September 2025

In the fiscal year ended June 30, 2025, uncertainty in the economic outlook continued to prevail due to heightened geopolitical risks and concerns over the impact of policies in major economies.

In the semiconductor industry, our primary market, AI-related applications, such as AI servers for data centers and high-bandwidth memory (HBM), drove market demand, while demand for semiconductors used in PCs and smartphones remained sluggish. Demand for power semiconductors also remained weak due to stagnation in the electric vehicle market.

Under these circumstances, our consolidated net sales for the fiscal year ended June 30, 2025, totaled 251,477 million yen (up 17.8% year-on-year). We recorded 122,843 million yen in operating income (up 51.0% year-on-year) and 84,652 million yen in net income attributable to owners of parent (up 43.3% year-on-year). Orders totaled 105,226 million yen (down 61.4% year-on-year), and the backlog at the end of the fiscal year was 315,945 million yen (down 31.6% year-on-year).

Our basic policy concerning profit distribution is to flexibly pay dividends based on performance, with a consolidated dividend payout ratio of 35% being the guideline. Our policy concerning retained earnings is to use them effectively for new technology/product R&D, for infrastructure investment and operating capital in line with business growth, and for hiring good talent so that we can further improve the company's quality and establish a solid foundation for long-term sustainable growth.

Based on the policy described herein, we pay a year-end dividend of 214 yen per share this fiscal year, and the annual dividend is 329 yen per share (up 99 yen per share year-on-year) with a 35.1% dividend payout ratio.

We have also decided to repurchase up to 1 million shares of our own stock for a total amount of up to 12 billion yen for the purpose of increasing enterprise value and shareholder returns after comprehensively considering various factors including business environment, growth opportunities, current capital efficiency, financial health, and stock price.

In FY2025, we released three new mask inspection systems and one new wafer inspection system.

The first mask inspection system we released last fiscal year is ABICS E320, the next-generation model of our ABICS EUV Mask Blanks Inspection and Review System. E320 features newly designed high-magnification optics and optimized illumination optics to achieve higher performance than its predecessor, ABICS E120.

The second and third ones are PELMIS EPM100, an EUV Pellicle Inspection System, and PELMIS EPM200, the latest model of the PELMIS Series. In recent years, the expansion of the EUV market has led to an increase in demand for inspection of EUV pellicles, the protective film attached to EUV masks. The PELMIS Series provides high-precision detection of particles on the surface of EUV pellicles and automatically determines whether they are on the front or back side of the pellicle. EPM200 also supports inspection of carbon nanotube (CNT) pellicles, which are highly anticipated next-generation EUV pellicles. EPM200 can detect tiny particles on the surface of CNT pellicles, a capability not previously possible, and automatically determine whether they are on the front or back side. It also features defect type classification and various other applications, making it a powerful quality control tool for CNT pellicle manufacturers and device makers.

In the area of wafer inspection, we released SICA108, a SiC Wafer Inspection and Review System that enables customers to concurrently perform high-speed inspection and high-accuracy classification of surface and crystallographic defects. SiC power devices are used in a variety of applications, including electric vehicles and solar cells. Since SiC wafer production is technically demanding, it is a challenge to achieve higher yields and lower manufacturing costs. Lasertec released SICA108 to help overcome this challenge. For SICA108, we have renewed the inspection optics of SICA88, the current de facto standard tool widely used among many customers, to provide higher throughput and improved performance in the quality analysis of SiC wafers with a lower cost of ownership.

As a result of our efforts to release products like these that are tailored to our customers' needs, we received an EPIC Supplier Award from Intel Corporation, one of our major customers, in April 2025. The award recognizes our excellent performance and contributions to quality improvements in their supply chain. Lasertec will keep working closely with our customers and providing solutions to help overcome their challenges.

We have been facing an adverse business environment recently. Orders received in FY2025 amounted to 105.2 billion yen, a significant decline from the previous fiscal year. Despite this, semiconductor demand keeps growing in a variety of applications, and the semiconductor market is expected to reach USD 1 trillion in 2030. The technology trends driving the evolution of semiconductors—miniaturization, new materials, and new structures—will continue to be pursued. We will continue to provide customer-oriented products and services that support these trends to capture mid- to long-term growth opportunities.

Under our Mid-term Business Plan for the six-year period from July 1, 2024, to June 30, 2030, we are taking action to pursue the goals of "aiming for maximum sales and further growth with rapid product development, superior technical expertise, and the establishment of strong relationships with customers based on trust." One of the key measures we are taking is to reduce our lead times to between 6 and 18 months. So far, we have achieved a significant reduction in lead times for many products, including our core products, by optimizing resource allocation and improving production and system installation processes.

We are also trying to expand our service business and increase the ratio of service revenue to at least 20%. Our service business consists of the provision of maintenance and the replacement of consumables for products installed at customer sites. It is crucial that we enhance this service to support customers' long-term use of our products. We are determined to support our customers even more sincerely and in a timely manner so that we can further earn their trust and achieve future business growth.

In closing, let me reiterate our resolve to win higher customer satisfaction and increased corporate value in the medium to long term by adapting to our changing business environment and achieving the goals of our Mid-term Business Plan.

Thank you.