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 6 Months Ended September 30, 2022

(Based on Japanese GAAP)
October 28, 2022
Company name:
Socionext Inc.
Stock exchange listing: Tokyo
Code number:6526
URL: https://www.socionext.com/en/
Representative:
Masahiro Koezuka, Representative Director, Chairman, President and CEO
Contact person:
Shin-ichi Ando, Director and Corporate Executive Vice PresidentTel: +81-45-568-1111
Scheduled filing date of statutory quarterly financial report:
November 14, 2022
Scheduled dividend payment date:
Supplementary material:
Yes
Quarterly financial results presentation:
Yes (for institutional investors and analysts)(Monetary amounts are rounded to the nearest millions of yen)
1. Consolidated financial results for the 6 months ended September 30, 2022 (From April 1, 2022 to September 30, 2022)(1) Consolidated financial results(Percentage represents change from the same period of the previous fiscal year)
Net sales
6 months ended

Operating income

Profit attributable to owners ofparent

Ordinary income

millions of yen%millions of yen%millions of yen%millions of yen%

September 30, 2022

82,767-

10,456-

12,295-

10,013-September 30, 2021--------

Note: Comprehensive income: 6 months ended September 30, 2022 10,860 million yen (-%) 6 months ended September 30, 2021:

Basic earnings per share
6 months ended- million yen(-%)

Diluted earnings per share

yenyenSeptember 30, 2022

297.42-September 30, 2021--Notes:
1. The Company did not prepare consolidated financial statements for the 6 months ended September 30, 2021, as a result, theamount of the 6 months ended September 30, 2021 and the change from the same period of the previous fiscal year is notpresented.
2. Diluted earnings per share is not presented because the Company’s shares are unlisted as of September 30, 2022, and therefore anaverage quoted stock price is not available although there are dilutive shares.
3. The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on September
5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of Type A shares andType B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for Type A shares pershare and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all the shares ofType A shares and Type B shares. Basic earnings per share is computed based on the assumption that the share consolidation andother events above were conducted at the beginning of the year ending March 31, 2023.
(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

millions of yen

millions of yen%

September 30, 2022

168,859

100,469

59.5

March 31, 2022

118,428

89,60975.7

Reference: Shareholder’s equity As of September 30, 2022:

100,457 million yen

As ofAs of March 31, 2022: 89,597 million yen

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

2nd quarter-end

3rd quarter-end

Year-end

Totalyenyenyenyenyen

March 31, 2022

---

0.00

0.00

March 31, 2023-

0.00-160.00

160.00Year end

March 31, 2023(Forecast)

Note: Revision of the latest dividends 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
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:(4) Number of issued shares (Common stock)① Number of shares issued at the end of theperiod (including treasury stock)

2nd quarter ended② Number of treasury stock held at the end ofthe period

2nd quarter ended③ Average number of shares during the period

September 30, 2022
September 30, 2022
2nd quarter ended
September 30, 2022

33,666,666
33,666,666

Year ended March
31, 2022

33,666,666

Year ended March-31, 2022
2nd quarter ended
September 30, 2021

33,666,666

Note: The Company conducted a 4-for-1 share consolidation of its common stock, Type A shares and Type B shares each on
September 5, 2022. In addition, due to exercise of put options by its shareholders, the Company acquired all the shares of TypeA shares and Type B shares on September 6, 2022 and delivered as consideration 1.3466666 shares of common stock for TypeA shares per share and 1 share of common stock for Type B shares per share. The Company conducted the cancellation of all theshares of Type A shares and Type B shares. Number of shares issued at the end of the period, treasury stock held at the end of
the period, average number of shares during the period are computed based on the assumption that the share consolidation wasconducted at the beginning of the year ending March 31, 2022.
※ These quarterly consolidated financial results are not subject to the review procedure of external auditors’ quarterly review.

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

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

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

2

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

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

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

5

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

5Quarterly consolidated statements of comprehensive income ………………………………………………………

6(3) Quarterly consolidated statements of cash flows …………………………………………………………………………

7(4) Notes to consolidated financial statements…………………………………………………………………………….….

8Assumptions of a going concern…………………………………………………………………………………………

8

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

8Changes in accounting policies………………………………………………………………………………………….

8

Additional information……………………………………………………………………………………………….….

8

Segment information (From April 1, 2022 to September 30, 2022) ………………………………………………….…

8- 1 -1.Qualitative information regarding the quarterly consolidated financial results(1) Description of operating results
During the 6 months ended September 30, 2022, the economic slowdown continued due to uncertainties in the global economy caused
by factors such as the Covid-19 pandemic, rising energy and food costs related to the conflict in Ukraine, rising interest rate mainly in
the United States and Europe due to the countermeasures against soaring prices. In addition, Japanese yen depreciated rapidly andsignificantly due to differences in monetary policies in countries and areas.
Semiconductor manufacturing capacity constraints continued to constrain our product revenue, however, the available capacity has
been gradually increased especially in the area of advanced technologies.
The semiconductor products (product revenue) in the 6-month period ended September 30, 2022 achieved 66,325 million yen. This isdue mainly to the completion of the design and development stage of design wins acquired since 2019 based on 7nm and finer process
nodes in our high-growth focus areas including Automotive, 5G, Smart devices and the applicable products enter into mass
production, the acceleration of the mass production due to the release of manufacturing capacity described above, as well as thepositive impact under the weakening of the Japanese yen. The non-recurring engineering (NRE revenue) was 16,087 million yen due
mainly to increasing development projects of products and applications using advanced finer process technologies. As a result, theconsolidated net sales for the 6 months ended September 30, 2022 were 82,767 million yen.
Operating income was 10,456 million yen, ordinary income was 12,295 million yen, and profit attributable to owners of parent was
10,013 million yen.
The Group (Socionext Inc., and its consolidated subsidiaries) has a single segment of Solution SoC business. The breakdown of net
sales is as below:[Net sales](millions of yen)
Current 6 months
ended September 30, 2022

Semiconductor products (product revenue)

66,325

Non-recurring engineering (NRE revenue)

16,087

Others355

Total

82,767(2) Description of financial position①Assets, liabilities and net assets(Assets)
Current assets as of September 30, 2022 increased by 44,818 million yen from the end of the previous fiscal year to 135,434 million
yen. This is due mainly to the increases in inventories as well as accounts receivable-other under customers’ request to secure wafers
in advance against wafer shortage. In addition, current assets in working capital cycle including inventories, accounts receivable aswell as cash on hand and in banks increased due mainly to the increase in profit recognized with the increase in product revenue.
Non-current assets as of September 30, 2022 increased by 5,613 million yen from the end of the previous fiscal year to 33,425 million
yen. The increase is due mainly to the acquisition of reticles, IP, etc. in connection with products development of acquired design wins.
As a result, total assets as of September 30, 2022 increased by 50,431 million yen from the end of the previous fiscal year to 168,859
million yen.
(Liabilities)
Current liabilities as of September 30, 2022 increased by 39,194 million yen from the end of the previous fiscal year to 66,635 million
yen. This is due mainly to the increase in accounts payable related to increased purchases from manufacturers in accordance withincreasing products revenue, and the increase in liabilities related to chargeable subcontracting as well as accounts payable-other undercustomers’ request to secure wafers in advance against wafer shortage.
As a result, total liabilities as of September 30, 2022 increased by 39,571 million yen from the end of the previous fiscal year to68,390 million yen.
(Net assets)
Net assets as of September 30, 2022 increased by 10,860 million yen from the end of the previous fiscal year to 100,469 million yen.
The primary increase was 10,013 million yen in profit attributable to owners of parent for 6 months ended September 30, 2022.

- 2 -② Cash flows
Cash on hand and in banks as of September 30, 2022 increased by 6,701 million yen from the end of the previous fiscal year to 52,972
million yen.
Net cash provided by operating activities was 14,953 million yen for the 6 months ended September 30, 2022. This is due mainly to
profit before income taxes of 12,295 million yen, depreciation and amortization of 5,032 million yen, and income taxes paid of 2,195
million yen.
Net cash used in investing activities was 9,728 million yen for the 6 months ended September 30, 2022.This is due mainly to thepurchase of 7,094 million yen of property, plant and equipment including reticles and test boards using for products development
related to required design wins, and those for improving the environment of design and development. The purchases of 2,661 million
yen of intangible assets including IP.
Net cash used in financing activities was 151 million yen and this is due to repayments of lease obligation.

- 3 -2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2022
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 assetsProperty, plant and equipment
Buildings and structures, netMachinery and equipment, netTools, 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
Total 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
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustments
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets- 4 -As of September 30, 2022

46,271
25,053
1,488
14,921914
1,969
90,61652,972
31,641
2,074
27,49615,007
6,244
135,434

2,371
11
8,159
800
287
11,6282,736
1112,550800
278
16,375

11,172
1,076
12,248

11,711
1,011
12,722

0
3,098
838
3,936
27,812
118,428

0
3,504
824
4,328
33,425
168,859

16,609
2,054
4,865
2,609
1,304
27,44130,226
12,128
4,717
3,080
13,294
3,190
66,635

316
1,062
1,378
28,819

345
1,410
1,755
68,39030,20030,20028,86789,26730,20030,20038,88099,280330
3301289,609
118,428

1,177
1,177
12
100,469
168,859(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(For 6 months)(Millions of yen)
6 months ended
September 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 owners of parent82,767
41,95940,80830,352
10,456
1,823
30
1,853
14
14
12,295
12,295
2,739
△457
2,282
10,013
10,013- 5 -Quarterly consolidated statements of comprehensive income(For 6 months)(Millions of yen)
6 months ended
September 30, 2022
ProfitOther comprehensive income
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests

10,013847
847
10,86010,860-- 6 -

(3) Quarterly consolidated statements of cash flows(Millions of yen)
6 months ended
September 30, 2022
Operating activities
Profit before income taxes
Depreciation and amortization
Interest and dividend income
Foreign exchange (gain) loss
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
OtherSubtotal
Interest and dividends received
Income taxes paid
Net cash provided by operating activities
Investing activitiesPurchases of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of non-current assets
OtherNet cash used in investing activities
Financing activities
Repayments of lease obligations
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

12,295
5,032
△24
△1125
△15
△4,802△13,156
11,214△18,351
24,813△617,124
24△2,195
14,953△7,094△2,6611512△9,728
△151
△151
1,627
6,701
46,271
52,972- 7 -(4) Notes to consolidated financial statements
Assumptions of a going concern
None.
Significant changes in shareholders’ equity
None.
Changes in accounting policies
Implementation Guidance on Accounting Standard for Fair Value Measurement
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan(“ASBJ”) Guidance No. 31, June 17, 2021; the “Fair Value Measurement Guidance”) has been applied from the beginning of thefirst quarter of the fiscal year ending March 31, 2023. In accordance with the transitional treatment stipulated in the Paragraph 272 of the Fair Value Measurement Guidance, the Company has applied the new accounting policies stipulated in the Fair Value
Measurement Guidance prospectively.
The application of the Fair Value Measurement Guidance has no impact on the quarterly consolidated financial statements ofcurrent fiscal year.
Additional information
Accounting estimates related to the impact of the novel coronavirus (COVID-19)
The impact of COVID-19 on the Group’s sales are limited while details and degree of the impact differ depending on businesses
and areas the Group operates. Accordingly, the Group determines that the impact of COVID-19 will not significantly affectaccounting estimates, including impairment of non-current assets and recoverability of deferred tax assets, in the second quarter ofthe fiscal year ending March 31, 2023.
Segment information (From April 1, 2022 to September 30, 2022)
The Group has a single segment of Solution SoC business.

- 8 -