Kokusai Electric Corporation · TSE:6525
Kokusai Electric — Q1 2026 Earnings Presentation
22 slides from Kokusai Electric's earnings presentation, Aug 7, 2025
Slide 1: Financial Briefings for the First Quarter of the Fiscal Year Ending March 2026
KOKUSAI ELECTRIC Financial Briefings for the First Quarter of the Fiscal Year Ending March 2026 (April to June 2025) August 7, 2025 KOKUSAI ELECTRIC CORPORATION
Slide 2: Highlights
Page four are the highlights. Detailed explanations will follow using the subsequent pages.
Slide 3: Summary of consolidated earnings for Q1
Page five is a summary of the consolidated earnings for Q1. Compared to the same period last year, when there was a concentration of equipment shipments to Chinese locals, Q1 saw a decrease in both revenue and profit. Revenue and profit decreased also compared to the most recent quarter, but for the
Slide 4: YoY changes in sales revenue and adjusted operating profit for Q1
Page six details the YoY changes in sales revenue and adjusted operating profit for Q1. In Q1, overall revenue decreased by 21% compared to the same period last year. The decrease in equipment sales to Chinese locals was due to a concentration of shipments of legacy equipment included in the service
Slide 5: Quarterly revenues by business segment
Page seven shows quarterly revenues by business segment. In Q1, equipment sales decreased by 28% compared to the same period last year, while service sales decreased by 6%. Compared to the most recent quarter, the ratio of service revenue increased significantly owing to service sales increase, whil
Slide 6: Legacy equipment sales by application
Page eight shows the sales of legacy equipment for the 300-millimeter device business and the 200- millimeter or smaller equipment included in the service business, broken down by application. In Q1, NAND sales increased by 116% compared to the same period last year, while sales for DRAM decreased b
Slide 7: Sales revenue by application, global and China domestic markets
Page nine shows sales revenue by application, divided into global and China domestic markets. I will first explain the comparison between Q1 results and the most recent quarter regarding sales to global markets on the left side. Investments into the next-generation NAND transition progressed in Q1,
Slide 8: Sales revenue by shipment destination
Page 10 shows sales revenue by shipment destination. Sales by destination increased YoY for Japan and Taiwan, and increased for Japan QoQ. Sales to the US decreased both YoY and QoQ, with sales ratio of 3%.
Slide 9: Quarterly balance sheet trends
Page 11 shows the quarterly balance sheet trends. Total assets resulted in the same total amount as the previous quarter end with increased inventory with production increase, while there was a decrease in cash and cash equivalents, trade receivables, and other receivables. Total capital increased b
Slide 10: Main financial indicators from the balance sheet
Page 12 shows the main financial indicators from the quarterly balance sheet. The equity ratio increased by 0.8 percentage points from the end of the previous quarter to 58.2%. Net debt remained largely in line with the plan at JPY17.5 billion.
Slide 11: Quarterly cash flow
Page 13 shows the quarterly cash flow. Operating cash flow exceeded investment cash flow, resulting in free cash flow of JPY2 billion. Cash flows from financing activities resulted in an expenditure of JPY4.4 billion due to dividend payments and other items.
Slide 12: Quarterly R&D, capital expenditures, and depreciation
Page 14 shows quarterly R&D expenses, capital expenditures, and depreciation and amortization expenses. R&D spend for Q1 was JPY3.9 billion. The ratio of R&D spend to sales revenue increased to 7.4% due to sales revenue decline. R&D expenses for the fiscal year ending March 2026 are expected to incr
Slide 13: Consolidated Earnings Forecast for FY26/3
¢ Consolidated Earnings Forecast for FY26/3 KOKUSAI ELECTRIC onus ELECTRIC CORPORATION (Copyright © KOKUSAI ELECTRIC Cor
Slide 14: Highlights
Page 16 contains the highlights. Detailed information will be provided using the following pages.
Slide 15: Earnings forecast for FY March 2026
Please see page 17. There are no changes to the earnings forecast as well as the dividend forecast for the fiscal year ending March 2026 that was announced at the time of the full-year earnings call for the fiscal year ended March 2025. The guidance for the fiscal year ending March 2026 projects a 2
Slide 16: Sales breakdown between global markets and local China
Page 18 shows the breakdown of sales divided between global markets and the local Chinese market. The graph was presented at the full-year financial results announcement on May 13, and I will now provide an overall update on the current outlook compared to that. First, in the memory segment for NAND
Slide 17: Future Outlook
¢ Future Outlook KOKUSAI ELECTRIC
Slide 18: Outlook on the business environment
Page 20 shows our outlook on the business environment. In the semiconductor device market, active investment related to generative AI continues, and the investment in NAND has started to recover. On the other hand, the recovery in general-purpose DRAM remains slow and the mature node logic and found
Slide 19: Business environment and company situation by application
On page 21, we have summarized the business environment and our company situation by application. Since the announcement of the full-year financial results for FY March 2025, the updates are as follows. First, regarding NAND, demand in global market is not as strong as expected, while demand in Chin
Slide 20: Transition in product mix
Page 22 shows the transition in our product mix. There are no changes to the product mix outlook from our initial forecast. In FY March 2026, demand for NAND equipment is recovering, and the sales of mini batch ALD and the systems are expected to grow significantly. As a result, the combined share o
Slide 21: Device development road map, catalysts and growth potential
On page 23, we show the semiconductor device development road map along with our catalyst and growth potential. There are no changes to the strategies and the medium-term targets we have explained so far. Our target timing for achieving the medium-term goals remains tied to the year when the WFE mar
Slide 22: Change in KKR ownership
Finally, please refer to page 24. On July 10, KKR sold a portion of shares of our company, resulting in a change of their ownership ratio. We were informed that KKR transferred approximately 30 million shares, just over half of the approximately 55 million shares held as of the end of March 2025, to