FY2019

Financial Results
USHIO INC.
May 13, 2020
This report contains forward-looking statements, including earnings forecasts, which are
based on information currently available to the Company and on certain assumptions
deemed to be reasonable. Please be advised that actual results may differ substantiallyfrom those forward-looking statements due to various factors.
* All figures in the material have been rounded down to the nearest billion yen.
* FY2019 starts from April 1st, 2019 through March 31st, 2020.
Copyright © 2008 Ushio Inc., All rights reserved

Copyright © 2008 Ushio Inc., All rights reserved

FY2019 Overview■ Impact of the Spread of the Novel Coronavirus (COVID-19)■ YoY FY2019 (Result):

Causal Analysis on Net Sales and Earnings Decreased to FY2019■ YoY for FY2020 (Full-year Forecast) and New Middle Term Management Plan：

Reasons on Postponing Announcement of FY2020 Forecast andNew Mid-Term Management Plan

Copyright © 2008 Ushio Inc., All rights reserved2Agenda

I.
II.
III.
IV.
V.

Impact of the Spread of the Novel Coronavirus (COVID-19)
Financial Results for FY2019
Forecast for FY2020 and New Mid-Term Management Plan
TopicsSupplementary Information

Copyright © 2008 Ushio Inc., All rights reserved3Impact of the Spread of the Novel Coronavirus (COVID-19)
Overview of Ushio Group measures
To prevent the spread of COVID-19 and maintain our normal production systems, Ushio is focusing on maintaining
the health and safety of our customers and employees.

 Domestic

 Teleworking basis, except for unavoidable on-site work for non-manufacturing division
 Manufacturing divisions have implemented measures to prevent spread of COVID-19 and maintain normal production systems
 Prohibit non-essential and non-urgent domestic and international business trips and holding/attending of events and seminars
attended by large numbers of people
 Actively use teleconference or telephone meetings for internal/outside meetings⇒ No infections yet Overseas

 Measures to maintain health and safety first in accordance with the policies of each country’s central government and regional
governments (teleworking, etc.)
 Avoid domestic/international transitions⇒ Several employees at overseas Group companies were infected with COVID-19 but they were properly addressed andthere has been no spread of infections and no effect on business activities.

Ushio will continue to take necessary measures to maintain the health and safety of our employees and their families, as a toppriority. For detailed information, please refer to our homepage.
https://www.ushio.co.jp/en/news/1001/2020-2020/500621.html
Copyright © 2008 Ushio Inc., All rights reserved

4Impact of the Spread of the Novel Coronavirus (COVID-19)
Latest status of Ushio Group’s business sites (Summary) For production sites, there is no significant impact on production or supply. Ushio Philippines, Inc.
has shut down certain production lines.
 For non-production sites, several offices in a certain area have been closed and doing teleworking
in accordance with the policies of each country’s central government and regional governments.
 At present, there is virtually no impact on production caused by a shortage or delay of parts.
Latest status of operations at major domestic sites
Sites

Latest Status

Production
Division

Ushio Inc. (Harima・Gotemba・Kyoto)
Ushio Lighting, Inc. (Fukusaki)
ADTEC Engineering Co., Ltd. (Nagaoka)

Measuring infection prevention,
maintaining normal production systems

Sales・
Administrative・
Research Division

Ushio Inc. (Tokyo・Yokohama・Kawasaki)
Ushio Lighting, Inc. (Tokyo・Osaka)
ADTEC Engineering Co., Ltd. (Tokyo)

Except for unavoidable on-site work,
teleworking basis

Copyright © 2008 Ushio Inc., All rights reserved

5Impact of the Spread of the Novel Coronavirus (COVID-19)
Latest status of operations at overseas sites
Area
Europe-America(USA, Netherlands, Germany, Poland, etc.)

Latest Status
Production: Measuring appropriate infection prevention, maintaining
normal production systems
Non-production: Teleworking basis

China

Production: Recovered almost to normal production level,
temporary operation decline after Chinese New Year

Asian Countries except China

Ushio Philippines: Shut down certain production lines(Product supply covered by other production sites)
Others: Teleworking and staggered working hours
in accordance with the regulations of each country

Christie Digital Systems

Production division:
Shenzhen Plant (China): Recovered to normal production level,
shut down from mid-January to mid-February
Kitchener Plant (Canada): Operating at approximately 30% level
Non-production division:
Headquarters (California, USA)＝＞Work day adjustment
Canada (Kitchener)＝＞Almost normal working level
Copyright © 2008 Ushio Inc., All rights reserved

6Impact of the Spread of the Novel Coronavirus (COVID-19)
Impact on business fields（Note）Information as of May 13, 2020

Visual Imaging Field Due to restrictions on outings worldwide, movie theaters have been closed and film distribution has beensuspended or postponed. Although some countries and regions have begun to show signs of restarting
economic activities, it will take time to resume full scale.
 In addition, there have been cancellations and postponements of events and temporary suspensions ofoperations of amusement parks and commercial facilities worldwide. Timing of resumption is entrusted tothe policy of each country and the situation continues to be uncertain.
These factors have a major impact on sales of Xenon lamps for cinema projectors and imaging equipment.
Electronics Field Due to decline of operations and temporary shut down of FPD and PCB manufacturers’ plants in China,
we experienced cancellations and postponements for delivery of some of our products.
 Restrictions on entry and movement in various countries caused delays of deliveries, installations, andacceptance inspections of some optical equipment.
These factors have affected sales of UV lamps for exposure and optical equipment.

Copyright © 2008 Ushio Inc., All rights reserved

7Impact of the Spread of the Novel Coronavirus (COVID-19)
FY2019 Performance Impact（Note）Information as of May 13, 2020

Net Sales: ▲10.0 billion yen, Operating Income: ▲3 billion yen※Values are approximate■Impact by segment

Light Source Business: Net Sales ▲3 billion yen- Decreased demand for replacement Xenon lamps for cinema projectors due to movie theaters closed worldwide- Decreased demand for UV lamps due to FPD factory operations temporary slowed down, decreased demand forlamps for projectors and lamps for OA

Imaging Equipment: Net Sales ▲4.5 billion yen- In cinema field, deliveries of cinema projectors were postponed due to movie theaters closed worldwide- In general imaging field, deliveries of imaging equipment were postponed or cancelled due to cancellations andpostponements of events, amusement parks and industrial facilities being temporarily closed due to restrictions
on entry and movement in various countries

Optical Equipment: Net Sales ▲2.5 billion yen- Sales of DI equipment (UV equipment) were postponed due to operation decline and temporary shut down
- Delays of some optical equipment sales due to delays of acceptance inspections of the products
Copyright © 2008 Ushio Inc., All rights reserved

8Impact of the Spread of the Novel Coronavirus (COVID-19)
FY2020 Performance Impact (Forecast)（Note）Information as of May 13, 2020

Visual Imaging Field If suspensions of operations at movie theaters, amusement parks and industrial facilities; event restrictions; anduncertainty continue, there are concerns regarding continuous impacts of Xenon lamps for cinema projectors andimage equipment on performance.
 If these situations become prolonged, there are concerns about delays in collection of accounts receivable. Anotherconcern regards the impact on sales of image equipment-related products resulting from declining investments.

Electronics Field
While demand will continue to grow as a result of commercialization of 5G and utilization of IoT and AI, and semiconductor,
FPD and PCB operations will recover to normal levels, there are concerns regarding: Decline in demand for replacement lamps due to sluggish consumption of final products, such as smartphones
 Delays in acceptance inspections caused by delays of installations and business negotiations due to restrictions on entry
and movement in various countries

Others Impact on sales of our products due to sluggish consumption of final products and operation decline due to worldwide
restrictions on outings
 Accelerating construction of mass production system of 222nm ultraviolet light antibacterial and viral inactivation
device to create a society which is free from pandemics and to help avoid collapse of the medical system
Copyright © 2008 Ushio Inc., All rights reserved

9

I.
II.
III.
IV.
V.

Impact of the Spread of the Novel Coronavirus (COVID-19)
Financial Results for FY2019
Forecast for FY2020 and New Mid-Term Management Plan
TopicsSupplementary Information

Copyright © 2008 Ushio Inc., All rights reserved

10Highlights of Financial Results for FY2019

Net Sales : 159.0 billion yen (▲6.1 billion yen YoY, ▲3.7%)
Achievement rate to Initial Plan: 93.5％, Revised Plan on March 27 th: 102.6％
Decline in sales of Light Source Business:- Slowdown in related markets and decreasing lamp demand due to conversion to solid state light sources- Sales decline of lamps for cinema due to COVID-19

Operating Income : 6.6 billion yen (▲1.8 billion yen YoY, ▲21.8%)
Achievement rate to Initial Plan: 66.6％, Revised Plan on March 27 th: 111.0％
Decline in profit of Light Source Business: Profitability decrease

Profit Attributable to Owner of Parent: 8.9 billion yen(▲2.3 billion yen YoY, ▲20.8%）
Achievement rate to Initial Plan: 78.0％, Revised Plan on March 27 th: 128.1％※FOREX（FY19）: US$1＝109 yen
Copyright © 2008 Ushio Inc., All rights reserved

11Summary of Financial Results
FY18（billion yen）

YoY

FY19

Changes

％

165.1

159.0

▲6.1

▲3.7

Operating Income

8.5

6.6

▲1.8

▲21.8

Operating Income (%)

5.2

4.2

▲1.0P

－

Ordinary Income

11.4

8.7

▲2.7

▲23.6

Profit Attributable to Ownersof Parent

11.3

8.9

▲2.3

▲20.8

EPS（yen）

88.85

73.25

▲15.60▲17.6

ROE（％）

5.3

4.3

▲1.0

－

Dividend per share（yen）

50

26

▲24

－

56.3

35.5

▲20.8

－

USD

111

109

▲2

－

EUR

129

121

▲8

－

Net Sales

Payment Ratio（％）
Forex（yen）

Copyright © 2008 Ushio Inc., All rights reserved

12

YoY Variation Analysis of Operating Income(billion yen)

＋2.9

※ Sales Impact excluding 「COVID-19 impact」

8.5

▲0.3

▲3.8

▲3.0

FOREX

＋1.8

6.6

SGA reduction and etc.
COVID-19 Impact+0.5Light Source
Business※(based on Gross Profit)

Equipment
Business※
Optical Equipment

Equipment
Business※

Imaging Equipment
SGA reduction and etc.

Imaging Equipment(based on Gross Profit)(based on Gross Profit)

Main factors of decline- Operational decline due to business environment- Demand decline due to conversion to solid state lightsources- Intensified market competition(Falling unit price, less replacement opportunities)

FY18
Operating Income

Measurement- Expanding to new application- Accelerating new product development- Executing additional cost reduction- (ex. Reorganizing production site)▲1.8 billion yen

FY19
Operating Income

Note: Figures other than “FOREX” exclude forex impact.
Copyright © 2008 Ushio Inc., All rights reserved

13

Financial Results by Business Segments(billion yen)

+2.5

▲0.3

0.3

+0.6

－

▲0.3

0.3

+0.6P

－

67.1

58.5

▲8.5

▲12.8

Operating Income

8.3

6.0

▲2.3

▲27.6

Operating Income (%)

12.5

10.3

▲2.1P

－

3.3
0.1

3.3
0.0

+0.0

+1.8

▲0.0

▲69.6

3.0

0.9

▲2.1P

－

0.3

0.2

▲0.0

▲28.2

Operating Income

Net Sales
Operating Income
Operating Income (%)

Elimination andcorporate％＋2.4

Net Sales

OthersChanges

97.0

Operating Income (%)

Light Source
Business

FY19

FY18

94.6

Net Sales

Equipment
Business

YoY

Operating Income

Copyright © 2008 Ushio Inc., All rights reserved

14

Business Segment Overview
Light Source Business

Equipment Business
Net Sales (billion yen)

94.6

2.3

YoY

97.0
3.0

＋2.4 billion yen(＋2.5%)Net Sales (billion yen)

YoY

67.1

＋0.7 billion yen

58.5(＋29.8%)▲8.5 billion yen(▲12.8%)

Imaging
Equipment

56.9

57.8

＋0.8 billion yen(＋1.5%)

55.8

Discharge
Lamp

47.9

▲7.8 billion yen(▲14.1%)

OpticalEquipment
35.3

36.1

＋0.8 billion yen(＋2.5%)

11.3
FY18

FY19

FY18

HalogenLamp

10.6▲0.7 billion yen(▲6.4%)

FY19

Note：Net sales indicates sales to unaffiliated customers.
Copyright © 2008 Ushio Inc., All rights reserved

15

Business Environment and Business Segment Overview
Electronics Field
Capital investment and operation are slowing down in markets related to semiconductor, FPD and PCB.

Business
Environment

・ Capital investments in large-size LCD market in China and new investment is shifting to OLED from LCD
・ LCD production slowed down due to oversupply of panels mainly in Korea
・ Smartphone-related market slowed down due to lower sales
・ Due to impact of COVID-19, operation slowed down in PCB and FPD markets in 4 th quarter

UV Equipment▲0.4 billion yen ▲2%Equipment
Business

Cure Equipment▲0.2 billion yen ▲3%

Others+1.5 billion yen +19%

Light Source
Business

UV Lamps▲2.2 billion yen ▲16%・ Sales increased of Large Field Stepper for latest IC package
・ Sales decreased of DI exposure system due to decline in smartphone demandand impact of COVID-19
・ Sales slightly decreased of LCD-related equipment in 2nd half after sales increased
in 1st half
・ Sales increased of EUV light source for mask inspection
・ Replacement demand declined due to LCD production adjustments
・ Unit price fell as LCD panel price dropped due to oversupply

Note: Indicated value (income, %) represents YoY comparison.
Copyright © 2008 Ushio Inc., All rights reserved

16

Business Environment and Business Segment Overview
Visual Imaging Field
Business
Environment

Equipment
Business

・ While installation of new movie theaters is slowing down, replacement demand at existing movie
theaters is gradually increasing
・ Expansion of solid-state light source projectors in cinema and general imaging field・ Sustained demand of high-end imaging equipment mainly in entertainment market
・ Due to impact of COVID-19, demand declined in cinema and general imaging field in 4 th quarter

Cinema＋3.5 billion yen +13%

General Imaging▲2.7 billion yen ▲9%Lamps for cinema▲3.3 billion yen ▲22%Light Source
Business

Lamps fordata projectors

・ Sales expansion of RGB laser projectors
・ Profitability below expectation
・ While sales of RGB laser projectors expanded, demand decreased
due to events being cancelled and postponed because of COVID-19

・ Lamp demand declined due to conversion to solid-state light sources
and price dropped due to intensified market competition
・ Replacement demand decreased as movie theaters closed worldwide
because of COVID-19
・ Lamp demand declined due to conversion to solid-state light sources▲1.6 billion yen ▲22%

Lamps for OA▲0.1 billion yen ▲2%
Note: Indicated value (income, %) represents YoY comparison.

・ Sales increased for value-added environment-friendly lamps,
while demand of OA equipment slowed down
Copyright © 2008 Ushio Inc., All rights reserved

17Summary of Financial Results FY2019
Full Year Plan

FY19

（billion yen）

Results

Initial Plan

Changesvs. Initial
Plan

Revision on
3.27

Achievement Rate (%)
vs. Initial
Plan

vs. Revisionon 3.27

vs. Revision on
3.27

159.0

170.0

155.0

▲10.9

+4.0

93.5

102.6

Operating Income

6.6

10.0

6.0

▲3.3

+0.6

66.6

111.0

Operating Income (%)

4.2

5.9

3.9

▲1.7P

+0.3P

-

-

Ordinary Income

8.7

12.0

7.5

▲3.2

＋1.2

72.8

116.5

Profit Attributable to
Owners of Parent

8.9

11.5

7.0

▲2.5

+1.9

78.0

128.1

EPS（yen）

73.25

94.17

57.17

▲20.9

+16.1

77.8

128.1

Capital Expenditures

8.2

8.5

-

▲0.2

-

97.3

-

Depreciation

7.1

6.7

-

＋0.4

-

107.2

-

R&D Expenses

10.1

11.5

-

▲1.3

-

88.5

-

USD

109

110

-

▲1

-

-

-

EUR

121

125

-

▲4

-

-

-

Net Sales

Forex（yen）

Copyright © 2008 Ushio Inc., All rights reserved

18

Financial Result by Sub-Segment FY2019(billion yen)Equipment

FY19

Results

Results

Full Year
Initial Plan

ChangesAchievement
Rate (％)

Imaging Equipment

56.9

57.8

59.0

▲1.1

98.0

OpticalEquipment

35.3

36.1
3.0

40.0
2.0

▲3.8

90.5

＋1.0

152.5

101.0
54.0
11.5
65.5

▲3.9

96.1

▲6.0

88.8

▲0.8

92.6

▲6.9

89.5

Illumination andothers2.3

Sub-total

94.6

Light Sources

Discharge lamps

55.8

Halogen lamps

11.3

Sub-total

67.1

97.0
47.9
10.6
58.5

Others

Net
Sales

FY18

Machinery forindustrial use and
other

3.3

3.3

3.5

▲0.1

96.1

165.1

159.0

170.0

▲10.9

93.5

8.5

6.6

10.0

▲3.3

66.6

Total
Operating Income

Copyright © 2008 Ushio Inc., All rights reserved

19

I.
II.
III.
IV.
V.

Impact of the Spread of the Novel Coronavirus (COVID-19)
Financial Results for FY2019
Forecast for FY2020 and New Mid-Term Management Plan
TopicsSupplementary Information

Copyright © 2008 Ushio Inc., All rights reserved20Forecast for FY2020 and New Mid-Term Management Plan

Postponing Announcement of FY2020 Forecast andNew Mid-Term Management Plan FY2020 Forecast
Once we are able to confirm the level of impact the spread of COVID-19 will have on
Ushio Group’s business activities and calculate promptly and reasonably, we willappropriately disclose the FY2020 forecast.

 New Mid-Term Management Plan (FY2020-FY2022)
As soon as the FY2020 forecast can be confirmed, we will appropriately disclose
our New Mid-Term Management Plan.

Copyright © 2008 Ushio Inc., All rights reserved

21

I.
II.
III.
IV.
V.

Impact of the Spread of the Novel Coronavirus (COVID-19)
Financial Results for FY2019
Forecast for FY2020 and New Mid-Term Management Plan
TopicsSupplementary Information

Copyright © 2008 Ushio Inc., All rights reserved

22

Shareholders Return

Share Buyback

Dividend per share and payout ratio
Due to business results being impacted by the spread of COVID-19 and theuncertain future business environment, Ushio decided to declare FY2019
annual dividend of 26 yen per share, down 24 yen from the forecast
announced on May 10, 2019. FY2020 annual dividend has not yet determined.
FY19（Plan）: 26 yen（35.5％）
FY20（Forecast） : Not yet determined
配当金
Dividend (yen)

30.7

33.2

50

FY10

35.5

22

FY11

22

FY12

FY13

24

FY14

26

FY15

26

FY16

26

FY17

FY18

Retirement of treasury Shares

26

Retirement of 6.6 million shares will be resolved
as of February 21st, 2020
（retain % of total number of issued share after retirement : 4.8%）

FY19

Ushio purchases own treasury shares, taking flexible approach.
We retain our treasury shares of approximately 5% of the total
number of issued shares at maximum and cancel the excess
portion of the treasury shares in each year.

27.8
26

22

30.2

30.3

31.6

(Max 8 million shares)
From Dec. 21st, 2018 to Dec. 20 th, 2019

（December 10 th, 2019）
Total amount of shares purchased: 10 billion yen
Total number of shares purchased: 7.2 million shares

47.2

40.1

Max 10 billion yen

Completion of Repurchase
56.3

配当性向
Payment Ratio (%)

As per notice concerning status of purchaseof treasury shares in December 2018予定
Plan
Copyright © 2008 Ushio Inc., All rights reserved

23

Care222 for Sterilization and Virus Inactivation Solution
Our Goal of Social Contribution
Safe and Secure Environment, which does not cause Pandemics
Uses 222nm ultraviolet (UV-C) light,
safe and secure to skin and eyes of humans and animals,
enables sterilization of germs and inactivation of viruses

New Environmental Hygiene Solution(To help avoid collapse of the medical system for COVID-19)

 Short-Term Target: in 2021

Improve hygiene level of public spaces by disinfection・elimination of infection source
ex: exam rooms・lobby・toilets in hospitals, nursing facilities, trains・airplanes・airports, etc.

 Long-Term Target: in 2025

Prevent nosocomial infection with drug-resistant bacteria (excluding viruses)＝＞operating room sterilization, operating equipment sterilization, etc.

 製品化・発売は2021年を予定。
Latest Status・Challenges
Unit type (demo unit)

Module type

●Ushio Strength
Exclusive licenseeof ultraviolet sterilizing process
which is harmless to humans
with Columbia University＋

High-quality excimer lamp・module production technology
acquired from LCD・semiconductor industry

 Preparation for mass production✔ Provide demo units to research institutions and medical organizations✔ Lamp development completed✔ Module in prototype stage: Specification development by usage environment✔ Capital investment for mass production / Continuous collecting of various types of data

【Challenges】
 Short Term: Collecting demonstrating experiment data for security guarantee＝＞cooperate with universities to accelerate data collection
 Long Term: Authorization for PMD Act, etc.
＝＞started activities to accelerate the authorization
Copyright © 2008 Ushio Inc., All rights reserved24Care222 for Sterilization and Virus Inactivation Solution●Ushio Care222 Specialty＜Ultraviolet light common feature＞
Mainstream of conventional germicidal lamp was 254nm mercury lamp
1. Enables sterilization of virus, such as norovirus, spore fungus
2. Does not produce drug-resistant bacteria
3. Non-contact, non-chemical, easy sterilization＜Unique features for Care222＞
1. Enables continuous irradiation under manned environment
・・・harmless wavelength to human eyes and skin
2. Mercury-free: Environment-friendly/reduction of environmental burdens
・・・ultraviolet lamp using excimer irradiation without mercury

Development of germicidal lamp, which is safe to human body
【Conventional Germicidal Lamp】 Prohibited because it was harmful
Keratitis-Become inflamed-Possibility tocause skin cancer【Newly Developed Light Source】
Continuous irradiation of 222nm light toexperimental mouse●Ushio Care222 Development History
1992 Ushio commercialized excimer lamp ahead of the world
2015 Ushio and Columbia University entered into exclusive university and research
agreements for ultraviolet disinfection method to reduce microbials
2018 Ushio and Kobe University achieved world’s first successful reduction of bacteria using
222nm irradiation that is harmless to normal human skin2020 No development of skin cancer or other symptoms; demonstrated continuous
irradiation of 222nm ultraviolet light (UV-C) to be safe ahead of the world※About COVID-19
Demonstrating experiment has started to confirm inactivation ofcoronavius in the United States.

Same level of sterilization
capability as previous lamp

Ultraviolet light did notreach to lower layer of skin
No symptom of skin cancer, no effect to eyes → Proved safety to human body

【Future Application】 Can be used and applied from medical
field to regular everyday life

Hand sterilization

Toilet sterilization

Public space sterilization
Ex: nursing home

Copyright © 2008 Ushio Inc., All rights reserved

25

I.
II.
III.
IV.
V.

Impact of the Spread of the Novel Coronavirus (COVID-19)
Financial Results for FY2019
Forecast for FY2020 and New Mid-Term Management Plan
TopicsSupplementary Information

Copyright © 2008 Ushio Inc., All rights reserved

26

Sales Expansion of Exposure Equipment for Latest IC Package Substrates
With IoT evolution, demand increased forservers for data centers processing highcapacity and high speed data processing

Cutting-edge & Next generation
package demand expansion

Large Field Stepper（UX-5） Equipment Package substrate
Sales
Production and sales
manufacturer

Chip MountingServer Installed

Data center market>20％ growth per year (self-survey）⇒ Expanding Adoption of
next-generation package substrates

CPU（Server）●UX-5 Strength（Feature）●World wide share 95％
High-end BGA substrate exposure market（self-survey）

High
Bandwidth
memory１．Large-area projection
Large Field Stepper (UX-5)
Sales Trend→ High productivity & low CoO

２．Non-contact mask work

FY19
Contributing to sales from 2H

After FY20
Sales unit expanding→ Yield enhancement

GPU
（AI）

●Increasing production capacity oflithography equipment (two times
compared to conventional capacity)

３．Deep focal depth→ Process margin & substrate warping

４．High Resolution/alignment accuracy→ Pitch miniaturization & process margin
Copyright © 2008 Ushio Inc., All rights reserved27

EUV Light Source for Mask Inspection
EUV light source for nextgeneration semiconductor
mass-production process

Sale
Maintenance

Development, Production, Sales

Mask Inspection equipment
manufacturer/
Research & development
institution

Semiconductor device
manufacturers
Next-generation semiconductor
mass-production needs with EUV
lithography technology evolution
Increase EUV light source needs forinspection and development

Contribution of
Ushio’s EUV light source●Ushio EUV Light Source
Development History
2000 EUV light source development started
2001 Established EUVA**Extreme Ultraviolet Lithography System Development Association●Ushio StrengthLong business experiencein semiconductor industry

Expect to expand business opportunities
of EUV light source for mask inspection●Sales Forecast

2013 Withdrew from Lithography related development＋
2016 Delivered EUV light source to TNO
Many years’ experience in EUV
2018 Delivered first EUV light source for inspection
technology（for test purpose)2019 Delivered and received first acceptance(Compact/High-brightness/High Power)
for mass production process

Equipment

2.7
billion yen

Expanding

Maintenance etc.

0.2 billion yen
FY18

FY19

After FY20

Copyright © 2008 Ushio Inc., All rights reserved

28

Projector Comparison
Lamp

Laser

Light Source

CinemaGeneralImaging

RGB Laser
CP4450-RGB
CP4440-RGB
CP4330-RGB
CP2320-RGB
Lumen (lm)<50,000

LaPH

Super HighPressure UV Lamp

Xenon Lamp
CP2308

No Lineup

No Lineup
Lumen (lm)<45,000

D4K40-RGB

CrimsonGS series

RoadieBoxer

Lumen (lm)<40,000

Lumen (lm)<30,000

Lumen (lm)<45,000

Lumen (lm)<30,000

Price

★★★★★

★★

★★

★

Life

★★★★★

★★★★

★★★★★

★★★★★

(Lamp replacement is necessary)(Lamp replacement is necessary)

Color

★★★★★

★★

★★★

★★
Copyright © 2008 Ushio Inc., All rights reserved29Improvement of Profitability on Imaging Equipment
新製品ＲＧＢレーザープロジェクター販売拡大
Structural
ReformSales Increase by New Product

映像装置

・Fixed Cost Reduction by production transfer to China
・Divestitures of unprofitable businesses

FY19
・Reorganize business bases
・Productivity improvement
・Control SGA level

SGA (vs FY18_4Q）
Headcount (FY17-FY19)

 ▲>30％

 ▲>20%CinemaGeneral Imaging• Improved productperformance• Launched a wide rangeof RGB projectors• Lineup expansion oflaser projectors（RGB, LaPH)

RGB laser projector
lineup to adjust to
various screen size

・Major order

Result・Production transfer to China  Completed as planned
・Divestitures of unprofitable businesses  Completed・Consolidation and closure of business bases  Completed

Measurement

FY18

HuaxiaFilm :200 units
Cineworld : 1,000 units
Cinema21 :100 units etc.

・Released Industry’s
first-lightest & high quality
RGB laser projector
・Added high luminance
LaPH model・Major order
Expo 2020 Dubai:

250 units etc.

・RGB ratio among all DCPs ・RGB + LaPH ratio
FY19_4Q：about 40%（YoY: about 10%）among all projectors
FY19_4Q：about 90%（YoY: about 50%)
Copyright © 2008 Ushio Inc., All rights reservedReference: Summary of Quarterly Financial Results
FY18(billion yen)

FY19

FY19

FY19

4Q - 4Q

1Q

2Q

3Q

4Q

1Q

Net Sales

39.9

42.6

39.7

42.7

38.9

43.0 38.0 38.9

Operating
Income

2.5

2.8

1.5

1.6

2.1

2.7

1.4

Operating Income
Ratio (%）

6.4

6.6

3.9

3.8

5.5

6.3

Ordinary Income

3.9

3.2

2.2

1.9

2.9

Profit Attributable to
Owners of Parent

2.2

1.2

2.1

5.6

EPS（Yen）

17.67

9.79

16.97

USD

108

111

EUR

130

129

Forex
(Yen)

2Q

FY18

3Q

4Q

Changes

FY19

4Q - 3Q％

Changes

▲3.7

▲8.9

＋0.8

＋2.3

0.3

▲1.2

▲80.7

▲1.1

▲79.1

3.9

0.8

▲3.0P

－

▲3.1P

－

2.8

2.5

0.3

▲1.6

▲83.4

▲2.2

▲87.3

1.2

1.7

5.7

0.1

▲5.5

▲97.4

▲5.6

▲97.5

44.54

10.02

14.43

47.87

1.22

▲43.32▲97.3▲46.65

▲97.5

113

110

111

108

109

109

▲1

－

＋0

－

130

126

124

120

120

121

▲5

－

＋1

－

Copyright © 2008 Ushio Inc., All rights reserved％31

Reference: Summary of Quarterly Financial Results by Business Segments
FY18(billion yen)

FY19

FY19

FY18

FY19

4Q - 4Q

FY19

4Q - 3Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Changes

％

21.8

24.8

21.9

26.0

22.7

27.1

22.9

24.2

▲1.7

▲6.7

+1.3

+5.8

Operating Income

0.0

0.1

▲0.4

▲0.0

0.0

0.9

0.4

▲1.1

▲1.1

－

▲1.5

－

Operating Income Ratio
（%）

0.0

0.7

▲2.1

▲0.1

0.4

3.5

1.8

▲4.6

▲4.6P

－

▲6.4P

－

17.3

17.2

17.1

15.5

15.4

14.9

14.3

13.7

▲1.7

▲11.5

▲0.6

▲4.3

Operating Income

2.5

2.3

1.8

1.6

1.9

1.6

1.0

1.3

▲0.2

▲15.7

+0.3

+33.3

Operating Income Ratio
（%）

14.8

13.4

10.8

10.6

12.5

11.2

7.3

10.1

▲0.5P

－

+2.9P

－

Net Sales

0.7

0.6

0.7

1.1

0.7

0.9

0.7

0.9

▲0.2

▲21.8

+0.1

+25.5

Operating Income

0.0

0.0

0.0

0.0

0.0

▲0.0

0.0

▲0.0

▲0.0

▲145.6▲0.0▲151.4

Operating Income Ratio
（%）

3.0

3.6

3.6

2.4

2.5

▲0.0

3.5

▲1.4

▲3.9P

－

▲4.9P

－

1Q

Changes％

Equipment Business
Net Sales

Light Source Business
Net Sales

OthersCopyright © 2008 Ushio Inc., All rights reserved32

Reference: Sales Ratio by Region
Others1.1%

FY18
Net Sales
165.1
billion yen

FY19
Net Sales
159.0
billion yen

JapanNorth America

Asia

Europe

21.9%

24.7%

42.5%

9.8%

Japan

North America

Asia

Europe

24.9%

22.3%

41.5%

9.4%

Others1.9%
Copyright © 2008 Ushio Inc., All rights reserved33

Reference : R&D Expenses/Capital Expenditures and Depreciation
Capital Expenditures (billion yen)
Depreciation (billion yen)

R&D Expenses（billion yen）
Ratio of R&D Expenses to net sales (%)

10.6

6.3

6.2

6.1

10.2

6.4

8.2

7.9

5.7
6.4

6.7

6.5

7.1

6.7

5.0

11.2

FY15

9.8

10.6

FY16

FY17

10.1

10.1

FY18

FY19
FY19

計画

FY15

FY16

FY17

FY18

FY19
FY19

計画
Copyright © 2008 Ushio Inc., All rights reserved34

Reference: Balance Sheet◆ Liabilities/Total Net Equity (billion yen)

◆Assets (billion yen)

274.9
85.6

60.6

39.4
4.4

40.3
4.2

62.4

57.1

8.1
43.0

8.4
44.2

Changes

Changes

306.6

▲31.7

21.6

274.9

▲31.7

47.9

18.7
28.9
26.4

▲2.9 Notes and AP▲18.9 Other Current Liabilities+2.6 Long-term Liabilities

213.2

200.7

▲12.5 Total Net Equity

2019/32020/3306.6▲24.9 Cash and Bank Deposits

23.8+0.8 Marketable Securities▲0.1 Notes and AR (Trade)▲5.2 Inventories+0.2 Other Current Assets+1.1 Property, Plant and Equipment
Intangible Assets

63.4

59.8

2019/32020/3●Turnover (month)▲3.6 Investments and Other Assets

2019/32020/3

Receivable-trade

3.0

3.0

Inventories

4.2

4.5

●Equity Ratio (%)

2019/32020/369.5

73.0

Copyright © 2008 Ushio Inc., All rights reserved

351Reference: Cash Flow(billion yen)
Operating CF + Investing CF＋5.5

Operating CF + Investing CF
+11.5
+2.7

▲3.9

74.6

+1.0

+8.8

Investing
Financing Effect ofActivities
Activities Exchange
rate change

66.0

74.6

+1.1

FY18

▲20.3

Operating Investing
Activities Activities

Operating
Activities

Cash and cash
equivalents at
beginning of
period+4.3

Cash and cash Cash and cash
equivalents at equivalents at
end of period
beginning of
period▲0.7

59.0

Financing Effect ofActivities Exchange
rate change

Cash and cash
equivalents at
end of period

FY19
Copyright © 2008 Ushio Inc., All rights reserved36

GlossaryAI

Artificial Intelligence

BGA

Ball Grid Array

COF

Chip on Film

CoO

Cost of Ownership

CPU

Central Processing Unite

DI

Direct Imaging

EUV

Extreme Ultraviolet Radiation

FPD

Flat Panel Display

GPU

Graphic Processing Unit

IoTInternet of Things

LaPH

Laser Phosphor

OA

Office Automation

OLED

Organic Light Emitting Diode

PCB

Printed-Circuit Board

RGB

Red Green BlueTNOThe Netherlands Organization of Applied Scientific Research

UV

Ultraviolet

5G

5 th Generation Mobile Communication System
Copyright © 2008 Ushio Inc., All rights reserved

37

Contact:
Corporate Planning Department, USHIO INC.
Email: ir@ushio.co.jp
https://www.ushio.co.jp/en/

Copyright © 2008 Ushio Inc., All rights reserved38