V Technology : Summary of Financial Results for the second quarter 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 second quarter of the fiscal year ending of March 31, 2024

〔Under Japanese GAAP〕

November 10, 2023

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 Submission of the Securities Report: August 14, 2023

Planned Date for Start of Dividend Payment: None

Supplementary materials for the financial statements: Yes

Briefing session on financial results: None

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

1. Business Performance(April 1, 2023 through September 30, 2023)

1. Consolidated Results of Operations

		6 months ended	6 months ended
		September 30, 2022	September 30, 2023
		Amount		YoY(%)	Amount		YoY(%)
Net sales (Millions of Yen)		19,289		▲28.9	12,334		▲36.1
Operating profit or loss(▲)	(Millions of Yen)	585		▲77.0	▲880		―
Ordinary profit or loss(▲)	(Millions of Yen)	1,530		▲37.9	▲592		―
Net profit or loss(▲) attributable to owners of the parent (Millions of Yen)	1,330		▲29.8	▲647		―
Comprehensive Income or loss(▲) (Millions of Yen)	1,764		▲15.0	▲288		―
Net profit per share (Yen)		137.58		―	▲66.95		―
Diluted net profit per share (Yen)	―		―	―		―
(2) Consolidated Financial Position
		As of		As of
		March 31 ,2023	September 30, 2023
Total assets(Millions of Yen)			71,387			68,959
Net assets(Millions of Yen)				33,884			33,518
Equity ratio(％)				47.1			48.0
Net assets per share(Yen)				3,475.25			3,423.33
*Reference: Shareholdersʼ equity (Millions of Yen)			33,604			33,105

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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
Anual dividends per share (Yen)	90.00				60.00

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

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

	Amounts		YoY(％)
Net sales (Millions of Yen)		40,000	▲7.3
Operating profit (Millions of Yen)	1,000	1.4
Ordinary profit (Millions of Yen)	850	▲50.0
Net profit attributable to owners of the parent (Millions of Yen)	550	111.3
Net profit per share (Yen)	56.87	―

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

1. Changes in significant subsidiaries during the 3 months ended(April 1, 2023 through September 30, 2023) : None.
2. Application of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements: None
3. 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
4. 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	September 30,	10,057,600	March 31, 2022	10,057,600
(Including treasury stock)	2023
2. Number of treasury shares at end of year	September 30,	387,163	March 31, 2022	387,954
	2023
3.Average number of shares outstanding	September 30,	9,669,782	September 30,	9,669,383
(Cumulative quarterly period)	2023		2022

*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 3 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

During the first half of the current fiscal year, the global economy continued to face an uncertain outlook in general. In addition to the crisis in Ukraine, the situation in the Middle East is becoming increasingly tense, and there were variations by region: the U.S. economy remained strong, Europe showed a noticeable slowdown, and China was sluggish.

The U.S. economy, despite the tightening monetary policy, remained firm on the back of strong consumer spending, while the Chinese economy slowed amid continued weakness in the real estate market and lackluster capital investment and consumer spending.

In Japan, moderate economic growth continued, supported by growth in personal consumption and corporate capital investment.

As for the consolidated business results of V Technology group (herein after "the group" or the company) for the second quarter of the current fiscal year, net sales amounted to 12,334 million yen (19,289 million yen for the same period last year), and operating loss amounted to 880 million yen (operating profit 585 million yen for the same period last year), Ordinary loss was 592 million(ordinary income 1,530 million yen in the same period of the previous year),Net loss attributable to owners of the parent for the current fiscal year amounted to 647 million(net profit of 1,330 million in the same period of the previous fiscal year). Orders received by the Group in the current consolidated fiscal year totaled 20,476 million yen(17,691 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 44,787 million yen (41,123 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 second quarter totaled 11,510 million yen (6,867 million yen in the same period of the previous year), with an order backlog of 24,978 million yen (25,338 million yen in the same period of the previous year), net sales amounted to 8,436 million yen (15,706 million yen in the same period of the previous year), and operating loss was 544 million yen (operating profit 759 million yen in the same period of the previous year).

(Semiconductor and Photomask Equipment Business)

In the semiconductor and photomask equipment business, although supply and demand continued to deteriorate for some semiconductors, capital investment related to our group generally progressed as planned. Under these circumstances, orders received by the Group in the semiconductor and photomask equipment business during the second quarter of the year totaled 8,464 million yen (10,310 million yen in the same period of the previous year), and the order backlog totaled 19,809 million yen (15,784 million yen in the same period of the previous year), net sales amounted to 3,397 million yen (3,069 million yen in the same period of the previous year), and operating loss was 200 million yen (operating profit 89 million yen in the same period of the previous year).

1. Explanation of Financial Condition
   BS

(Assets)

Total assets at the end of the second quarter of the current fiscal year decreased by 2,427 million yen from the end of the previous consolidated fiscal year to 68,959 million yen. This was mainly due to an decrease in "Notes and accounts receivable" of 4,836 million yen.

(Liabilities)

Total liabilities at the end of the second quarter of the current fiscal year year decreased by 2,060 million yen from the end of the previous consolidated fiscal year to 35,401 million yen.This was mainly due to decreases of 4,067 million yen in " Long-term borrowings ".

(Net assets)

Net assets decreased by 366 million yen from the end of the previous consolidated fiscal year to 33,518 million yen. This was mainly due to a decrease of 942 million yen in "Retained earnings".

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Cash flows

Cash and cash equivalents (hereinafter referred to as "cash") at the end of the second quarter of the current consolidated fiscal year decreased by 2,032 million yen from the end of the previous consolidated fiscal year to 24,263 million yen. The status of each cash flow is as follows

(Operating Activities)

Net cash used in operating activities amounted to 1,568 million yen (2,090 million yen acquisition in the same period of the previous year). The acquisition of cash was mainly due to a decrease in notes and accounts receivable-trade of 4,939 million yen and an increase in notes and accounts payable-trade of 2,182 million yen, while the use of cash was mainly due to an increase in inventories of 4,761 million yen and a decrease in advances received of 3,726 million yen.

( Investing activities).

Net cash used in investing activities totaled 418 million yen (422 million yen used in the same period of the previous year). The use of cash was mainly due to purchase of property, plant and equipment in the amount of 238 million yen.

( Financing activities).

Net cash used in financing activities amounted to 219 million yen (compared to 47 million yen used in the same period of the previous year). The acquisition of cash was mainly due to a net increase in short-term loans payable of 240 million yen, while the use of cash was mainly due to a net decrease in long-term loans payable of 330 million yen.

(3) Explanation of Forward-Looking Statements

As for the forecast of business results for the fiscal year ending March 31, 2024, the Company has not changed it at this time from the forecast stated in "Summary of Financial Results for the Fiscal Year Ended March 31, 2023" released on May 12, 2023, taking into consideration the consolidated business results for the first quarter of the current fiscal period and future trends.

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2．Consolidated Financial Statements and Major Notes

（1）Consolidated Balance Sheets

			(Millions of yen)
		As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	26,729	24,716
Notes and accounts receivable - trade	22,408	※１ 17,572
Electronically recorded monetary claims -	103	87
operating
Merchandise and finished goods	338	594
Work in process	7,219	11,201
Raw materials and supplies	2,532	3,100
Other	3,709	3,320
Allowance for doubtful accounts		△420	△403
Total current assets	62,621	60,189
Non-current assets
Property, plant and equipment	4,034	4,094
Intangible assets
Goodwill	1,046	753
Other		413	467
Total intangible assets	1,460	1,221
Investments and other assets		3,270	3,454
Total non-current assets	8,765	8,769
Total assets		71,387	68,959

Liabilities

Current liabilities

Notes and accounts payable - trade

Electronically recorded obligations - operating

Short-term borrowings

Current portion of long-term borrowings Income taxes payable

Advances received

Provision for product warranties

Other provisions

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Retirement benefit liability

Asset retirement obligations

4,039	※１ 4,547
2,574	※１ 4,258
※２ 663	※２ 911
4,961	8,698
363	144
8,221	4,514
1,333	956
524	510
1,240	1,263
23,922	25,804
12,662	8,594
443	472
181	197

Provisions	238	275
Other		54	96
Total non-current liabilities	13,579	9,636
Total liabilities		37,502	35,441
Net assets
Shareholders' equity
Share capital	2,847	2,847
Capital surplus	2,503	2,503
Retained earnings	29,198	28,256
Treasury shares		△1,915	△1,912
Total shareholders' equity	32,635	31,695
Accumulated other comprehensive income
Valuation difference on available-for-sale	131	151
securities
Foreign currency translation adjustment		837	1,257
Total accumulated other comprehensive	969	1,409
income
Non-controlling interests		280	413
Total net assets	33,884	33,518
Total liabilities and net assets		71,387	68,959
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（2) Consolidated Statements of Income

					(Millions of yen)
				Six months ended	Six months ended
				September 30, 2022	September 30, 2023
Net sales				19,289	12,334
Cost of sales				14,206	8,528
Gross profit				5,083	3,805
Selling, general and administrative expenses		※ 4,498	※ 4,685
Operating profit (loss)		585	△880
Non-operating income
Interest and dividend income		15	18
Subsidy income		62	29
Foreign exchange gains		946	357
Other				64	60
Total non-operating income		1,088	465
Non-operating expenses
Interest expenses		18	28
Share of	loss of entities accounted for using		113	139
equity method
Other				11	8
Total non-operating expenses		143	176
Ordinary profit (loss)		1,530	△592
Extraordinary income
Gain on sale of non-current assets		1	12
Gain on change in equity		489	11
Total extraordinary income		491	24
Extraordinary losses
Loss on retirement of non-current assets		1	0
Loss on sale of investment securities		2	－
Impairment losses		－	2
Other				1	－
Total extraordinary losses		5	2
Profit (loss) before income taxes		2,016	△570
Income taxes - current		442	138
Income taxes - deferred		274	19
Total income taxes		717	158
Profit (loss)				1,299	△728
Loss attributable to non-controlling interests		△31	△81
Profit (loss) attributable to owners of parent			1,330	△647
		(Millions of yen)
				Six months ended	Six months ended
				September 30, 2022	September 30, 2023
Profit (loss)				1,299	△728
Other comprehensive income
Valuation	difference on available-for-sale		△31	19
securities
Foreign currency translation adjustment		198	317
Share of other comprehensive income of entities		298	103
accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

465440

1,764△288

1,801△190

△36△97

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（3) Consolidated Statements of Cash flows

							(Millions of yen)
						Six months ended	Six months ended
						September 30, 2022	September 30, 2023
Cash flows from operating activities
Profit (loss) before income taxes			2,016	△570
Depreciation					514	367
Amortization of goodwill				235	292
Impairment losses					－	2
Increase (decrease) in allowance for doubtful	△121	△17
accounts
Increase (decrease) in provision for bonuses	44	28
Increase	(decrease)	in	provision for product	△581	△381
warranties
Increase (decrease) in retirement benefit liability	30	28
Increase	(decrease)	in	provision for loss	on	△22	△46
orders received
Increase	(decrease)	in	provision	for share	40	40
awards
Interest and dividend income			△15	△18
Interest expenses					18	28
Loss on sale of notes receivable - trade		0	0
Share of loss (profit) of entities accounted for	113	139
using equity method
Loss (gain) on change in equity			△489	△11
Foreign exchange losses (gains)			△528	△0
Loss (gain) on sale	of property,	plant	and	△1	△1
equipment
Loss (gain) on sale of intangible assets		－	△11
Loss on	retirement	of	property,	plant	and	0	0
equipment
Loss on retirement of intangible assets		1	0
Loss (gain) on valuation of investment securities	1	△19
Decrease (increase) in trade receivables		1,802	4,939
Decrease (increase) in inventories			△4,799	△4,761
Decrease	(increase)	in	advance payments to	269	△354
suppliers
Decrease (increase) in other current assets		671	545
Decrease (increase) in other non-current assets	△58	△58
Increase (decrease) in trade payables		770	2,182
Increase (decrease) in advances received		2,860	△3,726
Increase (decrease) in other current liabilities	△193	△57
Other, net						0	4
Subtotal						2,579	△1,435
Interest and dividends received			15	18
Interest paid					△18	△24
Income taxes paid					△908	△423
Income taxes refund					422	296
Net cash provided	by	(used in)	operating	2,090	△1,568
activities

（4） Notes on Consolidated Financial Statements

Not applicable

Not applicable

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