Hamamatsu Photonics K K : Financial Results for the Fiscal Year ended September 30, 2022 [332 KB

Consolidated Financial Results for the Fiscal Year ended September 30, 2022 (Japanese GAAP)

	November 11, 2022
Company name: Hamamatsu Photonics K.K.	Stock listing: Tokyo Stock Exchange
Stock code: 6965	URL: https://www.hamamatsu.com/jp/en.html

Representative: Akira Hiruma, Representative Director and President, Chief Executive Officer

Contact: Kazuhiko Mori, Senior Executive Officer and General Manager of Accounting Div. (Phone: [phone])

Scheduled date of Annual General Meeting of Shareholders: December 16, 2022

Scheduled date to file securities report: December 16, 2022

Scheduled date to begin dividend payments: December 19, 2022

Supplementary materials to the financial statements have been prepared: Yes

Presentation will be held to explain the financial statements: Yes (for analysts and institutional investors)

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

1. Consolidated financial results for the fiscal year ended Sep. 30, 2022 (From Oct. 1, 2021 through Sep. 30, 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
Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%
208,803	23.5	56,983	66.0		58,879	69.9		41,295	64.8
Sep. 30, 2022
Fiscal year ended	169,026	20.5	34,318	57.8		34,648	52.7		25,053	51.6
Sep. 30, 2021
Note: Comprehensive income
Fiscal year ended Sep. 30, 2022: 53,579 million yen [77.4 %]
Fiscal year ended Sep. 30, 2021: 30,198 million yen [89.9 %]
	Earnings per share	Diluted earnings per	Return on equity	Ordinary profit to	Operating profit to
		share	total assets	net sales
Fiscal year ended	Yen		Yen		%		%		%
266.70		-		16.0		17.6		27.3
Sep. 30, 2022
Fiscal year ended	161.82		-		11.2		12.1		20.3
Sep. 30, 2021

For reference: Share of profit (loss) of entities accounted for using equity method Fiscal year ended Sep. 30, 2022: 194 million yen

Fiscal year ended Sep. 30, 2021: (3) million yen

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of this fiscal year, and each figure for the fiscal year ended September 30, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of Sep. 30, 2022	366,177	281,904	76.6	1,811.98
As of Sep. 30, 2021	301,676	237,570	78.4	1,527.65

For reference: Equity

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

As of Sep. 30, 2021: 236,522 million yen

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant

ASBJ regulations from the beginning of this fiscal year, and each figure as of September 30, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.

(3) Consolidated cash flows

	Cash flows from	Cash flows from investing	Cash flows from financing	Cash and cash equivalents
	operating activities	activities	activities	at end of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
45,126	(13,331)	(7,759)	123,065
Sep. 30, 2022
Fiscal year ended	39,913	(16,778)	(4,475)	90,008
Sep. 30, 2021

2. Dividends

		Dividends per share		Total dividends	Dividend	Dividends to net
(Base date)	End of Q1	End of Q2	End of Q3	End of FY	Full FY	(annual)	payout ratio	assets
(consolidated)	(consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
-	20.00	-	28.00	48.00	7,444	29.7	3.3
Sep. 30, 2021
Fiscal year ended	-	32.00	-	40.00	72.00	11,167	27.0	4.3
Sep. 30, 2022
Fiscal year ending
Sep. 30, 2023	-	38.00	-	38.00	76.00		27.8
(Outlook)

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 of the previous year.

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per
			owners of parent	share
Six months ending	Millions of yen	%	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

4. Others

1. Changes in consolidated subsidiaries (Changes in scope of consolidation): None
2. 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: Yes
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 Sep. 30, 2022: 165,052,729 shares
   As of Sep. 30, 2021: 165,041,841 shares
2. Number of treasury shares at end of period As of Sep. 30, 2022: 10,214,389 shares As of Sep. 30, 2021: 10,214,250 shares
3. Average number of shares outstanding during the period Fiscal year ended Sep. 30, 2022: 154,835,288 shares Fiscal year ended Sep. 30, 2021: 154,823,486 shares

(Reference) Non-consolidated financial results for the fiscal year ended Sep. 30, 2022

1. Non-consolidated financial results for the fiscal year ended Sep. 30, 2022 (From Oct. 1, 2021 through Sep. 30, 2022)

(1) Non-consolidated operating results

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

	Net sales	Operating profit	Ordinary profit		Profit
Fiscal year ended	Millions of yen	%	Millions of yen	%		Millions of yen	%	Millions of yen	%
165,215	23.1	38,473	83.9		43,545	81.0	31,827	76.5
Sep. 30, 2022
Fiscal year ended	134,192	16.1	20,924	50.1		24,059	35.5	18,027	33.3
Sep. 30, 2021
	Earnings per share	Diluted earnings per
	share
Fiscal year ended		Yen		Yen
	205.20		-
Sep. 30, 2022
Fiscal year ended		116.24		-
Sep. 30, 2021
(2) Non-consolidated financial position
	Total assets	Net assets		Equity ratio		Net assets per share
	Millions of yen	Millions of yen			%		Yen
As of Sep. 30, 2022		273,093		211,370			77.4		1,362.74
As of Sep. 30, 2021		237,875		189,314			79.6		1,220.62
For reference: Equity

As of Sep. 30, 2022: 211,370 million yen

As of Sep. 30, 2021: 189,314 million yen

1. Overview of Operating Results and Others

(1) Overview of Operating Results for the Fiscal Year

During the fiscal year ended September 30, 2022, Japan's economy showed signs of a recovery in corporate earnings and capital investment in some sectors. However, there are now sizable elements of concern, which in addition to the resurgence of COVID-19 infections, include the prolonged disruptions in the supply of raw materials, and the rising resource prices affected by the Russia/Ukraine situation. The outlook for business environment surrounding the Company is still both difficult and uncertain, with concerns over downside risks for business as a result of global monetary tightening.

Given these circumstances, in addition to maintaining levels of capital investment aimed at the strengthening of production capacity while continuously taking measures targeting employees to prevent the spread of infections of COVID-19, and such impact on production activities, our Group strove to broaden the scale of net sales and earnings by engaging in the research and development, and product development that take advantage of the Company's proprietary photonics technologies, while also giving attention to contributing to a sustainable society.

As a result, we closed the fiscal year 2022 with net sales of JPY 208,803 million, up by JPY 39,776 million (23.5%) from the previous fiscal year, due to increases in both domestic and overseas sales. From an earnings perspective, operating profit was JPY 56,983 million, up by JPY 22,664 million (66.0%), ordinary profit was JPY 58,879 million, up by JPY 24,230 million (69.9%), and profit attributable to owners of parent was JPY 41,295 million, up by JPY 16,241 million (64.8%) from the previous fiscal year, resulting in a record high in both net sales and earnings.

Operating results by segment are as follows:

(Electron Tube)

Regarding photomultiplier tubes (PMT), imaging devices and light sources, in the industrial field, accompanying the expanding production of EV (electric vehicles) and the global penetration of 5G, sales of microfocus X-ray sources for non-destructive testing increased, mainly in Asia, for automotive battery testing applications and circuit board inspection applications. Sales of Stealth Dicing Engine for high-speed, high- quality silicon wafer dicing as well as PMT and light sources for semiconductor wafer inspection equipment also increased, driven by brisk semiconductor capital investment worldwide. Moreover, in the medical field, sales of PMT for medical inspection and monitoring systems such as flow cytometers increased due to rising demand in Japan and overseas.

As a result, the Electron Tube business closed the fiscal year 2022 with net sales of JPY 80,881 million, up by 24.8%, and operating profit of JPY 32,915 million, up by 45.5% from the previous fiscal year. (Opto-semiconductor)

Regarding opto-semiconductor devices, sales of image sensors for semiconductor fabrication and inspection equipment, etc. increased due to growth in global demand for semiconductors, while in the FA field, such as controls for industrial robots, etc., sales of photo ICs, photodiodes and LEDs increased. In addition, in the medical field, sales of silicon photodiodes for X-ray CT and MPPC for PET increased in response to continued growth in demand in Japan and overseas.

As a result, net sales in the Opto-semiconductor business were JPY 95,554 million, up by 22.7%, and operating profit was JPY 35,230 million, up by 55.5% from the previous fiscal year.

(Imaging and Measurement Instruments)

In image processing and measurement systems, sales of digital cameras increased not only in the life sciences sector and biotechnology sector but also in the physics sector, including quantum and astronomy, due to the introduction of new products, and sales for DNA testing also increased overseas. In addition, sales of digital slide scanners continued to increase in Europe, and sales of failure analysis systems for semiconductor devices were also strong in Japan and overseas, mainly in Asia.

As a result, net sales for the Imaging and Measurement Instruments business were JPY 26,662 million, up by 23.8%, and operating profit was JPY 8,236 million, up by 55.2% from the previous fiscal year.

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(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 5,705 million, up by 18.8%, and operating profit was JPY 450 million, up by 3.0% from the previous fiscal year.

(2) Overview of Financial Position for the Fiscal Year

Current assets increased by JPY 53,918 million from the end of the previous fiscal year, mainly reflecting increases in cash and deposits of JPY 34,912 million and inventories of JPY 14,674 million.

Non-current assets increased by JPY 10,583 million from the end of the previous fiscal year, mainly reflecting increases in construction in progress of JPY 4,904 million and buildings and structures of JPY 3,071 million. As a result, total assets at the fiscal year-end were JPY 366,177 million, up by JPY 64,501 million from the end of the previous fiscal year.

Current liabilities increased by JPY 17,228 million from the end of the previous fiscal year, mainly reflecting increases in income taxes payable of JPY 4,649 million and electronically recorded obligations -facilities (current liabilities - other) of JPY 3,232 million.

Non-current liabilities increased by JPY 2,939 million from the end of the previous fiscal year, mainly due to increases in retirement benefit liability of JPY 1,460 million and long-term borrowings of JPY 1,389 million. As a result, total liabilities at the fiscal year-end were JPY 84,273 million, up by JPY 20,167 million from the end of the previous fiscal year.

Net assets at the end of the fiscal year-end were JPY 281,904 million, up by JPY 44,333 million from the end of the previous fiscal year, mainly reflecting an increase in retained earnings of JPY 31,988 million as a result of reporting profit attributable to owners of parent and an increase in foreign currency translation adjustment of JPY 13,751 million.

(3) Overview of Cash Flows for the Fiscal Year

At the end of this fiscal year, cash and cash equivalents (referred to below as "cash") stood at JPY 123,065 million, up by JPY 33,056 million from the end of the previous fiscal year.

(Cash flows from operating activities)

Net cash provided by operating activities during the fiscal year was JPY 45,126 million, up by JPY 5,213 million compared with JPY 39,913 million in the previous fiscal year. This mainly reflected profit before income taxes and depreciation.

(Cash flows from investing activities)

Net cash used in investing activities was JPY 13,331 million, down by JPY 3,447 million compared with JPY 16,778 million in the previous fiscal year. This mainly reflected purchase of property, plant and equipment. (Cash flows from financing activities)

Net cash used in financing activities was JPY 7,759 million, up by JPY 3,283 million compared with JPY 4,475 million in the previous fiscal year. This mainly reflected dividends paid.

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(4) Future Outlook

In the business environment surrounding the Group, we have seen signs of a recovery in corporate earnings and capital investment in some sectors. However, the global economic outlook is expected to remain uncertain due to factors such as a resurgence of COVID-19 infections, the prolonged disruptions in the supply of materials and parts, the impact of the Russia/Ukraine situation, and concerns over global monetary tightening pushing economies toward recession.

In spite of the aforementioned environment, we expect solid demand for our products to continue primarily in the fields of medical care, industry and analysis, and for the fiscal year ending September 30, 2023, we forecast consolidated net sales of JPY 236,200 million, up by 13.1% from the previous fiscal year. In addition, from an earnings perspective, we are planning for operating profit of JPY 58,500 million, up by 2.7%, ordinary profit of JPY 59,200 million, up by 0.5%, and profit attributable to owners of parent of JPY 42,400 million, up by 2.7% from the previous fiscal year. 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.

FY 2023 (From Oct. 1, 2022 through Sep. 30, 2023)

Forecast of Consolidated Financial Results for the Fiscal Year Ending Sep. 30, 2023

(Millions of Japanese Yen)

	Through the second		Forecast for the year
	Compared with	Compared with
	quarter
	previous fiscal year		previous fiscal year
		(%)		(%)
Net sales	115,300	14.7	236,200	13.1
Operating profit	30,200	7.5	58,500	2.7
Ordinary profit	30,500	6.5	59,200	0.5
Profit attributable to	22,200	4.0	42,400	2.7
owners of parent

2. Basic Policy Regarding Selection of Accounting Standards

The Group adopts a policy to prepare its consolidated financial statements in accordance with the Japanese GAAP for the time being, taking into account the year-on-year comparability and intercompany comparability of consolidated financial statements.

With respect to the adoption of the International Financial Reporting Standards (IFRS), we intend to address the matter appropriately, factoring in our future business development and the trends of the system.

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