COMPANY RESEARCH AND ANALYSIS REPORT

SUN-WA TECHNOS CORPORATION
8137
Tokyo Stock Exchange Prime Market

29-Jul.-2022
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

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Delivered all-time-high results in FY3/22 for the first time in four years atop growth in orders for
products for the semiconductor-related and industrial machinery industries ..............................................

01

2. Expecting continued increases in net sales and profits in FY3/23 based on an extensive orders backlog . ....

01

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

02■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. FY3/22 results overview......................... ......................................................................................................

03

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

05

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

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

08

2. Review of the former medium-term management plan. ...............................................................................

09

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

12■Shareholder return policy---------------------------------------------------------------------------------------------------------------------------------- 17

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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

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html■ SummaryAnnounced a medium-term plan that seeks to increase operating
profit 1.5-fold from FY3/22 to ¥7.0bn in FY3/25
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. Delivered all-time-high results in FY3/22 for the first time in four years atop growth in orders for products
for the semiconductor-related and industrial machinery industries
In its consolidated results for FY3/22, the Company delivered all-time-high results for the first time in four years,
with net sales of ¥154,414mn, up 14.6% YoY, and operating profit of ¥4,804mn, up 123.2%. The main reasons
were growth in capital investment led by the semiconductor-related and industrial machinery industries, along withaccelerated procurement from customers concerned about the impact on production of shortages in the supplyof parts. In terms of regional net sales, net sales to Asia, primarily China, rose substantially by 47.4% YoY. Orders
received increased 44.9% to ¥199,931mn, and orders backlog expanded 165.1% to ¥73,081mn from the end of
FY3/21. The Company switched to use of net value that removes paid-for supplied products from net sales due toa change in accounting standards from FY3/22, and this reduced net sales by ¥17,043mn. Net sales were up by
27.2% in a comparison applying the previous standard.
2. Expecting continued increases in net sales and profits in FY3/23 based on an extensive orders backlog
In its forecasts for FY3/23 consolidated results, the Company expects net sales to increase by 6.7% to ¥164,700mn
and operating profit to increase by 4.1% to ¥5,000mn. There is growing uncertainty in the outlook for the external
environment, including the impact of the COVID-19 pandemic on production and logistics activities in China and theimpact of rising energy prices on general economic conditions. However, capital investment in the manufacturingsector, particularly the semiconductor-related industry, is expected to continue expanding in FY3/23, and theCompany has an extensive orders backlog. For these reasons, net sales and profits are both forecast to continue
increasing.

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01 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Summary

3. Announced the new medium-term management plan, “SNS2024 (Sun-Wa New Stage 2024)”
The Company has announced its new medium-term management plan “SNS2024 (Sun-Wa New Stage 2024).” It will
implement the plan’s three 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. In FY3/25, the plan’s final fiscal year, the Company is targeting net sales of ¥195,000mn and operating profitof ¥7,000mn. The average annual growth rates over three years will be 8.1% for net sales and 13.4% for operating
profit. 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 through digital 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 automation equipment, on-board products, and facilities), and other fields.
By formulating and implementing strategies for each of those fields, the Company will seek to increase gross profit.
In fields where resources are actively and selectively allocated, the Company expects profit growth of at least 10%
per year (at least 15% in semiconductor production equipment). Moreover, in April 2022 the Company launched
a dedicated sales organization that will provide optimal products and solutions to each customer industry without
being tied to a specific region, as part of efforts to develop new customers and deepen transactions with existingcustomers. In overseas business, the Company will raise the sales ratio from 38% in FY3/22 to 40% in FY3/25. It
plans to aim for business expansion not only in China but also in other Asian regions, and it has plans to enter the
Indian market for the first time. The Company is projected to achieve consistent growth over the medium and longterms because it carries many products that contribute to energy and labor savings. The Company is expected tocapture such demand through this new business strategy, and thereby pave the way for profit growth.
Key Points
Delivered all-time-high results in FY3/22 for the first time in four years atop growth in orders for products for thesemiconductor-related and industrial machinery industries• Increases in net sales and profit are expected to continue in FY3/23 based on an extensive orders backlog,
despite China risk••

Announced the new medium-term management plan, targeting operating profit of ¥7.0bn in FY3/25, a 1.5-foldincrease from FY3/22.

Results trends
Net sales (left)

Operating profit (right)

(¥mn)
4,804

200,000

160,000

120,000

145,410

154,414137,943

5,000

(¥mn)
5,000

164,700
4,000

134,769
3,000

3,410

80,000

2,000
2,152
1,846

40,0001,000

00
FY3/19FY3/20FY3/21

FY3/22

FY3/23 (E)Source: Prepared by FISCO from the Company’s financial results

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02 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

https://www.sunwa.co.jp/en/ir/index.html■ Results trends
Delivered all-time-high results in FY3/22 for the first time in four
years atop growth in orders for products for the semiconductorrelated and industrial machinery industries
1. FY3/22 results overview
In its consolidated results for FY3/22, the Company delivered all-time-high results for the first time in four years,
with net sales of ¥154,414mn (+14.6% YoY), operating profit of ¥4,804mn (+123.2%), ordinary profit of ¥5,195mn(+102.4%) and profit attributable to owners of parent of ¥3,577mn (+100.3%). Although net sales were below
forecast, profits surpassed the Company’s forecasts at every level. While the COVID-19 pandemic continued inJapan and abroad, growth in capital investment was led by the semiconductor-related and industrial machineryindustries, and there were signs of activity to accelerate orders placement by customers who were considering theimpact on production of shortages in the supply of parts, such as semiconductors. Orders received rose sharply by
44.9% YoY to ¥199,931mn and orders backlog increased substantially by 165.1% from the previous fiscal year-end
to ¥73,081mn.
FY3/22 results (consolidated)(¥mn)
FY3/21

Net sales

FY3/22

Result% of sales

Company’s
forecast*

Result% of sales

134,769-

156,500

154,414-173,543

171,457(Net sales by previous standard)(Previous
standard)

YoY

vs. forecast

14.6%

-1.3%

27.2%

-1.2%
-

Gross profit

14,224

10.6%-

18,772

12.2%

10.9%

32.0%

SG&A expenses

12,071

9.0%-

13,967

9.0%

8.1%

15.7%

-

Operating profit

2,152

1.6%

4,300

4,804

3.1%

2.8%

123.2%

11.7%

Ordinary profit

2,567

1.9%

4,600

5,195

3.4%

3.0%

102.4%

12.9%

Profit attributable to owners of parent

1,786

1.3%

3,240

3,577

2.3%

2.1%

100.3%

10.4%* The Company’s forecasts refer to the forecasts announced in January 2022.
Source: Prepared by FISCO from the Company’s financial results

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03 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Results trends

Orders and net sales by half year
Net sales(¥mn)

Orders received

Orders backlog

120,000
104,306
95,625100,000
80,00067,652
67,60870,33568,58360,00040,00026,09078,45972,956

83,43673,081

70,97861,81359,53624,33852,211
27,56422,06220,0000
1H

2H
FY3/201H

2H
FY3/21

1H

2H
FY3/22

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

The Company’s change in accounting policy* from FY3/22 reduced net sales and cost of sales by ¥17,043mn
compared to the previous standard. On the previous standard, net sales were up 27.2% YoY to ¥171,457mn. Grossprofit margin rose from 10.6% in FY3/21 to 12.2% in FY3/22, and it increased slightly to 10.9% when comparedbased on the previous standard. Gross profit increased by 32.0% to ¥18,772mn owing to increased net sales andthe improved gross profit margin. SG&A expenses increased by 15.7% to ¥13,967mn, mainly due to increases inpersonnel costs and packaging and transportation costs, along with a return to the normal framework for sales
activities, including lifting a ban on business trips from 2H FY3/22, and an increase in overseas subsidiaries’ shareof SG&A expenses due to the yen’s continued depreciation. The SG&A expenses ratio decreased from 9.0% in
FY3/21 to 8.1% on the previous accounting standard, because of the effect of increased net sales.
*	Application of the Accounting Standard for Revenue Recognition changed the method to not recognizing paid-for supplied
products, which were previously booked in the same amount in net sales and cost of sales, as income from FY3/22.
In the Company’s case, this change affects domestic on-board automotive electronic equipment business (Electronics
Department).

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04 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Results trends

Gross profit margin and SG&A expenses ratio
Gross profit margin
SG&A expenses ratio

Previous standard
Previous standard

14.0%
12.0%

11.5%

12.2%
11.2%

10.5%

10.6%

9.1%

9.0%

10.9%

10.0%
9.0%
8.0%

8.7%

8.9%

FY3/18

FY3/19

8.1%

6.0%

4.0%
2.0%
0.0%
FY3/20FY3/21

FY3/22

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

Asian sales climbed sharply mainly driven by China at the regional
level, semiconductors-related and industrial equipment achieved
significant growth at the industry level
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, and discloses the sales composition ratio by industry
and trend fluctuations as reference information.
(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 34.7% YoY to ¥31,198mn due to increases in sales by chip mountersand other electrical machinery and control equipment for the industrial machinery industry, electrical machinery
for the semiconductor-related industry, and electrical machinery for the solar power-related 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 increased for electronic components, electronic equipment and connectors for the industrial machineryand semiconductor-related industries. Net sales were also higher for electronic components for the office applianceequipment-related industry. In addition, although net sales of electronic components for automotive on-board
products achieved a double-digit increase in real terms, these net sales appear to have decreased because
paid-for supplied products were excluded from net sales due to the change in accounting standard. The impactof the change in accounting standard amounted to ¥17,043mn. Net sales in the electronics segment rose 28.3%
YoY to ¥131,698mn based on the previous accounting standard.

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05 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Results trends

The main products in the general machinery segment include robots from YASKAWA Electric Corporation, as wellas conveyors and reduction gears. Net sales decreased 4.4% YoY to ¥8,560mn, despite increase in transport
equipment for the semiconductor-related industry and facilities equipment for the consumer goods industry(manufacturing facilities for face masks), because of decline in sales of facilities equipment to the flat panel display(FPD) industry that had recognized revenue for a major deal in FY3/21.
Net sales by business segment(¥mn)
FY3/19FY3/20FY3/21

FY3/22

YoY

Electrical machinery

24,56921,13723,15731,198

34.7%

Electronics

109,370

106,400

102,657

114,655

11.7%

-

-

-

131,698

28.3%

General machinery

11,47010,404

8,955

8,560

-4.4%

Total

145,410

137,943

134,769

154,414

14.6%(Previous accounting standard)

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

In terms of the sales composition ratio by industry, the composition ratios were 28% for factory automation equipment, 13% for robots and mounters, 12% for semiconductor production equipment, 9% for on-board products(Advanced Driver Assistance Systems-related), 4% for machine tools, and 34% for others (social infrastructure,amusement, medical equipment, food distribution, office equipment, consumer electronic equipment, security,etc.).

Sales composition ratio by industry (FY3/22)

Factory
automationequipment
28%

Other
34%

Robots andMachinemounters
tools
Semiconductor
13%
4% On-board
production
productsequipment
9%
12%
Source: Prepared by FISCO from the Company’s results briefing materials and medium-term management plan materials(2) Trends in sales and profits by segment
Japanese business recorded ¥115,811mn in net sales (+7.0% YoY) and ¥3,049mn in operating profit (+154.8%).
While sales increased in electrical machinery, control equipment, and electronic components for the industrial
machinery industry, and electrical machinery, electronic equipment, connectors and transport equipment for thesemiconductor-related industry, sales of transport equipment to the FPD-related industry declined. Net sales
under the previous standard increased 22.7% to ¥132,854mn.

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06 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Results trends

Asian business posted ¥52,216mn in net sales (+47.1%) and ¥1,924mn in operating profit (+109.8%). Sales
increased in electronic components for the industrial machinery industry, electrical machinery and electronic
components for the semiconductor-related industry, and electrical machinery for the solar power-related industry.
Demand in China, which accounts for nearly 80% of net sales in Asia, had recovered at an early stage beginningin 3Q FY3/21, and that momentum continued throughout FY3/22. In addition, project orders for global SCM
solutions in Southeast Asia increased, contributing to profit growth.
In Europe and the US, net sales rose 31.9% YoY to ¥6,214mn, increasing for the first time in four years. However,
the operating loss increased from ¥1mn in FY3/21 to ¥108mn. Surging transportation costs were principally
responsible for the larger loss, despite an increase in sales of electronic components for the industrial machineryindustry and facilities equipment for the consumer goods industry.
Net sales and operating profit by segment(¥mn)< Net sales>

FY3/19FY3/20FY3/21

FY3/22

YoY

115,993

110,335

108,252

115,811

7.0%

-

-

-

132,854

22.7%

Asia

37,18834,45435,492

52,21647.1%

Europe/US

8,084

6,398

4,711

6,214

31.9%

Other

1,733

1,396

931

748

-19.7%

Japan(Previous accounting standard)

Adjustment-17,589-14,641-14,617-20,575-

Total

145,410

137,943

134,769

154,41414.6%

FY3/19FY3/20FY3/21

FY3/22

Japan<Operating profit>

1,939

1,285

1,197

3,049

154.8%

Asia

1,208

592

917

1,924

109.8%

254

-84

-1

-108

-

Other

3

7

16

-16

-

Adjustment

4

46

23

-44

-

3,410

1,846

2,152

4,804

123.2%

Europe/US

Total

YoY

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

Increases in net sales and profit are expected to continue in FY3/23
based on an extensive orders backlog, despite China risk
3. Outlook for FY3/23 results
In terms of the outlook for FY3/23 results, the Company expects net sales and profits to continue to increase, albeit
at a slower growth rate. It is forecasting net sales of ¥164,700mn (+6.7% YoY), operating profit of ¥5,000mn (+4.1%),
ordinary profit of ¥5,200mn (+0.1%), and profit attributable to owners of parent of ¥3,600mn (+0.6%).
FY3/23 consolidated results forecast(¥mn)
FY3/22
Results

FY3/23% of sales

1H forecast

YoY

Full-year
forecast% of sales

YoY

154,414-

83,10017.1%

164,700-

6.7%

Operating profit

4,804

3.1%

2,600

23.3%

5,000

3.0%

4.1%

Ordinary profit

5,195

3.4%

2,700

23.0%

5,200

3.2%

0.1%

Profit attributable to owners of parent

3,577

2.3%

1,900

22.5%

3,600

2.2%

0.6%

Earnings per share (¥)

228.33

Net sales

123.03233.11

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

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07 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Results trends

The main risk factors include the Ukraine situation, negative impacts on production and logistics activities due to
COVID-19 policies in China, rising energy prices, and reduced production plans caused by semiconductor shortages.
In practice, net sales to China in April 2022 temporarily decreased due to lockdowns in Shanghai. That said, withorders received setting a record high in April, the orders situation remains strong, and there are no signs of waning
investment sentiment. In China, demand rapidly recovered after lockdowns were lifted in 2020, and the Company
has an extensive orders backlog, so results are expected to grow firmly over the full fiscal year. The operating profit
margin is forecast to decrease 0.1 percentage point YoY. It appears that this decrease mainly reflects the Company’s
conservative estimates based on expectations of an increase in operating expenses caused by restarting businesstrips, which had been curtailed for part of FY3/22, and the uncertain external environment at this time.

■ 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. 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.
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: “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 thingsfrom the customer’s perspective and sharing values with customers. With “Spirit of Challenge,” the Group sets highgoals 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.

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08 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Long-term vision and medium-term management plan

Achieved the performance targets of NEXT 1800, the former
medium-term management plan, on a profit basis
2. Review of the former medium-term management plan
(1) Review of the former medium-term management plan
Looking back at NEXT 1800, the Company’s three-year medium-term management plan from FY3/20 to FY3/22,
the Company fell below its performance targets both in the plan’s first and second years. In the first year, theshortfall was caused by a temporary slowdown in investment due to the impact of U.S.-China trade friction, andin the second year it reflected the impact of the global economic downturn caused by the COVID-19 pandemic.
However, in the third year, the Company regained lost ground immediately because of an improving market
environment, centered on the Chinese market. It achieved its initial forecast for operating profit of ¥4,800mn andan ordinary profit margin of 3.0%, which was above its target of 2.8%. Net sales were ¥171,457mn based on theprevious accounting standard, which was below the Company’s target of ¥180,000mn. However, the shortfall in
net sales reflected the factors behind the Company’s underperformance up to the plan’s second year, and theimpact of the semiconductor supply shortage in FY3/22. The Company was able to achieve its profit targets evenwhile falling below its net sales forecast mainly because it was able to reduce SG&A expenses more than it had
expected as it worked on priorities such as improving operating efficiency using ICT, along with refraining frombusiness trips and curtailing various expenses during the COVID-19 pandemic.
Management goals in the NEXT1800 medium-term plan, results/plan(¥mn)
FY3/20FY3/21

FY3/22

FY3/19Results

TargetResults

TargetResults

TargetResults

145,410150,000

137,943

165,000

134,769

180,000

171,457*

95.3%

Operating profit

3,410

3,100

1,846

3,800

2,152

4,800

4,804

100.1%

Ordinary profit

3,627

3,300

2,144

4,000

2,567

5,000

5,195

103.9%

2.5%

2.2%

1.6%

2.4%

1.9%

2.8%

3.0%

Net sales(profit margin)

Achievement
rate* Net sales based on the previous accounting standard
Source: Prepared by FISCO from the Company’s financial results and materials

Additionally, the key measures set forth in the former medium-term management plan and their accomplishments
are described below. At FISCO, we believe that the Company delivered largely solid accomplishments.
a) “Contribute to customer production activities by strengthening core businesses”
As a means of strengthening core businesses, the Company worked to expand the engineering business, improve
the gross profit margin, and drive growth in the global SCM solution business.

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09 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Among these priorities, the gross profit margin of the engineering business rose from 12.2% in FY3/19 to 14.0%
in FY3/22. However, it did not reach the 25-30% level that the Company had initially targeted. In the engineeringbusiness, the Company seeks to systematically organize products that it had previously sold as standalone
products, optimize the products to meet the customer’s needs, and then sell the products to customers. Thisapproach aims to enhance profitability by providing added value in the form of engineering to products, while
making the size of order value per project larger than before. Initially, the strategy was to enhance profitability bypitching to customers a certain proposed set of products that the Company had systematically organized by itself
to a certain extent. In practice, however, many projects ended up requiring the Company to systematically organize
products according to the requests of customers. Ultimately, this approach did not lead to a large improvementin profitability. The Company opened the Tokyo Technology Center in 2020 as a venue for carrying out businessnegotiations. Another factor behind the smaller-than-expected improvement in profitability was that sales activities
at the Tokyo Technology Center did not proceed as anticipated amid the continuing COVID-19 pandemic. Net
sales in the engineering business were around ¥12.4bn in FY3/19. However, in FY3/22, it seems that net sales
were held to a level below ¥10.0bn because of the shift to a policy with greater emphasis on profitability.
Overview of engineering business

Source: The Company’s website

Meanwhile, net sales of the global SCM solution business rose from around ¥10.0bn in FY3/19 to around ¥13.4bn
in FY3/22. This business is an outsourcing service in which the Company undertakes, on a one-stop basis, thefunction of procuring electronic components, facilities equipment and other items from suppliers on behalf ofclient companies, which had previously conducted these activities independently. Concentrating procurement
functions at the Company will enable client companies to benefit from reduced procurement costs, shorter leadtimes, and lower costs for the relevant departments. A worsening external environment, among other factors, hadcaused the business to be sluggish until FY3/21. However, from FY3/22, net sales grew substantially, due partly
to heightened supply chain risk caused by factors such as semiconductor shortages, and to a further increasein demand for outsourcing services. In addition, the Company began reviewing global logistics infrastructure
and conducting improvement activities at the same time as establishing this business division. As part of these
efforts, the Company has started to operate a Warehouse Management System (WMS) in earnest. The operationof the WMS has made it possible to visualize logistics costs for each project, leading to sustained improvement in
profitability through the enhancement of logistics efficiency. In the global SCM solutions business, the production
sites of customers may become more and more spread out because of the COVID-19 pandemic. There are highhopes that these activities will pave the way for not only growth in the size of transactions with existing customers,
but also help the Company to obtain new customers.

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

10 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Trends in net sales in the global SCM solutions business
(¥bn)
16.0
About ¥13.4bn

14.0
12.0
About ¥10.0bn
10.0

About ¥9.5bn
About ¥8.6bn

About ¥7.3bn

8.0
6.0
4.0

About ¥3.8bn

2.0
0.0
FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Source: Prepared by FISCO from the Company’s results briefing materials and medium-term management plan materialsb) “Expand global business capabilities to support market demand”
Under the previous medium-term management plan, the Company worked to expand facilities at overseas bases,
with the aim of expanding the global business. Efforts have also been made to strengthen sales operations. The
Company opened a sales office in Ho Chi Minh City, Vietnam, as its second base in the country, in August 2019.
The Company also opened sales offices with local staff in Penang, Malaysia in January 2021 and Xiamen, China
in May 2021.
Currently, because the majority of the customers of the Group’s overseas local corporations, which operate
28 bases in 13 countries, are Japanese companies, Japanese employees are involved in their management.
However, to expand the size of the Company’s business further, it is considered important to strengthen theorganizational capabilities even more by appointing local staff as managers. Based on this belief, in 2020, theCompany initiated the Global Next Leader Training Program, and has regularly provided training to around 10
management candidates. In March 2022, the Company completed training of the program’s first class of management candidates, with plans to continue implementing human resources development going forward. If the
globalization of management human resources continues, we at FISCO anticipate that the Company will makeprogress on customer acquisition of foreign companies, which currently provide only around 10% of total sales(around 35% in the Chinese market), and that this will lead to the further growth of overseas sales.

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

11 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

In Japan, meanwhile, the Company has been opening smart sales sites in regional areas since 2019 as new sales
offices. A smart sales site refers to a small-scale site with only about two sales members. These sites seek todeepen transactions by bolstering relationships with attractive customers scattered in smaller regional cities andto develop new customers. Internal operations without clerical staff are supported by remote branch offices, whichmake it possible to reduce the costs associated with sales offices and the labor costs of internal staff. During the
COVID-19 pandemic, cases of online sales discussions are increasing, and in the B-to-B market, such as factory
automation and industrial equipment, customers’ requests are diverse and, in many cases, listening to what they
say in direct discussions leads to building relations of trust with them and new sales discussions. In fact, at the
Shikoku Sales Office (Niihama, Ehime Prefecture), which opened in 2019, and the Nagaoka Sales Office (Niigata
Prefecture) and the Kofu Sales Office (Yamanashi Prefecture), which were opened in FY3/21, the numbers ofsales discussions with customers are increasing. More recently, the Company opened the Kanazawa Sales Office(Ishikawa Prefecture) in October 2021 and the Kitakyushu Sales Office (Fukuoka Prefecture) in December 2021.
It is considering plans to open the Morioka Sales Office (Iwate Prefecture) in the future. In addition, the Company
is looking at plans to open sales offices overseas, specifically in India and in Wuhan and Qingdao in China.
c) “Pursue new business fields to accelerate sustainable growth”
As a new business field, the Company has been working to expand the health-related business. It has implemented specific measures such as introducing and expanding sales of automated external defibrillators (AEDs)
and spatial sterilizing and deodorizing devices as a means of preventing infections during the COVID-19 pandemic.
Apart from this, the Company also worked to sell LED lighting devices as a decarbonization business. Althougheach of these businesses had a negligible impact on results, the Company intends to continue these activities asbusinesses that help to contribute to society.
d) “Conduct initiatives to realize a sustainable society”
Looking at the Company’s SDGs activities, the Company has defined important issues and has set up the
SDGs promotion committee to promote activities, along with appointing an SDGs ambassador. The Company
encourages individual employees to set individual goals related to SDGs to increase their awareness of the SDGs.
At the business level, it has strengthened sales activities for businesses with a clean energy theme targeting
realization of a decarbonized society, such as solar panels and other renewable energy and electric vehicles andenergy-saving business that contributes to lowering CO2 emissions. The Company has also been promoting
workstyle reforms utilizing ICT.

Announced the new medium-term management plan, targeting
operating profit of ¥7.0bn in FY3/25, a 1.5-fold increase from FY3/22
3. New medium-term plan, “SNS2024 (Sun-Wa New Stage 2024)”(1) Management goals
In its management goals for the three-year period 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 recognized that in these times, as the market
environment changes at an increasingly faster pace, 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.

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

12 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

In terms of specific performance targets, the Company is targeting net sales of ¥195.0bn and operating profitof ¥7.0bn in FY3/25. It will raise the operating profit margin from 3.1% to 3.6%, and primarily expects the grossprofit margin to increase. The average annual growth rates over three years will be 8.1% for net sales and 13.4%
for operating profit. As noted earlier, the growth rate is expected to slow down in FY3/23, so growth is forecast toaccelerate from FY3/24 onward. Moreover, the overseas sales ratio (net sales of overseas operating companies
÷ consolidated net sales) will be raised from 38% in FY3/22 to 40% in FY3/25. The Company plans to drive
growth in business primarily in Asia. In addition, if the Company can achieve its performance targets in FY3/25,
it appears that the Company, as its next step, is setting its sights on net sales of ¥250.0bn and operating profitof ¥10.0bn in FY3/28.
Management goals in the “SNS2024(Sun-Wa New Stage 2024)”(¥mn)
FY3/22 Results

FY3/25 Target

Average annual
growth rates

154,414

195,000

8.1%

Operating profit

4,804

7,000

13.4%

(profit margin)

3.1%

3.6%

Net sales<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)

3.2%

3.5%

Net sales<Overseas subsidiaries>

Note: Assumed exchange rate: ¥115 per U.S. dollar
Source: P repared by FISCO from the Company’s results briefing materials and medium-term management planmaterials(2) Fundamental policies
In terms of the basic policies that the Company will implement in SNS2024, the Company has set forth three basic
policies: a) Focus on growth fields that require innovation, b) Provide even higher value-added products and new
solutions, and c) Help to realize a sustainable society through sustainability management. By implementing thesepolicies, the Company intends to achieve 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 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 be expected to grow from the perspectiveof economic security. The Company has identified its main strategies as developing joint themes with customers
that lead to improved performance, advancing proposals for unit assemblies that lead to cost reductions, anddeveloping relationships with new suppliers, which is essential to obtaining new promising customers. By executing these strategies, the Company aims to achieve growth of at least 15% per year in gross profit.

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

13 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
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 it is a segment
where the Company can easily demonstrate its competitive advantages. The Company’s main strategies are
to work to increase its internal product share for each customer, and to develop new customers for peripheraldevices. Moreover, the Company intends to gather information on customer needs and pursue the planning ofproducts focused on industries. By implementing these strategies, the Company aims for growth of at least 10%
per year in gross profit.
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 wellas their automation and digitalization, offers prospects for growth. The Company will push ahead with main
strategies including proposing factory automation PCs (FAPCs), which will become increasingly important with thedevelopment of new customers for peripheral devices and adoption of IoT, and proposing global SCM solutions
as BCP measures. By implementing these strategies, the Company aims for growth of at least 10% per year ingross profit.
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. For this reason, among the Company’s fields, the size ofgross profit is the largest. 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, andstrengthen the supply of information by actively harnessing digital tools. By implementing these strategies, theCompany aims for growth of at least 10% per year in gross profit.
In the on-board products field, a once-in-a-century period of transformation has arrived. This segment can expect
to see evolution in on-board automotive systems and market expansion based on the keyword of CASE.* The
Company’s three main strategies in this field are to develop new customers through cross-field expansion ofexisting products, develop new strategic products globally, and build an organization to develop new customers.
By implementing these strategies, the Company aims for growth of at least 10% per year in gross profit.
*	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 are to strengthen its
ability to offer proposals to customers through unified sales and engineering, expand projects through collaboration
with system integrators in the food industry, and improve profitability through the packaging and cross-field
expansion of facilities. By implementing these strategies, the Company aims for growth of at least 10% per year
in gross profit.
The Company aims to increase the gross profit of the aforementioned six fields by ¥4.1bn in total over the next 3
years. The six fields account for a combined share of 69.6% of the gross profit of ¥14.2bn for FY3/22. Looking
ahead, these fields are expected to continue to drive the Company’s results. Gross profit of other fields is also
forecast to increase over the next 3 years.

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

14 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Growth scenario for gross profit+¥4.1bn

Factory
automation equipment

Factory automation equipment
Factory
automation equipment

Semiconductor
production equipment
On-board products

Semiconductor
production equipment
On-board products
Robots and mounters

Robots and mounters

Facilities

Facilities
Machine tools

Machine tools

FY2021

Semiconductor production equipment
On-board products
Robots and mounters
Facilities
Machine tools

FY2024

Source: Company’s results briefing materials and medium-term management plan materialsb) 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 aims to resolve these sorts of issues. For example, the Company has major
customers in the semiconductor production equipment field in the Kansai area, so its sales staff with specialized
knowledge were based in the Kansai area. However, given that no such personnel were assigned to the Tohoku
area, the Company’s sales to semiconductor production equipment manufacturers were sluggish in the Tohoku
area. The creation of a specialized organization will enable sales staff with specialized knowledge in the Kansai
area to conduct sales activities in the Tohoku area. This change in approach is expected to spur growth in sales.
The new organization is made up of 23 individuals selected from across Japan (including 4 executive officers).
Future developments will be watched closely.

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

15 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

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 also implementing activities to increase operating efficiency through digital transformation (DX).
Specifically, KGI will be made transparent across internal organizations to ensure the effectiveness of various
strategies. Other priorities include raising the efficiency of operations to concentrate on key strategies andemploying advanced data utilization to improve customer value. The Company will implement these priorities toenhance its corporate value. It will also strive to recruit and develop the human resources that will be needed topromote these DX strategies.
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 is targeting net sales of¥51.0bn and operating profit of ¥1.85bn. These targets will be achieved by providing the latest technologies andhigh-quality services by working to further enhance business sites, and by introducing personnel systems alignedwith the needs of local employees, among other structures. Moreover, in other Asian regions, the Company will
work to establish a stable management platform, bolster sales capabilities as an agent, build organizations that sell
a comprehensive range of products and solutions, and enter the Indian market. The Company aims to generate
net sales of ¥19.4bn and operating profit of ¥0.78bn in other Asian regions. The COVID-19 pandemic has started
to lead to the transfer of some production functions from China to other Asian regions. Capturing this demandshould make it possible for the Company to increase the size of net sales in these regions. In Europe and the US,
the Company will identify new products in the local market and conduct export sales globally, along with improving
the Company’s market recognition. Through these measures, the Company is targeting net sales of ¥8.1bn andoperating profit of ¥0.1bn in Europe and the US. In terms of new products, the Company has started to stockand sell European manufacturers’ odor sensors in Japan.

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

16 19

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange Prime Market

29-Jul.-2022
https://www.sunwa.co.jp/en/ir/index.html

Long-term vision and medium-term management plan

Forecasts of operating profit byoverseas region

Forecasts of net sales by overseas region
FY3/22

FY3/25
(¥bn)
2.0

(¥bn)
60

51.0

1.85
1.52

50

1.5

41.4
40

1.0

0.78

30
0.39

0.5

19.4

20

0.1

11.3
6.2

10

8.1

0.0
-0.05

0
China

Other Asian
countries

Europe/US

-0.5
China

Other Asian
countries

Europe/US

Source: Company’s results briefing materials and medium-term management plan materialsc) 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 thedevelopment of its employees. Notably, the Company carries an extensive range of electrical machinery, electronicparts, 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 an enterprise that willcontribute to a decarbonized society.

■ 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. Regarding the dividend
policy, the Company plans to maintain stable dividends while returning profits to shareholders according to consolidated results from medium- and long-term perspectives. In addition, the Company flexibly conducts share buybacks
according to the period and its financial condition, to enhance shareholder return and capital efficiency. Recently,
the Company bought back 363 thousand shares worth ¥599mn in November–December 2021.
Regarding the dividend per share for FY3/22, the Company increased the dividend for the first time in four years,
partly because it posted all-time high results. The dividend per share was increased by ¥3.0 from the previous year to¥37.0 (16.2% dividend payout ratio and 32.9% total return ratio including share buybacks). In addition, the Company
plans to increase dividends for the second consecutive year in FY3/23. It plans to increase the dividend per shareby ¥3.0 to ¥40.0 (17.2% dividend payout ratio). If it appears that results will steadily grow and the dividend payout
ratio will fall to an even lower level, it seems that there will be further scope to increase dividends.

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

17 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

8137 Tokyo Stock Exchange Prime Market

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

Shareholder return policy

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

(¥)
50.0

Dividend payout ratio (right)
45.0%

40.4%
40.0

40.0

37.0
34.0

34.0

30.0

20.0

36.0%

34.0

27.0%

30.0%
16.2%

17.2%
18.0%

20.7%

10.0

9.0%

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)
FY3/19FY3/20FY3/21

FY3/22

FY3/23(E)Net sales

145,410

137,943

134,769

154,414

164,700

YoY

-0.9%

-5.1%

-2.3%

14.6%

6.7%

Gross profit

16,31814,421

14,224

18,772

-

11.2%

10.5%

10.6%

12.2%

-

12,908

12,574

12,071

13,967

-

8.9%

9.1%

9.0%

9.0%

-

3,410

1,846

2,152

4,804

5,000

-17.5%-45.8%

16.5%

123.2%

4.1%

2.3%

1.3%

1.6%

3.1%

3.0%

3,627

2,144

2,567

5,195

5,200

-16.6%-40.9%

19.7%

102.4%

0.1%

2,628

1,341

1,786

3,577

3,600

Net sales gross profit margin
SG&A expenses
Net sales SG&A expenses ratio
Operating profit
YoY
Net sales operating profit margin
Ordinary profit
YoY
Profit attributable to owners of parent
YoY-14.8%-49.0%

33.2%

100.3%

0.6%

EPS (¥)

164.0884.11

113.23228.33233.11Dividend (¥)

34.00

34.00

34.00

37.00

40.00

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

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

18 19

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

SUN-WA TECHNOS CORPORATION

29-Jul.-2022

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

Changeamount17,77964,20962,71364,43082,209Cash and deposits

10,005

12,052

13,113

14,049936

Trade receivables

42,256

39,83842,45351,997

9,544

Non-current assets

9,905

9,024

11,951

10,868-1,083

2,861

2,759

2,590

2,230

-360

143

193

170

226

56

6,900

6,072

9,190

8,411

-779

Total assets

74,11471,73876,381

93,078

16,696

Current liabilities

37,19935,40236,372

52,797

16,42531,427

29,10829,45540,676

11,221

Non-current liabilities

4,970

4,608

4,978

2,257

-2,721

Total liabilities

42,16940,011

41,35055,054

13,703Current assets

Total property, plant and equipment
Intangible assets
Total investments and other assets

Payment obligations

Interest-bearing debt
Shareholders’ equity

6,705

6,709

7,048

7,805

757

29,05629,55230,80233,277

2,475

Accumulated other comprehensive income

2,888

2,174

4,228

4,746

518

Total net assets

31,94431,72635,03038,023

2,992

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

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

FY3/22

Cash flows from operating activities

1,636

3,238

1,589

792

Cash flows from investing activities

-153

-200

-141

244

Cash flows from financing activities

28

-945

-309

-580

9,521

11,568

12,62913,565

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

FY3/22Equity ratio

43.1%

44.2%

45.9%

40.9%

Interest-bearing debt ratio

21.0%

21.1%

20.1%

20.5%

ROE

8.8%

4.2%

5.4%

9.8%

Net cash

3,300

5,343

6,065

6,244

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

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

19 19

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
The issuers’ securities, currencies, commodities, securities and other financial instruments
mentioned in this report may increase or decrease in value or lose their value due to influence
from corporate activities, economic policies, world affairs and other factors. This report does
not make any promises regarding any future outcomes. If you use this report or any information
mentioned herein, regardless of the purpose therefor, such use shall be made based on yourjudgment and responsibility, and FISCO shall not be liable for any damage incurred by you asa result of such use, irrespective of the reason.
This report has been prepared at the request of the company subject hereto based on theprovision of information by such company through telephone interviews and the like. However,
the hypotheses, conclusions and all other contents contained herein are based on analysis
by FISCO. The contents of this report are as of the time of the preparation hereof, and are
subject to change without notice. FISCO is not obligated to update this report.
The intellectual property rights, including the copyrights to the main text hereof, the data
and the like, belong to FISCO, and any revision, reprocessing, reproduction, transmission,
distribution or the like of this report and any duplicate hereof without the permission of FISCO
is strictly prohibited.
FISCO and its affiliated companies, as well as the directors, officers and employees thereof,
may currently or in the future trade or hold the financial instruments or the securities of issuersthat are mentioned in this report.
Please use the information in this report upon accepting the above points.

◾ For inquiry, please contact: ◾

FISCO Ltd.
5-13-3 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (IR Consulting Business Division)
Email: support@fisco.co.jp