Ibiden Co., Ltd. (IBIDF) Q1 2027 Earnings Call Transcript

IBIDEN CO., LTD. Financial Presentation for the 1st quarter Year Ended March 31, 2027 Aug 5, 2026

Event Summary [Company Name]

IBIDEN CO., LTD.

[Company ID]

4062

[Event Language]

JPN

[Event Type]

Financial Presentation

[Event Name]

Financial Presentation for the 1st quarter Year Ended March 31, 2027

[Date]

Aug 5, 2026

[Time]

9:45-10:45 JST (Total: 1 hour, Presentation: 15 minutes, Q&A: 45 minutes)

[Venue]

Webcast

[Number of Speakers]

2

Shinji Miyazaki

Director & Senior Executive Officer

Takehiro Mizutani

Group Manager of Corporate Planning Division, Investor Relations Group

Key Q&A: Financial Presentation for the 1st quarter Year Ended March 31, 2027 <Questioner 1> [Q] Regarding the JPY 26.5 billion profit increase from ASP/product mix on page 5 of the presentation material, could you please provide more details? [A] This is primarily due to ASP factors. Specifically, there are two points. First, in quarterly price negotiations, we are in a situation where it is easier to maintain ASP. Second, against the backdrop of an industry-wide supply shortage, the average price of IC package substrates themselves has risen more than expected. [Q] I understand that the decision-making timing for capacity expansion has been brought forward from "between this fiscal year and next fiscal year" to "by the end of this fiscal year at the latest." Is there any priority in this decision-making? [A] There is no priority. Currently, we are receiving inquiries for large, high-multilayer IC package substrates from all customers. We believe that demand will continue to significantly exceed the industry's supply capacity. We are exploring all possible options. <Questioner 2> [Q] Compared to the beginning of the fiscal year, the forecast for glass cloth supply seems to have improved. What are the main reasons for this improvement? [A] The biggest factor is the increase in the number of suppliers. Previously, there were only two suppliers in Japan and Taiwan, but we now have prospects for using a third and fourth supplier for mass production. Furthermore, a Japanese supplier plans to increase production capacity until the next fiscal year, so we expect material procurement risks to decrease. <Questioner 3> [Q] Regarding requests for price increases for key materials, is it correct to understand that price pass-through is progressing? Also, are there any materials with procurement risks? [A] We are promptly communicating with our customers and passing on price increases. Regarding procurement risk, we believe we are in an advantageous position due to our good relationships with suppliers, but it is not entirely without risk. As competitors will also be making significant investments in the future, we will continue to work on reducing material procurement risks.

[Q] Could you please tell us about the current development status of EMIB-T, its technical difficulties, and the forecast for mass production timing? [A] We understand that one or two other companies are also developing this technology. We have mostly completed the technical establishment phase and are about to enter the yield improvement phase for mass production. So, we believe we are ahead of our competitors. The technical difficulties include the connection of the silicon bridge section and core formation. The Gama plant is scheduled to start sequential operation from the end of FY2027 and contribute to performance from FY2028. However, if there is demand before then, we plan to address it by utilizing existing plants. <Questioner 4> [Q] In this upward revision, how did the increase in AI-related demand affect sales volumes? Also, although the contribution to operating profit from higher sales volumes appears to be limited, did the reallocation of production capacity to CPUs and networking applications lead to an improvement in the product mix? [A] Compared to the forecast at the financial presentation on May 12, demand has increased not only for GPUs but also for switching ICs for AI servers and high-end CPUs. By flexibly utilizing existing production capacity to meet this demand, we aim to improve our product mix and push up ASP. <Questioner 5> [Q] At the financial presentation on May 12, it was mentioned that human resources were a bottleneck in deciding the next investment. Has there been any change compared to three months ago? Also, can we assume that hiring is progressing as expected? [A] For new hires, we are expanding our recruitment efforts for both new graduates and midcareer professionals not only in the Tokai region but nationwide. We are actively approaching universities in the Kanto region and expanding mid-career recruitment channels, working to secure the necessary personnel for the next investment. As for existing human resources, we will gradually reallocate them to new investments while monitoring the progress of Cell 6 and Cell 8 investments.