Standard Market of TSE: 6890

Regarding initiatives for realizing business administration
conscious of capital cost and share priceStrong commitment to our customers
Excellence in engineering precision solutions
Delivering superior quality, value and service
July 31, 2024

1

Table of Contents- Evaluation of the current situation: Variations in PBR and ROE

P.2- Evaluation of the current situation: Variation in ROIC

P.3

- Evaluation of the current situation: PBR analysis

P.4- Evaluation of the current situation: DuPont analysis of ROE

P.5- Initiatives for improving PBR

P.6- Reform of the executive remuneration system 1/2

P.7- Reform of the executive remuneration system 2/2

P.8- Non-financial strategy: Status of dialogue with shareholders and investors 1/2

P.9- Non-financial strategy: Status of dialogue with shareholders and investors 2/2

P.10- Non-financial strategy: Sustainability activities

P.11- Appendix I: KPIs in the Mid-Term Management Plan

P.12

- Appendix II: Variation in share price relative to TOPIX

P.13- Appendix III: Variations in share price and trading volume

P.14- Appendix IV: Variation in shareholder return

P.15

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2

Evaluation of the current situation: Variations in PBR and ROE
Cost of shareholders’ equity: Calculated with the capital asset
pricing model (CAPM)

Variations in PBR and ROE (in the past 10 fiscal years)
1.8倍
1.8

35.0%
30.0%

ROE (left axis)

1.5倍
1.5

PBR (right axis)
PBR: 1.0

1.0倍
1.0

20.0%

10.0%

0.68x
Capital cost: 8.62%

5.0%

Beta

Capital risk
premiums

Individualrisk
premiums

Expected yieldfrom risk-free
assetsSensitivity tocapital risk
premiums ofindividual
assetsPremium of
expected yield
to be acquired
from the market
risk

Premium of
expected yield
to be acquired
from individual(size) risks

1.3倍
1.3

25.0%

15.0%

Risk-free
rate

0.8倍
0.8

0.5倍
0.5
7.8%

0.0%
15/3期
FY3/15 16/3期
FY3/16 17/3期
FY3/17 18/3期
FY3/18 19/3期
FY3/19 20/3期
FY3/20 FY3/21
21/3期 FY3/22
22/3期 FY3/23
23/3期 FY3/24
24/3期

The yield of 20-year
government bondsused＋

The β of thesemiconductor
manufacturing
equipment industry
adopted(external data)

1.735%

1.043••

Evaluation of
the current
situation

•

-5.0%
•

-10.0%PBR = Share price  Net assets per share
ROE = Profit attributable to owners of parent  Equity capital
Total asset turnover = Net sales  Total assets
Financial leverage = Total assets  Equity capital

Past stock market
return adopted(external data)

6.60%

＋

Past return ofsmall-cap stock Past return oflarge-cap stock

＝

8.62%
(FY3/24)

N.A.

Policy for evaluating and improving the current situation

0.3倍
0.3
0.0倍
0.0

×

Cost ofshareholders’equity•Policy for
improvement•

PBR: From FY3/22 to FY3/24, PBR remained less than 1.
In FY3/24, PBR dropped to 0.68, as ROE decreased significantly from theprevious fiscal year. The calculated cost of shareholders’ equity in FY3/24 is
8.62%.
ROE: In FY3/24, ROE was 7.8%, falling below the cost of shareholders’ equity.
We consider that it is necessary to brush up our earning capacity exceeding thecost of shareholders’ equity.
Improvement in PBR: Can be broken down into ROE × PER ⇒ Improvement in
ROE and PER
Improvement in ROE: We will improve ROE by realizing business and revenue
growth and strengthened earning capacity, managing ROIC, engaging in selection
and concentration of businesses, and improving total asset turnover and financial
leverage. We aim to achieve an ROE of 15% in FY3/27 (KPIs set in the Mid-Term
Management Plan).
Improvement in PER: We will strive to further enhance shareholder return policies
and non-financial strategies (sustainability, IR, and SR).

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3

Evaluation of the current situation: Variation in ROIC
Weighted average cost of capital (WACC)

Variation in ROIC (in the past 10 fiscal years; unit: %)20.0

Cost ofshareholders’equityRatio ofshareholders’equityRatio ofshareholders’equity to total
assets

15.0

×
10.0

8.62% ＋
(FY3/24)

The median of
15 similar listedcompanies
adopted

WACC 7.98%

4.5

5.0

93.6%

Leverageratio

Cost ofliabilities(after taxes)

Ratio ofinterestbearing
liabilities tototal assets

Borrowingrate ×(1 - Effective
tax rate)

×

WACC

＝

The median of
15 similar listedcompanies
adoptedPost-tax yield of
8-year corporatebond rated by
JCR as BBB
adopted

6.40%

1.069%

7.98%(FY3/24)

Policy for evaluating and improving the current situation
0.0

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Evaluation of
the current
situation

•
•

-5.0

In FY3/24, the value was 4.5%, much lower than WACC (7.8% in
FY3/24). Namely, EVA spread* is negative.
In the past 10 fiscal years, it exceeded WACC only in two fiscal years(FY3/22 and FY3/23). Accordingly, it is considered imperative to improve
ROIC.

ROIC = Profit attributable to owners of parent / (Interest-bearing liabilities + Equity capital)••

Policy for
improvement•

To thoroughly manage ROIC in each business and each subsidiary and further
strengthen investment judgment and control according to ROIC
To improve ROIC by reviewing the business portfolio, engaging in selection andconcentration of businesses, and restructuring the organization of our corporategroup (sale of businesses or a portion of equity, exclusion of some subsidiaries
from the scope of consolidation, and so on)
By implementing the above measures, we will improve ROIC while conducting
investment for business growth. We aim to achieve an ROIC of 8.0% in FY3/27(KPIs set in the Mid-Term Management Plan).

Note: EVA means Economic Value Added. If EVA spread (ROIC WACC) is more than 0, it can be said that a company provides EVA.

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4

Evaluation of the current situation: PBR analysis

ROE (％)

30.0

26.9

•

ROE is obtained by multiplying (1) profit attributable toowners of parent, (2) total asset turnover, and (3)financial leverage, so their graphs were produced withreference to the data for the past ten fiscal years, andmajor factors were analyzed. (See the following slide.)•

As a result, it was concluded that the decline of ROE in
the past 3 fiscal years is attributable to mainly thesignificant drop in net income margin.

•

Variation in the ratio of profit attributable to owners ofparent

25.0
18.9

20.0

1.75x

8.4

10.0
5.6

1.61

5.0

1.50x

5.9

1.22

1.08

1.25x

0.0
-5.0

1.00x

-10.0

0.96

0.75x
0.50x
0.25x

×

0.68

0.42

PER

35.0x

30.7x

30.0x

0.00x

25.0x
FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24
15/3期16/3期17/3期18/3期19/3期20/3期21/3期22/3期23/3期24/3期

20.0x

17.1x
12.9x

15.0x
PBR = ROE × PER
ROE = Profit attributable to owners of parent  Equity capital
PER = Share price  Earnings per share (EPS)•
Average of electric machinery makers
listed on the Standard Market

14.3x
11.5x

PER: 14.3

9.1x
9.9x
4.1x 5.1x

10.0x
5.0x
0.0x

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24-5.0 15/3期 16/3期 17/3期 18/3期 19/3期 20/3期 21/3期 22/3期 23/3期 24/3期-10.0

FY3/22 FY3/23 FY3/24
19.9% 14.1% 6.8%

-5.6

0.85

0.56

3.6

FY3/15 16/3期
FY3/16 17/3期
FY3/17 18/3期
FY3/18 19/3期
FY3/19 20/3期
FY3/20 21/3期
FY3/21 FY3/22
15/3期
22/3期 FY3/23
23/3期 FY3/24
24/3期

0.94

0.83

7.8
5.6

•

Factors

PBR

Factors

14.3

15.0

PER in FY3/24 was 9.1, much lower than 14.3, theaverage of companies listed on the Standard Market inthis industry (electric machinery) in FY3/24.
We consider the following items as major factors.
(1) Concern about a possibility to realize profit growthcommensurate to expanded investment(2) Concern about future financing (diluted profit)
accompanying continuing deficit of free cash flow asa result of large-scale capital investment which
exceeds cash flow to capital investment(3) Concern about an impact from the US-China
semiconductor friction due to concentration of
manufacturing sites in China(4) Impact resulting from a wide array of businesses

-10.1

-15.0

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5

Evaluation of the current situation: DuPont analysis of ROE
Net income margin (％)
25.0

•

19.9
14.1

15.0

9.1

6.8

10.0

3.1

5.0

ROE (％)

30.0

0.0

4.4

3.2

3.0

2.2

Factors

20.0

•

-3.6

× -5.0 15/3期 16/3期 17/3期 18/3期 19/3期 20/3期 21/3期 22/3期 23/3期 24/3期

26.9

FY3/24: Gross profit decreased by 3.1% from the previous
fiscal year due to the augmented costs such as depreciation
and amortization as a result of building new plants amid theworsening semiconductor market. Operating profit declined
by 29.0% from the previous fiscal year because SG&A
expenses augmented by 21.5% from the previous fiscal year
as a result of expansion of business as well as increases inlabor and test research expenses.
Net income margin decreased by 7.3 points from theprevious fiscal year due to a decrease in exchange gain
(down 4.11 billion yen from the previous fiscal year) and anincrease in equity in losses of wafer- and SiC wafer-affiliates(up 3.11 billion yen from the previous fiscal year).

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

25.0

Total asset turnover
1.0
0.8

14.3

15.0

0.8

0.7

•

0.8

0.9

0.5

0.6

10.0

0.4

0.5

0.5

0.5

0.4

0.4
8.4

5.0
5.6

7.8
5.9

Factors

18.9

20.0

•

0.2

5.6
3.6

0.0

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24
15/3期16/3期17/3期18/3期19/3期20/3期21/3期22/3期23/3期24/3期

-5.0

×

0.0
FY3/15 16/3期
FY3/16 17/3期
FY3/17 18/3期
FY3/18 19/3期
FY3/19 20/3期
FY3/20 FY3/21
15/3期
21/3期FY3/22
22/3期FY3/23
23/3期FY3/24
24/3期

Financial leverage

-5.6

-10.0

•

5.0

3.9

3.3
2.3

3.0

2.0

2.0

2.3

2.5

2.6
2.0

2.2

2.0

1.0

Factors

4.0

ROE = Net income margin × Net asset turnover × Financial leverage
Net income margin = Net income  Net sales
Total asset turnover = Net sales  Total assets
Financial leverage = Total assets  Equity capital

In FY3/24, turnover declined by 0.1 from the previous fiscal
year, because an increase in total assets (up 99.3 billion yen
from the previous fiscal year) was more significant than anincrease in net sales (up 11.6 billion yen from the previous
fiscal year).
In detail, it is attributable to mainly an increase in property,
plant, and equipment (up 61.7 billion yen from the previous
fiscal year) through capital investment, etc. at new factories
in Malaysia, China (Changshan, Sichuan, and Yinchuan), andJapan.

•In FY3/24, financial leverage increased by 0.3 points from theprevious fiscal year, because an increase in total assets (up99.38 billion yen from the previous fiscal year) was moresignificant than an increase in equity capital (up 20.68 billion
yen from the previous fiscal year).
In detail, it is attributable to mainly the growth of cash anddeposits (up 14.1 billion yen from the previous fiscal year)
due to the capital injection, increase, etc. for Chinese
subsidiaries (sensor business in Lishui and Malaysia), theaugmentation of accounts receivable and inventory (up16.39 billion yen from the previous fiscal year) due to thesales growth, and the increase of property, plant, andequipment described above (up 61.7 billion yen from theprevious fiscal year).

0.0

15/3期
22/3期 FY3/23
23/3期FY3/24
24/3期
FY3/1516/3期
FY3/1617/3期
FY3/17 18/3期
FY3/18 19/3期
FY3/19 20/3期
FY3/20 21/3期
FY3/21 FY3/22

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6

Initiatives for improving PBR⚫ By implementing the following measures, we will strive to improve ROE and PER, with the aim of improving PBR.
Thorough promotion of the digitization, automation and visualization of production sites

Profit margin

Selection and concentration of businesses (sale of businesses and exclusion of some subsidiaries from the scope of
consolidation)
Strengthened investment control through thorough management of ROIC of each business and each company
Selection and concentration of businesses (sale of businesses and exclusion of some subsidiaries from the scope of
consolidation)

Improvement
in ROE

Total asset
turnover

To shorten working capital turnover period (by reducing inventory, etc.)
Strengthened investment control through thorough management of ROIC of each business and each company

Improvement of operating and free cash flows by starting the operation of new plants early

Financialleverage

Improvement ＝in PBR×

Diversification of the fund procurement of Chinese subsidiaries (including the sale of a part of equity and adoption of
external capital)
Selection and concentration of businesses (sale of businesses and exclusion of some subsidiaries from the scope of
consolidation)

Discussion of the diversification of shareholder return, including the acquisition of treasury shares, for future M&A funds

Enhancement of initiatives for sustainability (such as the reduction of GHG*)

Capital cost
Improvementin PER

Deepening understanding by clarifying the contents and strategies of semiconductor-related, electronic device and invehicle device businesses

Expected EPS
growth rate
*GHG stands for greenhouse gas, mainly CO2.

To strengthen engagement in IR and SR activities, etc. (such as plant tours inside and outside Japan and interviews withoutside directors)

Expansion (increase of production capacity) of manufacturing sites outside China in response to the US-China
semiconductor friction and early start of operation
Malaysia (Kulim: ceramics, quartz, metal processing, and robot assembly; Johor Bahru: power semiconductor
substrates)
Japan (Ishikawa: ceramics; Kumamoto: precision parts cleaning and recycling, and quartz; Okayama: CVD-SiC)

☑
☑
☑
☑
☑
☑
☑
☑
☑
☑
☑
☑
☑
☑

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7

Reform of the executive remuneration system 1/2⚫ We will enrich the incentives for completing the Mid-Term Management Plan by shifting to a system of
remuneration that strongly depends on performance for both short-term and medium/long-term incentives, inorder to improve our corporate value.
Basic policy for the new
incentive system
Previous system (until FY3/24)
New system (from FY3/25)
Short-term incentive◇Profit sharing type
-3% of profit was distributed based on thecoefficient for each post.
◇Total amount: Up to 200 million yen

Medium/long-term incentive◇Restricted stock (RS): 100%
-Lifting of restrictions at the time ofresignation

Basic policy in the Mid-Term
Management Plan
To pursue business growth thoroughly
Enhancement of production efficiency
and competitivenessStrengthening of personnel anddiffusion of corporate culture

Fortification of the financial base andincrease in shareholder return

Short-term incentive◇Target type- The amount is determined by multiplying thebase amount for each post by the performance
evaluation coefficient (0-200%).
-The performance evaluation coefficient isdetermined by appropriately considering groupwide performance evaluation and individual
performance evaluation categories.
◇To secure fairness and rationality-Check by the remuneration advisory committee-Setting of clawback

Medium/long-term incentive

Emphasis on the linkage withshareholder value◇Restricted stock unit (RSU): 50%-Lifting of restrictions at the time of resignation◇Performance share unit (PSU): 50%

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8

Reform of the executive remuneration system 2/2⚫ For the executive remuneration system, we put importance on the linkage with the sustainable improvement in corporate
value.
⚫ The ratio among basic remuneration, performance-linked remuneration, and stock-based remuneration is 1 : 0.5 - 1.0 :0.5 - 1.0 according to posts.
Remuneration Table
Basic remuneration
Case of CEO

Performance-linked
remuneration

Stock-based remuneration

Short-term incentive

Medium/long-term incentive

Monthly remuneration
Bonus

Performance share unit (PSU)

Restricted stock unit (RSU)

Composition ratio (standard)

1.0

1.0

Evaluation indicator (KPI)-

Net sales, operating profit margin,
profit, and ROE

Comparison between total
shareholder return and growthrate of TOPIX (3 years)

3-year term

Evaluation coefficient-

0% - 200%

0% - 200%-

Payment method

Cash

Malus and clawback*

-

Cash

1.0

Stock unit is provided for each post. Three years later, shares andmoney for paying taxes are provided, with each of them accountingfor 50% of 1 share per unit (the number of PSU is obtained bymultiplying the evaluation coefficient).
Subjects*Malus provisions specify the decrease or removal of stock-based remuneration to be provided at the time of a scandal. Clawback provisions specify the mandatory return of already paid remuneration.

Copyright © Ferrotec Holdings Corporation All rights reserved.

9Non-financial strategy: Status of dialogue with shareholders and investors 1/2
Data of briefing sessions for institutional investors (previous fiscal year)
Item

Briefing session

Conference

Interviews for IR (including small ones)

Number of times

2

4

208

Number of companies we contacted

110

48

338

Domestic : Overseas

72 : 38

0 : 48160 : 178

Sell side : Buy side

57 : 53

0 : 4851 : 287

Details of briefing sessions for institutional investors (previous fiscal year)
TimingName

Description

Major presenters

Results briefing sessions
May

Briefing session for financial results*Recorded

Full-year performance, business strategy, and progress of the Mid-Term
Management Plan

CEO and directors in charge offinance/accounting and planningJune

Q&A event for financial results*Website

QA session with institutional investors and analysts regarding financial
results

CEO and directors in charge offinance/accounting and planning

November

Briefing session for financial results in Q2 *Recorded

Performance in the second quarter, business strategy, and progress of
the Mid-Term Management Plan

CEO and directors in charge offinance/accounting and planning

DecemberQ&A event for financial results in Q2

QA session with institutional investors and analysts regarding financial
results in Q2

CEO and directors in charge offinance/accounting and planning*WebsiteIR events, such as business strategy briefing sessions
April

Small sell-side meeting

Future business strategy

IR/Publicity Department

June

General meeting of shareholders

Future business strategy

CEO

SeptemberSell-side conference (New York)

Introduction of our company

IR/Publicity Department

October

Small sell-side meeting

Future business strategy

CEO and IR/Publicity Department

DecemberSell-side conference (Hong Kong)

Introduction of our company

IR/Publicity Department

March

Sell-side conference (Tokyo, twice)

Introduction of our company

IR/Publicity Department

March

Small sell-side meeting

Future business strategy

IR/Publicity Department
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Non-financial strategy: Status of dialogue with shareholders and investors 2/2

10

Theme of dialogue with shareholders and investors (previous fiscal year)
Example of the theme of dialogue withshareholders and investors

Recognition of the effects of the intensified US-China
semiconductor friction on our recent businessperformance, and our future vision

Situation of our activities, etc.
•
•
•
•
•

Relation between the advance of generative AI and ourbusiness••

Status of the IPO of Chinese subsidiaries••
Capital investment and cash flows

Situation of activities for ESG and sustainability

Made decisions and implemented plans for constructing manufacturing bases in regions other than China (Malaysia and Japan) from 2022.
Exchange of opinions about future production ratio: Envisioning a shift to a system in which the production ratio between China and other regions is 6 : 4.
Production bases in Malaysia: Start of operation of a semiconductor equipment-related plant in the northern region (Kulim) in January 2024
Construction of a power semiconductor substrate plant in the southern region (Johor Bahru)
Production bases in Japan: Start of operation of Ishikawa Plant No. 2, the planning and construction of Ishikawa Plant No. 3, and the planning andconstruction of Kumamoto Plant
The growth of demand for equipment for manufacturing logic semiconductors (mainly for GPUs) and inspection device-related products contributed toour performance.
The growth of demand for semiconductors for telecommunication devices (such as 5G-related products and optical transceivers) contributed to our
performance.
In response to the financial trouble of China Evergrande Group in 2023, the regulations for limiting IPOs for stabilizing the financial market were enforced,
and the screening of companies applying for an IPO became rigorous, so the screening period for IPOs lengthened.
The situation of fund procurement through IPOs is not favorable, due to the stagnation of Chinese share prices, etc.

••

Allocation of additional funds to the establishment of manufacturing bases in regions other than China, in response to the US-China semiconductor
friction
Expenditure for M&A (Ohizumi Mfg. Co., Ltd., Toyo Knife Co., Ltd., etc.)
Exchange of opinions about the balance between operating and investment cash flows and future capital investment•••

Exchange of opinions about shareholder return, etc.
Establishment of a Sustainability Committee, start of measurement of group-wide GHG (CO2) emissions, and examination by CDP
Interview and exchange of opinions about the situation of activities for ESG and sustainability, including climate change

System to provide feedback to management• Timely sharing of information at the time of meetings of the Board of Directors, Department Heads, etc. to reflect them in management strategies
Content

Frequency

Reporting method

Comments of investors and analysts (urgent ones)

When necessary

Department Head meetings, email, etc.

Comments of investors and analysts (feedback and evaluationof financial results)

Quarterly

Board of Directors meetings
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11

Non-financial strategy: Sustainability activities⚫ We established a Sustainability Committee in March 2023. Firstly, we started the measurement of group-wide GHG*
(CO2) emissions (Scopes 1, 2, and 3).
Plans for future activities

GHG (CO2) emissions in FY 2022

Ferrotec Group’s GHG emissions [t-CO2e*]993,768 tons

Scope 1 (fuel used by our company: petroleumrelated fuel, etc.)

20,955 tons

Scope 2 (energy procured from outside: electricity)

218,759 tons

Scope 3 (CO2 generated in the supply chain)

754,053 tons

PolicyThe Sustainability Committee takes the initiative in setting a policy
for group activities.
✓ To design group-wide policies and strategies according to theactual situation of our company(including TCFD scenario analysis and recognition of opportunities and risks)

Plans
for
activities✓ To determine each management (disclosure) item and set goals⇒ To set a goal for reducing GHG (CO2) emissions (reference year: FY 2022)⇒ To set management (disclosure) items and goals regarding ESG✓ To design a road map and establish a system for operation

Results of submission of data to CDP (climate change): Graded C in FY 2023.

＜For reference＞ Examples of important disclosure items regarding sustainability (IFRS Foundation)

CDP score (8 grades)
1. Information disclosure level (D⁻,D)
A questionnaire was answered, but efforts
for stewardship are insufficient.

•
•
•
•
•

Environment

2. Recognition level (C⁻, C [ourcompany])•

The effects of business on theenvironment are taken into account, andthe awareness of environmental issues isbeing enhanced.
•

3. Management level (B⁻, B)
Measures against environmental risks
and their effects have been taken, tomitigate the risks.

4. Leadership level (A⁻, A)Best practices are carried out
managing environmental issues.

forSocialcapital

•
•
•
•
•
•

GHG (mainly CO2) emissions
Energy management
Air quality
Management of water and sewage
Management of waste and hazardous
materials
Impact on ecosystems

Human rights and connections with local
communities
Privacy of customers
Data security
Access and affordability
Quality and safety of products
Welfare of customers
Sales practice and labelling of products

HumancapitalBusinessmodels andinnovation•••

Labor practices
Health and safety of employees
Engagement, diversity, and inclusion of
employees•

Product design and lifecycle
management
Capability of restoring business models
Supply chain management
Procurement of materials, and its
efficiency
Physical impact of climate change

•
•
•
•

Leadershipandgovernance

•
•
•
•
•

Management ethics
Competitive behavior
Management of the legal environment
Critical incident risk
Systemic risk control*GHG stands for greenhouse gas, mainly CO2.
t-CO2e represents Carbon Dioxide Equivalent. This is a globally recognized standard indicator for comparing GHG emissions.
CDP is an NGO managed by a British charity organization, which operates a global information disclosure system in which investors, enterprises, national governments, local communities, and cities manage environmental burdens.

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12

Appendix I: KPIs in the Mid-Term Management Plan

[Unit: million yen]

Performance

Indicator

Results in
FY 2023

Forecast for
FY 2024

Plan for
FY 2025

Plan for
FY 2026

Net sales

222,430

235,000

300,000

38,000Operating profit

24,87226,00040,00060,000Operating profit
margin

11.2%

11.1%

13.3%

15.8%

Profit15,15416,00022,00030,000

ROE

7.7%

15%

ROIC

4.4%

8%

Capital-to-asset ratio

40%

Capital investment

75,227

Capital efficiency

40%

Financial standing

Shareholder return

Dividend per share

100 yen60,00040,00040,000We will take finance and investment opportunities into account.
We aim to enrich the dividend with the aim of achieving a payout
ratio of 20 to 30%.

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13

Appendix II: Variation in share price relative to TOPIXWhen comparing the rise of our share price and TOPIX in the past ten years, our share price soared by approx. 3.8 times while TOPIX rose by approx. 2.2 times.
Variation in share price relative to TOPIX (weekly; the past 10 fiscal years; July 14, 2014 to July 8, 2024; assuming that the closing price on July 14, 2014 is 100)
600

500

Our company (left axis)
TOPIX (right axis)
384

400

300
219
200

100

0
7/14/14
Jul. 14, ’14

7/14/15
Jul. 14, ’15

7/14/16
Jul. 14, ’16

7/14/17
Jul. 14, ’17

7/14/18
Jul. 14, ’18

7/14/19
Jul. 14, ’19

7/14/20
Jul. 14, ’20

7/14/21
Jul. 14, ’21

7/14/22
Jul. 14, ’22

7/14/23
Jul. 14, ‘23

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14

Appendix III: Variations in share price and trading volume
Variations in share price and trading volume (weekly; the past 10 fiscal years; July 14, 2014 to July 8, 2024)
Share price [yen]Trading volume [thousand shares]

5,000

40,0004,500

35,000Share price (left axis)
Trading volume (right axis)

4,000
30,0003,500

25,000

3,000
2,500

20,0002,000

15,0001,500
10,000
1,000
5,000

500
0
7/14/14
Jul. 14, ’140
7/14/15
Jul. 14, ’15

7/14/16
Jul. 14, ’16

7/14/17
Jul. 14, ’17

7/14/18
Jul. 14, ’18

7/14/19
Jul. 14, ’19

7/14/20
Jul. 14, ’20

7/14/21
Jul. 14, ’21

7/14/22
Jul. 14, ’22

7/14/23
Jul. 14, ‘23

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15

Appendix IV: Variation in shareholder return⚫ Over the past 10 years, dividend per share rose about 16.7 times, and the payout ratio in FY3/24 exceeds 30%.
Variations in dividend and payout ratio (in the past 10 fiscal years)
[yen]

(％)

130.0

60.0

Dividend per share: about 16.7 times
110.0

50.0
100.0

90.0

40.0
Dividend per share (left axis)
1株当たり配当金

32.5

配当性向
Payout ratio (right axis)
70.0

30.0

50.0

20.0

30.0

10.0

10.0

6.0

-10.0

15/3期
FY3/150.0

16/3期
FY3/16

17/3期
FY3/17

18/3期
FY3/18

19/3期
FY3/1920/3期
FY3/20

21/3期
FY3/21

22/3期
FY3/22

23/3期
FY3/23

24/3期
FY3/24-10.0

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16

Disclaimer

This material is intended for informational purposes only and is not asolicitation or offer to buy or sell securities or related financial instruments.

Please make a final decision about the selection of stocks and investment on
your own judgment.

Copyright © Ferrotec Holdings Corporation All rights reserved.

Copyright © Ferrotec Holdings Corporation All rights reserved.