Slide 1: Second Quarter FY2024 Financial Results
Second Quarter FY2024 Financial Results Ushio Inc. November 6, 2024 Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Copyright © 202
Slide 2: Highlights of Today's Presentation
Highlights of Today’s Presentation ◼ H1 FY2024 Results: Higher revenues and lower earnings • Although earnings were down while revenues were up year-on-year, earnings exceeded internal targets • Profitability improved by enhancing efficiency through strategic business selection • Recorded valuation
Slide 3: Agenda
I. Financial Results for H1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 3
Slide 4: H1 FY2024: Summary of Financial Results
H1 FY2024: Summary of Financial Results YoY Comparison: +0.6 billion yen (+0.8%） Net Sales - A weaker yen enabled us to offset the adverse conditions in the 85.6billion yen semiconductor market (in Industrial Processes business) and the impact of the Hollywood strike (in Visual Imaging business) and
Slide 5: H1 FY2024: Financial Highlights
H1 FY2024: Financial Highlights YoY Comparison H1 FY2023 H1 FY2024 Results Results Changes (％) （Billions of yen) Net Sales 85.0 85.6 ＋0.6 ＋0.8% Operating Profit 4.9 4.2 -0.6 -14.1% Operating Margin 5.8% 5.0% -0.9P - Ordinary Profit 6.2 5.4 -0.8 -13.4% Profit Attributable to Owners of Parent 4.2 2.3
Slide 6: H1 FY2024: YoY Variation Analysis of Operating Profit
H1 FY2024: YoY Variation Analysis of Operating Profit (Billions of yen) ＋1.7 -0.6 -2.2 Impacts from ＋0.4 production drops, 4.9 material price hikes, Impacts from etc.*¹ sales changes*¹ -0.3 +0.7 4.2 FOREX -0.4 Valuation losses associated with Forward business portfolio investments Increased Others*¹
Slide 7: H1 FY2024: Financial Results by Business Segments
H1 FY2024: Financial Results by Business Segments H1 FY2023 H1 FY2024 YoY Comparison Results Results (％) （Billions of yen) Changes Net Sales 37.7 37.5 -0.2 -0.5% Industrial Processes Operating Profit 3.9 5.2 ＋1.2 ＋32.8% [Operating Margin] [10.4%] [13.9%] [＋3.5P] - Net Sales 38.8 39.2 ＋0.4 ＋1.1% Visu
Slide 8: H1 FY2024: Industrial Processes Results
H1 FY2024: Industrial Processes Results H1 FY2023 H1 FY2024 YoY Comparison ■Net Sales: Down 0.2 billion yen YoY Results Results (Billions of yen) Changes (%) - A semiconductor market downturn prompted ① investment postponements, with equipment sales Net Sales 37.7 37.5 -0.2 -0.5% dropping - While sa
Slide 9: H1 FY2024: Visual Imaging Results
H1 FY2024: Visual Imaging Results YoY Comparison H1 FY2023 H1 FY2024 ■Net Sales: Up 0.4 billion yen YoY Results Results (Billions of yen) Changes (%) - Although sales fell owing to fewer large deals ① than in Q2 in the previous term, revenues rose on Net Sales 38.8 39.2 ＋0.4 ＋1.1% the weaker yen - S
Slide 10: H1 FY2024: Life Sciences and Photonics Solutions Results
H1 FY2024: Life Sciences and Photonics Solutions Results Life Sciences H1 FY2023 H1 FY2024 YoY Comparison ■Net Sales: Up 0.3 billion yen YoY (Billions of yen) Results Results Changes (%) - Increased sodium lamp sales Net Sales 2.6 3.0 ＋0.3 ＋13.5% ■Operating Profit: Up 0.6 billion yen YoY Operating P
Slide 11: Full-Year Forecasts for FY2024
I. Financial Results for H1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 11
Slide 12: Summary of FY2024 Full-Year Forecasts
Summary of FY2024 Full-Year Forecasts Lifting forecasts for operating profit and subsequent profit levels • Profitability improvement through strategic business selection as part of business portfolio revamp in New Growth Strategy • Benefit from the weaker yen ⚫ 175.0 billion yen (forecast unchanged
Slide 13: FY2024 Full-Year Forecasts Revision: Summary
FY2024 Full-Year Forecasts Revision: Summary YoY Comparison Forecasts FY2023 Revision on 5/14/2024 Changes (Billions of yen) Results Changes (%) Net Sales 175.0 175.0 - 179.4 -4.4 -2.5% Operating Profit 7.5 5.0 ＋2.5 12.9 -5.4 -42.2% Operating Margin 4.3% 2.9% ＋1.4P 7.2% -2.9P - Ordinary Profit 9.5 6
Slide 14: FY2024 Full-Year Forecasts Revision: By Business Segments
FY2024 Full-Year Forecasts Revision: By Business Segments Revision Forecasts Changes Key revisions (Billions of yen) on 5/14/2024 Net Sales 80.0 79.0 ＋1.0 Industrial ⚫ Lifting forecasts for sales and profits in view of the weaker yen Processes Operating Profit 7.5 3.5 ＋4.0 and the improved profitabi
Slide 15: FY2024 Full-Year Forecasts Revision: H1 Progress (by Segment)
FY2024 Full-Year Forecasts Revision: H1 Progress (by Segment) FY2024 H1 FY2024 Progress Forecasts Outlook for H2 (Billions of yen) Results rate Revised Net Sales 80.0 37.5 47.0% ⚫ Sales of lithography equipment should increase Industrial ⚫ Planning to forward investments* should increase Processes
Slide 16: FY2024 Forecasts Revision: YoY Variation Analysis of Operating Profit
FY2024 Full-Year Forecasts Revision: YoY Variation Analysis of Operating Profit 12.9 ＋0.4 -1.3 FOREX -1.2 Impacts from -2.2 sales changes Impacts from production drops, material price hikes, -1.3 etc. Valuation losses -1.1 ＋1.9 7.5 associated with business portfolio Forward -0.6 revamp, etc. investm
Slide 17: FY2024 Full-Year Forecasts: Industrial Processes
FY2024 Full-Year Forecasts : Industrial Processes Words underlined are revised Net Sales Operating Profit ■Business environment assumptions 82.1 80.0 While the generative AI-related market should grow, demand recovery of the semiconductor market overall remains uncertain - Recovery of the semiconduc
Slide 18: FY2024 Full-Year Forecasts: Visual Imaging
FY2024 Full-Year Forecasts : Visual Imaging Words underlined are revised Net Sales Operating Profit ■Business environment assumptions 80.5 78.0 While demand should be firm, keeping tabs on impact of Chinese economy and Hollywood strike Cinema market - Temporarily reduced cinema operations owing to H
Slide 19: FY2024 Full-Year Forecasts: Life Sciences and Photonics Solutions
FY2024 Full-Year Forecasts : Life Sciences and Photonics Solutions Words underlined are revised Life Sciences Net Sales Operating Profit ■Business environment assumptions 5.2 5.5 Demand should remain stable for medical equipment and other offerings ■Net Sales: Up 0.2 billion yen YoY -1.4 - Sales to
Slide 20: Shareholder Returns
Shareholder Returns Dividends (yen) Dividends payout ratio 【Dividend policy】 112.2 Generating stable returns Will set dividend floor of ¥70 per share annually Dividends 56.3 51.4 for FY2024~FY2026 47.2 47.8 43.2 30.3 35.5 per Share 30.2 FY2024: Plan to increase to ¥70 70 50 50 50 50 26 26 26 26 26 F
Slide 21: Progress with New Growth Strategies
I. Financial Results for H1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 21
Slide 22: Business Strategy: Progress with Revamping Business Portfolio
Business Strategy: Progress with Revamping Business Portfolio Phase I Phase II (FY2024-2026) (FY2027-2030) FY2024 FY2025 FY2026 Current Reassess businesses Entering a phase to enhance Undertake structural profitability improvements with business growth Establish foundation for improving profitabilit
Slide 23: Business Strategy: Progress with Revamping Business Portfolio
Business Strategy: Progress with Revamping Business Portfolio Aiming to implement and complete efforts during new growth strategy Phase I (FY2024-26), with each business progressing as planned ⚫ Currently transferring personnel to growth areas ⚫ Assessing EUV business to determine business direction
Slide 24: Business Strategy: Efforts to Step Up Advanced Packaging Business Growth
Business Strategy: Efforts to Step Up Advanced Packaging Business Growth ⚫ Current Market Environment Insights • Demand for semiconductors related to generative AI remains robust. Notably, there is a trend toward larger package substrates and panel level packaging, with a growing number of inquiries
Slide 25: Financial Strategy
Financial Strategy ⚫ Treasury stock investments (share buybacks) FY2024 FY2025-2026 May 24, 2024~ As of October 31, 2024 ~ April 30, 2025 (plan) ¥12.8 billion Planning to invest (have completed about 43％ ¥20.0-¥30.0 billion in of planned spending） share buybacks FY2024: Planned to invest ¥30.0 billi
Slide 26: Supplementary Information
I. Financial Results for H1 FY2024 II. Full-Year Forecasts for FY2024 III. Progress with New Growth Strategies IV. Supplementary Information Copyright © 2024 Ushio Inc., All Rights Reserved 26
Slide 27: (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 Lithography equipment, Curing （提供：TNO） equipment, EUV light source for UV lamps OA lamps Stepper Direct imagin
Slide 28: Reference: Summary of Quarterly Financial Results
Reference: Summary of Quarterly Financial Results FY2023 FY2024 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Changes (%) Net Sales 39.2 45.7 47.5 46.9 37.5 48.1 ＋2.3 ＋5.2% Operating Profit 2.0 2.9 5.2 2.7 0.3 3.9 ＋1.0 ＋34.8% Operating Margin 5.2% 6.4% 11.0% 5.9% 0.9% 8.2% ＋1.8P - Ordinary Prof
Slide 29: Reference: Quarterly Financial Results by Business Segments
Reference: Summary of Quarterly Financial Results by Business Segments FY2023 FY2024 YoY Comparison (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Changes (%) Net Sales 17.4 20.3 22.5 21.7 15.5 22.0 ＋1.6 ＋8.3% Industrial 2.2 1.7 4.0 2.8 1.0 4.1 ＋2.4 ＋146.5% Operating profit Processes Operating Margin 12.9% 8.4
Slide 30: Reference: Sales Ratio by Region
Reference: Sales Ratio by Region Others 0.6% H1_FY2023 Japan North America Asia Europe Net Sales 23.3% 28.0% 39.3% 8.8% 85.0 billion yen H1_FY2024 Net Sales Japan North America Asia Europe 85.6 21.6% 27.5% 38.9% 8.5% billion yen Others 3.5% Copyright © 2024 Ushio Inc., All Rights Reserved 30
Slide 31: 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 8.0 15.0 7.2 7.1 14.0 6.4 6.5 12.9 11.8 11.4 10.1 10.5 10.0 8.9 9.0 H1 H1 8.2 8.3 Results Resul
Slide 32: Reference: Balance Sheet
Reference: Balance Sheet Assets Liabilities/Net Assets (Billions of yen) (Billions of yen) Changes Changes 337.5 -20.7 337.5 -20.7 316.8 316.8 21.6 -6.3 Notes and AP 65.6 -8.6 15.2 57.0 Cash and Bank Deposits 37.6 33.3 -4.2 Other Current Liabilities 39.7 -1.6 Notes and AR (Trade) 41.3 38.0 50.4 +9.1
Slide 33: Reference: Cash Flow
Reference: Cash Flow (Billions of yen) 21.6 8.9 16.1 15.8 14.3 14.5 11.0 13.0 12.9 4.2 7.2 -0.3 5.3 0.4 0.7 0.8 FY2020 FY2021 FY2022 FY2023 H1_FY2024 -0.7 -1.1 -5.7 -3.4 -5.5 -10.6 -6.7 -13.4 -26.8 Operating Profit Sales CF Investment CF Financial CF Free CF Copyright © 2024 Ushio Inc., All Rights R
Slide 34: Glossary
Glossary AI Artificial Intelligence DCP Digital Cinema Projector DI Direct Imaging: An exposure technique that draws patterns directly without using a mask DLT Digital Lithography Technology EUV Extreme Ultraviolet Radiation FPD Flat Panel Display OA Office Automation Advanced packaging An advanced
Slide 35: IR Website and Email Newsletter
IR Website and Email Newsletter The investor relations portal on our website presents an array of useful information. We invite you to register on the portal to stay up to date with statutory disclosures, announcements, and other content through our email newsletter. Scan this code to Visit our offi
Slide 36: 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 37: Contact: Investor Relations Office
Contact: Investor Relations Office Ushio Inc. Email: ir@ushio.co.jp https://www.ushio.co.jp/en/ir/ Copyright © 2024 Ushio Inc., All Rights Reserved 37