FY2009 Interim Business Results
February 1, 2009—July 31, 2009
Stock code: 3436
Message to Shareholders and Investors
www.sumcosi.com

(Millions of yen)
Net salesOperating profit (loss)Ordinary profit (loss)Net income (loss)Total assets Liabilities with interest Net assets Shareholders’ equity ratio (%)D/E ratio: Liabilities with interest/
Net assets (times)
FY2009
Year ending
January 2010
Consolidated Financial Highlights
FY2007
Year ended January 2008
Note: The following corrections have been made to the above two graphs posted on October 16, 2009:
1. The vertical scale in the Net Income (Loss) graph has been corrected from increments of 300,000 million yen (900,000; 600,000; 300,000; 0; -300,000; and -600,000 million yen) to increments of
30,000 million yen (90,000; 60,000; 30,000; 0; -30,000; and -60,000 million yen).
2. The explanations of the symbols in the legend to the Shareholders’ Equity Ratio and D/E Ratio graph were reversed in the earlier report and have been corrected.
FY2006
Year ended January 2007
FY2008
Year ended January 2009

130,803

34,032

30,157

47,796

392,693

122,636

207,096

52.7

0.6

229,184

68,920

66,189

37,246

623,046

125,718

368,417

52.6

0.4

227,161

47,284

46,591

25,610

709,776

137,640

416,113

54.6

0.4

95,777

(48,832)

(61,201)

(52,921)

721,415

305,744

334,108

43.2

1.0

319,385

84,390

75,835

72,051

578,854

136,249

327,318

50.5

0.5

474,951

140,385

133,028

74,879

710,495

114,188

415,510

50.5

0.3

391,928

45,069

39,371

18,886

733,897

208,094

389,521

49.8

0.6
150,000
100,000
50,000
0
-50,000
350,000
200,000150,000100,000
0
450,000
300,000
150,000
0
90,000
60,000
30,000
-30,000
-60,000
FY2006
(Full year)
FY2007
(Full year)
FY2008
(Full year)
FY2009
(Interim)
■
Net Sales
500,000
400,000
■

Interim
 
■

Full year
300,000
200,000
100,000
0
FY2006
FY2008
FY2007
FY2009
FY2006
FY2008
FY2007
FY2009
FY2006
FY2008
FY2007
FY2009
FY2006
FY2008
FY2007
FY2009
FY2006
FY2008
FY2007
FY2009
■
Operating Profit (Loss)
■

Interim
 
■

Full year
■
Net Income (Loss)
■

Interim
 
■

Full year
0
300,000250,000
■
Liabilities with Interest
■

Interim
 
■

Full year
50,000
■
Net Assets
■

Interim
 
■

Full year
■
Shareholders’ Equity Ratio (%), D/E Ratio (Times)
75.0
50.0
25.0
0
3.0
(%)
(Times)
1.0
2.0
0
■

Shareholders’ Equity Ratio D/E Ratio
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
Full year
Full year
Full year
Interim
Interim
Interim
Interim
1
SUMCO CORPORATION

To Our Shareholders
Having taken office as President of SUMCO Corporation on May 29, 2009, I take this opportunity to extend my special thanks to you, our shareholders, for your continued support and understanding. I would like to briefly outline our position as we publish our interim financial statements for the fiscal year ending January 31, 2010.
The global economy took a sharp downturn in the fall of 2008, resulting in
drastically reduced demand for semiconductors and a serious deterioration in market conditions for silicon wafers. As a result, the SUMCO Group has gone through the most severe management environment it had ever experienced.
Since our public listing, SUMCO Corporation and our group companies have
endeavored to expand with a focus on silicon wafers for use in semiconductors. However, faced with the challenges that emerged from the global economic downturn, we announced our Business Restructuring Plan aimed at overcoming our difficulties, building a more resilient corporate structure, bringing our finances into the black as soon as possible, and laying the foundation for sustained growth. The main points of the Plan include “reorganization of small-diameter silicon wafer production,” “strengthening the competitiveness of our solar wafer operations” in a world that is increasingly conscious of the importance of global environmental preservation, and “accelerating the depreciation of 300 mm wafer production facilities.”
Demand for silicon wafers for semiconductors bottomed out in the spring of
2009, and we are beginning to see some encouraging signs. However, we expect that the SUMCO Group will continue to face severe business conditions for some time to come. On the other hand, we expect our business domains to register strong medium- to long-term growth. Looking beyond the difficult conditions that prevail today, we shall do everything in our power to overcome our business challenges and to achieve sound growth.
In light of the deterioration in our business performance, we have decided to
forego the payment of dividends for the interim period under review. Turning to the future, the SUMCO Group will redouble its efforts to regain profitability as soon as possible. Meanwhile, we appeal to you, our shareholders, for your continued support and cooperation.
October 2009
Yoichi Taguchi
President
2
SUMCO CORPORATION

First Three Months in Office
Since taking office three months ago, I have focused on our highest management priority: the speedy implementation of our business restructuring program. The goal of these initiatives is to realize stable growth in our businesses and to make fundamental changes in our corporate and cost structures. The most critical challenge is to achieve and maintain profitability in the next fiscal year and beyond.
To achieve the speedy restructuring of our businesses in a rapidly
deteriorating business environment, the entire SUMCO Group needed to appreciate the current situation, the goals, and feasibility of the proposed reforms, and to arrive at a common management philosophy. For this purpose, since taking office, I have concentrated on visiting our plants and offices in Japan and abroad. In the course of these visits, I have spent many hours discussing the Business Restructuring Plan with our managers and frontline staff. This has helped create a shared awareness of our management thinking and policies, and a deeper understanding of the challenges before us and the measures we are endeavoring to implement.
Objectives of the Business Restructuring Plan
Considering the sharp economic downturn starting in the fall of 2008, the shift in demand structure, and the position in which the SUMCO Group finds itself in this environment, there is an urgent need to implement the Business Restructuring Plan.
A key element of the Plan is the reorganization of small-diameter silicon
wafer production. This strategy responds to the rapid shift to large-diameter
Top Message
Implementing the Business Restructuring Plan to Build
a Robust Corporate Structure and to Achieve Sustained Growth
Three months have passed since President Yoichi Taguchi took office on May 29, 2009. During this period, the SUMCO Group has grappled with the most difficult business environment that it has ever experienced. President Taguchi speaks of the initiatives he has pursued while heading the Business Restructuring Plan and touches on some directions for the future.
Yoichi Taguchi

President
3
SUMCO CORPORATION

silicon wafers in global markets and is essential in improving our profit structure. This reorganization required the understanding of our customers, which was obtained through extensive discussions. We are now implementing the reorganization with full speed.
We are committed to improving our competitive position in solar wafers, an
area with strong growth potential. Responding to growing demand for crystalline solar wafers, we have added monocrystalline products to our traditional lineup of multicrystalline silicon wafers. We believe we can boost our competitiveness by positioning ourselves to produce both types of products.
We are also accelerating the depreciation of 300 mm wafer production
facilities.
While we expect severe business conditions to prevail for some time to come,
we believe these measures must be speedily implemented to improve the future profitability of our businesses.
Achieving Sustained Growth
To overcome the current difficulties, it is clear that we must fully implement the Business Restructuring Plan. Not only will this improve our profit structure but it will also help create a more powerful human-resource base in the SUMCO Group. We are confident that the achievement of these two goals will enhance corporate competences that are essential to our success as a manufacturer, such as manufacturing capabilities and development and technological capabilities.
We will enhance our customers’ trust and confidence in us by paying close
attention to their needs and by supplying truly satisfying products supported by the best available technologies.
We believe the combination of the corporate competences of the SUMCO
Group and our partnership with customers will serve as a foundation for creating a company capable of achieving sustained growth and maintaining a robust structure.
We eagerly look forward to the continued support of our shareholders.
Implementing the Business Restructuring Plan to Build
a Robust Corporate Structure and to Achieve Sustained Growth
Top Message
4
SUMCO CORPORATION