Slide 1: Business Results FY2016 (Year Ending June 30, 2017)
【 Code No：6728】 Business i Resultsl FY2016（Year Ending June 30, 30 2017) ULVAC,Inc. 10 th Aug, 2017 FY16IRMTG20170810E Copyright ©2017,ULVAC,Inc.All rights reserved Page 1
Slide 2: Disclaimer regarding forward-looking statements
Disclaimer regarding forward-looking statements Forward-looking statements of the company in these presentations are based on information available at the time these documents were prepared. ULVAC’s customers in the flat-panel display (FPD), Solar cell, semiconductor, and electronic parts industries
Slide 3: Overview of Business Results for FY2016
Over view of Business Results for FY2016 FY16IRMTG20170810E Copyright ©2017,ULVAC,Inc.All rights reserved Page 3
Slide 4: Highlights of Business Results for FY2016
Overview of Highlights of Business Previous Mid-term New Mid-term Outlook for Results for FY2016 Management Plan Management Plan FY2017 Business Results Exceeding Original Estimations（ Record high profits for two consecutive terms） Orders received: 235.5 billion yen （+ 27% compared to original e
Slide 5: Overview of Business Results for FY2016
Overview of Business Results for Previous Mid-term New Mid-term Outlook for FY2016 Management Plan Management Plan FY2017 • Orders received: +5％ YoY due to an increase in semiconductor & electronic device production equipment and components. • Net Sales: +21% YoY due to an increase in FPD・PV product
Slide 6: Transition of profitability
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for （Transition of profitability） Management Plan Management Plan FY2017 • Continuous C ti improvement i t in i bboth th gross profit fit margin i ratio ti and d operating profit margin ratio Gross profit margin ratio Ope
Slide 7: Results of orders received and net sales by segment
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for （Results of orders received and net sales by segment） Management Plan Management Plan FY2017 • FPD・PV FPD PV production equipment: Remained at a high level with a focus on OLED and LCD for large-sized TVs. • Semicondu
Slide 8: Transition of orders received and net sales by segment
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for （Transition of orders received and net sales by segment) Management Plan Management Plan FY2017 • Strong St ttrend d for f orders d received i d and d nett sales. l Orders Received 【Unit:Bn.Yen】 Net Sales 【Unit:Bn.Yen
Slide 9: Consolidated balance sheets
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for (Consolidated balance sheets) Management Plan Management Plan FY2017 • Due to the increase of net sales sales, ”notes notes and accounts receivable, receivable trade trade“ increased by 12 12.6 6 billion yen yen, “not
Slide 10: Results of interest-bearing debt and FCF
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for （Results of Interest-bearing debt and FCF) Management Plan Management Plan FY2017 • Equity ratio improved to 40.2% 40 2% and debt-to-total debt to total assets ratio fell to 17 17.4%. 4% • Cash flow from operating act
Slide 11: FY2016 Dividend
Overview of Business Results for FY2016 Previous Mid-term New Mid-term Outlook for （FY2016 Dividend） Management Plan Management Plan FY2017 • We W setst dividend di id d while hil taking t ki into i t consideration id ti in i a comprehensive h i manner the status of our financial base, each yearʼs c
Slide 12: Previous Mid-term Management Plan Review
Previous Mid-term Management Plan Mid-term Management Plan (f (from FY2014 to t FY2016) Review FY16IRMTG20170810E Copyright ©2017,ULVAC,Inc.All rights reserved Page 12
Slide 13: Previous Mid-term Management Plan (Net sales)
Overview of Business Previous Mid-term New Mid-term Outlook for Results for FY2016 Management Plan (Net sales) Management Plan FY2017 ・ We achieved the net sales target (exceeding the planned figures for each year). 1 3 times 1.3 231.8 FPD business 16.7 Others 200.0 14.6 • Capital investment for lar
Slide 14: Previous Mid-term Plan: Operating profit (ratio)
Previous Mid-term Overview of Business Management Plan New Mid-term Outlook for Results for FY2016 (Operating profit (ratio)) Management Plan FY2017 ・Record high profits for two consecutive terms for operating profit 29.5 Efforts to strengthen the profit-making structure 27.5% • Net sales increase 2
Slide 15: Previous Mid-term Plan: Financial strength
Previous Mid-term Overview of Business Management Plan New Mid-term Outlook for Results for FY2016 (Financial strength) Management Plan FY2017 • Equity ratio significantly improved due to equity increase owing to profit, streamlined assets, etc. • Interest-bearing debt and debt-to-total assets ratio
Slide 16: New Mid-term Management Plan Overview
New Mid-term Management Plan Mid-term Management Plan (f (from FY2017 to t FY2019) Overview FY16IRMTG20170810E Copyright ©2017,ULVAC,Inc.All rights reserved Page 16
Slide 17: New Mid-term Management Plan: Accelerated initiatives toward sustainable growth
Overview of Business Previous Mid-term New Mid-term Outlook for Results for FY2016 Management Plan Management Plan FY2017 2014 2015 2016 2017 2018 2019 Previous Mid-term Mid term Management Plan New Mid Mid-term term Management Plan Stronger profitability Accelerated initiatives toward by changing a
Slide 18: Vision and Key Strategy
Overview of Business Previous Mid-term New Mid-term Outlook for Results for FY2016 Management Plan Management Plan FY2017 Highly profitable corporate management by comprehensively utilizing vacuum technology, maximizing synergy effects among equipment, materials, deposition processing, analysis &
Slide 19: Strengthening of management base
New Mid-term Overview of Business Previous Mid-term Management Plan ̶ Outlook for Results for FY2016 Management Plan Management Base FY2017 • Strengthening of management base Human resources development • Training of next generation management personnel Stronger business promotion • Cultivate and ap
Slide 20: Business Environment [FPD]: LCD for large-sized TVs
New Mid-term Overview of Business Previous Mid-term Management Plan ̶ Key Structure Outlook for Results for FY2016 Management Plan (Business Environment [FPD]) FY2017 • Forecast: LCD for large-sized TVs will drive growth to the market. Large-sized g TVs of 50 inches • Large substrates are necessary
Slide 21: Business Environment [FPD]: G10.5 investment in China and ULVAC's strengths
New Mid-term Overview of Business Previous Mid-term Management Plan ̶ Key Strategy Outlook for Results for FY2016 Management Plan (Business Environment [FPD]) FY2017 • Aggressive investment in production facilities of super large substrates (G10.5) in China due to domestic production policy and gove
Slide 22: OLED investment outlook
New Mid-term Overview of Business Previous Mid-term Management Plan ̶ Key Strategy Outlook for Results for FY2016 Management Plan (Business Environment [FPD]) FY2017 • Continuously active investment in OLED • OLED and LCD (LTPS) are expected to be the mainstream of small and medium-sized panels (dec
Slide 23: The coming of a smart society
New Mid-term Management Plan ̶ Key Strategy Overview of Business Previous Mid-term (Business Environment Outlook for Results for FY2016 Management Plan [Semiconductors and electronics]) FY2017 • Business opportunity in the trend toward a “smart society” The coming of a smart society Social Evolution
Slide 24: Technologies to create a smart society
New Mid-term Management Plan ̶ Key Strategy Overview of Business Previous Mid-term (Business Environment Outlook for Results for FY 2016 Management Plan [Semiconductors and electronics]) FY2017 ⇒Great Opportunity for ULVAC that has key technologies! Technologies to create a smart society Non-volatil
Slide 25: Improvement in power to create values
New Mid-term Overview of Business Previous Mid-term Management Plan ̶ Key Strategy Outlook for Results for FY 2016 Management Plan (Improvement in power to create values) FY2017 • Start of activities to implement market and technology strategies from the medium- and long-term viewpoints Final produc
Slide 26: FPD business: Correspond to large demand
New Mid-term Outlook for Overview of Business Previous Mid-term Results for FY 2016 Management Plan Management Plan ̶ Key Strategy FY2017 FPD business: Correspond to large demand Sustaining global leader position in LCD, especially LCD for largelarge-sized sized TVs, by further strengthening compe
Slide 27: Semiconductor and electronic devices business
New Mid-term Outlook for Overview of Business Previous Mid-term Results for FY 2016 Management Plan Management Plan ̶ Key Strategy FY2017 Semiconductor and electronic devices business: Technological innovation challenge in the trend toward a smart society Response to next-generation non-volatile m
Slide 28: Target for FY2019: Net sales by segment
New Mid-term Overview of Business Previous Mid-term Management Plan Outlook for Results for FY 2016 Management Plan (Target for FY2019) FY2017 • Stably meeting the large demand for FPD • Strong promotion of semiconductor and electronic devices business as the second pillar 250 0 250.0 FPD business 2
Slide 29: Target for FY2019: Sales and operating profit
New Mid-term Overview of Business Previous Mid-term Management Plan Outlook for Results for FY 2016 Management Plan (Target for 2019) FY2017 • Secure increase in sales and profits by stably expanding business during the period of the Mid-term Management Plan • Improvement in operating profit margin
Slide 30: Outlook for FY2017
Outlook for FY2017 FY16IRMTG20170810E Copyright ©2017,ULVAC,Inc.All rights reserved Page 30
Slide 31: Outlook for FY2017
Overview of Business Previous Mid-term New Mid-term Outlook for FY2017 Results for FY 2016 Management Plan Management Plan • Both B th orders d received i d and d nett sales l are expected t d to t increase i compared d with ith those for the previous fiscal year. • All profits items are expected to
Slide 32: Forecast of orders received by segment
Outlook for FY 2017 Overview of Business Previous Mid-term New Mid-term (Forecast of orders received Results for FY 2016 Management Plan Management Plan by segment) • We expect to receive as many orders for FPD FPD・PV PV production equipment as those for the previous fiscal year due to continuous in
Slide 33: Net sales forecast by segment
Outlook for FY 2017 Overview of Business Previous Mid-term New Mid-term Results for FY 2016 Management Plan Management Plan (Net sales forecast by segment) • Generally, G ll we expectt all ll segments t iincluding l di FPD FPD・PV PV production d ti equipment i t and semiconductor and electronics dev
Slide 34: Transition and forecast of profitability
Outlook for FY 2017 Overview of Business Previous Mid-term New Mid-term (Transition and forecast of Results for FY 2016 Management Plan Management Plan profitability) • The ratio of sales of equipment with many development elements for the future including OLED will increase, but we are planning for
Slide 35: Capital expenditures and R&D expense
Outlook for FY 2017 Overview of Business Previous Mid-term New Mid-term (Transition of capital expenditures Results for FY 2016 Management Plan Management Plan and research and development expense) • Investment in research and development (capital investment for research and development plus researc
Slide 36: FY2017 dividend
Overview of Business Previous Mid-term New Mid-term Outlook for FY 2017 Results for FY 2016 Management Plan Management Plan (FY2017 dividend) • We W setst dividend di id d while hil taking t ki into i t consideration id ti in i a comprehensive h i manner the status of our financial base, each yearʼs