3-4, Kandakaji-cho, Chiyoda-ku, Tokyo 101-0045, JapanTEL. +81-3-5297-8530／FAX. +81-3-3256-3073https://www.kokusai-electric.com/

For the next big step in nano-tech

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KOKUSAI ELECTRIC CORPORATION has made its fresh start as a pure play

manufacturer of semiconductor manufacturing systems on June 1, 2018 under the

capital of Kohlberg Kravis Roberts group after splitting from Hitachi Kokusai Electric Inc.

The market conditions of semiconductor are facing a major turning point as the entire

semiconductor industry is experiencing a rapid demand increase by expansion of the

memory market associated with a penetration of Internet of Things (IoT) to the society,

growing demands of data centers and diversi�cation of electric devices, as well as

activation of the device market by arti�cial intelligence (AI), automated driving and

currency mining, etc. The semiconductor equipment industry is also growing to the next

phase along with these changes.

As we start the new company, our mission is to accommodate customers’ needs in the

changing market with the leading-edge technology based on our accumulated

deposition technologies and become an industry leader. We, as an innovative

corporation with the customers’ perspective, are determined to move fast to provide high

quality products and services, and make contribution to highly developed social

infrastructures with our technology.

As always, I look forward to your continued support.

KOKUSAI ELECTRIC Group creates values through dialog and technologies with the aim of building a sustainable society that is safe, comfortable and energetic.

Representative Director, President and Chief Executive Officer

Fumiyuki Kanai

November 1949 Kokusai Electric Co., Ltd. was established

October 2000 Merged with Hitachi Denshi, Ltd. and Yagi Antenna Co., Ltd., and the company name was changed to Hitachi Kokusai Electric Inc.

March 2009 Hitachi Kokusai Electric Inc. became a consolidated subsidiary of Hitachi, Ltd. by way of a tender offer

December 2017 HKE Holdings Co., Ltd. acquired 26% of the shares of Hitachi Kokusai Electric Inc. by way of a public tender

May 2018 Hitachi Kokusai Electric Inc. became a wholly-owned subsidiary of HKE Holdings Co., Ltd.

June 2018 HKE Holdings Co., Ltd. took over the thin-�lm process solutions business of Hitachi Kokusai Electric Inc. by way of absorption-type company split, and the company name was changed to KOKUSAI ELECTRIC CORPORATION

Greetings from the President

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The type and number of required parts varies based on equipment model and speci�cations. At an automated warehouse we store over 15,000 parts obtained from various local business partners.

Procurement

Semiconductors are made by forming circuits on multiple layers of �lms, which are coated on the surface of silicon

substrates (called wafers). This process of forming thin �lms on wafers, called as the thermal process, is the most important

phase of making semiconductors. We, KOKUSAI ELECTRIC, produce semiconductor manufacturing systems that leverages

world-class coating technology such as 10nm microfabrication technology close to the physical limit, delivering to the world’s

top manufacturers. Our semiconductor manufacturing systems enable the increasing high functionality and high performance

of semiconductors.

Using world-class coating technology to produce high-quality semiconductor manufacturing systems

In addition to our underlying technologies, we jo int ly develop next-generat ion high-performance semiconductor technol-ogies with research institutions, and de-velop the coating technology and manu-facturing technology to create them.

Research and development

We implement advanced technologies such as 3DCAD-based design and �uid simula-tions. We make the best possible use of our underlying technologies to design equip-ment tailored to customer needs.

Design

In Class 5000 Cleanrooms, we manufac-ture a wide range of products. We have adopted the Cell Station Production Sys-tem for unit assembly to improve work efficiency, safety and productivity, and to further optimize the production scheme.

Manufacture

We conduct strict product inspections and delivery inspections at every phase. Com-pleted equipment is shipped around the world using environmentally-friendly ship-ping.

Shipment

We visit customer’s fabs, and handle every-thing from equipment installation to assem-bly, wiring, commissioning, and process launch tasks according to customer dead-lines. Roughly 90% of our customers are located abroad, mainly in Asia, so many of our employees are active internationally.

Installation and setup

Main ProductsAdvanced Thermal

Process TechnologyKOKUSAI ELECTRIC is proud to introduce a

novel, next generation deposition technique, Balance Controlled Deposition (BCD®).

The BCD® technique provides lower temperature processing and tighter process control for advanced small geometry devices

while maintaining very high productivity, which can bene�t a wide range of users and process applications.

*BCD is a registered trademark of KOKUSAI ELECTRIC CORPORATION in Japan.

*TSURUGI-C2 and AdvancedAce are registered trademarks of KOKUSAI ELECTRIC CORPORATION. *MARORA and TΛNDUO are registered trademarks of KOKUSAI ELECTRIC CORPORATION.

Excellent Step Coverage

Batch Processing System Single Wafer Processing System

High Quality / High Performance Thermal Process System

TSURUGI-C2®

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AdvancedAce®-300 VERTRONHigh Productivity Batch Thermal Process System

Batch Thermal Process System for 200mm Wafers

MARORA®

Single Wafer Plasma Nitridation / Oxidation SystemTΛNDUO®

Single Wafer Annealing SystemLambda300Single Wafer Ashing System

Strengths of KOKUSAI ELECTRIC

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(as of October 1, 2018)

Headquarters Toyama Technology & Manufacturing Center

President

Corporate Management Division

Strategic Business Planning Division

Global Services Unit

Strategic Service Business Development Division

Global Field Service Engineering Division

Sales Division

Strategic Business Development Unit

Technology Development Division

Volume Manufacturing & Engineering Unit

Volume Equipment Engineering Division

Production Division

Toyama Technology & Manufacturing Center

Orders Revenues Operating Income30,000

25,000

20,000

15,000

10,000

5,000

0

28,133

15,84413,663

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

133,976

91,54490,563

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

(Millions of Yen)(Millions of Yen)

178,906

116,865

81,368

■Fiscal year ended March 31, 2016　■Fiscal year ended March 31, 2017　■Fiscal year ended March 31, 2018Note: The above values are unaudited and for reference purposes only.

　Revenues

Cost of sales

Gross pro�t

SG & A expenses

Operating income

Depreciation and amortization

EBITDA

R & D expenditures

Sales Growth Rate

Operating Margin

R&D / Revenues Ratio

90,56357,17233,39117,54615,8441,82317,6685,4362.9％17.5％6.0％

91,54460,47231,07217,40913,6631,91915,5825,5581.1％14.9％6.1％

133,97685,72448,25220,11928,1332,34930,4825,84846.4％21.0％4.4％

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Headquarters / Main Factories / Group Companies

■ Directors

Fumiyuki Kanai (Representative)

Yuji Kamiya Hiroaki Kondo Eiji Yatagawa Masaki Nakamura

■ Executive Officers

Fumiyuki Kanai President and Chief Executive Officer

Yuji Kamiya Executive Vice President and Executive Officer Responsible for Corporate Management

Unryu Ogawa Senior Vice President and Executive Officer Responsible for Technology Development and New Business Development

Hidehiro Yanagawa Corporate Vice President and Executive Officer Responsible for Product Development, Production and Quality Assurance

■ Corporate Auditors

Morio Murakawa Akira Funae

Directors, Corporate Auditors and Executive Officers

Company Name KOKUSAI ELECTRIC CORPORATION

Date of Establishment February 2, 2017

Headquarters 3-4, Kandakaji-cho, Chiyoda-ku, Tokyo 101-0045, Japan

Representative Fumiyuki Kanai

Paid-in Capital ¥100 million

Fiscal Year-end September 30

Number of Employees 979 (non-consolidated) (as of June 1, 2018) 1,881 (consolidated)

Overview

Corporate Governance Organizagtion

Financial Information (consolidated) Pro�t and Loss Statement (consolidated)

：Organizations required under the Companies Act ：Voluntarily established organizations

Audit

Election / Removal Election / Removal

Election / Removal of Representative Director

Report

Meetings of Shareholders

Corporate Auditors

Directors

Board of Directors

Management Meeting

Executive Of�cers

<Business Execution Organizations>

Note: The above values are unaudited and for reference purposes only.

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1 3-4, Kandakaji-cho, Chiyoda-ku, Tokyo 101-0045, Japan TEL.+81-3-5297-8530

2 2-1, Yasuuchi, Yatsuo-machi, Toyama-shi, Toyama 939-2393, Japan TEL.+81-76-455-9111

■Headquarters / Main Factory

Headquarters

Toyama Technology & Manufacturing Center

■Group Companies (Japan)

Kokusai Electric Semiconductor Service Inc.

3 2-1, Yasuuchi, Yatsuo-machi, Toyama-shi, Toyama 939-2393, Japan TEL.+81-76-454-5931

■Group Companies (Overseas)

Kokusai Semiconductor Equipment Corporation9 2460 North First Street, #290, San Jose, CA 95131, U.S.A. TEL.+1-408-456-2750

〈North America〉

Kokusai Semiconductor Europe GmbH Gruitener Strasse 3, D-40699 Erkrath, Germany TEL.+49-2104-9655-0

Intel. M.S. LCS2-3S, Shderot Ha-Avatz Str. P.O.Box 1000, Kiryat Gat 82109, Israel TEL.+972-8612-3791

Unit H9, Maynooth Business Park, Maynooth, Co. Kildare, Ireland TEL.+353-1-606-8487

〈Europe〉

●Production●Distribution●Service

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5●4●●●

KE Semiconductor Equipment (Shanghai) Co., Ltd.

6 Room ABJ, 22F World Plaza, No.855 Pudong Road South, Pudong New Area, Shanghai 200120, China TEL.+86-21-6888-1166

Kokusai Electric Asia Paci�c Co., Ltd.

7 9F,10F, No.282 Beida Road, Hsin Chu City, Taiwan 300 TEL.+886-3-528-5788

8 31 Tannery Lane, #03-01 HB Centre II, Singapore 347788 TEL.+65-6848-2633

〈Asia〉Kook Je Electric Korea Co., Ltd.

4 (Chaam-dong) 46, 2Gongdan 8-gil, Seobuk-gu, Cheonan-si, Chungnam 31075, Korea TEL.+82-41-559-1705

5 64, Jinwisandan-ro, Jinwi-myeon, Pyeongtaek-si, Gyeonggi-do, 17709, Korea TEL.+82-31-8015-8300

Corporate Data

Fiscal year ended March 31, 2016

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

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