Dexerials : FY23 Financial Results (Slide Presentation)

FY23

Financial Results

May 13, 2024

Effective from FY24Q1, the Company has adopted

the International Financial Reporting Standards (IFRS).

Dexerials Corporation

List of Materials Disclosed on May 13, 2024

Topic	Type	Title

Financial Results

Financial Results

Mid-term Management Plan

Mid-term Management Plan

Capital Policy

AGM proposal

AGM proposal

Other

Financial

Results

Presentation

Timely disclosure

Presentation

Timely disclosure

Timely disclosure

Timely disclosure

Press release

Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

FY23 Financial Results

Formulation of Mid-Term Management Plan 2028 "Achieving Evolution" and Purpose

FY2024 to FY2028 Mid-Term Management Plan "Achieving Evolution"

Notice Regarding Stock Split and Revision to the Articles of Incorporation in Conjunction with the Stock Split

Notice Regarding Revisions to Officer Remuneration System

Notice Regarding Partial Revision to Performance-Linked Stock Compensation Plan for Directors of Dexerials Corporation

Dexerials Formulates Purpose and Statement

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Contents

• FY23 Financial Results Summary
• FY24 Earnings Forecast

Disclaimer with respect to earnings and other forecasts

The forward-looking statements including earnings forecasts contained in this document are based on information currently available to us and certain assumptions that we believe are reasonable. Accordingly, we can give no assurance that such statements will prove to be correct. Actual results may differ from the results anticipated in these forward-looking statements due to a variety of factors.

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Highlights

FY23 Results

FY24 Forecast

◼ Sales fell, while profit increased YoY. Record high operating profit and net profit.

◼ In H1, the performance was affected by inventory adjustments. In H2, although the recovery of the overall market was moderate, high value-added products of the Company, such as Anisotropic conductive films (ACF) and products for sensor modules for smartphones, grew.

◼ Net sales: 107.0 billion JPY, business profit: 33.5 billion JPY (The assumed FX rate: 140

JPY/US$)

• YoY：decrease in sales of Phosphor films offset by the expansion of high value-added products. Profit also effectively increased, excluding differences attributed to accounting standards and the impact of FX.

◼ Shareholder returns

• To be provided throughout the period of Mid-term Management Plan, with a target total payout ratio at 60% of net profit

• Dividend policy with a target consolidated payout ratio of 40% and lower limit of DOE at 7%*, and flexible implementation of share buybacks

• Cash dividends: Interim dividend of 78 yen/share and year-end dividend of 26 yen/share are planned (annual dividend before stock split is taken into consideration: equivalent to 156 yen/share)

◼ A three-for-one stock split will be implemented effective on October 1, 2024 with the purpose of increasing the liquidity of the Company's stock and expanding its base of investors.

* 7% of net assets as of the end of the previous fiscal year

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FY23-24 Market Trend of Major Final Products and of Dexerials (YoY)

	Market Trend Image
Final products	of YoY change		FY24 Trend of Dexerials
	FY23	FY24
Tablets				• The market trend is expected to remain flat.
			•	In Phosphor films, termination of sales by
					changing to OLED from LCD for final products.
				• The market will be on an upward trend due in
Laptop PCs					part to replacement demand.
			•	While a cautious view will be taken of demand
					of Phosphor films, offset with increased Anti-
					reflection films.
				• The market trend is expected to remain flat.
Smartphones				• Expansion is expected of products related to
				sensor modules and particle-arrayed ACFs for
					high-end models.
				• The automobile markets of China and Europe
Automotive					will recover.
			•	Expansion is expected mainly related to Anti-
					reflection films and ACF.

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FY23（April 1, 2023 - March 31, 2024）

Financial Results Summary

FY23 Financial Results Summary

(Unit: JPY Mil)

Net Sales

Operating Profit

Ordinary Profit

Net Profit

FY22

106,167 32,288 30,174 20,685

FY23	YoY Change
		Excluding FX effects
105,198	-0.9%	-5.9%
33,421	+3.5%	-10.6%
30,028	-0.5%
21,382	+3.4%

Net Profit per Share

(Reference) Before Amort. of Goodwill

Dividend per Share

Total payout ratio (Before Amort. of Goodwill )

EBITDA

ROIC

ROE

(Reference) Before Amort. of Goodwill

1. Yen

1. Yen

1. Yen 56.6%

39,101 24.4% 30.3% 33.6%

1. Yen

1. Yen

1. Yen 50.8%

40,024 22.3% 27.1% 30.0%

YoY Chg Amt

+18.1 Yen

+18.8 Yen

ー

ー

+923 -2.1%Pt-3.2%Pt-3.6%Pt

YoY Chg % +5.2% +4.8% ー ー

+2.4% ー ー ー

（Notes）Net profit shall be read as net income attributable to owners of the parent company EBITDA=Operating profit + Depreciation expense recorded as operating expenses + Amortization of goodwill ROIC=(Operating profit x (1-Effective tax rate)) / (Capital + Interest-bearing debt) x 100

ROE＝Net profit / Capital x 100

Total payout ratio (Before amortization of goodwill)

• (Total dividend payment + Total share buyback) / (Net profit + Amortization of goodwill) x 100 Performance of Kyoto Semiconductor Co., Ltd. is consolidated from FY22

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FY23 Changes in Sales by Application* (YoY)

▲10

(Unit: JPY 100 Mil)

FY22	Tablets Laptop	Smart-	Auto- Others	FX	FY23
135.5	PCs**	phones	motives		144.6
JPY/US$					JPY/US$

• Includes estimates **Includes Desktop monitors

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FY23 Operating Profit Analysis (YoY)

+11

(Unit: JPY 100 Mil)

FY22	Price	Volume	Fixed	FX	FY23
135.5	/Mix	/Mix	Costs,		144.6
JPY/US$			etc.		JPY/US$

（Reference）FY23H2 Operating Profit （YoY）

+57

22H2	Price・Volume	FX	23H2
137.0	/Mix		148.3
JPY/US$	Fixed Costs		JPY/US$

Price/Mix

■ Negative Contributors ：

Fuses, Phosphor films

Volume/Mix

■ Positive Contributors：

ACF, Smart precision Adhesive, Fuses

◆EBITDA

(Unit: JPY 100 Mil)

391 400

FY22 FY23

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Segment Summary

FY23 Optical Materials & Components

◆Sales and YoY Change by Category	Net Sales	YoY	◆Operating Profit	Operating Profit 160.4	YoY
514.5	Analysis (YoY)	－11%
	－7%
(Unit: JPY 100 Mil)	Excluding	(－11%)		Excluding FX Effects	(－21%)
	FX Effects	(Unit: JPY 100 Mil)	EBITDA 178.9	－11%

553.8 514.5

Optical films －18%（－21%）

(Anti-reflection films, Phosphor films)

Optical resin materials +11% （+5%） (Optical Elastic Resin (SVR),

Smart precision Adhesives, etc.)

FY22	Price	Volume	Fixed	FX	FY23
135.5	/Mix	/Mix	Costs,		144.6
JPY/US$			etc.		JPY/US$

◆Financial Performance	492	554	515	500

(Unit: JPY 100 Mil)	236		286
					201
						179	167
				154	180	(+31%)
				160 (-11%)
					135 (-7%)
			79	131 (+95%)
	41	55	(+92%)
18	(+9%)
FY19	FY20	FY21	FY22	FY23	FY24Fcst*

Sales

Operating Profit/

Business Profit*

EBITDA（YoY）

(Notes) Net sales of the Optical M&C segment include inter-segment transactions.

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