Presentation Materials on Results for the Second Quarter of the Fiscal Year Ending March 2027 (April–September 2026) | KOKUSAI ELECTRIC CORPORATION (6525) timely disclosure

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

Year-on-year change in revenue (six months ended September 2026, %)

Wording

Conditional

How definitive the wording is.

Contents of this document

Results presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥1,640 100 million+40.0%

Operating profit¥368 100 million+62.1%

Ordinary income¥368 100 million+66.2%

Net income¥259 100 million+66.5%

Gross Profit Margin41.8%

Operating profit margin22.4%

Selling, general and administrative expenses¥4.7 billion decrease (year on year; factors affecting adjusted operating profit)

Results for the three months of the current quarter

Revenue

¥886 100 million+35.5%

Operating profit

¥209 100 million+60.8%

Profit before tax

¥211 100 million+64.3%

Profit for the period

¥143 100 million+63.3%

Full-year earnings forecast

Revenue

¥3,400 100 million

Gross profit

¥1,462 100 million

Adjusted operating profit

¥860 100 million

Operating profit

¥794 100 million

Profit before tax

¥783 100 million

Profit for the period

¥555 100 million

Dividend per share

65 Yen

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Progressing in line with the full-year earnings forecast revised at the time of the first-quarter results

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Revenue

Equipment for global markets386

Equipment for China's domestic market-19

Services101

Adjusted operating profit

Increase in sales, etc.198

Decline in gross margin-6

Selling, general and administrative expenses-47

Other (including adjustments)0

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

2026 outlook for the overall semiconductor device market+25% or more, slightly above $140 billion
2026 outlook for the equipment market for NANDAround +25%
2026 outlook for the equipment market for DRAMAround +40%
2026 outlook for the Logic/Foundry and other marketsAround +20%
2027 outlook for the WFE market+30% or more, approximately $190 billion

New initiatives

Use the 3 existing sites and gradually expand operating hours, staffing and production space in line with demand
Expand production space at the Tonami facility
Conduct joint research with Yokohama National University on the wafer-bonding mechanism of self-activated material thin films

Key KPIsA metric the company considers important as a management benchmark.

Service revenue¥344 100 million
Equipment revenue¥1,297 100 million
Common Equity Ratio60.8 %
Net cash¥252 100 million
Free cash flow¥216 100 million

Medium-term management plan targets

Target achievement timingThrough the fiscal year ending March 2029

RevenueAt least ¥330 billion

Equipment business revenue ratioApproximately 80%

Service business revenue ratioApproximately 20%

Adjusted operating marginAt least 30%

R&D expenses as a percentage of revenueAt least 6%

ROE25% or higher

ROICAt least 23%

Comparison with actual resultsRevenue is expected to reach the target in the fiscal year ending March 2027, two years ahead of schedule. The company aims to achieve the adjusted operating profit margin target in the fiscal year ending March 2028.

Financial targets

ROE

Target25% or higher

ROIC

TargetAt least 23%

Equity ratio

Actual results60.8%

Market Size / Share

Overall semiconductor device market in 2026Slightly above $140 billion
WFE market in 2027Approximately $190 billion
Revenue share from worldwide customers65% (second quarter)
Revenue ratio from local Chinese customers35% (second quarter)

Capital expenditures

108 Billion yen six months ended the second quarter

Annual Dividend

Annual¥65

Interim¥32

End of period¥33

Payout ratio

Adjusted net income basis25.2%

Acquisition of treasury shares

The company recorded ¥9.9 billion in financing cash outflows due to the repurchase of treasury shares. The repurchase amount, number of shares and period are Not disclosed.

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥1,640 100 million (YoY +40.0%)
Operating profit	¥368 100 million (YoY +62.1%)
Ordinary income	¥368 100 million (YoY +66.2%)
Net income	¥259 100 million (YoY +66.5%)
Gross Profit Margin	41.8%
Operating profit margin	22.4%
Selling, general and administrative expenses	¥4.7 billion decrease (year on year; factors affecting adjusted operating profit)
Results for the three months of the current quarter	Revenue ¥886 100 million (YoY +35.5%) / Operating profit ¥209 100 million (YoY +60.8%) / Profit before tax ¥211 100 million (YoY +64.3%) / Profit for the period ¥143 100 million (YoY +63.3%)
Full-year earnings forecast	Revenue ¥3,400 100 million / Gross profit ¥1,462 100 million / Adjusted operating profit ¥860 100 million / Operating profit ¥794 100 million / Profit before tax ¥783 100 million / Profit for the period ¥555 100 million / Dividend per share 65 Yen
Self-assessment against the plan	Progressing in line with the full-year earnings forecast revised at the time of the first-quarter results
Breakdown of Factors Affecting the Change	Revenue Equipment for global markets 386 / Equipment for China's domestic market -19 / Services 101 / Adjusted operating profit Increase in sales, etc. 198 / Decline in gross margin -6 / Selling, general and administrative expenses -47 / Other (including adjustments) 0
Key KPIs	Service revenue ¥344 100 million, Equipment revenue ¥1,297 100 million, Common Equity Ratio 60.8 %, Net cash ¥252 100 million, Free cash flow ¥216 100 million
Assumptions Underlying the Business Outlook	2026 outlook for the overall semiconductor device market +25% or more, slightly above $140 billion, 2026 outlook for the equipment market for NAND Around +25%, 2026 outlook for the equipment market for DRAM Around +40%, 2026 outlook for the Logic/Foundry and other markets Around +20%, 2027 outlook for the WFE market +30% or more, approximately $190 billion
Medium-term management plan targets	Target achievement timing Through the fiscal year ending March 2029 / Revenue At least ¥330 billion / Equipment business revenue ratio Approximately 80% / Service business revenue ratio Approximately 20% / Adjusted operating margin At least 30% / R&D expenses as a percentage of revenue At least 6% / ROE 25% or higher / ROIC At least 23% / Comparison with actual results Revenue is expected to reach the target in the fiscal year ending March 2027, two years ahead of schedule. The company aims to achieve the adjusted operating profit margin target in the fiscal year ending March 2028.
Financial targets	ROE Target 25% or higher / Actual results Not disclosed / ROIC Target At least 23% / Actual results Not disclosed / Equity ratio Target Not disclosed / Actual results 60.8%
Annual Dividend	Annual ¥65 / Interim ¥32 / End of period ¥33
Payout ratio	25.2%
Acquisition of treasury shares	The company recorded ¥9.9 billion in financing cash outflows due to the repurchase of treasury shares. The repurchase amount, number of shares and period are Not disclosed.
Capital expenditures	108 Billion yen (six months ended the second quarter)
Market Size / Share	Overall semiconductor device market in 2026 Slightly above $140 billion, WFE market in 2027 Approximately $190 billion, 65% (second quarter), 35% (second quarter)
New initiatives	Use the 3 existing sites and gradually expand operating hours, staffing and production space in line with demand, Expand production space at the Tonami facility, Conduct joint research with Yokohama National University on the wafer-bonding mechanism of self-activated material thin films

Items this document does not state (8)

Progress against full-year forecastSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Sales of equipment and services, mainly for DRAM and Logic/Foundry, increased. For the six-month period, equipment sales to China-based customers declined as major manufacturers entered an investment transition period, but growth in equipment sales to customers worldwide and in service revenue contributed to higher revenue. Higher sales contributed to adjusted operating profit, while the gross profit margin declined due to changes in the product mix.

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