1 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

(Securities code: 6728)

Business ResultsFY2019First and Second Quarters（cumulative）(July 2019 - December 2019)

ULVAC Inc.Feb. 14, 2020

2 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Data included in the documents are stated as follows:(All figures are stated on a consolidated basis unless otherwise noted.)

Yen values: Rounded to the nearest 10th of the unit stated.Percentages: Rounded to the nearest 10th after yen values are rounded.Abbreviations of accounting periods:

1Q and 2Q (cumulative): First and second quarter consolidated cumulative period2Q: Second quarter consolidated period

Disclaimer regarding forward-looking statementsForward-looking statements of the company in this presentation are based on information that was available at the time these documents were prepared. ULVAC’s customers in the flat-panel display (FPD), semiconductor, and electronic parts industries face challenges due to the rapid pace of technological advances and fierce competition.There are a number of factors that directly and indirectly impact performance, such as the global economy; fluctuations in exchange rates; market conditions for FPDs, semiconductors, electronic parts, and raw materials; and trends in capital expenditures. Consequently, actual net sales and profits may vary substantially from the projections included in this presentation.

3 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Order Received:¥72 billion（-40% year-on-year,-27% vs. initial forecast）- Sharply declined year-on-year mainly due to the temporary end of LCD business for large-screen

TVs as well as the postponement of investment in OLED for smartphones

Net Sales:¥96.7 billion（-17% year-on-year,-1% vs. initial forecast）- Declined year-on-year, but generally in line with the initial forecast

Operating Profit:¥8.4 billion（-46% year-on-year,-1% vs. initial forecast）- Declined year-on-year, but generally in line with the initial forecast as same as Net Sales

Overview of 1Q and 2Q FY2019 Consolidated Business Results (Cumulative)

4 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

• Orders Received: Sharply declined year-on-year and also fell below the initial forecast mainly due to the temporary end of LCD business for large-screen TVs as well as the postponement of investment in OLED for smartphones

• Net Sales : In addition to FPD, Component business declined year-on year, but generally in line with the initial forecast

• Operating Profit : Generally in line with the initial forecast

112.0 119.8

125.3 124.0 116.8

103.9 96.7

14.4 15.1 18.7

16.7 15.5

8.3 8.4

0

20

40

0

50

100

150FY2018 FY2019 1H

1H Initialforecast ResultY-o-Y

(Changes)

vs.Initialforecast

(Changes)

Orders Received 119.5 98.6 72.0 -39.7% -27.0%

Net Sales 116.8 97.5 96.7 -17.2% -0.8%

Gross margin 34.8 - 25.7 -26.2% - Ratio 29.8% - 26.5% - 3.3 pt -

SG&A 19.3 - 17.3 -10.5% -

Operating Profit 15.5 8.5 8.4 -45.8% -1.2% Ratio 13.3% 8.7% 8.7% - 4.6 pt - 0.0 pt

Net Income 11.2 6.0 7.8 -30.7% 29.8% Ratio 9.6% 6.2% 8.0% - 1.6 pt + 1.9 pt

(Unit:¥1 billion)

OP

Net sales

Net sales and operating profit(by semi-annual period)

1H 2H2018 2019

Overview of 1Q and 2Q FY2019 Consolidated Business Results (Cumulative)

（FY）1H 2H 1H 2H 1H

20172016

(Unit:¥1 billion)

5 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

• FPD and PV production equipment: Sharply declined year-on-year due to the temporary end of LCD business for large-screen TVs and the postponement of investment in OLED for smartphones

• Semiconductor and electronic device production equipment: Increased year-on-year contributed by increased orders of production equipment for power device, communication devices and logic

• Components: Declined due to several projects concentrated in FY18 and also the investment pace down for automobile and FPD-related orders

FY20181H

Overview of 1Q and 2Q FY2019 Consolidated Business Results (Cumulative) (Orders Received by Segment)

0

50

100

150

49.6

7.7

22.4

24.0

18.8

14.3

11.5

10.0

7.9

6.8

9.3

9.1

119.5

72.0

Orders vs. same period last year

FY20191H FY2017 FY2018 FY2019

Quarterly change

0

50

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

47.5

17.3 11.9 16.2

42.4

7.2

24.8 14.9

2.7 5.0

9.3

23.1

13.3 8.4

11.3

11.1

7.2

9.2

13.0 11.0

8.0

7.9

8.7 8.5

10.5

8.3

7.9

7.0

7.3 7.0

8.5

7.0

7.9 6.0

5.5

6.0

6.6

5.2

4.2 5.8

4.0

5.0

3.3 3.1

3.8

4.1

3.7

3.3

3.3 3.5

3.7

5.0

3.8 5.5

4.3

5.0

4.0

5.3

4.6 4.5

81.0

65.4

48.9 47.7

77.7

41.7 54.2

44.9 35.2 36.8

(Unit:¥1 billion) (Unit:¥1 billion)

Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment

6 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Overview of 1Q and 2Q FY2019 Consolidated Business Results (Cumulative) (Net Sales by Segment)

• FPD and PV production equipment: Fell slightly below the initial forecast thanks to the relatively high beginning backlog which partly absorbed the impact from declined orders

FY20191H

FY20181H FY2017 FY2018 FY2019

0

50

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

28.9 28.1 28.3 23.2 26.4 20.1 20.1 20.2 18.0 17.0

10.9 13.4 14.912.4

12.711.3 9.1 10.2 10.3 11.5

8.6 7.88.2

8.39.4

8.9 8.3 7.6 6.8 7.7

5.3 5.66.3

6.56.0

5.9 6.0 5.6 4.9 5.0

4.0 4.33.1

3.83.8

3.9 3.5 3.23.3 3.8

3.2 5.24.1

4.93.5

5.05.1 5.0

3.5 4.9

60.9 64.364.9

59.1 61.7 55.1 52.1 51.8

46.8 50.0Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment

0

50

100

150

46.5 35.0

24.021.8

18.314.5

11.8

9.9

7.7

7.2

8.5

8.4

116.896.7

(Unit:¥1 billion) (Unit:¥1 billion)

Net sales vs. same period last year Quarterly change

7 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

5.86.5

10.5

7.9

12.912.6

14.913.413.3

8.0 8.7

0

10

20

23.924.6

26.326.927.927.2

29.629.029.8

29.0

26.5

15

25

35

2019201820171H 2H 1H 2H 1H 2H

2015 2016

Overview of 1Q and 2Q FY2019 Consolidated Business Results (Cumulative) (Profit Margins)

1H 2H 1H 2H 1H（FY） 2014 201920182017

1H 2H 1H 2H 1H 2H2015 2016

1H 2H 1H 2H 1H（FY） 2014

• Gross profit margin and Operating profit margin declined due to the decline of Net sales(Excluding the cancellation of contract, gross profit margin should have been 28.4%)

Gross profit margin Operating profit margin(Unit: %) (Unit: %)

8 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

FY2018 FY20192Q

Overview of 2Q FY2019 Business Results (Consolidated Balance Sheet)

FY2018 FY20192Q

282.3 296.8 282.3 296.8

• Cash on hand and in banks increased by ¥18.8 billion, Interest-bearing debt increased by ¥16.2 billion, and Total asset increased by ¥14.5 billion

• Net assets increased by ¥3.1 billion, and the equity ratio improved to 51.9%.(Unit: ¥1 billion)Assets (Unit: ¥1 billion)Liabilities and Net Assets

34.7 32.8

65.7 68.1

6.4 5.0 39.8 39.5

77.2 74.1

58.6 77.4

0

100

200

300Cash on hand and in banks

Notes and accountsreceivable,trade

Inventories

Other current assets

Property,plant andequipment

Investment securities etc.

157.6 160.7

9.5 10.9 38.8 34.2

35.6 51.8

40.7 39.3

0

100

200

300Note and accountspayable,trade

Interest-bearing debt

Other current liabilities

Other Long-termliabilities

Net Assets

9 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

10 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

FY2019 Earning forecast and Business environment

11 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Revision of FY2019 Full Year Consolidated Earnings Forecast

※Have not anticipate the effects of the coronavirus

• Net sales and profit items are expected to decrease due to a shortfall in net sales and operating profit caused by a decline in orders received for FPD production equipment. In addition, development costs are expected to increase. Therefore, forecasts for net sales and profit items were revised downwards.

InitialForecast

Result InitialForecast

Revised Forecast

YoY(Changes)

vs.InitialForecast

(Changes)

Orders Received 218.5 98.6 72.0 206.0 168.0 -23.1% -18.4%

Net Sales 220.7 97.5 96.7 205.0 198.0 -10.3% -3.4%

Operating Profit 23.8 8.5 8.4 22.5 15.0 -37.0% -33.3% Ratio 10.8% 8.7% 8.7% 11.0% 7.6% - 3.2 pt - 3.4 pt

Net Income 18.7 6.0 7.8 15.5 10.8 -42.1% -30.3% Ratio 8.5% 6.2% 8.0% 7.6% 5.5% - 3.0 pt - 2.1 pt

FY2018１H Full Year

FY2019

(Unit: ¥1 billion)

１H

12 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

0

100

200

300

111.4 113.793.0 89.4

62.331.2

31.4 37.654.1

38.8

50.1

51.1

28.131.1 33.1

33.733.8

31.3

20.422.7 29.4

23.225.5

20.9

15.815.1 15.4

14.915.6

14.8

16.415.3 18.0

18.618.7

18.6

223.6235.5

243.1

218.5206.0

168.0

（FY）

Revision of FY2019 Full Year Consolidated Earnings Forecast（Order received and Net sales by segment）

Orders Net sales

（FY）

Forecast

201820172015 2016 2019Revised Forecast

2019Initial

Forecast

201820172015 2016 2019Revised Forecast

2019Initial

Forecast

Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment 0

100

200

300

82.8110.9 108.5

86.8 75.0 67.4

30.9

36.4 51.6

43.343.5 46.8

26.0

31.832.8

34.234.0 31.1

20.7

21.523.7

23.421.0

20.115.1

14.615.2

14.314.5

14.916.9

16.717.4

18.617.0

17.7

192.4

231.8

249.3

220.7205.0 198.0

(Unit: ¥1 billion) (Unit: ¥1 billion)

Forecast

13 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

0

100

200

300

89.462.3

31.2

38.8

50.1

51.1

33.733.8

31.3

23.225.5

20.9

14.915.6

14.8

18.618.7

18.6

218.5206.0

168.0

Revision of FY2019 Full Year Consolidated Earnings Forecast（FPD-related order received）

Orders

（FY）2019Initial

Forecast

2019Revised Forecast

(Initial forecast)FY2018 result of ¥89.4 billion⇒FY2019 initial forecast of ¥62.3 billionDue to:1. LCD business for large-screen TVs has temporarily ended2. Investment in OLED for smartphones postponed to FY2020

(1H result) ¥7.7 billion（-¥22 billion vs. internal plan）Due to：1.Postponement of the investment in OLED for

smartphones 2.Postponement of the additional investment for large-screen TVs（panel price fell down since G10.5 manufacturers started operation in China）3.The order cancellation etc.

(Full year forecast) ¥62.3 billion⇒¥31.2 billion（-¥31.1 billion）Due to：1.Postponement of the additional investment for large-screen TVs which was expected in 2H2.Postponement of the investment in OLED for smartphones which was expected in 2H

2018Result

▲¥31.1billion

Other

Materials

General industrial equipment

Components

Semiconductor and electronic device production equipment

FPD and PV production equipment

14 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

FPD market environment

Investment in OLEDs for smartphone in China⇒temporarily slow down （business negotiations with our customers expected from FY2020 onwards）

Differentiation

Panel investment focused on OLED with high application expandability

・Flexibility: Foldable displays; In-vehicle displays; Rollable displays

・Thin and lightweight: Wall-hung large-screen displays; Rollable displays

2018 2019 2020 2021 2022 onwards

Medium/large-sized OLED market growing⇒contributes to our business from 2022

・Leveraging our strengths in large substrate sputtering and transport technology, we are collaborating with top manufacturer in mass production development

Even though a decline in orders at the beginning of the fiscal year was expected, further decline in orders are expected currently due to (1) the postponement of additional investment in LCD for large-screen TVs and (2) the postponement of investment in OLED (Sputtering equipment for Backplane).

足下

Investment in medium/large-sized OLEDs(South Korea, China)

Investment in LCD for large-screen TVs（G10.5 in China）2019～2021：Operation started sequentially ⇒panel price fell down⇒Production line closed in South Korea; Additional investments continues in China

15 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

0

50

100

150

200

2016 2017 2018 2019 2020 2021

The recovery of memory investment delayed, which was expected in 2H of this fiscal year and a full recovery of memory investment is expected to be in FY2020

NAND: Resumption of investment by top manufacturer; cautious stance of other companies（Expected to resume in mid 2020）

DRAM: Memory prices decline expected to stop and investment to be resumed

Semiconductor market environment(1) Memory

DRAM demand(shipment volume) forecast

（B/GB）

Semiconductor Manufacturing Equipment Market（SEMI）

2016＝100（B/GB）（％）

Source：Gartner Source：Gartner

Mem

ory

0

6

12

18

24

30

36

2018 2019 2020 2021 2022 20230

200

400

600

800

1,000

1,200

2018 2019 2020 2021 2022 2023

NAND demand(shipment volume) forecast

16 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

ロジック5.1

DRAM1.5

NAND2.2

次期メモリ0.3

etc.1.5

Semiconductor market environment(2) Logic

（¥1 trillion）（Exchange Rate:＄1＝¥110）

Logic

Two major manufacturers rated us higher than the competitor in the sputtering process(metal hard mask) required for miniaturization due to EUV introduction（Future priority investment areas for both manufacturers ）

We expect orders to be received as planned this fiscal year, and aiming for growth in the future by(1) customers' businesses expansion (2) increasing the number of adoption processes for further miniaturization processes (3) increasing the number of participating manufacturers.

Logic CAPEX

Source：GartnerSource：Gartner

（Unit：¥1billion）Semiconductor CAPEX（2019）

New generation memory

Logic

0

1,000

2,000

3,000

4,000

5,000

2018 2019 2020 2021 2022 2023

17 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Semiconductor market environment(3) New non-volatile memory (PCRAM)

ULVAC is the only equipment supplier to enable mass-produced film deposition system for PCRAM which1) has a faster processing speed than NAND and 2)is non-volatile, unlike DRAM (memory is preserved even if

power supply is cut off)

We achieved to provide equipment at mass production level and are expanding the business bases by providing development equipment to more customers

Realization of high speed processing of large amounts of information and lower power consumption ⇒ Mid-long-term growth expected⇒ Compatible with higher data capacity and lower latency supported by 5G, IoT, and AI → expanding applications to servers,

edge computers, and PCs

PCRAM

Emerging Memory Market Size

0

50

100

150

200

250

300

2018 2019 2020 2021 2022 2023Note: Emerging Memory includes MRAM, ReRAM, PCRAM, etc.Source: Gartner 2019

18 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

0

10

20

30

40

50

60

2018 2019 2020 2021 2022 2023

Sensor etcCommunication Device

Electronics Device market environment

Devices for antenna adopted to base stations, SAW・BAW filter

電子

In preparation for the full-scale diffusion of 5G and IoT (Communication devices, Optical device, sensors, etc.), capital investment is steadily increasing for the challenges of device miniaturization and performance enhancement.

Continued investment in power devices to realize low power consumption (Automobiles, electric motors, home appliances, etc.)

Fingerprint, image and optical sensor

Source：Yole

Sensor Market Size（Unit：Billion US$）

0

20

40

60

80

2018 2019 2020 2021 2022 2023

SAW FBAR BAW

Communication Device Market Size（Unit：Billion Unit）

Source：Yole

Power DeviceSi-IGBT（Japan）For SiC（China）

0

700

1,400

2,100

2,800

3,500

2018 2019 2020 2021 2022 2023

IGBT MOSFET SiC GaN

EV/HEV Power Device Market Size（Unit：Million US$）

Source：YoleNote：Sensor includes MEMS,CIS, Radar,etc.

19 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

2018

300.0

2022（FY）

220.7

2019RevisedForecast

Next mid-term management plan

The next mid-term management plan is

scheduled to be announced in August

The next mid-term management plan will be announced in August, including the management reform for the purpose of strengthening the management bases which has already started and also for the growth strategies.

Other

MaterialsGeneral industrial equipmentComponentsSemiconductor and electronic device production equipmentFPD and PV production equipment

198.0

(Unit: ¥1 billion)

20 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

21 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

ULVAC vacuum technology contributes to many industries and applications

22 FY192QPSN20200214E© 2020 ULVAC, Inc. | Confidential and Proprietary Information

Vacuum technology

For manufacturing