Screen : Annual Report 2024 (Integrated Report) (A3)

        This year's report lays out the Group's medium- to long-

term value creation story aimed at enhancing corporate value

in line with the 10-year vision, focusing on the Management

Grand Design and our new medium-term management plan,

Value Up Further 2026.

        In compiling this report, we referred to the "International

Integrated Reporting Framework" created by the IFRS

Foundation and the "Guidance for Integrated Corporate

Disclosure and Company-Investor Dialogues for Collaborative

Value Creation" ("Guidance for Collaborative Value Creation")

from the Japanese Ministry of Economy, Trade and Industry

(METI). In addition, non-financial information is disclosed

with reference to the GRI Standards for international

sustainability reporting.

        Finally, detailed financial information is provided in the

Financial Section of the Annual Report 2024 and the Fact

Book; detailed non-financial information is provided in the

Sustainability Data Book; and an index of disclosure items

•The plans, strategies, and statements related to the outlook

for future results in this document are in accordance with

assumptions and beliefs determined by management based

on currently available information. However, it should

be noted that there is a possibility that actual results

could differ significantly due to such factors as social and

Introduction

1

About this report / Contents

3

Our values

At a glance

5

Who we are

Evolution of SCREEN's technologies

7

Innovation for a Sustainable World

9

Message from the CEO

11

Value creation by the SCREEN Group

17

Long-term strategy and

Invested capital

19

key performance metrics

Management Grand Design

21

Roadmap to realize the 10-year vision

Medium-term management plan

23

Sustainability medium-term plan

25

Business foundation enhancement strategies

Financial strategy Message from the CFO

29

Performance highlights

31

HR strategy

33

Employee wellness

39

Safety and health

40

Digital strategy / Facility strategy

41

is provided in the GRI Content Index. These materials are

available on our website.

economic conditions.

•All amounts shown in billions and millions of yen are

truncated. (Amounts shown in millions of yen for the fiscal

year ended March 31, 2022 and the preceding fiscal years

are rounded to the nearest million.)

Shared strategies for both business foundation and growth

Sustainability strategy

43

Environment

45

Business growth strategies

Portfolio strategy

51

Innovation management

52

Business overview: Summary / Value chain

53

Business growth strategy Semiconductor production equipment business (SPE)

55

value

●Corporate Governance Report

Annual Report

Social

(Integrated Report)

●Sustainability Data Book

Graphic arts equipment business (GA)

59

Display production equipment and coater business (FT)

61

PCB-related equipment business (PE)

63

New businesses

65

IP strategy

67

Message from the chairman of the Board / Interview with the outside directors /

Message from the new outside director

69

Governance

Corporate governance

73

Directors and corporate auditors / Skills matrix

79

Strengthening frameworks

for sound corporate growth

Risk management

81

Compliance

83

Relationship with suppliers

84

Dialogue with shareholders and investors / Basic information

85

Corporate data

Eleven-year key financial and non-financial data

87

Holding company:

SCREEN Holdings Co., Ltd.

Business operating companies:

SCREEN Semiconductor Solutions Co., Ltd., SCREEN Graphic Solutions Co., Ltd., SCREEN Finetech Solutions Co., Ltd., SCREEN PE Solutions Co., Ltd.,

and SCREEN Advanced System Solutions Co., Ltd.

Functional support company:

SCREEN IP Solutions Co., Ltd.

Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

Net sales

¥

504.9

billion

China

¥198.7 billion (39.4%)

Taiwan

¥57.9 billion (11.5%)

Korea

¥27.3 billion

(5.4%)

Other

¥15.8 billion

(3.1%)

SCREEN Graphic Solutions

SCREEN PE Solutions

POD equipment (digital printing)

CTP equipment (offset printing)

Direct patterning systems for solder resists

Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

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Surface processing

Modifying surfaces using

coating, cleaning,

and etching material

application devices

B

Direct patterning

Image processing

u

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s

Directly forming patterns

o

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Retouching, verifying,

i

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e

and images on substrates

and converting

s

using lithographic

image data

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and inkjet devices

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Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

AS

Advanced ICT solution business

WEB SCREEN AS group website

New businesses

ADPKG

Advanced semiconductor packaging-related equipmentWEB

ENERGY

Energy (hydrogen-related)WEB

LS

Life sciences

WEB

(cell-related systems, drug tablet-related systems, and medical devices)

Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

■ Net sales ●Operating margin

Consolidated results

20%

(%)

(Billions of yen)

18.6

19%

1,200

16.6

or above

or above

20

14.9

7.6

15

10

800

3.9

¥1.0 trillion

5

460.8

504.9

0

411.8

or more

400

323.2

320.3

¥1.8 trillion

or more

(cumulative)

0

Next

Next

2033 (Years ended March 31)

Value Up 2023

Value Up Further 2026

2020

2021

2022

2023

2024

2025-2027

plan

plan

Target

Target

        As we work to achieve our 10-year vision, we

have formulated a range of strategies to address our

material issues. The new medium-term management

plan identifies three key strategic areas: business growth

strategies, business foundation enhancement strategies,

        Moving on to the details of our investment plans,

our new medium-term management plan identifies two

main areas of focus.

        First, we will prioritize investments that enhance the

competitive advantage of our products. In particular, to

increase market share in our mainstay SPE business, it

is essential that we expand development and production

systems for our cleaning equipment in tandem with

technology trends in state-of-the-art semiconductors,

and we will strategically make the necessary investments

to make this happen. Clients outside Japan account for

over 80% of our SPE sales, and cutting-edge development

is primarily taking place overseas.

        While our current development operations are based

and shared strategies for both of these areas.

        The business growth strategies include portfolio

strategy, which expands the ROIC management we

implemented in the previous medium-term management

plan to product portfolio management in our existing

businesses. They also include business growth strategies

for the business operating companies, which focuses

on enhancing added value and market share in existing

businesses; innovation management, which promotes the

creation of new products and technologies in both new

and existing business areas; and an IP strategy, which is

linked to our corporate and business strategies.

        The business foundation enhancement strategies

consist of an HR strategy for developing organizations

in Japan, we will need to utilize overseas resources, and it

will be necessary to construct a framework to support

and individuals into solution creators; a financial strategy;

a digital strategy for raising productivity and improving

this. Two years ago, we experienced a difficult time when

our production capacity could not keep up with market

growth, and we were forced to keep clients waiting for

deliveries. To prevent this from happening again, we will

work to accurately identify market growth trends and

make appropriate capital investments.

        Second, we will invest in the cultivation of new

businesses. Looking back across SCREEN's history, the

constant thread running through it is the spirit of our

Founder's Motto, "Shi Ko Ten Kai," which calls upon us

to broaden our thoughts and horizons in the pursuit of

innovation. SCREEN's first foray into the electronics

industry was in 1975, preceded by the manufacture of

shadow masks for color TV CRTs. At the time, SPE was

just a small start-up business. It is worth remembering

that even this powerhouse business that now accounts for

80% of our Group sales was once a new venture.

        SCREEN has helped to transform the industry

by providing solutions that help solve issues faced by

society and our clients, and by turning these solutions

into businesses. To maintain business growth over the

security through digital transformation; and a facility

strategy. We will closely link each of these strategies with

our corporate strategy.

        The shared strategies include a sustainability

strategy, which continues and advances the initiatives

undertaken in Value Up 2023, along with a brand strategy

that takes a broader view of the SCREEN brand that we

have cultivated with our stakeholders, seeking to rebuild

a unified image encompassing the entire SCREEN Group.

        By instilling and advancing these strategies

throughout the Group, we hope to advance to our next

stage as a company and press on toward the vision that

we hold for ourselves.

Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

        During the period of Value Up 2023, we introduced

an engagement survey as a metric for efforts to improve

employee engagement. We believe that this survey can also

        These five attitudes were formulated following

numerous interviews with employees, including the

presidents of the group companies, while also taking

serve as a tool to analyze changes in employee mindsets,

and that it will suggest measures that management should

take. The positive response rate to this survey has been

adopted as a non-financial outcome indicator in our

Management Grand Design and a non-financial target

indicator in Value Up Further 2026. Raising this figure

will hinge on the success of the top-level management

and our HR strategy. I hope to see the effects of our efforts

reflected in the positive response rate.

        As we move forward, I believe that the future will

require the traditional centralized decision-making

process to be replaced by a more decentralized form of

management that allows the organization as a whole to

make quick decisions and act decisively. Our corporate

purpose-along with the Group employees who embody

our core values-will be key to making this possible.

To unlock their potential, we hope that each of our

employees will act in a way that is motivated by a desire

to be a solution creator. To make it easier to understand

what that looks like in practice, we have defined a set of

five attitudes expected of solution creators: "think deep,

and see through to the essence," "take ownership," "drive

innovation as a team," "try and try again with passion and

into account the anecdotes and discussions that emerged

during a series of roundtable workshops.* To help

employees understand and internalize these attitudes, we

have compiled them into a Solution Creator Handbook

that has been distributed in both digital and paper

formats. We also plan to add the attitudes as a behavioral

assessment metric for employees (from the second half of

the fiscal year ending March 31, 2025) in the hope that it

will encourage workplace communication between staff

members and their managers that bridges hierarchical

divides.

        With every member of the SCREEN Group acting as

a solution creator who generates the solutions that pave

the way to a better future, we will strive to continue to

earn the trust and support of our stakeholders over the

long term.

Long-term strategy and

Our values: Who we are

key performance metrics

Implementation strategies

Governance

Corporate data

SCREEN

Value

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SPE

▶p. 55

Semiconductor production

equipment

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GA

▶p. 59

Graphic arts equipment

FT

▶p. 61

PE

▶p. 63

1

Inputs

2

3

Provide solutions to

Develop business based on

issues affecting society

Make investments that will

strengths enhanced by core

Enhance corporate value through

technologies with

an ongoing cycle of creation

contribute to the outcome targets

the "Shi Ko Ten Kai" spirit

encompassing both the business

while taking into account materiality

foundation and business growth

5

Outputs

6

Outcomes

Achieve the targets of the

Achieve the outcome targets of the

medium-term management plan

Management Grand Design

Address the material issues*

SCREEN Group Annual Report 2024 18