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, 2024

(Based on Japanese GAAP)
July 31, 2024
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 dividend payment date:
Supplementary material:
Yes
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, 2024 (From April 1, 2024 to June 30, 2024)(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, 2024

52,783(14.1)

10,265

1.5

10,808

(2.7)

7,574

(4.8)

June 30, 2023

61,44753.9

10,10980.7

11,109

67.2

7,952

57.2

Note:
Comprehensive income:3 months ended June 30, 2024:
3 months ended June 30, 2023:

Basic earnings per share

8,222 million yen [(5.9) %]8,738 million yen [ 54.5 %]Diluted earnings per share

3 months ended

yen

yen

June 30, 2024

42.33

41.83

June 30, 2023

46.48

44.28

Note:
The Company implemented a stock split on January 1, 2024 at a ratio of 1 common stock to 5 shares. Basic earnings per share anddiluted earnings per share are computed base on the assumption that the stock split was implemented at the beginning of the year
ended March 31, 2024.
(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders’ equity ratio

millions of yen

millions of yen%

June 30, 2024

177,895

135,058

75.8

March 31, 2024

186,840

131,020

70.1

Reference: Shareholder’s equity: As of June 30, 2024:

134,899 million yen

As of March 31, 2024: 131,020 million yen

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

2nd quarter-end

3rd quarter-end

Year-end

Total

Year ended/ending

yen

yen

yen

yen

yen

March 31, 2024-

115.00

-

25.00

-

March 31, 2025

25.00

-

25.00

50.00

March 31, 2025 (Forecast)

Note: Revision of the latest dividends forecast: No
The Company implemented a stock split on January 1, 2024 at a ratio of 1 common stock to 5 shares. Dividends for 2nd quarterof fiscal year ended March 31, 2024 are presented in actual value terms on a pre-split basis. The total annual dividend per sharefor fiscal year ended March 31, 2024 is presented as “-” considering the effect of the stock split. The total annual dividend pershare for the fiscal year ended March 31, 2024 is 48.00 yen after the stock split.
3. Consolidated earnings forecast for the fiscal year ending March 31, 2025 (From April 1, 2024 to March 31, 2025)(Percentage represents change from the same period of the previous fiscal year)
Net sales
millions of yen

Year ending March 31, 2025

200,000

Operating income% millions of yen(9.6)

27,000

Profit attributable toowners of parent

Ordinary income% millions of yen(24.0)

27,000% millions of yen(27.3)

19,500

Basic earnings per share%yen(25.4)

108.92

Note: Revision of the latest consolidated earnings forecast: No※ Notes(1) Significant changes in the scope of consolidation during the current reporting period: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
Yes① 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:
Note: Please refer to “2. Quarterly consolidated financial statements and principal notes (4) Notes to consolidated financial statements:
Changes in accounting policies” on page 10 for more details.
(4) Number of issued shares (Common stock)① Number of shares issued at the end of theperiod (including treasury stock)

As of② Number of treasury stock held at the endof the period

As of③ Average number of shares during the period

June 30, 2024
June 30, 2024
3 months ended
June 30, 2024

179,058,580
788
178,924,151

As ofMarch 31, 2024

178,687,405

As of

788

March 31, 2024
3 months ended
June 30, 2023

171,068,070

Note: The Company implemented a stock split on January 1, 2024 at a ratio of 1 common stock to 5 shares. “Average number ofshares during the period” is computed based on the assumption that the stock split was implemented at the beginning of the year
ended March 31, 2024.
※ Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: Yes (voluntary)※ 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. Overview of operating results (3) Consolidated earnings
forecast and other forward-looking information” on page 4 for more details.

Attachment contents
1. Overview of operating results…………………………………………………………………………………………………

2(1) Overview of operating results for the 3 months ended June 30, 2024……………………………………………………

2(2) Overview of financial position for the 3 months ended June 30, 2024 ………………………………………………….

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

4

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

5(1) Quarterly consolidated balance sheets ……………………………………………………………………………………

5(2) Quarterly consolidated statements of income and comprehensive income ………………………………………………

7

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

7

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

8(3) Quarterly consolidated statements of cash flows …………………………………………………………………………

9(4) Notes to consolidated financial statements…………………………………………………………………………….….

10

Changes in accounting policies .…………………………………………………………………………………………

10

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

10

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

10

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

10

Subsequent Events………………………………………………….………………………….………………………...

10

- 1 -

1. Overview of operating results(1) Overview of operating results for the 3 months ended June 30, 2024
The global economy has continued to experience high uncertainty during the 3 months ended June 30, 2024, due to increased global
instability, exacerbated by factors such as geopolitical risks, including the prolonged Russian invasion of Ukraine and escalation in
Middle East tensions, strong inflationary pressures, persistently high interest rates primarily in Europe and the U.S., as well as stagnant
domestic demand in China. Consequently, the global economic growth rates have remained low, despite a slight improvementcompared to previous quarter ended March 31, 2024. Furthermore, differences in monetary policies among countries and regions haveresulted in a continuous depreciation of the Japanese yen.
The semiconductor market has experienced significant recovery with double-digit growth compared to the 3 months ended June 30,
2023, driven by factors such as the rapid adoption of generative AI (artificial intelligence) since the latter half of previous fiscal year
ended March 31, 2024, and the recovery in smartphone demand. By product category, memories and logic ICs have achieved doubledigit growth compared to the 3 months ended June 30, 2023. This is due to inventory adjustments and improved supply-demandconditions for memories, as well as robust demand for logic ICs in data centers. In terms of applications, there are varied recovery
patterns. There has been an expansion in demand for data centers driven by the strong demand for generative AI, as well as a recovery
in demand for smartphones and PCs. However, demand for industrial equipment, office equipment, and automotive applications
remained either negative or flat compared to the 3 months ended June 30, 2023. In the Logic ICs sector, the data center & networking
as well as automotive areas where 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) focuses, experienced growthcompared to the 3 months ended June 30, 2023. Moreover, there has been a resilient increase in demand for semiconductors using
cutting-edge technologies in these areas.
The Group has been acquiring more design wins in its focus areas including automotive and data center & networking. This success isdue to the transformation of the business model, shift of focus areas to high-growth and cutting-edge business areas where more global
large-scale businesses are expected, as well as structural reform including bold transformation in business structure, all implemented
by current CEO since his appointment in April 2018 (which we refer to as phase 1 transformation). Through the transformation, we
have acquired design win amount (a foreign exchange assumption of ¥100=U.S. $1 has been used) of roughly 200 billion yen during
each of the fiscal years ended March 31, 2020, 2021 and 2022, an increase from the design win amount of roughly 100 billion yen for
the fiscal year ended March 31, 2019. From the fiscal year ended March 31, 2023, we have been further achieving design win amountof 250 billion yen. Additionally, the acquired design wins have entered the mass production stage and are steadily contributing toincreasing net sales. Moreover, we are also proceeding with our next stage of transformation, which we call phase 2 transformation.
This phase aims to establish a competitive R&D structure and create a dynamic business culture as a global company. We areintensifying our efforts to transform our corporate systems, organizational structures, and employee awareness through ongoing
communication with global customers, players in the semiconductor ecosystem and investors.
Additionally, we established the Global Leading Group, aiming to create a structure tasked with large-scale advanced technology
projects as model cases. With the Global Leading Group at the core, we have been continuously improving by integrating several key
activities: establishing a computer-architecture-based design and development platform as well as standard design and development
processes suitable for the Solution SoC business model, enhancing both the efficiency and visibility of these processes, alongsidereforms in design and development management. Moreover, we have opened the new branch office in Bangalore, India, underSocionext America Inc. in previous fiscal year ended March 31, 2024, to strengthen our global design and development capabilities.
Our research and development costs consist of both upfront investments in advanced technologies for acquiring design wins in our
focus areas and investments in product development linked to acquired design wins. For the 3 months ended June 30, 2024, ourresearch and development costs increased by 23.0% to 14,961 million yen, due mainly to product development related with increasingacquired design wins. To utilize the latest advanced technologies in the evolving ecosystem, we closely collaborate with partners
including Arm and TSMC, and actively invest in advanced technologies including 2nm and finer process nodes, advanced packaging
technologies such as chiplet, application of latest EDA tools as well as platformization. The development of SoCs for Advanced
Driver Assistance Systems (ADAS)/ Autonomous Driving (AD) using 3nm automotive process is also progressing smoothly. Besides,
we will continue to be engaged in advanced technologies including 2nm or finer process nodes and chiplets as well as in the adoptionof AI for design and development process.
Moreover, we have integrated the related organizations of the production planning, control and supply chain management in Taiwan
and Japan to enhance our global production and procurement system. Given the concentration of suppliers in Taiwan, we haveallocated a production control team there to establish a direct interface and strengthen our coordination with these suppliers. As aresult, we have been developing a structure that allows us to respond swiftly to any changes in manufacturing capacities of ourmanufacturing partners.

- 2 -As we acquired design wins of large-scale projects for advanced development over the past few years, we have strengthened ourrelationships with global companies that form the ecosystem across the semiconductor industry. We have particularly made progress injoint development projects in advanced technology areas by establishing and enhancing management-level relationships with global
companies headquartered in North America and Taiwan.
The consolidated net sales for the 3 months ended June 30, 2024 were 52,783 million yen, a decrease of 14.1% from the 3 months
ended June 30, 2023. Our net sales consist of product revenue from the applicable products which entered the mass production stage
and NRE revenue received from customers based on costs incurred in scheduled milestones during the design and development
process. Product revenue was 42,289 million yen, decreased by 20.1% compared to the 3 months ended June 30, 2023. The decrease
was due mainly to the special demand of 5G base stations from a Chinese customer concluded in fiscal year ended March 31, 2024,
despite that the leading-edge technology projects which have entered mass production stage, in application markets such as
automotive, and smart devices and have contributed to product revenue. NRE revenue was 10,313 million yen, an increase of 23.1%
from the 3 months ended June 30, 2023, due to ongoing development projects of products requiring 7nm and finer process nodes in
automative area.
[Net sales](millions of yen)
3 months

3 months

ended June 30, 2023

ended June 30, 2024

Semiconductor products (product revenue)

52,92042,289Non-recurring engineering (NRE revenue)

8,381

10,313

Others

146

181

Total

61,44752,783

Cost of sales was 22,947 million yen, a decrease of 33.5% from the 3 months ended June 30, 2023. Selling, general and administrative
expenses were 19,571 million yen, an increase of 16.2% from the 3 months ended June 30, 2023. 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 months ended June 30, 2024 increased by 1.5% from the 3 months ended
June 30, 2023 to 10,265 million yen. Ordinary income was 10,808 million yen due mainly to foreign exchange gain, decreased by
2.7% from the 3 months ended June 30, 2023. Profit attributable to owners of parent decreased by 4.8% from the 3 months ended June30, 2023, to 7,574 million yen.
The Japanese yen/U.S. dollar average exchange rate for the 3 months ended June 30, 2024 was ¥155.9=U.S. $1, a depreciation of¥18.5 compared to the 3 months ended June 30, 2023.
The Group has a single segment primarily of SoC developed with the solution SoC business model.
(2) Overview of financial position for the 3 months ended June 30, 2024
①Assets, liabilities and net assets(Assets)
Current assets as of June 30, 2024 decreased by 2,913 million yen from the end of the previous fiscal year to 135,988 million yen. Thisis mainly due to the decrease in inventories and accounts receivables-other in accordance with decreased customer-requested upfront
procurement despite the accounts receivable increased in accordance with increased NRE revenue.
Non-current assets as of June 30, 2024 decreased by 6,032 million yen from the end of the previous fiscal year to 41,907 million yen.
This is due mainly to the increased depreciation expenses despite the acquisition of reticles, IP, etc. in connection with productdevelopment of acquired design wins.
As a result, total assets as of June 30, 2024 decreased by 8,945 million yen from the end of the previous fiscal year to 177,895 million
yen.
(Liabilities)
Current liabilities as of June 30, 2024 decreased by 13,030 million yen from the end of the previous fiscal year to 40,064 million yen.
This is due mainly to the decrease of income taxes payable and accrued expenses related with the payment of income taxes andbonuses, as well as the decrease in accounts payables-trade and accounts payable-other related to customer-requested upfront
procurement.
As a result, total liabilities as of June 30, 2024 decreased by 12,983 million yen from the end of the previous fiscal year to 42,837- 3 -million yen.
(Net assets)
Net assets as of June 30, 2024 increased by 4,038 million yen from the end of the previous fiscal year to 135,058 million yen. This isdue mainly to 7,574 million yen in profit attributable to owners of parent for 3 months ended June 30, 2024 and the proceeds from theexercise of stock options.
As a result, the shareholders’ equity ratio has been 75.8%, increased by 5.7 percent points from the end of the previous fiscal year.
② Cash flows
Cash and cash equivalents as of June 30, 2024 decreased by 658 million yen from the end of the previous fiscal year to 69,080 million
yen.
Net cash provided by operating activities was 4,560 million yen for the 3 months ended June 30, 2024, compared to 4,508 million yen
used for the 3 months ended June 30, 2023. This is due mainly to profit before income taxes of 10,808 million yen, despite thepayment of income taxes of 5,528 million yen.
Net cash used in investing activities was 1,622 million yen for the 3 months ended June 30, 2024, compared to 4,227 million yen used
for the 3 months ended June 30, 2023. This is due mainly to the purchases of 973 million yen of property, plant and equipment
including reticles and test boards for product development for the acquired design wins, and the purchases of 624 million yen of
intangible assets including IP.
Net cash used in financing activities was 4,468 million yen, compared to 3,356 million yen used for the 3 months ended June 30, 2023,
and this is due to payment of the dividends of 4,467 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, 2025 remains the same as the announcement in“Consolidated Financial Results for the Fiscal Year Ended March 31, 2024” on April 26, 2024.

- 4 -2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2024
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 intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Total investments and other assets
Total non-current assets
Total assets- 5 -As of June 30, 2024

69,73835,257
6,090
19,414
2,935
5,467
138,901

69,08037,802
5,834
16,0801,607
5,585
135,9883,441
6
17,318800
235
21,8003,313
615,721
800
198
20,03816,166
2,298
18,464

15,2102,231
17,441

0
6,740
935
7,675
47,939186,840

0
3,468
960
4,428
41,907
177,895

(Millions of yen)
As of March 31, 2024
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
Lease liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
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
Total net assets
Total liabilities and net assets- 6 -As of June 30, 2024

15,764
9,334
8,859
6,817
9,319
3,001
53,094

16,038
9,011
4,464
937
5,188
4,426
40,064

350
2,042
334
2,726
55,820

353
2,069
351
2,773
42,83732,65685
32,656
63,604(3)
128,998

32,74237
32,742
66,711(3)
132,229

2,022
2,022
131,020
186,840

2,670
2,670
159
135,058
177,895

(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, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest 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 owners of parent- 7 -3 months ended
June 30, 2024
61,44734,496
26,951
16,842
10,10952,783
22,947
29,836
19,571
10,265

56
943
15
1,014

103
445
9
557

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

14
14
10,80810,808
(49)
3,283
3,234
7,574
7,574

Quarterly consolidated statements of comprehensive income(For 3 months)(Millions of yen)
3 months ended
June 30, 2023
ProfitOther comprehensive income
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent- 8 -3 months ended
June 30, 2024
7,952

7,574

786
786
8,738

648
648
8,222

8,738

8,222

(3) Quarterly consolidated statements of cash flows(Millions of yen)
3 months ended
June 30, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Interest and dividend income
Loss on retirement 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
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Other
Net cash used in investing activities
Cash flow from 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- 9 -3 months ended
June 30, 2024

11,109
2,894
(56)
506
(4,375)
3,922(4,119)(367)(8,235)
256
1,535
56
(6,099)(4,508)10,808
3,740
(103)
179
(1,407)
3,590(2,200)1,174(5,902)
106
9,985
103
(5,528)4,560(3,485)(738)(4)(4,227)

(973)
(624)
(25)
(1,622)

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

(125)
172
(48)
(4,467)(4,468)889

872(11,202)(658)

45,13669,73833,93469,080(4) Notes to consolidated financial statements
Changes in accounting policies(Application of Accounting Standard for Current Income Taxes)
Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022) (hereinafter referred to as “Revised
Accounting Standard 2022”), have been adopted from the beginning of the current fiscal year ended March 31, 2025 under review.
The amendment to categories in which current income taxes should be recorded (taxes on other comprehensive income) follows
the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional
treatment prescribed in the proviso (2) of the paragraph 65-2 of Implementation Guidance on Tax Effect Accounting (ASBJ
Guidance No. 28, October 28, 2022) (hereinafter referred to as “Revised Implementation Guidance 2022”). These changed inaccounting policies have no impact on the consolidated financial statements.
For the amendment to changes in accounting treatment of the consolidated financial statements, when gains and losses on sales ofshares in subsidiaries resulting from transactions between the consolidated companies were deferred for tax purposes, the Revised
Implementation Guidance 2022 have been adopted from the beginning of the first quarter of the year ending March 31, 2025. Thechanges in accounting policies were applied retrospectively. Hence, the consolidated financial statements for the previous firstquarter ended June 30, 2024 and the previous fiscal year ended March 31, 2024 were modified retrospectively. This change inaccounting policies has no impact on the consolidated financial statements for the previous first quarter ended June 30, 2023 andthe previous fiscal year ended March 31, 2024.

Segment information
1. 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.
2. 3 months ended June 30, 2024
(From April 1, 2024 to June 30, 2024)
The Group has a single segment primarily of SoC developed with the solution SoC business model.

Significant changes in shareholders’ equity
None.

Assumptions of a going concern
None.

Subsequent Events
None.

- 10 -