Interim report
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Company name: KYOCERA CORPORATION Stock Listing: Tokyo Stock Exchange Code number: 6971 URL: https://global.kyocera.com/ Representative: Shiro Sakushima, President and Representative Director, President and Executive Officer, CEO Contact person: Hiroaki Chida, Director, Managing Executive Officer, CFO, and Executive General Manager of Corporate Planning Office and Headquarters TEL: +81-75-604-3500 Scheduled date of semi-annual securities report filing: November 13, 2026 Scheduled date for commencement of dividend payments: December 7, 2026 Supplementary documents of financial results: Yes Holding of financial results meeting: Yes (for institutional investors and analysts) (1) Consolidated operating results (% of change from the same period of the previous year) Sales revenue Operating profit Profit before income taxes Profit attributable to owners of the parent Comprehensive income for the period Six months ended Million yen % Million yen % Million yen % Million yen % Million yen % September 30, 2026 1,078,337 8.8 65,609 56.4 93,020 36.9 73,430 32.2 141,093 46.1 September 30, 2025 991,385 (0.7) 41,945 10.7 67,950 31.1 55,540 53.9 96,603 383.6 Earnings per share attributable to owners of the parent - Basic Earnings per share attributable to owners of the parent - Diluted Six months ended Yen Yen September 30, 2026 56.73 － September 30, 2025 39.61 － Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets As of Million yen Million yen Million yen % September 30, 2026 4,597,397 3,294,110 3,265,364 71.1 March 31, 2026 4,646,314 3,367,372 3,339,431 71.9 Annual dividends per share First quarter-end Second quarter-end Third quarter-end Year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2026 － 25.00 － 27.00 52.00 Year ending March 31, 2027 － 28.00 Year ending March 31, 2027 (forecast) － 28.00 56.00 Consolidated Financial Results for the Six Months Ended September 30, 2026 (IFRS) November 2, 2026 (Amounts less than one million yen are rounded) 1. Consolidated Financial Results for the Six Months Ended September 30, 2026 (2) Consolidated financial position 2. Cash Dividends (Note) Revision of previously announced dividend forecasts during this reporting period: None
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3. Consolidated Financial Forecasts for the Year Ending March 31, 2027 (% of change from the previous year) Sales revenue Operating profit Profit before income taxes Profit attributable to owners of the parent Earnings per share attributable to owners of the parent - Basic Year ending Million yen % Million yen % Million yen % Million yen % Yen March 31, 2027 2,120,000 2.4 160,000 35.4 200,000 18.3 160,000 13.5 123.62 As of September 30, 2026 1,419,100,820 shares As of March 31, 2026 1,510,474,320 shares As of September 30, 2026 150,861,611 shares As of March 31, 2026 193,068,328 shares For the six months ended September 30, 2026 1,294,327,624 shares For the six months ended September 30, 2025 1,402,075,698 shares (Note) Revision of previously announced financial forecast during this reporting period: Yes “Earnings per share attributable to owners of the parent - Basic” is calculated using the average number of shares outstanding for the six months ended September 30, 2026. Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and accounting estimates (i) Changes in accounting policies required under IFRS: None (ii) Changes in accounting policies due to reasons other than (i): None (iii) Changes in accounting estimates: None (3) Number of shares issued (common stock) (i) Number of shares issued (including treasury stock): (ii) Number of treasury stock: (iii) Average number of shares outstanding: (Note) Based on a resolution of the Board of Directors adopted on April 30, 2026, Kyocera Corporation canceled 91,373,500 shares of its treasury stock on May 29, 2026. As a result of this cancellation, the total number of issued shares outstanding as of September 30, 2026 decreased to 1,419,100,820 shares. This consolidated financial statement is not subject to interim review procedures by public accountants nor audit firms.
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Instruction for Forecasts and Other Notes 1. Cautionary statements with respect to forward-looking statements Certain of the statements made in this document are forward-looking statements, which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following: (1) General conditions in the Japanese or global economy; (2) Unexpected changes in economic, political and legal conditions in countries where we operate or export; (3) The effect of foreign exchange fluctuations on our results of operations; (4) Intense competitive pressures to which our products are subject; (5) Fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in our production activities; (6) Manufacturing delays or defects resulting from outsourcing or internal manufacturing processes; (7) The possibility that future initiatives and in-process research and development may not produce the desired results; (8) Companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities; (9) Inability to secure skilled employees; (10) Damages on our information security systems from cyberattacks, etc. and significant costs in order to recover and maintain the systems; (11) Insufficient protection of our trade secrets and intellectual property rights including patents; (12) Expenses associated with licenses we require to continue to manufacture and sell products; (13) Unintentional conflict with laws and regulations or newly enacted laws and regulations; (14) Environmental liability and compliance obligations by tightening of environmental laws and regulations; (15) Inability to respond to global climate change problems or delay in such response, which may lead to increased costs and negatively impact our corporate brands; (16) Our market or supply chains being affected by plague, infectious diseases, terrorism, wars or similar events; (17) Earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers; (18) Credit risk on trade receivables; (19) Fluctuations in the value of financial instruments held by us; (20) Impairment losses on property, plant and equipment, goodwill and intangible assets; (21) Uncertainty over income tax and deferred tax assets; and (22) Changes in accounting standards. Due to such risks, uncertainties and other factors, our actual results, performance, achievements or financial condition may be substantially different from any future results, performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements included in this document. 2. Method of obtaining supplementary materials on the financial results The supplementary documents will be posted on the corporate website on November 2, 2026. 3. English translation This is an English translation of the Japanese original of “Consolidated Financial Results for the Six Months Ended September 30, 2026.” The translation is prepared for the reference and convenience solely for those who do not use Japanese. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
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1. Overview of Operating Results and Other Information ………………………………………………… 2 (1) Overview of Operating Results ………………………………………………………………………… 2 (2) Overview of Financial Position ………………………………………………………………………… 5 (3) Explanation Regarding Future Projection Including Consolidated Financial Forecasts ………………… 7 2. Condensed Interim Consolidated Financial Statements and Primary Notes …………………………… 9 (1) Condensed Interim Consolidated Statement of Financial Position …………………………………… 9 (2) Condensed Interim Consolidated Statement of Profit or Loss and Comprehensive Income ………… 11 a. Condensed Interim Consolidated Statement of Profit or Loss ……………………………………… 11 b. Condensed Interim Consolidated Statement of Comprehensive Income …………………………… 12 (3) Condensed Interim Consolidated Statement of Changes in Equity …………………………………… 13 (4) Condensed Interim Consolidated Statement of Cash Flows…………………………………………… 14 (5) Notes to Condensed Interim Consolidated Financial Statements …………………………………… 15 a. Notes to Going Concern Assumption ………………………………………………………………… 15 b. Notes to Condensed Interim Consolidated Statement of Profit or Loss …………………………… 15 c. Segment Information …………………………………………………………………………………… 15 d. Material Subsequent Event … …… …………………………………………………………………… 18 (Attachment) Table of Contents - 1 -
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Consolidated Financial Results (Yen in millions) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount %* Amount %* Amount % Sales revenue 991,385 100.0 1,078,337 100.0 86,952 8.8 Operating profit 41,945 4.2 65,609 6.1 23,664 56.4 Profit before income taxes 67,950 6.9 93,020 8.6 25,070 36.9 Profit attributable to owners of the parent 55,540 5.6 73,430 6.8 17,890 32.2 Average US$ exchange rate (Yen) 146 － 159 － － － Average Euro exchange rate (Yen) 168 － 184 － － － Capital expenditures 88,740 9.0 81,897 7.6 (6,843) (7.7) Depreciation charge of property, plant and equipment 54,590 5.5 56,154 5.2 1,564 2.9 Research and development expenses 57,178 5.8 57,184 5.3 6 0.0 1. Overview of Operating Results and Other Information (1) Overview of Operating Results a. Consolidated Financial Results During the six months ended September 30, 2026 (“the first half”), the global economy remained solid, supported by the expansion of AI-related investment, etc. However, uncertainty persisted in the global economy due to geopolitical risk, as well as price increases of raw materials. In our principal markets, namely, semiconductor- related markets, demand related to data center and network infrastructure remained robust. Sales revenue for the first half increased by 86,952 million yen, or 8.8%, to 1,078,337 million yen, as compared with the six months ended September 30, 2025 (“the previous first half”). Sales revenue of the Core Components Business and the Electronic Components Business increased, due primarily to continued robust demand for high- value-added products mainly for AI data centers such as semiconductor packages and capacitors. Sales revenue of the Solutions Business decreased as compared with the previous first half; however, when the impact of a sales decrease from transfer of the U.S. subsidiary of the Industrial Tools Unit in January 2026 is excluded, sales revenue of the Solutions Business increased compared with the previous first half. Profits increased significantly in the first half due mainly to increased sales of high-value-added products in the Core Components Business and the Electronic Components Business, as well as to the higher sales revenue in existing principal businesses in the Solutions Business, which more than offset aggregate one-time costs in the amount of approximately 37.1 billion yen, comprised of an impairment loss of goodwill and intangible assets in the GaN (gallium nitride) Devices Business in the amount of approximately 29.5 billion yen and a provision recorded in connection with energy-related products in the amount of approximately 7.6 billion yen. As a result, operating profit increased by 23,664 million yen, or 56.4%, to 65,609 million yen, profit before income taxes increased by 25,070 million yen, or 36.9%, to 93,020 million yen and profit attributable to owners of the parent increased by 17,890 million yen, or 32.2%, to 73,430 million yen, as compared with the previous first half. Average exchange rates for the first half were 159 yen to the U.S. dollar, marking depreciation of 13 yen, or 8.9%, and 184 yen to the Euro, marking depreciation of 16 yen, or 9.5%, as compared with the previous first half. As a result, sales revenue and profit before income taxes after translation into yen for the first half were pushed up by approximately 63 billion yen and 12 billion yen, respectively, as compared with the previous first half. * % represents the percentage to sales revenue. - 2 -
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b. Consolidated Financial Results by Reporting Segment 1) Core Components Business Sales revenue for the first half increased by 60,515 million yen, or 19.7%, to 368,173 million yen, as compared with the previous first half. Business profit increased by 20,453 million yen, or 68.1%, to 50,473 million yen, as compared with the previous first half. The business profit ratio for the first half improved to 13.7% from 9.8% recorded in the previous first half. Sales revenue increased due mainly to increased sales of high-value-added products such as semiconductor packages for AI data centers and fine ceramic components for semiconductor processing equipment. Business profit increased, due mainly to a significant improvement in profitability driven by the higher sales revenue for high- value-added products. 2) Electronic Components Business Sales revenue for the first half increased by 40,573 million yen, or 23.2%, to 215,282 million yen, as compared with the previous first half. Business profit increased by 19,581 million yen to 19,598 million yen, as compared with the previous first half. The business profit ratio for the first half was 9.1%. Sales revenue increased due mainly to increased sales of high-value-added products for AI data centers such as small-sized high-capacitance MLCCs and tantalum capacitors. Business profit increased significantly due to the higher sales revenue and improvement of profitability of high-value-added products, as well as profits from sale of real estate, etc. incurred in the three months ended June 30, 2026. Further, the absence of a one-time loss relating to a business transfer incurred in the previous first half also contributed to business profit. 3) Solutions Business Sales revenue for the first half decreased by 15,237 million yen, or 2.9%, to 503,784 million yen, as compared with the previous first half. Business profit increased by 19,237 million yen, or 50.9%, to 56,999 million yen, as compared with the previous first half. The business profit ratio for the first half improved to 11.3% from 7.3% recorded in the previous first half. Sales revenue decreased due mainly to completion of the transfer of a U.S. subsidiary in the Industrial Tools Unit in January 2026, which more than offset increased demand for major products mainly in the Document Solutions Unit and the Industrial Tools Unit, etc. Business profit increased due mainly to higher sales revenue from existing principal businesses as well as improved profitability of each business. - 3 -
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Sales Revenue by Reporting Segment (Yen in millions) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount %* Amount %* Amount % Core Components Business 307,658 31.0 368,173 34.1 60,515 19.7 Industrial & Automotive Components Unit 118,895 12.0 134,073 12.4 15,178 12.8 Semiconductor Components Unit 177,309 17.9 221,144 20.5 43,835 24.7 Others 11,454 1.1 12,956 1.2 1,502 13.1 Electronic Components Business 174,709 17.6 215,282 20.0 40,573 23.2 Solutions Business 519,021 52.4 503,784 46.7 (15,237) (2.9) Industrial Tools Unit 156,983 15.8 106,815 9.9 (50,168) (32.0) Document Solutions Unit 220,920 22.3 248,186 23.0 27,266 12.3 Communications Unit 98,815 10.0 106,898 9.9 8,083 8.2 Others 42,303 4.3 41,885 3.9 (418) (1.0) Others 6,623 0.7 7,575 0.7 952 14.4 Adjustments and eliminations (16,626) (1.7) (16,477) (1.5) 149 － Sales revenue 991,385 100.0 1,078,337 100.0 86,952 8.8 Business Profit (Loss) by Reporting Segment For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount %* Amount %* Amount % Core Components Business 30,020 9.8 50,473 13.7 20,453 68.1 Industrial & Automotive Components Unit 11,960 10.1 19,209 14.3 7,249 60.6 Semiconductor Components Unit 19,115 10.8 31,480 14.2 12,365 64.7 Others (1,055) － (216) － 839 － Electronic Components Business 17 0.0 19,598 9.1 19,581 － Solutions Business 37,762 7.3 56,999 11.3 19,237 50.9 Industrial Tools Unit 10,284 6.6 19,164 17.9 8,880 86.3 Document Solutions Unit 18,124 8.2 29,634 11.9 11,510 63.5 Communications Unit 4,200 4.3 7,891 7.4 3,691 87.9 Others 5,154 12.2 310 0.7 (4,844) (94.0) Others (12,061) － (43,589) － (31,528) － Total business profit 55,738 5.6 83,481 7.7 27,743 49.8 Corporate gains and others 12,212 － 9,539 － (2,673) (21.9) Profit before income taxes 67,950 6.9 93,020 8.6 25,070 36.9 * % represents the component ratio. * % represents the percentage to sales revenue of each corresponding segment. (Note) Kyocera decided to change the classification of a part of “Industrial & Automotive Components Unit” under “Core Components Business” to “Semiconductor Components Unit” under “Core Components Business” from January 1, 2026. Kyocera also decided to change the classification of elemental technology research, which had been included in “Others”, to “Corporate gains and others” from the year ending March 31, 2027. With these changes, the results for the six months ended September 30, 2025 were reclassified in the same manner. - 4 -
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Consolidated Financial Position (Yen in millions) As of March 31, 2026 As of September 30, 2026 Change Total assets 4,646,314 4,597,397 (48,917) Total liabilities 1,278,942 1,303,287 24,345 Total equity 3,367,372 3,294,110 (73,262) (2) Overview of Financial Position a. Consolidated Financial Position As a result of the sale of some common shares of KDDI Corporation (“KDDI”) held by Kyocera Corporation and other factors, Kyocera’s financial position as of September 30, 2026 was as follows. Total assets decreased by 48,917 million yen compared with total assets as of March 31, 2026 to 4,597,397 million yen primarily due to decreases in equity instruments as a result of the sale of KDDI’s shares and in goodwill and intangible assets owing to the impact of an impairment loss in GaN Device Business, which were partially offset by increases in inventories and property, plant and equipment. Total liabilities increased by 24,345 million yen compared with total liabilities as of March 31, 2026 to 1,303,287 million yen due mainly to an increase in other payables arising from the capital expenditures. Total equity decreased by 73,262 million yen compared with total equity as of March 31, 2026 to 3,294,110 million yen primarily due to the purchase of treasury stock, etc., despite the recording of profit attributable to owners of the parent. - 5 -
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Consolidated Cash Flows (Yen in millions) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Cash flows from operating activities 100,343 145,364 45,021 Cash flows from investing activities 119,492 68,161 (51,331) Cash flows from financing activities (120,466) (228,932) (108,466) Effect of exchange rate changes on cash and cash equivalents 4,189 (3,946) (8,135) Increase (decrease) in cash and cash equivalents 103,558 (19,353) (122,911) Cash and cash equivalents at the beginning of the year 444,744 455,887 11,143 Cash and cash equivalents at the end of the period 548,302 436,534 (111,768) b. Consolidated Cash Flows The balance of cash and cash equivalents as of September 30, 2026 decreased by 19,353 million yen to 436,534 million yen from 455,887 million yen as of March 31, 2026. 1) Cash flows from operating activities Net cash provided by operating activities for the first half increased by 45,021 million yen to 145,364 million yen from 100,343 million yen for the previous first half. This was due mainly to increased profit for the period, as well as an increase in refunds of corporate income taxes. 2) Cash flows from investing activities Net cash provided by investing activities for the first half decreased by 51,331 million yen to 68,161 million yen from 119,492 million yen for the previous first half. This was due mainly to a decrease in the acquisition of time deposits, while proceeds from the sale of KDDI shares declined. 3) Cash flows from financing activities Net cash used in financing activities for the first half increased by 108,466 million yen to 228,932 million yen from 120,466 million yen for the previous first half. This was due mainly to an increase in the payment for purchase of treasury stock. - 6 -
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Forecasts of Consolidated Financial Results (Yen in millions) Results for the year ended March 31, 2026 Forecasts for the year ending March 31, 2027, announced on Change %*2 July 30, 2026 (Previous) November 2, 2026 (Revised) Amount %*1 Amount %*1 Amount %*1 Sales revenue 2,070,203 100.0 2,080,000 100.0 2,120,000 100.0 2.4 Operating profit 118,138 5.7 160,000 7.7 160,000 7.5 35.4 Profit before income taxes 168,994 8.2 200,000 9.6 200,000 9.4 18.3 Profit attributable to owners of the parent 140,969 6.8 160,000 7.7 160,000 7.5 13.5 Average US$ exchange rate (Yen) 151 － 155 － 155 － － Average Euro exchange rate (Yen) 175 － 180 － 180 － － Capital expenditures 149,099 7.2 225,000 10.8 225,000 10.6 50.9 Depreciation charge of property, plant and equipment 110,924 5.4 120,000 5.8 120,000 5.7 8.2 Research and development expenses 115,701 5.6 120,000 5.8 120,000 5.7 3.7 (3) Explanation Regarding Future Projection Including Consolidated Financial Forecasts Kyocera has revised its consolidated financial forecasts for the year ending March 31, 2027, as set forth below. Financial results for the first half exceeded our expectations due to robust demand for components in AI and semiconductor-related markets. Based on our expectation that demand for such components will remain solid for the three months ending December 31, 2026 and onward, sales revenue is expected to exceed our previous forecast. With respect to profits, our forecast remains unchanged from the previous forecast; the positive impact of significant profitability improvements in each business, as well as the gain from the transfer of the Chemical Business (please refer to “(5) Notes to Condensed Interim Consolidated Financial Statements - d. Material Subsequent Event” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes”), is expected to offset the impact of the one-time cost recorded during the first half. Considering factors such as progress through the end of the first half, Kyocera has also revised its forecasts for each reporting segment as described on the following page. Please refer to “1. Cautionary statements with respect to forward-looking statements” in “Instruction for Forecasts and Other Notes” for information of future prospective. *1 % represents the percentage to sales revenue. *2 % represents the percentage change from the previous year. - 7 -
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Forecasts of Sales Revenue by Reporting Segment (Yen in millions) Results for the year ended March 31, 2026 Forecasts for the year ending March 31, 2027, announced on Change %*2July 30, 2026 (Previous) November 2, 2026 (Revised) Amount %*1 Amount %*1 Amount %*1 Core Components Business 653,429 31.6 716,000 34.4 731,000 34.5 11.9 Industrial & Automotive Components Unit 250,069 12.1 273,000 13.1 273,000 12.9 9.2 Semiconductor Components Unit 379,432 18.3 415,000 20.0 430,000 20.3 13.3 Others 23,928 1.2 28,000 1.3 28,000 1.3 17.0 Electronic Components Business 363,486 17.5 415,000 20.0 430,000 20.3 18.3 Solutions Business 1,070,919 51.7 964,800 46.4 974,800 46.0 (9.0) Industrial Tools Unit 285,936 13.8 180,000 8.6 190,000 9.0 (33.6) Document Solutions Unit 478,479 23.1 490,000 23.6 490,000 23.1 2.4 Communications Unit 219,158 10.6 200,000 9.6 200,000 9.4 (8.7) Others 87,346 4.2 94,800 4.6 94,800 4.5 8.5 Others 14,196 0.7 15,000 0.7 15,000 0.7 5.7 Adjustments and eliminations (31,827) (1.5) (30,800) (1.5) (30,800) (1.5) － Sales revenue 2,070,203 100.0 2,080,000 100.0 2,120,000 100.0 2.4 Forecasts of Business Profit (Loss) by Reporting Segment (Yen in millions) Results for the year ended March 31, 2026 Forecasts for the year ending March 31, 2027, announced on Change %*2 July 30, 2026 (Previous) November 2, 2026 (Revised) Amount %*1 Amount %*1 Amount %*1 Core Components Business 63,082 9.7 99,000 13.8 112,000 15.3 77.5 Industrial & Automotive Components Unit 18,730 7.5 36,000 13.2 39,000 14.3 108.2 Semiconductor Components Unit 46,933 12.4 63,500 15.3 73,500 17.1 56.6 Others (2,581) － (500) － (500) － － Electronic Components Business 7,316 2.0 26,000 6.3 40,000 9.3 446.7 Solutions Business 103,943 9.7 94,000 9.7 99,000 10.2 (4.8) Industrial Tools Unit 35,196 12.3 18,000 10.0 25,000 13.2 (29.0) Document Solutions Unit 45,115 9.4 47,000 9.6 49,000 10.0 8.6 Communications Unit 12,116 5.5 15,000 7.5 18,000 9.0 48.6 Others 11,516 13.2 14,000 14.8 7,000 7.4 (39.2) Others (21,742) － (26,000) － (58,000) － － Total business profit 152,599 7.4 193,000 9.3 193,000 9.1 26.5 Corporate gains and others 16,395 － 7,000 － 7,000 － (57.3) Profit before income taxes 168,994 8.2 200,000 9.6 200,000 9.4 18.3 *1 % represents the component ratio. *2 % represents the percentage change from the previous year. *1 % represents the percentage to sales revenue of each corresponding segment. *2 % represents the percentage change from the previous year. (Note) Kyocera decided to change the classification of elemental technology research, which had been included in “Others” to “Corporate gains and others” from the year ending March 31, 2027. With this change, the results for the year ended March 31, 2026 were reclassified in the same manner. - 8 -
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(Yen in millions) As of March 31, 2026 As of September 30, 2026 Change Amount %* Amount %* Assets Current assets Cash and cash equivalents 455,887 436,534 (19,353) Trade and other receivables 382,158 377,328 (4,830) Other financial assets 34,436 34,142 (294) Inventories 522,004 559,265 37,261 Income tax receivables 33,172 12,311 (20,861) Other current assets 73,494 79,310 5,816 Total current assets 1,501,151 32.3 1,498,890 32.6 (2,261) Non-current assets Equity and debt instruments 1,649,512 1,613,183 (36,329) Investments accounted for using the equity method 97,320 96,099 (1,221) Other financial assets 57,120 59,536 2,416 Property, plant and equipment 685,492 708,504 23,012 Right-of-use assets 75,903 77,575 1,672 Goodwill 273,968 244,652 (29,316) Intangible assets 121,241 111,792 (9,449) Deferred tax assets 44,850 45,398 548 Other non-current assets 139,757 141,768 2,011 Total non-current assets 3,145,163 67.7 3,098,507 67.4 (46,656) Total assets 4,646,314 100.0 4,597,397 100.0 (48,917) 2. Condensed Interim Consolidated Financial Statements and Primary Notes (1) Condensed Interim Consolidated Statement of Financial Position * % represents the component ratio. - 9 -
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(Yen in millions) As of March 31, 2026 As of September 30, 2026 Change Amount %* Amount %* Liabilities and Equity Liabilities Current liabilities Borrowings 56,075 56,802 727 Trade and other payables 194,767 227,281 32,514 Lease liabilities 21,805 21,282 (523) Other financial liabilities 3,886 569 (3,317) Income tax payables 32,483 18,477 (14,006) Accrued expenses 146,693 153,854 7,161 Provisions 10,572 12,677 2,105 Other current liabilities 58,729 57,329 (1,400) Total current liabilities 525,010 11.3 548,271 11.9 23,261 Non-current liabilities Borrowings 188,963 189,160 197 Lease liabilities 65,881 67,703 1,822 Retirement benefit liabilities 9,000 8,915 (85) Deferred tax liabilities 464,045 452,046 (11,999) Provisions 15,556 20,374 4,818 Other non-current liabilities 10,487 16,818 6,331 Total non-current liabilities 753,932 16.2 755,016 16.4 1,084 Total liabilities 1,278,942 27.5 1,303,287 28.3 24,345 Equity Common stock 115,703 115,703 － Capital surplus 118,813 83 (118,730) Retained earnings 2,215,875 2,299,326 83,451 Other components of equity 1,231,991 1,208,391 (23,600) Treasury stock (342,951) (358,139) (15,188) Total equity attributable to owners of the parent 3,339,431 71.9 3,265,364 71.1 (74,067) Non-controlling interests 27,941 0.6 28,746 0.6 805 Total equity 3,367,372 72.5 3,294,110 71.7 (73,262) Total liabilities and equity 4,646,314 100.0 4,597,397 100.0 (48,917) * % represents the component ratio. - 10 -
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For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount %* Amount %* Amount % Sales revenue 991,385 100.0 1,078,337 100.0 86,952 8.8 Cost of sales 703,919 71.0 736,799 68.3 32,880 4.7 Gross profit 287,466 29.0 341,538 31.7 54,072 18.8 Selling, general and administrative expenses 245,521 24.8 275,929 25.6 30,408 12.4 Operating profit 41,945 4.2 65,609 6.1 23,664 56.4 Finance income 32,069 3.2 31,399 2.9 (670) (2.1) Finance expenses 7,451 0.6 5,807 0.6 (1,644) (22.1) Share of net profit (loss) of investments accounted for using the equity method 319 0.0 32 0.0 (287) (90.0) Other, net 1,068 0.1 1,787 0.2 719 67.3 Profit before income taxes 67,950 6.9 93,020 8.6 25,070 36.9 Income taxes 10,752 1.1 17,425 1.6 6,673 62.1 Profit for the period 57,198 5.8 75,595 7.0 18,397 32.2 Profit attributable to: Owners of the parent 55,540 5.6 73,430 6.8 17,890 32.2 Non-controlling interests 1,658 0.2 2,165 0.2 507 30.6 Profit for the period 57,198 5.8 75,595 7.0 18,397 32.2 Per share information: Earnings per share attributable to owners of the parent Basic and diluted (Yen) 39.61 56.73 (2) Condensed Interim Consolidated Statement of Profit or Loss and Comprehensive Income a. Condensed Interim Consolidated Statement of Profit or Loss (Yen in millions except per share amounts) * % represents the percentage to sales revenue. - 11 -
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(Yen in millions) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount Amount Profit for the period 57,198 75,595 18,397 Other comprehensive income, net of taxation Items that will not be reclassified to profit or loss: Financial assets measured at fair value through other comprehensive income 22,617 79,303 56,686 Re-measurement of defined benefit plans (147) (7) 140 Share of other comprehensive income of investments accounted for using the equity method － 52 52 Total items that will not be reclassified to profit or loss 22,470 79,348 56,878 Items that may be reclassified subsequently to profit or loss: Financial assets measured at fair value through other comprehensive income － (7) (7) Net changes in fair value of cash flow hedge 15 25 10 Exchange differences on translating foreign operations 16,920 (13,741) (30,661) Share of other comprehensive income of investments accounted for using the equity method (0) (127) (127) Total items that may be reclassified subsequently to profit or loss 16,935 (13,850) (30,785) Total other comprehensive income 39,405 65,498 26,093 Comprehensive income for the period 96,603 141,093 44,490 Comprehensive income attributable to: Owners of the parent 94,806 138,925 44,119 Non-controlling interests 1,797 2,168 371 Comprehensive income for the period 96,603 141,093 44,490 b. Condensed Interim Consolidated Statement of Comprehensive Income - 12 -
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(Yen in millions) Total equity attributable to owners of the parent Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as of April 1, 2025 115,703 118,802 1,942,485 1,183,792 (142,994) 3,217,788 25,446 3,243,234 Profit for the period 55,540 55,540 1,658 57,198 Other comprehensive income 39,266 39,266 139 39,405 Total comprehensive income for the period － － 55,540 39,266 － 94,806 1,797 96,603 Cash dividends (35,219) (35,219) (1,013) (36,232) Purchase of treasury stock (50,798) (50,798) (50,798) Reissuance of treasury stock 10 46 56 56 Retirement of treasury stock － － Transactions with non-controlling interests － － Transfer to retained earnings 178,464 (178,464) － － Others 1 1 1 Balance as of September 30, 2025 115,703 118,813 2,141,270 1,044,594 (193,746) 3,226,634 26,230 3,252,864 (Yen in millions) Total equity attributable to owners of the parent Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as of April 1, 2026 115,703 118,813 2,215,875 1,231,991 (342,951) 3,339,431 27,941 3,367,372 Profit for the period 73,430 73,430 2,165 75,595 Other comprehensive income 65,495 65,495 3 65,498 Total comprehensive income for the period － － 73,430 65,495 － 138,925 2,168 141,093 Cash dividends (35,570) (35,570) (1,365) (36,935) Purchase of treasury stock (177,631) (177,631) (177,631) Reissuance of treasury stock 83 135 218 218 Retirement of treasury stock (118,813) (43,495) 162,308 － － Transactions with non-controlling interests － 2 2 Transfer to retained earnings 89,095 (89,095) － － Others (9) (9) (9) Balance as of September 30, 2026 115,703 83 2,299,326 1,208,391 (358,139) 3,265,364 28,746 3,294,110 (3) Condensed Interim Consolidated Statement of Changes in Equity For the six months ended September 30, 2025 For the six months ended September 30, 2026 - 13 -
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(Yen in millions) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Change Amount Amount Cash flows from operating activities: Profit for the period 57,198 75,595 18,397 Depreciation and amortization 78,734 78,426 (308) Finance expenses (income) (24,618) (25,592) (974) Share of net (profit) loss of investments accounted for using the equity method (319) (32) 287 Impairment loss 2,108 29,478 27,370 (Gains) losses from sales or disposal of property, plant and equipment 509 (2,569) (3,078) Income taxes 10,752 17,425 6,673 (Increase) decrease in trade and other receivables 28,028 911 (27,117) (Increase) decrease in inventories (7,839) (42,618) (34,779) (Increase) decrease in other assets (14,060) (13,663) 397 Increase (decrease) in trade and other payables (17,412) 11,513 28,925 Increase (decrease) in accrued expenses (401) 8,320 8,721 Increase (decrease) in other liabilities 14,103 2,082 (12,021) Other, net (4,096) 6,608 10,704 Subtotal 122,687 145,884 23,197 Interests and dividends received 31,654 32,128 474 Interests paid (3,089) (3,072) 17 Income taxes refund (paid) (50,909) (29,576) 21,333 Net cash provided by operating activities 100,343 145,364 45,021 Cash flows from investing activities: Payments for purchases of property, plant and equipment (72,890) (57,731) 15,159 Payments for purchases of intangible assets (7,516) (6,791) 725 Proceeds from sales of property, plant and equipment 1,030 3,767 2,737 Acquisition of time deposits and certificate of deposits (59,240) (2,960) 56,280 Withdrawal of time deposits and certificate of deposits 6,692 4,477 (2,215) Payments for purchases of securities (1,583) (2,207) (624) Proceeds from sales and maturities of securities 252,527 130,198 (122,329) Other, net 472 (592) (1,064) Net cash used in investing activities 119,492 68,161 (51,331) Cash flows from financing activities: Proceeds from short-term borrowings 44,179 51,929 7,750 Repayments of short-term borrowings (53,425) (50,252) 3,173 Proceeds from long-term borrowings 6,819 6,455 (364) Repayments of long-term borrowings (4,869) (5,673) (804) Repayments of lease liabilities (16,137) (13,847) 2,290 Dividends paid (37,039) (38,158) (1,119) Purchase of treasury stock (50,798) (177,631) (126,833) Other, net (9,196) (1,755) 7,441 Net cash used in financing activities (120,466) (228,932) (108,466) Effect of exchange rate changes on cash and cash equivalents 4,189 (3,946) (8,135) Increase (decrease) in cash and cash equivalents 103,558 (19,353) (122,911) Cash and cash equivalents at the beginning of the year 444,744 455,887 11,143 Cash and cash equivalents at the end of the period 548,302 436,534 (111,768) (4) Condensed Interim Consolidated Statement of Cash Flows - 14 -
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(5) Notes to Condensed Interim Consolidated Financial Statements a. Notes to Going Concern Assumption Not Applicable b. Notes to Condensed Interim Consolidated Statement of Profit or Loss For the first half, Kyocera recognized an impairment loss of 29,478 million yen on goodwill and intangible assets since the recoverable amount of GaN Device Business included in Others fell below its carrying amount. The impairment loss is included in selling, general and administrative expenses in the Condensed Interim Consolidated Statements of Profit or Loss. Reporting Segment Main Businesses and Subsidiaries Core Components Business Fine Ceramic Components, Automotive System, Optical Components, Ceramic Packages, Organic Packages and Boards, Medical Devices Electronic Components Business Electronic Components, Kyocera AVX Components Corporation Solutions Business Industrial Tools, Information Equipment (Kyocera Document Solutions Inc.), Telecommunications Equipment, Information Systems and Telecommunication Services (Kyocera Communication Systems Co., Ltd.), Smart Energy, Printing Devices, Jewelry & Applied Ceramic Related Products c. Segment Information 1) Overview of Reporting Segment Kyocera’s reporting segments are components of business activities for which discrete financial information is available, and such information is regularly reviewed by management in order to make decisions regarding the allocation of resources and assess its performance. Kyocera’s reporting segments are the same as the operating segments. Main businesses and subsidiaries of each reporting segment are as follows. Kyocera decided to change the classification of elemental technology research, which had been included in “Others”, to “Corporate gains and others” from the year ending March 31, 2027. With this change, the business results for the six months ended September 30, 2025 were reclassified in the same manner. - 15 -
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(Yen in millions) Reporting Segment Others * 1 Total Adjustment * 2 Consolidated Core Components Business Electronic Components Business Solutions Business Sales revenue External customers 307,213 174,299 504,946 4,927 991,385 － 991,385 Intersegment sales and transfers 445 410 14,075 1,696 16,626 (16,626) － Total 307,658 174,709 519,021 6,623 1,008,011 (16,626) 991,385 Business profit (loss) 30,020 17 37,762 (12,061) 55,738 － 55,738 Corporate gains and others * 3 － － － － － － 12,212 Profit before income taxes － － － － － － 67,950 Other items Capital expenditures (for property, plant and equipment) 52,807 14,973 10,759 2,932 81,471 7,269 88,740 Depreciation and amortization charge 23,315 16,834 27,447 2,781 70,377 8,357 78,734 Research and development expenses 13,067 7,520 18,312 9,620 48,519 8,659 57,178 Share of net profit (loss) of investments accounted for using the equity method － － 289 － 289 30 319 2) Information on Reporting Segment Information on reporting segment for the six months ended September 30, 2025 and 2026 are as follows: For the six months ended September 30, 2025 (Notes) 1. The “Others” is an operating segment that is not included in the reporting segment and mainly consists of the GaN Device Business. 2. Adjustment represents as follows: (1) The adjustment of intersegment sales and transfers are elimination of intersegment transactions. (2) The adjustment of capital expenditures (for property, plant and equipment) represents capital expenditures for corporate and others, which does not belong to each segment. (3) The adjustment of depreciation and amortization charge represents the depreciation and amortization charge for corporate and others, which does not belong to each segment. (4) The adjustment of research and development expenses represents the research and development expenses for elemental technology research, which does not belong to each segment. (5) The adjustment of share of net profit (loss) of investments accounted for using the equity method represents share of net profit (loss) of investments accounted for using the equity method for corporate, which does not belong to each segment. 3. Corporate gains and others include income and expenses which do not belong to any segments and mainly consist of finance income and expenses. - 16 -
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(Yen in millions) Reporting Segment Others * 1 Total Adjustment * 2 Consolidated Core Components Business Electronic Components Business Solutions Business Sales revenue External customers 367,763 214,841 490,345 5,388 1,078,337 － 1,078,337 Intersegment sales and transfers 410 441 13,439 2,187 16,477 (16,477) － Total 368,173 215,282 503,784 7,575 1,094,814 (16,477) 1,078,337 Business profit (loss) 50,473 19,598 56,999 (43,589) 83,481 － 83,481 Corporate gains and others * 3 － － － － － － 9,539 Profit before income taxes － － － － － － 93,020 Other items Capital expenditures (for property, plant and equipment) 47,974 17,126 8,798 1,742 75,640 6,257 81,897 Depreciation and amortization charge 23,329 17,597 24,088 3,420 68,434 9,992 78,426 Research and development expenses 11,644 7,914 17,563 11,671 48,792 8,392 57,184 Share of net profit (loss) of investments accounted for using the equity method － 55 232 － 287 (255) 32 For the six months ended September 30, 2026 (Notes) 1. The “Others” is an operating segment that is not included in the reporting segment and mainly consists of the GaN Device Business. 2. Adjustment represents as follows: (1) The adjustment of intersegment sales and transfers are elimination of intersegment transactions. (2) The adjustment of capital expenditures (for property, plant and equipment) represents capital expenditures for corporate and others, which does not belong to each segment. (3) The adjustment of depreciation and amortization charge represents the depreciation and amortization charge for corporate and others, which does not belong to each segment. (4) The adjustment of research and development expenses represents the research and development expenses for elemental technology research, which does not belong to each segment. (5) The adjustment of share of net profit (loss) of investments accounted for using the equity method represents share of net profit (loss) of investments accounted for using the equity method for corporate, which does not belong to each segment. 3. Corporate gains and others include income and expenses which do not belong to any segments and mainly consist of finance income and expenses. - 17 -
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d. Material Subsequent Event (The Transfer of Kyocera’s Chemical Business) On October 30, 2026, Kyocera (the “Company”) transferred its chemical business, which manufactures and sells semiconductor-related products, mainly encapsulation materials and pastes, as well as chemical products and composite materials operated in Core Components Business, to Sumitomo Bakelite Co., Ltd (“Sumitomo Bakelite”) (the “Transfer”). The Transfer was effected by establishing a new company (the “Newly Established Company”) to which the chemical business (including the chemical business operated by Kyocera (Wuxi) Electronic Materials Co., Ltd., of which the Company owns all of the outstanding shares) would be transferred by way of an absorption- type company split and transferring all shares of the Newly Established Company to Sumitomo Bakelite. The consideration received is based on 30 billion yen and is subject to price adjustments and other adjustments stipulated in the Share Purchase Agreement. In connection with the Transfer, the Company expects to recognize a gain from sales of business of approximately 15 billion yen. - 18 -