Consolidated Financial Highlights 18F First Quarter 6737 July 31st, 2018
Consolidated Income Statement 17Q1 18Q1 (JPY Million) Amount (%) Amount (%) (%) Net Sales 19,376 100.0 16,540 100.0 85.4 Cost of Goods Sold 13,077 67.5 11,075 67.0 84.7 Gross Profit 6,298 32.5 5,464 33.0 86.8 Selling, general and administrative expenses 4,401 22.7 4,713 28.5 107.1 Operating Income 1,897 9.8 751 4.5 39.6 Non-operating income/expenses 642 3.3 291 1.8 45.4 Ordinary Income 2,540 13.1 1,042 6.3 41.1 Income before income taxes 2,540 13.1 1,042 6.3 41.1 Net income attributable to EIZO Corporation s stockholders 1,822 9.4 703 4.3 38.6 Exchange rate:usd JPY111.09 JPY109.10 (JPY1.99) Exchange rate:eur JPY122.26 JPY130.03 JPY7.77 Foreign exchange sensitivity USD JPY110M Positive (Impact on Operating Income due to a JPY1 appreciation) EUR JPY160M Negative 1
21,000 20,000 19,000 18,000 17,000 16,000 Main Factors for Changes in Net Sales Main Factors for Changes in Operating Income 2,500 2,000 1,500 1,000 500 0 (JPY Million) B&P 19,376 331 201 Forex impact 17Q1 (JPY Million) 1,897 17Q1 88 Raising the gross profit ratio Healthcare V&S 272 5 (83) Creative Work (922) Decrease in net sales 2 Amusement (3,259) Increase in SG&A (312) Other (303) 16,540 751 18Q1 18Q1
Net Sales: Overall 16.7 0.9 3.9 1.2 5.3 22.7 0.6 8.8 1.7 6.5 18.3 1.1 2.9 1.8 6.6 20.4 19.3 1.7 18.9 0.7 2.6 2.1 5.6 1.6 1.8 1.9 1.6 7.6 7.2 6.4 23.1 22.5 2.7 4.3 3.6 2.3 1.8 8.5 7.5 16.5 0.4 2.3 6.8 Total: 85.4% Details: Other: 61.0% Amusement: 42.0% V&S: 96.6% Creative Work: 103.2% 3.7 3.7 4.2 5.1 3.5 4.4 4.7 5.3 3.8 Healthcare: 106.2% B&P: 109.5% 3
Net Sales: Business & Plus Japan Overseas 5.1 5.3 4.7 4.4 4.2 3.7 3.7 3.8 3.1 3.5 3.5 3.6 3.3 3.0 2.7 2.7 3.0 2.6 2.0 1.7 0.9 1.0 1.1 0.8 1.1 1.1 0.8 Total: 109.5% Overseas: 113.6% Sales increased driven by the good momentum of frameless monitors in Europe. Japan: 97.4% Sales remained stable due to increasing sales of larger sized monitors, despite sales volume was decreased. 4
Net Sales: Healthcare Japan Overseas 8.5 6.5 6.6 7.6 6.4 7.2 4.6 7.5 6.8 5.3 3.4 3.4 3.9 3.6 4.1 4.5 3.9 Total: 106.2% 2.9 3.1 3.2 3.6 3.9 2.3 2.7 3.1 3.0 2.8 Overseas: 108.7% Sales increased in Europe and North America. Sales also increased worldwide in multiple segments such as diagnostic, operating rooms and endoscopy. Japan: 103.0% Sales increased due to the effect of Carina System Corp, acquisition in March, 2018. 5
Net Sales: Creative Work Japan Overseas 1.2 Total: 103.2% 0.9 1.0 1.2 1.1 1.1 1.1 1.0 1.1 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.3 0.2 Overseas: 106.1% Sales for professional users increased, particularly with HDR reference monitors. Japan: 91.2% Sales in the Media & Entertainment market increased. Will expand activities to encompass wide markets such as entry-level users. 6
Net Sales: Vertical & Specific Japan Overseas 2.3 1.9 1.8 1.8 1.7 1.8 1.1 1.6 0.9 1.0 0.9 1.1 1.0 0.8 0.8 0.9 1.2 1.0 0.6 0.7 0.8 0.7 0.7 0.8 0.6 Total: 96.6% Overseas: 104.5% Sales increased due to the steady growth in Security & Surveillance. Japan: 87.7% Sales decreased due to the effect of large project successes in 17Q1, despite sales increases in Security & Surveillance and Maritime. 7
Net Sales: Amusement SANYO BUSSAN CO.,LTD. Total: 42.0% 8.8 5.6 Sales decreased due to an industry-wide slow down resulting from new regulation. 3.9 2.9 2.6 1.6 4.3 3.6 2.3 8
Operating Income Operating Income Operating Income / Net Sales 4 15.9% 20% Total: 39.6% 3 2 3.6 9.8% 7.1% 12.3% 10.9% 15% 10% Operating income decreased due to the sales decrease in the Amusement market, in addition to higher SG&A, such as R&D investment and goodwill amortization. 1 5.1% 0.8 1.1 6.4% 6.8% 1.8 2.8 2.4 4.5% 0.7 5% 0 0% 9
Selling, General and Administrative Expenses Total: 107.1% SG&A / Net Sales 6 28.5% 30% Details: 5 4 3 2 24.5% 24.7% 4.1 4.1 18.2% 22.3% 22.7% 22.3% 4.5 4.5 4.4 4.2 0.04 0.06 0.07 0.08 0.08 0.08 0.05 0.03 1.2 1.2 1.2 4.4 19.4% 19.5% 4.4 4.7 0.18 20% 10% Other: 104.1% Amortization of goodwill: 226.6% R&D: 97.9% Personnel: 112.3% 1 0 1.6 0% SG&A increased due to heavily R&D invest in products complying to MIL Standards and acquired Carina System Corp,. 10
Research & Development 1.8 1.6 1.2 1.0 0.8 0.6 0.4 7.7% 1.2 5.8% 8.2% R&D R&D / Net Sales 7.4% 7.8% 7.4% 6.7% 6.5% 9.2% 10% 8% 6% 4% 2% Total: 100.3% The comparison with 17Q1 remains stable. In 18Q1, we continued to heavily invest in products complying to MIL Standards and acquired Carina System Corp,. We did not have the heavy investment into endoscopy that we undertook in 17Q1 and therefore resulted in a stable investment. 0.2 0.0 0% * Includes manufacturing costs for R&D 11
Consolidated Balance Sheets 17F * Increase in the valuation of investment securities due to market value of shares held 12 18Q1 Amount (%) Amount (%) Growth (JPY Million) Cash & Equivalents 20,394 17.1 22,687 18.6 2,292 Notes & Accounts Receivable 22,538 18.9 16,131 13.2 (6,406) Inventories 24,777 20.8 25,451 20.9 674 Other 1,326 1.1 1,174 1.0 (152) Current Assets 69,036 57.9 65,445 53.6 (3,590) Tangible Assets 12,171 10.2 12,634 10.4 462 Invisible Assets 3,930 3.3 3,676 3.0 (254) Other 34,189 28.7 40,248 33.0 6,059 * Fixed Assets 50,291 42.1 56,559 46.4 6,267 Total 119,328 100.0 122,005 100.0 2,676 Accounts Payable 7,619 6.4 6,075 5.0 (1,544) Other 11,039 9.3 9,381 7.7 (1,657) Current liabilities 18,659 15.6 15,456 12.7 (3,202) Long term liabilities 9,147 7.7 11,089 9.1 1,942 Shareholders Equity 91,521 76.7 95,458 78.2 3,937 Total 119,328 100.0 122,005 100.0 2,676
Details of the Market Group Market Group Market / Use Business & Plus (B&P) Healthcare (HC) Creative Work (CW) Vertical & Specific (V&S) Amusement (AMU) Other (OTH) Financial institutions Public authorities Educational facilities Office use High-end home use Medical imaging Diagnostic applications Operating rooms Publication / Printing / Photo editing Video production Air traffic control Maritime Security & Surveillance Other industrial fields LCD-mounted pachinko and slot machines Maintenance services and commissioned development of software 13
Disclaimer Regarding Forward-looking Statements Any statements in this document, other than those of historical fact, are forward-looking statements about the future performance of EIZO and its group companies, which are based on management s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts. Note: 18Q1 appearing in this presentation means First Quarter Fiscal Year 2018. http://www.eizoglobal.com 14