Results for
Third Quarter of FY2024
(Ended September 30, 2024)
November 8, 2024
SUMCO Corporation
（Code：3436）
（LEI：353800SUSRUOM0V6KU92）
SUMCO CORPORATION
3Q-2024 Results | 1 |
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 | 2 |
Nov. 8, 2024 |
Contents
- Summary and Market Environment
- 3Q-2024Consolidated Business Result
- Summary of Consolidated Business Result
- Analysis of Changes in Operating Profit
- Consolidated Balance Sheet and Consolidated Cash-Flow
- 4Q-2024Consolidated Business Forecast
- Consolidated Business Forecast
- Analysis of Changes in Operating Profit
- Reference Materials
SUMCO CORPORATION
3Q-2024 Results | 3 |
Nov. 8, 2024 |
Summary and
Market Environment
Mayuki Hashimoto
Representative Director,
CEO & Chairman of the Board
SUMCO CORPORATION
3Q-2024 Results | 4 |
Nov. 8, 2024 |
1-1. Summary
- 3Q-2024Consolidated Business Result
(Billions of Yen) | ||||
3Q-2024 | 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 | 5 |
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 | 25 | 18 | 17 | 36 | 42 | 15 |
Year-end | 10 | 9 | 24 | 45 | 13 | 6 | |
common stocks (Yen) | |||||||
Total | 35 | 27 | 41 | 81 | 55 | 21 | |
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 | 6 |
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.
- 4Q-2024Forecast
- 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.
- 200 mm wafer shipments are expected to remain at low levels as production adjustments by customers continue.
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.
- Semiconductor demand for data center use should continue strong driven by AI needs, while demand for automotive, consumer, and industrial uses will be weak, so that an overall gradual recovery is seen.
- 300 mm wafer demand will be on a slow recovery trend due to customers' lagging inventory drawdowns. For demand for 200 mm and smaller wafers, more time will be needed to recover as demand for their end products remains weak.
SUMCO CORPORATION
3Q-2024 Results | 7 |
Nov. 8, 2024 |
2-2. 200mm Wafer Trend
（Source： SUMCO's estimation)
SUMCO CORPORATION
3Q-2024 Results | 8 |
Nov. 8, 2024 |
2-3. 300mm Wafer Trend
（Source： SUMCO's estimation) | ||
SUMCO CORPORATION | Nov. 8, 2024 | 9 |
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 | 10 |
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 | Silicon Wafer | |||
Power | ||||
Optimization for | Optimization for | Adaptation for | Adaptation for | |
Quality | Fin Structure | Nano-Sheets | BSPDN | 3D/CFET Structure |
Reduction of Crystal Defects | ||||
Technology | ||||
Development | Improvement for Flatness | |||
of | Improvement for Particle Control | |||
Silicon Wafer | ||||
Optimization for Wafer Shape |
SUMCO CORPORATION
3Q-2024 Results | *1 | : Frontside Power Delivery Network | 11 |
Nov. 8, 2024 | *2 | : Backside Power Delivery Network |
3-2. Leading-Edge Epi Wafer Demand Forecast by Application
- Demand for advanced logic semiconductors for servers continues strong with the evolution of AI.
- Demand for leading-edge logic semiconductors grows with AI-capable smartphones and PCs.
( 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 | ||||||
0 | 2023 | 2024 | 2025 | 2026 | 2027 | |
(Source: Estimated by SUMCO based on data from various market research firms | ||||||
SUMCO CORPORATION | 3Q-2024 Results | 12 | ||||
Nov. 8, 2024 |
3-3. Leading-Edge Epi Wafer Demand Forecast by Process Node
- Demand for epi wafers for leading-edge logic semiconductors continues strong.
- Growth is seen especially for logic semiconductors with scaling beyond 5nm.
( k wafers / month ) | ||||||
1,200 | ||||||
1,000 | CAGR : 36% | |||||
800 | 2nm | |||||
600 | 3nm | |||||
400 | 5nm | |||||
200 | 7nm | |||||
0 | 2023 | 2024 | 2025 | 2026 | 2027 | |
(Source: Estimated by SUMCO based on data from various market research firms) | ||||||
SUMCO CORPORATION | 3Q-2024 Results | 13 | ||||
Nov. 8, 2024 | ||||||
4-1. Customers' 300mm Wafer Inventory Trend |
（Source： SUMCO's estimation)
SUMCO CORPORATION
3Q-2024 Results | 14 |
Nov. 8, 2024 |
4-2. Customers' 300mm Wafer Inventory (Logic/Memory)
（Source： SUMCO's estimation) | ||
SUMCO CORPORATION | Nov. 8, 2024 | 15 |
3Q-2024 Results |
5. 300mm Wafer Global Capacity and Demand FCST
（Source： SUMCO's estimation)
SUMCO CORPORATION
3Q-2024 Results | 16 |
Nov. 8, 2024 |
3Q-2024
Consolidated Business Result
Shinichi Kubozoe | |||||||
Representative Director, | |||||||
Executive Vice President, | |||||||
Chief Financial Officer | |||||||
SUMCO CORPORATION | 3Q-2024 Results | 17 | |||||
Nov. 8, 2024 | |||||||
6-1. Summary of Consolidated Business Result | |||||||
(Billions of Yen) | |||||||
3Q-2023 | 3Q-2024 | Actual (9 months) | Change | ||||
(9 months) | 1Q | 2Q | 3Q | 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$) | (*2) | 137.3 | 147.0 | 155.2 | 152.6 | 151.8 | +14.5 |
Operating margin (%) | 19.3% | 9.3% | 11.6% | 9.3% | 10.1% | (9.2%) | |
EBITDA margin (%) | 34.8% | 27.9% | 28.4% | 29.4% | 28.6% | (6.3%) | |
ROE (%) | 12.9% | 3.2% | 5.1% | 2.5% | 3.7% | (9.2%) | |
Basic Earnings per share (Yen) | 168.42 | 14.46 | 21.61 | 10.42 | 46.50 | (121.92) |
*1. EBITDA = Operating profit + Operating Depreciation + Amortization of Goodwill
*2. If the yen appreciates by 1 yen against the US dollar, operating profit of SUMCO will decrease by 1.1 billion yen per year
SUMCO CORPORATION
3Q-2024 Results | 18 |
Nov. 8, 2024 |
6-2. Analysis of Changes in Operating Profit
1. 2Q-2024 Actual → 3Q-2024 Actual | (Billions of Yen) | ||
2Q-2024 | 3Q-2024 | Change | |
Actual | Actual | ||
Net Sales | 104.7 | 98.4 | (6.3) |
Operating Profit | 12.2 | 9.1 | (3.1) |
Exchange Rate (Yen/US$) | 155.2 | 152.6 | (2.6) |
2. 3Q-2023 Actual → 3Q-2024 Actual(Billions of Yen) | |||
3Q-2023 | 3Q-2024 | Change | |
Act (9 months) | 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 | 19 |
Nov. 8, 2024 |
6-3. Balance Sheet and Cash-Flow (Consolidated)
1. Consolidated Balance Sheet | (Billions of Yen) | ||
End of | 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 | 199.0 | - |
Capital surplus | 85.2 | 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 | 20 |
Nov. 8, 2024 |