SCREEN : Annual Report 2025 (Integrated Report) (A3)

Annual Report 2025

Ye ar e n de d March 31 , 202 5

S CR E EN 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）

‌Contents

Innovation for a Sustainable World

Contents 1

About this report / At a glance 3

To our valued stakeholders 5

Message from the CEO 7

Our heritage 11

The SCREEN Group's evolution 13

Value creation process 15

Message from the CFO 17

Management Grand Design 19

Medium-term Management Plan 21

Performance highlights 27

CSR Charter and Code of Conduct

Principles of action and standards for all group employees

WEB

CSR Charter and Code of Conduct

Technology-driven business development

Business overview: Summary / Value chain 29

Portfolio management:

Business portfolio management / Innovation management 31

Semiconductor production equipment business (SPE) 33

Graphic arts equipment business (GA) 37

Display production equipment and coater business (FT) 39

PCB-related equipment business (PE) 41

New businesses 43

IP strategy 45

ESG: Foundations of value creation

Sustainability strategy 47

HR strategy 53

Promoting social responsibility in the supply chain 59

Compliance 60

Risk management 61

Corporate governance 63

Message from the Chairman of the Board / Outside director perspectives 69

Directors and corporate auditors / Farewell message from the outgoing chairman

71

Corporate data

Dialogue with shareholders and investors / Basic information 73

Eleven-year key financial and non-financial data 75

• 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, 2025.

• 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.

SCREEN Advanced System Solutions Co., Ltd.

Functional support companies: SCREEN IP Solutions Co., Ltd.

1 SCREEN Group Annual Report 2025 SCREEN Group Annual Report 2025 2

Corporate Philosophy

Purpose

Innovation for a Sustainable World

Sharing the Future

Personal Development

e Pursuit of Technological Excellence

Building a better future for society with commitment and integrity

Realizing everyone's full potential through trust and teamwork

Exploring technologies while integrating with innovative collaboration

Founder's Motto

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

Market capitalization

¥974.7 bn

Group employees

6,415

‌About this report At a glance (as of March 31, 2025)

Editorial policy

The SCREEN Group prepares the Annual Report (Integrated Report) to serve as a tool for deepening communication with all stakeholders, including shareholders and investors.

• Main theme: Our purpose, "Innovation for a Sustainable World."

• Key content: The SCREEN Group is working toward the next stage of growth, aiming for net sales of ¥1 trillion or more in the fiscal year ending March 31, 2033. This report focuses on the key aspects of the thinking and motivations underlying the Group's growth strategies and initiatives for enhancing longterm corporate value in order to achieve this target.

• Supplemental information: Detailed information and related data not covered in this report is published in the Fact Book and other disclosure materials. Please refer to the "Website" section at the bottom of the page and use the link provided for each page.

• Key references used: "International Integrated Reporting Framework," IFRS Foundation; "Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation," the Japan Ministry of Economy, Trade and Industry (METI).

  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.

  Detailed

• 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.

Publication

September 2025 (previous version published in September 2024, issued once a year)

Reporting period

Fiscal year ended March 2025 (April 1, 2024 to March 31, 2025)

Notes: 1. Some of the information in this report relates to the fiscal year ended March 2024 and earlier as well as the fiscal year ending March 2026.

2. Fiscal years shown herein are the accounting years ended March 31 of the year shown.

For example, "fiscal year ended March 31, 2025," "FY2025/03," or "FY25/03" means the period from April 1, 2024 to March 31, 2025.

Scope of coverage

This report covers SCREEN Holdings Co., Ltd. (holding company) and its consolidated companies (as of March 31, 2025).

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

SCREEN's disclosure publications

• Corporate Governance Report

Annual Report (Integrated Report)

Financial reports●

●Sustainability Data Book Fact Book●

Year founded

1868

Year established

1943

Net sales

¥625.2 bn

Operating margin

21.7%

Consolidated net sales by destination (fiscal year ended March 31, 2025)

Asia & Oceania

¥434.7 bn (69.5%)

China Taiwan Korea Other

¥265.2 bn (42.4%)

¥113.4 bn (18.1%)

¥31.7 bn (5.1%)

¥24.3 bn (3.9%)

¥90.1 bn (14.4%)

¥2.5 bn (0.4%)

Net sales

¥625.2

bn

Europe

¥33.3 bn (5.3%)

North America

¥64.4 bn (10.3%)

Other

Consolidated net sales by segment (fiscal year ended March 31, 2025)

SPE Semiconductor production equipment

¥519.5 bn (83.1%)

Net sales

¥625.2

bn

Manufacture and sale of cleaning equipment, including equipment that uses wet processes 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 imaging systems

GA Graphic arts equipment

¥53.0 bn (8.5%)

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

Main products: POD equipment, CTP equipment, workflow systems, fonts

FT Display production equipment and coater

¥35.8 bn (5.7%)

Manufacture and sale of equipment for rapid and uniform coating

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

Credit rating*

A+

Outlook: Stable

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

Japan

PE PCB-related equipment

¥14.1 bn (2.3%)

Manufacture and sale of equipment for direct circuit imaging and inspection

Main products: Direct imaging equipment, inspection equipment

Other / New businesses

¥2.7 bn (0.4%)

Rapidly building on core group technologies to establish businesses in new areas

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

Website

Annual Report (Integrated Report)

Long-term value creation story

Fact Book

Detailed financial information

https://www.screen.co.jp/en

SCREEN Holdings official website

Management Grand Design / Medium-term Management Plan

Investors

Financial results

Financial Section

Business performance and quantitative data

Sustainability Data Book

Detailed non-financial information

/ IR news

/ IR calendar

Sustainability

GRI Content Index / ISO certification status Corporate Governance Report

2024 market share*

No. 1 global market share categories

SCREEN Semiconductor Solutions

Single wafer cleaning equipment Batch-type cleaning equipment

Spin scrubbers

SCREEN Graphic Solutions

SCREEN Finetech Solutions

POD equipment (roll-fed inkjet printing)

Coater/developers

Leading global market share categories

SCREEN Graphic Solutions

CTP equipment

SCREEN PE Solutions

Direct imaging systems for solder resists

* Market shares are based on equipment category totals, including data from SCREEN.

Note: Calendar year basis.

3 SCREEN Group Annual Report 2025 SCREEN Group Annual Report 2025 4

‌To our valued stakeholders

Message from the Chairman of the Board

Taking our corporate value to new heights

Toshio Hiroe

Representative Director Chairman of the Board

Masato Goto

Representative Director President

and Chief Executive Officer (CEO)

To begin, I would like to express my sincere gratitude to all our stakeholders for their continued support.

In the fiscal year ended March 31, 2025, the SCREEN Group achieved record highs in net sales, operating income, operating margin, and net income. We also surpassed our return on invested capital target with ROIC of 24.7%.* I am confident that the reforms we have put into place positioned us to achieve these results. We also maintained strong shareholder returns with dividends of ¥308 per share, our highest annual dividends to date. Moreover, taking into account market trends and the progress of our investment in growth, we completed approximately ¥30 billion in share buybacks on April 7, 2025. I believe the year marked a solid start to our medium-term management plan, Value Up Further 2026.

During my six years as CEO, we faced many challenges, including the impacts of the COVID-19 pandemic and U.S.-China trade friction. Despite these headwinds, the continuing support of our stakeholders made the growth we achieved possible, and for this I am deeply grateful.

Recent years have brought not only increasing geopolitical risks and heightened environmental awareness, but also the proliferation of generative AI and advancement of digital transformation, and the SCREEN Group finds itself in a business environment characterized by constant and rapid change. To continually provide the solutions our clients are looking for, it is vital that we ourselves continue to pursue new challenges, and that we continue to grow.

We have introduced ROIC as a performance indicator and frameworks including portfolio management, enabling operations that prioritize both profitability and efficiency. As a result, our financial position has improved, and the Japan Credit Rating Agency recently raised our credit rating to A+ (outlook: stable). We are currently in the process of reinvesting in new growth by establishing an R&D site outside Japan while expanding our technology development and production sites in Japan.

To effectively implement these investments so that they lead to new growth, this fiscal year we will review the Management Grand Design, which defines our

long-term vision, and formulate a new medium-term management plan the following fiscal year based on our conclusions. We will also enter the action planning and implementation phase for the ¥80 billion allocated for strategic investment in Value Up Further 2026.

We thought it essential that the new management team discuss and formulate future growth strategies themselves under the leadership of our new president, Masato Goto, and this prompted our decision to pass the baton to the new team this year. In my new role as representative director and chairman of the Board,

I will support President Goto while working to further enhance our corporate value.

To this end, I will also pursue reforms to strengthen corporate governance and raise the effectiveness of the Board of Directors. By providing effective oversight over important matters in our portfolio management,

corporate strategies including HR strategy, and business execution, the Board will strive to operate in a way

that continually enhances the corporate value of the SCREEN Group.

Under the new leadership team that took office in June, we will dedicate ourselves to achieving the

goals of Value Up Further 2026 as we work to take our corporate value to even greater heights. As always, we remain deeply grateful for your continued support.

* For details, see "Medium-term Management Plan" (p. 21).

5 SCREEN Group Annual Report 2025 SCREEN Group Annual Report 2025 6

‌Message from the CEO

Solid value in an era of change

I am pleased and proud to represent the SCREEN Group as its new president and CEO. I joined SCREEN Holdings, then known as Dainippon Screen Mfg.

Co., Ltd., in 1990. Since then, I have worked in the semiconductor production equipment (SPE) business, primarily in the manufacturing, field support, and engineering divisions. I was appointed SPE president in 2019, then moved to SCREEN Holdings in 2024 to help oversee the management of the SCREEN Group as head of corporate strategy.

SPE now accounts for more than 80% of total group sales, but I can still vividly recall how, when I joined the Company, it was just a small division. Its growth into the Group's mainstay business is largely due to the unwavering commitment of the employees who dedicate themselves to providing the fastest-and best-solutions to the issues faced by our clients.

That is why, as CEO, I will work to ensure that all employees are highly motivated and can feel a tangible sense of growth. As part of our growth strategy, we have redefined the SCREEN Group's core technologies. SCREEN has prided itself on being a technology-oriented company ever since its founding. Reminding ourselves of this identity, when our employees are called upon to articulate our core technologies and strengths, we would like them to be able to respond with confidence and clarity.

Going forward, as CEO, I will work to foster an environment where employees can realize their full potential as solution creators while steering SCREEN in a direction that enhances corporate value.

Enhancing human capital can take us to greater heights as a manufacturer

The business environment surrounding the SCREEN Group is changing at an unprecedented rate. The real-world implementation of digital and green transformation

and the dramatic increase in semiconductor demand precipitated by the advent of generative AI are expected to further intensify this trend and expand business opportunities for the SCREEN Group.

In times like this, it is imperative that we communicate with our colleagues to build strong relationships and expand our networks both within and outside our organization to promote effectiveness and efficiency.

I believe people are the source of all value creation.

This is a lesson I have learned first-hand. Working alongside diverse colleagues has shown me, time and again, the limits of what I can accomplish on my own. This principle will guide me as I leverage our experience, relationships with clients, strengths in business management, including technological development, and connections with semiconductor R&D institutes and industry groups to take our corporate value to even greater heights.

Shifts in government administrations around the world, trade friction, and regional conflicts have

heightened geopolitical risks and made the future harder to predict. As such, the SCREEN Group will conduct business in adherence with laws and regulations while staying well informed and prepared, promptly taking steps to mitigate risks and implement any other necessary measures. We also recognize that we must enhance the Company's sustainability in order to maintain growth over the long term. In recent years, we have seen a growing trend toward mandatory disclosure of sustainability information. As we continue to fulfill our responsibility as

a corporate citizen by actively participating in international initiatives and other programs, we will also scale up sustainability management connected to our business activities, allowing us to contribute to society through the creation of both economic and social value.

Masato Goto

Representative Director

President and Chief Executive Officer (CEO)

Translating our corporate purpose into action

The advance of AI is raising questions about the very value of human existence. I believe that our business activities will help to build a world that truly values humans.

Declining birthrates and aging populations are leading to a decline in the workforce in Japan and many other countries, so it is important to actively utilize AI in areas where it can help improve efficiency. But nothing can

replace real communication that connects people. That is why human-technology synergy is increasingly important.

The SCREEN Group is engaged in multiple, diverse businesses, including our mainstay SPE business and original printing-related business, but a common thread connecting all of them is the capability to contribute to the development of communication tools through technology.

This, I firmly believe, is where our corporate purpose lies. By providing solutions from multiple angles through our business activities, and connecting humans and technology, we aim to become indispensable to society.

To realize the corporate purpose of the SCREEN Group while achieving sustainable growth, it is essential that we efficiently utilize our limited resources and address a variety of challenges. Our most important management issues

lie in our business portfolio. As such, during the period of the current medium-term management plan, we will thoroughly review the exit criteria applied to existing and new businesses.

On the other hand, it is crucial to take timely and appropriate action to enhance our presence in the

advanced package sector and elsewhere while keeping pace with rapid industry growth driven by technological innovation.

This is also the year we will begin revising our Management Grand Design. We have the financial means to take major steps toward the future. We will redefine our long-term goals with a forward-looking mindset in terms of restructuring our business portfolio and expanding new businesses, considering a variety of options to achieve these goals, including M&A in strategic fields of interest.

Meanwhile, continuously maintaining and enhancing a sound and robust business foundation is essential. In the previous fiscal year, our accounting auditor informed us

of inappropriate timing of revenue recognition in the SPE business, which led to a delay in the submission of our interim securities report.

To prevent the recurrence of any such incident that could erode the trust of our stakeholders, we will advance data-driven management and preventive measures through the detection and flagging of irregular actions using our core IT system and the optimal allocation of DX resources.

As the competition for talent intensifies, we must also accurately identify human resource needs within the Group and strengthen our recruitment strategies. We will work to build a system where SCREEN Holdings and the business operating companies coordinate efforts to address the challenges we face and thereby enhance our business foundation.

To our valued shareholders and investors

In the SCREEN Group's long history, there have been periods of negative earnings. However, we have remained profitable for the past 11 years, and in the fiscal year ended March 31, 2025, we achieved record-high performance for the fourth consecutive year. I am proud that SCREEN now consistently generates profits and is capable of pursuing self-funded M&A. However, our reputation in the stock market is still weak in comparison with our competitors in the SPE business. We believe

that this reflects a failure on our part to fully dispel concerns about our performance in market downcycles, along with the large perception gap that exists between

the capital market and SCREEN with regard to our involvement in multiple businesses. In addition, I see room for improvement in our profit margins and operational efficiency. First, by performing at a level equivalent to our competitors over the long term, we can demonstrate to the market that our SPE business is capable of sustained growth even when market conditions are unfavorable.

Furthermore, we must earn the trust and support of shareholders and investors by ensuring that they have a clear understanding of our business portfolio and the future direction and prospects of the SCREEN Group.

Finally, we will need to enhance our brand presence and improve corporate visibility.

I am naturally inclined to be positive, so I see these challenges as opportunities for future growth. SCREEN is now poised for significant growth over the long term, so this is the ideal time for us to embrace challenges with our employees and aim for greater heights as a united group.

SCREEN's first Birdman Rally

President Goto's online radio talk show "FM510"

Interested members of SCREEN came together to enter the Japan International Birdman Rally with a common passion: "to make a shared dream come true through handcrafting." I served as the team's general director.

Although it was our first time entering the rally,

we passed the screening and got to participate in the actual competition.

Through this program, I speak directly to our group employees, sharing messages and stories in my

own voice.

Until now, my position has offered me only limited opportunities for direct communication with our shareholders and investors. Now, in my new position, I look forward to engaging in dialogue that will foster

greater mutual understanding. We appreciate your continued support and encouragement as we strive to more fully realize our corporate purpose and future vision through our business activities.

Cultivated imaging and patterning technology through the development of a variety of graphic arts equipment to meet the needs of rapid digitization

Imaging and patterning

Surface control and processing technology grew out of the etching technologies crucial to glass screen manufacturing

Surface control and processing

• Mass production of aperture grills for Trinitron televisions began (1968)

• Production of shadow masks for color TVs began (1963)

Released various equipment types while accelerating system integration

1964

Applying the "Shi Ko Ten Kai" spirit to realize the long-held dream of global expansion

• Auto Graver electronic engraving machine developed

1946

The glass screen business was successful and stable, but never complacent, SCREEN pushed further

• Overcame postwar turmoil and parts shortages to develop SCREEN's first wooden process camera, aiming to become an equipment manufacturer

1943

Dainippon Screen Mfg. Co., Ltd. (now SCREEN Holdings) established

• Amid the difficulties caused by World War II, the R&D division of Ishida Kyokuzan Printing Co., Ltd. split off to start a new chapter as Dainippon Screen Mfg.

Co., Ltd.

1934

First to domestically manufacture glass screens, our namesake

• Produced the first Japan-made glass screens for photoengraving,

driven by a belief in the business's national significance

1868

Founded in Kyoto amid the dramatic changes of the Meiji Restoration

• SCREEN's predecessor Ishida Kyokuzan Printing Works founded at the dawn of Japan's industrial era

(transitioned to a stock company, Ishida Kyokuzan Printing Co., Ltd., in 1934)

‌Our heritage

Building a resilient corporate foundation to support business growth

To remain competitive in industries highly sensitive to fluctuations in markets and client investment, the SCREEN Group has continuously enhanced its flexibility and resilience. Through strategic outsourcing and production process revisions, the Group has strengthened its financial base to better adapt to changing conditions.

Operating income and employees (consolidated)

SCREEN's core technologies redefined in 2025

System control

AI

Wet cleaning

Data analysis

Core technologies

Etching

Image recognition, inspection

Surface control Imaging and and

processing patterning

Drying Light

control

System integration

Annealing

Inkjet

Coating

Substrate & web handling

SCREEN's predecessor, Ishida Kyokuzan Printing Works, succeeded at domestically producing glass screens for photographic reproduction in 1934. The state-of-the-art etching technology that made this possible subsequently gave rise to a range of surface control and processing technologies, which comprise one of our core technology fields.

(Billions of yen)

140

130

120

110

100

90

80

70

60

50

40

30

20

10

0

-10

-20

Operating income

Employees

Adopted ROIC as a key indicator to orient management toward profitability and efficiency. Greatly improved net sales per employee through efficient resource and organizational allocation.

FY2000/03 FY2003/03 FY2009/03

Major management structure reforms, Internal company system adopted Far-reaching management including cutting the number of to help each business generate a restructuring, including emergency directors and adopting an executive profit independently amid drastic measures to restructure businesses officer system operating environmental changes and lower the break-even point

Semiconductor downturn 2008 global financial crisis COVID-19 pandemic

FY1995/03

FY2025/03

(Persons)

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Glass screens soon became the Company's cash cow, but, not complacent, we kept moving forward. With the aim of becoming an all-around manufacturer of prepress machines, we released a series of graphic arts equipment. This became the base of system integration, which underlies our thinking to this day.

Moreover, through the development of an electronic engraver for halftone printing, which became our first machine to be used for electronic circuit formation, we built up know-how related to automatic color tone fine-tuning. This became the origin of our second core technology field, imaging and patterning, which grew exponentially with digitization in the later decades.

In this way, we have built on our track record of innovation that started with glass screens, based on the founder's motto, "Shi Ko Ten Kai" (broadening everyone's thoughts and horizons for innovation). We continue to research numerous elemental technologies across our two core technology fields. And, leveraging our system integration capabilities cultivated over the years, we are developing a range of solutions in existing and new business fields.

The SCREEN Group's evolution

To continuously deliver value to society and industry, the SCREEN Group has long pursued new endeavors in fields connected to its existing businesses.

This basic stance, summed up in the "Shi Ko Ten Kai" spirit, is firmly embedded in every aspect of SCREEN's management and businesses.

4

3

Calligraphy of "Shi Ko Ten Kai" by the second president of Dainippon Screen Mfg. Co., Ltd., Tokujiro Ishida

1

2

■ SPE Semiconductor production equipment business

■ GA Graphic arts equipment business

■ FT Display production equipment and coater business

■ PE

PCB-related equipment business

A lithographic printing plate (a stock certificate)

• Other (including new businesses)

Surface

control and

processing

Imaging

and

patterning

SPE

1868

Founded

1943

GA

Graphic arts equipment

1963-2005

Electronic components business

1. ‌Applying core technologies to meet emerging needs for printed circuit boards

   In the latter half of the 1960s, the evolution of semiconductors led to rapidly increasing demand and, in turn, growing needs for high-precision, high-productivity automatic drafters to create mask patterns for printed circuit boards. Seeking to address these needs, SCREEN applied its technologies developed in the GA business to enter the printed circuit board industry.

   Leveraging established technologies and expertise, we are boldly moving into new business that shape both today and tomorrow

2. Betting the survival of the GA business to seize shifting currents in the changing printing industry

   2014

   2022

   New

   Advanced packaging

   New

   As the emergence of DTP¹ sent shock waves through the industry, SCREEN's founding business in photoengraving faced a crisis. To regain lost ground, SCREEN put all its efforts into developing and releasing products for digitization in such categories as thermal CTP² and workflow systems.

   Building on a CTP lineup boasting the top global market share to pioneer the field of digital printing

3. Successful business transition within the display field

   1975

   Semiconductor production equipment

   1976

   FT

   1970

   Display production equipment

   PE

   PCB-related equipment

   With the emergence of LCD and other

   thin-panel displays, demand for CRT displays fell rapidly. The shadow mask business-a major earner since the 1960s-slipped into obsolescence, but, based on technologies and expertise built up over the decades, SCREEN successfully expanded its business in the display panel field, first entered in the

   mid-1970s.

   Leading the industry in increasing both display size and resolution

   FY2006/03

4. Shifting to single wafer cleaning equipment, anticipating further miniaturization

Front-end processes require superior process performance. Anticipating that single wafer cleaning needs would grow alongside further chip miniaturization, SCREEN took its first steps in developing next-generation cleaning equipment.

Released the SU series single wafer cleaning equipment, earning the top global market share and contributing to the development and production of leading-edge semiconductors

Strengths

Latter half of the 1990s

New

Energy

1995

and coater

2013

Life sciences

1991

Building on long-standing relationships of trust with our clients, we continue to deliver competitive products and services through:

• The combined strength of our brand-centered on technological expertise including intellectual property-and the people who bring it to life

• The creation of solutions to social challenges through collaboration with external resources

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Core technologies

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System integration

Fostering open collaboration with industry, government, and

TaigaSPACE, Japan's first integrated

Genasett 3100, the world's fastest

(Bn of yen)

80

70

60

Net sales

Exited shadow mask business

academic partners, including leading-edge clients and consortiums, while driving innovation through united efforts across engineering, production, sales, and management

SCREEN broke into the printed circuit board industry with the AD-401 ultra-precision automatic drafter

text-image processing system

The PlateRite 8000 broke through numerous technological hurdles

film recorder

1. DTP: Desktop publishing.

   A technology that gained widespread use in the early 1990s.

2. CTP: Computer to plate

50 LCD production equipment business

40 Shadow mask business

30

20

10

0

FY1981/03 FY2006/03

The AQUASPIN MP-3000

changed the flow of cleaning equipment for 300 mm wafers

The SU-3000 single wafer cleaning system enables the flexible combination of processing units

Developing ideas generated through market-driven innovation into solutions that have the potential to solve social issues and resonate with clients

Cultivating solutions into full-fledged businesses through focused development of technology, products, and services

13 SCREEN Group Annual Report 2025 SCREEN Group Annual Report 2025 14

Corporate purpose

Innovation for a Sustainable World

Founder's motto

Shi Ko Ten Kai

‌Innovation for a Sustainable World

SCREEN

Value

Value creation process

Our 10-year vision

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Inputs

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Core technologies

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System integration

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Pursuit of CSV

Solution creation

PE

s

Medium-term Management Plan

Be a solution creator

Becoming what the world needs, together with our partners

Note: The Management Grand Design was launched in the fiscal year ended March 31, 2024; the 10-year vision refers to the 10 years ending March 31, 2033.

Economic value

Net sales

a

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Financial

Manufactured

Intellectual

Semiconductor production equipment

PCB-related equipment

Value Up Further 2026

¥1 tn or more

n

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B

capital

capital

capital

GA New

▶ p. 43

Financial targets

Operating margin

Human capital

Social and relationship capital

Natural capital

Graphic arts equipment

FT

Display production equipment and coater

businesses

• 3-yr total net sales: ¥1.8 tn or more

• 3-yr operating margin: 19% or above

• ROIC: 15% or above

• Shareholder returns:

Dividend payout ratio of 30% or above

(We completed approx. ¥30 billion in share buybacks in April 2025 and will continue to implement buybacks flexibly, depending on the progress of our growth investments)

Note: The above figures are predicated on organic growth.

Non-financial targets

20% or above

Social value

Client feedback Client feedback

Business foundation enhancement strategies, shared strategies, business growth strategies

Inputs (FY2025/03) Outputs (FY2025/03)

Note: Unless otherwise stated, the figures provided are based on indicator data available for disclosure within the scope of consolidation.

Innovation for a Sustainable World

Message from the CFO

Building a strong financial foundation and accelerating growth investment

Yoichi Kondo

Member of the Board Executive Vice President Chief Financial Officer (CFO)

Innovation for a Sustainable World

Technology-driven business development

ESG: Foundations of value creation

Corporate data

Review of FY2025/03

In the fiscal year ended March 31, 2025, SCREEN achieved record high sales and profit for a fourth consecutive year. The semiconductor production equipment (SPE) business drove performance, buoyed by the expanding use of generative AI and advances in digital transformation (DX). The display production equipment and coater business (FT) also contributed to the year-on-year improvement.

SCREEN's progress in the first year of Value Up Further 2026, our medium-term management plan, is shown in the table below.

Looking at sales, growth in the SPE business outpaced that of the wafer fab equipment market, with our mainstay single wafer cleaning equipment making significant market share gains. As a result, we made solid progress toward our three-year cumulative net sales

Progress toward the Value Up Further 2026 financial targets

Cumulative

net sales ¥1.8 tn or more

3-yr operating

margin 19% or above

ROIC

15% or above

Consolidated

target. The operating margin came to 21.7%, and ROIC to 24.7%, both exceeding our cumulative three-year targets. These indicators are forecast to be slightly lower in the plan's second year, as we plan to accelerate investment in growth, mainly in research and development, in order to expand our market share. Nevertheless, the plan is off to a good start in terms of profitability.

On the financial side, we maintained our net cash balance by securing free cash flow, even as we advanced measures to strengthen our recession resistance, such as shortening payment terms. In addition, we built up our equity with profit generated, and in March 2025, the Japan Credit Rating Agency upgraded our long-term issuer rating from A (outlook: stable) to A+ (outlook: stable).

While the fiscal year ended March 31, 2025 marked a strong start to Value Up Further 2026 in terms of our business performance and finances, during the year,

inappropriate accounting treatment of revenue recognition was discovered at a SCREEN subsidiary, resulting in the delayed submission of our interim securities report. Please allow me to apologize once again for the concern and confusion this caused our stakeholders. We deeply regret that we allowed inadequacies in internal control to emerge amid our rapid expansion in business scale and personnel. We are currently taking corrective actions based on the recurrence prevention measures announced at the end of February 2025, and the accounting auditor's audit of the year-end results has been completed without incident.

Within the SPE business, we implemented measures

to clarify related rules and educate employees in the fiscal

Cash allocation plan and shareholder returns We expect approximately ¥360 billion in investment capital to be available over the period of Value Up Further 2026. Aiming for further growth, we plan to

allocate approximately ¥110 billion of this to research and development, ¥100 billion to capital expenditures, ¥80 billion to strategic investments, including M&A, and ¥70 billion to dividends and other forms of shareholder returns.

Our policy under Value Up Further 2026 is to maintain a consolidated dividend payout ratio of 30% or above with flexible share buybacks depending on progress in growth investment. Based on this policy, for the fiscal year ended March 31, 2025, we paid record-high dividends

of ¥308 per share and implemented share buybacks totaling approximately ¥30 billion. We decided to execute these returns based on considerations of our share

price and financial position, particularly as the overall scale of investment in growth during the medium-term management plan had come into focus, including the construction of the S3-6 factory at the Hikone Site

completed in February 2025, as well as the plan to acquire industrial land in Yasu, Shiga Prefecture, and establish an R&D site outside Japan. Under Value Up Further 2026,

as we focus on investment in growth, we plan to stick with our current policy on shareholder returns, but we will flexibly consider share buybacks in light of progress in growth investment, our share price, and our financial standing.

The industrial land in Yasu and the R&D site, in particular, are important investments in future organic growth. At the same time, given the rapid pace of innovation in the electronics industry, acquiring the technologies of other companies will also be important, so we will continue to explore opportunities for strategic investment, including M&A.

To enhance corporate value, improving the cost of sales ratio along with product competitiveness will be crucial. As such, we will continue to invest in R&D and make aggressive investments in IT. We are currently in the process of updating the SPE business's ERP system. By utilizing the various databases this will provide in management accounting, along with DX and AI, we aim to improve operational efficiency.

Cross-shareholdings

As of March 31, 2025, the SCREEN Group holds approximately ¥45.3 billion in investment securities. Every year, the Board of Directors examines the significance of each of these shareholdings and decides how to handle them with an eye to reducing our total holdings.

are found to be less than our WACC,2 that stock is then more closely considered as a candidate for reduction. In the fiscal year ended March 31, 2025, we discussed our cross-shareholdings with investees and reduced holdings in four companies. Since the enactment of Japan's Corporate Governance Code in 2015, we have divested shares of

41 investees, totaling ¥9.2 billion. In addition, in our discussions with investees, our policy is to not oppose their divestment from SCREEN if they indicate their intention to do so. Going forward, we will continue efforts to reduce cross-shareholdings.

1. WACC: Weighted average cost of capital

   Cash allocation under Value Up Further 2026

   FY2025/03-FY2027/03

   Investment capital

   (Operating CF

   + R&D expense allocation

   + cash on hand)

   ¥360 bn

on the degree of progress in investment in growth.

Pushing forward with our stakeholders

As I mentioned, our medium-term management plan, Value Up Further 2026, got off to a strong start in its first year. Going forward, SCREEN's business environment is expected to remain unclear, affected by geopolitical risks, trade frictions, risks of natural disasters, and changes in industrial structures as IT evolves. Amid these conditions, we will likely encounter challenges and opportunities that have no precedent in our past experience. It will therefore be crucial to avoid getting wrapped up in preconceptions or conventional wisdom, but approach management decisions with a clear head while maintaining an appropriate financial cushion against risk. Under the leadership of Masato Goto, our new president and CEO, we will continue working to enhance our risk responsiveness and strengthen our financial position so that we can respond swiftly to changes in social and

business conditions. We ask for your continued support in

Shareholder

returns

dividend payout

ratio: 30% or above1

year ended March 31, 2025. This year, top management is taking the lead in expanding these initiatives group-wide

Specifically, we comprehensively review the significance of holdings from both quantitative and

these endeavors.

Note: The above figures are predicated on organic growth.

1. Flexible share buybacks will be implemented depending on the degree of progress in investment in growth.

to ensure thorough and correct awareness of the rules and compliance.

qualitative perspectives. If our dividend income and returns from transactional synergies for a given stock

‌Innovation for a Sustainable World

Management Grand Design: 10-year vision for enhancing corporate value

Note: The Management Grand Design was launched in the fiscal year ended March 31, 2024; the 10-year vision refers to the 10 years ending March 31, 2033.

Under the Management Grand Design, we aim to address issues facing society through our business, leading to the creation of new value (CSV)-comprising both social and economic value-and thereby further enhance our corporate value. The cash generated through this process is reinvested in business growth and business foundation enhancement to drive further

Technology-driven business development

Innovation for a Sustainable World

Material issues and outcome targets

ESG: Foundations of value creation

Corporate data

Outline of the Management Grand Design

Our

10-year vision

Solution creator

Becoming what the world needs, together with our partners

Megatrends for SCREEN DX (digital transformation) GX (green transformation)

Well-being (physical & mental health, happiness)

Multipolarization of the world economy

Outcomes Outcome indicators

Financial targets Non-financial targets

Strategy Strategies for boosting corporate value

Business foundation enhancement

Shared strategies for both business foundation and growth Business growth

Materiality

Priorities for SCREEN

Providing new value to society and people Reducing environmental impact Encouraging personal growth of each employee

Continuously enhancing business foundations

Policy

Policy for tackling the material issues

Net sales

¥1 tn

or more

Operating margin

20%

or above

innovation and provide solutions to clients.

To realize our 10-year vision, we have identified four material issues that SCREEN's management needs to address. In addition, we have set outcome targets (financial and non-financial targets for the fiscal year

ending March 2033) to measure the value the Company aims to demonstrate to society as we come closer to the 10-year vision.

Process for identifying material issues

We began the process of revising the Management Grand Design by assessing current megatrends and the underlying major socioeconomic currents and identified global issues that may impact our operations. From these, we shortlisted possible material issues. We then evaluated the candidates and determined their order of priority,

taking into account international initiatives, such as the UN Global Compact and RBA,* as well as communication with our stakeholders. In addition, we evaluated them in terms of both their importance to society and to the Group to

determine their overall materiality. Through this process, we identified the key material issues that SCREEN's management must address to realize the 10-year vision. These issues have been used as a basis to develop the specific strategies, targets, and measures of the medium-term management plan, and we will continue to revise them as necessary in response to changes in the business environment.

* RBA: Responsible Business Alliance. An alliance encompassing the electronic device, IT, toy, and automotive industries that has established a code of conduct related to labor, safety and health, environment, ethics, and management systems.

1.

Selection and assessment of candidate material issues

2.

Evaluation of priority and validity

3.

Identification of material issues

4.

Board deliberation and approval

Major socioeconomic trends

Demographic/economic trends

* Growth of emerging countries, aging populations

Social trends

* SDGs, DX, Generation Z's values

Post SDGs

* Changes in megatrends due to new social and economic demands

Energy transformation

* Toward carbon neutrality (policies, transition, competition, investments)

Intensified economic security concerns and resource wars

* Increased geopolitical risks, deglobalization

Technology

* Next-generation communication technologies (B5G/6G) and computing, etc.

Megatrends for SCREEN

1 DX

(digital transformation)

Opportunities

2 GX

(green transformation)

Opportunities

3 Well-being

(physical & mental health, Opportunities

happiness)

4 Multipolarization of the world economy

Opportunities

Risks

Opportunities, risks, and our response

The transformation of industrial structures through digitalization will provide business opportunities. The impact will be particularly large in the area of electronics, which supports DX, and SCREEN views this as a driver of growth.

* The digitalization of management and manufacturing will transform the way we work.

The need to reduce environmental impact to realize a sustainable society will be an increasingly important area of corporate social responsibility. This will create business opportunities in energy and eco-friendly products.

* SCREEN will continue to promote environmentally friendly manufacturing.

Mental and physical well-being will increase in importance. SCREEN believes that enhancing employees' quality of life is an important source of the value of corporations in society.

* SCREEN will continuously promote the health and wellness of its employees.

Further trade barriers are forecast for the world economy. SCREEN views this as both a risk and opportunity in light of its global businesses.

* SCREEN will pay close attention to these trends and develop business in line with relevant regulations.

Note: For details, see "Medium-term Management Plan" (p. 21).

1. For details about Super Green Products, see "Sustainability strategy" (p. 49).

2. Self-assessed work performance over the past four weeks, based on the assumption that 100% represents performance when unaffected by illness or injury

   Supporting the achievement of the Sustainable Development Goals As part of efforts to achieve the 10-year vision included in the Management Grand Design, the SCREEN Group has designated 15 of the SDGs established by the United Nations as key targets to work toward through its business.

   Furthermore, under Sustainable Value 2026, our medium-term plan for enhancing social value, we have designated specific aims for addressing environmental (E), social (S), and governance (G) issues and are implementing initiatives accordingly. In addition, the Group engages in ongoing efforts aligned with the UN Global Compact and international initiatives related

   to climate change, such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Science Based Targets initiative (SBTi).

Innovation for a Sustainable World

Technology-driven business development

ESG: Foundations of value creation

Corporate data

Progress toward the plan's financial targets

Main initiatives and their progress (FY2025/03)

(As of July 25, 2025)

Note: The above figures are predicated on organic growth.

SPE ▶p. 33 / GA ▶p. 37 / FT ▶p. 39 / PE ▶p. 41

SPE ▶p. 33 / GA ▶p. 37 / FT ▶p. 39 / PE ▶p. 41

Portfolio management ▶p. 31 / New businesses ▶p. 43

Value chain ▶p. 30 / SPE ▶p. 33 / GA ▶p. 37 / FT ▶p. 39 / PE ▶p. 41 / New businesses ▶p. 43

Message from the CFO ▶p. 17 / Sustainability strategy ▶p. 47 / HR strategy ▶p. 53 / Corporate governance ▶p. 63

Key issues

Basic concept and main initiatives

The three years covered by Value Up Further 2026 are an investment phase, building momentum for new growth while maintaining the financial foundation established under the previous plan as we work toward the 10-year vision target of ¥1 trillion in net sales

• Portfolio strategy

• Business growth strategy

• Innovation management

• IP strategy

• Sustainability strategy

• Brand strategy

Business growth

Business foundation enhancement

• HR strategy

• Financial strategy

• Digital strategy

• Facility strategy

Innovation for a Sustainable World

Medium-term Management Plan: Value Up Further 2026

Concept

Further enhance our presence through the growth of each individual and by enhancing competitiveness as a solution creator

‌Material issues and the non-financial targets of Value Up Further 2026

Based on the non-financial outcome targets of the Management Grand Design, our long-term vision, we have designated final-year outputs that we aim for under our medium-term management plan. While continuously monitoring and assessing

progress toward our various targets, we are working to address our material issues. For details about our specific strategies and targets, please refer to the relevant pages of this report or our website.

Medium-term Management Plan

Main final-year targets, outputs (strategy KPIs), and key issues Main initiatives FY2025/03 results and future outlook Related pages and webpages

Reinforced product portfolio management at business operating companies

• Creation of new businesses that generate ¥10 billion in net sales

• Profitability in the advanced packaging business

• Profitability in hydrogen-related business

Reinforce green invention

Create green inventions that contribute to environmental impact reduction

Provide products with excellent energy-saving performance

Sales from Super Green Products: 3%

70% reduction compared with FY2019/03 (absolute volume) 15,170 metric tons CO2e

48% reduction compared with FY2019/03 (per unit of gross profit)

13.5 metric tons CO2e/million yen

Reduce the weight of waste generated

8% reduction compared with FY2019/03 (per unit of net sales)

4.36 kg/million yen

8% reduction compared with FY2019/03 (per unit of net sales) 367 kWh/million yen

Realize societies in harmony with nature

Reinforce biodiversity-related initiatives

Promote effective water use

Water withdrawal: 8% reduction compared with FY2019/03 (per unit of net sales)

5.31 m3/million yen

Comply with product regulations

Virgin PFAS usage: 15% reduction compared with FY2024/03

Occupational accidents: 33% reduction compared with FY2024/03 (26 or fewer1)

1. Revised the scope to occupational accidents where company negligence is recognized as a cause

   Promote employee wellness

   Presenteeism: 81%

   Promoting the employment of people with disabilities

   Employees with disabilities: 2.7% or above

   Increase the number of female employees and the rate of female employees in management positions

   • Women among new graduate hires: 20% or above

   • Management positions held by women: 5% or above

   • Raise the employee engagement survey positive response rate: 70% or above2

   • Global implementation of the engagement survey

2. Consolidated-basis final-year target

   Note: The items marked with are key issues under Sustainable Value 2026.

   • Increase market share by enhancing added value

   • Launch new technologies and products and strengthening sales capabilities

   • Support for existing businesses

     Creation and acquisition of new businesses

   • IP portfolio management

   • Global IP strategy

   • AI-related/green invention enhancement

   • Promote the creation and rights acquisition of green inventions through business activities

     Promote the adaptation of mainstay products into Super Green Products

     Reduce GHG emissions from business activities (Scope 1+2)

   • Advance the use of renewable energy at facilities

     Reduce GHG emissions from the use of sold products (Scope 3 category 11)

   • Consider solar power generation and power storage equipment, etc.

     Develop businesses with high added environmental value

   • Expand efforts to turn waste materials into valuable materials company-wide

     Reduce energy usage in business activities

   • Continue to reduce waste generated

     Continue advancing the adoption of energy-saving facilities

   • Implement employee education and external communications

   • Cooperate with local communities

     Reinforce water resource management in product development and manufacturing

   • Make effective use of recycled materials

     Prevent occupational accidents

   • Reinforce coordination in the supply chain

     Promote data-driven measures and safety education for employees to change mindsets

   • Strive toward stress-free workplaces

   • Coordinate with work style reform and other personnel measures

     Expand Parte (in-house organization for the employment of people with disabilities)

   • Offer discussion sessions for female students in STEM fields and expand internship opportunities

   • Improve work environments to be accommodating of women in management positions and support their promotion

   Align HR strategy with issues identified through surveys and take steps accordingly; confirm their effects with subsequent surveys in a PDCA cycle to raise scores

   • Released 4 new products

   • Market share in SPE and other businesses was solid

   • Established the Strategic Investment Department to enhance considerations of M&A and other strategic investment

   • Decided to establish an R&D site outside Japan

   • Brought 2 companies with relevant technologies into the Group

   • Established a hydrogen-related device manufacturing site at the new S3-6 factory

   • Decided to acquire land in Yasu, Shiga Prefecture, for the expansion of new businesses

   • The number of patents held (including AI-related and green inventions and global patent holdings) exceeded the target

   • Improved patent quality as evaluated by objective IP indicators

   • Sales from Super Green Products: 0.6%

   • Advanced the development and sales expansion of Super Green Products

   • 56.6% reduction compared with FY2019/03 (absolute volume) 21,961 metric tons CO2e

   • Expanded sites using renewable energy

   • 55.7% reduction compared with FY2019/03 (per unit of gross profit)

     11.5 metric tons CO2e/million yen

   • Promoted sales of environmentally friendly, high added value products

   • 47.6% reduction compared with FY2019/03 (per unit of net sales)

     2.48 kg/million yen

   • Reduced weight of waste generated through conversion of plastic and other waste to valuable materials

   • 33.5% reduction compared with FY2019/03 (per unit of net sales) 265 kWh/million yen

   • Raised energy efficiency through operational improvements

   • Bioassay testing at the Hikone Site found the water quality good in terms of toxicity to aquatic organisms

   • Continued collaboration with communities, including SCREEN Forest conservation activities

   • 33.9% reduction compared with FY2019/03 (per unit of net sales)

     3.81 m3/million yen

   • Identified areas for improvement through the visualization of water use at business sites

   • Optimized designs to used recycled materials

   • Continued efforts to survey and understand the PFAS content of products

   • Occupational accidents: 17.5% reduction compared with FY2024/03

   • Implemented inter-site cross-check safety patrols

   • Implemented regular safety education and drills for employees

   • Presenteeism: 80.4%

     Implemented wellness promotion and mental healthcare measures

   • Verified the effects of initiatives to improve future measures

   • Employees with disabilities: 2.9% (as of June 1, 2025)

   • Expanded Parte and held seminars on improving work environments and communication for working with people with disabilities

   • Women among new graduate hires: 19.9% (April 2025 hires)

     Took a multifaceted approach with seminars by female employees as well as videos and brochures about the careers of role model employees

   • Management positions held by women: 4.5%

     Launched cross-company mentoring to support women's careers and close the gender gap

     Expanded the survey to all consolidated group companies in Japan; used survey results to identify issues in management and organizational operations; reflected these in action plans

   • Seven key group companies: 66% (up 1 percentage point year on year)

   • Group companies in Japan (consolidated): 65%

     ▶p. 33

     ▶p. 37

     ▶p. 39

     ▶p. 41

     Our businesses

     ▶p. 31

     Portfolio management

     Sustainable Value 2026

     ▶p. 47

     Sustainability strategy

▶p. 45

IP strategy

HR strategy

Medium-term Management Plan

Main final-year targets, outputs (strategy KPIs), and key issues Main initiatives FY2025/03 results and future outlook Related pages and webpages

1. Comparison of actual headcount to required staffing by job type as a percentage

2. Capable of solving issues by working with clients and leading clients forward

Maintain and strengthen IT security

NIST SP 800-171 Level 2 (Advanced)-compliant

Prevent IT incidents

Catastrophic information incidents and accidents: 0

Reinforce BCP globally

Promote BCP at subsidiaries of business operating companies

Reinforce BCP in the supply chain

Promote dialogue with suppliers based on risk analysis

Promote social responsibility in the supply chain

Expand conflict mineral survey coverage: 120 companies

Enhance disclosure

Respond to demands for and enhance ESG-related disclosure

Establish a presence as a global brand

• Make preparations for production sites, R&D, and work environments to support the next medium-term management plan

• Proactive, forward-looking upfront investment

Improve the equity ratio while maintaining ROIC

Note: The items marked with are key issues under Sustainable Value 2026.

Implement a cycle of acquisition, development, and retention linked with corporate and business strategies

• Improve information security policies

• Expand dedicated security organization

• Implement both rules- and technology-based measures

• Implement group and supplier evaluations

• Develop and apply rules and guidelines according to the danger level of group risks

• Expand training to enhance the capabilities of the Computer Incident Response Team (CIRT)

• Increase personnel with relevant certifications

  Visit group companies, implement on-site surveys, and hold workshops

  Implement measures in cooperation with business operating companies

  Build momentum through supply chain communication

  Identify critical issues and respond to requests

• Understand where we stand

• Implement measures to bolster employee engagement

• Implement measures to increase brand recognition

• Plan and execute proactive, agile, and efficient strategy

• Optimally allocate facility resources

• Reduce notes and accounts payable (shorten payment terms)

• Shorten inventory turnover period

• Appropriately control capital levels

• Hired new graduates by job type to enhance the talent portfolio

• Held SC workshops, internal dialogues, and helped employees apply SC principles to their own work, aiming to reach 60% or above of employees at organizational SC level 2 or higher

• Made a periodic review of information security-related rules

• Monitored and dealt with information security through a dedicated security organization

• Rolled out cybersecurity solutions

• Catastrophic information incidents and accidents: 0

• Implemented cyber incident drills

• Implemented information security education

• Implemented on-site surveys and disaster drills at subsidiaries outside Japan as planned

• Continued efforts to enhance and reinforce the Group's overall ability to maintain business continuity

• Surveyed the status of BCPs through discussions with suppliers, identified issues, and formulated responses, fulfilling the annual plan

• Coordinated with business operating companies to promote measure reinforcement

• Conflict mineral survey coverage: 81 companies

• Reinforced seminars and online information to promote understanding among suppliers

• Formulated and updated decarbonization transition plans and disclosed them in TCFD disclosure

• Continued efforts to promptly respond to disclosure requirements in and outside Japan, such as those of the SSBJ

• Conducted internal and external surveys and interviews about our brand image

• Continued the SCREEN Value Awards internal award program

• Fostered unity with a TV commercial and sports sponsorship

• Began operations at the Hikone Site's new S3-6 factory to generate innovation in the semiconductor production equipment business and expand product manufacturing space in the hydrogen-related business

• Decided to acquire land in Yasu, Shiga Prefecture, in preparation for future growth

• ROIC: 24.7%

• Equity ratio: 62.7%

• Implemented ¥30 billion in share buybacks

  ▶p. 53

  HR strategy

  ▶p. 22
  Medium-term Management Plan
  Strengthening
  Information Security
  Control
  Annual Report 2024
  (p. 41)
  		Sustainable Value 2026
  		▶p. 47
  		Sustainability strategy
  ▶p. 61
  Risk management
  ▶p. 59
  Promoting social responsibility in the supply chain

  TV commercial webpage (in Japanese only)

  
  
  

  Social Contribution Activities

  
  
  

  ▶p. 22

  Medium-term Management Plan Annual Report 2024 (p. 41)

  
  
  

  ▶p. 17

  Message from the CFO

  Sustainable Value 2026

  
  
  
  
  
  

  As part of our medium-term management plan, Value Up Further 2026, we have formulated a sustainability medium-term plan, Sustainable Value 2026, to enhance social value. Under the categories of environment (E), social (S), and governance (G), we have set specific targets. To achieve these targets, we will implement initiatives throughout the global supply chain aimed at further enhancing our corporate value.

  ‌Performance highlights

  Financial Non-financial

  Net sales / EPS

Both marked record highs for the fourth consecutive year, driven by the SPE business

Both marked record highs for the fourth consecutive year, reflecting increased sales mainly in the SPE business

Reduced mainly by expanding use of renewable energy Facilitated the development and sales of products that comply with

• Per unit of net sales (SCREEN Group, global) ●Per unit of net sales target (SCREEN Group, global)

(kg/million yen)

• Water withdrawal (SCREEN Group, Japan) ■ Water withdrawal (SCREEN Group, outside Japan)

  • Per unit of net sales (SCREEN Group, global) ●Per unit of net sales target (SCREEN Group, global)

    (m³/million yen)

    62.7 70

    0.21

    0.2

    4.74

    4.84

    4.78

    47.6%

    8% 5 8

    3.81

    5.31

    4.58

    4.59

    )

    4.94

    reduction reduction

    8%

    33.9%

    6.38

    5.77

    reduction

    54.5

    53.9

    53.3

    54.9

    (Billions of yen) 500

    299.8

    371.8

    50

    420.6

    30

    (Billions of yen) 50

    43.7

    0.18

    44.2

    0.10

    28.8

    0.02

    0.01

    0.1

    0

    (t) 2,000

    1,723

    1,970

    3.56

    3.50

    1,765

    reduction 4.36 4

    3

    2.48 2

    (Thousand m3 2,500

    2,316

    5

    2,388 2

    250

    208.3

    247.7

    25

    1,500

    173

    1,550

    275 1,643

    86

    101 1,553

    57

    2,000

    2,102

    72

    2,046

    31

    2,038

    24

    2,118

    32

    30 32

    7.18

    4.56

    1,550

    201

    1,349

    1,695

    1,556

    1,665

    1,496

    2,030

    2,015

    2,014

    2,086

    2,286

    2,355

    0

    2021

    2022

    2023

    2024

    2025

    Cash flows

(Years ended March 31)

0

2021

2022

2023

2024

2025

(Years ended March 31)

1,000

2019

Base year

2021

2022

2023

2024

2025

2027 (Years ended March 31) Intensity target

1,500

2019

Base year

2021

2022

2023

2024

2025 2027 (Years ended March 31) Intensity target

Stably generated cash through steady accumulation of profit and control of working capital

Accidents caused by physical strain or abrupt movements reduced

FY2022/03 and earlier ■ SCREEN Group, Japan ■ Partner companies, Japan

Both ratios have been steadily rising

11.1

11.2

8.8

9.4

9.7

5% or above

(FY2027/03 target)

4.5

2.7

3.3

3.4

4.5

50.9

71.8

61.3

52.7

49.4

(Billions of yen) 80

25.1

(%) 30

(Accidents) FY2023/03 onward ■ SCREEN Group, global ■ Partner companies, global ■ Target 50

(%) 12.0

(Billions of yen) 100

57.2

50

81.7

73.9

96.2

71.2

0

-80

(Billions of yen) 40

20

21.5

24.0

29.0 24.7

39.8

27.0

15

29.7 31.7 0

41 40

40

30

20 27 26

20

12

33

17.5%

reduction

17

26

33%

reduction

8.0

4.0

0

-50

-6.2

-27.0

-9.9

-4.9

-12.5 -20.9 -43.4

-35.1

-21.7 -46.4

7.8

0

9.6

13.4

9.5

8.7

10.8

12.8

10 9

0 3

14

14 14 16

6

0

2021

2022 2023

2024

2025

(Years ended March 31)

2021

2022

2023

2024

2025

(Years ended March 31)

2021

2022

2023

2024

Base year

2025 2027 (Years ended March 31) Target

2021

2022

2023

2024

2025

(Years ended March 31)

Paid record-high annual dividends of ¥308 per share

Both declined due to geopolitical and market factors; we seek to meet market expectations by steadily increasing corporate value

The retention rate after three years remained high

The number of patents held has been growing steadily

(Yen) 400

200

• Cash dividends per share ●Consolidated dividend payout ratio

  45

  182.5

  146.5

  223.5

  308.0

  .1

  27.7

  30.0

  30.0

  30.1

  30

  (%) 35

  25

  15

  (Times) 5.0

  2.5

  • PER ●PBR

  2.18

  2.18

  2.32

  1.84

  5.21

  26.9

  29.95

  12.66

  9.58

  9.37

  (Times) 40

  20

  0

  (Persons) 200

  100

• New graduate hires ●Retention rate after three years

  98.5

  97.2

  94.2

  95.4

  98.1

  65

  52

  52

  82

  179

  (%) 100

  90

  80

  • Japan ■ Outside Japan

(Patents)

8,699

7,882

6,673

7,147

5,967

5,050 5,664

3,746

4,300

4,588

2,221

2,373

2,559

2,832 3,035

10,000

7,500

5,000

2,500

0

2021

2022

2023

2024

2025

(Years ended March 31)

0

2021

2022

2023

2024

2025

(Years ended March 31)

0

2021

2022

2023

2024

2025

(Years ended March 31)

0

2021

2022

2023

2024

2025

(Years ended March 31)

Fact Book 2025 Sustainability Data Book 2025

Note: The Company conducted a two-for-one split of its common stock on October 1, 2023. The above figures are calculated based on the post-split number of shares.

1. PER = Stock price at fiscal year-end / Basic earnings per share

2. PBR = Stock price at fiscal year-end / Book value per share

   ‌Business overview: Summary (fiscal year ended March 31, 2025)

   SPE

   Semiconductor production equipment business

   SCREEN Semiconductor Solutions Co., Ltd.

   p. 33-36

   Segment net sales

Value chain

Creating value by providing solutions to meet market needs and client requests based on our core technologies

We realize a cycle of generating new solutions by providing satisfying solutions to clients, generating profit, and reinvesting it.

¥519.5

bn

83.1%

Europe

Other ¥0.8 bn (0.2%)

Japan

¥61.3 bn

(Billions of yen) ■ Net sales ● Operating margin 800

(%) 30

¥23.9 bn

(4.6%)

North America

¥49.2 bn

(9.5%)

¥519.5

bn

(11.8%)

Asia & Oceania

¥384.1 bn

(73.9%)

China ¥230.6 bn (44.4%) Taiwan ¥107.7 bn (20.7%) Korea ¥24.1 bn (4.6%) Other ¥21.5 bn (4.2%)

600

400

200

0

26.4

23.2

19.7

20.7

519.5

11.0

370.9

417.6

319.3

235.5

2021

2022 2023 2024

20

2 Development

1 Marketing

Gathering feedback from clients

Market

Market release

SPE GA

FT PE

Core technologies

System integration

Clients

5 Manufacturing

4 Sales activities

4 Sales activities / Design

5 Manufacturing

Delivery, setup, and installation

6 After-sales services

3 Collaboration

10

2025

(Years ended March 31)

GA

Graphic arts equipment business

SCREEN Graphic Solutions Co., Ltd.

p. 37-38

8.5%

¥53.0

bn

Other ¥1.6 bn (3.1%)

Europe

¥9.0 bn

(17.0%) ¥53.0

bn

North America

¥15.0 bn

1

4

(28.4%)

Japan

¥20.9 bn

(39.5%)

Asia & Oceania

¥6.3 bn

(12.0%)

China ¥0.9 bn (1.7%) Taiwan ¥0.1 bn (0.3%) Korea ¥4.2 bn (8.1%) Other ¥1.0 bn (1.9%)

(Billions of yen) ■ Net sales ● Operating margin 100

7.4

8.1

3.8

1.4

43.3

45.6

47.7

53.0

37.4

80

60

40

20

0

(%) 10

9.0

5

0

2021 2022 2023 2024

2025

Marketing

Sales activities

5.7%

¥35.8

bn

Europe

¥0.07 bn

(0.2%)

North America

¥0.004 bn

(0.01%)

¥35.8

bn

Japan

¥3.8 bn

(10.9%)

Asia & Oceania

¥31.8 bn

(88.9%)

China ¥28.0 bn (78.2%) Taiwan ¥3.8 bn (10.7%) Korea ¥0.01 bn (0.04%)

(Billions of yen) ■ Net sales ● Operating margin 100

80

60

40

20

0

(Years ended March 31)

1.3

1.8

-1.8

-7.0

34.7

33.2

35.8

26.1

23.2

FT

Display production equipment and coater business

SCREEN Finetech Solutions Co., Ltd.

p. 39-40

8.5

(%) 10

0

-10

• Gather and analyze market information in multifaceted ways

• Evaluate client needs, examine industry and technology trends, and project development directions and themes

• Based on our own analysis and forecast of long-term market trends, propose and implement plans for R&D resource allocation and business expansion in emerging fields

  2

  
  
  

  Development: End-to-end product creation, solution creation abilities

• Develop products that embody our deep knowledge and design

  know-how acquired in each business area

• Examine each R&D project in terms of the fulfillment of client needs, profitability, competitive advantage, and reduced environmental impact at each phase until completion

• Speedily propose solutions that cater to specific needs based on highly client-oriented sales activities

• Facilitate efficient manufacturing through early determination of equipment specifications (SPE, FT, PE)

  5

  
  
  

  Manufacturing

• Stabilize procurement by planning production in line with client forecasts and sharing demand information with suppliers

• Ensure high quality through quality management systems based on the ISO 9001 standard

• Promote cost reduction activities through standardization of specifications (SPE, FT)

• Promote efficient manufacturing by standardizing parts and units (GA, PE)

  2021 2022 2023 2024

  2025

  • Achieve excellence in quality, cost, and delivery based on our

  • Achieve high quality by shifting to preventive/predictive activities

    Segment net sales

2.3%

¥14.1

bn

Europe

¥0.1 bn

(1.0%)

¥14.1

bn

Japan

¥3.7 bn

(26.1%)

Asia & Oceania

¥10.3 bn

(72.9%)

China ¥3.5 bn (24.9%) Taiwan ¥1.7 bn (12.1%)

Korea ¥3.3 bn (23.4%)

Other ¥1.7 bn (12.5%)

(Billions of yen) ■ Net sales ● Operating margin 30

19.9

16.8

13.3

14.6 14.1

10.4

15.6

12.7

7.4

7.5

20

10

0

(Years ended March 31)

(%) 25

10

-5

manufacturing insight

PE

PCB-related equipment business

SCREEN PE Solutions Co., Ltd.

p. 41-42

• • Pursue elemental development based on core technologies from a long-term perspective with the support of the SCREEN Holdings R&D department

    3

    
    
    

    Collaboration: Development acceleration

  • HD: Collaboration with the New Energy and Industrial Technology Development Organization (NEDO) on fuel cell MEAs, Tokyo Gas on CCMs for water electrolysis, and ENEOS on CCMs for Direct MCH®

  • SPE: Joint projects with external research institutions (imec, IBM, Leti), Applied Materials META Center, NEDO, Mie University, Hiroshima University, Shiga University, and suppliers, etc.

  • GA: Collaboration and joint projects with analog press and

    based on our total quality management system (SPE)

• Enhance production capacity through the efficient operation of the Hikone Site. Like S3-3 and S3-4, the S3-5 factory features advanced automation

• Accelerate cost reduction through value analysis and value engineering in cooperation with suppliers (GA)

  6

  
  
  

  After-sales services

• Promote localized operations to build a resilient support structure that can withstand disruptions including pandemics

• Enhance profit-driving after-sales businesses (maintenance parts, modification, used equipment sales, consumables, etc.)

• Provide preliminary alerts and remote support leveraging IoT (GA)

2021

2022 2023 2024 2025

p. 43-44

New businesses (Innovation management)

(Years ended March 31)

postpress system manufacturers (Nilpeter and Horizon, etc.) and clients (Chiyoda Gravure, etc.)

‌Portfolio management

Basic operation

Business portfolio management

Innovation management

In business portfolio management, under the oversight of SCREEN Holdings, operating cash inflows are used to fund strategic investment balanced between existing and new businesses. Specifically, we generate funds for investment through the growth of existing businesses and the continuous updating of the product portfolio. In line with the Management Grand Design, of this,

70% is then reinvested to support the further growth of existing businesses and the creation of new businesses as part of innovation management. In this way, we aim to achieve sustainable growth. To create an optimal business portfolio, the Board of Directors analyzes issues and regularly checks the progress of required actions.

Our innovation management, meanwhile, integrates internal management that builds on proprietary elemental technologies with outward-looking management that generates synergies by bringing in external businesses through M&A. By doing so, we sustainably and effectively create new businesses, including new product lines in existing business areas.

Product portfolio (growth rate × ROIC)

Business operating companies

Restructuring Stable

Businesses in this area are This area is for existing Growthrestructured under the businesses that prioritize investment control of HD. reinvestment in the growth

Restructuring Stable area over self-reinvestment.

Low ← ROIC → High

Investment

This area is for existing businesses that prioritize self-reinvestment and also reinvest in the growth area.

Growth

This area is for new businesses that aim to eventually move to the investment area.

Growth investment Growth investment

Business portfolio management

Growth Investment

Portfolio management

❷Acquisition of new businesses

➌Support for existing businesses

Cultivation Commercialization

Elemental development

➊Creation of new businesses

Direction, oversight

Report

(R&D, marketing)

HD corporate strategies

HD

Termination

Termination

Termination

Basic operational flow of portfolio management

The SCREEN Group practices portfolio management with the aim of achieving sustainable growth and maximizing corporate value. We map out the position of the Group's business segments along two axes: growth potential (net sales growth rate) and ROIC.

Using this visual aid, we regularly check the difference between the current and ideal position of each business as we work toward an optimal business portfolio.

Portfolio mapping by business segment

We apply common criteria to determine the scale and position of the SCREEN Group business operating companies, categorizing them into one of four areas: growth, investment, stable, or restructuring.

Optimal business portfolio

• Profitability in the advanced packaging business

• Profitability in hydrogen-related business

Exploration

The SCREEN Group's optimal portfolio comprises a combination of business segments positioned in the growth, investment, and stable areas (see definitions in the chart at bottom-left).

We explore ideas mainly in four focus areas (digital transformation, green transformation, mobility, and humanics) based on megatrends we have identified. In doing so, we apply the perspectives of macro-trends (social issues/needs, technological innovation, and changes in industrial structures), micro-trends (market trends and

industry technology trends), client feedback, the needs of our business operating companies, and the application of our proprietary technologies. The ideas explored through this process are then utilized in the creation of new businesses, acquisition of new businesses, and support for existing businesses.

➊ Creation of new businesses

We seek to create solutions with the potential to become new businesses and contribute to the growth envisioned in the Management Grand Design. We map out the phase progression of projects, with transition criteria (gates) established for advancement from each phase.

Elemental development

Cultivation

Commercialization

Gate

Approval of business model

Gate

Approval of business plan

Gate

Approval of sustainable business plan

Approval

Approval

Approval

Reversal

Reversal

Reversal

To develop the ideas found through exploration into something tangible, we carry out initial business model assessments and establish necessary elemental technologies.

About 10 projects

We examine the business model and business plan for the solution created based on the elemental technologies.

1 project

AI

We start implementing the business model (product launch, business operations) and determine the sustainability of the business, aiming for full commercialization.

3 projects

Advanced packaging Hydrogen

Life sciences

❷ Acquisition of new businesses

We seek to capture opportunities for collaboration with other companies (including investment, M&A, and other forms of capitalization), aiming to create new businesses and expand the existing business portfolio. Priority investment areas: SPE, advanced packaging, hydrogen energy, etc.

➌ Support for existing businesses

We create solutions that strengthen the existing businesses over the long term.

Value Up Further 2026 final-year outputs

• Creation of new businesses that generate ¥10 billion in net sales

• Reinforced product portfolio management at business operating companies

Low ← Net sales growth rate → High

Sustainable growth and expansion of corporate value

Frequently asked questions

Q For business portfolio classification, do you apply a single ROIC hurdle rate to all business segments?

A We apply different hurdle rates to different business segments (segment-specific ROIC is not disclosed).

Q Do you classify businesses based on net sales growth rate and ROIC alone?

A We basically use the indicators of net sales growth rate and ROIC for this purpose. Other factors, such as the timeline, market outlook, and product market share, are also considered for comprehensive assessment.

Q What are the exit criteria for businesses in the restructuring area?

A There are no simple numerical criteria. When a business is categorized into the restructuring area, we consider rehabilitating it in line with the corporate rehabilitation system. However, the decision is made based on comprehensive considerations including not only performance but also the expected timeline, market outlook, and product market share.

Q In innovation management, are there any criteria for taking a project back to a previous phase or terminating a project?

A The decision to move a project to the cultivation phase or commercialization phase or the decision to reverse or terminate a project is subject to approval by the Board of Directors after a review of the business model and plan.

Main results of initiatives in the fiscal year ended March 31, 2025

1. Creation of new businesses

   • Constructed a base for manufacturing hydrogen-related devices at S3-6, a new building at the Hikone Site

   • In the hydrogen-related business, we were selected for subsidy funding for our project to mass produce CCMs* for water electrolysis in a program organized by the Japan Ministry of Economy, Trade and Industry to promote the creation of green transformation (GX) supply chains

     * CCM: Catalyst-coated membrane. An electrolyte membrane with a catalyst coating.

   • Decided to acquire land in Yasu, Shiga Prefecture, in preparation for future business growth

2. Acquisition of new businesses

   • Added Kyo Diagnostics K.K., a firm developing cancer cell cultivation technologies and other next-generation cancer diagnostic support systems and services, to the Group as a subsidiary

   • Added CGS ORIS GmbH, which develops and sells color technology products, to the Group

‌Semiconductor production equipment business (SCREEN Semiconductor Solutions Co., Ltd.)

WEB

SCREEN SPE group website

Akihiko Okamoto

President, SPE

The SPE Group has positioned the three-year period of the current medium-term management plan, which

began in the previous fiscal year, as a time for building a solid foundation, and we are implementing a variety of initiatives accordingly. In the fiscal year ended March 31, 2025, despite continuing uncertainty due to such factors as the impact of U.S. trade policy, we achieved both increased revenue and profits, supported by investment in advanced logic and memory devices. Cumulative shipments of semiconductor production equipment also

External environment and trends

Market outlook

With the increasing use of generative AI and accelerating speed of communication networks, application needs are expected to grow consistently, with this market expanding at a CAGR of 6% to 7% from CY2023 to CY2033. In step with this expansion, the semiconductor market is expected to continue investing in energy-efficient, high-speed semiconductor development, such as improved miniaturization and chiplet technologies, to support the advancement of DX. The market is forecast to grow to approximately US$1 trillion by 2033. The market for wafer fab equipment (WFE) was approximately $110 billion in CY2024 and is expected to remain around this level in CY2025. Investment continues not only in cutting-edge nodes but also in mature nodes, with further growth expected in CY2026. Although there is some uncertainty due to factors such as U.S. trade policy and trade friction, demand for GPUs and memory devices for generative AI is expected to drive steady growth.

Device evolution and technology trends

As AI becomes more widely used, semiconductor devices will undergo further technological innovation in terms of miniaturization and high-density stacking (3D integration), increasing the importance of cleaning* technologies in device manufacturing. Cleaning is a crucial factor that determines device performance, and as miniaturization advances in the multi-step transistor formation process

as well as the interconnect formation process, both the number and importance of cleaning processes are expected to increase.

Other new requirements beyond miniaturization are also emerging, including the need for back surface

cleaning due to EUV processing and increasing structural

surpassed 15,000 units during the period. We owe these achievements to the support of our stakeholders, including our customers and partner companies, and to the tireless efforts of our employees to resolve the fundamental challenges of our business and the industry. They all have my deepest gratitude.

In addition, we have revised the SPE group's mission to "A Better Tomorrow with Our Partners" and our vision to "Go Beyond!" These changes reflect our ongoing commitment to working with our partners to provide customers with products and services that exceed their expectations and to contribute to the development of society. In the fiscal year ending March 31, 2026, while the market is expected to settle temporarily, we intend

to strengthen our product development based on current technological trends, deliver new value to our customers in a timely manner, and continuously improve our profitability as we pursue the goals set out in Value Up Further 2026.

complexity, as well as etching of narrow spaces and cleaning of bonding surfaces as chiplet integration progresses. Similarly, in addition to needs for advanced cleaning performance that can improve yields and resolve technical issues, requirements for higher added value from both a cost and environmental perspective are growing increasingly complex. In the 50 years since our full-scale entry into the market in 1975, we have developed a wealth of advanced cleaning technologies and expertise, built enduring relationships of trust with our customers, and promoted collaboration on a global scale. Leveraging these strengths, we will continue to develop new solutions and provide products with outstanding added value.

* Removing extremely small particles and residues from the front and back wafer surfaces. For example, removing a 10 nm particle from the surface of a 300 mm wafer, which is proportionate to removing a speck of pollen from a baseball field.

SWOT analysis (cleaning equipment)

• Various advantages accruing from holding the top market share in the cleaning segment for many years

• Accumulated design, manufacturing, and process expertise

• Long-term business relationships with the world's leading semiconductor manufacturers

• Strong presence in cleaning within transistor formation processes through participation in consortiums

• Unbalanced customer base in terms of application mix

• Product mix skewed toward cleaning

• Growth in the semiconductor market resulting from progress in 5G, AI, IoT, and DX/GX

• National/regional policies to support and strengthen semiconductor manufacturing

• Improvements in information quality, volume, and speed through participation in consortiums and joint development

• New cleaning needs arising from advanced packaging and chiplets, etc.

• Cyclical business environment

• Supply chain disruption due to rising geopolitical risk

• Loss of market share due to competitors' improvement in technological capabilities and pricing strategies

• Replacement of wet cleaning and etching processes with dry processes

Product groups and market shares

CY2024

Global share

No. 1

42%

CY2024

Global share

No. 1

46%

Single wafer cleaning equipment*

SU series

Batch-type cleaning equipment*

FC series

Spin scrubbers*

SS series

In this business, we have captured the top global market share in all of our three fields of cleaning equipment. Our single wafer cleaning equipment market share increased significantly in CY2024 from the previous year.

CY2024

Global share

No. 1

45%

* Chart created by SCREEN based on Gartner Research. Source: Gartner®, "Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2024." Bob Johnson et al., 21 April 2025 (vendor revenue from shipments basis, listed as SCREEN Semiconductor Solutions in this research)

Single wafer cleaning equipment = Single Wafer Processors; Batch-type cleaning equipment = Wet Stations; Spin scrubbers = Scrubbers

Disclaimer: Gartner does not endorse specific vendors, products, or services mentioned in its research publications, nor does it advise technology users to select only those vendors that have received the highest ratings or other recognition.

Gartner research publications express the company's views and are not representations of fact. Gartner assumes no responsibility, either express or implied, regarding this research, including its merchantability or fitness for a particular purpose. GARTNER is the registered trademark and service mark of Gartner Inc. or its affiliates in the United States and other countries and is used in this document with permission from Gartner Inc. All rights reserved.

The Gartner content described herein (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this annual report), and the opinions expressed in the Gartner Content are subject to change without notice.

Strategies and future plan

Improve the market share of cleaning equipment Cleaning accounts for about 30% of all semiconductor production processes, of which there are several hundred. As miniaturization and the use of advanced packaging and chiplets progress in the advanced device field, cleaning systems are expected to play an increasingly important role among manufacturing equipment. Against this backdrop, we are aiming to increase our market share in both the transistor and the interconnect formation processes, from cutting-edge to mature nodes. Our collaborations with customers, research institutions, and business partners

are helping us introduce new models and develop cutting-edge technologies and thereby continuously

strengthen the competitiveness of our cleaning equipment. Meanwhile, we are working to establish PoR status* by providing our customers with timely solutions that meet their needs. In addition, in the semiconductor production equipment business, we plan to establish an R&D facility outside Japan to strengthen our elemental technology and product development capabilities and to develop high-value added systems.

To achieve the targets of Value Up Further 2026, we are working to recruit talent and increase the number of employees stationed overseas. We anticipate that establishing sales promotion activities close to our

customers will increase net sales both by facilitating new equipment sales and enhancing our post-sales services (modifications and after-sales services).

* PoR: Process of record. A standardized production process that specifies the use of particular equipment, which forms the basis of mass production

Expand production capacity

S3-5 was completed in January 2024 and has begun full-scale operation, increasing our production capacity by 20% compared with the fiscal year ended March 31, 2024. Going forward, we aim to build a production capacity capable of supporting annual sales of approximately ¥600 billion within the three years of Value Up Further 2026. This will be achieved by further improving our production technologies,

expanding automation to shorten processes, determining specifications earlier, and standardizing designs.

Enhance the business foundation

We are now working to streamline operations through DX and build up our business foundation. In particular, we are focusing on improving cross-departmental efficiencies by, for example, shortening production lead times, including those for delivery and installation at customer sites, and building core systems to support expanded production capacity. In addition, we are working to secure and develop the highly skilled personnel needed to support these aspects of our business foundation.

Gaining a competitive edge with higher added value

Reinforcing alliances with diverse partners with differing

our customers-device manufacturers-is no longer enough. Depending on the objective and time frame, other types of partners will also be vital.

Working toward supply chain-wide decarbonization

Despite governmental policies and technological

objectives and time frames

Takumi Mikawa

Executive Officer

In Charge of IP Strategy and Technology Roadmap, SPE

Some of our long-term joint R&D projects fit this model. Examples include R&D with academic institutions on basic development and AI applications for cleaning simulations and on digital twin technology. With imec,3 an international research and innovation center, we are developing processes and equipment that support new device materials and environmental impact reduction technologies. Other joint development projects are approaching commercialization, such as the development

development around the world to address global warming, there remains a wide gap between the world's current trajectory and the goal of achieving net-zero greenhouse gas (GHG) emissions by 2050. It is therefore essential that the semiconductor industry, which delivers indispensable devices to numerous industries, contribute to decarbonization throughout its extensive supply chains. However, if current trends continue, GHG emissions from the semiconductor industry are predicted to increase

GHG emissions per wafer

Approx. 40% reduction

(%) 100

50

of cleaning processes with enhanced controls for cutting-

edge devices with IBM; the development of wet-process solutions applicable to complex device structures with

further due to the expansion of production processes necessary for increasingly miniaturized and complex devices, along with the rapid growth of the market

0

2019

(SU-3200)

2025 (SU-3400)

(Years ended March 31)

The recent remarkable advances in generative AI are

driving trends toward device scaling, 3D stacking, and system integration. With development lead times

shortening, time to market has a greater impact than ever, and the industry is even more focused on accelerating development. Requirements for semiconductor production equipment are no longer limited to process performance, cost effectiveness, and excellent productivity. They now extend to excellent sustainability with less impact on the environment. In addition to addressing these near-term challenges, we have to meet the needs of our customers in light of longer-term trends. This highlights the importance

chemical manufacturers and others; and the development

of cleaning-linked total solution processes with AMAT and other equipment manufacturers.

To support these alliances, in addition to the existing R&D facilities at the Hikone Site, the SCREEN Group is preparing to establish a new R&D center overseas. The reason for this decision is not just our many customers outside Japan, but also the need to work closely with overseas partners.

We have been active in joining consortiums and open alliances, such as SEMI, SEAJ, and IRDS.4 By collaborating with industry associations, research institutions, and

driven by generative AI. Given that a majority of our GHG emissions are in Scope 3, we need to implement GHG emission reduction measures in cooperation with materials suppliers and parts manufacturers upstream in the supply chain as well as device manufacturers downstream.

Reducing environmental impact during product use

The largest part-more than 90%-of GHG emissions in the lifecycle of semiconductor production equipment is generated during use by customers (Scope 3 category 11).

Recognizing the need to reduce these GHG emissions, we

Deionized water used per wafer

Approx. 30% reduction

(%) 100

50

0

2019

(SU-3200)

2025 (SU-3400)

(Years ended March 31)

of making meaningful proposals to customers that extend to future technologies.

In line with our alliance strategy, SPE has built a collaborative technology development ecosystem

Consortiums

Device manufacturers

Open alliances

imec

IBM

Leti

Academia

Equipment manufacturers

Materials manufacturers

with partners in a variety of areas of the value chain. Traditionally, device and equipment manufacturers have played leading roles in the evolution of process scaling. However, today, to pursue the ultimate goal of enhancing system performance, the key drivers lie across a broader range of sectors, ranging from materials suppliers to systems vendors. This means that collaborating only with

academia, we will lead the industry and, as a trailblazer

in semiconductor manufacturing processes, especially cleaning, offer innovative solutions to continue to create value for customers.

1. imec: With its main campus located in Leuven, Belgium, this international research institute leads the world in the nanoelectronics and digital technology area. The organization leverages its scientific knowledge with the innovative power of its global partnerships in semiconductor technology, nanotechnology, biotechnology, energy, etc.

2. IRDS: International Roadmap for Devices and Systems

WEB

Annual Report 2024 (p. 58)

New Joint Research and Development Agreement with imec

comprehensively measure energy consumption during the use of our products, including that associated with utilities, in accordance with SEMI S23 and other standards. The results are reflected in our development roadmap, which guides our efforts to reduce the energy consumption of our products.

The SU-3400 single wafer cleaning system, launched in December 2022, is equipped with improved cleaning nozzles and an efficient chemical circulation system.

Compared with conventional models, the product uses, on a per-wafer basis, approximately 25% less chemical solution for cleaning and 30% less deionized water for rinsing. The adoption of fully automated airflow control also reduces exhaust by approximately 40%. These and

water in cleanroom areas, including that in the cleaning equipment and coater/developers used for development and production, is quantified through the application. This improved data on the usage of deionized water and chemicals, as well as the amounts of wastewater and effluent, helps with reduction efforts. By working to enhance the sustainability of semiconductor production equipment at the factory level, we hope to build a base data set that we can offer our customers for use in optimizing water management at their own factories.

Super Green Product certification system As part of efforts to accelerate the reduction of GHG emissions, we have introduced a program to certify

System vendors

Chip manufacturers

Suppliers

1. STCO: System technology co-optimization

2. DTCO: Design technology co-optimization

Chiplets

Applications Architecture Integrated circuits Devices

Production equipment

Materials

STCO¹

DTCO² 3D

Process scaling

other improvements have reduced the environmental

impact (GHG emissions) during the use of the equipment approximately 40%. This is just one example of our commitment to offering products that meet customer needs while balancing cost and environmental performance.

Reducing water use and promoting recycling IRDS emphasizes that the strongly interdependent relationship of demands for water and energy is a critical consideration in working toward decarbonization. In light of the importance of water, SCREEN has introduced and is expanding the use of FTD solutions' Water Management Application (WMA). At the Hikone Site, the entire flow of

products with exceptional energy-saving performance

WEB

as Super Green Products. The goal of this system is to expand sales of highly ecological products. By monitoring the percentage of total sales attributable to Super Green Products as a KPI, we are speeding up the development of innovative green technologies.

Provision of eco-friendly products and services

‌Graphic arts equipment business (SCREEN Graphic Solutions Co., Ltd.)

WEB

SCREEN GA group website

Yukiyoshi Tanaka

President, GA

Printing is and will continue to be an indispensable technology in many aspects of our daily lives, from books and catalogs to packaging, textiles, and interior design. As the founding business of the SCREEN Group, GA has been a part of the development of the printing and prepress industry for more than 80 years. We aim to continue leading the transformation of the industry as we create a future in print and make the world more colorful.

GA has recently developed the Truepress JET 560HDX, a high-speed inkjet press for commercial and book

External environment and trends

Market outlook

The printing industry is being reshaped by digital transformation (DX), with high-volume paper printing decreasing and digital printing increasing over the long term. Investment in digital printing equipment is expected to grow steadily going forward, with rising demand driven by greater efficiency and value-added creation. Digital printing (POD1) is also expected to grow in the industrial printing field, including for label and package needs.

Meanwhile, our recurring business,2 based primarily on ink products, is growing steadily as sales of digital

equipment increase. Recurring business now accounts for approximately 50% of our total sales and is expected to provide additional growth on top of that of equipment sales.

Printing industry trends and business environment

We work with customers to address their challenges and create a strong future for the printing industry. This includes undertaking initiatives ranging from reducing

printing. It represents our commitment to developing systems that preserve the conventional beauty of printing while also providing new value enabled by digital technologies, such as reduced environmental impact and personalized printing. GA is also a leading manufacturer of CTP, equipment for offset press plate making, with more than 30,000 systems sold worldwide. As such, we will support our customers' continuing growth by providing solutions that enable the current transition from analog

to digital printing alongside the combined use of both formats.

The fiscal year ending March 31, 2026 will be important for the success of our next medium-term management plan. Along with the above initiatives, we intend to expand sales of our digital printing systems to the label and flexible packaging markets and, together with our partners, fully dedicate ourselves to supporting customer success and the advancement of the printing industry.

to minimize the downtime of sold units at customer sites. We believe this will lead to the creation of a more stable management foundation.

1. POD: Print on demand. Printing of the number of copies needed when they are needed using a digital printing press.

2. Ongoing sales of ink and services following sales of equipment. Recurring business accounted for approximately 52% of total GA sales in the fiscal year ended March 31, 2025.

   SWOT analysis

   S Strengths

   W Weaknesses

   O Opportunities

   T Threats

   • Relationships of trust with customers and suppliers cultivated since our founding, as well as global sales and support capabilities

   • POD systems that realize both high productivity and high quality, enabled by our integrated workflow and inkjet printing technology

   • Business strategies shifted to focus on recurring businesses that generate stable profit

   • Low profitability in the equipment business

   • Lack of brand recognition in the packaging industry due to our relatively recent entry

   • Shift toward digital printing in the commercial printing field as well as the label and packaging printing field

   • Support for eco-friendly equipment by various governments

   • Shrinking scale of the paper printing market due to digitalization

   • Supply chain disruption due to geopolitical risk or other factors

   • Competitors' technological progress and low pricing strategies

Product groups and market shares

POD equipment for digital printing

Global share

No. 1

30%*

Truepress JET 560HDX

* Calculated based on the number of roll-fed inkjet presses manufactured and shipped. SCREEN survey data for CY2024.

CTP equipment for offset printing

Strategies and future plan

Expand sales of POD systems

As the shift toward digital printing continues, we are deepening engagement with key customers-existing and potential-that are driving transformation in the printing industry, aiming to expand POD equipment sales. To that end, we will proactively capture customer needs and respond to market demands by developing and releasing new products in a timely manner. More specifically, we seek to gain market share in the paper-based commercial printing market, including transaction printing, direct mail printing, and other general commercial printing, while accelerating the digitalization of book printing and high-quality commercial printing.

Expand recurring business

Ink sales and other parts of our recurring business are expanding steadily as we increase cumulative sales of POD equipment and strengthen our network supporting the stable operation of customer systems. Releases of proprietary products such as our SC+ inks1 and water-

based inks2 for flexible packaging have allowed us to meet a diverse range of needs in the printing industry.

We are also strengthening our font business by offering Hiragino font licenses to partners who provide subscription-based font services. As always, we are committed to developing total solutions best suited to our customers and establishing a business model that ensures stable earnings.

1. SC+ ink: Inks that can be directly applied to the coated papers used in offset printing without pretreatment or primer, preserving the paper's surface texture

2. Water-based ink: Ink that offers rich colors with high safety in line with food safety regulations

   Recurring business sales (percentage of total GA sales)

   47

   45

   44

   52

(%) ■ Recurring business ■ Equipment and others 100

50

0

environmental impact with digital technologies to promoting automation in order to alleviate personnel

2021 2022 2023

2024

2025

(Years ended March 31)

shortages, and even offering personalized printing to increase the value of printed materials themselves. In this way, we seek to contribute to society by protecting and further developing print culture. In addition, we are developing POD systems for flexible packaging and commercial printing to expand our portfolio to new

markets and applications. By adding color to everyday life through printing, we hope to provide comfort, enjoyment, and enrichment.

In recent years, we have also been building an interactive support system using IoT technologies to reinforce recurring businesses by providing remote support

PlateRite HD 8900NII

Inkjet printing for flexible packaging

Truepress PAC 830F

Establish the package printing business

In the package printing field, along with the Truepress LABEL 350UV series of UV inkjet label presses, we have developed and released the Truepress PAC 830F and Truepress PAC 520P water-based inkjet presses for flexible packaging. Going forward, we are planning a variety of marketing activities to further develop our customer base and expand sales.

‌Display production equipment and coater business (SCREEN Finetech Solutions Co., Ltd.)

WEB

SCREEN FT group website

Atsushi Sonoda

President, FT

In the first year of Value Up Further 2026, FT's performance was strong and, aided by the gradual recovery of the display market, we were able to return to profitability. We placed even greater importance on dialogue with our customers while undertaking various development and productivity improvement activities to

maintain and improve the competitiveness of FT's products. At the same time, we collaborated with key partners to ensure the systematic maintenance of our supply capacity, enabling us to meet scheduled delivery dates. These initiatives allowed us to successfully deliver the products and startup services we promised our customers.

In the current fiscal year, we aim to surpass last year's results and plan to further improve design and production

External environment and trends

Market outlook

In the display market, strong replacement demand for televisions has stimulated capital investment by

manufacturers, with spending increasing for both OLED and LCD panels. OLED displays are increasingly being adopted for IT panels and in-vehicle devices, and we expect to see large-scale growth in investment and factory construction going forward. Accordingly, we believe the overall market for display production equipment will see investment continue beyond 2025, increasing for the foreseeable future.

Display industry trends and business environment Display devices are used in a wide variety of digital devices, such as TVs and smartphones. FT provides various products and services for the manufacture of display devices. We develop and manufacture resist coating systems capable

of uniformly and rapidly layering ultra-thin films; pre-and post-processing systems for cleaning, baking, and development; and mass production lines integrating such

systems. In particular, we boast the top share of the global market for coater/developers used in large TFT arrays for LCDs and OLED displays.

Going forward, we expect the number of photolithography processes to increase, the market for flexible displays to expand, and the use of OLED panels to become more widespread. For our part, we intend to

pursue the development of products to meet the need for larger glass substrates for manufacturing IT panels as they

capabilities for our mainstay display production equipment. We are likewise committed to expanding our startup service capacity. With this in mind, all FT employees will work together, with the support of our partners, to ensure that we make a meaningful contribution to our customers' operations by providing them with outstanding products.

This year is also a crucial period for development activities in areas outside of display production equipment. We are currently working to expand our product lineup tailored to particular market needs. We have begun this initiative in response to the growing demand for coater/ dryer systems for panel substrates that are compatible with advanced semiconductor packaging technologies, as well as the broadening of potential applications. Going forward, we will continue to build systems that enable us to develop, manufacture, and provide startup services for products and functions fine-tuned to the timing of our customers' investment schedules. As we do this, we will remain focused on the feedback cycle, which is essential for improving the performance of products as they are introduced.

shift to OLED displays, as well as the development of new types of OLED panels and methods for mass producing them.

SWOT analysis (display production equipment)

• Strong relationships of trust with customers and suppliers cultivated over many years

• Extensive location network and ability to provide swift support thanks to the proximity of our factories to customer sites

• Competitive business advantages enabled by top market share of coater/developers and our full product lineup

• Single-product portfolio (coater/developers)

• Unbalanced market share by region

• Shift from LCDs to OLED and flexible displays as well as diversifying applications in step with technological innovation

• Support from local governments for new display industries

• Business slowdown due to falling panel prices

• Diversifying development needs due to the rise of various next-generation technologies

• Decrease in the number of customers and unbalanced geographical mix due to corporate consolidation and elimination as the industry matures

• Technological progress by competitors

Product groups

Coater/developer

SK series

Roll-to-roll coater/dryer

RT-R series

Market share

Coater/developers for displays

Global share

No. 1

77%*

* Calculated based on the number of products ordered. SCREEN survey data for CY2024.

Strategies and future plan

Improve the profitability of the display business In the fiscal year ended March 31, 2025, we returned to profitability for the first time in three years. Aided by a recovery in market conditions, the long-term reforms we have implemented to improve profitability gradually took effect, leading to these favorable results. Going forward, we will continue to enhance our production system to take advantage of the opportunities presented by rising display demand and satisfy our customers' delivery and customization requirements. We will also develop various new products and solutions with the goal of further expanding our market share for display production equipment.

Enhance our proprietary coating technique and expand the scope of its application

In this area, we have developed innovative new systems by combining our roll-to-roll technologies for substrate transfer with the coating and drying technologies we have developed for display production equipment. These systems use coating processes to produce the electrodes that are crucial to various types of rechargeable batteries, achieving highly uniform, high-speed production. We plan to further strengthen our roll-to-roll product business and open up new application fields by undertaking advanced R&D related to next-generation batteries and providing ground-breaking solutions to the rechargeable battery industry.

Expand the scope of internal OEM business

LIA™ plasma CVD equipment / sputter equipment

VC-R / VS-R series

FT plays an important part in SCREEN's growth strategy through the development and OEM (original equipment manufacturer) contract manufacturing of advanced packaging and energy-related products (such as hydrogen-related products), which are new growth fields for the SCREEN Group. In preparation for the full-scale commercialization of these products, we are currently building a production framework that will allow us to expand our OEM business.

‌PCB-related equipment business (SCREEN PE Solutions Co., Ltd.)

WEB

SCREEN PE group website

Hiroshi Uehara

President, PE

SCREEN PE Solutions has grown in tandem with our customers and the industry thanks to the continued support of our stakeholders. With recent advancements in AI and the expansion of data centers to accommodate increasing data traffic, the pace of technological progress

External environment and trends

Market outlook

In the fiscal year ended March 31, 2025, the semiconductor memory segment continued to feel the effects of the postponement of capital investment plans as manufacturers adjusted their production levels. This also led to stagnation in capital investment for PCB-related equipment. However, a full-scale recovery in investment, driven by increased demand for memory and package products, is expected to begin in the second half of the fiscal year ending March 31, 2026. Looking ahead, the electronic components industry is projected to benefit from key trends such as increasing data communication capacity and speed, the growing adoption of AI, and the shift toward electric vehicles. These factors are expected to drive strong demand for PCBs, suggesting the market is likely to remain robust over the long term.

PCB industry trends and business environment With the rapid, widespread adoption of 5G, AI, IoT, digital transformation (DX), and green transformation (GX), PCBs are being used in a wide range of products, from mobile devices to automobiles. As semiconductor manufacturing processes grow increasingly sophisticated, the importance and market growth potential of PCBs are becoming more evident. PE leverages its core technologies to provide exposure systems for PCB direct imaging; inspection systems for use in circuit defect detection and final product visual inspection; and related services. Going forward, as PCBs become increasingly integrated and miniaturized,

we will continue to provide solutions and production equipment for leading-edge mass production plants.

We also plan to steadily advance deliveries and customer evaluations of our Ledia 8F and Ledia Qs direct imaging systems, developed for high-precision devices such as package and module boards. These efforts will position us to expand sales when investment rebounds. In addition, performance in our after-sales service business is expected to remain firm.

required for printed circuit boards (PCBs) has reached an entirely new level. Likewise, the importance of package boards continues to rise with the evolution of

semiconductor chiplet technologies. In response to these changes, we remain fully committed to supporting our customers in overcoming the diverse challenges they face.

Due to the challenging external environment, the first year of our medium-term management plan began with some difficulties, particularly in achieving our sales targets. Nevertheless, we remain optimistic about steady growth in our core areas of expertise. We are also actively enhancing our product portfolio to better support our customers' business development. I firmly believe this is a time of significant opportunity for PE.

Finer & higher accuracy

Ledia 7F

Ledia Qs

LUPIOS

Ledia 6F

Ledia 6FX

Ledia 8F

Ledia Twin

Ledia 6S

Ledia 6SX

2016

2021 2022 2023 2024 2025E 2026E

SWOT analysis (PCB-related equipment)

• Relationships of trust with customers and suppliers

• Top-class market share for solder resist applications due to the high reliability of our products

• Sales strategy based on both equipment sales and after-sales service from customer perspectives

• A business model that is easily affected by the semiconductor cycle

• Relatively low market share due to a small volume of sales for circuit patterning applications

• Increasing needs for direct imaging systems that enable both high-precision patterning and outstanding productivity

• Growth in the package board market

• Increasing presence of competitors in Asia

Product groups

Direct imaging system

Ledia Qs

Automatic optical inspection system

Automatic final visual inspection system

FP-9200

MIYABI 7

Strategies and future plan

Enhance the presence of our direct imaging systems in the industry

We are committed to securing stable revenue from existing businesses while strengthening the presence of our direct imaging systems in the industry. Our goal is to expand our market share in direct imaging for solder resists and to launch new direct imaging solutions for dry-film resists for circuit patterning.

Expand the use of direct imaging for different applications

We will leverage our direct imaging technologies to drive the expansion of our product offerings into other areas of the electronic component sector. At the same time, we will actively explore a wide range of opportunities to diversify our product portfolio and applications with a focus on cultivating emerging markets and developing innovative products. To support these efforts, we intend to implement targeted marketing initiatives aimed at expanding our customer base.

‌New businesses (Innovation management ▶ p. 32 )

Commercialization

Advanced packaging

Semiconductors continue to evolve for a wide range of applications, such as AI. Packaging technologies, used to protect and integrate semiconductors into electronic devices, are likewise undergoing major changes in their applications to improve system performance, reduce manufacturing costs, improve scalability, and realize higher integration density. To meet these needs, SCREEN

is working to deliver the new technologies and equipment required to produce 2.xD and 3.5D packages, including chiplets.1

Main initiatives under Value Up Further 2026

• Increase the market presence of existing products (direct imaging, coaters)

• Launch new products

  (Cu-Cu low-temperature hybrid bonding, etc.)

• Become profitable in the final year

1. Conventionally, manufacturers have followed a system-on-chip (SoC) approach, in which the CPU, GPU, memory, and other functions are packed onto a single chip. However, producing individual chiplets with separate functions and then

   connecting them inside a package enables production cost reduction while enhancing performance.

   WEB

   Semiconductor package-related equipment

   WEB

   Semiconductors for Beginners (in Japanese only)

   Main initiatives

   Hydrogen-related business

   Commercialization

   People have long adapted energy sources to social needs, taking advantage of technological evolution. The scope of energy use and production is changing dramatically, with the use of fuel cells and photovoltaic power generation spreading at an accelerating pace. In the not-so-distant future, the use of hydrogen energy is expected to become commonplace. Leveraging our expertise in directly coating and drying electrode catalysts on electrolyte membranes, we are actively developing technologies related to hydrogen energy utilization.

   Hydrogen energy cycle

   Renewable energy

   Electricity

   H H

   H H

   Water electrolysis

   Hydrogen

   Circulation

   Oxygen O O

   Fuel cells

   Electricity

   O

   H H

   Water

   
   
   

   Main initiatives under Value Up Further 2026

   • Establish an OEM manufacturing framework for hydrogen MEAs

     WEB

   • Become profitable in the final year

     Main initiatives

     Step 1

     Production

     Step 2

     Storage

     Step 3

     Transportation

     Step 4

     Use

     Mass production of MEAs used in fuel cells WEB

     Membrane electrode assemblies (MEAs) are key

     components that significantly impact the durability

     and performance of fuel cells. We have previously established technologies for directly coating and drying electrode catalysts on electrolyte membranes and are currently mass producing MEAs.

     Joint development of CCMs used in Direct MCH®*

     We are collaborating with ENEOS Corporation to develop CCMs used in Direct MCH® by applying and building upon the technologies we created to manufacture the CCMs used to produce hydrogen through water electrolysis.

     * Direct MCH® is a registered trademark of ENEOS Corporation (registration number: 6323093).

     We are working with Tokyo Gas Co., Ltd. on research and development of catalyst coated membranes (CCMs). CCMs are thin components that produce hydrogen and oxygen through water electrolysis and are a key part of water electrolysis systems. We have established technologies for manufacturing low-cost, high-performance CCMs.

     WEB

     Joint development of CCMs used in PEM water electrolysis

     
     
     

     2. For details about FOPLP, see the description in the advanced packaging box in the diagram below.

     Lemotia PLP coater/dryer system (Released April 2024) WEB

     The Lemotia is a coater/dryer system for advanced semiconductor packages designed for FOPLP,2 glass core, and related substrates. It incorporates technologies and expertise refined in the SK series of coater/developers, which boasts the top market share worldwide in the display segment.

     formation compatible with advanced packages, such as FCCSP, FCBGA, and FOPLP. With laser control technologies based on optical systems employing

     proprietary technologies, we have realized industry-leading resolution of 2 μm in a direct imaging and exposure system for mass production.

     WEB

     LeVina direct imaging system (Released April 2022) The LeVina combines patterning heads equipped with the proprietary GLV™ optical engine for high-precision pattern

     
     
     

     Wafer thinning

     (grinding)

     Chip formation

     (dicing)

     Packaging

     Final inspection

     Conventional methods

     Advanced packaging

     ➊ Die bonding

     ❷ Wire bonding

     ➌ Molding

     Flip chip packaging

     With this method, protruding electrodes called bumps are formed on the circuit surface, and then the circuit is flipped so it faces downward for direct connection to the board. This approach results in a smaller mounting area than with conventional methods.

     Fan-out panel level packaging (FOPLP)

     A packaging method for applying the FOWLP manufacturing process to rectangular panels larger than wafers. This technology is attracting attention for its ability to create thinner, lower-cost packages with higher pin counts.

     Package board

     Chip

     Molding (sealing) Chip

     Wire

     Solder bump

     Adhesive

     Package board

     External terminal

     
     
     

     Cell

     Stack

     Semiconductor manufacturing back-end processes

     Hydrogen

     Commercialization

     Life sciences

     Recent years have seen remarkable progress in biosciences, pharmaceuticals, and medicine alongside advances in research devices and academic areas. The application

     of this progress to precision medicine, drug discovery research, and regenerative medicine has great potential to help people live fuller lives. SCREEN works to provide a variety of solutions that contribute to improving quality of life, such as promoting the real world implementation of precision medicine using cell inspection systems, helping prevent medical errors with inkjet printing system for tablets, and bringing medical devices that offer highly effective therapeutic effects to practical use.

     Main initiatives Biosciences Pharmaceuticals

     1

     2

     3

     
     
     

     Medical devices

     Main initiatives under Value Up Further 2026

     
     
     

     • Expand the sales channels of existing products Step up sales of the cell inspection systems

       
       
       

       Step up sales of tablet inkjet printing equipment

       
       
       
       
       
       

     • Establish a business model for personalized cancer treatment ( 1 , 3 )

       
       
       

     • Promote collaboration with Adriakaim ( 3 )

     WEB

     Life Sciences

     AI

     Cultivation

     AS new business

     Highlight

     Launch of SARIA® multi-purpose AI imaging software

     We have developed and released SARIA, AI software that enables the creation, evaluation, and analysis of image processing models in a single workflow. Our concept for SARIA is providing outstanding scalability that appeals to everyone from beginners to enthusiasts. This multi-purpose software offers a wide range of features, from functions that allow beginners to develop AI image processing models without coding to functions used by experienced AI developers in practical applications.

     (August 2024 , in Japanese only)

     Acquired shares in quantum annealing startup Sigma-i

     We acquired shares in Sigma-i, a startup that has a proprietary core technology in quantum annealing. SCREEN will work with SPARX to support the efforts of Sigma-i

     for the rapid commercialization of quantum annealing technology.

     (December 2023 )

     Investment in AI and artificial intelligence development startup Laboro.AI

     SCREEN has invested in Laboro.AI, a startup primarily engaged in developing and providing custom AI solutions using machine learning. We are working with Laboro.AI on projects to develop and use AI across the Group.

     (July 2021 and September 2022 , in Japanese only)

7-layer MEA

Electrolyte membrane Catalyst layer Sub-gasket

Gas diffusion layer Bipolar plate

5-layer MEA 3-layer CCM

As innovative advances in information technologies bring more attention to big data analysis, IoT, and AI, various industries, including manufacturing, have been

WEB

pursuing new initiatives that integrate production systems with the internet. This is driving needs for IT solutions backed by more highly specialized software technologies. Against the backdrop of this increased demand, the semiconductor production equipment field, in particular, faces an urgent need to further streamline, optimize, and upgrade the entire manufacturing process. As such, the application of AI technologies to all areas from design and development to production has emerged as one of the key factors for securing international competitiveness. By combining our accumulated technologies with AI, we will develop and provide advanced solutions across a wide range of fields, including our existing businesses-most notably semiconductor production equipment-and new businesses.

(in Japanese only)

printed circuit boards (March 2025)

Launch of SCRAIS brand cutting-edge AI-driven inspection and measurement solutions (January 2024)

Collaboration with Rist Inc. to develop next-generation inspection systems for semiconductor wafers and

SCREEN Advanced System Solutions Co., Ltd.

‌IP strategy

Basic policy

The SCREEN Group is working to strengthen the longterm effectiveness of intellectual property (IP) while also establishing an IP portfolio integrated with corporate, business, and R&D strategies. Success with this will ultimately enhance our corporate value.

IP governance system

SCREEN maintains the Intellectual Property Strategy Committee. The committee is chaired by the CEO and includes SCREEN Holdings executive officers in charge of R&D, corporate strategy, marketing, human resources, and IP, as well as the officer responsible for IP strategy at each business operating company and the president of SCREEN IP Solutions. In addition to sharing information related to IP strategy activities across the SCREEN Group, members discuss group-wide measures to support the Group's competitive advantage and take other steps to maintain and strengthen IP and other intangible assets.

Details of the committee's discussions are also reported

to the Management Committee and the Board of Directors. The Board provides oversight regarding the matters reported, thus forming an effective IP governance system.

HD Board of Directors

HD Management Committee

Intellectual Property Strategy Committee

Other IP-related conference bodies

IP strategy in Value Up Further 2026

IP strategy is one of the business growth strategies of our Value Up Further 2026 medium-term management plan. We are applying it to promote the creation, utilization, and

IP strategy promotion under Value Up Further 2026

protection of intellectual assets. This strategy is organized along three strategic pillars: 1. IP portfolio management,

1. global IP strategy, and 3. AI-related and green invention enhancement.

Under 1., IP portfolio management, we proactively seek to acquire IP rights in key technology areas linked with long-term business and R&D plans. Under 2., global IP strategy, we are working to align IP rights acquisition with sales by region while promoting multifaceted protection based on a strategic IP mix. Under 3., AI-related and green invention enhancement, group-wide efforts are steadily advancing the acquisition of IP rights to AI-related and green inventions that will contribute to our businesses.

Internal IP education and awards

We have established an IP education system designed to instill the abilities required of employees at specific levels. The system covers everything from IP basics to dispute handling, with a particular focus on protecting and respecting IP. As part of this, we are increasing opportunities for practical training using case studies aligned with our actual businesses and organizations in an effort to increase corporate value. We have also established multiple internal award systems to help increase employees' motivation with regard to IP activities.

Job-level specific training

Protection of and respect for IP IP management

IP disputes

Mid-career hires

Introduction to IP IP administration

IP education

New graduate hires

IP basics

Patent system basics

Basics of reading patent publications

Theme-specific training

AI-related/green inventions Business model invention

Documentation of inventions, patent searches Design patent education

Dialogue

Taking our IP further

Masato Goto

Representative Director President

and Chief Executive Officer (CEO)

Itaru Hatanaka

Executive Officer

In Charge of Legal and IP

Formation of the Intellectual Property Strategy Committee

Hatanaka: It is crucial to integrate IP strategy with corporate, business, and R&D strategies. However, we did not previously have a venue for group-wide discussions of IP strategy.

Goto: Around the time the Intellectual Property Strategy Committee was established, I was president of the semiconductor production equipment business. Because there was no discussion at the group-wide level, the strategies of each business were unaligned, and it was hard to tell what the other businesses were doing.

Hatanaka: Before we created the committee, IP-related information was often separately held and utilized by the individual businesses and IP department, and group-wide information sharing was inadequate. For the sake of the SCREEN Group's future growth, we felt that we needed to create a body for the strategic discussion of IP at the group-wide level. To fill this need, and also to respond to the June 2021 revision to Japan's Corporate Governance Code, we decided to establish the committee.

Changes since the committee's creation and its future

Goto: I think that we are making progress in shifting from just business-specific local optimization to overall optimization. For example, while the Group's main

businesses are in equipment sales, we have also begun businesses in parts sales, such as the hydrogen-related business. Whether a business sells equipment or parts impacts its strategy for protecting its technologies.

Through the committee's discussions, we determine IP policy, strategy, systems, and guidelines. As a link

across businesses, the committee can ensure that these are applied in future new businesses to protect their technologies at the same level. In this way, I think we are establishing a solid foundation that will be effective across the Group even in the face of business model changes.

That said, we still have a lot to do.

Hatanaka: The committee also includes the SCREEN Holdings executive officers in charge of corporate strategy, marketing, and human resources. This helps reinforce coordination in terms of exploring topics, improving R&D environments, recruiting and developing talent, and investing resources while enabling the formulation and fine-tuning of IP strategy that is aligned with corporate, business, and R&D strategies and helps improve corporate value.

Goto: Above all, strategy must be broken down to a concrete, applicable level and communicated to employees on the ground. We will continue to promote active discussion at committee meetings in order to further bolster the effectiveness of IP strategy.

Strategy 1

(in Japanese only)

Received a 2025 award from

the Ministry of Education, Culture, Sports, Science and Technology in the field of science and technology

Strategy 1

(in Japanese only)

Received a 2024 award from

the president of the Japan Patent Attorneys Association

Strategy 1 Strategy 2

Selected as a Clarivate Top 100 Global Innovator for the fourth consecutive year

Corporate strategy Business and R&D strategies

Coordination between strategies of HD

and the four major business operating companies

IP strategy

Strategy 1. IP portfolio management Strategy 2. Global IP strategy Strategy 3. AI-related/green invention enhancement

Create, maintain, and utilize IP that enhances our competitiveness

• Set KPIs for IP in key technology areas linked with long-term business and R&D plans

• Promote patent filing in new business areas (advanced packaging, hydrogen, life sciences)

• Link with innovation management

  Strategy 3

• Conduct patent evaluations using objective IP metrics

  Invest in IP in step with global business strategy and market conditions

• Continue filing a high proportion of SPE-field patent applications outside Japan

• Promote acquisition of IP rights aligned with sales by region

• Promote multifaceted protection based on a strategic IP mix*

  * Strategy for enhancing business competitiveness through the combined use of patents, trademarks, designs, and know-how

  Reinforce AI-related/green invention IP creation

• Promote the creation and rights acquisition of "AI core inventions" as well as "AI-related inventions" that apply to our equipment

• Promote the creation and rights acquisition of green inventions that help to reduce environmental impact through business activities

Note: For details about our patents held, see "Performance highlights" (p. 28).

See "Semiconductor production equipment business" (p. 33) for a highlight column related to Strategy 3.

‌Sustainability strategy

The SCREEN Group promotes sustainable management, an approach to achieving sustainable growth by enhancing corporate value through the creation of shared value (CSV). CSV is the generation of both social value and economic value by accommodating social needs through business activities.

Basic policy

The SCREEN Group has established individual policies for the main areas of its sustainability-related initiatives based on the CSR Charter and Code of Conduct, which was in turn created based on the corporate philosophy.

Specifically, these are the Environmental Policy, Human Rights Policy, Occupational Safety and Health Policy, Human Resource Management Policy, Procurement Policy, Disclosure Policy, Social Contribution Policy, Compliance Policy, and Risk Management Policy. These nine policies lay out clear and specific guidelines for initiatives in their respective areas.

To ensure their practical applicability, the CSR Charter and Code of Conduct and the individual policies were formulated in alignment with such international frameworks as the UN Global Compact (comprising 10 principles in the four areas of human rights, labor, the environment, and anti-corruption), OECD Guidelines

for Multinational Enterprises, ILO International Labour Standards, and RBA Code of Conduct.

In addition to respecting these frameworks, we proactively advance sustainable social development through support for a variety of international initiatives.

Promotional framework

To effectively implement sustainable management, we have established two group-level committees: the Group Risk Management Committee and the Sustainability Committee.

The Sustainability Committee was formed by merging our existing CSR Committee and Group EHS Committee in order to deliberate and advance the full range of sustainability-related issues and initiatives in a centralized and strategic manner. This reorganization has strengthened the committee's function as the Group's

central decision-making body for sustainable management and helped to unify and align initiatives across the Group.

The persons responsible at the group companies involved in these efforts take part in the committee, sharing information and promoting intra-group collaboration. In addition, under the committee, seven specialized subcommittees engage in strategic and practical discussions. Two of these, the human rights and ethics subcommittee and information security

subcommittee, have been newly established for discussions focused on their respective specialties in light of growing social demands in these areas.

The subcommittees develop and drive implementation of practical measures based on the CSR Charter and Code of Conduct and related policies, ensuring consistency with the aforementioned international frameworks. They engage in active and intensive discussion, the results of which are shared with the Sustainability Committee and then reflected in management-level decision making.

Note: For details about the group committees, see "Corporate governance" (p. 68).

Strategy implementation

To realize the 10-year vision laid out in the Management Grand Design, we have identified four material issues that SCREEN's management needs to address. We seek to address these issues through sustainable management.

New value Providing new value to society and people

Environment Reducing environmental impact

Human resources Encouraging personal growth of each employee

Business foundations

Continuously enhancing business foundations

Our sustainability strategy forms the core of our sustainable management. We have positioned it as a shared strategy applicable to both business growth and business foundation enhancement under Value Up Further 2026, our medium-term management plan for achieving the goals of the Management Grand Design. Based on this strategy, we are implementing global initiatives throughout the value chain.

More specifically, we have formulated Sustainable Value 2026, our medium-term plan for enhancing social value under Value Up Further 2026. In line with this plan, we are implementing a variety of initiatives organized into the three categories of environment, social, and governance (ESG).

Under environment, we have established the Environmental Policy based on the principle of "establishment of friendly environment for people and our planet." Aiming to protect the natural environment for future generations, we work to contribute to decarbonization, the creation of a sound material cycle, and the sustainable development of a society in harmony with nature.

Strategies for boosting corporate value

Business foundation enhancement

Shared strategies

• Brand strategy

• Sustainability strategy

Business growth

Environment Social

Aim to reduce environmental impact Create a rewarding work environment through business activities and tackle social issues

Governance

Strengthen internal controls and risk management

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Under social, we have established the Human Rights Policy and Occupational Safety and Health Policy in alignment with international human rights standards, including the UN Global Compact and Universal Declaration of Human Rights. The entire Group works

together on related initiatives spanning a broad range of issues, including respect for human rights, health and productivity management, human capital management, social responsibility in the supply chain, and social contribution.

In terms of governance, we recognize that maintaining robust corporate governance, enhancing and strengthening risk management that reflects environmental changes, and fostering compliance awareness among employees are all essential for

the Group to grow sustainably and fulfill its social responsibility. As such, we strive to maintain and enhance corporate governance.

While the SCREEN Group's ESG initiatives are broad-ranging, and we strive to comprehensively address each of these areas, we have designated 19 priority ESG issues in order to more effectively advance initiatives.

These priority issues were selected mainly to align with the outcome targets of the Management Grand Design, the targets of Sustainable Value 2023 (the previous medium-term plan) that we fell short of, and the topics we want to (or need to, based on broader social factors) prioritize under Sustainable Value 2026. We plan to flexibly revise them going forward, on an ongoing basis, in light of changes in social and other sustainability-related conditions.

In the fiscal year ended March 31, 2025, the first year of Sustainable Value 2026, we met our targets for 17 of the plan's 19 key issues. The Sustainability Committee and related organizations will continue to advance a

PDCA cycle as the Group works in unison toward ongoing improvement.

Note: For details, see "Management Grand Design" (p. 19) and "Medium-term Management Plan" (p. 21).

‌Environment

The SCREEN Group has established the Environmental Policy as a supplement to the CSR Charter and Code of Conduct. Based on this policy, we work to reduce environmental impact through our business activities.

Having obtained certifications under ISO 14001 for the environment and ISO 50001 for energy, we comprehensively manage risks and opportunities. At the same time, through the Sustainability Committee and its subcommittees, we share information about

risks and opportunities and conducts scenario analyses. We then publish the results in line with the TCFD recommendations. In the fiscal year ended March 31, 2025, we updated our disclosure for all four of the Group's main businesses, having completed the above-mentioned process in the previous fiscal year.

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Initiatives for TCFD Recommendations

Conserving biodiversity

Social

SCREEN has formulated its Human Rights Policy based on the principle of "respect for human rights and friendly work environment" set forth in the CSR Charter and Code of Conduct and in line with such international standards for human rights as the Universal Declaration of Human Rights and UN Global Compact. We implement related initiatives throughout the supply chain based

on the understanding that respect for human rights is indispensable to the viability of all business activities.

company employees working on group premises, we strive to continually improve work environments and prevent occupational accidents. Specifically, with a focus on nipping potential risks in the bud, we implement such key measures as group-wide worksite patrols. When an occupational accident occurs, we work to swiftly identify its causes, formulate countermeasures, and then verify their results in a thoroughgoing PDCA cycle.

Note: For details, see "Promoting social responsibility in the supply chain" (P. 59).

environmental issues and work toward ongoing improvement. In addition, the Group Risk Management Committee manages environmental risks for the Group as

Biodiversity is closely linked to environmental and social issues. We take a comprehensive, multi-factor approach to issues in this area, including climate change, water

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Health and productivity management

The CEO assumes the ultimate responsibility for the

Safety and health initiatives

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Governance

Social Contribution Activities

a whole.

Climate change: Carbon Neutral Declaration

The SCREEN Group strives to mitigate business risks due to global warming while creating new opportunities. To this end, we are reducing greenhouse gas (GHG) emissions by saving energy through effective energy management and expanding the use of electricity derived from renewable energy. In the fiscal year ended March 31, 2025, we achieved 100% renewable electricity usage at group business sites in Japan.*

We have also formulated a plan for reducing our GHG emissions at a pace exceeding that needed to

reach our target approved by the Science Based Targets

resource management, and waste reduction.

In terms of water resource management, to reduce impacts on aquatic environments and their ecosystems, we are systematically advancing the management of water resources in our business activities in cooperation with local municipalities and research institutions. As for waste reduction, in the fiscal year ended March 31, 2025, we achieved a 47.6% reduction in weight per unit of net sales compared with the fiscal year ended March 31, 2019.

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Initiatives to this end included turning waste such as waste plastic and wooden pallets into valuable materials. We also thoroughly assess regulatory compliance as part of our effective management of chemical substances.

Group's health and productivity management. By

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promoting physical and mental wellness at both the individual and workplace levels, we strive to enhance overall performance. The Group has outlined its priority initiatives in this area in its nine wellness promotion tenets. Under this banner, we implement wellness promotion initiatives that support individuals while respecting their autonomy. These initiatives have earned significant external recognition.

Wellness initiatives

For a company to grow sustainably and fulfill its

social responsibility, robust corporate governance, risk management that accounts for diverse environmental changes, and the fostering of compliance awareness among employees are all crucial. Based on this awareness, we strive to maintain and enhance our corporate governance.

In line with the SCREEN Group's corporate purpose, we have established and maintain the Code of Management, which regulates the internal control policies and systems of group companies, along with related rules and regulations. By doing so, we aim to reinforce governance with due consideration of stakeholder interests and thereby ensure

management transparency, operational appropriateness

initiative (SBTi) as consistent with the level required to keep the global temperature rise to 1.5ºC. We achieved

Promoting Effective Use of Resources

Preventing Pollution

SCREEN has designated the nine areas of

and legality, and swift decision making and business execution.

our reduction targets for the first fiscal year of the three-year management plan for both emissions from business activities (Scope 1+2) and emissions from the use of sold products (Scope 3 category 11).

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* At the Group's eight major business sites Climate Change Initiatives

Enhancing disclosure in line with the TCFD framework With an eye toward carbon neutrality by 2050, SCREEN maintains an ongoing project involving outside experts

to advance disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The project identifies and evaluates material

Strategy

100% renewable electricity at Head Office, Hikone 100% renewable electricity Balancing the total energy consumption of the buildings Decarbonizing fuel-based energy

Site, Taga Site, Kuze Site, and Monzennakacho Site at the main sites through energy saving and energy generation through the use of hydrogen

Offsets

7%

Renewable

Renewable

Renewable

energy

51%

energy

65%

energy

73%

Renewable energy

93%

Ratio of renewable energy¹

Non-renewable energy 99%

FY2019/03

FY2025/03

FY2027/03

FY2030/03

FY2050/03

Targets²

1.5°C aligned²

(SBTi approved)

Base year 50,566 metric

−70%

−75%

tons CO2e

Achievement

−56.6%

21,961 metric tons CO2e

15,170 metric tons CO e

2

12,642 metric tons CO e

2

−36.6%

32,039 metric tons CO2e

−50.4%

25,081 metric tons CO2e

−100%

0 metric tons CO2e

Decarbonization targets (Scope 1+2)

Environmental value of SCREEN technologies Our environmental efforts extend across the entire product lifecycle, from the development and provision of eco-friendly products and services to proactive green procurement. In particular, to further reduce GHG

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emissions and other impacts from the use of our products by clients, we certify products that meet our internal environmental performance standards as Green Products or Super Green Products. We have tied these certifications to outcome targets in the Management Grand Design and promote their development and sale.

Provision of eco-friendly products and services

exercise, diet, sleep, alcohol consumption, smoking, stress, medical exams, expert advice, and workplace improvement as key tenets of wellness promotion in Japan. These nine tenets are at the core of our wide-ranging health promotion measures.

Human capital management with a focus on well-being

SCREEN believes that people and technologies are the essential elements that enable the fulfillment of its corporate purpose and that, of these, people are the keepers of technology. We therefore proactively

invest in talent and work to implement effective human capital management rooted in health and productivity management. In addition, the Management Grand Design identifies well-being as an important megatrend for the Group, and we believe that enabling employees to work with enthusiasm and vigor is crucial for them to excel as solution creators and thereby enhance corporate value.

Based on this belief, we are focusing efforts on human capital management, including boosting employee engagement, as part of organization building to support sustainable growth.

Note: For details, see "HR strategy" (p. 53).

Occupational safety

In parallel with health, we are also working to promote safety as a key management priority. To ensure the

Note: For details, see "Corporate governance" (p. 63).

Reinforcing risk management

In light of the various changes in the SCREEN Group's operating environment, we have designated the reinforcement of risk management as a key management issue. Specifically, based on the Group's

Risk Management Operation Policy, we have established the Group Risk Management Committee to effectively handle risk by comprehensively identifying business risks, studying appropriate risk management measures, including mitigations, and understanding the state of risk management through a control and monitoring framework.

Note: For details, see "Risk management" (p. 61).

Developing compliance awareness

The SCREEN Group has established the CSR Charter and Code of Conduct as principles and standards of conduct for everyone in the Group based on the corporate philosophy. In line with the charter and code, the Group complies with all applicable laws and regulations, as well as ethical standards, of all relevant countries and regions and conducts business activities in a fair and transparent manner. In addition, we work to develop compliance awareness through ongoing education for the officers and employees of group companies worldwide.

1. Ratio of renewable energy use to total energy use (kWh equivalent). Ratio of renewable energy includes electricity derived from renewable energy sources as well as conversion to hydrogen and other green fuels.

2. Percentage reduction compared with the base year

occupational safety of group employees as well as partner

Note: For details, see "Compliance" (p. 60).

Stepping up sustainable management

Tetsuya Ito

Executive Officer

Head of Sustainability Strategy

The flexibility to turn change into growth

In the area of sustainability, we are seeing-and will likely continue to see-wide-ranging changes of unpredictable scale and speed.

Looking at climate and energy policy, for example, the "Trump 2.0" administration has announced reversals of decarbonization policy, sparking concerns about negative impacts on environmental measures globally. At the

same time, environmental considerations have expanded rapidly from climate change to include biodiversity, and geopolitical risks are growing increasingly serious. To implement sustainability strategy in these circumstances, flexibility and speed in business management will be crucial in order to be more alert to change while accurately understanding and meeting new risks and opportunities.

In the current fiscal year, the SCREEN Group has launched the Sustainability Planning Department and increased the frequency of the Sustainability Committee's meetings, enabling more agile discussion and decision making related to incorporating ESG-related factors into strategy. In terms of changes, the inclusion of sustainability information as part of statutory disclosure in annual securities reports in Japan is currently being considered under the guidance of the SSBJ.* Rather than taking a passive stance to such change, such as responding to

legal amendments as they are enacted, we see change as a valuable opportunity to further evolve our efforts. And rather than merely conforming to regulatory requirements, we will therefore develop and implement measures crafted specifically for SCREEN.

* SSBJ: Sustainability Standards Board of Japan

Our sustainability lies in our purpose "Innovation for a Sustainable World" is the SCREEN Group's corporate purpose. This means combining the strengths of our people and our technologies to provide unique solutions to diverse issues facing society through

our business and thus helping to build a sustainable world. Initiatives aimed at fulfilling our purpose also contribute to the Group's sustainable growth and development. In this

sense, I believe that the pursuit of the corporate purpose is the true essence of the SCREEN Group's sustainability.

Our sustainability-related initiatives are both very

wide-ranging and interconnected, so further reinforcement of collaboration across departments will be crucial.

For example, under Sustainable Value 2026, we are implementing initiatives within an ESG framing, and one of the social initiatives is health and productivity

management. We are implementing measures to promote physical and mental wellness at both the individual and workplace levels. As the head of sustainability strategy, going forward, I will act with even greater awareness

of the links between these efforts and the HR Strategy Division and other departments so that the entire Group can work together on initiatives to improve employee engagement. By doing so, we will create the conditions for all employees to thrive as solution creators and work toward our purpose while supporting the continued growth of the SCREEN Group.

Encouraging all employees to take ownership For our sustainability initiatives to bolster corporate value, above all, it is vital that all employees take ownership of sustainability.

To recognize employee initiatives that contribute to enhancing social value, until now, the SCREEN Group has used the Sustainable Value Award system. However, only certain organizations within the group have submitted entries for consideration.

To fill the remaining gap, beginning in the current fiscal year, we have launched the group-wide Sustainable Action Challenge initiative. The goal is for employees to think of solutions to social issues or innovations and ideas for enhancing the SCREEN Group's social value and put them into action, so that every employee can grow into a solution creator. Going forward, we want all employees to steadily move forward with a strong awareness of their role in promoting sustainability and a sense of ownership of efforts to increase corporate value.

Supply chain management

Note: For details, see "Risk management" (p. 61).

Large-scale drill at the Hikone Site

Large-scale fire drill

In light of natural disasters and accidents occurring around the world, to enhance the effectiveness of BCPs when disaster strikes, a large-scale evacuation drill was held at the Hikone Site, including cleanrooms, based on a factory fire scenario.

nearby Taga Site, and it was found that all of these areas were being

appropriately managed. As a result, the site was awarded Platinum Status

under the RBA VAP.

Achieved Platinum Status

in RBA VAP audit (Hikone Site)

SPE underwent a Validated Assessment Program (VAP) audit of labor, health and safety, environment, ethics, and management systems for the Hikone Site, which also covered the

Wellness initiatives

SCREEN Forest activities

Social Contribution Activities

Exhibition tour in the head office lobby

Forest" conservation activities as part of the Kyoto Model Forest initiative. These are just a few of SCREEN's wide-

ranging social contribution activities.

Broad-ranging social contribution

SCREEN worked with the NPO TENSAI Art KYOTO

to support the creative activities of people with disabilities and

implemented "SCREEN

Included in the KENKO Investment for Health Stock Selection and selected as a Health

and Productivity Management Outstanding Organization

SCREEN was included for a second consecutive year in the KENKO Investment for Health Stock Selection, which recognizes companies listed on the Tokyo Stock Exchange that are

implementing outstanding health and productivity management. In addition, for a third consecutive year, SCREEN was selected as a Health and Productivity Management Outstanding Organization (called "WHITE 500" by METI) in recognition of its excellent

efforts in this area.

Climate Change Initiatives

Monzennakacho Site

Hikone Site Taga Site

Head Office Rakusai Site Kumiyama Site

Takaoka Site

Yasu Site

carbon neutrality in its business activities, SCREEN achieved 100% renewable electricity usage at its eight main business

sites in Japan.

Climate Change Initiatives

Achieved 100% renewable electricity at major sites in Japan

Working toward

FY2025/03 highlights

Reached annual GHG emissions reduction targets

We achieved our targets for the first year of Value Up Further 2026 in line with our SBTi-approved GHG emission reduction plan

(Scope 1+2, Scope 3). We will continue working toward carbon neutrality

by 2050.

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‌HR strategy

HR strategy under Value Up Further 2026

Our HR strategy is geared toward encouraging the personal growth of each employee, one of the material issues designated in the Management Grand Design. Under our medium-term management plan, Value

Up Further 2026, we are pushing forward with our HR strategy in coordination with corporate strategy.

Value Up Further 2026: Steps for promoting our HR strategy

Developing solution creators is the key to this endeavor. Centering efforts around the talent portfolio framework, we are enhancing our HR foundation for sustainable corporate growth by both encouraging personal growth and creating a vibrant corporate culture through a cycle of recruitment, development, and retention.

Developing solution creators, fostering professional fulfillment

Yasuhito Shiraishi

Senior Executive Officer Head of HR Strategy

Create a vibrant corporate culture and encourage individual growth through a cycle of recruitment, development, and retention based on corporate strategy

• Engagement survey

Positive response rate: 70% or above1

1. Consolidated basis

Corporate strategy

Optimal HR allocation linked to corporate strategy

HR strategy

Create a vibrant corporate culture and encourage individual growth

Enhance talent portfolio management through a cycle of recruitment, development,

and retention

Highly skilled professionals

Corporate philosophy uptake

Extending the mandatory retirement age

Retention Recruitment

Talent portfolio

Securing diversity

Employing people with disabilities

Development

Developing solution creators

Strengthening the linkage of corporate strategy and HR strategy

• Need to advance from corporate philosophy and Management Grand Design recognition to resonance and action

• Efforts to create environments to enable diverse talents to succeed

• Declining group unity as business scale expands

• Global HR measures not yet started

  Where we stand

  • Engagement survey positive response rate: 65%

  • Quantity: Talent portfolio management not yet started

  • Quality: 53% of employees at organizational solution creator (SC) level 2 or higher

Final-year outputs (strategy KPIs)

The SCREEN Group is committed to creating new value in its wide-ranging operating segments, such as the semiconductor production equipment business, while maintaining its competitive advantage and robust market presence in a fast-changing business environment. The Group's business growth is supported by human resource (HR) strategy, which is the centerpiece of SCREEN's corporate management. Reflecting this, "encouraging personal growth of each employee" is designated as one of the Group's material issues.

Well-being

Improved engagement

Corporate purpose Innovation for a Sustainable World

Management Grand Design

Our 10-year vision

Integrate corporate strategy with

HR strategy

HR strategy

Try and try again with passion and honesty

Drive innovation as a team

Take ownership

Solution creator

SC attitudes

Think deep, see through to the essence

Employee wellness

Corporate value enhancement

In implementing our HR strategy in coordination with corporate strategy, we strive to ingrain the corporate purpose and develop talent who can act as solution creators, as laid out in our 10-year vision. In the fiscal year ended March 31, 2025, we closely linked HR measures with the attitudes required of a solution creator* (the "SC attitudes") and incorporated these principles into the talent recruitment, development, performance evaluation, and promotion processes to drive further growth. Our employee engagement survey has found that 90% of respondents understand and resonate with the corporate purpose. The next step, therefore, is for each employee to put it into practice and produce results.

In line with the talent portfolio framework, we are

securing and developing highly skilled professionals and working to strengthen our global competitiveness while respecting diverse values. To create a sustainable work environment, we are building a positive spiral of

recruitment, development, and retention while measuring employee mindsets through the employee engagement survey and fostering dialogue with senior management.

In the fiscal year ended March 31, 2025, our focus on facilitating communication and collaboration and

presenting career paths for employees resulted in a higher rate of positive responses to the engagement survey. We will continue steady efforts to achieve the medium-term management plan target: positive response rate of 70% or above in the final year.

To enable our solution creators to demonstrate their full potential, we are committed to promoting employee well-being, which we believe will enhance personal and organizational performance and thereby positively impact productivity and profitability.

As the head of SCREEN's HR strategy, I am determined to support sustainability management with a focus on securing psychological safety, giving support for employees balancing work and parenting, and promoting flexible work styles. Based on employees' physical and mental

well-being, we seek to create a corporate culture founded on professional fulfillment.

* SC attitudes: See the table on p. 56.

• Talent portfolio management

Quantity: 90% fulfillment rate2

Quality: 60% of employees at organizational SC level 23 or higher

1. Number of personnel in each job type as a percentage of the number required

2. Capable of solving issues by working with clients and leading clients forward

• Global

Conduct engagement surveys

Formulate talent portfolio management measures

Value Up Further 2026: HR key performance metrics and actions

Create a vibrant corporate culture and encourage individual growth

‌Talent portfolio management

In the face of a shrinking working-age population in Japan and many other countries and intensifying talent shortages, especially in the semiconductor industry, innovation by diverse human resources is essential to long-term growth and corporate value enhancement.

To address these challenges, our recruitment activities emphasize hiring by job type in line with business strategy, based on the talent portfolio framework established in

the fiscal year ended March 31, 2024. We will continue working to strengthen the HR foundation through the repeated implementation, review, and improvement of our HR strategy.

Recruitment

Hiring the talent fundamental to growth strategy while enhancing expertise and diversity

Recruiting people who can drive the growth strategy forward is a top corporate priority. With competition to hire excellent talent intensifying, especially in engineering fields, we are committed to recruiting people with the makings of solution creators and fill out our talent portfolio.

To attract highly skilled professionals,* we provide internship programs and site tours for engineering students to help them better understand our businesses and how they address social issues as well as the relevant job types. In the fiscal year ended March 31, 2025, our

focus was on hiring students completing PhD programs in engineering. We expanded contact with such individuals by holding exclusive recruitment seminars and providing information. As a result, a record-high 12 individuals with PhDs in engineering joined the Group in April 2025.

Empowering women is one of our strategies to ensure diversity in the workplace in order to drive innovation. The SCREEN Group aims to raise the portion of management positions held by women to 6% or above and the percentage of women among all employees to 15% or above by the fiscal year ending March 31, 2031. To this end, we have set the target of increasing the percentage of women among yearly new graduate hires to 20% or above. In the fiscal year ended March 31, 2025, we took multi-faceted approaches to help students envision their future careers, including roundtable talks with female employees, videos presenting the career paths of role model employees, and recruitment brochures. As a result, women accounted for 19.9% of the new graduates that joined the Group in April 2025, coming very close to the 20% target.

By incorporating the SC attitudes into the hiring

criteria, we will maintain emphasis on recruiting diverse talent who resonate with the corporate purpose and can put it into practice.

* "Highly skilled professionals" refers to those who can contribute to the Group based on exceptional expertise in specific fields.

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SCREEN CAREER & LIFE BOOK for women (in Japanese only)

Development

Rebuilding the training system

In the fiscal year ended March 31, 2025, we revised the SCREEN BUSINESS SCHOOL training program with a view to continuously developing solution creators and enhancing job level-specific skills. The new program systematically offers training courses suited to development needs at each job level. For example, we introduced a critical thinking curriculum to improve managers' strategic planning and HR management

abilities as well as non-management employees' problem-setting and logical thinking skills. Training on coaching and facilitation skills, which is in high demand among employees, also continues on a voluntary basis as part of measures to facilitate employees' self-motivated learning.

FY2023/03 FY2024/03 FY2025/03

Investment in education and training

1. Total expenses for course and other fees and education and training costs

2. HD, business operating companies, and functional support companies

3. Includes companies in 2. and consolidated group companies in Japan. Data collected since the fiscal year ended March 31, 2024.

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4. All consolidated companies, including group companies outside Japan. Data collected since the fiscal year ended March 31, 2025.

SCREEN BUSINESS SCHOOL

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Management-by-objectives (MBO) and 360-degree evaluation

Building understanding of the SC attitudes through dialogue with senior management SCREEN Leaders Talk is a series of lectures given by senior management. The project was launched in the fiscal

year ended March 31, 2025 to create opportunities for

employees to deepen their understanding of the corporate purpose and the SC attitudes (defined in the fiscal year ended March 31, 2024) in the context of their work.

Senior management members talk, based on their own experience, about strategies and plans in their respective business areas and how these relate to the SC attitudes, inspiring employees to broaden their perspectives and improve their decision-making skills. The talks continue in the fiscal year ending March 31, 2026 as a valuable learning opportunity that directly brings management insight to regular employees.

Five attitudes required of a solution creator

Think deep, see through to the essence

Take ownership

Drive innovation as a team

Try and try again with passion and honesty

Earn respect from clients

Workshops for managers

In the fiscal year ended March 31, 2025, workshops were held for managers in the Group's seven key companies to promote their understanding and application of the SC attitudes. The goal was to help every employee to act as a solution creator and produce positive results. Participants looked back on their past actions as a solution creator and discussed concrete steps to take while sharing strengths and challenges experienced in their teams. Organizations throughout the Group are working to promote dialogue and change behaviors in accordance with the SC attitudes.

SCREEN's strength lies in value creation from different perspectives:

My perspective as a mid-career hire

Kazuhide Saito

Managing Director

Cleaning Equipment Engineering Operations, SPE

In my previous job with a device manufacturer, SCREEN made a strong impression on me as the supplier most responsive to client requests. After joining SCREEN, I was assigned to R&D for the leading foundry in Taiwan and worked with the client to overcome challenges with new equipment before production. Once I was promoted to a management position, I managed Japanese staff working at the local office and supervised local engineering operations. Through these experiences, I have realized that an overwhelming strength of SCREEN lies in exactly the impression I had before I joined the organization.

To move further forward, I believe the Group should

take advantage of this strength, with each SCREEN employee acting as a solution creator by making proactive proposals that help clients overcome the challenges they face. To do this, insights gained from different perspectives matter. In this regard, SCREEN is full of opportunities for mid-career hires to demonstrate their abilities.

In my current position, while always searching for ways to better serve clients, I am eager to work toward creating a fulfilling work environment that constantly motivates staff.

Charting our future and inspiring action: Developing solution creators in our own teams

Ryoko Abe

Managing Director, Head of Finance & Accounting Department Financial Strategy Division, SCREEN Holdings

We held a solution creator workshop for finance and accounting units in November 2024. It included group discussions on the 10-year vision as it applies to our current workplaces or teams, and each one of us thought about first steps to take to bring ourselves closer to the vision. Through group work, we reaffirmed our shared vision to be a dependable presence for the business

operating companies and other departments, helping foster a sense of unity within my department. As the head of finance and accounting, I will continue working to develop talent, honing our expertise to deliver solutions beyond expectations and work in closer coordination with business operations, always keeping their needs in mind.

Retention

Strengthening unity through dialogue and connection building

In April 2023, we redefined our corporate philosophy and revised the Management Grand Design, which lays out our 10-year vision and basic policy for enhancing corporate value. To disseminate the philosophy and policy across the Group, we extended town hall meetings, where the CEO and other senior management members talk directly with employees, to group companies in and outside Japan. As of March 31, 2025, we have held 57 town hall meetings with about 4,400 participants. These meetings serve as a place for dialogue where employees can hear directly from senior management, helping to align mindsets and efforts across the Group and fostering solidarity.

Another initiative is Connecting the Dots, a new

exchange program designed to create connections across organizational and business boundaries. In the fiscal year ended March 31, 2025, approximately 160 employees participated and learned from one another about wide-ranging topics, such as organizational development, innovation management, and balancing work and caregiving. These activities deepened mutual understanding across companies and job levels and strengthened group solidarity.

Town hall meeting at SCREEN SPE Germany

Enabling diverse talent to succeed

Raising the retirement age to create more opportunities: Transferring experience to future generations

SCREEN values the hard-earned skills of employees,

revealing issues concerning pay levels and employment patterns after reemployment that sometimes were discouraging for employees or caused managerial difficulties. Our internal surveys have indicated that employees are more likely to be motivated and productive when they feel that their work is recognized and makes

a difference. Such insights have been reflected in our systems. We are focused on building an environment where employees of all ages can autonomously develop their careers and make valuable contributions in their respective roles while passing their knowledge and skills to future generations.

Accommodating diverse work styles and reviewing family allowances to support the next generation By improving systems to support flexible work styles, the Group seeks to ensure that its employees can continue to work comfortably through changing life stages, such as pregnancy, childbirth, childcare, caring for ill or elderly family members, or undergoing treatment for illness. We offer a variety of leave systems tailored to diverse needs.

These include a work-at-home system, "refresh" leave consisting of five consecutive paid days off, and parenting support leave, offered to encourage employees to participate in their children's school events. Our employee engagement survey indicates high levels of satisfaction in the area of employee-friendly work environments.

Our family allowance system has also been revised in light of societal changes in family responsibilities and the way married couples work, shifting focus from the spouse allowance to greater support for employees with childcare or nursing care expenses. The next generation support allowance and the special support allowance have been added to ease the financial burden on employees with dependent children under 20 and employees who have family members with severe disabilities or that require nursing care. Going forward, the Group will continue

to strive to enhance its organizational sustainability by offering a workplace where every employee can fully demonstrate their abilities according to their life stage.

FY2025/03

Focus on talent retention and engagement to strengthen frontline operations

and build client confidence

Kojiro Basugi

President, SCREEN SPE Taiwan Co., Ltd. (as of the time of interview) (now President, SCREEN SPE Service Co., Ltd.)

SCREEN SPE Taiwan engages in sales activities and provides engineering services for clients in Taiwan. In the fiscal year ended March 31, 2022, a very busy period

in the semiconductor industry, we faced a crisis when a quarter of our employees quit. For an engineering service company, losing skilled engineers is a serious blow.

We responded by stepping up efforts to enhance employee engagement. In addition to improving compensation, appointing younger employees to key posts, and implementing unique measures to raise job satisfaction, we organized an event to ingrain the corporate philosophy where then-Group CEO Hiroe

spoke directly to our staff about the corporate purpose. These initiatives generated positive feedback from many employees, including that they "built a positive and cheerful mood in the workplace" and "improved

communication and created an open atmosphere." As a result, the turnover rate declined to 2% in the fiscal year ended March 31, 2024.

TSMC awarded us two major prizes at its Supply Chain

Enhancing organizational strength using engagement surveys

We conduct employee engagement surveys to hear from employees and identify issues in management and

organizations. When issues are identified, we address them through corrective action. In the fiscal year ended March 31, 2025, the Group's seven key companies independently

Management Forum in 2024. This accomplishment proves how higher employee engagement leads to a better understanding of client needs and the creation of high value-added engineering services.

Benefits Measures

management plan target of a positive response rate of 70% or above.

Going forward, we will work toward higher employee engagement across the globe by identifying issues in each organization and sharing best practices. We believe this will make our organizations more productive and further enhance our corporate value.

Engagement survey positive response rate

including their knowledge and experience, as valuable assets supporting both sustainable corporate growth and personal growth. If we are to further grow our business and enhance our corporate value amid demographic graying and low birth rates, we must provide opportunities to make maximum use of the knowledge and skills our people have accumulated. Based on this understanding, the Group raised the mandatory retirement age from 60 to 65 at its seven key companies in April 2025. Going beyond

WEB

Work-life balance, Sustainability Data

WEB

Employee stock ownership program: Cultivating a management mindset

WEB

Labor-management relations

implemented corrective measures with emphasis on promoting communication and collaboration and clarifying career paths. As a result, the positive response rate was 66% for the seven key companies, up 1 percentage point from the previous fiscal year.

In addition to the above priority areas, the Group will address operational improvement in the fiscal year ending March 31, 2026. Specifically, organizations

requiring improvements at the department or section level

(%) 75

70

65

● 7 key companies

● Consolidated Group*

simply extending the length of employment, we are

offering wider options of pay and work styles by defining

will identify the causes of the challenges they face and

implement improvement measures. R&D departments

60

70

68

65

66

Expanded to group companies

65 outside Japan

Expanded to group companies in Japan

FY2024/03 FY2025/03 FY2026/03

(target)

FY2027/03

(target)

six levels of roles to meet employees' diverse career needs.

Prior to this change, the reemployment system was reviewed in the fiscal year ended March 31, 2022,

will launch projects to increase operational efficiency. We will also extend the survey to cover group companies outside Japan as we aim to achieve the medium-term

* Figures for the fiscal year ended March 31, 2025 include consolidated group companies in Japan.

Figures for the fiscal year ending March 31, 2026 and beyond are targets for the entire consolidated Group.