Hamamatsu Photonics K.k. · TSE:6965
Hamamatsu Photonics K.k — FY2024 Earnings Presentation
45 slides from Hamamatsu Photonics K.k's earnings presentation, November 2024
Slide 1: Fiscal Year ended September 30, 2024 Financial Result
Hamamatsu Photonics K.K. Fiscal Year ended September 30, 2024 Financial Result Tokyo Stock Exchange : 6965 November, 2024 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 1
Slide 2: Agenda
Agenda 01 Financial Summary 02 Medium-term Plan Growth Strategy Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 2
Slide 3: Agenda
Agenda 01 Financial Summary 02 Medium-term Plan Growth Strategy Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 3
Slide 4: Financial Summary (FY23-FY24)
Financial Summary (FY23-FY24) Sales decreased due to prolonged impact of reactionary decline from customer’s advanced order, but began to improve in fourth quarter. (Unit: Billion yen) FY24 YoY YoY(Excluding NKTP) FY23 FY24 (Excluding NKTP) Change % Change % Sales 221.4 203.9 200.3 -17.5 -7.9 -21.1
Slide 5: Profit Fluctuation Factors (FY23-FY24)
Profit Fluctuation Factors (FY23-FY24) (Unit: Billion yen) 600 *Excluding Impact of currency fluctuation 550 Decrease in gross profit due ▲ to sales Operating profit 500 decrease -24.5 450 -13.2 ▲ 56.6 Decrease due to 400 lower gross profit margin S.G.&A. Expenses/R&D 350 -9.8 increase Impact of cur
Slide 6: Earning Forecast (FY24-FY25)
Earning Forecast (FY24-FY25) Demand in many industries improved, resulting in increased revenues. Profit will decrease due to aggressive growth investments, but stable growth is expected from FY26 onward. (Unit: Billion yen) FY25 YoY FY24 NKTP impact FX impact (Plan) Change % Sales 203.9 218.9 15.0
Slide 7: Profit Fluctuation Factors (FY24-FY25)
Profit Fluctuation Factors (FY24-FY25) (Unit: Billion yen) *Excluding Impact of currency fluctuation 500 450 ▲ 400 Increase in gross Increase due to higher gross S.G.&A. profit due to profit margin Expenses/R&D sales increase Increase 350 + 9.4 +0.1 - 14.9 300 Impact of currency fluctuation 250 - 2.
Slide 8: Sales by Application (FY23-24-25)
Sales by Application (FY23-24-25) (Unit: Billion yen) FY23-FY24 FY23-FY24 FY25 FY23 FY24 (Plan) Change % Change % Medical-bio 78.1 64.9 70.0 -13.2 -16.9 5.1 7.9 Industrial 74.4 66.3 73.9 -8.1 -10.9 7.6 11.5 Analytical 22.5 20.4 22.0 -2.1 -9.3 1.6 7.8 Academic research 14.5 16.4 19.0 1.9 13.1 2.6 15.
Slide 9: Summary of Application (Medical-bio FY23-FY24-FY25)
Summary of Application (Medical-bio FY23-FY24-FY25) (Unit: Billion yen) FY25 FY23-FY24 FY23-FY24 FY23 FY24 (Plan) Change % Change % Radiographic testing 52.4 41.4 39.9 -11.0 -21.0 -1.5 -3.6 Laboratory testing 22.6 19.7 21.1 -2.9 -12.8 1.4 7.1 Medical-bio total 78.1 64.9 70.0 -13.2 -16.9 5.1 7.9 ◼ Fo
Slide 10: Summary of Application (Industrial FY23-FY24-FY25)
Summary of Application (Industrial FY23-FY24-FY25) (Unit: Billion yen) FY25 FY23-FY24 FY24-FY25 FY23 FY24 (Plan) Change % Change % Semiconductor manufacturing equipment 33.3 31.5 35.5 -1.8 -5.4 4.0 12.7 Semiconductor Failure analysis system 10.5 10.1 11.4 -0.4 -3.8 1.3 12.9 Non-destructive testing 2
Slide 11: Agenda
Agenda 01 Financial Summary 02 Medium-term Plan Growth Strategy Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 11
Slide 12: Medium-term Plan
Medium-term Plan Aim to expand business by acquiring and creating new markets in addition to growth in existing markets FY27 FY30 Target Sales 259.1billion yen Sales Operating Operating profit (%) 37.7billion yen (14.6%) 300 profit EBITDA (%) 62.0 billion yen (24.6%) billion yen 20% ROE Over 8.0% In
Slide 13: Business Performance FY25-FY27: Future upfront investment period
Business Performance FY25-FY27 : Future upfront investment period Accelerate growth through the effects of large investments and M&A from FY27 onward Special demand due to Sales Operating profit COVID pandemic (X-ray CT, PCR, DNA Reaction to prior orders sequencer) Increase in expenses of Sales CAGR
Slide 14: Business Performance FY30 Target and NKTP acquisition
Business Performance FY25-FY27 : Future upfront investment period Accelerate growth through the effects of large investments and M&A from FY27 onward (Billion yen) （Billion yen） 300 FY30 Target 60 Sales Operating profit 250 Sales 50 Operating profit 200 300 40 Sales Billion yen 150 30 Operating 100
Slide 15: Capital Investment / Depreciation / R&D Expenses
Capital Investment / Depreciation / R&D Expenses (Unit: Billion yen) Capital investment Depreciation R&D Expenses 60 30 60 52.9 50 50 25 20 18.6 19.3 19.6 40 40 31.1 30.9 30 15 12.3 13.0 30 23.0 24.5 22.0 20 17.6 17.7 10 20 13.9 14.7 10 10 5 0 0 0 FY23 FY24 FY25 FY26 FY27 FY23 FY24 FY25 FY26 FY27 FY
Slide 16: Expansion of existing markets
Expansion of existing markets Medical-bio Industrial ◼ Inventory adjustment completed, restoring traditional growth ◼ Inventory adjustment completed, restoring traditional growth trend trend ◼ Introduce next-generation technologies and differentiate in ◼ Strength total solutions from semiconductor m
Slide 17: Agenda
Agenda 01 Financial Summary 02 Medium-term Plan Growth Strategy Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 17
Slide 18: Growth strategy
Growth strategy 01 Steady growth in existing markets where we can leverage our strengths ► Deploy cutting-edge technologies aligned with current trends promptly to secure a strong market position ► Deep market knowledge, customer network, and high market share 02 Introduction of high value-added mod
Slide 19: Medical & Biotechnology
Medical & Biotechnology X-ray CT Market PET Market Trend Trend • Increased functionality and lower radiation exposure of CT • Enhancing the time resolution of the detector for • Growing future need for X-ray direct detection higher resolution image acquisition photon counting CT (PC-CT) by using CdT
Slide 20: Medical & Biotechnology: Dental Market
Medical & Biotechnology Dental Market Trend Our Approach Differentiation in the high-end market Company-wide cooperation ⚫ Customization for each customer, AI noise reduction for higher definition and improved usability • Commoditization ⚫ Secure market share in Japan and Europe of TFT-based ⚫ Enter
Slide 21: Industrial (Semiconductor Manufacturing & testing equipment)
Industrial (Semiconductor Manufacturing & testing equipment) ◼ Semiconductors such as HBM investment in semiconductor front-end fab equipment to reach record high in next 3 years ◼ Growth driven by demand for AI-related semiconductors Semiconductor Manufacturing Stable supply of our products, which
Slide 22: Industrial (Semiconductor Failure Analysis System)
Industrial (Semiconductor Failure Analysis System) Semiconductor Failure Analysis from Offline to Total Inline inspection Expectations of 20 billion yen business ◼ High demand for HBM is driving growth ◼ To improve the yield of HBM and advanced devices, inspections are shifting from sampling to full
Slide 23: Industry (non-destructive testing)
Industry (non-destructive testing) ◼ Rapid increase in demand for inspection of AI server boards for data centers due to the spread of AI ◼ Larger LiBs for EVs and CT inspection of all LiBs ◼ Competition with low-voltage Micro Focus X-ray source (MFX) made in China AXI Board Inspection Larger LiBs X
Slide 24: Growth in new business models
Growth in new business models Establish high value-added modules as a new business model ◼ Integrate internal core technologies ◼ Sell new devices with competitive advantages as high-value-added modules tailored to market needs Electron Tube Business Laser Business VALUE Imaging and Measuring Optica
Slide 25: Growth in new business models: collaboration with NKTP
Growth in new business models NKTP's state-of-the-art fiber laser has been added to our light-detection technology to Acquiring new markets through acquire all optical-related elemental technologies collaboration with NKTP (The wavelength, phase, brightness, sensitivity, etc. of the light can be all
Slide 26: Promotion of high value-added modules
Promotion of high value-added modules ◼ Sensor + readout circuit, power supply, spectrometer, etc. Innovative New Device High value-added module with sensor + readout circuit, power supply, ◼ Fusion of Opto-semiconductor and PMT*1 spectrometer, etc. ◼ High SN, High Dynamic range, Low dark current AP
Slide 27: Promotion of high value-added modules
Promotion of high value-added modules ◼ High value-added custom sensor + built-in camera module <Solid State Division> <Electron Tube Division> <Systems Division> Image Sensor Scintillator + FOP Built-in camera module ► High Dynamic range ► High-speed sampling rate ► Sensitivity uniformity, High res
Slide 28: Growing new markets through synergy with NKT Photonics
Growing new markets through synergy with NKT Photonics ◼Supplying key devices that determine the performance of quantum computers using Photonics Quantum Computing Hardware Market • 2035: 700 million US dollar CAGR: 20.06 % (2022-2035)* Hamamatsu possesses laser light sources, photodetectors, and op
Slide 29: Growing Market Held by NKT Photonics
Growing Market Held by NKT Photonics ◼Supplying High-Quality and Highly Stable Lasers to the Ophthalmic Laser Treatment Market Ophthalmology laser market • 2021: 160 million EUR → 2026: 210 million EUR • Growth of the ophthalmic laser surgery market is driven by aging global population and is key to
Slide 30: Capture new markets
Capture new markets ◼Supplying high-stability, high-power lasers to the security market Security Market • 2024: 369.8 million US dollar → 2029: $1,346.6 million US dollar CAGR: 29.5 % (2024-2029)* • Counter-Security measures for public facilities • Lasers are a cost-effective way to neutralize FY30
Slide 31: Creation of new markets
Creation of new markets ◼ Strengthen efforts to create new markets from basic research Terahertz wave applications Newly Developing Markets in Need of 100 J Lasers High energy density science Attosecond science Terahertz wave related technologies (e.g. nuclear fusion) Solid-state lasers Solid-state
Slide 32: Agenda
Agenda 01 Financial Summary 02 Medium-term Plan Growth Strategy Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 32
Slide 33: Capital Allocation
Capital Allocation Sources of funds Conjugation Research and • Continue to maintain around development expenses 8 % of sales for sustainable and stable growth. Three-Year Cumulative 58 billion yen Operating CF • Allocate to renewal and new Capital Investment (Before R&D expenses) investment in consi
Slide 34: Shareholder Return Policy
Shareholder Return Policy Dividend Acquisition of treasury stock Basic policy Minimum policy Dividend payout ratio *1 Dividend on equity ratio 20 billion yen *2 + + Flexible 30% target 3.5% implementation • Maintain the existing policy of targeting a dividend payout ratio of around 30 % • Flexible i
Slide 35: Decomposition of Capital Productivity
Decomposition of Capital Productivity ROE (%) Net profit to Sales (%) Actual Plan Actual Plan 19.8% 13.7% 12.3% 10.7% • Although ROE decline 8.2% • Due to supply chain due to inventory disruptions, inquiries and adjustments and FY19 FY24 FY27 orders exceed actual demand depreciation burden from upfr
Slide 36: Appendix
Appendix 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 36
Slide 37: Financial results and plan
Financial results and plan (Unit: Million yen) FY25 FY26 FY27 FY24 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 103,986 99,975 203,961 100.0 110,100 108,800 218,900 100.0 235,900 100.0 259,100 100.0 Cost of sales 50,568 49,508 100,077 49.1 55,800 53,200
Slide 38: Sales by application
Sales by application (Unit: Million yen) FY24 FY25 (Plan) Application 1st half 2nd half Year % 1st half 2nd half Year % Radiographic testing 21,070 20,332 41,402 20.3 19,546 20,398 39,944 18.2 Medical-bio Laboratory testing 10,575 9,177 19,753 9.7 10,125 10,997 21,122 9.6 instrument Others medical i
Slide 39: Plan by business segment
Plan by business segment (Unit: Million yen) FY25 FY24 FY26 FY27 (Plan) (Plan) (Plan) 1st half 2nd half Year 1st half 2nd half Year Electron tube 40,757 37,699 78,456 38,550 38,850 77,400 85,100 89,400 Opto-semiconductor 40,792 38,070 78,862 39,420 41,220 80,640 86,040 97,040 Imaging and 17,807 15,0
Slide 40: Plan of Electron tube
Plan of Electron tube (Unit: Million yen) FY25 FY26 FY27 FY24 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 40,757 37,699 78,456 100.0 38,550 38,850 77,400 100.0 85,100 100.0 89,400 100.0 Cost of sales 17,358 16,618 33,977 43.3 17,620 16,530 34,150 44.1 3
Slide 41: Plan of Opto-semiconductor
Plan of Opto-semiconductor (Unit: Million yen) FY25 FY26 FY27 FY24 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 40,792 38,070 78,862 100.0 39,420 41,220 80,640 100.0 86,040 100.0 97,040 100.0 Cost of sales 22,904 23,029 45,934 58.2 23,660 24,160 47,820 5
Slide 42: Plan of Imaging & measurement instrument
Plan of Imaging & measurement instrument (Unit: Million yen) FY25 FY26 FY27 FY24 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 17,807 15,019 32,827 100.0 18,700 15,800 34,500 100.0 36,000 100.0 40,800 100.0 Cost of sales 7,817 5,818 13,635 41.5 7,900 6,00
Slide 43: Plan of Laser
Plan of Laser (Unit: Million yen) FY25 FY26 FY27 FY24 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 3,192 7,627 10,819 100.0 11,270 10,670 21,940 100.0 23,540 100.0 26,150 100.0 Cost of sales 1,985 4,100 6,086 56.3 5,960 5,650 11,610 52.9 12,000 51.0 12,6
Slide 44: Notes
Notes ◼This material is not intended to be a solicitation to buy or sell any securities of Hamamatsu Photonics K.K. ◼The information contained in this material is based on data available as of making it. No guarantees, promises are made as to its accuracy or completeness. ◼This material includes unc
Slide 45: 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved.
🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 45
Hamamatsu Photonics K.K. — FY2024 Earnings Presentation on 6ix