Slide 1: First Quarter FY2023 Financial Results
First Quarter FY2023 Financial Results Ushio Inc. August 7, 2023 * All figures in the material have been rounded down to the nearest billion yen. * FY2023 starts from April 1st, 2023 through March 31st, 2024. Copyright © 2023 Ushio Inc. All rights reserved Copyright © 2023 Ushio Inc. All rights rese
Slide 2: Q1 FY2023 Overview
Q1 FY2023 Overview 1. Q1 FY2023 lower revenues and earnings as planned 2. FY2023 Forecast remain as announced on May 11, 2023 3. Reporting segments changed as of Q1 FY2023 Copyright © 2023 Ushio Inc. All rights reserved 2
Slide 3: Agenda
Agenda I. Financial Results for Q1 FY2023 II. Full-Year Forecast for FY2023 III. Supplementary Information Copyright © 2023 Ushio Inc. All rights reserved 3
Slide 4: Financial Results for Q1 FY2023
Financial Results for Q1 FY2023 YoY Comparison: -0.4 billion yen (-1.1%） Net Sales - Industrial Processed Business: Sales decreased due to semiconductor market condition and FPD market deteriorating 39.2 billion yen - Visual Imaging Business: Sales increased on progress in supply chain management(SC
Slide 5: Summary of Financial Results
Summary of Financial Results YoY comparison Q1 FY2022 Q1 FY2023 （Billions of yen) Changes ％ Net Sales 39.7 39.2 -0.4 (1.1)％ Operating Profit*1 4.4 2.0 -2.4 (54.1)％ Operating Margin*1 11.3% 5.2% (6.0)P ‐ EBITDA*2 6.3 3.9 -2.3 (37.4)% EBITDA Margin 15.9% 10.1% (5.8)P ‐ Ordinary Profit 6.2 2.8 -3.4 (55
Slide 6: YoY Variation Analysis of EBITDA for Q1 FY2023
YoY Variation Analysis of EBITDA for Q1 FY2023 (billions of yen) 6.3 ＋0.2 -0.9 -0.3 FOREX -0.0 -0.1 -0.4 Industrial Processes Visual -0.9 Life (Sales change Imaging Photonics Sciences Strategic -0.0 impacts) (Sales change (Sales change Solutions Investments 3.9 impacts) (Sales change impacts) impact
Slide 7: Reference: Reporting Segment Changes
Reference: Reporting Segment Changes Old Business New Business Segments Segments Industrial Processes Most of Optical Light Source Business Equipment Business is Light Source into Industrial Processes Business is divided into 4 segments Visual Imaging Optical Equipment Most of Imaging Business Equip
Slide 8: Q1 FY2023 Financial Results by Business Segments
Q1 FY2023 Financial Results by Business Segments YoY Comparison Q1 FY2022 Q1 FY2023 (Billions of yen) Changes (%) Net Sales 19.8 17.4 -2.3 (12.1)％ Industrial Processes Operating Profit 3.9 2.2 -1.6 (42.9)％ (Operating Margin) (19.8%) (12.9%) ((7.0)P) Net Sales 15.5 17.6 +2.0 +13.2％ Visual Imaging Ope
Slide 9: Q1 FY2023: Industrial Processes Results
Q1 FY2023: Industrial Processes Results Q1 Q1 YoY Comparison FY2022 FY2023 Changes (%) ■Net Sales ： Down 2.3 billion yen YoY (Billion of yen) Net Sales 19.8 17.4 -2.3 (12.1)% - UV equipment sales declined YoY owing to final demand slowdown and H2 timing of acceptance inspections - Sales of UV lamps
Slide 10: Q1 FY2023: Visual Imaging Results
Q1 FY2023: Visual Imaging Results Q1 Q1 YoY Comparison FY2022 FY2023 Changes (%) ■Net Sales ： Up 2.0 billion yen YoY (Billion of yen) - Sales increase benefited from progress in SCM reform, Net Sales 15.5 17.6 +2.0 +13.2％ easing parts shortages, enabling Ushio to capitalize on replacement demand and
Slide 11: Q1 FY2023: Life Sciences and Photonics Solutions Results
Q1 FY2023: Life Sciences and Photonics Solutions Results Life Sciences Q1 Q1 YoY Comparison (Billion of yen) FY2022 FY2023 Changes (%) ■Net Sales：Down 0.0 billion yen YoY - No major business changes Net Sales 1.4 1.3 -0.0 (4.0)% Operating Profit -0.6 -0.4 +0.2 － ■Operating Profit：Up 0.2 billion yen
Slide 12: Agenda
I. Financial Results for Q1 FY2023 II. Full-Year Forecast for FY2023 III. Supplementary Information Copyright © 2023 Ushio Inc. All rights reserved 12
Slide 13: Summary of FY2023 Full-Year Forecast
Summary of FY2023 Full-Year Forecast ■Key points about forecasts ■Full-Year Forecast: - Previous forecasts unchanged Remain as announced on May 11, 2023 - Expand strategic investments in R&D, human resources, ・Net Sales ： 188.0 billion yen and other areas - Anticipating results turnaround in H2 Envi
Slide 14: FY2023 Full-Year Forecast
FY2023 Full-Year Forecast YoY Comparison Q1 FY2022 Result FY2023 Forecast progression (Billions of yen) Changes (%) rate Net Sales 175.0 188.0 +12.9 +7.4% 20.9% Operating Profit*1 15.8 12.5 -3.3 (21.2)% 16.4% Operating Margin*1 9.1％ 6.6% (2.4)P - - EBITDA*2 23.6 21.0 -2.6 (11.2)% 18.9% EBITDA Margin
Slide 15: FY2023 YoY Variation Analysis of EBITDA
FY2023 YoY Variation Analysis of EBITDA ＋2.5 ＋0.3 -2.6 ＋4.4 PHS -3.3 sales LS change Strategic 23.6 -1.1 sales impacts investments -2.7 change （R&D) impacts Strategic -0.1 21.0 IP VI investments sales change sales change (Human impacts impacts resources) Other Impact of strategic xenon gas investme
Slide 16: FY2023 Financial Forecasts by Sub-segments
FY2023 Financial Forecasts by Sub-segments FY2022 FY2023 YoY Comparison (Billions of yen) Results（Reference*1） Forecast*2 Changes (%) Net Sales 88.1 86.0 -2.1 (2.4)％ Industrial Processes Operating Profit 17.2 11.0 -6.2 (36.4)％ (Operating Margin) 19.6% 12.8% (6.8)P Net Sales 67.7 83.5 +15.7 +23.2％ Vi
Slide 17: FY2023 Full-Year Forecast: Industrial Processes Business
FY2023 Full-Year Forecast : Industrial Processes Business YoY Comparison ■Business Climate Outlook FY2022 FY2023 Q1 Results Forecast Progression Whole business seemed to remain unclear confidence （Reference*） Changes (%) rate (Billions of yen) - In semiconductor market, capacity utilization adjustme
Slide 18: FY2023 Main Products of Industrial Processes Business
FY2023 Main Products of Industrial Processes Business Product Latest Status Sales Transition • While demand in advanced IC package substrates market should expand over medium through long terms, investment plan postponements predominate Large Field Stepper and we will watch the market closely for Cu
Slide 19: FY2023 Full-Year Forecast: Visual Imaging Business
FY2023 Full-Year Forecast : Visual Imaging Business FY2022 YoY Comparison Q1 Business environment assumptions FY2023 Results Progression Forecast Changes (%) rate Related markets to recover from pandemic, with parts (Billions of yen) （Reference*） shortages easing - Robust demand for digital cinema p
Slide 20: FY2023 Main Markets of Visual Imaging Business
FY2023 Main Markets of Visual Imaging Business Product Latest Status Projector Sales Transition （USD base） • Cinema operations worldwide including China recovered to the level before COVID-19 pandemic • After 2023, we expect to capitalize on the demand for Cinema Market DCP replacement • Parts short
Slide 21: FY2023 Full-Year Forecast: Life Sciences/Photonics Solution Business
FY2023 Full-Year Forecast : Life Sciences/ Photonics Solution Business Life Sciences Business Comment on Q1 progression rate FY2022 YoY Comparison Q1 - Strategic investment and results progressing according to plan FY2023 Results Progression (Billions of yen) （Reference*） Forecast Changes (%) rate B
Slide 22: Shareholder Returns
Shareholder Returns Dividends (yen) 55.2 56.3 【Dividend policy】 Dividends payout ratio 47.2 47.8 43.2 Generating stable returns 35.5 30.3 30.2 50 yen for FY2023 27.8 50 50 50 50 Dividends (continuation from FY2022) per Share 24 26 26 26 26 26 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY23 pl
Slide 23: Agenda
I. Financial Results for Q1 FY2023 II. Full-Year Forecast for FY2023 III. Supplementary Information Copyright © 2023 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 UV Equipment, Curing （提供：TNO） equipment, EUV light source for mast inspection, Maintenance UV lamps OA lamps L
Slide 25: Reference: Reporting Segment Changes (including subsegments)
Reference：Reporting Segment Changes (including subsegments) Old business segments New business segments Reporting Subsegments Subsegments Reporting segments Segments ●OA ●UV lamps Halogen lamps ●Illumination Light Source ●OA lamps Business ●Others ●Optical equipment lamps Industrial Processes ●UV la
Slide 26: Reference: Reporting Segment Changes (including subsegments)
Reference：Reporting Segment Changes (including subsegments) Old business segments New business segments Reporting Subsegments Subsegments Reporting segments Segments ●OA ●UV lamps Halogen lamps ●Illumination Light Source ●OA lamps Business ●Others ●Optical equipment lamps Industrial Processes ●UV la
Slide 27: Industrial Process: Semiconductor process and Ushio's involvement
Industrial Process: Semiconductor process and Ushio’s involvement Front-end process Back-end process Mounting process High Technology Mask inspection EUV light source Steppers (projection lithography) Lithography equipment for cutting- High earnings model driven by edge IC package substrates World s
Slide 28: EUV Light Source for Mask Inspection
EUV Light Source for Mask Inspection Mask Inspection equipment EUV light source for next- Sales of light manufacturer/ Semiconductor device generation semiconductor source Research & development manufacturers mass-production process Maintenance institution Development, Production, Sales Increase EUV
Slide 29: Sales Expansion of Exposure Equipment for Advanced IC Package Substrates
Sales Expansion of Exposure Equipment for Advanced IC Package Substrates Advanced & Next generation package demand expansion With IoT evolution, demand increased for servers for data centers processing high capacity and high speed data processing Large Field Stepper（UX-5） Equipment Package substrate
Slide 30: Direct Imaging (DI) Lithography Equipment
Direct Imaging (DI) Lithography Equipment Print-wired board demand increasing As 5G progressed as application innovation Innovation of each application and demand increasing Data Center Direct Imaging Print-wired board Base Station Lithograph Equipment Sales Equipment Package substrate Board Mountin
Slide 31: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY2022 FY2023 YoY Comparison (Billions of yen) １Q ２Q ３Q ４Q １Q Changes (%) Net Sales 39.7 48.2 40.4 46.6 39.2 -0.4 (1.1)％ Operating Profit*1 4.4 5.6 3.4 2.3 2.0 -2.4 (54.1)％ Operating Margin*1 11.3% 11.7% 8.5% 5.0% 5.2% (6.0)P ‐ EBITDA*2 6.3 7.6 5.3 4
Slide 32: Reference: Summary of Quarterly Financial Results by Business Segments
Reference: Summary of Quarterly Financial Results by Business Segments FY2022 FY2023 YoY Comparison (Billions of yen) Q1 Q1 Changes (%) Net Sales 19.8 17.4 -2.3 (12.1)％ Industrial Operating profit 3.9 2.2 -1.6 (42.9)％ Processes Operating Margin 19.8% 12.9% (7.0)P ‐ Net Sales 15.5 17.6 +2.0 +13.2％ Vi
Slide 33: Cash Allocation Strategy
Cash Allocation Strategy Strategy from FY2023 through FY2025: Endeavor to enhance capital efficiency through in-house stock investment and major growth investment allocations Cash generation Cash inflows Cash outflows • Operating cash flow under medium-term management plan: ¥60 billion over three ye
Slide 34: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region Others 2.0% Q1_FY2022 Japan North America Asia Europe Net Sales 39.7 22.0% 26.1% 42.6% 7.3% billion yen Q1_FY2023 Japan North America Asia Europe Net Sales 39.2 25.7% 27.1% 37.2% 9.2% billion yen Others 0.8% Copyright © 2023 Ushio Inc. All rights reserved 34
Slide 35: 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 11.0 7.1 7.4 6.4 6.5 8.9 14.0 8.5 6.1 8.2 7.9 7.6 11.4 7.1 7.3 6.9 10.1 10.5 6.7 6.8 6.9 10.1 1
Slide 36: Reference: Balance Sheet
Reference: Balance Sheet Asset Liabilities/Total Net Equity Changes (Billion of yen) Changes (Billion of yen) +19.3 +19.3 323.6 343.0 323.6 343.0 -1.3 Notes and AP -4.7 Cash and Bank Deposits 24.8 59.4 26.2 +12.5 Other Current Liabilities 64.2 48.7 -0.4 Marketable Securities 36.2 38.0 +3.0 Long-term
Slide 37: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 21.6 20 15.8 14.5 13 16.1 11.5 11 8.5 8.8 6.6 5.5 4.3 2.7 -0.3 1.1 0.7 0.8 -1.1 FY2018 FY2019 FY2020 -0.7 FY2021 FY2022 -5 -3.9 -3.4 -5.5 -10.6 -20.3 -26.8 -30 Operating Profit Sales CF Investment CF Finacial CF Free CF Copyright © 2023 Ushio Inc. All rights re
Slide 38: Glossary
Glossary AI Artificial Intelligence APMI Actinic Patterned Mask Defect Inspection BGA Ball Grid Array CoO Cost of Ownership CPU Central Processing Unite DCP Digital Cinema Projector DI Direct Imaging EUV Extreme Ultraviolet Radiation FPD Flat Panel Display GPU Graphic Processing Unit IoT Internet of
Slide 39: Renewed IR Website/IR Mail Distribution Feature
Renewed IR Website/ IR Mail Distribution Feature ➢ Our official website "Investor Relations Information" has been renewed. We have reorganized the contents to make it more accessible and to let you know about Ushio's present to future. ➢ We added new feature “IR E-mail distribution” to send our IR i
Slide 40: 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 41: Contact: Investor Relations Section
Contact: Investor Relations Section Corporate Communication Department Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ Copyright © 2023 Ushio Inc. All rights reserved 41