Hamamatsu Photonics K.k. · TSE:6965
Hamamatsu Photonics K.k — FY2023 Earnings Presentation
47 slides from Hamamatsu Photonics K.k's earnings presentation, November 2023
Slide 1: Fiscal Year ended September 30, 2023 Financial Result
Hamamatsu Photonics K.K. Fiscal Year ended September 30, 2023 Financial Result Tokyo Stock Exchange : 6965 November, 2023 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 1
Slide 2: Agenda
Agenda 01 Summary of Results 02 Medium-term Plan 03 Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 2
Slide 3: Agenda: Summary of Results
Agenda 01 Summary of Results 02 Medium-term Plan 03 Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 3
Slide 4: Financial Results
Financial Results Point Although the rapid growth trend slowed due to a decline in demand related to COVID-19 and the settling of panic orders, both sales and operating profit remained at high levels (Unit: billion yen) (Unit: billion yen) 250.0 2,500 60.0 600 500 50.0 200.0 2,000 400 40.0 150.0 1
Slide 5: Business Results
Business Results Summary Sales increased due to high order backlog and the impact of yen depreciation SG&A expenses increased due to normalization from COVID-19 and higher personnel expenses due to inflation (Unit: billion yen) FY22 FY23 YoY FY22 FY23 Exchange rate (Actual rate) (Actual rate) 12
Slide 6: Analysis fluctuation to operating profit FY22-23
Analysis fluctuation to operating profit FY22-23 Without the impact of currency fluctuations (Unit: billion yen) 600 60.0 impact of 580 58.0 currency + 1.7 17 fluctuations (3.5) (35) 560 56.0 Increase of SG & A and R & D expenses Increase of gross 540 profit by sales 54.0 increase Amount due to 74 +
Slide 7: Sales by application
Sales by application Medical-bio Industrial Sales for X-ray CT were strong until the 1H, Overall sales of semiconductor production but inventory adjustments became apparent equipment remained strong against the backdrop of from the 2H backlog of orders, despite the impact of deteriorating semico
Slide 8: Sales by Region
Sales by Region FY22 FY23 FY21 1H FY09/22 North North Europe Europe America America 21.4% 21.7% 26.1% 26.6% Asia Asia Japan Japan 27.7% 24.7% 28.5% 23.0% (Millions of yen) (Unit: billion yen) (Millions of yen) Europe Asia (China) Japan North America FY22 44.6 57.7(37.4) 51.5 54.5 FY23 48.1 63.1 (41.
Slide 9: Capital investment / Depreciation / R&D expense
Capital investment / Depreciation / R&D expense (Unit: billion yen) Capital expenditures and Depreciation R&D expense and ratio of R&D expense to sales 200 20.0 6.0% 40040.0 5.6% 31.1 5.4% 311 180 18.0 35035.0 160 16.0 5.0% 30030.0 140 14.0 12.3 123 120 12.0 11.2 112 4.0% 25025.0 20.4 204 100 10.0 2
Slide 10: Agenda: Medium-term Plan
Agenda 01 Summary of Results 02 Medium-term Plan 03 Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 10
Slide 11: Business model: Added value creation cycle
Business model Added value creation cycle Society, Environment, Humanity Providing solutions, contributions Customers Understanding issues & needs Supplying high value-added Profit products Build close relationships / Customization Solution provider 🄫 Hamamatsu Photonics K.K. and its affiliates…
Slide 12: Business model: Contribution and added value
Business model Contribution and added value Pursue unknown and unexplored area by using light to make contributions Create industries that require new light technology of Hamamatsu Photonics High value-added products generate high profit margin Further contribution Understand the issues an
Slide 13: 3 elements supporting business model
3 elements supporting business model Small amount, Customization Our own fabrication large variety High added value Super Niche Flexible customization Solution provider Company (Not feasible with external fab) Capital Investment of 90 billion yen to maintain and develop Hamamatsu business model. The
Slide 14: Supplying solutions
High value-added by modularization Supplying solutions Intelligent Compact One Chip modules Build-in modules Optical devices mounted with CMOS integrated circuits Drive circuits, ADC, IF, Peripheral devices Sensor wafer 8 inch Mass Direct Bond Analog / Digital circuit design Module production Interc
Slide 15: Medium-term plan (FY26)
Medium-term plan ( FY26) Points Although profits are expected to decrease in FY24 due to inventory adjustments, the long-term growth trend is expected to be maintained Stable growth is expected from FY25 (Unit: billion yen) (Unit:billion yen) 3,000 300.0 70.0 700 600 60.0 2,500 250.0 500 50.0 2,
Slide 16: Forecast (FY24)
Forecast (FY24) Points Expect inventory adjustment due to subsiding panic orders for semiconductors, etc. Depreciation increased by 3.0 billion yen due to new building operation, etc. (Unit: billion yen) FY23 FY24 FY23 FY24 YoY Exchange rate (Actual rate) (Planned rate) 2.8 Sales 221.4 224.3 $1
Slide 17: Analysis fluctuation to operating profit FY23-FY24
Analysis fluctuation to operating profit FY23-FY24 Without the impact of currency fluctuations (Unit: billion yen) 600 60.0 580 58.0 + 2.8 28 (3.6) (36) Increase of SG & A and R & D expenses 560 56.0 Increase of gross profit by sales Amount due to increase change in gross 540 54.0 margin (56) (5.6)
Slide 18: Medium-term Plan
Medium-term Plan Leveraging our strengths in markets with growth potential and further strengthening our high value-added structure FY26 Capital expenditures 3-year total 89.1 billion yen Sales 255.2 billion yen FY24 43.1 billion yen (17.7 billion yen) FY25 31.7 billion yen (19.4 billion yen) FY26 1
Slide 19: Business Strategy
Business Strategy Medical-bio Industrial Transport Providing total solutions from Provide solutions by strengthening high semiconductor manufacturing processes value-added to analysis applications Focused approach as a future Strengthening Relationships with Medical Strengthening X-ray app
Slide 20: Medical-bio (X-ray CT) Business Environment
Medical-bio (X-ray CT) Business Environment Rapid growth since FY20 in demand for X-ray CT due to COVID-19 and shortage of materials (demand exceeding production capacity) FY26 is expected to decline compared to FY23, but continue to grow stably in the medium term X-ray CT sensor (USD million) X
Slide 21: Medical-bio (X-ray CT) Growth Strategy
Medical-bio (X-ray CT) Growth Strategy Continue to develop and provide products through close cooperation with leading manufacturers of CT equipment Increase capacity for mass production using 8-inch wafers Improve cost performance with CT modules equipped with in-house ASIC Developing Cadmi
Slide 22: Medical-bio (Pathological Diagnostics) Business Environment
Medical-bio (Pathological Diagnostics) Business Environment Growing shortage of pathologies in each country around the world, and collaboration among hospitals is accelerating through the digitization of glass slides Increase in large-scale bidding projects due to large-scale regional projects,
Slide 23: Medical-bio (Pathological Diagnostics) Growth Strategy
Medical-bio (Pathological Diagnostics) Growth Strategy Full-scale entry into the pathological diagnostics market from the research application market through medical device approvals Responding to diverse needs by expanding the lineup of medical devices Strengthening sales channels through col
Slide 24: Industrial (Semiconductor equipment and failure analysis) Environment
Industrial (Semiconductor manufacturing equipment and failure analysis) Business Environment Investment restraint by semiconductor manufacturers due to the slump in the memory market (oversupply of DRAM, NAND) Restrained orders and delayed delivery dates due to excess inventory at manufacturing
Slide 25: Industrial (Semiconductor equipment and failure analysis) Growth Strategy
Industrial (Semiconductor manufacturing equipment and failure analysis) Semiconductor manufacturing equipment Semiconductor failure analysis system growth strategy growth strategy Memory: Maintain high market share with the introduction of new Improve manufacturing capacity to respond to fully a
Slide 26: Industrial (non-destructive testing) Business Environment
Industrial (non-destructive testing) Business Environment The trend toward EV requires more LiB inspection (all LiB testing to ensure safety) Increased demand for electronic circuit board inspection for AI penetration and EV trend Intensifying competition in the low-end range market due to mar
Slide 27: Industrial (non-destructive testing) Growth Strategy
Industrial (non-destructive testing) Growth Strategy Developing and supplying high-voltage MFX for larger LiB and in-line CT inspection Increasing production capacity to meet rapidly expanding demand Developing and supplying Wide Field Of View MFX for AXI market Providing total solutions by
Slide 28: Transport (LiDAR) Business Environment
Transport (LiDAR) Business Environment Though the popularization of autonomous driving is progressing, the expansion period is delayed than initially anticipated Full-scale penetration is expected to begin in 2026 and beyond Responding to global inquiries and securing the top share (Millions o
Slide 29: Transport (LiDAR) Growth Strategy
Transport (LiDAR) Growth Strategy Differentiate with forward measurement LiDAR Strengthen near-infrared sensitivity Intelligent not only sensors but also emitters, MEMS mirrors, etc. Continuous improvement of sensors Enhance compound semiconductors required at (high sensitivity, low crosstalk)
Slide 30: Agenda: Financial Strategy
Agenda 01 Summary of Results 02 Medium-term Plan 03 Financial Strategy 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 30
Slide 31: Financial Strategy: Capital allocation
Financial Strategy Three-year capital allocation projection based on the medium-term plan FY24-FY26 capital allocations Cash Generation Capital Allocation Capital expenditures Aggressive investment for business growth and business Operating CF (Growth Investment) 89.1 billion yen continuity 3-year c
Slide 32: Financial Strategy: Stable dividends
Financial Strategy Stable dividends are the basic policy, considering share buybacks as appropriate 200 Payout 60.0% ratio Share buyback 180 Approx. 30% 160 10 billion yen 50.0% target (Total return ratio 74.2%) 140 37.5% 40.0% 120 31.1% 32.1% 29.7% 100 27.1% 27.0% 27.5% 30.0% 80 72 76 76 20.0% 60 4
Slide 33: 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved.
🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 33
Slide 34: Data book
Hamamatsu Photonics K.K. Fiscal Year ended September 30, 2023 Data book Tokyo Stock Exchange : 6965 November.2023 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 34
Slide 35: Financial results and plan
Financial results and plan Unit :Million Yen FY2022 FY2023 FY2024(Plan) FY2025(Plan) FY2026(Plan) 1st half 2nd half Year % 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 100,516 108,286 208,803 100.0 111,618 109,827 221,445 100.0 111,500 112,800 224,300 100.0 238,100 100.0 255
Slide 36: Sales by application
Sales by application Unit :Million Yen FY2022 FY2023 FY2024 (Plan) Application st nd st nd st 1 half 2 half Year % 1 half 2 half Year % 1 half 2nd half Year % Radiographic testing 25,666 26,676 52,342 25.1 27,147 25,308 52,455 23.7 24,037 25,443 49,481 22.1 Medical-bio Laboratory testing 11,623 12,3
Slide 37: Sales by application of Electron tube segment
Sales by application of Electron tube segment Unit :Million Yen FY2022 FY2023 FY2024 (Plan) Application st nd st nd st 1 half 2 half Year % 1 half 2 half Year % 1 half 2nd half Year % Radiographic testing 6,055 6,200 12,255 14.8 6,181 5,557 11,738 13.4 5,310 5,323 10,633 12.2 Medical-bio Laboratory
Slide 38: Sales by application of Opto-semiconductor segment
Sales by application of Opto-semiconductor segment Unit :Million Yen FY2022 FY2023 FY2024 (Plan) Application st nd st nd st 1 half 2 half Year % 1 half 2 half Year % 1 half 2nd half Year % Radiographic testing 19,610 20,476 40,086 41.4 20,966 19,741 40,707 41.2 18,727 20,120 38,847 40.9 Medical-bio
Slide 39: Sales by application of Imaging and measurement instruments segment
Sales by application of Imaging and measurement instruments segment Unit :Million Yen FY2022 FY2023 FY2024 (Plan) Application st nd st nd st 1 half 2 half Year % 1 half 2 half Year % 1 half 2nd half Year % Radiographic testing 0 0 0 0.0 0 9 9 0.0 0 0 0 0.0 Medical-bio Laboratory testing 3,690 3,173
Slide 40: Major subsidiaries income statements
Major subsidiaries income statements Local currency (thousand local currency) Yen (million yen) Company Account item FY2022 FY2023 FY2022 FY2023 Year % Year % Year Year Sales 525,886 100.0 508,978 100.0 65,500 70,763 Hamamatsu Corporation Gross profit 102,742 19.5 109,270 21.5 12,796 15,191 sales co
Slide 41: 2022-2026 plan by business segment
2022-2026 plan by business segment Unit :Million Yen FY2024 FY2022 FY2023 FY2025 FY2026 (Plan) (Plan) (Plan) 1st half 2nd half Year 1st half 2nd half Year 1st half 2nd half Year Electron tube 40,062 42,476 82,538 43,909 43,582 87,492 43,500 43,750 87,250 90,300 94,700 Opto- 46,955 49,856 96,812 50,9
Slide 42: 2022-2026 plan of Electron tube
2022-2026 plan of Electron tube Unit :Million Yen FY2024 FY2025 FY2026 FY2022 FY2023 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 40,062 42,476 82,538 100.0 43,909 43,582 87,492 100.0 43,500 43,750 87,250 100.0 90,300 100.0 94,70
Slide 43: 2022-2026 plan of Opto-semiconductor
2022-2026 plan of Opto-semiconductor Unit :Million Yen FY2024 FY2025 FY2026 FY2022 FY2023 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 46,955 49,856 96,812 100.0 50,992 47,721 98,714 100.0 46,100 48,800 94,900 100.0 100,900 100.0
Slide 44: 2022-2026 plan of Imaging & measurement instrument
2022-2026 plan of Imaging & measurement instrument Unit :Million Yen FY2024 FY2025 FY2026 FY2022 FY2023 (Plan) (Plan) (Plan) 1st half 2nd half Year % 1st half 2nd half Year % 1st half 2nd half Year % Year % Year % Sales 11,993 14,688 26,681 100.0 14,864 16,895 31,759 100.0 17,850 16,550 34,400 100.0
Slide 45: Capital investment, R & D expenses and Depreciation
Capital investment, R & D expenses and Depreciation Unit :Million Yen FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Ratio to Ratio to Ratio to Ratio to Ratio to Ratio to Amount Amount Amount Amount Amount Amount sales (%) sales (%) sales (%) sales (%) sales (%) sales (%) 1st quarter 4,235 12.4 2,052 5.7
Slide 46: 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
Slide 47: 🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved.
🄫 Hamamatsu Photonics K.K. and its affiliates. All Rights Reserved. 47
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