JCU : Financial Results Briefing Material for the Fiscal Year Ending March 2023 (Webcast)

JCU Corporation

Financial Results Briefing for the Fiscal Year Ended March 2023

May 17, 2023

Event Summary

[Company Name]	JCU Corporation
[Company ID]	4975-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Financial Results Briefing for the Fiscal Year Ended March 2023
[Fiscal Period]	FY2023 Annual
[Date]	May 17, 2023
[Number of Pages]	21
[Time]	10:00 - 10:24
[Venue]	Webcast
[Venue Size]
[Participants]
[Number of Speakers]	1
	Masashi Kimura	Representative Director, President and CEO

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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Presentation

Kimura: Hello, everyone. I am Kimura, Representative Director, President, and CEO.

In the fiscal year ended March 31, 2023, our business environment was harsh due to the stagnation of the global economy due to the situation in Russia and Ukraine, lockdowns in various parts of China due to the zero-COVID-19 policy, and prolonged trade friction between the U.S. and China, among other factors.

Furthermore, the Company has already started the fiscal year ending March 31, 2024, and the business environment remains challenging due to the slowdown in overseas economies and other factors.

All of our directors and employees are united in our efforts to achieve our business forecast even in such a difficult business environment.

Now, I will provide an overview of the financial results for FY2023 ended March 31, 2023, and the forecast for FY2024 ending March 31, 2024. Thank you.

This is the overview of the business performance for the fiscal year ended March 2023. Since the fiscal year end of the Company's overseas subsidiaries is delayed by three months, the domestic non-consolidated business results are for the period from April 2022 to March 2023, while the overseas subsidiaries are for the period from January to December 2022.

In the electronics sector, demand for printed circuit boards for smartphones and various other high-function electronic devices remained flat due to stagnant personal consumption and the end of stay-at-home demand.

Sales of semiconductor package substrates remained sluggish, especially in H2 of the fiscal year, as customers moved to reduce inventories, although there were some differences by region. The business results by region will be explained in detail later.

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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In the automotive sector, a recovery trend was seen in Japan due to the easing of semiconductor and parts shortages, and demand for our chemicals increased. In China, automobile production declined due to the impact of the new coronavirus infection, but demand for our chemicals remained flat.

In the equipment business, the projects that have been postponed due to the COVID-19 pandemic have resumed for plating equipment for plating automotive parts, and sales, orders received, and order backlogs for plating equipment used in the electronics field increased significantly due to the continued new investments.

As a result of this business environment, our consolidated results for the fiscal year ended March 31, 2023, were as shown.

Net sales, operating income, and ordinary income all increased YoY. We ended up exceeding our earnings forecast at the beginning of the fiscal year due to the yen's depreciation during the period.

As for net income, the decrease was due to a change in the dividend policy of a major subsidiary. Previously, only net income was used as the source of dividends, but since it is now possible to pay dividends from retained earnings, the amount of tax expected to be paid in the future on such dividends is recorded as a deferred tax liability.

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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Balance sheet summary.

The equity ratio was 84.3% and ROE was 16.9%.

Exchange rate. Since we sell our products in local currencies and convert them into Japanese yen at the time of consolidated closing, foreign exchange rates affect our business results.

The major currencies used are the Chinese yuan, Taiwan dollar, and South Korean won, all using the average rates for the period from January to December 2022.

Support
Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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