Slide 1: Third Quarter FY2024 Financial Results
Third Quarter FY2024 Financial Results Ushio Inc. February 7, 2025 Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Copyright © 2025
Slide 2: Highlights of Today's Presentation
Highlights of Today’s Presentation Q3 FY2024 Results: ・ While down year-on-year, revenues and earnings exceeded initial forecasts - Improved profitability by enhancing efficiency through strategic business selection - Investment deferrals owing to semiconductor market downturn hampered performance -
Slide 3: Agenda
I. Financial Results for Q3 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information - ①Full-year forecasts (Additional Information) - ②Others Copyright © 2025 Ushio Inc., All Rights Reserved 3
Slide 4: Q3 FY2024: Summary of Financial Results
Q3 FY2024: Summary of Financial Results YoY Comparison: -4.4 billion yen (-3.3%） Net Sales - Industrial Processes business: Revenues dropped on semiconductor 128.0 billion yen market downturn - Visual Imaging business: Weaker yen boosted revenues YoY Comparison: -2.8 billion yen (-27.5%) Operating P
Slide 5: Q3 FY2024: Financial Highlights
Q3 FY2024: Financial Highlights YoY Comparison Q3 FY2023 Q3 FY2024 Results Results Changes (％) （Billions of yen) Net Sales 132.5 128.0 -4.4 -3.3% Operating Profit 10.2 7.3 -2.8 -27.5% Operating Margin 7.7% 5.8% -1.9P - Ordinary Profit 12.6 10.4 -2.1 -17.1% Profit Attributable to Owners of Parent 8.6
Slide 6: Q3 FY2024: YoY Variation Analysis of Operating Profit
Q3 FY2024: YoY Variation Analysis of Operating Profit Although business portfolio revamp contributed to performance, earnings declined owing to lower revenues, higher forward investments, etc. , and valuation losses (Billions of yen) Impacts of Valuation losses FOREX sales decline associated with bu
Slide 7: Q3 FY2024: Financial Results by Business Segment
Q3 FY2024: Financial Results by Business Segment Q3 FY2023 Q3 FY2024 YoY Comparison Results Results (％) （Billions of yen) Changes Net Sales 60.3 54.6 -5.7 -9.5% Industrial Processes Operating Profit 8.0 7.1 -0.9 -11.6% [Operating Margin] [13.3%] [13.0%] [-0.3P] - Net Sales 59.2 60.3 ＋1.1 ＋1.9% Visua
Slide 8: Q3 FY2024: Industrial Processes Results
Q3 FY2024: Industrial Processes Results Q3 FY2023 Q3 FY2024 YoY Comparison ■Net Sales: Down 5.7 billion yen YoY Results Results (Billions of yen) Changes (%) - A semiconductor market downturn prompted investment postponements, with equipment sales dropping ① Net Sales 60.3 54.6 -5.7 -9.5% - EUV-rela
Slide 9: Q3 FY2024: Visual Imaging Results
Q3 FY2024: Visual Imaging Results YoY Comparison ■Net Sales: Up 1.1 billion yen YoY Q3 FY2023 Q3 FY2024 Results Results (Billions of yen) Changes (%) - Despite fewer large deals than in previous term, revenues rose on weaker yen ① Net Sales 59.2 60.3 ＋1.1 ＋1.9% - Weaker yen supported higher revenues
Slide 10: Q3 FY2024: Life Sciences and Photonics Solutions Results
Q3 FY2024: Life Sciences and Photonics Solutions Results Life Sciences Q3 FY2023 Q3 FY2024 YoY Comparison ■Net Sales: Up 0.4 billion yen YoY (Billions of yen) Results Results Changes (%) - Higher sales of sodium lamps for horticulture Net Sales 4.0 4.4 ＋0.4 ＋11.9% ■Operating Profit: Up 0.8 billion y
Slide 11: Agenda
I. Financial Results for Q3 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information - ①Full-year forecasts (Additional Information) - ②Others Copyright © 2025 Ushio Inc., All Rights Reserved 11
Slide 12: FY2024 Full-Year Forecast: Summary
FY2024 Full-Year Forecast : Summary Remain as announced on November 6, 2024 FY2023 FY2024 YoY Comparison (Billions of yen) Results Forecasts Changes (%) Net Sales 179.4 175.0 -4.4 -2.5% Operating Profit 12.9 7.5 -5.4 -42.2% Operating Margin 7.2% 4.3% -2.9P - Ordinary Profit 16.0 9.5 -6.5 -41.0% Pro
Slide 13: FY2024 Full-Year Forecasts: by Business Segment
FY2024 Full-Year Forecasts: by Business Segment FY2024 Forecasts Q3 FY2024 Progress Outlook for Q4 (Remains as Results rate (Billions of yen) 11/6/2024) Net Sales 80.0 54.6 68.3% ⚫ Production adjustments should increase one-time costs Industrial ⚫ Looking to lift forward growth investments Processe
Slide 14: Shareholder Returns
Shareholder Returns Dividends (yen) Dividends payout ratio 【Dividend policy】 112.2 Generating stable returns Will set dividend floor of ¥70 per share annually Dividends 56.3 51.4 for FY2024~FY2026 47.2 47.8 43.2 30.3 35.5 per Share 30.2 FY2024: Plan to increase to ¥70 70 50 50 50 50 26 26 26 26 26 F
Slide 15: Agenda
I. Financial Results for Q3 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information - ①Full-year forecasts (Additional Information) - ②Others Copyright © 2025 Ushio Inc., All Rights Reserved 15
Slide 16: Business Strategy: Progress with Revamping Business Portfolio①
Business Strategy: Progress with Revamping Business Portfolio① Progressing as planned toward implementing and completing the revamp in Phase I, and have begun formulating action plans for next phase Progress to date Reassess businesses • Streamlining through strategic Establish business selection Ph
Slide 17: Business Strategy: Progress with Revamping Business Portfolio②
Business Strategy: Progress with Revamping Business Portfolio② Generating savings (profit contribution) by revamping business portfolio while also incurring one-time costs to drive growth Details Savings • Streamlining operations through strategic business selection Visual Imaging ¥0.7 billion Savin
Slide 18: Business Strategy: Progress to Date by Business
Business Strategy: Progress to Date by Business Steadily implementing measures to further enhance profitability through structural reforms ⚫ Progressing toward generating revenues from digital lithography systems for advanced packaging next fiscal year Industrial ⚫ Accelerating advanced technology d
Slide 19: Financial Strategy
Financial Strategy Buying back shares as planned as planned to optimize capital under New Growth Strategy FY2024 FY2025-2026 5/24/2024 ～ As of 1/31/2025 ～4/30/2025(plan) Planning to invest Total amount of purchased: ¥22.6 billion ¥20.0-¥30.0 billion (have completed about 76％ of planned spending) in
Slide 20: Human Capital Strategy: Expansion of Second Life Support Program
Human Capital Strategy: Expansion of Second Life Support Program Improving operational efficiency through optimizing organizational workforce ⚫ Background behind expansion of the program • Aiming for streamlined structure by improving labor productivity in line with the business portfolio revamp • C
Slide 21: Agenda
I. Financial Results for Q3 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information - ①Full-year forecasts (Additional Information) - ②Others Copyright © 2025 Ushio Inc., All Rights Reserved 21
Slide 22: FY2024 Full-Year Forecasts: Industrial Processes
FY2024 Full-Year Forecasts : Industrial Processes Remain as announced on November 6, 2024 Net Sales Operating Profit ■Business environment assumptions 82.1 80.0 While the generative AI-related market should grow, demand recovery of the semiconductor market overall remains uncertain - Recovery of the
Slide 23: FY2024 Full-Year Forecasts: Visual Imaging
FY2024 Full-Year Forecasts : Visual Imaging Remain as announced on November 6, 2024 Net Sales Operating Profit ■Business environment assumptions 80.5 78.0 While demand should be firm, keeping tabs on impact of Chinese economy and Hollywood strike Cinema market - Temporarily reduced cinema operations
Slide 24: FY2024 Full-Year Forecasts: Life Sciences and Photonics Solutions
FY2024 Full-Year Forecasts : Life Sciences and Photonics Solutions Remain as announced on November 6, 2024 Life Sciences Net Sales Operating Profit ■Business environment assumptions 5.2 5.5 Demand should remain stable for medical equipment and other offerings ■Net Sales: Up 0.2 billion yen YoY -1.4
Slide 25: Agenda
I. Financial Results for Q3 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information - ①Full-year forecasts (Additional Information) - ②Others Copyright © 2025 Ushio Inc., All Rights Reserved 25
Slide 26: (New) Business Segments and Main Products
(New) Business Segments and Main Products New Business Main Products Product Examples Segment Light Source: UV lamps, OA lamps, Optical equipment lamps, etc. Industrial Equipment: Processes Lithography equipment, Curing (Source: TNO) equipment, EUV light source for UV lamps OA lamps Stepper Direct i
Slide 27: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY2023 FY2024 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Changes (%) Net Sales 39.2 45.7 47.5 46.9 37.5 48.1 42.4 -5.0 -10.6% Operating Profit 2.0 2.9 5.2 2.7 0.3 3.9 3.1 -2.1 -40.3% Operating Margin 5.2% 6.4% 11.0% 5.9% 0.9% 8.2% 7.4% -3.
Slide 28: Reference: Quarterly Financial Results by Business Segments
Reference: Summary of Quarterly Financial Results by Business Segments FY2023 FY2024 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Changes (%) Net Sales 17.4 20.3 22.5 21.7 15.5 22.0 17.0 -5.5 -24.5% Industrial 2.2 1.7 4.0 2.8 1.0 4.1 1.8 -2.2 -54.5% Operating profit Processes Operating Marg
Slide 29: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region Others 0.6% Q3_FY2023 Japan North America Asia Europe Net Sales 21.9% 28.0% 41.1% 8.4% 132.5 billion yen Q3_FY2024 Net Sales Japan North America Asia Europe 128.0 21.5% 30.2% 38.5% 8.7% billion yen Others 1.1% Copyright © 2025 Ushio Inc., All Rights Reserved 29
Slide 30: Reference: R&D Expenses/Capital Expenditures and Depreciation
Reference: R&D Expenses/Capital Expenditures and Depreciation R&D Expenses（Billions of yen） Capital Expenditures (Billions of yen) Ratio of R&D Expenses to Net Sales (%) Depreciation (Billions of yen) 8.5 8.0 15.0 7.2 7.1 14.0 6.4 6.5 12.9 11.8 11.4 10.1 10.5 10.0 8.9 9.0 8.2 8.3 7.36.9 7.6 Q3 Q3 Q3
Slide 31: Reference: Balance Sheet
Reference: Balance Sheet Assets Liabilities/Net Assets (Billions of yen) Changes (Billions of yen) Changes -11.9 -11.9 337.5 337.5 325.6 325.6 21.6 17.3 -4.3 Notes and AP 65.6 58.7 -6.9 Cash and Bank Deposits 37.6 35.8 -1.7 Other Current Liabilities -2.9 Notes and AR (Trade) 41.3 39.7 36.8 50.5 +9.1
Slide 32: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 21.6 8.9 16.1 15.8 14.3 16.0 14.5 11.0 7.3 13.0 12.9 8.8 -0.3 5.3 0.7 0.8 FY2020 FY2021 FY2022 FY2023 Q3_FY2024 -0.7 -1.1 -3.4 -5.5 -10.6 -7.1 -13.4 -14.8 -26.8 Operating Profit Sales CF Investment CF Financial CF Free CF Copyright © 2025 Ushio Inc., All Rights
Slide 33: Glossary
Glossary AI Artificial Intelligence DCP Digital Cinema Projector DI Direct Imaging: An exposure technique that draws patterns directly without using a mask DLT Digital Lithography Technology EUV Extreme Ultraviolet Radiation FPD Flat Panel Display OA Office Automation Advanced packaging An advanced
Slide 34: IR Website and Email Newsletter
IR Website and Email Newsletter The investor relations portal on our website presents an array of useful information. We invite you to register on the portal to stay up to date with statutory disclosures, announcements, and other content through our email newsletter. Visit our official website Recei
Slide 35: Disclaimer
<Disclaimer> 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 substantially from those forward-looking
Slide 36: Contact: Investor Relations Office
Contact: Investor Relations Office Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ir/ Copyright © 2025 Ushio Inc., All Rights Reserved 36