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

Consolidated Financial Results
for the First Quarter of Fiscal Year Ending March 31, 2020
[Japanese GAAP]
July 31, 2019
Company name: Sanoyas Holdings Corporation
Stock exchange listing: Tokyo Stock Exchange
Code number: 7022
URL: http://www.sanoyas.co.jp/
Representative: Takashi Ueda, President & CEO
Contact: Atsushi Daimon, Executive Officer, General Manager, Finance Department
Phone: +81-6-4803-6171
Email: info@sanoyas.co.jp
Scheduled date of filing quarterly securities report: August 9, 2019
Scheduled date of commencing dividend payments: –Availability of supplementary briefing material on annual financial results: Not available
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2020 (April 1, 2019 toJune 30, 2019)(1) Consolidated Operating Results (Cumulative)(% indicates changes from the previous corresponding period.)
Profit (loss)
Operating profit
Ordinary profit
Net sales
attributable to(loss)(loss)
owners of parent
Three months ended
Million yen% Million yen%
Million yen%
Million yen%
June 30, 201910,776(8.1)(1,081)–(1,086)–(1,092)–June 30, 2018
11,727(2.1)
850 148.6
955 177.8
973
116.0(Note) Comprehensive income: First Quarter of fiscal year ended March 31, 2020: ¥(871) million [–%]First Quarter of fiscal year ended March 31, 2019: ¥1,200million [96.8%]
Basic earnings per
share

Diluted earnings per
share

Three months ended
Yen
Yen
June 30, 2019(33.54)–
June 30, 2018
29.89
29.69
(2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of13,624
June 30, 201964,25914,654
March 31, 201967,110(Reference) Equity: As of June 30, 2019: ¥13,555 million
As of March 31, 2019: ¥14,590 million

Equity ratio
%

21.1
21.7

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Yen

Yen

Yen

Total

Yen

Yen

Fiscal year ended
–
0.00
–
5.00
March 31, 2019
Fiscal year ending–
March 31, 2020
Fiscal year ending
March 31, 2020
–
0.00
–
5.00
(Forecast)(Note) Revision to recently disclosed projected cash dividends: No

5.00

5.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March
31, 2020)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating profit

Ordinary profit(loss)(loss)

Million yen%

Million yen

Profit (loss)
attributable toowners of parent%

Basic earnings
per share

Million yen%

Yen

Full year
48,000 (0.3)
(400)
–
(400)
–
(400)
(Note) Revision to recently disclosed projected consolidated financial results: No–(12.28)* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No(2)Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2019: 32,606,800 shares
March 31, 2019: 32,606,800 shares2) Total number of treasury shares at the end of the period:
June 30, 2019: 20,715 shares
March 31, 2019: 20,715 shares
3) Average number of shares during the period:
Fiscal Year Ended June 30, 2019: 32,586,085 sharesFiscal Year Ended June 30, 2018: 32,579,885 shares* These consolidated financial results are outside the scope of audit* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available
and certain assumptions deemed reasonable. Actual results may differ significantly from these forecasts due to awide range of factors.

1. Qualitative Information(1) Summary of Business Results
In the business environment surrounding the Sanoyas Group, “twin surpluses” of shipping tonnage andshipbuilding capacity continues structurally and in China and Korea, which are our competitors, their governments
support the shipbuilding industry as their policies. The situation is still tough in the Shipbuilding & Engineeringbusiness. The market of bulk carriers has weakened since the beginning of 2019. Although the market has been
showing a moderate recovery trend since April 2019, the level of charter fee has been severe and the newbuilding
shipping price has not recovered yet.
In the Shipbuilding business, new 82,000 DWT type PANAMAX bulk carriers and new 64,000 DWT typeULTRAMAX bulk carriers have been developed. These vessels are applied IMO NOx Tier Ⅲ regulation and
IACS Harmonized Common Structural Rules and further improved fuel consumption. In addition, 41,000 DWT
type HANDY SIZE bulk carriers have been developed newly. This type of vessel with wide beam and shallow
draft has larger cargo hold capacity and applies new regulations. We carry out sales promotion. On the other hand,under the severe shipbuilding market situation, we are also working on adding new item on our menu and receive
building orders of special vessels and working ships following the order of ferries. As to the marine and gas tankbusiness that we have been working on to complement the Shipbuilding business, we established "Gas Tank Sales
Department" and "Gas Tank Design Department" as new dedicated organizations which are independent of theexisting departments on April 1, 2019. Regarding LPG tank business, we decided to manufacture in the Mizushima
Shipyard (Kurashiki City, Okayama Prefecture) which is our main shipyard in addition to the Osaka Shipyard(Osaka City, Osaka Prefecture), and we started to enhance the business.
We had regarded the M & T (Machinery & Technology) business as “second core business” and promoted various
business portfolios. We recognize it is important and urgent issue to make our group business stable andsustainable and we promoted reorganization of the M & T group. Sanoyas Engineering Corporation and DAICHU
CO., LTD. which are mainly engaged in manufacturing and maintenance service of industrial machinery mergedon April 1, 2019. By reorganizing the functional activity in the new company, we have further promoted
improvement of management efficiency and the best allocation of human resources. In addition, Sanoyas
Engineering Corporation is scheduled to merge with Sanoyas Construction Machinery Corporation which ismainly engaged in sales and rental business of construction-use elevator on April 1, 2020. We intend to strengthen
and expand the business structure by pursuing of synergies on sharing their factories. Furthermore, for the aim ofpromoting IT development in our businesses activities, we are going to assign smoothly and effectively systemengineers to our group companies from SANOTEC Corporation which is engaged in software development andcalculation/information processing business on April 1, 2019. At the same time, SANOTEC Corporation andSanoyas Business Partner Corporation merged.

Consolidated net sales in the three months ended June 30, 2019 decreased by ¥950 million (8.1%) over the same
period of the previous fiscal year, to ¥10,776 million. Operating loss was ¥1,081 million (operating profit of thesame period of the previous fiscal year was ¥850 million), ordinary loss was ¥1,086 million (ordinary profit of the1

same period of the previous fiscal year was ¥955 million), and loss attributable to owners of parent was ¥1,092
million (profit attributable to owners of parent of the same period of the previous fiscal year was ¥973 million).

Quarterly results may not necessarily be linked to annual results because these are significantly affected by thefollowings; 1.the nature of order-receiving industry in which Sanoyas group are engaged, especially trends innewbuilding shipping price that are strongly affected by shipping market and presence of new orders, 2.individual
profitability of shipbuilding on the basis of percentage of completion method, and 3.exchange rates at the end ofeach quarter.

(2) Segment Results[1] Shipbuilding & Engineering business
We tried to secure new orders for vessels under the market in which the newbuilding shipping price has not been
recovered, but there were no records of new orders. We delivered 1 vessel of 64,000 DWT type ULTRAMAX bulk
carriers, and the number of backlog of orders has been 15 vessels as of June 30, 2019. We will continue to focus on
the sales with the policy of securing the backlog orders of approximately 2.5 years responding flexibly to themarket trends. As marine business and gas tank business, we focused on sales of repairing services for vessels and
LPG tanks. As a result of the business activities, the segment backlog of orders was ¥ 35,765 million on apercentage of completion method.
The segment net sales in the three months ended June 30, 2019 decreased by ¥650 million (9.0%) over the same
period of the previous fiscal year, to ¥6,618 million. The evaluated net sales of the backlog of shipbuilding orders
on a US dollar basis decreased because the yen strengthened against the US dollar during the first quarter ending
March 31, 2020. The allowance for future loss on construction contracts increased. As a result, the operating loss
was ¥1,177 million (operating profit of the same period of the previous fiscal year was ¥787 million).

[2] M & T (Machinery & Technology) business
Regarding the M & T business, the number of visitors to the amusement park increased due to an increase of
inbound tourists to Japan and the Golden Week holiday for 10 days. As a result, the location business, which
operates and manages amusement parks in Japan, performed well and drove overall sales and profits in the M & T
Group. In addition, being based on brisk of construction works in Tokyo area, steady results were seen in suchsectors as rental of construction-use elevators, works related to air-conditioning, drainage and sanitation facilities.
As a result of the business activities, the segment backlog of orders was ¥8,435 million. The segment net sales inthe three months ended June 30, 2019 decreased by ¥299million (6.7%) over the same period of the previous fiscal
year, to ¥4,158 million. The operating profit increased by ¥56 million (35.1%), to ¥216 million.

(3) Information regarding Consolidated Financial Results Forecasts and other forward-looking statements
We have not updated the consolidated financial results forecast announced in May 2019 at this point as we took
into consideration the nature of the shipbuilding business, amounts of sales and provision for loss on construction2contracts are strongly linked to the individual profitability of shipbuilding affected by exchange rates andshipbuilding market.

3

2. Quarterly Consolidated Financial Statements [Japanese GAAP](1) Quarterly Consolidated Balance Sheets [Japanese GAAP](Million yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 201920,10815,305465

17,093
15,355
561

500
251

500
254

1,117
659
2,725
(21)
41,112

1,708
698
2,183
(31)
38,323

6,175
3,410
4,980
2,193
16,760

6,083
3,144
4,398
2,134
15,760

362
357
31
752

362
340
31
734

6,997
475
247
277
591
(103)
8,485
25,997
67,110

7,187
472
260
309
1,313
(103)
9,441
25,93564,259(Million yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Provision for construction warranties
Provision for loss on construction contracts
Lease obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition right
Total net assets
Total liabilities and net assets

5

As of June 30, 2019

11,950
4,830
3,853
273
4,505
495
167
3,109
165
1,879
31,22912,006
4,730
3,835
64
3,976
241
141
3,238
167
1,267
29,668

12,699
1,222
2,322
4,501
451
28
21,22652,456

12,224
1,191
2,361
4,708
452
27
20,96650,634

2,538
402
8,739
(5)
11,675

2,538
402
7,483
(5)
10,419

3,308
(2)
(169)
(221)
2,915
63
14,654
67,110

3,423
6
(92)
(201)
3,136
69
13,62464,259(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income[Japanese GAAP]
Quarterly Consolidated Statements of Income [Japanese GAAP](Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent

Three Months ended June 30,
2018
11,727
9,591
2,135
1,284
850

Three Months ended June 30,
201910,776
10,548227
1,309(1,081)

3
60

1
72

16

26

87
19
187

–
18
119

66
–
15
82
955
955
38
(56)
(18)
973
973

64
45
14
123
(1,086)(1,086)37(30)
6(1,092)(1,092)

Quarterly Consolidated Statements of Comprehensive Income [Japanese GAAP](Million yen)

Profit (loss)
Other comprehensive loss (income)
Valuation difference on available-for-sale securities
Deferred gain (loss) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Comprehensive loss (income) of affiliates accounted forby the equity method attributable to the Company
Total other comprehensive loss (income)Comprehensive income
Comprehensive income (loss) attributable to
Owners of the parent
Non-controlling interests

Three Months ended June 30,
2018
973

6

Three Months ended June 30,
2019(1,092)

291
(9)
(92)
26

114
9
81
19

10

(4)

226
1,200

220
(871)

1,200
–

(871)
–

(Segment Information)
Ⅰ Three months Ended June 30, 2018 (April 1, 2018 to June 30, 2018)
Information concerning Net sales and Operating profit or loss by Reportable business segment(Million yen)Amount recorded inquarterly
consolidated
statements ofincome( Note 2)

Reportable segment
Shipbuilding &Engineering
Business

Machinery &Technology
Business

Adjustments( Note 1)

Total

Net sales
External sales

7,269

4,457

11,727－

11,727

5

251

256

(256)

－

7,274

4,709

11,983(256)

11,727

787

159

947

(96)

850

Internal sales or transfers
Total
Segment profit (loss)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit or loss of ¥96 million include corporate cost of ¥103 million not allocated to eachreportable segment, allowance for doubtful accounts of ¥(1) million and elimination of inter-segment transaction of ¥(5)
million.
Corporate cost consists of general and administrative expenses which do not belong to the reporting segment.
(Note 2) Segment profit is adjusted with operating profit recorded in the quarterly consolidated statements of income.

Ⅱ Three months Ended June 30, 2019 (April 1, 2019 to June 30, 2019)
Information concerning Net sales and Operating profit or loss by Reportable business segment(Million yen)Amount recorded inquarterly
consolidated
statements ofincome( Note 2)

Reportable segment
Shipbuilding &Engineering
Business

Machinery &Technology
Business

Adjustments( Note 1)

Total

Net sales
External sales
Internal sales or transfers
Total
Segment profit (loss)

6,618

4,158

10,776－

10,776

2

131

134

(134)

－

6,621

4,289

10,911(134)

10,776(1,177)

216

(961)

(120)

(1,081)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit of ¥120 million include corporate cost of ¥126 million not allocated to each reportablesegment, allowance for doubtful accounts of ¥(0) million and elimination of inter-segment transaction of ¥(5) million.
Corporate cost consists of general and administrative expenses which do not belong to the reporting segment.
(Note 2) Segment profit or loss is adjusted with operating loss recorded in the quarterly consolidated statements of income.

7

3. Supplementary information
Status of sales and orders
Segmental sales
Three months ended June 30, 2018 (April
1, 2018 to June 30, 2018)
Segment
Composition ratio(Million yen)（%）
Shipbuilding &
7,269
62.0
Engineering Business

Three months ended June 30, 2019 (April
1, 2019 to June 30, 2019)
Composition ratio(Million yen)
（%）
6,618
61.4

Machinery &Technology Business

4,457

38.0

4,158

38.6

Total

11,727100.0

10,776100.0

Order status and backlog of orders
Three months ended June 30, 2018 (April
1, 2018 to June 30, 2018)
Segment
OrdersBacklog of orders(Million yen)
(Million yen)Three months ended June 30, 2019 (April
1, 2019 to June 30, 2019)
Orders(Million yen)Backlog of orders(Million yen)

Shipbuilding &Engineering Business
Machinery &Technology Business

9,998

41,815

1,470

35,765

3,180

6,784

4,182

8,435

Total

13,17948,6005,652

44,200(Note) The backlog of orders of shipbuilding in the Shipbuilding & Engineering Business as of June 30, 2019 is stated on thepercentage of completion method and the number of backlog of orders is 15 on delivery basis.

8