Rigaku Holdings Corporation · TSE:268A
Rigaku — Q3 2024 Earnings Presentation
30 slides from Rigaku's earnings presentation, Nov 14, 2024
Slide 1: Third Quarter FY2024 Consolidated Financial Results
Third Quarter FY2024 Consolidated Financial Results November 14, 2024
Slide 2: Disclaimer and forward-looking statements
This material has been prepared solely for the purpose of providing relevant information regarding Rigaku Holdings Corporation (“Rigaku” or the “Company”) and does not constitute an offer to sell or the solicitation of an offer to buy any security in the United States, Japan or any other jurisdictio
Slide 3: Business and Growth Strategy
Business and Growth Strategy © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 2
Slide 4: Rigaku at a Glance
Rigaku at a Glance ◼ Leading Global Company Specializing in Innovative X-ray Analytical Solutions for Diversified End Markets Key Financials / KPIs Sales Ratio by Region(4) 2023/12 2023/12 14% Asia Revenue Adj. EBITDA(1) Adj. EBITDA Margin(1) # of Customers(2) Overseas Sales Ratio of Revenue 14% Chi
Slide 5: Rigaku Demonstrating Strong Growth
Rigaku Demonstrating Strong Growth ◼ High Revenue Growth and Margin Evolution Led by Expansion of Semiconductor Process Control Instruments Business Historical Financial Performance(1) JPY Bn Revenue of Multipurpose Analytical Instruments 79.8 Revenue of Semiconductor Process Control Instruments Rev
Slide 6: Three Pillars of Rigaku's Growth Strategy
Three Pillars of Rigaku’s Growth Strategy ~ Accelerated Growth Expected by Innovative X-ray Solutions Leveraging Fundamental Multipurpose Analytical Driving Lab to Fab(*) Semiconductor Process Exploring New Growth Multipurpose Analytical Strengths Instruments Business Model in Semiconductors Control
Slide 7: Product & Application Development Covering Diversified End Markets
① Product & Application Development Covering Diversified End Markets ◼ Wide Array of Products and Applications Leveraging Competitive Core Technologies Develops Solid Customer Base in Diversified End Markets Revenue of Multipurpose Analytical Instruments by End Market(1) Key Products Rigaku’s Market
Slide 8: Growth Potential from New Application Development
③ Growth Potential from New Application Development ◼ Contributing to Innovation in Growth Market by Leveraging “Lab to Fab” Model Semiconductor / Electric Components Battery / Battery Materials Life Science Major Semiconductor Wafer Manufacturers Academia / Research Institutes Automotive Battery Ma
Slide 9: X-ray Technology Essential for Semiconductor Industry Advancement
② X-ray Technology Essential for Semiconductor Industry Advancement ~Offering Products Essential for Advanced Semi Manufacturing ◼ Product Lineup Essential for Impurity Inspection and Thin Film Measurement ◼ Rigaku’s Products Cover a Wide Range of Processes from Wafer Manufacturing to Front-end and
Slide 10: Growth Through Semi Miniaturization and Increased Complexity
② X-ray Technology Essential for Semiconductor Industry Advancement ~Growth Through Semi Miniaturization and Increased Complexity(1) ◼ TAM in WFE Measurement and Metrology Expands to USD 3.9Bn(2) as X-ray and Optical/CD Measurements Become Complementary w/ Semi Miniaturization ◼ Rigaku Aims to Outpa
Slide 11: Sustainable Growth with c. 10% Revenue CAGR
Sustainable Growth with c. 10% Revenue CAGR ◼ Target Revenue CAGR of c. 10% and Adj. EBITDA Margin of Upper 20% Range in Mid-to-Long Term Mid-to-Long Term Targets(1) (JPY Bn) 2022/12 2023/12 Mid-to-Long Term Target Revenue 62.7 79.8 Revenue CAGR: (YoY Growth Rate) 15.7% 27.4% c. 10% Adj. EBITDA Marg
Slide 12: 3Q FY2024 Consolidated Financial Results
3Q FY2024 Consolidated Financial Results © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 11
Slide 13: Highlight of Consolidated Results for 3Q FY2024/12
Highlight of Consolidated Results for 3Q FY2024/12 ◼ 3Q YTD Results: Revenue JPY 62.6 Bn (YoY +11.5%), Operating profit JPY 11.8Bn (YoY +7.7%), Profit after tax JPY 9.0Bn (YoY +19.5%) ◼ Multipurpose Analytical Instrument Business: Sales increased in major regions, including an increase in sales of X
Slide 14: 3Q FY2024/12 Consolidated Financial Results Summary
3Q FY2024/12 Consolidated Financial Results Summary FY2023/12 FY2024/12 Changes Changes Ratio Main Factors of Increase/Decrease (JPY MM) 3Q YTD 3Q YTD ▪ Multipurpose Analytical Instruments: supplementary budget in China, XRD and XRF growth in Asia, XRTmicron increase in Europe Revenue 56,123 62,580
Slide 15: 3Q FY2024/12 B/S & Cash Flow
3Q FY2024/12 B/S & Cash Flow FY2023/12 FY2024/12 Changes Changes Ratio Main Factors of Increase/Decrease (JPY MM) End of 4Q 3Q YTD Current Assets 61,030 63,613 2,582 4.2% ▪ Increase in inventory (increasing inventory to meet sales growth, etc.) Cash and Cash Equivalents 20,521 21,735 1,214 5.9% Prop
Slide 16: Adjusted EBITDA Analysis
Adjusted EBITDA Analysis ◼ Adjusted EBITDA increased YoY due to higher revenue from both Multipurpose Analytical Instruments and Semiconductor Process Control Instruments, as well as higher revenue from Semiconductor Process Control Instruments and services, which contributed to higher margin ◼ Rati
Slide 17: Earnings by Business (Management Accounting Basis)
Earnings by Business (Management Accounting Basis) Revenue Operating Profit Operating Profit Margin (JPY MM) FY23 3Q YTD FY24 3Q YTD Changes Changes Ratio FY23 3Q YTD FY24 3Q YTD Changes Changes Ratio FY23 3Q YTD FY24 3Q YTD Changes Multipurpose Analytical Instruments 24,392 27,988 3,595 14.7% 3,422
Slide 18: Revenue by Region
Revenue by Region(1) FY2023/12 FY2024/12 Changes Changes Ratio Main Factors of Increase/Decrease (JPY MM) 3Q YTD 3Q YTD Total Revenue 56,123 62,580 6,456 11.5% - ▪ Delays in Semiconductor Process Control Instruments sales and EUV customer inventory Japan 18,732 17,987 (745) (4.0)% adjustments Asia (
Slide 19: Revenue by End Markets (Management Accounting Basis)
Revenue by End Markets (Management Accounting Basis) FY2023/12 FY2024/12 Revenue Ratio Revenue Ratio Notes (JPY MM) Full-year 3Q YTD Total Revenue 79,887 100% 62,580 100% - Semiconductor / Electronic Components 26,641 33% 22,684 36% ▪ Advanced logic, foundries and WFEs are driving growth Life Scienc
Slide 20: R&D Expenses / Capital Expenditure
R&D Expenses / Capital Expenditure ◼ R&D expenses increased strategically. Capital expenditures temporarily increased due to the expansion of the Yamanashi Plant in this fiscal year 8 R&D Expenses 7.6% 8.0% 8 Capital Expenditure 7.0% (JPY Bn) (JPY Bn) 7.1% 7 6.5% 7.0% 7 5.8% 6.0% 6 6.0% 6 5.0% 5.1 4
Slide 21: Changes in Order Volume / Backlog by Business
Changes in Order Volume / Backlog by Business ◼ Orders and backlogs have declined due to normalization of special demand from China’s supplementary budget in 2023, inventory adjustment by EUV customers and supply chain optimization ◼ Pipeline is steadily increasing, and we aim to achieve order growt
Slide 22: Appendix
Appendix. © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 21
Slide 23: Reconciliation of Adjusted Items (1/3)
Reconciliation of Adjusted Items (1/3) FY2023/12 FY2024/12 (JPY MM) 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q YoY 3Q YTD YoY Profit Before Tax 3,317 3,165 4,207 10,690 3,036 5,409 3,098 (1,109) 11,544 853 Depreciation and 1,020 1,093 1,080 3,193 1,212 1,235 1,190 110 3,638 444 Amortization Impairment Losses 148 170
Slide 24: Reconciliation of Adjusted Items (2/3)
Reconciliation of Adjusted Items (2/3) FY2023/12 FY2024/12 (JPY MM) 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q YoY 3Q YTD YoY Operating Profit 3,429 3,289 4,284 11,003 3,160 5,511 3,176 (1,108) 11,849 846 Margin 19.1% 18.3% 21.2% 19.6% 16.1% 23.8% 16.0% (5.2)% 18.9% (0.7)% PPA Amortization 623 628 630 1,882 600 589 5
Slide 25: Reconciliation of Adjusted Items (3/3)
Reconciliation of Adjusted Items (3/3) FY2023/12 FY2024/12 (JPY MM) 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q YoY 3Q YTD YoY Profit 2,163 2,461 2,900 7,525 2,185 4,322 2,482 (417) 8,990 1,465 Margin 12.0% 13.7% 14.4% 13.4% 11.1% 18.7% 12.5% (1.8)% 14.4% 1.0% PPA Amortization 623 628 630 1,882 600 589 538 (92) 1,728
Slide 26: Revenue by Business: Multipurpose Analytical Instruments
Revenue by Business: Multipurpose Analytical Instruments Revenue / OP Margin Performance Highlight (JPY MM) 13.9% ▪ In China, sales of Chinese supplementary orders received in FY2023/12 are driving sales growth 13.4% for multipurpose analytical instruments 27,988 ▪ In Japan, sales of general-purpose
Slide 27: Revenue by Business: Semiconductor Process Control Instruments
Revenue by Business: Semiconductor Process Control Instruments Revenue / OP Margin Performance Highlight 36.9% (JPY MM) 33.8% ▪ Sales growth in Americas and China drive Semiconductor Process Control Instruments sales growth 15,995 ▪ MFM310 was introduced to customers in Americas at various productio
Slide 28: Revenue by Business: Components and Services
Revenue by Business: Components and Services Revenue / OP Margin Performance Highlight (JPY MM) 23.3% 23.5% ▪ Services increased by JPY 900MM, others decreased by JPY 500MM 18,207 18,596 ▪ In Japan, sales of multilayer mirrors for EUV applications stagnated due to customers' inventory adjustments 6,
Slide 29: Glossary
Glossary Term Description • A technique for obtaining information on the crystal structure of a sample from the diffraction pattern that occurs when a crystal sample X-Ray Diffraction (XRD) is irradiated with X-rays. It is used to analyze powder samples and processed material samples • A technique f
Slide 30: Glossary Cont'd
Glossary Cont’d Term Description • Abbreviation for “Extreme Ultraviolet” lithography, which refers to an exposure technology that uses extreme ultraviolet light of 13.5nm EUV Lithography instead of the conventional technology of 193nm wavelength of light • Abbreviation for “gate-all-around” transis