Negative Free Cash Flow Despite OCFPersistent negative free cash flow, driven by heavy investing even after recent CapEx cuts, erodes liquidity and reduced cash balances (cash down JPY20.4bn). Over time this limits financial flexibility, increases dependence on careful cash allocation, and raises risk if cyclical demand weakens further.
Depreciation Drag And Net LossesA sharply higher depreciation burden materially reduces reported profitability and has driven full‑year net losses. Over the medium term, elevated non‑cash charges shrink retained earnings and reported equity cushions, complicating earnings recovery and potentially constraining capital allocation choices if sustained.
200‑mm Secular Decline And Legacy InventoryA structural contraction in 200mm demand and significant legacy inventory force normalization that will depress near‑term volumes and margins. Combined with price pressure from commodity competitors, this reduces revenue resilience in legacy segments and delays margin recovery until mix shifts to leading‑edge wafers.