V Technology : Summary of Financial Results 2024

Note: This is an English translation of 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.

Summary of Consolidated Financial Statements

for the fiscal year ended of March 31, 2024

〔Under Japanese GAAP〕

May 13, 2024

Registered Company Name: V-Technology Co., Ltd.

Code Number: 7717, Tokyo Stock Exchange

URL:https://www.vtec.co.jp

Representative: Shigeto Sugimoto (President & CEO)

Contact: Shogo Yoshimura (Leader of IR Group, Office of the President) TEL: [phone]

Planned Date for the General Meeting of Shareholders: June,26 2024

Planned Date for Submission of the Securities Report: June,27 2024

Supplementary materials for the financial statements: Yes

Briefing session on financial results: Yes (for institute investors)

(Amounts less than one million yen have been omitted.)

1. Consolidated Financial Results for the Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)

1. Consolidated Results of Operations

		Year ended	Year ended
		March 31, 2023	March 31, 2024
		Amount		YoY(%)	Amount		YoY(%)
Net sales (Millions of Yen)		43,146		▲16.1	37,335		▲13.5
Operating profit or loss(▲)	(Millions of Yen)	986		▲81.9	846		▲14.2
Ordinary profit or loss(▲)	(Millions of Yen)	1,700		▲71.0	1,112		▲34.6
Net profit or loss(▲) attributable to owners of the parent (Millions of Yen)	260		▲93.8	778		199.1
Comprehensive Income or loss(▲) (Millions of Yen)	479		▲90.0	1,254		161.4
Net profit per share (Yen)		26.92		―	80.65		―
Diluted net profit per share (Yen)	―		―	―		―
Return on equity(%)				0.8			2.3
Ordinary income to total assets(％)			2.4			1.5
Operatiing income to net sales(％)			2.3			2.3
（Ref）Profit (loss) on equity method (Mliion of Yen)			▲162			▲187
(2) Consolidated Financial Position
		As of		As of
		March 31 ,2023	March 31, 2024
Total assets(Millions of Yen)			71,387			75,606
Net assets(Millions of Yen)				33,884			34,639
Equity ratio(％)				47.1			45.5
Net assets per share(Yen)				3,475.25			3,571.35
*Reference: Shareholdersʼ equity (Millions of Yen)			33,604			34,372
(3) Consolidated Cash flows
		As of		As of
		March 31 ,2023	March 31, 2024
Cash flows from operating activities			▲3,284			▲4,764
Cash flows from investing activities			▲1,195			▲440
Cash flows from financing activities			2,780			1,526
Cash and cash equivalents at end of period			26,295			26,295

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2. Dividends

		Year ended			Year ending			FY2024 Forecast
		March 31 2023			March 31 2024
1Q-end dividends per share (Yen)		―		―		―
2Q-end dividends per share (Yen)	60.00		30.00		30.00
3Q-end dividends per share (Yen)		―		―		―
Year-end dividends per share (Yen)	30.00			30.00		30.00
Anual dividends per share (Yen)	90.00			60.00		60.00

3. Forecast for the Fiscal Year ending March 31, 2025 (April 1, 2023 through March 31, 2024)

	Amounts		YoY(％)
Net sales (Millions of Yen)		47,000	25.9
Operating profit (Millions of Yen)	1,600	89.1
Ordinary profit (Millions of Yen)	1,400	25.9
Net profit attributable to owners of the parent (Millions of Yen)	1,000	28.5
Net profit per share (Yen)	103.59	―

Note: Revision of the forecast from the most recently announced dividend forecast is None.

1. Changes in significant subsidiaries during the period(April 1, 2023 through March 31, 2024) (Changes in specified subsidiaries associated with changes in scope of consolidation) : None
2. Changes in accounting policies, Changes in accounting estimates, or Restatement ⅰ. Changes in accounting policies due to changes in accounting standards: None ⅱ. Changes other than "a." above: None
   ⅲ. Changes in accounting estimates: None
   ⅳ. Restatements: None
3. Number of Shares Outstanding (Common stock)

	Items	As of	Number of shares	As of	Number of shares
1.	Number of shares outstanding at end of year	March 31, 2024	10,057,600	March 31, 2023	10,057,600
(Including treasury stock)
2.	Number of treasury shares at end of year	March 31, 2024	433,086	March 31, 2023	387,954
3.Average number of shares outstanding	March 31, 2024	9,652,982	March 31, 2023	9,669,462

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(Reference)

Non-consolidated Financial Results for the Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)

(1) Results of Operations
			Year ended	Year ended
			March 31, 2023	March 31, 2024
			Amount	YoY(%)	Amount	YoY(%)
Net sales (Millions of Yen)		30,053	▲23.7	23,700	▲21.1
Operating profit or loss(▲)	(Millions of Yen)	158	▲96.3	595	274.7
Ordinary profit or loss(▲)	(Millions of Yen)	2,341	▲57.0	2,536	8.3
Net profit or loss(▲)	(Millions of Yen)	985	74.0	▲3,154	―
Net profit per share	(Yen)		101.87	―	▲326.82	―
Diluted net profit per share (Yen)	―	―	―	―

Note：In the non-consolidated accounts for the year ended 31 March 2024, a provision for doubtful debts of JPY 5,565 million was recorded as an extraordinary loss against loans to consolidated subsidiaries of the Company.As a result, a net loss of JPY 3,154 million was recorded in the non-consolidated accounts for the year ended 31 March 2024.

(2) Financial Position
	As of	As of
	March 31 ,2023	March 31, 2024
Total assets(Millions of Yen)	63,794	61,843
Net assets(Millions of Yen)	32,842	29,104
Equity ratio(％)	51.5	47.1
Net assets per share(Yen)	3,396.47	3,023.95
*Reference: Shareholdersʼ equity (Millions of Yen)	32,842	29,104

*This Brief Report "Summary of Consolidated Financial Statements" is not subject to an audit by a certified public accountant or an audit corporation.

*Explanation of the appropriate use of earnings forecasts and other special notes

The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable. Actual results may differ materially from these statements due to a variety of factors.

Refer to "1. Qualitative Information on Quarterly Results (3) Explanation of Forward-Looking Statements" on page 5 of the attached materials for the assumptions used and precautions regarding the use of earnings forecasts.

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1. Qualitative Information on Quarterly Results

（１）Explanation of Business Results

With tensions in the Middle East further intensifying in addition to the crisis in Ukraine, the global economy during the financial year under review continued to face an uncertain outlook in general, with variations being observed across regions: in Europe, where the economy remained stagnant; in China, where the recovery lacked momentum; and in the United States, where the economy remained robust.

In the USA, the economy remained robust on the back of strong consumer spending despite the monetary tightening phase, while in China, despite growth in private and infrastructure investment, the economic recovery was limited to low growth due to a significant decline in property development investment.

In Japan, the economic recovery remained moderate, as corporate capital investment and inbound demand remained strong.

As for the consolidated business results of V Technology group (herein after "the group" or the company) for the current fiscal year ended March, 2024, net sales amounted to 37,335 million yen (43,146 million yen for the same period last year), and operating profit amounted to 846 million yen (operating profit 986 million yen for the same period last year), Ordinary proft was 1,112 million(ordinary income 1,700 million yen in the same period of the previous year), Net proft attributable to owners of the parent for the current fiscal year amounted to 778 million(net profit of 260 million in the same period of the previous fiscal year).

Orders received by the Group was 33,788 million yen(37,072 million yen in the same period of the previous year). As a result, the order backlog at the end of the consolidated fiscal year under review amounted to 37,100 million yen (36,647 million yen in the same period of the previous year).

Segment results are as follows.

(FPD Equipment Business)

In the flat panel display (FPD) equipment business, panel demand was generally weak and capital investment stagnated.

Under these circumstances, orders received in the Group's FPD equipment business during the fiscal year ended March 31, 2024 totaled 20,253 million yen (20,654 million yen in the same period of the previous year), with an order backlog of 19,899 million yen (21,904 million yen in the same period of the previous year), net sales amounted to 22,258 million yen (32,927 million yen in the same period of the previous year), and operating loss was 25 million yen (operating profit 980 million yen in the same period of the previous year).

(Semiconductor and Photomask Equipment Business)

In the semiconductor and photomask equipment business, while the supply-demand balance for semiconductors, capital investment related to our business generally proceeded as planned.

Under these circumstances, orders received by the Group in the semiconductor and photomask equipment business during the fiscal year ended march 31 2024 totaled 16,510 million yen (15,461 million yen in the same period of the previous year), and the order backlog totaled 17,200 million yen (14,742 million yen in the same period of the previous year), net sales amounted to 14,052 million yen (9,262 million yen in the same period of the previous year), and operating profit was 1,234 million yen (operating proft 254 million yen in the same period of the previous year).

1. Explanation of Financial Condition
   BS

(Assets)

Current assets at the end of the current financial year increased by 4,423 million to 67,045 million compared to the end of the previous financial year. This was mainly due to increases of 5,055 million in work in progress and 2,307 million in notes and accounts receivable, and a decrease of 3,633 million in cash and deposits.

Fixed assets decreased by 204 million to 8,560 million compared with the end of the previous financial year. This was mainly due to an increase of 861 million in 'investment securities' and a decrease of 505 million in 'shares in subsidiaries and affiliates'.

As a result, assets increased by 4,219 million to 75,606 million.

(Liabilities)

Current liabilities at the end of the current financial year increased by 5,377 million compared to the end of the previous financial year to JPY 29,299 million. This was mainly due to increases of 4,048 million and 3,381 million in 'current portion of long-term loans payable' and 'electronically recorded liabilities', respectively, and a decrease of 3,724 million in 'advances received'.

Long-term liabilities decreased by 1,913 million to 11,666 million. This was mainly due to a decrease of 2,112 million in Long-term loans payable. As a result, liabilities increased by 3,464 million to 40,966 million.

(Net assets)

Net assets at the end of the current financial year increased by 754 million compared to the end of the previous financial year to 34,639 million. This was mainly due to increases of 565 million in 'Foreign currency translation adjustments' and 188 million in 'Retained earnings'.

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(3) Explanation of Cash Flows

Cash and cash equivalents ('funds') at the end of the current financial year decreased by 3,402 million compared to the end of the previous financial year to 22,893 million. The status of each cash flow is as follows.

(Cash flows from operating activities)

Funds used in operating activities amounted to 4,764 million. The acquisition of funds was mainly due to net profit before taxes and other adjustments of 1,181 million and an increase in trade payables of 4,816 million. Funds used were due to an increase in inventories of 5,397 million, a decrease in advances received of 3,746 million and an increase in trade receivables of 2,278 million.

(Cash flows from investing activities)

Funds used in investing activities amounted to 440 million. The acquisition of funds was mainly due to proceeds from withdrawal of time deposits of 364 million, while the use of funds was mainly due to payments for purchase of property, plant and equipment of 512 million and payments into time deposits of 165 million.

(Cash flows from financing activities)

Funds acquired as a result of financing activities amounted to 1,526 million. The acquisition of funds was mainly due to proceeds from long- term borrowings of 7,650 million, while the use of funds was mainly due to repayments of long-term borrowings of 5,854 million.

(4) Explanation of Forward-Looking Statements

With regard to the Group's businesses, in the FPD equipment business, capital investment is expected to recover gradually in FY2025 compared with FY2024, when capital investment fell sharply. Further growth is also expected in the semiconductor and photomask equipment business in FY2025 compared with FY2024, when demand for semiconductor-related equipment declined due to the depressed semiconductor market.

Considering these circumstances, the forecast of consolidated results for the year ending 31 March 2025 is net sales of 47,000 million (+25.9% of previous year), operating income of 1,600 million (+89.1% of previous year), ordinary income of 1,400 million (+25.9% of previous year) and net income attributable to owners of the parent company of 1,000 million (+28.5% increase compared to the previous year).

(5) Basic Policy on Profit Allocation and Payment of Dividends for the Current and Next Fiscal Years

The Company's basic policy on the appropriation of profits is to return profits in line with business performance, taking into account the stability and continuity of dividends and the dividend payout ratio, while taking into account the need for sufficient internal reserves for M&A, capital investment, R&D investment and strengthening the management base for further business expansion in the future.

Under this policy, the Company plans to pay a year-end dividend of 30.00 yen per share for the year ending 31 March 2024 (annual dividend of 30.00 yen per share including an interim dividend of 30.00 yen per share). For the year ending 2025, the Group plans to pay an annual dividend of JPY 60.00 per share.

			Devidens
	Interim		Year ended	Anual
FY2024 (Yen)		30.00	30.00	60.00
FY2025 (Yen)		30.00	30.00	60.00

2. Basic philosophy on the selection of accounting standards

In order to ensure comparability with other companies in the same industry in Japan, the Group has adopted Japanese GAAP for accounting standards. Regarding the application of IFRS, the Group's policy is to respond appropriately, taking into account various domestic and international circumstances.

- 5 -

3．Consolidated Financial Statements and Major Notes

（1）Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Assets

Current assets

Cash and deposits

Notes and accounts receivable - trade Electronically recorded monetary claims - operating Merchandise and finished goods

Work in process

Raw materials and supplies

Other

Allowance for doubtful accounts

Total current assets

Non-current assets

Property, plant and equipment

Buildings and structures

Accumulated depreciation

Buildings and structures, net

Machinery and equipment

Accumulated depreciation

Machinery and equipment, net

Tools, furniture and fixtures

Accumulated depreciation

Tools, furniture and fixtures, net

Land

Leased assets

Accumulated depreciation

Leased assets, net

Construction in progress

Other

Accumulated depreciation

Other, net

Total property, plant and equipment

Intangible assets

26,729	23,096
22,408	24,716
103	165
338	477
7,219	12,274
2,532	2,780
3,709	3,980
△420	△445
62,621	67,045
2,745	2,872
△504	△645
2,241	2,227
1,939	1,795
△1,594	△1,484
344	310
2,735	2,921
△1,919	△2,151
816	770
482	493
－	222
－	△89
－	132
86	141
132	100
△68	△77
63	22
4,034	4,098

Goodwill	1,046	515
Patent right	15	15
Other	397	356
Total intangible assets	1,460	886
Investments and other assets
Shares of subsidiaries and associates	1,519	1,014
Investment securities	669	1,531
Deferred tax assets	613	561
Other	657	651
Allowance for doubtful accounts	△190	△182
Total investments and other assets	3,270	3,575
Total non-current assets	8,765	8,560
Total assets		71,387	75,606

- 6 -

				(Millions of yen)
		As of March 31, 2023		As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	4,039	5,429
Electronically recorded obligations - operating	2,574	5,956
Short-term borrowings	663	866
Current portion of long-term borrowings	4,961	9,009
Lease liabilities	－	9
Accounts payable - other	556	828
Income taxes payable	363	285
Advances received	8,221	4,496
Provision for bonuses	428	381
Provision for product warranties	1,333	865
Provision for loss on orders received	96	9
Other		683	1,162
Total current liabilities	23,922	29,299
Non-current liabilities
Long-term borrowings	12,662	10,550
Lease liabilities	－	122
Deferred tax liabilities	1	1
Retirement benefit liability	443	456
Asset retirement obligations	181	208
Provision for share awards	238	310
Other	52	16
Total non-current liabilities		13,579	11,666
Total liabilities		37,502	40,966
Net assets
Shareholders' equity
Share capital	2,847	2,847
Capital surplus	2,503	2,503
Retained earnings	29,198	29,387
Treasury shares	△1,915	△2,011
Total shareholders' equity		32,635	32,727
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	131	242
Foreign currency translation adjustment	837	1,402
Total accumulated other comprehensive income		969	1,644
Non-controlling interests	280	267
Total net assets		33,884	34,639
Total liabilities and net assets			71,387	75,606

- 7 -

（2) Consolidated Statements of Income

			(Millions of yen)
	Fiscal year ended		Fiscal year ended
	March 31, 2023		March 31, 2024
Net sales	43,146	37,335
Cost of sales		32,199	26,730
Gross profit		10,946	10,604
Selling, general and administrative expenses		9,960	9,758
Operating profit		986	846
Non-operating income
Interest and dividend income	34	60
Subsidy income	79	52
Foreign exchange gains	635	303
Other		186	135
Total non-operating income		935	551
Non-operating expenses
Interest expenses	45	60
Share of loss of entities accounted for using equity method	162	187
Other		13	37
Total non-operating expenses		222	285
Ordinary profit		1,700	1,112
Extraordinary income
Gain on sale of non-current assets	1	73
National subsidies	297	－
Gain on change in equity	489	11
Other		7	－
Total extraordinary income		796	84
Extraordinary losses
Loss on sale of non-current assets	8	－
Loss on retirement of non-current assets	6	1
Impairment losses	888	14
Other		20	－
Total extraordinary losses		925	15
Profit before income taxes		1,571	1,181
Income taxes - current	1,032	581
Income taxes - deferred		402	21
Total income taxes		1,434	603
Profit		137	578
Loss attributable to non-controlling interests		△123	△200
Profit attributable to owners of parent		260	778

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2023	March 31, 2024
Profit	137	578
Other comprehensive income
Valuation difference on available-for-sale securities	52	110
Foreign currency translation adjustment	87	441
Share of other comprehensive income of entities accounted for	203	124
using equity method
Total other comprehensive income	342	675
Comprehensive income	479	1,254
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	599	1,440
Comprehensive income attributable to non-controlling	△119	△186
interests

- 8 -

1. Consolidated statement of changes in equity

(Millions of yen)

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders'

equity

Balance at beginning of period

2,847

2,503

30,113

△1,916

33,548

Changes during period

Dividends of surplus

△1,176

△1,176

Profit attributable to owners of

260

260

parent

Purchase of treasury shares

△0

△0

Disposal of treasury shares

1

1

Other

1

1

Net changes in items other than

shareholders' equity

Total changes during period

－

－

△914

0

△913

Balance at end of period

2,847

2,503

29,198

△1,915

32,635

Accumulated other comprehensive income

Non-controlling

Valuation

Foreign

currency

Total accumulated

Total net assets

difference

on

other

interests

translation

available-for-sale

comprehensive

adjustment

securities

income

Balance at beginning of period

79

546

626

365

34,540

Changes during period

Dividends of surplus

△1,176

Profit attributable to owners of parent

260

Purchase of treasury shares

△0

Disposal of treasury shares

1

Other

1

Net changes in items other than

52

290

342

△84

257

shareholders' equity

Total changes during period

52

290

342

△84

△655

Balance at end of period

131

837

969

280

33,884

- 9 -

(Millions of yen)

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Balance at beginning of period

2,847

2,503

29,198

△1,915

32,635

Changes during period

Dividends of surplus

△588

△588

Profit attributable to owners of parent

778

778

Purchase of treasury shares

△99

△99

Disposal of treasury shares

3

3

Other

△2

△2

Net changes in items other than

shareholders' equity

Total changes during period

－

－

188

△96

92

Balance at end of period

2,847

2,503

29,387

△2,011

32,727

Accumulated other comprehensive income

Non-controlling

Valuation

Foreign

currency

Total accumulated

Total net assets

difference

on

other

interests

translation

available-for-sale

comprehensive

adjustment

securities

income

Balance at beginning of period

131

837

969

280

33,884

Changes during period

Dividends of surplus

△588

Profit attributable to owners of parent

778

Purchase of treasury shares

△99

Disposal of treasury shares

3

Other

△2

Net changes in items other than

110

565

675

△13

662

shareholders' equity

Total changes during period

110

565

675

△13

754

Balance at end of period

242

1,402

1,644

267

34,639

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