Summary of Financial Results for the first half 2022

Consolidated Financial Statements for Fiscal the First half of

Fiscal Year Ending March 31, 2022

〔under Japanese GAAP〕

November 8, 2021

Registered Company Name: V-Technology Co., Ltd.

Code Number: 7717, First Section of the Tokyo Stock Exchange

URL: https://www.vtec.co.jp

Representative: Shigeto Sugimoto (President & CEO)

Contact: Shogo Yoshimura (Leader of IR Group, Office of the President) TEL: [phone]

Planned Date for Submission of the Quarterly Report: November 9, 2021

Supplementary materials for the financial statements: Yes

Briefing session on financial results: Yes (for Institutional investors)

(Amounts less than one million yen have been omitted.)

1. Business Performance of the First half of the Fiscal Year Ending March 31, 2022 1) Consolidated Results of Operations(April 1, 2021 through September 30, 2021)

	Six months ended	(%: Changes from previous fiscal year)
	September 30 ,2020		September 30 ,2021
		%		%
Net sales (Millions of Yen)	28,220	△ 19.5	27,127	△ 3.9
Operating profit (Millions of Yen)	2,941	△ 53.0	2,542	△ 13.6
Ordinary profit (Millions of Yen)	2,877	△ 54.0	2,462	△ 14.4
Net profit attributable to owners of the parent (Millions of Yen)	1,477	△ 61.9	1,893	28.2
Net profit per share (Yen)	152.82	ー	195.86	ー
*Notes: Comprehensive Income	2,057	△ 51.7		1.0

2) Consolidated Financial Position

	As of		As of
	March 31 ,2021		September 30 ,2021
Total assets (Millions of Yen)	80,591		71,285
Net assets (Millions of Yen)	32,915		32,373
Equity ratio	38.8	％	44.9	％
Net assets per share	3,233.74	Yen	3,313.13	Yen
*Reference: Shareholdersʼ equity (Millions of Yen)	31,268		32,036

2. Dividends

	Year ended	Year ending	March 31 2022
	March 31 2021	Actual	Forecast
1Q-end dividends per share (Yen)	-	-	-
2Q-end dividends per share (Yen)	60.00	-	60.00
	-	-	-
3Q-end dividends per share (Yen)
Year-end dividends per share (Yen)	60.00	-	60.00
Anual dividends per share (Yen)	120.00	-	120.00
(Note) Revisions to the most recently announced dividend forecast: None

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3. Forecast for the Fiscal Year ending March 31, 2022 (April 1, 2021 through March 31, 2022)

(%: Changes from corresponding period of previous fiscal year)

Forecast for the Fiscal Year ending March 31, 2022 (April 1, 2021 through March 31, 2022)		12months	%
Net sales (Millions of Yen)	53,000	△4.0
Operating profit (Millions of Yen)		5,000	△24.3
Ordinary profit (Millions of Yen)		4,900	△28.3
Net profit attributable to owners of the parent (Millions of Yen)		3,750	6.7
Net profit per share (Yen)		387.82	ー

(Note)Revisions to the most recently announced the forecast for the FY22: Yes

Please refer to the "Notice of Revision of Earnings Forecast" released today (November 8, 2021) for the revision of the consolidated earnings forecast.

1. Changes in significant subsidiaries during the three months ended March 31, 2022 (Changes in certain subsidiaries resulting in change in the scope of consolidation): None
2. Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, Changes in accounting estimates, or Restatement
4. 1. Changes in accounting policies due to changes in accounting standards: Yes
   2. Changes other than "a." above: None
   3. Changes in accounting estimates: None
   4. Restatements: None

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 9 of the attached materials.

4) Number of Shares Outstanding (Common stock)

			Number of shares		Number of shares
1.	Number of shares outstanding at end of year (Including treasury stock)	As of March 31,	10,057,600	As of March 31,	10,057,600
2022 Q2:	2021:
2.	Number of treasury shares at end of year	As of March 31,	388,135	As of March 31,	388,135
2022 Q2:	2021:
3.	Average number of shares outstanding (Cumulative quarterly period)	As of March 31,	9,669,465	As of March 31,	9,669,489
2022: Q2	2021 Q2:

※The quarterly financial statements are not subject to quarterly review by a certified public accountant or an audit firm.

※Explanation of the appropriate use of earnings forecasts and other special notes

The forward-looking statements, including earnings forecasts, contained in this document are based on information currently vailable to the Company and certain assumptions that the Company considers reasonable. Actual results may differ materially due to a variety of factors. Actual results may differ significantly due to various factors. Qualitative Information on Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022, (3) Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Statements" on page 3 of the attached materials.

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Index

１．Qualitative Information on Quarterly Results	4~6
(1)	Explanation of Operating Performance	4~5
(2)	Explanation of Financial Position	5
Outlook of Assets, Liabilities and Net Assets	5
(3)	Explanation of Consolidated Forecast and Other Forecasts	6
2．Consolidated Financial Statements and Major Notes	7~8
(1)	Consolidated Balance Sheets	7
(2)	Consolidated Statements of Income	8
	8
	8
（3) Consolidated Statements of Cash Flows	9-10
1)Cash flows from operating activities	9
2) Cash flows from investing activities	10
3) Cash flows from financing activities and others	10
(4)	Notes on Consolidated Financial Statements	11
	11
	11
	11

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１．Qualitative Information on Quarterly Results

(1) Explanation of Operating Performance

During the first half of the current fiscal year, the global economy continued to face difficult conditions overall due to the impact of the new coronavirus infection. China, which was the first to resume economic activities, and the United States, where economic stimulus measures and vaccinations have progressed, are on a recovery track. However, the future of the economy in Japan and overseas remains uncertain due to the shortage of parts and materials, including semiconductors, and the impact of stagnation in the supply chain on production activities.

(Orders &Backlogs)

Orders received by the Group during the first half of the current fiscal year totaled 27,274 million yen (19,870 million yen in the same period of the previous year), and the order backlog was 41,086 million yen (50,795 million yen in the same period of the previous year).

(Net Sales & Incomes)

Consolidated net sales for the first half of the current fiscal year were 27,127 million yen (compared to net sales of 28,220 million yen for the same period last year), operating income was 2,542 million yen (compared to operating income of 2,941 million yen for the same period last year), and ordinary income was 2,462 million yen (compared to ordinary income of 2,877 million yen for the same period last year), and net income attributable to owners of the parent was 1,893 million yen (compared with net income attributable to owners of the parent of 1,477 million yen in the same period of the previous fiscal year).

In addition, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards have been applied from the beginning of the first quarter of the current fiscal year. For details, please refer to "2. For details, please refer to "2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes to Quarterly Consolidated Financial Statements. (3) Changes in accounting policies, procedures and presentation methods for quarterly consolidated financial statements

Results by segment are as follows. The classification of reporting segments has been changed from the first quarter of the current fiscal year, and the following comparisons with the same period of the previous fiscal year are based on the figures for the same period of the previous fiscal year after reclassification to the new segment classification.

Business Segments

(FPD Business)

In the flat panel display (FPD) equipment business, capital investment related to large FPDs continued, mainly in China. In addition, although many business negotiations related to new plant construction plans, expansion of existing plants, and next-generation technologies continued, some projects took longer to close due to delays in investment plans.

As a result, orders received by the Group's FPD business during the first half of the current fiscal year were 24,509 million yen (19,014 million yen in the same period of the previous year), and the order backlog was 36,674 million yen (48,843 million yen in the same period of the previous year).

As for the consolidated results of the FPD business of the Group for the first half of the current fiscal year, net sales were 23,386 million yen (27,227 million yen in the same period of the previous year) , and operating income was 2,322 million yen (2,936 million yen in the same period of the previous year).

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(Semiconductor Business)

In the semiconductor equipment business, capital investment related to silicon wafers was firm against the backdrop of a global shortage of semiconductors, and business negotiations continued for the expansion of existing plants.

As a result, orders in the semiconductor business during the first half of the current fiscal year totaled 2,659 million yen (compared with 854 million yen in the same period of the previous fiscal year), and the order backlog was 4,452 million yen (1,951 million yen in the same period of the previous fiscal year).

Regarding the consolidated results of the our Group's semiconductor business for the first half of the current fiscal year, net sales were 3,635 million yen (991 million yen in the same period of the previous fiscal year), and operating income was 324 million yen (89 million yen in the same period of the previous fiscal year).

1. Explanation of Financial Position
   ：Outlook of Assets, Liabilities and Net Assets
   1. Assets
   Total assets at the end of the first half of the current fiscal year decreased by 9,306 million yen compared to the end of the previous fiscal year to 71,285 million yen. This was mainly due to decreases of 4,302 million yen in "Work in process" and 3,565 million yen in "Cash and deposits".

2. Liabilities

Liabilities decreased by 8,764 million yen compared to the end of the previous fiscal year, to 38,912 million yen. This was mainly due to decreases in "Advances received" and "income taxes payable" by 5,874 million yen and 1,502 million yen.

3. Net Assets

Net assets decreased by 541 million yen compared to the end of the previous fiscal year, to 32,373 million yen. This was mainly due to a decrease in "noncontrolling interests" of 1,303 million yen.

：Outlook of Cash flows

Cash and cash equivalents (collectively, "Cash") at the end of the half of the current fiscal year decreased by 3,565 million yen compared to the end of the previous fiscal year, to 29,593 million yen. The following is a summaryof each cash flow situation.

1. Net cash provided by operating activities

Net cash provided by operating activities amounted to 671 million yen(the same period last year: provided 14,593 miliion). The major positive factors were a 4,719 million yen decrease in "Inventories", a 2,948 million yen increase in "Profit before income taxes ".The major negative factors were a 6,407 million yen increase in "Advances received"

2. Net cash used in investing activities

Net cash used in investing activities amounted to 442 million yen(the same period last year: used 447 miliion yen).These were mainly due to a payment of 662 million yen for the purchase of "Property, plant and equipment".

3. Net cash provided by financing activities

Net cash used by financing activities amounted to 3,825 million yen(the same period last year provided 4,302miliion yen). The major negative factors were a payment of 1,394 million yen for "Repayments of long-term borrowings", and a payment of 1,051 million yen for "dividends paid to non-controlling interests" and a payment of 1,000 million yen for "Purchase of shares of subsidiaries not resulting in change in scope of consolidation".

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