Japan Aviation Electronics Industry (6807) Investor presentation summary

Review of previous medium-term plan

• Growth stagnated and profitability declined significantly from FY2021 to FY2025, with ROE dropping from 9.6% to 5.1%.

• Mobile device sales faced intensified competition and price declines, while automotive and industrial segments saw mixed results.

• Expansion into new products and fields was promoted, but raw material cost surges and market slowdowns impacted results.

• Acquisition of Tooltornix expanded the product portfolio, but oil drilling markets decelerated after FY2023.

• Need for swift decision-making and portfolio transformation to rebuild earnings base was identified.

Medium-term management plan (FY2026–FY2028)

• Aims to optimize resource allocation and build a structure for stable profits and growth.

• Targets ROE of 8% by FY2028 and 10% by FY2030, with improved asset turnover.

• Focus on portfolio transformation, process reforms, and IT investment to enhance efficiency.

• Strengthen R&D, manufacturing, and sales to drive sustainable growth.

Portfolio transformation and business foundation

• Merge User Interface Solutions into Connector business to improve efficiency.

• Prioritize restoring earnings in mobile and automotive, and focus on overseas growth for industrial & infrastructure.

• Strengthen aviation & space as a core business.

• Optimize procurement and equipment development, leveraging IT for cost reduction.

• Enhance R&D and manufacturing by leveraging Kyocera Group assets.