Hamamatsu Photonics K K : Financial Results for the First Quarter of Fiscal Year ending September 30, 2023 [194 KB

Consolidated Financial Results for the First Quarter of Fiscal Year ending September 30, 2023 (Japanese GAAP)

	February 9, 2023
Company name: Hamamatsu Photonics K.K.	Stock listing: Tokyo Stock Exchange
Stock code: 6965	URL: https://www.hamamatsu.com/jp/en.html

Representative: Tadashi Maruno, Representative Director and President, Chief Executive Officer

Contact: Kazuhiko Mori, Director, Senior Executive Officer in charge of Finance and Accounting and General

Manager of Accounting Div. (Phone: [phone])

Scheduled date to file quarterly securities report: February 10, 2023

Scheduled date to begin dividend payments: -

Supplementary materials to the financial statements have been prepared: None

Presentation will be held to explain the financial statements: None

Note: All amounts are rounded down to the nearest million yen

1. Consolidated financial results for the three months ended Dec. 31, 2022 (From Oct. 1, 2022 through Dec. 31, 2022)

(1) Consolidated operating results

Note: Percentage figures represent changes from the same period of the previous year.

		Net sales			Operating profit	Ordinary profit		Profit attributable to owners
					of parent
	Three months ended	Millions of yen	%		Millions of yen	%	Millions of yen	%	Millions of yen	%
	55,163	17.3		15,507	38.6	15,697		35.8	11,320	31.7
	Dec. 31, 2022
	Three months ended	47,028	29.1		11,185	115.7	11,561		130.1	8,596	118.6
	Dec. 31, 2021
	Note: Comprehensive income
	Three months ended Dec. 31, 2022: 7,996 million yen [(16.7)%]
	Three months ended Dec. 31, 2021: 9,600 million yen [140.7%]
		Earnings per share		Diluted earnings per share
	Three months ended				Yen			Yen
				73.11			-
	Dec. 31, 2022
	Three months ended				55.52			-
	Dec. 31, 2021
(2) Consolidated financial position
		Total assets			Net assets			Equity ratio
			Millions of yen			Millions of yen				%
	As of Dec. 31, 2022		370,588			283,695				76.2
	As of Sep. 30, 2022		366,177			281,904				76.6
	For reference: Equity

As of Dec. 31, 2022: 282,304 million yen

As of Sep. 30, 2022: 280,563 million yen

2. Dividends

			Dividends per share
(Base date)	End of Q1	End of Q2	End of Q3
Fiscal year ended	Yen	Yen	Yen
-	32.00	-
Sep. 30, 2022
Fiscal year ending	-
Sep. 30, 2023
Fiscal year ending		38.00	-
Sep. 30, 2023
(Forecast)

End of FY

Yen 40.00

38.00

Full FY

Yen 72.00

76.00

Note: Revision of the forecasts for dividends most recently announced: No

3. Forecast of consolidated financial results for the fiscal year ending Sep. 30, 2023 (From Oct. 1, 2022 through Sep. 30, 2023)

			Note: Percentage figures represent changes from the same period ofthe previous year.
	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per
			owners of parent	share
					Millions of yen
Six months ending	Millions of yen	%	Millions of yen	%		%	Millions of yen	%	Yen
115,300	14.7	30,200	7.5	30,500			6.5	22,200	4.0	143.38
Mar. 31, 2023
Fiscal year ending	236,200	13.1	58,500	2.7	59,200			0.5	42,400	2.7	273.83
Sep. 30, 2023
Note: Revision of the forecasts for consolidated financial results most recently announced: No

4. Others

1. Changes in consolidated subsidiaries (Changes in scope of consolidation): None
2. Application of special accounting treatment for preparing quarterly consolidated financial statements: Yes
3. Changes in accounting principles, changes in accounting estimates, and changes in presentation due to revisions

1. Changes in accounting principles accompanying revisions in accounting standards: None
2. Changes other than those in (a) above: None
3. Changes in accounting estimates: None
4. Changes in presentation due to revisions: None

1. Number of shares issued

1. Number of shares issued at end of period including treasury shares As of Dec. 31, 2022: 165,052,729 shares
   As of Sep. 30, 2022: 165,052,729 shares
2. Number of treasury shares at end of period As of Dec. 31, 2022: 10,214,410 shares As of Sep. 30, 2022: 10,214,389 shares
3. Average number of shares outstanding during the period Three months ended Dec. 31, 2022: 154,838,326 shares Three months ended Dec. 31, 2021: 154,827,591 shares

1. Qualitative Information Related to Consolidated Performance for the First Quarter of This Fiscal Year

(1) Operating Results

During the first quarter of this fiscal year (three months ended December 31, 2022), Japan's economy continued to face an uncertain outlook, despite signs of a recovery in corporate earnings and capital investment in some sectors, due to such factors as the disruptions in the supply of materials and parts, the rising raw material prices affected by the Ukraine situation, and unstable exchange rate fluctuations, uncertain elements remaining unresolved, and in overseas economies, monetary tightening and China's zero-COVID policy have led to signs of economic deceleration mainly in developed countries.

Given these circumstances, in addition to continuously taking measures to prevent infections of COVID-19 and bearing in mind our contributions to a sustainable society, our Group strove to secure net sales and earnings by developing products in response to market requirements and enhancing research and development leveraging the proprietary photonics technologies.

As a result, we closed the first quarter with net sales of JPY 55,163 million, up by JPY 8,135 million (17.3%) compared with the same period one year ago. From an earnings perspective, operating profit was JPY 15,507 million, up by JPY 4,322 million (38.6%), ordinary profit was JPY 15,697 million, up by JPY 4,136 million (35.8%), and profit attributable to owners of parent was JPY 11,320 million, up by JPY 2,723 million (31.7%) from the same period one year ago.

Operating results by segment are as follows:

(Electron Tube)

Regarding photomultiplier tubes (PMT), imaging devices and light sources, while sales of Stealth Dicing Engine for high-speed,high-quality silicon wafer dicing decreased, and sales for academic applications such as high-energy physics experiments also decreased, sales of microfocus X-ray sources for non-destructive testing devices in the industrial field increased, as did sales of light sources for semiconductor fabrication and inspection equipment.

As a result, the Electron Tube business closed the first quarter with net sales of JPY 21,497 million, up by 14.7%, and operating profit of JPY 9,038 million, up by 24.9% from the same period one year ago. (Opto-semiconductor)

In opto-semiconductor devices, sales of image sensors for semiconductor fabrication and inspection equipment increased in the industrial field. In addition, in the medical field, sales of silicon photodiodes for X- ray CT increased in response to continued growth in demand in Japan and overseas, and sales of flat panel sensors for dental use also increased, mainly in Asia.

As a result, net sales in the Opto-semiconductor business were JPY 24,844 million, up by 11.1%, and operating profit was JPY 9,312 million, up by 18.1% from the same period one year ago.

(Imaging and Measurement Instruments)

In image processing and measurement systems, sales of X-ray TDI cameras for the testing of servers and automotive circuit boards increased. In addition, sales of failure analysis systems for semiconductor devices also increased, mainly in Japan and Asia.

As a result, net sales for the Imaging and Measurement Instruments business were JPY 7,276 million, up by 55.1%, and operating profit was JPY 2,259 million, up by 181.6% from the same period one year ago. (Other)

Sales from other operations include the semiconductor laser business, hotel operations run by Iwata Grand Hotel Inc., a subsidiary, and business relating to the unique products of Beijing Hamamatsu Photon Techniques Inc., which is also a subsidiary.

In our other businesses, net sales were JPY 1,544 million, up by 25.3%, and operating loss was JPY 4 million, compared with an operating profit of JPY 211 million in the same period one year ago.

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(2) Financial Conditions

Current assets decreased by JPY 649 million from the end of the previous fiscal year, despite an increase in inventories of JPY 7,818 million, mainly reflecting decreases in cash and deposits of JPY 5,578 million and accounts receivable - other under other current assets of JPY 3,612 million.

Non-current assets increased by JPY 5,060 million from the end of the previous fiscal year, mainly reflecting an increase in construction in progress of JPY 6,363 million.

As a result, total assets at the end of the first quarter were JPY 370,588 million, up by JPY 4,411 million from the end of the previous fiscal year.

Current liabilities increased by JPY 2,226 million from the end of the previous fiscal year, mainly due to an increase in notes and accounts payable - trade of JPY 3,628 million.

Non-current liabilities increased by JPY 394 million from the end of the previous fiscal year, mainly due to an increase in forward exchange contracts (Non-current liabilities, Other) of JPY 518 million.

As a result, total liabilities at the end of the first quarter were JPY 86,893 million, up by JPY 2,620 million from the end of the previous fiscal year.

Net assets at the end of the first quarter were JPY 283,695 million, up by JPY 1,790 million from the end of the previous fiscal year, mainly reflecting an increase in retained earnings of JPY 5,115 million as a result of reporting profit attributable to owners of parent, despite a decrease in foreign currency translation adjustment of JPY 3,465 million.

(3) Projection for the Year

There is no change to the forecast of consolidated financial results for the first six months ending March 31, 2023 and for the fiscal year ending September 30, 2023, released on November 11, 2022.

We assume the yen/US dollar exchange rate will be JPY 130, the yen/Euro exchange rate will be JPY 135 and the yen/RMB exchange rate will be JPY 19.

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Consolidated Financial Statements

Consolidated Balance Sheets

		(Millions of Japanese Yen)
	As of	As of
	Sep. 30, 2022	Dec. 31, 2022
Assets
Current assets
Cash and deposits	125,999	120,421
Notes and accounts receivable - trade	49,751	51,117
Securities	2,316	2,123
Merchandise and finished goods	11,458	13,763
Work in process	31,920	35,994
Raw materials and supplies	15,698	17,137
Other	9,120	5,054
Allowance for doubtful accounts	(227)	(223)
Total current assets	246,038	245,388
Non-current assets
Property, plant and equipment
Buildings and structures, net	47,925	46,833
Machinery, equipment and vehicles, net	11,958	11,502
Tools, furniture and fixtures, net	5,345	5,528
Land	17,516	17,490
Leased assets, net	243	218
Right-of-use assets, net	743	712
Construction in progress	11,466	17,830
Total property, plant and equipment	95,200	100,115
Intangible assets
Customer relationships	1,873	1,631
Other	3,486	3,264
Total intangible assets	5,359	4,895
Investments and other assets
Investment securities	3,711	3,953
Deferred tax assets	12,913	13,237
Other	2,973	3,017
Allowance for doubtful accounts	(19)	(19)
Total investments and other assets	19,579	20,188
Total non-current assets	120,139	125,200
Total assets	366,177	370,588

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