Shin Etsu Chemical : Consolidated(1.8 MB) pdf

Press Release

Consolidated Financial Results for the First Quarter Ended June 30, 2022

Shin-Etsu Chemical Co., Ltd.	(JP GAAP)
	July 27, 2022

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: August 9, 2022

Date of dividend payment: -

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 Quarter Ended June 30, 2022

(From April 1, 2022 to June 30, 2022)

	(1) Results of consolidated operations																			(Millions of yen)
						Net sales		Operating income				Ordinary income	Net income attributable
												to owners of parent
	April - June 2022	656,707	51.2%			249,620	93.8%			262,633	100.7%		184,124	92.3%
	April - June 2021		434,239	20.8%		128,818	41.7%			130,831	37.4%		95,725	38.1%
	(Note) Comprehensive income (Millions of yen)		From April 1, 2022 to June 30, 2022:		305,432 [ 67.1%]
												From April 1, 2021 to June 30, 2021:		182,795 [250.5%]
						Net income	Diluted net income
						per share (yen)		per share (yen)
	April - June 2022				446.28						445.98
	April - June 2021					230.35						230.13
	(2) Consolidated financial position																						(Millions of yen)
						Total assets			Net assets				Stockholders'		Net assets per share
											equity ratio										(yen)
	June 30, 2022	4,173,111			3,532,947					81.8%					8,333.36
	March 31, 2022		4,053,412			3,429,208					82.1%					8,007.24
	(Note) Stockholders' equity (Millions of yen) As of June 30, 2022: 3,414,477 As of March 31, 2022: 3,326,564
	2. Cash Dividends
												Cash dividends per share in the fiscal year (yen)
								1st quarter			2nd quarter	3rd quarter		Year-end						Fiscal year
	April 2021 - March 2022				-	150.00					-				250.00						400.00
	April 2022 - March 2023				-
	April 2022 - March 2023 (forecast)							225.00					-				225.00						450.00
	(Note) Revision of the latest forecast of cash dividends: Yes
	3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2023
	(From April 1, 2022 to March 31, 2023)																								(Millions of yen)
																										Net income		Net income
		Net sales	Operating income		Ordinary income				attributable to		per share
																									owners of parent		(yen)
	Fiscal year	2,550,000		22.9%		825,000		22.0%		840,000		21.0%			588,000		17.6%		1,432.59
	(Note) Revision of the latest forecast of consolidated operating performance:	Yes

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 quarter ended June 30, 2022: No

(Note) This item indicates whether there were changes in significant subsidiaries affecting the scope of consolidation during the first quarter ended June 30, 2022.

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 (3) Notes to Consolidated Financial Statements, "Changes in Accounting Policies"] on page 13 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

June 30, 2022	March 31, 2022
416,662,793	416,662,793
6,926,727	1,218,008
April - June 2022	April - June 2021
412,574,246	415,565,972

(Note) Based on the resolution of the Board of Directors Meeting held on April 27, 2022, we repurchased a total of 5,717,200 shares (99,998 million yen) between April 28 and June 20, 2022. The cancellation of all the shares acquired based on this resolution will be completed on November 8, 2022.

(Information regarding quarterly review procedures)

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

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

First Quarter Ended June 30, 2022

(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)	Notes to Consolidated Financial Statements ..................................................................................	13
	(Notes on Premise of Going Concern).............................................................................................	13
	(Notes on Significant Changes in Stockholders' Equity) ................................................................	13
	(Changes in Accounting Policies)....................................................................................................	13
(Appendix)
1.		Quarterly Operating Results ...........................................................................................................	14
2.		Capital Expenditures and Depreciation and Amortization .............................................................	15
3.		Other Financial Items (Consolidated) .............................................................................................	16
4.		Comparative Balance Sheets (Consolidated) ..................................................................................	16
5.		Comparative Statements of Cash Flows (Consolidated).................................................................	17
6.		Cash Dividends per Share ..............................................................................................................	17
7.		Sales by Manufacturing Location for Each Segment .....................................................................	18
8.		Sales by Region ..............................................................................................................................	18
9.		Average Exchange Rate ..................................................................................................................	18

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

First Quarter Ended June 30, 2022

1. Qualitative Information Regarding Quarterly Results

(1) Explanation Regarding the Operating Results

During the first quarter of the fiscal year ending March 31, 2023 (April 1, 2022 to June 30, 2022), according to the forecasts of the International Monetary Fund and other major international organizations, the world economy seems to be at a crossroads. The main factors are the US economy, which is undergoing a combination of cyclical adjustments and unconditional monetary tightening to curb inflation, and the Chinese economy under the Zero-COVID policy. We intend to be more agile and skillful to respond to changes and fluctuations in the economy and markets. We will maintain close communication with our customers, accelerate the development of products that are valuable to our customers, and continue to provide a stable supply of products of unwavering quality. As a result of these efforts, we maintain our comparative advantage.

The business results for the first quarter of the fiscal year ending March 31,

2023 are as follows:

					(Billions of yen)
	2021		2022		Increase
	April - June		April - June		(Decrease)
Net sales	434.2		656.7		51.2%
		222.5
Operating income	128.8		249.6		93.8%
		120.8
Ordinary income	130.8		262.6		2.0 times
		131.8
Net income attributable to	95.7		184.1		92.3%
owners of parent			88.4
ROIC (per annum)	21.5%		35.4%		13.9 points
ROE (per annum)	13.3%		21.9%		8.6 points
ROA (per annum)	15.2%		25.5%		10.3 points
Net income per share (Yen)	230		446	216

Notes: ・ ROIC: Return on invested capital

Net operating income after tax / (Net assets + Interest-bearing liabilities－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 multiplying net operating income after tax, net income and ordinary income for the first quarter by four, 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 Quarter Ended June 30, 2022

Net Sales and Operating Income by Segment

(Billions of yen)

			Net Sales		Operating Income
	2021	2022		Increase	2021	2022		Increase
	Apr - Jun Apr - Jun (Decrease)	Apr - Jun Apr - Jun (Decrease)
Infrastructure	157.1		289.7		84.4%	44.1		128.5		2.9 times
Materials		132.6	84.4
Electronics	161.1	211.1		31.0%	56.7	77.5	36.6%
Materials		50.0	20.8
Functional	91.6	125.1		36.5%	22.7	36.7	61.6%
Materials		33.5	14.0
Processing &	24.3	30.6		25.9%	5.3	7.0	31.1%
Specialized Services		6.3	1.7
Total	434.2	656.7		51.2%	128.8	249.6	93.8%
					222.5					120.8

	Processing &		Processing &
	Specialized Services
	5%		Specialized Services
		3%
			Functional
Functional			Materials
		15%
Materials
19%	Net		Operating
	Infrastructure
	Sales	Materials	Income	Infrastructure
	44%
	656.7		249.6	Materials
		51%
	Billions of yen		Billions of yen

Electronics	Electronics
Materials
Materials
31%
32%

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