東京精密（7729） – Summary of FY2022/3 3rd Quarter Business Results with Note(April to December 2021)

– Earnings Conference for FY2022/3 3Q (via Web)- Tokyo Seimitsu’s SpeakersKAWAMURA Koichi, Representative Director and CFOTAKASHIMA Naoki, Management Support Dept Manager* This transcript is a translation of information given verbally in Japanese language and simplified.2- FY2022/3 third quarter (3Q) results are as described above.- Accumulated Sales increased by more than 40% YoY, Profits doubled,and Operating Margin came to 21%.- Quarterly Sales also increased by 50% YoY, and Profits doubled.- SPE Sales and Profits are in line with forecast. – Strong Orders continued from the FY2022/3 thanks to demand for Memory, Display driver, and investment for Wafer capacity expansion, and as a result, 3Q Orders amount beat historical peak.- SPE Quarterly Sales exceeded ¥20BJPY, and Operating Margin reached ¥5BJPY for four (4) quarters sequentially. – Sales in 3Q were almost the same as in 2Q as excepted. We anticipate QoQincrease in 4Q. – 3Q Operating Margin declined QoQ due to increase in material cost and other costs such as rental warehouse that are explained at earnings conference in November. – This is a graph of quarterly Orders and Backlog for SPE.- 3Q Orders beat historical record again thanks to an increase in demand for Memory, Display driver ICs, and for Wafer capacity expansion.- Also, firm demand for Logic devices / Power semiconductors, and from China, has continued.- Consequently, 3Q Backlog remained at very high level.- In Metrology Segment, 3Q Sales and Profit were almost on track.- Orders in 3Q exceeded forecasts.- Overall, demand from the auto industry are still in the way of recovery, however, strong demand from the Machinery and Machine Parts industry including SPE covered our Orders. – Quarterly Metrology Sales and Operating Margin graph implies that a moderate recovery is continuing.- 3Q Quarter Orders, exceeded forecast, were pushed up by demands toward Machinery and Machine parts.- Backlog amount came back to the level in FY2019/3 (Fiscal year in bullish business situation), therefore, we expect recoveries also in Sales and Profit.- Major notes on the Balance Sheet as at December 2021 are:- Increase in current assets mainly driven by increases in Accounts receivable, cash, and inventories aimed at near-future sales.- Fixed assets increased mainly due to a purchase of Land and Construction in progress for New plant.- Due to increase in sales, Accounts payable increased simultaneously. As a result, Equity ratio came to 67.5%.- Amount of Interest-bearing debt was ¥5.5B.- FY2022/3 3Q and Plan for Full-year and beyond on R&D, Capex and Depreciation are shown above. – R&D: Almost as expected through the 3Q and no change in full year plan.- Capex: Increased significantly in 3Q mainly reflected by purchase of Land and a part of construction cost payment for upcoming new factory. Next significant payment will be done in next fiscal year, therefore, full year Capex plan is remains unchanged.- Depreciation: Almost as expected through the 3Q and has no change in full year plan.- FY2022/3 Full Year forecast, announced in November 2nd, 2021 remains unchanged.- No change in annual dividend forecast for FY2022/3.