Screen : Financial Report (Jul. 2022)

SCREEN Holdings Co., Ltd.

July 27, 2022

CONSOLIDATED FINANCIAL REPORT

FOR THE FIRST QUARTER ENDED JUNE 30, 2022 [Japanese GAAP]

SCREEN Holdings Co., Ltd. is listed on the Prime Market 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 Department head of Finance & Accounting
	Tel: [phone]

Date planned for the filing of the quarterly report: August 12, 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 FIRST QUARTER ENDED JUNE 30, 2022 (APR. 1, 2022-JUN. 30, 2022)

(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
Three months ended	¥ 101,826	22.9%	¥ 17,849	105.3%	¥ 18,206	110.0%
Jun. 30, 2022
Three months ended	82,856	23.9	8,693	367.5	8,668	335.9
Jun. 30, 2021
Note: Comprehensive income
Three months ended Jun. 30, 2022: ¥ 17,447million ( 230.8%)
Three months ended Jun. 30, 2021: ¥ 5,273 million ( -12.0 %)
	Profit		Basic Earnings	Diluted
	Attributable to	Percentage
	per Share	Earnings per
	Owners of	Change
	(Yen)	Share (Yen)
	Parent
Three months ended	¥ 16,091	164.6%	¥ 343.56	¥ 326.57
Jun. 30, 2022
Three months ended	6,081	204.3	130.59	123.80
Jun. 30, 2021
(2) Financial Position
	Total Assets	Net Assets	Equity Ratio
	(%)
Jun. 30, 2022	¥ 472,518	¥ 260,894	55.2%
Mar. 31, 2022	459,305	247,788	53.9

Reference: Equity

As of Jun. 30, 2022: ¥ 260,837million

As of Mar. 31, 2022: ¥ 247,715 million

- 1 -

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	¥ －	¥ －	¥ －	¥ 293.00	¥ 293.00
Mar. 31, 2022
Fiscal year ending	－
Mar. 31, 2023
Fiscal year ending		－	－	322.00	322.00
Mar. 31, 2023 (Forecast)
Note: Revision of the latest forecast of cash dividends: No

FORECAST OF BUSINESS RESULTS FOR THE FISCAL YEAR ENDING MARCH 31, 2023

(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
Six months period ending	¥ 215,000		14.8%		¥ 34,500	43.3%
Sept. 30, 2022
Fiscal year ending	460,000		11.7			74,500	21.6
Mar. 31, 2023
		Percentage	Profit Attributable	Percentage	Basic Earnings per
	Ordinary Income	to Owners of
	Change		Change	Share (Yen)
			Parent
Six months period ending	¥ 33,500	40.8%	¥ 26,000		47.7%	¥ 551.79
Sept. 30, 2022
Fiscal year ending	73,000	22.8		50,000		9.9	1,058.01
Mar. 31, 2023

Note: Revision of the latest business forecast: Yes

[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.12 [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
3. 1. Changes in accounting policies accompanied by revision of accounting standard etc.: No
   2. Changes in accounting policies other than 1: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

- 2 -

SCREEN Holdings Co., Ltd.

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

	As of Jun. 30, 2022:	50,794,866 shares	As of Mar. 31, 2022: 50,794,866 shares
2.	Number of treasury stock as of end of period
	As of Jun. 30, 2022:	3,396,297 shares	As of Mar. 31, 2022: 4,217,043 shares
3.	Average number of shares outstanding
	Three months ended Jun. 30, 2022: 46,837,735 shares	Three months ended Jun. 30, 2021: 46,565,834 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

1. SCREEN Holdings has revised its business forecast for the fiscal year ending March 31, 2023 that was previously announced on May 11, 2022 as noted in this financial report.
2. 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. Please refer to P.5 "3. Qualitative information regarding consolidated business results forecasts" for the assumptions used and other notes.

- 3 -

SCREEN Holdings Co., Ltd.

[Qualitative Information, Financial Statements]

1. Qualitative information regarding the status of consolidated business results

During the first quarter of the fiscal year ending March 31, 2023 (the three-month period from April 1, 2022, to June 30, 2022), the global economy has generally been on a recovery path, but signs of economic recovery have been sluggish in some regions, as factors such as soaring resource prices, as well as supply constraints such as shortages of semiconductors and other components, and the impact of the lockdowns in China. In addition, uncertainty about the future has intensified mainly due to the prolonged situation in Ukraine and monetary tightening aimed at controlling inflation in each country.

With regard to the business conditions surrounding the SCREEN Group, in the electronics industry, high levels of demand for semiconductor devices continued, driven by the growing use of 5G and AI, progress in IoT technologies and DX, as well as growing demand for data centers. Furthermore, capital investment in semiconductor manufacturers and printed circuit board-related remained strong, due to a combination of investment in the fields of semiconductor miniaturization and packaging technology with an awareness of investment in less environmentally hazardous technology (GX), as well as investment in mature nodes to address the shift to EVs in vehicles and the shortage of semiconductors. On the other hand, display manufacturers have been revising the capital investment plan mainly due to falling panel prices.

Under these circumstances, for the first quarter of the fiscal year ending March 31, 2023, the SCREEN Group posted consolidated net sales of ¥101,826 million, an increase of ¥18,970 million (22.9%) from the corresponding period of the previous fiscal year. On the earnings front, as the result of an increase in net sales and improved profitability, operating income totaled ¥17,849 million, an increase of ¥9,156 million (105.3%) from the corresponding period of the previous fiscal year, and ordinary income amounted to ¥18,206 million, up ¥9,537 million (110.0%) year on year. In addition, as a result of gains in extraordinary income for the sales of shares of an affiliate and other factors, quarterly profit attributable to owners of parent was ¥16,091 million, up ¥10,010 million (164.6%) 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 and logic sales increased year on year, despite a decrease in sales to memory. By region, sales to Japan declined, but those to Taiwan and North America rose. As a result, net sales in this segment amounted to ¥84,633 million, up 41.6％ year on year. On the earnings front, operating income in this segment came to ¥18,831 million, up 111.9% 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 ¥10,558 million, up 9.5％ year on year, due to increased sales of equipment and recurring business, mainly ink. On the earnings front, operating income was ¥671 million, up 156.4% year on year due mainly to an increase in sales.

The Display Production Equipment and Coater (FT) Business

In the FT business, sales of display production equipment declined, partly due to the impact of the lockdowns in China. As a result, net sales in this segment amounted to ¥3,060 million, down 70.3％ year on year. On the earnings front, operating loss came to ¥826 million, compared with operating income of ¥230 million in the corresponding period of the previous fiscal year, mainly reflecting the decrease in net sales.

The PCB-Related Equipment (PE) Business

In the PE business, sales of direct imaging system rose by such as increasing data center demand. As a result, net sales in this segment amounted to ¥3,346 million, up 42.6% year on year. On the earnings front, operating income in this segment came to ¥468 million, up 122.1% year on year due mainly to an increase in sales.

- 4 -

SCREEN Holdings Co., Ltd.

2. Qualitative information regarding changes in consolidated financial position

Total assets as of June 30, 2022 stood at ¥472,518 million, an increase of ¥13,213 million, or 2.9%, compared with March 31,2022. This was largely due to an increase in cash and deposits and inventories, despite a decrease in notes and accounts receivable including electronically recorded monetary claims.

Total liabilities amounted to ¥211,624 million, up ¥107 million, or 0.1%, compared with the end of the previous fiscal year. This was mainly attributable to an increase in other current liabilities and contract liabilities, despite a decrease in convertible bond- type bonds with share acquisition rights.

Total net assets amounted to ¥260,894 million, up ¥13,106 million, or 5.3%, compared with the end of the previous fiscal year. This was mainly attributable to the recording of quarterly profit attributable to owners of parent, the conversion of convertible bond-type bonds with share acquisition rights causing both an increase in capital surplus and a decrease in treasury stock, despite payment of cash dividends.

As a result, the equity ratio as of June 30, 2022 stood at 55.2%.

Status of Cash Flows

The status of cash flows for the first quarter of the fiscal year ending March 31, 2023 is as follows.

Net cash provided by operating activities amounted to ¥29,269 million, compared with ¥18,552 million provided by operating activities in the first quarter of previous fiscal year. This was because the sum of income before income taxes, a decrease in notes and accounts receivable including electronically recorded monetary claims, an increase in other current liabilities and other inflows exceeded income taxes paid, an increase in inventories and other outflows.

Net cash provided by investing activities amounted to ¥1,739 million, compared with ¥1,688 million used in investing activities in the previous fiscal year. This was largely attributable to income from the sales of shares of subsidiaries and associates and other inflows exceeded payments associated with construction of a new factory and other outflows.

Net cash used in financing activities amounted to ¥19,350 million, compared with ¥4,472 million used in financing activities in the previous fiscal year. This was due mainly to cash dividends paid and redemption of convertible bond-type bonds with share acquisition rights.

As a result, cash and cash equivalents as of June 30, 2022 totaled ¥145,925 million, up ¥14,914 million from March 31, 2022.

3. Qualitative information regarding consolidated business results forecasts

Based on the current status of orders and customer investment trends, consolidated business forecast for the fiscal year ending March 31, 2023, is expected to be revised from the previous forecast announced on May 11, 2022 as shown below.

Business forecast

Fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

			(Millions of yen)
		The first half ending Sept. 30, 2022	Fiscal year ending Mar. 31, 2023
Net Sales	¥ 215,000	¥ 460,000
	SPE	177,500	375,000
	GA	19,500	40,000
	FT	11,000	28,500
	PE	6,000	14,000
	Other and Adjustments	1,000	2,500
Operating Income	34,500	74,500
Ordinary Income	33,500	73,000
Profit Attributable to Owners of Parent	26,000	50,000

In addition, The SCREEN Group has revised the numerical targets in the medium-term management plan, Value Up 2023, which previously announced on July 29, 2020. For details, please refer to today's "Notice: Revision of Numerical Targets of the Medium- Term Management Plan".

- 5 -