Sumco Corp Ord

Thank you for your participation today. This is the results briefing for the second quarter of the fiscal year ending December 2025. Before starting the presentation, allow me to confirm today's materials, which consist of four items, the consolidated financial results for the six months ended June 30, 2025, the announcement concerning the difference between forecast and actual figures for the six months ended June 30, 2025, the announcement regarding interim dividend, and the presentation deck entitled Results for Q2 Fiscal 2025. Next, a disclaimer. The estimates, expectations, forecasts, and other future information discussed here and shown in today's materials were prepared based on the information available to the company as of today and on certain assumptions and qualifications, including our subjective judgment. Actual financial performance or results may differ substantially from the future information contained in this material and due to risk factors including domestic and global economic conditions trends in the semiconductor market and foreign exchange rates we will have presentations today from representative director chairman and ceo mayuki hashimoto and representative director and vice president cfo shinichi kubozoe chairman and ceo hashimoto will discuss our forecasts and operating environment to be followed by an explanation of the financial results by CFO Kubo Zoe. We have set aside time for a Q&A session as well.

I will now hand over to Chairman Hashimoto. I am Chairman Hashimoto.

I will start with an overview of the Q2 results. Q2 came in slightly ahead of plan. Sales were 102.9 billion yen. The overshoot at top line should be considered within the margin of error, reflecting variance in timing related to the physical arrival of freight shipments by sea. However, OP was 1.5 billion yen compared to our forecasts of break even. While forex impact and costs largely offset each other, there was variance in volume amounting to around 0.8 billion yen and a further 0.8 billion yen related to delays in incurring depreciation for a combined positive impact of around 1.5 billion yen. Turning to the earnings forecast for the third quarter of 2025, we project sales to be largely unchanged queue-on-queue, an operating loss of 3.5 billion yen down 5 billion yen Q on Q, ordinary losses of 6 billion yen, and losses attributable to owners of the parent of 5.5 billion yen. As you can see, we are forecasting losses for Q3. The vast majority of the losses are the result of the expected Q on Q increase in depreciation of 3.4 billion yen. Also, we expect a negative Q-on-Q impact of 0.7 billion yen from a stronger yen. Other key factors were volume and electricity unit prices. Electric power costs are expected to step up as we head into July. Given all of the factors, we project a Q-on-Q decline of roughly 5 billion yen in OP. Next slide, please. This slide shows our dividend guidance. The interim dividend has been set at 10 yen per share. The fiscal year-end dividend level has yet to be determined. With regard to determining dividend level, we consider a number of factors. We take into account the demand for cash for items such as capital expenditures, although this has been largely already covered, free cash flow, EBITDA, as well as the situation for funding for dividends to be paid. Next page, please.