Ushio : New Growth Strategy："Revive Vision 2030" is now available.

Presenting New Growth Strategy:

"Revive Vision 2030"

Ushio Inc. PRIME | 6925

May 14, 2024

Index

	Part 1	Overview of New Growth Strategy	P3
	Part 2	Review of Previous Medium-Term Management Plan	P8
		See supplementary materials on pages 38~42 for review of previous medium-term management plan
		Specific Measures for New Growth Strategy: Revive Vision 2030
	Part 3	Overview P14 / Business StrategyP17 / Financial Strategy P27	P13
		See supplementary materials on pages 43~52 for business strategy
	Part 4	ESG Initiatives	P33
		See supplementary materials on pages 53~55 for ESG Initiatives
		Supplement to Review of Previous Medium-Term Management Plan	P38
	Appendix	Supplement to Business Strategies	P43
		Supplement to ESG Initiatives	P53
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Part 1

Overview of New Growth Strategy

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Backdrop to Review of Medium-Term Management Plan

		Other companies' light sources
Semiconductor market changing		emerging
Semiconductor market landscape has		Emergence of other companies' light sources
transformed owing largely to extended		for EUV mask inspections prompted a
slowdowns in the server and PC sectors		strategic reassessment

Revised strategy

in response to significant changes in climate for Industrial Processes business

Developed New Growth Strategy:

Revive Vision 2030

Using the word "Revive," we express Ushio's determination

to "realize our goals through great transformation"

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Copyright (C) 2024 Ushio Inc., All Rights reserved.

4

Guiding Principles for 2030

Mission

Utilizing "light" as a means to provide not only "illumination" but also "energy,"

contribute to the resolution of social issues and to technological innovation across the globe

Vision

Become a "light" innovation company

Grow alongside customers, primarily in Industrial Processes area

Industrial Processes (IP)

Help create comfortable and

convenient social infrastructure

with optical processing technologies

Visual Imaging (VI)

Delight people and deliver shared experiences to people through imaging and lighting technologies

Large-scale video production and operation of entertainment spaces (theme parks, cinemas, events), Control rooms and video systems for public facilities and businesses

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Manufacturing processes, such as for: Semiconductors, electronic devices, EV, Building materials and printing, etc.

Photonics Solutions (PHS)

Collaborate with customers to co-create and deliver value through photonics technology that contributes to social progress

Use with semiconductor manufacturing equipment,

Integration with laser cinema and AR/VR,

Medical examinations, such as for genetic sequencing,

ophthalmology, and internal medicine

Life Sciences (LS)

Apply optical technology

for better living and a better planet

Extension of healthy life expectancy (Environmental hygiene, healthcare, pharmaceuticals,

drug development), Contribution to improving and

preserving the human environment, Eliminating conditions that cause disease and contributing to the maintenance of health

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Revive Vision 2030 Goals

Coefficient targets

Phase I	ROE 8% or more	Phase II ROE 12% or more
(~FY2026)	※ One year delay behind previous medium-term management plan	（～FY2030）	12% or more
	(Swiftly attain Over 1x PBR)	Reference: Operating margin

Policy

Pursue growth strategy emphasizing management efficiency

Focus growth, development	Enhance	Balance
growth investments
investments, and resources

on IP Business	"efficiency"	and
to drive expansion		capital efficiency
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Revive Vision 2030 Goals

Business

strategies

Financial

strategies

Phase I

（FY2024～

FY2026）

Phase II

（FY2027～

FY2030）

Confidential

Highly effective business and

financial strategies

• Transform portfolio (bolster unprofitable businesses)
• Step up advanced packaging business growth
• Optimize capital
• Enhance financial discipline and streamline assets
• Accelerate transfers from financial assets to business assets by divesting securities

Business strategy: Transform business portfolio by redefining strategic fields

Financial strategy: Repurchase shares and pay ¥65.0~¥75.0 billion in dividends to deliver ROE of at least 8%

Business strategy: Optimize Phase I outcomes and deliver steady business growth

Financial strategy: Flexibly repurchase shares and keep shareholders' equity below

¥200.0 billion, and focus on growth investments in allocating cash

Copyright (C) 2024 Ushio Inc., All Rights reserved.

7

Part 2

Review of Previous Medium-Term Management Plan

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Revising Our Forecasts ①

Our performance deteriorates in FY2024 amid significant business climate changes.

Recovery trend is expected in FY2025, the final year of our previous medium-term management plan, but should be below targets.

Progress under previous plan and latest forecasts

Net sales (under previous plan)		Net sales (latest forecasts)		Operating margin (under previous plan)		Operating margin (latest forecasts)

			8.8%	9.1%			9.5%
2,500			7.9%		10.0%
				7.2%		9.0%
2,000						8.0%
	5.9%						7.0%
						7.0%
1,500		5.2%		6.6%			6.0%
		4.2%					5.0%
1,000							4.0%
						2.9%	3.0%
500			0.6%				2.0%
							1.0%
0							0.0%

Billions of yen	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net sales (under	173.4	165.1	159.0	118.5	148.8	175.0	188.0	210.0	220.0
previous plan)
(Latest forecasts)＊							179.4	175.0	200.0
Operating margin	5.9%	5.2%	4.2%	0.6%	8.8%	9.1%	6.6%	7.9%	9.5%
(under previous plan)
(Latest forecasts)＊							7.2%	2.9%	7.0%
								*Figures for FY2023 are results
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Revising Our Forecasts ②

In FY2025, the final year of the previous medium-term management plan, sales of lithography equipment and EUV light sources in the IP Business should be far below target despite plans to expand growth investments for the future.

With anticipated earnings gains in the VI Business insufficient to cover the shortfall, operating profit should be around ¥7.0 billion lower than under the previous plan.

Operating profit under previous plan and latest forecast

(Operating profit for FY2025: in billions of yen)

21.0

＋3.5

14.0

-5.5

-1.5	-2.0
	-1.5

Previous plan	Industrial Processes	Industrial Processes	Industrial Processes	Visual Imaging	Life Sciences, Photonics	Latest forecast
	Lithography equipment	Optical equipment, etc.	Lithography lamps		Solutions, etc.

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