Interim report
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FASF Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027 ( Under IFRS ) KOKUSAI ELECTRIC CORPORATION Tokyo Stock Exchange Company name : Listing : Securities code : URL : 6525 Representative : Inquiries : Telephone : https://www.kokusai-electric.com/ Kazunori Tsukada , Representative Director , President and CEO August 6 2026 Takaaki Nose , Corporate Vice President and Executive Officer and Vice President , Corporate Strategy Division + 81-3-6772-9655 Scheduled date to commence dividend payments : Preparation of supplementary materials on financial results : Holding of financial results briefing : Yes Yes ( for institutional investors and analysts ) ( Yen amounts are rounded to millions . ) 1 . Consolidated financial results for the three months ended June 30th , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Revenue Operating profit Income before income tax Net income Three months ended June 30 , 2026 June 30 , 2025 Millions of yen 75,414 51,789 % 45.6 ( 20.6 ) Millions of yen 15,926 9,717 % 63.9 ( 45.6 ) Millions of yen 15,742 9,322 % 68.9 ( 47.5 ) Millions of yen 11,558 6,776 % 70.6 ( 49.1 ) Net income attributable to owners of the parent Comprehensive income Basic earnings Diluted earnings per share per share Three months ended Millions of yen June 30 , 2026 June 30 , 2025 11,558 6,776 % 70.6 ( 49.1 ) Millions of yen 12,027 7,692 % 56.4 ( 47.4 ) Yen 49.47 Yen 49.37 29.08 28.97 Adjusted operating profit Adjusted net income Three months ended Millions of yen Millions of yen June 30 , 2026 June 30 , 2025 17,371 10,902 12,548 7,598 Notes 1 . 2 . Adjusted net income per share Yen 53.71 32.61 Adjusted operating profit is calculated as operating profit - other income + other expenses + purchase price allocation amortization + business restructuring expenses + stock - based compensation ( except for performance - linked stock compensation ) . Adjusted net income is calculated as net income - other income + other expenses + purchase price allocation amortization + business restructuring expenses + stock - based compensation ( except for performance - linked stock compensation ) - tax adjustments to total adjustments . ( 2 ) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets . As of Millions of yen Millions of yen June 30 , 2026 March 31 , 2026 370,889 359,658 224,900 219,270 Millions of yen 224,900 219,270 % 60.6 61.0 - 1 -
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- 2 - 2. Cash dividends Annual dividends per share 1Q end 2Q end 3Q end 4Q end Annual Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 － 18.00 － 19.00 37.00 Fiscal year ended March 31, 2027 － Fiscal year ending March 31, 2027 (Forecast) 32.00 － 33.00 65.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes 3. Forecasts of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Revenue Operating profit Income before income tax Net income Net income attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 2Q(cumulative) ending September 30, 2026 161,000 37.4 35,600 56.8 35,100 58.4 25,400 63.3 25,400 63.3 108.75 Fiscal year ending March 31, 2027 340,000 44.6 79,400 89.8 78,300 92.2 55,500 84.4 55,500 84.4 237.63 Adjusted operating profit Adjusted net income Adjusted net income per share Millions of yen % Millions of yen % Yen 2Q(cumulative) ending September 30, 2026 39,200 54.7 27,800 59.9 119.03 Fiscal year ending March 31, 2027 86,000 80.7 60,000 76.0 256.90 Note: Revisions to the forecast of financial results most recently announced: Yes
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- 3 - ※ Notes (1) Important changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 238,115,614 shares As of March 31, 2026 238,115,614 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 4,558,425 shares As of March 31, 2026 4,500,158 shares (iii) Average number of shares outstanding during each of the following period (cumulative from the beginning of the fiscal year) As of June 30, 2026 233,632,654 shares As of June 30, 2025 232,986,059 shares ※Review of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm: None ※ Proper use of earnings forecasts, and other special matters The forward-looking statements herein are based on the Company’s expectations, estimations, and forecasts deemed to be reasonable at the date of publication of this document. The forward-looking statements herein include the known and unknown risks, uncertainties and other factors and actual results may be materially different from those discussed or implied in the forward- looking statements. Accordingly, the forward-looking statements herein are inherently not guarantees of future performance and results.
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- 4 - KOKUSAI ELECTRIC CORPORATION Condensed quarterly consolidated statement of financial position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 56,543 56,974 Trade and other receivables 37,941 42,223 Inventories 88,890 93,702 Other current assets 2,465 2,467 Total current assets 185,839 195,366 Non-current Assets Property, plant and equipment 53,975 56,370 Right-of-use assets 3,246 3,634 Goodwill 59,065 59,065 Intangible assets 50,900 49,978 Other financial assets 1,582 1,638 Deferred tax assets 2,190 2,025 Other non-current assets 2,861 2,813 Total non-current assets 173,819 175,523 Total assets 359,658 370,889
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Loans payable 11,514 11,546 Lease obligations 859 916 Trade and other payables 25,354 31,476 Accrued expenses 13,089 11,339 Other financial liabilities 143 1,430 Income tax payable 3,367 5,351 Provisions 1,290 1,253 Contract liabilities 34,840 32,844 Other current liabilities 273 266 Total current liabilities 90,729 96,421 Non-current liabilities Loans payable 35,306 35,403 Lease obligations 2,186 2,524 Retirement and severance benefits 2,802 2,799 Provisions 307 309 Deferred tax liabilities 8,848 8,343 Other non-current liabilities 210 190 Total non-current liabilities 49,659 49,568 Total liabilities 140,388 145,989 Equity Common stock 14,139 14,139 Capital surplus 23,605 23,087 Treasury stock (16,014) (17,334) Retained earnings 191,455 198,649 Other components of equity 6,085 6,359 Total equity attributable to owners of the parent 219,270 224,900 Total equity 219,270 224,900 Total liabilities and equity 359,658 370,889
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- 6 - KOKUSAI ELECTRIC CORPORATION Condensed quarterly consolidated statement of profit or loss Three months ended June 30, 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenues 51,789 75,414 Cost of sales ሺ29,569) (44,736) Gross profit 22,220 30,678 Selling, general and administrative expenses ሺ12,789) (14,787) Other income 304 56 Other expenses ሺ18) (21) Operating profit 9,717 15,926 Financial income 68 168 Financial expenses ሺ463) (352) Income before income tax 9,322 15,742 Income tax expenses ሺ2,546) (4,184) Net income 6,776 11,558 Net income attributable to: Owners of the parent 6,776 11,558 Net income per share Basic (yen) 29.08 49.47 Diluted (yen) 28.97 49.37
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- 7 - KOKUSAI ELECTRIC CORPORATION Condensed quarterly consolidated statement of comprehensive income Three months ended June 30, 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net income 6,776 11,558 Other comprehensive income (OCI) Items that may be reclassified into net income Cash flow hedges 5 0 Foreign currency translation adjustments 911 469 Total of items that may be reclassified into net income 916 469 Total other comprehensive income 916 469 Comprehensive income 7,692 12,027 Comprehensive income attributable to: Owners of the parent 7,692 12,027
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- 8 - KOKUSAI ELECTRIC CORPORATION Condensed quarterly consolidated statement of cash flows Three months ended June 30, 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Net income 6,776 11,558 Depreciation and amortization 3,417 3,931 Income tax expense 2,546 4,184 Financial income ሺ68) ሺ168) Financial expenses 463 352 Increase in inventories ሺ5,701) ሺ4,516) Decrease (increase) in trade and other receivables 4,063 ሺ4,062) Increase (decrease) in trade and other payables ሺ1,683) 4,122 Other 2,761 ሺ951) Subtotal 12,574 14,450 Interest and dividends received 60 121 Interest paid ሺ168) ሺ182) Income taxes paid ሺ7,543) ሺ2,262) Net cash provided by operating activities 4,923 12,127 Cash flows from investing activities Purchase of property, plant and equipment ሺ2,487) ሺ4,560) Purchase of intangible assets ሺ496) ሺ964) Other 41 4 Net cash used in investing activities ሺ2,942) ሺ5,520) Cash flows from financing activities Repayment of lease obligations ሺ182ሻሺ 235ሻ Dividends paid (4,241) ሺ4,319ሻ Purchase of treasury shares － (1,870) Other 0 (22) Net cash used in financing activities (4,423) (6,446) Effect of exchange rate changes on cash and cash equivalents 453 270 Net increase (decrease) in cash and cash equivalents (1,989) 431 Cash and cash equivalents at beginning of the period 44,755 56,543 Cash and cash equivalents at end of the period 42,766 56,974