FY2021 Q1
Financial Announcement(Supplementary Materials)
August 7,2020V-Technology Co., Ltd.
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▐Forward-Looking Statements
▶ This material contains forward-looking statements regarding V Technology Co., Ltd.̓s corporate plans, strategies, forecasts, and other statements that are not historical facts. They are based on current expectations, estimates, forecasts and projections about the industries in which V Technology Co., Ltd. operates.
▶ As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, including without limitation, changes in economic conditions; fluctuations in currency exchange rates; changes in the competitive environment; the outcome of pending and future litigation; and the continued availability of financing and financial instruments and financial resources, they may cause actual results to differ materially from those presented in such forward-looking statements.
▶ V Technology Co., Ltd., therefore, wishes to caution that readers should not place undue reliance on forward-looking statements, and, further that V Technology Co., Ltd. undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments.
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┃Financial Result
▐Impact of the spread of the new coronavirus
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▶ Sales declined in the previous fiscal year's fourth quarter (Jan.-Mar.), but recovered in this first quarter (Apr.-Jun.), and almost all the projects that were extended from the previous fiscal year's fourth quarter to this fiscal year's sales are expected to be sold during the first half.
▶ Installed products at the customers' locations, especially overseas, under instructions from governments and customers to ensure safety.
▶ Installation work speed is improving with gradually resuming production activity in China, although we can travel from Japan to China on a limited basis.
▶ Meanwhile, even before the corona disaster, we began to transfer equipment installation and other work to local staff in China. It is expected that local staff will perform almost all equipment installation work from next year.
▶ We give top priority to the health and safety of our employees, their families, business partners, and all other concerned parties. We have also implemented thorough preventive measures at each of our bases, including telecommuting and business travel restrictions.
▶ From the end of March to May 25, all employees at the Yokohama Head Office worked at home. 85% of employees worked at home during this period, and from May 26 to June 30, approximately 50% of employees worked under a work schedule of 50%.
▶ From July 1, we transitioned to a new work system in which telecommuting is the core of work performance. Under the new system, we aim to ensure employee safety, improve work-life balance and operational efficiency, and reduce office costs.
Operation
Business
▐Highlight of FY2021 Q1▶ Sales dropped to 3.6 billion yen in the previous fiscal year's fourth quarter (January-March), but recovered
quickly in the first quarter (April-June).▶ Announced large orders in April, confirming a recovery in orders and resumption of negotiations▶ Consolidated Q1 revenue and income decreased due to the impact of sales delays caused by the new corona,
despite an improvement in profit margins in the manufacturing and inspection equipment businesses.
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FY20Q1 ended
FY21Q1 ended Y/Y
changeAmount(Millions of JPY) Margin Amount
(Millions of JPY) Margin
Net sales 18,910 100.0% 10,297 ― ▲45.5%
Gross profit 6,502 34.4% 3,173 30.8% ▲51.2%
Operating profit 3,721 19.7% 1,192 11.6% ▲68.0%
Ordinary profit 3,676 19.4% 1,142 11.1% ▲68.9%Net profitattributable to owners of parent
2,283 12.1% 644 6.3% ▲71.8%
Orders received 5,344 ー 12,434 ― 132.7%
Backlog 77,369 ー 61,281 ― ▲20.8%
▐Transition of Orders Received and Backlog▶ Orders in Q1 recovered to 12.4 billion yen due to large orders (10 billion yen / disclosed on April 23) and
other factors.▶ Cancellation of overseas projects (approx. 3.3 billion yen) that investment was significantly delayed.▶ The impact of order cancellation has already been factored into the business plan at the beginning of the
fiscal year, so there is no change to the earnings forecast.
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FY17 FY18 FY19 FY20 FY21
(Millions of JPY)
50,377
58,047
72,260 72,381
89,546
97,723
103,477
115,637 114,997
100,800
87,030 90,935
77,369 73,903
61,067 59,145
61,281
17,807 16,372
22,672 18,235
25,219 23,366 23,742
36,996
14,861
8,406
3,855
20,308
5,344
12,670
2,832 1,686 12,434
0
30,000
60,000
90,000
120,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Backlog Orders received
10,650
6,677
1,406
177
18,910
3,508
5,559
775 454
10,297
0
5,000
10,000
15,000
20,000
Manufacturing
equipment
Inspection
equipment
After service Other
businesses
Total
FY20 Q1 FY21 Q1
▐Sales by Products and Services(YoY basis)
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<FPD related> <Semiconductor/Other>
(Millions of JPY)
▐Sales by Countries(YoY basis)
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15,512
1,213 239
1,946
18,910
9,145
305 374 473
10,297
0
5,000
10,000
15,000
20,000
China Taiwan Japan Korea/ Others Total
FY20 Q1 FY21 Q1
(Millions of JPY)
17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2 20 Q3 20 Q4 21 Q1 21 Q2 21 Q3 21 Q4
Sales 10,101 8,703 8,426 18,146 8,055 15,189 17,988 24,835 15,501 22,603 17,624 16,404 18,910 16,136 15,669 3,607 10,297
GP 3,130 2,830 2,814 4,278 2,426 4,855 5,798 8,242 4,846 7,677 7,125 5,496 6,502 4,700 5,532 (1,612) 3,173
OP 1,276 1,163 1,045 1,930 652 2,896 3,473 5,524 2,733 5,632 5,169 3,094 3,721 2,541 3,185 (3,740) 1,192
GPM 31.0% 32.5% 33.4% 23.6% 30.1% 32.0% 32.2% 33.2% 31.3% 34.0% 40.4% 33.5% 34.4% 29.1% 35.3% -44.7% 30.8%
OPM 12.6% 13.4% 12.4% 10.6% 8.1% 19.1% 19.3% 22.2% 17.6% 24.9% 29.3% 18.9% 19.7% 15.7% 20.3% -103.7% 11.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0
5,000
10,000
15,000
20,000
25,000
▐Transition of Quarterly Sales and Profit
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(Margin of profit)
Deficit
Deficit
(Millions of JPY)
▐SG&A(Selling, general and administrative) Expenses▶ SG&A expenses declined 28.8% year on year
‣ Decrease in shipping and other expenses due to lower sales and lower litigation-related expenses in other items
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462 321
527
140
1,331
2,781
461 239
423
19
839
1,981
0
1,000
2,000
3,000
4,000
5,000
Labor Shipping R&D Provision for
product warranties
Other Total
FY20 Q1 FY21 Q1
(Millions of JPY)
Included litigation-related expenses Approximately 500 millions
▐Analysis of Operating Profit Deference
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▶ 主に新型コロナ影響による売上の減少により、営業利益は67.9%減少▶ Operating income declined by 68.0% due to lower sales, mainly due to the impact of the new coronavirus
Sales declining-2,961
OperatingProfit3,721
FY20 Q1 21年3⽉期Q1
(単位︓百万円)
Changes inProduct mix
-367
Changes inSGA
+799
OperatingProfit1,192
▐Transition of Consolidated Balance Sheets
12,101 17,983
24,132 24,052
24,854 25,050
5,407 2,863 8,651 8,506
0
30,000
60,000
90,000
FY20 FY21 Q1
Total assets
Non-current assetsOther current assetsReceivable trade inventoryNotes and accounts receivable - trade
29,361 29,608
33,794 31,462
11,606 16,971 383 413
0
30,000
60,000
90,000
FY20 FY21 Q1
Liabilities/ net assets
Other non-current liabilitiesLoans payable (short term/ long term)Other current liabilitiesNet assets
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75,146 78,454 80,304 75,146
(Millions of JPY) (Millions of JPY)
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|Business Forecast
13
▐Forecast of 2021
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FY20(Actual) FY21(Forecast) compared with the previous forecast
Amount(Millions of JPY) Margin Amount
(Millions of JPY) Margin
Net sales 54,322 ー 54,000 ー -0.6%
Gross profit 5,707 10.5% 6,000 11.1% 5.1%
Ordinary profit 6,209 11.4% 5,800 10.7% -6.6%
Net profit attributable to owners of parent 3,277 6.0% 3,000 5.6% -8.5%
EPS JPY 338.99 JPY 310.25 ー
Dividend
FY21 1st half︓JPY 60 (Forecast) 2nd half︓JPY 60 (Forecast)
*Reference: FY20 1st half︓JPY 80 (Actual) 2nd half︓JPY 40 (Actual)
▶ No change from the earnings forecast disclosed on May 12
288
181
49 25
543
228 232
48 32
540
0
100
200
300
400
500
600
Manufacturing
equipment
Inspection
equipment
Materials / Services Other Total
FY20 FY21
▐ *Reference: Break Down of Net sales in FY2021 Forecast
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<FPD related><Semiconductor/
Other>
(Billions of JPY)
▶ No change from the earnings forecast disclosed on May 12
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┃Topics
16
Our Products Related to Local Dimming
Large Glass Substrate Exposure Equipment Defect Repair EquipmentLaser Annealing Equipment
Local dimming technologies
Difference between the screen and the old and new backlight
Backlight Image Original image
Novel tech under R&D
Light and dark control by dividing the screen into 5,000 to 10,000 sections
About 5,000 to 10,000 mini LEDs are used.
Brightness control close to the actual image
Conventional
Control light and dark by dividing the screen into 500 to 1000 sections
About 500 to 1000 LEDs are used.
Limited control of brightness
Manufacturing difficulties increase with the evolution of the screen.
▐FPD
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Evolution of FPD technology to stimulate new equipment demand ~Local dimming technologies~
Laser Annealing Equipment(BLDA)
The evolution of smartphone screens and the demand for salvage services
Growing Expectations for Demura Technology
Removal of unevenness by Demura
Kunshan Head Office and Plant started operation in April.
Building
Clean room
▐ESG
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CorporateMission
Contributing to society with fervor and great ambition, through our world-class innovative manufacturing solutions.
Long-termVision
We aim to be the world's leading manufacturing solution provider
Medium and Long TermGrowth Strategy(Basic policy)
Business expansion/stabilization of earnings
Strength(Business foundation)
Human resource diversity / Technological diversity / Strong customer base / China sales network / On-site capabilities
Measures M&A/Business partnership / JV / R & D (Innovation Creation) / Fabless / Personnel / Intellectual Property
Annual plan Formulate and implement based on growth strategy
Environment• Climate change (FPD power saving technology)• Resource protection (FPD / semiconductor yield
improvement technology)• Pollution prevention (production activities according to
local environmental laws)
Social• Safety (safety education for employees/device safety
measures)• Social contribution (Support for Judo / Women's Judo
club)• Strengthen supply chain management (Souki-kai)
Governance• Separation of supervision and enforcement• Strengthening risk management• Dialogue with Stakeholder
Prioritized fields : FPD/Materials & Services/Semiconductor
Executive and employee action
guidelines
Have I lacked in spiritual vigor?Have I been responsible for my speech and behavior?
Have I committed myself to work with zeal and effort?
Promoting ESG activities through business activities rooted in the corporate mission and vision
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