Nippon Chemi-con CorporationTSE: 6997

Financial Results Explanatory Material(2Q FY2025)

· Issued by Nippon Chemi-con Corporation
Financial Results Explanatory Material for Q2 FY2025 (Six months ended September 30, 2025)






TSE Prime Market, Securities code:6997

Contents

  1. Q2 FY2025 Consolidated Earnings Summary
  2. FY2025 Full-Year Consolidated Earnings Forecast
  3. Appendix

Q2 FY2025 Trend in Net Sales and Operating Margin

Net Sales

Unit: Million yen

Trends in Net Sales and Operating Margin

Operating Margin (％)

50,000

45,000

40,000

9th Medium-term Management Plan

42,858 41,982

41,137

37,825 38,439 38,602

35,989

10th Medium-term Management Plan

39,203

35,680 34,718

15%



13%

11%

35,000

30,000

25,000

28,405

23,781

27,670

30,931

33,383 33,118

5.1%

7.2%

7.2%

6.4%

6.2%

9.7%

9.4%

5.9%

6.9%

5.8%

29,296

6.4%

30,618 30,911

31,858

30,886

33,360 9%

7%

5%

20,000

15,000

10,000

-1.3%

1.8%

4.3%

5.1%

5.4%

1.8%

4.3%

3.1%

4.6%

0.5%

3%

2.4%

1%

-1%

5,000 -3%

0

FY2020

Q1 Q2 Q3 Q4

FY2021

Q1 Q2 Q3 Q4

FY2022

Q1 Q2 Q3 Q4

FY2023

Q1 Q2 Q3 Q4

FY2024

Q1 Q2 Q3 Q4

FY2025

Q1 Q2

-5%

I. Q2 FY2025 Consolidated Earnings Summary

1H FY2025 Consolidated Results (YoY)

Despite delays in the recovery of the automotive electronics and industrial equipment markets, the ICT market was firm thanks to increased demand for AI servers, among other factors

Unit: Million yen, %

FY2024

FY2025

YoY

1H Results

1H Results

Change

% Change

Net Sales

59,914

64,246

+4,331

+7.2%

Operating income

1,850

956

-893

-48.3%

Ratio to net sales

3.1%

1.5%

-1.6pt

-

Profit attributable to owners of parent

78

269

191

-

Ratio to net sales

0.1%

0.4%

+0.3pt

-

Capital investment

5,218

3,812

-1,405

-26.9%

Depreciation and amortization

3,285

3,297

+12

+0.4%

R&D expenses

2,056

2,002

-53

-2.6%

Avg. exchange rate: USD (yen)

152.63

146.04

4.3% yen appreciation

Main Points of 1H FY2025 Consolidated Results

Main Points of 1H FY2025 Financial Results

Net Sales

  • Net sales (Market Trends)

    • Automotive electronics market

      US tariffs triggered uncertainty but orders received trended towards improvement on progress made towards parts inventory normalization.

    • Industrial equipment market

      Despite sentiment that the market had bottomed out,

      this did not lead to full-scale capital investments. Therefore, recovery is projected for 2H FY2025 or later.

    • ICT market

      Net sales were strong on continued growth in server demand for data centers

      (increased demand for AI servers)

  • Operating income

    • Income decreased by 48.3% YoY due to factors such as trend of yen appreciation, soaring material costs, and changes to the product mix.

64,246 million yen

YoY, up +7.2%

Operating income

956 million yen

YoY -48.3%

Profit attributable to owners of parent

269 million yen

1H FY2025 Net Sales by Market

FY2024

1H

Percentage of Net Sales by Market Net Sales by Market

Unit: Billion yen

Industrial Equipment

19%

New Energy

4%

6%

35%

7%

4%

19%

29%

ICT＋9pt ＝ Automotive Electronics -8pt, Other -1pt

Other 7%

ICT 26%

Home

appliances

7%

Automotive electronics 37%

64.2

59.9

19.3

Automoti ve electroni cs 22.2

12.1

Industrial Equipment 11.5

2.6

4.5

New Energy 2.6

21.6

Home

appliances 4.4

ICT 15.0

Other 4.2

4.1

70

60

50

40

30

FY2025 1H

20

10

0

FY2024

FY2025

1H FY2025 Net Sales by Region

FY2024

1H

FY2025 1H

Percentage of Net Sales by Region Net Sales by Region

Unit: Billion yen

18%

10%

11%

20%

41%

Greater China +3pt, Other ＋2pt ＝ Americas -2pt, Europe -1pt, Japan -2pt

Other 16%

Americas

12%

Europe 12%

Japan 22%

Greater China 38%

64.2

59.9

26.4

Greater China 22.5

Japan 13.1

13.0

Europe

7.3

7.0

Americas

7.2

6.3

11.5

Other 9.9

70

60

50

40

30

20

10

0

FY2024

FY2025

1H FY2025 Operating Income (YoY)

Unit: Billion yen



＋ Growth in sales for AI servers

＋ Cost reductions from production efficiency improvements

ー Selling price fluctuations (including product mix)

ー Soaring material costs

ー Increase in manufacturing fixed costs due to increased production

1H FY2025 Share Class

  • Trends in press releases concerning class of shares

    Release date

    Release details

    March 10, 2025

    fallen, 20% below the FY2024 Medium-term Management Plan operating income target of

    11.0 billion yen"

    September 17, 2025

    October 28, 2025

    No. of shares Payment Revised Common shares exercised amount Premium acquisition issued

    price*1

    September 17, 2025 363 shares 363 million yen 1.415 513.6 million yen 1,025.4 500,921 shares

    October 28, 2025 362 shares 362 million yen 1.415 512.2 million yen 1,025.4 499,541 shares

    Total 725 shares 1,000,462 shares

    *1. 90% of VWAP average price for the 20-day period prior to June 30, 2025

    • The removal of conversion restriction from FY2025 onwards was accelerated by one year

    • Applies to "Cases of confident projections of results that will fall, or results have already

    • JIS exercised put options attached to Class B shares to receive common shares as consideration.

    • We received the following verbal explanation regarding the JIS (via our press release) policy for the foreseeable future *as of March 2025

(1)

Policy is to not allow the transfer of this class of shares to a third party.

(2)

Class A Shares

There are no plans to exercise Put Options for the foreseeable future (Put Options exercisable from April 2026)

(3)

Class B Shares

Assumes the gradual exercising of Put Options and the acquisition of our Company's common shares followed by selling on the market based on timing deemed appropriate by the JIS Fund for the objective of achieving capital gains by improving the Company's corporate value and maximizing share value

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