SCREEN Holdings Co., Ltd.

May 10, 2016

Tenjinkita-machi 1-1, Teranouchi-agaru 4-chome, Horikawa-dori,
Kamigyo-ku, Kyoto 602-8585, JapanCONSOLIDATED FINANCIAL REPORTFOR THE FISCAL YEAR ENDED MARCH 31, 2016 [Japanese GAAP]SCREEN Holdings Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange with the securities code number 7735.
(URL:http//www.screen.co.jp/)
Representative:
For further information contact:

Eiji Kakiuchi, President, Member of the Board and CEO
Hirofumi Ohta, Corporate Officer and General Manager of Finance & Accounting Department
Tel: +81-75-414-7155

Date of the annual shareholders' meeting: June 28, 2016
Date planned for the filing of the financial report: June 29, 2016

Date of payment for cash dividends: June 29, 2016

Figures have been rounded down to eliminate amounts less than one million yen, except per share figures.

PERFORMANCE (APR.1, 2015-MAR. 31, 2016)(Millions of yen, except per share figures)(1) Business Results(Percentage are the rate of increase or decrease from the previous fiscal year)

Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015

Net Sales

Percentage
ChangeOperating
IncomePercentage
Change¥259,675

9.3%¥

23,55737.2%

237,6450.7

17,16792.8

Note: Comprehensive income
Fiscal year ended Mar. 31, 2016:
Fiscal year ended Mar. 31, 2015:

Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015

¥ 11,567 million¥ 24,017 million¥

Ordinary
IncomePercentage
Change23,17844.0%

16,096

91.7( -51.8 %)( 68.4 %)ProfitAttributable to
Owners of
ParentPercentage
Change¥18,81555.2%

12,122

123.7

DilutedBasic Earnings
Earnings per
per Share
Share (Yen)
(Yen)

¥

79.35

¥ —

51.07

—

Return on
EquityReturn on
Return on
Assets
Sales(Ordinary(Operating
Income Basis) Income Basis)

16.3%

8.9%

9.1%

12.3

6.7

7.2

Note: Equity in earnings (losses) of affiliates accounted for by the equity method
Fiscal year ended Mar. 31, 2016:¥ 0 million
Fiscal year ended Mar. 31, 2015:¥ 0 million(2) Financial Position
Equity Ratio(%)

Net Assets per Shareof Capital Stock (Yen)¥120,288
111,513

44.3%

44.4

¥506.68
467.13Operating
Activities

Investing
Activities

Financing
Activities

Cash and Cash Equivalents,
End of Period¥

14,720¥ (2,557)¥ (2,845)¥30,156(1,492)(6,317)(3,822)

21,990Total Assets

Net Assets¥270,093
249,516Mar. 31, 2016
Mar. 31, 2015
Note: Equity
As of Mar. 31, 2016:
As of Mar. 31, 2015:¥ 119,649 million¥ 110,864 million(3) Cash Flows

Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015

1

Consolidated

SCREEN Holdings Co., Ltd.

CASH DIVIDENDS
Cash Dividends per Share

Record dateFiscal year ended
Mar. 31, 2015
Fiscal year ended
Mar. 31, 2016
Fiscal year ending
Mar. 31, 2017 (Forecast)

Total
Dividends(Annual)Payout Ratio(Consolidated)

Ratio of Net
Assetsto Dividends(Consolidated)

First
Quarter-end

SecondQuarter-end

Third
Quarter-end

Year-end

Annual

—

—

—

¥7.00

¥7.00

¥ 1,661

13.7%

1.7%

—

—

—

12.00

12.00

2,833

15.1

2.5

—

—

—

70.00

70.00

(millions of yen)

16.1

The Company is to implement a one-for-five consolidation of shares on its common stock. The amount shown for the year-end dividend pershare for the fiscal year ending March 31, 2017 (Forecast), is calculated factoring in the impact of the consolidation of shares. For details,
please refer to "Explanation for apropriate use of forecasts and other notes."

FORECAST OF BUSINESS RESULTS FOR FISCAL YEAR ENDING MARCH 31, 2017
(Millions of yen, except per share figures)(Percentage are the rate of increase or decrease from the previous corresponding period.)

Six months period ending
Sept. 30, 2016
Fiscal year ending
Mar. 31, 2017

Net Sales

Percentage Change¥ 129,500-0.3 %¥ 11,300

265,000

2.1

27,000Ordinary Income

Percentage
ChangeOperating Income

ProfitAttributable to Percentage Change
Owners of Parent

Percentage Change

4.5 %
14.6

Basic Earnings per
Share (Yen)Six months period ending¥ 11,100¥ 8,200
4.5 %-3.2 %¥ 34.72
Sept. 30, 2016
Fiscal year ending
26,50014.3
20,5009.0
434.06
Mar. 31, 2017
The amount shown for basic earnings per share in the forecast of business results for the fiscal year ending March 31, 2017, is calculated
factoring in the impact of this consolidation of shares. For details, please refer to "Explanation for apropriate use of forecasts and othernotes."

2

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SCREEN Holdings Co., Ltd.

NOTES
(1) Changes in significant consolidated subsidiaries (Changes in specified subsidiaries involving changes in scope of consolidation): No
New Company: Not applicableExclusion: Not applicable(2) Changes of accounting policies, changes in accounting estimates and retrospective restatement
1. Changes of accounting policies accompanied by revision of accounting standard etc.: Yes
2. Changes of accounting policies other than 1: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No<Changes of accounting policies>(Adoption of revised accounting standard for business combinations, etc.)“Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21, released on September 13, 2013, hereinafter the “Accounting Standard forBusiness Combinations”), “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, released on September 13, 2013,
hereinafter the “Consolidated Accounting Standard”), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, released on September 13
2013, hereinafter the “Accounting Standard for Business Divestitures”) and others have been adopted effective from the beginning of the fiscal year ended March
31, 2016. As a result, any change resulting from the Company’s ownership interests in its subsidiary when the Company retains control over the subsidiary is
accounted for as capital surplus, and acquisition related costs are expensed in the year in which the costs are incurred. For any business combinations on or after the
beginning of the fiscal year ended March 31, 2016, subsequent measurement of the provisional amount recognized based on the purchase price allocation due to thecompletion of accounting for the business combination are reflected in the quarterly consolidated financial statements for the period to which the date of thatbusiness combination occurs. In addition, the presentation method of net income was amended as well as “minority interests” to “non-controlling interests.” To
reflect these changes in presentation, adjustments have been made to the consolidated financial statements for the fiscal year ended March 31, 2015 presented
herein.
The aforementioned accounting standards are adopted as of the beginning of the fiscal year ended March 31, 2016 and thereafter, according to the transitional
treatment provided for in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of the Consolidated Accounting Standard
and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures.
Changes in description method have been implemented for cash flow statement of the fiscal year ended March 31, 2016, as cash flows related to acquisition or saleof subsidiaries without changes in consolidation scope were provided in the section of cash flows from financing activities while cash flows related to the cost
incurred from acquisition or sale of subsidiaries entailing changes in consolidation scope were provided in the section of cash flows from operating activities.
The effect of this change on consolidated financial statements is immaterial.

(3) Number of shares outstanding
1. Number of shares outstanding as of end of period (including treasury stock)
As of Mar. 31, 2016: 253,974,333 shares
As of Mar. 31, 2015: 253,974,333 shares
2. Number of treasury stock as of end of period
As of Mar. 31, 2016: 17,830,849 shares
As of Mar. 31, 2015: 16,642,614 shares
3. Average number of shares outstanding
Fiscal year ended Mar. 31, 2016: 237,121,118 sharesFiscal year ended Mar. 31, 2015:

3

237,342,345 shares

Consolidated

SCREEN Holdings Co., Ltd.

(Reference) Overview of nonconcolidated business performance (APR.1, 2015-MAR. 31, 2016)(Millions of yen, except per share figures)(Percentage are the rate of increase or decrease from the previous fiscal year)(1) Business Results
Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015

Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015

Net Sales

Percentage
ChangeOperating Income

Percentage
ChangeOrdinary Income

Percentage
Change¥21,587-78.3%¥ 6,626

612.8%¥ 6,260

104.0%

99,456

-48.0

929

-71.8

3,068

-63.5

Net Income per Share(Yen)

Percentage Change¥ 7,091135.0%¥ 29.91

¥ —

3,018

-59.3

12.72

—

(2) Financial Position
Total Assets
Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2015
Note:

EquityAs of Mar. 31, 2016:
As of Mar. 31, 2015

Diluted Net Income per
Share (Yen)Net Income

Net Assets

Equity Ratio(%)

Net Assets per Shareof Capital Stock (Yen)¥191,594¥76,152

39.7 %¥322.49

180,334

75,92942.1

319.93¥ 76,152 million¥ 75,929 million*Indication of audit procedure implementation status
This financial report is exempt from audit procedure based upon the Financial Instruments and Exchange Law. It is under the audit procedure process
at the time of disclosure of this report.
*Explanation for appropriate use of forecasts and other notes
The forward-looking statements such as operational forecasts contained in this document are based on the information currently available to SCREEN
Holdings and certain assumptions that are regarded as legitimate. SCREEN Holdings does not promise that the forecasts or estimates will be accurate.
Large discrepancies may be seen in the actual results due to various factors.
(Outlook of consolidated business results forecast and dividends following the consolidation of shares)
The Company, at the board of directors’ meeting held on May 10, 2016, resolved to place the consolidation of shares on the agenda of the Company’s
75th ordinary general meeting of shareholders to be held on June 28, 2016 and is planning to implement a one-for-five consolidation of shares on its
common stock effective October 1, 2016, contingent on approval at the ordinary general meeting of shareholders. The outlook for consolidated
business results forecast and dividends for the fiscal year ending March 31, 2017, calculated without factoring in the consolidation of shares, are as
follows.
1. Consolidated business results forecast for the fiscal year ending March 31, 2017
Basic earnings per share
Full year: ¥ 86.81
2. Dividends forecast for the fiscal year ending March 31, 2017
Cash dividends per share
End of fiscal year: ¥ 14.00

BUSINESS RESULTS
1. Business Results
Overview
During the fiscal year ended March 31, 2016, global economic conditions continued to gradually improve, mainly reflecting strong
consumer spending in the United States. Economies in Europe saw ongoing recovery, due in part to the effects of ongoing monetaryeasing. On the other hand, the global economic outlook became more uncertain, with China’s economy slowing further amid aworsening real estate market and chaotic financial market as well as concerns of prolonged economic stagnation in emerging economies
due to low natural resource prices and other factors. The Japanese economy, meanwhile, saw improvement, backed by improving
corporate earnings and gradual recovery in consumer spending, despite concerns in the latter half of the year regarding the effects ofadopting negative interest rates, a strengthening yen and weaker stock prices.
With regard to the business conditions surrounding the SCREEN Group, in the semiconductor industry, capital investment amongmemory manufacturers was firm, backed by increasing demand for high-capacity data servers. In addition, reflecting expanding
demand for IoT-related electronic devices for automobiles and other, the market for equipment for sub-200 mm wafers showed signs ofgrowth in demand. With regard to graphic arts equipment, demand in the Japanese market continued to recover. In the FPD businessfield, investment in large-sized LCD panels for televisions increased in China, as did investment in small- and medium-sized LCD
panels in Taiwan and Japan.
Under these circumstances, the SCREEN Group posted consolidated net sales of ¥259,675 million for the fiscal year ended
March 31, 2016, an increase of ¥22,029 million from the previous fiscal year. On the earnings front, operating income totaled ¥23,557
million, up ¥6,389 million year on year, reflecting the increase in net sales and improvement in the variable cost ratio, despite theincrease in fixed costs, including rises in R&D expenses and personnel costs. Ordinary income amounted to ¥23,178 million, up ¥7,082
million year on year. Under extraordinary income, the Company recorded gain on sales of investment securities, reflecting the sale ofheld stocks. As a result, income before income taxes totaled ¥23,942 million, and profit attributable to owners of parent totaled ¥18,815
million, up ¥6,693 million compared with the previous fiscal year.

4

Consolidated

SCREEN Holdings Co., Ltd.

Financial Results by Business Segments
Performance by reportable segment is explained below.
The Semiconductor Solutions (SE) Segment
In the SE segment, sales to logic chip manufacturers and foundries decreased year on year, but those to memory and image sensor
manufacturers went up. By product, overall sales of cleaning equipment were up year on year, reflecting strong sales of batch-type
cleaning equipment. Sales of coater/developers for sub-200mm wafers also increased. By region, sales to the United States and Europe
fell, but sales in Taiwan and Japan rose. As a result, net sales in this segment amounted to ¥165,801 million, up 5.3% year on year.
Operating income in this segment came to ¥18,715 million, up 18.9% from the previous fiscal year, reflecting an improvement in thevariable cost ratio and the increase in net sales, despite an increase in fixed costs, including R&D expenses and personnel costs.
The Graphic and Precision Solutions (GP) Segment
In the GP segment, due to increased sales in Japan with efforts to further penetrate the print on demand (POD) equipment market as wellas the depreciation of the yen, sales of graphic arts equipment increased year on year. Sales of printed circuit board (PCB)-related
equipment were roughly flat year on year, as sales of mainstay direct imaging systems grew in China although those fell in Japan. As aresult, net sales in this segment came to ¥61,279 million, up 10.0% year on year. This segment posted operating income of ¥3,169
million, an increase of 11.6% from the previous fiscal year, reflecting the increase in net sales, despite a rise in the variable cost ratio due
to changes in the product mix and an increase in fixed costs, including R&D expenses and personnel costs.
The Finetech Solutions (FT) Segment
In the FT segment, sales of production equipment for small- and medium-sized LCD panels in Taiwan and Japan increased significantly
year on year. As a result, net sales in this segment amounted to ¥31,589 million, up ¥7,815 million, or 32.9%, year on year. Reflecting
the increase in net sales, this segment posted operating income of ¥2,748 million, a significant increase from operating income of ¥339
million in the previous fiscal year.
OutlookOverall economic conditions in the coming year are expected to continue to gradually improve. While wariness due to economic
deceleration in China and resource-exporting countries is growing, particularly with regard to its effects on the global economy andfinancial markets, ongoing monetary easing in developed countries is expected to help ensure stability.
In the SE segment, capital investment by semiconductor manufacturers is expected to be steady, reflecting growing demand for
AI-related devices, sensors, data servers and other products related to the Internet of Things (IoT) and big data. In the GP segment, the
SCREEN Group will work to further strengthen its sales framework through such measures as promoting strategic tie-ups with partnercompanies in order to expand its POD equipment market share. In the FT segment, in addition to ongoing capital investment inproduction equipment for televisions in China, investment in small- and medium-sized LCD panels in Taiwan and Japan is expected toincrease. In Other, the Group will strive to expand sales in new business fields.
In terms of earnings, the Group will work to bolster profitability by reducing variable costs and controlling fixed costs, aiming toachieve an operating income to net sales ratio of 10% or above, a major target of the three-year medium-term management plan,
Challnege2016.

Forecast of the consolidated business result for the fiscal year ending March 31, 2017
(Millions of yen)
The first half ending Sep. 30, 2016 Fiscal year ending Mar. 31, 2017

Net sales

129,500

265,000

SE

81,500165,500

GP

29,20060,000FT

18,00036,000

Other

800

3,500

Operating income

11,30027,000Ordinary income

11,10026,500

Profit attributable toowners of parent

8,200

20,500*The aforementioned forecasts are based on foreign currency exchange rate estimates of US$1.00 = ¥107 and EUR1.00 = ¥120. Business forecasts are also
made in accordance with currently available information and rational assumptions. However, it should be noted that actual results could differ significantly
due to a variety of factors.

5

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SCREEN Holdings Co., Ltd.

2. Financial Position

Status of assets, liabilities, and net assets
Total assets as of March 31, 2016 stood at ¥270,093 million, an increase of ¥20,577 million, or 8.2%, compared with March 31, 2015.
This was largely due to increases in notes and accounts receivable-trade and cash and time deposits, despite a decrease in investment
securities.
Total liabilities amounted to ¥149,805 million, up ¥11,801 million, or 8.6%, compared with the end of the previous fiscal year.
This was mainly attributable to increases in notes and accounts payable-trade and advances received. Interest-bearing debt decreasedby ¥40 million, or 0.1%, from March 31, 2015 to ¥39,636 million. Net interest-bearing debt, or interest-bearing debt minus cash andtime deposits, decreased by ¥6,772 million compared with the previous fiscal year-end to ¥7,264 million.
Total net assets amounted to ¥120,288 million, up ¥8,775 million, or 7.9%, from March 31, 2015. This was mainly attributable
to the increase in retained earnings as a result of the recording of profit attributable to owners of parent, despite decreases in valuationdifference on available-for-sale securities and foreign currency translation adjustment due to decreases in the market values of heldstocks and the appreciation of the yen.
As a result, the equity ratio as of March 31, 2016 stood at 44.3%.
Status of Cash FlowsThe status of cash flows during the fiscal year ended March 31, 2016 is as follows.
Net cash provided by operating activities amounted to ¥14,720 million, compared with ¥1,492 million used in operating
activities in the previous fiscal year. This was because the increase in income before income taxes, increases in notes and accounts
payable—trade, advances received and other inflows surpassed such cash outflows as increases in notes and accounts
receivable—trade and inventories.
Net cash used in investing activities amounted to ¥2,557 million, compared with ¥6,317 million used in investing activities in
the previous fiscal year. This was attributable to the purchase of property, plant and equipment, such as equipment for R&D, which
was partially offset by the sale of investment securities.
Net cash used in financing activities amounted to ¥2,845 million, compared with ¥3,822 million used in financing activities in
the previous fiscal year. This was largely attributable to the payment of cash dividends and acquisition of treasury stock.
As a result, cash and cash equivalents as of March 31, 2016 totaled ¥30,156 million, up ¥8,166 million from March 31, 2015.

Cash Flow Benchmarks

Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2016
Mar. 31, 2014
Mar. 31, 2015

Equity ratio (%)

36.7

32.8

37.2

44.4

44.3

Equity ratio (market capitalizationbasis) (%)

72.1

44.3

48.7

86.6

77.8

Debt repayment period (years)
Interest coverage ratio (times)

4.2
7.5

—
—

1.7
22.8

—
—

2.7
13.4

Notes:
Equity ratio = Equity / total assets
Equity ratio (market capitalization basis) = Market capitalization / total assets
Debt repayment period = Interest-bearing debt / operating cash flow
Interest coverage ratio = Operating cash flow / interest payments
1. Figures are calculated using consolidated financial results.
2. Market capitalization is calculated by multiplying the closing price at the end of the fiscal year by the number of shares outstanding at fiscal
year-end (excluding treasury stock)
3. Operating cash flow uses cash flow from operating activities as stated on the consolidated statements of cash flows.
4. Interest-bearing debt comprises all liabilities recorded on the balance sheet for which interest is paid. Interest payments use interest expenses
paid as stated on the consolidated statements of cash flows.

3. Basic Policy Regarding Appropriation of Profits, Cash Dividends for the Fiscal Year under Review and Cash Dividend
Forecast for the Fiscal Year Ending March 31, 2017
The SCREEN Group works to secure the retained earnings necessary for the sound maintenance of a financial base able to respond to
future changes in the business environment. Considering this aim together with such factors as progress made toward the targets set
under its three-year medium-term management plan Challenge2016 of an operating income to net sales of 10% or above and an equity
ratio of 50% or above as well as yearly in profit, the SCREEN Group aims for a total consolidated shareholder return ratio of 25%.
SCREEN Holdings (SCREEN HD) expects to distribute a fiscal year-end cash dividend of ¥12 per share for the fiscal year
ended March 31, 2016.
SCREEN HD currently anticipates a fiscal year-end cash dividend forecast of ¥70 per share for the fiscal year ending March 31,
2017.
Note that SCREEN HD is planning to implement a one-for-five consolidation of shares on its common stock effective October 1
2016, contingent on approval at the Company’s 75th ordinary general meeting of shareholders to be held on June 28, 2016. The
forecast per-share year-end dividend calculated using the number of shares before the consolidation of shares is ¥14.

6

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SCREEN Holdings Co., Ltd.

BUSINESS POLICY
1. Basic Business Policy
The SCREEN Group strives to increase corporate value and aims to gain prominence in new business fields while
maintaining its edge in existing business domains under a corporate philosophy comprising “Sharing the Future” (earning
the trust and meeting the expectations of society, while keeping an eye on the future), “Human Resource Development”(developing human resource through better work), and “The Pursuit of Technology” (pursuing original technology andmixing it with existing technology), and in line with the Management Grand Design, which sets out a vision of the
SCREEN Group and a long-term management plan to realize such vision. In addition, the Group adheres to a CSR Charter
that contains a Code of Conduct for all officers and employees, seeking to fulfill its corporate social responsibility andcontribute to the sustainable development of society.
2. Medium- to Long-Term Business Strategies and Issues
The SCREEN Group is implementing its three-year medium-term management plan, Challenge2016 (fiscal 2015–fiscal
2017).
In the fiscal year ending March 31, 2017, the final year of the plan, the SCREEN Group will continue working tofurther reduce variable costs and control fixed costs while aiming to complete earnings structure reforms and achieve
operating income to net sales of 10% or above, a key target of the plan. To strengthen its financial standing, the Group willraise its asset efficiency and continue to boost the equity ratio. Furthermore, the Group will work to accelerate theestablishment of businesses in new fields for future growth. To this end, the SCREEN Group will work to further bolster
sales of the new products introduced in each new business area to firmly establish their market positions while
aggressively pursuing coordinated activities with other companies under its open innovation strategy.
Through the initiatives of the three-year medium-term management plan, the SCREEN Group aims to steadily raise
ROE and maximize free cash flow while returning profits to shareholders, targeting a total consolidated shareholder return
ratio of 25% in line with its shareholder returns policy, and striving to increase corporate value.
The SCREEN Group will formulate the next three-year medium-term management plan in light of progress madeunder the current plan. Details will be announced as they are decided.

BASIC PREMISE ON ACCOUNTING STANDARDS
In consideration of possibilities that these consolidated financial statements may be subject to trend analysis and/or
comparison with other companies’ financial statements, the SCREEN Group’s policy is to produce its consolidated financial
statements according to Japanese accounting standards.
The SCREEN Group’s policy regarding harmonization with IFRS is to apply appropriate measures based on
consideration of domestic and overseas economic situation(s)7Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED BALANCE SHEETS(Millions of yen)Mar. 31,Mar. 31,

2015

2016

Current assets:
Cash and time deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets¥25,640
53,461
1,592
37,297
26,132
6,880
4,793
5,363
(795)
160,366¥ 32,371
65,017
2,570
40,95528,657
7,020
5,156
7,562
(789)
188,521

Noncurrent assets:
Property, plant and equipment:
Buildings and structures
Accumulated depreciation
Buildings and structures (Net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (Net)Land
Lease assets
Accumulated depreciation
Lease assets (Net)Construction in progress
Other
Accumulated depreciation
Other (Net)
Total property, plant and equipment

52,804(37,798)
15,00537,764(27,160)
10,603
9,939
6,705(3,379)3,325
1,469
12,045(9,782)
2,262
42,60653,578(38,575)
15,00338,624(26,399)
12,225
9,766
6,613(3,729)2,884
1,073
12,270(9,844)2,425
43,378

Total intangible assets

37
2,451
2,489

34
2,360
2,394

Investments and other assets:
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

36,384
14
4,747
292
3,373
(758)
44,05489,150249,516

28,539
13
4,279
495
3,107
(636)
35,79981,572270,093

ASSETS

Intangible assets:
Lease assets
Other

8

Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED BALANCE SHEETS(Millions of yen)Mar. 31,2015

Mar. 31,2016¥ 62,382
—
3,679
—
397
2,374
3
—
—
126
4,557
18
19,21092,750¥ 59,523
10,536
4,079
13,600
411
4,430
6
1
1,044
72
4,564
2
22,584
120,857

Total liabilities

13,60019,066
2,934
8,357
716
114
48
416
45,253138,003—
18,986
2,559
5,988
737
103
48
524
28,948
149,805

Total shareholders’ equity

54,044
4,583
54,447(12,262)
100,81354,044
4,583
71,602(13,272)
116,957

12,586(1,395)(1,140)10,051
648
111,513249,516

8,364(3,911)(1,761)
2,692
638
120,288
270,093

LIABILITIESCurrent liabilities:
Notes and accounts payable-trade
Electronically recorded obligations - operating
Current portion of long-term loans payable
Current portion of bonds payable
Lease obligations
Income taxes payable
Notes payable-facilities
Electronically recorded obligations - facilities
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

9Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Apr.1, 2014- Mar.31, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
House rent income
Compensation income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary loss
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Office transfer expenses
Loss on valuation of investments in capital
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10

Apr.1, 2015- Mar.31, 2016

¥ 237,645
165,191
72,45455,286
17,167¥ 259,675
178,677
80,99857,44023,557

156
463
207
69
110
516
1,524

128
532
169
178
307
457
1,775

1,019
850
145
579
2,595
16,096

1,095
253
302
503
2,154
23,178

90
181
271

1,006
—
1,006

181
—
—
364
40
586

226
13
1
—
—
241

15,781
3,418
163
3,582
12,19977
12,122

23,942
5,922
(922)
4,999
18,943
128
18,815

Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

Apr.1, 2014- Mar.31, 2015
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests11

Apr.1, 2015- Mar.31, 2016

¥ 12,199¥ 18,943

5,498
3,452
2,867
11,81824,017(4,222)(2,532)(620)(7,376)
11,56723,92591

11,456110

Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Fiscal year ended March 31, 2015
(Millions of yen)

Balance, as of beginning of current period

CapitalCapitalShareholders’ equity
Retained

Treasurystock

surplusearnings

stock¥ 54,044

Cumulative effects of changes inaccounting policies
Currently stated balance, as of beginningof current period¥ 4,583¥ 41,824

Total
shareholders'equity¥ (12,251)

1,213
54,044

4,583

43,037¥ 88,2011,213(12,251)

89,414

Increase (decrease) during the period
Dividends from surplus

(712)

(712)

Profit attributable to owners of parent

12,122

12,122Acquisition of treasury stock

(11)

(11)

Other
Total changes during the period
Balance, as of end of current period——

11,410(11)

11,39854,044

4,583

54,447(12,262)

100,813

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeNon-controllinginterests

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance, as of beginning of current period
Cumulative effects of changes inaccounting policies
Currently stated balance, as of beginningof current period¥ 7,089

Foreigncurrencytranslation
adjustment¥ (4,833)¥ (4,007)¥ (1,752)

¥ 649

—
7,089

(4,833)(4,007)(1,752)Total
net assets¥ 87,097
1,213

649

88,311

Increase (decrease) during the period
Dividends from surplus

—

(712)

Profit attributable to owners of parent—

12,122Acquisition of treasury stock

—

(11)

Other

5,497

3,438

2,867

11,803(0)11,802

Total changes during the period

5,497

3,438

2,867

11,803(0)

23,201

Balance, as of end of current period

12,586(1,395)(1,140)10,051

648

111,513

12

Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Fiscal year ended March 31, 2016
(Millions of yen)

Balance, as of beginning of current period

CapitalCapitalShareholders’ equity
Retained

Treasurystock

surplusearnings

stock¥ 54,044

Cumulative effects of changes inaccounting policies
Currently stated balance, as of beginningof current period¥ 4,583¥ 54,447

Total
shareholders'equity¥ (12,262)¥ 100,813—

54,044

4,583

54,447(12,262)

100,813

Increase (decrease) during the period
Dividends from surplus(1,661)(1,661)

Profit attributable to owners of parent

18,815

18,815Acquisition of treasury stock(1,010)(1,010)

Other—

Total changes during the period
Balance, as of end of current period——

17,154(1,010)16,14454,044

4,583

71,602(13,272)

116,957

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeNon-controllinginterests

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance, as of beginning of current period
Cumulative effects of changes inaccounting policies
Currently stated balance, as of beginningof current period¥ 12,586

Foreigncurrencytranslation
adjustment¥ (1,395)¥ (1,140)¥ 10,051

¥ 648

Total
net assets¥ 111,513—
12,586(1,395)(1,140)10,051—
648

111,513

Increase (decrease) during the period
Dividends from surplus—(1,661)

Profit attributable to owners of parent—

18,815Acquisition of treasury stock—(1,010)Other(4,222)(2,516)(620)(7,359)(9)(7,368)

Total changes during the period(4,222)(2,516)(620)(7,359)

(9)

8,775

Balance, as of end of current period

8,364(3,911)(1,761)

2,692

638

120,28813

Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions of yen)

Apr.1, 2014- Mar.31, 2015
Cash flow from operating activities:

Income before income taxes
Depreciation and amortization
Impairment loss
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss on valuation of investments in capitalGain on bargain purchase
Office transfer expenses
Loss on retirement of non-current assets
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on order received
Interest and dividends income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other current liabilities
Other, net¥

SubtotalInterest and dividends income received
Interest expenses paid
Contribution in connection with the shift to a defined-contribution
pension plan
Income taxes paid
Net cash provided by (used in) operating activities

14

Apr.1, 2015- Mar.31, 2016

15,781
4,880
181
—
(90)
40
(181)
364
145
(328)
—
70
(514)
(556)
(620)
1,019
(9,167)
1,247(1,218)(5,993)(3,124)
(712)
1,223
613
(1,023)¥ 23,942
5,029
226
1
(992)
—
—
—
302
(113)
1,044
(53)
44
(15)
(661)
1,095
(12,918)(8,536)(1,506)
8,551
4,045
287
19,773675(1,097)(0)(0)(2,305)(1,492)(4,630)14,720Consolidated

SCREEN Holdings Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions of yen)

Apr.1, 2014- Mar.31, 2015
Cash flow from investing activities:

Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of treasury shares of subsidiaries
Other, net
Net cash used in investing activities

Cash flow from financing activities:

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Redemption of bonds
Net decrease (increase) in treasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Net cash used in financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

15¥

Apr.1, 2015- Mar.31, 2016

(659)
(4,655)
21
(199)
104
—

¥ 1,176(5,458)
98
(20)
2,510

(101)
(828)
(6,317)—(841)(2,557)(101)
15,400(3,250)(1,141)(14,000)
(11)
(712)
(5)
(3,822)—
4,000(3,679)(398)—(1,010)(1,661)(96)(2,845)

2,061(9,571)
31,562
21,990(1,151)
8,166
21,99030,156(23)

Consolidated

SCREEN Holdings Co., Ltd.

SEGMENT INFORMATION[Segment Information]
1. Segment Overview(1) Calculation Method for Reportable Segments
The SCREEN Group’s reportable segments are the business units for which the Company is able to obtain respective financial
information separately in order for the Board of Directors to conduct periodic investigations to determine distribution of management
resources and evaluate their business results.
Although the SCREEN Group had adapted an internal company system by product or service it handles, an internal company was split
up in connection with change to holding company structure.
Each subsidiary that assumed its business continuously develops business activities and establishes its own comprehensive strategy, forboth Japan and overseas markets, in accordance with the products it handles.
Consequently, the SCREEN Group has created three business segments for reporting— “Semiconductor Solutions (SE),” “Graphic andPrecision Solutions (GP)” and “Finetech Solutions (FT)”—categorized by products based on above subsidiaries.
(2) Products and Services of Reportable Segments
The SE segment develops and manufactures semiconductor production equipment and conducts sales and maintenance services. In the
GP segment, graphic arts equipment and PCB related equipment are developed, manufactured, sold and maintained. The FT segment
develops, manufactures, and markets FPD production equipment and others, and it also conducts maintenance services.

2. Measurement of Net Sales, Income (loss), Assets and Other in Reportable Segment
Income for each reportable segment is the amounts based on operating income.
Intersegment revenues and transfers are based on market prices.

16

Consolidated

SCREEN Holdings Co., Ltd.

SEGMENT INFORMATION
3. Net Sales, Income (loss), Assets and Other in Reportable Segment
Fiscal year ended March 31, 2015
Sales
(1)Sales to outside
customers(2)Intersegment
sales andtransfers
Total
Segment income (loss)
Segment assets
Other
Depreciation andamortization
Increase in the amount oftangible fixed assets andintangible fixed assets(Millions of yen)

Reportable segment
GP
FT

SE

Total

Other
*1

Total

Adjustments*2

Consolidated
*3

¥

—

¥ 237,645¥ 157,478¥ 55,676¥ 23,721¥ 236,876¥ 769¥ 237,645

0

29

52

82

9,612

9,695

(9,695)—

157,478
15,737
114,732

55,7062,840
53,28923,774339
20,623236,959
18,917
188,645

10,382(805)
4,979

247,341
18,111
193,624(9,695)(943)
55,892

237,645
17,167
249,516

2,620

624

58

3,303

119

3,423

1,457

4,880

4,221

865

172

5,259

137

5,397

1,261

6,658

Notes
*1 The “Other” category incorporates operations not included in reportable segments, including software development, planning and production of printed
matter, logistics operations and other businesses.
*2 Segment operating income (loss) adjustment of ¥ (943) million is the corporate profit(loss) not attributable to each reportable segment. Corporate profit(loss)
consists mainly general and administrative expenses not attributable to segments.
Segment assets adjustment of ¥55,892 million is the corporate assets not apportioned to each reportable segment. Corporate assets consist mainly of assets
not usually attributed to segments.
*3 Segment income (loss) is adjusted with operating income under consolidated statements of income.

Fiscal year ended March 31, 2016
Sales
(1)Sales to outside
customers(2)Intersegment
sales andtransfers
Total
Segment income (loss)
Segment assets
Other
Depreciation andamortization
Increase in the amount oftangible fixed assets andintangible fixed assets(Millions of yen)

Reportable segment
GP
FT

SE

Total

Other
*1

Total

Adjustments*2

Consolidated
*3

¥

—

¥ 259,675¥ 165,801¥ 61,231¥ 31,557¥ 258,590¥ 1,084¥ 259,675

0

48

31

80

11,554

11,634(11,634)—

165,801
18,715132,523

61,2793,169
50,33331,5892,748
28,372

258,670
24,633
211,230

12,638(1,137)
6,637

271,309
23,495
217,867(11,634)62
52,226259,675
23,557
270,093

2,490

645

88

3,224

183

3,408

1,621

5,029

3,570

823

180

4,574

245

4,820

1,531

6,351

Notes
*1 The “Other” category incorporates operations not included in reportable segments, including development, manufacturing and sales of equipment in life sciencebusiness and other, software development, planning and production of printed matter and other businesses.
*2 Segment operating income (loss) adjustment of ¥ 62 million is the Company’s profit(loss) not attributable to reportable segment.
Segment assets adjustment of ¥52,226 million is the corporate assets not apportioned to each reportable segment. Corporate assets consist mainly of assets not
usually attributed to segments.
*3 Segment income (loss) is adjusted with operating income under consolidated statements of income.

17

Consolidated

SCREEN Holdings Co., Ltd.

Consolidated Financial Highlights for the Fiscal Year Ended Mar. 31, 2016
(Figures less than one million yen have been omitted and other figures have been rounded.)

Net sales
Operating income[to net sales ratio]
Ordinary income[to net sales ratio]
Profit attributable to owners of parent[to net sales ratio]
Total assets
Net assets
EquityEquity ratio
Net assets per share
Interest-bearing debt
Net interest-bearing debt
Return on equity
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Depreciation and amortization
Capital expenditures
R&D expenses
Number of employees
Number of consolidated subsidiaries[Domestic][Overseas]
Number of non-consolidated
subsidiaries[Number of non-consolidated
subsidiaries accounted for by equity
method]FY2015
12months ended
Mar.31, 2015

FY2016
12months ended
Mar. 31, 2016

ResultResultAmount¥ 237,645¥ 259,675
17,16723,5579.1 %7.2 %16,09623,1786.8 %8.9 %12,122
18,815
5.1 %7.2 %249,516
270,093
111,513120,288
110,864
119,64944.4 %
44.3 %¥ 467.13¥ 506.68
39,677
39,636
14,036
7,264
12.3 %
16.3 %(1,492)
14,720(6,317)(2,557)(3,822)(2,845)
4,880
5,029
6,658
6,351
13,971
15,166
5,082
5,182
47
50
[24]
[26]
[23]
[24]

FY2017
6months ending 12months ending
Sept. 30, 2016 Mar.31, 2017

Difference
Percentage¥ 22,029
6,389
1.9 pt7,082
2.1 pt6,693
2.1 pt20,5778,775
8,785-0.1 pt¥ 39.55(40)(6,772)4.0 pt
―
―
―
149
(306)
1,194
100
3
[2]
[1]

9.3%
37.2%
―
44.0%
―
55.2%
―
8.2%
7.9%
7.9%
―
8.5%
-0.1%
-48.2%―

Forecast
129,500

Forecast
265,000

11,30027,0008.7 %11,10010.2 %
26,500

8.6 %
8,200

10.0 %
20,500

6.3 %

7.7 %

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

3.1%
-4.6%
8.6%
2.0%
―
―
―

2,900

6,000

5,500

9,000

8,600

16,800

―

―

―

―

―

―

―

―

1

―

-1

―

―

―

[1]

[―]

[-1]

―

―

―

18

Consolidated

SCREEN Holdings Co., Ltd.

Sales Breakdown (Consolidated)

FY2015(Millions of yen)
FY2017FY20166 months ended 12 months ended 3 months ended 3 months ended 6 months ended 3 months ended 3 months ended 12 months ended 6 months ending 12 months ending

Sept. 30, 2014 Mar.31, 2015 Jun. 30, 2015 Sept. 30, 2015 Sept. 30, 2015 Dec. 31, 2015 Mar. 31, 2016 Mar.31, 2016 Sep. 30, 2016 Mar.31, 2017
ResultSemiconductor
Solutions

Domestic
Overseas
Total

Graphic and Precision Domestic
Solutions
Overseas
Total

Graphic Arts
Equipment
PCB
Equipment
Finetech Solutions

Domestic
Overseas
Total
Domestic
Overseas
Total
Domestic
Overseas
Total

Other

Domestic
Overseas
Total

Intersegment sales

Domestic
Overseas
Total

Total

Domestic
Overseas
Total
Overseas
Ratio

ResultResultResultResultResultResultResultForecast

Forecast

10,576
65,21475,79026,494130,984
157,478

11,26923,437
34,707

9,523
37,75947,282

20,79361,19681,9909,367
22,69032,058

10,24541,50651,75240,407125,394
165,801──
81,500──
165,500

10,575
16,68827,264
9,075
13,88622,962
1,500
2,801
4,302

23,15732,54855,70620,09726,65046,747
3,060
5,898
8,958

6,707
8,067
14,774
6,154
6,533
12,687
553
1,533
2,086

7,740
8,847
16,587
7,039
7,042
14,081
700
1,804
2,505

14,447
16,91431,362
13,193
13,576
26,769
1,254
3,337
4,592

6,460
7,353
13,8135,924
6,550
12,475
535
802
1,338

6,691
9,412
16,103
6,024
7,036
13,060
667
2,375
3,043

27,59933,68061,27925,141
27,16352,305
2,457
6,516
8,974

─
─
29,200──
24,700
─
─
4,500

─
─
60,000──51,000
─
─
9,000

1,914
7,143
9,057

3,258
20,51523,774

732
5,576
6,308

920
8,708
9,628

1,653
14,284
15,937

1,211
5,698
6,909

1,542
7,199
8,742

4,406
27,182
31,589──
18,000──36,000

296
81
378

655
114
769

281
47
328

189
48
237

470
95
566

182
45
227

243
46
290

896
188
1,084

─
─
800

─
─
3,500

─
─
─

(82)
─
(82)

(3)
─
(3)

(17)
─
(17)

(20)
─
(20)

(5)
─
(5)

(54)
─
(54)

(80)
─
(80)

─
─
─

─
─
─

23,362
89,127
112,490

53,483
184,162
237,645

18,98837,12856,116

18,35555,36373,71937,34492,491
129,836

17,21635,78853,005

18,66858,16576,83473,229186,445259,675──
129,500──
265,000

79.2%

77.5%

66.2%

75.1%

71.2%

67.5%

75.7%

71.8%

─

─

Orders received & Order backlog (Consolidated)
FY2015(Millions of yen)

FY20163 months ended Mar. 31, 2015 3 months ended Jun. 30, 2015 3 months ended Sept. 30, 2015 3 months ended Dec. 31, 2015 3 months ended Mar. 31, 2016

Semiconductor
Solutions

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

15,73430,16745,901

14,82440,47955,303

7,645
30,462
38,108

11,19947,50458,703

12,27624,47636,752

13,951
34,22048,172

6,203
32,43538,638

10,78743,96554,751

5,278
42,824
48,102

5,819
45,282
51,101

Total

7,219
8,857
16,077
6,354
6,645
12,998
866
2,212
3,078

3,747
3,739
7,486
3,456
3,244
6,701
291
495
786

8,624
7,862
16,486
7,758
6,345
14,102
867
1,517
2,384

5,664
3,534
9,198
5,060
3,056
8,116
604
479
1,082

6,069
8,430
14,4995,494
6,904
12,399
575
1,525
2,100

3,993
3,116
7,109
3,515
2,917
6,432
478
199
677

6,118
8,348
14,4675,600
7,474
13,075
518
874
1,392

3,651
4,111
7,762
3,191
3,841
7,032
461
270
731

5,899
7,625
13,524
5,409
5,260
10,669
490
2,365
2,855

2,859
2,324
5,183
2,576
2,064
4,640
283
260
543

Domestic

1,744

2,739

7,082

9,089

1,337

Overseas

8,081
9,824

25,24427,983

5,052
12,13424,72033,809

4,750
6,087

9,505
20,76130,267

677
9,267
9,944

8,971
24,32933,3001,042
14,403
15,4458,471
31,53340,004

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

Total

24,697
47,10571,802

21,31069,46390,77323,352
43,376
66,72825,95275,758
101,710

19,68237,65557,33727,45058,09885,54812,99950,05063,04923,40972,405
95,814

12,21964,85377,072

17,14879,13996,287

Overseas
Ratio

65.6%

76.5%

65.0%

74.5%

65.7%

67.9%

79.4%

75.6%

84.1%

82.2%

Domestic
Overseas
Total

Graphic and Precision Domestic
Solutions
Overseas
Total

Graphic Arts
Equipment
PCB
Equipment
Finetech Solutions

Domestic
Overseas
Total
Domestic
Overseas

Total

Other

Domestic
Overseas
Total

Total

Domestic
Overseas19

Consolidated