The global economy will probably continue to experience uncertainty despite progress toward resolving worldwide shortages of semiconductors and other materials and supply chain disruptions. That is because of the war between Russia and Ukraine, the impact of this and other factors on energy and raw material prices, and intensifying Sino-American trade friction.
For the next fiscal year, Ushio accordingly forecasts net sales of ¥188 billion, up 7.4% year-on-year, although operating profit should decline 21.2%, to ¥12.5 billion, with ordinary profit falling 30.5%, to ¥14 billion. Profit attributable to owners of parent should decline 27.0%, to ¥10 billion.
The exchange rate assumptions for these forecasts are ¥135 to the U.S. dollar and ¥145 to the euro.

In UV lamps for lithography equipment, final demand for semiconductors, electronic devices, and printed circuit boards will probably remain sluggish. Production adjustments should continue owing to global recession concerns. Sales of UV lamps for LCD panel displays will likely stay lackluster despite panel maker production adjustments bottoming out.
Overall sales of UV lamps for lithography equipment should therefore decline.
At the same time, sales of lithography equipment for cutting-edge IC package substrates and direct-write exposure systems for package substrates should rise only slightly despite demand growth assumptions remaining unchanged for the medium through long terms. This is because of near-term postponements of some investment plans. For EUV lithography mask inspection light sources, maintenance service revenues should increase from operations of installed light sources remaining steady. Light source sales will probably decline, however, as cost and other issues will probably prolong an installations adjustment phase.
Ushio will expand investments in development and in reinforcing its support structure for lithography equipment and EUV, primarily for the semiconductor area.
Management accordingly expects Industrial Processes business revenues and earnings to decline in the year ahead.

Sales of digital cinema projectors should increase as replacement demand recuperates from a low ebb as capital investment turns around in line with an economic recovery from the pandemic. At the same time, management anticipates resolutions from the first through second halves of the year in projector component shortages and in component procurement cost hikes that affected performance in the previous term.
In general imaging, sales of projectors and related imaging equipment should rise increase on greater demand for commercial facilities and events. Sales of replacement xenon lamps for cinema projectors should increase slightly. That is because Chinese market demand should at last recover gradually from the pandemic.
Visual Imaging business revenues and earnings should thereby increase in the coming year.

Demand for light-based equipment in the medical industry is growing moderately. Sales of dermatological equipment should increase from gaining market share with new offerings. In addition, sales of lamp light sources for medical applications should rise with demand. Sales of sodium lamps for a range of uses in the European and U.S. markets should decline, however, as demand is shrinking for such offerings amid a fast shift to solid-state light sources.
Life Sciences business revenues should accordingly decrease in the next fiscal year.

Demand for light-based applications in the medical, healthcare, and industrial sensor markets remains firm. Sales of devices and modules for these markets should increase.
Photonics Solutions business revenues should thus rise in the next fiscal year.