Upgrade: Beneficiary of AI data centre expansion

Research evidence excerpt

Upgrade: Beneficiary of AI data centre expansion

Macquarie Equity Research Kyocera

Key Risks to Investment Thesis Company Description

• Delays in capex for AI servers and data centres. Kyocera is a diversified conglomerate with operations

• Prolonged stagnation in the global macroeconomic spanning materials, components, finished products, and

environment and weaker demand for end applications. solutions. Core Components and Electronic Components

• Intensifying price competition due to the rise of new segments are the primary drivers of mid-term profit

growth. Meanwhile, profitability in non-core businesses has companies and new technologies.

improved through ongoing structural reforms. The company

• Lower profitability and delay of restructuring in the is also strengthening capital efficiency by divesting cross-

solutions business. shareholdings and executing a corresponding share buyback

• Sudden yen appreciation. of ¥500 billion over FY3/27-28.

Kyocera: Sales by segment (FY3/29E) Kyocera: OP by segment (FY3/29E)

Solutions

21%

Core

Solutions Components

38% 38%

Core Components

51%

Electronic

Components

28%

24%

Source: Company data, Macquarie Research, July 2026 Source: Company data, Macquarie Research, July 2026

Kyocera (6971 JP) JPY/(bn) unless otherwise noted

Income Statement Mar FY 2026A 2027E 2028E 2029E Q4/26A Q1/27E Balance Sheet 2026A 2027E 2028E 2029E

Revenue 2,070 2,069 2,205 2,365 548.2 479.7 Cash 455.9 513.2 500.4 618.7

Cost of Goods Sold 1,463 1,432 1,502 1,566 389.2 335.6 Receivables 382.2 460.3 490.3 526.0

Gross Profit 607.6 637.6 702.7 798.7 159.0 144.1 Inventories 522.0 441.5 463.1 482.9

EBITDA 276.3 309.6 350.3 406.0 122.8 71.0 Investments 1,683 1,483 1,483 1,483

Depreciation 158.2 161.3 168.8 166.5 75.3 40.3 Fixed Assets 685.5 710.4 728.9 728.0