Lasertec : Presentation Material - Fiscal Year Ended June 2020 Financial Results (Scripted)（PDF：765KB）

Fiscal Year ended June 2020

Financial Results

August 5, 2020

Osamu Okabayashi

President, Lasertec Corporation

(Tokyo Stock Exchange 6920)

0

Contents

1. Results of Fiscal Year ended June 2020
2. Mid-TermBusiness Plan
3. Forecast of Fiscal Year ending June 2021

1

• This presentation discusses 1. Results of Fiscal Year ended June 2020, 2. Mid-Term Business Plan, 3. Forecast of Fiscal Year ending June 2021.

1

1. Results of Fiscal Year ended June 2020
2. Mid-TermBusiness Plan
3. Forecast of Fiscal Year ending June 2021

2

2

Fiscal Year ended June 2020 (FY2020)

We achieved record sales, profits, and

orders

		(Consolidated, in millions of yen)
	FY2020
	YoY change
	Result	Last forecast
			(Feb. 4, 2020)
Net Sales	42,572	+48.0%	40,000
Operating	15,062	+89.7%	14,000
Income
Net Income	10,823	+82.4%	10,000
Orders	80,175	+80.4%	85,000 *

* As of April 28, 2020

3

• In the fiscal year ended June 2020 (FY2020), we achieved record sales, profits, and orders.
• Sales increased nearly 50% YoY. Operating income and net income increased more than 80% YoY. We achieved significant growth during FY2020.

3

Sales and Profits in Last 5 Years

We achieved record sales and profits for the fourth consecutive year while maintaining high profit margins.

(Consolidated, in millions of yen)				42,572
40,000
30,000			28,769
		21,252
20,000	17,278				50%
15,291
			35.4%	40%
29.0%	28.4%	26.8%	27.6%	15,062
			30%
10,000
					20%
			7,941	10,823
		5,685		10%
4,4283,227	4,901	5,933
4,366
3,534
0					0%
FY2016	FY2017	FY2018	FY2019	FY2020
Sales	Operating income	Net income	Operating income margin

4

• 【Bar graph】 Trend of sales and profits: We achieved record sales and profits for the fourth consecutive year.
• 【Line graph】 Operating income margin: We maintained operating income margin at 25% or higher for the last 5 years.

4

FY2020 Earnings Results

Sales exceeded 40 billion yen. We achieved nearly 90% increase YoY in operating income.

Consolidated		FY2019					FY2020
(in millions of yen)		Actual	Margin		Last forecast		Actual		Margin	YoY
				(Feb. 4, 2020)								Change
Net sales		28,769	100.0%		40,000			42,572		100.0%	48.0%
Cost of sales		12,853	44.7%		－			19,581		46.0%	52.3%
Gross profit		15,916	55.3%		－			22,991		54.0%	44.5%
SG&A expenses		7,975	27.7%		－			7,929		18.6%	▲0.6%
Operating income		7,941	27.6%		14,000			15,062		35.4%	89.7%
Ordinary income		7,834	27.2%		14,000			15,115		35.5%	92.9%
Net income		5,933	20.6%		10,000			10,823		25.4%	82.4%
(In millions of yen)	40,000			42,572
		30,000	28,769
									Net sales
		20,000			15,062
						Operating
		10,000	7,941					income
		0
		FY2019	FY2020

5

• Sales exceeded 40 billion yen. We achieved nearly 90% increase YoY in operating income.

5

FY2020 Operating Income - Comparison with FY2019

We achieved 7,121 million-yen increase YoY in operating income while proactively making R&D investment.

(Consolidated, in millions of yen)

Increase in gross	Decrease in R&D	FY2020
profit mainly due	Operating
expenses
to sales increase	income
+ 292
＋7,075		15,062

	Increase in
	other SG&A
FY2019	expenses	YoY increase
▲246
7,121
Operating
income
7,941
0
FY2019		FY2020
	6

• The main factor of YoY operating income increase is "increase in gross profit mainly due to sales increase." We achieved a YoY increase of 7.1 billion yen.

6

FY2020 Financial Position

Work in process and advances received increased due to increased orders

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

	80,000
	60,000
	40,000		70,002
		39,841
	20,000
	0	10,214	11,791
	June 30, 2019	June 30, 2020
Liabilities and	(In millions of yen)	Net assets
Net Assets		Non-current liabilities
80,000	Current liabilities
	60,000		42,058
	40,000	18,433	559
	514
	20,000	31,107	39,175
	0
	FY2019	FY2020
			7

• Major changes】

		(In millions of yen)
(Current assets)
Work in process	14,603
Cash and deposits	11,537
Other	1,973

		(In millions of yen)
(Current liabilities)
Advances received	13,420
Other	4,091
Income taxes payable	3,147

• Work in process increased by 14.6 billion yen and advances received increased by 13.4 billion yen due to increased orders.

7

FY2020 Consolidated Cash Flows

Operating Cash Flow was a surplus of 16,486 million yen

		Operating CF		Investing CF		Financing CF		Cash and cash equivalents, end of year
(In millions of yen)

25,000		24,660
20,000
	16,486
15,000
10,000
5,000
0
(5,000)	▲ 2,038	▲ 2,800
	FY2020

【 Major factors】

Operating CF： Income before income taxes (15,115), Increase in advances received (13,438), Increase in other, net (5,033) Increase in inventories (▲15,294), Income taxes paid (▲2,556), Increase in accounts receivable-trade (▲1,333)

Investing CF： Purchase of property, plant and equipment (▲1,178), Purchase of intangible assets (▲620)

Financing CF： Cash dividends paid (▲2,795)

8

• Operating cash flow was a surplus of 16.4 billion yen. Cash and cash equivalents at the end of FY2020 was 24.6 billion yen.

8

FY2020 Sales by Product Category

Sales of semiconductor-related products achieved a significant increase and surpassed 34 billion yen, driven by the strong sales of EUV-related systems.

Consolidated		FY2019				FY2020
(in millions of yen)		Actual	Ratio	Last forecast		Actual		Ratio	YoY
	(Feb. 4, 2020)			Change
Semiconductor-related products		19,762	68.7%	30,700	34,372		80.7%	73.9%
Other products		4,409	15.3%	3,000	2,150		5.1%	▲51.2%
Services		4,597	16.0%	6,300	6,049		14.2%	31.6%
Total		28,769	100.0%	40,000	42,572		100.0%	48.0%
(In millions of yen)			42,572
40,000
30,000	28,769					Services
					Other products
20,000						Semiconductor-
							related products
10,000
0
FY2019	FY2020
			9

• Sales growth was mainly driven by the strong demand for EUV-related systems. The sales of semiconductor-related products totaled 34.3 billion yen.

9

FY2020 Orders and Backlog by Product Category

Orders and backlog increased in all categories and surpassed the past record. The main driver is EUV-related systems.

	Orders											Backlog
	Consolidated		FY2019		FY2020			FY2019	FY2020
	(in millions of yen)		Actual	Last forecast		Actual		YoY		Actual	Actual	YoY
					(April 28, 2020)			change		change
	Semicondutor-related products		37,338	76,000	70,157		87.9%	52,041	87,826	68.8%
	Other products		2,329	3,500	3,490		49.8%	2,597	3,937	51.6%
	Services		4,781	5,500	6,527		36.5%	921	1,398	51.9%
	Total		44,449	85,000	80,175		80.4%		55,560	93,163	67.7%
(In millions of yen) 100,000					80,175
80,000									Services
60,000			44,449					Other products
40,000									Semiconductor-
								related products
20,000
0
		FY2019	FY2020
						10

• The amount of orders increased to more than 80 billion yen, driven by strong demand for EUV-related systems, although the figure was short of the last forecast due to delay in the timing of orders for some products. Backlog surpassed 90 billion yen.

10

FY2020 Other Indicators

We made R&D investment and hired more employees proactively.

Consolidated		FY2019		FY2020
(in millions of yen)		Actual	Actual	Percentage	YoY
				of sales	Change
R&D expenses		3,590	3,297	7.7%	▲8.2%
Depreciation and amortization		499	881	2.1%	76.4%
Capital expenditure *1		2,097	1,103	2.6%	▲47.4%
*1 Including intangible assets
Total number of employees *2		375	448	－	73
*2 Not including the members of the board

11

• We kept hiring and added 73 new employees in FY2020.

11

FY2020 New Products

ACTIS A150 Actinic EUV Patterned Mask Inspection System was released

This is the world's first EUV patterned mask inspection system Sept using EUV light, whose wavelength is much shorter than 2019 DUV light, for inspection light. It achieves a

higher level of defect sensitivity and enables the detection of printable phase defects. It is also capable of performing through-pellicle EUV mask inspection.

OPTELICS® HYBRID+ Hybrid Laser Microscope was released

This microscope achieves both multi-functions and high performance with two sets of optics - laser confocal and white light confocal - integrated on a single

Jan platform. It adopted hardware improvements such as LED light source for longer

2020

lifetime as well as new software programs for such functions as measurement assist and AI inspection.

12

• In FY2020, we released 2 new products.
• ACTIS A150 Actinic EUV Patterned Mask Inspection System is the world's first EUV patterned mask inspection system using EUV light (whose wavelength is 13.5nm, the same as that of EUV lithography) for inspection light.
• OPTELICS® HYBRID+ Hybrid Laser Microscope achieves both multi-functions and high performance with two sets of optics - laser confocal and white light confocal - integrated on a single platform.

12

FY2020 Topics (Awards and Recognition)

Sept	ACTIS presentation won BEST ORAL PRESENTATION
at SPIE Photomask Technology + EUV Lithography
2019
2019
Jan	ACTIS A150 Actinic EUV Patterned Mask Inspection System won 10
Best New Products Award "Japan Brand Prize" from Nikkan Kogyo
2020
Shimbun (Business & Technology Daily News)
Mar	Lasertec won Supplier Achievement Award (SAA)
from Intel, being recognized as a supplier who made
2020
an outstanding achievement
June	ACTIS A150 Actinic EUV Patterned Mask Inspection System won the
grand prize of Semiconductor of the Year 2020 from Electronic Device
2020
Industry News
June	Lasertec was selected among 100 Global Niche Top Enterprises by the
2020	Ministry of Economy, Trade and Industry
	13

• We received 5 awards in FY2020.
• Second from the top on the list: We received 10 Best New Products Award "Japan Brand Prize" from Nikkan Kogyo Shimbun for the second time. In 2018, we won the award with ABICS E120.
• Third: We received Supplier Achievement Award (SAA) from Intel for the first time.
• Fourth: We won the grand prize of Semiconductor of the Year for the third consecutive year. We won the same prize with ABICS E120 EUV Mask Blanks Inspection and Review System in 2018 and with MAGICS M9650 Mask Blanks Inspection and Review System in 2019.

13

FY2020 Topics (Investor Relations)

Aug	Lasertec stock was selected as a constituent of JPX-NikkeiIndex 400,
which consists of 400 stocks highly attractive to investors and
2019
meeting its global investment standard
Apr	Lasertec was ranked third overall in the electronics/precision
instruments sector in 2020 All Japan Executive Team Rankings
2020
released by Institutional Investor
	Lasertec stock was selected as a constituent of MSCI* Global
May	Standard Index, a globally-renowned stock index used as a
benchmark by pension and investment fund managers engaged in
2020
global investments.
	* MSCI: Morgan Stanley Capital International
	14

• Let me touch on three major IR-related topics in FY2020.
• Lasertec stock was selected as a constituent of JPX-Nikkei Index 400 and later as a constituent of MSCI Global Standard Index, a globally-renowned stock index.
• Lasertec was ranked third overall in the electronics/precision instruments sector in 2020 All Japan Executive Team Rankings released by Institutional Investor.

14

1. Results of Fiscal Year ended June 2020
2. Mid-TermBusiness Plan
3. Forecast of Fiscal Year ending June 2021

15

15

Mid-Term Business Plan

Basic Policy

"Focus our resources on business areas where we excel and expect high growth"

Phase 0	July 2009	Get Ready for New Chapter
through	・ Focus on select business areas where we excel and
	expect growth
	June 2012
	・ Reinforce financial strength
Phase 1	July 2012	Take on New Challenges
	through	・ Reinforce core business
	June 2015
	・ Create a pillar of new business
Phase 2	July 2015	Establish Solid Foundation of New Business
	through	Core Business・ Enhance competitive edge
	June 2018	・ Increase market share
		New Business・ Establish a foundation for EUV/wafer
		inspection business growth
		・ Find new business areas by
		microscope marketing
		16

• Our Mid-Term Business Plan is described in this slide.
• Our policy is "Focus our resources on business areas where we excel and expect high growth." This remains unchanged since the outset of the Plan. We divide the
  Plan into three-year periods called phases and set goals for each phase.
• The first phase was named Phase 0, which indicates our intention to start afresh with a clean slate. In Phase 0, we aimed to "get ready for new chapter" by focusing on select business areas where we excel and expect high growth. We shifted the focus of resource allocation to semiconductor-related products because that is where we can make the best use of our strengths. We identified what must be done in each phase and took on key issues. In Phase 1, we tried to "take on new challenges," and in Phase 2 we endeavored to "establish solid foundation of new business."

16

Mid-Term Business Plan - Phase 3

We are in Phase 3, the fourth stage of Mid-Term Business Plan. We will achieve large sales increase in this stage.

Phase 3	July 2018
	through
	June 2021
	1st year: FY2019
	2nd year： FY2020
This year	3rd year: FY2021

On Growth Trajectory with New Business

Core Business・ Further enhance competitive edge

	・ Get overwhelming market share
New Business・ Achieve large sales growth
	・ Find new needs and new
	applications
Service	・ Global service enhancement

17

• FY2021 is the final year of Phase 3.
• Phase 3 is a stage when we achieve large sales growth by harvesting the fruit of past efforts. Our slogan is "On Growth Trajectory with New Business."
• In Core Business, we will further enhance competitive edge by augmenting our unique technical expertise. In New Business, it is time to harvest and achieve large sales growth. We also continue our effort to find new needs and new applications. In Service, the number of tools being used at customer sites has increased significantly for the last few years. We will implement global service enhancement for better operational and maintenance support and meet customer expectations.

17

Strategy and Target Market

Focus on market segments where our strengths can be used effectively, where our solutions are differentiated from others, and where the customers appreciate the value we offer.

Target a market where:

• The customer has an advanced technical requirement in the area of

inspection and measurement, and Lasertec has a chance to offer differentiated solutions.

• The customer appreciates the value of inspection and measurement.
  ③ There is potential for future investment.

＊Offer optimum solutions in a market segment that large companies find not large enough to justify entry (if the market is large, target a segment where we have a competitive advantage).

＊Capture a large market share in the segment.

＊Enter neighboring segments to expand the area of business.

＊Have multiple market segments like this to pursue multi niche champion strategy.

18

• Next, let me describe our strategy and target market.
• We focus on market segments where our strengths can be used effectively, where our solutions are differentiated from others, and where the customers appreciate the value we offer.
• More specifically, we target a market where the following conditions are met: ① The customer has an advanced technical requirement in the area of inspection and measurement, and Lasertec has a chance to offer differentiated solutions. ②The customer appreciates the value of inspection and measurement. ③There is potential for future investment as well as for current investment.

18

Growth in Phase 3

We keep aiming to achieve high-quality(high-value, high- profit-margin) growth.

Sales growth concept

			New area
			New business
			(EUV-related)
			New business
		New business	(wafer inspection)
	New business	(wafer inspection)
	(wafer inspection）
	Existing	Existing	Existing
	business
	business
	business
Phase 0	Phase 1	Phase 2	Phase 3
July 2009 to June 2012	July 2012 to June 2015	July 2015 to June 2018	July 2018 to June 2021

(Note) Sales growth concept only. Not drawn to scale.

19

• This is a concept illustration of business growth in each phase.
• In Phase 3, we are pursuing growth in existing business, new business of wafer inspection, EUV-related new business, and new area. We keep aiming to achieve high-quality growth, by which we mean to secure high profit margins by offering high value-added products.

19

Mid-Term Business Plan: Sales and Operating Income Results

(Sales)											(Operating income)
											42,572
40,000		Sales (left-hand scale)							20,000
		Operating profit (right-hand scale)
										28,769
30,000											15,000
											15,062
									21,252
20,000								17,278			10,000
					13,607	15,187	15,291
		12,722	12,337
		11,397
									7,941
9,266	8,931
10,000									5,685		5,000
								4,901
						4,722	4,428
		2,441	3,088		3,097
			2,149
0										0
746
▲ 657											(2,500)
FY2009	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020
	Phase 0	Phase 1	Phase 2	Phase 3

(Consolidated, in millions of yen)

20

• The graph shows the results of sales and operating income from the outset of Mid- Term Business Plan until FY2020.
• Sales results are represented by the blue line and operating income by the orange line. High-quality growth has been made consistently throughout the period. Especially in Phase 3, we have achieved growth at a faster-than-ever pace.

20

1. Results of Fiscal Year ended June 2020
2. Mid-TermBusiness Plan
3. Forecast of Fiscal Year ending June 2021

21

21

Market Trend

Mobile・5G/		Data Center		AI	Automotive
IoT
Pursuit of		Massive data		Innovation centered		Widespread use of
			electric vehicles and
convenience		storage		on Deep Learning
			self-driving
5G penetration rate:
	33 ZB (2018)				EV&PHV market
48% (2025)			Jobs replace by AI:		penetration rate:
5G investment ratio:		↓		49%		20 to 30% (2030) ＊4
80% (2020 to 2025)		175 ZB (2025)		(circa 2025 to 2035)		Self-driving installation
＊１		＊2		＊3		rate: 17% or higher(2030) ＊5
Logic		CPU, GPU				CPU, GPU, FPGA
3D-NAND, DRAM			CPU, GPU, FPGA		Image Sensor
	3D-NAND, DRAM
Image Sensor					SiC

Source: ＊１ GSMA 2020 (5G penetration rate of North America, and total global 5G capital investments by mobile carriers),＊2 IDC 2018、＊3 Nomura Research Institute 2015,＊4 Future Investment Strategy 2018 (Data of Japan), ＊5 Frost & Sullivan 2019 (Installation of self-driving system level 3 or higher on new vehicles)

22

• The demand for high-performance semiconductors is expected to increase rapidly in the area of 5G and other mobile applications and IoT, data center servers, artificial intelligence, electric vehicles and self-driving.

22

Business Environment

		Segment	Business environment
		Logic	Investment in leading-edge technology nodes, mainly EUV-related, is
		expected to continue to meet demand for 5G and HPC.
Semiconductor
	Memory	Investment in leading-edge production facilities for 3D-NAND and DRAM
	is expected to resume.
		The market is expected to grow in the medium to long term, driven by
	Image sensor	the adoption of multiple lenses on smartphones and the growth of
		automotive applications.
		Power device	The market is expected to grow as manufacturers accelerate efforts to
		introduce SiC devices to electric vehicles.
		Segment	Business environment
Others		FPD	Large LCD panel investment is forecast to decrease. OLED investment
	is resuming to meet demand for mobile applications.
	LiB	The consumer product market is growing slowly, driven mainly by
		mobile-related applications. The market growth driven by the
			electrification of vehicles is anticipated.
			23

• This is a summary of business environment in key segments. In logic, investment in leading-edge technology nodes, mainly EUV-related, is expected to continue to meet demand for 5G and high-performance computing (HPC).
• Investment in leading-edge production facilities for 3D-NAND and DRAM is expected to resume. In the medium to long term, demand for memories will grow as the scope of their applications widens.

23

Global Semiconductor Equipment Market (SEMI July 2020)

The market grows 6% YoY to US$63.2 billion in 2020 and 10% YoY to

US$70 billion, the highest level ever, in 2021, driven by resumed memory investment and investment in leading-edge processes.

In billions of US dollars

80
				$70.0
				$64.4	$59.6	$63.2
60			$56.6					Others
		$41.2							Europe
							Japan
40
								N. America
									Korea
20									Taiwan
								China
0
2016	2017	2018	2019	2020 forecast 2021 forecast

Source: SEMI July 2020

24

• According to SEMI forecast announced last month (July 2020), the global semiconductor equipment market will reach US$63.2 billion in CY2020 and US$70 billion, the higher level ever, in CY2021.

24

FY2021 Goals and Actions (1)

EUV-related systems

Keep improving product performance and enhance competitive advantage to solidify our market position

Wafer inspection systems

Achieve large sales increase mainly by promoting SiC wafer inspection systems

Global service

Establish a solid global maintenance infrastructure that enables local engineers at overseas subsidiaries to perform system installation and maintenance without relying on HQ engineers

25

• The area of focus in FY2021 continues to be "EUV-related systems," "wafer inspection systems," and "global service."

25

FY2021 Goals and Actions (2)

Mask blank manufacturing	Mask manufacturing	Mask defect inspection at wafer fabs
(Device manufacturing)
	New

MAGICS M9650

Mask Blanks

Inspection and

Review System

DUV

EUV substrate

ABICS E120		ACTIS A150	MATRICS	BASIC Series
EUV Mask Blanks		Actinic EUV	X8ULTRA	EUV Mask Backside
Inspection and		Patterned Mask	Mask Inspection	Inspection and
Review System		Inspection System	System	Cleaning System
EUV light		EUV light
(13.5nm)		(13.5nm)
Multilayer	Pellicle
EUV mask blank	• Patterned EUV mask with pellicle	Patterned EUV
• Patterned EUV mask without pellicle
	mask without
	Inspection is possible with or	pellicle
	without pellicle

＊Picture above shows EUV mask with pellicle

26

• Let us explain our activities in the area of EUV-related systems with an illustration of semiconductor manufacturing process, which flows from left to right, starting with mask blank manufacturing and followed by mask manufacturing, and finally by device manufacturing at wafer fabs. We offer inspection systems to cover the entire process from EUV substrate inspection to mask inspection at wafer fabs.
• MAGICS, at the far left, is used to inspect EUV substrates, which are plates made of low thermal-expansion glass.
• ABICS is designed to inspect the multilayer formed on substrates with 13.5nm EUV, the wavelength of light used in lithography.
• ACTIS, shown in the middle, is designed to inspect patterned EUV masks. This inspection systems also uses 13.5nm EUV for inspection light. It is also capable of performing through-pellicle EUV mask inspection.
• MATRICS X8ULTRA can be used to inspect both conventional optical masks and EUV masks.
• BASIC inspects the backside of EUV mask and removes particles detected on the backside.

26

Forecast of Fiscal Year ending June 2021 (FY2021)

Aiming to achieve new record sales and profits

Consolidated		FY2020		FY2021
			Forecast					YoY
(in millions of yen)		Actual	Margin			Margin
	(Aug. 5, 2020)			Change
Net sales		42,572	100.0%	57,000	100.0%		33.9%
Operating income		15,062	35.4%	17,000	29.8%		12.9%
Ordinary income		15,115	35.5%	17,000	29.8%		12.5%
Net income		10,823	25.4%	12,500	21.9%		15.5%
(In millions of yen)	60,000	57,000
	42,572
	40,000					Net sales
	20,000	15,062	17,000			Operating
			income

0

FY2020 FY2021

Actual Forecast

27

• We are aiming to achieve new record sales and profits in this fiscal year (FY2021).

27

FY2021 Forecast - Operating Income Comparison with FY2020

Aiming to achieve 1,937 million-yen increase YoY while proactively making R&D investment

Increase in gross profit mainly

due to sales increase(Consolidated, in millions of yen) ＋6,067

			FY2021
			Operating income
FY2020	Increase in		17,000
Operating income		YoY increase
R&D	Increase in
15,062	expenses	other SG&A	1,937
	▲3,414	expenses
		▲715
FY2020			FY2021
Actual			Forecast
	28

• We forecast a 1,937 million yen increase YoY in operating income. "Increase in gross profit mainly due to sales increase" is the main contributing factor, while "increase in R&D expenses" pushes the profit lower.

28

FY2021 Forecast - Sales by Product Category
Sales growth to be driven by EUV-related systems
Consolidated		FY2020		FY2021
				Forecast		YoY
(in millions of yen)		Actual	Ratio		Ratio
		(Aug. 5, 2020)	Change
Semiconductor-related products	34,372	80.7%	46,000	80.7%	33.8%
Other products		2,150	5.1%	3,500	6.1%	62.7%
Services		6,049	14.2%	7,500	13.2%	24.0%
Total		42,572	100.0%	57,000	100.0%	33.9%
(In millions of yen)	60,000				57,000
					Services
		42,572
	40,000				Other products
					Semiconductor-
					related products
	20,000
	0
		FY2020 Actual	FY2021 Forecast
			29

• Sales will continue to grow, driven by the demand for EUV-related systems.

29

FY2021 Forecast - Orders and Backlog by Product Category

Aiming to achieve orders and backlog at a high level mainly from EUV-related systems

	Orders							Backlog
	Consolidated	FY2020	FY2021	FY2020	FY2021
	(in millions of yen)	Actual	Forecast			YoY	Actual	Forecast	YoY
				(Aug 5, 2020)			Change			(Aug 5, 2020)	Change
	Semiconductor-related products		70,157	70,000			▲0.2%	87,826	111,826	27.3%
	Other products		3,490	2,500			▲28.4%	3,937	2,937	▲25.4%
	Services		6,527	7,500	14.9%			1,398	1,398	0.0%
	Total		80,175	80,000			▲0.2%	93,163	116,163	24.7%
(In millions of yen) 100,000		80,175		80,000			Services
80,000
60,000								Other products
40,000								Semiconductor-
							related products
20,000
0
	FY2020 Actual	FY2021 Forecast

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• We are aiming to achieve 80 billion yen in orders, mainly driven by the demand for EUV-related systems. The order backlog at the end of FY2021 is expected to surpass 110 billion yen.

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FY2021 Forecast - Other Indicators

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

Consolidated		FY2020		FY2021
		Forecast	Percentage	YoY
(in millions of yen)		Actual
		of sales	Change
		(Aug 5, 2020)
R&D expenses		3,297	6,712	11.8%	103.6%
Depreciation and amortization		881	1,030	1.8%	16.9%
Capital expenditure *1		1,103	1,093	1.9%	▲0.9%
*1 Including intangible assets
Total number of employees *2		448	549	-	101
*2 Not including the members of the board

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• We will continue to make R&D investment and hire more employees proactively for future growth.
• We expect R&D expenses to reach 6.7 billion yen, with some R&D programs carried over from the last fiscal year.
• We are planning to hire 101 more employees, mainly engineers.

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Dividend Policy

We plan to pay record annual dividends for FY2021

Dividend Policy

・Steady income distribution to shareholders and flexible payment based on performance ・35% dividend payout ratio on a consolidated basis is the guideline (since FY2015)

History of Dividends

		FY2019	FY2020	FY2021 (Forecast)
	Interim	Year-end	Interim	Year-end	Interim		Year-end
					(planned)
Dividend per	16		31	31	27	20		29
			Total is not shown because it
share (yen)		Total 47	Total 49
	cannot be obtained in simple
				calculation due to stock split
Total amount
of dividends		2,119		3,832		4,418
(million yen)
Dividend	35.7%	35.4%	35.4%
payout ratio

Note) Effective January 1, 2020, the company split its common stock 2 for 1. The figures of year-end dividend for FT2020 and interim and year-end dividends for FY2021 (forecast) are calculated based on the number of issued shares after the stock split. The figure of year-end dividend per share for FY2020 would be 54 yen if it were calculated using the number of issued shares before the stock split.

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• Our dividend policy is "steady income distribution to shareholders and flexible payment based on performance." 35% dividend payout ratio is the guideline.

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Contact Information

・Lasertec Corporation

Yutaro Misawa, General Manager, 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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