Earnings Forecast
| FY2022 | FY2023 | ||||
|---|---|---|---|---|---|
| Results | Forecast | vs. FY2022 | |||
| (Δ) | (%) | ||||
| Sales(*1) | 560.2 | 480.0 | -80.2 | -14.3% | |
| Operating Income | 167.7 | 105.0 | -62.7 | -37.4% | |
| Operating Margin | 29.9% | 21.9% | -8.0pts | ||
| Income Before Tax | 171.3 | 103.5 | -67.8 | -39.6% | |
| Net Income | 130.4 | 78.0 | -52.4 | -40.2% | |
| Net Income Margin | 23.3% | 16.3% | -7.0pts | ||
| R&D Expenses | 60.1 | 63.0 | +2.9 | +4.8% | |
| CapEx | 25.0 | 21.0 | -4.0 | -16.0% | |
| D&A | 21.4 | 23.0 | +1.6 | +7.5% | |
| Exchange Rate(*2) | 1 US$ | ¥134 | ¥130 | ¥4 Appreciation | |
| 1 Euro | ¥140 | ¥140 | – | ||
(*1): Intersegment transactions have been eliminated from totals
(*2): Our latest forecast for the impact of exchange rate fluctuations on FY2023 operating income is plus ¥1.1 billion per 1 yen of JPY depreciation vs USD, and minus ¥0.3 billion per 1 yen of JPY depreciation vs the euro
Looking at Advantest's market environment going forward, Advantest anticipates that in the medium to long term, semiconductors will need to have even better functionality and reliability as they rise to the challenge of providing infrastructural support for the worldwide digital transformation and carbon-neutral movement. Advantest's expectations of mid/long-term growth remain unchanged. Indeed, the emergence of new AI-based applications has accelerated the digital transformation, while growing demand for Net Zero initiatives has increased the importance of semiconductor technology for better energy efficiency. Customers are also aggressively continuing to develop next-generation devices, including advances in miniaturization. Advantest expects demand for semiconductor test equipment, which ensures that semiconductors support our "safe, secure, and comfortable" environment and society, to grow in step with the growth of the semiconductor market.
In the short term, however, the outlook for our business environment is becoming increasingly uncertain due to global recessionary risks exacerbated by rising inflation and higher interest rates, as well as growing concerns about geopolitical risk factors and pronounced exchange rate fluctuations. As recessionary concerns intensify, semiconductor manufacturers are expected to continue their inventory and production adjustments for the time being. Therefore, Advantest expects the semiconductor tester market to contract year-on-year in CY2023. Regarding the tightening of restrictions on the export of semiconductor production equipment to China by the United States and its allies, the direct impact on our FY2023 earnings is currently expected to be minor, but Advantest will continue to closely monitor the situation.
Amidst this uncertain market outlook, based on our outlook for each of our business segments, our full-year consolidated earnings forecast for FY2023 calls for net sales of (Y) 480.0 billion, operating income of (Y) 105.0 billion, income before income taxes of (Y) 103.5 billion, and net income of (Y) 78.0 billion. This forecast is based on exchange rate assumptions of 1 USD to 130 JPY and 1 EUR to 140 JPY.
Advantest did not recognize more than a minor direct impact on business results from COVID-19 and the situation in Ukraine in the fiscal year ended March 31, 2023. However, as mentioned above, our business environment is becoming increasingly uncertain. Advantest will pay close attention to changes in the external environment and respond quickly and flexibly with measures that may include cost controls as necessary.