Maintaining and improving profitability in existing businesses

「In terms of profit, lower inventory valuation losses recognized in the same period of the previous year following a product portfolio review, together with improved profitability from structural reforms, contributed to higher profit.」

「In terms of profit, lower inventory valuation losses recognized in the same period of the previous year following a product portfolio review, together with improved profitability from structural reforms, contributed to higher profit.」

「In terms of profit, lower inventory valuation losses recognized in the same period of the previous year, together with improved profitability from a review of the product portfolio and structural reforms, contributed to higher profit. As a result, Visual Imaging revenue was ¥38,077 million, down 3.0% year on year, while segment profit was ¥1,805 million, compared with a segment loss of ¥120 million in the same period of the previous year.」

「In terms of profit, the product mix improved through efficiency gains from selecting and focusing on businesses, and the recognition of highly profitable exposure equipment projects in the second quarter of the current consolidated fiscal period, despite increased upfront investment required for future growth, centered on optical equipment, including development investment. As a result, Industrial Process revenue was ¥37,584 million, down 0.5% year on year, while segment profit was ¥5,241 million, up 32.8% year on year.」

「In terms of profit, profit margins declined and profit fell because, in addition to lower revenue, the Company expanded strategic investment for the future, including R&D, centered on optical equipment, while sales of high-value-added products such as optical equipment and lamps for optical equipment declined.」

「In terms of earnings, profits declined because the company increased forward-looking strategic investment, including R&D, mainly in optical equipment, while sales of high-value-added products such as exposure lamps and exposure equipment decreased, lowering the profit margin.」

「In terms of profit, lower sales of high-value-added products such as exposure lamps and exposure equipment, together with increased R&D investment in areas such as EUV light sources, resulted in lower profit.」

「The substantial improvement in profitability resulting from the benefits of initiatives to improve the earnings structure undertaken over time enabled us to achieve the ambitious target for operating profit margin, the most important KPI set out in the previous medium-term management plan. ... The mandatory operating profit margin target in that plan was not achieved because lost business opportunities arose from the impact of component shortages and higher component procurement costs on production and sales, and the profit margin also deteriorated.」

「As a result, net sales in the Optical Equipment business were ¥41,639 million, up 17.7% year on year, and segment profit was ¥6,285 million, up 78.4% year on year. As a result, net sales in the Visual Imaging business were ¥36,289 million, up 26.3% year on year, and a segment loss of ¥239 million was recorded, compared with segment profit of ¥96 million in the same period of the previous fiscal year.」

「As a result, net sales in the Optical Equipment business were ¥30,283 million, up 23.6% year on year, and segment profit was ¥4,577 million, up 88.1% year on year. As a result, net sales in the Visual Imaging business were ¥23,316 million, up 32.3% year on year, and segment profit was ¥268 million, compared with a segment loss of ¥448 million in the same period of the previous fiscal year.」

「(Optical Equipment Business) As a result, revenue in the optical equipment business was ¥11,588 million, down 7.0% year on year, while segment profit was ¥1,085 million, up 0.4% year on year. (Imaging Equipment Business) As a result, revenue in the imaging equipment business was ¥11,374 million, up 38.5% year on year, while segment profit was ¥246 million, compared with a segment loss of ¥477 million in the same period of the previous year.」

「Steady progress in reducing fixed costs through improvements in working practices and structural reforms under the “prevention strategy” has improved the Company’s operating structure and profitability. The operating profit margin reached 8.8%, enabling us to achieve in the second year the target of at least 8% set as a mandatory objective in the current medium-term management plan.」

「As a result, revenue from the Optical Equipment Business was ¥35.377 billion, up 37.0% year on year, and segment profit was ¥3.523 billion, compared with segment profit of ¥235 million in the same period of the previous year.」

「As a result, net sales in the Optical Equipment business were ¥24,510 million, up 49.7% year on year, and segment profit was ¥2,433 million, compared with segment profit of ¥160 million in the same period of the previous fiscal year.」

「As a result, revenue from the optical equipment business was ¥12.461 billion, up 74.2% year on year, and segment profit was ¥1.081 billion, compared with segment profit of ¥77 million in the same period of the previous year.」

「In the optical equipment business, profitability had been challenged by a high-cost structure, but profit-focused measures, such as accepting orders at appropriate prices and standardizing products, and production-process improvements, including fab-light manufacturing and production innovation using IT, proved effective, and profitability is trending upward.」

「Sales of split projection exposure equipment for advanced IC package substrates and direct-write exposure equipment for printed circuit boards increased amid rising demand for servers at data centers driven by the commercialization of 5G and the development of IoT and AI. Sales of EUV light sources for EUV lithography mask inspection also increased as demand grew for mass production of next-generation semiconductors amid advances in EUV lithography technology. Meanwhile, projector sales in the visual equipment business declined substantially.」

「In the general visual equipment field, sales of projectors declined substantially as commercial facilities such as amusement parks repeatedly closed temporarily and events were postponed or canceled due to the spread of COVID-19. Although these facilities and events have gradually resumed, mainly in Asia, investment has generally been restrained or deferred.」

「In optical equipment, profitability had been challenged by a high-cost structure, but profit-focused measures, such as accepting orders at appropriate prices and standardizing products, and production-process improvements, including fab-light manufacturing and production innovation using IT, proved effective, and profitability is improving.」

「As a result, net sales in the Equipment business were ¥72,857 million, up 6.1% year on year, and segment profit was ¥1,442 million, compared with a segment loss of ¥278 million in the same period of the previous fiscal year.」

「Although sales of roll-transfer projection exposure equipment increased against the backdrop of narrower bezels in displays, including smartphones, sales of projection exposure equipment for electronic devices such as SAW filters, for which demand expanded in the same period of the previous year, declined. In the flat-panel display market, sales of liquid crystal-related equipment increased as capital investment for large liquid crystal displays remained firm. As a result, optical equipment as a whole generated higher sales year on year.」

「In the flat-panel display-related market, sales of optical alignment equipment for high-definition LCD displays declined as investment in small and medium-sized displays was restrained. However, sales of LCD-related equipment increased as capital investment demand for large LCD displays remained firm. As a result, revenue from optical equipment increased.」

「In optical equipment, profitability had been challenged by a high-cost structure, but profit-focused measures, such as accepting orders at appropriate prices and standardizing products, and production-process improvements, including fab-light manufacturing and production innovation using IT, proved effective, improving profitability. In visual equipment, fixed costs were reduced through structural improvement measures, including the streamlining of unprofitable businesses. However, sales of RGB laser projectors fell substantially below plan because certain market requirements were not met. As a result, although profitability in visual equipment is trending upward, the extent of the improvement was below plan.」

「As a result, net sales were ¥68,688 million, down 5.8% year on year, and a segment loss of ¥278 million was recorded.」

「The product mix improved and profitability increased following the launch of sales of new projectors equipped with high-value-added RGB lasers that meet market needs.」

「As a result, net sales were ¥21,846 million, down 3.3% year on year, and segment profit was ¥8 million, down 74.9% year on year.」

「Specifically, the initiatives include profit-focused measures, such as accepting orders at appropriate prices and standardizing products, and reviewing production processes, including fab-light manufacturing and production innovation using IT. These initiatives and others proved effective, substantially improving the profitability of the optical equipment business during the fiscal year.」

「Under the medium-term management plan beginning in the fiscal year ending March 2018, the company identified “laying the foundation for the next leap forward” as a key theme amid changes in the business environment surrounding the group, and established “maintaining and improving the profitability of existing businesses” and “pursuing new growth opportunities” as priority management issues. The company aims to achieve its management targets and will maintain profitability and market share by strengthening competitiveness in existing markets. In the light-source business, it will improve productivity and quality and maintain market share by strengthening IT and robotics at production plants and establishing an optimal-location production system.」