Dainippon Screen Mfg. Co., Ltd.
Tenjinkita-machi 1-1, Teranouchi-agaru 4, Horikawa-doriKamigyo-ku, Kyoto 602-8585, Japan

August 11, 2009

CONSOLIDATED FINANCIAL REPORTFOR THE FIRST QUARTER ENDED JUNE 30, 2009
Dainippon Screen Mfg. Co., Ltd. is listed on the First Sections of the Tokyo Stock Exchange
and Osaka Securities Exchange with the securities code number 7735.
(URL: http://www.screen.co.jp/)
Representative:
President Masahiro Hashimoto
For further information contact:
General Manager of Accounting Department Hirofumi Ota
Tel: +81-75-414-7155
Figures have been rounded down to eliminate amounts less than one million yen, except per share figures.

PERFORMANCE FOR THE FIRST QUARTER ENDED JUNE 30, 2009 (Apr. 1, 2009-Jun. 30, 2009)(1)Business Result(Millions of yen, except per share figures)

Percentage
ChangeOperating Income¥ 25,983-50.1 %¥ (6,141)

52,063—

Net SalesFirst quarter ended
Jun. 30, 2009First quarter ended
Jun. 30, 2008

Net Income
First quarter ended
Jun. 30, 2009First quarter ended
Jun. 30, 2008

(834)

Percentage
Change¥ (2,522)— %(3,052)—

Percentage
ChangeOrdinary Income

Percentage
Change— %¥ (7,446)—%—(1,169)—Net Income per
Share (Yen)

Diluted Net Income per
Share (Yen)¥ (10.63)¥(12.86)——

Note: Percentages shown for net sales, operating income, ordinary income and net income are the rate of increase or decrease from the previous corresponding period.

(2) Financial Position(Millions of yen, except per share figures)

Total Assets
Jun. 30, 2009
Mar. 31, 2009

¥ 256,879
246,917

Net Assets¥ 71,584
69,714Equity Ratio (%)

Net Assets per Share ofCommon Stock (Yen)

27.5 %
28.1¥ 297.62
292.12

Note: Equity as end of period
First quarter ended Jun. 30, 2009: ¥70,657 million
Fiscal year ended Mar. 31, 2009 ¥69,352 million

1

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Dainippon Screen Mfg. Co., Ltd.

CASH DIVIDENDS
Cash Dividends per Share
Record dateFiscal year ended
Mar. 31, 2009
Fiscal year ending
Mar. 31, 2010
Fiscal year ending
Mar. 31, 2010 (Forecast)End of First Quarter End of Second Quarter End of Third Quarter—

Year-end

Annual

—

—

¥0.00

¥0.00

—

—

0.00

0.00

—

Note: Revision of cash dividends in the first quarter under review: Yes

FORECAST OF BUSINESS RESULTS FOR FISCAL YEAR ENDING MARCH 31, 2010
(Millions of yen, except per share figures)(Percentage are the rate of increase or decrease from the previous corresponding period.)

Net Sales
Six months period ending
Sept. 30, 2009
Fiscal year ending
Mar. 31, 2010

Six months period ending
Sept. 30, 2009
Fiscal year ending
Mar. 31, 2010

Percentage Change

Operating Income

Percentage Change¥65,500-46.7 %¥ (14,000)—%

140,000-36.1(20,000)—

Ordinary Income

Percentage Change

Net Income

Percentage Change¥ (16,000)—%¥ (11,000)—%¥ (46.33)(23,500)—(15,000)—(63.18)Net Income per
Share (Yen)

Note: Revision of business forecast in the first quarter under review: Yes

OTHER(1) Changes in scope of consolidation and application of the equity method: No(2) Use of simplified accounting methods and accounting methods specific to the preparation of quarterly consolidated financial statements. : Yes
For further information, please refer to P.5, 4.Other, [Qualitative Information, Financial Statements and Other](3) Changes of accounting rules, procedures and presentations etc. for consolidated quarterly financial statements
1. Changes accompanied by revision of accounting standard etc.: No
2. Changes other than 1. : Yes
For further information, please refer to P.5, 4.Other, [Qualitative Information, Financial Statements and Other](4) Number of shares outstanding
1. Number of shares outstanding as of end of period (including treasury stock)Three months ended Jun. 30, 2009: 253,974,333 sharesFiscal year ended Mar. 31, 2009: 253,974,333 shares
2. Number of treasury stock as of end of period
Three months ended Jun. 30, 2009:
16,565,889 sharesFiscal year ended Mar. 31, 2008: 16,562,258 shares
3. Average number of shares outstanding
Three months ended Jun. 30, 2009: 237,410,098 shares
Three months ended Jun. 30, 2008: 237,415,218 shares*Notes concerning the use of business forecasts
The statements related to the outlook for future business results in this document are made in accordance with currently available information
and rational assumptions. However, it should be noted that actual results could differ significantly due to several factors. For further information, please refer
to P.4, 3.Qualitative information regarding consolidated business results forecasts.

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Dainippon Screen Mfg. Co., Ltd.

[Qualitative Information, Financial Statements and Other]
1. Qualitative information regarding the status of consolidated business results
During the first quarter of the fiscal year ending March 31, 2010, the three-month period from April 1, 2009 to June 30, 2009, the global economy
remained firmly in the doldrums, continuing the contraction triggered by the financial crisis dating back to the latter half of the previous fiscal year.
On the domestic front, despite visible movement toward recovery in exports and production in such fields as electronic components, an ongoing
downward spiral in both the employment situation and capital expenditures only served to further cloud persistent difficulties in predicting economic
conditions.
In Dainippon Screen Group’s business environment, inventories for LCD TVs and other digital home appliance products adjusted owing to anincrease in demand affected by measures taken in China and in Japan to stimulate consumption. There were also signs of utilization rate
improvements at factories operated by semiconductor and LCD panel manufacturers, although new capital investment remained constrained and thedire business environment continued.
Against this backdrop, Dainippon Screen Group posted consolidated net sales totaling ¥25,983 million for the first quarter of the fiscal year
ending March 31, 2010, a significant decline of ¥26,079 million, or 50.1%, compared with the same period of the previous fiscal year. On theearnings front, major cost reductions were implemented, including a business restructuring plan. However, the decline in sales had a significant
impact, resulting in an operating loss of ¥6,141 million, which was ¥5,306 million worse than in the same period of the previous fiscal year.
In non-operating expenses, together with an increase in interest expenses, the Group incurred equity in losses of affiliates and an exchange loss
on foreign currency transactions. These resulted in an ordinary loss totaling ¥7,446 million, a deterioration of ¥6,276 million compared with thesame period of the previous fiscal year.
Under extraordinary income, Dainippon Screen posted a gain on step adjustment and a gain on negative goodwill from the incremental
acquisition of SOKUDO Co., Ltd., an affiliate, which became a consolidated subsidiary.
Based on the aforementioned results, Dainippon Screen reported a net loss of ¥2,522 million for the first quarter, an improvement of ¥529
million compared with the same period of the previous fiscal year.
The Electronic Equipment and Components Segment
In the Group’s Electronic Equipment and Components segment, sales of semiconductor production equipment to Taiwan rose from the same periodof the previous fiscal year, buoyed primarily by single-wafer cleaning equipment. However, the impact of constrained capital expenditures bysemiconductor manufacturers was the reason for sluggish sales to other regions, unchanged from the latter half of the previous fiscal year. In FPD
production equipment, extremely limited capital expenditures by LCD panel manufacturers spurred sales of Dainippon Screen Group products to fallsignificantly compared with the same period of the previous fiscal year. In other electronic equipment, capital expenditures by printed circuit board(PCB) manufacturers remained stagnant, and sales declined compared with the same period of the previous fiscal year. As a result of theaforementioned, net sales in the Electronic Equipment and Components segment declined ¥19,215 million, or 51.6%, year on year to ¥17,993
million, while the segment posted an operating loss totaling ¥5,000 million, ¥3,632 million worse than the same period of the previous fiscal year.
The Graphic Arts Equipment Segment
The impact of the financial crisis on the Graphic Arts Equipment segment depressed sales of computer-to-plate (CTP)-related equipment in Japan,
Europe and North America. Coupled with this, sales of print-on-demand (POD) products and large-format inkjet printers also fell year on year. As aresult, sales in the Graphic Arts Equipment segment fell ¥6,671 million, or 46.3%, year on year to ¥7,745 million. An operating loss of ¥999 million
was posted, compared with operating income of ¥492 million in the first quarter of the previous fiscal year.
The Other Segment
Sales in the Other segment fell ¥192 million, or 44.1%, year on year to ¥243 million. This segment posted an operating loss of ¥140 million,
compared with ¥41 million in operating income recorded in the same period of the previous fiscal year.

3

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Dainippon Screen Mfg. Co., Ltd.

2. Qualitative information regarding changes in consolidated financial position
As of June 30, 2009, total assets stood at ¥256,879 million, an increase of ¥9,961 million, or 4.0%, compared with March 31, 2009. Under
current assets, trade notes and accounts receivable declined ¥15,451 million, while cash and time deposits rose ¥24,371 million. Under fixed
assets, investments in securities increased ¥4,894 million, attributable to the rise in market prices of Dainippon Screen’s shareholdings.
Total liabilities increased ¥8,091 million, or 4.6%, to ¥185,295 million compared with the previous fiscal year-end. Under current liabilities,
trade notes and accounts payable declined ¥15,855 million, although in the case of long-term liabilities, entering into a syndicated term loan toobtain financing increased long-term debt by ¥28,887 million. Interest-bearing debt increased ¥28,432 million, or 27.7%, compared with March
31, 2009, amounting to ¥131,014 million.
Equity, the balance of net assets less minority interests, stood at ¥70,657 million, an increase of ¥1,304 million, or 1.9%, compared with
March 31, 2009. This was attributable to an upswing in net unrealized holding gains on securities due to the appreciation in market values ofstockholdings and a decrease in retained earnings owing to net losses in the period under review.
As a result, the equity ratio fell 0.6 percentage points from 28.1% as of the end of the previous fiscal year to 27.5%.
Status of Cash FlowsNet cash used in operating activities amounted to ¥6,063 million, compared with ¥3,081 million provided by operating activities in the same
period of the previous fiscal year. Contributing factors included a loss before income taxes, a decrease in accounts payable and other outflows,that together with a gain on step adjustment, a gain on negative goodwill and other non-cash income exceeded cash inflows including decrease indepreciation and amortization and trade notes and accounts receivable as well as a decrease in inventories.
Net cash provided by investing activities amounted to ¥3,777 million, compared with net cash used in investing activities of ¥2,950 million
in the same period of the previous fiscal year. This was attributable to the posting of income from acquisition of shares of a newly consolidated
subsidiary in line with SOKUDO Co., Ltd. becoming a consolidated subsidiary, as well as proceeds from sale of property, plant and equipment.
Net cash provided by financing activities totaled ¥26,813 million, compared with ¥5,116 million provided by financing activities in theprevious fiscal year. Contributing factors included the repayment of short-term debt and long-term debt. On the other hand, financing was
obtained through long-term borrowing from the syndicated term loan and sale and leaseback of assets.
As a result of the above, cash and cash equivalents as of June 30, 2009 increased ¥24,788 million compared with the end of the previous
fiscal year, to ¥49,899 million.

3. Qualitative information regarding consolidated business results forecasts
In May 2009, when the financial results for the fiscal year ended March 31, 2009 were announced, the projections had not yet been made forcapital investment trends among semiconductor and LCD panel manufacturers, Dainippon Screen’s principal customers. Because of the
difficulties involved in properly calculating forecasts, business result projections for the fiscal year ending March 31, 2010 were left undecided.
However, in light of the situation for orders received in the first quarter, and taking into consideration the results of the business restructuring
plan currently being implemented, among other factors, it became possible to formulate a sales forecast for the current fiscal year, Dainippon
Screen has today announced first-half and full-year business results forecasts for the fiscal year ending March 31, 2010.
With regard to the future economic environment, factors including the recovery of individual consumption in China and economic
countermeasures taken in countries around the world offer some indication of a bottoming out of the global economic downturn. Nonetheless,the significant impact that the financial crisis has had on the real economy means that a sense of uncertainty still surrounds the timing of afull-fledged recovery.
In the business environment in which the Dainippon Screen Group operates, although increased demand for LCD TVs, netbooks andother products is expected to rise, a sense of uncertainty about the future is keeping in check an aggressive resumption of capital investment bysemiconductor and LCD panel manufacturers. Dainippon Screen therefore expects that the extremely harsh business conditions seem set tocontinue.
Buffeted by the sharp deterioration of the current business environment, the Dainippon Screen Group has undertaken a businessrestructuring plan that consists of business reforms, the streamlining of business organization and business sites, and a reduction in personnel. It
is Dainippon Screen’s objective to significantly lower its breakeven point for profitability through cost reductions. Dainippon Screen’ initiatives
to date include disengaging from underperforming business operations, temporarily suspending operations at certain factories, eliminating andintegrating marketing bases and promoting the reduction of personnel costs through voluntary retirement. At the present time over 80% of theplan’s objectives have been accomplished and Dainippon Screen is steadily advancing toward achieving profitability in the fiscal year ending
March 31, 2011.
Against this backdrop, it is expected that business results for the fiscal year ending March 31, 2010 will see sluggish sales of themainstay semiconductor production equipment, continuing on from the latter half of the previous fiscal year, together with a significant decline
in sales of FPD production equipment. In addition, sales of Graphic Arts Equipment are expected to shrink along with economic contraction.
On the earnings front, despite the expected cost reduction effect associated with the business restructuring plan, the enormous impact ofsignificantly declining sales is predicted to result in an operating loss.

4

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Dainippon Screen Mfg. Co., Ltd.

Business forecast(Millions of yen)Six months period ending Sept. 30, 2009
Net Sales
Operating Income
Ordinary Income
Net Income¥ 65,500(14,000)(16,000)(11,000)

Fiscal year ending Mar. 31, 2010

¥ 140,000(20,000)(23,500)(15,000)

The Dainippon Screen Group will continue to concentrate on its business restructuring plan and promote cost reductions, in concert withefforts secure orders and raise profitability.
Since we expect significant decrease in net sales and big losses as mentioned above, we regret that we will also be obliged to omit
dividends for the fiscal year ending March 31, 2010.
Note: The aforementioned forecasts are based on foreign currency exchange rate estimates of US$1.00 = ¥95 and EUR1.00 = ¥135. 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.

4. Other(1)Changes in significant consolidated subsidiaries (Changes in specified subsidiaries involving changes in scope of consolidation): None
(2)Application of simplified accounting methods and accounting methods specific to the preparation of quarterly consolidated financial statements.
a. Simplified accounting methods:
1) Calculation method for estimating bad debt losses on general receivables
Recognizing that no significant changes have arisen with regard to the bad debt loss ratios as of June 30, 2009 and March 31, 2009, theactual bad debt loss ratio as of March 31, 2009 has been used to calculate estimated bad debt losses on general receivables.
2) Inventory valuation methods
Regarding calculating the value of inventory at the end of quarterly consolidated fiscal periods, no physical inventory count is taken.
Instead, an inventory valuation is computed using a reasonable method based on the physical inventory taken for the prior consolidated
fiscal year.
3) Depreciation of fixed assets
Fixed assets depreciated using the declining balance method has been calculated based on the pro rata amount of depreciation for the fiscal
quarter derived from the depreciation amount for the fiscal year.
b. Accounting methods specific to the preparation of quarterly consolidated financial statements:
Calculation of income taxes
Income tax amount is calculated principally by multiplying reasonably estimated annual effective tax rate through the first quarter ended June
2009, with the effects of deferred taxes reflected, by the amount of year-to-date income before income taxes. When calculation using
reasonably estimated annual effective tax rate causes irrational results, income tax amount is calculated based on the legal tax rate. The
provision for income taxes is presented inclusive of the provision for income taxes―deferred.
(3)Changes in principles, procedures, and presentation etc. of accounting method related to the preparation of quarterly consolidated financial
statements:
The “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan [ASBJ] Statement No. 21 issued on
December 26, 2008), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22 issued on December 26,2008), the “Partial amendments to Accounting Standard for Research and Development Costs” (ASBJ Statement No. 23 issued on December
26, 2008), the “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7 issued on December 26, 2008), the “Revised
Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No. 16 issued on December 26, 2008) and the“Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ GuidanceNo. 10 issued on December 26, 2008) are allowed to be applied to business combinations or business divestitures occurred after the financial
period starting on or after April 1, 2009. Dainippon Screen applied these standards and guidance from this quarter.

5

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Dainippon Screen Mfg. Co., Ltd.

CONSOLIDATED BALANCE SHEETS(Millions of yen)Jun. 30, 2009

Mar. 31, 2009

Total current assets¥ 50,271
50,548476
36,71325,147
7,322
1,230
3,959
(1,477)
174,191¥ 25,899
65,999—36,20428,006
8,019
1,191
4,229
(1,359)168,190

Noncurrent assets:
Property, plant and equipment:
Buildings and structures
Machinery, equipment and vehicles
Other
Accumulated depreciation
Total property, plant and equipment

55,16630,827
29,919(66,042)
49,87155,09633,702
26,725(64,570)
50,954

Total intangible assets

1,654
1,654

1,750
1,750

Investments and other assets:
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

25,1007,578(1,516)
31,162
82,688
256,879

20,205
6,539(723)
26,02178,727
246,917ASSETS
Current assets:
Cash and time deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

Intangible assets:
Other

6

Consolidated

Dainippon Screen Mfg. Co., Ltd.

CONSOLIDATED BALANCE SHEETS(Millions of yen)Jun. 30, 2009

Mar. 31, 2009

¥ 26,930
35,392
14,999
7,822
2,497
455
217
7
3,730
5,834
96
12,782
110,767¥ 42,785
39,095
14,999
7,822
1,670
910
290
37
3,963
6,079
324
14,451
132,430

19,50042,354
8,447
560
126
43
3,494
74,527
185,295

19,50013,467
6,026
665
124
45
4,943
44,772
177,203

54,04430,1556,211(12,220)
78,19154,04430,155
8,733(12,219)
80,714

3,498(2)(11,029)(7,534)927
71,584
256,879

176(4)(11,534)(11,362)361
69,714
246,917

LIABILITIESCurrent liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds with subscription rights to shares
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Notes payable-facilities
Provision for directors' bonuses
Provision for product warranties
Provision for business structure improvement
Provision for loss on order received
Other
Total current liabilities
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on guarantees
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

7

Consolidated

Dainippon Screen Mfg. Co., Ltd.

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on transfer of receivables
Foreign exchange losses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on step acquisitions
Gain on negative goodwill
Gain on change in equity
Reversal of provision for loss on guarantees
Other
Total extraordinary income
Extraordinary loss
Business structure improvement expenses
Loss on valuation of inventories
Total extraordinary loss
Loss before income taxes
Income taxes
Loss before minority interests
Minority interests in income (loss)
Net loss

8

Apr.1, 2008 – Jun. 30, 2008

Apr.1, 2009 – Jun. 30, 2009

¥ 52,063
39,00313,06013,894(834)¥ 25,983
22,531
3,452
9,593(6,141)

65
258
383
520
1,227

29
173
—
367
570

363
40
—
860
298
1,562
(1,169)

484
32
156
628
574
1,875
(7,446)

—
—
14
4
—
18

2,612
2,471
—
—
287
5,371

—
2,426
2,426

376
—
376

(3,577)(539)—
14(3,052)(2,451)78(2,529)(7)(2,522)

Consolidated

Dainippon Screen Mfg. Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions of yen)

Net cash provided by (used in) operating activities:
Loss before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in (earnings) losses of affiliates
Gain on negative goodwill
Loss (gain) on step acquisitions
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on order received
Business structure improvement expenses
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 accrued expenses
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Contribution in connection with the shift to a definedcontribution pension plan
Payment for business structure improvement expenses
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) 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 purchase of investments in subsidiaries
resulting
Payments for sales of investments in subsidiaries resulting
in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

9

Apr.1, 2008- Jun. 30, 2008

Apr.1, 2009 – Jun. 30, 2009

¥ (3,577)
2,161
245
860
—
—
(324)
(70)
(355)
—
—
(323)
363
18,613(8,568)(773)
1,443(1,416)(2,589)
(81)
5,607
325
(278)

¥ (2,451)
1,686
—
628
(2,471)(2,612)
(105)
(30)
(378)
(228)
376
(203)
484
15,6504,284
117(15,760)(349)(2,520)(381)(4,264)
206
(235)

(887)

(952)

—
(1,686)
3,081

(152)
(664)
(6,063)25(1,930)
55
(3)

(62)
(247)
1,813
(3)

—

2,615

—
(1,097)(2,950)

(5)
(331)
3,777

Consolidated

Dainippon Screen Mfg. Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions of yen)

Apr.1, 2008- Jun. 30, 2008
Net cash provided by financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sales and lease backs
Repayments of finance lease obligations
Net decrease (increase) in treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by 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
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period

10

Apr.1, 2009 – Jun. 30, 2009

8,969—
(1,112)—(359)
0(2,374)(7)
5,116(3,200)30,000(1,112)
1,626
(495)
(0)
—
(3)
26,813567
5,815
24,980260
24,78825,111(91)
30,703—49,899Consolidated

Dainippon Screen Mfg. Co., Ltd.

SEGMENT INFORMATION[Performance by Business Segment]
First quarter ended Jun. 30, 2008

(Millions of yen)
Electronic Equipment
Graphic Arts Equipment
and Components

Other

Total

Eliminations

Consolidated

Sales¥ 37,209¥ 14,417¥ 436¥ 52,063¥ —¥ 52,063

—

—

2,087

2,087

(2,087)—

Total

37,20914,417

2,523

54,150(2,087)52,063Operating income (loss)(1,368)

492

41

(834)

—

(834)

(1) Sales to outside customers(2) Intersegment sales and transfers

Notes
1. Segment classifications are by product lineup.
2. Principal products of each segment category are as follows:
Electronic Equipment and Components: Semiconductor production equipment, FPD production equipment, PCB production equipment, and maintenance andrepair services
Graphic Arts Equipment: CTP (Computer to plate), digital printing equipment, other printing and prepress related equipment, fonts, and maintenance and repair
services
Other: Lease, printing, logistics services and other businesses
3. Intersegment sales and transfers are primarily comprised of service sales by our logistics service subsidiary to Dainippon Screen Co., Ltd. and its Group
companies.
4. Changes in accounting policies(Changes in evaluation standards and methods for inventories)
Previously, Dainippon Screen and its domestic consolidated subsidiaries stated inventories held for sale in the ordinary course of business mainly at cost
determined principally by the first-in, first-out method or the specific identification method. Effective from the first quarter of the fiscal year ending March 31,
2009, however, Dainippon Screen and its domestic consolidated subsidiaries have adopted the “Accounting Standard for Measurement of Inventories” (ASBJ
Statement No. 9 issued on July 5, 2006). Accordingly, inventories are stated at cost determined principally by the first-in, first-out method or the specificidentification method (marking down the book value of balance sheet amounts in line with profitability decrease). Therefore, operating loss in the Electronic
Equipment and Components increased by ¥215 million, and operating income in the Graphic Arts and Other segment decreased by ¥27 million, ¥0 million,
respectively, compared with the previous accounting method.
(Application of the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”)
Starting from the first quarter under review, the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ Practical Issues Task Force No. 18 issued on May 17, 2006) has been adopted and the necessary adjustments have been made forconsolidation. Pursuant to the accounting policies, operating loss in the Electronic Equipment and Components segment decreased by ¥13 million and operating
income in the Graphic Arts segment decreased by ¥0 million, compared with the previous accounting method.
(Application of the “Accounting Standard for Lease Transactions”)
As for Dainippon Screen and its domestic consolidated subsidiaries, finance lease transactions without title transfer were formerly accounted for as operatingleases. On March 30, 2007, the ASBJ issued ASBJ Statement No. 13, the “Accounting Standard for Lease Transactions,” which revised the former accounting
standard for lease transactions issued on June 17, 1993, and ASBJ Guidance No. 16, the “Guidance on Accounting Standard for Lease Transactions,” whichrevised the former guidance issued on January 18, 1994. The revised accounting standard is permitted to be adopted for fiscal years beginning on or after April 1,
2008. Accordingly, the revised accounting standard has been applied from the first quarter ended June 30, 2009. The revised accounting standard requires that all
finance lease transactions shall be capitalized. In addition, leased assets related to finance lease transactions without title transfer are depreciated on astraight-line basis, with the lease periods as their useful lives and no residual value. Accordingly, operating loss in the Electronic Equipment and Components
decreased by ¥34 million, and operating income in the Graphic Arts segment increased by ¥3million, respectively, compared with the previous accounting
method. In the Other segment, on the other hand, operating income decreased by ¥12 million.

First quarter ended Jun. 30, 2009

(Millions of yen)
Electronic Equipment
Graphic Arts Equipment
and Components

Other

Total

Eliminations

Consolidated

Sales(1) Sales to outside customers¥ 17,993¥ 7,745¥ 243¥ 25,983¥ —¥ 25,983

—

—

1,177

1,177

(1,177)—

Total

17,993

7,745

1,421

27,160(1,177)25,983Operating income (loss)(5,000)

(999)

(140)

(6,141)—(6,141)(2) Intersegment sales and transfers

Notes
1. Segment classifications are by product lineup.
2. Principal products of each segment category are as follows:
Electronic Equipment and Components: Semiconductor production equipment, FPD production equipment, PCB production equipment, and maintenance andrepair services
Graphic Arts Equipment: CTP (Computer to plate), digital printing equipment, other printing and prepress related equipment, fonts, and maintenance and repair
services
Other: Printing, logistics services and other businesses
3. Intersegment sales and transfers are primarily comprised of service sales by our logistics service subsidiary to Dainippon Screen Mfg. Co., Ltd. and its Group
companies.

11

Consolidated

SEGMENT INFORMATION[Performance by Location]
First quarter ended Jun. 30, 2008
Japan

North America Asia & Oceania

EuropeTotal¥ 34,538¥ 6,622¥ 5,872¥ 5,029¥ 52,063(2)Intersegment sales and transfers

10,331

(27)

1,302

127

Total

44,869

6,595

7,175

Operating income (loss)(1,141)43615(1)Sales to outside customers

Eliminations¥

Consolidated—¥ 52,063

11,734(11,734)—

5,157

63,797(11,734)

52,063

(354)

(837)

2

(834)

Notes
1. Countries and regions are classified according to geographical proximity.
2. The countries and regions included in each segment are as follows:(1) North America: U.S.A.
(2)(3)

Asia & Oceania: Singapore, China, Taiwan, South Korea, Australia
Europe: U.K., Germany, the Netherlands, France, Italy, Ireland, Israel

3. Changes in accounting policies(Changes in evaluation standards and methods for inventories)
Previously, Dainippon Screen and its domestic consolidated subsidiaries stated inventories held for sale in the ordinary course of business mainly at cost determined principally by
the first-in, first-out method or the specific identification method. Effective from the first quarter of the fiscal year ending March 31, 2009, however, Dainippon Screen and its
domestic consolidated subsidiaries have adopted the “Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9 issued on July 5, 2006). Accordingly,
inventories are stated at cost determined principally by the first-in, first-out method or the specific identification method (marking down the book value of balance sheet amounts inline with profitability decrease). Accordingly, operating loss increased by ¥243 million in Japan, compared with the previous accounting method.
(Application of the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”)
Starting from the first quarter under review, the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”(ASBJ Practical Issues Task Force No. 18 issued on May 17, 2006) has been adopted and the necessary adjustments have been made for consolidation. Pursuant to the accounting
policies, operating income in Asia and Oceania decreased by ¥0 million and operating loss in Europe decreased by ¥13 million, compared with the previous accounting method.
(Application of the “Accounting Standard for Lease Transactions”)
As for Dainippon Screen and its domestic consolidated subsidiaries, finance lease transactions without title transfer were formerly accounted for as operating leases. On March 30,
2007, the ASBJ issued ASBJ Statement No. 13, the “Accounting Standard for Lease Transactions,” which revised the former accounting standard for lease transactions issued onJune 17, 1993, and ASBJ Guidance No. 16, the “Guidance on Accounting Standard for Lease Transactions,” which revised the former guidance issued on January 18, 1994. The
revised accounting standard is permitted to be adopted for fiscal years beginning on or after April 1, 2008. Accordingly, the revised accounting standard has been applied from thefirst quarter ended June 30, 2008. The revised accounting standard requires that all finance lease transactions shall be capitalized. In addition, leased assets related to finance leasetransactions without title transfer are depreciated on a straight-line basis, with the lease periods as their useful lives and no residual value. In addition, with respect to the depreciation
method on leased assets in connection with financial leases with no transfer of ownership, the straight-line method over the lease period equal to durable year with no residual value
has been adopted. Owing to this change, operating loss decreased by ¥25 million in Japan, compared with the previous accounting method.

First quarter ended Jun. 30, 2009
Japan

North America Asia & Oceania

EuropeTotal

Eliminations Consolidated

Sales(1)Sales to outside customers¥ 19,001¥ 2,904¥ 2,361¥ 1,715¥ 25,983(2)Intersegment sales and transfers

2,597

296

859

333

Total

21,599

3,201

3,220

Operating income (loss)(6,137)

(6)

113

¥

—

¥ 25,983

4,087(4,087)—2,049

30,070(4,087)25,983(157)(6,187)46(6,141)Notes
1. Countries and regions are classified according to geographical proximity.
2. The countries and regions included in each segment are as follows:(1)

North America: U.S.A.

(2)

Asia & Oceania: Singapore, China, Taiwan, South Korea, Australia(3)

Europe: U.K., Germany, the Netherlands, France, Italy, Ireland, Israel

12

Consolidated

Dainippon Screen Mfg. Co., Ltd.

SEGMENT INFORMATION[Overseas Sales]First quarter ended Jun. 30, 2008

Overseas sales(Millions of yen)

North America

Asia & Oceania

EuropeOther¥ 6,983¥ 22,158¥ 5,376¥ 1,608¥ 36,127
52,063

Consolidated net sales
Overseas sales as a percentage ofconsolidated net sales

Total

13.4 %

42.6 %

10.3 %

3.1 %69.4 %Notes
1. Overseas sales are sales to customers outside Japan by the Company and its consolidated subsidiaries.
2. Countries and regions are classified according to geographical proximity.
3. The countries and regions included in each segment are as follows:(1) North America: U.S.A., Canada(2) Asia & Oceania: Singapore, Malaysia, China, Taiwan, South Korea, Australia, India(3) Europe: U.K., Germany, the Netherlands, France, Belgium, Italy, Ireland, Northern Europe, Russia, Eastern Europe(4) Other: Africa, the Middle East, Latin America

First quarter ended Jun. 30, 2009
Overseas sales(Millions of yen)

North America

Asia & Oceania

EuropeOther¥ 3,305¥ 12,531¥ 1,992¥ 563

Consolidated net sales
Overseas sales as a percentage ofconsolidated net sales

Total¥ 18,392
25,98312.7 %

48.2 %

7.7 %

2.2 %

70.8 %Notes
1. Overseas sales are sales to customers outside Japan by the Company and its consolidated subsidiaries.
2. Countries and regions are classified according to geographical proximity.
3. The countries and regions included in each segment are as follows:(1) North America: U.S.A., Canada(2) Asia & Oceania: Singapore, Malaysia, China, Taiwan, South Korea, Australia, India(3) Europe: U.K., Germany, the Netherlands, France, Belgium, Italy, Ireland, Northern Europe, Russia, Eastern Europe(4) Other: Africa, the Middle East, Latin America

13

Consolidated

Dainippon Screen Mfg. Co., Ltd.

Consolidated Financial Highlights for the First Quarter Ended Jun. 30, 2009
(Figures less than one million yen have been omitted and other figures have been rounded.)

FY2009FY20103months ended 3months ended
Jun. 30, 2008 Jun. 30, 2009

Result¥ 52,063

Result¥ 25,983

Amount¥ (26,079)

Operating income(834)(6,141)(5,306)[to net sales ratio]-1.6 %Net sales

Ordinary income[to net sales ratio]
Net income[to net sales ratio](1,169)-2.2 %(3,052)

Percentage
Result-50.1% ¥ 219,049-22.0 pt

-23.6 %
(7,446)(6,276)-28.7 %
(2,522)――-26.5 pt

―

529

―

-3.8 pt-2.1 %(11,743)-5.4 %(38,190)(20,000)-21.4 %
(16,000)-24.4 %
(11,000)-14.3 %
(23,500)-16.8 %
(15,000)-16.8 %

-10.7 %

*

9,961

4.0%

246,917――

Net assets

118,742

71,584

*

1,870

2.7%

69,714――Equity118,01370,657

*

1,304

1.9%

69,352-0.6 pt―-17.4 %

(14,000)

256,879

27.5 % *―(4,509)Forcast140,000

298,976

39.5 %-9.7 %―

Forcast65,500Total assets

Equity ratio-5.9 %

FY2009FY201012months ended 6months ending 12months ending
Mar.31, 2009 Sept. 30, 2009 Mar.31, 2010

Difference

28.1 %――――Net assets per share¥ 497.08¥ 297.62*¥ 5.491.9%¥ 292.12――

Interest-bearing debt

74,965131,014*28,432

27.7%

102,581――

Cash flows from operating activities

3,081(6,063)――(24,593)――

Cash flows from investing activities(2,950)

3,777

―

―

(6,920)――Cash flows from financing activities

5,116

26,813――34,071――

Depreciation and amortization

2,161

1,686

(475)

-22.0%

8,413

3,500

7,400

712

233

(479)

-67.3%

4,007

1,200

3,000

R&D expenses

3,895

2,371

(1,524)-39.1%

16,0726,500

13,600

Number of employees

5,150

5,125

*

133

2.7%

4,992

―

―

46

47

*

―

―

47

―

―

Capital expenditures

Number of consolidated subsidiaries[Domestic]

[21]

[20]

*

[-1]

―

[21]

―

―

[Overseas]

[25]

[27]

*

[1]

―

[26]

―

―

4

2

*

-2

―

4

―

―

[4]

[2]

*

[-2]

―

[4]

―

―

Number of affiliates[Number of affiliates accounted
for by equity method]* show changes in amount from Mar. 31, 200914

Consolidated

Dainippon Screen Mfg. Co., Ltd.
Sales Breakdown (Consolidated)(Millions of yen)

FY2009FY20103months ended 3months ended 6months ended 3months ended 3months ended 12months ended 3months ended 6months ending 12months ending

Jun. 30, 2008 Sept. 30, 2008 Sept. 30, 2008 Dec. 31, 2008 Mar. 31, 2009 Mar.31, 2009 Jun. 30, 2009 Sept. 30, 2009 Mar. 31, 2010
ResultResultResultResultResultResultResultForecast

Forecast

Electronic Equipment and Components
Semiconductor
Production Equipment

Domestic

6,363

13,092

19,455

4,114

3,069

26,638

1,310

─

─

Overseas

17,467

21,121

38,588

14,114

10,407

63,11013,821

Total

23,83034,21358,044

18,22813,47689,74915,132

─
34,700─
72,500FPD Production
Equipment

Domestic

2,843

1,405

4,248

2,135

5,713

12,097

1,620

─

─

Overseas

9,311

15,19324,505

15,367

10,42750,300

620

Total

─
10,900─
21,000

Other Electronic
Equipment

Total

12,155

16,59828,75417,503

16,14062,3972,241

Domestic

721

1,963

2,685

1,641

1,678

6,006

351

─

─

Overseas

502

738

1,240

369

393

2,003

268

─
4,400

Total

1,224

2,702

3,926

2,010

2,072

8,009

620

─
1,800

Domestic

9,928

16,461

26,3897,891

10,46144,742

3,282

─

─

Overseas

27,28137,05464,33529,851

21,228

115,414

14,711

Total

37,20953,51590,72437,742

31,689160,156

17,993

─
47,400─
97,900Graphic Arts Equipment
Total

Domestic

5,593

6,892

12,485

6,520

6,821

25,827

4,170

─

─

Overseas

8,824

9,772

18,596

7,145

5,525

31,267

3,575

Total

14,417

16,66431,081

13,666

12,34757,0957,745

─
17,700─
41,400

Domestic

414

527

941

379

390

1,711

138

─

─

Overseas

22

53

75

10

85

105

─
700

Other
Total

436

581

1,017

─
379

400

1,797

243

─
400

Domestic

15,93523,88039,816

14,791

17,67372,281

7,591

─

─

Overseas

36,127

46,87983,00736,996

26,763

146,767

18,392

Total
Overseas
Ratio

52,06370,760122,823

51,78844,436

219,049

25,983

─
65,500─
140,000

69.4%

66.3%

67.6%

71.4%

60.2%

67.0%

70.8%

─

─

Total

Grand Total

Orders received & Order backlog (Consolidated)
FY2009FY2009FY2009FY2009FY20103months ended Jun.30, 2008

3months ended Sept.30, 2008

3months ended Dec.31, 2008

3months ended Mar. 31, 2009

3months ended Jun. 30, 2009

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

Orders received

Order backlog

Electronic Equipment and Components
Semiconductor
Production Equipment
FPD Production
Equipment
Other Electronic
Equipment

Total

Domestic

9,932

16,064

5,101

8,073

2,988

6,947

2,586

6,463

953

6,834

Overseas

19,97235,401

26,31940,5996,011

32,495

4,893

26,981

10,26824,652
31,486

Total

29,90451,46531,421

48,672

8,998

39,442

7,479

33,444

11,220

Domestic

12,12017,553

3,904

20,051

1,061

18,977-2,433

10,831631

9,840

Overseas

16,73853,093266

38,165603

23,4003,323

16,296264

15,939Total

25,78028,85970,646

4,169

58,216

1,664

42,377890

27,127894

Domestic

992

1,500

1,864

1,400

1,851

1,609

172

102

454

205

Overseas

490

268

615

145

423

199

273

78

435

244

Total

1,482

1,768

2,479

1,545

2,273

1,808

445

180

889

449

Domestic

23,044

35,117

10,86929,5245,900

27,533324

17,396

2,038

16,879Overseas

37,20088,762

27,20078,9097,038

56,0948,490

43,356

10,966

40,835

Total

60,246

123,879

38,069108,433

12,937

83,627

8,814

60,751

13,004

5,715

Domestic

5,222

908

7,928

1,943

6,204

1,627

6,694

1,498

3,750

1,078

Overseas

9,263

6,140

8,402

4,769

5,088

2,711

4,169

1,355

3,659

1,438

Total

14,485

7,048

16,330

6,712

11,292

4,338

10,864

2,853

7,408

2,516

Domestic

10

─

44

─

3

─

1

─

21

─
─

71

Overseas

53

─

─

11

─

104

─

Total

31

─

124

─

─
44

─

14

─

105

Domestic

28,27636,025

18,86831,467

12,14829,1607,021

18,8945,788

─17,957

Overseas

46,484

94,90135,65583,67812,12658,805

12,67044,711

14,72942,273

Total
74,762130,926
54,523
115,145
24,27387,965
19,69263,605
Overseas
62.2%
72.5%
65.4%
72.7%
50.0%
66.9%
64.3%
70.3%
Ratio
Notes: Orders backlog as end of June 30, 2009 includes adjustments of ¥1,954 million in line with additional consolidation of SOKUDO Co., Ltd.

20,517

60,230

71.8%

70.2%

Graphic Arts Equipment
Total
Other
Total

Grand Total

15

Consolidated