COMPANY RESEARCH AND ANALYSIS REPORT

SUN-WA TECHNOS CORPORATION
8137
Tokyo Stock Exchange Prime Market

13-Jan.-2023
FISCO Ltd. Analyst

Yuzuru SatoFISCO Ltd.
https://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. 1H FY3/23 results saw double-digit increases in net sales and profits, achieving record highs. ..................

01

2. Forecasts double-digit increases to net sales and profits for full-year results through an extensive
orders backlog and the result of yen depreciation. ......................................................................................

01

3. Progress of the medium-term management plan, “SNS2024 (Sun-Wa New Stage 2024)”...........................

02■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. 1H FY3/23 results overview................... ......................................................................................................

03

2. Segment and regional trends.......................................................................................................................

05

3. Outlook for FY3/23 results..................... ......................................................................................................

08■Long-term vision and medium-term management plan------------------------------------------------------- 09
1. Long-term vision..........................................................................................................................................

09

2. Medium-term plan, “SNS2024 (Sun-Wa New Stage 2024)”. ........................................................................

10■Shareholder return policy---------------------------------------------------------------------------------------------------------------------------------- 18

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html■ SummaryHeightened demand for energy and labor savings and initial
movement toward domestic recovery of production bases providing
favorable opportunities for earning expansion
SUN-WA TECHNOS CORPORATION <8137> (hereinafter, “the Company”) is an independent trading company
that specializes in technology products. Approximately 40% of its sales are to the factory automation and industrial
equipment industries. The Company has steadily expanded its businesses by leveraging coverage of three major
areas (electrical machinery, electronics, and general machinery) and two-way trade in which it sells equipment andmaterials for manufacturers’ production lines and then procures the products made by these manufacturers. In
terms of the number of business partners, customers amount to around 3,200 companies while suppliers amountto around 2,100 companies on a non-consolidated basis. The Company’s main suppliers are YASKAWA Electric
Corporation <6506> and OMRON Corporation <6645>.
1. 1H FY3/23 results saw double-digit increases in net sales and profits, achieving record highs
In consolidated results for 1H FY3/23 (April to September 2022), net sales increased by 18.8% YoY to ¥84,356mn,
while operating profit rose 56.5% to ¥3,299mn, resulting in increases to net sales and profits that exceeded theCompany’s forecast (for net sales of ¥83,100mn and operating profit of ¥2,600mn) and achieving record highs. In
addition to increased sales of control equipment and electronic components against the backdrop of increased
capital investment in the semiconductor-related and automobile-related industries, the movement toward accelerated
procurement of parts because of heightened supply chain risks was also one of the main factors behind an increasein net sales. Orders received performed better than expected, increasing 6.9% YoY to ¥102,242mn and the orderbacklog up 74.2% to ¥90,967mn, leading to record high levels.
2. Forecasts double-digit increases to net sales and profits for full-year results through an extensive orders
backlog and the result of yen depreciation
For FY3/23 results, the Company forecasts net sales to increase 12.7% YoY to ¥174,000mn and operating profit toincrease 35.3% to ¥6,500mn. In light of factors such as the status of results up to 2Q, future market environment
trends and the progression of yen depreciation in exchanges, the Company has revised its forecast for FY3/23 fullyear results upward from the initial forecast (of net sales of ¥164,700mn and operating profit of ¥5,000mn). Despite
causes for concern such as a slump in sales of smartphones and home computers and the worsening conditionsof the semiconductor market, the impact from this deceleration of demand is being absorbed to a certain extent
through favorable sales of products for solar power-related industries in China, and additionally, in Japan, the statusof orders received was better than anticipated as of October 2022, so the Company has not observed any warning
signs of things suddenly coming to a halt. Since the orders backlog is extensive, we at FISCO think it is highly likelythat the Company can achieve its full-year results forecast. Furthermore, the average assumed exchange rate during
the period has been revised* from the initial forecast of ¥115 per U.S. dollar to ¥132 (¥122.8 in 1H).
*	Since the accounting period of overseas subsidiaries ends in December, the Company uses an average rate during theperiod from January to December. The rate at the end of December 2021 was ¥115 per U.S. dollar.

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01 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Summary

3. Progress of the medium-term management plan, “SNS2024 (Sun-Wa New Stage 2024)”
In the three-year medium-term management plan “SNS2024 (Sun-Wa New Stage 2024)” which began in FY3/23, theCompany implemented the following as basic policies: 1) Focus on growth fields that require innovation, 2) Provide
even higher value-added products and new solutions, and 3) Help to realize a sustainable society through sustainability management. For FY3/25, the plan’s final fiscal year, it set goals of net sales at ¥195.0bn and operating profit at¥7.0bn (assuming an exchange rate of ¥115 per U.S. dollar). The Company has changed its key goal indicator (KGI)
from net sales to operating profit and will pursue profit growth as it strives to increase operating efficiency throughdigital transformation (DX). Specific measures include mapping the Company’s business portfolio to each customer
industry and separating it into fields where resources are actively allocated (semiconductor production equipment,
robots and mounters, and machine tools), fields where resources are selectively allocated (factory automationequipment, on-board products, and facilities), and other fields. By formulating and implementing strategies for eachof those fields, the Company will seek to increase gross profit. Moreover, in April 2022 the Company launched the“Strategic Segment Team,” a dedicated sales organization that will provide optimal products and solutions to eachcustomer industry without being tied to a specific region, and is working to develop new customers and deepentransactions with existing customers. It appears that the results of new customer expansions are already beginningto emerge. In overseas business, the Company will raise the sales ratio from 38% in FY3/22 to 40% in FY3/25.
It aims for business expansion not only in China but also in other Asian regions, and has set its sights on to entry
into the Indian market, where future market growth is expected. There is a possibility that capital investment may
cool down temporarily due to economic deceleration. However, in addition to the certainty of demand for energy
and labor savings at factories, initial movement toward domestic recovery of the manufacturing industry has begun
to materialize as a result of further yen depreciation, so we at FISCO see this as a favorable opportunity for theCompany, which handles a wide array of relevant products, to work toward earning expansion in the next few years.
Key Points
Due to increased demand for the semiconductor-related and solar power-related industries, 1H FY3/23 results
achieved net sales and profits increases that exceeded the Company’s forecast• Recent demand continues to be strong, and the FY3/23 results forecast was upwardly revised despite the resultof yen depreciation• The medium-term management plan aiming for operating profit of ¥7.0bn in FY3/25 is off to a smooth start•

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02 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION

13-Jan.-2023

8137 Tokyo Stock Exchange Prime Market

https://www.sunwa.co.jp/en/ir/index.html

Summary

Results trends
Net sales (left)

Operating profit (right)(¥mn)

174,000

210,000

(¥mn)
7,000

6,500
180,000
145,410150,000

134,769

5,000
4,804

120,000
90,0006,000

154,414137,943

4,000
3,000

3,410

60,000

2,000
1,846

30,000

2,152
1,000

0

0
FY3/19FY3/20FY3/21

FY3/22

FY3/23 E

Source: Prepared by FISCO from the Company’s financial results■ Results trends
Due to increased demand for the semiconductor-related and solar
power-related industries, 1H FY3/23 results achieved net sales andprofits increases that exceeded the Company’s forecast
1. 1H FY3/23 results overview
In 1H FY3/23, the Company achieved consolidated results that exceeded its forecast, having attained double-digit
increases in both net sales and profits with net sales of ¥84,356mn (up 18.8% YoY), operating profit of ¥3,299mn (up56.5%), ordinary profit of ¥3,575mn (up 62.9%) and profit attributable to owners of parent of ¥2,528mn (up 63.0%).
The increase in net sales was attributable to factors that include robust sales of relevant products amid brisk capital
investment in the semiconductor-related and automobile-related industries, ongoing moves toward accelerated
procurement of parts against a background of mounting supply chain risks, and a progressively depreciating yen.

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03 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION

13-Jan.-2023

8137 Tokyo Stock Exchange Prime Market

https://www.sunwa.co.jp/en/ir/index.html

Results trends

1H FY3/23 results (consolidated)(¥mn)
1H FY3/22
Result1H FY3/23% of sales

Company’s
forecast

Result% of sales

YoY

vs. forecast

Net sales

70,978-

83,10084,356

-

18.8%

1.5%

Gross profit

8,749

12.3%

-

10,733

12.7%

22.7%

-

SG&A expenses

6,640

9.4%

-

7,433

8.8%

11.9%

-

Operating profit

2,108

3.0%

2,600

3,299

3.9%

56.5%

26.9%

Ordinary profit

2,195

3.1%

2,700

3,575

4.2%

62.9%

32.4%

Profit attributable toowners of parent

1,551

2.2%

1,900

2,528

3.0%

63.0%

33.1%

Orders received

95,625--102,242

-

6.9%

-

Orders backlog

52,211--90,967

-

74.2%

-

* The Company’s forecasts refer to the forecasts announced in May 2022.
Source: Prepared by FISCO from the Company’s financial results

Orders remained stronger than the Company’s assumptions despite having edged slightly lower in 2Q partially
due to the effects of the lockdowns in Shanghai imposed from April 2022 onward amid the Chinese government’s
zero-COVID policy. Meanwhile, although the Company encountered a downturn in orders from Japanese-affiliatedcompanies operating abroad, this was apparently offset somewhat by growth in orders from manufacturers of solar
panel production equipment. As such, orders received in 1H accordingly maintained high levels, having increased
by 6.9% YoY to ¥102,242mn, and orders backlog reached record-high levels, having increased by 74.2% to¥90,967mn as of the end of 1H.

Orders received, net sales, and orders backlog by quarter
Orders received

Net sales

Orders backlog(¥mn)
100,000

90,967

89,10038,21480,00060,00068,91633,48948,342
42,41737,48954,91947,283 52,211

73,081 39,108
45,22255,12749,38745,24847,11540,00020,000
0

1Q

2Q

3Q
FY3/22

4Q

1Q

2Q
FY3/23

Source: Prepared by FISCO from the Company’s financial results

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04 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Results trends

Primary drivers of gains in ordinary profit included ¥1,649mn due to an increase gross profit amid higher net salesand ¥334mn due to the effects of improvement in the gross profit margin, with such gains offset by a ¥792mn
increase in SG&A expenses. The gross profit margin increased by 0.4ppt YoY. The increase is primarily attributable toseveral factors. For one, the Company has been engaging in profit-conscious operating activities which has involved
changing its key goal indicator (KGI) from net sales to operating profit under the medium-term management plan
initiated in FY3/23. Also, the effects of pricing adjustments made due to surging raw material costs have begun totake hold, and profit margins of overseas subsidiaries have improved due to depreciation of the yen*. The increasein SG&A expenses was largely attributable to factors such as higher personnel costs and transportation costs
and increases in SG&A expenses at overseas subsidiaries in conjunction with depreciation of the yen. Meanwhile,
non-operating income increased by ¥189mn YoY, but that was mainly due to improvement in foreign exchange losses(gains) of ¥148mn. This is mainly a result of the higher gross profit margin and recognition of foreign exchange losses(gains), which also applies to factors underpinning increases relative to the Company’s forecast.
*	In 1H FY3/23, the average exchange rate was ¥122.8 to the U.S. dollar. The yen has accordingly weakened by ¥7.8 to
the U.S. dollar since the end of FY3/22 when it stood at ¥115 to the U.S. dollar.

By region, the Company performed well in Japan and Asia overall
amid double-digit gains in net sales across the three businesssegments of electrical machinery, electronics, and generalmachinery
2. Segment and regional trends
The Company discloses net sales after breaking them down into the three business segments of electrical machinery,electronics, and general machinery, according to the products handled. In addition, the Company discloses net
sales and operating profit as segment information by region.
(1) Trends in net sales by business segment
Main products handled by the electrical machinery segment are servo motors, motion controllers, inverters,
programmable controllers, and power conditioners. The Company primarily handles products from YASKAWA
Electric Corporation. Net sales expanded by 16.9% YoY to ¥16,831mn due to increases in sales by heavy electricalequipment and electrical machinery for the semiconductor-related industry, control equipment and electricalmachinery for the solar power-related industry, and control equipment for the industrial machinery industry.
The main products in the electronics segment are wide ranging, including general electronic parts such as
capacitors, connectors, relays and switches, as well as fan motors, stepping motors, LEDs, and power supplies.
Net sales climbed 19.5% YoY to ¥62,488mn due to increases in sales of electronic components and electronicequipment for the industrial machinery industry, electronic components for automotive on-board products andthose for the home electrical appliance-related and amusement industries, electronic equipment, connectors andelectronic components for the semiconductor-related industry, and connectors and electronic components forthe office appliance equipment-related industry.
The main products in the general machinery segment include robots from YASKAWA Electric Corporation, as
well as conveyors and reduction gears. Net sales increased 17.5% YoY to ¥5,036mn amid gains in sales offacilities equipment for the food-related and automobile-related industries, and conveyors for the FPD-relatedindustry, against a downturn in sales of facilities equipment for the metal container-related, consumer goods, andtextile-related industries.
We encourage readers to review our complete legal statement on “Disclaimer” page.

05 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Results trends

Net sales by business segment
Electrical machinery

Electronics

General machinery(¥mn)
90,00060,000

4,276

5,036

62,35462,48870,978

4,185

4,284

56,40852,301

10,79312,364

14,392

16,806

16,831

1H

2H

1H

2H

1H

61,8134,770

50,00040,00030,00084,356

72,95680,00070,00083,436

46,24920,00010,0000FY3/21

FY3/22

FY3/23

Source: Prepared by FISCO from the Company’s results briefing materials(2) Trends in sales and profits by segment
Japanese business recorded ¥64,994mn in net sales (up 19.9% YoY) and ¥2,280mn in operating profit (up 92.1%).
Sales increased for heavy electrical equipment, electrical machinery, electronic equipment and connectors forthe semiconductor-related industry, control equipment for the solar power-related industry, control equipment
and electronic components for the industrial equipment industry, electronic components for the automotive
on-board products, connectors for the office appliance equipment-related industry, and facilities equipment
for the food-related industry. Meanwhile, sales decreased in facilities equipment for the metal container-relatedindustry. The Company posted all-time high results for both net sales and operating profit against a backdrop of
an extensive orders backlog and robust demand for capital investment.
The Company’s new initiatives have involved the April 2022 launch of its Strategic Segment Team cross-regional
dedicated sales organization for proposing optimal products and solutions to each customer industry, with theaim of developing new customers and deepening business transactions with existing customers. This initiative has
been effective in terms of enabling the Company to gain new customers in fields requiring specialized technicalknowledge. In addition, the Company’s smart sales sites*, which were launched in 2019 to promote locally based
sales, are apparently highly regarded by its customers and have helped give rise to a greater range of sales items
and more extensive business transactions. In September 2022, the Company opened its Shiga Sales Office(Hikone City, Shiga Prefecture) to serve as its sixth smart sales site in Japan.
*	The term “smart sales site” refers to a small-scale sales office employing only about two sales staff members. Thesesites seek to deepen business transactions by bolstering relationships with preferred customers scattered across small
and medium-sized regional cities, while also aiming to attract new customers. Internal operations of these sites enlist the
support of remote branch offices, given that administrative staff are not assigned to such sites. Beginning in 2019, theCompany opened smart sales sites in Japan that include the Shikoku Sales Office (Ehime Prefecture), the Nagaoka Sales
Office (Niigata Prefecture), the Kofu Sales Office (Yamanashi Prefecture), the Kanazawa Sales Office (Ishikawa Prefecture),
and the Kitakyushu Sales Office (Fukuoka Prefecture).

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06 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Results trends

Asian business posted ¥28,498mn in net sales (up 24.9%) and ¥1,138mn in operating profit (up 27.5%). Sales
increased in electrical machinery for the solar power-related industry, electronic equipment for the industrial
machinery and semiconductor-related industries, electronic components for automotive on-board products andfor the office appliance equipment-related and home electrical appliance-related industries, and conveyors for the
FPD-related industry. In China, which accounts for nearly 80% of net sales in Asia, whereas the Company has beenencountering a slowdown in orders for Japanese-affiliated companies operating locally since April 2020 due to thenation’s lockdowns, it appears that increased orders from solar panel production equipment manufacturers has
made up for most of the decline in orders for Japanese companies. Sales of global SCM solutions services havealso increased amid tailwinds provided by escalating supply chain risks in the Southeast Asian market. Meanwhile,
the Company has been taking steps to expand business in China’s Shandong Province and accordingly opened
its Qingdao Office (Shandong Province) in September 2022 to serve as its first smart sales site in China.
In Europe and the U.S., the segment marked double-digit gains in net sales, which increased by 10.1% YoY to¥3,313mn, but posted an operating loss of ¥40mn (against an operating profit of ¥13mn in 1H FY3/22). Net sales
were affected by increases in sales of electronic components for the semiconductor-related and amusement
industries, and facilities equipment for the automobile-related industry, against a decrease in sales of facilities
equipment for the consumer goods and textile-related industries. The deterioration of earnings is partially attributable to surging transportation costs.
Net sales and operating profit by segment(¥mn)
FY3/21

FY3/22

1H

2H

1H

2H

FY3/23
1H

Japan

49,44558,80754,222

61,58964,994

19.9%

Asia

16,78818,704

22,81029,40628,49824.9%

Europe/U.S.

2,435

2,276

3,010

3,204

3,313

10.1%

480

451

375

373

335

-10.7%<Net sales>

Other

YoY

Adjustment-7,336-7,281-9,440-11,135-12,784-

Total

61,813

72,95670,97883,43684,356

18.8%

2H

1H

2H

FY3/23
1H<Operating
profit>FY3/21
1H

FY3/22

YoY

Japan

474

723

1,187

1,862

2,280

92.1%

Asia

377

540

892

1,032

1,138

27.5%

Europe/U.S.

17

-18

13

-121

-40

-

Other

24

-8

9

-25

-10

-

Adjustment

6

17

5

-49

-68

-

900

1,252

2,108

2,696

3,299

56.5%

Total

Source: Prepared by FISCO from the Company’s financial results

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07 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Results trends

Net sales in 1H FY3/23 (• = positive YoY change, × = negative YoY change)
Japan

Asia

Europe/U.S.

Electrical
GeneralElectronics
machinerymachinery

Electrical
GeneralElectronics
machinerymachinery

Electrical
GeneralElectronics
machinerymachinery••

Semiconductor-related industry•

Solar power-related industry•

Industrial machinery industry•••

Automotive-related industry

•

•

•

•

•
•

FPD-related industry
Office appliance equipment-relatedindustry••

Home electrical appliance-relatedindustry•

Food-related industry•

Metal container-related industry

×Consumer goods and textile-relatedindustries

×•

Amusement industry
Source: Prepared by FISCO from the Company’s financial results

FY3/23 results forecast upwardly revised amid prevailing strong
demand and effects of yen depreciation
3. Outlook for FY3/23 results
In terms of the outlook for FY3/23 results, the Company has upwardly revised its initial forecast and now projects
net sales of ¥174,000mn (up 12.7% YoY), operating profit of ¥6,500mn (up 35.3%), ordinary profit of ¥6,650mn(up 28.0%), and profit attributable to owners of parent of ¥4,650mn (up 30.0%). The revisions were made taking
into account factors that include the Company’s actual results through 2Q, market trends going forward, and yen
depreciation*.
*	The exchange rate assumption for the full fiscal year has been revised to ¥132 to the U.S. dollar from ¥115 to the U.S.
dollar, previously. The effect of exchange rate volatility on earnings is such that yen depreciation amounting to ¥1 to the
U.S. dollar increases annual profits by approximately ¥50mn.

FY3/23 consolidated results forecast(¥mn)
FY3/22Full-year
results

FY3/23% of sales

Initialforecast

Revisedforecast% of sales

YoY

Vs. initial
forecast

Progress asof 2Q (%)

154,414-

164,700

174,000

-

12.7%

5.6%

48.5%

Operating profit

4,804

3.1%

5,000

6,500

3.7%

35.3%

30.0%

50.8%

Ordinary profit

5,195

3.4%

5,200

6,650

3.8%

28.0%

27.9%

53.8%

Profit attributable toowners of parent

3,577

2.3%

3,600

4,650

2.7%

30.0%

29.2%

54.4%

Earnings per share (¥)

228.33233.11300.72

Net sales

Source: Prepared by FISCO from the Company’s financial results

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08 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Results trends

The Company faces concerns regarding capital investment trends going forward, particularly with respect tolackluster sales of smartphones and personal computers, brought about by factors that include turmoil in Ukraine
and sluggish consumer spending due to rising prices. However, the Company recognizes that business is favorable
overall in part given circumstances in the Chinese market where it continues to encounter a positive environment
in terms of inquiries from the solar power-related industry, and circumstances in the Japanese market where it isencountering emerging signs of production bases returning to Japan amid depreciation of the yen, even though
there has been a slowdown in certain fields such as that of chip mounters. Meanwhile, amid a situation whereorders received in October 2022 have also exceeded expectations, no situation has emerged in terms of requests
for postponing delivery dates and making cancellations as of early November.
That said, inventories have accumulated on the customer side and materials shortages have been resolved, aside
from certain exceptions when it comes to semiconductors. This is likely to culminate in a decrease in orders receivedof around 10% to 15% in 2H FY3/23 relative to 1H FY3/23. Meanwhile, given that customers conventionally scaleback inventories to original levels once an inventory adjustment phase sets in, the notion of a decrease in inventories
of around 30% would normally not seem unusual. However, the Company contends that customers are unlikely
to scale back their inventories to original levels amid persisting supply chain risks. Also, in addition to ongoinginvestment in the Chinese market and elsewhere going forward under the theme of achieving energy and laborsavings at factories, the Company is also likely to encounter moves toward greater dispersion of manufacturingencompassing the trend of production bases returning to Japan. At FISCO, we perceive such developments asfavorable opportunities for the Company. The Company’s new initiatives starting from 2H involve its opening of two
Chinese smart sales site locations (Wuhan and Changzhou) in November 2022.

■ Long-term vision and medium-term

management plan
Aiming to be the best manufacturing partner by turning “whatcustomers want to accomplish” into “what they can accomplish”
1. Long-term vision
The Group’s Corporate Creed is “Develop Talents, Build Business, Contribute to Society.” Guided by this creed,
the Group utilizes its global network to provide its customers with the most up-to-date information, needs-oriented
solutions, and the most reliable services, along with collaborating with partner companies. Through these efforts,
the Group has helped to promote industrial development and to realize a sustainable society. In the past few years,
there have been significant changes in global social conditions, and the market environment has been changing
drastically. In this environment, to set an even clearer direction for the Group, it formulated “Sun-Wa Vision 2030”
as its long-term vision for FY3/31 and “SNS2024 (Sun-Wa New Stage 2024)” as its three-year medium-term
management plan beginning in FY3/23 (announced in May 2022). The Group’s Mission (Mission and Purpose),
Vision (the Group’s Ideals), Values (Values for Fulfilling the Mission and Realizing the Vision) are described below.

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09 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

The Group has defined its Mission as follows: “We connect technologies in the world to create new value and support
the development of a prosperous society.” Leveraging its global network, the Group intends to contribute to thedevelopment of a sustainable society by offering the latest technology proposals and optimal products. Moreover, theGroup has embraced the following as its Vision: “We are the best partner in manufacturing to make our customers’
wants and needs possible, and connect businesses around the world with relationships of trust.”
The Group has identified the following three concepts as its Values to carry out its mission and achieve its Vision:“Customer First” “Spirit of Challenge” and “Teamwork and Communication.” With “Customer First” the Group makes
every effort to serve as a partner who has the best understanding of the customer – a partner who identifies true
customer needs by always considering things from the customer’s perspective and sharing values with customers.
With “Spirit of Challenge,” the Group sets high goals to drive its own growth, enhances its creativity and professionalism by tackling challenges positively without fearing change, and strives to boost the enterprise’s energy and vitality.
Finally, with “Teamwork and Communication,” the Group creates new value by respecting others, understanding
differences, and recognizing their value. In addition, the Group attaches importance to partner companies as it aims
to improve its collective capabilities.

Medium-term management plan aiming for operating profit of ¥7.0bn
in FY3/25 off to a smooth start
2. Medium-term plan, “SNS2024 (Sun-Wa New Stage 2024)”(1) Management goals
In its medium-term plan starting in FY3/23, the Company has established operating profit as its KGI. Previously,
the Company put emphasis on net sales, believing that if net sales grow, profit would inevitably follow and increase
too. However, the Company has once again recognized that in these times, as the market environment changes
at an increasingly faster pace and as markets mature, growth in net sales does not necessarily lead to profit
growth. Therefore, it has decided to implement a management strategy that views profits as the starting point.
In terms of specific performance targets, the Company aims to achieve net sales of ¥195.0bn and operating profitof ¥7.0bn in FY3/25 (under an assumed exchange rate of ¥115 to the U.S. dollar). Having raised the operating
profit margin from 3.1% to 3.6% in FY3/22, it primarily expects the gross profit margin to increase. Moreover, theoverseas sales ratio (net sales of overseas operating companies ÷ consolidated net sales) is to be raised from
38% in FY3/22 to 40% in FY3/25. It appears that the Company has gotten off to a smooth start during FY3/23,
the plan’s initial year, particularly given that it has upwardly revised its results forecast relative to that of its initial
forecast. If the company achieves its FY3/25 performance targets, the next step will be to aim for net sales of¥250.0bn and operating profit of ¥10.0bn in FY3/28.

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10 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Management goals in the “SNS2024(Sun-Wa New Stage 2024)”(¥mn)

Net sales
Operating profit(profit margin)

FY3/22
Results

FY3/23
Forecast

FY3/25
TargetAverage annual
growth rates

FY3/28Target154,414174,000

195,000

8.1%

250,000

4,804

6,500

7,000

13.4%

10,000

3.1%

3.7%

3.6%

4.0%

<Non-consolidated>
115,811

142,700

7.2%

Operating profit

3,046

4,250

11.7%

(profit margin)

2.6%

3.0%

Net sales

58,43078,600

10.4%

Operating profit

1,816

2,750

14.8%

(profit margin)

3.1%

3.5%

Net sales<Overseas subsidiaries>

Note: Assumed exchange rate: ¥115 per U.S. dollar
Source: Prepared by FISCO from the Company’s financial results and results briefing materials(2) The strategic policy as well as progress and results thereof
In terms of the basic policies that the Company will implement in “SNS2024,” the Company has set forth threebasic policies: a) Focus on growth fields that require innovation, b) Provide even higher value-added products andnew solutions, and c) Help to realize a sustainable society through sustainability management. By implementing
these policies, the Company intends to reach its performance targets.
a) Focus on growth fields that require innovation
The Company has classified the customer segments where it will allocate resources based on the dual axes of its
strengths and market appeal (market size, growth rate, and profitability). These customer segments are classified
into the following three fields: fields where resources are actively allocated, fields where resources are selectively
allocated, and other fields. By formulating and executing business strategies tailored to each customer segment,
the Company seeks to increase gross profit.
The Company has identified three fields as fields where resources are actively allocated: semiconductor production
equipment, robots and mounters, and machine tools. The semiconductor production equipment field is positioned
as a crucial segment where the Company can demonstrate its strengths, given that the semiconductor industry
is seen as a crucial field as a matter of national government policy and can also be expected to grow from theperspective of economic security. The Company has identified its main strategies as developing joint themeswith customers that lead to improved performance, advancing proposals for unit assemblies that lead to cost
reductions, and developing relationships with new suppliers, which is essential to attracting new prospective
customers. By implementing these strategies, the Company aims for growth of at least 15% per year in grossprofit. The Company has accordingly undertaken initiatives during 1H FY3/23 that have involved delving intoclient company needs through meetings with top management of such enterprises, strengthening the Company’s
ability to offer proposals in conjunction with manufacturers, and advancing engineering business proposals thatenable the Company to demonstrate its strengths. It has also been actively engaging in accompanied visits madein conjunction with overseas manufacturers of refractometers and dew point meters to serve as new productsolutions. These efforts seem to have helped steadily prompt gross profit growth in line with targets.

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11 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

The robots and mounters field is a high-growth sector with rapid technological innovation, and is a segment where
the Company can easily demonstrate its competitive advantages. The Company’s main strategies entail a policy ofgathering information and customer needs and placing focus on designing products tailored to specific industries,
in addition to promoting efforts that involve increasing product-specific in-house share for each customer anddeveloping new customers for peripheral devices. By implementing these strategies, the Company aims for
growth of at least 10% per year in gross profit. The Company has accordingly undertaken initiatives during 1H
FY3/23 that have involved selecting target customers, tracking in-house share of products equipped with robots
and mounters, and making proposals involving products not yet equipped with such features. Moreover, theCompany has successfully developed new customers at the top of their industries, which is likely to contribute tosales going forward. Although gross profit fell short of the Company’s target rate of growth in 1H FY3/23 amid aslowdown in the chip mounter industry caused by a sluggish smartphone market, the Company seeks implement
these strategies with the aim of achieving accelerated growth from FY3/24 onward.
In the machine tools field, machine tools serve as so-called “Mother Machines” that support global manufacturing.
The field is positioned as a segment where the development of higher performance Mother Machines, as well as
their automation and digitalization, offer prospects for growth. The Company pushes ahead with main strategies
that include proposing factory automation PCs (FAPCs), which are becoming increasingly important in the development of new customers for peripheral devices and adoption of IoT, and making proposals for the businessof global SCM solutions that serve as BCP measures. By implementing these strategies, the Company aims for
growth of at least 10% per year in gross profit. The Company has accordingly undertaken initiatives during 1H
FY3/23 that have involved expanding its range of target customers, proposing automation equipment solutions
and components, and proceeding with operating activities upon having formulated sales strategy in conjunction
with proposed FAPC manufacturers. It has also prepared planning documents enlisting proposals received fromthe global SCM solutions business. In 1H, progress achieved in terms of gross profit seems to have been largely
in line with the target in this field.
Meanwhile, the Company has identified the following three fields as fields where resources are selectively allocated:factory automation equipment, on-board products, and facilities. Selective allocation of resources refers to theprocess of growing businesses by collaborating with partner companies through such means as forming capitaland business alliances, depending on conditions. The factory automation equipment field has an expansive
customer base and a wide range of product models, and is accordingly the field with the largest gross profit fromamong the Company’s operations. The Company has three strategies for the future: focus on the factory automation component industry on a global scale, create strategic products based on mass production applications,and strengthen the supply of information by actively harnessing digital tools. By implementing these strategies,
the Company aims for growth of at least 10% per year in gross profit. The Company has accordingly undertaken
initiatives during 1H FY3/23 that have involved conducting searches with respect to global companies and visiting
such entities in seeking to develop and cultivate leading factory automation enterprises as target customers, inaddition to expanding sales and making proposals for control equipment and detection equipment. It has also
been enlisting means such as direct mail and online sales to supply information. In 1H, the Company achieved
steady, double-digit YoY gross profit growth in this field.

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12 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

In the on-board products field, the advent of a once-in-a-century period of transformation makes this a segmentin which the Company is likely to encounter evolution of automotive electrical systems and market expansion,
particularly with respect to CASE* technologies. The Company has three main strategies in this field: develop new
customers through cross-field expansion of existing products, develop new strategic products globally, and build
an organization geared to developing new customers. By implementing these strategies, the Company aims for
growth of at least 10% per year in gross profit. The Company has accordingly undertaken initiatives during 1H
FY3/23 that have involved promoting sales activities by seeking to bolster the sales workforce with the aim of
breaking new ground with leading tier-one manufacturers, and also enhancing ties with manufacturers possessing
technologies that allow for differentiation. In 1H, the Company secured single-digit gross profit growth in this field,
yet fell short of target as a result of its automotive manufacturing customers having made downward adjustments
to production plans.
*	CASE: A word coined from the initial letters of the words Connected, Autonomous (automated driving), Shared & Services(car sharing and services) and Electric (electric vehicles). It is a keyword that encapsulates next-generation trends in theautomobile industry.

The facilities field is positioned as a segment that covers a wide range of industries and one with heightened
engineering needs to address automation and sustainability. The Company’s main strategies in this field include
making added-value proposals to customers through unified sales and engineering, expanding projects bycollaborating with system integrators in the food industry, and improving profitability through facility packaging
and cross-field expansion. By implementing these strategies, the Company aims for growth of at least 10% peryear in gross profit. The Company has accordingly undertaken initiatives during 1H FY3/23 that have involved
increasing the number of joint customers by sharing information with the Engineering Department, and alsocollaborating with system integrators in handling retail sales and store locations. It has also been taking steps toformulate packaging concept proposals such as those for positioning systems enlisting barcode recognition androbotic picking systems incorporating 3D cameras. In 1H, gross profit in this field incurred sluggish growth andremained at the same level YoY.
The Company aims to achieve a total increase of ¥4.1bn in gross profit across the aforementioned six fields overthe next three years, and is also poised to attain higher levels of gross profit in other fields as well. In 1H, it got off
to a smooth start in that regard with its results having been driven by sales in the factory automation equipment
and semiconductor production equipment fields.

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13 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Growth trends by customer segment(¥mn)

6000000
6,000

Gross profit (*not including Other)
5000000
5,000

4000000
4,000

3,000
3000000

2,000
2000000

1,000
1000000

Factory automationequipment

Factory automationequipment

Semiconductor and LCD
production equipment

Semiconductor and LCD
production equipment

Robots and mounters

Robots and mounters

Facilities

Facilities

On-board products

On-board products

00

Machine tools

Machine tools

1H2020/上FY2020

合計 / 売上利益額 2020/上

2020/下2H
FY2020

合計 / 売上利益額 2020/下

2021/上1H
FY2021

合計 / 売上利益額 2021/上

2021/下2H
FY2021

合計 / 売上利益額 2021/下

1H2022/上FY2022

合計 / 売上利益額 2022/上

Source: The Company’s results briefing materialb) Provide even higher value-added products and new solutions
To provide even higher value-added products and new solutions, the Company will roll out sales services focusedon each customer segment. Apart from this, the Company’s strategy is to work to improve operating efficiency
and the value it provides through digital transformation (DX) and to expand its overseas share by remaining closely
attuned to regions and expanding the global network.
Regarding sales services focused on each customer segment, the Company will organize sales teams thatpossess specialized knowledge and conduct sales activities that remove regional boundaries in the five customer
segments, specifically semiconductor production equipment, robots and mounters, machine tools, factory
automation equipment, and facilities. By doing so, the Company aims to develop new customers and deepentransactions with existing customers. Previously, progress was not made on developing new customers anddeepening transactions with existing customers because sales staff were assigned at each branch. By organizing
specialized sales teams, the Company resolves these sorts of issues. As previously mentioned, results alreadyappear to be emerging, such as successfully developing new customers, so this strategy will become critical within
the current medium-term management plan as well. The new organization is made up of 31 individuals selectedfrom across Japan (including 4 executive officers). Future developments will be watched closely.

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14 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION

13-Jan.-2023

8137 Tokyo Stock Exchange Prime Market

https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Sales services focused on each customer segment

Area strategies
Europe and US
headquarters

BranchBranchBranchBranchBranchBranchBranchBranchBranchBranchBranchBranchOverseas

Customers

Roll out services focused on each customer industry

Products
solution

Machine tools
Factory automationequipment

Domestic

Optimal proposals that combine a wide range of products and solutions

Facilities
Electronics

Agencystrategies

Business strategies

Customersegment strategy

Semiconductor
production equipment
Robots andmounters

Other Asian
headquarters

Kanto Office Nagoya Office Kansai OfficeChinaheadquarters

Provide optimal products andsolutions for each customer segment

Solutionstrategies

Control
Mechatronics
Machinery andelectrical
Solution

Source: Company’s results briefing materials and medium-term management plan materials

The Company is implementing activities to increase operating efficiency through digital transformation (DX) suchas making KGI transparent across internal organizations to ensure the effectiveness of various strategies, inaddition to improving the efficiency of operations to concentrate on key strategies and employing advanced datautilization to improve customer value. It also intends to improve its corporate value while recruiting and developing
the human resources that will be needed to promote these DX strategies.
In the realm of locally based sales, the Company has been making progress with respect to successively opening
smart sales sites in both Japan and abroad. Meanwhile, the Company seeks to offer prompt and precise proposals
that address challenges faced by its client companies, which is important given its role as a trading company thatengages in B-to-B sales. It accordingly believes that the best way to achieve such aims is to engage in locally
based sales in a manner that involves maintaining close communications with its customers. Whereas online
sales have become more commonplace due to the COVID-19 pandemic, extensive face-to-face meetings remain
an imperative in the industrial equipment field given varying requirements from one customer to the next. In thatregard, the smart sales sites have gained a positive reputation among the Company’s corporate clients. Though
it is difficult to quantitatively gauge results of having opened such smart sales sites, some client companies havebeen purchasing greater quantities of sales items than before. As such, the Company plans to open more smart
sales site locations going forward in rural areas where it is unable to sufficiently make on-site visits, regardless of
its access to prospective customers.

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15 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

With regard to increasing overseas share, the Company plans to increase the overseas sales ratio from 38%
in FY3/22 (actual) to 40% by FY3/25. In the mainstay Chinese market, the Company will increase its numberof business locations to 20 sites from the current number of 14. It will also provide the latest technologies andhigh-quality services and will adopt personnel systems aligned with the needs of local employees. Through suchinitiatives, the Company aims to achieve net sales of ¥51.0bn and operating profit of ¥1.85bn in the Chinese
market (in contrast with net sales of ¥41.4bn and operating profit of ¥1.52bn in FY3/22). In other Asian regions,the Company will engage in efforts that involve establishing stable management platforms, bolstering sales
capabilities as an agent, building organizations that sell a comprehensive range of products and solutions, andentering the Indian market. Through such initiatives, the Company aims to achieve net sales of ¥19.4bn andoperating profit of ¥0.78bn in other Asian regions (in contrast with net sales of ¥11.3bn and operating profit of¥0.39bn in FY3/22). Meanwhile, the Company may be able to increase its sales volume by tapping into demand
now emerging given that some Companies have begun to transfer certain manufacturing facilities from China toother countries due to the COVID-19 pandemic. In Europe and the U.S., the Company will identify new products inlocal markets and will conduct export sales globally, while also seeking to improve its market recognition. Throughsuch initiatives, the Company aims to achieve net sales of ¥8.1bn and operating profit of ¥0.1bn in Europe and the
U.S. (in contrast with net sales of ¥6.2bn and operating loss of ¥0.05bn in FY3/22). In terms of new products, theCompany has been proposing solutions that entail selling odor sensors from European manufacturers to cosmetics
manufacturers and other such entities in Japan. In addition, it is quite likely that sales volume generated by theCompany’s overseas subsidiaries will ultimately exceed estimates set forth in the medium-term management plan
if prevailing exchange rate levels persist, given the assumed exchange rate of ¥115 to the U.S. dollar under the
medium-term management plan.

Forecasts of operating profit
by overseas region

Forecasts of net sales
by overseas region
FY3/22 result
(¥bn)
60.0

FY3/25 target
(¥bn)
1.85
2.00

51.0

1.52

50.0

1.50

41.4
40.0

1.00

0.78

30.0

0.39

0.50

19.4
20.0

0.10

11.3
10.0

8.1

0.00

6.2

-0.05
-0.50

0.0
China

China

Other Asian Europe/U.S.
countries

Other Asian Europe/U.S.
countries

Source: Prepared from the Company’s medium-term management plan materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

16 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

The global SCM solutions business is poised for sales growth amid an intensifying trend of manufacturers relocating their overseas production bases as well as mounting supply chain risks. In this business, the Company
engages in outsourcing services that involve undertaking one-stop services entailing the function of procuring
electronic components, facilities equipment and other items from suppliers on behalf of client companies that had
previously conducted these activities independently. By having their procurement functions consolidated by theCompany, client companies are able to reap benefits consisting of reduced procurement costs, shorter lead times,
and lower costs incurred by their relevant departments, while also enabling them to alleviate supply chain risks.
Whereas the global SCM solutions business generated net sales of ¥8.6bn in FY3/20, it is likely to achieve evenhigher sales in the range of ¥16.0bn in FY3/23 amid growing demand partially attributable to escalating supply
chain risk prevailing since onset of the COVID-19 pandemic. Despite a profit margin that is somewhat lower thanthe Company-wide average, the business is likely to set the stage for higher sales volume.
Whereas the Company now operates 31 locations in 13 countries overseas, Japanese companies account for
many of its customers that serve as overseas subsidiaries. The Company believes that customer development
geared to foreign-affiliated companies is crucial in terms of enabling it to expand the scale of its business going
forward, and has accordingly been training foreign nationals to serve as managerial professionals as a means oflaying the groundwork toward accomplishing such aims. Specifically, the Company initiated its Global Next Leader
Training Program in 2020, and has since been having around 10 management candidates regularly undergo suchtraining, which includes online training sessions. The inaugural class of management candidates completed thetraining in March 2022. Those who have taken part have been very satisfied with the training, and many managersof overseas operations have expressed their desire for implementation of the program’s next round. This suggests
potential in terms of the Company achieving globalization of its management human resources. We at FISCO
anticipate that the Company will achieve further growth in net sales overseas if it proceeds with its customer
development efforts geared to foreign-affiliated companies, which currently account for only around 10% of its
total sales (around 35% in the Chinese market).

Trends in net sales in the global SCM solutions business
(¥bn)
18.0
About ¥16.0bn

16.0
About ¥13.4bn

14.0
12.0
About ¥10.0bn
10.0
8.0

About ¥9.5bn
About ¥8.6bn

About ¥7.3bn

6.0
4.0
2.0
0.0
FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23 E

Source: Prepared by FISCO from the Company’s results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

17 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management planc) Help to realize a sustainable society through sustainability management
The Company continues to view measures to realize a sustainable society as one of management’s most important
issues. Therefore, it will promote these measures through its business activities while working to foster theeducation and development of its employees. Notably, the Company carries an extensive range of electricalmachinery, electronic parts, and facilities and machinery that can achieve energy and labor savings as measures
to combat global warming. We at FISCO believe that the Company has substantial growth opportunities as anenterprise that will contribute to a decarbonized society through its business activities.
The Company’s recent initiatives associated with the Sustainable Development Goals (SDGs) have involved fully
shifting to consumption of renewable energy in the area consisting exclusively of office space at its headquarters,
given that the building where its headquarter offices are located started making use of electricity derived fromrenewable energy sources on September 29, 2022. The Company aims to achieve a 20% reduction in its greenhouse gas emissions by 2030 (compared to 2020) through initiatives taken to mitigate its environmental impact.
It furthermore seeks to reduce its greenhouse gas emissions 100-fold or more by 2050 (compared to 2020)
through its sales of eco-friendly inverters and other such products that give rise to energy savings. In addition,
the Company aims to increase its ratio of female managers to 10% or more by fiscal 2030 as part of its efforts forpromoting development and empowerment of diverse human resources.

■ Shareholder return policy
Plans to return profits based on stable dividends according toconsolidated results from medium- and long-term perspectives
The Company’s basic policy is to provide returns to shareholders in the form of dividends. The Company plans tomaintain stable dividends while returning profits to shareholders according to consolidated results from medium- andlong-term perspectives after considering proactive business development for continual growth and improvement ofcorporate value and the balance between dividends and financial soundness in preparation against various risks.
In addition, the Company flexibly conducts share buybacks according to the period and its financial condition, toenhance shareholder return and capital efficiency. Recently, the Company bought back 363 thousand shares worth¥599mn between November and December 2021.
The Company plans to increase its dividends per share for FY3/23 for the second consecutive year, thereby raising
dividends by ¥3.0 from the previous year to ¥40.0. The dividend payout ratio is expected to decrease to 13.3%,
which would constitute its lowest level in recent years amid the upward revision of the Company’s results forecast.
As such, we at FISCO believe that the Company may opt to further increase the dividend unless it encounters adeteriorating earnings environment going forward.

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18 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

13-Jan.-2023
https://www.sunwa.co.jp/en/ir/index.html

Shareholder return policy

Dividend per share and dividend payout ratio
Dividend per share (left)

Dividend payout ratio (right)

(¥)
50.0

50.0%
40.4%
34.0

34.0

40.0

37.0

40.0

40.0%

34.0

30.0

30.0%
30.0%

20.0

20.0%
20.7%
16.2%

10.0

10.0%

13.3%

0.0

0.0%
FY3/19FY3/20FY3/21

FY3/22

FY3/23 E

Source: Prepared by FISCO from the Company’s financial results

Simplified income statement and main indicators(¥mn)
FY3/23

FY3/19FY3/20FY3/21

FY3/22

1H

full-year E

Net sales

145,410

137,943

134,769

154,41484,356

174,000

YoY

-0.9%

-5.1%

-2.3%

14.6%

18.8%

12.7%

Gross profit

16,31814,421

14,224

18,772

10,733

-

11.2%

10.5%

10.6%

12.2%

12.7%

-

12,908

12,574

12,071

13,967

7,433

-

8.9%

9.1%

9.0%

9.0%

8.8%

-

3,410

1,846

2,152

4,804

3,299

6,500

-17.5%-45.8%

16.6%

123.2%

56.5%

35.3%

2.3%

1.3%

1.6%

3.1%

3.9%

3.7%

3,627

2,144

2,567

5,195

3,575

6,650

-16.6%-40.9%

19.7%

102.4%

62.9%

28.0%

2,628

1,341

1,786

3,577

2,528

4,650

YoY

-14.8%-49.0%

33.2%

100.3%

63.0%

30.0%

EPS (¥)

164.0884.11

113.23228.33163.5

300.72

Dividend (¥)

34.00

34.00

34.00

37.00

20.00

40.00

Gross profit margin
SG&A expenses
SG&A expenses ratio
Operating profit
YoY
Operating profit margin
Ordinary profit
YoY
Profit attributable to owners of parent

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

19 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

SUN-WA TECHNOS CORPORATION

13-Jan.-2023

8137 Tokyo Stock Exchange Prime Market

https://www.sunwa.co.jp/en/ir/index.html

Shareholder return policy

Simplified balance sheet(¥mn)
FY3/19FY3/20FY3/21

FY3/22

FY3/23 2Q

Changeamount64,20962,71364,43082,20988,896

6,687

Cash and deposits

10,005

12,052

13,113

14,04916,0051,956

Trade receivables

42,256

39,83842,45351,99754,475

2,478

Non-current assets

9,905

9,024

11,951

10,86810,354

-514

2,861

2,759

2,590

2,230

2,237

7

143

193

170

226

251

25

Current assets

Total property, plant and equipment
Intangible assets

6,900

6,072

9,190

8,411

7,865

-546

Total assets

74,11471,73876,381

93,07899,251

6,173

Current liabilities

37,19935,40236,372

52,79755,814

3,017

31,427

29,10829,45540,676

41,555879

Non-current liabilities

4,970

4,608

4,978

2,257

1,956

-301

Total liabilities

42,16940,011

41,35055,054

57,770

2,716

6,705

6,709

7,048

7,805

10,545

2,740

Shareholders’ equity

29,05629,55230,80233,27735,546

2,269

Accumulated other comprehensive income

2,888

2,174

4,228

4,746

5,934

1,188

Total net assets

31,94431,72635,03038,023

41,4803,457

Total investments and other assets

Payment obligations

Interest-bearing debt

Source: Prepared by FISCO from the Company’s financial results

Status of Cash Flows(¥mn)
FY3/19FY3/20FY3/21

FY3/22

FY3/23 2Q

Cash flows from operating activities

1,636

3,238

1,589

792

-897

Cash flows from investing activities

-153

-200

-141

244

-234

Cash flows from financing activities

28

-945

-309

-580

2,137

9,521

11,568

12,62913,565

15,521

Cash and cash equivalents at end of period

Source: Prepared by FISCO from the Company’s financial results

Management indicators(¥mn)
FY3/19FY3/20FY3/21

FY3/22

FY3/23 2Q

Equity ratio

43.1%

44.2%

45.9%

40.9%

41.8%

Interest-bearing debt ratio

21.0%

21.1%

20.1%

20.5%

25.4%

ROE

8.8%

4.2%

5.4%

9.8%

-

Net cash

3,300

5,343

6,065

6,244

5,460

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

20 20

Disclaimer
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FISCO Ltd.
5-13-3 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (IR Consulting Business Division)
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