Sumco : Consolidated Financial Results for the Six Months Ended June 30, 2021

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 5, 2021

Consolidated Financial Results

for the Six Months Ended June 30, 2021

(Under Japanese GAAP)

Company name:	SUMCO Corporation
Listing:	Tokyo Stock Exchange (First Section)
Securities code:	3436
URL:	https://www.sumcosi.com
Representative:	Mayuki Hashimoto, Representative Director, CEO & Chairman of the Board
Inquiries:	Hiroshi Shibuya, Executive Officer, General Manager of Public Relations & IR Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 12, 2021
Scheduled date to commence dividend payments:	September 3, 2021
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and security
	analysts)

(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Net sales	Operating income	Ordinary income	Net income attributable
		to owners of the parent
Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Jun. 30, 2021		157,778	7.2	21,720	(6.3)	20,964	(7.4)	16,373	(2.7)
Jun. 30, 2020		147,142	(6.0)	23,170	(30.9)	22,650	(30.8)	16,821	(26.8)
Note: Comprehensive income	For the six months ended Jun. 30, 2021:	¥25,850 million	[ 38.2% ]
		For the six months ended Jun. 30, 2020:	¥18,706 million	[(19.9%)]
	Basic earnings	Diluted earnings
		per share	per share
Six months ended			Yen		Yen
Jun. 30, 2021			56.36		－
Jun. 30, 2020			57.62		－
(2) Consolidated financial position
		Total assets	Net assets	Equity-to-asset ratio
As of		Millions of yen	Millions of yen		%
Jun. 30, 2021			609,931		373,878		54.3
Dec. 31, 2020			593,443		355,003		53.1
Reference: Equity
As of Jun. 30, 2021:	¥331,310 million
As of Dec. 31, 2020:	¥315,114 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended	－	18.00	－		9.00	27.00
Dec. 31, 2020
Fiscal year ending	－	17.00
Dec. 31, 2021
Fiscal year ending
Dec. 31, 2021			－		－	－
(Forecast)

Note: (1) Revisions to the forecast of cash dividends most recently announced: Yes

1. Year-enddividend per share for the fiscal year ending Dec. 31, 2021 is not determined.

3. Consolidated financial forecasts for the nine months ending September 30, 2021 (from January 1, 2021 to September 30, 2021)

(Percentages indicate year-on-year changes.)

								Net income		Basic
	Net sales		Operating income	Ordinary income	attributable to	earnings
								owners of the parent	per share
Nine months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Sep. 30, 2021	243,700		11.4	34,200	14.8	32,900	15.4	25,300		25.2	87.12

Note: (1) Revisions to consolidated business forecasts made during the quarter under review: Yes

1. SUMCO discloses forecasts for the forthcoming quarter only. Please see "(2) Explanation of Business Forecasts" on page 2 of Supplementary Materials.

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
   Newly included: －
   Excluded: －
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: Yes
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: Please see "(3) Notes on Consolidated Financial Statements (Changes in Accounting Policies)" on page 7 of Supplementary Materials.

(4) Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares)

As of Jun. 30, 2021	290,175,139 shares
As of Dec. 31, 2020	291,181,239 shares

(ii) Number of treasury shares at the end of the period

As of Jun. 30, 2021	7,775 shares
As of Dec. 31, 2020	7,715 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended Jun. 30, 2021	290,525,050 shares
Six months ended Jun. 30, 2020	291,921,253 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

Business forecasts and other forward-looking statements contained in this Brief Statement on Consolidated Financial Results are based on information currently available to the Company and on certain assumptions that the Company considers to be reasonable, and do not constitute guarantees of future performance. Actual results may differ significantly from those projected in the forward-looking statements as a result of various factors. Regarding the assumptions underlying business forecasts, please see "(2) Explanation of Business Forecasts" on page 2 of Supplementary Materials.

Year-end dividend per share for the fiscal year ending Dec. 31, 2021 is not determined, and a forecast will be disclosed as soon as the disclosure becomes possible.

Quarterly results briefing for institutional investors and security analysts is scheduled on August 5, 2021. Supplementary materials for quarterly financial results are available in our website before starting the briefing.

SUMCO Corporation: Consolidated Financial Results for the Second Quarter of FY2021

(Supplementary Materials)

Contents

1. Qualitative Information for the Second Quarter of Fiscal Year 2021
2. 1. Explanation of Business Results …………………………………………………………………...... 2
   2. Explanation of Business Forecasts …………………………………………………………………... 2
3. Consolidated Financial Statements and Notes
4. 1. Consolidated Balance Sheet …………………………………………………………………………. 3
   2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ………. 5
   3. Notes on Consolidated Financial Statements

(Notes regarding Going Concern Assumption) ……………………………………………………... 7

(Notes regarding Significant Changes in Shareholders' Equity) ……………………………………. 7

(Changes in Accounting Policies)…………………………………………………………………… 7

1

SUMCO Corporation: Consolidated Financial Results for the Second Quarter of FY2021

1. Qualitative Information for the Second Quarter of Fiscal Year 2021

(1) Explanation of Business Results

During the second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021), supply and demand tightness for 300 mm wafers for logic increased further, with demand being driven by PC, smartphone, and data center. Supply and demand tightness began to affect wafers for memory as well, as NAND followed DRAM in entering a demand recovery phase. For wafers of 200 mm and smaller, likewise, supply continued to fall short of demand, with expanding needs for automotive, consumer product, and industrial.

In this environment, in line with the SUMCO Vision, the SUMCO Group sought to maintain our strong presence with customers through technology development aimed at meeting their needs for leading-edge, distinctive products, while endeavoring also to improve our profitability by cost reduction.

As a result, for the period under review, the Group registered consolidated net sales of 157,778 million yen, operating income of 21,720 million yen, ordinary income of 20,964 million yen, and net income attributable to owners of the parent of 16,373 million yen.

(2) Explanation of Business Forecasts

The market for 300 mm semiconductor silicon wafers in the third quarter is expected to see further supply and demand tightness, as demand grows for memory in addition to logic. Supply and demand tightness is forecast to continue also for wafers of 200 mm and smaller, sustained by strong demand.

In this market environment, the Group will continue seeking to enhance the competitive advantage of our products by developing technologies for state-of-the-art wafers for which continued demand growth is expected, while endeavoring to meet customer needs for these products through productivity improvements making greater use of AI, and through ongoing augmenting of equipment capacity in line with this demand. We will also be paying close attention to changes in the market environment including the impact of COVID-19 and US-China trade friction.

It is difficult for the Group to formulate reasonable business forecasts for the full-year, since the semiconductor industry to which the Group belongs is characterized by drastic and short-term changes in the business environment. Therefore, the Group has adopted the policy of disclosing business forecasts for the forthcoming quarter only.

SUMCO announces its consolidated business forecasts for the nine months ending Sep. 30, 2021 as follows.

Consolidated Business Forecasts for the nine months ending Sep. 30, 2021 (from Jan. 1, 2021 to Sep. 30, 2021)

	Net sales	Operating	Ordinary	Net income	Net income
	attributable to
	income	income	per share
		owners of the parent
	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)	(yen)
Previous Forecasts (A)	－	－	－	－	－
Revised Forecasts (B)	243,700	34,200	32,900	25,300		87.12
Changes (B-A)	－	－	－	－
Rate of changes (%)	－	－	－	－
(Reference)
Results for nine months	218,745	29,794	28,508	20,209		69.29
ended Sep. 30, 2020

(Notes) (1) Business forecasts and other forward-looking statements contained in this Brief Statement on Consolidated Financial Results are based on information currently available to the Company and on certain assumptions that the Company considers to be reasonable, and do not constitute guarantees of future performance. Actual results may differ significantly from those projected in the forward-looking statements as a result of various factors.

1. The above forecasts for the three months ending Sep. 30, 2021 (from Jul. 1, 2021 to Sep. 30, 2021) was made assuming translation rates of one U.S. dollar to 110 yen.

2