Ohara : Presentation of Financial Results First Quarter of the Fiscal Year Ending October 31, 2024

Presentation of Financial Results First Quarter of the Fiscal Year Ending

October 31, 2024

OHARA INC. (Code: 5218)

Mar.8th.2024

1

Overview of FY2024 1Q

• • Main Points of Results

• • Summary of Results

• • Optical Business

• • Electronics Business

• • Factors for Changes in Operating profit/Loss

CONTENTS

2

Outlook for FY2024

• • Revision of the Results Forecasts

• • Summary of 1H Results Forecasts

• • Summary of Full-Year Results Forecasts

• • Explanation of future business environment

• • Forecasts for the Optical Business

• • Forecasts for the Optical Business （semi-annual/quarter）

• • Forecasts for the Electronics Business

• • Forecasts for the Electronics Business（semi-annual/quarter）

• • Capital Expenditure, Depreciation and Research and Development

2

Overview of FY2024 1Q

Main Points of Results

Business Environment

■Signs of a gradual recovery were observed in the global economy, reflecting the easing of inflation, although economic activity remained sluggish in some areas.

■The outlook remained uncertain, mainly reflecting the prolonged Russia-Ukraine war, the Middle East situation, sluggish real estate market conditions in China and signs of policy interest rates remaining persistently high in Europe and the United States, as well as unstable foreign exchange rates.

■The camera market contracted largely due to the popularization of smartphones. Nonetheless, demand remained firm for interchangeable lens digital cameras and interchangeable lenses in the mirrorless camera market in particular, reflecting solid demand from professional and amateur photographers who seek to express high-quality images.

■In the semiconductor exposure device market, demand remained firm for generative AI and devices for power semiconductors, despite a significant decline in capital investment, particularly in memories.

■FPD exposure devices remained sluggish given weak investment by panel manufacturers.

Company Results

■Net sales decreased 9.9% year on year, reflecting production adjustments made in response to the greater-than-expected impact of inventory adjustments in the supply chain in the optical business. This offset the performance of the electronics business, which remained strong with the expansion of production capacity in response to strong orders for parts for use in semiconductor exposure devices.

■Operating profit decreased 60.9% year on year, reflecting the deterioration of cost ratios due to a continued decline in the operation rate of production facilities in the optical business, although sales of high value-added products increased in the electronics business.

Copyright© 2024 OHARA INC. All Rights Reserved.

Summary of Results

(Million yen, %)	Pressed optical glass products	Block optical glass products
Special glass and glass-ceramics	Quartz glass

8,000

FY2023 １Q	FY2024 １Q	Change
Net Sales	7,044	6,345	(699) (9.9%)
Operating Profit [Operating profit ratio]	937 13.3%	366 5.8%	(570) (60.9%)
Ordinary Profit [Ordinary profit ratio]	774 11.0%	378 6.0%	(395) (51.1%)
Net Profit (attributable to owners of parent) [Net profit ratio]	603 8.6%	116 1.8%	(486) (80.7%)
Exchange Rate Yen/USD Yen/euro	Average for the period 136.06 142.95	Average for the period 146.86 159.66

Breakdown of net sales

（Million yen）

6,000

4,000

2,000

0

Breakdown of operating profit

（Million yen）

1,500

Optical BusinessElectronics BusinessTotal

937

1,000

500

0

(500)

Optical Business

1Q comparison

Quarterly changes

Net sales of pressed optical glass productsNet sales of block optical glass productsOperating profit

Net sales of pressed optical glass productsNet sales of block optical glass productsOperating profit

(Million yen)

(Million yen)

5,000

4,500

4,201

4,000

3,500

3,000

2,500

2,000

1,500

1,000

(500)

500

0

FY2023 1Q

FY2024 1Q

5,000

4,500

4,201

4,237

4,000

3,500

3,000

2,500

2,000

1,500

1,000

(500)

500

0

Electronics Business

1Q comparison

Quarterly changes

Net sales of special glass and glass-ceramicsNet sales of quartz glass

Operating profit

Net sales of special glass and glass-ceramicsNet sales of quartz glass

Operating profit

（Million yen）

（Million yen）

3,500

3,500

3,273

3,295

3,019

FY2023 1Q

FY2024 1Q

3,000

2,500

2,000

1,500

1,000

500

0

Factors for Changes in Operating Profit/Loss

（Million yen）

Optical Business

Electronics Business

Improved

（Million yen） profitability of quartz glass Increase in

Effects of volume and unit prices

FY2023 1Q Operating profit/loss

Copyright© 2024 OHARA INC. All Rights Reserved.

FY2024 1Q Operating profit/loss

Outlook for FY2024

Revision of the Results Forecasts

1H

FY2024

(Million yen, %)

(Million yen, %)

2_Outlook for FY2024