SCREEN Holdings Co., Ltd.

January 28, 2022

CONSOLIDATED FINANCIAL REPORT

FOR THE THIRD QUARTER ENDED DECEMBER 31, 2021 [Japanese GAAP]

SCREEN Holdings Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange with the securities code number 7735. (URL https://www.screen.co.jp/en)

Representative:

Toshio Hiroe, President, Member of the Board and CEO

For further information contact:

Akihiko Miyagawa, Corporate Officer and General Manager of Finance & Accounting Department

Tel: +81-75-414-7155

Date planned for the filing of the quarterly report: February 10, 2022

Date of payment for cash dividends:

Figures have been rounded down to eliminate amounts less than one million yen, except per share figures.

PERFORMANCE FOR THE THIRD QUARTER ENDED DECEMBER 31, 2021 (APR. 1, 2021-DEC. 31, 2021)

(1) Business Results

(Millions of yen, except per share figures)

(Percentage are the rate of increase or decrease from the previous corresponding period.)

Net Sales

Percentage

Operating

Percentage

Ordinary

Percentage

Change

Income

Change

Income

Change

Nine months ended

¥ 291,107

34.5%

¥ 40,162

213.8%

¥ 39,913

254.4%

Dec. 31, 2021

Nine months ended

216,467

-4.2

12,796

73.0

11,262

56.6

Dec. 31, 2020

Note: Comprehensive income

Nine months ended Dec. 31, 2021: ¥ 33,015 million (39.2 %)

Nine months ended Dec. 31, 2020: ¥ 23,722 million (273.9 %)

Profit

Basic Earnings

Diluted

Attributable to

Percentage

per Share

Earnings per

Owners of

Change

(Yen)

Share (Yen)

Parent

Nine months ended

¥ 29,618

271.9%

¥ 635.96

¥ 603.11

Dec. 31, 2021

Nine months ended

7,964

68.4

170.71

161.68

Dec. 31, 2020

(2) Financial Position

Total Assets

Net Assets

Equity Ratio

(%)

Dec. 31, 2021

¥ 454,649

¥ 237,307

52.2%

Mar. 31, 2021

382,632

208,548

54.5

Reference: Equity

As of Dec. 31, 2021: ¥ 237,154 million

As of Mar. 31, 2021: ¥ 208,381 million

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SCREEN Holdings Co., Ltd.

CASH DIVIDENDS

(Yen)

Cash Dividends per Share

Record date

First

Second

Third

Year-end

Annual

Quarter-end

Quarter-end

Quarter-end

Fiscal year ended

¥

¥

¥

¥ 90.00

¥ 90.00

Mar. 31, 2021

Fiscal year ending

Mar. 31, 2022

Fiscal year ending

231.00

231.00

Mar. 31, 2022 (Forecast)

Note: Revision of the latest forecast of cash dividends: No

FORECAST OF BUSINESS RESULTS FOR THE FISCAL YEAR ENDING MARCH 31, 2022

(Millions of yen, except per share figures) (Percentage are the rate of increase or decrease from the previous corresponding period.)

Net Sales

Percentage Change

Operating Income

Percentage Change

Fiscal year ending

¥ 409,000

27.7%

¥ 54,500

122.5%

Mar. 31, 2022

Percentage

Profit Attributable

Percentage

Basic Earnings per

Ordinary Income

to Owners of

Change

Change

Share (Yen)

Parent

Fiscal year ending

¥ 51,500

126.7%

¥ 36,000

137.4%

¥ 772.97

Mar. 31, 2022

Note: Revision of the latest business forecast: No

[Notes]

(1) Changes in significant consolidated subsidiaries (Changes in specified subsidiaries involving changes in scope of consolidation): No

New Company: Not applicable

Exclusion: Not applicable

  1. Application of accounting methods specific to the preparation of quarterly consolidated financial statements: Yes
    Please refer to P.10 [Notes for quarterly consolidated financial statements - (Application of accounting methods specific to the preparation of quarterly consolidated financial statements)] for more information.
  2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
    1. Changes in accounting policies accompanied by revision of accounting standard etc.: Yes
    2. Changes in accounting policies other than 1: No
    3. Changes in accounting estimates: No
    4. Retrospective restatement: No

Please refer to P.10 [Notes for quarterly consolidated financial statements - (Changes in accounting policies)] for more information.

  1. Number of shares outstanding
    1. Number of shares outstanding as of end of period (including treasury stock)

As of Dec. 31, 2021:

50,794,866 shares

As of Mar. 31, 2021: 50,794,866 shares

2.

Number of treasury stock as of end of period

As of Dec. 31, 2021:

4,216,778 shares

As of Mar. 31, 2021: 4,231,050 shares

3.

Average number of shares outstanding

Nine months ended Dec. 31, 2021: 46,572,492 shares

Nine months ended Dec. 31, 2020: 46,652,314 shares

*This quarterly earnings report is exempt from the quarterly review procedure by certified public accountants or audit firm. *Explanation for appropriate use of forecasts and other notes

The forward-looking statements such as operational forecasts contained in this document are based on the information currently available to SCREEN Holdings and certain assumptions that are regarded as legitimate. SCREEN Holdings does not promise that the forecasts or estimates will be accurate. Large discrepancies may be seen in the actual results due to various factors.

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SCREEN Holdings Co., Ltd.

[Qualitative Information, Financial Statements]

1. Qualitative information regarding the status of consolidated business results

During the first nine months of the fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021), the global economy continued to face challenging circumstances due to the COVID-19 pandemic but remained on a recovery track overall due to rising vaccination rates and economic measures taken in countries around the world. In Japan, although the economy is on the mend as vaccinations tick up, the shifting to a recovery track was currently at a standstill due to supply bottlenecks, such as shortages of semiconductors and other components, and stagnant consumption caused by the intermittent spread of infection.

With regard to the business conditions surrounding the SCREEN Group, in the semiconductor industry, capital expenditure by semiconductor manufacturers remained steady, driven by such as increasing demand for data centers in line with the growing use of 5G and AI, progress in IoT technologies and digital transformation, the widespread adoption of remote work and demand for automobiles. In the FPD business field, investment in small- to medium-sized panels for OLEDs held steady. In graphic arts equipment, customer operations and capital investment appetite shifted to a recovery track mainly in the regions where the economy gradually recovered, such as North America and Europe.

Under these circumstances, for the first nine months of the fiscal year ending March 31, 2022, the SCREEN Group posted consolidated net sales of ¥291,107 million, an increase of ¥74,640 million (34.5%) from the corresponding period of the previous fiscal year. On the earnings front, as the result of an increase in net sales and an improvement in profitability, operating income totaled ¥40,162 million, an increase of ¥27,365 million (213.8%) from the corresponding period of the previous fiscal year. Ordinary income amounted to ¥39,913 million, an increase of ¥28,650 million (254.4) year on year, and quarterly profit attributable to owners of parent totaled ¥29,618 million, an increase of ¥21,654 million (271.9%) compared with the corresponding period of the previous fiscal year.

Performance by reportable segment is explained below.

The Semiconductor Production Equipment (SPE) Business

In the SPE business, foundry, memory and logic sales increased significantly year on year. By region, sales increased mainly in Taiwan, followed by North America and Europe. As a result, net sales in this segment amounted to ¥226,129 million, up 39.6 year on year. On the earnings front, operating income in this segment came to ¥41,404 million, up 172.2% year on year, mainly reflecting the increase in sales and an improvement in profitability.

The Graphic Arts Equipment (GA) Business

In the GA business, net sales in this segment amounted to ¥30,927 million, up 17.8 year on year, due to increased equipment sales, ink and other after-sales services revenue affected by a recovery in customers' operations and capital expenditure appetite. On the earnings front, operating income was ¥1,102 million (compared with operating loss of ¥24 million in the corresponding period of the previous fiscal year) due mainly to an increase in sales.

The Display Production Equipment and Coater (FT) Business

In the FT business, although sales of production equipment for large-sized LCDs decreased, sales of production equipment for small- and medium-sized OLEDs increased. As a result, net sales in this segment amounted to ¥23,119 million, up 16.7 year on year. On the earnings front, operating loss came to ¥143 million (compared with operating loss of ¥876 million in the corresponding period of the previous fiscal year), despite an increase in sales and an improvement in profitability compared with the same period of the previous fiscal year.

The PCB-Related Equipment (PE) Business

In the PE business, net sales in this segment amounted to ¥9,229 million, up 32.5% year on year, due mainly to an increase in direct imaging equipment sales. On the earnings front, operating income in this segment came to ¥1,546 million, up 414.1% year on year, due mainly to an increase in sales.

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SCREEN Holdings Co., Ltd.

2. Qualitative information regarding changes in consolidated financial position

Total assets as of December 31, 2021 stood at ¥454,649 million, an increase of ¥72,016 million, or 18.8, compared with March 31, 2021. This was largely due to an increase in cash and time deposits and inventories.

Total liabilities amounted to ¥217,341 million, up ¥43,258 million, or 24.8%, compared with the end of the previous fiscal year. This was mainly attributable to an increase in notes and accounts payable including electronically recorded obligations and contract liabilities.

Total net assets amounted to ¥237,307 million, up ¥28,758 million, or 13.8%, from March 31, 2021. This was mainly attributable to the recording of quarterly profit attributable to owners of parent, despite payment of cash dividends.

As a result, the equity ratio as of December 31, 2021 stood at 52.2%.

Status of Cash Flows

The status of cash flows for the first nine months of the fiscal year ending March 31, 2022 is as follows.

Net cash provided by operating activities amounted to ¥63,703 million, compared with ¥32,980 million provided by operating activities in the first nine months of the previous fiscal year. This was because the sum of income before income taxes, an increase in notes and accounts payable including electronically recorded obligations and other inflows exceeded an increase in inventories and other outflows.

Net cash used in investing activities amounted to ¥4,694 million, compared with ¥3,652 million used in investing activities in the first nine months of the previous fiscal year. This was largely attributable to the purchase of property, plant and equipment, such as equipment for R&D.

Net cash used in financing activities totaled ¥4,406 million, compared with ¥15,451 million used in financing activities in the first nine months of the previous fiscal year. This was due mainly to the payment of cash dividends.

As a result, cash and cash equivalents as of December 31, 2021, totaled ¥116,608 million, up ¥55,863 million from March 31, 2021.

3. Qualitative information regarding consolidated business results forecasts

The consolidated business results forecast for the fiscal year ending March 31, 2022 remains unchanged from the previously announced forecast on October 27, 2021.

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SCREEN Holdings Co., Ltd.

CONSOLIDATED BALANCE SHEETS

(Millions of yen)

Mar. 31,

Dec. 31,

2021

2021

ASSETS

Current assets:

¥ 62,727

¥ 117,927

Cash and time deposits

Notes and accounts receivable - trade

79,812

Notes and accounts receivable - trade, and contract assets

79,386

Electronically recorded monetary claims - operating

6,724

6,594

Merchandise and finished goods

49,444

53,417

Work in process

34,074

42,564

Raw materials and supplies

12,159

11,279

Other

8,915

13,202

Allowance for doubtful accounts

(970)

(987)

Total current assets

252,887

323,384

Non-current assets:

Property, plant and equipment:

61,819

62,286

Buildings and structures

Machinery, equipment and vehicles

52,521

53,516

Other

36,072

36,973

Accumulated depreciation

(93,359)

(95,892)

Total property, plant and equipment

57,054

56,884

Intangible assets:

5,412

4,755

Other

Total intangible assets

5,412

4,755

Investments and other assets:

53,990

55,502

Investment securities

Net defined benefit asset

7,494

7,850

Deferred tax assets

3,433

3,820

Other

2,478

2,554

Allowance for doubtful accounts

(118)

(101)

Total investments and other assets

67,277

69,625

Total non-current assets

129,744

131,264

Total assets

382,632

454,649

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SCREEN Holdings Co. Ltd. published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 06:45:03 UTC.