Slide 1: First Quarter FY2024 Financial Results
First Quarter FY2024 Financial Results Ushio Inc. August 5, 2024 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 © 2024 U
Slide 2: Highlights of Today's Presentation
Highlights of Today’s Presentation ◼ Q1 FY2024 Results • Although both down, revenues and earnings exceeded targets after factoring out one-time costs • Efforts to select and prioritize businesses contributed to performance, while growth and development investments progressed on track ◼ FY2024 Forec
Slide 3: Agenda
I. Financial Results for Q1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 3
Slide 4: Summary of Q1 FY2024 Financial Results
Summary of Q1 FY2024 Financial Results YoY Comparison: -1.7 billion yen (-4.4%） Net Sales - Industrial Processes Business: Decrease owed to prolonged deterioration in 37.5billion yen semiconductor market conditions - Visual Imaging Business: Revenues flat, as lower yen offset impact of Hollywood str
Slide 5: Q1 FY2024 Summary of Financial Results
Q1 FY2024 Summary of Financial Results YoY Comparison Q1 FY2023 Q1 FY2024 Results Results Changes (％) （Billions of yen) Net Sales 39.2 37.5 -1.7 -4.4% Operating Profit 2.0 0.3 -1.7 -83.3% Operating Margin 5.2% 0.9% -4.3P - Ordinary Profit 2.8 1.4 -1.3 -48.4% Profit Attributable to Owners of Parent 1
Slide 6: YoY Variation Analysis of Operating Profit for Q1 FY2024
YoY Variation Analysis of Operating Profit for Q1 FY2024 (Billions of yen) ＋0.2 -1.0 Key factors 2.0 IP: -¥0.5 billion VI: -¥0.8 billion* *Including inventory FOREX write-downs -0.6 Impact from lower sales -0.1 -0.3 Impacts from ＋0.2 0.３ production drops, Forward investments -0.1 price hikes, etc. r
Slide 7: Q1 FY2024 Financial Results by Business Segments
Q1 FY2024 Financial Results by Business Segments Q1 FY2023 Q1 FY2024 YoY Comparison Results Results (％) （Billions of yen) Changes Net Sales 17.4 15.5 -1.8 -10.8% Industrial Processes Operating Profit 2.2 1.0 -1.1 -53.3% [Operating Margin] [12.9%] [6.7%] [-6.1P] - Net Sales 17.6 17.5 -0.0 -0.4% Visua
Slide 8: Q1 FY2024: Industrial Processes Results
Q1 FY2024: Industrial Processes Results Q1 FY2023 Q1 FY2024 YoY Comparison Results Results (Billions of yen) Changes (%) ■Net Sales: Down 1.8 billion yen YoY - Equipment sales dropped on curtailed and postponed ① Net Sales 17.4 15.5 -1.8 -10.8% capital investments ② - Maintenance revenues decreased
Slide 9: Q1 FY2024: Visual Imaging Results
Q1 FY2024: Visual Imaging Results YoY Comparison Q1 FY2023 Q1 FY2024 Results Results (Billions of yen) Changes (%) ■Net Sales: Down 0.0 billion yen YoY - Lower digital cinema projector sales reflected reduced ① Net Sales 17.6 17.5 -0.0 -0.4% investment appetite stemming from impacts of strikes and o
Slide 10: Q1 FY2024: Life Sciences and Photonics Solutions Results
Q1 FY2024: Life Sciences and Photonics Solutions Results Life Sciences YoY Comparison Q1 FY2023 Q1 FY2024 ■Net Sales: Up 0.1 billion yen YoY (Billions of yen) Results Results Changes (%) - Increased sodium lamp sales Net Sales 1.3 1.5 ＋0.1 ＋11.3% Operating Profit -0.4 -0.1 ＋0.2 - ■Operating Profit:
Slide 11: Q1 Progress (by Segment) toward Full-Year Forecasts for FY2024
Q1 Progress (by Segment) toward Full-Year Forecasts for FY2024 FY2024 Q1 FY2024 Progress Forecasts Outlook for Q2 and Beyond (Billions of yen) Results rate Unchanged Lithography equipment sales should return to growth path from 79.0 15.5 ⚫ Net Sales 19.7% Industrial H2, with sales increasing ⚫ Forw
Slide 12: Agenda
I. Financial Results for Q1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 12
Slide 13: Summary of FY2024 Full-Year Forecasts
Remain as announced on May 14, 2024 Summary of FY2024 Full-Year Forecasts Revenues and earnings should decline owing to dip in lithography equipment sales and expanded forward investments (performance is expected to recover from FY2025*) *For details, please see the New Growth Strategy: ⚫ 175.0 bill
Slide 14: FY2024 Full-Year Forecast: Summary
Remain as announced on May 14, 2024 FY2024 Full-Year Forecast : Summary FY2023 FY2024 YoY Comparison Results Forecasts (Billions of yen) Changes (%) Net Sales 179.4 175.0 -4.4 -2.5% Operating Profit 12.9 5.0 -7.9 -61.5% Operating Margin 7.2% 2.9% -4.4P - Ordinary Profit 16.0 6.5 -9.5 -59.6% Profit
Slide 15: YoY Variation Analysis of Operating Profit for FY2024
Remain as announced on May 14, 2024 YoY Variation Analysis of Operating Profit for FY2024 12.9 -3.8 -2.6 Impacts from lower sales -1.3 Impacts from -1.1 ＋1.9 5.0 Including ¥3.7 billion production drops, for IP business price hikes, etc. Forward -1.0 investments relating to Increased DLT* projects de
Slide 16: FY2024 Full-Year Forecast: By Business Segments
Remain as announced on May 14, 2024 FY2024 Full-Year Forecast : By Business Segments FY2023 FY2024 YoY Comparison (Billions of yen) Results Forecasts Changes (%) Net Sales 82.1 79.0 -3.1 -3.8% Industrial Processes Operating Profit 10.8 3.5 -7.3 -67.8% [Operating Margin] [13.2%] [4.4%] [-8.8P] - Net
Slide 17: FY2024 Full-Year Forecasts: Industrial Processes
Remain as announced on May 14, 2024 FY2024 Full-Year Forecasts : Industrial Processes Net Sales Operating Profit ■Business environment assumptions 82.1 79.0 While demand to remain weak, emerging signs of gradual recovery - Semiconductor market should gradually recover from second half of 2024 - In a
Slide 18: FY2024 Full-Year Forecasts: Visual Imaging
Remain as announced on May 14, 2024 FY2024 Full-Year Forecasts : Visual Imaging Net Sales Operating Profit ■Business environment assumptions 80.5 78.0 While demand should be firm, keeping tabs on impact of worsening Chinese economy and Hollywood strike Cinema market - Temporarily reduced cinema oper
Slide 19: FY2024 Full-Year Forecasts: Life Sciences and Photonics Solutions
Remain as announced on May 14, 2024 FY2024 Full-Year Forecasts : Life Sciences and Photonics Solutions Life Sciences Net Sales Operating Profit ■Business environment assumptions 5.2 5.0 Demand should remain stable for medical equipment and other offerings ■Net Sales: Down 0.2 billion yen YoY - Sales
Slide 20: Shareholder Returns
Shareholder Returns Dividends (yen) 149.6 Dividends payout ratio 【Dividend policy】 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 21: Agenda
I. Financial Results for Q1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 21
Slide 22: Progress with New Growth Strategies
Progress with New Growth Strategies ⚫ Step up advanced packaging business growth Progressed steadily toward contributing to performance in FY2025 through new equipment: Digital Lithography System • Did well in gaining market recognition and negotiating deals • Set up internal cross-functional projec
Slide 23: Agenda
I. Financial Results for Q1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 23
Slide 24: (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 （提供：TNO） equipment, EUV light source for UV lamps OA lamps Stepper Direct imagin
Slide 25: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY2023 FY2024 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Changes (%) Net Sales 39.2 45.7 47.5 46.9 37.5 -1.7 -4.4% Operating Profit 2.0 2.9 5.2 2.7 0.3 -1.7 -83.3% Operating Margin 5.2% 6.4% 11.0% 5.9% 0.9% -4.3P - Ordinary Profit 2.8 3.4 6.3 3.
Slide 26: Reference: Summary of 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 Changes (%) Net Sales 17.4 20.3 22.5 21.7 15.5 -1.8 -10.8% Industrial Operating profit 2.2 1.7 4.0 2.8 1.0 -1.1 -53.3% Processes Operating Margin 12.9% 8.4% 18.1% 13.1
Slide 27: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region Others 0.8% Q1_FY2023 Japan North America Asia Europe Net Sales 39.2 25.7% 27.1% 37.2% 9.2% billion yen Q1_FY2024 Japan North America Asia Europe Net Sales 37.5 19.1% 31.9% 39.4% 8.6% billion yen Others 1.0% Copyright © 2024 Ushio Inc., All Rights Reserved 27
Slide 28: 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 7.1 6.86
Slide 29: Reference: Balance Sheet
Reference: Balance Sheet Assets Liabilities/Net Assets (Billions of yen) (Billions of yen) Changes Changes 337.5 339.3 +1.7 +1.7 337.5 339.3 Cash and Bank Deposits -1.4 Notes and AP 65.6 61.8 -3.7 21.6 20.2 -2.7 Marketable Securities 37.6 38.3 +0.7 Other Current Liabilities 39.7 37.0 -2.3 Notes and
Slide 30: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 21.6 8.9 16.1 15.8 14.3 14.5 11.0 13.0 12.9 0.3 -0.3 5.3 2.2 -0.1 0.7 0.8 FY2020 FY2021 FY2022 FY2023 Q1_FY2024 -0.7 -1.1 -4.9 -2.3 -3.4 -5.5 -10.6 -13.4 -26.8 Operating Profit Sales CF Investment CF Finacial CF Free CF Copyright © 2024 Ushio Inc., All Rights R
Slide 31: 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 32: 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. Scan this code to Visit our offi
Slide 33: 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 34: Contact: Investor Relations Office
Contact: Investor Relations Office Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ir/ Copyright © 2024 Ushio Inc., All Rights Reserved 34