Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 5 , 2026 Tokyo Stock Exchange 6976 https://www.yuden.co.jp/en/ Company name : TAIYO YUDEN CO . , LTD . Listing : Securities code : URL : Representative : Inquiries : Telephone : Katsuya Sase , Representative Director , President and Chief Executive Officer Tomomitsu Fukuda , Director , Senior Executive Operating Officer , Chief of Management Planning Headquarters + 81-3-6757-8310 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes Yes ( for institutional investors and investment analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Profit attributable to Net sales Operating profit Ordinary profit owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 93,897 84,810 10.7 June 30 , 2025 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : Basic earnings per share Three months ended Yen June 30 , 2026 June 30 , 2025 19.82 ( 7.02 ) Diluted earnings per share 4.5 4,818 3,142 53.3 19.4 4,263 256 1,560.4 ( 96.9 ) 2,504 ( 876 ) ¥ 6,431 million [ 1,460.3 % ] ¥ 412 million [ ( 97.6 ) % ] Yen 18.16 ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio As of June 30 , 2026 March 31 , 2026 Millions of yen 616,863 615,536 Millions of yen % 368,259 59.7 344,412 56.0 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 368,259 million ¥ 344,412 million Net assets per share Yen 2,827.24 2,754.19
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 45.00 - 45.00 90.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 45.00 - 45.00 90.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Forecasts of operating results for the period from April 1, 2026 to March 31, 2027 (Percentages indicate changes from same period in the previous fiscal year.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2027 424,000 19.3 45,000 125.0 42,000 74.1 29,000 95.9 219.03 Note: Revisions to the forecast of operating results most recently announced: Yes
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* Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: - Excluded: - (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 135,422,595 shares As of March 31, 2026 130,218,481 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 5,168,217 shares As of March 31, 2026 5,167,907 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 126,375,553 shares Three months ended June 30, 2025 124,733,046 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Forecasts of operating results include a number of assumptions based on information currently available and certain premises which were judged to be rational. Please note that these forecasts may significantly differ from actual results with various factors. * TAIYO YUDEN will post the financial supplementary data on its web-site.
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- 1 - ○Table of contents 1. Qualitative Information Concerning Financial Statements and Other .............................................................................................. - 2 - (1) Consolidated Operating Results .................................................................................................................................................. - 2 - (2) Consolidated Financial Conditions ............................................................................................................................................. - 3 - (3) Forecasts of Consolidated Operating Results .............................................................................................................................. - 3 - 2. Consolidated Financial Statements ................................................................................................................................................... - 4 - (1) Consolidated Balance Sheets ...................................................................................................................................................... - 4 - (2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ............................................. - 6 - Consolidated Statements of Operations ................................................................................................................................... - 6 - Consolidated Statements of Comprehensive Income ............................................................................................................... - 7 - (3) Notes on Consolidated Financial Statements .............................................................................................................................. - 8 - (Notes on Premise of Going Concern) ..................................................................................................................................... - 8 - (Notes in Case of Significant Changes to Shareholders’ Equity) ............................................................................................. - 8 - (Notes on Consolidated Balance Sheets).................................................................................................................................. - 8 - (Notes on Consolidated Statements of Cash Flows) ................................................................................................................ - 8 - (Notes on Segment Information) .............................................................................................................................................. - 8 - (Notes on Significant Subsequent Events) ............................................................................................................................... - 8 - 3. Supplementary Information .............................................................................................................................................................. - 9 - (1) Net Sales by Product Classification ............................................................................................................................................ - 9 -
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- 2 - 1. Qualitative Information Concerning Financial Statements and Other (1) Consolidated Operating Results During the three-month period ended June 30, 2026 (April 1, 2026 to June 30, 2026), the business environment surrounding the TAIYO YUDEN Group (“the Group”) experienced a continued trend of moderate recovery in the global economy despite weaknesses in some regions. As for the future, it will be necessary to monitor the situation in the Middle East, fluctuations in financial and capital market, and other factors. The Group is aiming to increase the proportion of sales in focus markets, primarily automotive and IT infrastructure/industrial equipment to realize growth over the medium to long term. The Group will also produce high-value-added electronic components with a focus on high-end and high-reliability products. In addition to achieving further growth in multilayer ceramic capacitors, the Group’s core business, the Group will also strengthen its inductor business to establish it as a second pillar and build a well-balanced business structure. Moreover, we are continuously expanding our capacity to meet increasing demand. Consolidated net sales for the three-month period ended June 30, 2026 totaled ¥93,897 million, which is an increase of 10.7% compared to the corresponding period of the previous fiscal year. Operating profit was ¥4,818 million, an increase of 53.3% compared to the corresponding period of the previous fiscal year. Ordinary profit was ¥4,263 million, an increase of 1,560.4% compared to the corresponding period of the previous fiscal year. Profit attributable to owners of parent was ¥2,504 million, compared to a loss attributable to owners of parent of ¥876 million in the same period of the previous fiscal year. Net sales, operating profit, ordinary profit, and profit attributable to owners of parent all increased primarily due to higher sales in IT infrastructure/industrial equipment, as well as the impact of foreign exchange. The average foreign currency exchange rate for the three-month period ended June 30, 2026 was US$1: ¥158.8. This is a depreciation of ¥12.62 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥146.18. Net Sales by Product Classification Starting from the three-month period ended June 30, 2026, the former product classification of “Integrated Modules & Devices” is included in the “Others” product classification due to a decline in quantitative materiality. [Capacitors] The capacitor product classification is comprised of multilayer ceramic capacitors, etc. For the three-month period ended June 30, 2026, product sales for use in information equipment, communication equipment, and IT infrastructure/industrial equipment increased year over year. This resulted in a 14.7% increase in sales for this product classification year over year to ¥69,022 million. [Inductors] This product classification is comprised of various inductors including wire-wound inductors and multilayer inductors. In the three-month period ended June 30, 2026, product sales used in communication equipment, automobiles, and IT infrastructure/industrial equipment were higher year over year. As a result, net sales totaled ¥15,934 million, which is an increase of 7.4% compared to the corresponding period of the previous fiscal year. [Others] This product classification is comprised of aluminum electrolytic capacitors and communications devices, etc. For the three-month period ended June 30, 2026, sales of communications devices decreased year over year. This resulted in an 8.5% decrease in sales for this product classification year over year to ¥8,941 million.
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- 3 - (2) Consolidated Financial Conditions Total assets as of June 30, 2026 increased ¥1,327 million to ¥616,863 million compared with the end of the previous fiscal year. Current assets increased ¥6,931 million. This increase in current assets was mainly due to the increase in notes and accounts receivable – trade of ¥3,558 million, merchandise and finished goods of ¥1,858 million, raw materials and supplies of ¥1,393 million, and the decrease in cash and deposits of ¥1,539 million. Non-current assets decreased by ¥5,604 million, primarily due to a decrease of ¥5,452 million in property, plant and equipment. Total liabilities as of June 30, 2026 were ¥248,603 million, a decrease of ¥22,519 million as compared to the balance at March 31, 2026. This was mainly due to the decrease in convertible-bond-type bonds with share acquisition rights of ¥23,083 million, long-term borrowings of ¥12,202 million, and the increase in current portion of long-term borrowings of ¥12,199 million. Net assets as of June 30, 2026 increased ¥23,847 million. This was mainly due to an increase in capital stock resulting from the issuance of new shares caused by the partial exercise of convertible bonds with stock acquisition rights of ¥11,522 million, capital surplus of ¥11,522 million, foreign currency translation adjustment due to foreign exchange effects, including the depreciation of the yen of ¥3,938 million, and a net decrease of ¥3,122 million in retained earnings, reflecting quarterly net income attributable to owners of the parent of ¥2,504 million and dividend payments of ¥5,627 million. (3) Forecasts of Consolidated Operating Results Consolidated operating results forecasts for the year ending March 31, 2027 have been revised as follows (year over year). Year ending March 31, 2027 Net sales 424,000 million yen (19.3% increase) Operating profit 45,000 million yen (125.0% increase) Ordinary profit 42,000 million yen ( 74.1% increase) Profit attributable to owners of parent 29,000 million yen ( 95.9% increase) Based on the financial results for the three-month period ended June 30, 2026, future demand forecasts, and other factors, TAIYO YUDEN CO., LTD. (“the Company”) has revised the full-year consolidated financial results forecasts released as of May 8, 2026 for the fiscal year ending March 31, 2027. Due to the expanding demand for IT infrastructure/industrial equipment, as well as the impact of selling prices, yen depreciation, and other factors, the Company has revised the full-year financial results forecasts for the fiscal year ending March 31, 2027 as shown above. The forecast is based on an average foreign currency exchange rate from the second quarter of the fiscal year onward of US$1: ¥160. *Disclaimer concerning forecasts of operating results: The aforementioned forecasts of results are based on information available as of the date of this report. As a result, forecast information contained in this document may include potential risk and uncertainties. Accordingly, actual results may differ materially from forecasts due to a variety of factors.
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- 4 - 2. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 100,072 98,533 Notes and accounts receivable - trade 86,366 89,924 Merchandise and finished goods 35,121 36,980 Work in process 57,908 57,193 Raw materials and supplies 32,806 34,200 Other 6,415 8,775 Allowance for doubtful accounts (394) (379) Total current assets 318,295 325,227 Non-current assets Property, plant and equipment Buildings and structures 210,344 211,589 Machinery, equipment and vehicles 480,965 487,818 Tools, furniture and fixtures 53,669 54,652 Land 18,295 17,944 Construction in progress 19,649 17,300 Accumulated depreciation (492,956) (504,791) Total property, plant and equipment 289,967 284,515 Intangible assets Other 1,790 1,740 Total intangible assets 1,790 1,740 Investments and other assets Investment securities 20 20 Other 5,546 5,444 Allowance for doubtful accounts (84) (84) Total investments and other assets 5,482 5,380 Total non-current assets 297,240 291,635 Total assets 615,536 616,863
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 26,477 26,658 Short-term borrowings 11,193 11,367 Current portion of long-term borrowings 24,002 36,201 Income taxes payable 2,468 2,067 Provision for bonuses 4,253 2,726 Provision for bonuses for directors (and other officers) 29 10 Other 25,325 27,333 Total current liabilities 93,750 106,365 Non-current liabilities Convertible-bond-type bonds with share acquisition rights 50,813 27,729 Long-term borrowings 85,204 73,001 Provision for retirement benefits for directors (and other officers) 35 37 Retirement benefit liability 7,787 7,989 Other 33,532 33,479 Total non-current liabilities 177,373 142,238 Total liabilities 271,123 248,603 Net assets Shareholders' equity Share capital 33,575 45,097 Capital surplus 49,960 61,483 Retained earnings 225,578 222,455 Treasury shares (12,396) (12,399) Total shareholders' equity 296,717 316,637 Accumulated other comprehensive income Deferred gains or losses on hedges (45) (62) Foreign currency translation adjustment 47,796 51,735 Remeasurements of defined benefit plans (55) (50) Total accumulated other comprehensive income 47,695 51,622 Total net assets 344,412 368,259 Total liabilities and net assets 615,536 616,863
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- 6 - (2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Consolidated Statements of Operations) (Three months ended June 30, 2026) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 84,810 93,897 Cost of sales 66,626 72,502 Gross profit 18,184 21,395 Selling, general and administrative expenses 15,042 16,577 Operating profit 3,142 4,818 Non-operating income Interest income 298 254 Dividend income 0 0 Foreign exchange gains - 268 Subsidy income 61 99 Other 108 79 Total non-operating income 468 701 Non-operating expenses Interest expenses 265 521 Foreign exchange losses 2,981 - Share issuance costs - 160 Depreciation of inactive non-current assets 89 107 Compensation expenses 4 11 Loss on lease contracts - 436 Other 12 18 Total non-operating expenses 3,353 1,256 Ordinary profit 256 4,263 Extraordinary income Gain on sale of non-current assets 228 3 Profit on transition of Directors' compensation plan 64 - Total extraordinary income 293 3 Extraordinary losses Loss on sale and retirement of non-current assets 43 492 Business restructuring expenses 432 - Total extraordinary losses 476 492 Profit before income taxes 73 3,774 Income taxes - current 1,905 1,290 Income taxes - deferred (955) (20) Total income taxes 949 1,270 Profit (loss) (876) 2,504 Profit (loss) attributable to owners of parent (876) 2,504
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- 7 - (Consolidated Statements of Comprehensive Income) (Three months ended June 30, 2026) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) (876) 2,504 Other comprehensive income Deferred gains or losses on hedges (0) (17) Foreign currency translation adjustment 1,376 3,938 Remeasurements of defined benefit plans, net of tax (86) 5 Total other comprehensive income 1,288 3,927 Comprehensive income 412 6,431 Comprehensive income attributable to Comprehensive income attributable to owners of parent 412 6,431
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- 8 - (3) Notes on Consolidated Financial Statements (Notes on Premise of Going Concern) No relevant items to report. (Notes in Case of Significant Changes to Shareholders’ Equity) During the three-month period ended June 30, 2026, capital stock increased by ¥11,522 million and capital reserve increased by ¥11,522 million due to the issuance of new shares resulting from the exercise of a portion of stock acquisition rights attached to Euro-yen denominated convertible bonds with stock acquisition rights due 2030. As a result, as of June 30, 2026, capital stock stood at ¥45,097 million and capital surplus stood at ¥61,483 million. (Notes on Consolidated Balance Sheets) Contingent liabilities At an overseas subsidiary, an employee lawsuit concerning compensation has been filed, and negotiations are being conducted, including regarding the validity of the claims made. As a result, since it is currently difficult to reasonably estimate the financial impact, this has not been reflected in the consolidated financial statements. (Notes on Consolidated Statements of Cash Flows) The Company has not prepared quarterly consolidated statements of cash flows for the three-month period ended June 30, 2026. Depreciation for the three-month period ended June 30, 2026 (including amortization relating to intangible fixed assets) is as follows. (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 To June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 To June 30, 2026) Depreciation 11,432 11,914 (Notes on Segment Information) [Segment information] As the Group has a single business segment, publication of segment information has been omitted. (Notes on Significant Subsequent Events) (Exercise of convertible bonds with stock acquisition rights) With regard to the Euro-yen denominated convertible bonds with stock acquisition rights due 2030, which the Company issued on October 20, 2023, new shares were issued following the conversion of a portion of these bonds through the exercise of stock acquisition rights during the period from the day after the end of the three-month period ended June 30, 2026 through July 31, 2026. An overview is provided below. (1) Number of stock acquisition rights exercised 934 (2) Face value of converted bonds ¥9,340 million (3) Increase in capital stock ¥4,741 million (4) Increase in capital reserve ¥4,741 million (5) Class and number of shares issued Common stock 2,142 thousand shares
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- 9 - 3. Supplementary Information (1) Net Sales by Product Classification Three months ended June 30, 2025 Three months ended June 30, 2026 (From April 1, 2025 (From April 1, 2026 Increase/ (Decrease) Product classification To June 30, 2025) To June 30, 2026) Amount (¥ in million) Share (%) Amount (¥ in million) Share (%) Amount (¥ in million) % Capacitors 60,197 71.0 69,022 73.5 8,824 14.7 Inductors 14,839 17.5 15,934 17.0 1,094 7.4 Others 9,773 11.5 8,941 9.5 (832) (8.5) Total 84,810 100.0 93,897 100.0 9,086 10.7 *Starting from the three-month period ended June 30, 2026, the former product classification of “Integrated Modules & Devices” is included in the “Others” product classification due to a decline in quantitative materiality. In conjunction with this change, ¥3,608 million included in Integrated Modules & Devices in the three-month period ended June 30, 2025 has been reclassified and included in Others.