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11-year Financial and Non-financial Data
(Unit)FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

2013.62014.62015.62016.62017.62018.62019.62020.62021.62022.62023.6

Financial Data
Key financial results
Net sales*1

Millions of yen

163,351

173,878

179,174

192,437

231,831249,271

220,721

185,402

183,011

241,260

227,528

Operating profit

Millions of yen

6,115

11,996

11,132

17,86429,46835,351

23,82815,95817,19730,061

19,946

Ordinary profit

Millions of yen

6,264

13,384

12,475

18,37329,71636,90725,57518,052

17,96632,20022,880

Profit attributable to owners of parent*2

Millions of yen(3,807)

11,538

8,874

16,69824,46935,904

18,665

10,76914,83020,211

14,169Net assets

Millions of yen

59,436

72,23884,92878,032

104,917

154,069

157,588

161,093

173,699

196,484

204,853

Total assets

Millions of yen

243,289

230,791

242,348

219,561

245,306

297,418

282,302282,350

292,761354,304

353,474

Cash flows from operating activities

Millions of yen

22,35732,213

21,992

23,70837,81819,086

18,282

18,73825,52033,931

1,011

Cash flows from investing activities

Millions of yen(4,506)(3,023)(4,055)(5,593)(13,713)(1,564)(9,448)(4,143)(6,925)(7,432)(15,673)

Cash flows from financing activities

Millions of yen(3,619)(16,881)(14,895)(32,448)(22,580)(10,734)(5,844)

7,455(16,061)(6,445)(5,438)Cash and cash equivalents at end of period

Millions of yen

44,20457,012

61,67044,86247,55554,34855,85977,94883,061

107,106

87,317

Net assets per shareYen

806.381,040.23

1,398.66

1,477.29

2,002.90

2,994.12

3,062.39

3,132.22

3,388.87

3,837.17

4,024.72

Earnings per share

Yen(87.79)223.18172.73338.37496.35728.68378.78218.54301.12410.37287.70Shareholders’ equity ratio

%

22.7

29.2

32.8

33.2

40.2

49.5

53.5

54.6

57.0

53.3

56.1

ROE (return on equity)*

%

—

18.8

12.1

21.9

28.5

29.2

12.5

7.1

9.2

11.4

7.3

%

2.5

5.6

5.3

8.0

12.8

13.6

8.8

6.4

6.2

10.0

6.5

Times

—

9.66

10.91

9.21

10.88

5.82

9.02

14.23

18.70

11.26

21.17

Capital expenditureBillions of yen

6.8

6.2

6.7

7.0

8.3

12.9

12.9

10.3

10.0

11.0

19.7

R&D cost

Billions of yen

5.0

5.2

5.6

6.3

6.9

8.3

9.2

8.4

8.4

10.3

13.8

Interest-bearing debt

Billions of yen

Key performance indicators

3

Ordinary profit to total assets ratio
Price-earnings ratio*4
Other indicators

106.1

89.6

82.6

62.7

42.7

35.7

35.6

49.8

39.5

39.5

42.0

Yen

—

—

10.0

30.0

50.0

95.0

105.0

80.0

95.0

124.0

109.00

Dividend payout ratio

%

—

—

5.8

8.9

10.1

13.0

27.7

36.6

31.5

30.2

37.9

Number of employees

Persons

6,579

5,971

5,904

5,886

6,072

6,439

6,424

6,370

6,063

6,235

6,264

Dividends

Non-financial Data
Rate of lost-work-time injuries*5

%

—

—

—

—

—

0.37

0.00

0.00

0.76

0.39

0.56

Voluntary retirement rate*

%

—

—

—

—

—

1.06

2.21

1.98

1.97

3.16

2.90

Localization ratio of presidents ofoverseas subsidiaries

%

—

—

—

—

—

87.8

82.4

79.4

83.8

87.1

83.3

Ratio of women in managerial positions

%

—

—

—

—

—

—

—

—

6.6

7.7

9.0

5

CO2 emissions
Total

t-CO2

—

—

—

—

—

96,65398.971

93,78190.93492.052

89,406

Group companies in Japan

t-CO2

—

—

—

—

—

61,557

63.,769

59,50255.82955,56051,225

Group companies overseas

t-CO2

—

—

—

—

—

35,09635,202

34,27935,10536,492

38,181

Amount of valuable materials
recycled

t

—

—

—

—

—

1,767

1,877

1,173

1,136

1,189

1,169

Amount of landfill

t

—

—

—

—

—

289

286

163

80

93

101

Total amount of waste recycled

t

—

—

—

—

—

6,504

6,584

4,987

4,936

4,426

4,817

Final landfill disposal rate

%

—

—

—

—

—

3.6

3.6

2.6

1.4

1.4

1.6

Waste emissions*1 Net sales do not include consumption taxes.
*2 The Company applies the “Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013) and “profit attributable to ownersof parent” is presented instead of “profit.”*3 The ROE (return on equity) figure for FY2012 is not presented because the Company recorded a net loss for the period.
*4 The price-earnings ratio for FY2012 is not presented because the Company recorded a net loss for the period.
*5 ULVAC, Inc. on a non-consolidated basis

69

ULVAC VALUE REPORT 2023

ULVAC VALUE REPORT 2023

70

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Financial Overview
Forward-looking statements contained in this document are based on the current assumptions and beliefs of the ULVAC Group
in light of the information available to it as of September 28, 2023.

Management’s Recognition, Analysis and Discussion of Financial Position and Operating Results

Financial Position

For the fiscal year ended June 30, 2023 (FY 2022), net sales amounted to ¥227,528 million, a decrease of 5.7% year
on year. Regarding semiconductor and electronic device production equipment, in addition to contributions frominvestment in logic, there was more active investment in power devices and optical devices and investment aimed
at shifting to domestic electronics production in China. However, within the semiconductor production equipment
field, capital investment by semiconductor manufacturers is slowing in the short term, in line with the deceleration indemand for items such as smartphones and personal computers and semiconductor memory inventory adjustment.
Regarding FPD production equipment, investment in LCDs for IT panels declined following the previous fiscal year’sheightened activity. These factors contributed to lower net sales.
Operating profit margin was 8.8%, down 3.7 percentage points from the previous fiscal year. This was mainly
attributable to a decrease in net sales for FPD production equipment and an increase in semiconductor-related R&D
cost , which is an upfront investment.
R&D cost totaled ¥13,766 million, an increase of ¥3,425 million from the previous fiscal year. The ratio of R&D costto net sales was 6.1%, an increase of 1.8 percentage points from the previous fiscal year. Strengthening research anddevelopment capabilities is one of the main initiatives in the mid-term management plan, and the ULVAC Group is
continuing to emphasize investment with a view to future growth.
Regarding objective indicators for evaluating the degree of achievement of the management policies, management
strategies, and management objectives, we have formulated a mid-term management plan covering three years
from the fiscal year ending June 30, 2024. The mid-term management plan’s basic policies are: “creating social
value through vacuum technology” and “enhancing profit and capital efficiency-oriented management.” Under thesepolicies, the ULVAC Group will use net sales, gross profit margin, operating profit margin, operating cash flow, andreturn on equity (ROE), as key performance indicators of the mid-term management plan.
Quantitative targets are net sales of ¥300.0 billion, gross profit margin of 35%, operating profit margin of 16%,
operating cash flow of ¥63.0 billion (cumulative total for three years), and ROE of 14%. The Group aims to achieve
further growth from a medium- to long-term perspective by implementing specific initiatives to attain the targets ofthe mid-term management plan.

Total assets at the end of FY 2022 amounted to ¥353,474 million, having decreased ¥830 million compared withthe figure at the previous fiscal year-end. The main factors were an increase of ¥12,522 million in inventories partly
due to a measure to deal with longer lead time for parts delivery and an increase of ¥4,593 million in property, plantand equipment due to capital investment, and a decrease of ¥19,641 million in cash and deposits in line with theseincreases.
Total liabilities amounted to ¥148,620 million, having decreased ¥9,199 million compared with the figure at theprevious fiscal year-end. The main factors were a decrease of ¥7,694 million in notes and accounts payable - trade anda decrease of ¥2,560 million in contract liabilities.
Net assets amounted to ¥204,853 million, having increased ¥8,369 million compared with the figure at theprevious fiscal year-end. The main factors were an increase of ¥8,049 million in retained earnings mainly due to therecording of profit attributable to owners of parent. As a result, the shareholders’ equity ratio at the end of FY 2022
was 56.1%. We will continue to strengthen cash flow management and other measures to further strengthen thefinancial base.

Management’s recognition, analysis and discussion of operating results by business segment are as follows.

Cash Flows from Investing Activities

Vacuum Equipment Business
Segment net sales decreased 7.7% year on year to ¥184,760 million. This was mainly attributable to year-on-year
decreases in orders received and net sales for FPD production equipment due to the decline in investment in
LCDs for IT panels following the previous fiscal year’s heightened activity, although orders received and net sales
for semiconductor and electronic device production equipment both increased year on year owing to more active
investment in power devices and optical devices and investment aimed at shifting to domestic electronics productionin China, in addition to contributions from investment in logic.
Segment profit margin deteriorated from 13.6% for the previous fiscal year to 9.0% for the fiscal year underreview. This was mainly attributable to the decrease in net sales of FPD production equipment and the increase in
semiconductor-related R&D cost.
Vacuum Application Business
Segment net sales increased 3.9% year on year to ¥42,768 million. Higher segment net sales were attributable tobrisk sales related to surface analyzers and mask blanks for high-definition and high-performance displays, which werehigher than the previous fiscal year. On the other hand, net sales of materials decreased year on year because oflower utilization rates at customer plants related to FPDs.
Segment profit margin improved from 7.1% for the previous fiscal year to 7.8% for the fiscal year under review. Thiswas mainly attributable to an increase in net sales of highly profitable products.

71

ULVAC VALUE REPORT 2023

Cash Flows
Cash and cash equivalents at the end of FY 2022 amounted to ¥87,317 million, having decreased ¥19,788 million
compared with the figure at the previous fiscal year-end. The status of cash flows from operating, investing andfinancing activities and major contributing factors were as follows.

Cash Flows from Operating Activities
While working capital increased in order to deal with longer lead times for parts delivery, net cash provided byoperating activities amounted to ¥1,011 million owing to the recording of profit before income taxes, depreciation andothers. We will continue efforts to further strengthen cash flow management to achieve operating cash flow of ¥63.0
billion (cumulative total for three years to the fiscal year ending June 30, 2026), which is the target of the mid-term
management plan.

Net cash used in investing activities amounted to ¥15,673 million. Factors for cash outflow included purchase ofproperty, plant and equipment and intangible assets.
As a result, free cash flow was negative at ¥14,662 million.

Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥5,438 million, which was mainly used for the payment of cash
dividends based on the performance-linked payout ratio.

Financial Resources and Liquidity
The ULVAC Group’s funding needs are principally for R&D investment and capital investment, which will underpin a
new growth strategy, and for working capital for business operations. The Group intends to expand investment fordevelopment in the semiconductor and electronic device fields to strengthen growing businesses. Such demand
for funds is satisfied by cash flows from operating activities and borrowings from financial institutions. In fundprocurement, the Group endeavors to level the annual amount of repayment in order to reduce refinancing risk andthe repayment burden.
While the outlook of the market environment is increasingly unclear owing to the deterioration of U.S.-China
relations and economic slowdowns in the U.S., China, etc., the Group has secured sufficient liquidity in hand inorder to ensure preparedness for contingencies. The Group has also put in place a system that enables it to secure
additional funds by concluding commitment-line contracts. Thus, the Group is capable of stable operation for thetime being. The Group will maintain the system that ensures timely access to necessary funds so as to be capable ofresponding to rapid change in the business environment.

ULVAC VALUE REPORT 2023

72

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Consolidated Financial Statements
Consolidated Balance Sheet(Millions of yen)

FY2021

FY2022

FY2021

FY2022(As of June 30, 2022)(As of June 30, 2023)(As of June 30, 2022)(As of June 30, 2023)

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

118,040

98,399Notes and accounts payable, trade55,03047,336

Notes and accounts receivable, trade and contract assets

86,331

83,538

Short-term borrowings

9,618

11,878Merchandise and finished goods

4,500

6,140

Lease liabilities

679

898

Work in process

29,09036,485

Income taxes payable

3,813

2,328

Raw materials and supplies

15,84919,335Contract liabilities

25,24522,685

Other

10,562

11,903

Provision for bonuses

5,918

5,072

(525)

(521)

404

368

263,847

255,280

1,387

1,726

16

313

Other

14,65114,149Total current liabilities

116,762

106,754

Long-term borrowings

29,91030,080

Lease liabilities

2,562

3,037

128

195

7,400

7,414

Provision for share awards for directors (and other officers)

272

311

Asset retirement obligations

416

409

Other

368

420

41,05741,867

157,820

148,620

Share capital

20,873

20,873

Capital surplus

3,912

3,912

152,514160,563

(344)

(345)

176,955

185,003

Valuation difference on available-for-sale securities

1,440

2,036

Foreign currency translation adjustment

12,282

12,721Remeasurements of defined benefit plans(1,700)(1,547)

Total accumulated other comprehensive income

12,022

13,209

7,508

6,641

Allowance for doubtful accounts
Total current assets
Non-current assets

Buildings and structures

Provision for bonuses for directors (and other officers)
Provision for product warranties
Provision for loss on orders received

Property, plant and equipment
85,82187,062

Accumulated depreciation(58,939)(61,146)

Buildings and structures, net

26,88325,915

Machinery, equipment and vehicles

78,272

84,162

Accumulated depreciation(62,537)(63,763)

Machinery, equipment and vehicles, net

15,735

20,399Tools, furniture and fixtures

14,682

14,840

Accumulated depreciation(12,908)(13,099)

1,774

1,741

Land

8,360

8,245

Leased assets

5,079

5,981

Accumulated depreciation(1,922)(2,311)

Leased assets, net

3,157

3,670

Construction in progress

9,087

9,617

Total property, plant and equipment

64,99569,58827

23

Software

1,603

1,746

Other

2,085

2,568

Total intangible assets

3,715

4,336

6,882

10,151

536

940

Deferred tax assets

6,990

6,245

Other

9,332

8,962

Allowance for doubtful accounts(1,995)(2,030)Total investments and other assets

21,74624,26990,457

98,193

Total net assets

196,484

204,853354,304

353,474

Total liabilities and net assets

354,304

353,474

Tools, furniture and fixtures, net

Intangible assets
Leased assets

Investments and other assets
Investment securities
Retirement benefit asset

Total non-current assets
Total assets

73(Millions of yen)

ULVAC VALUE REPORT 2023

Non-current liabilities

Deferred tax liabilities
Retirement benefit liability

Total non-current liabilities

Total liabilities

Net Assets
Shareholders’ equity

Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests

ULVAC VALUE REPORT 2023

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Consolidated Financial Statements
Consolidated Statements of Income(Millions of yen)

(Millions of yen)

FY2021

FY2022

FY2021

FY2022(July 1, 2021-June 30, 2022)(July 1, 2022-June 30, 2023)(July 1, 2021-June 30, 2022)(July 1, 2022-June 30, 2023)

Net sales

241,260

227,528

Cost of sales
Gross profit

167,517160,366

Profit before income taxes

29,28020,72273,743

67,162

Depreciation

8,587

8,245

Impairment losses

3,090

2,311

Selling, general and administrative expenses
Selling expenses

Cash flows from operating activities

17,89329,324

Increase (decrease) in allowance for doubtful accounts

General and administrative expenses

18,03625,646

Total selling, general and administrative expenses

43,682

47,21730,061

19,946

Operating profit
Non-operating income

203

36

2,593

(869)

Increase (decrease) in retirement benefit liability

(38)

238

Increase (decrease) in provision for share awards for
directors (and other officers)

75

39

67

328

Increase (decrease) in provision for bonuses

Interest income

248

394

Increase (decrease) in provision for product warranties

Dividend income

745

429

Increase (decrease) in provision for loss on orders received

(906)

297

Foreign exchange gains

571—

Interest and dividend income

(993)

(822)

Share of profit of entities accounted for using equity method

861

2,661

Interest expenses

410

441

Other

1,312

1,579

Loss (gain) on sale of investment securities

(343)

—

Total non-operating income

3,736

5,063

Loss (gain) on sale of shares of subsidiaries and associates

(797)

—

Loss (gain) on sale of non-current assets

(59)

(153)

(861)

(2,661)Non-operating expenses
Interest expenses

410

441

Foreign exchange losses—

574

Share of loss (profit) of entities accounted for using equity
methodCommission for syndicated loans

195

287

Decrease (increase) in trade receivables(16,971)

3,629

Other

994

826

Decrease (increase) in inventories(11,348)(12,530)

Total non-operating expenses

1,598

2,128

Increase (decrease) in trade payables

15,544(8,418)32,20022,880

Increase (decrease) in net contract liabilities

10,788(2,725)

Increase (decrease) in accrued consumption taxes

594

(913)

Gain on sales of investment securities

343

—

Other

(850)

2,179

Gain on sale of shares of subsidiaries and associates

797—

Subtotal

38,067

9,373

Gain on sales of non-current assets

59

153

Interest and dividends received

1,573

1,026

1,199

153

Interest paid

(407)

(400)

Income taxes paid

(5,302)(8.987)33,931

1,011

Ordinary profit
Extraordinary income

Total extraordinary income
Extraordinary losses
Impairment losses

3,090

2,311

Cash flows from operating activities

Expenses for COVID-19 measures

1,028

—

Cash flows from investing activities

Total extraordinary losses

4,118

2,311

Payments into time deposits(20,656)(25,578)

Profit before income taxes

29,28020,722

Proceeds from withdrawal of time deposits

18,90825,495

Income taxes - current

7,549

6,100

Income taxes - deferred

290

542

Purchase of property, plant and equipment and intangible
assets(7,344)(16,311)

Proceeds from sale of property, plant and equipment andintangible assets

224

435

391

—

Total income taxes

7,839

6,642

Profit21,441

14,080

Profit (loss) attributable to non-controlling interests

1,231

(89)

Profit attributable to owners of parent

20,211

14,169ProfitProceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries and associates

1,200

—

Other

(155)

285

(7,432)(15,673)

331

1,483

Cash flows from investing activities

Consolidated Statements of Comprehensive Income(Millions of yen)

FY2022(July 1, 2022-June 30, 2023)

21,441

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

FY2021(July 1, 2021-June 30, 2022)

14,080

Other comprehensive income
Valuation difference on available-for-sale securities

(738)

602

Foreign currency translation adjustment

8,015

639

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

(279)

154

624

(59)

Proceeds from long-term borrowings

5,400

7,300

Repayments of long-term borrowings(5,685)(6,368)

Repayments of lease liabilities
Dividends paid
Purchase of treasury shares
Dividends paid to non-controlling interests
Other
Cash flows from financing activities

(741)

(879)

(4,684)(6,115)(0)(1)(1,065)

(858)

—

0

(6,445)(5,438)

7,622

1,336

Effect of exchange rate change on cash and cash equivalents

3,991

312

29,063

15,415

Net increase (decrease) in cash and cash equivalents

24,044(19,788)

Cash and cash equivalents at beginning of period

83,061

107,106

Comprehensive income attributable to owners of parent

27,34815,357

Cash and cash equivalents at end of period

107,106

87,317

Comprehensive income attributable to non-controlling interests

1,714

59

Comprehensive income
Comprehensive income attributable to75

Consolidated Statements of Cash FlowsULVAC VALUE REPORT 2023

ULVAC VALUE REPORT 2023

76