SCREEN Holdings (7735) investor relations material

Executive summary

• Net sales for FY2026/03 were ¥605.7 billion, down 3.1% year-over-year, with operating income at ¥122.5 billion, down 9.7%, and profit attributable to owners at ¥92.0 billion, down 7.5%.

• Operating margin was 20.2%, a decrease of 1.5 points year-over-year.

• Fiscal year-end dividend was raised to ¥170 per share, with an annual dividend of ¥293 per share.

• Despite a moderate global recovery, uncertainty persists due to U.S. trade policies and geopolitical risks, especially in China and the Middle East.

• The semiconductor industry saw continued investment in advanced logic and memory, while FPD market demand improved.

Financial highlights

• Gross profit for FY2026 was ¥233.2 billion, with a gross margin of 38.5%.

• Net assets increased to ¥486.7 billion, with an equity ratio of 67.4%.

• Operating cash flow for the year was ¥92.7 billion, with free cash flow at ¥62.9 billion.

• R&D expenses reached ¥37.8 billion, capital expenditures ¥27.7 billion, and depreciation/amortization ¥14.5 billion.

• Cash and cash equivalents at year-end were ¥225.7 billion, up ¥27.3 billion.

Outlook and guidance

• FY2027/03 sales are forecast at ¥725.0 billion (+19.7%), with operating income of ¥150.0 billion (+22.4%) and an operating margin of 20.7%.

• Profit attributable to owners is forecast at ¥110.0 billion (+19.6%).

• Interim and year-end dividends for FY2027 are forecast at ¥60 and ¥115 per share (post-split), totaling ¥175.

• All segments are expected to achieve steady growth, with significant increases in SPE and FT segments.

• R&D and CAPEX are planned at record-high levels for FY2027/03, reflecting a growth investment phase.