Ferrotec Corporation · TSE:6890
Ferrotec — FY3/25 Earnings Presentation
44 slides from Ferrotec's earnings presentation, May 30, 2025
Slide 1: Results for the Fiscal Year Ended March 31, 2025
Results for the Fiscal Year Ended March 31, 2025 1. This fiscal year results cover period from January to December 31, 2024 of consolidated subsidiaries. 2. This presentation was prepared for the purpose of providing information regarding the company's results of operations for the fiscal year ended
Slide 2: Retroactive Adjustment of Figures Due to Change of Business Segments
Reference: Retroactive Adjustment of Figures in Previous Fiscal Years Due to the Change of Business Segments • As the Automotive-related Business segment has been added this fiscal year, we have retroactively revised the figures in some segments in the previous fiscal year. • According to the purpos
Slide 3: Executive Summary
Executive Summary • The consolidated net sales in FY3/25 were 274.4 billion yen, up 23% year on year, and operating income was 24.1 billion yen, down 3% year on year. Summary of • The sales in each of the segments of Semiconductor and Other Equipment-related, Electronic Device, and business results
Slide 4: Consolidated Financial Summary
Consolidated Financial Summary FY3/24 FY3/25 YoY Net sales: Up 23.4% year on year (Million yen) Gross profit: Up 5.0% year on year Amount Amount Amount Pct. change (%) SG&A: Up 9.5% year on year Operating income: Down 3.1% or 780 million yen year on year Net sales 222,430 274,390 51,960 23.4 In each
Slide 5: Sales and Operating Income by Segment
Sales and Operating Income by Segment FY3/24 FY3/25 YoY Net sales Pct. of Pct. of (¥ in millions) Amount Amount Difference Pct. change (%) sales (%) sales (%) Semiconductor and Other Equipment-related 130,072 58.5 165,245 60.2 35,172 27.0 Electronic Device 41,727 18.8 50,487 18.4 8,759 21.0 Automoti
Slide 6: Segment Information: Semiconductor and Other Equipment-related
Segment Information: Semiconductor and Other Equipment-related Transition of sales Overview of this segment Quartz crucibles EB-gun • The demand in the U.S. was on a recovery trend as a whole, but the performance of Wafer processing and recycling Vacuum feedthroughs and metal processing some product
Slide 7: Segment Information: Electronic Device
Segment Information: Electronic Device Transition of sales Sensor Ferrofluid, others Overview of this segment Power semiconductor substrates Thermo-electric module • The sales of thermo-electric modules kept growing, as products for AI contributed. • The sales of power semiconductor substrates kept
Slide 8: Segment Information: Automotive-related Business
Segment Information: Automotive-related Business Transition of sales Overview of this segment Sensor Power semiconductor substrate Thermo-electric module • The sales of power semiconductor substrates grew, thanks to the growth of sales of AMB substrates. • The sales of thermo-electric modules grew,
Slide 9: Consolidated Balance Sheet -Assets-
Consolidated Balance Sheet -Assets- FY3/24 FY3/25 [Major factors for increase in current assets] (Million yen) Difference Year-end Year-end • Notes and accounts receivable: Up 30.7 billion yen Current assets 248,408 295,367 46,959 • Inventories: Up 15.2 billion yen Accounts receivable and inventory
Slide 10: Consolidated Balance Sheet -Liabilities and Net Assets-
Consolidated Balance Sheet -Liabilities and Net Assets- FY3/24 FY3/25 [Major factors for [Main factors changes in of increase in current currentand fixed liabilities] assets] (Million yen) Difference Year-end Year-end Figures in parentheses are year-on-year changes. Current assets 122,148 151,750 29
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow (Million yen) FY3/24 FY3/25 [Operating cash flow] Cash flow from operating activities 28,720 26,066 • Depreciation: 23.7 billion yen, up 7.3 billion yen year on year Income before income tax 26,146 25,046 The augmentation of depreciation in FTMM in Malaysia and the new Depreci
Slide 12: FY3/26 Full-year Business Forecasts
FY3/26 Full-year Business Forecasts 12
Slide 13: FY3/26 Full-year Business Forecasts
FY3/26 Full-year Business Forecasts (Million yen) FY3/25 FY3/26 (Plan) YoY (%) Details and assumptions of the plan The sales of semiconductor-related VF and ceramics will keep growing. For quartz, silicon parts, etc., it is assumed that the inventory of clients will keep affecting Net sales 274,390
Slide 14: Segment Information: Semiconductor and Other Equipment-related
Segment Information: Semiconductor and Other Equipment-related Transition of sales Overview of this segment Quartz crucibles EB-gun • The sales of vacuum feedthroughs, metal processing, ceramics, and equipment Wafer processing and recycling Vacuum feedthroughs and metal processing parts cleaning wil
Slide 15: Segment Information: Electronic Device
Segment Information: Electronic Device Transition of sales Sensor Ferrofluid, others Overview of this segment Power semiconductor substrates Thermo-electric module • The sales of thermo-electric modules for AI will keep increasing, contributing to overall business performance. • The sales of sensors
Slide 16: Segment Information: Automotive-related Business
Segment Information: Automotive-related Business Transition of sales Overview of this segment Sensor Power semiconductor substrate Thermo-electric module • The number of business inquiries about power semiconductor substrates is healthy, so sales are expected to grow. • The sales of sensors are expe
Slide 17: Update of Medium-Term Management Plan FY3/26-FY3/28
Update of Medium-Term Management Plan FY3/26-FY3/28 17
Slide 18: In 2025, the semiconductor market will grow, but the WFE market will be almost unchanged
In 2025, the semiconductor market will grow, but the WFE market will be almost unchanged. • The scale of the WFE market will be unchanged, due to the decline in export to China, etc. The short-term outlook is unclear due to the U.S. policy, but the market is expected to grow in the medium/long term.
Slide 19: Medium-Term Management Plan-Review of FY3/25
Medium-Term Management Plan-Review of FY3/25 • Consolidated net sales: 274.4 billion yen, up 23.4% year on year; operating income: 24.1 billion yen, down 3.1% year on year The sales in each of the segments of Semiconductor and Other Equipment-related, Electronic Device, and Business growth Automotiv
Slide 20: Progress of initiatives for business administration conscious of capital cost and share price
Progress of initiatives for realizing business administration conscious of capital cost and share price Classification Item Progress Profit margin Digitization, automation, AI adoption, and visualization of production Automation of inspection and warehousing processes, and adoption of sites AI for i
Slide 21: Mid-Term Management Plan - 26/3～28/3
Mid-Term Management Plan - 26/3～28/3 • Expanding the Semiconductor and Other Equipment-related, Electronic Device, and Automotive-related businesses, and pursue growth. Business growth • While enhancing the manufacturing outside China, such as in Malaysia, to meet the needs for manufacturing outside
Slide 22: Progress of Factory Establishment: Factories in Kulim, Malaysia
Progress of Factory Establishment: Factories in Kulim, Malaysia • The first factory in Kulim, Malaysia was completed in Jan. 2024. It was recognized by clients steadily, and we earned monthly profit in Q1 of 2025. Its profitability is expected to be improved through the increase in output and stream
Slide 23: Progress of Factory Establishment: Power semiconductor substrates
Progress of Factory Establishment: Power semiconductor substrates • A factory for manufacturing power semiconductor substrates in Neijiang, China was completed in July 2023, and small-lot manufacturing was started in Q4 of 2023. • At the Johor Factory in Malaysia, equipment installation began in Q4
Slide 24: Shareholder Return Policy
Shareholder Return Policy • [Shareholder return policy] Revision to the policy in March 19 In order to enrich shareholder return, we have adopted dividend on equity ratio (DOE) and set its lower limit at 3.5%. We aim to raise the dividend level by increasing revenues sustainably. While considering t
Slide 25: Cash Generation Through the Sale of Assets: Fortification of B/S
Cash Generation Through the Sale of Assets: Fortification of B/S • We plan to invest a total of 140 billion yen in equipment in 3 years. • We plan to sell group assets (such as the shares in subsidiaries) worth over 50 billion yen from FY3/26 to FY3/28. • We plan to allocate proceeds to capital inve
Slide 26: KPIs of the Medium-term Management Plan
KPIs of the Medium-term Management Plan We have revised the medium-term plan, while considering the recent sluggish growth of semiconductor-related demand, investment, etc. (Million yen) FY3/25 (actual) FY3/26 (forecast) FY3/27 (plan) FY3/28 (plan) Net sales 274,390 285,000 340,000 400,000 Operating
Slide 27: Strategy for Each Priority Product
Strategy for Each Priority Product 27
Slide 28: Strategy for Each Product: Quartz
Strategy for Each Product: Quartz Variation in net sales Summary • Demand for spares as consumables is stagnant due to the inventory 51,000 of users. We tried to increase sales by meeting the demand for fire- processed products, but profitability declined. • The first factory in Kulim, Malaysia made
Slide 29: Strategy for Each Product: Ceramics
Strategy for Each Product: Ceramics Variation in net sales Summary 45,000 • Steady demand and the growth of the Chinese market contributed, and sales grew. 39,142 41,000 • The first factory in Kulim, Malaysia made a good start, earning profit. 33,155 • Streamlining progressed, thanks to digitalizati
Slide 30: Strategy for Each Product: CVD-SiC
Strategy for Each Product: CVD-SiC Variation in net sales Summary • We increased the production capacity of the Okayama Factory to 16,000 meet demand, and sales growth continued. • The Changshan Factory is under development. 12,500 8,192 8,162 Outlook for medium/long-term performance 6,837 • The dem
Slide 31: Strategy for Each Product: Silicone Parts
Strategy for Each Product: Silicone Parts Variation in net sales Summary • In 2024, sales dropped year on year, due to the significant effect of inventory of users. 20,000 • Streamlining progressed, thanks to digitalization and automation. 17,000 14,604 13,687 12,968 Outlook for medium/long-term per
Slide 32: Strategy for Each Product: Thermo-electric Modules
Strategy for Each Product: Thermo-electric Modules Variation in net sales Summary • AI-related demand contributed, and sales kept growing. 50,700 • Profitability improved, thanks to the use of AI and automation for 44,500 inspection, automated warehousing, etc. 5,700 36,293 5,500 33,638 5,112 Outloo
Slide 33: Strategy for Each Product: Power Semiconductor Substrates
Strategy for Each Product: Power Semiconductor Substrates Variation in net sales Summary 63,000 • Although the demand in the power semiconductor market and sales growth rate are on a plateau, our market share will grow. 50,500 • We strove to improve profitability by manufacturing substrate materials
Slide 34: Long-term goals: net sales of 500 billion yen and net income of 50 billion yen
Long-term goals are net sales of 500 billion yen and net income of 50 billion yen. We aim to achieve the long-term goals, while improving cash flows, ROE, and ROIC. Net sales of 500 billion yen and net income of 50 billion yen in FY2030 Net sales Net sales forecast for To 500 billion yen! the curren
Slide 35: Appendix
Ferro lec Ferrotec Holdings Corporation Appendix 35
Slide 36: Sales by Product for FY3/25 (First and Second Half)
Sales by Product for FY3/25 (First and Second Half) (Million yen) FY3/24 Results FY3/25 Results Full-year 1st half 2nd half Full-year YoY 1st half YoY 2nd half YoY Semiconductor and Other Equipment- related 130,072 60,257 69,814 165,245 27.0% 84,042 39.5% 81,202 16.3% Vacuum feedthroughs 25,242 11,7
Slide 37: Business Forecasts of Each Segment/Product for FY3/26
Business Forecasts of Each Segment/Product for FY3/26 (First and Second Half) (Million yen) FY3/25 Results FY3/26 Results Full-year 1st half 2nd half Full-year YoY 1st half YoY 2nd half YoY Semiconductor and Other Equipment- related 165,245 84,042 81,202 177,402 7.4% 84,210 0.2% 93,192 14.8% Vacuum
Slide 38: Situation of Major Factory Construction and Production Capacity Improvement
Situation of Major Factory Construction and Production Capacity Improvement • We are expanding production capacity by gradually building new factories and adding floor space. The following are our main plans at present. Assumed Current production production Business Location 2025 2026 2027 2028 2029
Slide 39: Construction of a Factory in Malaysia
Construction of a Factory in Malaysia • To meet the growing demand, we decided to construct the second factory in northern Malaysia. • We aim to meet the growing needs for manufacturing outside China due to the rise in geopolitical risk. Details of the new factory in Malaysia Investment amount 226.4
Slide 40: Our Lineup of Semiconductor and Other Equipment-related Products
Our Lineup of Semiconductor and Other Equipment-related Products Jigs and consumables for semiconductor manufacturing equipment (our mainstay material products) Quartz Silicon parts Ceramics CVD-SiC Our strengths: Not only capital investment-linked products (vacuum feedthroughs), but also a lineup o
Slide 41: Our Lineup of Electronic Device Products
Our Lineup of Electronic Device Products Thermo-electric modules Insulating substrates for power Ferrofluid semiconductors* As temperature adjustment devices, thermo- electric modules are increasingly used in the fields of automobiles, semiconductor Used in a wider range of fields, including automob
Slide 42: Products in the Automotive Segment
Products in the Automotive Segment Thermo-electric module [Main products] Thermo-electric module application Laser radar Laser beams are [Main products] irradiated toward objects Power semiconductor substrate application Laser radar to measure the distance Power semiconductor and identify characteri
Slide 43: IR News Mail Delivery
IR News Mail Delivery Our IR news is posted on the web portal "IRSTREET" in Japanese and English, and delivered by e-mail. Please check the link below. ■Sign up in Japanese https://ircms.irstreet.com/member_registration/n ew_u.php?site=1&language=1&brand_selection =0®ist_brand_select[]=85 ■Sign u
Slide 44: Notes on Forward-looking Statements and Disclaimer
Notes on Forward-looking Statements and Disclaimer • The forward-looking statements in this document are based on information available as of the date of publication of this document and assumptions concerning uncertain factors affecting future results. • Actual results may differ materially from th