SCREEN Holdings Co., Ltd.

Good afternoon, Assembly 1. Now I would like to start the second quarter of items called by screen holdings for the year ending in March 2027. Thank you very much for your participation despite your busy schedule. And I am Nakamura, the Master of Assembly for today. I am the Deputy Head of the Investor Relations and Communications Strategy Division. And before the presentation, let me give you some housekeeping information. For this event, in addition to Japanese lines, we have the English line. We provide simultaneous interpretation into English for the investors from abroad. And your camera and microphone are disabled. After the presentation, when you go into the Q&A session, your microphones will be abled. And let me give you another notice about the Q&A session later. But when you ask questions, please refrain from mentioning specific customers or competitors by name or discussing any company-specific details. And this event is for the institutional investors and analysts. And as was notified, the attendees from the media, please refrain from asking questions. And recorded data, including the Q&A session, will be available on our website on November 2nd, Monday. So please find it for your views. And now, let me introduce you to today's presenters. Goto Masato, Representative Director, President and Chief Executive Officer. This is Goto. Thank you for your participation. And Ishimura Manabu, Managing Executive Officer, Chief Financial Officer. I am Ishimura. And Chiho Otobe, Senior Executive Officer, Head of Communication Strategy and Head of IR. This is IR. Thank you very much for your participation. Now, let me invite CFO Ishimura to give you the consolidated business results and forecast.

Mr. Ishimura, please.

So let me explain the summary of FY2027 second quarter earnings. So this is the summary of consolidated earnings. Net sales is plus 12.5%. Yoneer, and it was 308.4 billion yen. And OP was increased by 17.4%, and it was 54.5 billion. And OP margin increased by 0.8% Yoneer, so it's 17.7%. So as For entire company sales and profit both increased year-on-year and SPE sales and profits grew year-on-year and delayed projects already fully posted in second quarter and GA also booked sales and profit roles both in equipment and recurring business and record high orders were received. Other net income and ordinary income are shown here. So the ordinary income increased by 9.1 and it's 55.9 and net income increased by 5.8. So it's 37.7. So both ordinary income and net income rose. And here is the accomplished the group sales by destination for 2Q. The China percentage was 27, but it has grown to 38%. So if you compare against the second quarter last year, or first half of last year, Europe and Korea increased, and also North America increased. This is group sales by segment. First quarter, SPE was lower in first quarter. However, in 2Q, it's 84.8%. Again, so we see the increase of the SPE percentage. So if you compare to the first half of last year, it's gone from 79.7 to 81.5%. So roughly speaking, 80% is coming from SPE. There's no change for that. So this is the consolidated earnings by segment SPE. The net sales is 251 billion, increased by 32 from previous year. This is 15% growth, and OP income is 57.5, increased by 8.8, which is 18.2%. OP margin is 22.9%, improvement of 0.6%. So both sales and profit grew. The sales for memory rose for North America and Korea. And the delayed project from last year. were fully posted in 2Q. Moving on to GA, the net sales is 29.1, which is increase of 3.3 billion from last year. The OP income is 1.7, increased by 0.4. Again, sales and profit both grew, and sales of equipment and the recurring business both increased. Next one's FT, the net sales is 19, Video, which is minus negative 4.4 from last year. And the percentage is minus 18.9%. But we had a very strong sales last year. So sales and profit both fell. However, sales were mainly driven by OLED and LCD. The advanced packaging is now progressing as planned. Next is PE. The net sale is seven. which is increase of 1.5 billion and OP income was negative 0.1 billion and the profit has improved slightly but still in red but we are having strong order towards second half so both sales and profit is going to rise towards second half next is the financial standing this is balance sheet The asset is 522. So compared to the first quarter, it's increased by 249. So equity ratio is now 65.9%. We are maintaining about 60%. And this is cash flow. Two keywords minus 10.9. and 3 cash flow was minus 16. So we are receiving strong order in SP and operating cash flow is now needed more. So that's why it's negative 10.9. The entire first half was minus 1.9. So the operating cash flow is now increasing due to the strong order. And once this is established as a sales, the cash flow will also improve going forward. Next is R&D expenses and capex. So as to R&D, 11.4 in 2Q. So mainly due to SPE, it landed as planned. And CAPEX is 7.7. So the IT and all the R&D manufacturing was the area of the investment. And for CAPEX, we have made the gross investment in Nagaoka, So compared to the forecast in July, it's raised from 47 to 58 billion. Next is the OP operating income. First half last year and first half this year is compared. So the first half last year was 46.7. And due to sales and capacity utilization, it's increased by 12. So profitability also increased. This is 5 billion. This is mainly came from SPE. However, fixed cost due to the gross investment like R&D and personal cost and some measures responding to the increased production, this is negative 10.5. And exchange rate impact is positive 1.5, mainly due to GA. So the operating income of the first half was 54.5. So next is business forecasts. For the first half, the result is 308, which is minus 8.6. And OP is 54.5, which is minus 1.5. So for sales, There was some delivery timing, which is delayed to second half. But basically, we are taking the installation basis accounting. So that's why we see some delay. And OP and ordinary income hasn't been changed from the July. Looking at segments, SPE is minus 8.7. The installation is delayed. That's why. So in the full year, as an entire group, it's 743. So no change from last time. And OP income is maintained at 156 and 21.1. Again, maintained from last time announcement. So SPE, GA, NPE, no change. However, only for FT. Sales is expected to go down. So sales by one, so 42 billion. And the OP income is now expected to be 1 billion. So others adjusted in other areas. So the entire company was, it's no change. So this is analysis operating income growth focused. It was 122 last year. and Sales and Capacity Utilization account for 70 increase and profitability was slightly down due to the mix of the product. This is minus 4.5 and fixed cost has what we started investment for the R&D So it's minus 32. And exchange rate is plus 0.5. So there's marginal impact. So the operating income is guided as 156. And annual dividend outlook.