Financial Results Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027 | KOA CORPORATION (6999) timely disclosure

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Direction

Improvement

Direction inferred from the company’s description.

Scale

¥ hundred million (year-on-year increase in first-half sales)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings 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¥436.3 hundred million+26.0%

Operating profit¥37.4 hundred million+186.4%

Ordinary income¥39.8 hundred million+146.2%

Net income¥58.2 hundred million+404.1%

Operating profit margin8.6 %

Selling, general and administrative expenses¥9,910 million

Results for the three months of the current quarter

Net Sales

¥227.5 hundred million+27.9%

Operating profit

¥28.9 hundred million+258.6%

Ordinary income

¥26.7 hundred million+145.3%

Net income

¥41.9 hundred million+470.2%

Full-year earnings forecast

Net Sales

¥915 hundred million

Operating profit

¥83.1 hundred million

Ordinary income

¥85.6 hundred million

Profit attributable to owners of the parent

¥96.6 hundred million

ROE

10.5 %

What the company explained in this material

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

First-half operating profit

Contribution margin from increased sales+¥4.16 billion

Foreign Exchange Movements+¥1.03 billion

Rising raw material prices-¥2.82 billion

Increase in fixed costs-¥350 million

Other+¥410 million

Full-year operating profit forecast

Contribution margin from increased sales+¥9.0 billion

Foreign Exchange Movements+¥1.4 billion

Rising raw material prices-¥5.5 billion

Increase in fixed costs-¥1.3 billion

Other+¥1 billion

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

Foreign exchange

1USD¥159.00 (second half), ¥159.52 (full year)

1EUR¥183.00 (second half), ¥183.77 (full year)

Raw material pricesThe assumption is that the impact of higher raw material prices will remain at the second-quarter level

New initiatives

Unplanned investment in ultra-small thick-film chip resistors
Expansion of production capacity for thin-film products at 2 domestic sites
Launch and production ramp-up at the new plant in Malaysia
End-of-life discontinuation of unprofitable products and reallocation of personnel to growth businesses
Board composition with independent outside directors in the majority

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

Second-quarter orders received¥286 hundred million
Order backlog¥232 hundred million
Bill-to-book ratio1.26 times
AI-related sales (FY2026 forecast)¥56 hundred million
Year on year against the same period last yearApproximately 1.6x
Impact of price revisions¥2.7 hundred million

Segment results

By product

Resistors¥21.308 billion, up 29.5% year on year

Safety¥369 million, up 15.0% year on year

IC¥447 million, up 21.5% year on year

Other¥626 million, down 3.8% year on year

Regional breakdown

Asia¥10.029 billion, up 43.8% year on year

Japan¥5.458 billion, up 21.8% year on year

North America¥3.367 billion, up 12.1% year on year

Europe¥3.895 billion, up 17.0% year on year

By application

Automotive¥10.771 billion, up 17.3% year on year

Industrial Machinery¥2.946 billion, up 35.6% year on year

Communications¥1.936 billion, up 44.4% year on year

Power supply¥1.305 billion, up 37.5% year on year

Home appliances¥980 million, up 26.9% year on year

Other¥4.812 billion, up 42.7% year on year

Medium-term management plan targets

FY2027 revenue¥80.0 billion

Operating income for fiscal 2027¥7.40 billion

Operating margin for fiscal 20279.3%

Foreign exchange assumptionsUSD 1 = ¥145

Comparison with actual resultsFY2026 full-year forecast: net sales of ¥91.5 billion and operating income of ¥8.31 billion

Financial targets

ROEFY2026 full-year forecast: 10.5%

Orders received and order backlog

Orders received

¥286 hundred million

Order backlog

¥232 hundred million

Number of employees

1,670 people

NotesFY ending March 2026, standalone. Changes during the period and hiring plan: Not disclosed

Capital expenditures

¥12 100 million first-half actual) / ¥4.1 billion (full-year forecast

Annual Dividend

¥78 per share

Interim¥31.5

End of period¥46.5

Payout ratio

A consolidated payout ratio of around 30% as a guideline

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥436.3 hundred million (YoY +26.0%)
Operating profit	¥37.4 hundred million (YoY +186.4%)
Ordinary income	¥39.8 hundred million (YoY +146.2%)
Net income	¥58.2 hundred million (YoY +404.1%)
Operating profit margin	8.6 %
Selling, general and administrative expenses	¥9,910 million
Results for the three months of the current quarter	Net Sales ¥227.5 hundred million (YoY +27.9%) / Operating profit ¥28.9 hundred million (YoY +258.6%) / Ordinary income ¥26.7 hundred million (YoY +145.3%) / Net income ¥41.9 hundred million (YoY +470.2%)
Full-year earnings forecast	Net Sales ¥915 hundred million / Operating profit ¥83.1 hundred million / Ordinary income ¥85.6 hundred million / Profit attributable to owners of the parent ¥96.6 hundred million / ROE 10.5 %
Segment results	By product Resistors ¥21.308 billion, up 29.5% year on year / Safety ¥369 million, up 15.0% year on year / IC ¥447 million, up 21.5% year on year / Other ¥626 million, down 3.8% year on year / Regional breakdown Asia ¥10.029 billion, up 43.8% year on year / Japan ¥5.458 billion, up 21.8% year on year / North America ¥3.367 billion, up 12.1% year on year / Europe ¥3.895 billion, up 17.0% year on year / By application Automotive ¥10.771 billion, up 17.3% year on year / Industrial Machinery ¥2.946 billion, up 35.6% year on year / Communications ¥1.936 billion, up 44.4% year on year / Power supply ¥1.305 billion, up 37.5% year on year / Home appliances ¥980 million, up 26.9% year on year / Other ¥4.812 billion, up 42.7% year on year
Breakdown of Factors Affecting the Change	First-half operating profit Contribution margin from increased sales +¥4.16 billion / Foreign Exchange Movements +¥1.03 billion / Rising raw material prices -¥2.82 billion / Increase in fixed costs -¥350 million / Other +¥410 million / Full-year operating profit forecast Contribution margin from increased sales +¥9.0 billion / Foreign Exchange Movements +¥1.4 billion / Rising raw material prices -¥5.5 billion / Increase in fixed costs -¥1.3 billion / Other +¥1 billion
Key KPIs	Second-quarter orders received ¥286 hundred million, Order backlog ¥232 hundred million, Bill-to-book ratio 1.26 times, AI-related sales (FY2026 forecast) ¥56 hundred million, Impact of price revisions ¥2.7 hundred million
Number of employees	1,670 people
Assumptions Underlying the Business Outlook	Foreign exchange 1USD ¥159.00 (second half), ¥159.52 (full year) / 1EUR ¥183.00 (second half), ¥183.77 (full year) / Raw material prices The assumption is that the impact of higher raw material prices will remain at the second-quarter level
Medium-term management plan targets	FY2027 revenue ¥80.0 billion / Operating income for fiscal 2027 ¥7.40 billion / Operating margin for fiscal 2027 9.3% / Foreign exchange assumptions USD 1 = ¥145 / Comparison with actual results FY2026 full-year forecast: net sales of ¥91.5 billion and operating income of ¥8.31 billion
Financial targets	ROE FY2026 full-year forecast: 10.5% / Equity ratio Not disclosed
Annual Dividend	¥78 per share
Payout ratio	A consolidated payout ratio of around 30% as a guideline
Capital expenditures	¥12 100 million (first-half actual) / ¥4.1 billion (full-year forecast)
Orders received and order backlog	Orders received ¥286 hundred million / Order backlog ¥232 hundred million
New initiatives	Unplanned investment in ultra-small thick-film chip resistors, Expansion of production capacity for thin-film products at 2 domestic sites, Launch and production ramp-up at the new plant in Malaysia, End-of-life discontinuation of unprofitable products and reallocation of personnel to growth businesses, Board composition with independent outside directors in the majority

Items this document does not state (9)

Gross Profit MarginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesMarket Size / ShareKey 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 increased in the automotive market in China, to distributors in Europe, the U.S. and China, for AI-related equipment in Asia, and for industrial equipment in Japan. Higher sales, the weaker yen and controlled fixed costs pushed up operating income, while higher raw material prices reduced earnings. Net income also includes special factors such as ¥3.10 billion in compensation related to the relocation of a plant.

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