reform and business strategies for sustainable growth ２. Towards “Leap as a light innovation company” 17
Slide 18: About the Medium-term Management Plan
１．About the Medium-term Management Plan ・About the Medium-term Management Plan (figures) ・Review of FY2017 (1st year) ・Earnings structural reform and business strategies for sustainable growth ２. Towards “Leap as a light innovation company” 18
Slide 19: Medium-term Management Plan Target figures
Medium-term Management Plan Target figures Maintain targets announced last year Key Performance Indicators MTMP 1st year MTMP 2nd year MTMP 3 rd year （KPI） FY17 FY18 FY19 Results Plan Plan Operating Income （billion yen） 10.1 12.5 15.0 Operating Income (%) 6.9 7.9 5.9 ↑ ↑ 6.6 7.5 ※参考数値 *Reference num
Slide 20: Review of FY2017 (1st year)
１．About the Medium-term Management Plan ・About the Medium-term Management Plan (figures) ・Review of FY2017 (1st year) ・Earnings structural reform and business strategies for sustainable growth ２. Towards “Leap as a light innovation company” 20
Slide 21: Review of FY2017 (1st year): Net Sales
Review of FY2017（1st year）of the Medium-term Management Plan Strategic policy Achieved Not achieved Maintain and Improve Earning Capability ① in Existing Businesses （1）Progress in structural reform（2）Sluggish imaging equipment earnings ② Pursue New Growth Opportunities ― （3） Insufficient speed Net S
Slide 22: Review of FY2017 (1st year): Operating Income
Review of FY2017（1st year）of the Medium-term Management Plan Strategic policy Achieved Not achieved Maintain and Improve Earning Capability ① in Existing Businesses （1）Progress in structural reform（2）Sluggish imaging equipment earnings ② Pursue New Growth Opportunities ― （3） Insufficient speed Opera
Slide 23: Review of FY2017 (1st year): Strategic Policy Results
Review of FY2017（1st year）of the Medium-term Management Plan Strategic policy 1st year Results Challenges for the future Achieved （１） ① Progress of earnings structural reforms Maintain and improve Equipment（Optical equipment） earning capability of Major earnings improvement from Continuous effort im
Slide 24: Earnings structural reform and business strategies
１．About the Medium-term Management Plan ・About the Medium-term Management Plan (figures) ・Review of FY2017 (1st year) ・Earnings structural reform and business strategies for sustainable growth ２. Towards “Leap as a light innovation company” 24
Slide 25: Leap as a "light innovation company"
Image of sustainable growth（Net Sales） Medium-term Management Plan Solidify the foundation to make Leap as a “light the next leap forward innovation company” FY19 Net Sales 190.0 billion yen ↑ 200.0billion yen New markets Core business FY17～FY19 FY20～ 25
Slide 26: Earnings structural reforms (Light Sources Business)
Earnings structural reforms（ Light Sources Business） USHIO INC.（Non-consolidated） Light Sources： Initiatives to secure solid Enhance quality Reduce inconsistency/bias quality and competitive strength Manufacturing Increase added value Goals FY2017 achievements: Lower defect rates, shorter lead times
Slide 27: Earnings structural reforms (Optical equipment)
Earnings structural reforms（ Equipment Business Optical equipment） USHIO INC.（Non-consolidated） Optical equipment： Initiatives to improve profitability by improving business structure Awareness of the issue Results（FY17） Even when sales grow, income does not improve Q：Quality, C：Cost, D：Delivery Ine
Slide 28: "Earning Capacity" Steadily Increasing
Earnings structural reforms USHIO INC.（Non-consolidated) “Earning Capacity” Steadily Increasing USHIO INC.（Non-consolidated） Number of employees Gross Margin per capita USHIO INC.（Non-consolidated） (Number of people) (million yen) ▲113 ▲6.6％ USHIO INC. Ongoing improvement FY13 End FY14 End FY15 End
Slide 29: Earnings structural reforms (Imaging-equipment)
Earnings structural reforms（ Equipment Business Imaging- equipment） （Christie） Concentrate on core business to Initiatives to return to a growth trajectory including cutting fixed costs raise “earning capacity” Implement fundamental earnings structural reform Fields centered on high-end imaging １．So
Slide 30: Earnings structural reforms: Reform financial position
Earnings structural reforms（ Equipment Business Imaging- equipment） Change in imaging equipment profitability （FY17→FY18） Reform financial position Originally Originally Net Sales（FY17→FY18） planed Christie planed ▲ Focus on core business 74.5 Working capital turnover ratio worsening 72.5 (Sort out
Slide 31: Business strategies (Light Sources Business)
Business strategies (Light Sources Business) 170,000 screens worldwide (as of FY2017) New theaters increasing, mainly in China 31
Slide 32: Business strategies (Optical equipment)
Business strategies (Equipment Business Optical equipment) Semiconductor backend Process Cutting-edge package technology advancing MALDI-TOF-MS 32
Slide 33: Business strategies (Imaging-equipment)
Business strategies (Equipment Business Imaging- equipment) Crimzon Horizon LED Litebrite Terra 62.7 33
Slide 34: Towards "Leap as a light innovation company"
１．About the Medium-term Management Plan ・About the Medium-term Management Plan (figures) ・Review of FY2017 (1st year) ・Earnings structural reform and business strategies for sustainable growth ２. Towards “Leap as a light innovation company” 34
Slide 35: USHIO's new business fields to create value
USHIO’s new business fields to create value Solutions for environmental pollution, food safety, etc. Address soaring medical costs, enhance QOL,* etc. ※QOL = Quality of life Ensure clean air and water, prevent the spread Build a prosperous society where people are healthy of disease, create a safe a
Slide 36: M&A strategies
Ｍ＆Ａ strategies Positioning M&As as the Key to Future Growth USHIO will actively work on M&A projects that fully promise synergistic effects such as leading to opening up new markets for "light." Ready to invest around 40-50 billion yen for large scale of M&As Investment securities: Consider sale whe
Slide 37: R&D strategies
Ｒ＆D strategies R&D Spending Underpinning USHIO’s High Value-added Products Expand the scope of use for existing “light” technology and actively engage in R&D activities tied to sustainable growth USHIO’s R&D Investment Implementation of research activities with an eye to launching high value-added p
Slide 38: About Return of Profits to Shareholders
About Return of Profits to Shareholders 【Policy】 Return profits in a stable and consistent manner Cash dividends (FY2018 plan): ¥30 (¥4 increase) Aim to further return profits to all shareholders, taking into consideration funds necessary for investments in sustainable medium- to long-term growth go
Slide 39: Supplementary information: USHIO's business schematic
Supplementary information：USHIO’s business skematic Category Main target Key word(Task) Light Light source Equipment(incl. Others(Service, Functional contents) business application device) Patterning・Forming Curing・Bonding Modification・ Cleaning・Removal Management philosophy ・IoT/AI Heating・Drying s
Slide 40: Sales by segment in Medium-term Management Plan
Supplementary information: Sales by segment in Medium-term Management Plan (FY2017 ~ FY2019) 1st year 2st year 3st year Changes in 3 years （FY19-FY16) Segment Sub-segment FY16 FY17 FY18 FY19 （billion yen） （％） CAGR （Results） （Results） （Plan） （Plan） （％） Imaging equipment 67.0 62.7 60.0 65.0 ▲2.0 ▲3 ▲1
Slide 41: IV. Supplementary Information
I. Financial Results for FY2017 II. Forecasts for FY2018 III. Medium-Term Management Plan IV. Supplementary Information 41
Slide 42: Reference: Summary of Financial Results Quarterly
Reference: Summary of Financial Results Quarterly FY17 FY16 FY17 FY16 FY17 4Q - 4Q 4Q - 3Q (billion yen) 4Q 1Q 2Q 3Q 4Q Changes ％ Changes ％ Net Sales 47.8 41.7 43.4 44.5 43.6 ▲4.1 ▲8.7 ▲0.8 ▲2.0 Operating 2.8 2.8 2.8 2.9 1.5 ▲1.3 ▲45.5 ▲1.3 ▲46.9 Income Operating Income Ratio (%) 6.0 6.7 6.5 6.6 3.6
Slide 43: Quarterly Results by business segments
Reference: Summary of Financial Results Quarterly by business segments FY17 FY16 FY17 (billion yen) FY16 FY17 4Q - 4Q 4Q - 3Q 4Q 1Q 2Q 3Q 4Q Changes ％ Changes ％ Equipment Net Sales 28.7 22.5 24.1 26.1 24.7 ▲3.9 ▲13.8 ▲1.3 ▲5.3 Operating Income 0.1 0.0 ▲0.0 0.4 ▲0.9 ▲1.0 ▲857.9 ▲1.3 ▲327.5 Operating
Slide 44: Other Income and Expenses, Extraordinary Income and Losses
Reference: Other Income and Expenses, Extraordinary Income and Losses (billion yen) FY16 FY17 YoY (billion yen) FY16 FY17 YoY Other Income 3.4 3.6 ＋0.1 Extraordinary Income 3.2 12.4 +9.2 Interest income 0.8 1.3 +0.4 Gain on sales of non- 0.4 0.3 ▲0.0 current assets Dividend income 1.3 1.4 +0.1 Gain
Slide 45: Sales by Sub-segment (Quarter)
Reference: Sales by Sub-segment 《Quarter》 (billion yen) 47.8 43.4 44.5 43.7 42.5 42.4 0.8 39.9 0.8 41.7 0.6 0.7 0.6 0.2 1.1 0.8 0.6 1.2 0.5 0.5 0.3 0.3 0.5 Equipment 0.2 17.1 Business 15.2 17.5 14.5 15.6 28.7 15.4 26.1 15.4 21.2 24.0 18.7 23.6 (60.1.%) 22.5 24.1 (58.7.%) 24.7 (53.0%) (55.6%) (55.6.%
Slide 46: Sales Ratio
Reference: Sales Ratio Others 1.0% FY16 Japan North America Asia Europe Net Sales ￥172.8 20.3% 28.2% 41.0% 9.5% billion FY17 North Japan Asia Europe Net Sales America ￥173.4 20.7% 40.1% 10.3% billion 27.6% Others 1.3% 46
Slide 47: R&D Expenses
Reference : R&D Expenses R&D Expenses Ratio of R&D Expenses to Net Sales (%) 7.0 6.8 6.3 6.2 5.7 5.7 5.8 11.2 9.9 10.8 10.6 8.9 9.8 10.5 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Plan YoY billion yen FY16 FY17 Changes ％ R&D Expenses 9.8 10.6 ＋0.８ +8.2 Ratio of R&D Expenses 5.7 6.2 ＋0.4P - to Net Sales(%) 4
Slide 48: Balance Sheet
Reference: Balance Sheet ◆Assets (billion yen) ◆Liabilities/Total Net Assets (billion yen) Changes Changes 308.4 307.2 ▲1.1 308.4 307.2 ▲1.1 Notes and Accounts 16.8 +4.5 21.4 Payable Cash and Bank 63.9 +10.7 Deposits 37.7 ▲4.3 Other Current 33.3 74.7 Liabilities, +0.0 Marketable Securities ▲3.3 40.5
Slide 49: Capital Expenditures, Depreciation and Amortization
Reference: Capital Expenditures, Depreciation and Amortization (billion yen) Capital Expenditures Depreciation and 10.6 10.2 Amortization 9.7 7.7 7.8 6.7 6.7 7.0 6.4 6.5 6.5 5.9 5.0 5.0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Plan YoY billion yen FY16 FY17 Changes ％ Capital Expenditures 10.2 5.0 ▲5.1 ▲50
Slide 50: Cash Flow
Reference : Cash Flow (billion yen) Free Cash Flow Operating Activities 19.8 15.5 12.6 Investing Activities 6.8 4.3 ▲ 2.6 ▲ 3.6 Financing Activities ▲ 15.2 FY16 FY17 Cash and Cash Equivalents Cash and Cash Equivalents 47.8 at the Beginning of the FY 50.9 at the Beginning of the FY Cash and Cash Equi
Slide 51: Features of USHIO Group's Light Sources
Reference: Features of USHIO Group’s Light Sources Lamp Projector Laser Projector Super Light RGB Laser High-Pressure Xenon Lamp LaPh RGB Laser Source (CP-RGB Series) UV Lamp Christie’s Line up CP4325-RGB * Variety of Projectors CP Series Crimson Series Mar. 2018 Release Non Dolby Projector (3LCD/1D
Slide 52: Press release: ADTEC acquires Via Mechanics exposure system business
Press release ADTEC Engineering Acquires Exposure System Business of Via Mechanics ADTEC Engineering Co., Ltd. ("ADT"), a wholly owned subsidiary of USHIO INC. announced that it has concluded an absorption-type company split agreement with Via Mechanics, Ltd. (Head office: Kanagawa prefecture, Japan
Slide 53: Press release: Projection Mapping by Onagawa Students
Press release Projection Mapping by Junior High School Students from Onagawa Town in Miyagi Prefecture Helping Out with High Brightness Projector, Lighting System, and Other Equipment －Junior high school students steep the JR Onagawa Station building in “images, music, and light” to express gratitud
Slide 54: Glossary
Reference: Glossary AI Artificial Intelligence AR Augmented Reality COF Chip On Film DCP Digital Cinema Projector FA Factory Automation FPD Flat Panel Display IAQ Indoor Air Quality IoT Internet of Things M-SAP Modified Semi Additive Process OA Office Automation OLED Organic Light Emitting Diode RGB
Slide 55: Contact
Contact: Corporate Planning Dept., USHIO INC. Email: ir@ushio.co.jp http://www.ushio.co.jp/en/