(English)(Final)presentation material for FY2019 Q3 · Net Income 17.3 11.0 -36.1% Ratio 10.2% 7.7% - 2.5 pt ... ・The decline in the operation of customer plants Reasons of decreased

1 FY193QPSN20200514E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

(Securities code: 6728)

Business ResultsFY2019First to Third Quarter（cumulative）(July 2019 - March 2020)

ULVAC Inc.May 14, 2020


Data included in the documents are stated as follows:(All figures are stated on a consolidated basis unless otherwise noted.)

Yen values: Rounded to the nearest 10th of the unit stated.Percentages: Rounded to the nearest 10th after yen values are rounded.Abbreviations of accounting periods:

1Q and 2Q (cumulative): First and second quarter consolidated cumulative period2Q: Second quarter consolidated period

Disclaimer regarding forward-looking statementsForward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared. ULVAC’s customers in the flat-panel display (FPD), semiconductor, and electronic parts industries face challenges due to the rapid pace of technological advances and fierce competition.There are a number of factors that directly and indirectly impact performance, such as the global economy; fluctuations in exchange rates; market conditions for FPDs, semiconductors, electronic parts, and raw materials; and trends in capital expenditures. Consequently, actual net sales and profits may vary substantially from the projections included in this presentation.


Order Received: ¥119.3 billion（-31% year-on-year）- Although 3Q recovered from 1Q and 2Q, there was sharp decline year-on-year(cumulative)

mainly due to the postponement of FPD-related investments

Net Sales: ¥142.5 billion（-16% year-on-year）- Declined year-on-year(the effect of COVID-19, low progress to forecast of the second half)

Operating Profit: ¥13.2billion（-40% year-on-year）- Declined year-on-year due to the decrease of the Net Sales

Revised earnings forecast of FY2019

Overview of 1Q to 3Q FY2019 Consolidated Business Results (Cumulative)


FY2018 FY20193Q

（cumulative）Result

3Q（cumulative）

Result

Y-o-Y(Changes)

Orders Received 173.6 119.3 -31.3%

Net Sales 168.9 142.5 -15.6%

Gross Profit 50.6 39.5 -21.9%

Ratio 29.9% 27.7% - 2.2 pt

SG&A 28.6 26.2 -8.5%

Operating Profit 21.9 13.2 -39.8%

Ratio 13.0% 9.3% - 3.7 pt

Net Income 17.3 11.0 -36.1%

Ratio 10.2% 7.7% - 2.5 pt

• Orders Received: Although 3Q recovered from 1Q and 2Q, there was sharp decline year-on-year(cumulative) mainly due to the postponement of FPD-related investments

• Net Sales : FPD and component declined year-on-year(the impact of COVID-19, low progress to forecast of the second half)

• Operating Profit : Declined year-on-year due to the decrease of the Net Sales(Unit:¥1 billion) Net sales and operating profit

(by quarterly period)

Overview of 1Q to 3Q FY2019 Consolidated Business Results (Cumulative)

(Unit:¥1 billion)

61.7 55.1

52.1 51.8 46.8

50.0 45.7

8.7

6.4 6.4

1.9

4.93.5

4.8

0.0

5.0

10.0

15.0

20.0

0

20

40

60

80

1Q 2Q 3Q 4Q 1Q

FY2018 FY2019

2Q 3Q

OP

Net sales


• FPD and PV production equipment: Although 3Q recovered from 1Q and 2Q, there was sharp decline year-on-year(cumulative) mainly due to the temporary end of LCD investments for large-size TV and the postponement of OLED investments for smartphone

• Semiconductor and electronic device production equipment: Increased year-on-year contributed by electronic-devices-related, even though the semiconductor investment recovered slowly

FY20183Q

Overview of 1Q to 3Q FY2019 Consolidated Business Results (Cumulative) (Orders Received by Segment)

FY20193Q FY2017 FY2018 FY2019

(Unit:¥1 billion) (Unit:¥1 billion)

0

50

100

150

200

74.4

22.2

29.6

35.7

26.7

22.4

18.1

15.7

11.6

10.2

13.3

13.0

173.6

119.3

0

50

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

47.5

17.3 11.9 16.2

42.4

7.2

24.8 14.9

2.7 5.0 14.5

9.3

23.1

13.3 8.4

11.3

11.1

7.2

9.2

13.0 11.0

11.7

8.0

7.9

8.7 8.5

10.5

8.3

7.9

7.0

7.3 7.0

8.1

8.5

7.0

7.9 6.0

5.5

6.0

6.6

5.2

4.2 5.8

5.7

4.0

5.0

3.3 3.1

3.8

4.1

3.7

3.3

3.3 3.5

3.4

3.7

5.0

3.8 5.5

4.3

5.0

4.0

5.3

4.6 4.5

3.9

81.0

65.4 48.9

47.7

77.7

41.7 54.2

44.9 35.2 36.8

47.3

Orders vs. same period last year Quarterly change

Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment


0

50

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

28.9 28.1 28.3 23.2 26.420.1 20.1 20.2 18.0 17.2 15.1

10.9 13.4 14.912.4

12.711.3 9.1 10.2 10.3 11.4 11.7

8.6 7.8 8.2

8.39.4

8.9 8.3 7.6 6.8 7.6 7.0

5.3 5.6 6.3

6.56.0

5.96.0 5.6

4.9 5.0 4.6

4.0 4.3 3.13.8

3.8

3.93.5 3.2

3.3 3.82.8

3.2 5.2 4.14.9

3.5

5.05.1 5.0

3.5 4.94.5

60.9 64.3 64.959.161.7

55.152.151.8

46.8 50.045.7

Overview of 1Q to 3Q FY2019 Consolidated Business Results (Cumulative) (Net Sales by Segment)

• FPD and PV production equipment: Fell slightly year-on-year thanks to the relatively high beginning backlog which partly absorbed the impact from declined orders

Net sales vs. same period last year(Unit:¥1 billion) (Unit:¥1 billion)

FY2017 FY2018 FY2019

Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment

Quarterly change

FY20183Q

FY20193Q

0

50

100

150

200

66.650.3

33.133.4

26.621.4

17.8

14.5

11.1

9.9

13.6

12.9

168.9

142.5


27.6 27.2

29.6 29.028.7

31.0 30.3

27.7

25.827.2

30.2

15

25

35

Overview of 1Q to 3Q FY2019 Consolidated Business Results (Cumulative) (Profit Margins)

• Both Gross profit margin and Operating profit margin were in high level.

Gross profit margin Operating profit margin(Unit: %) (Unit: %)

12.9

12.6

14.913.4

14.0

12.4

12.4

3.7

10.5

7.0

10.5

0

10

20

FY2019FY2018FY20171Q 2Q 3Q 4Q1H 2H 1H 2H 1Q

FY20162Q 3Q

FY2019FY2018FY20171Q 2Q 3Q 4Q1H 2H 1H 2H 1Q

FY20162Q 3Q


FY2018 FY20193Q

Overview of 3Q FY2019 Business Results (Consolidated Balance Sheet)

FY2018 FY20193Q

282.3 286.4 282.3 286.4

• Cash on hand and in banks increased by ¥17.0 billion, Interest-bearing debt increased by ¥16.3 billion• Net assets increased by ¥3.7 billion, and the equity ratio improved to 54.0%.

(Unit: ¥1 billion)Assets (Unit: ¥1 billion)Liabilities and Net Assets

34.7 31.3

65.7 65.5

6.4 5.6

39.8 37.6

77.2 70.8

58.6 75.6

0

100

200

300Cash on hand and inbanks

Notes and accountsreceivable,trade

Inventories

Other current assets

Property,plant andequipment

Investment securities etc.

157.6 161.3

9.5 10.7 38.8 29.7

35.6 51.8

40.7 32.9

0

100

200

300Note and accountspayable,trade

Interest-bearing debt

Other current liabilities

Other Long-termliabilities

Net Assets


Revision of FY2019 Full Year Consolidated Earnings Forecast• Net sales and profit items are revised downward as orders・net sales and operating profit are expected

to decline due to the impact of COVID-19(Unit: ¥1 billion)

*Published on Feb.13,2020

OriginalForecast*

RevisedForecast

vs.OriginalForecast

(Changes)

2HRevisedforecast

-16.0-9.5%

-17.0-8.6%

-3.0-20.0%

Ratio 10.8% 9.3% 7.6% 6.6% - 0.9 pt 8.7% 4.3%

-0.3-2.8%

Ratio 8.5% 7.7% 5.5% 5.8% + 0.3 pt 8.0% 3.2%

7.8 2.7

72.0 80.0

96.7 84.3

8.4 3.6

Net Income 18.7 11.0 10.8 10.5

Operating Profit 23.8 13.2 15.0 12.0

Net Sales 220.7 142.5 198.0 181.0

Orders Received 218.5 119.3 168.0 152.0

FY2019

1HResult

　FY2019FY2018

Full YearResult

3Q(cumulative）

Result

Full Year


Revision of FY2019 Full Year Consolidated Earnings Forecast• Both Order received and Net sales are revised downward mainly due to the impact of COVID-19.

0

50

100

150

200

250

31.2 32.7

67.4 61.3

51.1 42.6

46.842.1

31.327.6

31.128.720.9

18.4

20.118.414.8

13.5

14.913.418.6

17.1

17.717.1168.0

152.0

198.0181.0

Order Received Net Sales

FY2019Initial

Forecast

FY2019RevisedForecast

FY2019Initial

Forecast

FY2019Revised Forecast

(Unit: ¥1 billion)

【Impacts of COVID-19】Reasons of decreased Order Received

(Major Factors)

・Face-to-face negotiations were not possible

・The delay in procuring equipment from other

companies and the capital investment postponement

・The decline in the operation of customer plants Reasons of decreased Net Sales

(Major Factors)

・The delay of order received

・The delay of installments and acceptance inspections

・The decline in the operation of customer plants

Other

MaterialsGeneral industrial equipmentComponents

Semiconductor and electronic device production equipmentFPD and PV production equipment


Response to COVID-19

[Basic Policy] • Implement measures to prevent infection with the highest priority on the safety and health of

ULVAC Group employees, their families, business partners, etc. • Fulfill responsibility for supplying to customers

[Production and development systems] • Production and development bases follow the policies of national and local governments to

prevent infection thoroughly. • No major problems occurred such as operation continuation, distribution, or procurement.

Measures necessary for business continuity are in progress.• The existing quadrilateral production and development system (Japan, Korea, Taiwan,

China) enables alternative production and development at other sites in the event of closure of plants or development sites due to the infection.


Status of major production and development bases• Status of major production and development bases are in operation.

No significant impact on supply chain.• The impact was minimal because the quadrilateral production and

development system enables a mutual covering.

・Main development sites:Chigasaki,Susono,

Tomisato

・Main production site: Pyeongtaek(Semiconductor and electronic device production equipment, FPD production equipment, Components etc.)

U.S.A(Start of operations scheduled )・Boston(Semiconductor and electronic device

production equipment）

・Main production sites:Suzhou(Electronic device production equipment,

FPD production equipment)Chengdu & Shenyang(General industrial equipment)Ningbo(Components)

・Main development site:Pyeongtaek

・Main production site: Chigasaki,Susono,Tomisato,Kagoshima,Hachinohei,Miyasaki

Japan (In operation.No impacts on production and procurement)

South Korea (In operation. No impacts on production and procurement)

・Main production site: Tainan(Semiconductor and electronic device production equipment, FPD production equipment, etc.)

・Main development site:Hsinchu

Taiwan(In operation. No impacts on production and procurement)

・Main development sites:Beijin,Suzhou

China(Resumption of operations at all plants)


Key points of new medium-term management planBy promoting management reform, we will enhance our business fundamentals.1. Growth Business

Expanding semiconductor and electronic businesses with products and technologies that support technological innovation to realize a smart society. Also strengthen our Components business

2. Strengthen research and development capabilitiesStrengthening product development in response to technological innovation in growth markets by integrating development departments to enhance technology sensing functions and concentrate management resources

3. Enhance manufacturing capabilitiesPromoting production reforms in all processes from technology and design to production system

4. Reinforce group management efficiencyPromoting system platform development and management integration of the group


Topics: Approaches to raising corporate value

ULVAC,Inc.(Third straight year) 「2020 Certified Health and Productivity Management Organization（White 500）」 large-sized corporate

ULVAC Equipment sales Inc.（Second straight year)ULVAC-PHI, Inc.ULVAC TECHNO, Ltd.ULVAC Human Relations, Ltd. 「2020 Certified Health and Productivity Management Organization」Small and medium-sized corporate

In March 2020, ULVAC,Inc. received an award as "Kanagawa Prefectural Governor's Award" for its "My ME-BYO chart" corporate correspondence walking event sponsored by the Kanagawa Prefectural Policy Bureau.

With the aim of making every employee to have a dream, work joyfully, and be happy to go to work" , the president, executives in charge of health promotion, general affairs and personnel managers, industrial physicians and public health nurses work together to promote healthy management with the goal of "improvement of human power".

Recognized as 2020 Certified Health and Productivity Management Organization as well as group companies

Selected by GPIF’s top domestic asset management organizations as

“Highly Improved Integrated Report”(Third straight year)

We will continue to strive for high quality and easy-to-understand information disclosure.

（For Japanese）

（For English）


ULVAC vacuum technology contributes to many industries and applications


Vacuum technology

For manufacturing

Documents

(English)(Final)presentation material for FY2019 Q3 · Net Income 17.3 11.0 -36.1% Ratio 10.2% 7.7% - 2.5 pt ... ・The decline in the operation of customer plants Reasons of decreased