I'm Asahi, General Manager, Corporate Headquarters of USHIO INC. I would liketo explain the details of our financial results for Q4 FY2022 based on thefinancial results materials disclosed on our website yesterday.
Now, please see page two of the slides.

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Today, I will explain the three main items here.
FY2022 revenues and earnings YoY increased. We plan higher revenues andlower earnings in FY2023. In addition, business segments will be significantly
changed from the next fiscal year. I will explain the details later on.
Please see page four.

23Here is the financial results summary.
Net sales increased by 17.6% to JPY175 billion. The increase in sales was mainly
due to the weaker yen in forex and contributions from optical and imaging
equipment.
Operating profit increased by 21.4% to JPY15.8 billion. In addition to net sales
increase, the increase is attributable to the effect of fixed cost reductions fromstructural reforms and other factors.
As for foreign exchange gain and loss, thanks to the depreciation of the yen against
the US dollar by JPY23 YoY, net sales increased by about JPY18 billion andoperating profit by about JPY2 billion.
Profit attribute to owners of parent increased by 8.7% to JPY13.6 billion.
Next, I will explain the details of operating profit gain and loss using a step chart, so
please see page six.

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This is the main breakdown of the JPY2.7 billion increase in operating profit.
It increased by JPY2.3 billion thanks to the effect of yen depreciation in foreignexchange.
In the business, it increased by JPY3 billion from an increase in sales oflithography equipment, despite lower sales of UV lamps and the impact ofinventory write-downs recorded in Q2.
On the other hand, there was a JPY2.5 billion increase in SG&A and otherexpenses, including additional investments in human resources and R&D.
Next, I will explain the financial results by business segment. Please see page
seven.

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Net sales increased in all segments, but operating profit decreased in imaging
equipment.
I will then explain the details of each segment on slide eight.

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First, let me explain our current business environment.
Major change from Q3 is uncertainty of general market conditions in theelectronics field.
The market for advanced semiconductor package solutions is expected tocontinue to see increased demand, but there is a current trend toward
investment postponement. The deterioration in the semiconductor and flat
panel display markets also seem to have bottomed out but is expected toremain flat for some time.
I will now explain the situation by segment. Please see page nine.

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Both sales and profit increased in the light source segment. Net sales increased
by 6.9% to JPY61.8 billion. As a result, operating profit increased by 8.8% to
JPY9 billion.
There were sales and profit loss contributors such as the decrease in sales oflight sources for LCD panel-related products due to a drop in stay-at-homedemand, a decline in sales of sodium lamps due to the shift to solid-state lightsources, and a loss on valuation of inventories.
On the other hand, sales of projector-related products for cinema and otherapplications and office automation applications increased thanks to the market
recovery from the pandemic, resulting in an increase in overall light source salesand profit.
Next, I will explain equipment business on slide 10.

9In optical equipment, net sales increased by 19.4% to JPY57.7 billion andoperating profit increased by 55% to JPY7.1 billion.
Demand for semiconductor packaging is on the rise, and sales of eachlithography equipment are increasing significantly. In addition, concerning lightsources for EUV mask inspection, existing light source maintenance services
revenues offset lower unit sales of the light source itself in an adjustment phase.
Overall optical equipment sales and profits increased significantly. The status ofpromising products is shown on slide 11, which you will see later.
In imaging equipment, net sales increased by 31%, but operating profit
declined by JPY500 million to a loss of JPY600 million due to soaring material
costs and other factors. In cinemas, sales of digital cinema projectors declined
due to the continued impact of procurement shortages of key parts throughout
the year. On the other hand, sales of general imaging increased after thepandemic for steady investment in events and other entertainment-relatedactivities.
Now, please see page 12.

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We fell short of our initial plan due to the impact of the deteriorating market
conditions for semiconductors and LCDs and the shortage of materials forimaging equipment. However, compared to the forecast made in Q3, our results
were better because of minimal impact of light source production adjustment.
I will explain these discrepancies by segment in the next page. Please see page
13 of the slides.

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The results for each segment are shown with the initial plan and the revised
forecast in Q3.
Light sources exceeded the revised forecast. Our revision was conservative due
to concerns about the impact of production adjustments caused by rapidly
deteriorating market conditions for semiconductors, LCDs, and other products,
but the results were higher than expected for only minor production
adjustments made.

On the other hand, Q4 results for optical equipment were lower than expected
due to the write-down of some inventories and the profit impact of product mix.
Please look at our earnings forecast for FY2023. Please see slide 15.

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First, we will set EBITDA and ROE as key KPIs along with the start of the new
medium-term management plan, which will be explained later today. Details will
be explained in the medium-term management plan section.
As for our full-year forecast for FY2023, we plan to increase net sales anddecrease profits.
While the problem of visual imaging-related materials is easing and sales willincrease, we expect business conditions to remain uncertain, especially in thesemiconductor market.
Under these circumstances, we will expand strategic investments such as R&D
and human resource investments for the achievement of the new medium-term
management plan and beyond.
The exchange rate assumptions for FY2023 are JPY135 to 1USD and JPY145 to
1EUR for the full year. The annual dividends will be maintained at JPY50 pershare.
Next, I will explain by segment. Please see slide 16.

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Before starting my explanation by segment, we have reporting segmentchanges from the conventional product-centered segments to market-centeredsegments from the Second Medium-Term Management Plan.
The detailed background and direction of the changes in segmentation will beexplained in the medium-term management plan section, but the relevance ofthe former segments is shown on this page.
Based on these changes, I will give my explanation from the next page. Pleasesee slide 17.

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FY2023 forecasts for each new segment are as shown.
In industrial processes, the market conditions for semiconductors, flat panels,
and other products in general remained uncertain, and no marked improvement
in market conditions could be expected. On the other hand, we expect a
decrease in both sales and profits as we expand strategic investments for theupcoming demand growth period.
In visual imaging, the shortage of key parts for cinema projectors and otherproducts is expected to gradually ease, and sales are expected to increase from
H2.
Detailed segment forecasts are shown on slide 18. I will explain only key points.

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In industrial processes segment, under the market environment assumptions
described here, sales of large field stepper for cutting-edge IC package
substrates and direct imaging lithography equipment increases slightly from theprevious fiscal year because the current trend of investment postponement.
EUV does not anticipate sales of the main unit at this time due to the ongoing
total costs of ownership issues, and we expect only maintenance revenues.
Visual imaging expects sales to increase because of easing material problems indigital cinema projectors and capturing replacement demand. Demand forgeneral imaging equipment is expected to be strong for events and theme parks,
while demand for cinema lamps is expected to be solid also because of therecovery of the Chinese market. On the other hand, sales of data projector
lamps are expected to decrease significantly due to the impact of the shift tosolid-state light sources and lower demand.
Next, please look at slide 19.

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As I explained earlier, we expect EBITDA to decrease by JPY2.6 billion, but on
the business front, we plan to increase strategic investments in humanresources and R&D to achieve our medium-term management plan and futurebusiness expansion, while growing mainly in the visual imaging business.
Finally, I would like to explain our shareholder returns. Please see page 20 of
the slide.

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We will continue to aim for stable dividends in FY2023 and beyond, although wewill explain this in detail in the medium-term management plan section.
In the first year of the new medium-term management plan, we will conduct alarge-scale share buyback of up to JPY30 billion and 20 million shares. Moredetails are found in the May 11 release and in the following medium-termmanagement plan section.
That concludes my explanation.

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