Shin Etsu Chemical : Consolidated(915 KB) pdf

Press Release

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Shin-Etsu Chemical Co., Ltd.

(JP GAAP)

April 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 annual shareholders' meeting …… June 29, 2022 Date of the filing of the consolidated financial statements …… June 30, 2022

Date of year-end dividend payment

…… June 30, 2022

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

Holding of 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 fiscal year.

1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2022

(From April 1, 2021 to March 31, 2022)

(1) Results of consolidated operations

(Millions of yen)

Net sales	Operating income	Ordinary income	Net income attributable to owners of parent
April 2021 - March 2022	2,074,428 38.6%	676,322 72.4%	694,434 71.4%	500,117 70.3%
April 2020 - March 2021	1,496,906 (3.0%)	392,213 (3.4%)	405,101 (3.1%)	293,732 (6.5%)

(Note) Comprehensive income (Millions of yen) April 2021 - March 2022: 668,238 [154.8% ]

April 2020 - March 2021: 262,230 [(8.6%) ]

Net income per share (yen)	Diluted net income per share (yen)	Ratio of net income to stockholders' equity	Ratio of ordinary income to total assets	Ratio of operating income to net sales
April 2021 - March 2022	1,203.80	1,202.75	16.3%	18.7%	32.6%
April 2020 - March 2021	706.76	706.26	10.7%	12.3%	26.2%

(Note) Equity in earnings (losses) of affiliates (Millions of yen) April 2021 - March 2022: 7,140

April 2020 - March 2021: 5,364

(2) Consolidated financial position

(Millions of yen)

Total assets	Net assets	Stockholders' equity ratio	Net assets per share (yen)
March 31, 2022	4,053,412	3,429,208	82.1%	8,007.24
March 31, 2021	3,380,615	2,886,625	83.2%	6,769.72

(Note) Stockholders' equity (Millions of yen) As of March 31, 2022: 3,326,564

As of March 31, 2021: 2,813,137

(3) Consolidated cash flows

(Millions of yen)

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of fiscal year
April 2021 - March 2022	553,528	(253,723)	(122,504)	1,008,925
April 2020 - March 2021	401,176	(250,719)	(91,123)	801,596

2. Cash Dividends

Cash dividends per share for the fiscal year (yen)	Total annual cash dividend paid (Millions of yen)	Dividend payout ratio	Ratio of dividend payout to net assets
1st quarter	2nd quarter	3rd quarter	Year-end	Fiscal year
April 2020 - March 2021	-	110.00	-	140.00	250.00	103,853	35.4%	3.8%
April 2021 - March 2022	-	150.00	-	250.00	400.00	166,166	33.2%	5.4%

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2023

(From April 1, 2022 to March 31, 2023)

We will promptly make an announcement of the consolidated business and cash dividends forecast as soon as the disclosure of the forecast becomes possible.

(Notes)

• (1) Changes in significant subsidiaries which affected the scope of consolidation during the current fiscal year: No

• (2) Changes of accounting policies applied, changes in accounting estimates and retrospective restatement

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

  Changes of accounting policies other than the above: No

  Changes in accounting estimates: No

  Retrospective restatement: No

  (Note) Please see [3. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements, "Changes in Accounting Policies"] on page 18 for further details.

(3) Number of shares outstanding (common stock)

March 31, 2022

March 31, 2021

Number of shares outstanding at the year end

416,662,793 416,662,793

Number of shares of treasury stock at the year end

1,218,008 1,115,572

April 2021 - March 2022

April 2020 - March 2021

Weighted-average number of shares outstanding over the year

415,449,156

415,602,349

(Reference) Summary of Non-consolidated Financial Results

Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2022

(From April 1, 2021 to March 31, 2022)

(1) Results of non-consolidated operations

(Millions of yen)

Net sales	Operating income	Ordinary income	Net income
April 2021 - March 2022	693,933 (16.3%)	163,042 18.7%	201,241 25.1%	150,831 26.8%
April 2020 - March 2021	829,065 (1.9%)	137,341 (7.0%)	160,800 (3.9%)	118,910 (9.8%)

(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards are applied from the beginning of the fiscal year ending March 31, 2022. Accordingly, we have changed the amount of revenue from gross to net for some transactions with subsidiaries and affiliates which corresponds to agent transactions. As a result, net sales for the fiscal year ended March 31, 2022 decreased compared to the previous fiscal year.

Net income per share (yen)	Diluted net income per share (yen)
April 2021 - March 2022	363.06	362.76
April 2020 - March 2021	286.12	285.92

(2) Non-consolidated financial position

(Millions of yen)

Total assets	Net assets	Stockholders' equity ratio	Net assets per share (yen)
March 31, 2022	1,299,322	883,505	67.8%	2,120.89
March 31, 2021	1,199,772	856,040	71.2%	2,055.94

(Note) Stockholders' equity (Millions of yen) As of March 31, 2022: 881,113 As of March 31, 2021: 854,340

Stockholders' equity used for the calculation of indices is net assets excluding share subscription rights.

(Information regarding audit procedures)

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

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

Fiscal Year Ended March 31, 2022

(Attached Documents)

INDEX

1. Results of Operations and Financial Overview ..................................................................................... 2

(1) Results of Operations and Financial Position Overview .................................................................. 2

(2) Business Prospects ......................................................................................................................... 10

(3) Management Policies ....................................................................................................................... 10

2. Basic Approach to the Selection of Accounting Standards ................................................................. 10

3. Consolidated Financial Statements ...................................................................................................... 11

(1) Consolidated Balance Sheets ......................................................................................................... 11

(2) Consolidated Statements of Income and Statements of Comprehensive Income .......................... 13

(3) Consolidated Statements of Changes in Net Assets ....................................................................... 15

(4) Consolidated Statements of Cash Flows ........................................................................................ 17

(5) Notes to Consolidated Financial Statements .................................................................................. 18

(Notes on Premise of Going Concern) ........................................................................................ 18

(Changes in Accounting Policies) ............................................................................................... 18

(Segment Information) ................................................................................................................ 19

(Per Share Information) .............................................................................................................. 21

(Major Subsequent Events) ......................................................................................................... 21

(Appendix)

• 1. Quarterly Operating Results ......................................................................................................... 22

• 2. Capital Expenditures and Depreciation and Amortization ........................................................... 23

• 3. Other Financial Items (Consolidated) ........................................................................................... 24

• 4. Comparative Balance Sheets (Consolidated) ................................................................................ 24

• 5. Cash Dividends per Share ............................................................................................................ 25

• 6. Sales by Manufacturing Location for Each Segment ................................................................... 25

• 7. Sales by Region ............................................................................................................................ 25

• 8. Assets by Segments ...................................................................................................................... 26

• 9. Average Exchange Rate ............................................................................................................... 26

• 10. Increase Rate of Operating Income ............................................................................................... 26

• 11. Topics ........................................................................................................................................... 27

• 12. Capital Investments ...................................................................................................................... 28

1

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

Fiscal Year Ended March 31, 2022

1. Results of Operations and Financial Overview

(1) Results of Operations and Financial Position Overview

1) General Overview

During the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022), the world economy continued to grow steadily, as indicated by the economic growth rate (GDP growth rate) of over 5%. On the other hand, Russia invaded Ukraine in February 2022, while the major economic zones continued to grapple with the COVID-19 pandemic, supply turmoil, price pressures and other challenges. This world-shattering situation is still going on. The Shin-Etsu Group will continue to respond with alacrity and without prejudgment to changing circumstances. Going forward, we will continue 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 fiscal year ending March 31, 2022 are as follows:

(Billions of yen)

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.

▶ Amounts are stated in billions of yen by discarding fractional amounts less than 0.1 billion on this summary.

2

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

Fiscal Year Ended March 31, 2022

2) Business Segment Overview

Net sales and Operating income by Segment

(Billions of yen)

Net sales	Operating income
Fiscal year 20/4 - 21/3	Fiscal year 21/4 - 22/3	Increase (Decrease)	Fiscal year 20/4 - 21/3	Fiscal year 21/4 - 22/3	Increase (Decrease)
Infrastructure Materials	485.8	857.1	76.4% 371.3	99.6	317.7	3.2 times 218.1
Electronics Materials	595.6	708.9	19.0% 113.3	206.0	244.7	18.8% 38.7
Functional Materials	314.2	395.6	25.9% 81.4	70.7	94.7	34.0% 24.0
Processing & Specialized Services	101.0	112.6	11.4% 11.6	16.3	20.9	28.1% 4.6
Total	1,496.9	2,074.4	38.6% 577.5	392.2	676.3	72.4% 284.1

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