Espec Corp. · TSE:6859

Espec — H1 FY2025 Earnings Presentation

32 slides from Espec's earnings presentation, Nov 21, 2025

  1. Slide 1: Results Briefing for the Six Months Ended September 30, 2025

    Securities ID code: 6859 ESPEC CORP. Results Briefing for the Six Months Ended September 30, 2025 November 21, 2025 Satoshi Arata Representative Director and President

  2. Slide 2: Financial Result for the Six Months Ended September 30, 2025

    Financial Result for the Six Months Ended September 30, 2025 - Test demand for electronic components and devices related to AI semiconductors remained strong, and investment in satellite communications was robust in North America. Orders received reached a record high, but due to many large products

  3. Slide 3: Forecasts for FY2025

    Forecasts for FY2025 ( Millions of yen) FY2024 FY2025 Initial Forecasts Forecast (revised 11/13) Full Year 1H Results Results Year on 1H 2H Full year 2H Full year Year Orders Received 67,514 33,500 32,500 66,000 38,636 30,364 69,000 +2.2% Net Sales 67,288 31,000 37,000 68,000 30,322 37,678 68,000 +1

  4. Slide 4: Approach to Full-Year Fiscal 2025 Forecast

    Approach to Full-Year Fiscal 2025 Forecast - Orders received remain strong, especially in AI semiconductors and satellite communications in North America, the target markets of the medium-term management plan, leading to an upward revision in the full-year forecast. - Net sales were left unchanged f

  5. Slide 5: FY2025 1H Summary of Profits and Losses

    FY2025 1H Summary of Profits and Losses (Millions of yen) FY 2024 1H FY 2025 1H FY 2025 1H Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 36,621 33,500 38,636 +5.5% +15.3% Net Sales 30,464 31,000 30,322 -0.5% -2.2% Cost of Net Sales 19,326 19,500 19,767 +2.3% +1.4%

  6. Slide 6: FY2025 1H Performance by Segment

    FY2025 1H Performance by Segment (Millions of yen) FY 2024 1H FY 2025 1H FY 2025 1H Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 31,868 28,430 33,127 +3.9% +16.5% Equipment Business Net Sales 26,469 26,420 25,887 -2.2% -2.0% Operating Profit 3,013 2,910 2,551 -15.

  7. Slide 7: Orders Received in FY2025 1H

    Orders Received in FY2025 1H Although orders received were initially expected to decline year on year, in the target markets, AI semiconductor-related demand remained strong, satellite communications expanded beyond expectations in North America, and investment in semiconductors and electronics was

  8. Slide 8: Net Sales in FY2025 1H

    Net Sales in FY2025 1H Due in an increase in long delivery lead-time projects, sales were concentrated in Q2. First-half net sales were roughly unchanged year on year. Trends in net sales per quarter (Millions of yen) 25,000 20,990 19,937 20,000 16,773 17,998 16,919 15,833 14,981 14,932 15,000 13,72

  9. Slide 9: Analysis of Operating Profit Increase and Decrease Factors

    Analysis of Operating Profit Increase and Decrease Factors In the Equipment Business, net sales were delayed due to more long delivery lead-time projects, and although profitability for custom products improved, intensified competition in China led to lower profit. In the Service Business, laborator

  10. Slide 10: Statement of Assets and Liabilities

    76,934 (Millions of yen) End of FY2025 2Q 9 As accounts receivable were collected, cash and deposits increased, and higher order backlog 1,274 Net assets Liabilities and Net assets Noncurrent liabilities 520 Other current liabilities -489 +1,087 Short-term borrowings 149 Electronically recorded obli

  11. Slide 11: Statements of Cash Flows

    10 (Millions of yen) Increase (decrease) in 4,604 funds Effect of exchange 125 Cash increased by approximately ¥4.6 billion due mainly to recognizing profit before rate changes -863 Total financial cash flow -193 Other -1,319 Dividends paid Income from lone-term 450 borrowings Net decrease (increase

  12. Slide 12: Equipment Business

    Equipment Business (Millions of yen) FY 2024 1H FY 2025 1H FY 2025 1H Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 31,868 28,430 33,127 +3.9% +16.5% Net Sales 26,469 26,420 25,887 -2.2% -2.0% Operating Profit 3,013 2,910 2,551 -15.3% -12.3% Profit Ratio 11.4% 11.0

  13. Slide 13: Service Business

    Service Business (Millions of yen) FY 2024 1H FY 2025 1H FY 2025 1H Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 4,176 4,520 4,224 +1.2% -6.5% Net Sales 3,701 4,210 3,780 +2.1% -10.2% Operating Profit 324 490 56 -82.4% -88.4% Profit Ratio 8.8% 11.6% 1.5% -7.3pt -1

  14. Slide 14: Other Business

    Other Business (Millions of yen) FY 2024 1H FY 2025 1H FY 2025 1H Comparison with Year on Year Results Forecasts Results Forecasts Orders Received 808 800 1,500 +85.6% +87.6% Net Sales 521 600 880 +68.7% +46.8% Operating Profit -31 -50 -2 - - Profit Ratio -5.9% -8.3% -0.3% Environmental Conservation

  15. Slide 15: Sales by Market

    Sales by Market In the electronic device and equipment market, and semiconductor market, testing demand related to AI semiconductors increased, raising the sales share. In the automobile market, investment related to EVs and batteries has paused, resulting in a lower sales share. Non-Consolidated (E

  16. Slide 16: Sales by Region

    Sales by Region Net sales increased in Japan, Southeast Asia and India, Taiwan, and South Korea. In North America, despite strong orders, net sales declined due to many long delivery lead-time projects. In China, net sales were roughly unchanged. 1H FY 2024 1H FY 2025 Overseas sales ratio: 55.9% Ove

  17. Slide 17: Progress of the Medium-Term Management Plan PROGRESSIVE PLUS 2027

    Progress of the Medium-Term Management Plan PROGRESSIVE PLUS 2027 - In the first year of the medium-term management plan PROGRESSIVE PLUS 2027 (FY2025 to FY2027), market development in target fields, Formulation of Investment plan for more efficient manufacturing, and new product development are pro

  18. Slide 18: Test Demand and Market Development in Target Markets

    Test Demand and Market Development in Medium-Term Management Plan Target Markets Orders received in target markets (AI semiconductors, autonomous driving services, satellite communications), increased approximately 83% year on year. AI semiconductor performed well in Japan and Southeast Asia, while

  19. Slide 19: Financial Capital Strategy (FY2025~FY2027)

    Financial Capital Strategy (FY2025~FY2027) Cash Allocation Policy Proactively allocate cash generated over three years to growth investments and shareholder returns ■ Implement shareholder returns with a total return ratio of 50% (cumulative over 3 years) or more through dividends and share purchase

  20. Slide 20: Shareholder Return Policy and FY2025 Dividend Forecast

    Shareholder Return Policy and FY2025 Dividend Forecast Shareholder Return Policy Set the consolidated dividend payout ratio at 40% or more, and flexibly carry out acquisition of treasury shares. During the period of the Medium-Term Management Plan PROGRESSIVE PLUS 2027 (FY2025–2027), the total retur

  21. Slide 21: FY2025 Recognition of the Operating Environment

    FY2025 Recognition of the Operating Environment We aim to secure orders globally, focusing on AI semiconductors and satellite communications, the target markets of the medium-term management plan. Japan: Investment for EV and battery use (mainly production-related) is declining, while AI semiconduct

  22. Slide 22: Segment Financial Forecasts

    Segment Financial Forecasts (Millions of yen) FY 2024 FY 2025 FY 2025 Full Year Full Year Forecasts (revised 11/13) 1H Results Initial Results Year on Forecasts 2H Full Year Year Orders-Received 57,283 55,500 33,127 25,513 58,640 +2.4% Equipment Net sales 57,507 57,600 25,887 31,672 57,560 +0.1% Bus

  23. Slide 23: FY2025 Investment Plans

    FY2025 Investment Plans The medium-term management plan allocations remain unchanged, with ¥9.5 billion for growth investments and ¥4.8 billion for R&D over the three-year period. (Millions of yen) FY2024 FY2025 Forecasts Full Year 1H Forecast (no revisions) Results Results 2H Full Year Year on Year

  24. Slide 24: FY2025 Assumed Exchange Rate

    FY2025 Assumed Exchange Rate Assumed Exchange Rate FY2024 FY2025 1H Results Full Year 1H Results Full Year Results Assumption U.S. dollar (yen) 152.77 152.62 146.03 145 Euro (yen) 166.05 163.87 168.05 160 Yuan (yen) 21.16 21.11 20.29 20 FY2025 exchange rate sensitivity (Millions of yen) Net sales Op

  25. Slide 25: Main Initiatives in FY2025

    Main Initiatives in FY2025 Equipment Business - Converting order backlog into sales, strengthening sales of standard products, and continuing to improve profitability for custom products. - Development and expanded sales of high value-added products that meet testing needs in target markets Service

  26. Slide 26: Main ESG Initiatives in FY2025

    Main ESG Initiatives in FY2025 ■ E for Environment - Advancing the 8th Mid-Term Plan on the Environment (FY2022 to FY2025) - Global warming measures: Transitioning to low-GWP refrigerants and reducing CO2 emissions from manufacturing and other operations. - Biodiversity conservation activities: Cont

  27. Slide 27: TOPICS: New Products for the AI Server Markets

    TOPICS 1 New Products for the AI Server Markets ■ Walk-in Temperature & Humidity Chamber for High Heat-generation Loads - In October 2025, we launched two models designed to handle high heat-generation loads for AI server reliability testing. - Our proprietary control system provides precise tempera

  28. Slide 28: TOPICS: New Products for AI Semiconductor and Autonomous Driving Markets

    TOPICS 2 New Products for AI Semiconductor and Autonomous Driving Markets Highly Accelerated Stress Test System Rapid-Rate Thermal Cycle Chamber (HAST Chamber) EHS-222M-L TCC-151W-20 - In October 2025, we added the EHS-222M-L model, - In April 2025, a high-performance model capable of which supports

  29. Slide 29: TOPICS: Start of Aichi Next-Generation Mobility Test Lab service

    TOPICS 3 Start of “Aichi Next-Generation Mobility Test Lab” service Responding to testing demand for automotive batteries and EV/automation modules ■ Aichi xEV Battery Safety Test & ■ Toyota Test Center Certification Center - Expanded functions of the Toyota Testing Center, the - Opened in February

  30. Slide 30: External Recognition

    External Recognition ■ ESG-Related Evaluations - Included in the ESG index “FTSE Blossom Japan Sector Relative Index” Included in the ESG index “S&P/JPX Carbo Efficient Index” - Rated “B” score for the fifth consecutive year in the CDP Climate Change Survey, “B-” score for Water Security Selected as

  31. Slide 31: Forward-looking statements and inquiries

    These materials contain forward-looking statements, including the Company’s present plans and forecasts of performance, that reflect the Company’s plans and forecasts based on the information presently available. These forward-looking statements are not guarantees of future performance, and plans, f

  32. Slide 32: Quality is more than a word

    Quality is more than a word ESOEC ESPEC CORP.

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