February 2026

During the first six months of this fiscal year, uncertainty in the economic outlook continued to prevail due to concerns over an economic slowdown amid heightened geopolitical risks and policy changes in major economies.

In the semiconductor industry, our primary market, demand for graphics processing units (GPUs), high-bandwidth memory (HBM), and other advanced semiconductors remained strong, driven by increased investment in AI, leading to heightened capital expenditure by device makers.

Under these circumstances, our consolidated net sales for the six-month period ended December 31, 2025, totaled 128,258 million yen (down 0.6% year-on-year). By product segment, semiconductor-related products accounted for 98,316 million yen (down 4.6% year-on-year). Sales of other products accounted for 2,068 million yen (down 44.3% year-on-year) and services for 27,872 million yen (up 25.7% year-on-year). As for consolidated incomes during this period, we recorded an operating income of 62,991 million yen (down 1.1% year-on-year), an ordinary income of 65,130 million yen (up 4.3% year-on-year), and 45,745 million yen in net income attributable to owners of parent (up 5.6% year-on-year).

We are now in the second year of our mid-term business plan for the six-year period ending June 30, 2030.

Semiconductor applications are expanding into various new fields, including generative AI, IoT, 5G/6G, and data centers. Amid this trend, the semiconductor market is expected to reach more than one trillion US dollars in 2030.

We aim to outpace this market growth and achieve an average annual growth rate of 10% or higher. In our mid-term business plan, we have set financial targets of 400 to 500 billion yen in sales and an operating margin of 35% or more.

In the previous fiscal year, we experienced a temporary slowdown in orders due to some customers revising their investment plans. However, we remain confident that growth in the semiconductor market and ongoing advancements in semiconductor technologies will continue to provide mid- to long-term growth opportunities.

We expect orders will begin to gradually recover from the second half of this fiscal year. We are also working to reduce lead times and expand our service business in order to achieve the financial targets of our mid-term business plan.

We are taking various actions to shorten lead times, including optimizing resource allocation, improving our manufacturing and product installation processes, and centralizing operations at Lasertec Innovation Park ("InnoPa"), which began operations in 2023. These efforts have reduced the lead times for our ACTIS and MATRICS mask inspection systems.

We have also been working to expand our service business, which provides a stable source of recurring income, and increase service revenues to 20% or higher of sales. As a result, service revenues in the previous fiscal year increased by 48% year on year to 42.9 billion yen. We will continue to increase the number of service engineers in our group, enhance their capabilities, and further strengthen our customer support systems in order to support customers' long-term use of our products.

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.

We set the interim dividend for the current fiscal year at 132 yen per share, up 17 yen from the previous fiscal year.

Our forecast for the year-end dividend is 197 yen per share, and the forecast for the full-year dividend is 329 yen per share, the same as the previous fiscal year.