Q1 FY2023 Financial Results

(April 2023 to June 2023)

AUGUST 7, 2023

1

Agenda

1

Overall Summary

•

Key Takeaways

•

Summary：Q1 FY23 Result

2

Result

•

Result - YoY, QoQ

•

Digital Solutions Business

3

Segment Data

・Revenue Growth Rate

•

Life Sciences Business

•

Plastics Business

4

Outlook

• Act vs FY23 Projection (No Revision)

•

Summary of FY23 Projection (Re-posted)

•

Market Environment Assumption

5

Topics

•

LS (CDMO): Production Schedule of KBI's New Facility

• Overall Statement of P/L

6

Appendix

• Statement of Financial Position

•

Statement of Cash Flows

• Quarterly Trends by Segments

•

IR Calendar

*Note

DS :Digital Solutions business SEMI :Semiconductor materials DISP :Display materials

EC

:Edge Computing

LS

:Life Sciences business

PLA

:Plastic business

2

1. Key Takeaways

Decrease in profit is due to weaker semiconductor cycle and inclusion of one-off special factors for LS. A recovery in profit from Q2 FY23 is expected while closely monitoring the demand environment.

Q1 FY23 Results

•

Core operating loss in Q1 due to one-time special factors in LS.

✓ Following the previous quarter, SEMI revenue decreased due to decline in demand for semiconductors overall.

YoY Decrease in

✓ LS was impacted by major repairs at CDMO and inventory write-downs, etc. No sales of IVD's antigen test kit.

Revenue and Profit

•

Compared to a Q1 forecast, the differences were SEMI demand fell short and the additional provision for write-downs in

LS. The rest was mostly in line with our expectations as a whole. Costs were under control.

•

No change to full-year earnings projection. A recovery is expected toward H2 FY23. However, the pace of demand

FY23 Projection

recovery will be watched carefully.

✓ Demand conditions for SEMI are expected to recover gradually from Q2 with a full recovery in next year. JSR's

YoY Increase in

market share is expected to expand steadily in advanced EUV areas (EUV sales grew +25% YoY in Q1). The

Revenue and

demand environment for DISP is in recovery trend.

Profit

✓ The new CDMO facility of LS is up and running smoothly. Overall production will expand significantly from Q2

onwards, including the resumption of operations after major repairs at the Colorado facility. Profitability initiatives

are also being promoted.

•

On June 26, 2023, JSR disclosed the supporting opinion regarding the Tender Offer to be commenced by JICC-02 Co, Ltd.

(JICC) with the recommendation for our shareholders to tender their shares in the Tender Offer. JICC plans to launch the

Strategic

Tender Offer around December 2023.

•

The transaction will establish a strategic partnership with JICC, who are aligned with the strategic direction of JSR,

Partnership

focused on achieving sustainable growth of corporate value. Going private under this transaction, we will accelerate our

with JICC*

strategy and support the promotion of industry restructuring of semiconductor materials and reinforce our international

competitiveness and mid- to long-term growth for all of our businesses.

•

We expect the transaction is the best strategic option to all stakeholders of JSR.

•

Procedures based on relevant regulations in Japan and overseas are in progress.

*Comments at current status

3

1. Summary：Q1 FY23 Result

Core OP YoY (Bn JPY)

Q1 FY23 Act: Revenue 8.5bn, Core OP -5.3bn

Special Factors (-4.5)・Major Repair

・Write-downs, etc. ・Accounting Factor

YoY

Digital Solutions Business

SEMI

• Revenue declined due to a sharp fall in demand in the semiconductor

market.

• Robust recovery following a drop in demand in H2 FY22. But revenue of

DISP/

DISP declined from the previous year.

EC

•

EC performance was impacted by a decline in smartphone demand,

resulting in revenue decrease from the previous year.

FY21

FY22 DS Q1

LS

PLA

OTH

FY23

Q1

Life Sciences Business

  • LS profit declined, impacted by CDMO's major repairs (as scheduled) in addition to inventory write-downs, etc.
  • Profitability initiatives were implemented in Q1. Demand for CRO slowed partially in the customer sector.

Plastics Business

  • Demand is trending towards recovery. Price revisions also progressed.

Core OP QoQ (Bn JPY)

+

Special Factors (-4.5)

・Major Repair

・Write-downs, etc.

・Accounting Factor

+

FY22

DS

LS

PLA

OTH

FY23

Q4

Q1

QoQ

Digital Solutions Business

  • The demand environment was flat but showed a recovery in sales.

SEMI

•

EUV's leading-edge Logic and DRAM evaluations at customers are

progressing well.

DISP/

•

DISP saw significant revenue growth due to a recovery in demand.

EC

Life Sciences Business

  • Performance impacted by CDMO repairs and write-downs, etc.
  • There was a timing difference in IVD's test kit sales (sales were incurred in H2 FY22, but no sales in Q1).

Plastics Business

  • Despite volume increase, profit decreased due to inventory effect, etc.

4

2. Result - YoY, QoQ

YoY

QoQ

Revenue and profit decreased in DS and LS. DS: Mainly due to the effect of the semiconductor cycle.

LS: Mainly due to the one-time factors.

DS: Revenue and profit increased. From the previous quarter, sales recovered.

LS: Revenue and profit decreased due to the one-time factors and timing difference of IVD's test kit sales.

Consolidated

Digital Solutions

Life Sciences

Plastics

Others/Adjustment

(Bn JPY)

22Q1

23Q1

YoY

22Q4

23Q1

QoQ

Revenue

93.3

85.0

-9%

95.9

85.0

-11%

Core Operating Profit

6.2

-5.3

-

2.5

-5.3

-

Operating Profit

7.3

-6.1

-

-2.9

-6.1

-

Profit, attributable to owners of parent

5.7

-2.6

-

-3.8

-2.6

-

Revenue

42.9

37.7

-12%

35.4

37.7

+7%

Semiconductor materials

30.5

26.2

-14%

25.2

26.2

+4%

Display materials

10.4

9.9

-5%

8.6

9.9

+15%

Edge computing

2.0

1.6

-20%

1.6

1.6

+2%

Core Operating Profit

7.7

2.6

-66%

1.1

2.6

+139%

Revenue

22.7

21.2

-7%

33.4

21.2

-37%

Core Operating Profit

0.0

-6.9

-

1.8

-6.9

-

Revenue

22.8

22.7

-0%

23.6

22.7

-4%

Core Operating Profit

-0.5

-0.2

-

0.6

-0.2

-

Revenue

4.9

3.4

-30%

3.6

3.4

-5%

Core Operating Profit

-1.0

-0.9

-

-0.9

-0.9

-

Exchange rate (USD/JPY)

130

137

+6%

132

137

+4%

Consolidated DS SEMI DISP EDGE LS PLA OTH

YoY

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP +

Revenue -

Core OP +

QoQ

Revenue -

Core OP -

Revenue +

Core OP +

Revenue +

Core OP +

Revenue +

Core OP +

Revenue +

Core OP -

Revenue -

Core OP -

Revenue -

Core OP -

Revenue -

Core OP +

5

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JSR Corporation published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 06:08:31 UTC.