Financial Results of 1st Quarterfor the Year Ending December 31, 2024
May 2024

Sanden Corporation© 2024 SANDEN CORPORATION

Financial Results of First Quarter for the Fiscal Year EndingDecember 31, 2024

1. Points of the financial results
2. Sales by Business Segment
3. Operating income (Year-on-year comparison)
4. Major Indicator Trends
5. Consolidated balance sheet
6. Business Topics© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

１．Points of the financial results［Net sales］

1

Global vehicle production volumes for Q1 were generally in line with the previous year, despite regional variations. Excluding
a foreign exchange impact of +4.0 billion yen, sales remained flat.
In China, sales grew across the board, including for EVs, while in Asia, particularly in India, sales to local OEMs increased.
In the Americas, sales primarily decreased in the aftermarket sector. In Europe, excluding the effect of exchange rates, sales
declined due to increased imports of EVs and reduced demand amid economic downturn.

[Profit]2

Amid sluggish sales, the company continued price negotiations to mitigate the effects of high raw material costs. InEurope, inventory reductions and in China, increased sales led to higher operational efficiency, improved productivity,and cost reductions.
Operating income decreased by 0.1-billion-yen year-over-year.
Despite cost reductions and productivity improvements at the facilities in Poland and China, as well as mitigating effects
from foreign exchange fluctuations, operating income slightly decreased due to funds being allocated to growthinvestments.
Net income decreased by 0.2 billion yen, yet a net profit of 0.3 billion yen was maintained.

[Measures]3Strengthened and promoted measures in Q1 to address environmental changes that became apparent. In response torising fuel and raw material costs due to the continued depreciation of the yen, price negotiations and cost reduction
efforts were implemented.
In response to prolonged lead times in transportation to Europe due to issues in the Red Sea, measures were taken tominimize airfreight usage and reduce ocean freight costs.
3/12© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

１． Points of the financial results ~ Summary of consolidated financial results[In 100 million yen]

FY2023
Jan～Mar2023 results

FY2024
Jan～Mar2024 results

Difference

Ratioed427

465

378.7％

AutomotiveEquipment

425

461

37Others

33

Operating Profit(16)Ordinary Profit

0SalesVer Previous year

Ver Previousyear

FY2023
Oct～Dec2023

Difference

476

(11)

8.6％

472

(11)

０－30(18)

(1)

-8.4％

(46)

28

66－(62)68(16)

19

148yen0yen

159yen2yen

Net income
attributable toowners of the parentcompany OrdinaryProfit

5

US＄132yen

148yen16yen

EUR142yen161yen19yen3(2)Exchange-39.2％*Actual figures are rounded to the nearest 10 million yen.
*Exchange rate: Average market rate

4/12

© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

２．Sales by Business Segment ~ by Region[In 100 million yen]

Net sales 46.1 billion yen Increase 3.7 billion yen（Up 8% year-on-year）

EuropeChina and Asia

Increase in imports,
impact of sluggish demand（ Increase by 4.0 billion yen due to currency effects
real excluding foreign exchange -0.3 billion yen ）China and India: Growth in sales to local manufacturers.
In China, there is also growth in sales for EV vehicles.

※ Automotive Equipment segment only. Excluding other businesses+30200166+7（+4%）

200

173
20

Composition by regions(%) is year-on-year change（+18%）

166

196
11currency
effects
100

100

currency
effects

185

153
JapanAsia008%(+1%)FY2023
Jan-Mar

18%(+1%)

38%Europe(-2%)

Japan

Americas200200Growth in sales to OEM andconstruction machinery sectors

24%(+2%)China

12%(-2%)

Americas

FY2024
Jan-Mar

FY2023
Jan-Mar

FY2024
Jan-MarIncreased deliveries for EV vehicles,but a decrease in the aftermarket andto Latin America.

10010031+5（+15%）36340

FY2023
Jan-Mar5/1262▲６（－11%）56
currency

2FY2024
Jan-Mar

6 effects

currencyeffects

500

FY2023
Jan-Mar© 2024 SANDEN CORPORATION

FY2024
Jan-MarFinancial Results for 1Q FY12/2024

２．Sales by Business Segment ~ by Product[In 100 million yen]

Net sales 46.1 billion yen Increase 3.7 billion yen（Up 8% year-on-year）（ Increase by 4.0 billion yen due to currency effects
real excluding foreign exchange -0.3 billion yen ）ECHVAC※ Automotive Equipment segment only. Excluding other businesses

200200Composition by product103(%) is year-on-year change+5（+5%）

108

23%(-1%)

FY2023
Jan-Mar

FY2024
Jan-Mar18%(±0%)

Sales growth mainly in ECH

Increase in sales of PX compressors

200+13（+6%）

229

200

100+1031

HVAC

FY2024
Jan-MarMC

216
ITMS

83

ITMS

50%(-1%)9%(+2%)+7（+9%）

0FY2023
Jan-MarEC

76
1001000MC

Slightly sluggish in China, but overall sales
continue to be favorable

Growth of EVs and start of productionin the Americas（+35%）

4101000FY2023
Jan-Mar

6/12

FY2024
Jan-Mar

FY2023
Jan-Mar© 2024 SANDEN CORPORATION

FY2024
Jan-MarFinancial Results for 1Q FY12/2024

３． Operating income (Year-on-year comparison)[In 100 million yen]

Jan-Mar FY2023 comparison
Previous FY
Net Sales
Operating Income

427

Operating losses decreased, excluding the impact of increased investments in growth.
Current FY Difference ⚫ Selling, General, and Administrative (SG&A) expenses have risen due to inflation-driven
increases in administrative costs and the incidence of air freight related to the Red Sea issue.
465+37 ⚫ Productivity has improved and costs have been reduced due to enhanced capacity utilization.

（16）

（18）

（2）

Investments for future growth have been made in development and facilities.

0-5+9-10▲10-15＋3▲16▲2-20▲3-25▲8＋2R&D：▲5Equipment
depreciation ：▲3▲1Scale▲1Configuration▲2▲2CD ＋4
Depreciation ▲2(One-time expenses)-30

CY23 1Q

価格
Price

Scale /Logistics
規模構成
物流費
configuration expenses
tion

▲18

Administrative Cost
管理費
原価低減
expenses
reduction

7/12

Productivity
生産性Exchange
為替Real実質ベース
basisGrowth andDevelopment
成長投資Investment© 2024 SANDEN CORPORATIONCY24 1Q

４．Major Indicator Trends~ Net Sales, Ordinary Income, EBITDA

Financial Results for 1Q FY12/2024[In 100 million yen]

Net Sales: Despite the sale of a system development subsidiary in September 2022, sales increased for the third consecutive year
Ordinary Income: Equity earnings from investments, bolstered by the strong performance of the Sanden brand, remained steady. Foreign exchange
gains also made a significant contribution.
EBITDA: Improved in tandem with ordinary income, with an increase in depreciation due to capital investments aimed at growth.
Net Sales

EBITDA

Ordinary Income465427

23.4407
17.0

15.5

6.2

5.60.2
FY2022

FY2023

FY2024

1Q Results 1Q Results 1Q Results

FY2022

FY2023

FY2024

1Q Results 1Q Results 1Q Results
8/12

FY2022

FY2023

FY2024

1Q Results 1Q Results 1Q Results© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

４．Major Indicator Trends~ New commercial rights / Growth Investment

Growth Investment Expenses

Status of new commercial rights acquisition※Total lifetime sales of acquired commercial rights(representing the total revenue generated
from each project, from the start of mass production throughout its lifecycle.)162[In 100 million yen][In 100 million yen]

128
Breakdown of vehicles for which new commercial rights
were acquired in the first quarter

37％
increase

94
For new energy vehicles

115％
increase

50%
１Q
Results
702

50%

For
internal combustion vehicles

327
FY2022
Results

FY2023Results

31
FY2022
Results

FY2024Plan

FY2023Results

１Q
Results
39

FY2024Plan●Major Recent Acquisitions:● Main reasons for increase from FY2023 to FY2024

China: Air conditioning systems for Chinese electric vehicle manufacturers.
Europe: Compressors (EC, PX) for major European customers.
Japan: Air conditioning systems for major Japanese customers.

- R＆D Expenses

9/12- Increase in depreciation
due to equipment investment

・ ITMS Development
・ EC Platform Development ・ EC line in the Americas
・ China area ECH line

© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

５．Consolidated balance sheet[In 100 million yen]*Days are based on ending balance and sales in the last 3 months.
*Individual items may not equal totals due to rounding

AssetsCash&deposits

1,620

1,625

168

228

Accounts
356
receivable （75days）
Inventory
assetsOther

Liabilities & Net Assets

343（65days）（77days）

313（59days）

122

83

364

1,671
191

365
（71days）

Accounts
payableBorrowing
322（62days） （Net Debt）

610

659

USD:134
EUR:146

USD:142
EUR:157

381（76days）（72days）（75days）

528
（360）

572
(345）

587
（397）

464

477

385

698

Net assets
2023/12363

489

Fixed assets
2023/3

1,625

95

Other

1,671

1,620

240
2023/32024/3（14.8％）2082023/12221（12.8％）（13.2％）

2024/3（Equity capital231） （Equity capital202） （Equity capital214）（12.4％）（14.3％）（12.8％）

USD:151
EUR:163

10/12© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

６．Business Topics
Establishment of production system

Progress in Technology Development●Exhibited at CES2024, the world's largest exhibition,garnering high expectations for the evolution of future
mobility scenarios.

●European Area: Initiated the construction of a new nextgeneration electric compressor line. Received a grant of
2 billion yen from the French government.

●Joint presentation with Vitesco at the Vienna International
Motor Symposium: Accelerating the development of ITMS
to comply with PFAS regulations.

●China Area: Started mass production of the ECH highvoltage 800V specification. ※ ECH (Electric CoolantHeater) =Water-heating electric heater.

×11/12© 2024 SANDEN CORPORATION

Financial Results for 1Q FY12/2024

６．Business Topics
Customer evaluations● Successfully achieved a major milestone
with the production of 400 million compressor
units worldwide.

Accelerating Sustainability Initiatives● Intensifying initiatives towards meeting the carbon neutrality targets.
France: Introduction of Methanation Gas Started using carbon
neutral gas (methanation), which is methane gas
generated from CO2.
Japan: Transition from Kerosene to Gas
in FuelAchieved a 15% Reduction in CO2 Emissions in Fiscal
Year 2023 Compared to Previous Levels.

● Honored with the Supplier Performance Management
Award by Paccar, recognized as a top truck manufacturer
globally.

China/Asia Area: Introduction and Expansion of Solar Power Generation
Facilities
Solar power generation facilities have been introduced and expanded at the Tianjin
plant in China, as well as in Singapore and Malaysia.
12/12© 2024 SANDEN CORPORATIONFor inquiries, please contact us via email at: sdhd.prcsr.jp@g-sanden.com.