Tamura CorporationTSE: 6768

Financial Results Presentation for FY2025 Q2 (With Script)

Nov 18, 2025 at 6:42 AM UTC · Issued by Tamura Corporation

Security Code: 6768

Prime Market, Tokyo Stock Exchange

TAMURA CORPORATION

Financial Results for Q2 FY2025

Nov 12, 2025

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any

discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Translation

This is Nakamura, the President. Thank you for joining us today for our FY2025 Q2 financial results briefing.

Agenda

Q2 FY2025 Financial Summary
FY2025 Full Year Forecast
Progress of the 14th Medium-term Management Plan
Summary

【Appendix】

Representative Director, President, COO Mitsutaka Nakamura

As outlined in the agenda, I will cover the following topics:

The summary of financial results for the second quarter of the fiscal year ending March 2026
The full-year earnings forecast for the fiscal year ending March 2026
The progress of the 14th Medium-term Management Plan

1.Q2 FY2025 Financial Summary

First, let me begin with the summary of financial results for the second quarter of the fiscal year ending March 2025.

[Million yen]	FY2024	FY2025			FY2025
[Million yen]	Q2 Actual	Q2 Actual	Change	Change %	Q2 Forecast*
Sales	52,453	58,189	5,736	10.9%	55,600
Cost of Sales	38,471	42,703	4,231	11.0%	-
（Cost of Sales Ratio）	(73.3%)	(73.4%)	(0.1pt)	11.0%	-
SGA （SGA Ratio）	12,321 (23.5%)	12,601 (21.7%)	280 (▲1.8pt)	2.3%	-
Operating Profit （%）	1,660 (3.2%)	2,884 (5.0%)	1,224 (1.8pt)	73.7%	1,700 (3.1%)
Ordinary Profit	1,762	2,575	812	46.1%	-
Net Profit	942	319	▲622	▲66.1%	-

Exchange rate Average	153.21	145.65	▲ 7.56	▲4.93%	145
USD-JPY End of Term	142.73	148.88	6.15	4.31%	145

Q2 FY2025 Financial Results

*Forecast announced on May 14, 2025

For the fiscal year ending March 2026, second-quarter consolidated net sales were ¥58.19 billion, and operating income was ¥2.88 billion, both setting new record highs for an interim period.

However, net income for the quarter was ¥319 million, representing a decline compared to the same period last year.

Further details will be provided separately.

Please note that during this interim period, there was no significant impact on our business from the U.S. administration's tariff measures.

[Million yen]	Q2 FY2025 Actual	YoY	Change %	Key Factors Behind the Changes (+) Positive Factors / (-) Negative Factors
Sales	58,189	5,736	10.9%	(+)Strong demand for data center-related products in the U.S. and other regions, driven by the expansion of AI (+)Stable demand for automotive components, driven by progress in electrification * No significant impact from U.S. government tariff measures in Q2
Cost of Sales （Cost of Sales Ratio）	42,703 (73.4%)	4,231 (0.1pt)	11.0%
SGA （SGA Ratio）	12,601 (21.7%)	280 (▲1.8pt)	2.3%
Operating Profit （%）	2,884 (5.0%)	1,224 (1.8pt)	73.7%
Ordinary profit	2,575	812	46.1%
Net profit	319	▲622	▲66.1%	(-) Recorded a provision for loss associated with the transfer of equity interests in an equity-method affiliate

Key Factors Behind Q2 FY2025 Performance

Sales and profit increased due to strong growth in key clean energy-related markets, including automotive sectors and AI data centers

Next, I will explain the key factors behind the changes in our second-quarter results for the fiscal year ending March 2026. Further details by business segment will be provided in the following slides.

Net income attributable to owners of the parent fell below the level of the same period last year.

As announced on September 1, this was due to the provision for losses associated with the transfer of our equity interest in an affiliated company in China accounted for under the equity method.

This transfer is part of the restructuring of our production bases in China, which we have been promoting under the new Medium-term Management Plan launched in April.

We will report on the initiatives under the Medium-term Management Plan later in the presentation.

Q2 Performance by Business & Area

Electronic Components and Electronic Chemicals & Soldering Systems: Sale and profit increased Information Equipment: Sales decreased and losses widened
Japan: Sales and profit decreased due to restructuring costs China: Recovery after completion of customer inventory adjustments Europe and the Americas: Expansion driven by AI data center demand

* Japan Operating Profit includes such as corporate expenses.

Consolidated	[100 million yen]	Q2 FY2023 Actual	Q2 FY2024 Actual	Q2 FY2025 Actual	YoY
	Sales	519	525	582	10.9%
Consolidated	Operating Profit	17.2	16.6	28.8	73.7%
	OP%	3.3%	3.2%	5.0%	1.8pt

By Area	[100 million yen]	Q2 FY2023 Actual	Q2 FY2024 Actual	Q2 FY2025 Actual	YoY
Japan	Sales Operating Profit* OP%		178 ▲3.4 ▲1.9%	173 2.3 1.3%	165 0.8 0.5%	▲4.3% ▲62.7% ▲0.8pt
	Sales		116	113	135	19.2%
China	Operating Profit		6.0	1.7	10.7	516.5%
	OP%		5.2%	1.5%	7.9%	6.4pt
	Sales		99	91	109	18.8%
Other Asia	Operating Profit		10.7	6.4	7.7	19.9%
	OP%		10.9%	7.1%	7.1%	0.1pt
	Sales		126	147	173	17.5%
Europe and the Americas	Operating Profit		3.9	6.1	9.5	55.3%
	OP%		3.1%	4.2%	5.5%	1.3pt

By Bussiness
Sales	364	347	392	13.2%
Electronic Operating Profit Components	13.4	7.7	18.1	135.4%
OP%	3.7%	2.2%	4.6%	2.4pt
Sales	147	164	181	10.7%
Elec Chemicals & Operating Profit	10.3	13.4	18.6	38.7%
Soldering Systems OP%	7.0%	8.2%	10.2%	2.1pt
Sales	8.8	14.8	8.6	▲41.6%
Information Operating Profit Equipment	▲1.3	▲0.5	▲4.0	Losses widened
OP%	▲14.3%	▲3.3%	▲46.7%	▲43.4pt

This slide presents an overview of sales, operating profit, and operating margin by business segment and by area.

By business segment, Electronic Components and Electronic Chemicals & Soldering Systems achieved higher sales and operating profit, while Information Equipment recorded lower sales and a deeper operating loss.

From an area perspective, Japan posted a decline in both sales and operating profit. This was primarily due to lower revenue following the transfer of certain businesses of a consolidated subsidiary to a third party on June 1, as well as expenses related to production restructuring, including the construction of a new manufacturing building.

In China, sales and operating profit recovered, supported by the completion of inventory adjustments at major customers.

In Europe and the Americas-markets where we are strategically focusing-both sales and operating profit grew significantly. This was driven by robust demand for data center-related products in the U.S., fueled by the rapid expansion of AI.

	FY2024	FY2025		FY2025
[Million yen]	Q2 Actual	Q2 Actual	YoY	Q2 Forecast*
Sales	34,678	39,239	13.2%	37,600
Operating Profit	767	1,807	135.4%	1,300
OP%	2.2%	4.6%	2.4pt	3.5%

Sales & Profit By Business

Electronic Components

Sales and profit increased, with steady growth driven primarily by AI data center demand in the U.S
Although part of the business was transferred to a third party in June, strong demand kept Q2 sales flat while profit increased

Sales [100 million yen] Operating Profit [100 million yen] OP%

162

185

212 209 198

195

6.5%

5.3%

4.1%

13.9

4.4%

4.8%

11.2

9.4

*Note: Figures announced on May 14, 2025

6.7

8.7

0.5%

1.0

FY2024 FY2025

Recorded a lump-sum provision for inventory valuation losses from prior fiscal years during Q2 FY 2024

I will now report on the performance of the Electronic Components business. Net sales were ¥39.2 billion, operating profit was ¥1.81 billion, and the operating margin was 4.6%, all exceeding both the results of the same interim period last year and our initial forecast.

Looking at the quarterly trend, despite the transfer of certain businesses on June 1, strong demand kept second-quarter sales at a level comparable to the first quarter.

[100 million yen]	FY2024	FY2025			Key Factors Behind the Changes (+) Positive Factors / (-) Negative Factors
[100 million yen]	Q2 Actual	Q2 Actual	%	YoY
Sales by product	347	392	100.0%	13.2%
Large transformers & reactors	70	96	24.5%	37.3%	(+) U.S. AI data center demand strong
Transformers	34	42	10.6%	22.9%	(+) Moderate growth in air-conditioning and aerospace & defence sectors
Coils & reactors	104	114	28.9%	9.2%	(+) Stable trend in air-conditioning demand
AC adapters & chargers	51	62	15.9%	22.5%	(+) Power tools recovering, but recent demand softening
EMS	10	9	2.4%	▲ 5.6%
Modules	35	38	9.8%	9.5%
Other	42	31	7.8%	▲ 26.9%
Sales by market	347	392	100.0%	13.2%
Industrial machinery	83	76	19.3%	▲ 8.9%	(-) Manufacturers remain cautious on capex
Energy	91	120	30.6%	32.0%	(+) Strong performance in large transformers and reactors
Transportation & auto	38	40	10.2%	5.5%	(+) Increased sales to the U.S. market
Home	113	134	34.2%	18.6%	(+) Inventory adjustmen for power tools completed
Information & communications ・ AV and other	22	23	5.8%	2.7%

Sales & Profit By Business

Electronic Components

By products: Large transformers & reactors showed significant growth, while other products also recorded higher sales
By market: Sales increased in the energy and home appliance sectors, while demand for industrial machinery remained weak

Next, I will report on sales by product category and by market within the Electronic Components business.

Large transformers and reactors posted significant growth, driven mainly by demand for U.S. AI data centers. These are classified under the Energy market. Transformers saw a moderate recovery in air-conditioning applications, along with an increase in aerospace and defense applications. In terms of market classification, air-conditioning applications are included in the Home market, while aerospace and defense applications fall under the Industrial Machinery market.

AC adapters and chargers, primarily for power tools, recorded higher sales following the completion of inventory adjustments at major customers. These are classified under the Home market.

[Million yen]	FY2024	FY2025		FY2025
[Million yen]	Q2 Actual	Q2 Actual	YoY	Q2 Forecast*
Sales	16,365	18,124	10.7%	17,300
Operating Profit	1,338	1,856	38.7%	1,300
OP%	8.2%	10.2%	2.1pt	5.8%

Sales & Profit By Business

Electronic Chemicals & Soldering Systems

Sales and profit increased driven by strong demand and price pass-through of rising material costs
Despite higher material costs and deteriorating cost ratio, profit increased due to solid demand and expense control; operating profit improved in Q2

Sales [100 million yen] Operating Profit [100 million yen] OP%

11.7%

10.7%

8.8%

7.6%

8.2%

8.7%

10.2

11.0

6.7

6.6

7.1

7.6

*Note: Figures announced on May 14, 2025

FY2024 FY2025

I will now report on the performance of the Electronic Chemicals & Soldering Systems business.

Net sales were ¥18.1 billion, operating profit was ¥1.86 billion, and the operating margin was 10.2%, delivering strong results that exceeded both the same interim period last year and our initial forecast, similar to the Electronic Components business.

Looking at the quarterly trend, in addition to solid demand in the chemical materials business, the effect of cost control contributed to a significant improvement in the operating margin in the second quarter.

[100 million yen]	FY2024	FY2025			Key Factors Behind the Changes (+) Positive Factors / (-) Negative Factors
[100 million yen]	Q2 Actual	Q2 Actual	%	YoY
Sales by profuct	164	181	100.0% 63.2% 19.2% 7.9% 9.7%	10.7% 13.0% 11.7% 15.6% ▲ 6.6%	(+) Increase due to steady demand for automotive and price adjustments reflecting rising metal prices (+) Strong performance in FPC boards for smartphones (-) Continued cautious stance on capital investment by customers
Solder paste	102	115
Solder resist	31	35
Flux	13	15
Soldering systems	19	18

Sales & Profit By Business

Electronic Chemicals & Soldering Systems

Electronic Chemicals: Sales increased, driven by solid demand for automotive solder paste and strong performance in smartphone solder resist
Soldering Systems: Sales decreased as domestic and overseas manufacturers maintained a cautious stance on capital investment

I will now report on sales performance by product category within the Electronic Chemicals & Soldering Systems business.

Sales of solder paste continued to perform well, particularly for automotive applications. In addition, since the pricing of solder paste is linked to the price of metals-the main raw material-sales also increased in line with the upward trend in metal prices.

Solder resist remained solid, driven mainly by flexible printed circuit boards for AI-equipped smartphones, which are our core products.

On the other hand, soldering systems did not see a recovery in sales, as customers both in Japan and overseas continued to take a cautious stance toward capital investment.

[Million yen]	FY2024	FY2025		FY2025
[Million yen]	Q2 Actual	Q2 Actual	YoY	Q2 Forecast*
Sales	1,481	864	▲ 41.6% Losses widened ▲43.4pt	700 ▲500 ▲71.4%
Operating Profit	▲ 48	▲403
OP%	▲3.3%	▲46.7%

Sales & Profit By Business

Information Equipment

Sales decreased and loss widened, due to the broadcasting industry continues to face a challenging capital investment environment

Sales [100 million yen] Operating Profit [100 million yen] OP% 10.4

8.5

6.3

5.5

3.4

3.1

*Note: Figures announced on May 14, 2025

▲12.1%

0.3

0.8

▲20.1%

▲ 0.8

3.3% ▲62.5%

7.8%

▲93.7% ▲ 1.1

▲ 2.1

▲ 2.9

Q1 Q2

FY2025

FY2024

Finally, I will explain the performance of the Information Equipment business. Net sales were ¥0.86 billion, and the operating loss was ¥0.40 billion, resulting in lower revenue and a deeper loss compared to the previous period.

Demand remains sluggish as the broadcasting industry continues to face a challenging environment for capital investment.

Cash and bank deposit	203	180	▲23
Trade receivables	301	285	▲17
Inventories	244	231	▲13
Tangible Fixed assets	310	327	17
Total assets	1,243	1,225	▲18
Accounts payable	149	138	▲10
Interest-bearing debt	339	338	▲1
Net assets	640	605	▲35
Total liabilities and net assets	1,243	1,225	▲18

Cash Flows	24/9	25/9	YoY
Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Free cash flows Increase/decrease in cash and cash equivalents Cash and cash equivalents at end of year	62.6 ▲15.6 ▲35.4 47.0 24.9 193.3	24.1	▲38.5
		▲20.1	▲4.5
		▲18.5	16.9
		3.9	▲43.1
		▲22.1	▲46.9
		171.2	-

Balance Sheet and Cash Flows as of September 2025

Promoted inventory reduction initiatives by setting target inventory turnover periods, and continued efforts to streamline assets
Operating cash flow decreased due to a decline in trade payables, while investing cash flow increased with capital expenditures for acquiring a new manufacturing building for Electronic Chemicals

[100 million yen]

Equity ratio

51.3% 49.3% ▲2.0pt

[100 million yen]

25/3 25/9 YoY

I will now explain the balance sheet and cash flow statement as of the end of September 2025.

We have been working to optimize inventory levels and inventory turnover days, resulting in a ¥1.3 billion decrease in inventories compared to the previous fiscal year-end.

Operating cash flow declined significantly, mainly because changes in trade payable shifted from an increase in the previous fiscal year to a decrease in the current period.

Investment cash flow increased due to capital expenditures for the construction of a new manufacturing building for the Electronic Chemicals & Soldering Systems business.

2. FY2025 Full Year Forecast

Next, I will explain the full-year earnings forecast for the fiscal year ending March 2026.

[Million yen]	FY2025	FY2026				FY2026
[Million yen]	Actual	H1 Forecast	H2 Forecast	FY Forecast	YoY	Forecast as of May
Sales	114,051	58,189	61,811	120,000	5.2%	112,000
Operating Profit	5,195	2,884	2,116	5,000	▲3.8%	4,600
(%)	(4.6%)	(5.0%)	(3.4%)	(4.2%)	(▲0.4pt)	(4.1%)
Ordinary Profit	5,061	-	-	4,400	▲13.1%	4,300
Net Profit	2,782	-	-	1,600	▲42.5%	1,600

Exchange rate Average	152.28	145	▲4.8%	145
USD-JPY End of Term	149.52	145	▲3.0%	145

Dividends per share	JPY13.0	JPY10.0	▲JPY3.0	JPY10.0
Dividend payout ratio	38.2%	50.8%	12.6pt	51.1%
ROE	4.6%	2.6%	▲2.0pt	2.5%
ROIC	4.8%	3.9%	▲0.9pt	3.7%

FY2025 Full Year Forecast

As announced on November 10, we have revised our full-year earnings forecast. We now expect net sales of ¥120 billion, operating profit of ¥5.0 billion, and net income attributable to owners of the parent of ¥1.6 billion.

[Million yen]	Forecast	YoY	Change %	Key Factors Behind the Changes (+) Positive Factors / (-) Negative Factors
Sales	120,000	+5,949	+5.2%
				(+) Electronic Components: Solid demand from the U.S. data
Operating Profit (%)	5,000 (4.2%)	▲195 (▲0.4pt)	▲3.8%	center market (+) Electronic Chemicals: Expanding demand in the information and communications market
				(-) Information Equipment: Continued cautious stance on
				(-) Information Equipment: Continued cautious stance on
				customer capital investment
Ordinary Profit	4,400	▲661	▲13.1%	(-) Costs related to business restructuring and site optimization Note: Direct tariff impact expected to be limited, but outlook
				remains cautious
Net Profit	1,600	▲1,182	▲42.5%

Key Factors Behind Full-Year Forecast

Demand in the AI data center market, a key focus area, is expected to remain strong
Promoting initiatives to improve our business structure toward achieving ROE of 8% or higher and an operating margin of 7% or higher in FY 2027

Next, I will explain the key factors behind the changes in the full-year forecast for the fiscal year ending March 2026.

In the Electronic Components and Electronic Chemicals & Soldering Systems businesses, we anticipate continued strong demand in our focus market of AI data centers.

On the other hand, net income is expected to decline significantly. This is because we are promoting initiatives related to the optimal allocation of businesses and production sites as part of our efforts to achieve the targets set in the Medium-term Management Plan-ROE of 8% or higher and an operating margin of 7% or higher by fiscal 2027-and we expect to incur costs associated with these initiatives.

These initiatives, which focus on strengthening our business structure, will be reported later as part of the progress on the Medium-term Management Plan.

FY2025 Forecast by Area

Japan: Lower sales from business transfer and lower profit from production reorganization cost
Asia/Europe/U.S.: Sales and profit growth driven by AI data center market expansion

This slide shows the full-year forecast by area.

In Japan, we expect lower revenue and profit, while Other Asia and Europe & the Americas are both projected to achieve higher revenue and profit, driven by growing demand in the AI data center market.

		FY2025	FY2026		Key Factors Behind the Changes (+) Positive Factors / (-) Negative Factors	FY2026
	[100 million yen]	Actual	Forecast	YoY		Forecast as of May
	Sales	768	790	2.9% ▲2.2% ▲0.2pt	(+) Growing demand for AI data centers (-) Home appliance inventory adjustments; slow recovery in industrial equipment (-) Costs incurred for site/product optimization	732
Electronic Components	Operating Profit OP%	32.7 4.3%	32.0 4.1%	2.9% ▲2.2% ▲0.2pt		26.0 3.6%
	Sales	346	380	10.0% 14.2% 0.3pt	(+) Increased demand for information and communication devices and AI data center-related products (-) Rising material costs impacting margins	355
Elec Chemicals & Soldering Systems	Operating Profit	30.7	35.0			30.0
	OP%	8.9%	9.2%			8.5%
	Sales	29	30	4.7% - (-) Continued challenging capital investment environment in the broadcasting industry -		33
Information Equipment	Operating Profit	▲1.8	▲5.0			0.0
	OP%	▲6.3%	▲16.7%			-
	Sales	1,141	1,200	5.2%		1,120
Consolidated	Operating Profit	52.0	50.0	▲3.8%		46.0
	OP%	4.6%	4.2%	▲0.4pt		4.1%

FY2025 Forecast by Business

Electronic Components: Sales expected to increase, but profit to decrease due to costs associated with structural reforms
Electronic Chemicals & Soldering Systems: Sales and profit expected to increase, driven by the chemical business
Information Equipment: Losses expected to widen

This slide provides an overview of the forecast for sales, operating profit, and operating margin by business segment.

Now, let me explain each business in detail.

[100 million yen]	FY2024	FY2025			FY2025
[100 million yen]	Actual	Forecast	%	YoY	Forecast as of May
Sales by product*	768	790	100.0%	2.9%	732
Large transformers & reactors	158	195	24.7%	23.4%	177
Transformers	72	80	10.1%	10.1%	76
Coils & reactors	224	233	29.5%	4.1%	223
AC adapters & chargers	130	121	15.3%	▲ 6.7%	110
EMS	21	23	2.9%	7.3%	21
Modules	74	77	9.7%	3.4%	76
Others	87	61	7.7%	▲ 30.7%	49
Sales by market	768	790	100.0%	2.9%	732
Industrial machinery	168	154	19.4%	▲ 8.8%	141
Energy	209	243	30.8%	16.1%	225
Transportation & auto	80	85	10.8%	6.5%	92
Home	262	262	33.1%	▲ 0.2%	244
Information & communications・AV and other	48	47	5.9%	▲ 2.8%	29

Forecast: Electronic Components

Expecting growth in large transformers and reactors, along with a gradual recovery in demand for air-conditioning and automotive reactors
Operating profit is projected to remain at the previous year's level due to costs for optimizing production sites and capital investments in products for key markets

Sales & Operating Profit

790

768

(2.9%)

4.3%

4.1%

421

398

(▲5.5%)

32.0

32.7 (▲2.2%)

13.9 (▲44.4%)

25.0

392

347 (13.2%) 18.1

(135.4%)

7.7

FY24 FY25 Forecast

(YoY)

Sales

FY24

FY25 Forecast (YoY)

Operating Profit

H1 [100 million yen] H2 [100 million yen] OP%

*Revied item classification by product. Others in FY2024 Actual includes LED.

This is the full-year forecast for the Electronic Components business for the fiscal year ending March 2026.

We expect net sales of ¥79.0 billion and operating profit of ¥3.2 billion, representing higher revenue and flat profit compared to the previous year.

Sales are projected to increase, supported by continued strong demand for large transformers and reactors, as well as a moderate recovery in demand for air-conditioning and automotive reactors.

However, operating profit is expected to remain at the same level as last year due to costs associated with optimizing production sites and capital investments in large transformers, reactors, and module products, which are key focus areas.

[100 million yen]	FY2024	FY2025			FY2025
[100 million yen]	Actual	Forecast	%	YoY	Forecast as of May
Sales by product	346	380	100.0%	10.0%	355
Solder paste	214	242	63.7%	13.1%	222
Solder resist	67	67	17.7%	0.7%	64
Flux	26	29	7.5%	8.6%	27
Soldering systems	41	42	11.0%	3.0%	42

Forecast: Electronic Chemicals & Soldering Systems

Solder paste: Demand expected to expand for automotive applications as well as AI data center-related markets.
Soldering Systems: Forecast to remain flat as cautious investment stance continues among manufacturers.

Sales & Operating Profit

380

(10.0%)

8.9%

9.2%

346

35.0

(14.2%)

30.7

)

FY24 FY25 Forecast

(YoY)

Sales

H1 [100 million yen]

FY24

FY25 Forecast (YoY)

Operating Profit

H2 [100 million yen]

OP%

13.4

18.6

(38.7%)

164

181

(10.7%)

17.3

16.4 (▲4.9%

182

199

(9.3%)

Next, I will explain the full-year forecast for the Electronic Chemicals & Soldering Systems business.

We expect net sales of ¥38.0 billion and operating profit of ¥3.5 billion, representing higher revenue and profit compared to the previous year.

Sales of solder paste are expected to remain strong in automotive applications, and we anticipate growing demand in AI data center-related applications, including servers and cooling equipment.

Sales of solder resist are projected to remain flat overall, but the proportion of high-value-added products-such as those used in AI servers and smartphones-is expected to increase.

Operating Profit

H2 [100 million yen] OP%

H1 [100 million yen]

Sales

▲16.6%

FY25 Forecast

(YoY)

FY24

FY25 Forecast (YoY)

FY24

8.6

(▲41.6%) ▲4.0

(Loss widened)

▲6.3%

▲1.0

(Loss narrowed)

▲5.0

(Loss widened)

▲1.8

▲0.5

14.8

21.5

(55.6%)

30.0

(4.7%)

28.7

13.8

Forecast: Information Equipment

Broadcast stations remain cautious about capital investment, resulting in flat sales
Operating loss widened due to deteriorating profitability from changes in the sales mix and inventory revaluation caused by customers postponing equipment installation

Sales & Operating Profit

▲1.3

This is the full-year forecast for the Information Equipment business.

We expect net sales to remain flat at ¥3.0 billion, as cautious capital investment by broadcasting stations is likely to continue.

On the profit side, we anticipate a deeper loss due to a deterioration in profitability caused by changes in the sales mix, as well as inventory buildup resulting from delays in customers' equipment installation schedules, which is expected to lead to inventory valuation losses.

[100 million yen]	FY2024	FY2025
[100 million yen]	Actual	Forecast	YoY	Change %
Capital
Expenditure	46.2	60.6	14.4	31.2%
Depreciation
*Leases include	42.9	43.7	0.8	1.9%
R&D (R&D to Sales )	39.7 (3.5%)	39.2 (3.3%)	▲ 0.5	▲ 1.3%

Capital Expenditure, Depreciation and R&D

Capital investment increased significantly due to the construction of a new manufacturing building for the Electronic Chemicals & Soldering Systems business
In R&D, continued focus on developing elemental technologies and products for next-generation power semiconductors

*R&D includes labor, capital and other expenditures associated with R&D activities

Next, let me share our outlook for capital expenditures and R&D investments. Capital expenditures are expected to increase significantly, primarily due to the construction of a new manufacturing facility for our Electronic Chemicals & Soldering Systems business at the Sayama Factory. The new building was completed at the end of September and is now in the equipment installation phase.

On the R&D front, we remain committed to advancing core technologies and developing products for next-generation power semiconductors, which we believe will be a key driver of future growth.

3. Progress of the 14th Medium-term Management Plan

Next, I would like to provide an update on the progress of our 14th Medium-term Management Plan.

Vision 2030

≧12%

≧10%

ROE

OP%

FY2027

≧8%

≧7%

ROE

OP%

4.6%

OP%

FY2024

ROE 4.6%

A leading company well recognized by global electronics markets to contribute to realizing decarbonized society

Aspiration for 2050

Excerpt from past materials

Overview of the 14th Medium-term Management Plan (April 2025 - March 2028)

Aiming for a PBR above 1x through integrated ROE improvement across business, sustainability and financial strategies

Business

Business portfolio review

Building a foundation for growth
Structural improvement

Profitability Improvement

ROE

≧8%

•

ROIC

Improvement

Financial

Cash allocation supporting growth

Enhanced shareholder returns

Improved Shareholder Returns

•

Sustainability •

•

Governance & Compliance

Human Resource Environment

Cash Generation Improvement

PBR

≧1

First, let me outline the key points of our 14th Medium-term Management Plan. We are driving an integrated approach that combines our business strategy, sustainability initiatives, and the financial strategy that supports them. By the final year of the plan, fiscal 2027, we aim to achieve an ROE of over 8% and an operating margin of over 7%.

To reach these targets, we are focusing this fiscal year and the next on strengthening our corporate structure and building a solid foundation for sustainable growth.

Targeting core business sales exceeding JPY100 billion, operating profit above JPY8 billion, and an operating margin greater than 8% in the final year of the medium-term plan

*Core Businesses: Carbon-neutral related business

Electronic Components & Electronic Chemicals Key Markets: Clean energy-related markets

Power infrastructure, Heavy industry, Next-generation communications, mobility

4. Consider strategic investments

Lowered costs through production efficiency improvements (production capacity enhancement, M&A, etc.)
- Constructed a new manufacturing building at Sayama site

Promoted talent strategy to drive business expansion in Europe and the U.S

Strengthen R&D for the next-generation power electronics market

Established an "Advanced Power Electronics R&D"
Joined the Tohoku University Co-Creation Research Center

Growth

Capital Efficiency

Implemented SCM reforms and inventory optimization across global sites
- Reduced inventory by JPY1.3 billion compared to the previous fiscal year-end

Building the Foundation for Growth

Reallocate management resources to core businesses* and key markets*

Strengthened capital investment to support the expansion of the AI data center market
- Established a domestic module production line, previously limited to China, to meet growing demand in the European and U.S. power electronics markets
- Approved additional capital investment for the second plant in Mexico to address robust demand for AI data centers in the U.S.

2. Completed the transfer of certain businesses of a consolidated subsidiary

Aim to reduce the number of sites in China by up to 30% and achieve early implementation of business restructuring in other regions as well

Europe and U.S Focus

Resolved to transfer equity interest in an equity-method affiliate in China

Business Restructuring

Business Portfolio Restructuring

Toward Structural Reform

Promote structural reform and optimize the production system

To strengthen our corporate structure, we are implementing business restructuring and improving capital efficiency.

In terms of business restructuring, we completed the transfer of certain operations of a consolidated subsidiary in June, and in September, we decided to divest our equity interest in an affiliated company in China.

To optimize production, we are working toward reducing our sites in China by up to 30%, and progress is being made. As these initiatives are still underway internally, we will provide updates on additional measures as decisions are finalized.

Furthermore, following China, we are also considering business restructuring in other areas and aim to realize these changes as early as possible.

On capital efficiency, we are advancing global SCM reforms and inventory optimization, which have resulted in a reduction of approximately 1.3 billion yen in inventory compared to the end of the previous fiscal year. We are also approaching our target inventory turnover days.

In addition, at the newly constructed manufacturing facility, we will pursue cost reductions through improved production efficiency.

For building a foundation for future growth, we are allocating management resources to our core businesses and priority markets. The following slides will provide details on these initiatives.

Through these efforts, along with further measures to strengthen our corporate

structure, we aim to achieve operating income of over 8 billion yen and an operating margin exceeding 8% in our core businesses by the final year of the plan, thereby establishing a solid platform for the next stage of growth.

2x vs FY2023

2,500

150%

2,000

100%

1,500

50%

Increased Construction

Second Plant

Second Plant Additional Investment

1,000

Production Capacity

500

2022 2023 2024 2025 2026

Actual Actual Actual Estimate Plan

2027

Plan

2023 2024 2025 2026 2027 2028 2029 2030

Actual Actual Estimate Forecast Forecast Forecast Forecast Forecast

Source: Fuji Chimera Research Institute, "2024 Comprehensive Study on Data Center, AI, and Key Device Markets" Based on market size trends by category (Power Systems, Cooling Systems) in the Data Center, AI, and Key Device Markets; created by Tamura Corporation

*Cooling equipment includes chillers, turbo refrigerators, and AHUs.

Considering further expansion of production capacity in the future

CAGR2025-2027 12%

Further Expansion of Demand in the Data Center Market

Sales Expansion Strategy Progress and Market Growth

Developing new applications for AI servers and expanding sales regions, customers, and market share

Boost Production Capacity through Further Investment

Executing additional facility investments to meet strong data center demand

Region: Expand sales regions from primarily Europe and the U.S to Japan, Asia, and Oceania

Customers: Entered the expansion phase with supply to Japanese customers

(previously focused on European and U.S. customers) Applications: Developed applications for AI servers and HVAC systems Market Share: Significantly increase share for PDUs in the U.S. market

2024: 20% ⇒ 2025: 30% ⇒ 2026: 40% *Company estimate

Target market for Electronic Components Business

350%

Japan: New module production line for Europe and the U.S.;

Aim to 2x Sales by FY2027 vs FY2023 Mexico: $2.7M investment to boost capacity;

Aim to 3x Sales by FY2027 vs FY2023

Sales of large transformers and reactors manufactured at the Mexico factory

3x vs

FY2024 Initial Plan

FY2023

Billion JPY

1.5x vs FY2023

300%

As of Oct. 2025

250%

3,500

UPS Cooling Systems Tranformers

2x vs FY2023

2 years early

200%

3,000

Next, I would like to explain the growing demand in the data center market, which is one of our key focus areas.

We are actively implementing expansion strategies across regions, with a particular emphasis on Europe and the U.S., while steadily increasing sales in Japan, Asia, and Oceania.

Although the majority of our customers are still based in Europe and the U.S., orders from Japanese customers are also on the rise.

Our presence in this market continues to strengthen, and in the U.S. market, our share of large transformers for PDUs has grown significantly-from 20% last year to 30% this fiscal year-and we are working toward reaching 40% in fiscal 2026. As shown in the chart on the lower left, the data center market is expected to continue expanding. To capture this opportunity, we have decided to make strategic capital investments.

Specifically, we have established a new production line for modular products in Japan targeting the European and U.S. markets.

In addition, we are installing additional production equipment at our Mexico factory, which manufactures large transformers and reactors for the U.S. market. Through these initiatives, we aim to double sales of modular products for Europe and the U.S. by fiscal 2027 compared to fiscal 2023.

For large transformers and reactors produced in Mexico, we originally targeted a twofold increase by fiscal 2027, but we now expect to achieve this two years

ahead of schedule, within this fiscal year. Therefore, we have revised our target to triple sales by fiscal 2027 compared to fiscal 2023.

Target Equipment	Adopted Products
AI Servers	PICC, Solder Paste, Solder Resist, Flux
HVAC Equipment	Transformers, Reactors, Low Melting Point Solder Paste
PDUs	Large Size Transformers
UPSs	Large Size Reactors, Gate Driver Modules, Current Sensors
Server Power Supply Unit	Low Void Solder Paste
Optical Communication Module	Fine-Pitch Solder Paste
Direct Current Power Supply	Low Void Solder Paste

Expanding Applications in the Data Center Market

Total Solution Proposal PICC Adopted for Use in AI Servers Enhancing presence by providing total solutions, PICC = Photo Imageable Coverlay Coat

centered on large transformers and reactors, to the growing European and the U.S. markets

Our data center product lineup

Leveraging AI demand growth and expanding into next-generation communication applications to achieve 3x Sales by FY2027 vs FY2024

Other Applications: AI Smartphones, Wearables, SDV, etc.

Illustrative sales for PICC

350%

300%

250%

200%

150%

100%

50%

3x vs FY2024

FY2024

Start of Delivery

2023 2024 2025 2026 2027

Actual Actual Estimate Forecast Forecast

Further development to build a next-generation business pillar

Next, I would like to explain how we are expanding applications in the data center market.

Beyond large transformers and reactors, we are increasing adoption of our products for data center use, including HVAC systems, PSUs, and optical communication modules.

Going forward, we will continue to propose comprehensive solutions leveraging our diverse product portfolio, further strengthening our presence in this growing market.

On the right, you can see PICC, which has recently been adopted for AI server applications.

This product combines the functions of coverlay and solder resist, offering excellent performance for high-density component mounting and low rebound characteristics.

In addition to AI servers, we plan to expand its use to AI-enabled smartphones, wearable devices, and SDV applications, contributing to next-generation information and communication fields.

We are also developing products that further reduce transmission loss, aiming to create solutions that will become a core pillar of our next-generation business.

Accelerating Development of Next-Generation Power Semiconductor Products

Expansion of Wide Bandgap (WBG) Semiconductors Launch of Advanced Power Electronics R＆D

To fully maximize the performance of WBG semiconductors, Integrating Tamura's Core Technologies

advanced peripheral electronic components are essential Electronic Chemicals

Electronic Components

Renewable Energy Mobility Design × Manufacturing

& Soldering Systems

Long-standing expertise in organic thin films and more

Trillion JPY

Power device-related market CAGR2025-2035 8%

Si SiC GaN Gallium Oxide

Joined Tohoku University Co-Creation Research Institute to maximize academic resources

Accelerating development via industry-academia collaboration

2022

Actual

2023 2024

2025 2026 2027 2028 2030 2035

Actual Actual Estimate Forecast Forecast Forecast Forecast Forecast

Creating high-growth × high-profit products through proprietary material development

Targeting commercialization by 2030

Source: Fuji Keizai, "2025 Edition: Current Status and Future Outlook of the Next-Generation Power Device-Related Market"

Based on the overview diagram of the current status and future outlook of the power device-related market, created by Tamura Corporation

Next, I would like to share our initiatives for next-generation development. Although we are seeing some slowdown due to stagnation in the EV market, wide-bandgap semiconductors continue to evolve and are expected to achieve further growth in the coming years.

To fully unlock the performance of wide-bandgap semiconductors, it is essential to enhance the performance of surrounding electronic components.

To address this, we are promoting vertically integrated development-from materials to finished products-by combining the technologies of our Electronic Components and Electronic Chemicals and Soldering Systems businesses.

In July this year, we established the Advanced Power Electronics R&D Center to strengthen our organizational structure with a view to future social implementation. We are also accelerating development through stronger industry-academia collaboration, including participation in the Co-Creation Research Institute at Tohoku University.

By leveraging university resources and connections with other research institutes, we aim to create differentiated, high-performance, high-value-added products starting from materials, with the goal of commercialization by fiscal 2030.

These efforts will position us to lead in next-generation technologies and secure a strong foundation for future growth.

Tamura leverages advanced technology and proven reliability to drive adoption in aerospace and defense, aiming for growth and market expansion.

Source: Created by Tamura Corporation based on "FY2025 Defense-Related Budget" published by the Ministry of Finance

Sales for Electronic Components for the defense industry are expected to double in FY2025 compared to FY2022

2025

2024

2023

2022

2021

Since Japan's space development began in the early days (JAXA's predecessor), Tamura's space-use transformers and coils have been adopted in many defense satellites, launch vehicles, and the International Space Station

In 1972

Developed transformers and coils installed in Ume (ISS), Japan's first working satellite

5.4

5.3

6.8

Tamura is a certified manufacturer of power transformers and coils by JAXA (Japan Aerospace Exploration Agency)

7.9

8.7

Illustrative Sales

Defence Budget

Trillion JPY

Expansion of the Aerospace & Defense Industry Market and Our Strengths

Growing Demand Driven by Defense Enhancement Reliability Built Through Aerospace Industry

Under the Ministry of Defense's policy to Supporting stable operations even under

strengthen defense capabilities, demand demanding conditions such as aircraft, related to defense is rapidly expanding rockets, and artificial satellites

Illustrative sales and defense budget for aerospace & defense-related demand

Next, I would like to explain the expansion of the aerospace and defense market. In Japan, this market is expected to grow significantly. Under the Ministry of Defense's policy to strengthen defense capabilities, defense-related budgets have increased sharply since 2023, and our sales of defense-related products have expanded accordingly.

For fiscal 2025, we expect sales of our defense-related products to be double those of fiscal 2022, and we anticipate maintaining this high level going forward. In the aerospace sector, we have been supplying transformers and coils since the early days of Japan's space development. Leveraging the high reliability we have built over the years, we continue to meet the stringent requirements of aircraft, rockets, and satellites, supporting the aerospace industry.

We will continue to contribute to this growing market with advanced technology and proven reliability.