Nichicon : Financial Overview of the Fiscal Year Ended March 2025

(TSE Prime, Securities Code: 6996)

1. Overview of Results for the Fiscal Year Ended March 2025
2. Forecast Results for the Fiscal Year Ending March 2026

(Capacitor business)

Growth in battery electric vehicles (BEVs) in the automotive and vehicle-related equipment sectors is slowing. Conversely, demand for hybrid vehicles is increasing, and the overall automotive market remains resilient, with steady progress in electrification. In the area of aluminum electrolytic capacitors for automotive-related equipment, although some customers in Europe are continuing inventory adjustments and production cutbacks, demand is rising for conductive polymer aluminum solid capacitors and conductive polymer hybrid aluminum electrolytic capacitors, especially for advanced driver-assistance systems (ADAS) and electrification units. In the information and communications equipment sector, conductive polymer aluminum solid capacitors and conductive polymer hybrid aluminum electrolytic capacitors for data centers-such as generative AI servers-are performing well, and further expansion is expected in the future. Meanwhile, progress is being made in consuming the market inventory of large aluminum electrolytic capacitors for inverters used in household appliances and industrial equipment. We anticipate a recovery in this area going forward.

(NECST business)

Household energy storage systems grew significantly in the third quarter. Sales channels are expanding for products released in the previous period, which are seeing adoption in both new and existing buildings. Regarding EV-related equipment, the installation of quick chargers is progressing based on the Japanese government's policy to develop EV charging infrastructure.

However, vehicle-to-home (V2H) systems have been affected by changes in subsidy programs and sluggish EV sales. Still, as the number of imported Evs increases, the number of V2H-compatible vehicles is also increasing, and sales efforts are being strengthened. For switching power supplies for office equipment, profitability has improved through enhanced sales activities and business structure reforms. In addition, accelerator power supplies at medical facilities / for academic study are progressing according to plan.

Segment operating income was ¥1.5 billion for the Capacitor business and ¥3.6 billion for the NECST business. Net income attributable to owners of the parent was ¥5.8 billion, down 28.8% versus the previous fiscal year.

Operating cash flow increased by ¥2 billion year-on-year to ¥18.3 billion, driven by efforts to accelerate accounts receivable collection and reduce inventory. Free cash flow-calculated by subtracting investing cash flow from operating cash flow-was approximately ¥10.0 billion, an increase of about ¥6.4 billion from the previous fiscal year.

Financing cash flow included the redemption of convertible bonds, resulting in a reduction of interest-bearing debt (external funding) by ¥9.8 billion. Additionally, ¥1.6 billion was used for the acquisition of treasury stock.