Slide 1: Business Results FY2020
ULVAC, Inc. Business Results FY2020 (July 2020 - June 2021) Aug. 11, 2021 Securities Code：6728 Breakthrough 2022 © 2021 ULVAC, Inc. | Confidential and Proprietary Information FY204QPSN20210811E 1
Slide 2: Disclaimer regarding forward-looking statements
Disclaimer regarding forward-looking statements Forward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared. There are several factors that directly or indirectly impact the company performance, such as the glob
Slide 3: Summary
Summary 1. FY2020 results exceeded the plan significantly (Unit: ¥1 billion) Strong performance in logic, memory-related, electronics-related production FY2020 Actual Vs.Plan equipment in China, and FPD-related production equipment due to the increased for stay-at-home demand. Orders 198.9 +18.9 Sal
Slide 4: FY2020 Business Results
FY2020 Business Results © 2021 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY204QPSN20210811E 4
Slide 5: FY2020 results significantly exceeded the plan
FY2020 results significantly exceeded the plan Orders, sales, and operating profit all exceeded the plan due to active investment in logic & memory business, electronics business based on China's domestic production policy, and FPD business in response to increased demand for panels. Gross profit ma
Slide 6: Significant increase in orders due to active investment in Semiconductors, Electronics & FPD
Significant increase in orders due to active investment in Semiconductors, Electronics &FPD Significant increase compared to both the same period last year and the plan due to the active investment in semiconductors, electronics and FPDs Significant increase due to front-loaded orders for FPD projec
Slide 7: Net sales also significantly exceeded the plan
Net sales also significantly exceeded the plan Sales significantly exceeded the plan due to the active investment in semiconductor and electronics-related businesses and continuous investment in LCDs. Semiconductor & Electronics Device Production Equipment Component Materials Net sales FPD Productio
Slide 8: Upward trend in both orders and sales
Upward trend in both orders and sales Orders increased after the first half of FY 2019 and sales increased after the first half of FY 2020. Semiconductor & Electronics Device Semiconductor & Electronics Device Component Materials Component Materials Orders received Production Equipment FPD Productio
Slide 9: Profitability improved due to strengthened manufacturing capabilities
Profitability improved due to strengthened manufacturing capabilities Improvement in both gross profit margin and operating profit margin due to strengthened manufacturing capabilities, etc. Gross Profit Margin Net Sales Gross Profit Margin 32.0 Operating Profit Margin Net Sales Operating Profit Mar
Slide 10: Improved financial position
Improved financial position Net assets increased by￥12.6 billion, and equity ratio was 57.0%. Investment securities etc. Property,plant and equipment Liabilities and Net Assets Other Long-term liabilities Assets Other current assets Notes and accounts receivable,trade Inventories Cash on hand and in
Slide 11: FY2021 Consolidated Earning Forecast
FY2021 Consolidated Earning Forecast © 2021 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY204QPSN20210811E 11
Slide 12: Upward revision of net sales and operating profit in the mid-term management plan
Upward revision of net sales and operating profit in the mid-term management plan Net sales：¥190 billion→¥210 billion, Operating Profit：¥23.5 billion→¥26.5 billion • Orders Received: Plan for significant YoY increase planned mainly in semiconductors, electronics, and FPD • Net Sales: Plan for signif
Slide 13: Sales revised upward
Sales revised upward Orders increased after FY 2019, and are expected to increase to ¥230 billion in FY 2021, mainly in semiconductors, electronics, and FPD. Net sales increased after FY 2020, and the plan for FY 2021 was revised upward from ￥190 billion to ￥210 billion. Semiconductor & Electronics
Slide 14: Profit margin planned to improve significantly by strengthening manufacturing capabilities
Profit margin planned to improve significantly by strengthening manufacturing capabilities Both gross profit margin and operating profit margin are planned to improve significantly by strengthening manufacturing capabilities, improving productivity, and increasing sales Gross Profit Margin Net Sales
Slide 15: Upward Revision of Mid-term Management Plan
Upward Revision of Mid-term Management Plan © 2021 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY204QPSN20210811E 15
Slide 16: Upward Revision of Mid-term Management Plan
Upward Revision of Mid-term Management Plan Upward Revision of Mid-term plan : FY22 sales ¥210 billion→¥235 billion, operating profit ¥340 billion→￥380 billion R&D investment increased by ¥15 billion in response to the expected expansion of investment in the semiconductor electronics and FPD-related
Slide 17: Growth by contributing to the resolution of social issues
Growth by contributing to the resolution of social issues （Semiconductor/FPD sales increased more than planned） ● Investment increased by normalization of remote activities / Promotion of EVs / Expanded use of AI / building regional supply chains Logic / Memory FY22 Net sales 28％ increased Higher ca
Slide 18: Semiconductors aiming to grow faster than market growth
Semiconductors aiming to grow faster than market growth Aggressive investment plans for both logic foundries and memory (market forecast revised upward, growth forecast until CY22) Entry into the logic metal hard mask (MHM) process expanded opportunities to enter other processes, aiming to grow fast
Slide 19: Electronics growth mainly in China, also in Japan and Taiwan
Electronics growth mainly in China, also in Japan and Taiwan Active investment in power devices, optical-devices, communication devices, etc. in Japan and China Particularly in China, investment in power devices and optical-devices for AR/VR is becoming more active, partly due to the government's po
Slide 20: Increasingly active electronics investment in China
Increasingly active electronics investment in China The nationalization policy and the local government support stimulate investment in the electronics sector, especially in coastal areas. Strengthening technical sales capabilities by dispatching sales engineers from Japan to expand the network in C
Slide 21: Active FPD investment in OLEDs and LCDs
Active FPD investment in OLEDs and LCDs Significant increase in FPD investment due to panel demand caused by stay-at-home (continuous investment in LCD), and accelerated shift to OLED In addition to mobile applications, the shift to OLEDs is expanding to IT panels for tablets, PCs, medical, automoti
Slide 22: Strengthening stable business base
Strengthening stable business base Strengthening stable business base in cooperation with our equipment business Market environment • Expansion of semiconductor, electronics, FPD and other equipment markets (especially in China) • Shifting from LCD to OLED ULVAC’s Advantage Growth strategy Component
Slide 23: Strengthening R&D capabilities to accelerate business growth
Strengthening R&D capabilities to accelerate business growth Thoroughly implement “Selection and Concentration" in R&D. In addition to the joint development of semiconductor・electronics business, R&D investment strengthened in response to the shift to larger OLED substrates, etc. R&D investment of F
Slide 24: Profit margin improved by strengthening manufacturing capabilities
Profit margin improved by strengthening manufacturing capabilities Steady improvement in gross profit margin by strengthening manufacturing capabilities Gross Profit Margin (Unit：%) Net Sales Gross Profit Margin FY20（Quarterly） Technical Design Reform Procurement Reform 300 31.4 40.0 29.5 29.9 39.0
Slide 25: Progress of Medium-term Management Plan (Summary)
Progress of Medium-term Management Plan (Summary) Mid-term Management Plan Activities Evaluation of results and progress • New entry into logic miniaturization • Aggressive investment plans for both logic and memory process Semiconductor • Increase in orders for MHM process + development of other •
Slide 26: Appendix
Appendix © 2021 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY204QPSN20210811E 26
Slide 27: Consolidated Financial Results (Quarterly)
Consolidated Financial Results (Quarterly) FY2019 FY2020 (Unit: ¥1 billion) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year YoY Orders Received 35.2 36.8 47.3 37.3 156.6 31.2 59.8 42.1 65.8 198.9 27.0% Net Sales 46.8 50.0 45.7 42.9 185.4 36.6 47.3 44.7 54.5 183.0 -1.3% Gross Profit 12.1 13.6 13.7 11.2 5
Slide 28: Sales by Segments (Quarterly)
Sales by Segments（Quarterly） Semiconductor & Electronics Device Semiconductor & Electronics Device Component Materials Component Materials Orders received Production Equipment FPD Production Equipment Industrial Equipment Others Net sales Production Equipment FPD Production Equipment Industrial Equi
Slide 29: Capital Expenditures and R&D Expenses
Capital Expenditures and R&D Expenses R&D investment (R&D capital investment + R&D expenses) of FY20～FY22 increased from ￥50 billion to ￥65 billion Actual and forecast capital expenditures Actual and forecast R&D expenses (Unit: ¥1 billion) R&D Equipment Depreciation (Unit: ¥1 billion) Building, Pro
Slide 30: ESG Topics
ESG Topics Coronavirus vaccination at Chigasaki Head Certified by the Ministry of Economy, Trade and Industry as Office/ Plant (for Chigasaki citizens) one of the " H&PM Organization Recognition Program " for the fourth consecutive year Based on the government's policy to promote vaccination against
Slide 31: ULVAC Vacuum Technology Contributes to Many Industries and Applications
ULVAC Vacuum Technology Contributes to Many Industries and Applications © 2021 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY204QPSN20210811E 31