Nippon Chemi-con CorporationTSE: 6997

Financial Results Explanatory Material (1Q FY2025)

· Issued by Nippon Chemi-con Corporation
Financial Results Explanatory Material for Q1 FY2025 (Three months ended June 30, 2025)


NIPPON CHEMI‐CON CORPORATION

August 2025

0



TSE Prime Market, Securities code:6997

Amid a sluggish automotive electronics market due to US tariffs, ICT market net sales rose on increased data center demand

Unit: Million yen

36,000

30,000

Operating Margin

Net Sales

Operating Margin

29,296

30,618

30,911

31,858

30,885

4.6%

4.3%

1.8%

1.4%

0.5%

6.0%

5.0%

24,000 4.0%

18,000 3.0%

12,000 2.0%

6,000 1.0%

0

FY2024

Q1 Results Q2 Results Q3 Results Q4 Results

FY2025

Q1 Results

0.0%

Net Sales

30,885million yen

YoY, up +5.4%

Operating income

152million yen

YoY ▲70.7%

Profit attributable to owners of parent

▲175million yen

Main Points of Q1 FY2025 Financial Results

  • Net sales (Market Trends)

    ◆Automotive electronics market

    US reciprocal tariffs triggered increased uncertainty, leading to sluggish automotive demand

    ◆Industrial equipment market

    Despite subsiding inventory adjustments, US reciprocal tariffs are driving hesitancy in corporate investments, stalling expected demand recovery

    ◆ICT market

    Server demand for data centers continued to grow (increased demand for AI servers)

  • Operating income

◆Yen appreciation, soaring material prices, and changes in product mix resulted in decreased operating income, down 70.7% YoY.

Amid sluggish automotive electronics and industrial equipment markets due to US reciprocal tariffs, ICT market sales were strong on increased AI center demand

Unit: Million yen, %

FY2024

FY2025

YoY

Q1

Q1

Change

% Change

Net Sales

29,296

30,885

+1,589

+5.4%

Operating income

520

152

‐368

‐70.7%

Ratio to net sales

1.8%

0.5%

‐1.3pt

‐

Profit/loss attributable to owners of parent

451

‐175

‐626

‐

Ratio to net sales

1.5%

‐0.6%

‐2.1pt

‐

Capital investment

3,582

1,790

‐1,792

‐50.0%

Depreciation and amortization

1,596

1,636

+39

+2.5%

R&D expenses

1,023

987

+35

‐3.5%

Avg. exchange rate: USD (yen)

155.88

144.59

7.2% yen appreciation

FY2024 Q1

Percentage of Net Sales by Market Net Sales by Market

Unit: Billion yen

Automotive electronics

37%

Industrial Equipment

20%

New Energy

Home

5%

appliances

7%

ICT

24%

Other

7%

ICT＋8pt, home appliances ＋1pt ＝ Automotive electronics

‐6pt, Industrial equipment/New energy/Other ‐1pt

31%

19%

4% 8%

32%

6%

29.2

Automoti ve electroni cs 11.2

Industrial Equipment

5.7

New Energy 1.4

Home appliances 2.0

30.8

9.6

5.8

1.3

2.5

ICT 6.9

9.9

1.8

Other 2.1

35

30

25

20

15

FY2025 Q1

10

5

0

0% 20% 40% 60% 80% 100%

Q1 FY2024

Q1 FY2025

NIPPON CHEMI‐CON CORPORATION

August 2025

4

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