Slide 1: FY2023/6 Business Results
ULVAC, Inc. FY2023/6 Business Results (July 2022 - Jun 2023) Aug.8, 2023 Copyright© 2023, ULVAC, Inc. All rights reserved 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 Consolidated Financial Results for the Fiscal Year Ended June 30, 2023 Both orders and sales decreased vs. same period of the previous year due to a reactionary decline in LCD investments for IT panels, but Semiconductors, Electronics and Components steadily increased. Operating profit d
Slide 4: FY2023/6 Business Results
FY2023/6 Business Results Copyright© 2023, ULVAC, Inc. All rights reserved 4
Slide 5: Business Results for FY2023/6
1 Business Results for FY2023/6 Both orders and sales decreased from the same period of the previous year due to a decrease in FPDs and materials, despite an increase in Semiconductors, Electronics and Components. Operating profit margin declined to 8.8% (-3.7 pt. YoY) due to lower sales and hig
Slide 6: Orders Received and Sales Results
2 Orders Received and Sales Results Orders Received: Despite an increase in Semiconductor and Electronics, Components, orders received decreased from the same period of the previous year due to a reactionary decline in LCD investments for IT panels in FPDs and a decrease in materials for FPDs, etc
Slide 7: Profit Margins
3 Profit Margins Decrease in gross profit margin vs. same period of the previous year due to lower sales Operating profit margin declined vs. same period of the previous year due to a decline in gross profit margin and an increase in SG&A expenses (R&D Expenses). SG&A ratio increased due to hi
Slide 8: Consolidated Balance Sheet
4 Consolidated Balance Sheet Assets (Unit:¥1 billion) Liabilities and Net Assets (Unit:¥1 billion) Cash and deposits Notes and accounts payable,trade Notes and accounts receivable,trade Interest-bearing debt Inventories Other current liabilities Other current assets Other non-current liabilities Pro
Slide 9: Review of Mid-Term Management Plan
Review of Mid-Term Management Plan Copyright© 2023, ULVAC, Inc. All rights reserved 9
Slide 10: Net Sales
1 Net Sales Net sales: Exceeded the initial mid-term management plan in every fiscal year including FY23/6 Semiconductor and Electronics grew much faster than planned (especially in orders) Orders received: Orders received exceeded every fiscal year, and the order backlog at the end of FY23/6 wa
Slide 11: Orders Received
2 Orders Received Sales of Semiconductor and Electronics were driven by Power devices, various Electronic devices and Logic, etc., while Components and others also steadily increased, despite a YoY decline in FPDs due to a reactionary decline in LCD investments for IT panels and a decrease in mate
Slide 12: Review of the Previous Mid-Term Management Plan (1)
3 Review of the Previous Mid-Term Management Plan (1) Basic Policy Development Investment for Growth Profit-Oriented Management (Selection and Concentration) Through a Change in Structure Priority Strategies Outcome and progress evaluation Strengthening the Growing › Semiconductors: Growth through e
Slide 13: Review of the Previous Mid-Term Management Plan (2)
3 Review of the Previous Mid-Term Management Plan (2) Net Sales Initial Target Actual Evaluation Contents, Factors, etc. Strengthing the FY20/6 Actual vs. FY20/6 Growing Businesses ¥32 billion • Growth in Logic MHM for legacy node in new • Semiconductors ¥19.6 billion ¥33.1 billion ◎ +69% transactio
Slide 14: Profit Margin Improvement Results
4 Profit Margin Improvement Results Profit margins steadily improved through FY22/6 H1, although the profit margin target was not achieved due to reduced effects from longer delivery times of parts and materials etc., However, the average profit margin over the 3-year period of the Mid-Term Manage
Slide 15: New Mid-Term Management Plan
New Mid-Term Management Plan Copyright© 2023, ULVAC, Inc. All rights reserved 15
Slide 16: Vision and Materiality
1 Vision and Materiality Basic Corporate Philosophy The ULVAC Group aims to contribute to the development of industry and science by comprehensively utilizing its vacuum and peripheral technologies through the mutual cooperation and collaboration of the Group companies. Our Goal for 2050 A company t
Slide 17: Key points of the new mid-term management plan
Key points of the new mid-term management plan: 2 Continue to seize growth opportunities and improve profit margins Previous Mid-Term Management Plan • Development investment ⇒ Sales exceeded the initial plan due to the growth of Semiconductor and Electronics • Orders received were ¥247.2 billion (1
Slide 18: Basic Policy and Priority Strategies of the New Mid-Term Management Plan
3 Basic Policy and Priority Strategies of the New Mid-Term Management Plan < Basic Policy > Creating Social Value Enhancing P rofit and Capital through Vacuum Technology Efficiency Oriented Management Priority Strategies Point › Promoting innovation through co-creation › Expansion Semiconductor and
Slide 19: Semiconductor and Electronics, Battery markets to grow in the Mid- to Long-Term
4 Semiconductor and Electronics, Battery markets to grow in the Mid- to Long-Term " Smart Society, Digitalization, Metaverse" x "AI" x “Green Energy" Semiconductors and Electronics, Batteries: "Technological Innovation" x “Investment in Production Increasement" Establishment of Regional Supply C
Slide 20: Growth Drivers (Power, Various Electronics Devices, Semiconductors and Batteries)
5 Growth Drivers (Power, Various Electronics Devices, Semiconductors and Batteries) Order Forecast of Growth Drivers FPDs Battery (Unit:¥1 billion) Logic Memory vs. FY23/6 Various Electronic Devices Power Devices Battery › Full-scale investment in mass production of double-sided evaporation 160 1.6
Slide 21: New Mid-Term Management Plan Numerical Targets (1)
6 New Mid-Term Management Plan Numerical Targets (1) FY23/6 FY26/6 Actual Target vs. FY23/6 Net Sales ¥227.5 billion ¥300.0 billion + ¥72.5 billion (+32％) Gross Profit 29.5% 35% +5.5pt Margin Operating ¥19.9 billion ¥48.0 billion + ¥28.1 billion Profit(Margin) (8.8%) (16%) (+7.2pt) ROE 7.3% 14% +6.7
Slide 22: New Mid-Term Management Plan Target (2)
6 New Mid-Term Management Plan Target (2) Net sales and operating profit both expected to recover from the second half of FY24/6. Further improvement in net sales and operating profit in FY25/6, aiming for net sales of ¥300 billion and operating profit of ¥48 billion in FY26/6. operating profit
Slide 23: Improved productivity and profit margins by strengthening manufacturing capabilities
7 Improved productivity and profit margins by strengthening manufacturing capabilities Promote improvement in profit margin by strengthening product planning capabilities, deepening technical design reforms, and improving productivity through strategic procurement reforms and planned production ex
Slide 24: Semiconductors: Growth through entry of new customers and new processes
8 Semiconductors: Growth through entry of new customers and new processes in addition to Logic MHM Semiconductors capex in adjustment phase in the short term, but investment expected to expand in mid- to long- term Logic: MHM process, new customers, new process entry; Memory: Market recovery, gr
Slide 25: Electronics: Power devices, growth mainly in Japan and China
9 Electronics: Power devices, growth mainly in Japan and China Various Electronics devices such as Power Devices and Packaging will continue to grow mainly in Japan and China due to investment in technological innovation and production increasement. Order Forecast (by Sector) (Unit:¥1 billion) Ord
Slide 26: Electronics: Power Devices: Increased investment due to SiC and wafer size increase
10 Electronics: Power Devices: Increased investment due to SiC and wafer size increase Investment in power devices continues to expand, mainly for SiC Business expansion in response to wafer size increase and structural changes ~23/6 23/7~ Japan China Japan China SiC 6 and 8 inch › SiC: Planar →
Slide 27: Electronics: Various Electronic Device Fields
11 Electronics: Various Electronic Device Fields Track record in variety of fields and broad lineup of equipment → Growth through investment in technological innovation, production increase and entry into new processes ~23/6 23/7~ Optical Device μLED › μOLEDs: Continuous investment for AR/VR Etch
Slide 28: FPDs: Driven by Double-Sided Evaporation Roll-to-Roll Equipment for EV Batteries and OLEDs
12 FPDs: Driven by Double-Sided Evaporation Roll-to-Roll Equipment for EV Batteris and OLEDs Full-scale investment in double-sided Evaporation Roll-to-Roll Equipment for EV batteries begins ⇒ FY26/6: Orders expected to exceed ¥30 billion Also began investing in sputtering equipment for large siz
Slide 29: Battery Business
13 Battery Business Full-scale investment to replace conventional metal foil with Double-sided Evaporation film to realize smaller, larger-capacity, and safer EVs batteries Secure market share in Double-sided Evaporation Roll-to-Roll Equipment: Further differentiation through development of new
Slide 30: Panel display business
14 Panel display business Secure market share for OLEDs (G8.7 class) sputtering equipment for IT panels by utilizing low-particle deposition technology Data analysis service reduces man-hours and improves 1 yield for customers → Expand customer support business ULVAC's Strengths ULVAC's Strength
Slide 31: Customer Support (Stable Business Basis)
15 Customer Support (Stable Business Basis) Grow customer support business by expanding existing business, strengthening support for strategic regions, and reinforcing development proposal-based CIP*. Breakdown of CS orders (Reference) ULVAC's Strengths For Semiconductors For FPDs For Components F
Slide 32: Components and Materials (Stable Business Basis)
16 Components and Materials (Stable Business Basis) Components and materials business, also grew as a stable business basis Components Materials ULVAC's Strengths ULVAC's Strengths 1 Equipment Know-How → Improvement of specifications for 1 High quality sintered targets for advanced Semiconductors
Slide 33: R&D Investment: Strengthening R&D for Growth Drivers
17 R&D Investment: Strengthening R&D for Growth Drivers Strengthening R&D for growth drivers (Semiconductors, power devices, batteries, etc.) Construction of Korea Technology Center: Strengthening collaboration and technical support, accelerating product and technology development close to the c
Slide 34: Shareholder Return
18 Shareholder Return Accelerate development investment in growth areas, particularly Semiconductor and Electronics Positioning shareholder returns as one of our most important policies, we aim to increase dividends over the long term through further growth. From FY24/6, increase performance-l
Slide 35: FY2024/6 Consolidated Earnings Forecast
FY2024/6 Consolidated Earnings Forecast Copyright© 2023, ULVAC, Inc. All rights reserved 35
Slide 36: Forecast for FY2024/6
1 Forecast for FY2024/6 Orders: Plan to increase to ¥250 billion by continuous growth in Semiconductor and Electronics Sales: Plan to increase sales ¥245 billion due to planned production expansion of Semiconductor and Electronics, etc. Operating Profit Margin: Plan to improve to 9.4% ( +0.6 p
Slide 37: Orders and Sales Plan
2 Orders and Sales Plan Orders: Plan to increase to ¥250 billion due to continuous growth in Semiconductor and Electronics Sales: Plan to increase to ¥245 billion due to planned production expansion of Semiconductor and Electronics, etc. Orders Received (Unit:¥1 billion) Net Sales (Unit:¥1 billi
Slide 38: Promote profit margin improvement by strengthening manufacturing capabilities
3 Promote profit margin improvement by strengthening manufacturing capabilities, etc. Improvement effects will be gradual due to the lingering effects of longer delivery times of parts and materials for projects already ordered, but we plan to increase gross profit margin and operating profit marg
Slide 39: Appendix
Appendix Copyright© 2023, ULVAC, Inc. All rights reserved 39
Slide 40: Revised Sales Target
1 Revised Sales Target Semiconductors & Electronics Device Production Equipment Components Materials Net Sales (Unit:¥1 billion) FPD Production Equipment Industrial Equipment Others FY20/6 FY21/6 FY22/6 FY23/6 250.0 241.3 235.0 230.0 227.5 210.0 215.0 210.0 185.4 183.0 190.0 165.0 20/8 20/8 21/8 20/
Slide 41: Quarterly Consolidated Financial Results
2 Quarterly Consolidated Financial Results FY 22/6 FY 23/6 (Unit:¥1 billion) YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Amount % Orders Received 66.3 78.3 59.6 65.9 66.6 62.5 43.4 74.7 +8.8 +13% Net Sales 47.4 58.3 60.4 75.2 56.2 55.2 49.6 66.6 -8.6 -11% Gross Profit 13.2 18.9 18.6 23.0 16.5 16.8 14.7 19.1 -3.9 -1
Slide 42: Orders Received and Sales by Product Category (Quarterly Results)
3 Orders Received and Sales by Product Category (Quarterly Results) Orders Received (Unit:¥1 billion) Net Sales (Unit:¥1 billion) Semiconductors & Electronics Semiconductors & Electronics Device Production Equipment Component Materials Component Materials Device Production Equipment FPD Production E
Slide 43: Changes in Capital Investment and R&D Expenses
4 Changes in Capital Investment and R&D Expenses Capital Expenditure (Unit:¥1 billion) R&D Expenses (Unit:¥1 billion) Buildings, production facilities, Depreciation and etc. amortization Research and Development Facilities 22.5 13.8 19.7 11.6 10.3 9.2 12.9 11.9 17.5 8.4 8.4 11.0 10.3 10.0 6.6 5.1 6.
Slide 44: Sales by Region (Actual)
5 Sales by Region (Actual) Net Sales (Unit:¥1 billion) Percentage of Net Sales Japan China Korea Taiwan Other Asia Europe,others Japan China Korea Taiwan Other Asia Europe,others 241.3 5% 4% 4% 5% 8% 2% 2% 227.5 3% 3% 9.5 2% 220.7 4.7 8% 10% 12% 12.0 7% 10% 17.7 29.2 7.0 4.7 11% 11% 14% 185.4 183.0
Slide 45: ULVAC's Value Creation "Here & There, Near your side"
6 ULVAC's Value Creation "Here & There, Near your side": Expanding Investment Opportunities in the Mid- to Long-Term AI Artificial Intelligence (AI) Wind Power SED Semiconductor AEED Wind power Electronic Device IED Power Devices SED Component High-performance Component AEED Material battery for ele
Slide 46: Solving Social Issues
7 Supporting the realization of a smart and digital society and green energy through technological innovation Solving Social Issues Smart and Digital Society Green Energy Conversion Realization Low Power Consumption Sensor・ Power Device Memory Logic IC Electronic Devices Battery Miniaturization/ Hig
Slide 47: ULVAC Vacuum Technology Contributes to Many Industries and Applications
ULVAC Vacuum Technology Contributes to Many Industries and Applications Copyright© 2023, ULVAC, Inc. All rights reserved 47