Kokusai Electric Corporation · TSE:6525
Kokusai Electric — Q1 2027 Earnings Presentation
44 slides from Kokusai Electric's earnings presentation, Aug 6, 2026
Slide 1: Financial Briefings for the First Quarter of the Fiscal Year Ending March 2027
Financial Briefings for the First Quarter of the Fiscal Year Ending March 2027 (April to June 2026) August 6, 2026 KOKUSAI ELECTRIC CORPORATION KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 2: Disclaimers
Disclaimers This document and the information presented in this document were created for the purpose of disclosing corporate information, etc., and do not constitute a solicitation of an offer to subscribe for shares or other securities of the Company, either domestically or internationally. ◼ Forw
Slide 3: 1Q FY27/3 Consolidated Financial Summary
1Q FY27/3 Consolidated Financial Summary KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 4: Highlight
Highlight Summary of Consolidated Results for 1Q FY27/3 ◼ The semiconductor device market remained at high levels for generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications increasing QoQ. Investments for NAND are mainly focused o
Slide 5: Consolidated Results Summary
Consolidated Results Summary In 1Q, both revenue and profit increased YoY and QoQ. Although the gross profit margin declined YoY due to changes in product mix, it increased QoQ. Due to increased sales revenue, the profit margins from adjusted operating profit and below exceeded both YOY and QoQ leve
Slide 6: 1Q FY27/3 Results: Factors for Changes
1Q FY27/3 Results: Factors for Changes Revenue increased 46% YoY, driven by equipment sales in Non-China and Service. Adjusted operating profit increased 59% YoY, largely due to increased sales. Revenue Adjusted Operating Profit (JPYB) (JPYB) 8.5 +8.5 5.1 +5.1 75.4 21.1 +21.1 0.0 17.4 -2.6 -2.0 51.8
Slide 7: Quarterly Revenues by Application
Quarterly Revenues by Application In 1Q, NAND decreased 34% YoY, while DRAM increased 158% and Logic/Foundry increased 82%. QoQ, DRAM decreased 2%, while NAND increased 84% and Logic/Foundry increased 38%. 75.4 (JPYB) 65.4 23% 62.0 19% 55.9 Service 19% 6% 51.8 5% Others 22% 9% 23% 23% 26% 12% Logic/
Slide 8: Quarterly Revenues by Account
Quarterly Revenues by Account*1 In 1Q, for Non-China revenue, both equipment sales for major applications and service sales increased YoY and QoQ. For China revenue, both equipment sales for Logic/Foundry and service sales increased YoY and QoQ. Due to growth in revenue from Non-China, the ratio of
Slide 9: Quarterly Revenues by Destination
Quarterly Revenues by Destination In 1Q, sales to China decreased compared with YoY, while increasing QoQ. Outside of China in 1Q, sales in all regions increased both YoY and QoQ. China accounted for 28% of revenue, unchanged from the previous quarter. (JPYB) 75.4 65.4 62.0 28% China 55.9 1% Europe
Slide 10: Quarterly Balance Sheet
Quarterly Balance Sheet Total assets increased by JPY 11.2 bn from the end of the previous fiscal year. This is mainly due to an increase in inventories resulting from higher production, as well as an increase in trade and other receivables. Total equity increased by JPY 5.6 bn from the end of the p
Slide 11: Quarterly Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities
Quarterly Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities Although the equity ratio decreased by 0.4 percentage points from the end of the previous fiscal year, it remained in the 60% range. Net cash remained at JPY 6.6 bn, the same level as at the end of the previous fiscal
Slide 12: Quarterly Cash Flows
Quarterly Cash Flows Cash flows from operating activities exceeded cash flows from investing activities, resulting in free cash flow of JPY 6.6 bn. Cash outflow in financing activities amounted to JPY 6.4 bn mainly due to payment of dividends and share 20.4 repurchases. (JPYB) Cash flows from operat
Slide 13: Quarterly R&D Expenses / Capital Expenditure / Depreciation Expense
Quarterly R&D Expenses / Capital Expenditure / Depreciation Expense In 1Q, R&D expenses, capital expenditures, and depreciation expenses were as planned. R&D expenses ratio decreased to 5.9% due to an increase in revenue. R&D Expenses Capital Expenditure / Depreciation Expense (JPYB) R&D expenses (J
Slide 14: Consolidated Earnings and Dividend Forecast for FY27/3
Consolidated Earnings and Dividend Forecast for FY27/3 KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 15: Highlight
Highlight Summary of Consolidated Results for 1Q FY27/3 ◼ The semiconductor device market remained at high levels for generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications increasing QoQ. Investments for NAND are mainly focused o
Slide 16: FY27/3 Earnings Forecast / Dividend Forecast (With Changes)
FY27/3 Earnings Forecast / Dividend Forecast (With Changes) For the full-year, revenue was revised upward by 21%, up 45% YoY, adjusted operating profit was revised upward by 42%, up 81% YoY and adjusted net income for the period was revised upward by 40%, up 76% YoY. Annual dividend forecast was rev
Slide 17: FY27/3 Earnings Forecast: Factors for Change from the Previous Forecast
FY27/3 Earnings Forecast: Factors for Change from the Previous Forecast Revenue is expected to increase by 21% compared to the previous forecast, reflecting a significant upside in equipment sales. Adjusted operating profit is raised by 42% on the expectation of increased sales and a higher gross pr
Slide 18: FY27/3 Earnings Forecast: Factors for YoY Change (With Changes)
FY27/3 Earnings Forecast: Factors for YoY Change (With Changes) Revenue is expected to increase 45% YoY, driven by higher Non-China equipment sales, China equipment sales, and service sales. Adjusted operating profit is expected to increase 81% due to higher sales and an increase in gross profit mar
Slide 19: FY27/3 Earnings Forecast: Revenues by Account (With Changes)
FY27/3 Earnings Forecast: Revenues by Account*1 (With Changes) Expected Non-China revenue was revised upward by 14% from the previous forecast, mainly due to growing demand for NAND and Logic/Foundry equipment, and is projected to increase by 49% YoY. Expected China revenue was revised upward by 39%
Slide 20: FY27/3 Earnings Forecast: Revenues by Application (With Changes)
FY27/3 Earnings Forecast: Revenues by Application (With Changes) Sales for NAND, DRAM, Logic/Foundry and the services are expected to increased by 49%, 61%, 65% and 22% YoY, respectively. The service revenue ratio is expected to be 17%. 340.0 (JPYB) 17% 280.0 5% 245.7 238.9 235.1 17% Service 20% 5%
Slide 21: FY27/3 Earnings Forecast: Revenues by Destination (With Changes)
FY27/3 Earnings Forecast: Revenues by Destination (With Changes) Revenue in all regions is expected to increase YoY. The ratio of revenue in China is expected to be 38%. 340.0 (JPYB) China 280.0 38% Europe and others 245.7 238.9 235.1 34% Other Asia 1% 34% 5% Korea 180.8 47% 39% 2% 4% 2% Taiwan 6% 1
Slide 22: FY27/3 Earnings Forecast: Revenues by Equipment (With Changes)
FY27/3 Earnings Forecast: Revenues by Equipment (With Changes) The ratio of high value-added equipment*1 for the FY27/3 is expected to be 68%. With future device generational changes, the introduction of the Batch ALD *2 compatible deposition equipment and single-wafer treatment equipment is expecte
Slide 23: Future Outlook
Future Outlook KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 24: Business Environment
Business Environment Demand related to AI continues to strongly drive device manufacturers’ capital investment, and demand for equipment for high-performance devices is expected to increase further. Outlook for Semiconductor Device Market Wafer Fab Equipment (WFE) Market ■Demand related to AI contin
Slide 25: Update on the Mid-term Objectives
Update on the Mid-term Objectives In light of the significant changes in the market environment since the formulation of the Medium-Term Management Plan in 2024, we have revised the target dates for achieving our mid-term objectives and the revenue composition ratio by application on May 13, 2026. D
Slide 26: Production System
Production System The operating rate for FY27/3 is expected to average 70–80% in 1H and over 80% in 2H and is expected to rise further in FY28/3.To keep pace with the rapid changes in the WFE market, we will continue to strengthen our production capacity and maintain a production system capable of f
Slide 27: Measures based on shareholder return policy
Measures based on shareholder return policy Due to the upward revision of FY27/3 earnings forecast, the annual dividend forecast will be increased by 18 yen, from 47 yen (dividend payout ratio of 25.6% based on adjusted net income) to 65 yen (25.2%). Based on FY26/3 earnings, the share buyback was c
Slide 28: Environment
Summary The opportunities for application of high-value-added products will expand as semiconductor device structures become multilayered, more miniaturized, complex and three-dimensional. We aim to achieve sustained business expansion our business at a rate that exceeds market growth by leveraging
Slide 29: Appendix
Appendix KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 30: Key Activities for 1Q FY27/3
Key Activities for 1Q FY27/3 Business Activities ◼ Awarded “Top 10 Customer Service” for 29 consecutive years in the Techinsights Global Semiconductor Supplier Awards.(May. 2026) ◼ Invited talk and poster presentation at ALD/ALE2026.(Jun. 2026) ◼ Decided to newly acquire a property adjacent to Tonam
Slide 31: FY27/3 Earnings Forecast: Revenues by Account and 1H/2H
FY27/3 Earnings Forecast: Revenues by Account*1 and 1H/2H Revenue in Non-China Revenue in China （JPYB) (JPYB) 84.4 Service 69.0 Others 48.2 Logic/Foundry 33.4 DRAM NAND FY27/3 1H FY27/3 2H FY27/3 1H FY27/3 2H FY27/3 1H FY27/3 2H FY27/3 1H FY27/3 2H FY26/3 1H FY26/3 2H previous previous this time thi
Slide 32: Income Statement, R&D Expenses, Capex and D&A expenses
Income Statement, R&D Expenses, Capex and D&A expenses FY26/3 FY27/3 (JPYM) 1Q 2Q 3Q 4Q Full-year 1Q Revenue 51,789 65,416 55,852 62,021 235,079 75,414 Gross profit 22,220 27,277 22,883 24,430 96,810 30,678 Gross profit margin 42.9% 41.7% 41.0% 39.4% 41.2% 40.7% Adjusted operating profit 10,902 14,4
Slide 33: Reconciliation of Adjusted Items
Reconciliation of Adjusted Items FY26/3 FY27/3 (JPYM) 1Q 2Q 3Q 4Q Full-year 1Q Operating profit 9,717 12,993 9,809 9,317 41,836 15,926 Other income -304 -83 -70 -51 -508 -56 Other expenses 18 53 74 223 368 21 (Adjustments) Purchase price allocation amortization*1 1,476 1,476 1,477 1,476 5,905 1,476
Slide 34: Balance Sheet and Key Financial Indicators
Balance Sheet and Key Financial Indicators FY26/3 FY27/3 FY26/3 FY27/3 (JPYM） End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q (JPYM) End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q Assets Current Cash and cash equivalents 42,766 43,806 47,728 56,543 56,974 Liabilities Current Loans payble + Leas
Slide 35: Cash Flow Statement
Cash Flow Statement (JPY mn) FY26/3 FY27/3 1Q 2Q 3Q 4Q Full Year 1Q CF from operating activites 4,923 11,936 11,538 20,404 48,801 12,127 CF from investing activities - 2,942 - 4,789 - 4,263 - 4,960 - 16,954 - 5,520 Free CF 1,981 7,147 7,275 15,444 31,847 6,607 CF from financing activites - 4,423 - 6
Slide 36: Balance Sheet (Announced on May 13th)
Balance Sheet (Announced on May 13th) Total assets increased by JPY 18.1 bn from the end of the previous fiscal year. This is mainly due to an increase in cash and cash equivalents, and an increase in property, plant and equipment resulting from investments associated with the establishment of a dem
Slide 37: Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities (Announced on May 13th)
Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities (Announced on May 13th) The equity ratio rose to 61% at the end of FY26/3. Net cash at the end of the fiscal year was JPY 6.6 bn as net debt was eliminated due to an increase in cash and cash equivalents and a decrease in intere
Slide 38: Cash Flows (Announced on May 13th)
Cash Flows (Announced on May 13th) Cash flows from operating activities exceeded cash flows from investing activities, resulting in free cash flow of JPY 31.8 bn. Cash outflow in financing activities amounted to JPY 21.5 bn mainly due to repayment of borrowings and payment of dividends. (JPYB) Cash
Slide 39: R&D Expenses / Capital Expenditure / Depreciation Expense (Announced on May 13th)
R&D Expenses / Capital Expenditure / Depreciation Expense (Announced on May 13th) Continue to invest in R&D and capital equipment in line with our medium-term plan in anticipation of medium to long term demand expansion. R&D expenses increased by 20%, capital investments decreased by 20% YoY, and de
Slide 40: Change of business category (Announced on May 13th)
Change of business category (Announced on May 13th) From FY27/3, we will change our business category. We will transfer “Upgrade modification“, "200 mm equipment" and “Used equipment“, which were previously categorized under the services business to the equipment business, making the disclosures mor
Slide 41: Market Share Trends (Announced on May 13th)
Market Share Trends (Announced on May 13th) We achieved the top market share in the batch deposition equipment market in CY25. Our market share of batch ALD*1 compatible deposition equipment has reached 80%. We have also captured the top market share in single-wafer treatment equipment (Plasma Gate
Slide 42: Decided to Acquire a Land Adjacent to Tonami Manufacturing Center
Decided to Acquire a Land Adjacent to Tonami Manufacturing Center (Announced on May 13th) Anticipating further market expansion after 2031, we decided to acquire land owned by Tonami city, Toyama Prefecture, which is adjacent to our Tonami Manufacturing Center. It is expected to contribute to variou
Slide 43: Glossary
Glossary ◼ Batch processing equipment: Equipment for processing multiple wafers at once. ◼ Single-wafer Treatment Equipment ：Equipment that improves the quality of films after deposition by single wafer processing, which processes wafers by a single wafer unit. ◼ ALD：Atomic Layer Deposition We refer
Slide 44: KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary
KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.