Consolidated(1.2 MB) pdf

Press Release

Consolidated Financial Results for the First Half Ended September 30, 2021

Shin-Etsu Chemical Co., Ltd.	(JP GAAP)
	October 27, 2021

Listing Code: No. 4063 (URL: https://www.shinetsu.co.jp/en/)

Listing Stock Exchange: Tokyo and Nagoya

Representative: Yasuhiko Saitoh (Mr.) Representative Director/President

Personnel to contact: Toshiyuki Kasahara (Mr.) Corporate Officer, General Manager of Finance & Accounting Department Tel: [phone]

Date of the filing of the quarterly consolidated financial statements: November 11, 2021

Date of dividend payment: November 19, 2021

Preparation of supplemental explanatory materials: Yes ("Appendix" is attached.)

Holding of quarterly financial results meeting: Yes (for investment analysts and institutional investors)

Amounts are stated in millions of yen by discarding fractional amounts less than 1 million. Percentage figures indicate increase (decrease) over previous corresponding period.

1. Consolidated Operating Performance for the First Half Ended September 30, 2021

(From April 1, 2021 to September 30, 2021)

(1) Results of consolidated operations																(Millions of yen)
					Net sales		Operating income			Ordinary income			Net income attributable
											to owners of parent
April - September 2021		941,341	32.5%			298,403	61.9%				303,522		57.9%			220,904	57.4%
April - September 2020		710,526	(9.7%)		184,317	(12.5%)			192,243		(11.9%)			140,306	(15.0%)
(Note) Comprehensive	income (Millions of yen)		From April 1, 2021 to September 30, 2021:	318,232 [153.7%]
										From April 1, 2020 to September 30, 2020:	125,435 [(0.5%)]
					Net income		Diluted net income
					per share (yen)		per share (yen)
April - September 2021				531.67					531.19
April - September 2020				337.47					337.35
(2) Consolidated financial position																			(Millions of yen)
					Total assets				Net assets				Stockholders'		Net assets per share
										equity ratio								(yen)
September 30, 2021		3,676,888			3,140,298					83.1%					7,358.44
March 31, 2021		3,380,615			2,886,625					83.2%					6,769.72
(Note) Stockholders' equity (Millions of yen) As of September 30, 2021: 3,056,464		As of March 31, 2021: 2,813,137
2. Cash Dividends
										Cash dividends per share in the fiscal year (yen)
							1st quarter		2nd quarter		3rd quarter		Year-end				Fiscal year
April 2020 - March 2021			-		110.00					-			140.00				250.00
April 2021 - March 2022			-		150.00
April 2021 - March 2022 (forecast)													-			150.00				300.00
(Note) Revision of the latest forecast	of cash dividends: No
3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)																			(Millions of yen)
	Net sales	Operating income		Ordinary income		Net income		Net income
			attributable to		per share
																					owners of parent		(yen)
Fiscal year	1,700,000	13.6%	485,000	23.7%		500,000	23.4%			363,000	23.6%		873.49
(Note) Revision of the latest forecast of consolidated operating performance: No

Forward-looking statements such as the forecast of results of operations made in this document involves risks and uncertainties since they are based on management's assumptions and beliefs in light of the information currently available to it. The reader should be aware that actual results may be materially different from any future results expressed herein due to various factors. Material factors affecting the actual results may include overall economic conditions in which the businesses of our company and our group companies are involved, the relevant market trends and fluctuations in foreign exchange rates of the yen, in particular, the exchange rate between the U.S. dollar and the yen; provided, however, that such factors as may affect results of operations are not limited to those enumerated above.

(Notes)

1. Changes in significant subsidiaries during the first half ended September 30, 2021: No

(Note) This item indicates whether there were changes in significant subsidiaries affecting the scope of consolidation during the first half ended September 30, 2021.

1. Adoption of special accounting methods for presenting quarterly consolidated financial statements: No
2. Changes in accounting policies applied, changes in accounting estimates and retrospective restatement

Changes in accounting policies applied due to revisions of accounting standards: Yes

Changes in accounting policies other than the above: No

Changes in accounting estimates: No

Retrospective restatement: No

(Note) Please see [2. Consolidated Financial Statements (4) Notes to Consolidated Financial Statements, "Changes in Accounting Policies"] on page 14 for further details.

(4) Number of shares outstanding (common stock)

Number of shares outstanding at period end Number of shares of treasury stock at period end

Weighted-average number of shares outstanding over period

September 30, 2021		March 31, 2021
416,662,793	416,662,793
1,294,464	1,115,572
April - September		April - September
2021		2020
415,487,937	415,765,898

(Information regarding quarterly review procedures)

The financial information contained in this report is not subject to quarterly review procedures by independent auditors.

*Notification of phone number change

Following our company's office relocation, our phone number will be changed. (Before November 5) Tel: [phone]

(After November 8) Tel: [phone]

Shin-Etsu Chemical Co., Ltd. (4063)

First Half Ended September 30, 2021

(Attached Documents)

	INDEX
1. Qualitative Information Regarding Quarterly Results...........................................................................	2
(1)	Explanation Regarding the Operating Results .................................................................................	2
(2)	Explanation Regarding Information Relevant to Forecasts such as Consolidated Business
	Forecast ............................................................................................................................................	8
2. Consolidated Financial Statements ........................................................................................................	9
(1)	Consolidated Balance Sheets ...........................................................................................................	9
(2)	Consolidated Statements of Income and Statements of Comprehensive Income ..........................	11
(3)	Consolidated Statements of Cash Flows ........................................................................................	13
(4)	Notes to Consolidated Financial Statements..................................................................................	14
(Notes on Premise of Going Concern).............................................................................................	14
(Notes on Significant Changes in Stockholders' Equity) ................................................................	14
(Changes in Accounting Policies)....................................................................................................	14
(Segment Information).....................................................................................................................	15

(Appendix)
1.	Quarterly Operating Results ...........................................................................................................	17
2.	Capital Expenditures and Depreciation and Amortization .............................................................	18
3.	Other Financial Items (Consolidated) .............................................................................................	19
4.	Comparative Balance Sheets (Consolidated)..................................................................................	19
5.	Cash Dividends per Share ..............................................................................................................	20
6.	Sales by Manufacturing Location for Each Segment .....................................................................	20
7.	Sales by Region ..............................................................................................................................	21
8.	Average Exchange Rate ..................................................................................................................	21
9.	Topics..............................................................................................................................................	22
10.	Capital Investments.........................................................................................................................	23

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Shin-Etsu Chemical Co., Ltd. (4063)

First Half Ended September 30, 2021

1. Qualitative Information Regarding Quarterly Results

(1) Explanation Regarding the Operating Results

During the first half of the fiscal year ending March 31, 2022 (April 1, 2021 to September 30, 2021), the world economy continued to grow steadily, as indicated by the economic growth rate of 5% (GDP growth rate). On the other hand, the major economies appear to be at a crossroads. The International Monetary Fund (IMF) headlined its World Economic Outlook October 2021 "RECOVERY DURING A PANDEMIC - Health Concerns, Supply Disruptions, and Price Disruptions". The Group has carried out its business while responding swiftly to these events. Going forward, we will continue, without prejudgment, to give the utmost priority to the health and safety of our employees, focus on business requirements such as maintaining high operations, ensuring a stable supply, and protecting accounts receivables, and maintain communication with our customers. We will promote the development of valuable products and provide a stable supply of products of unwavering quality.

The business results for the first half of the fiscal year ending March 31, 2022 are as follows:

					(Billions of yen)
		2020	2021		Increase		2021
		Apr - Sep	Apr - Sep	(Decrease)		Apr - Jun	Jul - Sep
Net sales	710.5	941.3		32.5%			434.2	507.1
		230.8
Operating income	184.3	298.4		61.9%			128.8	169.5
		114.1
Ordinary income	192.2	303.5		57.9%			130.8	172.6
		111.3
Net income attributable	140.3	220.9		57.4%			95.7	125.1
to owners of parent		80.6
ROIC (per annum)	16.3%	24.8%		8.5 points
ROE (per annum)	10.4%	15.1%		4.7 points
ROA (per annum)	11.9%	17.2%		5.3 points
Per Share (Yen)
	Net Income	337	532		195
	Cash Dividends	110	150		40

Notes: ・ ROIC: Return on invested capital

Net operating income after tax / (Net assets + Interest-bearingliabilities－Cash)

• ROE: Return (Net Income) on equity

Equity used for this calculation is net assets excluding both share subscription rights and non-controlling interests in consolidated subsidiaries.

• • ROA: Return (Ordinary Income) on total assets.
  • ROIC, ROE and ROA (per annum) are calculated by doubling first-half net operating income after tax, net income and ordinary income, respectively.
• Amounts are stated in billions of yen by discarding fractional amounts less than 0.1 billion on this summary.

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Shin-Etsu Chemical Co., Ltd. (4063)

First Half Ended September 30, 2021

Net Sales and Operating Income by Segment

(Billions of yen)

		Net Sales		Operating Income
	2020	2021	Increase	2020	2021	Increase
	Apr - Sep	Apr - Sep	(Decrease)	Apr - Sep	Apr - Sep	(Decrease)
Infrastructure	220.6	363.9	65.0%	38.1	123.2	3.2 times
Materials	143.3	85.1
Electronics	292.4	335.5	14.7%	105.5	118.7	12.6%
Materials	43.1	13.2
Functional	150.4	188.4	25.3%	33.3	46.4	39.2%
Materials	38.0	13.1
Processing &	47.0	53.3	13.3%	7.2	10.4	44.3%
Specialized Services	6.3	3.2
Total	710.5	941.3	32.5%	184.3	298.4	61.9%
			230.8			114.1

	Processing &			Processing &
	Specialized Services			Specialized Services
	6%			3%
Functional			Functional
	Infrastructure	Materials		Infrastructure
Materials		16%
	Materials		Materials
20%	Net	38%		Operating	41%
	Sales			Income
	941.3			298.4
	Billions of yen			Billions of yen
	Electronics			Electronics
	Materials
			Materials
	36%
			40%

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