SUMCO : Presentation - Result for Q3 FY2024

Published: 2024-11-08 01:40:12 ET 3436.T

Results for

Third Quarter of FY2024

(Ended September 30, 2024)

November 8, 2024

SUMCO Corporation

（Code：3436）

（LEI：353800SUSRUOM0V6KU92）

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

Notes Regarding the Forecasts

This material is prepared for the purpose of continuous disclosure to general shareholders and investors and will not constitute an offer or solicitation of securities of the Company in any states or jurisdictions.

The estimate, expectation, forecast and other future information is prepared based on the information which is available for the Company as of today and on certain assumptions and qualifications (which includes our subjective judgment) and the actual financial performance or result may be substantially different from such future information contained in the material due to risk factors including domestic and global economic conditions, trend of semiconductor market and foreign exchanges.

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

Contents

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

Summary and

Market Environment

Mayuki Hashimoto

Representative Director,

CEO & Chairman of the Board

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

1-1. Summary

(Billions of Yen)

3Q-2024

Change

Forecast

Actual

Net Sales

100.0

98.4

(1.6)

Operating Profit

7.0

9.1

+2.1

Ordinary Profit

5.0

5.6

+0.6

Profit (Note)

3.5

3.6

+0.1

Exchange Rate (Yen/US$)

150.0

152.6

+2.6

■ 4Q-2024 Consolidated Business Forecast

(Billions of Yen)

3Q-2024

4Q-2024

Change

Actual

Forecast

Net Sales

98.4

97.0

(1.4)

Operating Profit

9.1

5.0

(4.1)

Ordinary Profit

5.6

7.0

+1.4

Profit (Note)

3.6

4.0

+0.4

Exchange Rate (Yen/US$)

152.6

150.0

(2.6)

(Note) Profit attributable to owners of parent

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

1-2. Shareholder Return (Forecast)

FY2019

FY2020

FY2021

FY2022

FY2023

FY2024

(Dec-2019) (Dec-2020) (Dec-2021) (Dec-2022) (Dec-2023)

(Dec-2024)

Dividends per share for

Interim

Year-end

common stocks (Yen)

Total

Dividends payment

Interim

7.3

5.2

4.9

12.6

14.7

5.2

Year-end

2.9

2.6

8.4

15.7

4.5

2.1

(Billions of Yen)

Total

10.2

7.8

13.3

28.3

19.2

7.3

Dividend ratio (%)

Total

31.0%

30.9%

30.2%

40.4%

31.0%

(*1)38.9%

Share Buyback

Amount （Billions of Yen)

Total

3.3

2.5

Ratio (%)

Total

10.0%

9.8%

Total Return Ratio (%)

Total

41.0%

40.7%

30.2%

40.4%

31.0%

38.9%

*1. Subsidy income after tax is excluded from dividends.

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

2-1. Market Environment

■ 3Q-2024

 Volume - 300 mm wafers gradually recovered after bottoming out in 1Q. - Shipments remained slow for 200 mm and smaller wafers.

- Long-term contract prices were honored for both 300 mm and 200 mm wafers.

- 300 mm wafers for leading-edge products remain strong, but those for legacy products will take more time for customers wafer inventory drawdown due to slow recovery in semiconductor demand, so that shipment recovery overall is expected to be delayed.

 Pricing - Long-term contract prices are being maintained for both 300 mm and 200 mm wafers, ■ Outlookwhile spot prices vary widely by region and application.

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

2-2. 200mm Wafer Trend

（Source： SUMCO's estimation)

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

2-3. 300mm Wafer Trend

（Source： SUMCO's estimation)

SUMCO CORPORATION

Nov. 8, 2024

3Q-2024 Results

3. Leading-Edge Logic and Silicon Wafers

１．Semiconductor scaling and structural changes, and wafer technology development

２．Leading-edge epi wafer demand forecast by application

３．Leading-edge epi wafer demand forecast by process node

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

3-1. Roadmap for Leading-Edge Logic Semiconductors

2022

2024

2026

2028

2030

Process

5/4nm

3nm

2nm

14Å

10Å

Node

FinFET

Nano-Sheets/GAA

Structure

FSPDN *1

BSPDN*2

Power & Signal

Signal

Silicon Wafer

Power

Optimization for

Adaptation for

Quality

Fin Structure

Nano-Sheets

BSPDN

3D/CFET Structure

Reduction of Crystal Defects

Technology

Development

Improvement for Flatness

Improvement for Particle Control

Silicon Wafer

Optimization for Wafer Shape

SUMCO CORPORATION

3Q-2024 Results

: Frontside Power Delivery Network

Nov. 8, 2024

: Backside Power Delivery Network

3-2. Leading-Edge Epi Wafer Demand Forecast by Application

( k wafers / month )

1,200

1,000

CAGR : 36%

車Automotive載

800

産Industrial業

民Consumer生

600

スSmartphoneマホ

PCPC/Tablet･タブレット

400

ネNetworkットワーク

サServer,ーバー等etc.

200

2023

2024

2025

2026

2027

(Source: Estimated by SUMCO based on data from various market research firms

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

3-3. Leading-Edge Epi Wafer Demand Forecast by Process Node

( k wafers / month )

1,200

1,000

CAGR : 36%

800

2nm

600

3nm

400

5nm

200

7nm

2023

2024

2025

2026

2027

(Source: Estimated by SUMCO based on data from various market research firms)

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

4-1. Customers' 300mm Wafer Inventory Trend

（Source： SUMCO's estimation)

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

4-2. Customers' 300mm Wafer Inventory (Logic/Memory)

（Source： SUMCO's estimation)

SUMCO CORPORATION

Nov. 8, 2024

3Q-2024 Results

5. 300mm Wafer Global Capacity and Demand FCST

（Source： SUMCO's estimation)

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

3Q-2024

Consolidated Business Result

Shinichi Kubozoe

Representative Director,

Executive Vice President,

Chief Financial Officer

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

6-1. Summary of Consolidated Business Result

(Billions of Yen)

3Q-2023

3Q-2024

Actual (9 months)

Change

(9 months)

Total

Net sales

320.8

93.5

104.7

98.4

296.6

(24.2)

Operating profit

61.8

8.6

12.2

9.1

29.9

(31.9)

Non-operating income and expenses

2.1

0.5

(0.9)

(3.5)

(3.9)

(6.0)

Ordinary profit

63.9

9.1

11.3

5.6

26.0

(37.9)

Extraordinary income

20.1

(20.1)

Income taxes

(18.3)

(3.0)

(2.9)

(1.4)

(7.3)

+11.0

Profit attributable to non-controlling interests

(6.8)

(1.1)

(0.8)

(0.6)

(2.5)

+4.3

Profit attributable to owners of parent

58.9

5.0

7.6

3.6

16.2

(42.7)

Capital expenditure (Acceptance basis)

225.3

76.2

48.5

43.1

167.8

(57.5)

Depreciation

49.7

17.8

18.1

20.2

56.1

+6.4

Operating depriciation

49.7

17.4

17.6

19.8

54.8

+5.1

EBITDA

(*1)

111.7

26.1

29.7

29.0

84.8

(26.9)

Exchange rate (Yen/US$)

(*2)

137.3

147.0

155.2

152.6

151.8

+14.5

Operating margin (%)

19.3%

9.3%

11.6%

9.3%

10.1%

(9.2%)

EBITDA margin (%)

34.8%

27.9%

28.4%

29.4%

28.6%

(6.3%)

ROE (%)

12.9%

3.2%

5.1%

2.5%

3.7%

(9.2%)

Basic Earnings per share (Yen)

168.42

14.46

21.61

10.42

46.50

(121.92)

*1. EBITDA = Operating profit + Operating Depreciation + Amortization of Goodwill

*2. If the yen appreciates by 1 yen against the US dollar, operating profit of SUMCO will decrease by 1.1 billion yen per year

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

6-2. Analysis of Changes in Operating Profit

1. 2Q-2024 Actual → 3Q-2024 Actual

(Billions of Yen)

2Q-2024

3Q-2024

Change

Actual

Net Sales

104.7

98.4

(6.3)

Operating Profit

12.2

9.1

(3.1)

Exchange Rate (Yen/US$)

155.2

152.6

(2.6)

2. 3Q-2023 Actual → 3Q-2024 Actual(Billions of Yen)

3Q-2023

3Q-2024

Change

Act (9 months)

Net Sales

320.8

296.6

(24.2)

Operating Profit

61.8

29.9

(31.9)

Exchange Rate (Yen/US$)

137.3

151.8

+14.5

¥31.9 billion

Decrease

¥3.1 billion

Decrease

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

6-3. Balance Sheet and Cash-Flow (Consolidated)

1. Consolidated Balance Sheet

(Billions of Yen)

End of

Change

Dec-2023

Sep-2024

Cash and deposits

156.3

111.9

(44.4)

Notes and accounts receivable

82.8

81.2

(1.6)

Finished goods and WIP

52.0

51.7

(0.3)

Raw materials and supplies

166.3

174.9

+8.6

Tangible and intangible assets

559.6

665.4

+105.8

Deferred tax assets

7.3

6.5

(0.8)

Other assets

48.7

43.0

(5.7)

Total Assets

1,073.0

1,134.6

+61.6

Interest-bearing debt

224.4

339.8

+115.4

Other liabilities

213.1

156.7

(56.4)

Total Liabilities

437.5

496.5

+59.0

Share capital

199.0

Capital surplus

85.2

+0.0

Retained earnings

267.7

274.1

+6.4

Non-controlling interests etc.

83.6

79.8

(3.8)

Total Net Assets

635.5

638.1

+2.6

Equity-to-asset ratio

53.3%

51.0%

(2.3%)

Net assets per share (Yen)

1,636.2

1,654.4

+18.2

D/E ratio (gross)

0.39x

0.59x

+0.20x

D/E ratio (net)

0.12x

0.39x

+0.27x

2. Consolidated Cash-Flow

(Billions of Yen)

3Q-2024

(9months)

Profit before income taxes

26.0

Subtotal

Depreciation

56.1

82.1

Decrease (increase) in inventories

(6.4)

Net cash

Others, net

(22.5)

provided by operating activities

53.2

Capital expenditure (Acceptance basis)

(167.8)

Net cash

Others, net

(33.0)

used in investing activities

(200.8)

Free cash-flow

(147.6)

financing

Dividends paid

(14.6)

Net proceeds from borrowings

117.9

flow

etc.

Cash

activities,

Effect of exchange rate change and others

(0.1)

from

Net increase (decrease) in cash and cash equivalents

(44.4)

SUMCO CORPORATION

3Q-2024 Results

Nov. 8, 2024

Disclaimer

Sumco Corporation published this content on November 08, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 08, 2024 at 06:39:37.176.