Fujimi Incorporated : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

																											February 2, 2022
Company Name:	FUJIMI INCORPORATED
Stock Exchange Listing: Tokyo, Nagoya
Stock Code:	5384	URL	https://www.fujimiinc.co.jp/
Representative:	President and CEO								Keishi Seki
Inquiries:		Deputy Senior General Manager		Toshihiro Kawashima			TEL [phone]
	Finance Division
Scheduled date to file Quarterly Securities Report:						February 4, 2022
Scheduled Date to Commence Dividend Payments:					－
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting::						No
																		(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
(1) Consolidated Operating Results (cumulative)														Percentages indicate year-on-year changes
						Net Sales				Operating Profit		Ordinary Profit	Profit Attributable to
										Owners of Parent
Nine months ended December 31,		Millions of yen	%		Millions of yen	%		Millions of yen	%	Millions of yen	%
			38,654	24.2			9,473		59.5			9,749	64.4		7,270	62.1
2021
Nine months ended December 31,				31,111	8.9			5,939		32.9			5,932	29.7		4,485	34.6
2020
				Earnings per Share Diluted Earnings per
												Share
Nine months ended December 31,						Yen			Yen
					294.09						-
2021
Nine months ended December 31,						181.44						-
2020
(2) Consolidated Financial Position
						Total Assets		Net Assets				Equity Ratio	Net Assets per Share
						Millions of yen			Millions of yen					%			Yen
As of December 31, 2021							71,674								60,353						84.2		2,441.28
As of March 31, 2021									65,773								56,088						85.3		2,268.87
2. Cash Dividends
										Annual Dividends per Share
				1st quarter-end	2nd quarter-end 3rd quarter-end Fiscal year-end		Total
						Yen			Yen		Yen	Yen			Yen
Year ended March 31, 2021				-		50.00				-	65.00			115.00
Year ended March 31, 2022				-		85.00
Year ending March 31, 2022												-				95.00			180.00
(Forecast)
3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
																						Percentages indicate year-on-year changes
		Net Sales			Operating Profit			Ordinary Profit		Profit Attributable to	Earnings per Share
							Owners of Parent
		Millions of yen	%		Millions of yen		% Millions of yen		% Millions of yen	%		Yen
Full Year		51,500		22.7			12,000	57.1					12,200		58.2			9,100		62.3		368.10

4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2021	28,699,500	shares	As of March 31, 2021	28,699,500	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	3,977,290	shares	As of March 31, 2021	3,978,451	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2021	24,721,747	shares	Nine months ended December 31, 2020	24,720,790	shares

FUJIMI INCORPORATED

FY2022 Third Quarter Financial Results

(Supplementary Materials)

Table of Contents

Contents	Page
1.	Overview of Business Results and Financial Position…………………………………………………...	2
	(1)	Overview of Business Results………………………………………..……………………………….	2
	(2)	Overview of Financial Position………………………………………………..…………………..…	3
	(3) Financial Forecast……….………………...………………………………………………………….	3
2.	Consolidated Financial Statements………………………………………...….…………………….…...	4
	(1)	Consolidated Balance Sheets……………………………………………………………….………...	4
	(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…	6

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FUJIMI INCORPORATED

FY2022 Third Quarter Financial Results

1. Overview of Business Results and Financial Position

1. Overview of Business Results

In the first nine months of FY2022 (April 2021 - March 2022), global economic uncertainty increased due to the spread of the novel coronavirus (COVID-19) variant, shortage of shipping containers, soaring energy prices, and the increasing tensions over Ukraine and between the US and China, while the economic activities are seemed to be moving towards normalization in areas where vaccine rollout is progressing for COVID-19. However, despite some supply chain constraints including logistics, the global semiconductor market showed strong demand for advanced semiconductor devices that support the advancement of information and communication due to lifestyle changes, as well as continuous recovering demand of conventional semiconductor devices for automobiles and so forth.

The consolidated results for this period are shown below.

Consolidated Results for the First Nine Months of Fiscal Year 2022:	Millions of JPY
	FY ended	FY ended	Change
	December 31, 2020	December 31, 2021	YoY
Net Sales	31,111	38,654	24.2%
Operating Profit	5,939	9,473	59.5%
Ordinary Profit	5,932	9,749	64.4%
Profit Attributable to Owners of Parent	4,485	7,270	62.1%

Segment Operating Results by Region

(i) Japan

Net sales in Japan increased by 32.8% to JPY 24,087 million compared with the same term in the previous fiscal year. The increase was mainly due to firm demand for products related to semiconductor devices and silicon wafers. Operating profit increased by 53.8% to JPY 8,545 million. The increase was mainly due to sales increase and a favorable product mix.

(ii) North America

Net sales in North America increased by 9.9% to JPY 4,659 million compared with the same term of the previous fiscal year. The increase was mainly due to firm demand for products related to semiconductor devices and silicon wafers. Operating profit increased by 23.1% to JPY 477 million. The increase was mainly due to a favorable product mix.

(iii) Asia

Net sales in Asia increased by 13.8% to JPY 8,646 million compared with the same term in the previous fiscal year. Operating profit increased by 24.6% to JPY 1,994 million. The increases were mainly due to firm demand for CMP products related to advanced logic devices.

(iv) Europe

Net sales in Europe increased by 11.7% to JPY 1,261 million compared with the same term in the previous fiscal year. Operating profit increased by 14.2% to JPY 141 million. The increases were mainly due to firm demand for products related to semiconductor devices.

Segment Operating Results by Application

(i) Silicon Wafers

Regarding products for silicon wafers, net sales of lapping abrasive products increased by 40.6% to JPY 4,694 million compared with the same term in the previous fiscal year and net sales of polishing slurry products increased by 29.2% to JPY 9,069 million. The increases in net sales of both product lines were mainly due to high production levels in the semiconductor industry.

(ii) Semiconductor Devices

Regarding products for the CMP process of semiconductor devices, net sales increased by 23.2% to JPY 18,442 million compared with the same term in the previous fiscal year. The increase in net sales was mainly due to continuous firm demand from both logic and memory devices.

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FUJIMI INCORPORATED

FY2022 Third Quarter Financial Results

(iii) Hard Disks

Regarding products for hard disks, net sales decreased by 8.9% to JPY 1,285 million compared with the same term in the previous fiscal year. The decrease in net sales was mainly due to replacement with Solid State Drives (SSDs) and a customer's production termination because of business withdrawal.

(iv) General Industries

Regarding products for general industries, net sales increased by 20.3% to JPY 3,268 million compared with the same term in the previous fiscal year. The increase in net sales was mainly due to recovery of demand of products for automobiles and industrial machineries.

1. Overview of Financial Position

Summary of Total Assets, Total Liabilities and Net Assets as of December 31, 2021

Total assets increased by JPY 5,901 million to JPY 71,674 million compared with the end of the previous fiscal year mainly due to increases of JPY 3,000 million in securities and of JPY 2,556 million in notes and accounts receivable - trade, offsetting a decrease of JPY 771 million in investment securities.

Total liabilities increased by JPY 1,636 million to JPY 11,321 million compared with the end of the previous fiscal year mainly due to increases of JPY 883 million in accounts payable - trade, of JPY 683 million in other in current liabilities and of JPY 507 million in provision for share-based remuneration, offsetting a decrease of JPY 772 million in provision for bonuses.

Net assets increased by JPY 4,264 million to JPY 60,353 million compared with the end of the previous fiscal year mainly due to increases of JPY 3,515 million in retained earnings, of JPY 1,308 million in capital surplus and of JPY 627 million in foreign currency translation adjustment, offsetting an increase of JPY 1,305 million in treasury shares.

1. Financial Forecast

Net sales and profits for the first nine months ended December 31, 2021 exceeded the earlier forecast primarily due to firm demand for the advanced semiconductor devices and silicon wafers. Financial forecast for the fiscal year ending March 31, 2022 is revised reflecting the recent trends of business performance as well as raw material prices and logistic costs.

The financial forecast for the current fiscal year is shown below.

Financial Forecast for Fiscal Year 2022:		Millions of JPY
	FY ending	Change from FY2021
	March 31, 2022
Net Sales	51,500	22.7%
Operating Profit	12,000	57.1%
Ordinary Profit	12,200	58.2%
Profit Attributable to Owners of Parent	9,100	62.3%

The financial forecast and other forward-looking statements are based on information available to the management at the present time and on certain assumptions judged by the management to be reasonable. Due to various factors, actual performance and financial results in future periods may differ materially from the forecast.

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