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KOKUSAI ELECTRIC Financial Briefings for the First Quarter of the Fiscal Year Ending March 2027 ( April to June 2026 ) August 6 , 2026 KOKUSAI ELECTRIC CORPORATION KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved .
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation2026. All rights reserved. 2 Disclaimers This document and the information presented in this document were created for the purpose of disclosing corporate information, etc., and do not constitute a solicitation of an offer to subscribe for shares or other securities of the Company, either domestically or internationally. ◼ Forward-Looking Statements The Group’s business plans and forecasts stated in this document are prepared by the Group based on information available at the time of preparation and do not guarantee future results or performance. Actual business results and performance may differ significantly from the plans and forecasts due to changes in various internal and external factors. The Company does not undertake any obligation to update or revise any information contained in this document based on future events, except as required by applicable laws or stock exchange rules. The key risks that may significantly affect the Group’s business results, financial position and cash flows are stated in the annual securities report of the Company. ◼ Currency Risk The Group has a high proportion of overseas revenue. In addition, the valuation of the Group's assets and liabilities denominated in foreign currencies is affected by fluctuations in exchange rates. Most export sales of group products are denominated in yen, but some are denominated as foreign-currency sales or expenses and so may be affected by fluctuations in foreign exchange rates. ◼ Key Performance Indicators To understand the trends in business results to improve corporate value, the Group uses Adjusted Operating Profit and Adjusted (quarterly) Net Income as key performance indicators. The calculation methods are stated in the earnings report.Adjusted operating profit and adjusted quarterly net income may differ from management indicators of other companies that use the same or similar names and so may not be comparable. ◼ Accounting Standard The Company prepares its consolidated financial reports based in accordance with International Financial Reporting Standards (IFRS) since FY2021/3. ◼ Rounding Convention Except in certain cases, amounts presented in this document have been rounded to the nearest hundredth million, and accordingly the sum of the amounts may not be equal to the total of the individual items.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 1Q FY27/3 Consolidated Financial Summary
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 4 Summary of Consolidated Results for 1Q FY27/3 Consolidated Earnings and Dividend Forecast for FY27/3 and Outlook for the future *1 Earnings forecast for FY27/3 announced on May 13 along with the FY26/3 earnings results Highlight ◼ The semiconductor device market remained at high levels for generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications increasing QoQ. Investments for NAND are mainly focused on generation shift. The recovery in demand for consumer electronics, automobiles, and industrial equipment is moderate. ◼ In 1Q, both revenue and profit increased YoY driven by growth in equipment sales mainly for DRAM and Logic as well as service revenue. Both revenue and profit exceeded the forecasts announced at the full- year earnings release. ◼ The Semiconductor device manufacturers are expected to continue rapidly accelerating capital investment, mainly for high-performance devices, toward generation shift and capacity expansion investment. ◼ Due to the rapid expansion of capital investment of device manufacturers, equipment sales are expected to significantly exceed the previous forecast *1 and dividend forecast for the 2Q(interim period) and full year have been revised upward.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 5 In 1Q, both revenue and profit increased YoY and QoQ. Although the gross profit margin declined YoY due to changes in product mix, it increased QoQ. Due to increased sales revenue, the profit margins from adjusted operating profit and below exceeded both YOY and QoQ levels. (JPYB) FY26/3 FY27/3 1Q 2Q 3Q 4Q Full-year 1Q YoY QoQ Revenue 51.8 65.4 55.9 62.0 235.1 75.4 +45.6% +21.6% Gross profit 22.2 27.3 22.9 24.4 96.8 30.7 +38.1% +25.6% Gross profit margin 42.9% 41.7% 41.0% 39.4% 41.2% 40.7% -2.2pts +1.3pts Adjusted operating profit 10.9 14.4 11.3 11.0 47.6 17.4 +59.3% +58.4% Adjusted operating profit margin 21.1% 22.1% 20.2% 17.7% 20.2% 23.0% +1.9pts +5.3pts Adjusted net income 7.6 9.8 8.3 8.4 34.1 12.5 +65.1% +49.0% Adjusted net income margin 14.7% 15.0% 14.8% 13.6% 14.5% 16.6% +1.9pts +3.0pts Operating profit 9.7 13.0 9.8 9.3 41.8 15.9 +63.9% +70.9% Operating profit margin 18.8% 19.9% 17.6% 15.0% 17.8% 21.1% +2.3pts +6.1pts Income before income tax 9.3 12.8 9.4 9.2 40.7 15.7 +68.9% +71.8% Income before income tax margin 18.0% 19.6% 16.9% 14.8% 17.3% 20.9% +2.9pts +6.1pts Net income 6.8 8.8 7.3 7.3 30.1 11.6 +70.6% +58.8% Net income margin 13.1% 13.4% 13.0% 11.7% 12.8% 15.3% +2.2pts +3.6pts R&D expenses 3.9 4.8 4.2 5.4 18.3 4.5 +15.9% -17.8% Capital expenditures 2.3 5.2 4.0 5.3 16.9 4.8 +109.8% -9.5% Depreciation & amortization 3.4 3.5 3.6 3.7 14.3 3.9 +15.0% +5.2% Dividend per share(JPY) - 18 - 19 37 - - - Consolidated Results Summary
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 6 10.9 8.5 -2.0 0.0 1Q FY26/3 Gross Profit SG&A Others (including adjusted items) 1Q FY27/3 51.8 21.1 -2.6 5.1 1Q FY26/3 Equipment Non-China Equipment China Service 1Q FY27/3 Revenue Adjusted Operating Profit Sales, etc. increase +10.1 Gross profit margin decrease -1.6 Revenue increased 46% YoY, driven by equipment sales in Non-China and Service. Adjusted operating profit increased 59% YoY, largely due to increased sales. 75.4 17.4 NAND +1.3 DRAM +13.8 Logic/Foundry +6.2 Others -0.3 NAND -6.0 DRAM +1.4 Logic/Foundry +2.7 Others -0.8 1Q FY27/3 Results: Factors for Changes (JPYB) (JPYB) +21.1 +5.1 +8.5
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 7 27% 27% 12% 8% 12% 19% 27% 35% 41% 33% 21% 23% 19% 23% 26% 10% 5% 12% 9% 6% 23% 19% 22% 19% 23% Service Others Logic/Foundry DRAM NAND 51.8 ｃ7c FY26/3 FY27/3 (JPYB) 1Q 2Q 3Q 4Q 1Q Service 11.9 12.4 12.2 11.6 17.0 Equipment 39.9 53.0 43.7 50.5 58.4 75.4 65.4 55.9 62.0 In 1Q, NAND decreased 34% YoY, while DRAM increased 158% and Logic/Foundry increased 82%. QoQ, DRAM decreased 2%, while NAND increased 84% and Logic/Foundry increased 38%. Quarterly Revenues by Application (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 8 Service Others Logic/Foundry DRAM NAND Revenue in Non-China Revenue in China FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q Ratio of Non-China 62% 56% 69% 74% 75% 56.6 32.3 FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q Ratio of China 38% 44% 31% 26% 25% 19.4 28.7 36.7 38.4 17.5 46.0 16.0 18.8 Quarterly Revenues by Account*1 In 1Q, for Non-China revenue, both equipment sales for major applications and service sales increased YoY and QoQ. For China revenue, both equipment sales for Logic/Foundry and service sales increased YoY and QoQ. Due to growth in revenue from Non-China, the ratio of revenue from China fell to 25%. (JPYB) (JPYB) *1 Classification for non-China device manufacturers (manufacturers headquartered outside China) and China device manufacturers
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 9 11% 8% 11% 9% 8% 3% 3% 2% 5% 7% 20% 15% 18% 20% 19% 17% 21% 28% 31% 32% 2% 5% 7% 5% 5% 1% 0% 1% 1% 1% 45% 48% 33% 28% 28% China Europe and others Other Asia Korea Taiwan U.S.A Japan 7c FY26/3 FY27/3 (JPYB) 1Q 2Q 3Q 4Q 1Q For overseas 45.9 60.4 49.7 56.3 69.3 For Japan 5.9 5.0 6.2 5.8 6.2 In 1Q, sales to China decreased compared with YoY, while increasing QoQ. Outside of China in 1Q, sales in all regions increased both YoY and QoQ. China accounted for 28% of revenue, unchanged from the previous quarter. 51.8 65.4 55.9 62.0 75.4 Quarterly Revenues by Destination (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 10 198.9 208.3 212.8 219.3 224.9 32.7 33.2 29.4 30.3 31.3 49.6 47.4 54.0 60.2 64.3 60.3 54.4 55.8 49.9 50.4 Interest-bearing liabilities (Loans payable + Lease liability) Trade and other payables + Contract liabilities Others Equity 370.9 10.6 10.8 13.2 12.3 12.6 59.1 59.1 59.1 59.1 59.1 53.2 52.0 51.3 50.9 50.0 47.2 50.2 51.9 54.0 56.4 89.6 89.3 92.8 88.9 93.7 39.1 38.1 36.2 37.9 42.2 42.8 43.8 47.7 56.5 57.0 Cash and cash equivalents Trade and Other receivables Inventories Property, plant and equipment Intangible assets Goodwill Others 370.9 Assets Liabilities / Equity FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q 341.5341.5 343.3 343.3 (JPYB) (JPYB) 352.1 352.1359.7 359.7 FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q Total assets increased by JPY 11.2 bn from the end of the previous fiscal year. This is mainly due to an increase in inventories resulting from higher production, as well as an increase in trade and other receivables. Total equity increased by JPY 5.6 bn from the end of the previous fiscal year mainly due to an increase in retained earnings. Quarterly Balance Sheet
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 11 42.8 43.8 47.7 56.5 57.0 60.3 54.4 55.8 49.9 50.4 Cash and Cash Equivalents Interest-bearing Liabilities Total Asset / Total Equity / Equity Ratio Cash and Cash Equivalents / Interest-bearing Liabilities FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q (JPYB) (JPYB) FY26/3 FY27/3 1Q 2Q 3Q 4Q 1Q Although the equity ratio decreased by 0.4 percentage points from the end of the previous fiscal year, it remained in the 60% range. Net cash remained at JPY 6.6 bn, the same level as at the end of the previous fiscal year. Quarterly Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities 341.5 343.3 352.1 359.7 370.9 198.9 208.3 212.8 219.3 224.9 58.2% 60.7% 60.4% 61.0% 60.6% 40% 45% 50% 55% 60% 65% 70% 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 Total Asset Total Equity Equity Ratio
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 12 4.9 11.9 11.5 20.4 12.1 -2.9 -4.8 -4.3 -5.0 -5.5 -4.4 -6.4 -4.3 -6.4 -6.4 2.0 7.1 7.3 15.4 6.6 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Free cash flow (JPYB) FY26/3 FY27/3 (JPYB) 1Q 2Q 3Q 4Q 1Q CF from operating activities 4.9 11.9 11.5 20.4 12.1 CF from investing activities -2.9 -4.8 -4.3 -5.0 -5.5 CF from financing activities -4.4 -6.4 -4.3 -6.4 -6.4 Free CF 2.0 7.1 7.3 15.4 6.6 Cash and cash equivalents 42.8 43.8 47.7 56.5 57.0 Cash flows from operating activities exceeded cash flows from investing activities, resulting in free cash flow of JPY 6.6 bn. Cash outflow in financing activities amounted to JPY 6.4 bn mainly due to payment of dividends and share repurchases. Quarterly Cash Flows
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 13 2.0 2.0 2.8 3.0 2.0 0.3 3.2 1.3 2.3 2.9 3.4 3.5 3.6 3.7 3.9 Large-scale capital investment (new factory construction, demonstration room expansion, etc.) Regular capital investment Depreciation expense 3.9 4.8 4.2 5.4 4.5 7.4% 7.4% 7.4% 8.8% 5.9% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 0 10 20 30 40 50 60 R&D expenses R&D expenses ratio R&D Expenses Capital Expenditure / Depreciation Expense FY26/3 FY27/3 (JPYB) 1Q 2Q 3Q 4Q 1Q R&D expenses 3.9 4.8 4.2 5.4 4.5 Ratio to revenue 7.4% 7.4% 7.4% 8.8% 5.9% FY26/3 FY27/3 (JPYB) 1Q 2Q 3Q 4Q 1Q Capex total 2.3 5.2 4.0 5.3 4.8 Ratio to revenue 4.4% 8.0% 7.2% 8.6% 6.4% Depreciation 3.4 3.5 3.6 3.7 3.9 Ratio to revenue 6.6% 5.3% 6.5% 6.0% 5.2% (JPYB) (JPYB) In 1Q, R&D expenses, capital expenditures, and depreciation expenses were as planned. R&D expenses ratio decreased to 5.9% due to an increase in revenue. Quarterly R&D Expenses / Capital Expenditure / Depreciation Expense
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. Consolidated Earnings and Dividend Forecast for FY27/3
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 15 ◼ The semiconductor device market remained at high levels for generation shift and capacity expansion investment, mainly in high-performance Logic and DRAM for generative AI applications increasing QoQ. Investments for NAND are mainly focused on generation shift. The recovery in demand for consumer electronics, automobiles, and industrial equipment is moderate. ◼ In 1Q, both revenue and profit increased YoY driven by growth in equipment sales mainly for DRAM and Logic as well as service revenue. Both revenue and profit exceeded the forecasts announced at the full- year earnings release. Summary of Consolidated Results for 1Q FY27/3 Consolidated Earnings and Dividend Forecast for FY27/3 and Outlook for the future ◼ The Semiconductor device manufacturers are expected to continue rapidly accelerating capital investment, mainly for high-performance devices, toward generation shift and capacity expansion investment. ◼ Due to the rapid expansion of capital investment of device manufacturers, equipment sales are expected to significantly exceed the previous forecast *1 and dividend forecast for the 2Q(interim period) and full year have been revised upward. Highlight *1 Earnings forecast for FY27/3 announced on May 13 along with the FY26/3 earnings results
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 16 For the full-year, revenue was revised upward by 21%, up 45% YoY , adjusted operating profit was revised upward by 42%, up 81% YoY and adjusted net income for the period was revised upward by 40%, up 76% YoY. Annual dividend forecast was revised upward from 47 yen to 65 yen, an increase of 18 yen. (JPYB) FY26/3 FY27/3 Achievement Previous forecast This time forecast 1H 2H Full-year 1H 2H Full-year 1H YoY 2H YoY Full-year YoY Compared with previous forecast Revenue 117.2 117.9 235.1 152.3 127.7 280.0 161.0 +37.4% 179.0 +51.8% 340.0 +44. 6% +21.4% Gross profit 49.5 47.3 96.8 64.1 53.5 117.6 68.4 +38.2% 77.8 +64.5% 146.2 +51.0% +24.3% Gross profit margin 42.2% 40.1% 41.2% 42.1% 41.9% 42.0% 42.4% +0.2pts 43.5% +3.4pts 43.0% +1.8pts +1.0pts Adjusted operating profit 25.3 22.3 47.6 35.5 25.0 60.5 39.2 +54.7% 46.7 +109.4% 86.0 +80.7% +42.1% Adjusted operating profit margin 21.6% 18.9% 20.2% 23.4% 19.5% 21.6% 24.4% +2.8pts 26.1% +7.2pts 25.3% +5.1pts +3.7pts Adjusted net income 17.4 16.7 34.1 25.0 17.9 42.9 27.8 +59.9% 32.2 +92.8% 60.0 +76.0% +39.9% Adjusted net income margin 14.8% 14.2% 14.5% 16.4% 14.0% 15.3% 17.3% +2.5pts 18.0% +3.8pts 17.7% +3.2pts +2.4pts Operating profit 22.7 19.1 41.8 32.5 22.0 54.5 35.6 +56.8% 43.8 +129.3% 79.4 +89.8% +45.7% Operating profit margin 19.4% 16.2% 17.8% 21.4% 17.2% 19.5% 22.1% +2.7pts 24.5% +8.3pts 23.4% +5.6pts +3.9pts Income before income tax 22.2 18.6 40.7 31.9 21.5 53.4 35.1 +58.4% 43.2 +132.2% 78.3 +92.2% +46.6% Income before income tax margin 18.9% 15.8% 17.3% 21.0% 16.8% 19.1% 21.8% +2.9pts 24.1% +8.3pts 23.0% +5.7pts +3.9pts Net income 15.6 14.5 30.1 22.9 15.9 38.8 25.4 +63.3% 30.1 +108.3% 55.5 +84.4% +43.0% Net income margin 13.3% 12.3% 12.8% 15.1% 12.4% 13.9% 15.8% +2.5pts 16.8% +4.5pts 16.2% +3.4pts +2.3pts Dividend per share(JPY) 18 19 37 23 24 47 32 +14 33 +14 65 +28 +18 Dividends payout ratio － － 25.3% － － 25.6% － － － － 25.2% -0.1pts -0.4pts FY27/3 Earnings Forecast / Dividend Forecast (With Changes)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 17 FY27/3 Previous forecast Equipment Non-China Equipment China Service FY27/3 This time forecast 28.6 -3.1 60.5 0.0 FY27/3 Previous forecast Gross profit SG&A Others (including adjusted items) FY27/3 This time forecast Revenue is expected to increase by 21% compared to the previous forecast, reflecting a significant upside in equipment sales. Adjusted operating profit is raised by 42% on the expectation of increased sales and a higher gross profit margin. Revenue Adjusted Operating Profit 340.0 86.0 NAND +11.9 DRAM +1.6 Logic/Foundry +8.8 Others -0.8 (JPYB) (JPYB) NAND +6.6 DRAM +14.8 Logic/Foundry +4.3 Others +2.7 Sales, etc. increase +25.2 Gross profit margin increase +3.4 FY27/3 Earnings Forecast: Factors for Change from the Previous Forecast 280.0 +21.5 +28.5 +10.0 +28.6
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 18 49.4 -11.0 0.0 47.6 FY26/3 Gross profit SG&A Others (including adjusted items) FY27/3 This time forecast 235.1 67.8 26.6 10.6 FY26/3 Equipment Non-China Equipment China Service FY27/3 This time forecast Revenue Adjusted Operating Profit 340.0 86.0 (JPYB) (JPYB) Sales, etc. increase +43.3 Gross profit margin increase +6.1 NAND +22.5 DRAM +22.8 Logic/Foundry +23.1 Others -0.6 NAND -1.5 DRAM +21.5 Logic/Foundry +9.6 Others -3.1 FY27/3 Earnings Forecast: Factors for YoY Change (With Changes) +67.8 +26.6 +10.6 +49.4 Revenue is expected to increase 45% YoY, driven by higher Non-China equipment sales, China equipment sales, and service sales. Adjusted operating profit is expected to increase 81% due to higher sales and an increase in gross profit margin.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 19 Service Others Logic/Foundry DRAM NAND Expected Non-China revenue was revised upward by 14% from the previous forecast, mainly due to growing demand for NAND and Logic/Foundry equipment, and is projected to increase by 49% YoY . Expected China revenue was revised upward by 39% from the previous forecast, mainly due to growing demand for DRAM equipment, and is projected to increase by 37% YoY . Revenue in Non-China Revenue in China 70.9 79.9 174.8 101.0 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 previous forecast FY27/3 this time forecast Ratio of China 29% 44% 44% 35% 29% 33% FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 previous forecast FY27/3 this time forecast Ratio of Non-China 71% 56% 56% 65% 71% 67% 134.0 105.0 (JPYB) (JPYB) 153.5 81.6 FY27/3 Earnings Forecast: Revenues by Account*1 (With Changes) *1 Classification for non-China device manufacturers (manufacturers headquartered outside China) and China device manufacturers
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 20 33% 11% 10% 18% 16% 19% 16% 30% 36% 31% 36% 34% 20% 24% 24% 21% 25% 24% 11% 13% 11% 9% 5% 5% 20% 21% 20% 20% 17% 17% Service Others Logic/Foundry DRAM NAND Sales for NAND, DRAM, Logic/Foundry and the services are expected to increased by 49%, 61%, 65% and 22% YoY, respectively. The service revenue ratio is expected to be 17%. (JPYB) FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 previous forecast FY27/3 this time forecast Service 48.5 38.8 47.2 48.0 48.6 58.6 Equipment 197.2 142.0 191.6 187.1 231.4 281.4 (JPYB) 245.7 180.8 238.9 235.1 280.0 340.0 FY27/3 Earnings Forecast: Revenues by Application (With Changes)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 21 13% 12% 8% 10% 9% 8% 6% 6% 6% 3% 8% 6% 17% 10% 18% 18% 20% 20% 23% 21% 16% 24% 24% 22%6% 4% 4% 5% 4% 5% 2% 1% 1% 1% 2% 1% 34% 46% 47% 39% 34% 38% China Europe and others Other Asia Korea Taiwan U.S.A Japan 180.8 245.7 238.9 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 previous forecast FY27/3 this time forecast For overseas 87% 88% 92% 90% 91% 92% For Japan 13% 12% 8% 10% 9% 8% 235.1 (JPYB) 280.0 340.0 FY27/3 Earnings Forecast: Revenues by Destination (With Changes) Revenue in all regions is expected to increase YoY. The ratio of revenue in China is expected to be 38%.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 22 Others Batch CVD compatible deposition equipment +Batch Oxidation compatible deposition equipment Batch ALD*2 compatible deposition equipment Single-wafer treatment equipment FY27/3 Earnings Forecast: Revenues by Equipment (With Changes) The ratio of high value-added equipment*1 for the FY27/3 is expected to be 68%. With future device generational changes, the introduction of the Batch ALD *2 compatible deposition equipment and single-wafer treatment equipment is expected to accelerate. *1 The ratio of high value-added product is the combined ratio of batch ALD -compatible equipment and single-wafer treatment equipment. *2 We refer to a technique for thin-film deposition at an atomic layer level involving a process of cyclical supply of multiple gases as “ALD”. FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 previous forecast FY27/3 this time forecast Ratio of high value-added equipment*1 67% 54% 64% 73% 73% 68%
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. Future Outlook
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 24 ■Demand related to AI continuing strongly drive capital investment by device manufacturers. Investments in high-performance devices, centered on DRAM, have expanded significantly. ■Demand for non-AI-related industrial equipment is in a recovery phase. ■In the medium to long term, significant growth is expected due to a recovery in demand for electronic equipment, expansion of data centers, and investment in green transformation, etc. Outlook for Semiconductor Device Market ■As demand related to AI expands, demand for equipment for high-performance devices increase further. ■Demand for equipment for mature nodes is expected to recover in the future. ■With the expansion of the semiconductor device market, the semiconductor manufacturing equipment market is also expected to see significant growth over the medium to long term. Wafer Fab Equipment (WFE) Market Demand related to AI continues to strongly drive device manufacturers’ capital investment, and demand for equipment for high-performance devices is expected to increase further. ⚫ The entire market: More than+25% ⚫ Equipment for NAND market: Around+25% ⚫ Equipment for DRAM market: Around+40% ⚫ Logic/Foundry + Other markets: Around+20% Market Outlook for CY2026(compared with CY2025) ⚫ DRAM and NAND have seen a sharp increase in demand and rising prices due to the expansion of the AI market ⚫ DRAM market growing to a size comparable to that of Logic/Foundry ⚫ Logic/Foundry continues to grow in demand, especially for advanced applications Market Trends in CY2026 Business Environment
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 25 Update on the Mid-term Objectives In light of the significant changes in the market environment since the formulation of the Medium -Term Management Plan in 2024, we have revised the target dates for achieving our mid-term objectives and the revenue composition ratio by application on May 13, 2026. Due to rapid growth in demand, revenue is projected to reach the target two years ahead of schedule in FY27/3. We aim to achieve the adjusted operating profit margin target in FY28/3. Initial Mid-term Objectives*1 Revised Mid-term Objectives Time of achievement Global Market Size for WFE > $120 Bil ~FY2029/3 Revenue > 330.0 Bil > 330.0 Bil Equipment (% Revenue) ~75% ~80% Service (% Revenue) ~25% ~20% Adjusted OP*2 Margin >30% >30% R&D(% Revenue) >6% >6% ROE (Reference) >25% >25% ROIC (Reference) >23% >23% composition ratio by application*3 About 25% About 20% About 25% About 40% About 50% About 40% Initially Objectives Revised Objectives Service Logic/Foundry +Others DRAM NAND *1: Regarding the Mid-Term Objectives, the landing prospects for the Mid -to-Long Term Objectives at the current point in time ar e described based on the current environment and progress *2: Adjusted Operating margin is calculated as adjusted operating margin / revenue Adjusted Operating Profit is calculated as operating profit – other income + other expenses + purchase price allocation amo rtization + business restructuring expenses + stock -based compensation (except for performance-linked stock compensation). *3: Percentage of equipment revenue
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 26 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 Long-term The operating rate for FY27/3 is expected to average 70–80% in 1H and over 80% in 2H and is expected to rise further in FY28/3.To keep pace with the rapid changes in the WFE market, we will continue to strengthen our production capacity and maintain a production system capable of fully meeting demand. Toyama Factory Cheonan Factory Tonami Factory ( Adjacent land has already been acquired to increase production capacity in April 2026) Expanding Production Capacity Production Sites (Japan and South Korea) Sufficient capacity to meet WFE market growth Production System
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 27 Due to the upward revision of FY27/3 earnings forecast, the annual dividend forecast will be increased by 18 yen, from 47 yen (dividend payout ratio of 25.6% based on adjusted net income) to 65 yen (25.2%). Based on FY26/3 earnings, the share buyback was completed on July 27. The retirement is scheduled for August 31. Shareholder return policy ■ Dividend distributions of retained earnings with target a consolidated dividend payout ratio of 20% to 30% ■ Once net cash*1 becomes positive, allocate an amount equivalent to approx. 70% of free cash flow*2 after the redemption of interest-bearing debt to dividends and share buybacks. In principle, treasury shares acquired are retired*3. ■ The total payout ratio combining dividends and share buybacks is expected to be approximately 50% upon the achievement of the mid-term objectives. 47yen 65 yen FY27/3 Previous forecast Interim dividend 23yen Year-end dividend 24yen *1:Net cash = Cash and Cash Equivalents - interest-bearing debt *2：Defined as the sum of net cash from operating activities and net cash from (used in) investing activities, minus redemption o f interest-bearing debt *3:However, it shall be held up to a maximum of 1% of the total number of issued shares expected to be utilized under stock compensation plans, etc. *4:After the retired of treasury shares. However, this does not include stock -based compensation grants, etc. made on or after August 1st. Share buyback and Retirement ■Repurchase period : From May 14, 2026 to July 27, 2026 ■Total number of shares repurchased : 565,900 shares ■Total amount of repurchase price : 5,299,480,480 yen ■Repurchase method : Market purchase on the Tokyo Stock Exchange, Inc. ■Total number of shared to be retired : 565,900 shares ■Scheduled date of retirement : August 31, 2026 (reference) Annual dividends Measures based on shareholder return policy FY27/3 This time forecast Interim dividend 32yen Year-end dividend 33yen Total number of issued shares Number of own shares As of July 31, 2026 238,115,614 shares 4,731,768 shares As of August 31, 2026*4 237,549,714 shares 4,165,868 shares
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 28 ＞600 Layers The opportunities for application of high-value-added products will expand as semiconductor device structures become multilayered, more miniaturized, complex and three-dimensional. We aim to achieve sustained business expansion our business at a rate that exceeds market growth by leveraging our technological advantages. 2024 2025 2026 2027 2028 2029 2030 2031 Advanced 2D DRAM Fin-FET GAA CFET D1a/D1b D1c D1d VCT DRAM ＞400 Layers 2nm 1.4～0.7nm ＞200 Layers 3D Stacked DRAM Logic DRAM NAND ◼ Opportunities for application of high-value-added products are expanding against the backdrop of increased investment in high-performance DRAM and Logic/Foundry driven by AI demand. ◼ For NAND, demand for high-value-added products is increase due to continued investment in generation shift. Expected to also expand production scale. ◼ Leveraging our competitive deposition technology in the advanced packaging field, we have secured a new POR. ◼ Further expansion of the service business is expected as the installed base grows in line with increased unit shipments. Our Catalyst ◼ Further demand expansion due to generational shift towards NAND more than 600 layers, VCT DRAM, 3D Stacked DRAM, and Logic CFET. ◼ Expansion of the advanced packaging field and development of new demand. Short-term ~ Mid-term Business Environment ◼ NAND • In Non-China, investments continues for the generation shift (200 ~ 400 layers). Investment to expand production capacity is expected to resume. • Investment in China is expected to resume in the 2H of 2026 after the transitional period. ◼ DRAM • As AI demand expands, investments for the generation shift and capacity expansion continues. ◼ Logic/Foundry • Investments for the generation shift and capacity expansion continues. • In China, investment by major manufacturers continues. ◼ NAND • In Non-China, investments continues for the generation shift (400 ~ 600 layers), investment to expand production scale resumes due to AI demand. • Investment in China is expected to focus on generation shift. ◼ DRAM • Investments for generation shift and capacity expansion for D1d ~ VCT DRAM are expected to become active. ◼ Logic/Foundry • Investments for generation shift and capacity expansion for GAA 2nm and 1.4nm are expected to become active. Expand investment in 3nm Fin-FET. • Expansion of the advanced packaging market. ◼ NAND • In Non-China, Investments for generation shift for 600 layers are expected to become active. Continue investment to expand production scale. ◼ DRAM • Investments for generation shift and capacity expansion for VCT, 3D Stacked DRAM are expected to become active. ◼ Logic/Foundry • Investments for generation shift and capacity expansion for CFET are expected to become active. • Further expansion of the advanced packaging market. Device Roadmap Short-term Mid-term Long-term Long-term Summary
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. Appendix
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 30 ◼ Awarded “Top 10 Customer Service” for 29 consecutive years in the Techinsights Global Semiconductor Supplier Awards.(May. 2026) ◼ Invited talk and poster presentation at ALD/ALE2026.(Jun. 2026) ◼ Decided to newly acquire a property adjacent to Tonami Manufacturing Center. (Apr. 2026) ◼ Participating in “MEMS Engineer FORUM 2026”.(Apr. 2026) ◼ In FY26/3, shipments of vertical equipment surpass 20,000 units.(Apr. 2026) Awarded “Top 10 Customer Service” for 29 consecutive years in the Techinsights Global Semiconductor Supplier Awards ◼ Selected as a constituent of the ESG Investment Indices FTSE 4 Good Index Series, FTSE JPX Blossom Japan Index and FTSE JPX Blossom Japan Sector Relative Index.(Jun. 2026) ◼ Outdoor Environmental Classes held at preschools.(May 2026) ◼ Awarded highest rating in CDP’s Supplier Engagement Assessment 2025 for the second consecutive year.(May 2026) ◼ Recognized with “Prime” status in ISS STOXX ESG Corporate Rating for the first time.(May 2026) ◼ Sponsorship of “2026 Tonami Tulip Fair” in Tonami City, Toyama Prefecture.(Apr. 2026) Awarded Highest Rating in CDP’s Supplier Engagement Assessment 2025 for the Second Consecutive Year Key Activities for 1Q FY27/3 Business Activities ESG Initiatives
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 31 Service Others Logic/Foundry DRAM NAND Revenue in Non-China Revenue in China 48.2 33.4 69.0 84.4 (JPYB) FY26/3 1H FY26/3 2H FY27/3 1H previous forecast FY27/3 2H previous forecast FY27/3 1H this time forecast FY27/3 2H this time forecast Ratio of China 41% 28% 32% 25% 30% 35% FY27/3 Earnings Forecast: Revenues by Account*1 and 1H/2H *1 Classification for non-China device manufacturers (manufacturers headquartered outside China) and China device manufacturers （JPYB) FY26/3 1H FY26/3 2H FY27/3 1H previous forecast FY27/3 2H previous forecast FY27/3 1H this time forecast FY27/3 2H this time forecast Ratio of Non-China 59% 72% 68% 75% 70% 65%
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 32 (JPYM) FY26/3 FY27/3 1Q 2Q 3Q 4Q Full-year 1Q Revenue 51,789 65,416 55,852 62,021 235,079 75,414 Gross profit 22,220 27,277 22,883 24,430 96,810 30,678 Gross profit margin 42.9% 41.7% 41.0% 39.4% 41.2% 40.7% Adjusted operating profit 10,902 14,439 11,290 10,965 47,596 17,371 Adjusted operating profit margin 21.1% 22.1% 20.2% 17.7% 20.2% 23.0% Adjusted net income 7,598 9,785 8,292 8,420 34,095 12,548 Adjusted net income margin 14.7% 15.0% 14.8% 13.6% 14.5% 16.6% Operating profit 9,717 12,993 9,809 9,317 41,836 15,926 Operating profit margin 18.8% 19.9% 17.6% 15.0% 17.8% 21.1% Income before income tax 9,322 12,840 9,412 9,165 40,739 15,742 Income before income tax margin 18.0% 19.6% 16.9% 14.8% 17.3% 20.9% Net income 6,776 8,782 7,264 7,277 30,099 11,558 Net income margin 13.1% 13.4% 13.0% 11.7% 12.8% 15.3% R&D expenses 3,851 4,821 4,159 5,427 18,258 4,462 Capital expenditures 2,302 5,208 4,015 5,337 16,862 4,830 Depreciation and amortization 3,417 3,498 3,629 3,734 14,279 3,931 Income Statement, R&D Expenses, Capex and D&A expenses
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 33 FY26/3 FY27/3 (JPYM) 1Q 2Q 3Q 4Q Full-year 1Q Operating profit 9,717 12,993 9,809 9,317 41,836 15,926 Other income -304 -83 -70 -51 -508 -56 Other expenses 18 53 74 223 368 21 (Adjustments) Purchase price allocation amortization*1 1,476 1,476 1,477 1,476 5,905 1,476 Business restructuring expenses - - - - - 4 Stock-based compensation (except for performance-linked stock compensation) -5 - - - -5 - Total adjustments 1,471 1,476 1,477 1,476 5,900 1,480 Adjusted Operating Profit 10,902 14,439 11,290 10,965 47,596 17,371 Reconciliation of Adjusted Items Net income 6,776 8,782 7,264 7,277 30,099 11,558 Other income -304 -83 -70 -51 -508 -56 Other expenses 18 53 74 223 368 21 (Adjustments) Purchase price allocation amortization*1 1,476 1,476 1,477 1,476 5,905 1,476 Business restructuring expenses - - - - - 4 Stock-based compensation (except for performance-linked stock compensation) -5 - - - -5 - Tax adjustment to total adjustments -363 -443 -453 -505 -1,764 -455 Adjusted Net Income 7,598 9,785 8,292 8,420 34,095 12,548 *1: The book value of technology-related assets as of the end of FY26/3 was JPY 5.649 bn, with a remaining amortization period of two years The book value of customer-related assets was JPY 38.740 bn at the end of FY26/3, with a remaining amortization period of 12 years
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 34 Balance Sheet and Key Financial Indicators FY27/3 End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q Assets Current Cash and cash equivalents 42,766 43,806 47,728 56,543 56,974 Assets Trade and other receivables 39,087 38,066 36,152 37,941 42,223 Inventories 89,626 89,326 92,758 88,890 93,702 Other currents assets 2,038 2,065 2,905 2,465 2,467 Total Current assets 173,517 173,263 179,543 185,839 195,366 Non- Property, plant and equipment 47,220 50,214 51,916 53,975 56,370 current Goodwill 59,065 59,065 59,065 59,065 59,065 Assets Intangible assets 53,182 52,013 51,321 50,900 49,978 Other non-currents assets 8,524 8,765 10,262 9,879 10,110 Total non-current assets 167,991 170,057 172,564 173,819 175,523 341,508 343,320 352,107 359,658 370,889 (JPYM） Total Assets FY26/3 FY27/3 End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q Liabilities Current Loans payble + Lease liability 11,956 12,044 12,161 12,373 12,462 Liabilities Trade and other payables 24,574 25,658 26,361 25,354 31,476 Contract liabilities 25,069 21,704 27,666 34,840 32,844 Others 17,991 18,687 15,263 18,162 19,639 Total current liabilities 79,590 78,093 81,451 90,729 96,421 Non- Loans payble + Lease liability 48,339 42,365 43,681 37,492 37,927 current Others 14,663 14,553 14,131 12,167 11,641 Liabilities Total non-current liabilities 63,002 56,918 57,812 49,659 49,568 142,592 135,011 139,263 140,388 145,989 198,916 208,309 212,844 219,270 224,900 Total Liabilities and Equity 341,508 343,320 352,107 359,658 370,889 (JPYM) Total Liabilities Total Equity FY26/3 FY27/3 End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q 58.2% 60.7% 60.4% 61.0% 60.6% 0.3 0.3 0.3 0.2 0.2 -17,529 -10,603 -8,114 6,678 6,585 FY26/3 Debt equity ratio Net cash (JPYM) Equity ratio
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 35 Cash Flow Statement (JPY mn) 1Q 2Q 3Q 4Q Full Year 1Q CF from operating activites 4,923 11,936 11,538 20,404 48,801 12,127 CF from investing activities - 2,942 - 4,789 - 4,263 - 4,960 - 16,954 - 5,520 Free CF 1,981 7,147 7,275 15,444 31,847 6,607 CF from financing activites - 4,423 - 6,373 - 4,339 - 6,379 - 21,514 - 6,446 Cash and cash equivalents at beginning balance 44,755 42,766 43,806 47,728 44,755 56,543 Cash and cash equivalents at end of the quarter 42,766 43,806 47,728 56,543 56,543 56,974 FY27/3FY26/3
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 36 160.9 187.4 196.2 219.3 42.4 35.6 39.1 30.371.1 59.4 46.1 60.2 99.2 93.0 60.2 49.9 Interest-bearing liabilities (Loans payable + Lease liability) Trade and other payables + Contract liabilities Others Equity 8.9 11.7 10.6 12.3 59.1 59.1 59.1 59.1 63.0 57.0 54.1 50.9 18.8 35.4 46.9 54.0 67.2 87.7 83.2 88.9 50.6 32.0 42.8 37.9 106.1 92.6 44.8 56.5 Cash and cash equivalents Trade and Other receivables Inventories Property, plant and equipment Intangible assets Goodwill Others Balance Sheet (Announced on May 13th) Assets Liabilities・Equity 373.5 373.5 375.4375.4 Total assets increased by JPY 18.1 bn from the end of the previous fiscal year. This is mainly due to an increase in cash and cash equivalents, and an increase in property, plant and equipment resulting from investments associated with the establishment of a demo center in the U.S. Total equity increased by JPY 23.1 bn from the end of the previous fiscal year mainly due to an increase in retained earnings. End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 341.5 341.5 359.7 359.7 (JPYB) (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 37 106.1 92.6 44.8 56.5 99.2 93.0 60.2 49.9 Cash and Cash Equivalents Interest-bearing Liabilities 373.5 375.4 341.5 359.7 160.9 187.4 196.2 219.343.1% 49.9% 57.4% 61.0% 0% 10% 20% 30% 40% 50% 60% 70% 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 Total Asset Total Equity Equity Ratio Equity Ratio / Cash and Cash Equivalents / Interest-bearing Liabilities (Announced on May 13th) The equity ratio rose to 61% at the end of FY26/3. Net cash at the end of the fiscal year was JPY 6.6 bn as net debt was eliminated due to an increase in cash and cash equivalents and a decrease in interest-bearing liabilities resulting from loan repayment. Total Asset / Total Equity / Equity Ratio Cash and Cash Equivalents / Interest-bearing Liabilities End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 (JPYB) (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 38 30.0 2.9 38.5 48.8 -7.8 -12.0 -27.7 -17.0 -25.1 -6.3 -58.1 -21.5 22.2 -9.0 10.8 31.8 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Free cash flow Cash flows from operating activities exceeded cash flows from investing activities, resulting in free cash flow of JPY 31.8 bn. Cash outflow in financing activities amounted to JPY 21.5 bn mainly due to repayment of borrowings and payment of dividends. Cash Flows (Announced on May 13th) (JPYB) FY23/3 FY24/3 FY25/3 FY26/3 CF from operating activities 30.0 2.9 38.5 48.8 CF from investing activities -7.8 -12.0 -27.7 -17.0 CF from financing activities -25.1 -6.3 -58.1 -21.5 Free CF 22.2 -9.0 10.8 31.8 Cash and cash equivalents 106.1 92.6 44.8 56.5 (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 39 4.5 6.4 7.0 9.82.1 14.0 13.3 7.1 10.3 10.9 12.6 14.3 Large-scale capital investment (new factory construction, demonstration room expansion, etc.) Regular capital investment Depreciation expense R&D Expenses / Capital Expenditure / Depreciation Expense (Announced on May 13th) R&D Expenses Capital Expenditure / Depreciation Expense Continue to invest in R&D and capital equipment in line with our medium-term plan in anticipation of medium to long term demand expansion. R&D expenses increased by 20%, capital investments decreased by 20% YoY, and depreciation expenses increased by 10% YoY. 20.3 6.6 20.5 End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 End of FY23/3 End of FY24/3 End of FY25/3 End of FY26/3 12.4 12.7 15.6 18.3 5.1% 7.0% 6.5% 7.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 R&D expenses R&D expenses ratio (JPYB) 16.9 (JPYB)
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 40 Change of business category (Announced on May 13th) From FY27/3, we will change our business category. We will transfer “Upgrade modification“, "200 mm equipment" and “Used equipment“, which were previously categorized under the services business to the equipment business, making the disclosures more aligned with the WFE market. FY26/3 300mm Equipment Equipment Business 200mm Equipment Service Business Used Equipment Upgrade Modification Other Modification / Relocation Parts Maintenance / repairs, etc. FY27/3 Equipment Business Service Business
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 41 Market Share Trends (Announced on May 13th) US$1.9B RTP and Oxidation/Diffusion 49.2% 41.1% 41.3% 11.8% 10.7% 36.4% Company A Company D Company A Company B 6.4% Others 2023 2024 US$0.6B*5 US$0.8B*5 ～70%*5 ＞70%*5 2023 2024 US$0.2B*5US$0.1B*5 ～50%*5 ＞50%*5 Tube (Batch)*2 Deposition RTP and Oxidation/Diffusion Treatment US$2.8B Company C 3.2% 2025 US$0.1B*5 40～50%*5 2025 US$1.0B*5 >80%*5 Batch CVD compatible deposition equipment Batch Deposition Equipment Batch ALD*4 compatible deposition equipment Others Treatment Equipment Plasma Gate Modification Tools Batch ALD*4 compatible deposition equipment Market Size / KE Share Plasma Gate Modification Tools Market Size / KE Share Market Size*4 (CY25) Market Share Based on Gartner’s Categories*3 *1 We refer to a technique for thin-film deposition at an atomic layer level involving a process of cyclical supply of multiple gases as “ALD” *2 We define “Tube CVD” in Garner‘s WFE segmentation as “Tube (Batch)” in this chart (Calculations performed b y KOKUSAI ELECTRIC CORPORATION) *3 Source: Gartner®, Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2025, Bob Johnson et al. Published 2 April 2026 Graph created by Kokusai Electric based on Gartner research. Calculations performed by Kokusai Electric/ Treatment = RTP and Oxidation/Diffusion.GARTNER is a trademark of Gartner, Inc. and its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or o ther designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and sh ould not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner con tent described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subsc ription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this presentation), and the opinions expressed in the Gartner Con tent are subject to change without notice. *4 Total market in each of Gartner’s category *5 Kokusai estimate based on public information and internal sales data We achieved the top market share in the batch deposition equipment market in CY25. Our market share of batch ALD*1 compatible deposition equipment has reached 80%. We have also captured the top market share in single-wafer treatment equipment (Plasma Gate Modification Tools) *2.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 42 Decided to Acquire a Land Adjacent to Tonami Manufacturing Center (Announced on May 13th) Tonami Manufacturing Center Planned acquisition site Location Takaoka Tonami Smart IC Yanaze Industrial Park 2 Site Area Approx. 43,000 ㎡ Acquisition Cost Approx. 1.0 billion yen Anticipating further market expansion after 2031, we decided to acquire land owned by Tonami city, Toyama Prefecture, which is adjacent to our Tonami Manufacturing Center. It is expected to contribute to various initiatives within our group, such as production and R&D.
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved. 43 Glossary ◼ Batch processing equipment: Equipment for processing multiple wafers at once. ◼ Single-wafer Treatment Equipment ：Equipment that improves the quality of films after deposition by single wafer processing, which processes wafers by a single wafer unit. ◼ ALD：Atomic Layer Deposition We refer to a technique for thin-film deposition at an atomic layer level involving a process of cyclical supply of multiple gases as “ALD”. ◼ CVD:Chemical Vapor Deposition ◼ CFET:Complimentary Field Effect Transistor ◼ FinFET:Fin Field Effect Transistor ◼ GAA:Gate All Around ◼ HBM:High Bandwidth Memory ◼ POR ：An abbreviation for Process of Record, which refers to the qualification of manufacturing equipment in a customer's semiconductor manufacturing process. ◼ TAM：Total Addressable Market ◼ VCT:Vertical Channel Transistor ◼ WFE: Wafer Fab Equipment
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KOKUSAI ELECTRIC CORPORATION and its Affiliates Proprietary Copyright © KOKUSAI ELECTRIC Corporation 2026. All rights reserved.