V Technology : FY2023 Q1 Financial Announcement (Supplementary Material)

V-Technology Co., Ltd.

FY2023 First Quarter Result

Supplementary Materials

Copyright(C) 2022 V Technology Co., Ltd. All Right reserved.

August 10, 2022

1

Forward-Looking Statements

• Forward-lookingstatements
• • Plans, strategies, outlooks, and other statements of V-Technology and subsidiaries("The Group") that are not historical facts are forward-looking statements.
  • These items are based on currently available expectations, estimates, and projections. These expectations, estimates, and forecasts are subject to a number of potential risks, uncertainties and processes, including, but not limited to, changes in economic and market conditions, changes in the competitive environment, changes in the policies of the countries in which our customers operate, and the outcome of pending and future litigation.
  • Therefore, these expectations, estimates, and projections are subject to change, and actual results may differ materially from those in the forward-looking statements.
  • Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. The group assumes no obligation to update these forward-looking statements based on new information or future events.
• Foreign Exchange Risk
• • In principle, export sales of the groupʼs mainstay manufacturing equipment for SEMI or FPD or Photomasks are conducted in yen. The group hedges foreign exchange risk by entering into forwarding exchange contracts when receiving orders, if necessary. Therefore, the impact of exchange rate fluctuations on equipment sales is negligible.
• Treatment of figures
• • Amounts listed are rounded down to the nearest unit, and percentages are rounded off to the nearest unit, so they may not match the breakdown.
• Changes in reportable segments…【Changed from Q1, FY2023】
• • Previously, the Group's reportable segments were "FPD business" and "Semiconductor business.
  • In response to changes in the profit structure, the Company has reviewed the management classification. From the current first quarter consolidated accounting period, the Group changed the classification to "FPD Equipment Business" and "Semiconductor and Photomask Business," and the business segment that is not included in the reportable segments is listed as "Others" to disclose the segment information. Segment information for the previous consolidated fiscal year is as follows.
  • The segment information for the previous consolidated accounting period is disclosed based on the reporting segment classification after the product group review.

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2

Consolidated Financial Summary

• Business Environment: Equipment demand for semiconductors and photomasks is firm, but FPD demand is sluggish
• Q1 business result: Sales and profits decreased from the previous year, but within the scope of the full-year forecast
• Supplementary Explanation①〜④ on the below table

① Net sales	: Decrease of 5,299 million yen from the previous year, mainly due to slowdown in FPD affected by
Chinaʼs zero corona policy, and so on.
② Gross profit margin	: Improved product composition due to sales of G10.5 LCD lithography equipment: +4.9% y-o-y

• Operating profit margin: Gross profit margin improved, but sales decline was significant, -4.2%y-o-y

• Ordinary profit margin : 4.6% y-o-y increase due to marginal gain on foreign currency deposits, etc., resulting from fluctuations in foreign exchange rates

	FY2022 Q1				FY2023 Q1
(Million JPY)	Amount	Margin	Amount	Margin	YoY
Net sales	13,094	100.0％	１ 7,795	100.0％	▲40.5％
Gross profit	3,687	28.2％	2,582	２ 33.1％	▲30.0％
Operating profit	1,312	10.0％	452	３	5.8％	▲65.5％
Ordinary profit	1,238	9.5％	1,098	４	14.1％	▲11.3％
Net profit	1,145	8.7％	719		9.2％	▲37.2%
attributable to
owners of parent
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Financial Summary by business segments

Segments		FY2022 Q1						FY2023 Q1
		Amount
(Million JPY)	Amount	YoY	Supplementary information
				, and so on	(▲means decrease)
		Net sales	2,550	１	1,322		▲1,228	Demand for semiconductor equipment remained steady
									Regarding ①〜③ on the table
		Ratio	19.5％	２		17.0％	▲2.5％	① Significantly lower YoY due to sales timing issues
	SEMI &	OP	163			▲197	▲360
	３		②Composition ratio is expected to increase in the
	Photomasks
									future
		Ratio	12.4％			ー	ー	③Temporary loss due to sales decline
		Margin	6.4％			ー	ー	〜Composed of NSS, LTJ, OHT, and VT businesses*〜
		Net sales	10,438	４	6,187		▲4,251	Demand for equipment has declined due to China's zero-
		Ratio	79.7％			79.4％	▲0.3％	corona policy, sluggish panel prices, or other factors.
				Regarding ④〜⑤ on the table
	FPD	OP	1,176	５		697		▲479
			④ Effect of projects delay still remained to be orderd
		Ratio	89.6％			ー	ー	⑤ Gross profit margin improved, but profit decreased
				due to large sales decline.
		Margin	11.3％			11.3％	0.0％	〜Composed of VT and OHT*〜
		Net sales	105	６	284		+180	Composition of businesses other than the businesses
									mentioned above
	Others	OP	▲27			▲47	▲20	Regarding ⑥ on the table
									⑥ IT business contributes to the full year from this
		Margin	ー			ー	ー	fiscal year	Imec, Itec*〜
									〜Composed of Lumiotec,
		Net sales	13,094		7,795		▲5,299	*Subsidiaries
									NSS: Nano System Solutions Inc.
	Total	OP	1,312		452		▲860	LTJ: Lithotech Japan Co.
			OHT: OHT Inc.
									VT: V-Technology Co., Ltd.
									Lumiotec: Limiotec Inc. ...OLED lighting business
		Margin	10.0％			5.8％	▲4.2％	Imec: Aimec Agricultural Technology...Agricultural business
				Itec: Itec Co., Ltd. ...IT business
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Net sales by region （Unit︓Million JPY)

• China: Mainly due to sales decline in FPD equipment business (China
  sales ratio: 75.9%, ▲8.7% from the previous year)

15,000	FY22 Q1	FY23 Q1

13,095

11,079

10,000

7,795

5,913

5,000

		778	558	1,111	893	127	431
0
China	Taiwan	Japan	Korea, other area	Total
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