Kokusai Electric Corporation · TSE:6525
Kokusai Electric — Q3 2026 Earnings Presentation
48 slides from Kokusai Electric's earnings presentation, Feb 12, 2026
Slide 1: Financial Briefings for the Third Quarter of the Fiscal Year Ending March 2026
Financial Briefings for the Third Quarter of the Fiscal Year Ending March 2026 (April to December 2025) February 12, 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: 3Q FY26/3 Consolidated Financial Summary
3Q FY26/3 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 3Q FY26/3 ◼ The semiconductor device market saw high levels of generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications. Investments for NAND are mainly focused on generation shift. The
Slide 5: Consolidated Results Summary
Consolidated Results Summary Although revenue and profit decreased YoY and QoQ, 3Q results were in line with the earnings forecast revised at the release of 2Q results. Cumulative 1-3Q results saw a slight decrease in revenue YoY. Each profit line decreased YoY due to changes in the product mix and
Slide 6: 3Q FY26/3 Results: Factors for Changes
3Q FY26/3 Results: Factors for Changes In 3Q, overall revenue decreased 7% YoY due to a decrease sales of equipment for China DRAM, while revenue from upgrade modifications(service) for DRAM increased. Adjusted operating profit decreased 19% YoY, mainly due to a decrease in gross profit resulting fr
Slide 7: 1-3Q FY26/3 Results: Factors for Changes
1-3Q FY26/3 Results: Factors for Changes Cumulative 1-3Q, overall revenue decreased slightly by 1% YoY. Upgrade modifications(service) for DRAM and the sales of equipment for NAND increased, while sales of equipment for China DRAM decreased. Adjusted operating profit decreased by 18% YoY due to a de
Slide 8: Quarterly Revenues by Business
Quarterly Revenues by Business In 3Q, as in 1Q and 2Q, some equipment demand was replaced by upgrade modifications (service), resulting in a decrease in equipment revenue and an increase in service revenue YoY and QoQ. Cumulative 1-3Q, the trend was the same, and the service revenue ratio increased
Slide 9: Quarterly Revenues by Application
Quarterly Revenues by Application (300mm Equipment + 200mm or Less Equipment) In 3Q, equipment sales for major applications decreased YoY, but increased QoQ for DRAM. Cumulative 1-3Q, revenue for NAND increased 140%, DRAM decreased 48%, and Logic/Foundry decreased 11% YoY. Quarter 1-3Q (JPYB) 131.6
Slide 10: Quarterly Revenues by Destination
Quarterly Revenues by Destination In both 3Q and cumulative 1-3Q, revenue from Japan and Korea increased, while revenue from U.S. and China decreased YoY. Cumulative 1-3Q, the ratio of revenue from the U.S. and China fell to 3% and 42%, respectively. Quarter 1-3Q (JPYB) 65.2 65.4 174.7 173.1 64.3 Ch
Slide 11: Quarterly Revenues by Account
Quarterly Revenues by Account*1 3Q revenue for Non-China increased QoQ in equipment sales for DRAM and Logic/Foundry, as well as in upgrade modifications (service). 3Q revenue from China decreased QoQ in equipment sales for NAND and Logic/Foundry. Equipment sales for DRAM turned upward from the tran
Slide 12: Quarterly Balance Sheet
Quarterly Balance Sheet Total assets at the end of 3Q increased by JPY 10.6 bn from the end of the FY25/3. This is because an increase in inventories and an increase in property, plant and equipment, investment associated with the establishment of a demo center in the U.S., despite a decrease in tra
Slide 13: Quarterly Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities
Quarterly Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities The equity ratio at the end of 3Q was 60.4%, down 0.3 percentage points from the end of the previous quarter. Net debt at the end of 3Q decreased to JPY 8.1 bn, as planned. Total Asset / Total Equity / Equity Ratio Cas
Slide 14: Quarterly Cash Flows
Quarterly Cash Flows In 3Q, cash flows from operating activities exceeded cash flows from investing activities, resulting in free cash flow of JPY 7.3 bn. Cash outflow in financing activities amounted to JPY 4.3 bn due to payment of dividends. Cash flows from operating activities Cash flows from inv
Slide 15: Quarterly R&D Expenses / Capital Expenditure / Depreciation Expense
Quarterly R&D Expenses / Capital Expenditure / Depreciation Expense 3Q R&D expenses were as planned, with the R&D expenses ratio of 7.4%. R&D Expenses Capital Expenditure / Depreciation Expense (JPYB) R&D expenses R&D expenses ratio (JPYB) Large-scale capital investment (new factory 7.9% constructio
Slide 16: Consolidated Earnings Forecast for FY26/3
Consolidated Earnings Forecast for FY26/3 KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 17: Highlight
Highlight Summary of Consolidated Results for 3Q FY26/3 ◼ The semiconductor device market saw high levels of generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications. Investments for NAND are mainly focused on generation shift. The
Slide 18: FY26/3 Earnings Forecast / Dividend Forecast (No change)
FY26/3 Earnings Forecast / Dividend Forecast (No change) No change to the full-year earnings and dividend forecasts revised at the release of 2Q results. FY25/3 FY26/3 (JPYB) 1H 2H Full-year 1H 2H Forecast Full-year forecast YoY Revenue 114.5 124.4 238.9 117.2 112.8 230.0 -3.7% Gross profit 51.4 50.
Slide 19: FY26/3 Earnings Forecast: Factors for Change (No change)
FY26/3 Earnings Forecast: Factors for Change (No change) Although equipment sales for NAND are expected to increase YoY, equipment revenue is expected to decrease as a result of decreases for China DRAM and mature node Logic. Service revenue is expected to increase as a result of an increase in upgr
Slide 20: FY26/3 Earnings Forecast: Revenues by Account (No change)
FY26/3 Earnings Forecast: Revenues by Account*1 (No change) ■Revenue in Non-China is expected to increase 9% YoY, because of increases in equipment sales for NAND and DRAM, and upgrade modifications (service) growth. Logic/Foundry revenue is expected to grow for GAA, despite weakness in mature nodes
Slide 21: FY26/3 Earnings Forecast: Revenues by Business (No change)
FY26/3 Earnings Forecast: Revenues by Business (No change) The ratio of service revenue to total is expected to increase to 39% due to an increase in upgrade modifications (service) in place of new equipment sales. (JPYB) 200mm or less equipment :16.5 Upgrade modification: 11.0 245.4 245.7 238.9 200
Slide 22: FY26/3 Earnings Forecast: Revenues by Application (No change)
FY26/3 Earnings Forecast: Revenues by Application*1 (No change) Revenue for NAND is expected to double YoY; DRAM is expected to decrease 47% (not including upgrade modifications), and Logic/Foundry is expected to decrease 11%. SiC/GaN power devices of under 200mm are expected to be at the same level
Slide 23: FY26/3 Earnings Forecast: Revenues by Destination (No change)
FY26/3 Earnings Forecast: Revenues by Destination (No change) The ratio of revenue in Japan, Korea and other Asian markets is expected to increase YoY, while in China, the U.S., and Taiwan is expected to decrease. The ratio of revenue in the U.S. is expected to remain at 3%. (JPYB) 245.4 245.7 238.9
Slide 24: Future Outlook
Future Outlook KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 25: Business Environment
Business Environment Demand related to generative AI is expected to continue to drive market and demand for equipment for high-performance devices is expected to further strengthen. Outlook for Semiconductor Device Market Wafer Fab Equipment (WFE) Market ■Demand related to generative AI is expected
Slide 26: Direction for the FY27/3 (With changes)
Direction for the FY27/3 (With changes) WFE is expected to grow around 10% YoY in CY26. We aim to increase revenue by at least 20% YoY, based on equipment + upgrade modification revenue in FY27/3, including sales that slip into FY27/3 from FY26/3. Trends in revenue from equipment sales and upgrade m
Slide 27: Business environment by application and our status
Business environment by application and our status Equipment and upgrade modification demand is expected to further increase to address generation shift and production capacity expansion in high-performance DRAM and Logic. For NAND, although generation shift demand continues, there is no change in t
Slide 28: Current Status and Outlook for Product Composition (No change)
Current Status and Outlook for Product Composition (No change) Along with the generation shift of devices, the composition ratio of High value-added equipment is rising. In particular, an expansion in sales of mini batch equipment that high-end model of batch equipment is expected to offset the impa
Slide 29: Roadmap
Summary (Announced on May 13) The opportunities for application of high-value-added products will expand as semiconductor device structures become more complex and three-dimensional. We aim to expand our business at a rate that exceeds market growth by leveraging our technological advantages. 2023 2
Slide 30: Sale of a Portion of Shares Held by AMAT
Sale of a Portion of Shares Held by AMAT AMAT sold a portion of its shares in our company to institutional investors, reducing its shareholding ratio to 5%. The largest and principal shareholder remains KKR. Distribution of Ownership among Shareholders (as of September 30, 2025) 2.0% 1.3% 11.7% Appl
Slide 31: Key Activities for 3Q FY26/3 Business Activities
Key Activities for 3Q FY26/3 Business Activities Management and Business Activities ◼ Exhibit at SEMICON ® JAPAN 2025 (December 2025) ◼ Newly Developed High-Insulation Heater with Superior Environmental Performance (December 2025) ◼ Received the Excellent Production Support Award from TSMC (November
Slide 32: Appendix
Appendix KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.
Slide 33: FY26/3 Earnings Forecast: Factors for Change (No change)
FY26/3 Earnings Forecast: Factors for Change (No change) ◼ The sales revenue forecast has been revised downward due to the delay to FY27/3 in equipment sales for Non-China NAND and China DRAM. ◼ The downward revisions for NAND and Logic/Foundry were absorbed by an upward revision for DRAM upgrade mo
Slide 34: FY26/3 Earnings Forecast: Revenues by Account (No change)
FY26/3 Earnings Forecast: Revenues by Account*1 (No change) ◼ Revenue in Non-China is down by JPY 18 bn compared to the previous forecast. Sales for NAND and Logic/Foundry have been revised downward. For DRAM, although there is a downward revision, services have been enhanced, focusing on upgrade mo
Slide 35: FY26/3 Earnings Forecast: 1H and 2H Revenue by Account (No change)
FY26/3 Earnings Forecast: 1H and 2H Revenue by Account*1 (No change) Non-China revenue is expected to continue trending upward, despite some equipment sales slipping from 2H into FY27/3. Revenue from China is expected to bottom out in FY26/3, despite revenue trending downward owing to the impact of
Slide 36: Income Statement, R&D Expenses, Capex and D&A expenses
Income Statement, R&D Expenses, Capex and D&A expenses FY25/3 FY26/3 (JPYM) 1Q 2Q 3Q 1-3Q 4Q Full-year 1Q 2Q 3Q 1-3Q Revenue 65,224 49,324 60,117 174,665 64,268 238,933 51,789 65,416 55,852 173,058 Gross profit 29,354 22,012 24,865 76,231 25,512 101,743 22,220 27,277 22,883 72,380 Gross profit margi
Slide 37: Reconciliation of Adjusted Items
Reconciliation of Adjusted Items FY25/3 FY26/3 (JPYM) 1Q 2Q 3Q 1-3Q 4Q Full-year 1Q 2Q 3Q 1-3Q Operating profit 17,878 9,562 12,274 39,714 11,606 51,320 9,717 12,993 9,809 32,519 Other income -92 -187 -28 -307 -41 -348 -304 -83 -70 -457 Other expenses 27 78 79 184 69 253 18 53 74 145 (Adjustments) P
Slide 38: Balance Sheet and Key Financial Indicators
Balance Sheet and Key Financial Indicators FY25/3 FY26/3 FY25/3 FY26/3 (JPYM） End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q End of 2Q End of 3Q (JPYM) End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q End of 2Q End of 3Q Assets Current Cash and cash equivalents 87,775 69,333 60,722 44,755 42,766
Slide 39: Cash Flow Statement
Cash Flow Statement FY25/3 FY26/3 (JPYM) 1Q 2Q 3Q 1-3Q 4Q Full-year 1Q 2Q 3Q 1-3Q CF from operating activities 4,073 14,649 1,936 20,658 17,819 38,477 4,923 11,936 11,538 28,397 CF from investing activities -7,582 -9,090 -7,393 -24,065 -3,641 -27,706 -2,942 -4,789 -4,263 -11,994 Free CF -3,509 5,559
Slide 40: R&D Expenses / Capital Expenditure / Depreciation Expense (Announced on May 13)
R&D Expenses / Capital Expenditure / Depreciation Expense (Announced on May 13) 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% YoY. Large-scale capital investments that had conti
Slide 41: Balance Sheet (Announced on May 13)
Balance Sheet (Announced on May 13) Total assets decreased by JPY 33.9 bn from the end of the previous fiscal year due to a decrease in cash and cash equivalents resulting from early repayment of borrowings and acquisition of treasury stock. Total liabilities fell by JPY 42.7 bn from the end of the
Slide 42: Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities (Announced on May 13)
Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities (Announced on May 13) The equity ratio rose to 57% at the end of FY25/3. Net debt at the end of FY25/3 increased to JPY15.4 bn due to cash payment for the acquisition of treasury stock, etc., but loans payable decreased by JPY 3
Slide 43: Cash Flows (Announced on May 13)
Cash Flows (Announced on May 13) Free cash flow amounted to JPY10.8 bn, as cash inflow from operating activities due to increased revenue exceeded cash outflow from investing activities such as acquisition of Property, plant and equipment. Cash outflow in financing activities amounted to JPY58.1 bn,
Slide 44: Market Share Trends (Announced on May 13)
Market Share Trends (Announced on May 13) Market share recovered in CY24 compared with CY23 in both batch deposition equipment and single-wafer treatment equipment. Market share for deposition equipment compatible with batch ALD*4 reached a record high of over 70% and rose to over 50% for single-waf
Slide 45: Key Activities for 2Q FY26/3 Management and Business Activities
Key Activities for 2Q FY26/3 Management and Business Activities Management and Business Activities ◼ Signed a Joint Development Agreement with ASMPT for Semiconductor Packaging Technology. （Sep. 2025） ◼ Received Excellent Supplier Award 2025 from ROHM. （Sep. 2025） ◼ Exhibit at SEMICON® TAIWAN 2025.
Slide 46: Key Activities for 2Q FY26/3 Business Activities ESG Initiatives
Key Activities for 2Q FY26/3 Business Activities ESG Initiatives ESG Initiatives ©Toyama Tourism Organization ◼ Sponsorship for "Owara Kaze-no-Bon" Festival in Yatsuo, Toyama. (Sep. 2025) ◼ Awarded Highest Rating in CDP’s Supplier Engagement Assessment 2024. (Jul. 2025) ◼ Selected as a constituent s
Slide 47: 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 48: KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All
KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.