Micronics Japan : Transcript of conference on FY2022 results

Conference on FY2022 Result

February 15, 2023

Code: 6871

Co., Ltd.	0

This is a transcript of the results presentation of Micronics Japan for the fiscal year ended December 2022, which was announced on February 15, 2023.

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Disclaimer

The contents of this presentation were compiled based on information readily available at the time of this presentation. Outlooks and other forward-looking statements are subject to change based on many uncertain worldwide factors including but not limited to market conditions, competition as well as semiconductor / LCD industry trends. Accordingly, please take note that the actual performance of the Company may vary considerably from the information and statements made in this presentation.

© 2023 All Rights Reserved - Micronics Japan Co., Ltd.

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Todayʼs Agenda

1. Overview of Fiscal Year Result Ended on December 31, 2022

Futoru Saito

Director & Senior Executive Officer, General Manager of Administration Office

2. Business Conditions

Masayoshi Hasegawa

President and Representative Director

3. Q&A Session

© 2023 All Rights Reserved - Micronics Japan Co., Ltd.

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＜Speakers＞

MICRONICS JAPAN CO., LTD., President and Representative Director, Masayoshi Hasegawa

MICRONICS JAPAN CO., LTD., Director & Senior Executive Officer,

General Manager of Administration Office,

Futoru Saito

MICRONICS JAPAN CO., LTD., General Manager, Corporate Planning & Strategy Office,

Shigeki, Toda

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Overview of Fiscal Year Result

Ended on December 31, 2022

© 2023 All Rights Reserved - Micronics Japan Co., Ltd.

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Consolidated Result Summary

(Mils. of Yen)

					FY12/2021	FY12/2022	QoQ (%)			FY12/2022
					Q4	Q3	Q4		Forcast ※3	Result	Variance
	Net Sales		11,541	10,564	14,185	34.3%		45,000	44,321	(679)
		Probe Card		9,577	9,851	12,908	31.0%		41,600	40,394	(1,206)
		TE	※1		1,964	713	1,277	79.1%		3,400	3,926	+526
	Gross Profit		4,577	4,887	6,542	33.9%		－	20,229	－
		SG&A Expenses	2,709	2,686	3,619	34.8%		－	11,003	－
	Operating Income	1,867	2,200	2,922	32.8%		9,400	9,225	(175)
		Probe Card	※2	2,565	2,837	3,510	23.7%		－	11,508	－
		TE		※2	299	(34)	250	━		－	335	－
		Corporate		(997)	(601)	(837)	━		－	(2,618)	－
	Ordinary Income	2,025	2,662	3,315	24.5%		10,200	10,423	+223
	Net Income Attributable	3,638	1,573	3,083	95.9%		6,800	7,530	+730
	to Owner of Parent
	Dividend per Share(yen)		－	－	－		55	59	+4

※1︓Test Equipment ※2︓Segment profit

※3︓Forecast previously provided on November 11.2022

・The test socket business has been transferred from the "probe card business" to the "TE business" from the fiscal year ending December 31, 2022, and the results of the previous fiscal year have been reclassified.

© 2023 All Rights Reserved - Micronics Japan Co., Ltd.

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Thank you for attending Japan Micronics Japan's fiscal year 2022 December financial result presentation. I am Saito, the Director, Senior Managing Executive Officer. Without further ado, I would like to provide a consolidated result summary of our fiscal year 2022 December.

First, this is our summary of our financial results. The table on the left side of the slide shows quarterly figures, and the table on the right shows full-year statistics. The yellow areas on both the left and right sides are the results for the current fiscal year.

In the fourth quarter, net sales were 14,185 million yen, and operating income was 2,922 million yen, both record highs for the fourth quarter. In the table on the left, the figures for the fourth quarter of the fiscal year ending December 2021 are shown on the far left. The figures for the third quarter of the fiscal year ending December 2022 are shown in the second column from the left.

For the full year, net sales were 44,321 million yen, and operating income was 9,225 million yen, also record figures for the full year. However, a breakdown of net sales shows a shortfall of 679 million yen compared to the total sales forecast of 45,000 million yen announced on November 11. The breakdown was a short on probe cards for 1,206 million yen. On the contrary, the result was that TE exceeded the expected figure by 526 million yen.

As for probe cards, unfortunately, there were times when the market was a little bit worse, and there were some deals where sales slid in the first quarter of 2023. As a result, it was 1,206 million yen less than the forecast as of November 11.

On the other hand, TE could record sales in the fourth quarter even though some cases needed more than customer deadlines and were not accepted easily. The figure was a little over 500 million yen, so the figure exceeded the forecast as of November 11.

As net sales were short by 679 million yen, operating profit was also short by 175 million yen compared to the November 11 forecast. However, at the ordinary profit level, the profit was 10,423 million yen, 223 million yen higher than the forecast as of November 11. The biggest factor in this is the impact of foreign exchange gains.

Furthermore, net income was 730 million yen higher than the forecast as of November 11, resulting in 7,530 million yen. The most significant impact was due to lower tax expenses caused by the sell-off of inventories that had previously been written off, related to the sales described in TE.

We also received more tax credits for testing and research than we had expected, resulting in a much smaller tax expense than we expected on November 11. As a result of these factors, net income increased by 730 million yen. As net income increases, we plan to pay a dividend of 59 yen per share, taking into account the payout ratio.

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