Advantest : FY2022 First Quarter Consolidated Financial Results

Advantest Corporation (FY2022 Q1)

FY2022 First Quarter Consolidated Financial Results

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

	(Period ended June 30, 2022)
	July 28, 2022
Company Name	: Advantest Corporation
	(URL https://www.advantest.com/investors)
Stock Exchange on which shares are listed	: Prime Market of the Tokyo Stock Exchange
Stock Code Number	: 6857
Company Representative	: Yoshiaki Yoshida, Representative Director, President and CEO
Contact Person	: Atsushi Fujita, Director, Senior Executive Officer
	Executive Vice President, Corporate Administration Group
	[phone]
Quarterly Report Filing Date (as planned)	: August 12, 2022
Dividend Payable Date (as planned)	: -
Quarterly Results Supplemental Materials	: Yes
Quarterly Results Presentation Meeting	: Yes
	(Rounded to the nearest million yen)

1. Consolidated Results of FY2022 Q1 (April 1, 2022 through June 30, 2022)

(1) Consolidated Financial Results (Accumulated)

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

Net sales

Operating

Income before

Net income

Net income

Total comprehensive

attributable to owners

income

income taxes

income for the year

of the parent

Million % increase

Million % increase

Million % increase

Million % increase

Million % increase

Million % increase

yen

(decrease)

yen

(decrease)

yen

(decrease)

yen

(decrease)

yen

(decrease)

yen

(decrease)

FY2022 Q1

135,943

40.0

44,783

71.4

48,416

88.1

36,496

88.7

36,496

88.7

46,068

131.8

FY2021 Q1

97,116

45.5

26,125

94.1

25,741

99.6

19,344

83.4

19,344

83.4

19,875

96.1

Basic earnings per

Diluted earnings

share

per share

Yen

Yen

FY2022 Q1

192.14

191.34

FY2021 Q1

98.42

97.87

(2) Consolidated Financial Position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to

owners of the parent

owners of the parent

Million yen

Million yen

Million yen

%

FY2022 Q1

531,098

327,879

327,879

61.7

FY2021

494,696

294,621

294,621

59.6

2. Dividends

Dividend per share

First quarter end

Second quarter end

Third quarter end

Year end

Annual total

Yen

Yen

Yen

Yen

Yen

FY2021

－

50.00

－

70.00

120.00

FY2022

－

FY2022

65.00

－

－

－

(forecast)

(Note) Revision of dividends forecast for this period: Yes

										Advantest Corporation (FY2022 Q1)
3. Earnings Forecast for FY2022 (April 1, 2022 through March 31, 2023)
								(% changes as compared to the previous fiscal year)
	Net sales		Operating income	Income before	Net income	Net income attributable
		income taxes		to owners of the parent
	Million		%	Million	%	Million		%	Million	%	Million	%
	yen		yen	yen		yen	yen
FY2022	550,000		31.9	170,000	48.2	174,000		49.6	130,000	48.9	130,000	48.9

(Note) Revision of earnings forecast for this period: Yes For details, please refer to the (4) Outlook, page 5.

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
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes arising from factors other than 1: None
   3. Changes in accounting estimates: None
4. Number of issued and outstanding share (common shares):
5. 1. Number of issued and outstanding share at the end of each fiscal period (including treasury share): FY2022 Q1 199,542,265 shares; FY2021 199,542,265 shares.
   2. Number of treasury share at the end of each fiscal period: FY2022 Q1 9,373,394 shares; FY2021 9,634,859 shares.
   3. Average number of outstanding share for each period (cumulative term): FY2022 Q1 189,943,510 shares; FY2021 Q1 196,550,687 shares.

(Note) Advantest's share (FY2022 Q1 168,914 shares, FY2021 425,495 shares), which is being kept as performance-based stock remuneration in trust account, is included in the number of treasury share at the end of each fiscal period. Shares used for stock remuneration plans are considered in calculating average number of outstanding share for each period.

Status of Audit Procedures

This quarterly financial results report is not subject to quarterly review procedures by independent auditors.

Explanation on the Appropriate Use of Future Earnings Projections and Other Special Instructions This document contains "forward-lookingstatements" 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.

Advantest Corporation (FY2022 Q1)

Contents
1. Overview of Business Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	2
(1)	Overview of Business Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	2
(2)	Overview of Financial Condition ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	4
(3)	Overview of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	4
(4)	Outlook ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	5
2. Condensed Quarterly Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	6
(1)	Condensed Quarterly Consolidated Statement of Financial Position ・・・・・・・・・・・・・・・・・・・	P.	6
(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly
	Consolidated Statement of Comprehensive Income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P.	8
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity ・・・・・・・・・・・・・・・・・・・	P. 10
(4)	Condensed Quarterly Consolidated Statement of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・	P. 11
(5)	Notes to the Condensed Quarterly Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・	P. 12
(Notes on Going Concern) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P. 12
(Segment Information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	P. 12
FY2022 First Quarter Consolidated Financial Results Overview ・・・・・・・・・・・・・・・・・・・・・・・・	P. 14

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Advantest Corporation (FY2022 Q1)

1. Overview of Business Results

(1) Overview of Business Results

Consolidated Financial Results of FY2022 Q1 (April 1, 2022 through June 30, 2022)

(in billion yen)

			As compared to the
	Three months ended	Three months ended	corresponding period of
	the previous
	June 30, 2021	June 30, 2022
	fiscal year
			increase (decrease)
Net sales	97.1	135.9	40.0%
Operating income	26.1	44.8	71.4%
Income before income taxes	25.7	48.4	88.1%
Net income	19.3	36.5	88.7%

During Advantest's three-month period ended June 30, 2022, inflation continued in Japan and overseas due to the rise in resource prices stemming from the situation in Ukraine and supply chain disruptions caused by China's lockdowns. Central banks, mainly in the West, raised interest rates to curb inflation, but this led to turmoil in stock markets and foreign exchange markets. Uncertainty about the future of the global economy has increased and recession fears are rising.

In the semiconductor market, this uncertain economic situation dampened demand for semiconductors for some consumer electronics such as smartphones, personal computers, and televisions, but the ongoing digitalization of society supported strong demand for semiconductors overall. Notably, in addition to growing demand for semiconductors related to data centers and AI, demand for high-performance smartphone semiconductors such as those for 5G continued at a high level. Although moves to adjust inventories have been observed in some areas, there is still a strong awareness of shortages of semiconductors for automobiles and industrial equipment, and Advantest's customers continue to be highly willing to make capital investments.

As the shortage of semiconductors and other parts, and logistical disruptions in distribution networks, affect a broad range of supply chains, Advantest continues to face difficulties in terms of parts procurement. In this business environment, Advantest strove to improve our production system and stabilize procurement of parts, while also working to capture the expanding demand for semiconductor test equipment.

As a result of the above, net sales were (Y) 135.9 billion (40.0% increase in comparison to the corresponding period in the previous fiscal year), operating income was (Y) 44.8 billion (71.4% increase in comparison to the corresponding period in the previous fiscal year), income before income taxes was (Y) 48.4 billion (88.1% increase in comparison to the corresponding period in the previous fiscal year) and net income was (Y) 36.5 billion (88.7% increase in comparison to the corresponding period in the previous fiscal year). In addition to top-line sales growth boosted by yen depreciation vs the US dollar, highly profitable products took a more prominent role in our sales mix, pushing all the above figures to record quarterly highs. Average currency exchange rates in the period were 1 USD to 124 JPY (109 JPY in the corresponding period of the previous fiscal year), and 1 EUR to 134 JPY (131 JPY in the corresponding period of the previous fiscal year). The percentage of net sales to overseas customers was 97.3% (97.0% in the corresponding period of the previous fiscal year).

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Advantest Corporation (FY2022 Q1)

Conditions of business segments are described below.

(in billion yen)

			As compared to the
	Three months ended	Three months ended	corresponding period of
	the previous
	June 30, 2021	June 30, 2022
	fiscal year
			increase (decrease)
Net sales	67.3	96.1	42.7%
Segment income	24.4	40.7	67.0%

In this segment, sales of SOC semiconductor test equipment for advanced process devices increased significantly amidst the further miniaturization and performance gains of HPC (High Performance Computing) devices and application processors. Sales of test equipment for mature process products such as automotive and industrial devices were also strong against the backdrop of production capacity investments by semiconductor manufacturers. Sales of test equipment for memory semiconductors remained at the same high level as in the corresponding period of the previous year, as the market environment for these products continued to be favorable.

As a result of the above, net sales were (Y) 96.1 billion (42.7% increase in comparison to the corresponding period in the previous fiscal year), and segment income was (Y) 40.7 billion (67.0% increase in comparison to the corresponding period in the previous fiscal year).

< Mechatronics System Segment>

(in billion yen)

			As compared to the
	Three months ended	Three months ended	corresponding period of
	the previous
	June 30, 2021	June 30, 2022
	fiscal year
			increase (decrease)
Net sales	11.5	15.4	34.6%
Segment income	2.0	4.6	2.3 times

In this segment, sales of device interface products, test handlers, and nanotechnology products increased due to strong customer motivation to invest in semiconductor test equipment and wider adoption of EUV lithography technology. In terms of profits, on top of increased sales, the product mix improved, contributing to higher segment profitability.

As a result of the above, net sales were (Y) 15.4 billion (34.6% increase in comparison to the corresponding period in the previous fiscal year), and segment income was (Y) 4.6 billion (2.3 times increase in comparison to the corresponding period in the previous fiscal year).

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