ULVAC : Script of Financial Results Presentation for 2Q FY2022

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I would like to explain our business performance in the first half of FY2022.

Orders received were generally in line with plans, while they declined 11% year on year due to a reactionary decline from last year's strong investment in FPDs for LCDs used for IT panels, although orders for growth drivers such as logic, power devices, and various electronic devices continued to be strong.

Net sales decreased 6% from the plan due to delayed sales contribution caused by longer delivery times of parts and materials, but increased 5% year on year.

Operating profit decreased 8% year on year due to the increased SG&A expenses mostly for development.

As for the full-year results forecasts,

orders are expected to be ¥260.0 billion, with FPD and materials falling short of the plan.

In addition, the contribution to sales will be delayed due to the impact of longer delivery times for parts and materials, and we have revised our forecasts to net sales of ¥230 billion and operating profit of ¥24 billion.

We expect sales, operating profit, and operating profit margin to recover from the second half of this fiscal year.

Even under the slowdown in memory investment, we expect to see continued growth in logic, power devices, and various electronic devices.

As for our future growth strategy, we scheduled to announce our next mid-term management plan in August, and will concentrate development investment in growth areas, aiming for net sales of ¥300 billion or more, gross profit margin of 35% or more, and operating profit margin of 16% or more.

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Please see this slide later as I just explained it in the summary.

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