Sumco : Quarterly Securities Report for Q2 FY2021

Quarterly Securities Report

(As required by Article 24-4-7, paragraph 1, of the Financial

Instruments and Exchange Act)

For the second quarter of the fiscal year ending December 31, 2021

(April 1, 2021-June 30, 2021)

SUMCO Corporation

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

	Table of Contents
		Page
Cover .............................................................................................................................................................................
Section 1: Corporate Information................................................................................................................................	1
I. Overview of the Company ..........................................................................................................................	1
1.	Trends in major management indicators...................................................................................................	1
2.	Scope of business......................................................................................................................................	1
II.	State of Business .........................................................................................................................................	2
1.	Business and other risks............................................................................................................................	2
2.	Management analysis of financial position, business results, and cash flow............................................	2
3.	Important business contracts, etc. .............................................................................................................	3
III.	Status of the Reporting Company ...............................................................................................................	4
1.	Shares .......................................................................................................................................................	4
	(1) Total number of shares, etc...............................................................................................................	4
	(2) Share options, etc..............................................................................................................................	4
	(3) Conversion of moving strike convertible bonds, etc. .......................................................................	4
	(4) Trends in total number of shares issued, changes in capital stock, etc. ............................................	4
	(5) Major shareholders ...........................................................................................................................	5
	(6) Voting rights .....................................................................................................................................	6
2.	Directors ...................................................................................................................................................	7
IV.	Accounting ..................................................................................................................................................	8
1.	Quarterly consolidated financial statements .............................................................................................	9
	(1) Consolidated balance sheet...............................................................................................................	9
	(2) Consolidated statement of income and consolidated statement of comprehensive income..............	11
	Consolidated statement of income..................................................................................................	11
	Consolidated statement of comprehensive income.........................................................................	12
	(3) Consolidated statement of cash flows.............................................................................................	13
2.	Others .....................................................................................................................................................	17
Section 2: Information about Guarantors of the Reporting Company.......................................................................	18

Cover

Submitted document:	Quarterly securities report
Relevant legislation:	Article 24-4-7, paragraph 1, of the Financial Instruments and Exchange
	Act
Submitted to:	Director-General, Kanto Local Finance Bureau
Date of submission:	August 12, 2021
Quarterly accounting period:	Second quarter of fiscal year ending December 31, 2021 (April 1, 2021-
	June 30, 2021)
Company name (English):	SUMCO Corporation
Representative's name and title:	Mayuki Hashimoto, Representative Director, CEO & Chairman of the
	Board
Location of head office:	1-2-1 Shibaura, Minato-ku, Tokyo
Telephone:	[phone]
Administrative contact:	Hiroshi Itoh, General Manager, Accounting & Budget Control
	Department, Corporate Strategy Division
Nearest contact address:	1-2-1 Shibaura, Minato-ku, Tokyo
Telephone:	[phone]
Administrative contact:	Hiroshi Itoh, General Manager, Accounting & Budget Control
	Department, Corporate Strategy Division
Place for public inspection:	Tokyo Stock Exchange, Inc.
	(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

Section 1: Corporate Information

I. Overview of the Company

1. Trends in major management indicators

Term		2Q-2020	2Q-2021	FY2020 (12 months)
	(6 months)	(6 months)
Accounting period		January 1, 2020	January 1, 2021	January 1, 2020
	to June 30, 2020	to June 30, 2021	to December 31, 2020
Net sales	(¥million)	147,142	157,778	291,333
Ordinary income	(¥million)	22,650	20,964	35,650
Net income attributable to	(¥million)	16,821	16,373	25,505
owners of the parent
Comprehensive income	(¥million)	18,706	25,850	27,965
Equity	(¥million)	350,919	373,878	355,003
Total assets	(¥million)	592,637	609,931	593,443
Net income per share	(¥)	57.62	56.36	87.48
Diluted net income per share	(¥)	－	－	－
Shareholders' equity ratio	(%)	52.8	54.3	53.1
Net cash provided by (used
in) operating activities	(¥million)	40,522	46,404	84,188
Net cash provided by (used
in) investing activities	(¥million)	(31,070)	(31,628)	(55,193)
Net cash provided by (used
in) financing activities	(¥million)	(6,209)	(9,670)	(16,236)
Cash and cash equivalents at	(¥million)	73,149	90,450	81,864
end of period
Term		2Q-2020	2Q-2021
	(3 months)	(3 months)
Accounting period		April 1, 2020	April 1, 2021
	to June 30, 2020	to June 30, 2021
Net income per share	(¥)	28.61	31.01

Notes: 1. Since the Company publishes quarterly consolidated financial statements, trends in major management indicators are not shown for the reporting company.

1. Net sales do not include consumption tax or other taxes collected.
2. Diluted net income per share is not described since dilutive shares did not exist.

2. Scope of business

In the second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021), there were no significant changes in the scope of business of the Group (the Company and its affiliates), and no changes in the Company's major affiliates.

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II. State of Business

1. Business and other risks

In the second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021), no new business and other risks emerged.

There were no significant changes in the business and other risks described in the annual securities report for the fiscal year 2020.

2. Management analysis of financial position, business results, and cash flow

1. Financial Position and Business Results Status

1. Business results
   During the second quarter of fiscal year 2021(January 1, 2021-June 30, 2021), supply and demand

continued to be tight for 300 mm semiconductor wafers for logic, 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 and demand tightness continued, 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 second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021), the Group registered consolidated net sales of ¥157,778 million (up 7.2% year on year), operating income of ¥21,720 million (down 6.3% year on year), ordinary income of ¥20,964 million (down 7.4% year on year), and quarterly net income attributable to owners of the parent of ¥16,373 million (down 2.7% year on year).

Segment information is not described since the Group has only one segment.

1. Financial Position

At the end of the second quarter of fiscal year 2021 (June 30, 2021), total assets were ¥609,931 million (up ¥16,488 million from the end of fiscal year 2020), total liabilities were ¥236,053 million (down ¥2,386 million from the end of fiscal year 2020), and equity was ¥373,878 million (up ¥18,874 million from the end of fiscal year 2020).

1. Cash flows

Cash and cash equivalents at the end of the second quarter of fiscal year 2021 (June 30, 2021) increased ¥8,585 million from the end of fiscal year 2020 to ¥90,450 million. By types, net cash provided by operating activities was ¥46,404 million, net cash used in investing activities was (¥31,628) million, net cash used in financing activities was (¥9,670) million, and foreign currency translation adjustments on cash and cash equivalents came to ¥3,480 million.

Each of the cash flows in the second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021) and the factors affecting them are as follows.

(Cash flows from operating activities)

Net cash provided by operating activities in the second quarter of fiscal year 2021 (January 1, 2021-June 30, 2021) was ¥46,404 million as compared with ¥40,522 million a year earlier. The main factors were income before income taxes of ¥20,964 million and depreciation and amortization of ¥23,052 million.

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