Q4 2023 Financial Results

(April 2023 to March 2024)

APRIL 30, 2024

1

Agenda

1

Overall Summary

•

Key Takeaways

•

Summary：FY23 Result

2

Results

•

Results - YoY, QoQ

•

Digital Solutions Business

3

Segment Data

・Revenue Growth Rate

•

Life Sciences Business

•

Plastics Business

4

Outlook

•

Market Outlook

• Act vs FY23 Consolidated Earnings Forecast

5

Appendix

• Overall Statement of P/L

•

Statement of Financial Position

• Statement of Cash Flows

•

Quarterly Trends by Segments

*Note

DS

:Digital Solutions business

SEMI

:Semiconductor materials

DISP

:Display materials

EC

:Edge Computing

LS

:Life Sciences business

PLA

:Plastic business

2

1. Key Takeaways

  • TOB completed. Accelerate flexible strategic investments, structural reforms, and industry restructuring.
  • JSR's vision remains unchanged. Strive for sustainable value creation as a world-leading technology company.

FY23 Results

•

Profit decreased significantly due to SEMI's downcycle (YoY sales -6%), continued strategic investments, and

restructuring of LS.

YoY Decrease in Revenue /Profit

•

Special factors were accounted for LS in Q1 and Q4.

•

DS: SEMI was definitely on a recovery trend after bottoming out in Q4, FY22 (YoY of Q4 sales improved by more than

double digits). Our market share of EUV is expanding in advanced logic and memory markets. MOR business is also

progressing. We expect significant contributions in the full-scale semiconductor growth cycle in FY25 and beyond.

Outlook

•

LS: As we expect a strong mid- to long-term growth of LS, we continue to see double-digit growth with CDMO despite

the current weak biotech market environment. Results of structural reforms, including business restructuring and

operational strengthening, will contribute after FY24.

•

Although we view FY24 as a conservative business environment while riding the recovery trend, we will promote

strategic actions in flexible manner.

•

On April 17, 2024, we announced the completion of the TOB by aiming for the strategic partnership with JICC. We will

Strategic Partnership

go through a squeeze-out process and make a new start as a private company.

•

We will accelerate strategic actions of each business through the strategic partnership with JICC. At the same time, we

with JICC

will aim to reorganize the semiconductor materials industry, strengthen the international competitiveness of our

Announced on

domestic industry, and acquire a foundation for sustainable contribution to the global semiconductor industry.

•

We plan to relist in the future. Our policy of fulfilling corporate responsibilities, such as creating value for all

June 26,2023

stakeholders and contributing to a sustainable society, will remain unchanged and will make its governance even more

robust.

We will disclose the status of business performance by any channels, such as corporate website and briefings. Thank you for your continued support.

3

1. Summary：FY23 Result

Core OP YoY (Bn JPY)

FY23 Act: Revenue 404.6bn, Core OP 8.3bn

Special Factors (-15)・Accounting Factors ・Major Repairs

・Allowance for inventories and write-offs

・Allowance for bad debts etc.

FY22

DS

LS

PLA OTH FY23

YoY

Digital Solutions Business

•

Decrease in sales due to lower demand caused by the semiconductor cycle.

SEMI

•

Conducted initiatives such as EUV/MOR investment and business

augmentation in Asia.

  • For DISP, increased in revenue and OP due to a recovery in panel
    DISP/ manufacturer utilization.

EC

• EC performance was impacted by a decline in smartphone demand, resulting

in revenue decrease from the previous year.

Life Sciences Business

  • Revenue increased due to CDMO's sales expansion while OP declined due to special factors.

Plastics Business

  • Automobile demand is trending towards recovery while demand for other applications is slowing down, which led to a decline in sales.

4

2. Result - YoY, QoQ

FY22

FY23

YoY

Revenue

408.9

404.6

-1%

Consolidated

Core Operating Profit

34.0

8.3

-75%

Operating Profit

29.4

3.6

-88%

Profit, attributable to owners of parent

15.8

-5.6

-

Revenue

170.4

168.1

-1%

Semiconductor materials

126.4

118.9

-6%

Digital Solutions

Display materials

36.6

42.5

+16%

Edge computing

7.5

6.7

-10%

Core Operating Profit

27.8

20.3

-27%

Life Sciences

Revenue

126.5

129.7

+3%

Core Operating Profit

8.4

-7.7

-

Plastics

Revenue

95.8

92.8

-3%

Core Operating Profit

1.9

1.5

-21%

Others/Adjustment

Revenue

16.2

14.0

-13%

Core Operating Profit

-4.1

-5.6

-

Exchange rate (USD/JPY)

135

145

+7%

(Bn JPY)

23Q3

23Q4

QoQ

121.1

102.8

-15%

15.9

-6.5

-

15.6

-9.3

-

7.5

-10.9

-

44.1

44.5

+1%

31.4

32.4

+3%

10.8

10.7

-1%

1.9

1.4

-28%

7.7

4.0

-48%

48.9

32.2

-34%

8.3

-7.9

-

24.4

22.6

-7%

0.8

0.3

-66%

3.7

3.5

-5%

-0.9

-2.9

-

148

149

+0%

5

3. Segment Data: Digital Solutions Business

FY22

FY23

YoY

YoY

(CER)*

Revenue

170.4

168.1

-1%

-4%

Semiconductor materials

126.4

118.9

-6%

-10%

Display materials

36.6

42.5

+16%

+15%

Edge computing

7.5

6.7

-10%

-10%

Core OP

27.8

20.3

-27%

-36%

Core OP margin

16.3%

12.1%

Exchange rate（USD/JPY）

135

145

+7%

0%

(Bn JPY)

23Q3

23Q4

QoQ

44.1

44.5

+1%

31.4

32.4

+3%

10.8

10.7

-1%

1.9

1.4

-28%

7.7

4.0

-48%

17.5%

9.0%

148

149

+0%

Core OP analysis (Bn JPY)

QoQ

YoY

SEMI decreased (-)

DISP increased (+)

FX (+)

Raw material price (-)

Upfront Investment for EUV/MOR, etc. 4 (-) Consolidation of new subsidiary in Asia and site expansion 2 (-)

Control on existing investments 2(+), FX, etc.(-)

Accounting factor, etc. (+)

SEMI increased (+)

FC incurred difference (-)

Write-off(-)

Accounting factor, etc. (-)

*MOR: Metal Oxide Resist

*Reference data: CER (Constant Exchange Rate. Excluding FX impacts)

6

3. Digital Solutions Business - Revenue Growth Rate

Semiconductor materials

Display materials

Edge computing

YoY ytd

QoQ

EUV

Slightly under +5%

Approx. +15%

ArF

Approx. -5%

Approx. +5%

Multilayer

Slightly under -10%

Slightly decreased

Other Lithography

Approx. -5%

Slightly increased

CMP

Approx. +5%

Slightly decreased

Cleaner

Approx. -50%

Approx. +20%

Packaging

Approx. +15%

Flat

Alignment Films

Slightly over +5%

Slightly under +10%

Passivation Coat

Approx. +45%

Slightly under +10%

Color Pigmented Resists

Flat

Approx. +55%

OLED Materials

Approx. +55%

Approx. -10%

ARTON

Approx. -10%

Slightly under -30%

7

3. Segment Data : Life Sciences Business

FY22

FY23

YoY

YoY

(CER)*

Revenue

126.5

129.7

+3%

-2%

CDMO

64.6

24.3

CRO

BPM

1.9

39.0

IVD

Others/Adjustments

0.1

Core OP

8.4

-7.7

-

-

Core OP margin

6.7%

-

Exchange rate（USD/JPY）

135

145

+7%

0%

(Bn JPY)

23Q3

23Q4

QoQ

48.9

32.2

-34%

17.7

18.8

+6%

6.9

5.9

-15%

0.5

0.5

-11%

23.9

7.2

-70%

-0.1

-0.1

-

8.3

-7.9

-

16.9%

-

148

149

+0%

Core OP analysis

YoY

Revenue

Core Operating Profit

Total

+3%

-

CDMO

Slightly over +25%

Decrease in OP

CRO

Slightly under +5%

Decrease in OP

BPM

Slightly over -60%

Decrease in OP

IVD

Approx. -10%

Decrease in OP

CDMO: Contract Development and Manufacturing Organization of biologics

CRO: Contract Research Organization of pharmaceutical products

BPM: Bioprocess Materials

IVD: In Vitro Diagnostics and Life Science Research

QoQ

Revenue

Core Operating Profit

Total

-34%

-

CDMO

Approx. +5%

Decrease in OP

CRO

Approx. -15%

Decrease in OP

BPM

Approx. -10%

Decrease in OP

IVD

Approx. -70%

Decrease in OP

*Reference data: CER (Constant Exchange Rate. Excluding FX impacts)

8

3. Segment Data : Plastics Business

FY22

FY23

YoY

YoY

(CER)*

Revenue

95.8

92.8

-3%

-5%

Core OP

1.9

1.5

-21%

-21%

Core OP margin

1.9%

1.6%

Exchange rate（USD/JPY）

135

145

+7%

0%

(Bn JPY)

23Q3

23Q4

QoQ

24.4

22.6

-7%

0.8

0.3

-66%

3.4%

1.3%

148

149

+0%

Core OP analysis (Bn JPY)

YoY

QoQ

Sales volume decreased due to sluggish demand(-)

Revised sales price (+)

Trading spread increased (+)

Inventory effect (-)

Sales volume decreased due to sluggish demand(-)

Revised sales price (+)

Trading spread decreased (-)

FC incurred difference (-)

Inventory effect (+)

*Reference data: CER (Constant Exchange Rate. Excluding FX impacts)

9

4. Market Outlook

FY22 Act

FY23 Outlook

FY23 Act

FY24

Outlook

Apr. 27

Nov. 6

Apr.30

Apr.30

FX（USD/JPY）

135

135

143

145

140

Silicon Wafer Input

+/-0%

-5%

-10~-15%

-10~-15%

+5~+10%

(YoY)

Panel Makers Utilization Rate

71％

78%

77%

78%

79%

Panel Production (YoY)

-19%

+12%

+10%

+3%

+6%

Smartphone Shipments (YoY)

-9％

+3%

-5%

-4%

+3%

Automobile Production (YoY)

+8%

+5%​

+5%

+8%

+2%

Global Makers

+4%

-

+6%

+5%

-1%

Japanese Makers (Global)

Bio Pharmaceutical Market

+8％

+7%

+9%

+9%

+11%

Biotech Industry Funding

-45%

-

-

-13%

-

(YoY)

*JSR estimates based on resources of outside research institutions.

10

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Disclaimer

JSR Corporation published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:09:18 UTC.