Screen Holdings Co., Ltd TSE:7735

Screen : Annual Report 2024 (Integrated Report) (A4)

Published September 27, 2024 at 3:59 a.m. UTC

Source: MarketScreener

Annual Report 2024

Year ended March 31, 2024

S C R E E N G r o u p

A n n u a l R e p o r t

（ I n t e g r a t e d R e p o r t ）

Corporate Philosophy

Purpose

Innovation for a Sustainable World

Sharing the Future	Building a better future for society with commitment and integrity
Personal Development	Realizing everyone's full potential through trust and teamwork
e Pursuit of	Exploring technologies while integrating with innovative collaboration
Technological Excellence

Founder's Motto

Shi Ko Ten Kai Broadening everyone's thoughts and horizons for innovation

CSR Charter / Code of Conduct

Principles of action and standards that all Group employees should comply with

WEB CSR Charter / Code of Conduct

1 SCREEN Group Annual Report 2024

SCREEN Group Annual Report 2024 2

About this report

Editorial policy

Since 2010, the SCREEN Group has been issuing annual reports containing both financial and non-financial information for use as a tool to deepen dialogue with all stakeholders, including shareholders and investors.

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 is provided in the GRI Content Index. These materials are available on our website.

WEB GRI Content Index

Publication

September 2024 (previous version published in September 2023, issued once a year)

Reporting period

Fiscal year ended March 2024 (April 1, 2023 to March 31, 2024)

Note: Some of the information in this report relates to the fiscal year ended March 2023 and the fiscal year ending March 2025.

Scope of coverage

This report covers SCREEN Holdings Co., Ltd. (holding company) and its consolidated companies (as of March 31, 2024).

Note: Notes are provided when the scope of data presented differs from the above.

Disclaimer

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 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.)

Management involvement in creating this report

The publication of this report has been reported to the Board of Directors.

Position of this report

Summarized

value		●Corporate Governance Report

		Annual Report
Social			(Integrated Report)
	●Sustainability Data Book

Sustainability website

Detailed

●

Financial Reports

●

Fact Book

Economic value

3 SCREEN Group Annual Report 2024

Contents

This report was compiled in accordance with the following logical structure, with reference to the "Guidance for Collaborative Value Creation" from METI.

Our values

Who we are

Introduction	1
About this report / Contents	3
At a glance	5
Evolution of SCREEN's technologies	7
Innovation for a Sustainable World	9
Message from the CEO	11

Long-term strategy and key performance metrics

Roadmap to realize the 10-year vision

Value creation by the SCREEN Group	17
Invested capital	19
Management Grand Design	21
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

Implementation strategies

Basic strategies to enhance

the SCREEN Group's corporate value

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
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

Governance

Strengthening frameworks for sound corporate growth

Message from the chairman of the Board / Interview with the outside directors /
Message from the new outside director	69
Corporate governance	73
Directors and corporate auditors / Skills matrix	79
Risk management	81
Compliance	83
Relationship with suppliers	84

Corporate data

Dialogue with shareholders and investors / Basic information	85
Eleven-year key financial and non-financial data	87

The following abbreviations are sometimes used for business segments or company names in this report:
HD ＝ SCREEN Holdings Co., Ltd.
SPE ＝ Semiconductor production equipment business or SCREEN Semiconductor Solutions Co., Ltd. GA ＝ Graphic arts equipment business or SCREEN Graphic Solutions Co., Ltd.
FT ＝ Display production equipment and coater business or SCREEN Finetech Solutions Co., Ltd. PE ＝ PCB-related equipment business or SCREEN PE Solutions Co., Ltd.
AS ＝ Advanced ICT solution business or SCREEN Advanced System Solutions Co., Ltd. The names or abbreviations of the business segments are those used as of March 31, 2024.
The terms "holding company," "business operating company," and "functional support company" refer to the following seven companies.

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.

• Fiscal years shown herein are the accounting years ended March 31 of the year shown. For example, "fiscal year ended March 31, 2024," "FY2024/03," or "FY24/03" means the period from April 1, 2023 to March 31, 2024.

SCREEN Group Annual Report 2024 4

Our values: Who we are

At a glance (as of March 31, 2024)

Year founded	Net sales	Credit rating*
1868	¥504.9 billion	A	Outlook:

Stable

Year established

Operating margin

* Long-term issuer rating by the Japan Credit Rating Agency, Ltd. (JCR)

1943	18.6	%

		Market capitalization
	As of the end of March 2014 10 yrs As of the end of March 2024
	¥121.1billion	¥2,208.3billion

Consolidated subsidiaries

52companies

23 in Japan / 29 overseas

WEB Group Business & Organization

Consolidated net sales by destination (fiscal year ended	March 31, 2024)
Other	Japan

¥1.7 billion (0.3%)

Europe

¥33.4 billion (6.6%)

North America

¥82.0 billion (16.3%)

Net sales

504.9

billion

¥87.6 billion (17.4%)

Asia & Oceania

¥300.0 billion (59.4%)

China	¥198.7 billion (39.4%)
Taiwan	¥57.9 billion (11.5%)

Korea	¥27.3 billion	(5.4%)

Other	¥15.8 billion	(3.1%)

5 SCREEN Group Annual Report 2024

	Long-term strategy and
Our values: Who we are	key performance metrics	Implementation strategies	Governance	Corporate data

Consolidated net sales by segment (fiscal year ended

SPE Semiconductor production equipment

¥417.6 billion (82.7%)

March 31, 2024)

Manufacture and sale of cleaning equipment, including those that use the wet process to remove contaminants from wafer surfaces

Main products: Single wafer cleaning equipment, batch-type cleaning equipment, spin scrubbers, coater/developers, annealing equipment, inspection and measurement equipment, direct patterning system

GA Graphic arts equipment

¥47.7 billion (9.5%)

Manufacture and sale of equipment for printing on media used in daily life items

Main products: POD equipment, CTP equipment, RIP workow, fonts

Net sales

504.9

billion

PE PCB-related equipment

¥14.6 billion (2.9%)

Manufacture and sale of equipment

for direct circuit patterning and inspection

Main products: Direct patterning equipment, inspection equipment

Other / New businesses

¥1.5 billion (0.3%)

FT Display production equipment and coater

¥23.2 billion (4.6%)

Manufacture and sale of equipment for rapid and uniform coating

Main products: Coater/developers, wet etching equipment, coating equipment

Building on core group technologies to quickly establish businesses in new areas

Semiconductor advanced packaging-related equipment, energy (hydrogen), life science (cell-related products, drug tablet-related products, and medical devices)

Market share 2023*

No. 1 global market share categories

	SCREEN Semiconductor Solutions			SCREEN Finetech Solutions
Single wafer cleaning equipment	Batch-type cleaning equipment	Spin scrubbers	Coater/developers

Leading global share categories


SCREEN Graphic Solutions		SCREEN PE Solutions
POD equipment (digital printing)	CTP equipment (offset printing)	Direct patterning systems for solder resists

* Market shares are based on equipment category totals, including data from SCREEN. Note: Calender year.

SCREEN Group Annual Report 2024 6

Our values: Who we are

Evolution of SCREEN's technologies

From our start in manufacturing glass screens for photoengraving, over the decades, we have applied and built on our core technologies to create numerous world-first and Japan-first technologies, products, and services based on our Founder's Motto, "Shi Ko Ten Kai" (broadening everyone's thoughts and horizons for innovation).

Drawing on the technologies built up over SCREEN's long history and the Group's comprehensive strength, we will continue working to create new shared value and provide solutions to issues facing clients and the world.

Trajectory of value creation

1930s-	1950s-	1960s-	1970s-
Birth of the	Semiconductor cleaning
Origin of our core	Spun off from the	Pursued technological
original business	innovation and	semiconductor	equipment developed
technologies	production	leveraging display
	We applied glass screen	improvement
We succeeded in producing glass	We developed Japan's rst color	equipment business	manufacturing
manufacturing technologies
screens in Japan, helping	With the rise in demand for	equipment know-how
advance the country's lagging	(etching technologies) to	scanner in line with the	We developed the carrier-type
produce metal meshes in Japan.	digitalization of prepress	semiconductors, we applied our
printing prepress technologies.
These technologies were applied	operations and the rapid adoption	etching technology, one of our	surface processing equipment
Subsequently, we developed a
to the production of aperture	of color and offset printers. In the	core surface processing	for the rapidly growing LCD
process camera and secured a
grills and shadow masks for use	1970s, we released the best-selling	technologies, to develop the	market. This product garnered
position as a general
in CRT TVs, supporting the	Scanagraph SG-701, helping to	EMW-322 wafer etching machine.	the attention of U.S.
manufacturer of graphic arts
development of color TVs.	increase the quality of color	We automated our semiconductor	semiconductor manufacturers,
equipment.
2. Parts used in TV cameras	prepress operations and reduce the	manufacturing etching process,	leading us to develop our
1. Indispensable parts for reproducing color
	associated workload.	entering a new market.	automatic wet station for wafers.
intensity gradation in printed materials

Semiconductor production

Semiconductor production equipment business

equipment business (from 1975)

● 1975

Graphic arts equipment business

EMW-322 wafer etching machine launched

Display production

equipment and coater business

● 1976

Carrier-type surface processing equipment for

PCB-related equipment business

manufacturing LCDs launched

Display production equipment and

Other (including new businesses)

coater business (from 1976)

● 1977

RCP-351 roller coater developed

Electronic components business (1963 to 2005)

Genesis of image

● 1968

Aperture grill launched

processing technologies

Genesis of direct

PCB-relatedequipment business (from 1970)

● 1978

patterning technologies

● 1963 Shadow mask manufacturing started

Solder coater for printed

circuit boards developed

Genesis of surface

● 1955 Metal mesh for television cameras manufactured domestically

processing technologies

● 1952 C-8all-metal process camera developed

● 1964 Auto Graver electronic engraving machine developed

● 1981

● 1946 C-1 wood frame process camera developed

● 1966 Scanagraph I, Japan's rst color scanner, developed

Sigma Graph System 2000, Japan's rst

image processing system, developed

Printing and prepress-related (graphic arts) equipment business (from 1943)

	●	1934 Glass	screens manufactured domestically		● 1965		● 1974
			Scanagraph SG-701 direct scanner launched
		Ambassador C-59 overhead ultra-precision
	▲1943 Dainippon Screen Mfg. Co., Ltd. established
		camera developed
▲1868 Ishida Kyokuzan Printing Works founded				1980
1860	1943	1950	1960		1970
		● End of World War II			● 1964 Tokyo Olympics	● EXPO'70 OSAKA
Society and technology			● Start of black and white television broadcasting
		● Start of color television broadcasting

● Beginning of electrication of household products

7 SCREEN Group Annual Report 2024

	Long-term strategy and
Our values: Who we are	key performance metrics	Implementation strategies	Governance	Corporate data

on ge

Surface processing

Modifying surfaces using

coating, cleaning,

and etching material

application devices

Direct patterning

Image processing

Directly forming patterns

Retouching, verifying,

and images on substrates

and converting

using lithographic

image data

and inkjet devices

Innovation generation

Solution creation

Business structuring

The capability to create elemental technologies that can become the seeds for business ideas by building open collaborations with leading-edge clients, consortiums, business organizations, universities, and enterprises.

The capability to create solutions that can solve client issues based on marketing

The capability to undertake the technology, product, and service development needed to turn a solution into an actual business

1990s-

2000s-

2010s-

2023-

Secured a position leading

Aimed to achieve

Growth of existing

Innovation for a

innovation in the semiconductor

the top global ranking

businesses and expansion

into new elds

Sustainable World

industry during the transition to

To meet market needs for more

300 mm wafers

advanced cleaning system, in 2003, we

Amid the rapid adoption of

Under the redened corporate

launched the SU-3000 single wafer

smartphones, the PCB-related

As 300 mm wafers became the

philosophy, we aim to realize a

cleaning system, which enables

equipment business grew out of printing

international standard, mass production

prosperous and sustainable

thorough cleaning. Since then, the SU

prepress technology to meet the

of semiconductor production equipment

world by supporting

series has become one of SCREEN's

demand for denser and smaller PCBs,

was needed. SCREEN spearheaded this

mainstay products, boasting the top

culminating with the launch of the Ledia

technological innovation in the

development and commercialized the

market share worldwide.

5 direct patterning system. We also

industry and creating solutions

FC-3000 cleaning system for 300 mm

leveraged our core technologies to enter

that help solve issues facing our

wafers. In 2001, we won bulk orders for

new elds, such as life sciences, energy,

clients and the world.

mass production lines from major U.S.

and inspection & measurement.

manufacturers and established

the

global standard for cleaning.

● 1992

● 2003

● 2022

SU-3400 single wafer

WS-820 wet station

launched

SU-3000 single

wafer cleaning system launched

cleaning system launched

● 1988

● 1999

● 2010

● 2023

WSW-625 wet station launched

FC series batch-type cleaning system

launched

SU-3200 single wafer cleaning system launched

RF-200EX and RF-

300EX

coater/developers for

next-generation devices launched

Energy (from 2014)

● 2022

● 2016

● 2003

Mass production of fuel cell MEAs started

RT-350F fuel cell production

SK-1500G

coater/developer for 6th generation glass substrates

system developed

● 1989

● 2017

● 2024

Panel Spin 360 spinner for large glass

substrates launched

E series coater/developer

Lemotia coater/dryer system for advanced

semiconductor packages launched

launched

Advanced packages (from 2022)

● 2002

● 2012

● 2022

LeVina direct patterning system

for

PI-8000 automatic

optical inspection system launched

Ledia 5 direct patterning system for PCBs launched

next-generation patterning launched

● 2017

MIYABI 7 automatic optical

inspection system launched

Life sciences (from 2013)

● 2022

● 2013 Cell3iMager 3D cell scanner launched

● 1998

OrganPocket medical device for

● 2014 DP-i3000 inkjet printing system for drug

kidney transplantation launched

PlateRite 8000 CTP system launched

tablets launched

● 1993

● 2006

● 2015

TaigaSPACE,

Japan's rst integrated

Agreement for OEM manufacturing of Truepress Jet520

Truepress Jet520HD inkjet printing system launched

text-image processing system, launched

inkjet digital printing system reached

1990

2000

2010

2020

2024

● Great Hanshin-Awaji Earthquake

● Great East Japan Earthquake

Rapid growth of market for large at-screen televisions

● Adoption of Paris Agreement

● Global semiconductor shortage

at COP 21

Expansion of DTP

Widespread adoption of PCs and Internet

Expansion of smartphone and tablet market

WEB

SCREEN's Core Technologies

SCREEN Group Annual Report 2024 8

Our values: Who we are

Innovation for a Sustainable World

The SCREEN Group creates shared value that makes a difference, today and tomorrow.

As a solution creator, we seek to find answers to a wide range of issues facing global society and enrich lives through our technologies and products.

Here are some of the ways we do this.

SPE/GA/FT/PE

Homes, ofces

SPE/GA/PE FT

SPE/GA/FT/PE

SPE GA FT PE

We provide convenience and comfort through equipment for producing the semiconductors, printed circuit boards, and displays used in devices like laptops, smartphones, and tablets, as well as printing equipment and fonts for books and magazines.

Medical institutions, research facilities

Our inkjet tablet printing systems add value to drug tablets, helping the pharmaceutical industry improve tablet identiability and prevent medical errors due to tablet mix-ups. We also contribute to safety and health through our medical devices for the organ transplantation eld.

Hydrogen

ENERGY

MEA

ENERGY

We have successfully mass-produced membrane electrode assemblies (MEAs), a key component of fuel cells that signicantly determines their durability and performance. We are advancing efforts to offer solutions that utilize sustainable hydrogen energy technology, such as R&D of cell stacks, a component indispensable for hydrogen production via water electrolysis.

SPE/PE/ENERGY

ENERGY

SPE

9 SCREEN Group Annual Report 2024