ULVAC : VALUE REPORT 2023

Inherited ULVAC-Style

The essence of ULVAC's Business Philosophy established in 1966 remains unchanged even in an era of dynamic change. It is our responsibility to transmit our founder's aspirations to the present generation, passing the baton from one generation to the next far into the future.

Start of a Journey with Aspirations to Contribute to Industry throughVacuumTechnology

Amid Japan's post-war recovery, a group of talented young researchers and engineers led by Jin Imachi (Second president of the Company) gathered with the aim of "contributing to the revival of Japanese industry through vacuum technology." In 1952 six angel investors, impressed by the passion of these visionary young people, invested in the establishment of Japan Vacuum Engineering Co., Ltd., the forerunner of present-day ULVAC.

Fascinating!

Y'all must do it!

Each invested ¥1 million (equivalent to ¥25 million today) of their own money

Japan Vacuum Engineering Co., Ltd.	Sought
First president	investment
				Kohnosuke Matsushita	Tamesaburo	Aiichiro Fujiyama
				President of Matsushita	Yamamoto	Chairman of Chamber of
Great idea!				Electric Industrial	President of Asahi Beer	Commerce & Industry of Japan
Through vacuum						President of Dainihon Sugar
technology let's help						Refining Company
					Foreign Minister
create an affluent future
for the up-and-coming	Yoshijiro Ishikawa
generation.	I want to establish a			Six investors
	President of Keifuku Electric Railroad
	vacuum technology
			Gen Hirose	Yoshio Osawa
			company to help drive
We will provide	Consult	Japan's recovery.	President of Nissay	President of Osawa-Shokai
wholehearted support
to a company wishing
to establish the vacuum		Second		Third	1941
technology business in
Japan.			president		president	Vacuum Club
	Cooperation		Jin Imachi		Chikara Hayashi	was established.
NRC Equipment			Mazda Research		Sagane Lab of the	*1950
		Laboratory of Toshiba	University of Tokyo
Corporation			Renamed Vacuum

U.S. vacuum equipment	Technology Association
manufacturer

*Names of companies, organizations and titles are those at the time mentioned.

1966		1996		2001
	Basic Corporate Philosophy
Business Philosophy established			Management Policies established
	established

Vacuum Technology, ULVAC's Core Competence

Stated simply, a vacuum is a space where the pressure is lower than the atmospheric pressure. A vacuum has fascinating properties: for example, materials' lower boiling points in a vacuum mean they are more likely to evaporate and gas molecules can travel in a straight line in a space. ULVAC has developed various application technologies that exploit the properties of a vacuum in its quest to realize the remarkable potential inherent in vacuum technology. 'ULVAC' is a combination of 'UL' from 'ultimate' and 'VAC' from 'vacuum,' signifying that we pursue the 'Ultimate in Vacuum Technology.'

For example, using vacuum technology, it is possible to create ultrathin films with micron-to nanometer- order thickness. Since such thin films cannot be produced by physically stretching materials, advanced vacuum thin film processing technology is required for depositing layers of atoms or molecules of materials in a vacuum.

Led by IoT, 5G, and AI, a tremendous wave of technological innovation is making the digital society an everyday reality. Vacuum thin film processing technology is destined to fulfill a vital role for the fundamental technologies underpinning the digital society.

Inherited	Message to Our	About ULVAC	ULVAC's Vision	ULVAC's Strategy	Corporate	Financial Data/
ULVAC-Style	Readers	Governance	Corporate Information

Evolution of the Business Philosophy

Japan Vacuum Engineering Co.,Ltd. (which later became known as ULVAC) established the Business Philosophy consisting of six articles (later seven articles) in July 1966, the 15th anniversary of its founding. It codified the philosophy that had been at the heart of ULVAC's management as an unwritten rule since its founding, and this philosophy was inculcated throughout management and employees, becoming ULVAC's corporate DNA.

Subsequently, in line with the change of the business environment, including globalization, ULVAC established the Basic Corporate Philosophy in 1996 to articulate ULVAC's purpose, that is, proposing the creation of extraordinary value to customers through its business in the quest to realize the remarkable potential inherent in vacuum technology. Then, in order to clarify the thrust of the ULVAC Group, which offers not only vacuum equipment but also materials and solutions, including analysis and services, ULVAC set five Management Policies in 2001. In April 2004, ULVAC shares were listed on the First Section of the Tokyo Stock Exchange.

The Business Philosophy has been inherited by successive generations. In 2021 ULVAC announced Our Goal for 2050, reflecting the spirit of the Business Philosophy. In 2022, the 70th anniversary, to realize the goal, we set Vision 2032 and Four Key Issues (Materiality), thus clarifying ULVAC's direction.

70 years of contributing to the development of industry and science through vacuum technology is just one milestone in the development. The passion of our founder and all our predecessors is embodied in our Business Philosophy, burning brighter than ever.

Business Philosophy

1. Our company's life is eternal.
2. Our company can thrive through its people and can face ruin through its people.
3. Our company pursues profits.
4. Our company is a public instruments.
5. Our company continues to exist solely because of our customers.
6. Our company value time.
7. Our company's business is the promotion of comprehensive use of vacuum technology is our business.

ULVAC has been pursuing innovation as a leader in vacuum technology, which is indispensable for industrial development. We continue to boldly take on challenges to resolve social issues for our customers and the world. Our management philosophy is people-centered. We are emphasizing human resources development, upholding our founding principles of faithfulness and integrity that have guided us since our inception. For business stability and growth, it is essential to secure reasonable profits, develop technologies, and cultivate relationships of trust with stakeholders. Positioning "creation and co-creation of innovation with vacuum technology as the core" at the heart of our management, we are pursuing the potential of vacuum technology, anticipating changes in an era in which the business environment is rapidly evolving, and exploring new business opportunities with our stakeholders. Inspired by our Vision, "Continue to Be a 'Field of Potentiality' for the Future," we aim for sustainable growth and the creation of social value.

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Inherited ULVAC-Style (Basic Corporate Philosophy/Management Policies)

Inherited	Message to Our	About ULVAC	ULVAC's Vision	ULVAC's Strategy	Corporate	Financial Data/
ULVAC-Style	Readers	Governance	Corporate Information

ULVAC VALUE REPORT 2023 TABLE OF CONTENTS

Message to Our Readers

5 Message fromTop Management

About ULVAC

9 ULVAC's Value Creation

Here & There, Near your side

11 ULVAC's Businesses

13 ULVAC's History

ULVAC's Vision

15 ULVAC's Value Creation

19 ULVAC's Strengths

21 ULVAC's Sustainable Management

23 Toward the Realization of Our Goal for 2050

1. Review of the Previous Mid-term Management Plan (FY 2020-FY 2022)
2. New Mid-term Management Plan (FY 2023-FY 2025)

ULVAC's Strategy

Editorial Policy

We publish the ULVAC VALUE REPORT as a summary of our initiatives in the past year to achieve sustainable growth and enhancement of corporate value, our medium- to long-term vision, and our management approach.

We consider this report to be an important communication tool to facilitate stakeholders' understanding of our activities and deepen dialogue with them.

Published:

November 2023 (Previous issue published in November 2022)

Guidelines Referenced:

The International Integrated Reporting Framework, the International Integrated Reporting Council (IIRC)

Guidance for Integrated Corporate Disclosure and Company- Investor Dialogues for Collaborative Value Creation (Guidance for Collaborative Value Creation), Ministry of Economy, Trade and Industry (METI)

ISO 26000

Report's Scope and Period

Scope: ULVAC Group

In principle, this report covers the ULVAC Group; any portions that cover only ULVAC, Inc. are indicated as such.

Period:Year ended June 30, 2023 (July 1, 2022 to June 30, 2023, FY 2022)

Some portions of the report include activities and initiatives from July 2023 onward.

Basic Corporate

Philosophy

Management

Policies

The ULVAC Group aims to contribute to the development of industries and science by comprehensively utilizing its vacuum and peripheral technologies through the mutual cooperation and collaboration of the Group companies.

Improve Customer Satisfaction

Innovations in ProductionTechnology

Development of Original Products

Free and Open-minded Organization

Enhancing Corporate Value

29 Vacuum Equipment Business

Semiconductor Production	Electronic Device Production
Equipment	Equipment

FPD Production Equipment Components

Industrial Equipment

1. Vacuum Application Business Materials
2. Details of Initiatives for Materiality

37 Promotion of Creation and Co-creation of Innovation with VacuumTechnology as the Core

41 Development of Diverse Human Resources and Promotion ofTheir Advancement; Cultivation of Resilient Organizations

45 Respect for Human Rights and Responsible Conduct in the Value Chain

49 Contribution to a Sustainable Global Environment

Corporate Governance

55 Corporate Governance

59 External Directors Roundtable Discussion

63 Management Structure

Figures shown in tables and graphs in this report may not add up to the indicated total because of rounding. Some figures have been revised from previous years' data because the scope of reporting was expanded or calculating methods have been changed.

ULVAC's Communication Tools

Summarized

ULVAC VALUE REPORT

(Japanese and English version)

			Business report		Corporate
				governance report
			Business results
	Securities		presentation		Sustainability
	report		materials		(Website)
Detailed			(Japanese/English)

ULVAC's goal for 2050 is to become "a company that utilizes vacuum technology to create value for the world with its partners and continues to contribute to the future of people and the planet."

In an era of change, we are never satisfied with the status quo but always embrace change, pursuing cutting-edge vacuum technology together with our partners. We will contribute to the realization of a sustainable society through vacuum technology, ceaselessly striving to fulfill our social responsibilities.

1. Risk Management

1. Compliance

68 With Our Stakeholders

Financial Data/ Corporate Information

69 11-year Financial and Non-financial Data

71 Financial Overview

73 Consolidated Financial Statements

77 Company Data/Stock Information

Financial information

Non-financial information

We endeavor to achieve the optimum information disclosure by making various communication tools available to meet your needs.

To help you deepen your understanding of the ULVAC Group, our communication tools range from statutory disclosure documentation centering on information on financial closing to this report that offers non-financial information, such as on social and environmental initiatives indispensable for creating corporate value, in addition to information on business activities, management strategies, and financial information. Please also refer to our website for the latest information.

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