Financial Results Briefing for Fiscal Year Ending March 2026 (April 2025 – March 2026)

Overview of Consolidated Financial Results for Fiscal Year Ending March 2026

The semiconductor device market continues to see high levels of capital investment driven mainly by high-performance logic and DRAM for generative AI applications. NAND investments are mainly focused on generation upgrades, with demand recovery for consumer electronics, automotive, and industrial applications being gradual. Although sales of equipment for Chinese local DRAM manufacturers decreased due to the settling of previous year's concentrated sales period in China, revenue declined YoY, reflecting the impact. However, both sales and profits exceeded the revised projections announced in the 2Q earnings report, resulting in a better-than-expected performance.

Details of 2026 Fiscal Year Performance and Factors for Changes

Full-year revenue was 235.1 billion yen (down 1.6% YoY), gross profit was 96.8 billion yen (down 4.8%), adjusted operating income was 47.6 billion yen (down 17.6%), and adjusted net income was 34.1 billion yen (down 19.4%). In the 4Q, upgrades and modifications for DRAM accounted for increased service revenue, while sales of equipment to Chinese local markets decreased, leading to a 4% YoY decline in revenue. Adjusted operating income decreased by 17% YoY. The ratio of equipment sales increased to 60% for the full year, with service sales accounting for 40%. Regionally, sales to Taiwan and Korea increased, while sales to China declined. The US sales ratio was 3%, and China’s was 39%. The equity ratio increased to 61%, maintaining a net cash position. Operating cash flow exceeded investment cash flow, resulting in free cash flow of 31.8 billion yen.