Sumco Corp Ord

Thank you for your participation today. This is the results briefing for the third 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 nine months ended September 30, 2025. The announcement concerning difference between forecast and actual figures for the nine months ended September 30, 2025. the announcement regarding revision to dividend forecast, and the presentation deck entitled Results for Q3 Fiscal 2025, which we will use now. 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 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 Kubozoe. 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 Q3 results. We did come in ahead of plan. Although it wasn't a big overshoot, the results were pretty good. One factor was a delay in incurring depreciation of 0.6 billion yen. There was also a 1.1 billion yen contribution from cost reductions, which was the aggregation of many different elements of around 0.1 billion yen each, such as improvement in yields. Although sales fell short of plan, profits were not that bad. On sales, and I think this will be covered later, our standard for recognition is not shipment, but arrival at destination. So when there are delays to sea freight, sales can easily vary by 1 to 2 billion yen in either direction. Basically, you should view sales as having been largely unchanged queue on queue. Turning to the earnings forecast for the fourth quarter of 2025, we project sales to be generally similar Q1Q at around 100 billion yen. Q4 includes the year-end holiday season, which has implications for shipments. Sales tend to fall slightly short every year. However, given some pushouts from Q3, we are projecting 100 billion yen, basically flat Q1Q. On profitability, we are expecting a slight dip given our expectation of lower volumes on the back of regular maintenance during the quarter. Depreciation is expected to rise 5.7 billion yen Q-on-Q, which is reflected in the projection of an 8.4 billion yen Q-on-Q drop in OP. Production will also decline as a result of the regular maintenance, for a negative impact of around 3 billion yen. These two factors combined largely explain the Q-on-Q change.