Disco : Consolidated Financial Results for Fiscal Year 2025

Year ending

YoY (%)

June 30, 2026

Net sales

106,100

18.0

Operating income

42,000

21.8

Ordinary income

42,300

24.4

Net income

29,500

24.1

Net income per share (yen)

271.98

-

Shipment value

132,000

18.8

4. Other

1) Important changes in subsidiaries: None

2) Changes in principles, procedures, or display of accounting method concerning consolidated statement policies.

1. Changes in accounting policies along with changes in accounting standards: None

2. Other changes: None

3) Number of shares outstanding (common stoc

k)

(1) Number of shares issued (including treasury stocks)

As of March 31, 2026:

108,478,029

shares

As of March 31, 2025:

108,420,665

shares

(2) Number of shares of treasury stoc

k

As of March 31, 2026:

16,004

shares

As of March 31, 2025:

15,978

shares

(3) Average number of shares

As of March 31, 2026:

108,431,323

shares

As of March 31, 2025:

108,366,683

shares

Explanation regarding appropriate use of earnings forecast:

The performance forecasts and estimates provided in this Financial Review are based on certain assumptions judged to be reasonable at the present time in light of information currently available. Consequently, actual operating results may differ substantially from the projections in the Financial Review.

Reference: non-consolidated forecasts for FY2026 1Q (April 1, 2026 - June 30, 2026)

(Millions of yen)

Year ending

YoY (%)

June 30, 2026

Net sales

86,400

14.5

Operating income

34,400

13.0

Ordinary income

52,100

16.3

Net income

40,100

15.1

Net income per share (yen)

369.71

-

‌5. Business Performance Overview

(1) Overview of Operating Results

In the semiconductor market during the current cumulative consolidated period (hereinafter "this period"), investments in data centers continued to expand against the backdrop of expanding demand for generative AI, and demand for high-performance semiconductors such as advanced logic and HBM (High Bandwidth Memory) continued to remain at a high level. A gradual recovery in the demand for PCs and smartphones was also seen. On the other hand, demand for power semiconductors remained sluggish against the backdrop of a slowdown in the demand for EV, and thus variations in demand were seen for each application.

In such a market environment, shipments of precision processing equipment centered on high value-added products for high-performance semiconductors remained strong, and shipments of precision processing tools (consumables) also remained at a high level linked to high customer facility operation rates.

As a result, both the full-year shipment value and sales reached a record high for the sixth consecutive year. Regarding performance, although there was a slight decrease in the GP margin and an increase in personnel costs and R&D expenses due to changes in the product and application mix, both sales and profit increased due to increased sales and earnings contribution of high-value-added products.

Shipment value - 442.824 billion yen

(increased by 10.3 percentage points compared to the previous fiscal year)

Net sales - 436.889 billion yen

(increased by 11.1 percentage points compared to the previous fiscal year)

Operating income - 184.989 billion yen

(increased by 10.9 percentage points compared to the previous fiscal year) Operating income margin: 42.3%

Ordinary income - 184.936 billion yen

(increased by 9.5 percentage points compared to the previous fiscal year) Ordinary income margin: 42.3%

Net income attributable to owners of parent - 135.521 billion yen (increased by 9.4 percentage points compared to the previous fiscal year) Net income margin: 31.0%

Furthermore, the four-year cumulative ordinary income margin as of this period was 41.4% (40.0% in the previous period), achieving the company's goal, "to maintain an ordinary income margin of 20% or more for 4 cumulative years," for 10 consecutive years.

(2) Overview of Consolidated Financial Conditions

The total assets for the current consolidated fiscal year were 743.410 billion yen, an increase of 89.323 billion yen compared to the end of the previous consolidated fiscal year. This was mainly due to an increase in current assets centered on cash and deposits and accounts receivable, and an increase in property, plant and equipment due to facility investments toward real estate and buildings for manufacturing purposes.

Liabilities were 155.285 billion yen, an increase of 6.098 billion yen compared to the previous fiscal year. This was mainly due to a decrease in electronically recorded payables and income taxes payable.

The total net assets were 588.125 billion yen, an increase of 95.422 billion yen compared to the end of the previous fiscal year.

As a result of this capital composition, each of the indices are as follows.

Return on assets (ROA) - 19.4% (1.1 point decrease compared to the previous fiscal year) Return on equities (ROE) - 25.1% (2.5 point decrease compared to the previous fiscal year)

Four-year cumulative return on risk assets (RORA) - 51.2% (0.4 point increase compared to the previous fiscal year)

Equity ratio - 78.9% (3.8 point increase compared to the end of the previous period)

(3) Overview of Consolidated Cash Flows

Net cash provided by operating activities was 133.543 billion yen. (increased by 10.9 percentage points compared to the previous fiscal year)

This was mainly due to the recording of profit before income taxes and depreciation expenses.

Net cash used in investing activities was 135.769 billion yen.

(increased by 99.7 percentage points compared to the previous fiscal year)

This was mainly due to payments into time deposits and acquisition of property, plant and equipment such as real estate and buildings as manufacturing plant facilities.

Net cash used in financing activities was 45.035 billion yen.

(increased by 18.0 percentage points compared to the previous fiscal year) This was mainly due to dividend payments.

As a result of these factors, the balance for cash and cash equivalents at the end of this period was 184.575 billion yen (44.591 billion yen decrease compared to the end of the previous fiscal year). Furthermore, reflecting the impact of cash outflows such as 100 billion yen into time deposits, free cash flow (the combined total of "Cash flows from operating activities" and "Cash flows from investing activities") was an outflow of 2.225 billion yen.

(4) Future outlook

The drastic and rapid fluctuations in customer willingness to invest make it difficult to predict demand in the semiconductor and electronic components industries. For this reason, DISCO business forecasts are only disclosed for one upcoming quarter.

The shipment amount forecast for the first quarter of the fiscal year ending on March 31, 2027 is 132.0 billion yen.

(Assumes an exchange rate of 1 US dollar = 157 yen)

‌6. Consolidated balance sheet

(Millions of yen)

As of

March 31, 2025

As of

March 31, 2026

Assets

Current assets

Cash and deposits

229,167

284,575

Notes receivable - trade

3,205

4,701

Accounts receivable - trade

39,972

52,776

Merchandise and finished goods

32,955

39,022

Work in process

44,762

43,107

Raw materials and supplies

61,285

59,196

Other

13,293

12,010

Allowance for doubtful accounts

(140)

(817)

Total current assets

424,502

494,572

Non-current assets

Property, plant and equipment

Buildings and structures, net

103,769

101,636

Machinery, equipment and vehicles, net

18,539

20,007

Tools, furniture and fixtures, net

1,942

2,222

Land

62,816

65,488

Construction in progress

16,946

33,885

Total property, plant and equipment

204,014

223,241

Intangible assets

246

250

Investments and other assets

Investment securities

3,510

3,944

Deferred tax assets

17,952

16,231

Retirement benefit asset

1,131

2,263

Other

2,729

2,906

Total investments and other assets

25,324

25,346

Total non-current assets

229,585

248,838

Total assets

654,087

743,410

(Millions of yen)

As of

March 31, 2025

As of

March 31, 2026

Liabilities

Current liabilities

Notes and accounts payable - trade

7,950

9,053

Electronically recorded obligations - operating

22,918

13,884

Income taxes payable

30,175

22,523

Contract liabilities

43,933

50,006

Provision for bonuses

41,639

44,229

Provision for product warranties

1,866

2,121

Other

11,909

12,638

Total current liabilities

160,392

154,458

Non-current liabilities

Asset retirement obligations

593

629

Other

397

197

Total non-current liabilities

991

826

Total liabilities

161,383

155,285

Net assets

Shareholders' equity

Share capital

22,089

22,359

Capital surplus

24,077

24,348

Retained earnings

431,718

521,924

Treasury shares

(47)

(48)

Total shareholders' equity

477,838

568,583

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

348

600

Foreign currency translation adjustment

13,023

16,698

Remeasurements of defined benefit plans

(45)

692

Total accumulated other comprehensive income

13,327

17,991

Share acquisition rights

1,188

1,184

Non-controlling interests

348

366

Total net assets

492,703

588,125

Total liabilities and net assets

654,087

743,410

‌7. Consolidated statement of (comprehensive) income

(Millions of yen)

Fiscal year ended

Fiscal year ended

31-Mar-25

31-Mar-26

Net sales

393,313

436,889

Cost of sales

115,743

130,412

Gross profit

277,570

306,477

Selling, general and administrative expenses

110,736

121,487

Operating profit

166,834

184,989

Non-operating income

Interest income

84

282

Share of profit of entities accounted for using equity

method

267

135

Foreign exchange gains

811

-

Rental income

255

404

Subsidy income

582

821

Income of compensation

-

255

Other

247

245

Total non-operating income

2,247

2,143

Non-operating expenses

Foreign exchange losses

-

1,212

Depreciation

119

975

Commission expenses

6

6

Other

12

2

Total non-operating expenses

138

2,197

Ordinary profit

168,943

184,936

Extraordinary income

Gain on sale of non-current assets

17

10

Gain on reversal of share acquisition rights

6

-

Total extraordinary income

23

10

Extraordinary losses

Loss on sale and retirement of non-current assets

67

138

Extra retirement payments

23

179

Demolition expenses

730

817

Total extraordinary losses

821

1,136

Profit before income taxes

168,146

183,811

Income taxes - current

47,860

46,752

Income taxes - deferred

(3,790)

1,455

Total income taxes

44,070

48,207

Profit

124,075

135,603

Profit attributable to

Profit attributable to owners of parent

123,891

135,521

Profit attributable to non-controlling interests

184

81

Other comprehensive income

Foreign currency translation adjustment

141

3,635

Remeasurements of defined benefit plans, net of tax

(54)

738

Share of other comprehensive income of entities

accounted for using equity method

(102)

299

Total other comprehensive income

(14)

4,672

Comprehensive income

124,061

140,276

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

123,907

140,184

Comprehensive income attributable to non-controlling

interests

153

91

‌8. Consolidated Statement of Cash Flows

(Millions of yen)

Fiscal year ended

Fiscal year ended

31-Mar-25

31-Mar-26

Cash flows from operating activities

Profit before income taxes

168,146

183,811

Depreciation

12,198

14,821

Demolition expenses

730

817

Share of loss (profit) of entities accounted for using equity

(267)

(135)

Increase (decrease) in allowance for doubtful accounts

30

639

Increase (decrease) in provision for bonuses

10,849

1,523

Increase (decrease) in provision for product warranties

263

141

Increase (decrease) in net defined benefit asset and

liability

(19)

(54)

Loss (gain) on sale and retirement of property, plant and

equipment

49

127

Subsidy income

(582)

(821)

Interest and dividend income

(84)

(282)

Decrease (increase) in trade receivables

2,874

(11,009)

Decrease (increase) in inventories

(24,596)

(207)

Increase (decrease) in trade payables

(4,795)

(10,694)

Increase (decrease) in accounts payable - other

(819)

1,555

Increase (decrease) in contract liabilities

(3,856)

1,566

Other, net

(2,892)

5,875

Subtotal

157,227

187,676

Subsidies received

782

886

Interest and dividends received

93

91

Income taxes refund (paid)

(37,738)

(55,110)

Net cash provided by (used in) operating activities

120,364

133,543

Cash flows from investing activities

Purchase of property, plant and equipment

(66,861)

(35,143)

Proceeds from sale of property, plant and equipment

22

27

Payments for demolition of non-current assets

(1,091)

(571)

Purchase of intangible assets

(69)

(84)

Long-term loan advances

(8)

(25)

Proceeds from collection of long-term loans receivable

39

44

Payments into time deposits

-

(100,000)

Other, net

(33)

(14)

Net cash provided by (used in) investing activities

(68,002)

(135,769)

Cash flows from financing activities

Proceeds from issuance of shares

323

349

Dividends paid

(38,467)

(45,309)

Dividends paid to non-controlling interests

-

(73)

Other, net

(5)

(1)

Net cash provided by (used in) financing activities

(38,150)

(45,035)

Effect of exchange rate change on cash and cash

(531)

2,669

Net increase (decrease) in cash and cash equivalents

13,680

(44,591)

Cash and cash equivalents at beginning of period

215,486

229,167

Cash and cash equivalents at end of period

229,167

184,575