Disco : Presentation for FY2022 2Q Financial Results

FY2022 Second Quarter Financial Results

October. 20, 2022

DISCLAIMER

Statements in this PowerPoint with respect to DISCO's current strategies, plans, estimates, and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of DISCO. These statements are based on management's assumptions and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. DISCO cautions you that a number of important factors could cause actual results to differ materially from those discussed in the forward-looking statements, and you should not make decision on your investment thoroughly based on these statements. Such factors include, but not limited to, (i) general economic conditions and levels of demand in DISCO's markets; (ii) developments in technology and resulting changes in semiconductor and/or electronic component manufacturing process; (iii) levels of capital investment for manufacturing semiconductors and/or electronic components; (iv) expansions of the area for products and technologies using semiconductors and/or electronic components and its expanding speed; (v) DISCO's ability to continue to offer products and services corresponding to developments of new semiconductors and/or electronic components and new technologies for manufacturing them; (vi) exchange rates, particularly between the yen, the U.S. dollar, and the euro, and other currencies.

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FY2022 2Q Earnings Results

		FY2022		FY2022	QoQ			FY2021	YoY
	Millions of Yen	2Q		1Q	Amount	(%)		2Q	Amount	(%)
	Net Sales	79,532		59,749	19,783	33.1%		67,791	11,741	17.3%
	Gross Profit	52,055		38,135	13,920	36.5%		40,415	11,639	28.8%
	Gross Profit Margin	65.5%		63.8%	1.7p	-		59.6%	5.9p	-
	SG&A	18,776		16,542	2,234	13.5%		15,902	2,874	18.1%
	Operating Income	33,278		21,592	11,686	54.1%		24,513	8,765	35.8%
	Ordinary Income	34,819		22,763	12,057	53.0%		25,144	9,675	38.5%
	Ordinary Income Margin	43.8%		38.1%	5.7p	-		37.1%	6.7p	-
	Income before income taxes and	34,798		22,737	12,060	53.0%		25,119	9,679	38.5%
	minority interests
	Net Income	24,633		16,039	8,594	53.6%		18,010	6,623	36.8%

Sales: QoQ fluctuation seen due to inspection/acceptance timing. YoY increased due to high level of shipments and inspection/acceptance.

GP margin: Profit increased due to the exchange rate and continued improvement initiatives.

SG&A: Remained at a high level, particularly for personnel expenses and R&D costs.

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FY2022 1H Earnings Results

		FY2022		FY2021	YoY
	Millions of Yen	1H		1H	Amount		(%)
	Net Sales	139,281		116,082	23,200		20.0%
	Gross Profit	90,190		69,843	20,347		29.1%
	Gross Profit Margin	64.8%		60.2%	4.6p		-
	SG&A	35,319		29,885	5,434		18.2%
	Operating Income	54,870		39,958	14,913		37.3%
	Ordinary Income	57,582		39,895	17,687		44.3%
	Ordinary Income Margin	41.3%		34.4%	6.9p		-
	Income before income taxes and	57,536		39,835	17,701		44.4%
	minority interests
	Net Income	40,673		28,592	12,081		42.3%

Net Sales：YoY increased significantly due to high-level of product shipment and inspection/acceptance progress.

GP margin：YoY increased due to exchange rate and improvement activities.

SG&A：YoY increased mainly due to personnel and R&D expenses.

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Quarterly Financial Results

Due to the change in accounting policy, the timing of revenue recognition has been changed to Inspection/Acceptance Basis.

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Net Sales		Operating Income		Ordinary Income Margin

Historical highs were recorded for all profit categories. Profit margin also reached 40% for the first time. (FY22_2Q Operating profit margin 41.8%, Ordinary income 43.8%, Net profit 31.0%)

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Product Categories

Before (FY21)		After (FY22)
	Accessory Equipment *
Precision Processing	Precision Processing
Equipment		Equipment
Precision Processing	Related tools	Precision Processing
Tools		Tools
(Consumables)		(Consumables)
Maintenance Parts		Maintenance Parts

Other

Other

Industrial Products

* Wafer Mounter, Deionized Water Recycling Unit, Other Equipment

The "Other" and "Industrial Products" categories have changed.

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