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DISCO CORPORATION All rights reserved January 21, 2026 FY2025 Third Quarter Financial Results DISCLAIMER Statements in this PowerPoint with respect to DISCO's current strategies, plans, estimates, and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of DISCO. These statements are based on management's assumptions and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. DISCO cautions you that a number of important factors could cause actual results to differ materiallyfrom those discussed in the forward-looking statements, and you should not make decision on your investment thoroughly based on these statements. Such factors include, but not limited to, (i) general economic conditions and levels of demand in DISCO's markets; (ii) developments in technology and resulting changes in semiconductor and/or electronic component manufacturing process; (iii) levels of capital investment for manufacturing semiconductors and/or electronic components; (iv) expansions of the area for products and technologies using semiconductors and/or electronic components and its expanding speed; (v) DISCO's ability to continue to offer products and services corresponding to developments of new semiconductors and/or electronic components and new technologies for manufacturing them; (vi) exchange rates, particularly between the yen, the U.S. dollar, and the euro, and other currencies.
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DISCO CORPORATION All rights reserved 2 FY2025 FY2025 FY2024 Billions of Yen 3Q 2Q Amount (%) 3Q Amount (%) Net Sales 109.3 104.6 4.7 4.5% 93.6 15.7 16.8% Gross Profit 78.1 72.7 5.3 7.3% 66.6 11.4 17.2% Gross Profit Margin 71.4% 69.5% 1.9p - 71.2% 0.2p - SG&A 30.7 28.4 2.4 8.3% 27.5 3.2 11.8% Operating Income 47.3 44.4 2.9 6.6% 39.1 8.2 20.9% Ordinary Income 47.0 45.5 1.5 3.3% 42.0 5.0 11.8% Ordinary Income Margin 43.0% 43.5% -0.5p - 44.9% -1.9p - Income before income taxes and minority interests 46.8 44.9 1.9 4.2% 41.9 4.9 11.8% Net Income 36.7 32.1 4.6 14.3% 31.8 4.9 15.5% QoQ YoY Sales: GP margin: SG&A: QoQ Increased due to progress in equipment inspection/acceptance and steady consumable shipments QoQ Increased due to increased profitability from high value-added products and the exchange rate QoQ Increased due to personnel and R&D expenses FY2025 3Q Earnings Results
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DISCO CORPORATION All rights reserved Quarterly Financial Results 3 Billions of Yen 0% 10% 20% 30% 40% 50% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 FY16 1Q 2Q 3Q 4Q FY17 1Q 2Q 3Q 4Q FY18 1Q 2Q 3Q 4Q FY19 1Q 2Q 3Q 4Q FY20 1Q 2Q 3Q 4Q FY21 1Q 2Q 3Q 4Q FY22 1Q 2Q 3Q 4Q FY23 1Q 2Q 3Q 4Q FY24 1Q 2Q 3Q 4Q FY25 1Q 2Q 3Q Net Sales Operating Income Ordinary Income Margin Due to the change in accounting policy, the timing of revenue recognition has been changed to Inspection/Acceptance Basis. FY25_3Q Operating income margin 43.3％, Ordinary income margin 43.0%, Net income margin 33.6% Note: Detailed data is available in the Consolidated Financial Information on DISCO’s website.
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DISCO CORPORATION All rights reserved 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Other Maintenance Parts Precision Processing Tools (Consumables) Precision Processing Equipment Quarterly Sales Breakdown by Product 4 Billions of Yen Note: Composition percentages are available in the “Consolidated Financial Information” on DISCO’s website.
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DISCO CORPORATION All rights reserved 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Asia Japan Europe North America Quarterly Sales Breakdown by Region FY25_3Q Overseas sales ratio: 91.5% 5 Billions of Yen
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DISCO CORPORATION All rights reserved 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 FY16_1Q 2Q 3Q 4Q FY17_1Q 2Q 3Q 4Q FY18_1Q 2Q 3Q 4Q FY19_1Q 2Q 3Q 4Q FY20_1Q 2Q 3Q 4Q FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Quarterly Shipments 6 FY25_3Q Shipment volume: 113.6 billion yen (record high) Billions of Yen
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DISCO CORPORATION All rights reserved FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Non-semiconductors Wafer manufacturing Other semiconductors Optical semiconductors Package singulation IC7 Precision Processing Equipment: Sales by Application Shipment Basis Precision Processing Equipment QoQ In addition to steady shipments for generative AI, an increase in demand for non-IC applications boosted overall sales YoY Solid demand for generative AI applications continues to drive overall sales
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DISCO CORPORATION All rights reserved FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Non-semiconductors Other semiconductors Optical semiconductors Package singulation IC Dicer: Sales by Application 8 Shipment Basis Dicer QoQ Increased for other semiconductors (mainly power semiconductors) and non-semiconductors YoY Decreased mainly for power semiconductors (other semiconductors)
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DISCO CORPORATION All rights reserved FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Non-semiconductors Wafer manufacturing Other semiconductors Optical semiconductors IC Grinder: Sales by Application 9 Shipment Basis Grinder QoQ Increased for IC and other semiconductors (mainly power semiconductors) YoY Increased for IC, mainly for generative AI
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DISCO CORPORATION All rights reserved Precision Processing Tools Sales (Consumables) 10 FY21_1Q 2Q 3Q 4Q FY22_1Q 2Q 3Q 4Q FY23_1Q 2Q 3Q 4Q FY24_1Q 2Q 3Q 4Q FY25_1Q 2Q 3Q Increased from the previous quarter driven by factors such as customer equipment operating rates, and hit a record high
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DISCO CORPORATION All rights reserved Balance Sheet (Summary) 11 FY2025 FY2025 Billions of Yen 3Q 2Q Amount Cash and deposits 246.1 222.9 23.2 Notes and account receivable 50.8 53.8 -3.0 Inventories 141.6 138.7 2.9 Total current assets 447.0 421.6 25.3 Property, plant and equipment 211.6 211.0 0.6 Total noncurrent assets 231.3 229.7 1.6 Total assets 678.3 651.4 26.9 Current liabilities 134.7 132.7 2.0 Noncurrent liabilities 0.9 1.0 0.0 Total liabilities 135.7 133.7 2.0 Total net assets 542.6 517.7 24.9 Total liabilities and net assets 678.3 651.4 26.9 Equity Ratio 79.8% 79.2% 0.6p Total assets: Liabilities: Net assets: Increased mainly for cash and deposits and inventories Although income taxes payable decreased, contract liabilities and accounts payable increased Increased mainly for retained earnings
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DISCO CORPORATION All rights reserved Earnings Forecast 4Q FY2025 12 Assumed exchange rate for 4Q (Jan-Mar): 1 US dollar = 154 yen, 1 euro = 181 yen Currency sensitivity (annualized) US dollar: Approx. 1.7 billion yen, Euro: Approx. 0.1 billion yen *Rounded to the nearest 100 million yen Billions of Yen Forecast FY24 1Q 2Q 3Q 4Q FY25 1Q 2Q 3Q 4Q Net Sales 82.8 96.2 93.6 120.7 89.9 104.6 109.3 115.2 Operating Income 33.4 42.6 39.1 51.7 34.5 44.4 47.3 45.9 Ordinary Income 33.6 41.4 42.0 51.9 34.0 45.5 47.0 45.9 Net Income 23.7 29.7 31.8 38.6 23.8 32.1 36.7 33.8 Operating Income Margin 40.3% 44.3% 41.8% 42.8% 38.4% 42.4% 43.3% 39.8% Ordinary Income Margin 40.6% 43.0% 44.9% 43.0% 37.8% 43.5% 43.0% 39.8% Net Income Margin 28.6% 30.9% 34.0% 32.0% 26.5% 30.7% 33.6% 29.3% Shipment Figures 101.1 97.6 110.3 92.5 111.1 96.3 113.6 116.9
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DISCO CORPORATION All rights reserved Dividend Policy and Dividend Payments 13 Dividend Policy • Decisions concerning the distribution of surpluses are made at the general shareholders meetings, in the case of final dividends, and by the Board of Directors, in the case of interim dividends. • 1. Adopting a performance-linked dividend policy and aiming at giving clearer priority to shareholder returns, our target dividend payout ratio is 25% of the consolidated half-yearly net income. There will be interim and final dividends, each of which will be equivalent to 25% of the half-yearly consolidated net income. • 2. Irrespective of the level of income, a reliable dividend of ¥10 per half-year will be maintained. This means that the minimum yearly dividend will be ¥20. • 3. Unless there is a loss, if the year-end balance of cash and deposits after payment of dividends and income taxes is greater than the projected funding requirements for the acquisition of technology resources, such as through patent purchases and investments in venture businesses, facility expansion, the retirement of interest-bearing debt, and other purposes, one-third of that surplus will be added to dividends. [Remarks] The ¥20 payout stipulated in our stable dividend policy may be reviewed if there are consolidated net losses for three consecutive years. 124 129 163 163 126 14555% 38% 40% 57% 62% 44% 40% 40% 36.1% 37.5% 0% 20% 40% 60% 80% 0 100 200 300 400 500 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Additional Dividends 2H Dividend Per Share 1H Dividend Per Share Dividend Payout Ratio FY25 Interim (actual) 129 yen Year-end (forecast): 308 yen *The Company implemented a stock split in the proportion of 1 share into 3 shares effective as of April 1, 2023 (The dividend trend before FY22 has been represented under the assumption that the applicable stock split has been done) Yen Forecast
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DISCO CORPORATION All rights reserved Calculation of Surplus Distribution as Additional Dividends 14 Year-end balance Surplus funds Necessary funds 1. Linked to financial performance and condition 2. Provision based on a plan １/３ 195.4 B yen 148.4 B yen 47.0 B yen 15.6 B yen Operating funds Facility expansion Refund of interest bearing debt Taxes and dividends Technical purchases (including M&A) Consolidated sales Previous year ÷ 12 months x 2 Average of past 3 years Consolidated sales x 10％ Hiroshima Works new plant, etc. 69.8 B yen 32.0 B yen － 30.2 B yen 16.4 B yen 1 2 Breakdown of necessary funds: Additional dividends Current Forecast *Contract liabilities (advances received) are taken into account. *
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DISCO CORPORATION All rights reserved R&D/CAPEX Forecast 15 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAPEX Depreciation R&D Expenses Forecast FY25 Forecast Billions of Yen CAPEX: Approx. 33 billion yen; including rationalization investment, reconstruction of the Haneda R&D Center, and construction of a new plant. Depreciation: Approx. 15 billion yen R&D Expenses: Approx. 34 billion yen; proactive research and development continues.
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DISCO CORPORATION All rights reserved FY21 FY22 FY23 FY24 FY25 FY26 FY27 Breakdown of CAPEX 16 Forecast Haneda R&D Center New Building Expense for purchasing equipment and facilities Hiroshima Office New Plant Real Estate for R&D Haneda R&D Center Real Estate for R&D: Approx. 50 billion yen Payment timing: FY24 Haneda R&D Center new building: Approx. 14 billion yen Payment timing: FY25~27 Hiroshima Works new plant: Approx. 33 billion yen Payment timing: FY25~27
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DISCO CORPORATION All rights reserved Sales Forecast By Product 17 Shipment Basis Forecast FY25_4Q （QoQ） Blade dicers 30% Laser Saws 20% Dicers 25% Grinders -10% Accessory Equipment 80% Precision Processing Equipment 10% Precision Processing Tools (Consumables) -5% Others -15% Product
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DISCO CORPORATION All rights reserved 18 Reference Data
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DISCO CORPORATION All rights reserved Data by Product 19 Shipment Basis Composition QoQ YoY Precision Processing Equipment 61% 23% 0% Dicers 28% 14% -12% Blade Dicers 13% -6% -25% Laser Saws 15% 41% 4% Grinders 30% 32% 16% Accessory Equipment 3% 30% -14% Precision Processing Tools 22% 8% 9% Others 17% 14% 9% Total 100% 18% 3% Product 3Q
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DISCO CORPORATION All rights reserved Composition by Application 20 Shipment Basis Product Application 24-1Q 24-2Q 24-3Q 24-4Q 25-1Q 25-2Q 25-3Q Dicers IC 67% 69% 60% 62% 78% 78% 64% Package singulation 4% 3% 6% 4% 5% 4% 8% Optical semiconductors 5% 5% 10% 7% 5% 9% 6% Other semiconductors 19% 16% 18% 13% 7% 5% 11% Non-semiconductors 5% 7% 7% 14% 6% 4% 11% Dicers 100% 100% 100% 100% 100% 100% 100% Grinders IC 60% 61% 62% 48% 80% 71% 68% Optical semiconductors 6% 1% 8% 11% 5% 6% 1% Other semiconductors 27% 31% 19% 22% 9% 11% 15% Wafer manufacturing 6% 4% 9% 14% 4% 8% 10% Non-semiconductors 2% 3% 3% 6% 2% 4% 6% Grinders 100% 100% 100% 100% 100% 100% 100% FY25FY24
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DISCO CORPORATION All rights reserved 21 Shipment Basis YoY by Application Product Application 24-1Q 24-2Q 24-3Q 24-4Q 25-1Q 25-2Q 25-3Q Dicers IC 210% 135% 50% -8% 23% -7% -7% Package singulation 23% -15% 270% 7% 33% 14% 24% Optical semiconductors -26% -46% 112% 26% -5% 50% -47% Other semiconductors -3% -33% 15% -48% -58% -72% -45% Non-semiconductors -17% -13% 26% 65% 34% -54% 55% Dicers 75% 36% 49% -10% 7% -17% -12% Grinders IC 160% 68% 73% -14% 66% 18% 28% Optical semiconductors 46% -86% -15% 819% -1% 652% -84% Other semiconductors -16% -4% -15% -37% -59% -63% -5% Wafer manufacturing -45% -62% 79% 26% -8% 104% 28% Non-semiconductors -50% -24% 19% 31% 46% 29% 125% Grinders 37% 11% 34% -6% 24% 2% 16% FY25FY24
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DISCO CORPORATION All rights reserved 22 Shipment Basis QoQ by Application Product Application 24-1Q 24-2Q 24-3Q 24-4Q 25-1Q 25-2Q 25-3Q Dicers IC 20% -4% -7% -14% 62% -28% -7% Package singulation 14% -34% 119% -35% 43% -44% 138% Optical semiconductors 10% -12% 115% -40% -16% 40% -23% Other semiconductors -11% -22% 19% -37% -28% -48% 134% Non-semiconductors -34% 46% -3% 77% -47% -50% 227% Dicers 8% -7% 7% -16% 29% -29% 14% Grinders IC 14% -2% 18% -35% 120% -30% 28% Optical semiconductors 402% -85% 952% 20% -46% 10% -78% Other semiconductors -17% 10% -29% -3% -46% -1% 80% Wafer manufacturing -45% -29% 148% 29% -59% 56% 56% Non-semiconductors -59% 62% 24% 61% -55% 44% 115% Grinders -1% -4% 17% -16% 31% -20% 32% FY25FY24
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DISCO CORPORATION All rights reserved 23 Inspection/Acceptance Basis Composition by Region Note 1: Including sales to local factories of foreign manufacturers Composition by Region FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q Japan 9% 11% 12% 10% 10% 10% 9% North America 15% 10% 8% 15% 9% 8% 6% Asia 69% 72% 74% 66% 75% 75% 79% Singapore 6% 8% 8% 7% 7% 7% 10% Taiwan 16% 17% 19% 22% 27% 28% 28% Korea 14% 12% 9% 9% 9% 10% 6% China (Note 1) 32% 33% 37% 27% 30% 28% 34% Other 1% 1% 1% 2% 3% 2% 1% Europe 7% 7% 5% 9% 6% 7% 6% Total 100% 100% 100% 100% 100% 100% 100%
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DISCO CORPORATION All rights reserved DISCO believes that striving to increase Mission-achievability connects to increase in our Value-exchangeability and competitiveness, and enables us to respond to the expectations of all capital-market stakeholders. Pursuing Quality of Business Utilization of Tangible Net Worth and Purpose Shareholder Return Policy Action to Implement Management that is Conscious of Cost of Capital and Stock Price Click here for more details on our policy regarding the above To Investors Considering Purchasing DISCO Shares 24
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DISCO CORPORATION All rights reserved 25 These materials Although close attention is paid to the written contents, if there are any mistakes in the information and/or data tampering by a third party, DISCO does not take any responsibility. In addition, the purpose of this document is not for soliciting investment. Please invest based on your judgement. Notation The yearly accounting period from April of the current year to March of the following year is denoted by FY (Fiscal Year), and quarterly accounting periods are denoted by 1Q (April – June), 2Q (July – September), 3Q (October – December), and 4Q (January – March). Depending on the monetary unit, figures lower than the minimum unit may be rounded up or down, as a result of which the total sum may not match. Percentages are calculated based on the actual figures. Disclaimer Statements in this document with respect to DISCO's current strategies, plans, estimates, and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of DISCO. These statements are based on management's assumptions and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. DISCO cautions you that a number of important factors could cause actual results to differ materially from those discussed in the forward-looking statements, and you should not make decision on your investment thoroughly based on these statements. Such factors include world and domestic business trends and steep exchange rate fluctuations, as well as war, terrorism, natural disasters, and epidemics. When providing English-language materials for English-speaking people, if there is a discrepancy between the Japanese (original) and English translations, the Japanese-language version shall prevail. The contents of these materials are protected under international copyright laws, treaty provisions, and other applicable laws. Except for personal, non-commercial internal use, you need to obtain DISCO's prior explicit approval to use (including copying, modifying, reproducing in whole or in part, uploading, transmitting, distributing, licensing, selling and publishing) any of the contents of these materials. https://www.disco.co.jp/eg/