ULVAC : Financial Results Presentation for Q3 FY2022

ULVAC, Inc.

Business Results

The Third Quarter of FY2022

(July 2022 - March 2023)

May 12, 2023	Securities Code:6728
	Breakthrough 2022

Disclaimer regarding forward-looking statements

Forward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared.

There are several factors that directly or indirectly impact the company performance, such as the global economy; market conditions for FPDs, semiconductor, electronic devices, and raw materials; trends in capital expenditures and fluctuations in exchange rates. Please note that actual business results may differ significantly from these forecasts and future projections.

Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

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Summary

1. No change in mid to long-term growth strategy (focusing development investment on growth areas such as semiconductor and electronics, targeting net sales of ¥300 billion or more, gross profit margin of 35% or more, and operating profit margin of 16% or more in FY6/2026)
2. Steady shift towards semiconductor and electronics (power devices, various electronic devices and logic increasing, doubling from FY19)
3. Q3 YTD orders down YoY due to a YoY decline in FPD orders and the shift of FPD and electronics orders from 3Q to 4Q
   Net sales and operating profit both declined YoY mainly due to lower order received
4. Downward revision of full-year earnings forecast for FY2022. Dividend forecast unchanged
5. • Downward revision to net sales of ¥215.0 billion and operating profit of ¥17.5 billion Dividend forecast unchanged in view of stable dividend
   • Intensification of initiatives in response to longer lead times for parts and materials Strengthening of management through reorganization in July
   • High level of orders continues due to growth in semiconductor and electronics. Order backlog is expected to exceed ¥150 billion at the end of the fiscal year
   • Aiming for further expansion of orders and sales in the next fiscal year and onwards through continuous growth in power devices, various electronic devices, logic devices, etc., and investment in Roll-to-Roll equipment for batteries

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

Breakthrough 2022

3

Revision of full-year forecast for FY2022

• Net sales, operating profit and profit attributable to owners of the parent have been revised downwards due to

the delay in sales contribution caused by the delayed timing of FPD and electronics orders, and the slowdown in semiconductor investment.

• Dividend forecast remain unchanged.

(Unit: ¥1 billion)

Orders Received

Net Sales

Operating Profit

Operating Profit Margin

Profit attributable to owners of parent

To net sales ratio

FY2021		FY2022
Actual	Previous	Revised	Vs.Previous	YoY
Forecast	Forecast	Forecast
270.1	260.0	250.0	-10.0	-20.1
241.3	230.0	215.0	-15.0	-26.3
30.1	24.0	17.5	-6.5	-12.6
12.5%	10.4%	8.1%	-2.3pt	-4.3pt
20.2	20.0	16.0	-4.0	-4.2
8.4%	8.7%	7.4%	-1.3pt	-0.9pt

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

Breakthrough 2022

4

Revised forecast of orders received (Quarterly)

• 3Q orders: FPD (¥12.5 billion), Electronics (¥8.0 billion), total of ¥20.5 billion declined temporarily due to postponement of investment from 3Q to 4Q.
• Orders for the full year are expected to be ¥10 billion lower than previously forecast due to the postponement of investments in semiconductor (¥4 billion in 3Q, ¥3.5 billion in 4Q) and FPDs (¥3 billion in 4Q) to the next fiscal year.

Orders received	(Unit: ¥1 billion)							Factors of Order Changes					+7.5	+10.5
																				+3.0
Semiconductor & Electronics															Semiconductor
Component		Materials											-3.5	77.5
Device Production Equipment											FPDs・	FPD
FPD Production Equipment		Industrial Equipment		Others					68.0Semiconductor
									260.0			63.5	Electronics -3.0
									250.0	▲10.0		-4.0			+20.5
									25.0		＋1.0		FPDs・
				77.5						26.0		Electronics	43.4
								20.0		▲0.5		-20.5
				6.7						19.5
66.6								25.0
								25.0
62.5			5.8
6.1
			5.7					33.0
	7.1							33.0
4.8			9.3			Semiconductor
7.5	4.5								３Q	3Q	4Q				4Q	FY23
	43.4
	5.7					Electronics	59.0			Previous	Actual	Previous			Revised
9.1			Time lag					56.0	▲3.0	Forecast		Forecast			Forecast
8.2	6.1												3Q⇒4Q（¥5bn order received）
	12.5	26.0				24.0					LCD for IT panel	Approx. ¥10.0bn		Approx.
		4.4
9.9
										FPDs	Battery		Approx. ¥2.5bn	3Q⇒4Q				¥12.5bn
13.7	6.2
							38.5		▲7.5
						9.2	31.0											Approx.
					13.8			OLED・Capacitors	Approx. ¥3.0bn Postponed to next fiscal year
		6.5								¥3.0bn
29.3		6.4			4.6							Electronics	Power（IGBT・SiC）	Approx. ¥4.5bn	3Q⇒4Q（¥1.2bn order received）Approx.
23.4		8.0	24.0		8.0					Electronics Device	Approx. ¥3.5bn	3Q⇒4Q				¥8.0bn
				14.8	59.5	59.5
		13.8 Time						Memory		Approx. ¥4.5bn	Postponed to next fiscal year
		9.2	Time lag				Semiconductor			Approx.
			lag	Q4 E					Logic		Approx. ¥3.0bn	Postponed to next fiscal year		¥7.5bn
Q1	Q2	Q3		Q3			Q4 E	Previous	Revised
									Forecast	Forecast※Changes from previous forecast					Breakthrough 2022	5
© 2023 ULVAC, Inc. | Confidential and Proprietary Information