Kioxia Hldgs Corp

I am Hanazawa,財務統括責任者. Nice to meet you. First, I would like to explain the highlights of the fourth quarter of the March fiscal year of 2025. Sales revenue fell above the upper limit of guidance. Non-gap operating profits and current net profits fell near the upper limit. The sales revenue of the fourth quarter was 3,471 billion yen. The total market share was 22.9%. The non-GAAP operating profit was 3.75 billion yen. The profit was 16.6 points lower than the total market share, which was 10.8%. The non-GAAP operating profit and the current net profit by the IFRS standard, the annual fixed interest rate is estimated at about 1.1 billion yen. The profit per share is 24.65 yen. The effect of the exchange rate was that the sales revenue was increased by 1.4 billion yen from 1.49 billion yen in the third quarter to 1.54 billion yen in the fourth quarter. The demand for the enterprise was high, but the selling price of the company was reduced by 20% due to the impact of customer stock adjustment for computers and smartphones, and the total market share was reduced by 20%. The total market share was reduced by 10% due to the fact that the demand for smartphones was mainly reduced, and the total market share was reduced by 10%. Next, I will explain the sales performance of each application based on the market. Our application is classified into three categories, Smart Device, SSD and Storage. The other categories include B2C products such as SD memory cards, There are also sales profits for three risks, which are structured by manufacturing joint venture companies. Smart devices for smartphones and tablets. The total sales profit was 7.96 billion yen, which is 32% of the total market share. The total sales profit was 23%. In addition to the continuation of customer stock adjustment, from 5th-generation products to 8th-generation products, which has been affected by the decline in demand and sales. SSD and Storage, which consists of computer and server-based SSD products and memory products, has a total market share of 2,152 billion yen, which is 23% of the total market share, was 62%. With the growth of data centers and the enterprise market, we have increased 33% in the same period last year, and we have greatly contributed to the growth of sales revenue as a whole. For data centers and enterprises, the demand for AI servers is high, mainly due to the decline in sales and stock prices, the sales revenue decreased by half of the total market price. Furthermore, the ratio for data centers and enterprises that focus on the sales revenue of SSD and storage was about 60% and 40% for computers. In addition, the 8th generation The mass-produced goods are in good condition, and we will increase the rate of delivery according to future demand recovery. Next, I would like to explain the cash flow of the fourth quarter. At the end of March 2025, 16.79 billion yen and almost the same level from the end of December. The sales cash flow of the fourth quarter is 1039 billion yen, and while the market is in a difficult situation, we continue to reduce the control and cost of other companies and secure a cash flow of more than 10 billion yen. The gross investment of the investment cash flow is 80.3 billion yen, which is the largest number based on the market volume this year. This is the number including the payment flow from the third market volume due to the fact that the end of December is the bank's business day. In addition to this, there is a net investment of 18.3 billion yen, was minus 5.73 billion yen. The free cash flow in the fourth quarter was a plus of 4.66 billion yen. The free cash flow is now a plus for the fifth quarter in a row and will continue to generate cash. On the other hand, the financial cash flow It was a loss of 5.4 billion yen due to the repayment of the loan. The main investment is in manufacturing equipment for the 8th generation VIX-Flash, which is the latest generation, and in building houses such as Kitakami Factory's second generation. In addition, We are also starting to invest in the equipment of the 10th generation of VIX Flash for the future. I will continue to explain the highlights of the number of sales in March 2025. The sales revenue is a total of 58.5% in total, 7,065 billion yen. The non-gap operating profit has been converted from the previous year's red to black, which is 4,530 billion yen, and has become the highest in the past since 2018, when the company was established. In addition, in addition to the application, the sales revenue in SSD and storage has grown by about twice as much. The improvement in sales in the year of 2024 is due to the recovery of demand from the downturn in the year of 2023, the increase in prices due to the increase in volume, and the effect of cost reduction measures carried out in the year of 2023, and the increase in yen prices. AI-related investments have also been affected, and the sales of SSDs for data centers and enterprises have increased three times over the previous year, and they continue to remain high. The profit per share was 507.9 yen. Next, I would like to explain the cash flow of the second quarter of the March fiscal year of 2025. The year-round free cash flow has achieved its highest in the past due to the implementation of stable equipment investment. In addition to improving the balance sheet by reducing the loss of interest, We are investing in products for AI servers such as R&D. Our sales cash flow is 4,764 billion yen. Our net investment cash flow is 1,730 billion yen. Our financial cash flow is 1,730 billion yen. It was a minus of ¥3,227 billion, which is ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 billion, which is the equivalent of ¥2.99 In addition, we carefully monitor the situation of the market and carry out equipment investment with discipline. The free cash flow is a plus of ¥3,034 billion and is the highest in the past. This allows us to improve the balance sheet that I will explain later. Out of the investment cash flows, gross equipment investment was 22.56 billion yen, which is 13% of the total sales ratio. In addition, net investment of 4.37 billion yen was reduced to 17.3 billion yen. In addition to investment in the latest generation, the 8th generation VIX Flash, In order to grow in the future, we continue to invest in the 7th manufacturing plant of Yokkaichi Factory and the 2nd manufacturing plant of Kitakami Factory in the previous year. We will continue to invest in the 2nd manufacturing plant of Yokkaichi Factory and the 2nd manufacturing plant of Kitakami Factory in the previous year. We will continue to invest in the 2nd manufacturing plant of Yokkaichi Factory and the 2nd manufacturing plant of Kitakami Factory in the previous year. For the equipment investment in March of 2026, there is no need for large-scale vertical investment, and the main investment is to invest in R&D and production capabilities for the demand of AI server such as the 8th generation mix-flash manufacturing device, which will be the main product. In the future, we will carefully assess the situation of the market and demand, and we will carry out the investment with the same ratio. Next, we will look at the balance sheet. At the end of 2024, the total assets will be increased by 5.48 billion yen compared to the end of 2023, which is 2,919.7 billion yen. As for the total assets, in the fourth quarter, As the market has become more difficult, the number of days of sales based on the stock price has increased from 104 days at the end of the first quarter to 112 days at the end of the fourth quarter, but we will continue to produce according to demand and control TANAHOROSHI to a suitable level. As for the interest payment, 7,777 billion yen, and 3,213 billion yen of priority stocks, totaling 1.990 trillion yen. As I explained earlier, by ensuring a solid free cash flow, Yurishi Fusai will be able to make a profit of about 4,340 billion yen has been reduced by 33.5 billion yen. In addition to the improvement in revenue, the share price has increased by 7,377 billion yen through the development of new stocks, from 4,498 billion yen at the end of 2023. This means that the net DE ratio from 277% in 2023 to 126% in 2024, and the leverage ratio is 14.1 to 1.2 times that of in 2023. In this way, we have been able to greatly improve our financial quality for future growth. In the future, we will continue to improve our financial we will continue to invest in equipment with a standard and promote the improvement of the financial system. Next, I will explain the future market outlook and the first quarter guidance of 2025. Let me explain the market outlook. Three points. First of all, the impact on the first quarter due to inflation is expected to remain minimal. We are focusing on the demand for smartphones and computers, and we are also negotiating with customers to reduce the impact of inflation. The stock level of PC customers is starting to stabilize, but it is difficult to predict the recovery pace by the uncertainty of the macro environment in 2025. However, we believe that demand will be promoted due to the following factors for smartphones and PCs. As a factor that will promote demand for smartphones in the future, The next generation of AI smartphones will be expanded, and the Chinese government will continue to support them. As a factor that promotes the demand for computers, Windows 10 support will be completed, and products will be replaced. There will be momentum for AI and other computers. Furthermore, The introduction of AI servers has accelerated demand for enterprise and data centers. The increase in demand for SSDs through AI infrastructure investment by major IT companies and demand for continuous learning of AI is expected to increase demand for theory. Next, I will explain the guidance of the first market period of 2025. Overall, the sales revenue and profits of the previous market period are good. The stock adjustment for PC and smartphone customers is gradually decreasing, but we will continue to improve the stock adjustment the demand for enterprise data centers has been suppressed. On the other hand, the demand for enterprise data centers is still high. The sales revenue is expected to be from 2,950 billion yen to 3,250 billion yen. There is a sign of an increase in sales in some segments, However, as a whole, it is expected that it will decrease due to the influence of the river. The non-gap operating profit is 1.3 billion to 3.5 billion yen, and there is improvement in the product mix, but it is expected to decrease due to the influence of the river due to the increase in yen. The net profit of this period is estimated to be 0 to 1.4 billion yen. Moreover, the impact on the first half of the fiscal year due to inflation is expected to remain minimal. We will continue to make appropriate adjustments to reduce costs and to meet the needs of each product, and take appropriate measures for future needs. Finally, I would like to summarize today's presentation. In March 2025, the sales of data centers and enterprise-oriented SSDs expanded three times over the previous year. In addition, sales increased as a whole, and we were able to achieve the highest sales revenue and net profit in the past few years. In addition, with the loss of cash flow, the investment in growth has been greatly improved, as well as the growth of the financial system. Although there is uncertainty due to the debt, with the expansion of demand for AI applications, the growth of the market has not changed. In the future, we will carefully assess the situation of the future market and demand, and make flexible and rapid decisions on the proportionality of CAPEX and production adjustments, to increase the proportion of the 8th generation RICS-RUSH, which is competitive in terms of demand recovery, and to increase the capacity SSD for AI generation. As for the next 24 years, we were able to recover from the downturn and expand our business in the data center enterprise, and we were able to achieve solid results. We are also in an uncertain environment, but we are also able to develop products that can respond to future AI demand, and we want to lead the business development.