Sumco : Annual Securities Report for FY2020

Annual Securities Report

(Pursuant to Article 24, Paragraph 1 of the Financial

Instruments and Exchange Act of Japan)

For the Fiscal Year ended December 31, 2020

(January 1, 2020- December 31, 2020)

SUMCO Corporation

1-2-1 Shibaura, Minato-ku, Tokyo

Table of Contents
		Page
Cover
Section 1: Information on the Company....................................................................................................................................	1
I. Overview of the Company ...............................................................................................................................................	1
1.	Trends in major management indicators ...................................................................................................................	1
2.	History ......................................................................................................................................................................	3
3.	Description of business .............................................................................................................................................	5
4.	Status of related companies.......................................................................................................................................	8
5.	Status of employees ..................................................................................................................................................	10
II. State of Business.............................................................................................................................................................	11
1.	Management policies, business environment, issues to address, etc. ........................................................................	11
2.	Business and other risks............................................................................................................................................	13
3.	Management analysis of financial position, business results, and cash flows ...........................................................	17
4.	Important business contracts, etc. .............................................................................................................................	21
5.	R&D activities ..........................................................................................................................................................	21
III. Status of facilities ..........................................................................................................................................................	22
1.	Overview of capital investments, etc. .......................................................................................................................	22
2.	Major facilities ..........................................................................................................................................................	22
3.	Plans for building, retirement, etc. of facilities .........................................................................................................	23
IV. Status of the Reporting Company..................................................................................................................................	24
1.	Shares........................................................................................................................................................................	24
2. Acquisition of treasury stock.....................................................................................................................................	27
3.	Dividend policy.........................................................................................................................................................	28
4.	Corporate governance ...............................................................................................................................................	29
V. Accounting......................................................................................................................................................................	49
1.	Consolidated Financial Statements, etc.....................................................................................................................	50
	(1) Consolidated Financial Statements.......................................................................................................................	50
	(2) Other ....................................................................................................................................................................	84
2.	Non-consolidated financial statements, etc. ..............................................................................................................	85
	(1) Non-consolidated financial statements.................................................................................................................	85
	(2) Components of major assets and liabilities ..........................................................................................................	98
	(3) Other ....................................................................................................................................................................	98
VI. Outline of operational procedures for shares of the Company ......................................................................................	99
VII. Reference Information on the Company......................................................................................................................	100
1.	Information on parent company, etc. of the Company ..............................................................................................	100
2.	Other information......................................................................................................................................................	100
Section 2: Information about Guarantors of the Reporting Company .......................................................................................	101

Cover

Submitted document:

Relevant legislation:

Submitted to:

Date of submission:

Quarterly accounting period:

Company name (English):

Representative's name and title:

Location of head office:

Telephone:

Administrative contact:

Nearest contact address:

Telephone:

Administrative contact:

Place for public inspection:

Annual securities report

Article 24, paragraph 1, of the Financial Instruments and Exchange Act Director-General, Kanto Local Finance Bureau

March 25, 2021

Third quarter of fiscal year ending December 31, 2020 (January 1, 2020- December 31, 2020)

SUMCO Corporation

Mayuki Hashimoto, Representative Director, CEO & Chairman of the Board

1-2-1 Shibaura, Minato-ku, Tokyo [phone]

Hiroshi Itoh, General Manager, Accounting & Budget Control Department, Corporate Strategy Division

1-2-1 Shibaura, Minato-ku, Tokyo [phone]

Hiroshi Itoh, General Manager, Accounting & Budget Control Department, Corporate Strategy Division

Tokyo Stock Exchange, Inc.

(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

Section 1: Information on the Company

I. Overview of the Company

1. Trends in major management indicators

1. Consolidated management indicators

Term		18th term	19th term	20th term	21st term	22nd term
Fiscal year ended		December, 2016	December, 2017	December, 2018	December, 2019	December, 2020
Net sales	(¥ million)	211,361	260,627	325,059	299,460	291,333
Ordinary income	(¥ million)	9,919	36,709	83,068	48,310	35,650
Net income attributable to	(¥ million)	6,588	27,016	58,580	33,112	25,505
owners of the parent
Comprehensive income	(¥ million)	4,122	39,255	63,976	38,701	27,965
Net assets	(¥ million)	242,836	281,623	325,545	341,149	355,003
Total assets	(¥ million)	493,243	530,906	588,250	578,511	593,443
Net assets per share	(¥)	715.46	822.53	971.76	1,030.39	1,082.22
Earnings per share	(¥)	22.46	92.12	199.74	112.90	87.48
Diluted earnings per share	(¥)	－	－	－	－	－
Shareholders' equity ratio	(%)	42.5	45.4	48.4	52.2	53.1
Return on equity	(%)	3.1	12.0	22.3	11.3	8.3
Price‐earnings ratio	(times)	67.23	31.35	6.14	16.17	25.87
Cash flows from operating	(¥ million)	27,322	51,808	93,602	77,664	84,188
activities
Cash flows from investing	(¥ million)	(18,003)	(15,750)	(52,244)	(61,184)	(55,193)
activities
Cash flows from financing	(¥ million)	(9,120)	(7,615)	(35,424)	(24,825)	(16,236)
activities
Cash and cash equivalents	(¥ million)	45,565	74,640	78,900	70,020	81,864
at end of period
Number of employees		7,520	7,711	8,017	8,142	8,199
(Average number of	(Number)
temporary employees not	(358)	(612)	(892)	(824)	(767)
included in the above)

Notes: 1. Net sales do not include consumption taxes.

2. Diluted earnings per share is not provided because dilutive securities did not exist.

- 1 -

1. Managing indicators of the Reporting Company

Term		18th term	19th term	20th term	21st term	22nd term
Fiscal year ended		December, 2016	December, 2017	December, 2018	December, 2019	December, 2020
Net sales	(¥ million)	167,138	205,471	260,551	251,244	242,883
Ordinary income	(¥ million)	2,345	20,926	51,314	46,118	29,701
Net income	(¥ million)	3,667	19,147	42,286	41,962	27,155
Capital stock	(¥ million)	138,718	138,718	138,718	138,718	138,718
Total number of shares
issued
Common share	(shares)	293,285,539	293,285,539	293,285,539	293,285,539	291,181,239
Net assets	(¥ million)	186,010	203,240	231,450	256,696	272,378
Total assets	(¥ million)	436,850	463,577	513,660	508,983	521,514
Net assets per share	(¥)	634.24	693.00	789.18	875.27	935.45
Cash dividends per-share
Common share		10.00	28.00	62.00	35.00	27.00
(Of which, interim	(¥)	(5.00)	(10.00)	(30.00)	(25.00)	(18.00)
dividend per-share)
Earnings per share	(¥)	12.51	65.29	144.19	143.08	93.14
Diluted earnings per share	(¥)	－	－	－	－	－
Shareholders' equity ratio	(%)	42.6	43.8	45.1	50.4	52.2
Return on equity	(%)	2.0	9.8	19.5	17.2	10.3
Price‐earnings ratio	(times)	120.70	44.23	8.51	12.76	24.30
Dividend payout ratio	(%)	79.9	42.9	43.0	24.5	29.0
Number of employees		3,501	3,616	3,855	3,981	4,011
(Average number of	(Number)
temporary employees not	(181)	(303)	(435)	(412)	(432)
included in the above)
Total shareholder return	(%)	164.5	316.7	143.6	212.2	262.4
(Comparative indicator:	(%)	(100.3)	(122.6)	(103.0)	(121.7)	(130.7)
Dividend-included TOPIX)
Highest share price	(¥)	1,618	3,160	3,345	1,950	2,484
Lowest share price	(¥)	590	1,436	1,128	1,116	1,041

Notes: 1. Net sales do not include consumption taxes.

1. Diluted earnings per share is not provided because dilutive securities did not exist.
2. The Company acquired its 2,104,300 common shares between February 19, 2020 and March 19, 2020, and cancelled all of them as of April 10, 2020.
3. The highest and lowest share prices were those recorded in the Tokyo Stock Exchange (First Section).

- 2 -