Lasertec : First 3 Months of Fiscal Year ending June 2024 - 1on1 FAQ

October 31, 2023

Lasertec Corporation（6920）

First three months of the fiscal year ending June 2024- 1on1 FAQ

1. Results (July 2023 to September 2023)

1. Sales
2. • Sales totaled 47.3B (up 21.5B YoY)
   • • 24.9% progress vs. 190.0B forecast for FY2024
   • "Semiconductor-relatedproducts" accounted for 41.7B (up 20.3B YoY)
   • "Other products" accounted for 0.15B (up 0.02B YoY)
   • "Services" accounted for 5.3B (up 1.2B YoY)
   • Gross profit amounted to 17.0B (up 2.6B YoY), and GP margin 36.1% (-20.1% YoY)
   • • Due to an unfavorable product mix with the acceptance of low-profit-margin ACTIS units beginning
     • JPY/USD exchange rate stayed lower than we had assumed (assumption: 1 USD = 125 JPY), pushing sales and profits higher
   • Operating profit amounted to 10.2B (up 1.7B YoY), and OP margin was 21.7% (-11.4% YoY)
   • Net profit amounted to 7.7B (up 0.9B YoY) and NP margin 16.3% (-9.9% YoY)
3. Orders
4. • Orders totaled 40.7B (down 22.4B YoY) and the backlog at the end of the period was 396.3B (down 10.3B YoY)
   • "Semiconductor-relatedproducts" accounted for 35.8B (down 20.0B YoY)
   • "Other products" accounted for 0.19B (down 0.23B YoY)
   • "Services" accounted for 4.6B (down 2.1B YoY)
5. Income Statement
6. • R&D expenses amounted to 2.3B (down 0.06B YoY)
   • • 19.6% progress vs. 12.0B forecast for FY2024
   • Capital expenditure amounted to 0.22B (down 17.1B YoY)
   • • 12.3% progress vs. 1.8B forecast for FY2024
   • Depreciation and amortization amounted to 1.0B (up 0.37B YoY)
   • • 23.9% progress vs. 4.5B forecast for FY2024
7. Balance Sheet & Cash Flows
8. • 【Cash flows】 Major cash flows during the period
   • • Operating CF (+14.5B): Income before taxes +10.9B, Decrease in notes and accounts receivable-trade +9.5B, Increase in advances received +3.3B, Decrease in inventories +1.9B, Income taxes paid -14.5B
     • Investing CF (-1.2B): Purchase of property, plant and equipment -0.8B
     • Financing CF (-1.5B):Short-term borrowings +10.0B, Dividends paid -11.5B

1

• 【Balance sheet】 Cash and deposits at the end of the period was 42.1B (up 12.3B from the end of FY2023)
• • Modest net cash inflows resulted because cash inflows from net profit, the decrease in notes and accounts receivable-trade, and short-term borrowings exceeded cash outflows for income taxes and dividends paid
  • Borrowing 15.0B (up 10.0B from the end of FY2023) out of the 40.0B commitment line
• 【Balance sheet】 Inventories amounted to 150.1B (down 1.9B from the end of FY2023)
• • Remaining at high level due to strong orders and expedited production of yet-to-be- ordered products despite a slight decrease from the previous period
• 【Balance sheet】 99.4B advances received (up 4.2B from the end of FY2023)
• • Advances received upon shipping to overseas customers or receiving orders for long lead-time products

2. FY2024 (July 2023 to June 2024) Forecast

1. Assumptions Foreign exchange rate sensitivity revised
2. • Assumption of foreign exchange rate: 1 USD = 125 JPY
   • Foreign exchange sensitivity for Q2 to Q4 of FY2024: Sales increase by about 0.5B and operating profit by about 0.4B with each 1 JPY depreciation against USD
     (Foreign exchange sensitivity at the beginning of FY2024: sales increase by about 0.6B and operating profit by 0.5B)
3. Sales Forecast No changes from initial forecast
4. • Sales forecast 190.0B (up 37.1B YoY)
   • "Semiconductor-relatedproducts" account for 158.0B
   • • Breakdown: Mask inspection 90%, Blank inspection 5%, Wafer inspection 5%
   • "Other products" account for 4.0B
   • • Breakdown: FPD 60%, Microscopes and others 40%
   • "Services" account for 28.0B
   • • Services revenue is expected to increase by 48% YoY due to an increased number of systems in operation at customer sites
   • Operating profit 64.0B, Ordinary profit 64.0B
   • • Operating margin is expected to be 33.7%
     • ACTIS units in initial lots with low profit margins will be sold in H1, causing GP and OP margins to decrease
   • Net profit 47.0B
5. Income Statement No changes from initial forecast
6. • R&D expenses: 12.0B, 6.3% of sales (up 1.0B YoY)
   • Capital expenditure: 1.8B (down 21.3B YoY)
   • • Expected to be at a minimum level during FY2024 with planned investment in the new site, InnoPa, and intangible assets mostly finished

2

• Depreciation and amortization: 4.5B (up 1.0B YoY)

3. Comments regarding this FAQ

1. Why is your assumed exchange rate not revised (1 USD = 125 JPY)?
2. • The JPY/USD exchange rate continued to be lower than we had assumed and pushed sales and profits higher.
   • We will keep an eye on market trends and, if necessary, revise our assumed exchange rate.
3. How much progress have you made in the sales of low profit margin ACTIS units?
4. • Sales began to register in July 2023 and mostly finished.
   • OP margin is expected to bottom out in Q1 and recover in Q2 and thereafter.
5. Semiconductors for AI applications are doing well. Does it affect your business?
6. • Demand for BGM series TSV Back Grinding Process Measurement System has increased rapidly for use in the production of HBM used for AI.
   • The growing demand for leading-edge semiconductors, including those for AI, will have a positive impact on demand for ACTIS and other inspection systems in the mid to long term.
7. What is the outlook of orders in FY2024?
8. • Semiconductor demand is expected to bottom out in CY2024 H1. We expect SPE market to recover as well.
   • There is a high level of interest in the High-NA ACTIS.
   • We expect a high level of investment in products related to power semiconductors and HBM to continue.

(Note) Product categorization
	Semiconductor-related products
	Mask inspection:	For EUV masks (ACTIS, MATRICS X8/9ULTRA, BASIC, MZ, etc.)
		For DUV masks (MATRICS Series other than X8/9ULTRA, MPM)
	Blanks inspection:	For EUV blanks (ABICS)
		For various types of blanks and substrates (MAGICS Series)
	Wafer inspection：	For various types of wafers (SICA, CIRIUS, LX, CIEL, EZ, BGM, BIM, etc.)

		Other products
		FPD:	FPD mask or mask blank inspection (CLIOS, LBIS, etc.)
		Microscopes and others:	Microscopes, battery-related products (OPTELICS, ECCS, etc.)
				END

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