First Half of Fiscal Year ending June 2020
Financial Results
February 4, 2020
Osamu Okabayashi
President, Lasertec Corporation
(Tokyo Stock Exchange 6920)
Contents
- Results of First Half of Fiscal Year ending June 2020
- Forecast for Fiscal Year ending June 2020
1
- Results of First Half of Fiscal Year ending June 2020
- Forecast for Fiscal Year ending June 2020
2
Results of First Half of Fiscal Year 2020 - Summary
Market
In the semiconductor industry, major foundries made investment in leading-edge technology node, mainly EUV-related. Memory makers downsized or delayed capital expenditure for 3D-NAND and DRAM.
Highlights of results
We achieved record half-year sales, profits and orders.
Sales: Slightly lower than forecast due to a shift in the timing of some product sales.
Profits: Slightly higher than forecast, despite lower-than-expected sales, because SGA expenses were lower than expected mainly due to slower implementation of R&D.
Orders: Significantly higher than forecast. Semiconductor-related products captured a very high level of orders.
Consolidated Result | |||
First Half of FY2020 | YoY Change | Forecast | |
(In millions of yen ) | |||
(August 7, 2019) | |||
Net sales | 19,948 | +18.5% | 22,000 |
Operating income | 7,988 | +55.2% | 7,700 |
Net income | 5,593 | +45.3% | 5,900 |
Orders | 41,256 | +57.1% | 14,200 |
3
First Half of FY2020 - Income Statement
Achieved YoY increase in sales and profits.
Operating profit increased more than 50% YoY.
Consolidated | First Half of FY2019 | First Half of FY2020 | |||||||||||||
(in millions of yen) | Actual | Margin | Forecast | Actual | Margin | YoY | |||||||||
(August 7, 2019) | Change | ||||||||||||||
Net Sales | 16,837 | 100.0% | 22,000 | 19,948 | 100.0% | 18.5% | |||||||||
Cost of sales | 7,334 | 43.6% | - | 8,279 | 41.5% | 12.9% | |||||||||
Gross profit | 9,503 | 56.4% | - | 11,669 | 58.5% | 22.8% | |||||||||
SG&A expenses | 4,355 | 25.9% | - | 3,680 | 18.4% | ▲15.5% | |||||||||
Operating income | 5,148 | 30.6% | 7,700 | 7,988 | 40.0% | 55.2% | |||||||||
Ordinary income | 5,150 | 30.6% | 7,700 | 7,948 | 39.8% | 54.3% | |||||||||
Net income | 3,848 | 22.9% | 5,900 | 5,593 | 28.0% | 45.3% | |||||||||
(In millions of yen) | 25,000 | 19,948 | |||||||||||||
20,000 | |||||||||||||||
16,837 | |||||||||||||||
15,000 | Net sales | ||||||||||||||
10,000 | 7,988 | ||||||||||||||
5,148 | Operating income | ||||||||||||||
5,000 | |||||||||||||||
0 | |||||||||||||||
First Half | First Half | ||||||||||||||
FY2019 | FY2020 |
4
First Half of FY2020 - Sales by Product Category
Sales growth driven by semiconductor mask inspection systems and mask blank inspection systems
Consolidated | First Half of FY2019 | First Half of FY2020 | |||
YoY | |||||
(in millions of yen) | Actual | Ratio | Actual | Ratio | |
Change | |||||
Semiconductor-related products | 12,275 | 72.9% | 15,866 | 79.5% | 29.3% |
Other products | 2,485 | 14.8% | 1,316 | 6.6% | ▲47.0% |
Services | 2,077 | 12.3% | 2,765 | 13.9% | 33.1% |
Total | 16,837 | 100.0% | 19,948 | 100.0% | 18.5% |
(In millions of yen) 25,000 | ||||||||
19,948 | Services | |||||||
20,000 | ||||||||
16,837 | ||||||||
15,000 | Other products | |||||||
Semiconductor- | ||||||||
10,000 | ||||||||
related products | ||||||||
5,000 | ||||||||
0 | ||||||||
First Half FY2019 First Half FY2020 | ||||||||
5
First Half of FY2020 - Financial Position
Large increase of work in process due to increase in orders
Assets
Liabilities and
Net Assets
(In millions of yen) | Non-current assets | Current assets | ||
60,000
40,000
50,076
39,841
20,000
10,21410,689
0
June 30, 2019 December 31, 2019
Net assets | Non-current liabilities | ||
(In millions of yen) | Current liabilities | |
60,000 | ||
24,812 | ||
40,000 | 18,433 | 536 |
514 | ||
20,000 | 31,107 | 35,417 |
0 | ||
June 30, 2019 | December 31, 2019 |
- Major changes】
(In | millions of yen) |
(Current assets) | |
Work in process | 6,328 |
Notes and accounts | 2,108 |
receivable-trade | |
Cash and deposits | 1,121 |
(In millions of yen)
(Current liabilities) | ||
Advances received | 2,654 | |
Other | 1,726 | |
Accounts payable-trade | 1,302 | |
6
First Half of FY2020 - Cash Flows
Net cash provided by operating activities was 4,073 million yen.
(In millions of yen)
16,000
12,000
8,000
4,000
0
(4,000)
【Major factors】 Operating CF
Investing CF
Financing CF
Operating CF | Investing CF | Financing CF | Cash and cash equivalents | ||||
14,241
4,073
▲ 1,588 ▲ 1,400
First Half of FY2020
(In millions of yen)
Income before income taxes (7,948), Other increase (3,010), Increase in advances received (2,633) Increase in inventories (▲6,736), Increase in note and accounts receivable-trade (▲2,081)
Income taxes paid (▲1,479)
Purchase of propety, plant and equipment (▲1,003), Purchase of intangible assets (▲567) Cash dividens paid (▲1,397)
7
First Half of FY2020 - Orders and Backlog
Orders and backlog far exceeded past record level, driven by high- level orders for EUV-related systems
Orders | Backlog | ||||||
First Half of | First Half of FY2020 | First Half of | First Half of FY2020 | ||||
Consolidated | FY2019 | FY2019 | |||||
(in millions of yen) | |||||||
Actual | Actual | YoY | Actual | Actual | YoY | ||
Change | Change | ||||||
Semiconductor-related products | 23,341 | 37,671 | 61.4% | 45,532 | 73,846 | 62.2% | |
Other products | 772 | 660 | ▲14.5% | 2,964 | 1,941 | ▲34.5% | |
Services | 2,153 | 2,925 | 35.8% | 813 | 1,081 | 32.8% | |
Total | 26,267 | 41,256 | 57.1% | 49,310 | 76,868 | 55.9% | |
(In millions of yen) 50,000
40,000 | 41,256 | Services | |||||
30,000 | 26,267 | Other products | |||||
Semiconductor- | |||||||
20,000 | |||||||
related products | |||||||
10,000 | |||||||
0 | |||||||
First Half FY2019 First Half FY2020 | |||||||
8
First Half of FY2020 - Other Indicators
We continued hiring employees for future growth.
First Half of | First Half of FY2020 | |||
Consolidated | FY2019 | |||
(in millions of yen) | Actual | Actual | Percentage of | YoY |
sales | Change | |||
R&D expenses | 1,920 | 1,445 | 7.2% | ▲24.7% |
Depreciation and amortization | 223 | 410 | 2.1% | 84.1% |
Capital expenditure *1 | 317 | 769 | 3.9% | 142.2% |
*1 Including intangible assets | ||||
Total number of employees *2 | 353 | 402 | - | 49 |
*2 Not including members of the board
9
First Half of FY2020 - New Products
New Products
Sept.
2019
ACTIS A150 Actinic EUV Patterned Mask Inspection
System
ACTIS A150 is the world's first actinic EUV patterned mask inspection system. Because of its use of EUV, which has a much shorter wavelength than DUV, for inspection, it achieves significantly higher defect sensitivity.
It also enables the detection of printable defects unique to EUV masks as well as the inspection of EUV masks with pellicle.
10
First Half of FY2020 - Topics
Topics
Lasertec stock was selected as a constituent of JPX- Aug. Nikkei Index 400, which consists of 400 stocks that are
2019
highly attractive to investors.
Lasertec employee was | |
awarded "Best Oral | |
Sept. | Presentation" for his |
presentation of ACTIS at | |
2019 | |
SPIE Photomask Technology | |
+ EUV Lithography 2019. | |
11
- Results of First Half of Fiscal Year ending June 2020
- Forecast for Fiscal Year ending June 2020
12
Business Environment
Segment | Business environment | ||
Logic device | Investment is expected to continue in leading-edge technology | ||
node, mainly EUV-related, driven by demand for 5G. | |||
Semiconductor | |||
Memory | There are signs of price fall bottoming out. Capex in 3D-NAND | ||
and DRAM is expected to resume in CY2020. | |||
Further growth is expected due to the trend of having dual or | |||
Image sensor | triple cameras on smartphones as well as due to the growth of | ||
automotive applications anticipated in the medium term. | |||
Power device | The market is expanding as industry players accelerate efforts | ||
to introduce SiC devices to electric vehicles. | |||
Others
Segment | Business environment |
FPD | Investments for 10.5G panel production in China are shrinking |
or delayed. OLED investment has diminished, but some | |
investments are expected to resume. | |
LiB | The consumer product market is gradually growing mainly due |
to the growth of mobile applications. The automotive market is | |
expected to grow with the progress of vehicle electrification. |
13
Global Semiconductor Equipment Market (SEMI Dec. 2019)
2019 | The market shrank 10.5% YoY, but still recorded second highest sales. Taiwan grew | |||||||
50% and became No. 1 market. China ranked No. 2 for second year in a row. | ||||||||
2020 | In 2020, the market will return to growth, driven by leading-edge logic and foundry as | |||||||
well as by new projects in China. In 2021, sales are expected to reach the highest | ||||||||
2021 | ||||||||
level again, with China becoming No. 1 market for the first time. | ||||||||
In billions of US dollars | ||||||||
80 | ||||||||
$64.42 | $66.79 | |||||||
$60.82 | ||||||||
60 | $56.62 | $57.64 | Others | |||||
$41.24 | Europe | |||||||
40 | Japan | |||||||
North America | ||||||||
Korea | ||||||||
20 | China | |||||||
Taiwan | ||||||||
0
2016 | 2017 | 2018 | 2019 estimate 2020 forecast 2021 forecast |
Source: SEMI December 2019
14
Second Half of FY2020 - Goals and Actions
(1) Core Business and New Business
Semiconductor Mask Inspection System - MATRICS
We will continue to promote X8ULTRA to major customers for EUV lithography lines.
We will sell X810EX series to other customers for conventional optical lithography lines to gain higher market share.
Semiconductor Mask Blanks Inspection and Review System - MAGICS
We will promote M9650/M9651 to major mask blank suppliers and mask shops.
SiC Wafer Inspection and Review System - SICA
We will win more multiple orders for SICA88 from major customers. We will also increase market share in China.
15
Second Half of FY2020 - Goals and Actions
(2) Promotion of EUV-related Systems
Mask Blank Manufacturing | Mask | Mask Inspection in Wafer Fab |
Manufacturing | (Device Production Process) | |
New
MAGICS M9650 | ABICS E120 | ACTIS A150 | MATRICS | BASIC Series |
Semiconductor Mask | EUV Mask Blanks | Actinic EUV Patterned | X8ULTRA | EUV Mask Backside |
Blanks Inspection & | Inspection & Review | Mask Inspection | Semiconductor Mask | Inspection & |
Review System | System | System | Inspection System | Cleaning System |
DUV
EUV Substrate
EUV light | EUV light |
(13.5nm) | (13.5nm) |
Multilayer | Pellicle | ||
EUV Mask Blank | EUV Patterned Mask with Pellicle | EUV Patterned Mask | |
or without Pellicle | without Pellicle |
- Inspection possible either with or without pellicle
- Inspection with pellicle shown above
16
FY2020 Forecast - Sales and Profits
Aiming to achieve a significantly higher record of sales and profits
Consolidated | FY2019 | FY2020 | ||||||||||||||
Previous | New forecast | YoY | ||||||||||||||
(in millions of yen) | Actual | Margin | Margin | |||||||||||||
(Aug. 7, 2019) | (Feb. 3, 2020) | Change | ||||||||||||||
Net Sales | 28,769 | 100.0% | 40,000 | 40,000 | 100.0% | 39.0% | ||||||||||
Operating income | 7,941 | 27.6% | 13,000 | 14,000 | 35.0% | 76.3% | ||||||||||
Ordinary income | 7,834 | 27.2% | 13,000 | 14,000 | 35.0% | 78.7% | ||||||||||
Net income | 5,933 | 20.6% | 10,000 | 10,000 | 25.0% | 68.5% | ||||||||||
(In millions of yen) | 50,000 | |||||||||||||||
40,000 | ||||||||||||||||
40,000 | ||||||||||||||||
28,769 | ||||||||||||||||
30,000 | ||||||||||||||||
Net sales | ||||||||||||||||
20,000 | 14,000 | |||||||||||||||
7,941 | Operating income | |||||||||||||||
10,000 | ||||||||||||||||
0 | ||||||||||||||||
FY2019 actual | FY2020 forecast | |||||||||||||||
17
FY2020 Forecast - Sales by Product Category
Sales growth driven by semiconductor-related products
Consolidated | FY2019 | FY2020 | |||||||||||
Previous | New forecast | YoY | |||||||||||
(in millions of yen) | Actual | Ratio | Ratio | ||||||||||
(Aug. 9, 2019) | (Feb. 4, 2020) | Change | |||||||||||
Semiconductor-related products | 19,762 | 68.7% | 29,400 | 30,700 | 76.8% | 55.3% | |||||||
Other products | 4,409 | 15.3% | 3,400 | 3,000 | 7.5% | ▲32.0% | |||||||
Services | 4,597 | 16.0% | 7,200 | 6,300 | 15.8% | 37.0% | |||||||
Total | 28,769 | 100.0% | 40,000 | 40,000 | 100.0% | 39.0% | |||||||
(In millions of yen) 50,000 | 40,000 | ||||||||||||
40,000 | Services | ||||||||||||
Other products | |||||||||||||
28,769 | |||||||||||||
30,000 | |||||||||||||
Semiconductor- | |||||||||||||
20,000 | related products | ||||||||||||
10,000 | |||||||||||||
0
FY2019 actual | FY2020 forecast |
18
FY2020 Forecast - Orders by Product Category
Forecast revised upward by 24 billion yen due to high demand for EUV-related systems
Orders | Backlog |
Consolidated | FY2019 | FY2020 | ||
(in millions of yen) | Actual | Previous | New forecast | YoY |
(Aug. 9, 2019) | (Feb. 4, 2020) | Change | ||
Semiconductor-related products | 37,338 | 35,700 | 60,500 | 62.0% |
Other products | 2,329 | 3,100 | 3,200 | 37.3% |
Services | 4,781 | 7,200 | 6,300 | 31.8% |
Total | 44,449 | 46,000 | 70,000 | 57.5% |
(In millions of yen)
FY2019 | FY2020 | ||
Actual | Previous | New forecast | YoY |
(Aug. 9, 2019) | (Feb. 4, 2020) | Change | |
52,041 | 58,341 | 81,841 | 57.3% |
2,597 | 2,297 | 2,797 | 7.7% |
921 | 921 | 921 | 0.0% |
55,560 | 61,560 | 85,560 | 54.0% |
80,000 | 70,000 | ||||||||
60,000 | Services | ||||||||
44,449 | Other products | ||||||||
40,000 | |||||||||
Semiconductor- | |||||||||
20,000 | related products | ||||||||
0 | |||||||||
FY2019 actual | FY2020 forecast | ||||||||
19
FY2020 Forecast - YoY Comparison of Operating Income
Large YoY increase of 6,058 million yen, despite proactive R&D investment for future growth
FY2019 Operating income 7,941
Increase in gross profit mainly due to sales increase
+6,829
Increase in R&D expenses ▲339
Increase in other SG&A expenses ▲431
(Consolidated, in millions of yen)
FY2020 Operating income 14,000
YoY increase 6,058
0
FY2019 Actual | FY2020 Forecast |
20
FY2020 Forecast - Other Indicators
We will make R&D investment and hire employees proactively for future growth.
Consolidated | FY2019 | FY2020 | ||
Forecast | Percentage | YoY | ||
(in millions of yen) | Actual | |||
(Feb. 4, 2020) | of sales | Change | ||
R&D expenses | 3,590 | 3,929 | 9.8% | 9.5% |
Depreciation and amortization | 499 | 943 | 2.4% | 88.8% |
Capital expenditure *1 | 2,097 | 1,173 | 2.9% | ▲44.1% |
*1 Including intangible assets | ||||
Total number of employees *2 | 375 | 440 | - | 65 |
*2 Not including members of the board
[Reference]
Previous forecast (Aug. 9, 2019)
4,370
906
824
414
21
FY2020 Forecast - Dividends
Interim dividend for FY2020 is 31 yen per share. The total amount of dividends for FY2020 is forecast to be all-time high.
Dividend Policy
- Steady profit distribution and flexible payment based on performance
- Consolidated dividend payout ratio of 35% is the guideline (since FY2015)
History of Dividends
FY2018 | FY2019 | FY2020 | ||||
Interim | Year-end | Interim | Year-end | Interim | Year-end | |
(before stock split) | (forecast) | |||||
(after stock split) | ||||||
12 | 22 | 16 | 31 | 31 *1 | 24 *2 | |
Dividend per | ||||||
Total not provided because | ||||||
share (yen) | Total 34 | Total 47 | ||||
calculation is too complicated | ||||||
due to stock split | ||||||
Dividend | 35.1% | 35.7% | 35.6% | |||
payout ratio | ||||||
*1 Interim dividend is paid for shares before stock split. 31 yen per share is the same as previously forecast.
*2 Year-end dividend is paid for shares after stock split. The previous forecast of year-end dividend, 47 yen per share, is halved and rounded up.
22
Contact Information
・Lasertec Corporation
Yutaro Misawa, Corporate Planning Office ・Phone: +81-45-478-7127
・E-mail: yutaro.misawa@ lasertec.co.jp
Rounding of figures in this presentation:
Figures less than a million yen are rounded down where the financial results and forecasts are presented. The sum of component figures may not be equal to the total figure due to round-off error.
This presentation is compiled from information available to us as of the date of release. Actual results may differ materially from the forecast of this presentation due to various factors.
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Disclaimer
Lasertec Corporation published this content on 04 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2020 03:40:12 UTC