Tokyo Seimitsu : Summary of FY2023/3 1st Quarter Business Results (April to June 2022) （with notes）

Tokyo Seimitsu Co., Ltd.

Summary of FY2023/3

1st Quarter Business Results

(April to June 2022)

August 2nd, 2022

Aug 2nd, 2022

Copyright 2022 Tokyo Seimitsu Co., Ltd. (7729)

1

• Earnings Conference for FY2023/3 1Q (via Web)
• Tokyo Seimitsu's Speakers

KAWAMURA Koichi, Executive Vice President and CFO

TAKASHIMA Naoki, Manager, Management Support Dept.

• This transcript is a translation of information given verbally in Japanese language and simplified.

• Cautionary Statement with respect to Forward-Looking Statements
• • This presentation data and information verbally provided contain "forward-looking statements" that are based on current best available information and policies.
  • There are various factors such as world economic conditions and semiconductor/automobile market conditions which will directly and indirectly impact the Company's results in the future.
  • As a result, future outcomes may differ from those projected in this presentation.
• Wordings and Data in presentation
• • Unless otherwise noted, "SPE" denotes our Semiconductor Production Equipment Business Segment, "Metrology (or Metr.)" denotes our Metrology Business Segment, "Net profit" denotes Net profit attributable to owner of the parent, and "MTP" denotes "Mid-term Business Plan."
  • Information listed in this presentation is summarized in Billions of Yen (BJPY or B) or percentage except as otherwise noted. As a result, there may be a case where the total of individual amount and total amounts in each matter may differ.
  • Effective from FY2023/3, income and expenses of foreign subsidiaries are converted to Japanese Yen using the average rate during the period, instead of the previous end-of- period rate. Accordingly, the figures for FY2022/3 are retroactively applied to the average rate for the period.
• Audit procedure
• • This presentation is not subject to audit procedures.

Aug 2nd, 2022

Copyright 2022 Tokyo Seimitsu Co., Ltd. (7729)

2

• I am Kawamura, Representative Director and Executive Vice President CFO. I would like to express my gratitude for your continued support.
• I would like to make an announcement prior to the presentation of financial results. Specifically, the blue letters indicate the following.
• Effective from FY2023/3, income and expenses of foreign subsidiaries are

converted to Japanese Yen using the average rate during the period, instead of the previous end-of-period rate.

• This is mitigate the impact of temporary fluctuations in exchange rates on periodic profit and loss and more appropriately reflect the performance of overseas subsidiaries in the consolidated financial statements.
• The accounting policy has been applied retrospectively to the financial statements of the previous year. Therefore, the previous year's results shown in this document are the retroactively applied figures.
• I will now begin the explanation of the first quarter financial results.

2

FY2023/3 Business Results

Quarterly Results		FY2022/3			FY2023/3
(BJPY)	1Q	2Q	3Q	4Q	1Q	QoQ	YoY

Orders	41.4	46.4	55.6	42.7	48.8	+15%	+18%
Sales	28.8	32.4	31.4	38.1	27.9	-27%	-3%
Operating profit	6.0	6.9	6.3	9.1	5.7	-38%	-5%
(Margin)	(21%)	(21%)	(20%)	(24%)	(20%)
Recurring profit	6.0	7.0	6.5	9.7	6.5	-33%	+8%
Net profit	4.4	5.3	4.8	7.0	4.8	-31%	+10%

• Orders remained at a high level
• Decreased in Sales mainly due to installation delays caused by lockdown in China

Aug 2nd, 2022

Copyright 2022 Tokyo Seimitsu Co., Ltd. (7729)

3

• FY2023/3 first quarter (1Q) results are as described above.
• Orders exceeded the internal plan with increased in both QoQ and YoY. This was due to the SPE segment order level remained high,

and a significant increased in orders in the Metrology.

• Sales were below the internal plan, with decreased in both QoQ and YoY, and profits decreased. This was mainly due to the lockdown in China.
• Recurring profit and Net profit increased YoY mainly due to foreign exchange gains.

SPE Segment

Quarterly Results		FY2022/3			FY2023/3
(BJPY)	1Q	2Q	3Q	4Q	1Q		QoQ	YoY

Orders	33.6	38.2	45.6	35.5	36.0	+1%	+7%
Sales	22.7	24.7	24.2	29.5	21.1	-28%	-7%
Operating profit	5.3	6.0	5.3	8.1	5.0	-38%	-5%
(Margin)	(23%)	(24%)	(22%)	(28%)	(24%)

• Orders remained at a high level
• Sales decreased mainly due to installation delays by the lockdown in China
• Production continues at full capacity and Operating margin remained in the 20% range

Aug 2nd, 2022

Copyright 2022 Tokyo Seimitsu Co., Ltd. (7729)

4

• SPE Segment results are as described above.
• Orders remained at a high level with a slight increase in YoY and QoQ.
• Sales fell several BJPY short of the internal plan.
  This was mainly due to installation delays caused by the lockdown
  in China, especially in Prober. The plan is to recover in 2Q and beyond. Production remained at a high level despite the continued tight supply of parts and row materials.
• Operating margin remained in the 20% range.

*OSAT: Outsourced Semiconductor Assembly & Test

SPE - Quarterly Trend

Sales and OP

• Sales: Decreased due to installation delays
• Orders: Decreased in demand for consumer products and OSAT* while demand for

power devices and wafer fabrication remained strong

Aug 2nd, 2022

Copyright 2022 Tokyo Seimitsu Co., Ltd. (7729)

5

• Here are the quarterly trends in SPE sales, Operating profit and Orders.
• The left graph shows trends in sales and profit. Sales decreased due to installation delays caused by the lockdown in China.
• On the right side (Booking and Backlog), 1Q orders were flattish QoQ
  due to strong demand for power semiconductors and wafer fabrication remained strong, despite orders for OSAT and other products declined due to a drop in demand from the consumer electronic products.
• Outlook for orders in 2Q is for a mid-10% decrease QoQ, based on adjustments due to long delivery times for equipment and an adjustment in demand toward the consumer products.