COMPANY RESEARCH AND ANALYSIS REPORT

SUN-WA TECHNOS CORPORATION
8137
Tokyo Stock Exchange First Section

14-Jan.-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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Steep rise in 1H FY3/22 profit driven by sharply higher orders in factory automation and industrial
equipment fields.................................... ......................................................................................................

01

2. Expecting net sales and operating profit to set all-time highs for the first time in four years in FY3/22 .......

01

3. Tailwinds from expansion of capital investments aimed at realizing a decarbonized society andheightened supply-chain risk. . .....................................................................................................................

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

03

2. Segment, industry and regional trends.. . ......................................................................................................

05

3. Outlook for FY3/22 results..................... ......................................................................................................

08■Progress of the medium-term management plan----------------------------------------------------------------------- 10
1. Medium-term management plan NEXT 1800...............................................................................................

10

2. Update on progress with fundamental policies. ...........................................................................................

12■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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html█ Summary
Aiming for further growth with realization of a decarbonized society
and heightened supply chain risk as tailwinds
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, which are its mainstay fields. 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 and materials for manufacturers’ production lines and then procures the products made by thesemanufacturers. In recent years, it has been focusing on the engineering business and global SCM solutions.
1. Steep rise in 1H FY3/22 profit driven by sharply higher orders in factory automation and industrial
equipment fields
The Company booked robust 1H FY3/22 (Apr-Sep 2021) consolidated results at ¥70,978mn in net sales (+14.8%
YoY) and ¥2,108mn in operating profit (+134.2%). Net sales increased at a double-digit pace and profit doubled.
These results beat period-start guidance (¥66,500mn in net sales, ¥1,620mn in operating profit). Vibrant capital
investments are continuing in China mainly in solar panel and EV-related areas. Main drivers of the strong results
were increased demand in electrical machinery and electronic parts related to factory automation and industrial
equipment. The Company switched to use of net value that removes paid-for supplied products from net sales due
to a change in accounting standards from FY3/22, and this reduced net sales by ¥7,601mn. Net sales were up by
27.1% in a comparison applying the previous standard. Furthermore, orders value climbed sharply by 60.6% YoY to¥95,625mn due to an increase in accelerated orders placement as a response to impact on production of shortages
in supply of semiconductors and other parts and materials, and orders backlog expanded 136.7% to ¥52,211mn
and reached about 2.5 times the normal level.
2. Expecting net sales and operating profit to set all-time highs for the first time in four years in FY3/22
The Company expects FY3/22 consolidated results to set all-time highs for the first time in four years at ¥148,700mn
in net sales (+10.3% YoY; though +22.3% to ¥164,885mn using the previous accounting standard) and ¥4,200mn inoperating profit (+95.1%). This seems to be a conservative plan that discounts for trends in the COVID-19 pandemic,
impact of China’s electricity shortages on production activities and capital investments, and other risks. Orders from
China, however, remained upbeat in October. Despite the possibility of temporary slowdown in orders value because
the Company is already receiving orders deals with a delivery period a year later, FISCO projects continued sales
expansion in 2H and full-year earnings that exceed guidance.

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Summary

3. Tailwinds from expansion of capital investments aimed at realizing a decarbonized society andheightened supply-chain risk
Looking at the progress made for NEXT 1800, which is the three-year medium-term management plan started
in FY3/20, the numerical results are being impacted by COVID-19, so it is highly likely that the FY3/22 numericaltargets (net sales of ¥180bn and ordinary profit of ¥5bn) will not be achieved. However, the Company has started
seeing manifestation of concrete results from new challenges for the great recovery in FY3/22 that it advocated,
including to “overcome COVID-19 and acquire share of the ‘new normal’ market,” “build a strategy that utilizes
DX and complete its implementation system,” and “output reliable results through deepening existing businesses,
developing new businesses, and reviewing the business portfolio,” Considering the prospect of sustained expansionof capital investments related to energy savings and clean energy over the medium term amid global advances
in initiatives seeking realization of a decarbonized society, the Company should continue to receive tailwinds from
FY3/23 as a supplier of related goods. Additionally, inquiries are increasing in the global SCM solutions business,
which is one of the Company’s focus businesses, due to heightened supply chain risk caused by recent shortages
in parts and materials, and this is an excellent opportunity to substantially grow the business.
Key Points
Posted higher sales and profits exceeding the initial forecast in 1H FY3/22 driven by expansion of factory
automation and industrial equipment-related orders mainly from China• Upbeat Chinese orders momentum continued in October, FY3/22 results have room to exceed the upwardrevised guidance• Plans to pay a ¥34 per share dividend in FY3/22 on par with the previous fiscal year, announced a sharebuyback program too•

Results trends（¥mn）

Net sales (left)

Operating profit (right)

（¥mn）

5,000

200,000
4,200

4,135
160,000

4,000

3,410

3,000

120,000
2,152
80,0001,846
146,759

145,410

137,943

134,769

148,700

2,000
1,000

40,00000
FY3/18

FY3/19FY3/20FY3/21

FY3/22 (E)Source: Prepared by FISCO from the Company’s financial results

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02 20

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

SUN-WA TECHNOS CORPORATION

14-Jan.-2022

8137 Tokyo Stock Exchange First Section

https://www.sunwa.co.jp/en/ir/index.html█ Results trends
Posted higher sales and profits exceeding the initial forecast in 1H
FY3/22 driven by expansion of factory automation and industrial
equipment-related orders mainly from China
1. 1H FY3/22 results overview
The Company booked robust 1H FY3/22 consolidated results at ¥70,978mn in net sales (+14.8% YoY), ¥2,108mn
in operating profit (+134.2%), ¥2,195mn in ordinary profit (+115.0%), and ¥1,551mn in net profit attributable toowners of the parent (+119.7%). These results beat initial forecast. In FY3/21, despite a slump in net sales due to
COVID-19 pandemic impact, capital investments recovered mainly in China from 2H, and this momentum continued
during 1H FY3/22 and lifted results above expectations. Furthermore, orders value climbed sharply by 60.6% YoY to¥95,625mn, including increase in accelerated orders placement as a response to impact on production of shortages
in supply of semiconductors and other parts and materials, and 1H FY3/22 orders backlog expanded 136.7% to¥52,211mn and reached about 2.5 times the normal level.
1H FY3/22 results (consolidated)(¥mn)
1H FY3/21
Result1H FY3/22% of sales

Initial forecast

Result% of sales

YoY

vs. initial
forecast

61,813-

66,50070,978

-

14.8%

6.7%

-

-

-

78,580

-

27.1%

-

Gross profit

6,719

10.9%

-

8,749

12.3%

30.2%

-

Selling, general andadministrative expenses

5,819

9.4%

-

6,640

9.4%

14.1%

-

Operating profit

900

1.5%

1,620

2,108

3.0%

134.2%

30.1%

Ordinary profit

1,020

1.7%

1,635

2,195

3.1%

115.0%

34.3%

705

1.1%

1,055

1,551

2.2%

119.7%

47.0%

Orders received

59,536

96.3%-

95,625134.7%

60.6%-

Orders backlog

22,062--

52,211-136.7%-Net sales(Previous standard)

Profit attributable toowners of parent

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

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03 20

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

14-Jan.-2022
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
95,625100,000
80,00073,151 73,246
78,45967,60870,33572,956
72,16470,69770,97868,583 61,813
67,65259,53652,21160,00040,00028,59526,09026,04624,33822,0622H

1H27,56420,00001H

2H
FY3/191H
FY3/202H
FY3/21

1H
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 ¥7,601mn
compared to the previous standard. Net sales were up by 27.1% to ¥78,580mn in a comparison applying theprevious standard and set an all-time high for the first time in three years as 1H.
*	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 automotive electronic equipment business (Electronics Department).

Profit increase drivers in ordinary profit were ¥998mn from a rise in gross profit related to higher sales and ¥1,033mn
from increase in gross profit linked to improvement in gross profit margin. These gains more than offset an ¥821mn
increase in SG&A expenses and ¥35mn setback in non-operating income. While gross margin climbed from 10.9%in the previous fiscal year to 12.3%, it also had a real-basis 0.2ppt increase to 11.1% when viewed in terms of theformer accounting standard. Primary sources of higher SG&A expenses were a rise in personnel costs, mainly frombonuses, and impact of expanded logistics volume in packaging and transportation costs. Even though freightrates moved upward, the Company absorbed the increase through efforts to curtail logistics costs per item using
the Warehouse Management System (WMS)* and volume effect. The SG&A expenses ratio is flat YoY at 9.4%, but
improved by 1.0ppt to 8.4% using the previous accounting standard. Non-operating income weakened mainly
because of an increase in foreign exchange losses from ¥27mn in the previous year to ¥64mn.
*	Warehouse Management System (WMS) refers to a system that supports improved efficiency in logistics costs by centrally
controlling cargo, materials, and product inflow/outflow management and inventory management.

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04 20

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

SUN-WA TECHNOS CORPORATION

14-Jan.-2022

8137 Tokyo Stock Exchange First Section

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

Results trends

Gross margin and SG&A expenses rtio
Gross margin
Previous standard (Gross margin)
SG&A expenses ratio
Previous standard (SG&A expenses ratio)

14.0%
12.0%

12.3%
10.3%

10.6%

10.9%

9.0%

9.2%

9.4%

2H

1H

10.3%

11.1%

10.0%

8.0%

9.4%
8.4%

8.6%

6.0%
4.0%
2.0%
0.0%
1H
FY3/202H
FY3/21

1H
FY3/22

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

Asian sales climbed sharply mainly driven by China at the regional
level, factory automation and industrial equipment, semiconductors,
and environment and energy achieved double-digit increases at theindustry level
2. Segment, industry 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 segments
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<6506>. Net sales expanded by 33.3% YoY to ¥14,392mn due to increases in sales by chip mounters andother electrical equipment and control equipment for the industrial machinery industry and electrical machinery
for semiconductor production equipment.
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 13.1% YoY to ¥52,301mn on higher sales of electronic components to the industrial machineryindustry and automotive systems. This value rose 29.5% to ¥59,903mn YoY based on the previous accounting
standard.

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05 20

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Results trends

The main products in the general machinery segment include robots for Yaskawa Electric Corporation, as wellas conveyors and reduction gears. Net sales decreased 10.2% YoY to ¥4,284mn, despite increase in transport
equipment for the semiconductor-related industry, because of decline in sales of facilities equipment to the flat
panel display (FPD) industry that had a major deal in the previous fiscal year.
Net sales by business segments(¥mn)
FY3/20FY3/21

FY3/22

YoY

1H

2H

1H

2H

1H

Electrical machinery

10,565

10,572

10,79312,364

14,392

33.3%

Electronics

52,47053,93046,24956,40852,301

13.1%(Previous standard)

59,903

29.5%

General machinery

4,571

5,833

4,770

4,185

4,284

-10.2%

Total

67,60870,33561,813

72,95670,978

14.8%

Source: Prepared by FISCO from the Company’s financial results(2) Sales trends by industry
Looking at sales trends by industry (parent basis), sales climbed at upbeat paces of 22% YoY to the mainstay
factory automation and industrial equipment industry and 14% to the semiconductor and LCD industry and also
had solid gains of 13% to the environment and energy industry and 7% to the medical equipment and foods
industry. Related goods sales increased thanks to robust capital investments in electric vehicle, solar panel,semiconductor, and other areas.
Meanwhile, sales decreased 23% to the automotive (on-board products) industry due to the change in accounting
standards, 9% to the social infrastructure industry, 41% to the information and communications industry, and
46% to the security industry. Other than the automotive (on-board products) business, however, these areas
have sales ratios of less than 5% and impact on overall sales is modest. Sales to the amusement industry, which
dropped significantly in the previous fiscal year due to the COVID-19 pandemic, were flat amid limited recovery
by the overseas casino market.
Increase-decrease trends in net sales by industry

Source: The Company’s results briefing materials

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Results trends(3) Trends in sales and profits by segment
Japanese business recorded ¥47,340mn in net sales (+6.2% YoY) and ¥1,187mn in operating profit (+150.4%).
While sales increased in electrical equipment, control equipment, and electronic components for the industrial
machinery industry, electrical machinery and transport equipment for the semiconductor-related industry, andelectronic components for the automotive (on-board products) industry, sales of facilities equipment to the FPDrelated industry declined. Net sales under the previous standard increased 23.2% to ¥54,941mn.
Asian business booked ¥20,670mn in net sales (+39.6%) and ¥892mn in operating profit (+136.3%). While sales
increased in electrical machinery and electronic components for the industrial machinery industry and electric
products for the semiconductor-related industry, sales of facilities equipment to the FPD-related industry declined.
Chinese sales, which contribute just under 80% to Asian sales, recovered quickly in 2H FY3/21 and have continued
this momentum.
In Europe and the US, net sales increased 32.0% YoY to ¥2,601mn and the operating profit decreased 18.4%
YoY to ¥13mn. Net sales improved thanks to sales of facilities equipment to mask production lines in the US andEurope, though decline in European profit on weaker sales mix had an impact.
Net sales by region(¥mn)
FY3/20Japan

FY3/21

1H

2H

1H

2H

FY3/22
1H

49,24951,68944,57853,43347,340

6.2%

54,941

23.2%
39.6%

(Previous standard)

YoY

Asia

14,52915,98214,80917,20820,670Europe/US

3,351

2,173

1,970

1,879

2,601

32.0%

Other

477

490

455

435

365

-19.8%

Total

67,60870,33561,813

72,95670,97814.8%

2H

FY3/22
1H

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

Operating profit by region(¥mn)
FY3/201H

FY3/21
2H

1H

YoY

Japan

529

756

474

723

1,187

150.4%

Asia

289

303

377

540

892

136.3%

Europe/US

35

-119

17

-18

13

-18.4%

Other

21

-14

24

-8

9

-62.1%

Total

909

937

900

1,252

2,108

134.2%

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

14-Jan.-2022

8137 Tokyo Stock Exchange First Section

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

Results trends

Upbeat Chinese orders momentum continued in October, FY3/22
results have room to exceed the upward-revised guidance
3. Outlook for FY3/22 results
The Company expects double-digit sales and profit gains in FY3/22 results at ¥148,700mn in net sales (+10.3%
YoY), ¥4,200mn in operating profit (+95.1%), ¥4,340mn in ordinary profit (+69.0%), and ¥3,040mn in net profit
attributable to owners of the parent (+70.2%). This outlook means all-time highs for the first time in four years in
net sales and operating profit. Despite continued uncertainties, including COVID-19 pandemic impact, shortages insupplies of semiconductors and other parts and materials, and impact on production activity caused by electricity
shortages in China, the Company raised guidance from period-start plan levels in light of progress through 1H andanticipated trends in the market environment. Regionally, Chinese sales are outpacing expectations and serving as
the main source of upward revisions.
FY3/22 consolidated results forecast(¥mn)
FY3/21

FY3/22vs. initial
forecast

Initial forecast

Revisedforecasts% of sales-

135,800

148,700

-

10.3%

-

151,300

164,885

-

22.3%

9.0%

2,152

1.6%

3,430

4,200

2.8%

95.1%

22.4%

Ordinary profit

2,567

1.9%

3,500

4,340

2.9%

69.0%

24.0%

Profit attributable toowners of parent

1,786

1.3%

2,250

3,040

2.0%

70.2%

35.1%

Earnings per share (¥)

113.23142.62

192.51Results% of sales

134,769-

Operating profit

Net sales(Previous standard)

YoY

9.5%

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

The Company expects sales decline impact of ¥16,185mn from the change in the accounting standard related toincome recognition from FY3/22 that uses net values that remove automotive (on-board products) paid-for supplied
products from net sales and cost of sales. When compared to the previous standard, the outlook is for net sales
to increase 22.3% YoY to ¥164,885mn. Profit increase drivers in ordinary profit are ¥1,476mn from a rise in grossprofit related to higher sales and ¥2,174mn from increase in gross profit linked to improvement in gross margin.
These gains should more than offset a ¥1,597mn increase in SG&A expenses and ¥280mn setback in non-operating
income.
The Company expects modest decline in gross margin from 12.3% reported in 1H FY3/22 to 12.0% for the full year
(vs. 10.6% in the previous year). This seems to be a conservative stance due to uncertainty in the market environment
because the Company does see notable factors weighing on gross margin in 2H. The SG&A expenses ratio is slated
to decline from 9.4% in 1H FY3/22 to 9.2% for the full year (vs. 9.0% in the previous year), mainly because of sales
increase in 2H. Using the previous accounting standard, the outlook puts gross margin at a 0.2ppt YoY increase to10.8% and the SG&A expenses ratio at a 0.7ppt decline to 8.3%.
Anticipated increase in SG&A expenses reflects higher personnel costs and packaging and transportation costs
and also factors in a rise in business trip costs following the decision to fully lift the ban on business trips in October
2021. Additionally, the telework ratio held at the 70% level under the state of emergency declarations, but dropped
to 20% in October and the Company is strengthening development of new customers and other sales activities.

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Results trends

Orders remained at a high level, mainly from China, in October 2021, and slowdown in China’s economic activity
does not appear to be affecting the Company’s customers at this point. Capital investment appetites continue to berobust at electric vehicle and solar panel manufacturers. Japanese companies with local operations are sustaining
strong orders too. Concerns about impact of shortages of semiconductor and parts/materials on production persist
as seen in recent booking of orders deals with delivery periods of a year and the emergence of consultations about
deliveries two years ahead on an inquiry basis. While orders might exhibit a slower pace at some point considering
these trends, we see a possibility of FY3/22 results exceeding guidance amid extensive orders backlog absent a
major change in the market environment.
Assuming an exchange rate of ¥111.9 to US$1 (¥110 to US$1 in the previous period), overseas net sales (on alocal-corporation basis) will increase 35.2% YoY to ¥48,489mn, and their sales composition ratio will be 32.6%(26.6% in the previous period). The Company expects double-digit sales growth in all regions and continued growthin demand from automotive, semiconductor, and environment and energy industries in China, which contributes
about 68%. Furthermore, it anticipates rising sales of global SCM solutions in other parts of Asia and recovery
in capital investment-related demand on exhaustion of COVID-19 pandemic impact in the US and Europe. The
Company mainly sells products on a USD-denominated basis in overseas business, and the estimated positive
impacts on results from a single yen of depreciation against the USD are roughly ¥500mn on net sales and ¥50mn
on ordinary profit. Also, the fiscal year for all of the 13 overseas subsidiaries ends in December, so these subsidiaries’
October-to-December 2021 results will be reflected in the 4Q FY3/22 consolidated results.

Overseas net sales （on a local-corporation basis）
China
North America（¥mn）

Other Asian countries
Europe60,00048,48950,00040,00030,00041,84232,411
13%

9%
3%

17%

40,101
5%

12%

3%

8%

36,036
13%

21%

19%

35,867
3%

7%

21%

22%

4%

4%

20%

20,00010,000

68%

68%

64%

63%

67%

FY3/18

FY3/19FY3/20FY3/21

66%

0
FY3/17

FY3/22 (E)Source: Prepared by FISCO from the Company’s results briefing materials

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html█ Progress of the medium-term

management plan
Progressing new measures toward a great recovery
1. Medium-term management plan NEXT 1800
(1) Overview of the medium-term management plan
In May 2019, the Company announced NEXT 1800, its three-year medium-term management plan with FY3/22 asits final fiscal year. It has positioned this three-year fiscal year as the fiscal year to build a structure toward realizing“Sun-Wa Vision 2025,”* which is the Company’s long-term management vision. The plan has four fundamental
policies, including “Contributing to customers’ manufacturing by enhancing core businesses,” and it is working
on priority measures based on each of these basic policies.
*	In “Sun-Wa Vision 2025,” the Company calls for “strengthening core businesses to build operations that contribute toadvances in industrial activity in local societies as a total coordinator of production sites and distribution and help in attaining
the goal of ¥250bn in consolidated net sales in FY3/26.”

In the core portion of income growth, the Company hopes to make improvements and achieve further advances
versus Challenge 1500, the previous medium-term management plan, and realize a growth strategy with evenhigher certainty, while also carrying out initiatives for new business creation that lay the groundwork for growth overa longer term as a new initiative. It is also focusing on workstyle reforms to increase productivity through utilizing
ITC in the form of responding to societal changes, on realizing a corporate culture that provides work satisfaction,and on contributing to SDGs (Sustainable Development Goals). Particularly in relation to the utilization of ICT,the Company is being required to respond to the new normal social style during the COVID-19 pandemic. But inthis situation, even by 2019 it had already introduced and completed a working environment ahead of its peers,
including introducing online communication tools, and it rapidly transitioned to a teleworking system without any
decline in work productivity. This has also been a factor behind it achieving an early earnings recovery.
Fundamental policies in NEXT 1800
Contribute to customer production activities by strengthening core businesses★ Strengthen core businesses★ Promote collaboration with business partners to bolster solution proposals
Expand global business capabilities to support market demand★ Strengthen hiring of overseas local employees and organizational capabilities★ Consider establishment of new locations
Pursue new business fields to accelerate sustainable growth★ Strengthen investments in new business creation★ Cultivate managerial personnel by adopting an intrapreneurship program★ Create new value through SCM improvements
Initiatives to realize a sustainable society★ Foster a corporate culture that stimulates interest in work by boosting employee engagement★ Implement work style reforms that “enhance productivity” utilizing ICT★ Conduct initiatives that contribute to SDGs
★ Fulfill corporate social responsibility (promote CSR and compliance)
Source: Prepared by FISCO from the Company’s results briefing materials

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

(2) The NEXT 1800 numerical management targets and taking on new challenges toward a great recovery
The NEXT 1800 numerical management targets achievement for FY3/22, the plan’s final fiscal year, of net salesof ¥180,000mn, operating profit of ¥4,800mn, and ordinary profit of ¥5,000mn. Nevertheless, the Company’s
results missed initial plan goals through FY3/21 due to facing harsh environments after plan formulation, including
downturn in investment sentiment due to ramp-up of trade friction between the US and China and global economic
weakness related to the COVID-19 pandemic. While FY3/22 results are likely to undershoot the initial goals too,profits have almost completely caught up. The Company is implementing the following three points as focus
policies in pursuit of new challenges in the Great Recovery and is achieving some results in FY3/22.
Management goals in the NEXT1800 medium-term plan, results/plan(¥mn)
FY3/20FY3/21

FY3/22

FY3/19Results

TargetResults

TargetResults

TargetPlan

145,410150,000

137,943

165,000

134,769

180,000

148,700

Operating profit

3,410

3,100

1,846

3,800

2,152

4,800

4,200

Ordinary profit

3,627

3,300

2,144

4,000

2,567

5,000

4,340

Ordinary margin

2.5%

2.2%

1.6%

2.4%

1.9%

2.8%

2.9%

Net sales

Source: Prepared by FISCO from the Company’s financial results and materialsa) Overcome COVID-19 and acquire share of the ‘new normal’ market
The new normal market refers to industries and equipment that contribute to realization of a decarbonized society.
Companies are inevitably increasing initiatives in energy savings as part of the effort to reduce CO2 emissions, andthe Company aims to reliably recruit this demand. Key products that it handles are inverters and high-efficiency
motors and facilities equipment that provide energy savings. In the past, companies shied away from more
expensive equipment even if it could support energy savings. However, large companies are now willing toaccept higher costs as a necessary investment from the standpoint of achieving carbon neutrality or contributing
to SDGs. This activity is likely to broaden from large companies to medium-sized companies and in China andother overseas markets. FISCO expects these conditions to deliver tailwinds to the Company with its extensive
offerings of energy-savings equipment.
b) Build a strategy that utilizes DX and complete its implementation system
The Company achieved a smooth shift to remote work operations in the COVID-19 pandemic because it had
already installed an internal online communications tool by 2019 as explained above and managed to curtailgroupwide logistics costs through WMS deployment and operation. As a current initiative, it is working on moving
the in-house server to a data center in order to realize energy savings and strengthen security measures.
c) Output reliable results through deepening existing businesses, developing new businesses, andreviewing the business portfolio
As new business, the Company has projects with reduction of CO 2 emissions as the main theme and is also
addressing local 5G projects. It intends to focus on capturing these projects.

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

Aims to further expand results by recruiting opportunities related torealization of a decarbonized society and heightened supply chainrisk
2. Update on progress with fundamental policies(1) Progress for “contribute to customer production activities by strengthening core businesses”
Among the four fundamental policies set out in the medium-term management plan, the theme of “contribute tocustomer production activities by strengthening core businesses” is the most important within the Company’s
growth strategy. Within this fundamental policy, the Company is focusing especially on the engineering businessand the global SCM solutions business. Both of these businesses still only have annual sales of roughly ¥10bn,
but these are seen as important businesses for realizing sales growth and improved profitability going forward.
The progress made on each business is described below.
a) Engineering business
The engineering business sells to customers what the Company itself combines and systemizes from the products
previously sold individually that are handled in each of the three respective business segments of electricalmachinery, electronics, and general machinery. In other words, the engineering business is not some sort ofseparate, new business, but it is a sales method in the trading company function. The underlying reasons forfocusing on this business include the advancing functions of factory automation equipment such as industrial
robots, and diversification in response to customer demands, which cannot be met by stand-alone sales ofindividual products. The Company’s view is that it will be possible to increase profitability through the added valueof engineering while expanding the scale of orders per project.
Overview of engineering business

Source: The Company’s website

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

Engineering business had about ¥4.2bn in 1H FY3/22 sales, a slight decline versus the previous year due
to COVID-19 pandemic impact. The Company also expects lower full-year sales than the roughly ¥9.5bn in
FY3/21. While sales had been in the ¥12bn range through FY3/20, shift to a sales strategy with emphasis on
profitability and curtailment of sales activities due to the COVID-19 pandemic weighed on results. The Company’sengineering business requires detailed interactions with customers because of its business characteristics. Whileit opened the Tokyo Technology Center in 2020 to attract customers, recruitment was sluggish due to sustained
COVID-19 pandemic conditions. Nevertheless, orders deals are likely to increase as in-person sales activities
pick up. Business opportunity examples are the control panel in substrate drilling equipment and line speed-up
modification for the semiconductor-related industry, assembly line modifications and part transport line projects
in the automotive industry, and inspection equipment upgrades in the papermaking industry. Demand is likely toincrease for installation of automated transport robots as labor-saving measures and energy-saving systems, andprovision of smart factory-related facilities utilizing IoT and local 5G technologies. In particular, FISCO expects
healthy orders expansion opportunity in energy-saving solutions that leverage the Company’s strength as atechnology trading firm as more companies pursue SDGs because of its ability to handle total deployment projects
that involve not just equipment but also LED lighting and other related facilities.

Trend in net sales and gross margin in the engineering businessNet sales (left)
Gross margin (right)
Companywide gross margin (right)

（¥bn）

16.0
14.0

14.3%

13.4%
12.2%

13.1%

13.7%

14.0%

12.0
10.0

12.0%
12.3%

11.5%

11.2%

About
¥12.6bn

About¥12.4bn

8.0
6.0

16.0%

10.5%
About
¥12.0bn

4.0

10.6%

10.0%
8.0%
6.0%

About
¥9.5bn4.0%
About¥4.2bn

2.0
0.0

2.0%
0.0%

FY3/18

FY3/19FY3/20FY3/21

1H FY3/22

Source: Prepared by FISCO from results briefing materials and interview

Engineering business gross margin was just under 14% in 1H FY3/22. While it exceeded the Company’s 12.3%
overall gross margin, it still considerably less than the 25-30% initial goal for this business. This is considered
because there are still few projects proposed to customers that utilize the knowledge and experience that theCompany has acquired in the past, and instead that the majority of projects are in the form of orders from
customers, so it is unable to acquire sufficient compensation for the inherent value-added portion.
The Company’s engineering business has been described by comparing it to curry. That is to say, previously it soldthe meat, vegetables, and rice individually as the ingredients (an agency business). In contrast, the engineeringbusiness tries to use each of these ingredients to make and to sell curry rice, and the work to produce the curryroux and flavor the curry rice is the Company’s expertise and is what provides the value added. However, in thecurrent situation, the Company is not making and providing the curry using its own recipe, but rather it is making
curry each time based on the customers’ preferences, making it difficult to receive compensation for the costs
involved and suppressing the profit margin.

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

The Company switched to a sales policy that emphasizes profitability from FY3/20 to break out this situation.
However, to improve the profit margin even further, the key will be whether it can build a structure to provide
customers with services in which, in some way, the expertise that the Company has accumulated up to the present
time has been standardized. As explained above, the Company is likely to have more opportunities to recruit
customers as demand for overall optimization in system development rises further amid anticipated increasein companies actively working on energy-saving capabilities in pursuit of a decarbonized society. Engineeringbusiness should steadily expand sales and raise profitability if it can deliver services that satisfy customer needs
and offer cost benefits. In particular, if orders increase for large-scale projects that can be expected to be highly
profitable, it is likely that it will have in sight achieving a gross margin of 25-30%. The Company has approximately
50 engineers working in this business, and for the time being the Company’s plan is to expand the business withthis team of engineers.
b) Global SCM solutions business
The global SCM solutions business is rooted in the services that the Company has provided since the distant pastof services such as procurement agent, logistics agent, and delivery management services. The various manufacturing companies that are the Company’s main customers are pursuing efficiency improvements to the samelevel as major companies, and they are conducting streamlining under the name of business structural reforms.
In this process, they have targeted reducing personnel and bases in fields such as global logistics, inventory
management, and materials procurement, so the reality is that they currently have shortages of personnel. The
Company’s global SCM solutions business captures the outsourcing needs that arise due to these shortages. By
consolidating the functions that customer companies have so far procured independently from various suppliers,
such as electronic parts and equipment, into the Company, these customers can enjoy benefits including reduced
procurement costs and shortened lead times.
Using the moving business as an example, conventional procurement agent and logistics agent services just movea person’s items from the former home to the new home. In global SCM solutions business, meanwhile, the service
also extends to setting up televisions and PCs for immediate use after the move and procuring and installing
antennas and Wi-Fi equipment. Engineering business corresponds to selection and procurement of antennas
and Wi-Fi equipment suited to the new area and wiring installation. The move might lead to more business too if
an order is received for landscaping and softscaping work. The Company strengths include the expertise it has
accumulated over its long history as a technologies trading company and its expansive overseas network (28bases around the world). It is aiming to utilize these strengths to respond to customers’ outsourcing needs andto grow the scale of the global SCM solutions business.
Net sales increased by roughly ¥6bn, a double-digit YoY gain in 1H FY3/22. Main drivers were heightened parts/
materials procurement and logistics outsourcing needs and stronger inquiries than in the past for the Company’s
services to stably acquire semiconductors and other parts and materials confronting significant shortages recently.
While the Company raised the FY3/22 sales target from about ¥11.5bn in the initial forecast to roughly ¥12bn, it
is likely to overshoot considering the current orders level.
Specific deals include a move by a broadcasting equipment manufacturer from a Chinese plant to a Vietnameseplant (¥200mn/year) and an SCM project at a US plant for a servo motor manufacturer (¥300mn/year), and deal
opportunities are an SCM project at a Chinese plant by a medical equipment manufacturer (¥240mn/year), a local
procurement initiative for production in Malaysia by a semiconductor inspection equipment manufacturer (¥300mn/
year), an SCM project at a Chinese plant by an industrial processing laser equipment manufacturer (¥100mn/year),and a local procurement initiative for a Philippine plant by a DC motor manufacturer (¥200mn/year).

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14 20

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

Global SCM outsourcing inquiries are likely to increase more than ever before because of efforts to distributeproduction sites aimed at lowering business risk in the COVID-19 pandemic and the growing importance of SCM
functions. Customer companies are also finding that consignment of the SCM system to an external specialty
firm, rather than building it on their own, is more effective at reducing business risk and provides cost benefits.
For the Company, this business expands transaction value with existing customers and is a good opportunity toacquire new customers. In order to strengthen the competitiveness of SCM services, the Company is reviewing
the global logistics infrastructure at the same time as establishing a business division, and is starting improvement
activities. As one part of this, it has begun fully fledged operations of Warehouse Management System (WMS),
and it is aiming to improve profitability by making visible the logistics costs of each project.

Trends in net sales in the global SCM solutions business
（¥bn）
14.0

About
¥12.0bn

12.0

About
¥10.0bn

10.0

About
¥7.3bn

8.0
6.0
4.0

About
¥8.6bnAbout¥9.5bnAbout¥3.8bn2.0
0.0

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22 (E)Source: Prepared by FISCO from the Company’s results briefing materials(2) Progress made in “Expanding global business and supporting market demand”
With this theme, the Company opened a business site in Ho Chi Minh, Vietnam in August 2019 with the aim ofstrengthening sales operations in the country by having two locations. However, it has struggled to recruit newcustomers since 2020 because of needing to conduct remote sales operations due to COVID-19 impact andfocused on sales activities with existing customers. It plans to put emphasis on acquiring new customers as the
pandemic settles down.

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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 First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

In Japan, meanwhile, it has been opening smart sales sites in regional areas since 2019 as a new initiative. While
it previously referred to these locations as “remote assistance sales sites,” it adopted “smart sales site” as theofficial name this time. Smart sales site refers to a small-scale site with only about two sales members. These sites
seek to deepen transactions by bolstering relationships with attractive customers scattered in smaller regional
cities and also recruit new customers. Internal operations without clerical staff are supported by remote branch
offices, which make 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, suchas factory automation and industrial equipment, customers’ requests are diverse and, in many cases, listening towhat 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 was the first smart sales office opened in 2019,
and the Nagaoka Sales Office (Niigata Prefecture) and the Kofu Sales Office (Yamanashi Prefecture), which were
newly opened in FY3/21, the numbers of sales discussions with customers are increasing, which is expected tolead to the growth of transactions in the future.
The Company has three conditions to open a smart sales office: that it opens it at a site exclusively for offices, notalso for housing; that it has two or more sales staff; and that when opening the sales office, the person who wants
to open the office prepares the planning document. At the stage when these three conditions are satisfied, it opens
the smart sales office. The Company opened a sales site in Kanazawa (Ishikawa Prefecture) in October 2021 andplans to open the Kitakyushu sales site (Fukuoka Prefecture) in December 2021 and the Morioka sales site (Iwate
Prefecture) in the first half of 2022. In overseas operations, it launched smart sales sites in Penang (Malaysia) in
January 2021 and in Xiamen (China) in May 2021 with local staff aimed at deepening ties with local Japanesecustomer companies. It is also considering additional sales sites in India and Wuhan and Qingdao in China.
(3) Progress for “pursue new business fields to accelerate sustainable growth”
The Company recognizes that cultivation of management human resources is an important issue for this theme
and is promoting such activities. Training executives is particularly vital. The human resources training systemholds various events, such as “Global Next Leader Training,” “Future Discussions Looking Ahead 100 Years,”and “Vision and Medium-Term Executive Planning Committee,” including an online format. Additionally, in orderto grow the global business, the overseas bases are advancing measures to train and appoint local staff to be
management human resources and to strengthen organizational capabilities.
Currently, because the majority of the customers of the overseas local corporations, which operate 28 bases in 13
countries, are Japanese companies, Japanese employees are involved in their management. However, to realize
further growth, it is considered important to strengthen organizational capabilities even more by appointing local
staff as managers. The number of consolidated employees has grown to approximately 1,000 people, of who,around 400 are foreign (non-Japanese) nationals (of who, around half are Chinese). As it is very costly to recruit
human resources with management skills from outside the Group, the policy is to conduct training within theGroup, and the training of management candidates starts in Japan. If the globalization of management humanresources continues, we at FISCO anticipate that the Company will progress customer acquisition of foreigncompanies, 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. In the Chinese market, capital investments are likely to expand
over the longer term considering the government policy of building semiconductor, electric vehicle, and otherindustries, and recruitment of many attractive local customers in these industries should contribute to sales growth.

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16 20

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management plan

(4) Progress for “Conduct initiatives to realize a sustainable society”
The Company is promoting workstyle reforms utilizing ICT and flexibly supporting telework and other new normal
styles from an SDGs perspective. An internal SDGs-related initiative is establishment of an SDGs ambassador topromote activities that strive to increase awareness of SDGs and encourages individual employees to set individual
goals related to SDGs. At the business level, it is strengthening sales activities for businesses with a clean energy
theme targeting realization of a decarbonized society, such as solar panels and other renewable energy andelectric vehicles and energy-saving business that contributes to lowering CO2 emissions.
(5) Next medium-term management plan
The Company formulated Sunwa Vision 2025, a long-term vision, that sets a goal of ¥250bn in sales in FY3/26.
While the next medium-term management plan slated to begin in FY3/23 should devise strategies for attaining
the long-term vision while taking into account current market trends, the Company might revise the sales goal,
including impact from the change in the accounting standard. Nevertheless, the Company’s earnings are likely
to rise over the longer term as the industries it targets steadily expand capital investments along with economic
growth, albeit exhibiting a cycle of ups and downs along the way. In particular, the Company should receive
tailwinds for business gains considering heightened expectations for energy-savings equipment and high-efficiency
motors, control equipment, inverters, and other products that deliver labor savings driven by the global movement
toward realization of a decarbonized society as a supplier of these products. Additionally, global SCM solutions
business and engineering business support growth prospects.
Average annual growth rates in the 21 years from FY3/00 to FY3/21 were 4.7% in net sales and 4.0% in operating
profit (growth rates for the 18 years through FY3/18, the recent earnings peak, were 6.0% in net sales and8.6% in operating profit). FISCO thinks the Company is capable of accelerating the growth pace if it deepens
existing business, recruits new business, finds new customers including from overseas, and successfully leverages
tailwinds from the market environment through priority measures in the NEXT 1800 plan.
The Company prepared content in the medium-term management plan up to now using ideas from project teams
comprised of talented mid-tier employees put together for that purpose (these activities were also part of employee
education). This time, however, the executive strategy office is formulating the plan and revising operations tocontinue involvement permanently. If the Company assesses and analyzes results versus the medium-term plan
through these efforts and can apply lessons to future improvements, its management capabilities should benefit.

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17 20

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

14-Jan.-2022
https://www.sunwa.co.jp/en/ir/index.html

Progress of the medium-term management planLong-term results trends
Net sales (left)（¥mn）
150,000

Operating profit (right)

（¥mn）
6,000

125,000

5,000

100,000

4,000

75,0003,000

50,0002,000

25,0001,000

0-25,000
FY3/000-1,000

FY3/05

FY3/10FY3/15

FY3/20Source: Prepared by FISCO from the Company’s financial results█ Shareholder return policy
Plans to pay a ¥34 per share dividend in FY3/22 on par with theprevious fiscal year, announced a share buyback program
The Company’s basic policy is to provide returns to shareholders in the form of dividends. Management prioritizes
providing stable, continuous dividends. While the Company does not sharply raise the dividend due to temporary
steep profit expansion, it sustained the dividend at the prior-year level even in the phase of two straight profit declines
from FY3/19. In FY3/22, it intends to pay a ¥34.0 per share dividend (17.7% dividend payout ratio), planning thesame amount as the previous fiscal year. However, it seems that the Company’s policy is to consider increasing thedividend if it appears that results will steadily grow and the dividend payout ratio will fall to a low level.
The Company announced a share buyback program on October 29, 2021, that aims to enhance shareholder returnand capital efficiency and dynamically implement capital policy in response to the management environment. The
program calls for purchases up to 425,000 shares (2.69% of total outstanding share volume (excluding treasury
shares)) or ¥600mn. The purchase period covers from November 1, 2021, to March 31, 2022.

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18 20

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

SUN-WA TECHNOS CORPORATION

14-Jan.-2022

8137 Tokyo Stock Exchange First Section

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

48.0%

40.4%
40.0%

40.0
34.0

34.0

34.0

34.0
32.0%

30.0
30.0

30.0%

20.7%

24.0%

17.7%
20.0

13.5%

16.0%

10.0

8.0%

0.0

0.0%
FY3/18

FY3/19FY3/20FY3/21

FY3/22 (E)Source: Prepared by FISCO from the Company’s financial results

Simplified income statement and main indicators(¥mn)
FY3/18

FY3/19FY3/20FY3/21

FY3/22 2Q

FY3/22 (E)Net sales

146,759

145,410

137,943

134,769

70,978

148,700

YoY

25.9%

-0.9%

-5.1%

-2.3%

14.8%

10.3%

Gross profit

16,883

16,31814,421

14,224

8,749

17,874Gross profit margin
Selling, general and administrative expenses

11.5%

11.2%

10.5%

10.6%

12.3%

12.0%

12,747

12,908

12,574

12,071

6,640

13,668

8.7%

8.9%

9.1%

9.0%

9.4%

9.2%

4,135

3,410

1,846

2,152

2,108

4,200

YoY

37.2%

-17.5%-45.8%

16.5%

134.2%

95.1%

Operating profit margin

2.8%

2.3%

1.3%

1.6%

3.0%

2.8%

4,349

3,627

2,144

2,567

2,195

4,340

35.3%

-16.6%-40.9%

19.7%

115.0%

69.0%

3,085

2,628

1,341

1,786

1,551

3,040

YoY

94.8%

-14.8%-49.0%

33.2%

119.7%

70.2%

EPS (¥)

222.65164.0884.11

113.23

98.23

192.51Dividend (¥)

30.00

34.00

34.00

34.00

17.00

34.00

Selling, general and administrative expenses ratio
Operating profit

Ordinary profit
YoY
Profit attributable to owners of parent

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

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19 20

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

SUN-WA TECHNOS CORPORATION

14-Jan.-2022

8137 Tokyo Stock Exchange First Section

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

Shareholder return policy

Simplified balance sheet(¥mn)
FY3/18

FY3/19FY3/20FY3/21

FY3/22 2Q

Changeamount

65,85264,20962,71364,43073,813

9,383

Cash and deposits

8,596

10,005

12,052

13,113

16,692

3,579

Trade receivables

46,07742,256

39,83842,45344,5662,113

Non-current assets

11,401

9,905

9,024

11,951

12,111

160

3,005

2,861

2,759

2,590

2,552

-38

168

143

193

170

173

3

8,227

6,900

6,072

9,190

9,385

195

Total assets

77,254

74,11471,73876,381

85,924

9,543

Current liabilities

43,077

37,19935,40236,372

46,203

9,831

34,29831,427

29,10829,45535,5296,074

Non-current liabilities

6,182

4,970

4,608

4,978

2,623

-2,355

Total liabilities

49,26042,16940,011

41,35048,827

7,477

9,222

6,705

6,709

7,048

7,317

269

23,731

29,05629,55230,802

32,119

1,317

Current assets

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

Payment obligations

Interest-bearing debt
Shareholders’ equity
Accumulated other comprehensive income

4,262

2,888

2,174

4,228

4,978

750

Total net assets

27,993

31,94431,72635,03037,097

2,067

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

Statements of Cash Flows(¥mn)
FY3/18

FY3/19FY3/20FY3/21

Cash flows from operating activities-2,221

1,636

3,238

1,589

Cash flows from investing activities

29

-153

-200

-141

Cash flows from financing activities

3,962

28

-945

-309

Cash and cash equivalents at end of period

8,112

9,521

11,568

12,629Source: Prepared by FISCO from the Company’s financial results

Management indicators(¥mn)
FY3/18

FY3/19FY3/20FY3/21Equity ratio

36.2%

43.1%

44.2%

45.9%

Interest-bearing debt ratio

32.9%

21.0%

21.1%

20.1%

ROE

12.0%

8.8%

4.2%

5.4%

-626

3,300

5,343

6,065

Net cash

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

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

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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)
Email: support@fisco.co.jp