As always, I am deeply grateful to you, our shareholders and investors, for your continued support of SUMCO.

During fiscal year 2024 (January 1, 2024–December 31, 2024), the semiconductor market saw strong growth throughout the year in demand for data center use to meet AI needs. At the same time, however, the recovery in demand for consumer, industrial, and automotive uses was weak, as the bifurcated market continued.
In this environment, for 300 mm wafers, while the drawdown of wafer inventories by customers is taking time, demand increased for those for leading-edge products centering on AI semiconductors, so that the overall demand has gradually recovered. Demand for wafers of 200 mm and smaller, centering on consumer, industrial, and automotive uses, remained weak, with shipments continuing at a slow pace.

As the pace of innovation in semiconductor technology accelerates driven primarily by AI needs, the SUMCO Group will endeavor to further raise its corporate value by carrying out structural reforms toward focusing our management resources on boosting the capacity for supply of leading-edge 300 mm wafers. Specifically, in addition to strategically making use of the advanced manufacturing equipment currently being brought online, we will move forward on modernizing equipment in existing 300 mm plants.
As for smaller wafer sizes, we have decided to end wafer production at our Miyazaki Plant by the end of 2026, as we move to consolidate and streamline our production capacity for wafers of 200 mm and smaller due to ongoing sluggish demand. Extraordinary losses totaling 5.8 billion yen has been posted due to the costs incurred in the structural reforms.

For the fiscal year ended December 31, 2024, based on an overall consideration of the profit level in this period, the outlook for subsequent periods, funding needs for capital investment, and the status of internal reserves, an end-of-term dividend amount of 6 yen per share has been set. This brings the full-year dividend amount to 21 yen per share, and total dividends to 7.3 billion yen. The consolidated dividend payout ratio excluding subsidy income is 39.7%.
As we continue paying close attention to the economic environment for the Group and earnings status, along with funding needs and industry trends, we remain committed to providing our shareholders with appropriate return in keeping with the situation.