Nihon Dempa Kogyo Co., Ltd. · TSE:6779
Nihon Dempa Kogyo — FY2025 Earnings Presentation
33 slides from Nihon Dempa Kogyo's earnings presentation, May 22, 2026
Slide 1: Full-Year Results for Fiscal 2025 (Ended March 31, 2026)
Full-Year Results for Fiscal 2025 (Ended March 31, 2026) May 22, 2026 Nihon Dempa Kogyo Co., Ltd. ©NIHON DEMPA KOGYO CO., LTD.
Slide 2: Contents
Contents １．Results For FY2025 (Ended March 31, 2026) ２．Financial Forecast for FY2026 (Ending March 31, 2027) ３．Progress of the Medium-Term Management Plan ４．NDK’s Competitive Advantages and Growth Strategy Presented by Hiromi Katoh, Representative Director and President 1 ©NIHON DEMPA KOGYO CO., LTD
Slide 3: Summary of Financial Results
Summary of Financial Results ◼ FY2025 full-year net sales increased YoY. ◼ Operating income declined YoY due to higher upfront investment expenses toward Vision 2030, but exceeded forecasts. ① ② ②-① (Million yen) FY2025 FY2025 FY2025 FY2024 2H Year Full Year Full Year Full Year YoY Forecast Forecast
Slide 4: Net Sales by Application (YoY)
Net Sales by Application (YoY) ◼ Net sales for automotive, industrial equipment (mainly AI data centers), and special equipment (mainly defense) applications increased. (Billion yen) Net Sales Factors of increase/decrease FY2024 FY2025 YoY Automotive Sales increased supported by customer’s efforts t
Slide 5: Operating Income: Analysis of Changes from FY2024
Operating Income: Analysis of Changes from FY2024 ◼ Upfront investment expenses, including R&D expenses, increased toward the realization of Vision 2030. (Billion yen) -¥1.27billion +0.96 +4.62 -0.12 Profitability Exchange Change in fluctuations, sales rate +0.21 etc. fluctuation -1.49 +3.35 （*1） R&
Slide 6: Financial Results (Quarterly)
Financial Results (Quarterly) ◼ Net sales in 4Q FY2025 increased QoQ, and operating income also increased reflecting the higher sales. Net Sales Operating income (Billion yen) (Billion yen/%) 14.8 Operating income Operating income ratio 13.7 13.4 13.4 13.9 10.9% 13.1 12.8 12.8 13.2 12.6 12.7 9.5% 9.
Slide 7: Net Sales (by Main Application)
Net Sales (by Main Application) ◼ Sales for automotive applications increased in 4Q FY2025, supported by customer’s efforts to secure safety stock amid rising memory prices. ◼ Sales for mobile communications applications declined after peaking in 2Q FY2025. ◼ Sales for industrial equipment applicati
Slide 8: Financial Position
Financial Position ◼ Shareholders’ equity ratio stood at 41.8% as of the end of March 2026. Refinanced 25 billion yen in interest-bearing debt in March 2025. (Billion yen) (*1) (*1) (*1) 26.1 (*1) (*1) 23.5 26.6 Loans and 25.3 25.0 borrowings 18.2 15.3 15.8 Other 15.9 15.1 liabilities 27.3 29.1 31.9
Slide 9: Contents
Contents 1. Results For FY2025 (Ended March 31, 2026) 2. Financial Forecast for FY2026 (Ending March 31, 2027) 3. Progress of the Medium-Term Management Plan 4. NDK’s Competitive Advantages and Growth Strategy 8 ©NIHON DEMPA KOGYO CO., LTD.
Slide 10: Financial Forecast
Financial Forecast ◼ Net sales are expected to increase by JPY 6.0 billion YoY. ◼ Operating income is expected to increase YoY, while proceeding with upfront investments such as R&D as planned. （Million yen） FY2025 FY2026 Forecast Full Year YoY Result 1H 2H Full year Net Sales 54,629 29,500 31,100 6
Slide 11: Net Sales by Application (Forecast)
Net Sales by Application (Forecast) ◼ The significant increase in net sales is driven primarily by higher sales of products for AI data centers. Net Sales (Billion yen) FY2025 FY2026 Forecast Factors of increase/decrease YoY Full Year 1H 2H Full Year Automotive Customer efforts to secure safety stoc
Slide 12: Operating Income: Analysis of Changes from FY2025
Operating Income: Analysis of Changes from FY2025 ◼ Although upfront investment expenses are expected to continue, operating income is forecast to increase, offset by higher sales. (Billion yen) +¥0.65billion +3.20 -0.08 Exchange Profitability rate fluctuations, fluctuation -1.40 etc. (*1) R&D expen
Slide 13: Capital Investment
Capital Investment ◼ For FY2026, we plan to increase investments primarily in AI data centers, smart factory initiatives, and R&D. ¥10.0 billion New Business 0.4 Smart Factory Investment ¥7.4 billion 3.0 ¥6.5billion 1.0 R&D Investment 0.2 1.2 1.8 2.0 System Investment 0.7 0.4 1.9 1.7 1.6 1.5 Infrast
Slide 14: Contents
Contents 1. Results For FY2025 (Ended March 31, 2026) 2. Financial Forecast for FY2026 (Ending March 31, 2027) 3. Progress of the Medium-Term Management Plan 4. NDK’s Competitive Advantages and Growth Strategy 13 ©NIHON DEMPA KOGYO CO., LTD.
Slide 15: Medium-Term Management Plan: Four Key Initiatives
Medium-Term Management Plan: Four Key Initiatives ◼ Building a management foundation focused on high profitability and capital efficiency 1. Development of high-value-added products and creation of new businesses ✓ Strengthening development of high-purity raw crystals and photolithography processing
Slide 16: Growth Strategy: "Five Pillars + One" Concept
Growth Strategy: “Five Pillars + One” Concept ◼ Allocate management resources to growth areas. Cash Generation Areas Industrial AI servers, Pillar3 Equipment optical transceivers Automotive Pillar1 Electronics Special Defense, space, Cash Pillar4 Equipment semiconductor process Management Pillar2 Mo
Slide 17: Cash Generation Areas (Automotive / Mobile Communications): Market Outlook
Cash Generation Areas (Automotive / Mobile Communications): Market Outlook ◼ Automotive applications: Sales are expected to remain solid, driven by the ongoing advancement and higher functionality of ADAS. ◼ Mobile communications applications: Profitability is expected to improve with new products f
Slide 18: Industrial Equipment Market Outlook
Industrial Equipment Market Outlook ◼ Sales for industrial equipment are expected to expand by nearly fourfold from FY2025 to FY2028. ◼ The Company supplies products for AI servers and optical transceivers connecting servers. ◼ AI server illustrative image Industrial Equipment Market Sales Trend （Bi
Slide 19: Expanding Optical Transceiver and AI Server Markets
Expanding Optical Transceiver and AI Server Markets ◼ In optical transceivers, 800G products represent the main volume segment. ◼ Demand for crystal devices for AI servers is expected to grow at a CAGR of around 20%. Optical Transceiver Volume Forecast Forecast of Crystal Demand for AI Servers （Mill
Slide 20: Special Equipment Market Outlook
Special Equipment Market Outlook ◼ Strengthen sales of communication equipment for defense applications. ◼ Develop demand for QCM sensors for semiconductor manufacturing equipment. Communication equipment Special Equipment Market Sales Trend for defense applications （Illustrative image） （Billion yen
Slide 21: Optical Products Market Outlook
Optical Products Market Outlook ◼ Leveraging quartz optical properties, supplying high-quality optical low-pass filters to imaging equipment manufacturers. ◼ Exploring new demand for semiconductor exposure and inspection equipment. Optical Products Sales Trend （Billion yen） Quartz crystal waveplates
Slide 22: Transformation to Smart Factories
Transformation to Smart Factories ◼ Promoting smart factory initiatives through next-generation production lines and DX. New enterprise system New enterprise system FY2025 Oct.～ New enterprise system launched Centralized management of data FY2026 Testing integration with production from bases data P
Slide 23: Capital Allocation
Capital Allocation FY2025-FY2027 Cumulative Cash 【Shareholder Return Policy】 ・Enhance medium- to long-term corporate value and aim for stable dividend growth Operating CF Allocation Growth Investment 18.5 23.5 resources ・Allocate realized profits to high-value-added, high-quality product manufacturi
Slide 24: Medium-Term Management Plan (FY2025-2027) Management Targets
Medium-Term Management Plan (FY2025-2027) Management Targets ◼ Targeting net sales of ￥70.0 billion and an operating income ratio of 10% in FY2027, and 20% under Vision 2030. Vision2030 20.0% Operating Income 8.6% 8.7% 10.0% 6.1% 6.6% Ratio (Excluding special factors) 100.0 53.0 54.6 60.6 70.0 Sales
Slide 25: Contents
Contents １．Results For FY2025 (Ended March 31, 2026) ２．Financial Forecast for FY2026 (Ending March 31, 2027) ３．Progress of the Medium-Term Management Plan ４．NDK’s Competitive Advantages and Growth Strategy 24 ©NIHON DEMPA KOGYO CO., LTD.
Slide 26: Two highly defensible core technologies
Two highly defensible core technologies Synthetic quartz growth technology Photolithography technology World-Class High-Purity Synthetic Quartz Growth Overwhelming Photolithography Capability with Industry-Leading 4-inch Wafers Achieving world-leading crystal growth quality. Advanced processing tech
Slide 27: Competitive Advantage: Automotive, Smartphones, AI Data Centers
Competitive Advantage: Automotive, Smartphones, AI Data Centers (Pillars 1, 2, 3) ◼ Quartz crystal generates high frequencies directly without multiplication, suppressing noise at its source. → As communication speeds increase, NDK's ability to produce the "source oscillation" becomes an ever-greate
Slide 28: Strengthen In-House IC Development
Strengthen In-House IC Development ◼ Demand for crystal oscillators (with embedded ICs) is surging for AI data center applications. Three Benefits of In-House IC Development Internal structure of a crystal oscillator Dramatically faster development cycles Break free from the constraints of off-the-s
Slide 29: Competitive Advantage: Defense & Space (Pillar 4)
Competitive Advantage: Defense & Space (Pillar 4) ◼ The only company that can develop and manufacture everything from quartz crystals to communication equipment entirely domestically. Frequency Defense NDK's Competitive Advantage communication synthesizers equipment • From raw materials to finished
Slide 30: Competitive Advantage: Optical Products (Pillar 5)
Competitive Advantage: Optical Products (Pillar 5) ◼ Applying ultra-high-purity synthetic quartz crystal to semiconductor applications. • Driven by higher power and Emerging Growth Area miniaturization • Developing and selling optical Lithography components with superior laser systems damage resista
Slide 31: New Business Development (+One)
New Business Development (+One) Leverage core technologies to expand into +One domains Development of Si-MEMS Strategic investment to become a proposal-based timing device company — not a substitute for quartz, but “coexistence” Dual wings: “High precision” with quartz, and “miniaturization / low fr
Slide 32: Toward "Wave Motion Tech Moves Our Future!"
Toward “Wave Motion Tech Moves Our Future!” ◼ New Mission：Formulated in September 2025 • The kHz–GHz frequency range handled by NDK represents only a small portion of the wave spectrum in the world of light (wave motion). Transforming into a solutions-based company that contributes to solving social
Slide 33: ©NIHON DEMPA KOGYO CO., LTD.
32 ©NIHON DEMPA KOGYO CO., LTD.