ULVAC : Script of Financial Results Presentation for Q3 FY2022

Business Results

The Third Quarter of FY2022

(July 2022 - March 2023)

May 12, 2023

Breakthrough 2022

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Disclaimer regarding forward-looking statements

Forward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared.

There are several factors that directly or indirectly impact the company performance, such as the global economy; market conditions for FPDs, semiconductor, electronic devices, and raw materials; trends in capital expenditures and fluctuations in exchange rates. Please note that actual business results may differ significantly from these forecasts and future projections.

Note:

This document has been translated from 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.

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

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Summary

1. No change in mid to long-term growth strategy (focusing development investment on growth areas such as semiconductor and electronics, targeting net sales of ¥300 billion or more, gross profit margin of 35% or more, and operating profit margin of 16% or more in FY6/2026)
2. Steady shift towards semiconductor and electronics (power devices, various electronic devices and logic increasing, doubling from FY19)
3. Q3 YTD orders down YoY due to a YoY decline in FPD orders and the shift of FPD and electronics orders from 3Q to 4Q
   Net sales and operating profit both declined YoY mainly due to lower order received
4. Downward revision of full-year earnings forecast for FY2022. Dividend forecast unchanged
5. • Downward revision to net sales of ¥215.0 billion and operating profit of ¥17.5 billion Dividend forecast unchanged in view of stable dividend
   • Intensification of initiatives in response to longer lead times for parts and materials Strengthening of management through reorganization in July
   • High level of orders continues due to growth in semiconductor and electronics. Order backlog is expected to exceed ¥150 billion at the end of the fiscal year
   • Aiming for further expansion of orders and sales in the next fiscal year and onwards through continuous growth in power devices, various electronic devices, logic devices, etc., and investment in Roll-to-Roll equipment for batteries

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

Breakthrough 2022

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At 3:00 p.m. today, we announced our 3Q results and revised downward our full-year forecast.

As stated in No.3, orders of 20.5 billion yen scheduled in 3Q (12.5 billion yen for FPDs and 8 billion yen for electronics) were postponed to 4Q, and investments of 4 billion yen for semiconductor scheduled in 3Q,3 billion yen for FPDs and 3.5 billion yen for semiconductor scheduled in 4Q have been postponed to the next fiscal year. As a result, 3Q orders, sales and profit were below the previous forecast.

Sales and profit, which temporarily declined in 3Q, will begin to recover from 4Q, but orders, sales, and profit for the full year will also decline, resulting in another downward revision of full-year results.

As stated in No.4, net sales are expected to be 215 billion yen, 15 billion yen less than the previous forecast.

Operating profit is expected to be 17.5 billion yen, 6.5 billion yen less than the previous forecast, and net income is expected to be 4 billion yen less than the previous forecast.

The downward revision is due to temporary factors such as postponement of order timing and postponement of investments to the next fiscal year.

As stated in No. 1, there is no change in our mid-term growth strategy, and our policy of concentrating development investment in growth areas such as

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semiconductors and electronics remains unchanged, aiming for net sales of 300 billion yen or more, gross profit margin of 35% or more, and operating profit margin of 16% or more by the fiscal year ending June 30, 2026. Therefore, from the viewpoint of stable dividends to our shareholders, there is no change in our dividend forecast.

Regarding the long delivery lead time for parts and materials, lead time and delivery time for equipment have been shortened by planned production and advanced arrangements in growth areas such as semiconductor, power devices.

The downward revision for the second consecutive time is mostly due to customer circumstances. However, it is possible to say that we did not have an accurate grasp of customer investment trends and that our order plan was pulled down by high expectations.

We are already working to strengthen communication with our customers and introducing confirmation and verification systems and we will also strengthen our management system through organizational changes starting in July.

We apologize for the concern regarding the two downward revisions. As described in No.2, the shift to high-margin semiconductors and electronics, a pillar of the growth strategy in the mid-term management plan, is progressing steadily. Orders received doubled compared to FY19, and the order backlog at the end of this fiscal year is expected to exceed 150 billion yen due to the continued high level of orders for semiconductors and electronics. With continuous growth in power devices, various electronic devices, and logic, as well as the start of investment in Roll-to-Roll equipment for batteries, we aim to further expand orders and sales in the next fiscal year and onwards, and would like to reiterate that our mid to long-term growth strategy remains unchanged.

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Revision of full-year forecast for FY2022

Net sales, operating profit and profit attributable to owners of the parent have been revised downwards due to the delay in sales contribution caused by the delayed timing of FPD and electronics orders, and the slowdown in semiconductor investment.

Dividend forecast remain unchanged.

	FY2021		FY2022
(Unit: ¥1 billion)	Actual	Previous	Revised	Vs.Previous	YoY
Forecast	Forecast	Forecast
Orders Received	270.1	260.0	250.0	-10.0	-20.1
Net Sales	241.3	230.0	215.0	-15.0	-26.3
Operating Profit	30.1	24.0	17.5	-6.5	-12.6
Operating Profit Margin	12.5%	10.4%	8.1%	-2.3pt	-4.3pt
Profit attributable to	20.2	20.0	16.0	-4.0	-4.2
owners of parent
To net sales ratio	8.4%	8.7%	7.4%	-1.3pt	-0.9pt

© 2023 ULVAC, Inc. | Confidential and Proprietary Information

Breakthrough 2022

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As for the full-year forecast, the downward revision of net sales and each profit item was announced today due to the delay in sales contribution caused by the 20.5 billion yen postponement of orders for FPD and electronics from 3Q to 4Q, the decrease in sales caused by the slowdown in semiconductor investment and postponement of FPD investment.

Orders received were 250 billion yen, 10 billion yen less than the previous forecast, besides the postponement of the period from 3Q to 4Q,

Net sales are expected to be 215 billion yen, down 15 billion yen , and operating profit 17.5 billion yen, down 6.5 billion yen from the previous forecast.

The dividend forecast remains unchanged because the revision is a temporary downward of earnings due to a delay in orders and from the perspective of stable dividends.

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