Shin Etsu Polymer : Financial Summary for the third quarter ended December 31, 2022

Consolidated Financial Summary (Japanese Accounting Standards) (For the nine months ended December 31, 2022)

	January 25, 2023
Listed company: Shin-Etsu Polymer Co., Ltd.
Listing code:	No. 7970 (URL https://www.shinpoly.co.jp/en/)
Listing stock exchange:	Tokyo
Representative:	Yoshiaki Ono, President, Chief Executive Officer
Person to contact:	Osamu Kowada, Executive Officer, General Manager of Accounting & Finance Department
	TEL: [phone]

Scheduled date to submit the Quarterly Securities Report:	February 10, 2023
Scheduled date of dividend payout:	-
Supplementary documents for quarterly results:	None
Quarterly results briefing:	None
	(Amounts under a million yen are truncated.)

1. Consolidated Financial Highlights for the First Nine Months of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to December 31, 2022)

1. Consolidated Financial Results (The percentages indicate the rates of increase or decrease compared with the preceding fiscal year.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
April - December 31, 2022	Million yen	%	Million yen	%	Million yen	%	Million yen	%
82,175	19.3	10,750	44.2	11,120	44.2	7,633	35.2
April - December 31, 2021	68,888	23.5	7,456	59.9	7,709	61.1	5,647	62.4

(Note) Comprehensive income (loss): December 31, 2022: ¥15,155 million (89.6%); December 31, 2021: ¥7,994 million (210.8%)

	Basic earnings	Diluted earnings
	per share	per share
April - December 31, 2022	Yen	Yen
94.62	94.14
April - December 31, 2021	69.90	69.68

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of December 31, 2022	143,001	107,166	74.6
As of March 31, 2022	122,577	94,337	76.7

(Reference) Equity capital: December 31, 2022: ¥106,742 million; March 31, 2022: ¥93,995 million

2. Dividends

							Dividend per share
	1st quarter			2nd quarter	3rd quarter
	Yen			Yen	Yen
March 2022	-	12.00		-
March 2023	-	18.00		-
March 2023
(forecast)

(Note) Revisions to dividend forecasts published most recently: None

Year-end	Annual
Yen
Yen
14.00		26.00
18.00		36.00

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(The percentages indicate the year-on-year change.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
							owners of parent	share
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
108,000	16.6	12,000	23.3	12,500	23.4	8,800	39.5	109.18

(Note) Revisions to financial forecasts published most recently: None

* Notes

1. Any changes in important subsidiaries during the nine months ended December 31, 2022: (Any changes in specific
   subsidiaries accompanied by a change in the scope of consolidating): None

Newly added: None,

Eliminated: None

1. Adoption of accounting treatment unique to the preparation of quarterly consolidated financial statements: None
2. Any changes in accounting policies and changes or restatement of accounting estimates

1.	Changes in accounting policies associated with the revision of accounting standards, etc.:	None
2.	Changes in accounting policies other than the above:	None
3.	Changes in accounting estimates:	None
4.	Restatement:	None

(4) Number of shares issued (common stock)
1.	Number of shares issued as of the term end (including treasury shares):	December 2022	82,623,376 shares
		March 2022	82,623,376 shares
2.	Number of treasury shares as of the term end:	December 2022	1,864,251 shares
		March 2022	2,025,709 shares
3.	Average number of shares during the term:	December 2022	80,673,084 shares
		December 2021	80,794,815 shares

The consolidated financial summary is not included in the scope of the quarterly review by certified public accountants or audit corporations.

Statement regarding the proper use of financial forecasts and other special remarks

The forward-looking statements, such as results forecasts, included in this document are based on information currently available to the Company and certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially, depending on a range of factors.

Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the nine months ended December 31, 2022)

Accompanying Materials - Contents
1. Qualitative Information on Consolidated Results, etc. for the Nine-Month Period Ended
December 31, 2022	2
(1)	Qualitative Information on Consolidated Results	2
(2)	Explanation of Information on Future Forecasts Such as Consolidated Financial Forecasts	3
2. Consolidated Quarterly Financial Statements and Key Notes	4
(1)	Consolidated Balance Sheet	4
(2)	Consolidated Statements of Income and Consolidated Statement of Comprehensive Income	6
(3)	Explanatory Notes to Consolidated Financial Statements	8
	(Notes on the Premise of a Going Concern)	8
	(Notes on Significant Changes in Shareholders' Equity (if any))	8
	(Segment Information)	8

- 1 -

Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the nine months ended December 31, 2022)

1. Qualitative Information on Consolidated Results, etc. for the Nine-Month Period Ended December 31, 2022

(1) Qualitative Information on Consolidated Results

During the nine-month period ended December 31, 2022, the global economy was recovering, with social activities and movements of people increasing at the stage of living with COVID-19. However, the economic recovery slowed due to surging energy prices and rapid hikes in interest rates. In the United States, the economy picked up, reflecting an increase in employment and a rise in income. However, the risk of an economic slowdown increased following a series of interest rate increases designed to control inflation. In Europe, concern remained over energy supply and the economic recovery was slow. In Asia, production and consumption were sluggish in China due to continued strict restrictions on the movement of people. In India and ASEAN countries, however, economies recovered to their pre-COVID-19 levels.

In the Japanese economy, the pace of recovery in production slowed due to surging resources prices. However, corporate capital expenditure recovered and consumer spending picked up moderately. The Group's business environment remained favorable overall, thanks to continued strong demand in the semiconductor industry and an increase in demand in the automotive-related industry.

In this operating environment, the Group continued to focus its sales activities on boosting sales of both key products and new businesses in Japan and overseas, to expand the production/supply systems as well.

As a result, consolidated net sales stood at ¥82,175 million (up 19.3% year on year). Operating profit amounted to ¥10,750 million (up 44.2% year on year), ordinary profit was ¥11,120 million (up 44.2% year on year), and profit attributable to owners of parent stood at ¥7,633 million (up 35.2% year on year) for the nine months under review.

Consolidated results by segment are as follows.

1) Electronic Devices segment

In the Electronic Devices segment, overall sales were higher than the year-ago level, reflecting an increase in shipments of automotive input devices chiefly due to an easing of shortages of procurable parts in the automotive industry and the impact of exchange rates.

Overall sales for input devices grew, owing to increased shipments of automotive key switches and strong shipments of touchpads for slim notebook personal computers.

Overall sales for display-related products remained flat from a year ago, reflecting strong shipments of view/light path control film (VCF) and sluggish shipments of LCD connectors.

Sales for component-related products grew, reflecting strong shipments of in-vehicle silicone molded products and automotive windshield wipers, despite a significant decline in shipments of electronic-part testing connectors. As a result, segment sales stood at ¥18,725 million (up 12.5% year on year) and operating profit was ¥1,439 million (up 42.9% year on year).

2) Precision Molding Products segment

In the Precision Molding Products segment, overall sales far surpassed the year-ago level, reflecting continued strength in shipments of semiconductor-related containers, office automation equipment parts, and silicon rubber molded products, coupled partly with the impact of exchange rates.

Overall sales for semiconductor-related containers grew sharply, reflecting strong shipments of 300-mm wafer containers and other products.

Sales of office automation equipment increased significantly due to the recovery in shipments of rollers for laser printers, which are mainstay products.

Sales of carrier tape-related products decreased. Shipments of carrier tapes for micro electronic parts saw sluggish growth.

Sales of silicone rubber molded products rose significantly overall, reflecting a recovery in sales of mainstay medical equipment due to the normalization of medical services in the living-with-COVID-19 condition.

As a result, segment sales stood at ¥38,404 million (up 23.5% year on year) and operating profit was ¥8,195 million (up 47.6% year on year).

- 2 -

Shin-Etsu Polymer Co., Ltd. (7970) Financial Summary (For the nine months ended December 31, 2022)

3) Housing & Living Materials segment

In the Housing & Living Materials segment, the Company revised sales prices and carried out M&A in the extremely difficult market environment for PVC products. Overall sales for the segment rose significantly from a year earlier.

Sales of packing materials such as wrapping films increased significantly, reflecting the consolidation of Kitche Nista Co., Ltd.

Shipments of PVC pipes and related products were sluggish, but sales climbed due to price revisions.

Sales of functional compounds rose significantly because shipments to new customers expanded and demand for applications in robot cables for industrial machinery remained strong.

Overall sales for exterior materials remained at the year-earlier level, despite sluggish growth in demand, due to revisions to sales prices.

Sales for conductive polymer rose due to strong demand for automotive electronic component applications, which more than offset sluggish demand for liquid crystal display applications.

As a result, segment sales stood at ¥20,005 million (up 25.5% year on year) and operating profit was ¥905 million (up 35.3% year on year).

4) Others segment

Overall sales were maintained on a par with the year-ago level, reflecting solid orders for the interior construction of commercial facilities and public facilities in the construction business.

As a result, segment sales amounted to ¥5,040 million (down 3.2% year on year) and operating profit was ¥209 million (down 7.5% year on year).

(2) Explanation of Information on Future Forecasts Such as Consolidated Financial Forecasts

Consolidated financial forecasts for the fiscal year ending March 31, 2023 published on July 26, 2022 remain unchanged.

- 3 -