Lasertec : President's message updated

Results of the first half of the current fiscal year

I would like to begin by thanking our shareholders for giving us support and encouragement. I would also like to take this opportunity to express my heartfelt sympathies to those who are affected by new coronavirus infections.

During the first half of this fiscal year, stimulus measures were introduced together with anti-virus measures to promote economic activities in the wake of the COVID-19 pandemic. The global economy started to show signs of recovery from the major slowdown caused by the pandemic, but as the number of cases started to increase again in winter, various countries decided to re-impose restrictions to economic activities. Because of this situation and intensified US-China frictions, which may also adversely affect the economy, there is no clear visibility in the outlook.

In the semiconductor industry, our primary market, demand for semiconductor devices continued to be robust, driven by the market growth of PCs and data centers due to the growing need for telecommuting and online meetings, together with the market growth of 5G smartphone and other communications equipment, despite concerns about the impact of COVID-19 earlier. There was particularly strong demand for leading-edge high-performance semiconductors, and logic device manufacturers made aggressive investments to enhance the capacity of production facilities for the leading-edge lithography using extreme ultraviolet (EUV) light. Mask blank suppliers also engaged in EUV-related investment, expecting medium- to long-term demand growth.

Under these circumstances, our consolidated net sales in the six-month period ended December 31, 2020 totaled 32,231 million yen (up 61.6% year-on-year). As for consolidated income for this period, we recorded an operating income of 12,056 million yen (up 50.9% year-on-year), and an 8,362 million-yen net income attributable to owners of parent (up 49.5% year-on-year). All of these results have renewed the record of our best results for a half-year period.

With respect to our full-year results, we have revised up our forecast from the one announced at the beginning of the fiscal year to the following: 62 billion yen in sales (up 5 billion yen or 8.8%), 20 billion yen in operating profit (up 3 billion yen or 17.6%), 14 billion yen in net profit (up 1.5 billion yen or 12.0%).

Status of orders received

Orders received during the first half of this fiscal year amounted to 58,529 million yen or 41.9% higher than our previous record for a half-year period marked in the same period last fiscal year. We continue to receive a large amount of orders for EUV mask-related products, and we expect to renew our best result of orders for a full year period in this fiscal year.

Phase 3 of Medium-term Business Plan

In 2020, our behavioral pattern changed drastically due to the COVID-19 pandemic. Many people now have a so-called 'new normal' lifestyle. We have become very careful about social distancing. It has become more common to telecommute and work remotely, and we engage in non-contact communication more often. Semiconductor technology is playing a crucial role in solving social issues manifested by the pandemic and expanding the scope of application as the new lifestyle spreads. The change prompted by the new coronavirus is driving the growth of the semiconductor industry.

This fiscal year is the final year of Phase 3 of our Medium-term Business Plan. We see the increased semiconductor demand and the advancement of production technology as an opportunity for further growth.To take advantage of this opportunity, we will keep focusing on EUV-related systems and other leading-edge areas. In the second half of this fiscal year, we will continue to strengthen our infrastructures for growth and provide customers with leading-edge solutions that meet their requirements in a timely manner. In this way, we are striving to achieve a 'quantum leap' in Phase 3.

Interim dividend

The interim dividend for this fiscal year is 20 yen per share. Last fiscal year, we paid an interim dividend of 31 yen per share. Since we split our stock 2 for 1 effective January 1, 2020, this year's interim dividend would be equivalent to 40 yen per share (up 29%) if it is calculated based on the number of shares before the stock split. In light of our revised-up forecast of financial results for this fiscal year, we have changed our forecast of year-end dividend to 35 yen per share (from the previous forecast of 29 yen per share).

At Lasertec, we are dedicated to promoting businesses that utilize our expertise most effectively, becoming the most reliable company for customers, and achieving growth, guided by our corporate philosophy 'Create unique solutions. Create new value.'

I ask for your continued support for our endeavors. Thank you.

February 2021
Osamu Okabayashi
President, Lasertec Corporation

(Note) Phase 3 is a three-year period from July 2018 to June 2021. This fiscal year is its final year.