Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the 3 Months Ended June 30, 2023

(Based on Japanese GAAP)
July 28, 2023
Socionext Inc.
Stock exchange listing: Tokyo
6526
URL: https://www.socionext.com/en/
Masahiro Koezuka, Representative Director, Chairman, President and CEO
Hiromasa Nakajima, General Manager, Public Relations & Investor
Contact person:
Tel: +81-45-568-1000
Relations Office
Scheduled filing date of statutory quarterly financial report:
August 10, 2023
Scheduled dividend payment date:
Supplementary material:
Yes
Quarterly financial results presentation:
Yes (for institutional investors and analysts)
Company name:
Code number:
Representative:(Monetary amounts are rounded to the nearest millions of yen)
1. Consolidated financial results for the 3 months ended June 30, 2023 (From April 1, 2023 to June 30, 2023)(1) Consolidated financial results(Percentage represents change from the same period of the previous fiscal year)
Net sales

Operating income

Profit attributable to owners ofparentOrdinary income

3 months ended

millions of yen%

millions of yen%

millions of yen%

millions of yen%

June 30, 2023

61,44753.9

10,10980.7

11,109

67.2

7,952

57.2

June 30, 2022

39,934

-

5,594

-

6,644

-

5.058

-

Note:
Comprehensive income:3 months ended June 30, 2023: 8,738 million yen (54.5%)

Basic earnings per share

3 months ended June 30, 2022: 5,655 million yen(-%)

Diluted earnings per share

3 months ended

yen

yen

June 30, 2023

232.42221.40June 30, 2022

150.24-

Notes:
1. The Company did not prepare consolidated financial statements for the 3 months ended June 30, 2021, as a result, the change ofthe 3 months ended June 30, 2022 from the same period of the previous fiscal year is not presented.
2. Basic earnings per share for the 3 months ended June 30, 2022 is computed based on the assumption that the share consolidationand other events in September, 2022 were conducted at the beginning of the year ended March 31, 2023.
3. Diluted earnings per share for 3 months ended June 30, 2022 is not presented because the Company’s shares are unlisted as ofJune 30, 2022, therefore an average quoted stock price is not available although there are dilutive shares.
(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders’ equity ratio

millions of yen

millions of yen%

June 30, 2023

184,043

115,472

62.7

March 31, 2023

193,945

109,864

56.6

Reference: Shareholder’s equity: As of June 30, 2023: 115,326 million yen

As of March 31, 2023: 109,852 million yen

2. Dividends per share
Annual dividends
1st quarter-end
Year end

2nd quarter-end

3rd quarter-end

Year-end

Total

yen

yen

yen

yen

yen

March 31, 2023

-

0.00

-

210.00210.00March 31, 2024

105.00-105.00210.00March 31, 2024(Forecast)

Note: Revision of the latest dividends forecast: No
3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(Percentage represents change from the same period of the previous fiscal year)
Net sales
millions of yen

Year ending March 31, 2024

200,000

Operating income% millions of yen% millions of yen

3.8

3.6

22,500

Profit attributable toowners of parent

Ordinary income

22,500

Basic earnings per share% millions of yen%

yen

17,500(11.5)

504.55(4.0)

Notes: Revision of the latest consolidated earnings forecast: No※ Notes(1) Changes in significant subsidiaries during the current reporting period(Changes in specified subsidiaries resulting from changes in the scope of consolidation):No(2) Application of special accounting methods for quarterly consolidated financial statements:

No(3) Changes in accounting policies, accounting estimates and retrospective restatements for consolidated financial statements
No① Changes in accounting policies due to revisions of the accounting standards and other regulations:No② Changes arising from factors other than ①:No③ Changes in accounting estimates:
No④ Retrospective restatements:(4) Number of issued shares (Common stock)① Number of shares issued at the end of theperiod (including treasury stock)

1st quarter ended② Number of treasury stock held at the endof the period

1st quarter ended③ Average number of shares during the period

June 30, 2023
June 30, 2023
1st quarter ended
June 30, 2023

34,838,421
55
34,213,614

Year ended March
31, 2023

33,666,666

Year ended March-

31, 2023
1st quarter ended
June 30, 2022

33,666,666

Note: Average number of shares during 1st quarter ended June 30, 2022 is computed based on the assumption that the shareconsolidation and other events in September, 2022 was conducted at the beginning of the year ended March 31, 2023.
※ These quarterly consolidated financial results are not subject to the review procedure of external auditors’ quarterly review.
※ Explanation of the proper use of earnings forecast and other special notes
These materials may contain forward-looking statements that are based on management’s current information, actual results may
differ materially from these forward-looking statements for various reasons. For information regarding the assumptions used toprepare the forecast and cautionary note of the forecast, please refer to “1. Qualitative information regarding the quarterly
consolidated financial results (3) Consolidated earnings forecast and other forward-looking information” on page 3 for more details.

Attachment contents
1.Qualitative information regarding the quarterly consolidated financial results ………………………………………………

2(1) Description of operating results …………………………………………………………………………………………

2(2) Description of financial position………………………………………………………………………………………….

2(3) Consolidated earnings forecast and other forward-looking information………………………………………………….

3

2. Quarterly consolidated financial statements and principal notes ……………………………………………………………

4(1) Quarterly consolidated balance sheets ……………………………………………………………………………………

4(2) Quarterly consolidated statements of income and comprehensive income ………………………………………………

6

Quarterly consolidated statements of income…………………………………………………………………………

6

Quarterly consolidated statements of comprehensive income ………………………………………………………

7(3) Quarterly consolidated statements of cash flows …………………………………………………………………………

8(4) Notes to consolidated financial statements…………………………………………………………………………….….

9

Assumptions of a going concern…………………………………………………………………………………………

9

Significant changes in shareholders’ equity ………………………………………………………….…………………

9

Segment information………………………………………………….………………………….………………………

9

- 1 -

1.Qualitative information regarding the quarterly consolidated financial results(1) Description of operating results
During the 3 months ended June 30, 2023, the global economy has shown a gentle upward trend in terms of both supply and demand.
However, the economic recovery has slowed down due to factors such as rising interest rates, mainly in the United States and Europe,as the countermeasures against soaring prices. Additionally, the prolongation of the conflict in Ukraine, US-China trade frictions, aswell as deteriorating economic growth in countries and regions have further increased uncertainties regarding future economic
developments. Furthermore, differences in monetary policies among countries and regions resulted in volatility of the Japanese yen.
The demand for semiconductor products declined due to the subsiding special demand derived from COVID-19 as well as theweakening demand for products such as smartphones, PCs, and consumer electronics resulted by economic slowdown. On the other
hand, manufacturing capacity constraints of manufacturers (foundries as well as OSAT) that led to limitations in semiconductor supply
have been easing.
Under such circumstances, the Group (“the Group”, “the Company”, “we” and “our” refer to Socionext Inc., and its consolidated
subsidiaries, or Socionext Inc. on a non-consolidated basis, as the context may require) achieved the completion of the design anddevelopment stage of certain design wins acquired from 2019 based on 7nm and finer process nodes in our focus areas including data
center & networking, automotive, and entered the mass production stage, which has been contributed to increased net sales especiallyin product revenue of advanced technologies.
As a result, the consolidated net sales for the 3 months ended June 30, 2023 were 61,447 million yen, an increase of 53.9% from the 3months ended June 30, 2022. Product revenue was 52,920 million yen, increased by 70.5% compared to the 3 months ended June 30,
2022. The increase was due mainly to an increase in net sales from our design wins projects acquired from 2019 that have sequentiallyentered the mass production stage and increased production volumes, in particular of products using cutting-edge processes, short-term
special demand from a Chinese customer, as well as the positive impact of the depreciation of the Japanese yen. NRE revenue was
8,381 million yen, which is consistent with the corresponding period of the previous fiscal year, resulted from ongoing development
projects of products using advanced process technologies.
[Net sales](millions of yen)
3 months
ended June 30, 2022

3 months
ended June 30, 2023

Semiconductor products (product revenue)

31,032

52,920Non-recurring engineering (NRE revenue)

8,732

8,381

Others

170

146

Total

39,93461,447

Cost of sales was 34,496 million yen, an increase of 73.7% from the corresponding period of the previous fiscal year due to increased
product revenue and the depreciation of the Japanese yen. Selling, general and administrative expenses were 16,842 million yen, an
increase of 16.3% from the 3 months ended June 30, 2022, including research and development costs of 12,160 million yen (anincrease of 15.0% compared to the corresponding period of the previous fiscal year). The increase in selling, general andadministrative expenses was due to increasing development projects of products using advanced process technologies and thedepreciation of the Japanese yen. Operating income in the 3-month period ended June 30, 2023 increased by 80.7% from the 3 months
ended June 30, 2022 to 10,109 million yen. Ordinary income was 11,109 million yen, an increase of 67.2% from the corresponding
period of the previous fiscal year, due mainly to foreign exchange gain. Profit attributable to owners of parent increased by 57.2%
from the 3 months ended June 30, 2022, to 7,952 million yen. The Japanese yen/U.S. dollar average exchange rate for the 3 months
ended June 30, 2023 was ¥137.4=U.S. $1, a depreciation of ¥7.8 compared to the 3 months ended June 30, 2022.
The Group has a single segment of Solution SoC business.
(2) Description of financial position①Assets, liabilities and net assets(Assets)
Current assets as of June 30, 2023 decreased by 8,374 million yen from the end of the previous fiscal year to 147,693 million yen. Thisis due mainly to the decrease in Cash on hand and in banks, which resulted from the payment of the dividends and income taxes- 2 -despite the proceeds from the exercise of stock options. In addition, there are increase in accounts receivable as well as decrease ininventories in accordance with the increased product revenue. Non-current assets as of June 30, 2023 decreased by 1,528 million yen
from the end of the previous fiscal year to 36,350 million yen. The main capital expenditures in the period include the acquisition ofreticles, IP, etc. in connection with products development of acquired design wins, and the expansion of data centers in accordancewith increasing development scale.
As a result, total assets as of June 30, 2023 decreased by 9,902 million yen from the end of the previous fiscal year to 184,043 million
yen.
(Liabilities)
Current liabilities as of June 30, 2023 decreased by 15,569 million yen from the end of the previous fiscal year to 66,769 million yen.
This is due mainly to the payment of income taxes, the decrease in accounts payables related to upfront procurement on customerrequested wafer inventories, and the decrease in liabilities related to chargeable subcontracting in accordance with increased productrevenue.
As a result, total liabilities as of June 30, 2023 decreased by 15,510 million yen from the end of the previous fiscal year to 68,571
million yen.
(Net assets)
Net assets as of June 30, 2023 increased by 5,608 million yen from the end of the previous fiscal year to 115,472 million yen. This isdue mainly to 7,952 million yen in profit attributable to owners of parent for 3 months ended June 30, 2023 and the proceeds from theexercise of stock options, which offset the impact of distribution of surplus.
As a result, the shareholders’ equity ratio has been 62.7%, increased by 6.1% from the end of the previous fiscal year. This is due
mainly to the decrease in upfront procurement on customer-requested wafer inventories in accordance with increased product revenue.
② Cash flows
Cash and cash equivalents as of June 30, 2023 decreased by 11,202 million yen from the end of the previous fiscal year to 33,934
million yen.
Net cash used in operating activities was 4,508 million yen for the 3 months ended June 30, 2023. This is due mainly to profit before
income taxes of 11,109 million yen, income taxes paid of 6,099 million yen, a decrease in inventories of 3,922 million yen and anincrease in accounts receivable of 4,375 million yen in accordance with increased product revenue. The decrease in inventories is due
mainly to the decrease in upfront procurement on customer-requested wafer inventories. Meanwhile such decrease has been
contributed to the increase in product revenue. The impact of such upfront procurement is also included in “Decrease (increase) inother assets” and “Increase (decrease) in other liabilities” of consolidated statements of cash flows.
Net cash used in investing activities was 4,227 million yen for the 3 months ended June 30, 2023. This is due mainly to the purchasesof 3,485 million yen of property, plant and equipment including reticles and test boards using for products development related toacquired design wins, and those for improving the environment of design and development, and the purchases of 738 million yen of
intangible assets including IP.
Net cash used in financing activities was 3,356 million yen and this is due to payment of the dividends of 7,070 million yen despite theproceeds from exercise of stock options of 2,684 million yen and deposits for subscriptions of shares of 1,123 million yen.
(3) Consolidated earnings forecast and other forward-looking information
The forecast for the consolidated earnings for the current fiscal year ending March 31, 2024 remains the same as the announcement in“Consolidated Financial Results for the Fiscal Year Ended March 31, 2023” on April 28, 2023.

- 3 -2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash on hand and in banks
Accounts receivable-trade, net
Finished goods
Work in process
Accounts receivable-other
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment, net
Intangible assets
Technology assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Total investments and other assets
Total non-current assets
Investments and other assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-otherAccrued expenses
Income taxes payable
Liabilities related to chargeable subcontracting
Other current liabilities
Total current liabilities
Long-term liabilities
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities- 4 -As of June 30, 2023

45,13640,8098,187
39,528
16,2096,198
156,067

33,93447,253
10,73133,063
15,344
7,368
147,6932,583
813,438800
351
17,1802,636
815,229800
366
19,03911,494
1,468
12,962

10,476
1,681
12,157

0
6,897
839
7,736
37,878
193,945

0
4,307
847
5,154
36,350184,043

23,421
24,551
5,755
6,942
18,8692,800
82,33821,33923,453
3,660
925
12,9894,403
66,769

343
1,400
1,743
84,081

348
1,454
1,802
68,571

(Millions of yen)
As of March 31, 2023
Net assets
Shareholders' equity
Common stock
Deposits for subscriptions of shares
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustments
Total accumulated other comprehensive income
Share award rights
Share subscription rights
Total net assets
Total liabilities and net assets- 5 -As of June 30, 2023

30,20030,20048,630109,030

31,542
1,123
31,54249,512(1)
113,718822
822
12
109,864
193,945

1,608
1,608
146
115,472
184,043

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(For 3 months)(Millions of yen)
3 months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Foreign exchange gain
Other income
Total non-operating income
Non-operating expenses
Other expenses
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests- 6 -3 months ended
June 30, 2023
39,93419,85820,076
14,4825,594

61,44734,496
26,951
16,842
10,109

1,049
6
1,055

943
71
1,014

5
5
6,644
6,644
896
690
1,586
5,058
5,058

14
14
11,109
11,109
482
2,675
3,157
7,952
7,952

Quarterly consolidated statements of comprehensive income(For 3 months)(Millions of yen)
3 months ended
June 30, 2022
ProfitOther comprehensive income
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent- 7 -3 months ended
June 30, 2023
5,058

7,952

597
597
5,655

786
786
8,738

5,655

8,738

(3) Quarterly consolidated statements of cash flows(Millions of yen)
3 months ended
June 30, 2022
Operating activities
Profit before income taxes
Depreciation and amortization
Interest and dividend income
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Decrease (increase) in accounts receivable
Decrease (increase) in inventories
Increase (decrease) in accounts payable
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other
SubtotalInterest and dividends received
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of non-current assets
Other
Net cash used in investing activities
Financing activities
Repayments of lease obligations
Proceeds from exercise of stock options
Deposits for subscriptions of shares
Purchase of treasury stock
Dividends paid
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal
year
Cash and cash equivalents at the end of the period- 8 -3 months ended
June 30, 2023

6,644
2,388
(5)
22
(10)
(5,626)(2,891)
1,942(11,138)
5,556
(255)
(3,373)
5(2,109)(5,477)

11,109
2,894
(56)
506
(4,375)
3,922(4,119)(367)(8,235)
256
1,535
56
(6,099)(4,508)(2,812)(1,703)10(4,505)(3,485)(738)(4)(4,227)

(79)
(79)

(92)
2,684
1,123
(1)
(7,070)(3,356)956

889(9,105)(11,202)46,27145,136

37,16633,934

(4) Notes to consolidated financial statements
Assumptions of a going concern
None.
Significant changes in shareholders’ equity
None.
Segment information
1. 3 months ended June 30, 2022
(From April 1, 2022 to June 30, 2022)
The Group has a single segment primarily of SoC developed with the solution SoC business model.
2. 3 months ended June 30, 2023
(From April 1, 2023 to June 30, 2023)
The Group has a single segment primarily of SoC developed with the solution SoC business model.

- 9 -