Kioxia Holdings Corporation · TSE:285A

Kioxia — Kioxia Hldgs — Q2 2025 Earnings Presentation

30 slides from Kioxia's earnings presentation, Nov 13, 2025

  1. Slide 1: Second Quarter of FY2025 Financial Results

    Second Quarter of FY2025 Financial Results Kioxia Holdings Corporation November 13, 2025 © 2025 KIOXIA Holdings Corporation. All Rights Reserved.

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements included in this presentation are prepared based on our expectations and projections in light of the information currently available to us, which involve various risks and uncertainties (including, but not limited to, economic trends, market demand and the highl

  3. Slide 3: Today's Key Takeaways

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  4. Slide 4: Today's Key Takeaways

    Today’s Key Takeaways 1 Robust NAND demand benefiting from AI tailwinds, improved profitability in FQ2 2 We expect record revenue and increased profit in FQ3 driven by higher ASPs and AI-related NAND demand 3 The supply-demand balance is expected to remain tight in the near term © 2025 KIOXIA Holdin

  5. Slide 5: Fiscal Year Ending March 2026, Second Quarter Results

    Fiscal Year Ending March 2026, Second Quarter Results

  6. Slide 6: Financial Highlights (Three Months Ended September 30, 2025)

    Financial Highlights (Three Months Ended September 30, 2025) Adjusted Non-GAAP Revenue Non-GAAP FCF Net D/E Ratio3 Operating Profit1 Gross Profit1 448.3 Bn Yen 145.6 Bn Yen 87.2 Bn Yen 41.3 Bn Yen 107% Including 43.0 Bn yen for JV-related Margin 32% Margin 19% 2 Margin 36% After excluding for JV-rel

  7. Slide 7: Three Months Ended September 30, 2025 Results

    Quarterly Three Months Ended September 30, 2025 Results Both Non-GAAP operating profit and net income for Q2 exceeded the upper limit of the guidance Q1 Q2 Guidance （Bn Yen） Results （Announced on Aug. 8） Results Revenue 342.8 420.0 ~ 470.0 448.3 ASP4 QoQ +30.8% (QoQ) Non-GAAP 45.2 Low single-digit %

  8. Slide 8: Quarterly Sales Results by Application

    Quarterly Sales Results by Application Data centers continue to show robust demand, primarily driven by AI servers Transition to 8th generation BiCS FLASH™ for smartphones is progressing as expected ⚫ Transition to the 8th-gen BiCS 35% Smart Devices1 157.3 Bn Yen FLASH™ and seasonality have resulted

  9. Slide 9: Cash Flow

    Quarterly Cash Flow Continued disciplined capital investment; positive free cash flow for seven consecutive quarters (Bn Yen) FCF: 41.3 Bn Yen Operating cash flow ⚫ Excluding one-time expenses, Q2 operation cash flow is higher than Q1 ✓ Refinancing fees and other costs: (25.8) Billion Yen Investing

  10. Slide 10: Balance Sheet

    Quarterly Balance Sheet Continued to strengthen balance sheet to optimize for future growth Assets Liabilities and Equity (Bn Yen) (Bn Yen) 2,919.7 2,982.2 2,982.2 2,919.7 Cash and cash equivalents 167.9 235.5 544.6 Trade and other payables 238.6 236.4 Trade and other receivables 504.0 Inventories 3

  11. Slide 11: Enhancing Financial Structure: Transition of Net Debt-to-Equity Ratio

    Enhancing Financial Structure: Transition of Net Debt-to-Equity Ratio Aim to further improve cash flow generation and net D/E ratio going forward （Bn Yen） 1,167.6 1,067.9 227% 965.6 931.0 912.2 873.7 Net D/E ratio1 173% 819.2 760.2 FY2025 Q2: 107% 718.6 737.6 (FY2024: 126%) 617.8 513.6 134% 126% 120

  12. Slide 12: FY2025 Q3 Guidance

    FY2025 Q3 Guidance FY2025 FY2025 (Bn Yen) Q2 Results Q3 Guidance Revenue 448.3 500.0 ~ 550.0 Non-GAAP 87.2 100.0 ~ 140.0 Operating Profit Non-GAAP 41.7 61.0 ~ 89.0 Net Income1 Non-GAAP Earnings Per Share (Yen) 2 77.22 113.02 ~ 164.89 Exchange Rate (Yen) USD / JPY 147 151 1. Non-GAAP profit attributa

  13. Slide 13: Overview of Market Outlook and Key Initiatives for the FY Ending March 2027

    Overview of Market Outlook and Key Initiatives for the FY Ending March 2027

  14. Slide 14: NAND Market Outlook

    NAND Market Outlook NAND market growth fueled by AI-driven demand in DC/Enterprise Robust demand fueled by significant investments in AI Accelerated traditional server refresh (replacement) demand Accelerated SSD demand in AI Inference workload DC/Enterprise New demand of high capacity QLC SSD due t

  15. Slide 15: Key Initiatives for the FY Ending March 2027

    Kioxia Key Initiatives for the FY Ending March 2027 1 Gen. 8th BiCS FLASHTM Gen 8th as Kioxia’s core product to capture AI demand from early 2026 Leverage CBA technology to achieve superior cost competitiveness 2 AI Mass production / launch of new products aligned with AI demand Commence mass produc

  16. Slide 16: Summary

    Summary 1 Robust NAND demand benefiting from AI tailwinds, improved profitability in FQ2 ✓ Q2 results exceeded the high end of our guidance, reflecting market recovery ✓ Net income more than doubled QoQ We expect record revenue and increased profit in FQ3 driven by higher ASPs and 2 AI-related NAND

  17. Slide 17: KIOXIA

    KIOXIA

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Sales by Application

    Sales by Application Sales Results 千 (Bn Yen) 480.9 450.0 448.3 1,706.5 428.5 54.1 54.2 46.5 214.2 Others1 53.6 347.1 342.8 152.6 Smart 117.1 501.1 52.3 46.3 157.3 151.9 1,076.6 Devices2 79.6 79.0 185.9 374.3 274.2 278.7 991.1 SSD & 223.1 244.6 Storage3 215.2 217.4 516.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20

  20. Slide 20: Highlights of Recent Achievements

    Highlights of Recent Achievements Commencement of • Production of eighth-generation and beyond flash Operations at Fab2 of memory that features CBA technology Kitakami Plant • Meaningful output expected to begin in the first (September 2025) half of 2026 • Production capacity will ramp up in stages

  21. Slide 21: Supplemental Financial Data

    Supplemental Financial Data

  22. Slide 22: Summary of Key Financials – Quarterly (Non-GAAP)

    Summary of Key Financials – Quarterly (Non-GAAP) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 Revenue 428.5 480.9 450.0 347.1 342.8 448.3 1,706.5 Growth Rate2 33% 12% (6)% (23)% (1)% 31% 59% Non-GAAP COGS (excl. R&D)3 251.9 264.4 277.6 261.4 249.0 302.8 1,055.4 % of Revenue 59% 55%

  23. Slide 23: Summary of Key Financials – Quarterly (Non-GAAP, JV-related Adjusted)

    Summary of Key Financials – Quarterly (Non-GAAP, JV-related Adjusted) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 Revenue 428.5 480.9 450.0 347.1 342.8 448.3 1,706.5 JV related 48.9 50.5 50.1 49.1 42.5 43.0 198.6 Revenue (excl. JV related) 379.6 430.4 399.8 298.0 300.3 405.3 1,507

  24. Slide 24: Summary of Key Financials – Quarterly (IFRS Base)

    Summary of Key Financials – Quarterly (IFRS Base) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 Revenue 428.5 480.9 450.0 347.1 342.8 448.3 1,706.5 Growth Rate2 71% 99% 72% 8% (20)% (7)% 59% IFRS COGS 271.9 284.5 297.6 283.1 271.6 326.2 1,137.0 % of Revenue 63% 59% 66% 82% 79% 73% 6

  25. Slide 25: Summary of Key Financials – B/S Data

    Summary of Key Financials – B/S Data (JPY Bn) FY20241 FY2025 Q21 Total Assets 2,919.7 2,982.2 Cash and Cash Equivalents 167.9 235.5 Trade and Other Receivables 238.6 236.4 Inventories 352.9 361.6 Property, Plant and Equipment 1,100.2 1,068.7 Right-of-use Assets 197.1 192.4 Goodwill 395.3 395.5 Intan

  26. Slide 26: Summary of Key Financials – CF Data

    Summary of Key Financials – CF Data FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 Net Cash provided by (used in) 95.1 146.7 130.7 103.9 61.1 114.0 476.4 Operating Activities Profit (Loss) before Tax 99.7 149.2 106.7 15.1 27.3 56.7 370.7 Depreciation and Amortization 78.5 79.2 77.1 7

  27. Slide 27: Non-GAAP Measure Reconciliation - Quarterly (1/4)

    Non-GAAP Measure Reconciliation - Quarterly (1/4) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 IFRS Gross Profit (Loss) 156.6 196.5 152.4 64.0 71.2 122.1 569.4 PPA Impact on COGS2 0.3 0.3 0.3 0.3 0.3 0.3 1.1 Non-GAAP Gross Profit (Loss) 156.9 196.7 152.7 64.3 71.5 122.4 570.5 R&D (

  28. Slide 28: Non-GAAP Measure Reconciliation - Quarterly (2/4)

    Non-GAAP Measure Reconciliation - Quarterly (2/4) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 IFRS Net Income (Loss) 69.8 106.2 76.1 20.3 18.3 40.7 272.3 Total Adjustment before Tax (a) 0.3 0.3 0.3 0.3 0.3 1.2 1.3 Tax effect (b) (0.1) (0.1) (0.1) (0.1) (0.1) (0.2) (0.4) Tax reform

  29. Slide 29: Non-GAAP Measure Reconciliation - Quarterly (3/4)

    Non-GAAP Measure Reconciliation - Quarterly (3/4) FY20241 FY20251 FY20241 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 IFRS COGS 271.9 284.5 297.6 283.1 271.6 326.2 1,137.0 PPA Impact on COGS2 0.3 0.3 0.3 0.3 0.3 0.3 1.1 Non-GAAP COGS 271.6 284.2 297.3 282.8 271.3 326.0 1,135.9 R&D (within COGS) 19.7 19.7

  30. Slide 30: Non-GAAP Measure Reconciliation - Quarterly (4/4)

    Non-GAAP Measure Reconciliation - Quarterly (4/4) 1 1 1 FY2024 FY2025 FY2024 (JPY Bn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-Q4 Total R&D 32.2 33.4 32.9 34.3 34.5 35.7 132.8 R&D (within COGS) 19.7 19.7 19.7 21.4 22.3 23.2 80.5 R&D (within SG&A) 12.5 13.7 13.3 12.9 12.2 12.6 52.3 IFRS D&A 78.5 79.2 77.1 77.5 80.

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