我们对日经新闻关于股东回报报告的看法

KIOXIA Holdings(285A)| Japan Our Take on the Nikkei Report on Shareholder Returns An announcement on shareholder returns is likely to be made atthe May earnings release or at the IR Day scheduled for around Key Takeaways According to the article, CFO Kawamura stated that the company is discussing a The company plans FY3/27 capex of approximately ¥400bn, in line with our On April 7, the Nikkei published an interview with Kioxia Holdings’ ExecutiveVice President and CFO, Mr. Kawamura:Assuming the article is accurate, the keypoints from his comments are as follows: (1) Shareholder returns: When consideringshare buybacks versus dividends, the company leans toward dividends. It is currentlydiscussing a policy of stable dividend payments. (2) Capex: Kioxia plans around Our viewon shareholder returns:Net interest-bearing debt (including leaseliabilities) stood at approximately ¥1tn as of Dec 2025, but we expect the companyto reach a near net cash position by mid-year. The company has previously stated inits capital allocation policy that it will prioritize achieving a net cash position as Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanley Research. As a result,investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investment Capex:The reported FY3/27 capex plan of approximately ¥400bn is broadly in linewith our estimate (¥422bn), with no major surprises. Although this represents asignificant increase from FY3/26 capex (approximately ¥280bn), the gap relative to For analyst certification and other important disclosures,refer to the Disclosure Section, located at the end of thisreport. Production and R&D structure:At the management policy briefing held in June lastyear, the company indicated that it would expand its front-end production sites inYokkaichi and Kitakami in line with demand (Exhibit 1). While overseas production += Analysts employed by non-U.S. affiliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions oncommunications with a subject company, public appearances Valuation Methodology and Risks KIOXIA Holdings (285A.T) FY3/27e EPS x 9.5: 20% premium to the multiple of other memory makers during marketexpansion phase (8x), which we based on the solid storage demand outlook for AI inferenceand QLC-SSD, as well as favorable NAND supply outkook due to HDD shortages and expecta- Risks to Upside Stronger than expected AI-driven end demand growth, and supply-side adjustment leading to KIOXIA's market share gain in SSD market Risks to Downside Deterioration of end demand, and capacity expansion of Chinese companies leading to pro- Japanese yen appreciation (we estimate one yen appreciation against US$ lowers OP by about Disclosure Section The information and opinions in Morgan Stanley Research were prepared by Morgan Stanley MUFG Securities Co., Ltd. and its affiliates (collectively, "Morgan Stanley").For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Websiteat www.morganstanley.com/eqr/disclosures/webapp/generalresearch, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research For valuation methodology and risks associated with any recommendation, rating or price target referenced in this research report, please contact the Client Support Team as follows: US/Canada+1 800 303-2495; Hong Kong +852 2848-5999; Latin America +1 718 754-5444 (U.S.); London +44 (0)20-7425-8169; Singapore +65 6834-6860; Sydney +61 (0)2-9770-1505; Tokyo +81(0)3-6836-9000. Alternatively you may contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY 10036 USA. Analyst Certification The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will notreceive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Kazuo Yoshikawa, CFA. Global Research Conflict Management Policy Important Regulatory Disclosures on Subject Companies As of March 31, 2026, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research:KIOXIA Holdings, Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities ofKIOXIA Holdings.Within the last 12 months, Morgan Stanley has received compensation for investment banking services from HOYA,KIOXIA Holdings.In the next 3 months, Morgan Stanley expects to receive or