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 third Quarter of Fiscal Year Ending March 31, 2020
[Japanese GAAP]
January 31, 2020
Company name: Sanoyas Holdings Corporation
Stock exchange listing: Tokyo Stock Exchange
Code number: 7022
URL: http://www.sanoyas.co.jp/
Representative: Takashi Ueda, President
Contact: Atsushi Daimon, General Manager, Finance Department
Phone: +81-6-4803-6171
Email: info@sanoyas.co.jp
Scheduled date of filing quarterly securities report: February 10, 2020
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 Third Quarter of Fiscal Year Ending March 31, 2020 (April 1, 2019 to
December 31, 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
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 201935,353
2.3(1,221)–(1,090)–(392)–
December 31, 201834,558
(3.0)
589
57.9
518
29.3
427
(11.3)(Note) Comprehensive income: Third Quarter of fiscal year ending March 31, 2020: ¥ (178) million [–%]
Third Quarter of fiscal year ended March 31, 2019: ¥89 million [(94.0) %]Basic earnings per
share

Nine months ended
December 31, 2019
December 31, 2018

Diluted earnings per
share

Yen

Yen

(12.06)
13.13

–

13.01

(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
14,33622.1
December 31, 2019
64,491
14,654
21.7
March 31, 201967,110(Reference) Equity: As of December 31, 2019: ¥14,249 million As of March 31, 2019: ¥14,590 million

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

Yen

Yen

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

Total

Yen

Yen

5.00

5.00

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(loss)

Ordinary profit(loss)

Million yen

Million yen%

Profit (loss)
attributable toowners of parent%

Million yen

Basic earnings
per share%

Yen

Full year
48,000 (0.3)(2,900)–(2,800)–(2,500)–(76.72)(Note 1) Revision to recently disclosed projected consolidated financial results: No(Note 2) The exchange rate used for unfixed foreign currency items in assuming the Company’s earnings forecast is
107 yen to the U.S dollar.
* Notes:(1) Changes in significant subsidiaries during the current quarter (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 revision of accounting standards: No
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of issued shares (common shares)
1) Number of issued shares at the end of the period (including treasury shares):
As of December 31, 2019: 32,606,800 shares
As of March 31, 2019: 32,606, 800 shares
2) Number of treasury shares at the end of the period:
As of December 31, 2019: 20,715 shares
As of March 31, 2019: 20,715 shares
3) Average number of outstanding shares during the period:
Nine months ended December 31, 2019: 32,586,085 shares
Nine months ended December 31, 2018: 32,579,885 shares* These quarterly 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.
Actual results may differ significantly from these forecasts due to a wide range of factors.

1. Qualitative Information(1) Summary of Business Results
In the business environment surrounding the Sanoyas Group, “twin surpluses” of shipping tonnage and shipbuilding
capacity continues structurally. The shipping market of bulk carriers has still been in a sluggish trend and newbuilding
shipping price has been stagnant for a long time. At the same time, the shipbuilding industry is undergoing consolidation
and restructuring both domestically and internationally.
In the Shipbuilding business, new 82,000 DWT type PANAMAX bulk carriers and new 64,000 DWT type ULTRAMAX
bulk carriers have been developed. These vessels are applied IMO NOx Tier Ⅲ regulation and IACS HarmonizedCommon 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. At the same time, we are expanding the range of our products
to passenger ferries, special vessels, working ships, etc., and we are working on adding new item on our menu. On
December 3, 2019, we delivered a passenger and car ferry, which was built for the first time in the past about 20 years.
As to the marine and gas tank business that we have been working on to complement the Shipbuilding business, weestablished "Gas Tank Sales Department" and "Gas Tank Design Department" as new dedicated organizations which
are independent of the existing departments on April 1, 2019. Regarding LPG tank business, we decided to manufacturein the Mizushima Shipyard (Kurashiki City, Okayama Prefecture) which is our main shipyard in addition to the Osaka
Shipyard (Osaka City, Osaka Prefecture), and we are constructing the production facilities in Mizushima.
We had regarded the Machinery & Technology business as “second core business” and promoted various businessportfolios. Firstly, Sanoyas Engineering Corporation and DAICHU CO., LTD. which are mainly engaged in
manufacturing and maintenance service of industrial machinery merged on April 1, 2019. In addition, Sanoyas
Engineering Corporation is scheduled to merge with Sanoyas Construction Machinery Corporation which is mainly
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. As for the sales strategy of shot blast machines,
Sanoyas Engineering Corporation signed distributor agreement in Taiwanese markets with Taiwanese and Japanesetrading companies on September 6, 2019 to expand the sales of paint stripping devices "Jig Stripper" to overseas markets.
Secondly, for the aim of promoting IT development in our businesses activities, we are going to assign smoothly andeffectively system engineers to our group companies from SANOTEC Corporation which is engaged in softwaredevelopment and calculation/information processing business on April 1, 2019. At the same time, SANOTEC
Corporation and Sanoyas Business Partner Corporation merged. As a result of the business integration and consolidationof SANOTEC, the majority of the business domain has shifted to shipbuilding-related industries. We decided to transfer
the shares and the business administration of SANOTEC Corporation from Sanoyas MTG Corporation to Sanoyas
Shipbuilding Corporation that was effective on January 1, 2020. Thirdly, we decided to acquire all shares of HappinessElectric Corporation that is a manufacturer of power control boards, power distribution boards, power switch boards,
etc. on December 12, 2019. The company became a wholly-owned subsidiary on January 6, 2020.

Consolidated net sales in the nine months ended December 31, 2019 increased by ¥795 million (2.3%) over the same
period of the previous fiscal year, to ¥35,353 million. Operating loss was ¥1,221 million (operating profit of the same
period of the previous fiscal year was ¥589 million), ordinary loss was ¥1,090 million (ordinary profit of the same periodof the previous fiscal year was ¥518 million), and loss attributable to owners of parent was ¥392 million (profit
attributable to owners of parent of the same period of the previous fiscal year was ¥427 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 of eachquarter.

(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, and we received new orders of 3 vessels of new 82,000 DWT type PANAMAX bulk carriers. In addition,
we delivered 2 vessels of 82,000 DWT type PANAMAX bulk carriers, 2 vessels of 64,000 DWT type ULTRAMAX
bulk carriers, 1 vessel of 60,000 DWT type SUPRAMAX bulk carriers and 1 vessel of passenger and car ferries. The
number of backlog of orders has been 13 vessels as of December 31, 2019.
As marine business and gas tank business, we focused on sales of repairing services for vessels and LPG tanks. As aresult of the business activities, the segment backlog of orders was ¥ 34,996 million on a percentage of completion
method.
The segment net sales in the nine months ended December 31, 2019 increased by ¥629 million (3.1%) over the same
period of the previous fiscal year, to ¥21,094 million. The costs of shipbuilding have remained high due to increasingmaterial and construction costs. In addition, the evaluated net sales of the backlog of shipbuilding orders, including the
newly ordered vessels, on a US dollar basis decreased because the yen has been stronger against the US dollar sinceApril 2019. As a result, the profitability of the vessels deteriorated and the operating loss was ¥2,018 million (operating
loss of the same period of the previous fiscal year was ¥62 million).

[2] Machinery & Technology business
Regarding the Machinery & Technology business, the number of visitors to the amusement park increased due to anincrease of inbound tourists to Japan and favorable weather. As a result, the location business, which operates andmanages amusement parks in Japan, performed well and drove overall sales and profits in the Machinery & Technology
Group. In addition, being based on brisk of construction works in Tokyo area, steady results were seen in such sectors
as sales and rental of construction-use elevators. The cosmetics market continues to expand every year, and sales of
vacuum emulsifiers and stirrers for cosmetics continue to increase. As a result of the business activities, the segment
backlog of orders was ¥7,810 million. The segment net sales in the nine months ended December 31, 2019 decreased

by ¥165 million (1.2%) over the same period of the previous fiscal year, to ¥14,258 million. The operating profit
increased by ¥134 million (15.2%), to ¥1,017 million.

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

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

1

As of December 31, 201920,10815,305465

19,38313,067
761

500
251

500
199

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

1,890
754
2,792
(22)
39,327

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

5,867
3,002
4,254
2,130
15,254

362
357
31
752

401
305
31
738

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

7,016
401
217
317
1,319
(103)
9,170
25,16464,491

(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

2

As of December 31, 2019

11,950
4,830
3,853
273
4,505
495
167
3,109
165
1,879
31,229

11,633
4,249
4,039
65
4,137
146
253
1,967
176
1,337
28,006

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

13,189
1,223
2,435
4,831
450
18
22,14950,155

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

2,538
402
8,183
(5)
11,119

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

3,531
(16)
(221)
(162)
3,130
86
14,33664,491

(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
Commission for syndicate loan
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Total extraordinary income
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent

Nine Months ended December
31, 2018
34,55830,362
4,195
3,606
589

Nine Months ended December
31, 2019
35,35332,9282,424
3,646(1,221)

13
111

9
129

13

205

102
64
305

4
33
382

198

197

102

－

75
376
518

53
251
(1,090)

–
–
–
518
157
(67)
90
427
427

578
296
875
(214)
140
38
178
(392)
(392)

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

Profit(loss)
Other comprehensive income (loss)
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 income (loss) of affiliates accounted forby the equity method attributable to the Company
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income (loss) attributable to
Owners of the parent
Non-controlling interests

Nine Months ended December
31, 2018
427

Nine Months ended December
31, 2019
(392)

(284)
5
(141)
80

222
(15)
(49)
59

0

(1)

(338)
89

214
(178)

89
–

(178)
–

3

(Segment Information)
Ⅰ Nine months Ended December 31, 2018 (April 1, 2018 to December 31, 2018)
Information concerning Net sales and Operating profit or loss by Reportable business segment(Million yen)
Reportable segment
Shipbuilding &Engineering
Business

Machinery &Technology
BusinessAmount recorded inconsolidated
statements of income( Note 2)

Adjustments( Note 1)

Total

Net sales
External sales

20,465

14,092

34,558－34,558

7

720

728

(728)

－

20,473

14,81335,286(728)

34,558

(62)

882

819

(230)

589

Internal sales ortransfers
Total
Segment profit (loss)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit or loss of ¥(230) million include corporate cost of ¥(247) million not allocated to eachreportable segment, allowance for doubtful accounts of ¥0 million and elimination of inter-segment transaction of ¥16 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 profit recorded in the quarterly consolidated statements of income.

Ⅱ Nine months Ended December 31, 2019 (April 1, 2019 to December 31, 2019)
Information concerning Net sales and Operating profit or loss by Reportable business segment(Million yen)Amount recorded inquarterly
consolidated
statements of income( Note 2)

Reportable segment
Shipbuilding &Engineering
Business

Machinery &Technology
Business

Adjustments( Note 1)

Total

Net sales
External sales
Internal sales ortransfers
Total
Segment profit (loss)

21,094

14,25835,353－35,353

4

425

429

(429)

－

21,098

14,68435,783(429)

35,353(2,018)1,017(1,001)(219)(1,221)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit or loss of ¥(219) million include corporate cost of ¥(242) million not allocated to eachreportable segment, allowance for doubtful accounts of ¥2 million and elimination of inter-segment transaction of ¥20 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.

4

Supplementary information
Status of sales and orders
Segmental sales
Segment
Shipbuilding &Engineering Business
Machinery &Technology Business

Total

Nine months ended December 31, 2018
(April 1, 2018 to December 31, 2018)
Composition ratio(Million yen)（％）

Nine months ended December 31, 2019 (April
1, 2019 to December 31, 2019)
Composition ratio(Million yen)（％）

20,46559.2

21,094

59.7

14,09240.8

14,25840.3

34,558100.0

35,353100.0

Order status and backlog of orders
Nine months ended December 31, 2018
(April 1, 2018 to December 31, 2018)
Segment

Shipbuilding &Engineering Business
Machinery &Technology Business

Total

Orders(Million yen)Backlog of orders(Million yen)

Nine months ended December 31, 2019 (April
1, 2019 to December 31, 2019)
Orders(Million yen)Backlog of orders(Million yen)

24,46243,286

14,97834,996

10,140

7,247

10,1697,810

34,60250,53425,14742,806(Note) The backlog of orders of shipbuilding in the Shipbuilding & Engineering Business as of December 31, 2019 is stated on thepercentage of completion method and the number of backlog of orders is 13 on delivery basis.

5