V Technology : Summary of Financial Results for the third quarter 2023

Note: This is an English translation of

the Japanese original for reference purposes only.

Summary of Consolidated Financial Statements

for the third quarter of fiscal year end of March 31, 2023

〔under Japanese GAAP〕

February 10, 2023

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

Code Number: 7717, 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 Securities Report: February 13, 2023

Planned Date for Start of Dividend Payment: -

Supplementary materials for the financial statements: Yes

Briefing session on financial results: None

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

1. Business Performance(April 1, 2022 through December 31, 2022)

1. Consolidated Results of Operations

	9 months ended	9 months ended
	December 31 ,2021	December 31 ,2022
	Amount		YoY(%)	Amount	YoY(%)
Net sales (Millions of Yen)	36,817		△11.3	29,892	△18.8
Operating profit (Millions of Yen)	3,314		△33.6	119	△96.4
Ordinary profit (Millions of Yen)	3,413		△29.4	743	△78.2
Net profit attributable to owners of the parent (Millions of Yen)	2,920		17.2	646	△77.9
Comprehensive Income(Millions of Yen)	3,312		△2.6	803	△75.8
Net profit per share (Yen)	320.05		―	66.87	―
Diluted net profit per share (Yen)	―		―			―	―
(2) Consolidated Financial Position
	As of				As of
	March 31 ,2022	December 31 ,2022
Total assets(Millions of Yen)			72,601				74,695
Net assets(Millions of Yen)			34,540				34,186
Equity ratio(％)			47.1				45.3
Net assets per share(Yen)			3,534.40				3,502.38
*Reference: Shareholdersʼ equity (Millions of Yen)			34,175				33,866
2. Dividends
	Year ended	Year ending		FY2023 Forecast
	March 31 2022	March 31 2023
1Q-end dividends per share (Yen)	-		-				-
2Q-end dividends per share (Yen)	60.00		60.00			60.00
3Q-end dividends per share (Yen)	-		-				-
Year-end dividends per share (Yen)	60.00	-				(Forecast)30.00
Anual dividends per share (Yen)	120.00	-				(Forecast)90.00

(Note) Revisions to the most recently announced dividend forecast: No

- 1 -

3. Forecast for the Fiscal Year ending March 31, 2022 (April 1, 2022 through March 31, 2023)

	Amounts		YoY(％)
Net sales (Millions of Yen)		44,000	△14.4
Operating profit (Millions of Yen)		700	△87.2
Ordinary profit (Millions of Yen)		1,500	△74.4
Net profit attributable to owners of the parent (Millions of Yen)		1,200	△71.4
Net profit per share (Yen)		124.10	―

(Note) Revisions to the most recently announced dividend forecast: No

1. Changes in significant subsidiaries during the 9 months ended(April 1, 2022 through December 31, 2022) (Changes in certain subsidiaries resulting in change in the scope of consolidation): None
2. Application of Special Accounting Methods for 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
5. Number of Shares Outstanding (Common stock)

Items	As of	Number of shares	As of	Number of shares
1. Number of shares outstanding at end of year	December 31, 2022	10,057,600	March 31, 2022	10,057,600
(Including treasury stock)
2. Number of treasury shares at end of year	December 31, 2022	388,031	March 31, 2022	388,195
3.Average number of shares outstanding	December 31, 2022	9,669,423	December 31, 2021	9,669,457
(Cumulative quarterly period)

*Brief Report of Financial Results is not subject to an audit by a certified public accountant or an audit corporation.

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

The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable.Actual results may differ materially from these statements due to a variety of factors.

- 2 -

1. Explanation of Business Results for this Quarter

（１）Explanation of Business Results

In the global economy during the third quarter of the current consolidated cumulative period, the U.S. and other countries around the world continued monetary tightening policies under the circumstance that the global inflation trend remained high, and in Japan, the allowable range of fluctuation in long-term interest rates was expanded and so, the exchange rate fluctuated significantly. In addition, monetary tightening led to a generally slowdown in economic growth in the U.S., China, and other major economies, further increasing uncertainty about the future.

Under these circumstances, the Group's orders received during the period under review totaled 22,468 Million yen, compared with 42,962 Million yen in the same period of the previous fiscal year. The order backlog at the end of the third quarter of the current fiscal year was 35,298 Million yen (47,084 Million yen in the same period of the previous year).

As for the Group's consolidated business results for the current consolidated cumulative third quarter, net sales were 29,892 Million yen (36,817 Million yen in previous corresponding period), operating income was 119 Million yen (3,314 Million yen of operating income in previous corresponding period), ordinary income was 743 Million yen (3,413 Million yen of ordinary income in previous corresponding period), and net income attributable to owners of the parent was 646 Million yen (2,920 Million yen of net income attributable to owners of the parent in previous corresponding period).

Segment results are as follows.Effective from the first quarter of the current fiscal year, the Company has changed the classification of its reportable segments, and the following comparisons with the same period of the previous year are based on the figures for the same period of the previous year, which have been reclassified into the segment classifications after the change.

(FPD Equipment Business)

In the flat panel display (FPD) equipment business, the continued slump in FPD panel prices confirmed a trend toward a revised capital investment plans. Under these circumstances, orders received in the Group's FPD equipment business during the current consolidated cumulative third quarter totaled 8,786 million yen (36,995 million yen in the same period of the previous year), with an order backlog of 18,010 million yen (40,435 million yen in the same period of the previous year), net sales amounted to 24,954 million yen (30,378 million yen in the same period of the previous year), and operating income was 515 million yen (3,037 million yen in the same period of the previous year).

(Semiconductor and Photomask Equipment Business)

In the semiconductor and photomask equipment business, although market conditions for a part of semiconductor applications deteriorated, capital investment related to our group generally progressed as planned. Under these circumstances, the value of orders received by the Group in the semiconductor and photomask equipment business during the current consolidated cumulative third quarter was 12,951 million yen (5,861 million yen in the same period of the previous year), and the order backlog was 17,287 million yen (6,648 million yen in the same period of the previous year), net sales amounted to 4,207 million yen (6,333 million yen in the same period of the previous year), and operating loss was 237 million yen (operating income of 345 million yen in the same period of the previous year).

(2) Explanation of Financial Condition

Total assets at the end of the third quarter of the current consolidated fiscal year increased by 2,093 million yen from the end of the previous consolidated fiscal year to 74,695 million yen. This was mainly due to an increase in "work in process" of 1,840 million yen.

Liabilities increased by 2,447 million yen from the end of the previous consolidated fiscal year to 40,508 million yen. This was mainly due to an increase in long-term loans payable of 3,097 million yen.

Net assets decreased by 354 million yen from the end of the previous consolidated fiscal year to 34,186 million yen. This was mainly due to an increase of 241 million yen in "Foreign currency translation adjustment" and a decrease of 538 million yen in "Retained earnings".

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements

No change in ernings forecast from "Summary of Consolidated Financial Statements for the second quarter of fiscal year end of March 31, 2023" published in November 10th 2022.

- 3 -

2．Consolidated Financial Statements and Major Notes （1）Consolidated Balance Sheets

								(Millions of yen)
							As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits						27,898	28,235
Notes and accounts receivable - trade				19,537	19,029
Electronically	recorded monetary claims -	246	182
operating
Merchandise and finished goods				176	442
Work in process						9,428	11,269
Raw materials and supplies					1,801	2,140
Other							4,500	4,398
Allowance for doubtful accounts				△503	△384
Total current assets						63,085	65,314
Non-current assets
Property, plant and equipment				4,720	4,833
Intangible assets
Goodwill							930	689
Other							565	437
Total intangible assets					1,495	1,127
Investments and other assets				3,300	3,419
Total non-current assets					9,516	9,380
Total assets							72,601	74,695
Liabilities
Current liabilities
Notes and accounts payable - trade				6,323	4,666
Electronically	recorded	obligations	-	4,546	4,358
operating
Short-term borrowings					394	300
Current portion of long-term borrowings				2,911	4,806
Income taxes payable						767	111
Advances received						8,334	8,815
Provisions							2,509	1,682
Other							1,272	1,571
Total current liabilities						27,061	26,312
Non-current liabilities
Long-term borrowings						10,243	13,341
Retirement benefit liability					372	416
Asset retirement obligations					140	163
Provisions							156	217
Other							85	57
Total non-current liabilities					10,999	14,195
Total liabilities							38,060	40,508
Net assets
Shareholders' equity
Share capital							2,847	2,847
Capital surplus						2,503	2,503
Retained earnings						30,113	29,574
Treasury shares						△1,916	△1,915
Total shareholders' equity					33,548	33,010
Accumulated other comprehensive income
Valuation difference	on available-for-sale	79	67
securities
Foreign currency translation adjustment				546	788
Total accumulated	other	comprehensive		626	855
income
Non-controlling interests						365	319
Total net assets							34,540	34,186
Total liabilities and net assets					72,601	74,695

（2) Consolidated Statements of Income

- 4 -

		(Millions of yen)
			Nine months ended	Nine months ended
			December 31, 2021	December 31, 2022
Net sales	36,817	29,892
Cost of sales		26,293	22,687
Gross profit	10,524	7,204
Selling, general and administrative expenses		7,210	7,085
Operating profit	3,314	119
Non-operating income
Interest and dividend income	27	26
Subsidy income	17	88
Foreign exchange gains	86	594
Other		38	75
Total non-operating income	170	786
Non-operating expenses
Interest expenses	32	31
Share of loss of entities accounted for using	35	118
equity method
Other	3	11
Total non-operating expenses		71	161
Ordinary profit		3,413	743
Extraordinary income
Gain on sale of non-current assets	834	1
Gain on change in equity	−	489
National subsidies	−	188
Other	5	−
Total extraordinary income		840	679
Extraordinary losses
Loss on retirement of non-current assets	19	6
Loss on valuation of investment securities	−	19
Other	−	2
Total extraordinary losses		19	28
Profit before income taxes	4,234	1,395
Income taxes - current		933	365
Income taxes - deferred	301	455
Total income taxes		1,234	821
Profit		2,999	573
Profit (loss) attributable to non-controlling interests		79	△72
Profit attributable to owners of parent			2,920	646

- 5 -