Fiscal Year Ending December 2026 First Quarter Financial Results [Japanese GAAP] (Consolidated)

Performance Overview

In the first quarter of the fiscal year ending December 2026, the semiconductor market expanded in terms of amount due to a significant rise in memory prices, driven by AI-related demand on the quantity side, while demand from consumer, industrial, and automotive sectors remained sluggish, leading to continued polarization of the market. Demand for 300mm silicon wafers for AI and data centers performed well, but shipments of less than 200mm wafers were stagnated due to weak end-product demand. Under these conditions, net sales were 101,402 million yen (↓1.0% YoY), with an operating loss of 5,273 million yen and a net loss attributable to owners of the parent of 8,469 million yen.

Financial Condition Overview

Total assets at the end of the first-quarter consolidated accounting period were 1,142,822 million yen, an increase of 14,855 million yen from the end of the previous fiscal year. Liabilities totaled 502,385 million yen, an increase of 22,203 million yen, and net assets were 640,437 million yen, a decrease of 7,348 million yen from the end of the previous fiscal year. Growth in capital surplus and non-controlling interests contributed positively, while net losses for the quarter and dividends reduced retained earnings. The equity ratio stood at 49.8%.

Earnings Guidance Explanation

The consolidated earnings forecast for the second quarter (cumulative) of the fiscal year ending December 2026 is net sales of 213,400 million yen, an operating loss of 7,700 million yen, an ordinary loss of 14,400 million yen, a net loss attributable to owners of the parent of 15,400 million yen, and a quarterly net profit per share of △44.04 yen. Market conditions are strong for demand related to AI in 300mm silicon wafers, including advanced logic and DRAM, and demand for NAND is also expected to grow, but demand for wafers of less than 200mm remains sluggish.