First Quarter of FY2022 Financial Results
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First Quarter of FY2022 Financial Results (Three months ended June 30, 2022) Kioxia Holdings Corporation Aug 10, 2022 © 2022 KIOXIA Holdings Corporation. All Rights Reserved.

Disclaimer On April 1, 2017, Toshiba Corporation spun off its memory business into the former Toshiba Memory Corporation (“Former TMC”). On June 1, 2018, Toshiba Corporation sold all of the shares of Former TMC to K.K. Pangea, a special purpose acquisition company formed by a consortium led by Bain Capital Private Equity, LP, and as a result, Former TMC became a wholly-owned subsidiary of K.K. Pangea. On August 1, 2018, K.K. Pangea merged with Former TMC, with K.K. Pangea as the legally surviving entity. On the same date, K.K. Pangea was renamed Toshiba Memory Corporation (“TMC”). On March...

Financial Results Overview1 (in billion yen) Sales Operating Income Margin Net Income Margin Additional detail (included in above figures) Based on the audited consolidated financial statements prepared under IFRS EBITDA is operating profit plus depreciation and amortization, which is indicative of our cash-based profitability. EBITDA for FY22 Q1 is calculated as follows: operating profit of 85.1 billion yen plus depreciation and amortization of 103.7 billion yen totaling 188.8 billion yen. 3 Amount of financial impact of production issues on operating profit (loss) due to the contamination...

Highlights (1/3) Recent Sales Trends FY21 Q4 Low-single-digit-% increase Low-teens % increase • Kioxia Q1 sales decreased quarter over quarter as shipments were impacted by both the previously disclosed FY21 Q4 fab contamination event, and by reduced output from our assembly/test/logistics providers due to COVID-19. Normal operations have resumed. • Operating income increased as expenses from the previous quarter, such as those related to the contamination event and annual property tax, did not repeat. Operating Income also benefited from the strengthening of the dollar. • ASP, on a Yen...

Highlights (2/3) New Products and Technology • Introduced industry’s first1 XFM DEVICE Ver.1.0-compliant removable storage device (XFMEXPRESS™ XT2) • Introduced next-generation enterprise SSD (CM7 series) with PCIe® 5.02 technology • Launched the second generation of XL-FLASH™ storage class memory (SCM) solution 1. As of June 14, 2022. Kioxia survey. 2. PCIe is a registered trademark of PCI-SIG. Japanese government subsidy for Yokkaichi Fab 7 • Kioxia Corporation and the joint ventures with Western Digital Corporation have been approved to receive up to 92.9 billion yen subsidy from the...

Highlights (3/3) Industry/Market Trends and Outlook • Macro-economic pressures including inflation, recession concerns, Russia-Ukraine war, pandemic impacts on the supply chain, etc. have led to a worsening of consumer sentiment over the course of FY22 Q1. NAND demand has weakened specifically in the PC and smartphone segments. • Data center and enterprise SSD demand is expected to remain solid in the longer term horizon as cloud and enterprise IT systems investments continue. In the shorter term, the industry is cautiously monitoring the potential negative impacts on the second half of the...