Lasertec : Presentation Material - First Half of Fiscal Year ending June 2020 Financial Results （PDF：566KB）

First Half of Fiscal Year ending June 2020

Financial Results

February 4, 2020

Osamu Okabayashi

President, Lasertec Corporation

(Tokyo Stock Exchange 6920)

Contents

1. Results of First Half of Fiscal Year ending June 2020
2. Forecast for Fiscal Year ending June 2020

1

1. Results of First Half of Fiscal Year ending June 2020
2. Forecast for Fiscal Year ending June 2020

2

Results of First Half of Fiscal Year 2020 - Summary

Market

In the semiconductor industry, major foundries made investment in leading-edge technology node, mainly EUV-related. Memory makers downsized or delayed capital expenditure for 3D-NAND and DRAM.

Highlights of results

We achieved record half-year sales, profits and orders.

Sales: Slightly lower than forecast due to a shift in the timing of some product sales.

Profits: Slightly higher than forecast, despite lower-than-expected sales, because SGA expenses were lower than expected mainly due to slower implementation of R&D.

Orders: Significantly higher than forecast. Semiconductor-related products captured a very high level of orders.

	Consolidated Result
First Half of FY2020	YoY Change	Forecast
(In millions of yen )
		(August 7, 2019)
Net sales	19,948	+18.5%	22,000
Operating income	7,988	+55.2%	7,700
Net income	5,593	+45.3%	5,900
Orders	41,256	+57.1%	14,200

3

First Half of FY2020 - Income Statement

Achieved YoY increase in sales and profits.

Operating profit increased more than 50% YoY.

Consolidated		First Half of FY2019						First Half of FY2020
(in millions of yen)		Actual	Margin	Forecast	Actual		Margin	YoY
		(August 7, 2019)		Change
Net Sales		16,837	100.0%	22,000	19,948		100.0%	18.5%
Cost of sales		7,334	43.6%	－	8,279		41.5%	12.9%
Gross profit		9,503	56.4%	－	11,669		58.5%	22.8%
SG&A expenses		4,355	25.9%	－	3,680		18.4%	▲15.5%
Operating income		5,148	30.6%	7,700	7,988		40.0%	55.2%
Ordinary income		5,150	30.6%	7,700	7,948		39.8%	54.3%
Net income		3,848	22.9%	5,900	5,593		28.0%	45.3%
(In millions of yen)	25,000		19,948
		20,000
			16,837
		15,000										Net sales
		10,000					7,988
			5,148							Operating income
		5,000
		0
			First Half	First Half
				FY2019	FY2020

4

First Half of FY2020 - Sales by Product Category

Sales growth driven by semiconductor mask inspection systems and mask blank inspection systems

Consolidated	First Half of FY2019	First Half of FY2020
				YoY
(in millions of yen)	Actual	Ratio	Actual	Ratio
	Change
Semiconductor-related products	12,275	72.9%	15,866	79.5%	29.3%
Other products	2,485	14.8%	1,316	6.6%	▲47.0%
Services	2,077	12.3%	2,765	13.9%	33.1%
Total	16,837	100.0%	19,948	100.0%	18.5%

(In millions of yen) 25,000
	19,948				Services
20,000
16,837
15,000								Other products
							Semiconductor-
10,000
							related products
5,000
0
	First Half FY2019 First Half FY2020

5

First Half of FY2020 - Financial Position

Large increase of work in process due to increase in orders

Assets

Liabilities and

Net Assets

(In millions of yen)		Non-current assets		Current assets

60,000

40,000

50,076

39,841

20,000

10,21410,689

0

June 30, 2019 December 31, 2019

	Net assets		Non-current liabilities

(In millions of yen)	Current liabilities
60,000
		24,812
40,000	18,433	536
	514
20,000	31,107	35,417
0
	June 30, 2019	December 31, 2019

• Major changes】

(In	millions of yen)
(Current assets)
Work in process	6,328
Notes and accounts	2,108
receivable-trade
Cash and deposits	1,121

(In millions of yen)

(Current liabilities)
Advances received	2,654
Other	1,726
Accounts payable-trade		1,302

6

First Half of FY2020 - Cash Flows

Net cash provided by operating activities was 4,073 million yen.

(In millions of yen)

16,000

12,000

8,000

4,000

0

(4,000)

【Major factors】 Operating CF

Investing CF

Financing CF

	Operating CF		Investing CF		Financing CF		Cash and cash equivalents

14,241

4,073

▲ 1,588 ▲ 1,400

First Half of FY2020

(In millions of yen)

Income before income taxes (7,948), Other increase (3,010), Increase in advances received (2,633) Increase in inventories (▲6,736), Increase in note and accounts receivable-trade (▲2,081)

Income taxes paid (▲1,479)

Purchase of propety, plant and equipment (▲1,003), Purchase of intangible assets (▲567) Cash dividens paid (▲1,397)

7

First Half of FY2020 - Orders and Backlog

Orders and backlog far exceeded past record level, driven by high- level orders for EUV-related systems

Orders					Backlog
	First Half of	First Half of FY2020		First Half of	First Half of FY2020
Consolidated	FY2019		FY2019
(in millions of yen)
Actual	Actual	YoY		Actual	Actual	YoY
	Change		Change
Semiconductor-related products	23,341	37,671	61.4%	45,532	73,846	62.2%
Other products	772	660	▲14.5%	2,964	1,941	▲34.5%
Services	2,153	2,925	35.8%	813	1,081	32.8%
Total	26,267	41,256	57.1%	49,310	76,868	55.9%

(In millions of yen) 50,000

40,000		41,256			Services
30,000			26,267				Other products
				Semiconductor-
20,000
						related products
10,000
0
		First Half FY2019 First Half FY2020

8

First Half of FY2020 - Other Indicators

We continued hiring employees for future growth.

	First Half of	First Half of FY2020
Consolidated	FY2019
(in millions of yen)	Actual	Actual	Percentage of	YoY
	sales	Change
R&D expenses	1,920	1,445	7.2%	▲24.7%
Depreciation and amortization	223	410	2.1%	84.1%
Capital expenditure *1	317	769	3.9%	142.2%
*1 Including intangible assets
Total number of employees *2	353	402	－	49

*2 Not including members of the board

9

First Half of FY2020 - New Products

New Products

Sept.

2019

ACTIS A150 Actinic EUV Patterned Mask Inspection

System

ACTIS A150 is the world's first actinic EUV patterned mask inspection system. Because of its use of EUV, which has a much shorter wavelength than DUV, for inspection, it achieves significantly higher defect sensitivity.

It also enables the detection of printable defects unique to EUV masks as well as the inspection of EUV masks with pellicle.

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First Half of FY2020 - Topics

Topics

Lasertec stock was selected as a constituent of JPX- Aug. Nikkei Index 400, which consists of 400 stocks that are

2019

highly attractive to investors.

	Lasertec employee was
	awarded "Best Oral
Sept.	Presentation" for his
presentation of ACTIS at
2019
SPIE Photomask Technology
	+ EUV Lithography 2019.

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1. Results of First Half of Fiscal Year ending June 2020
2. Forecast for Fiscal Year ending June 2020

12

Business Environment

		Segment	Business environment
		Logic device	Investment is expected to continue in leading-edge technology
		node, mainly EUV-related, driven by demand for 5G.
Semiconductor
	Memory	There are signs of price fall bottoming out. Capex in 3D-NAND
		and DRAM is expected to resume in CY2020.
			Further growth is expected due to the trend of having dual or
		Image sensor	triple cameras on smartphones as well as due to the growth of
			automotive applications anticipated in the medium term.
		Power device	The market is expanding as industry players accelerate efforts
		to introduce SiC devices to electric vehicles.

Others

Segment	Business environment
FPD	Investments for 10.5G panel production in China are shrinking
or delayed. OLED investment has diminished, but some
	investments are expected to resume.
LiB	The consumer product market is gradually growing mainly due
to the growth of mobile applications. The automotive market is
	expected to grow with the progress of vehicle electrification.

13

Global Semiconductor Equipment Market (SEMI Dec. 2019)

	2019	The market shrank 10.5% YoY, but still recorded second highest sales. Taiwan grew
	50% and became No. 1 market. China ranked No. 2 for second year in a row.
	2020	In 2020, the market will return to growth, driven by leading-edge logic and foundry as
	well as by new projects in China. In 2021, sales are expected to reach the highest
	2021
	level again, with China becoming No. 1 market for the first time.
In billions of US dollars
80
		$64.42	$66.79
				$60.82
60		$56.62		$57.64			Others
			$41.24					Europe
40						Japan
						North America
								Korea
20							China
						Taiwan

0

2016

2017

2018

2019 estimate 2020 forecast 2021 forecast

Source: SEMI December 2019

14

Second Half of FY2020 - Goals and Actions

(1) Core Business and New Business

Semiconductor Mask Inspection System - MATRICS

We will continue to promote X8ULTRA to major customers for EUV lithography lines.

We will sell X810EX series to other customers for conventional optical lithography lines to gain higher market share.

Semiconductor Mask Blanks Inspection and Review System - MAGICS

We will promote M9650/M9651 to major mask blank suppliers and mask shops.

SiC Wafer Inspection and Review System - SICA

We will win more multiple orders for SICA88 from major customers. We will also increase market share in China.

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Second Half of FY2020 - Goals and Actions

(2) Promotion of EUV-related Systems

Mask Blank Manufacturing	Mask	Mask Inspection in Wafer Fab
Manufacturing	(Device Production Process)

New

MAGICS M9650	ABICS E120	ACTIS A150	MATRICS	BASIC Series
Semiconductor Mask	EUV Mask Blanks	Actinic EUV Patterned	X8ULTRA	EUV Mask Backside
Blanks Inspection &	Inspection & Review	Mask Inspection	Semiconductor Mask	Inspection &
Review System	System	System	Inspection System	Cleaning System

DUV

EUV Substrate

EUV light	EUV light
(13.5nm)	(13.5nm)

	Multilayer	Pellicle
EUV Mask Blank	EUV Patterned Mask with Pellicle	EUV Patterned Mask
	or without Pellicle		without Pellicle

• Inspection possible either with or without pellicle
• Inspection with pellicle shown above

16

FY2020 Forecast - Sales and Profits

Aiming to achieve a significantly higher record of sales and profits

Consolidated		FY2019										FY2020
							Previous				New forecast		YoY
(in millions of yen)		Actual		Margin							Margin
			(Aug. 7, 2019)		(Feb. 3, 2020)	Change
Net Sales		28,769	100.0%		40,000		40,000	100.0%	39.0%
Operating income		7,941	27.6%		13,000		14,000	35.0%	76.3%
Ordinary income		7,834	27.2%		13,000		14,000	35.0%	78.7%
Net income		5,933	20.6%		10,000		10,000	25.0%	68.5%
(In millions of yen)	50,000
					40,000
		40,000
		28,769
		30,000
													Net sales
		20,000				14,000
			7,941					Operating income
		10,000
		0
			FY2019 actual			FY2020 forecast

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FY2020 Forecast - Sales by Product Category

Sales growth driven by semiconductor-related products

Consolidated				FY2019					FY2020
					Previous	New forecast				YoY
(in millions of yen)		Actual	Ratio		Ratio
		(Aug. 9, 2019)	(Feb. 4, 2020)		Change
Semiconductor-related products		19,762	68.7%	29,400	30,700		76.8%	55.3%
Other products		4,409	15.3%	3,400	3,000		7.5%	▲32.0%
Services		4,597	16.0%	7,200	6,300		15.8%	37.0%
Total		28,769	100.0%	40,000	40,000		100.0%	39.0%
(In millions of yen) 50,000					40,000
40,000							Services
							Other products
28,769
30,000
							Semiconductor-
20,000								related products
10,000

0

FY2019 actual

FY2020 forecast

18

FY2020 Forecast - Orders by Product Category

Forecast revised upward by 24 billion yen due to high demand for EUV-related systems

Orders

Backlog

Consolidated	FY2019		FY2020
(in millions of yen)	Actual	Previous	New forecast	YoY
	(Aug. 9, 2019)	(Feb. 4, 2020)	Change
Semiconductor-related products	37,338	35,700	60,500	62.0%
Other products	2,329	3,100	3,200	37.3%
Services	4,781	7,200	6,300	31.8%
Total	44,449	46,000	70,000	57.5%

(In millions of yen)

FY2019		FY2020
Actual	Previous	New forecast	YoY
(Aug. 9, 2019)	(Feb. 4, 2020)	Change
52,041	58,341	81,841	57.3%
2,597	2,297	2,797	7.7%
921	921	921	0.0%
55,560	61,560	85,560	54.0%

80,000				70,000
60,000									Services
	44,449						Other products
40,000
								Semiconductor-
20,000									related products
0
		FY2019 actual		FY2020 forecast

19

FY2020 Forecast - YoY Comparison of Operating Income

Large YoY increase of 6,058 million yen, despite proactive R&D investment for future growth

FY2019 Operating income 7,941

Increase in gross profit mainly due to sales increase

＋6,829

Increase in R&D expenses ▲339

Increase in other SG&A expenses ▲431

(Consolidated, in millions of yen)

FY2020 Operating income 14,000

YoY increase 6,058

0

FY2019 Actual

FY2020 Forecast

20

FY2020 Forecast - Other Indicators

We will make R&D investment and hire employees proactively for future growth.

Consolidated	FY2019		FY2020
	Forecast	Percentage	YoY
(in millions of yen)	Actual
	(Feb. 4, 2020)	of sales	Change
R&D expenses	3,590	3,929	9.8%	9.5%
Depreciation and amortization	499	943	2.4%	88.8%
Capital expenditure *1	2,097	1,173	2.9%	▲44.1%
*1 Including intangible assets
Total number of employees *2	375	440	-	65

*2 Not including members of the board

[Reference]

Previous forecast (Aug. 9, 2019)

4,370

906

824

414

21

FY2020 Forecast - Dividends

Interim dividend for FY2020 is 31 yen per share. The total amount of dividends for FY2020 is forecast to be all-time high.

Dividend Policy

• Steady profit distribution and flexible payment based on performance
• Consolidated dividend payout ratio of 35% is the guideline (since FY2015)

History of Dividends

	FY2018	FY2019	FY2020
	Interim	Year-end	Interim	Year-end	Interim	Year-end
					(before stock split)	(forecast)
						(after stock split)

12	22	16	31	31 ＊1	24 ＊2
Dividend per
				Total not provided because
share (yen)		Total 34		Total 47
		calculation is too complicated
					due to stock split
Dividend	35.1%		35.7%	35.6%
payout ratio

*1 Interim dividend is paid for shares before stock split. 31 yen per share is the same as previously forecast.

*2 Year-end dividend is paid for shares after stock split. The previous forecast of year-end dividend, 47 yen per share, is halved and rounded up.

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Contact Information

・Lasertec Corporation

Yutaro Misawa, Corporate Planning Office ・Phone: [phone]

・E-mail: yutaro.misawa＠ lasertec.co.jp

Rounding of figures in this presentation:

Figures less than a million yen are rounded down where the financial results and forecasts are presented. The sum of component figures may not be equal to the total figure due to round-off error.

This presentation is compiled from information available to us as of the date of release. Actual results may differ materially from the forecast of this presentation due to various factors.

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