Hamamatsu Photonics K K : Financial Results for the Third Quarter of Fiscal Year ending September 30, 2023 [140 KB

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

	August 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 & Chief General Manager, Finance and Accounting

General Headquarters (Phone: [phone])

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

Scheduled date to begin dividend payments: -

Supplementary materials to the financial statements have been prepared: No

Presentation will be held to explain the financial statements: No

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

1. Consolidated financial results for the nine months ended Jun. 30, 2023 (From Oct. 1, 2022 through Jun. 30, 2023)

(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
Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
164,488	8.4	42,956	3.8	44,811		5.2	32,471	2.5
Jun. 30, 2023
Nine months ended	151,763	24.5	41,394	76.2	42,611		80.6	31,672	77.1
Jun. 30, 2022
Note: Comprehensive income
Nine months ended Jun. 30, 2023: 35,771 million yen [(14.3)%]
Nine months ended Jun. 30, 2022: 41,726 million yen [89.8%]
	Earnings per share		Diluted earnings per share
Nine months ended			Yen			Yen
		209.70			-
Jun. 30, 2023
Nine months ended			204.56			-
Jun. 30, 2022

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
As of Jun. 30, 2023	387,452	305,066	78.4
As of Sep. 30, 2022	366,177	281,904	76.6

For reference: Equity

As of Jun. 30, 2023: 303,749 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	-	38.00	-
Sep. 30, 2023
Fiscal year ending
Sep. 30, 2023
(Forecast)

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

End of FY

Yen 40.00

38.00

Full FY

Yen 72.00

76.00

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
Fiscal year ending	Millions of yen	%	Millions of yen	%	%	Millions of yen	%	Yen
223,900	7.2	55,800	(2.1)	56,900		(3.4)	39,600	(4.1)	255.73
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 Jun. 30 2023: 165,065,948 shares
   As of Sep. 30, 2022: 165,052,729 shares
2. Number of treasury shares at end of period As of Jun. 30 2023: 10,214,410 shares As of Sep. 30, 2022: 10,214,389 shares
3. Average number of shares outstanding during the period Nine months ended Jun. 30, 2023: 154,846,504 shares Nine months ended Jun. 30, 2022: 154,834,259 shares

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

(1) Operating Results

During the third quarter of this fiscal year (nine months ended June 30, 2023), Japan's economy, despite economic activities being on a recovery trend mainly due to the increase in inbound tourism following the downgrading of COVID-19 to a Class 5 infectious disease, was in a severe and uncertain situation due to growing concerns over a slowdown in overseas economies caused by prolonged monetary tightening in Europe and the US, prolonged adjustments in the global semiconductor market and other factors.

Given these circumstances, the Group worked to secure net sales and earnings by making reforms for further growth, continuing capital investment for future market expansion, and promoting research and product development utilizing the proprietary photonics technologies, with a view to contributing to a sustainable society.

As a result, we closed the third quarter with net sales of JPY 164,488 million, up by JPY 12,724 million (8.4%) compared with the same period one year ago. From an earnings perspective, operating profit was JPY 42,956 million, up by JPY 1,561 million (3.8%), ordinary profit was JPY 44,811 million, up by JPY 2,200 million (5.2%), and profit attributable to owners of parent was JPY 32,471 million, up by JPY 799 million (2.5%) from the same period one year ago, resulting in an increase in both net sales and earnings year on year.

Operating results by segment are as follows:

(Electron Tube)

Regarding photomultiplier tubes (PMT), imaging devices and light sources, although sales of Stealth Dicing Engine for high-speed,high-quality silicon wafer dicing declined, accompanying the expanding production of EV (electric vehicles), sales of microfocus X-ray sources for non-destructive testing devices in the industrial field increased for automotive battery testing applications and circuit board inspection applications. In addition, sales of light sources for semiconductor photolithography and inspection equipment increased due to the continuing impact of the strong orders received through the previous fiscal year, despite inventory adjustments by our customers due to the rebound following the sharp growth in demand that accompanied the settling down of COVID-19.

As a result, the Electron Tube business closed the third quarter with net sales of JPY 64,016 million, up by 8.6%, and operating profit of JPY 25,871 million, up by 8.0% from the same period one year ago. (Opto-semiconductor)

In opto-semiconductor devices, in the medical field, sales of flat panel sensors for dental diagnostic equipment decreased. However, sales of silicon photodiodes for X-ray CTs continued to increase as demand shifted from low-end to high-end models. Also, sales of image sensors for semiconductor fabrication and inspection equipment increased in the industrial field.

As a result, net sales in the Opto-semiconductor business were JPY 73,744 million, up by 4.7%, and operating profit was JPY 25,757 million, down by 2.6% from the same period one year ago.

(Imaging and Measurement Instruments)

In image processing and measurement systems, sales of failure analysis systems for semiconductor devices increased as the new high-value-added products were praised for their ease of operation and high performance. Also, sales of X-ray TDI cameras for automotive circuit board inspection applications and battery testing applications increased.

As a result, net sales for the Imaging and Measurement Instruments business were JPY 22,161 million, up by 21.5%, and operating profit was JPY 7,810 million, up by 51.2% from the same period one year ago.

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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 4,565 million, up by 9.9%, and operating loss was JPY 128 million, compared with an operating profit of JPY 289 million in the same period one year ago.

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(2) Financial Conditions

Current assets increased by JPY 7,669 million from the end of the previous fiscal year, mainly reflecting a JPY 15,967 million increase in inventories, despite a JPY 7,406 million decrease in cash and deposits. Non-current assets increased by JPY 13,605 million from the end of the previous fiscal year, mainly reflecting an increase in construction in progress of JPY 11,126 million.

As a result, total assets at the end of the third quarter were JPY 387,452 million, up by JPY 21,274 million from the end of the previous fiscal year.

Current liabilities decreased by JPY 1,054 million from the end of the previous fiscal year, mainly reflecting decrease in income taxes payable of JPY 9,487 million, despite increases in notes and accounts payable - trade of JPY 2,880 million and suspense receipts (current liabilities - other) of JPY 2,376 million.

Non-current liabilities decreased by JPY 832 million from the end of the previous fiscal year, mainly due to a decrease in forward exchange contracts (non-current liabilities - other) of JPY 391 million.

As a result, total liabilities at the end of the third quarter were JPY 82,386 million, down by JPY 1,887 million from the end of the previous fiscal year.

Net assets at the end of the third quarter were JPY 305,066 million, up by JPY 23,161 million from the end of the previous fiscal year, mainly reflecting an increase in retained earnings of JPY 20,372 million as a result of recording profit attributable to owners of parent and an increase in foreign currency translation adjustment of JPY 1,856 million.

(3) Projection for the Year

There is no change to the forecast of consolidated financial results for the fiscal year ending September 30, 2023, released on May 11, 2023.

We assume the yen/US dollar exchange rate for the second half year (from April 1, 2023 through September 30, 2023) will be JPY 125.00, the yen/Euro exchange rate will be JPY 135.00 and the yen/RMB exchange rate will be JPY 18.50.

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