SCREEN Holdings Co., Ltd.

Business Details

A business handled by SCREEN Semiconductor Solutions Co., Ltd., covering the development, manufacturing, sales, and maintenance services of semiconductor production equipment. The mainstay product is single-wafer cleaning equipment, deployed for foundry, logic, and memory applications. In FY2026 (ending March 2026), sales of post-sales services and equipment for DRAM increased, while sales of equipment for foundry applications decreased. By region, sales to Taiwan increased, while sales to China and the United States decreased.

Recent Overview

SPE sales decreased 6.5% year-on-year and operating profit decreased 10.4% year-on-year due to declines in foundry-related and China-related sales

In FY2026 (ending March 2026), SPE segment sales were ¥485,982 million (down 6.5% year-on-year), and operating profit was ¥122,707 million (down 10.4% year-on-year). While increased sales of post-sales services and DRAM-related equipment contributed to improved profitability, declining sales of foundry-related equipment and increased fixed costs weighed on profit. By region, sales to Taiwan increased, while sales to China and the United States decreased. The full-year forecast for FY2027 (ending March 2027) anticipates a significant recovery, with SPE sales expected to reach ¥600,000 million.

Key Products

Growth Drivers

• Expanding capital investment demand for advanced semiconductors (miniaturization and chiplet technology) driven by the expanding use of generative AI and progress in digital transformation
• Solid trends in investment for advanced logic and memory (DRAM), with a continued favorable outlook
• Steady growth in post-sales (maintenance services) revenue, strengthening the earnings base and contributing to improved profitability
• Increased sales to Taiwan (demand for advanced foundry applications driven by expanding AI-related investment)
• Improved profitability through productivity enhancement measures at the S³ factory complex at the Hikone plant

Risks

• Risk of impact on sales to China from U.S. trade policy (export controls and tariffs) (sales to China declined in FY2026, ending March 2026)
• Fluctuations in the semiconductor capital investment cycle (risk of continued decline in demand for foundry-related equipment)
• Downward pressure on profit margins from increased fixed costs (R&D expenses and personnel costs)
• Risk of sales concentration among specific customers (dependence on Taiwanese customers including TSMC)
• Governance risk related to improper revenue recognition practices at SCREEN Semiconductor Solutions Co., Ltd. (certain transactions in FY2024, ended March 2024) (recurrence prevention measures have been formulated and announced)

Business Details

A segment engaged in the development, manufacturing, sales, and maintenance services of printing-related equipment. Centered on POD (Print on Demand) equipment, it provides equipment for commercial and package printing. The recurring business, centered on ink, forms a stable earnings base, and both equipment sales and recurring sales increased. The overseas sales ratio was approximately 62% (FY2026 full year, ending March 2026).

Recent Overview

Sales increased 8.5% year-on-year, but operating profit decreased 16.1% due to higher fixed costs and the impact of U.S. tariffs

GA sales for the full year of FY2026 (ending March 2026) were ¥57,494 million (up 8.5% year-on-year), achieving increased sales. This was supported by growth in both equipment sales and sales in the ink-centered recurring business. On the other hand, operating profit declined to ¥3,602 million (down 16.1% year-on-year). In addition to increased fixed costs, the impact of U.S. tariffs weighed on profitability. The full-year sales forecast for FY2027 (ending March 2027) is ¥59,000 million, continuing to anticipate sales growth.

Key Products

Growth Drivers

• Continued expansion of the recurring business centered on ink
• Solid trends in demand for POD equipment in European and U.S. markets
• Accelerating shift to digital printing driven by needs for reduced environmental impact and digital transformation
• Market expansion through the establishment of a new package printing business
• Expansion of market share in commercial and package printing markets through the introduction of high-performance new products

Risks

• Pressure on profit margins from increased fixed costs (R&D expenses and personnel costs)
• Deteriorating profitability due to the impact of U.S. tariffs
• Long-term risk of shrinking equipment demand due to digitalization and paperless trends in the printing market
• Foreign exchange risk (high proportion of overseas sales, mainly to Europe and the United States)
• Risk of declining POD equipment sales prices due to intensifying price competition with competitors

Business Details

This segment handles the development, manufacturing, sales, and maintenance services of display manufacturing equipment (mainly for OLED and LCD) and film-forming equipment. Panel manufacturers are the primary customers, and against a backdrop of a recovery in FPD demand and renewed capital investment appetite among panel manufacturers, sales of OLED-related equipment increased in FY2026 (ending March 2026). The combination of improved profitability and increased sales resulted in a significant improvement in operating profit, up 181.8% year-on-year.

Recent Overview

Achieved a 24.9% increase in sales and a 181.8% increase in operating profit due to increased OLED-related equipment sales and improved profitability

In FY2026 (ending March 2026), against a backdrop of a recovery in display demand in the FPD industry and renewed capital investment appetite among panel manufacturers, sales of OLED-related equipment increased. Sales were ¥44,755 million (up 24.9% year-on-year), and operating profit was ¥8,605 million (up 181.8% year-on-year), representing a substantial improvement. Improved profitability contributed significantly to profit growth. The full-year forecast for FY2027 (ending March 2027) is sales of ¥47,000 million, continuing to anticipate sales growth.

Key Products

Growth Drivers

• Recovery in OLED demand in the FPD industry and improved capital investment appetite among panel manufacturers
• Growth in sales scale driven by expanded sales of OLED-related equipment
• Improved profitability through continued profitability improvement activities
• Expansion of application areas for coating technology (deployment beyond displays)
• Diversification of the earnings base through expansion of the contract manufacturing business

Risks

• High dependence on the capital investment cycle in the FPD market (risk of deteriorating performance during periods of investment stagnation)
• Investment trends and geopolitical risk among major customers, namely Chinese and Korean panel manufacturers
• Uncertainty stemming from the impact of U.S. trade policy
• Risk of delayed response to rapid changes in display technology (emergence of new technologies beyond OLED)
• Sustainability of the high operating profit margin (19.2%) (dependence on equipment sales mix and the timing of customer investment)

Business Details

A segment handled by SCREEN PE Solutions Co., Ltd. It engages in the development, manufacturing, sales, and maintenance services of printed circuit board equipment (mainly direct imaging exposure systems). Its main customers are in the high-precision substrate market, including package substrates, module substrates, and memory applications, with earnings composed of both equipment sales and post-sales (maintenance and consumables). Although accounting for a small share of approximately 2.4% of overall Group sales (FY2026 full year, ending March 2026), the segment aims to enhance its industry presence through direct imaging technology for high-precision substrates.

Recent Overview

Sales rose slightly on higher post-sales revenue, but operating profit fell sharply due to increased fixed costs

Full-year sales for FY2026 (ending March 2026) were ¥14,545 million (up 2.6% year-on-year), a modest increase, supported by growth in post-sales revenue. On the other hand, operating profit fell sharply to ¥383 million (down 64.2% year-on-year), with the operating profit margin declining from 7.5% to 2.6%. Despite the increase in sales, higher fixed costs weighed on profitability. An impairment loss of ¥206 million was recorded (down from ¥557 million in the prior period). The full-year forecast for FY2027 (ending March 2027) is sales of ¥15,500 million (up 6.6% year-on-year), anticipating a gradual recovery.

Key Products

Growth Drivers

• Expected recovery in capital investment in printed circuit board equipment for memory and package applications
• Expansion of equipment sales through customer adoption and stabilization of mass production operations for the new high-precision substrate products "Ledia 8F" and "Ledia Qs"
• Support for earnings through stable maintenance of post-sales (maintenance and consumables) revenue
• Capturing new demand through the exploration of expanded direct imaging applications

Risks

• Risk of prolonged stagnation in capital investment for printed circuit board equipment (delayed timing of investment recovery)
• An earnings structure with a heavy fixed cost burden relative to equipment sales fluctuations and a high break-even point (operating profit margin declined to 2.6% in FY2026, ending March 2026)
• An impairment loss of ¥206 million was also recorded in FY2026 (ending March 2026), leaving the risk of additional impairment
• Changes in customers' capital investment plans due to geopolitical risks, including the impact of U.S. trade policy
• Continued significant underperformance relative to the medium-term management plan target (operating profit margin of 12–15%)

Business Details

This includes the development, manufacturing, and sales of products in new business areas such as advanced semiconductor packaging, life sciences, and hydrogen-related fields, as well as document planning and production and software development and sales. It consolidates businesses not included in the reportable segments (SPE, GA, FT, and PE), accounting for a small share of approximately 1.3% of the Group's overall sales to external customers (FY2026 results, ending March 2026). The segment is in a growth-nurturing phase for new businesses, and losses continue to be recorded due to upfront investment.

Recent Overview

External sales expanded, but operating loss widened, while impairment losses were significantly reduced

In the full year of FY2026 (ending March 2026), sales to external customers expanded substantially to ¥8,118 million (up 35.3% year-on-year), and total sales including internal sales also increased to ¥27,949 million (up 7.1% year-on-year). On the other hand, the operating loss widened to △¥2,435 million (from △¥1,822 million in the prior period), reflecting continued upfront investment burdens. The impairment loss was significantly reduced to ¥379 million (from ¥1,068 million in the prior period). Segment assets increased to ¥12,121 million (from ¥9,166 million in the prior period), reflecting continued investment in new businesses.

Key Products

Growth Drivers

• Rising demand for advanced semiconductor packaging driven by the expanding use of generative AI and progress in chiplet technology
• Expansion of the hydrogen-related business (water electrolysis CCM) driven by GX promotion and shifts in energy policy, and selection for the Ministry of Economy, Trade and Industry's GX Supply Chain Establishment Support Project
• Transition of the advanced packaging project from a nurturing phase to a commercialization phase
• Expansion of business scale through growth in sales to external customers (¥8,118 million in the full year of FY2026, ending March 2026, up 35.3% year-on-year)
• Ongoing contribution to the Group overall through intra-group sales (¥19,830 million)

Risks

• Continued upfront investment burden for new businesses, with the operating loss widening from △¥1,822 million to △¥2,435 million year-on-year
• High uncertainty regarding commercialization and mass production remains in all new business areas (advanced semiconductor packaging, hydrogen, and life sciences)
• High dependence on intra-group sales (¥19,830 million) relative to sales to external customers (¥8,118 million), making the segment susceptible to fluctuations in internal Group demand
• Although the impairment loss was reduced to ¥379 million from ¥1,068 million in the prior period, asset impairment risk continues to exist
• Geopolitical risks, including the impact of U.S. trade policy, may affect the market development of new businesses