Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 8, 2023
Company name:

SUN-WA TECHNOS CORPORATION

Stock exchange listing: Tokyo
Stock code:
8137

URL

https://www.sunwa.co.jp/

Representative:

Chairman,President and Representative
Director

Hiroyuki Tanaka

Inquiries:

Executive Officer and General Manager
Administration Headquarters

Takamichi Matoba

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 27, 2023
June 27, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 12, 2023
Yes

Holding of financial results meeting:

Yes

TEL03-5202-4011(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
181,013
17.2
7,630
58.8
7,675
47.7
5,493
53.6
Year ended March 31, 2022
154,41414.6
4,804 123.2
5,195 102.4
3,577 100.3
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
13.3
7.7
4.2
–
9.8
6.1
3.1

Diluted earnings pershare

Earnings per share
Yen
355.08228.33

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
106,581
93,078Millions of yen
44,48438,023

Cash flows fromoperating activities
Millions of yen
(545)
792

Cash flows frominvesting activities
Millions of yen
(731)
244

Net assets per share%
41.7
40.9

Yen
2,873.36
2,462.10(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
906
13,661(580)
13,565

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

17.00
20.00

––

20.00
70.00

37.0090.00

577
1,393

16.2
25.3

1.6
3.4

–

45.00

–

45.00

90.00

135.3

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

85,3001.12,600(21.2)

2,700(24.5)

1,870(26.0)

120.79

175,800(2.9)

5,510(27.8)

5,690(25.9)

3,950(28.1)

255.14

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

Yes
NoRestatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

16,044,000 shares As of March 31, 2022

16,044,000 shares

Number of treasury shares at the end of the period
As of March 31, 2023

562,331 shares As of March 31, 2022

600,439 shares

15,472,177 shares Year ended March 31, 2022

15,668,261 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

14,04943,14614,14548,455

Electronically recorded monetary claims - operating
Merchandise

8,851
12,006

10,467
17,488Work in process
Other

0
4,310

3
3,871

Allowance for doubtful accounts

(155)

(167)

82,20994,263

1,359

1,379

Accumulated depreciation

(949)

(977)

Buildings and structures, net

409

402

Land

1,356

1,356

Leased assets
Accumulated depreciation

562(345)

768
(447)

217

320656(409)715(522)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Leased assets, net
OtherAccumulated depreciation
Other, net

247

193

2,230

2,272

Other

226

221

Total intangible assets

226

221

Investment securities
Deferred tax assets

7,215
36

8,324
38

Other
Allowance for doubtful accounts

1,281(122)

1,571
(110)

Total investments and other assets

8,411

9,824

10,86812,31893,078106,581

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade23,472

25,988

Electronically recorded obligations - operating
Short-term borrowings

17,204
5,405

19,347
9,557

Current portion of long-term borrowings
Lease liabilities

2,400
93–122

Income taxes payable
Accrued expenses

1,244
1,806

1,378
2,234

Other

1,171

1,240

Total current liabilities

52,79759,870

Lease liabilities
Deferred tax liabilities

150859228
1,046

Long-term accounts payable - other
Provision for retirement benefits for directors (and other17752

114

124

Non-current liabilities

officers)
Retirement benefit liability

955

775

2,257

2,227

55,05462,097

Shareholders' equity
Share capital

3,727

3,727

Capital surplus
Retained earnings

3,549
26,8673,544
31,742

Treasury shares

(867)

(812)

33,277

38,202

3,721
1,024

4,319
1,962

Total non-current liabilities
Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

44,746

6,282

38,02344,484

93,078106,581

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

154,414

181,013

Cost of sales

135,642

157,974

Gross profit

18,772

23,039Selling, general and administrative expenses

13,967

15,408Operating profit

4,804

7,630

Non-operating income
Interest income

1922

Dividend income
Purchase discounts

10878

145
86

Rental income from buildings
Other

134
152

140
209

Total non-operating income

493

604

Non-operating expenses
Interest expenses

45137

Loss on sale of trade receivables
Foreign exchange losses

392

43
351

Other

1427

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

102560

5,195

7,675

21–

Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates

61–

1221

Total extraordinary income8234

Extraordinary losses
Loss on sale of non-current assets

22–

Impairment losses

32–

Total extraordinary losses

54–

Profit before income taxes

5,223

7,709

Income taxes - current

1,759

2,290

Income taxes - deferred

(113)

(74)

Total income taxes

1,646

2,215

Profit

3,577

5,493

Profit attributable to owners of parent

3,577

5,493

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive incomeComprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
3,577

5,493(514)
1,032

598
937

517

1,535

4,095

7,029

4,095

7,029

–

–

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,727

Retained earnings

3,548

23,827

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equityTreasury shares
(300)

(0)
3,727

3,548

23,82730,802(0)(300)

30,801

Changes during period
Dividends of surplus

(536)

(536)

Profit attributable to owners ofparent

3,577

3,577

Purchase of treasury shares
Restricted stock payment

(600)

(600)

3335

1Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

1

3,040

(566)

2,475

3,727

3,549

26,867(867)

33,277

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income

4,235

(7)

4,228

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

35,030
(0)

4,235

(7)

4,228

35,030Changes during period
Dividends of surplus(536)

Profit attributable to owners ofparent

3,577

Purchase of treasury shares(600)

Restricted stock payment

35

Net changes in items other thanshareholders' equity(514)

1,032

517

517

Total changes during period(514)

1,032

517

2,993

Balance at end of period

3,721

1,024

4,746

38,023

7Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,727

Retained earnings

3,549

26,867

Total shareholders'equity

Treasury shares(867)

33,277

Changes during period
Dividends of surplus

(618)

(618)

Profit attributable to owners ofparent

5,493

5,493

Purchase of treasury shares
Restricted stock payment

(5)

(0)

(0)

55

50

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–(5)

4,875

55

4,925

3,727

3,544

31,742(812)38,202

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income

3,721

1,024

4,746

Total net assets

38,023

Changes during period
Dividends of surplus(618)

Profit attributable to owners ofparent

5,493

Purchase of treasury shares(0)

Restricted stock payment

50

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

598

937

1,535

1,535

598

937

1,535

6,460

4,319

1,962

6,282

44,4848

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
5,223

7,709

Depreciation
Impairment losses

306
32

398
–

Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for doubtful accounts

(23)
(11)

(179)
5

Interest and dividend income
Interest expenses(127)
45(167)137

Foreign exchange losses (gains)
Loss (gain) on sale of investment securities

27(61)

94(12)

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables

0(8,500)–(5,905)

Decrease (increase) in inventories
Decrease (increase) in other assets(3,711)(3,241)(5,017)
508

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

10,431(18)

3,638
101

Increase (decrease) in other liabilities
Other, net

1,21282349(46)

Subtotal

1,667

1,615

Interest and dividends received
Interest paid

127(46)

167(146)

Income taxes paid

(956)

(2,182)

Net cash provided by (used in) operating activities

792(545)

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

(183)
482

(74)
–

Purchase of investment securities
Proceeds from sale of investment securities

(41)
140

(250)
15

Other, net

(153)

(422)

Net cash provided by (used in) investing activities

244(731)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

1,158
(500)

4,066
(2,400)

Repayments of lease liabilities
Purchase of treasury shares

(101)
(600)

(140)
(0)

Dividends paid

(536)

(618)

Net cash provided by (used in) financing activities

(580)

906

Effect of exchange rate change on cash and cash equivalents

478

466

Net increase (decrease) in cash and cash equivalents

935

95

Cash and cash equivalents at beginning of period

12,62913,565

Cash and cash equivalents at end of period

13,565

13,661

Cash flows from investing activities

Cash flows from financing activities9