Rigaku Holdings Corporation · TSE:268A
Rigaku — FY2024 Earnings Presentation
37 slides from Rigaku's earnings presentation, Feb 14, 2025
Slide 1: Consolidated Financial Results in FY2024 and Earnings Forecast in FY2025
AMA Consolidated Financial Results in FY2024 and Earnings Forecast in FY2025
Slide 2: Disclaimer
This material has been prepared solely for the purpose of providing relevant information regarding Rigaku Holdings Corporation (“Rigaku” or the “Company”) and does not constitute an offer to sell or the solicitation of an offer to buy any security in the United States, Japan or any other jurisdictio
Slide 3: Medium-term Business Plan Highlights
Medium-term Business Plan Highlights © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 3
Slide 4: Rigaku at a Glance
Rigaku at a Glance ◼ Rigaku Provides Innovative X-ray Analytical Solutions for Diversified end Markets Leveraging its Exceptional X-ray Core Technologies Derived from In-house Core Components Financial Profiles with Best-in-Class Growth and Margin Strong Track Record with Industry Leaders / Stickine
Slide 5: Rigaku's Growth Strategy Concept (3 Pillars of Growth)
Rigaku’s Growth Strategy Concept (3 Pillars of Growth) ◼ Through the “Lab to Fab” Strategy, Rigaku Aims to Drive Mid-term Growth by Establishing Solutions that Address the Demand for Leading-edge Measurement Technologies Driving the “Lab to Fab” Business Expanding Deployment of the Pillar1 Leveragin
Slide 6: Medium-term Business Plan
Medium-term Business Plan ◼ Target Revenue CAGR of Approx. 10% Driven by a Strong Growth in Semiconductor Process Control Instruments Overall Medium-term Goals (Company-wide) Revenue Growth Target by Product Category (JPY Bn) Plan Base Year 2024/12 Medium-term Goals CAGR (2023/12) (Actual) (2027/12)
Slide 7: Consolidated Financial Results in FY2024
Consolidated Financial Results in FY2024 © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 7
Slide 8: Highlights of Consolidated Financial Results in FY2024
Highlights of Consolidated Financial Results in FY2024 ▪ Double-digit Growth: Continued growth exceeding full-year earnings forecast Overall (Revenue +13.5%, Adjusted EBITDA +15.8%) ▪ Profitability increase due to improved product mix while accelerating R&D and infrastructure CAPEX Multipurpose Anal
Slide 9: Summary of Consolidated Financial Results in FY2024
Summary of Consolidated Financial Results in FY2024 ◼ Double-digit revenue growth(1) and record profit - revenue and profit both exceeded earnings forecast(2) ◼ Margin improvement in both Adjusted EBITDA(3) and Adjusted Profit(3) Revenue Adjusted EBITDA(3) Adjusted Profit(3) （JPY Bn） （JPY Bn） （JPY B
Slide 10: Multipurpose Analytical Instruments Business
Multipurpose Analytical Instruments Business ◼ Revenue increased +15.3% YoY to JPY 41.3Bn largely exceeding market growth ◼ Expanded market share in overseas markets, especially in Asia Revenue by Region Revenue by End Market （JPY Bn） 17.4% (1) ４ Academia/Government Academia/Government 14.8% 41.3 40
Slide 11: Semiconductor Process Control Instruments Business
Semiconductor Process Control Instruments Business ◼ Significant revenue growth to JPY 23.4Bn, +25.4% YoY ◼ Captured new demand complementing slow memory market recovery Revenue by Applications Revenue by Region （JPY Bn） 35.0% 31.7% 4 （JPY Bn） 23.3 23.3 18.6 2.0 18.6 3.9 3 3.9 1.2 1.8 3.1 1.5 0.1 5.
Slide 12: Components and Services Business
Components and Services Business ◼ Revenue grew moderately to JPY 25.9Bn, +2.1% YoY Components and Services Revenue Revenue by Region （JPY Bn） （JPY Bn） 24.1% 23.9% 25.3 25.9 25.3 25.9 2.0 2.0 1.6 1.7 8.8 9.9 1 2.4 3.4 8.8 9.1 16.4 15.9 2 10.7 9.7 2023/12 2024/12 2023/12 2024/12 Components and equipm
Slide 13: Adjusted EBITDA Analysis
Adjusted EBITDA Analysis ◼ Adjusted EBITDA increased by 0.6pts compared to FY2023 (+25.3% ⇒ +25.9%) ◼ Increased margins due to progress in sales mix and pricing absorbing higher R&D and other SG&A expenses （Ratio vs. Revenue） 2.6% (1.1)% (0.9)% 25.9% 25.3% 2023/12 Gross Profit Margin R&D Other SG&A
Slide 14: Business Strategy and Earnings Forecast in FY2025
Business Strategy and Earnings Forecast in FY2025 © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 14
Slide 15: FY2025 Forecasts
FY2025 Forecasts FY2024/12 FY2025/12(1) ◼ Continue to pursue Medium-term Business Plan Results Forecast ◼ Revenue growth of 10.2% YoY(2), Revenue JPY 90.6Bn JPY 97.7Bn Adj. EBITDA margin of 26.1%, Adj. OP margin of 23.0% (YoY) 13.5% 7.8% Overall and Adj. Profit margin of 16.0% Adjusted EBITDA JPY 23
Slide 16: Business Strategy – Multipurpose Analytical Instruments Business (1/2)
Business Strategy – Multipurpose Analytical Instruments Business (1/2) Strategy Highlights in FY2025 X-ray Analytical Instruments Growth Strategy ◼ +8% growth from FY2023 to FY2025E outpacing Medium-term A Business Plan Innovations in Materials Science ◼ Europe, Americas, and Japan to offset the slo
Slide 17: Business Strategy – Multipurpose Analytical Instruments Business (2/2)
Business Strategy – Multipurpose Analytical Instruments Business (2/2) Driving the Pillar 3 Strategy 1 2 3 Semiconductor / Electric Components Battery / Battery Materials Life Science Development of crystal analysis solutions for Promotion of MoleQlyze to pharmaceutical Focus in Chinese SiC market a
Slide 18: Business Strategy – Semiconductor Process Control Instruments Business (1/2)
Business Strategy – Semiconductor Process Control Instruments Business (1/2) Strategy Highlights in FY2025 ◼ Targeting 20%(1) normalized growth - Recovery in advanced memory investment to offset demand adjustment by IDMs Revenue by Applications WFE (Wafer Fab Equipment Manufacturer) 30 (JPY Bn) 27.6
Slide 19: Business Strategy – Semiconductor Process Control Instruments Business (2/2)
Business Strategy – Semiconductor Process Control Instruments Business (2/2) Rigaku’s Initiatives for Further Growth 1 2 3 Further Expansion of Advanced Acceleration of New Product Enhancement of 3D Structure Measurement Solutions in Advanced Development for Advanced Packaging Analysis Solutions by
Slide 20: Manufacturing Capacity Expansion
Manufacturing Capacity Expansion ◼ Manufacturing capacity expanding approx. 2.0x through supply chain enhancement supporting Rigaku’s growth Expansion of Production Space (More than c. 1.5x vs 2022) Shorter Lead Times (30% Reduction by 2027) ▪ Plan to expand production capacity, including Yamanashi
Slide 21: FY2025 Earnings Forecast - Revenue by First/Second Half & CAPEX
FY2025 Earnings Forecast - Revenue by First/Second Half & CAPEX ◼ Revenue projected to be higher reflecting supply chain enhancements ◼ CAPEX ratio to revenue in FY2025 is expected to increase to 8.7% due to Yamanashi Plant expansion (JPY 2.2Bn), thin-film clean room and Osaka Plant expansion (JPY 1
Slide 22: Shareholder Return Policy/ROE Trends
Shareholder Return Policy/ROE Trends Shareholder Return Policy Adjusted Return on Equity(1)(ROE) Consolidated Dividend Payout Ratio: Aim for approx. 30% ▪ Our fundamental policy remains to distribute dividends to shareholders, targeting 30% of the current consolidated profit, 21.9% while balancing g
Slide 23: Conclusion
Conclusion ◼ Continue to pursue Medium-term Business Plan ◼ Supply chain entering new stage with enhanced production capacity ◼ To achieve short and mid-to-long term growth by agilely responding to rapidly changing market environment © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. AL
Slide 24: Appendix - Consolidated Financial Results in FY2024
Appendix - Consolidated Financial Results in FY2024 © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 24
Slide 25: Earnings by Business (Management Accounting Basis)
Earnings by Business (Management Accounting Basis) Revenue Operating Profit Operating Profit Margin （JPY MM） 2023/12 2024/12 Changes Changes Ratio 2023/12 2024/12 Changes Changes Ratio 2023/12 2024/12 Changes Multipurpose Analytical 35,840 41,327 5,487 15.3% 5,307 7,182 1,875 35.3% 14.8% 17.4% 2.6pt
Slide 26: Revenue by Region
Revenue by Region(1) FY2023/12 FY2024/12 Changes Changes Notes Full Year Full Year Ratio （JPY MM） Total Revenue 79,887 90,652 10,765 13.5% - Japan 25,047 24,350 (696) (2.8)% Decreased in EUV due to prolonged customers’ inventory adjustments Americas 21,622 27,717 6,094 28.2% Growth in sales of semic
Slide 27: Revenue by End Markets (Management Accounting Basis)
Revenue by End Markets (Management Accounting Basis) FY2023/12 FY2024/12 Revenue Ratio Revenue Ratio Notes (JPY MM) Full Year Full Year Total Revenue 79,887 100% 90,652 100% - Semiconductors / Increased in Semiconductor Process Control and Multipurpose 26,441 33% 32,411 36% Electronic Components Ana
Slide 28: R&D Expenses / CAPEX
R&D Expenses / CAPEX ◼ Strategically allocated R&D expenses to implementation of “Lab-to-Fab” strategy, product developments for semiconductor market, biopharmaceutical innovations, and common technologies development ◼ CAPEX increased due to Yamanashi Plant investment and infrastructure enhancement
Slide 29: Summary of Consolidated Financial Results in FY2024
Summary of Consolidated Financial Results in FY2024 FY2023/12 FY2024/12 Changes Changes Ratio Notes （JPY MM） Full Year Full Year By business, increased in Semiconductor Process Control and Multipurpose Analytical Instruments Revenue 79,887 90,652 10,765 13% By region, increased in Americas and China
Slide 30: B/S & Cash Flow Statement in FY2024
B/S & Cash Flow Statement in FY2024 FY2023/12 FY2024/12 Changes Changes Ratio Notes （JPY MM） Year End Year End Current Assets 61,030 71,228 10,197 16.7% Increase in cash, deposits, accounts receivable, and inventory due to increasing revenue Cash and Cash Equivalents 20,521 27,992 7,470 36.4% Proper
Slide 31: Reconciliation of Adjusted Items (1/2)
Reconciliation of Adjusted Items (1/2) （JPY MM） FY2023/12 FY2024/12 Changes EBITDA Full year Full year Profit Before Tax 14,826 17,977 3,150 Depreciation and Amortization 4,408 4,868 459 Interest Expense 623 698 75 Interest and Dividend Income (195) (363) (167) Impairment Losses 0 109 109 EBITDA 19,
Slide 32: Reconciliation of Adjusted Items (2/2)
Reconciliation of Adjusted Items (2/2) （JPY MM） FY2023/12 FY2024/12 Changes Adjusted Operating Profit Full year Full year Operating Profit 15,256 18,367 3,111 PPA Amortization 2,493 2,269 (224) IFRS Adoption Cost 69 0 (69) Business Consulting Fee 30 24 (5) China Exemption Application-related Costs 4
Slide 33: Comparison with the Forecast for FY2024
Comparison with the Forecast for FY2024(1)(2) (JPY MM) Forecast for FY2024 Results for FY2024 Revenue 88,500 90,652 EBITDA 22,000 23,290 Adjusted EBITDA 22,600 23,462 Operating Profit 17,394 18,367 Operating Profit Margin 19.7% 20.3% Adjusted Operating Profit 20,230 20,917 Adjusted Operating Profit
Slide 34: Appendix - Business Strategy and Earnings Forecast in FY2025
Appendix - Business Strategy and Earnings Forecast in FY2025 © 2024 RIGAKU HOLDINGS CORPORATION AND ITS GLOBAL SUBSIDIARIES. ALL RIGHTS RESERVED. 34
Slide 35: 2025 Financial Forecast – Earnings by Business
2025 Financial Forecast(1) – Earnings by Business (Management Accounting Basis) Revenue Operating Profit Operating Profit Margin FY2024/12 FY2025/12 Changes FY2024/12 FY2025/12 Changes FY2024/12 FY2025/12 Changes Changes Changes Results Forecast Ratio Results Forecast Ratio Results Forecast （JPY Bn）
Slide 36: 2025 Financial Forecast - Sales by Region
2025 Financial Forecast - Sales by Region(1) FY2024/12 FY2025/12 Changes Changes Ratio Notes （JPY Bn） Results Forecast Total Revenue 90.6 97.7 7.1 7.8% - Japan 24.3 30.3 6.0 24.7% Semiconductor Process Control Instruments: Increased sales in foundry and memory Americas 27.7 25.8 (1.9) (6.9)% Semicon
Slide 37: 2025 Forecasts – Revenue by End Markets
2025 Forecasts – Revenue by End Markets (Management Accounting Basis) FY2024/12 FY2025/12 Revenue Ratio Revenue Ratio Notes （JPY Bn） Results Forecast Total Revenue 90.6 100% 97.7 100% - Semiconductors / 32.4 36% 32.9 34% - Electronic Components Life Science 4.1 5% 4.9 5% - Others 16.5 18% 19.3 20% A