FY2025 Q2 Financial Announcement (Supplementary Material)

V-technology Co., Ltd.TSE: 7717

FY24/3 1st half

FY25/3 1st half

Nov 13, 2024 at 7:18 AM UTC · Issued by V-technology Co., Ltd.

V Technology Co., Ltd.

FY2025/3(28th) 1st Half

Financial results

Supplementary results

From April 1,2024 to September 30, 2024

November 11, 2024

Table of Contents

Overview

Interim consolidated results and forecast for FY25/3

I. Overview

Interim consolidated results: Net sales of 22.3 billion yen (+81% year-on-year), operating loss of 130 million yen (+700 million yen year-on-year), with a significant reduction in losses.

Semiconductor and photomask equipment business: Q2 operating profit was 470 million yen, and for the interim period, sales were 5.4 billion yen (+59.1% year-on-year), and operating loss was 70 million yen (+120 million yen year-on-year), with accumulated losses significantly reduced.

Flat Panel Equipment Business: Operating income for Q2 (3 months) was 440 million yen, and the interim period saw a return to profitability with sales of 16.2 billion yen (+92.5% year-on- year) and operating income of 100 million yen (+650 million yen year-on-year).

Orders received in the first half of the year were 17.5 billion yen (down 14.2% year-on-year), which was slightly below expectations, but we expect a recovery in the second half of the year based on the status of inquiries and business negotiations, etc.

Semiconductor and photomask equipment business: Orders received were 6.3 billion yen (down 24.7% year-on-year), due to contributions from silicon wafer, laboratory and photomask equipment.

Flat Panel Display Manufacturing Equipment Business: Orders received were 10.4 billion yen (-8.9% year-on-year), as orders for large projects were postponed to the second half of the year.

There are many opportunities for business development in both the semiconductor and FPD fields, and we will accelerate our efforts towards growth by bringing together the Group's technologies.

Semiconductor and photomask equipment business: Against the backdrop of companies' proactive efforts to solve business and social issues using DX and GX, and the evolution of HPC manufacturing technology for AI, we expect demand for semiconductors in general, including legacy semiconductors, to be on an increasing trend in the medium to long term. At the same time, we are receiving more inquiries both in Japan and overseas about our group's technologies and products, and we expect orders to increase and the business to grow.

FPD Equipment Business: In the equipment market, investment in OLED-related equipment is expected to drive market growth, while investment in LCD-related equipment is expected to gradually decline. In addition to further expanding our market share through product differentiation and cost reductions in our areas of expertise, we are aiming to maintain sales scale and improve profitability by launching new products and businesses that combine the Group's technologies in growth areas.

In light of the above, there are currently no revisions or changes to the previous announcement regarding the business forecast and medium-term management plan for the current fiscal year.

Regarding the business forecast for the current fiscal year, profits are expected to be concentrated in Q4, but as we have already taken measures similar to last year, we expect to achieve the planned results.

II．Interim consolidated results and forecast for FY25/3
1. Consolidated earnings summary
2. Earnings by business segments
3. Quarterly earnings
4. Net sales by region
5. Selling, general and administrative expenses
6. Balance sheets
7. Cash flows
8. Orders received and orders backlog by business segments
9. Earnings and dividend forecast for FY25/3

1．Consolidated earnings summary

The deficit has narrowed due to increased sales, etc.

	FY24/3	FY25/3	YoY
(Million JPY)	1st half	1st half


Net sales	12,334	22,345	＋10,006
＋81.2%

Operating profit (△loss)	▲880	▲136	＋744
(Margin％)	ー	ー	ー

Ordinary income(△loss)	▲592	▲275	＋316
（Margin％）	ー	ー	ー

Net profit (△loss)	▲647	▲218	＋429
(attributable to shareholders of the parent company)

(Margin％)	ー	ー	ー

2． Earnings by business segments	6
（Million JPY, Consolidated）

Increased revenue and profit compared to the same period last year and quarter on quarter

Semiconductor and photomask equipment business: Q2 (3 months) profit of 477 million yen, contribution from photomask, wafer and lab equipment reduced losses
FPD equipment business: Turned surplus due to contribution from exposure and measurement equipment

Semiconductor and photomask equipment business
			FY24/3 1st half	FY25/3 1st half		YoY
Sales				3,397		5,406		＋59.1％
	▲	loss)		▲200		▲77		＋123
Operating profit(		(－%)		(－%)		(－％)
(Margin of segment)
						14,052
Net sales
Operating profit
	9,262
8,500					7,328

								5,406
	4,207
3,069				3,397

			1,377			1,234	1,495
(89)	(237)	254	(204)	(200)				(77)

23Q2	Q3	Q4	24Q1	Q2	Q3	Q4	25Q1	Q2
(1,500)					(1,017)		(554)

	FPD equipment business
				FY24/3 1st half	FY25/3 1st half	YoY
	Sales				8,436		16,237		＋92.5％
		▲	loss)		▲544		107		＋651
	Operating profit(		(－％)		(－％)		(－％)
	(Margin of segment)
39,000
	Net Sales	32,927

	Operating profit
29,000
		24,954
							22,258
19,000	15,706								16,273


					11,017
9,000					8,436			7,639

				4,133
	759	515	980	(347)	(544)	(862)	(25)	(334)	107

(1,000)	Q2Q2	Q3	Q4	24Q1	Q2	Q3	Q4	25Q1	Q2

Semiconductor and photomask equipment business:Consists of development, design, manufacture, sales and related services for manufacturing equipment, inspection equipment and photomask equipment in the

semiconductor manufacturing process, as well as equipment for PCBs. FPD equipment business:Consists of development, design, manufacture, sales and related services for manufacturing and inspection equipment in the FPD manufacturing process, as well as materials and components such as deposition masks for OLEDs.

3． Quarterly earnings

（Million JPY）

Q2 profit turned profitable thanks to increased sales and an improved product mix

		FY21/3			FY22/3			FY23/3			FY24/3		FY25/3
18,500
																			30.0%
8,500
																			（profit
																			margin）
(1,500)	21Q1	Q2	Q3	Q4	22Q1	Q2	Q3	Q4	23Q1	Q2	Q3	Q4	24Q1	Q2	Q3	Q4	25Q1	Q2	0.0%

Net sales	10,297	17,923	13,278	13,688	13,094	14,033	9,690	14,601	7,795	11,494	10,603	13,254	5,749	6,485	6,869	18,232	9,523	12,822
Gross profit	3,173	4,161	4,312	4,058	3,687	3,622	3,215	4,962	2,582	2,501	2,121	3,742	1,870	1,935	1,196	5,603	1,773	3,375
Operating profit	1,169	1,771	2,052	1,612	1,312	1,230	772	2,147	452	133	▲ 466	867	▲ 641	▲ 239	▲ 1,197	2,923	▲ 948	812
GPM	30.8%	23.2%	32.5%	29.6%	28.2%	25.8%	33.2%	34.0%	33.1%	21.8%	20.0%	28.2%	32.5%	29.8%	17.4%	30.7%	18.6%	26.3%
OPM	11.4%	9.9%	15.5%	11.8%	10.0%	8.8%	8.0%	14.7%	5.8%	1.2%	-4.4%	6.5%	-11.1%	-3.7%	-17.4%	16.0%	-10.0%	6.3%

4． Net sales by region

（Million JPY, Consolidated）

Mainly due to increased sales of FPD equipment to Chinese customers

25,000

20,000

15,000

10,000

5,000

FY24/3 1st half

FY25/3 1st half

17,422

Sales

incleased ＋113.7％

8,151

Ratio of	Ratio of
net	net
sailes	sales	2,493	2,767
(66.1％)	(78.0％)

	1,145	749

22,345

Sales

increased

＋81.2％

12,334

545 1,407

China

Taiwan

Japan

Korea/others

Total

5． Selling, general and administrative expenses

（Million JPY, Consolidated）

Variable costs such as shipping and sales-related expenses increased in line with the increase in sales

The difference from the previous year is larger than other items due to the impact of the reversal of provisions in the previous year (YoY +434 million yen)

1,422	1,361		1,193	1,113

		129	283

1,866 2,018

Personel	Shiping	R&D	Product warranty-	Others	Total
			related

6． Balance sheets

（Million JPY）

Cash & deposits
- Increased by 5,834 million yen due to a decrease in notes and accounts receivable-trade due to the acceleration of acceptance inspections, etc., and an increase in loans, etc.

Assets

75,606			77,483

						8,409
			8,560

						3,410
			3,702
					15,052
			15,531


						21,681
			24,716


						28,930
			23,096				①


		As of 31, March, 2024		As of 30, September, 2024
	Cash & Deposits		Note and accounts receivable

	Inventories		Other current assets

	Fixed assets

Liabilities and net assets

75,606		77,483
		1,109
	1,116


	20,425		24,746

19,424	18,473

34,639	33,154

As of 31, March, 2024	As of 30, September, 2024
Net assets		Other current liabilities


Borrowings（short/long）		Other fixed liabilities