Slide 1: ULVAC, Inc. Breakthrough 2022
ULVAC, Inc. (July 2021 - Jun 2022) Aug.10, 2022 Securities code:6728 Breakthrough 2022 © 2022 ULVAC, Inc. | Confidential and Proprietary Information FY211QPSN20220215 1 E
Slide 2: Disclaimer regarding forward-looking statements
Disclaimer regarding forward-looking statements The forward-looking statements, including the earnings forecasts shown in this document are based on information currently available to the Company and on certain Premises deemed to be reasonable. As such, they do not constitute guarantees by the Compa
Slide 3: Summary (1)
Summary (1) FY21 Results: Orders, sales, and operating profit exceeded both the previous fiscal year and the plan Orders Received ¥270.1 billion（+36%YoY） • Semiconductors and Electronics: Active investment in logic, memory, power devices, and various electronic devices • FPDs: Active investment in L
Slide 4: Summary (2)
Summary (2) 2. Mid-Term Management Plan: Growth achieved mainly in semiconductors and electronics Profitability improved due to strengthened manufacturing capabilities, despite the impact of longer delivery times for parts and materials 3. FY22 Plan : ¥270 billion for Orders, ¥250 billion for Net Sa
Slide 5: Mid-Term Management Plan Performance Trends and FY22 Plan
Mid-Term Management Plan Performance Trends and FY22 Plan ¥241.3 billion (+¥58.2 billion YoY) for net sales and ¥30.1 billion (+¥12.9 billion YoY) for operating profit in FY21, significantly higher than the previous fiscal year. Net Sales for FY22 are planned to be ¥250.0 billion (significant growth
Slide 6: Breakthrough
© 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215 6 E
Slide 7: 1. Overview of FY2021 Business Results
1. Overview of FY2021 Business Results Orders Received: +36% YoY and +10% vs. Plan mainly due to active investment in semiconductors, electronics and FPDs. Net Sales: +32% YoY and +15% vs. Plan ; Operating Profit: +75% YoY and +13% vs. Plan Operating Profit Margin: Improved to 12.5%（+3.1pt YoY ） FY2
Slide 8: 2. Trends in Net Sales, Operating Profit, Gross Profit Margin Annual
2. Trends in Net Sales Operating Profit Gross Profit Margin Annual Net Sales: +32% YoY due to active investment in semiconductors and electronics Gross profit margin improved by 3.3pt from FY19 to 30.6%, the highest level since listed, mainly due to the improved profit margins from strengthening man
Slide 9: 3. Significant Increase Both in Orders and Sales due to Active Investment
3. Significant Increase Both in Orders and Sales due to Active Investment Both orders received and net sales increased significantly from FY19 due to active investment in semiconductors, electronics and FPDs. Orders received and net sales increased in all segments from FY19 Orders received (Unit: ¥1
Slide 10: 4. Factors for Increase in Orders Received
4. Factors for Increase in Orders Received Significant increase by +¥71.2 billion YoY and +¥25.1 billion vs.Plan due to active investment in semiconductors, electronics and FPDs All segments outperformed compared to both the previous fiscal year and the plan Orders received (Unit: ¥1 billion) Semico
Slide 11: 5. Factors for Increase in Net Sales
5. Factors for Increase in Net Sales Significant increase by +¥58.2 billion YoY and +¥31.3 billion vs.Plan due to active investment in semiconductors, electronics and FPDs Net Sale (Unit: ¥1 billion) Semiconductor & Electronics Components Materials Device Production Equipment FPDs Production Equipme
Slide 12: Breakthrough
© 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215 12 E
Slide 13: 1. Semiconductors, Electronics and FPDs: Continued Investment Expansion
1. Semiconductors, Electronics and FPDs: Continued Investment Expansion for Medium- to long Term In the environment of “Smart society/ Digitalization + Metaverse” x “Green energy” , Semiconductors, electronic devices, and displays will grow by "Investment in technological innovation" x "Investment i
Slide 14: 2-(1) Semiconductor: Growth through Entry into MHM and Other Processes
2-(1) Semiconductor: Growth through Entry into MHM and Other Processes Logic: Success in entering into Metal Hard Mask (MHM) process required for EUV introduction (2018) ⇒Achieved growth outpacing the market since being adopted as de facto standard for 5 nm and below More opportunities of entering i
Slide 15: 2-(2) Semiconductors: Achieving Growth Outpacing the Market
2-(2) Semiconductors: Achieving Growth Outpacing the Market Logic : Growth (3.9x vs.FY19) is planned 中期経営計画を上方修正:22年度売上高 in FY22, exceeding the market performance(2.1x 2,100億円→2,350億円、営業利益 340億円→390億円vs.CY19) due to the entry of MHM process and other processes as well as customer expansion. 半導体・電子・F
Slide 16: 3-(1) Electronics: Continued Investment Expansion in Electronic Devices
3-(1) Electronics: Continued Investment Expansion in the Field of Electronic Devices Main Devices End Uses Investment Trends • EV Automotive Devices Active investment due to the shift to green energy and EVs IGBT Medium- to long-term aggressive investment plans by • Invertor motor Power Device SiC •
Slide 17: 3-(2) Electronics: Power Devices Growing Mainly in Japan and China
3-(2) Electronics: Power Devices Growing Mainly in Japan and China Investment in power devices and optical devices increased mainly in Japan and China Particularly in China, investment in power devices and electronic devices increased due to the domestic production policy Investment & Order Trends (
Slide 18: 3-(3) Power Device Maintains High Level Growth
3-(3)Power Device Maintains High Level Growth High level growth in power devices continues mainly due to the shift to green energy and EVs. （ FY22 Orders: 2.8x vs. FY19） IGBT SiC Si-MOSFET Japan Japan China • Investment in 8inch production • Investment in 8inch started • Domestic production policy a
Slide 19: 3-(4) Accelerating Growth in China's Power and Electronic Device Markets
3-(4) Accelerating Growth in China's Power and Electronic Device Markets Demand for Electronic Devices increased, Domestic Production Policy in China Breaking away from import dependence ・Stabilization of supply chain ・Power device ・Improving trade balance ・Various electronic devices Local Governmen
Slide 20: 4-(1) FPDs: Driven by OLED and R-to-R Evaporation Equipment
4-(1) FPDs: Driven by OLED and R-to-R Evaporation Equipment for EV Batteries Active investment in IT panels (tablets, PCs, automotive, medical, games, etc.): Shift from LCD to OLED Development of large substrate OLED investment for mass production ⇒ Mass production investment expected in FY22~23 Con
Slide 21: 4-(2) FPDs: Sputtering Equipment for Large Substrate OLED
4-(2) FPDs: Sputtering Equipment for Large Substrate OLED Full-scale investment for mass production of G8.5 OLED for IT panels (FY22-FY23): Sputtering equipment also needs to be compatible with G8.5 In addition to conventional vertical sputtering equipment, multi chamber sputtering equipment for G8.
Slide 22: 4-(3) FPDs: Battery Business
4-(3) FPDs: Battery Business Developing Roll-to-Roll evaporation deposition equipment to realize smaller sized, larger-capacity, and safer EV batteries (1) Current Collector: To realize safety improvement and weight reduction, Investment for replacing to metal foil with double-sided vapor deposition
Slide 23: 5. Stable Business Foundation Also Strong
5. Stable Business Foundation Also Strong Components Materials Customer Support Active Investment in Semiconductor, Increasing Orders Received for Higher Equipment Operating Rate Electronics and EV-related Semiconductors Further Expansion of Orders Net Sales 1.1x vs.FY19 1.2x Net Sales 1.5x vs.FY19
Slide 24: 6. ULVAC-PHI: Increased Market Share with New XPS Model
6. ULVAC-PHI: Increased Market Share with New Model of X-ray Photoelectron Spectrometer 2021:New model ( VersaProbe4) released ⇒ Global market share increased from over 30% to nearly 50% Net Sales 1.3x vs. FY19 FY19 FY21 FY22plan Jul. 2022: New multifunctional model released • Conventional 4 models
Slide 25: 7-(1) Improving profit margin by strengthening manufacturing capabilities
7-(1) Improving profit margin by strengthening manufacturing capabilities Despite the impact of longer delivery lead times and higher price, gross profit margin improved steadily due to strengthening manufacturing capabilities. Strengthening manufacturing capabilities, including overseas plants, by
Slide 26: 7-(2) Strengthening Manufacturing Capabilities Through Global Cooperation
7-(2) Strengthening Manufacturing Capabilities Through Global Cooperation Accelerating the pace of manufacturing capabilities strengthening Contributing to the stable procurement and production 韓国 Strengthening manufacturing capabilities, including overseas Integrating and collaborating the global s
Slide 27: 8. Progress in R&D Investment
8. Progress in R&D Investment Although some R&D investment in FY21 has been postponed to FY22 due to the impact of longer delivery times for parts and materials, we will continue to expand R&D investment in growth areas ⇒Investment in R&D for growth is expected to increase in the next mid-term busin
Slide 28: 9. Shareholder Return
9. Shareholder Return Shareholder return is one of our most important policies. We are aiming to return profits to shareholders by increasing dividends through further growth (dividends increased steadily, targeting a payout ratio of 30% or above from FY21) We are involved in an industry with fluctu
Slide 29: 10. Progress of Mid-term Management Plan
10. Progress of Mid-term Management Plan Basic Policy Key Strategies • Investment in Development for Growth 1. Strengthening the Growing 3. Enhancing manufacturing (Selection and Concentration) Business capabilities • Profit-oriented management through structural 2. Strengthening Research 4. Enhanci
Slide 30: 11. Progress of Mid-term Management Plan Initiatives
11. Progress of Mid-term Management Plan Initiatives Mid-term Management Plan Initiatives Outcomes and Assessment • New entry into logic Aggressive investment plans for both logic and memory miniaturization process ⇒Exceeded sales plan Semiconductors • Memory investment resumed, Growing by entering
Slide 31: 12. Assumptions and Measures in Business Forecast
12. Assumptions and Measures to in Business Forecast Assumptions for FY2022 Earnings Forecast Forecasts were prepared considering the following possible risks. In case of sudden changes in the environment, we will promptly consider countermeasures and revise plans, as necessary. Risks assumed by the
Slide 32: 13. FY2022 Earnings Forecast
13. FY2022 Earnings Forecast Orders: Same level as the previous fiscal year due to active investment in semiconductors and electronics, etc. Net Sales: ¥250 billion, +4% YoY; Operating Profit:¥34.5 billion, +15% YoY Operating Profit Margin: Improved to 13.8%（+1.3pt YoY） Net Sales and Operating Profi
Slide 33: 14. Orders and Net Sales Plan
14. Orders and Net Sales Plan Orders: Semiconductors and electronics are planned to remain at the same level , even though FPDs are expected to decrease due to the rebound from the sharp increase in investment in LCDs for IT panels in FY2021. Net Sales:4% increase is planned mainly in semiconductor
Slide 34: 15. To improve profit margin mainly by strengthening manufacturing capabilities
15. To improve profit margin mainly by strengthening manufacturing capabilities Promoting the improvement in gross profit margin and operating profit margin by strengthening manufacturing capabilities, improving productivity, and increasing sales, despite the impact of longer delivery lead times and
Slide 35: 16. Growth in FY2023 and beyond
16. Growth in FY2023 and beyond Next mid-term management plan will be announced in August 2023. We will concentrate R&D investment on the following growth areas aiming to increase sales and profits and improve profit margins. Semiconductors, Electronics • Growing by entering other processes such as
Slide 36: TOPICS
TOPICS Support for Recommendations by the Task Merger of wholly owned subsidiaries Force on Climate-related Financial Disclosures On July 1st, we merged two major domestic manufacturing We support the recommendations of the Task Force on Climate subsidiaries. In order to accelerate the "strengthenin
Slide 37: Smart and Digital Society Realization, Green Energy Conversion
Supporting the realization of a smart and digital society and green energy through technological innovation Smart and Digital Society Green Energy Conversion Realization Low Power Consumption Smart Society⇒Solving Social Problems Communicating Memory Logic IC Sensor Device Battery Miniaturization Hi
Slide 38: Breakthrough
© 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215 38 E
Slide 39: Quarterly Business Results
Quarterly Business Results FY2020 Actual FY2021 Actual (Unit: ¥1 billion) 1Q 2Q 1H 3Q 4Q 2H Full Year 1Q 2Q 1H 3Q 4Q 2H Full Year YoY Orders Received 31.2 59.8 91.0 42.1 65.8 107.9 198.9 66.3 78.3 144.6 59.6 65.9 125.5 270.1 +35.8% Net Sales 36.6 47.3 83.8 44.7 54.5 99.2 183.0 47.4 58.3 105.7 60.4 7
Slide 40: Gross Profit Margin & Operating Profit Margin (Half Period)
Gross Profit Margin & Operating Profit Margin(Half Period) Net Sales and Operating Profit (Unit: ¥1 billion) Gross Profit Margin & Operating Profit Margin (Unit: %) Net Sales Operating Profit Gross Profit Margin Operating Profit Margin 135.6 30.7 30.7 30.4 28.1 27.8 105.7 26.5 96.7 99.2 18.6 88.7 83
Slide 41: Orders and Net Sales by Segment (Half Period)
Orders and Net Sales by Segment (Half Period) Orders received (Unit: ¥1 billion) Net sales (Unit: ¥1 billion) Semiconductor & Electronics Semiconductor & Electronics Device Production Equipment Components Materials Device Production Equipment Components Materials FPDs Production Equipment Industrial
Slide 42: Orders and Net Sales by Segment (Quarterly)
Orders and Net Sales by Segment (Quarterly) Orders received (Unit: ¥1 billion) Net sales (Unit: ¥1 billion) Semiconductor & Electronics Semiconductor & Electronics Device Production Equipment Components Materials Device Production Equipment Components Materials FPDs Production Equipment Industrial E
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Unit: ¥1 billion) Liabilities and Net Assets (Unit: ¥1 billion) Cash on hand and in banks Note and accounts payable,trade Notes and accounts receivable,trade Interest-bearing debt Inventories Other current liabilities Other current assets Other Long-term liabilitie
Slide 44: Capital Expenditures and R&D Expenses
Capital Expenditures and R&D Expenses Actual and Planned Capital Expenditures Actual and Planned R&D Expenses (Unit: ¥1 billion) R&D Equipment Depreciation (Unit: ¥1 billion) Building, Produciton Equipment etc. 21.5 12.8 10.3 9.2 12.9 12.9 15.0 8.3 8.4 8.4 11.0 10.3 10.0 7.2 6.6 5.1 6.9 6.6 8.6 9.2
Slide 45: Changes in Net Sales by Region
Changes in Net Sales by Region Net Sales by Region (Unit: ¥1 billion) Percentage of Net Sales by Region Japan China Korea Taiwan Other Asia Europe, America and others Japan China Korea Taiwan Other Asia Europe, America and others 249.3 241.3 7% 5% 4% 4% 8% 2% 2% 16.7 3% 220.7 9.5 3% 2% 6.7 4.7 7% 8%
Slide 46: Breakthrough
© 2022 ULVAC, Inc. | Confidential and Proprietary Information Breakthrough 2022 FY211QPSN20220215 46 E