Interim report
Page 1
Press Release Consolidated Financial Results for the First Half Ended September 30, 2025 Shin-Etsu Chemical Co., Ltd. October 24, 2025 Listing Code: No. 4063 (URL: https://www.shinetsu.co.jp/en/) Listing Stock Exchange: Tokyo and Nagoya Representative: Yasuhiko Saitoh (Mr.) Representative Director/President Personnel to contact: Toshiyuki Kasahara (Mr.) Corporate Officer, General Manager of Finance & Accounting Department Tel: +81-3-6812-2350 Date of the filing of semi-annual securities report: November 13, 2025 Date of dividend payment: November 18, 2025 Preparation of supplemental explanatory materials: Yes (“Appendix” is attached.) Holding of quarterly financial results meeting: Yes (for investment analysts and institutional investors) Amounts are stated in millions of yen by discarding fractional amounts less than 1 million. Percentage figures indicate increase (decrease) over previous corresponding period. 1. Consolidated Operating Performance for the First Half Ended September 30, 2025 (From April 1, 2025 to September 30, 2025) (1) Results of consolidated operations (Millions of yen) Net sales Operating income Ordinary income Net income attributable to owners of parent April - September 2025 1,284,522 1.4% 333,935 (17.7%) 367,339 (17.1%) 257,844 (12.3%) April - September 2024 1,266,460 5.9% 405,703 6.2% 442,924 3.6% 294,117 (2.4%) (Note) Comprehensive income (Millions of yen) From April 1, 2025 to September 30, 2025: 78,788 [(88.2 %)] From April 1, 2024 to September 30, 2024: 665,010 [21.9 %] Net income per share (yen) Diluted net income per share (yen) April - September 2025 136.61 13 6.56 April - September 2024 147.83 14 7.68 (2) Consolid ated financial position (Millions of yen) To tal assets Net assets Stockholders’ equity ratio Net assets per share (yen) September 30, 2025 5,356,717 4,381,431 78.7% 2,251.21 March 31, 2025 5,636,601 4,837,585 82.6% 2,375.48 (Reference) Stockholders’ equity (Millions of yen) As of September 30, 2025: 4,216,794 As of March 31, 2025: 4,656,236 2. Cash Divi dends Cash dividends per share in the fiscal year (yen) 1st quarter 2 nd quarter 3 rd quarter Yea r-end Fiscal yea r April 2024 - March 2025 - 5 3.00 - 53.00 106. 00 April 2025 - March 2026 - 53.00 April 2025 - March 2026 (forecast) - 53.00 106.00 (Note) Revision of the latest forecast of cash dividends: No 3. Forecast of Consolidated Operating Performance for the Fis cal Year Ending March 31, 2026 (From April 1, 2025 to March 31, 2026) (Millions of yen) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share (yen) Fiscal year 2,400,000 (6.3%) 635,000 (14.4%) 700,000 (14.7%) 470,000 (12.0%) 250.00 (Note) Revision of the latest forecast of consolidated operating performance: No Forward-looking statements such as the forecast of results of operations made in this document involves risks and uncertainties since they are based on management’s assumptions and beliefs in light of the information currently available to it. The reader should be a ware that actual results may be materially different from any future results expressed herein due to various factors. Material factors affecting the actual results may include overall economic conditions in which the businesses of our company and our group companies are involved, the relevant market trends and fluctuations in foreign exchange rates of the yen, in particular, the exchange rate between the U.S. dollar and the yen; provided, however, that such factors as may affect results of operations are not limited to those enumerated above. (JP GAAP)
Page 2
(Notes) (1) Significant changes in scope of consolidation during the first half ended September 30, 2025: No (2) Adoption of special accounting methods for presenting consolidated financial statements: No (3) Changes in accounting policies applied, changes in accounting estimates and retrospective restatement Changes in accounting policies applied due to revisions of accounting standards: No Changes in accounting policies other than the above: No Changes in accounting estimates: No Retrospective restatement: No (4) Number of shares outstanding (common stock) September 30, 2025 March 31, 2025 Number of shares issued at period end (including treasury stock) 1,984,995,865 1,984,995,865 Number of shares of treasury stock at period end 111,875,422 24,869,464 April - September 2025 April - September 2024 Weighted-average number of shares outstanding over period 1,887,444,198 1,989,589,274 (Note) A resolution was made at the Board of Directors Meeting held on April 25, 2025 concerning the repurchase of up to 200 million shares (500 billion yen) by Ap ril 24, 2026, and we have repurchased a total of 87,393,400 shares (399,999 million yen) as of May 2025. (Information regarding audit procedures) The financial information contained in this report is not subject to audit procedures by independent auditors. The review report will be attached to the semi-annual s ecurities report scheduled to be submitted on November 13, 2025.
Page 3
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 1 (Attached Documents) INDEX 1. Results of Operations and Financial Overview ..................................................................................... 2 (1) Quarterly Results of Operations Overview .............................................................................. 2 (2) Explanation Regarding Information Relevant to Forecasts such as Consolidated Business Forecast ................................................................................................................................... 8 2. Consolidated Financial Statements ........................................................................................................ 9 (1) Consolidated Balance Sheets .................................................................................................... 9 (2) Consolidated Statements of Income and Statements of Comprehensive Income .................. 11 (3) Consolidated Statements of Cash Flows ................................................................................ 13 (4) Notes to Consolidated Financial Statements .......................................................................... 14 (Notes on Premise of Going Concern) .................................................................................. 14 (Notes on Significant Changes in Stockholders’ Equity) ..................................................... 14 (Appendix) 1. Quarterly Operating Results ........................................................................................................... 15 2. Capital Expenditures and Depreciation and Amortization ............................................................. 16 3. Other Financial Items (Consolidated) ............................................................................................. 17 4. Comparative Balance Sheets (Consolidated) .................................................................................. 17 5. Cash Dividends per Share .............................................................................................................. 18 6. Sales by Manufacturing Location for Each Segment ..................................................................... 18 7. Sales by Region .............................................................................................................................. 19 8. Average Exchange Rate .................................................................................................................. 19 9. Topics (Apr. 2025 – Sep. 2025) ...................................................................................................... 20 10. Capital Investments (that have been announced) ............................................................................ 20
Page 4
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 2 1. Results of Operations and Financial Overview (1) Quarterly Results of Operations Overview During the first half of the fiscal year ending March 31, 2026 (April 1, 2025 to September 30, 2025), the global economy and industries have been tossed about by the various policies taken by the U.S. under its America First agenda since April this year, but as indicated in the IMF’s World Economic Outlook released last week, they somehow managed to weather the st orm. However, the new expor t controls announced by the Chinese government earlier th is month have moved the ch allenge to an unprecedented dimension, as reflected in the reaction of the U.S. gove rnment, and we must closely monitor the developments. Under these circumstances, we have maintained cl ose communication with our customers, continued to provide a reliable su pply of products with required quality, and conducted sales with agility. As a result, the progress rate toward the forecast announced in July was 53% for operating income and 55% for net income. We will focus even more on business growth and improved operating performance. To that end, we will accelerate the development of products that are valuable to our customers and active ly continue capital investments with a medium- to long-term perspective in or der to meet the needs and demands of the customers and markets in a timely manner. The business results for the first half of th e fiscal year ending March 31, 2026, are as follows: ▶ Amounts are stated in billions of yen by discarding frac tional amounts less than 0.1 billion on this summary. (Billions of yen) Apr - Jun Jul - Sep 1% 18.1 (18%) (71.8) (17%) (75.6) (12%) (36.3) 32.0% 26.0% (6 points) 23.2% 20.1% (3 points) 19.9% 15.9% (4 points) 13.1% 11.6% (2 points) 148 137 (11) Cash Dividends 53 53 － Note s : ・ ROIC: Return on invested capital Net operating income after tax / (Net assets + Interest-b earing liabilities－Cash) ・ ROE: Return (net income attributable to owners of parent) on equity E quity used for this calculation is net assets excluding both share subscription rights and non-controlling interests in consolidated subsidiaries. ・ ROIC, ROE (annualized) are calculated by doubling first-half net operating income after tax and net income attributable to ow ners of parent, respectiv ely. ROE (annualized) ROIC (annualized) 2025 Apr - Sep Apr - Sep 1,266.4 405.7 257.8 333.9 367.3 Net income attributable to owners of parent 2024 (Decrease) Ratio of operating income to net sales Ratio of net income attributable to owners of parent to net sales 442.9 294.1 2025 628.5 655.9 166.8 167.1 Increase 185.7 126.4 131.4 Per Sha r e (Y en) Net Income 1,284.5 181.6 Net sales Operating income Ordinary income
Page 5
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 3 Net Sales and Operating Income by Segment Net Sales 1,284.5 Billions of yen Functional Materials 17% Electronics Materials 39% Operating Income 333.9 Billions of yen (Billions of yen) 2024 2025 2024 2025 Apr - Sep Apr - Sep Apr - Sep Apr - Sep (2%) (33%) 7% (9%) (2%) (10%) 1% (8%) 1% (18%) 102.3 Net Sales Operating Income 496.3 186.7 170.6 Infrastructure Materials 500.4 152.1 509.4 Total 1,266.4 1,284.5 66.5 Processing & Specialized Services 67.1 53.8 18.1 48.1 Electronics Materials 464.4 226.0 Functional Materials 0.6 13.6 Increase (Decrease) (9.0) 31.9 (5.4)220.6 405.7 333.9 14.9 Increase (Decrease) (49.8) (16.1) (1.3) (71.8) (5.7) Processing & Specialized Services 5% Infrastructure Materials 39% Functional Materials 14% Electronics Materials 51% Infrastructure Materials 31% Processing & Specialized Services 4%
Page 6
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 4 Infrastructure Materials Apr - Sep 2024 (Billions of yen) Apr - Sep 2025 (Billions of yen) Increase / (Decrease) Net sales 509.4 500.4 (2%) Operating income 152.1 102.3 (33%) As for PVC, the demand in North Amer ica was strong from the beginning of the year through mid-year, but the mark et has softened since then. Although prices have been sluggish in Asian and other overseas markets, we have utilized our extensive sales network to make the best sales possi ble. As for caustic soda, both the price and quantity have generally secured stable sales. There have been reports that the Chinese government is co ncerned about oversupply, and we will closely monitor the situation. Upward price adjustments. Full production and full sales that are well managed and controlled. Responding to the recovery of housing investment. 509.4 532.1 500.4 0.0 150.0 300.0 450.0 600.0 (Billions of yen) (Billions of yen) 152.1 139.2 102.3 0.0 60.0 120.0 180.0 2nd Half 1st Half 1st Half 2nd Half 1st Half 1st Half Apr 2024 – Mar 2025 Apr – Sep 2025 Apr 2024 – Mar 2025 Apr - Sep 2025 Net Sales Operating Income
Page 7
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 5 Electronics Materials Apr - Sep 2024 (Billions of yen) Apr - Sep 2025 (Billions of yen) Increase / (Decrease) Net sales 464.4 496.3 7% Operating income 186.7 170.6 (9%) In the semiconductor market, the demand re lated to AI continued to be strong, while other sectors remained lackluster . Under these circumstances, we have focused on shipping semiconductor materi als such as silicon wafer, photoresist and photomask blanks to the markets with strong growth. As for rare earth magnets, while we met the strong demand of Hard Disk Drive, we focused on our responses to China's export restric tions, which were triggered by the U.S. tariff policy. 464.4 469.8 496.3 0.0 100.0 200.0 300.0 400.0 500.0 186.7 137.9 170.6 0.0 40.0 80.0 120.0 160.0 200.0 Providing materials and technologies e ssential to the semiconductor market, which is sure to see rapid growth in the three aspects of quantity, quality, and variety. Promoting the construction of a new production base focusing on photoresist in Isesaki City, Gunma Prefecture, Japan (Currently proceeding as planned). Expansion of new functions as a diversified electronics materials manufacturer. (Billions of yen) (Billions of yen) Net Sales Operating Income 2nd Half 1st Half 1st Half 2nd Half 1st Half 1st Half Apr 2024 – Mar 2025 Apr – Sep 2025 Apr 2024 – Mar 2025 Apr - Sep 2025
Page 8
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 6 Functional Materials Apr - Sep 2024 (Billions of yen) Apr - Sep 2025 (Billions of yen) Increase / (Decrease) Net sales 226.0 220.6 (2%) Operating income 53.8 48.1 (10%) The recovery of the market conditi on for the commodity product did not materialize yet, and we continued to make up for the shortfall in sales by focusing on expanding the selling of highly functional product groups. 226.0 222.6 220.6 0.0 50.0 100.0 150.0 200.0 250.0 53.8 46.1 48.1 0.0 15.0 30.0 45.0 60.0 Providing solutions utilizing silicon es (Shin-Etsu Silicones Solution- Engineering). (e.g., a substitute for PFAS). Expansion of cellulose derivatives products for pharmaceuticals application. (Billions of yen) (Billions of yen) Net Sales Operating Income 2nd Half 1st Half 1st Half 2nd Half 1st Half 1st Half Apr 2024 – Mar 2025 Apr – Sep 2025 Apr 2024 – Mar 2025 Apr - Sep 2025
Page 9
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 7 Processing & Specialized Services Apr - Sep 2024 (Billions of yen) Apr - Sep 2025 (Billions of yen) Increase / (Decrease) Net sales 66.5 67.1 1% Operating income 14.9 13.6 (8%) The demand for semiconductor-related c ontainers remained strong for both semiconductor wafer shipping appli cations and in-process semiconductor applications. In the automotive-rela ted products, there was a new demand increased for silicone molded products such as Silicone Light Guides and wipers. Increased the sales of semiconductor wafe r-related containers and promoted the development and market penetration of eco-friendly vehicle-related products. 66.5 70.1 67.1 0.0 25.0 50.0 75.0 (Billions of yen) (Billions of yen) 14.9 13.8 13.6 0.0 6.0 12.0 18.0 Net Sales Operating Income 2nd Half 1st Half 1st Half 2nd Half 1st Half 1st Half Apr 2024 – Mar 2025 Apr – Sep 2025 Apr 2024 – Mar 2025 Apr - Sep 2025
Page 10
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 8 220.0 242.1 340.3 415.3 418.2 405.1 694.4 1,020.2 787.2 820.5 700.0 0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 FY2015 15/4 - 16/3 FY2016 16/4 - 17/3 FY2017 17/4 - 18/3 FY2018 18/4 - 19/3 FY2019 19/4 - 20/3 FY2020 20/4 - 21/3 FY2021 21/4 - 22/3 FY2022 22/4 - 23/3 FY2023 23/4 - 24/3 FY2024 24/4 - 25/3 FY2025 25/4 - 26/3 （Billions of yen） （Forecast） (Reference) Change in Ordinary Income (2) Explanation Regarding Information Relevant to Forecasts such as Consolidated Business Forecast The business forecast for th is fiscal year depends on various variable factors, but we will maintain the earning forecast announced in July. We strive to grow our business performance. (Note) Forward-looking statements such as the forecast of results of operations made in this document are as described on the cover page under [3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2026]. The year-end dividend for the fi scal year ending March 31, 20 26 is expected to be ¥53 per share as was announced in July 2025 as well, the same amount as the interim dividend. As a result, the dividend on an annual basis will be ¥106 per share, the same amount as the previous fiscal year. （Billions of yen） 2,561.2 2,400.0 (6%) 742.1 635.0 (14%) 820.5 700.0 (15%) 534.0 470.0 (12%) 270 250 (7%) 29.0% 26.5% (3 points) 20.9% 19.6% (1 point) 106 106 ― 4.7% 4.6% 0 point 39.3% 42.4% 3 points Net sales Ordinary income Ratio of net income attributable to owners of parent to net sales Cash Dividends per Share (Yen) DOE Dividend payout ratio Ratio of operating income to net sales Operating income Net income per share (Yen) Increase (Decrease)24/4 - 25/3 FY 2024 25/4 - 26/3 FY 2025 Actual Forecast Net income attributable to owners of parent
Page 11
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 9 2. Consolidated Financial Statements (1) Consolidated Balance Sheets As of March 31 and September 30, 2025 Millions of yen March 31, 2025 September 30, 2025 ASSETS Current Assets: Cash and deposits 1,708,438 1,494,104 Notes, accounts receivable-trade and contract assets 514,702 559,584 Securities 103,240 49,869 Inventories 769,967 736,326 Other 123,243 94,554 Less: Allowance for doubtful accounts (9,941) (11,342) Total current assets 3,209,652 2,923,096 Fixed Assets: Property, plant and equipment: Machinery and equipment, net 1,081,151 1,002,930 Other, net 984,793 1,058,503 Total property, plant and equipment 2,065,945 2,061,434 Intangible assets 36,908 36,122 Investments and other assets: Investments and other assets 329,324 341,305 Less: Allowance for doubtful accounts (5,228) (5,240) Total investments and other assets 324,095 336,065 Total fixed assets 2,426,949 2,433,621 TOTAL ASSETS 5,636,601 5,356,717
Page 12
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 10 Millions of yen March 31, 2025 September 30, 2025 LIABILITIES Current Liabilities: Notes and accounts payable-trade 184,369 172,012 Short-term borrowings 9,389 7,642 Accrued income taxes 84,604 77,028 Provisions 6,475 6,311 Other 252,254 232,665 Total current liabilities 537,094 495,661 Long-term Liabilities: Long-term borrowings 7,452 236,273 Net defined benefit liability 33,172 34,000 Other 221,296 209,350 Total long-term liabilities 261,922 479,624 TOTAL LIABILITIES 799,016 975,286 NET ASSETS Stockholders’ Equity: Common stock 119,419 119,419 Additional paid-in capital 125,694 125,697 Retained earnings 3,755,274 3,908,589 Less: Treasury stock, at cost (121,025) (519,219) Total stockholders’ equity 3,879,362 3,634,487 Accumulated Other Comprehensive Income: Unrealized gains (losses) on available-for-sale securities 32,481 32,710 Deferred gains (losses) on hedges 777 (341) Foreign currency translation adjustments 734,201 542,883 Remeasurements of defined benefit plans 9,412 7,055 Total accumulated other comprehensive income 776,873 582,307 Share subscription rights 6,237 8,182 Non-controlling interests in consolidated subsidiaries 175,112 156,455 TOTAL NET ASSETS 4,837,585 4,381,431 TOTAL LIABILITIES AND NET ASSETS 5,636,601 5,356,717
Page 13
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 11 (2) Consolidated Statements of Income and Statements of Comprehensive Income Consolidated Statements of Income For the first half ended September 30, 2024 and 2025 Millions of yen April 1, 2024 - September 30, 2024 April 1, 2025 - September 30, 2025 Net sales 1,266,460 1,284,522 Cost of sales 747,481 828,780 Gross profit 518,978 455,742 Selling, general and administrative expenses 113,274 121,806 Operating income 405,703 333,935 Non-operating income: Interest income 44,542 31,968 Other income 7,227 8,221 Total non-operating income 51,770 40,189 Non-operating expenses: Interest expenses 627 1,402 Foreign exchange losses 9,439 2,721 Other expenses 4,482 2,662 Total non-operating expenses 14,549 6,786 Ordinary income 442,924 367,339 Extraordinary income: Gain on sale of investment securities 1,909 9,665 Gain on step acquisitions 5,421 - Total extraordinary income 7,331 9,665 Income before income taxes and non-controlling interests 450,255 377,005 Income taxes: Current 116,529 105,499 Deferred 15,478 (2,900) Total income taxes 132,008 102,598 Net income 318,247 274,406 Net income attributable to non-controlling interests 24,130 16,562 Net income attributable to owners of parent 294,117 257,844
Page 14
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 12 Consolidated Statements of Comprehensive Income For the first half ended September 30, 2024 and 2025 Millions of yen April 1, 2024 - September 30, 2024 April 1, 2025 - September 30, 2025 Net income 318,247 274,406 Other comprehensive income: Unrealized gains (losses) on available-for-sale securities (3,647) 243 Deferred gains (losses) on hedges 1,681 (1,119) Foreign currency translation adjustments 348,920 (192,606) Remeasurements of defined benefit plans (870) (2,362) Share of other comprehensive income of affiliates accounted for using the equity method 677 226 Total other comprehensive income 346,762 (195,618) Comprehensive income 665,010 78,788 (Breakdown) Comprehensive income attributable to owners of parent 636,743 63,277 Comprehensive income attributable to non-controlling interests 28,266 15,510
Page 15
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 13 (3) Consolidated Statements of Cash Flows For the first half ended September 30, 2024 and 2025 Millions of yen April 1, 2024 - September 30, 2024 April 1, 2025 - September 30, 2025 Cash flows from operating activities: Income before income taxes and non-controlling interests 450,255 377,005 Depreciation and amortization 108,421 116,312 Loss (gain) on sale of investment securities (1,909) (9,665) Interest and dividend income (46,591) (34,290) Exchange (gains) losses 22,460 (3,277) (Increase) decrease in accounts receivable (4,657) (57,672) (Increase) decrease in inventories 32,051 15,642 Increase (decrease) in accounts payable (24,754) (8,012) Other, net (29,429) 25,026 Subtotal 505,846 421,068 Proceeds from interest and dividends 45,339 38,786 Payments of interest (538) (592) Payments of income taxes (98,757) (112,194) Net cash provided by operating activities 451,889 347,066 Cash flows from investing activities: Net (increase) decrease in time deposits 61,726 (79,334) Net (increase) decrease in marketable securities - (6,355) Purchases of investments in securities (4,746) (1,742) Proceeds from sales and redemption of investments in securities 3,162 14,953 Purchases of property, plant and equipment (257,851) (213,920) Purchase of shares of subsidiaries resulting in change in scope of consolidation (33,411) - Other, net (4,114) (14,302) Net cash provided by (used for) investing activities (235,235) (300,701) Cash flows from financing activities: Net increase (decrease) in short-term borrowings 501 (864) Proceeds from long-term borrowings 456 230,010 Repayments of long-term borrowings (6,730) (1,343) Purchases of treasury stock (100,003) (400,002) Cash dividends paid (99,802) (103,886) Other, net (24,714) (27,231) Net cash used for financing activities (230,293) (303,317) Effect of exchange rate changes on cash and cash equivalents 27,577 (5,662) Net increase (decrease) in cash and cash equivalents 13,937 (262,614) Cash and cash equivalents at beginning of period 590,135 882,736 Cash and cash equivalents at end of period 604,073 620,121
Page 16
Shin-Etsu Chemical Co., Ltd. (4063) First Half Ended September 30, 2025 14 (4) Notes to Consolidated Financial Statements (Notes on Premise of Going Concern) Not applicable (Notes on Significant Changes in Stockholders’ Equity) Not applicable
Page 17
(Appendix) 1. Quarterly Operating Results (Billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q Total 597.9 668.5 663.2 631.5 2,561.2 - 628.5 655.9 1,284.5 232.5 276.8 268.1 263.9 1,041.5 - 244.4 256.0 500.4 227.0 237.4 244.6 225.1 934.3 - 240.2 256.0 496.3 106.7 119.3 115.3 107.2 448.6 - 110.0 110.6 220.6 31.6 34.8 35.0 35.1 136.7 - 33.9 33.2 67.1 - 191.0 214.6 178.7 157.6 742.1 - 166.8 167.1 333.9 67.9 84.2 74.1 65.1 291.4 - 52.8 49.5 102.3 89.5 97.2 73.7 64.2 324.7 - 83.1 87.5 170.6 26.7 27.0 24.4 21.7 100.0 - 24.0 24.1 48.1 7.0 7.9 6.7 7.1 28.7 - 7.1 6.5 13.6 219.8 223.1 201.3 176.3 820.5 - 181.6 185.7 367.3 144.0 150.0 138.4 101.4 534.0 - 126.4 131.4 257.8 16.9 16.8 17.7 21.6 73.1 - 18.2 19.0 37.2 469.8 536.2 527.6 505.0 2,038.8 - 490.3 518.2 1,008.6 79% 80% 80% 80% 80% 78% 79% 79% R&D Costs Overseas Sales Ratio of Overseas Sales to Net Sales Net Income Attributable to Owners of Parent Processing & Specialized Services Operating Income Infrastructure Materials Electronics Materials Functional Materials Processing & Specialized Services Ordinary Income FY 2025 April 1, 2025 - March 31, 2026 Functional Materials FY 2024 April 1, 2024 - March 31, 2025 Net Sales Infrastructure Materials Electronics Materials 15
Page 18
16 2. Capital Expenditures and Depreciation and Amortization (Including intangible assets) (Billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q Total 115.5 137.5 103.4 78.0 434.5 66.1 138.4 204.5 40.9 31.3 26.0 15.6 114.0 18.0 18.5 36.5 55.4 89.3 63.2 37.3 245.5 33.5 105.2 138.8 13.5 15.9 13.1 23.1 65.8 12.4 13.6 26.1 6.2 2.3 1.5 2.4 12.6 2.6 1.7 4.3 52.0 56.4 63.9 65.9 238.3 57.3 58.9 116.3 18.9 19.7 20.2 22.9 81.8 21.0 20.5 41.6 22.2 26.7 31.8 29.9 110.8 25.6 27.4 53.1 9.5 8.8 10.3 11.5 40.1 9.0 9.3 18.3 1.4 1.4 1.9 1.9 6.8 1.8 2.0 3.8 Annual (Billions of yen) Investments Apr 2025 - Mar 2026 Forecast 370.0 Depreciation and Amortization 240.0 FY 2025 April 1, 2025 - March 31, 2026 Processing & Specialized Services Processing & Specialized Services Depreciation and Amortization Infrastructure Materials Electronics Materials Functional Materials Functional Materials FY 2024 April 1, 2024 - March 31, 2025 Capital Expenditures Infrastructure Materials Electronics Materials
Page 19
17 3. Other Financial Items (Consolidated) 4. Comparative Balance Sheets (Consolidated) Effect of exchange rate [a]-[b] Effect of exchange rate [a]-[b] Current Assets 3,209.6 2,923.0 (286.6) (135.9) (150.7) Current Liabilities 537.0 495.6 (41.4) (13.2) (28.2) Cash and time deposits 1,708.4 1,494.1 (214.3) (104.0) (110.3) Notes and accounts payable-trade 184.3 172.0 (12.3) (4.3) (8.0) Notes and accounts receivable-trade 514.7 559.5 44.8 (12.8) 57.6 Other 352.7 323.6 (29.1) (8.9) (20.2) Securities 103.2 49.8 (53.4) (0.1) (53.3) Long-term Liabilities 261.9 479.6 217.7 (13.9) 231.6 Inventories 769.9 736.3 (33.6) (17.2) (16.4) Long-term borrowings 7.4 236.2 228.8 (0.1) 228.9 Other 113.3 83.2 (30.1) (1.8) (28.3) Other 254.4 243.3 (11.1) (13.8) 2.7 Total Liabilities 799.0 975.2 176.2 (27.1) 203.3 Fixed Assets 2,426.9 2,433.6 6.7 (91.5) 98.2 Stockholders' Equity 3,879.3 3,634.4 (244.9) 0.0 (244.9) 2,102.8 2,097.5 (5.3) (89.7) 84.4 776.8 582.3 (194.5) (191.2) (3.3) 324.0 336.0 12.0 (1.8) 13.8 181.3 164.6 (16.7) (9.1) (7.6) 4,837.5 4,381.4 (456.1) (200.3) (255.8) Total Assets 5,636.6 5,356.7 (279.9) (227.4) (52.5) 5,636.6 5,356.7 (279.9) (227.4) (52.5) Mar 31 2025 Sep 30 2025 Total Net Assets Total Liabilities and Net Assets Increase (Decrease) Property, Plant and Equipment and Intangible Assets Accumulated Othe r Comprehe nsive Income Investments and Other Assets Other Mar 31 2025 Sep 30 2025 Increase (Decrease) [b][a] [b][a]＊ ＊ For conversion into Japanese yen of the balance sheets of overseas subsidiaries, the exchange rate at the end of December 2 024 was used for the end of the fiscal year ended March 31, 2025 in accordance with the fiscal year end of such overseas subsidiaries. The exchange rate at the end of June 2025 was used for the first half of the fiscal year ending March 31, 2026. Exchange Rate at End of December 2024: 158.2yen/US$ Exchange Rate at End of June 2025: 144.8yen/US$ ＊Effect of exchange rate (Billions of yen) (Billions of yen) Sep 30 Sep 30 Mar 31 2024 2025 2025 Net Assets 4,886.1 4,381.4 4,837.5 Total Assets 5,636.0 5,356.7 5,636.6 Net Assets per Share (Yen) 2,372 2,251 2,375 19.8 243.9 16.8 27,137 27,234 27,274 152.2 148.6 152.6 146.0 Note : An average exchange rate between January and June was used for the Consolidated Income Statements of overseas subsidiaries. (Yen/US$) Apr - Sep (Avg) Exchange Rate: Jan - Jun (Avg) Interest-bearing Liabilities Num ber of Em ploy ees
Page 20
18 5. Cash Dividends per Share 6. Sales by Manufacturing Location for Each Segment (Forecast) Interim Annual 2017 2018 2019 2020 20 21 2022 2023 2024 2025 2026 Interim 12 13 20 22 22 30 45 50 53 53 Annual 24 28 40 44 50 80 100 100 106 106 Annual 83 125 145 151 141 241 348 259 270 250 Di vi de nd payout ratio Annual 29% 22% 28% 29% 35% 33% 29% 38% 39% 42% Dividend on equity ratio Annual 2.5% 2.7% 3.5% 3.6% 3.8% 5.4% 5.7% 4.9% 4.7% 4.6% Cash Dividends per Share (Yen) Fiscal year ended March Net Income per Share (Y en) Forecast 53 (Yen) Infrastructure Materials Electronics Materials Functional Materials Processing & Specialized Services Total Goods Manufactured in Japan 56.2 380.1 141.7 49.3 627.5 Goods Manufactured overseas 453.1 84.3 84.2 17.1 638.9 509.4 464.4 226.0 66.5 1,266.4 Goods Manufactured in Japan 59.3 408.0 143.5 50.3 661.2 Goods Manufactured overseas 441.0 88.2 77.1 16.8 623.2 500.4 496.3 220.6 67.1 1,284.5 2025 April - Sep 2024 April - Sep (Billions of yen) * * 106 * * *
Page 21
19 7. Sales by Region 8. Average Exchange Rate US$ EUR Shin-Etsu’s assumption for the forecast from October 2025 Around 145Yen/$ Around 165Yen/€ Note: % indicates the proportion of total consolidated net sales. Note: An average exchange rate between January and June was used for the Consolidated Income Statements of overseas subsidiaries. (Billions of yen) Total Japan U.S. Europe Other Areas Total Consolidated China Net Sales First Half 21% 32% 31% 9% 10% 6% 79% Apr - Sep 2024 260.2 401.6 400.1 115.9 122.2 82.1 1,006.1 1,266.4 Second Half 20% 31% 33% 10% 9% 7% 80% Oct 2024 - Mar 2025 262.1 394.9 435.3 123.8 114.2 88.1 1,032.6 1,294.7 Fiscal Year 20% 31% 33% 9% 9% 7% 80% ended March 2025 522.4 796.5 835.4 239.7 236.5 170.3 2,038.8 2,561.2 First Half 21% 28% 35% 10% 9% 7% 79% Apr - Sep 2025 275.9 351.1 443.1 122.2 119.7 94.5 1,008.6 1,284.5 Overseas Asia/Oceania Jan-Jun Apr-Sep Jan-Jun Apr-Sep Jul-Dec Oct-Mar Jul-Dec Oct-Mar Jan-Mar 148.6 161.3 Apr-Jun 155.9 167.9 Jul-Sep 149.4 164.0 Oct-Dec 152.4 162.6 Jan-Mar 152.6 160.5 Apr-Jun 144.6 163.8 Jul-Sep 147.5 172.3 163.7150.9 163.3 152.5 161.5 148.6 146.0 162.2 168.1 2024 152.2 151.6 164.6 163.9152.6 152.6 165.9 2025 US$ (yen/$) EUR (yen/€) Quarterly 6 months 12 months Quarterly 6 months 12 months Jan-Dec Apr-Mar Jan-Dec Apr-Mar
Page 22
20 9. Topics (Apr. 2025 – Sep. 2025) Apr. 2025 Shin-Etsu Chemical a nd Hokkaido University have developed lipid nanoparticle production system capable of both small-batch, high-mix production and mass production Apr. 2025 Shin-Etsu Chemical ha s announced decisions for the repurchase of 200 million shares (maximum) (10.2% of the total shares issued and outstanding, excluding treasury shares), 500 billion Japanese Yen (maximum) May 2025 Shin-Etsu Chemical has developed new silicon e products for personal care use that will improve texture and functionality in cosmetics May 2025 Notice regarding the acquis ition of own shares through the off-auction share repurchase trading system (ToSTNet-3) (Acquisition of own shares through fully committed share repurchase (Japanese ASR)) ★ Please refer to news releases related to these matters on our website at https://www.shinetsu.co.jp/en/news/ 10. Capital Investments (that have been announced) ★：Completion ☆：Completion Schedule ＊1 Starting up gradually ＊2 Naoetsu ＊3 Germany Company Projects Investment Amount 2023 2024 2025 2026 2027 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Shintech (USA) Facility investment in PVC (2nd phase) $1.25 billion ★ Shin-Etsu Chemical (Isesaki) Build a new manufacturing and research-and-development base for semiconductor lithography materials ¥83 billion ☆ Shin-Etsu Chemical (Gunma) Capital investment for the reduction in the volume of greenhouse gas emissions in the silicones business (gas turbine power generators, capacity increase of products that contribute to the environment) ¥20 billion ★ Shin-Etsu Chemical (Gunma, Takefu, Naoetsu) Reinforcement of the production capacity for silicone advanced functional products line ¥80 billion ＊1 ☆ Shin-Etsu Chemical and main overseas bases (Gunma, Thailand, etc.) Expansion the applications of our silicones products and work to enhance the advanced functionality of our product line-up and expand our environmentally friendly silicones ¥100 billion ＊1 Shin-Etsu Silicone (Pinghu) (China) Construct a new silicone products plant ¥2.1 billion ☆ Shin-Etsu Chemical (Naoetsu) Capital Investment in pharmaceutical cellulose products ¥10 billion ☆ Shin-Etsu Chemical (Naoetsu) SE Tylose (Germany) Strengthening of pharmaceutical cellulose products and their warehouse storage capacity ¥10 billion ＊2 ☆ ＊3 ☆