Slides
Page 1
Earnings Release Conference for First Quarter of Fiscal Year Ending March 2027 TAIYO YUDEN CO . , LTD . Tomomitsu Fukuda Director , Senior Executive Operating Officer TAIYO YUDEN August 5 , 2026
Page 2
© TAIYO YUDEN Net sales1Q FYE Mar 2027Operating profit1Q FYE Mar 2027Key Points of the Financial ResultsQoQ +5%93.9billion yen4.8billion yenCapacitor revenue rose due to increased demand for AI servers and communication equipment.Sales of inductors also grew for IT infrastructure/industrial equipment and automotive.Sales increased, driven primarily by demand for AI servers Demand is expanding for high-value-added, high-end products, including those for AI servers.The book-to-bill (BB) ratio for capacitors in 1Q was at a high level of 1.72.Upward revision of the earnings forecast announced in May2The effect of higher capacity utilization resulting from higher sales volumes contributes to profit growth.The pace of price decreases when comparing the same products improved significantly from the previous quarter.Operating profit increased 39% QoQ, driven by higher capacity utilizationQoQ +39%YoY +125%Earnings forecast FYE Mar 2027 45.0billion yen424.0billion yenYoY +19%Net salesOperating profit
Page 3
Summary of Consolidated Resultsfor First Quarter of Fiscal Year Ending March 2027© TAIYO YUDEN
Page 4
© TAIYO YUDEN4 Summary of Consolidated Results for First Quarter of Fiscal Year Ending March 2027QoQYoYFYE Mar 2027FYE Mar 2026FYE Mar 2026Change (%)ChangeChange (%)Change1Q4Q1Q(¥ in million)5.3 4,69610.79,08693,89789,20184,810Net sales38.6 1,34053.31,6754,8183,4773,142Operating profit-1.2%pt-1.4%pt5.1% 3.9%3.7%Operating margin(1.5)(65)1,560.44,0064,2634,328256Ordinary profit14.9 325-3,3802,5042,179(876)Profit attributable to owners of parent-2.85 yen-12.62 yen158.80 yen155.95 yen146.18 yenYen/USD average exchange rate(9.7)(366)(5.1)(184)3,4013,7673,585R&D expenses(18.8)(1,638)(35.2)(3,846)7,0838,72210,930Capital investment (9.3)(1,224)4.248211,91413,13911,432Depreciation expenses Net sales increased by 5% QoQ driven by higher sales of capacitors and inductors, and operating profit rose 39% QoQ.The impact of currency fluctuations was increases of 6.5 billion in net sales and 2.6 billion in operating profit YoY . The impact was increases of 1.5 billion in net sales and 0.8 billion in operating profit QoQ.
Page 5
© TAIYO YUDEN The effect from capacity utilization was an increase of ¥1.8 billion QoQ. Operating profit increased due to higher sales volume.Inventory* remained at the same level as at the end of the previous quarter because of operational constraints due to the impact of logistical disruptions and other factors.The pace of price decreases when comparing the same products improved significantly from the previous quarter. The pace remained moderate evencompared to the same period of the previous year and the initial forecast. 5 Factors behind Operating Profit for First Quarter of Fiscal Year Ending March 2027 Operating profit(4Q FYE Mar 2026)Operating profit(1Q FYE Mar 2027)Effect from capacity utilizationEffect fromcost reductionsChanges infixed costsCurrencyfluctuationsImpact ofselling price(¥ in billion)(¥ in billion)20.0QoQof whichdepreciation: 0.3YoYOperating profit(1Q FYE Mar 2026)Operating profit(1Q FYE Mar 2027)Effect from capacity utilizationEffect fromcost reductionsChanges infixed costsCurrencyfluctuationsImpact ofselling priceof whichdepreciation: 1.4* Inventory changes are shown on the actual basis excluding exchange rates and the portion with no effect on operating profit.3.51.8(0.8)0.3(0.8)0.84.83.13.4(4.7)0.5(0.1)2.64.8
Page 6
© TAIYO YUDEN6 Financial Results by Product Classification for First Quarter of Fiscal Year Ending March 2027QoQYoYFYE Mar 2027FYE Mar 2026FYE Mar 2026Change (%)ChangeChange (%)Change1Q4Q1Q(¥ in million)5.3 4,69610.7 9,08693,89789,20184,810Net sales7.9 5,05914.7 8,82469,02263,96260,197Capacitors1.5 2407.41,09415,93415,69414,839Inductors(6.3)(603)(8.5)(832)8,9419,5449,773Others Net sales of capacitors rose 8% QoQ, driven by a wide range of applications, including IT infrastructure/industrial equipment, such as AI servers, and communication equipment.Inductor sales declined for information equipment and related products; however, sales increased for IT infrastructure/industrial equipment and automotive applications. As a result, overall sales were up 2% QoQ.The others segment declined 6% QoQ, primarily due to a decline in communication devices.
Page 7
© TAIYO YUDEN The combined composition of sales for use in IT infrastructure/industrial equipment and automotive, which TAIYO YUDEN is focusing on, was 55%, remaining at a high level.For IT infrastructure/industrial equipment, capacitors used in AI servers drove sales growth.Sales of products for use in automobiles declined, mainly owing to sluggish demand in China. 7 Sales by Application ServerBase station communication deviceSecurity cameraIT infrastructure/Industrial equipmentADASMeter clusterECUAutomotiveSmartphoneCommunication equipmentTablet devicePCHDD, SSDInformation equipmentGame consoleSmart watchWireless earphonesConsumer products 4Q3Q2Q1Q4Q3Q2Q1QFYE Mar 2027FYE Mar 2026 0%50%100%
Page 8
© TAIYO YUDEN 8 Orders Received and Order BacklogOrders Received Order Backlog CapacitorsInductorsOthers4Q3Q2Q1Q4Q3Q2Q1QFYE Mar 2027FYE Mar 202657.558.266.984.1118.658.266.984.114.215.618.317.318.815.618.317.3112.845.537.943.163.237.943.163.29.58.78.410.413.37.68.810.45.0 4.03.68.38.83.03.23.19.58.67.16.610.15.35.05.24Q3Q2Q1Q4Q3Q2Q1QFYE Mar 2027FYE Mar 2026 Orders received for capacitors significantly expanded by 41% QoQ. Due to this, there was also a sharp increase in the order backlog, up 78%.Orders for capacitors increased across all applications, primarily products for use in IT infrastructure/industrial equipment, including AI servers, and products for use in information equipment, including memory modules.The book-to-bill (BB) ratio rose to 1.58 for all TAIYO YUDEN products and 1.72 for capacitors. Strong demand continues with the BB ratio significantly exceeding 1 following the 1Q. 1.581.251.070.890.95BB ratio(Company wide)1.721.311.080.880.95BB ratio(Capacitors) (¥ in billion12525150501007509.19.19.69.710.88.17.68.38.7(¥ in billion1252515050100750
Page 9
Forecast of Consolidated Performancefor Fiscal Year Ending March 2027 © TAIYO YUDEN
Page 10
© TAIYO YUDEN Background to the Revision of Consolidated Earnings Forecasts for the FYE March 2027Demand• AI server demand is expected to surpass initial expectations, driven by the accelerating trends toward higher capacitance and increased unit counts of multilayer ceramic capacitors.• Orders received for products for use in information equipment, such as memory modules, were also strong and the capacitor BB ratio in 1Q reached 1.72, signaling robust demand.Sales • Sales of high-value-added, high-end products, particularly those for AI servers, are increasing. The depreciation of the yen also contributed to the upward revision.• The pace of price declines when comparing the same products is expected to be more moderate than initially projected.In addition to the moderation in price decreases in a tight supply and demand environment, we implemented price revisions for some products, mainly products sold through distributors. Costs• In line with the increase in production volume, production-related expenses are expected to be higher than initially anticipated.• The expected cost increases resulting from the surge in resource prices due to the situation in the Middle East, along with the rise in raw material prices and component costs, remain unchanged from the assumptions made at the beginning of the fiscal year.10
Page 11
© TAIYO YUDEN vs Previous forecastYoYFYE Mar 2027FYE Mar 2027FYE Mar 2026Change (%)ChangeChange (%)ChangeForecastPrev. ForecastActual(¥ in million)10.440,00019.368,659424,000384,000355,341Net sales50.015,000125.025,00445,00030,00019,996Operating profit-2.8%pt-5.0%pt10.6%7.8%5.6%Operating margin55.615,00074.117,87142,00027,00024,129Ordinary profit61.111,00095.914,19429,00018,00014,806Profit attributable to owners of parent-9.70 yen-9.71 yen159.70 yen150.00 yen149.99 yenYen/USD average exchange rate0.003.652615,00015,00014,474R&D expenses5.02,0003.91,58442,00040,00040,416Capital investment 4.22,0001.785250,00048,00049,148Depreciation expenses Upward revision of the earnings forecast announced in May, driven by growing demand for high-value-added products for AI servers and other applications, and the impact of yen depreciation.FX sensitivity indicates that a ¥1 fluctuation against the US dollar impacts net sales by ¥1.9 billion and operating profit by ¥0.9 billion.Consolidated Earnings Forecast for Fiscal Year Ending March 2027 11
Page 12
© TAIYO YUDENOperating profit(FYE Mar 2027,Prev. forecast) of whichdepreciation: 1.120.03.58.745.0YoY: The capacity utilization effect because of higher sales volume and improvements in the product mix will contribute significantly to increase in profit. We plan an ¥3.0 billion increase in inventory*.Vs. Previous forecast: The pace of price decreases for the same products is expected to moderate. Additionally, the effect from capacity utilization and the impact of foreign exchange will contribute to the upward revision. 12 Forecast of Factors behind Operating Profit for Fiscal Year Ending March 2027 vs Previous forecastOperating profit(FYE Mar 2027,Forecast)Effect from capacity utilizationEffect fromcost reductionsChanges infixed costsCurrencyfluctuationsImpact ofselling price(¥ in billion)(¥ in billion)YoYOperating profit(FYE Mar 2026)Operating profit(FYE Mar 2027,Forecast)Effect from capacity utilizationEffect fromcost reductionsChanges infixed costsCurrencyfluctuationsImpact ofselling priceof whichdepreciation: 0* Inventory changes are shown on the actual basis excluding exchange rates and the portion with no effect on operating profit.30.03.76.00(3.4)45.0(13.0)36.6(10.9)8.7
Page 13
© TAIYO YUDEN13 Forecast by Product Classification for Fiscal Year Ending March 2027vs Previous forecastYoYFYE Mar 2027FYE Mar 2027FYE Mar 2026Change (%)ChangeChange (%)ChangeForecastPrev. forecastActual(¥ in million)10.440,00019.368,659424,000384,000355,341Net sales12.234,50025.764,729316,500282,000251,771Capacitors10.06,50011.27,18171,50065,00064,319Inductors(2.7)(1,000)(8.3)(3,249)36,00037,00039,249Others Sales forecasts revised upward for capacitors, driven by IT infrastructure/industrial equipment, particularly AI servers, and inductors, led by information equipment. Projected YoY revenue growth: +26% for capacitors and +11% for inductors.Sales forecasts for 'Others' were revised downward, mainly due to aluminum electrolytic capacitor sales falling short of initial projections.
Page 14
© TAIYO YUDEN 2Q FYE Mar 20271Q FYE Mar 2027Forecast of Change RateActual(¥ in million)+15%–+19%93,897Net sales+16%–+20%69,022Capacitors+17%–+21%15,934Inductors+3%–+7%8,941Others160.00 yen158.80 yenYen/USD average exchange rate Capacitor sales are expected to increase across all applications, centered on IT infrastructure/industrial equipment, such as AI servers, and information equipment.Inductor sales are projected to grow due to seasonal demand for smartphones as well as increased demand for information equipment, including memory modules.An increase of ¥1.0 billion in inventories* is planned.Forecast for Second Quarter of Fiscal Year Ending March 2027 14 * Inventory changes are shown on the actual basis excluding exchange rates and the portion with no effect on operating profit.
Page 15
Appendix© TAIYO YUDEN
Page 16
© TAIYO YUDEN We will strive for responsible shareholder returns with a basic policy of 30% payout ratio and 3.5% DOE.We will maintain the forecast dividend per share (DPS) of ¥90 for the fiscal year ending March 31, 2027, with the payout ratio at 41.1% andDOE at 3.7%. 16 Shareholder Return PolicyFYE Mar 2027Dividend Per Share (Forecast)90 yenFYE Mar 2027ForecastFYE Mar 2026FYE Mar 2025FYE Mar 2024FYE Mar 2023FYE Mar 2022909090909080yenDPS 41.176.0482.1134.848.318.5%Payout ratio 3.73.83.83.73.83.7%DOE-00005.0(¥ in billion)Repurchase of treasury stock
Page 17
© TAIYO YUDEN Condensed Statements of OperationsFYE Mar 31, 2026FYE Mar 2025FYE Mar 2024FYE Mar 2023FYE Mar 2022(¥ in million)355,341341,438322,647319,504349,636Net sales4.1%5.8%1.0%(8.6)%16.2%(YoY)251,771232,066205,829208,115230,383Capacitors8.5%12.7%(1.1)%(9.7)%18.0%(YoY)64,31961,54655,56652,86648,925Inductors4.5%10.8%5.1%8.1%17.7%(YoY)39,24947,82561,25158,52270,327Others(17.9)%(21.9)%4.7%(16.8)%9.6%(YoY)81,92871,57065,45687,419124,981Gross profit23.1%21.0%20.3%27.4%35.7%Gross profit margin61,93261,11056,37655,43856,763SG&A17.4%17.9%17.5%17.4%16.2%SG&A ratio19,99610,4599,07931,98068,218Operating profit5.6%3.1%2.8%10.0%19.5%Operating margin91.2%15.2%(71.6)%(53.1)%67.3%(YoY)24,12910,51713,75734,83272,191Ordinary profit14,8062,3288,31723,21654,361Profit attributable to owners of parent4.2%0.7%2.6%7.3%15.5%Profit attributable to owners of parent margin535.9%(72.0)%(64.2)%(57.3)%90.0%(YoY)4.5%0.7%2.6%7.5%20.0%ROE4.1%1.8%2.5%7.1%16.4%ROA3.0%0.5%1.9%5.9%15.7%ROIC149.99 yen152.61 yen143.32 yen134.20 yen111.56 yenYen/USD average exchange rate17
Page 18
© TAIYO YUDEN Condensed Quarterly Statements of OperationsFYE Mar 2027FYE Mar 2026FYE Mar 20251Q4Q3Q2Q1Q4Q3Q2Q1Q(¥ in million)93,89789,20188,51592,81384,81086,71386,86886,71881,138Net sales10.7% 2.9%1.9%7.0%4.5%7.3%0.6%4.7%11.7%(YoY)5.3% 0.8%(4.6)%9.4%(2.2)%(0.2)%0.2%6.9%0.4%(QoQ)69,02263,96261,70265,90860,19760,27758,31758,27855,192Capacitors14.7% 6.1%5.8%13.1%9.1%14.7%7.6%12.2%17.1%(YoY)7.9% 3.7%(6.4)%9.5%(0.1)%3.4%0.1%5.6%5.0%(QoQ)15,93415,69417,13216,65214,83915,10017,47115,96313,011Inductors7.4% 3.9%(1.9)%4.3%14.1%19.4%7.9%1.4%18.5%(YoY)1.5% (8.4)%2.9%12.2%(1.7)%(13.6)%9.5%22.7%2.9%(QoQ)8,9419,5449,68010,2519,77311,33511,07812,47612,934Others(8.5)%(15.8)%(12.6)%(17.8)%(24.4)%(27.5)%(30.8)%(17.5)%(10.8)%(YoY)(6.3)%(1.4)%(5.6)%4.9%(13.8)%2.3%(11.2)%(3.5)%(17.3)%(QoQ)21,39519,31722,95521,47218,18417,86116,34219,88417,482Gross profit22.8% 21.7%25.9%23.1%21.4%20.6%18.8%22.9%21.5%Gross profit margin16,57715,83915,46015,59015,04215,80415,51614,93814,851SG&A17.7% 17.8%17.5%16.8%17.7%18.2%17.9%17.2%18.3%SG&A ratio4,8183,4777,4945,8813,1422,0578254,9452,630Operating profit5.1% 3.9%8.5%6.3%3.7%2.4%1.0%5.7%3.2%Operating margin53.3% 69.0%807.6%18.9%19.4%1.0%(83.1)%81.7%-(YoY)38.6% (53.6)%27.4%87.2%52.7%149.1%(83.3)%88.0%29.2%(QoQ)4,2634,32811,6947,849256(3,167)6,925(1,617)8,377Ordinary profit2,5042,1797,0866,416(876)(5,837)4,598(2,741)6,309Profit attributable to owners of parent2.7% 2.4%8.0%6.9%(1.0)%(6.7)%5.3%(3.2)%7.8%Profit attributable to owners of parent margin--54.1%-----598.6%(YoY)14.9% (69.2)%10.4%-----35.9%(QoQ)158.80 yen155.95 yen151.50 yen146.33 yen146.18 yen154.11 yen149.04 yen154.14 yen153.15 yenYen/USD average exchange rate18
Page 19
© TAIYO YUDEN Condensed Balance Sheets and Statements of Cash FlowsJun. 30, 2026Mar. 31, 2026Mar. 31, 2025Mar. 31, 2024Mar. 31, 2023Mar. 31, 2022(¥ in million)616,863615,536573,188579,686503,462474,522Total assets 98,533100,07278,166102,78387,19792,570Cash and deposits89,92486,36680,54981,19970,37286,585Notes and accounts receivable - trade128,374125,836110,027102,336104,81596,781Inventories284,515289,967286,837273,556220,590184,936Property, plant and equipment 248,603271,123254,017249,587184,984174,235Total liabilities 26,65826,47727,15729,74523,01232,828Notes and accounts payable - trade148,300171,213164,401148,84598,93672,985Interest-bearing liabilities368,259344,412319,171330,098318,478300,286Total net assets59.7%56.0%55.6%56.8%63.1%63.1%Equity-to-asset ratio (49,767)(71,140)(86,235)(46,062)(11,738)19,585Net cash0.400.500.520.450.310.24D/E ratio19FYE Mar 2026FYE Mar 2025FYE Mar 2024FYE Mar 2023FYE Mar 2022(¥ in million)-32,421(29,586)(31,689)(20,977)16,693Free cash flow-58,11733,94151,10439,46067,315Cash flows from operating activities-(25,695)(63,527)(82,793)(60,438)(50,622)Cash flows from investing activities-(6,828)3,04837,64714,485(14,711)Cash flows from financing activitiesNote: The statement of cash flows isnot prepared for the first quarter.
Page 20
© TAIYO YUDEN Forward-looking statementsThis document contains information about the plans, business results, and strategies of TAIYO YUDEN CO., LTD. and the TAIYO YUDEN Group. These forward-looking statements other than historical facts represent judgments made by the Company based on information available at present and are inherently subject to a variety of uncertainties. TAIYO YUDEN cannot provide any guarantee as to the attainment of certain figures in the future. The Company’s actual activities and business results could differ significantly due to changes including, but not limited to, changes in the electronics market in which the Company’s business activities are centered. Readers should not overly rely on the information contained in this document.20