Advantest : FY2021 Consolidated Financial Results

FY2021 Consolidated Financial Results

(Advantest's consolidated financial statements are prepared in accordance with IFRS)

(Year ended March 31, 2022)

Company Name

Stock Exchange on which shares are listed Stock Code Number

Company Representative

Contact Person

• : Advantest Corporation

  (URLhttps://www.advantest.com/investors)

• : Prime Market of the Tokyo Stock Exchange

• : 6857

• : Yoshiaki Yoshida, Representative Director, President and CEO

:Atsushi Fujita, Director, Senior Executive Officer Executive Vice President, Corporate Administration Group [phone]

Date of General Shareholders' Meeting (as planned) : June 24, 2022

Dividend Payable Date (as planned)	: June 3, 2022
Annual Report Filing Date (as planned)	: June 22, 2022
Financial Results Supplemental Materials	: Yes
Financial Results Presentation Meeting	: Yes

(Rounded to the nearest million yen)

1. Consolidated Results of FY2021 (April 1, 2021 through March 31, 2022)

(1) Consolidated Financial Results

April 27, 2022

(% changes as compared to the previous fiscal year)

Net sales	Operating income	Income before income taxes	Net income	Net income attributable to owners of the parent	Total comprehensive income for the year
FY2021 FY2020	Million % increase yen (decrease) 416,901 33.3 312,789 13.4	Million % increase yen (decrease) 114,734 62.2 70,726 20.5	Million % increase yen (decrease) 116,343 67.1 69,618 18.9	Million % increase yen (decrease) 87,301 25.1 69,787 30.4	Million % increase yen (decrease) 87,301 25.1 69,787 30.4	Million % increase yen (decrease) 107,286 41.6 75,757 58.7

Basic earnings per share	Diluted earnings per share	Return on equity attributable to owners of the parent	Ratio of income before taxes to total assets	Ratio of operating income to net sales
FY2021 FY2020	Yen 449.56 353.87	Yen 447.26 351.82	% 30.4 27.3	% 25.4 17.9	% 27.5 22.6

(2) Consolidated Financial Position

Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent	Equity attributable to owners of the parent per share
FY2021 FY2020	Million yen 494,696 422,641	Million yen 294,621 280,369	Million yen 294,621 280,369	% 59.6 66.3	Yen 1,551.72 1,427.29

(3) Consolidated Cash Flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
FY2021 FY2020	Million yen 78,889 67,830	Million yen (46,907) (16,831)	Million yen (68,736) (30,415)	Million yen 116,582 149,164

2. Dividends

Dividend per share	Total dividend paid (annual)	Payout ratio (consolidated)	Cash dividend rate for equity attributable to owners of the parent (consolidated)
First quarter end	Second quarter end	Third quarter end	Year end	Annual total
FY2020 FY2021	Yen － －	Yen 38.00 50.00	Yen － －	Yen 80.00 70.00	Yen 118.00 120.00	Million yen 23,263 23,100	% 33.3 26.7	% 9.1 8.1
FY2022 (forecast)	－	－	－	－	－	－

(Note) The dividend forecast for FY2022 hasn't been decided yet.

3. Earnings Forecast for FY2022 (April 1, 2022 through March 31, 2023)

(% changes as compared to the corresponding period of the previous fiscal year)

Net salesOperating incomeIncome before income taxes

Net income

Net income attributable to owners of the parent

FY2022

Million yen 510,000

%

22.3

Million yen 150,000

%

30.7

Million yen 150,000

%

28.9

Million yen 112,500

%

28.9

Million yen 112,500

%

28.9

4. Others

• (1) Material changes in subsidiaries during this period (changes in scope of consolidation resulting from changes in subsidiaries): None

• (2) Changes in accounting policies and accounting estimates

  • 1) Changes in accounting policies required by IFRS: None

  • 2) Changes arising from factors other than 1: None

  • 3) Changes in accounting estimates: None

• (3) Number of issued and outstanding share (ordinary share):

  • 1) Number of issued and outstanding share at the end of each fiscal period (including treasury share): FY2021 199,542,265 shares; FY2020 199,566,770 shares.

  • 2) Number of treasury share at the end of each fiscal period: FY2021 9,634,859 shares; FY2020 3,132,075 shares.

  • 3) Average number of outstanding share for each period: FY2021 194,193,275 shares; FY2020 197,207,848 shares.

  (Note) Advantest's share (FY2021 425,495 shares, FY2020 694,832 shares), which is being kept as performance share option compensation in trust account, is included in the number of treasury share at the end of each fiscal period. Moreover, the Advantest's share that mentioned above is also included in the treasury share which is deducted during the calculation of average number of outstanding share for each period.

(Reference) Non-Consolidated Results of FY2021 (April 1, 2021 through March 31, 2022)

(1) Non-Consolidated Financial Results

(% changes as compared to the previous fiscal year)

Net sales	Operating income	Ordinary income	Net income
FY2021 FY2020	Million yen % increase (decrease) 355,575 30.8 271,875 7.1	Million yen % increase (decrease) 88,923 97.2 45,098 (13.6)	Million yen % increase (decrease) 93,667 71.1 54,736 (7.4)	Million yen % increase (decrease) 70,814 33.5 53,031 (3.7)

Net income per share - basic	Net income per share - diluted
FY2021 FY2020	Yen 364.61 268.91	Yen 363.54 267.89

(2) Non-Consolidated Financial Position

Total assets	Net assets	Equity-to-assets ratio	Net assets per share
FY2021 FY2020	Million yen 459,809 414,128	Million yen 262,918 285,409	% 57.0 68.8	Yen 1,380.85 1,449.74

(Reference) Shareholders' Equity at the end of each fiscal period: FY2021 (Y) 262,234 million; FY2020 (Y) 284,779 million

Status of Audit Procedures

This consolidated financial results report is not subject to audit procedures by independent auditors.

Explanation on the Appropriate Use of Future Earnings Projections and Other Special Instructions

This document contains "forward-looking statements" that are based on Advantest's current expectations, estimates and projections. These statements include, among other things, the discussion of Advantest's business strategy, outlook and expectations as to market and business developments, production and capacity plans. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "project," "should" and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause Advantest's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.

Contents

1.	Overview of Business Results ･････････････････････････････････････････････････
(1) Overview of Business Results for FY2021 ･･･････････････････････････････････
(2) Overview of Financial Condition for FY2021 ･････････････････････････････････
(3) Overview of Cash Flows for FY2021 ･･･････････････････････････････････････
(4) Outlook ･････････････････････････････････････････････････････････････
2.	Basic Approach to the Selection of Accounting Standards ･･････････････････････････	P. 5
3.	Consolidated Financial Statements and Main Notes ･･･････････････････････････････	P. 6
(1) Consolidated Statement of Financial Position ････････････････････････････････	P. 6
(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive
Income ･･･････････････････････････････････････････････････････････････	P. 8
(3) Consolidated Statement of Changes in Equity ･････････････････････････････････	P. 10
(4) Consolidated Statement of Cash Flows ･･････････････････････････････････････	P. 11
(5) Notes to the Consolidated Financial Statements ････････････････････････････････	P. 12
(Notes on Going Concern) ･････････････････････････････････････････････････	P. 12
(Segment Information) ････････････････････････････････････････････････････	P. 13
(Per Share Information) ････････････････････････････････････････････････････	P. 14
(Significant Subsequent Events) ･････････････････････････････････････････････	P. 14

P. 2

P. 2

P. 4

P. 4

P. 5

Change in Directors and Executive Officers ･･････････････････････････････････････････ P. 15

FY2021 Consolidated Financial Results Overview ･･････････････････････････････････ P. 17Change in Directors and Executive Officers ････････････････････････････････････ P. 16

1

Advantest Corporation (FY2021)

1. Overview of Business Results

(1) Overview of Business Results for FY2021

1) Consolidated Financial Results of FY2021 (April 1, 2021 through March 31, 2022)

(in billion yen)

FY2020	FY2021	As compared to the previous fiscal year increase (decrease)
Orders received	330.6	700.3	2.1 times
Net sales	312.8	416.9	33.3%
Operating income	70.7	114.7	62.2%
Income before income taxes	69.6	116.3	67.1%
Net income	69.8	87.3	25.1%

During the consolidated fiscal year of 2021, while the COVID-19 pandemic continued to smoulder on, widespread access to vaccines facilitated a return to normal socializing, and the global economy overall recovered from the historic recession of the previous fiscal year. On the other hand, concerns about the future of the world economy intensified amidst prolonged shortages of semiconductors and other parts, rising inflation, and the crisis in Ukraine that erupted in the beginning of CY2022.

In the semiconductor market, demand for semiconductors related to data centers, AI, and personal computers remained firm, thanks to demand for at-home consumption and the ongoing digitalization of society overall. In addition, semiconductors for smartphones have become even more sophisticated, and demand increased in response to continued 5G smartphone performance evolution and higher sales volumes. Moreover, the noted shortage of semiconductors for automobiles, industrial equipment, and consumer electronics, arising from the post-COVID economic recovery, spurred active investment in production capacity increases for various semiconductor devices.

The booming semiconductor market spurred ongoing growth in demand for semiconductor test equipment. Suppliers of high-end SoC devices for data centers and smartphones invested in advanced technology and processes, contributing to strong growth in the SoC semiconductor test equipment market.

In this environment, Advantest has steadily captured semiconductor test equipment demand expansion by leveraging our broad product portfolio and our global sales and support network, which are among our greatest strengths. On the other hand, as the shortage of semiconductors and other parts is affecting a broad range of supply chains, Advantest continues to face unprecedented difficulties in terms of parts procurement.

As a result of the above, orders received in the consolidated fiscal year of 2021 were (Y)700.3 billion (2.1 times increase in comparison to the previous fiscal year), net sales were (Y) 416.9 billion (33.3% increase in comparison to the previous fiscal year), operating income was (Y) 114.7 billion (62.2% increase in comparison to the previous fiscal year), income before income taxes was (Y) 116.3 billion (67.1% increase in comparison to the previous fiscal year) and net income was (Y) 87.3 billion (25.1% increase in comparison to the previous fiscal year). Despite the parts procurement challenges Advantest faced during the period, all of the above figures mark record annual highs. Year-on-year net income growth slowed in the current consolidated fiscal year because in the previous fiscal year, in addition to the use of a loss carryforward accounting adjustment in Japan, tax expenses diminished due to the recording of approximately (Y) 10.0 billion in deferred tax assets. Average currency exchange rates in the current consolidated fiscal year were 1 USD to 112 JPY (106 JPY in the previous fiscal year) and 1 EUR to 130 JPY (123 JPY in the previous fiscal year). The percentage of net sales to overseas customers was 96.1% (95.5% in the previous fiscal year).

2