JCU : Financial Results Briefing Material for the Second Quarter of the Fiscal Year Ending March 2024

Financial Results Briefing

Material

for the First Half of the Fiscal Year

Ending March 2024

JCU CORPORATION

TSE Prime (Stock Code: 4975)

November 7, 2023

Financial Results Briefing Material for 1H FY3/24

1

Summary of Consolidated Financial Results for 1H FY3/24

Chemicals Business

Machine Business

For electronic components

For automotive components

Accounting Period of 1H FY3/24

JCU (non-consolidated): April 1 to September 30, 2023

Overseas subsidiaries: January 1 to June 30, 2023

• China: Despite a recovery trend in some PWB manufacturers, demand for high-performance electronic devices including smartphones decreased. As a result, sales of chemicals decreased.
• Taiwan: Due to a decrease in demand for servers and semiconductor package substrates for high-performance electronic devices, sales of chemicals decreased.
• South Korea: Due to the semiconductor market remaining sluggish, demand for semiconductor package substrates decreased. As a result, sales of chemicals decreased.
• Japan: The shortages of semiconductors and parts were alleviated, resulting in a recovery trend in automobile production. However, sales of chemicals stayed flat.
• China: Despite increases in automobile production and sales volume due to an improvement in shortages of semiconductors and parts, demand for automobile parts which is subject to our business decreased. As a result, sales of chemicals decreased.
• Net sales increased and order backlog increased substantially thanks to the resumption of the projects that had been postponed due to the pandemic and the increasing demand for new investment.

Financial Results Briefing Material for 1H FY3/24

2

Summary of Financial Results for 1H FY3/24

(Millions of yen)

	1H FY3/22	1H FY3/23		1H FY3/24
					YoY
	Results	Results	Forecasts	Results
	% Change
Net sales	11,654	13,117	10,700	10,864	(17.2)%
Operating profit	4,350	4,680	2,590	3,095	(33.9)%
Ordinary profit	4,430	4,720	2,590	3,202	(32.2)%
Profit attributable to	3,078	3,326	1,750	2,177	(34.5)%
owners of parent
Net income per share	117.30 yen	128.26 yen	68.29 yen	85.04 yen	-
		Financial Results Briefing Material for 1H FY3/24		3

Foreign Exchange Rates

Foreign exchange sensitivity (as at the consolidated year): Changes of about 105 million yen in consolidated

operating profit with 1% change in major currency rates listed below

(Yen)

		FY3/23		FY3/24
	1Q	2Q	3Q	4Q	1Q	2Q
	(Initial forecast)
Chinese yuan	18.29	18.93	19.35	19.48	19.34	19.45
(CNY)
Taiwan dollar	4.15	4.28	4.37	4.41	4.36	4.42
(TWD)
Korean won	0.0964	0.0996	0.1008	0.1017	0.1039	0.1042
(KRW)

Note: The average rate for the period is used to translate Chinese yuan, Taiwan dollar and Korean won, our major foreign currencies, to Japanese yen.

Financial Results Briefing Material for 1H FY3/24

4

Changes in Consolidated Operating Profit for 1H FY3/24

(Millions of yen)

6,000

5,000

4,000

3,000

4,680

2,000

1,000

0

1H FY3/23

Operating Profit

(1,787)

Lower sales of chemicals

• Positive factors
• Negative factors

						(YoY change)
						(1,585)
63	184			(10 )	(61 )	26
(due toconversionfromlocal currencies to JPY)		Effects ofexchangeratesfor	Decrease in grossprofit from purchasedproducts
Higher profitmarginof chemicals	chemicals	Decrease in grossprofit from the MachineBusiness	SG&A
						3,095
						1H FY3/24
						Operating Profit

Financial Results Briefing Material for 1H FY3/24

5

Quarterly Consolidated Financial Results

(Millions of yen)

	8,000							2,640			3,000
							2,660
	7,000		2,410	2,364						2,500
				2,276					1,965
						2,020
		1,940								2,000
	6,000
											1,716	Operating Profit
										1,379
Net sales	5,000										1,500
4,000										1,000
	3,000										500
	2,000										0
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
				FY3/22				FY3/23			FY3/24

Total Sales			Sales of Chemicals				Operating Profit

Financial Results Briefing Material for 1H FY3/24

6

Quarterly Consolidated Financial Results (By Segment)

8,000							7,584				70.0
						6,957
		6,137	6,187	6,414	6,160			6,434			60.0
6,000	5,517										5,639
								5,225	50.0
											40.0
4,000	35.2	39.3	36.8	36.7		38.2	34.8
							30.0
				32.8
							30.5			30.4
									26.4		20.0
2,000
										10.0
ofNetSalesyen)(Millions											(%)MarginOperating
0											0.0
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q		2Q
		FY3/22			FY3/23			FY3/24
	Chemicals Business	Chemicals Business		Machine		Other			Operating Margin
	(Chemicals)		(Purchased Chemicals)		Business		Businesses
				Financial Results Briefing Material for 1H FY3/24					7

Consolidated Segment Results for 1H FY3/24

(Millions of yen)

13,500

12,122

11,500																			1H FY3/23
9,806
9,500		(Breakdown)					(Breakdown)							1H FY3/24
				Plating machines	890				Plating machines	712
					Plasma system	35				Plasma system	279
7,500					Solar power related	70				Solar power related	66

5,500						5,008
3,500						3,467
1,500		995	1,057					177	76	(8)	(8)
				0	0
Business	Chemicals		Machine Business	Businesses	Other	Business	Chemicals	Business	Machine	Businesses	Other

Net Sales		Segment Profit (Loss)

Financial Results Briefing Material for 1H FY3/24

8

Quarterly Sales of Chemicals in Japan and Overseas

(Millions of yen)

6,000

78%	79%	79%	81%	80%	80%	81%	81%	78%
							76%

5,000

4,000

3,000

2,000

1,000

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY3/22

FY3/23

FY3/24

Japan

Overseas

Overseas Sales Ratio

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Financial Results Briefing Material for 1H FY3/24

9

Chemicals, POP, Via Filling and Etching｜Quarterly Sales

(Millions of yen) 3,000

POP: Planting on Plastics, mainly for automotive components

Via Filling: Additive for copper planting for printed-wiring boards and semiconductor package substrates, mainly for smartphones and PCs

Etching: Additives for PWBs and semiconductor package substrates, mainly for PCs and communication ICs

2,500

2,000

1,500

1,000

500

0

								2,517	2,515					2,519	2,516
2,105	2,270									2,345									2,244				2,003
																								1,746					1,694
1,393		1,532						1,410		1,468		1,383						1,500
					1,236															1,130		1,197
											656				644				667				748				748				698
							574																							533				586
			478

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY3/23

FY3/22

POP

FY3/24

Via Filling

Etching

Financial Results Briefing Material for 1H FY3/24

10