Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (Based on Japanese GAAP)

																											November 4, 2021
Company Name:	FUJIMI INCORPORATED
Stock Exchange Listing: Tokyo, Nagoya
Stock Code:	5384	URL	https://www.fujimiinc.co.jp/
Representative:	President and CEO							Keishi Seki
Inquiries:		Deputy Senior General Manager	Toshihiro Kawashima			TEL [phone]
	Finance Division
Scheduled date to file Quarterly Securities Report:					November 4, 2021
Scheduled date to Commence Dividend Payments:					December 3, 2021
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:					Yes			(for analysts)
																		(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
(1) Consolidated Operating Results (cumulative)														Percentages indicate year-on-year changes
						Net Sales				Operating Profit		Ordinary Profit	Profit Attributable to
										Owners of Parent
Six months ended September 30,		Millions of yen	%		Millions of yen	%		Millions of yen	%	Millions of yen	%
			25,291	23.8				6,158		65.6			6,357	72.1		4,803	68.2
2021
Six months ended September 30,				20,427	8.2				3,718		29.9			3,694	24.2		2,855	29.1
2020
				Earnings per Share Diluted Earnings per
												Share
Six months ended September 30,						Yen			Yen
					194.30						-
2021
Six months ended September 30,						115.49						-
2020
(2) Consolidated Financial Position
						Total Assets	Net Assets				Equity Ratio	Net Assets per Share
						Millions of yen		Millions of yen					%			Yen
As of September 30, 2021							70,539								59,619						84.5		2,411.59
As of March 31, 2021									65,773								56,088						85.3		2,268.87
2. Cash Dividends
										Annual Dividends per Share
				1st quarter-end	2nd quarter-end 3rd quarter-end Fiscal year-end		Total
						Yen			Yen	Yen	Yen			Yen
Year ended March 31, 2021				-		50.00				-	65.00			115.00
Year ended March 31, 2022				-		85.00
Year ending March 31, 2022												-				85.00			170.00
(Forecast)
3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
																						Percentages indicate year-on-year changes
		Net Sales			Operating Profit		Ordinary Profit		Profit Attributable to	Earnings per Share
						Owners of Parent
		Millions of yen	%		Millions of yen	%		Millions of yen		% Millions of yen	%		Yen
Full Year		50,000		19.2			11,500	50.5						11,750		52.4			8,800		56.9		355.97

4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2021	28,699,500	shares	As of March 31, 2021	28,699,500	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	3,977,259	shares	As of March 31, 2021	3,978,451	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	24,721,509	shares	Six months ended September 30, 2020	24,720,650	shares

FUJIMI INCORPORATED

FY2022 Second Quarter Financial Results

(Supplementary Materials)

Table of Contents

Contents	Page
1.	Overview of Business Results and Financial Position…………………………………………………...	2
	(1) Overview of Business Results………………………………………..……………………………….	2
	(2) Overview of Financial Position………………………………………………..…………………..…	3
	(3) Financial Forecast……….………………...………………………………………………………….	3
2.	Consolidated Financial Statements………………………………………...….…………………….…...	4
	(1)	Consolidated Balance Sheets……………………………………………………………….………...	4
	(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…	6
	(3)	Consolidated Statements of Cash Flows……………………………………………………………..	8

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FUJIMI INCORPORATED

FY2022 Second Quarter Financial Results

1. Overview of Business Results and Financial Position

1. Overview of Business Results

In the first six months of FY2022 (April 2021 - March 2022), global economic uncertainty increased due to concerns about the spread of the novel coronavirus (COVID-19) variant, soaring energy prices, and the continuous tensions between the US and China, while the economic activities are seemed to be moving towards normalization in areas where vaccine rollout is progressing for COVID-19. However, the global semiconductor market showed firm demand for advanced semiconductor devices that support the advancement of information and communication due to lifestyle changes after the spread of COVID-19, as well as recovering demand of conventional semiconductor devices for automobiles and so forth.

The consolidated results for this period are shown below.

Consolidated Results for the First Six Months of Fiscal Year 2022:	Millions of JPY
	FY ended	FY ended	Change
	September 30, 2020	September 30, 2021	YoY
Net Sales	20,427	25,291	23.8%
Operating Profit	3,718	6,158	65.6%
Ordinary Profit	3,694	6,357	72.1%
Profit Attributable to Owners of Parent	2,855	4,803	68.2%

Segment Operating Results by Region

(i) Japan

Net sales in Japan increased by 33.2% to JPY 15,766 million compared with the same term in the previous fiscal year. The increase was mainly due to firm demand for products related to semiconductor devices and silicon wafers. Operating profit increased by 59.3% to JPY 5,555 million. The increase was mainly due to sales increase and a favorable product mix.

(ii) North America

Net sales in North America increased by 12.7% to JPY 3,153 million compared with the same term of the previous fiscal year. The increase was mainly due to firm demand for products related to semiconductor devices and silicon wafers. Operating profit increased by 55.2% to JPY 348 million. The increase was mainly due to a favorable product mix.

(iii) Asia

Net sales in Asia increased by 10.0% to JPY 5,537 million compared with the same term in the previous fiscal year. Operating profit increased by 17.6% to JPY 1,226 million. The increases were mainly due to firm demand for CMP products related to advanced logic devices.

(iv) Europe

Net sales in Europe increased by 10.5% to JPY 835 million compared with the same term in the previous fiscal year. Operating profit increased by 12.6% to JPY 93 million. The increases were mainly due to firm demand for products related to semiconductor devices.

Segment Operating Results by Application

(i) Silicon Wafers

Regarding products for silicon wafers, net sales of lapping abrasive products increased by 38.3% to JPY 2,985 million compared with the same term in the previous fiscal year and net sales of polishing slurry products increased by 32.9% to JPY 6,007 million. The increases in net sales of both product lines were mainly due to high production levels in the semiconductor industry.

(ii) Semiconductor Devices

Regarding products for the CMP process of semiconductor devices, net sales increased by 20.9% to JPY 12,155 million compared with the same term in the previous fiscal year. The increase in net sales was mainly due to continuous firm demand from both logic and memory devices.

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FUJIMI INCORPORATED

FY2022 Second Quarter Financial Results

(iii) Hard Disks

Regarding products for hard disks, net sales decreased by 15.7% to JPY 790 million compared with the same term in the previous fiscal year. The decrease in net sales was mainly due to replacement with Solid State Drives (SSDs) and a customer's production termination because of business withdrawal.

(iv) General Industries

Regarding products for general industries, net sales increased by 26.0% to JPY 2,140 million compared with the same term in the previous fiscal year. The increase in net sales was mainly due to recovery of demand of products for automobiles and industrial machineries.

1. Overview of Financial Position

Summary of Total Assets, Total Liabilities and Net Assets as of September 30, 2021

Total assets increased by JPY 4,765 million to JPY 70,539 million compared with the end of the previous fiscal year mainly due to increases of JPY 2,400 million in securities, of JPY 1,451 million in notes and accounts receivable - trade and of JPY 641 million in cash and deposits, offsetting a decrease of JPY 620 million in investment securities.

Total liabilities increased by JPY 1,234 million to JPY 10,919 million compared with the end of the previous fiscal year mainly due to increases of JPY 600 million in accounts payable - trade, of JPY

374 million in income taxes payable and of JPY 170 million in provision for share-based remuneration.

Net assets increased by JPY 3,530 million to JPY 59,619 million compared with the end of the previous fiscal year mainly due to increases of JPY 3,176 million in retained earnings and of JPY 215 million in foreign currency translation adjustment.

1. Financial Forecast

Net sales and profits for the first six months ended September 30, 2021 exceeded the earlier forecast primarily due to firm demand for the advanced semiconductor devices and silicon wafers. Financial forecast for the fiscal year ending March 31, 2022 is revised reflecting the recent trends of business performance as well as raw material prices.

The financial forecast for the current fiscal year is shown below.

Financial Forecast for Fiscal Year 2022:		Millions of JPY
	FY ending	Change from FY2021
	March 31, 2022
Net Sales	50,000	19.2%
Operating Profit	11,500	50.5%
Ordinary Profit	11,750	52.4%
Profit Attributable to Owners of Parent	8,800	56.9%

The financial forecast and other forward-looking statements are based on information available to the management at the present time and on certain assumptions judged by the management to be reasonable. Due to various factors, actual performance and financial results in future periods may differ materially from the forecast.

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