Brief Statement on Consolidated Financial Results for Q3 FY2021

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.

November 4, 2021

Consolidated Financial Results

for the Nine Months Ended September 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:	November 12, 2021
Scheduled date to commence dividend payments:	－
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 nine months ended September 30, 2021 (from January 1, 2021 to September 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
	Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%
	Sep. 30, 2021		244,463	11.8	36,533	22.6	35,184	23.4		26,979	33.5
	Sep. 30, 2020		218,745	(4.3)	29,794	(29.8)	28,508	(30.8)		20,209	(28.2)
Note: Comprehensive income	For the nine months ended Sep. 30, 2021:	¥39,165 million	[ 78.5% ]
			For the nine months ended Sep. 30, 2020:	¥21,939 million	[(24.4%)]
		Basic earnings	Diluted earnings
			per share	per share
	Nine months ended			Yen		Yen
	Sep. 30, 2021			92.90		－
	Sep. 30, 2020			69.29		－
(2) Consolidated financial position
			Total assets	Net assets	Equity-to-asset ratio
	As of		Millions of yen	Millions of yen		%
	Sep. 30, 2021			619,758		382,271		54.5
	Dec. 31, 2020			593,443		355,003		53.1
Reference: Equity
	As of Sep. 30, 2021:	¥338,068 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						19.00	36.00
	Dec. 31, 2021
	(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: Yes

3. Consolidated financial forecasts for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 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
Fiscal year ending	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Dec. 31, 2021	332,900		14.3	50,500	33.3	47,600	33.5	35,900		40.8	118.61

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 Sep. 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 Sep. 30, 2021	7,835 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)

Nine months ended Sep. 30, 2021	290,404,500 shares
Nine months ended Sep. 30, 2020	291,670,197 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.

Quarterly results briefing for institutional investors and security analysts is scheduled on November 4, 2021. Supplementary materials for quarterly financial results are available in our website before starting the briefing.

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

(Supplementary Materials)

Contents

1. Qualitative Information for the Third 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

(Significant Subsequent events)…………………………………………………………………….. 7

1

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

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

(1) Explanation of Business Results

During the third quarter of fiscal year 2021 (July 1, 2021-September 30, 2021), demand for 300 mm semiconductor wafers for both logic and memory became even stronger, driven by PC, smartphone and data center, so that the supply/demand situation remained tight. For wafers of 200 mm and smaller, as well, supply continued to fall short of demand, with the strong needs for automotive, consumer 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 to raise productivity through AI introduction and to improve our profitability by reducing costs.

As a result, for the period under review, the Group registered consolidated net sales of 244,463 million yen, operating income of 36,533 million yen, ordinary income of 35,184 million yen, and net income attributable to owners of the parent of 26,979 million yen.

(2) Explanation of Business Forecasts

The market for 300 mm semiconductor silicon wafers in the fourth quarter is expected to see even greater 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.

Given this market environment, the Group will continue seeking a competitive edge by developing technologies for state-of-the-art wafers for which continued demand growth is expected, while seeking to raise productivity by making greater use of AI. In addition, having run out of space for capacity expansions in our existing domestic plants, the Group has decided to implement capital investments in new buildings, utility equipment and manufacturing equipment that will make possible ongoing phased production increases, commensurate with market growth for 300 mm leading-edge silicon wafers.

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 long-term, 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 fiscal year ending Dec. 31, 2021 as follows.

Consolidated Business Forecasts for the fiscal year ending Dec. 31, 2021 (from Jan. 1, 2021 to Dec. 31, 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)	332,900	50,500	47,600	35,900			118.61
Changes (B-A)	－	－	－	－
Rate of changes (%)	－	－	－	－
(Reference)
Results for the fiscal year	291,333	37,897	36,650	25,505			87.48
ended Dec. 31, 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 Dec. 31, 2021 (from Oct. 1, 2021 to Dec. 31, 2021) was made assuming translation rates of one U.S. dollar to 113 yen.

2