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 Second Quarter of Fiscal Year Ending March 31, 2021
[Japanese GAAP]
October 30, 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 & CEO
Contact: Naoya Fukui, General Manager, Accounting Department
Phone: +81-6-4803-6171
Email: info@sanoyas.co.jp
Scheduled date of filing quarterly securities report: November 16, 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 Second Quarter of Fiscal Year Ending March 31, 2021 (April 1, 2020
to September 30, 2020)(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
Six months ended
Million yen% Million yen% Million yen% Million yen%
September 30, 2020
21,710(7.1)(2,234)–(2,104)–(2,134)–September 30, 201923,3763.0(1,608)–(1,495)–(1,505)–(Note) Comprehensive income: Second Quarter of fiscal year ended March 31, 2021: ¥(767) million [–%]
Second Quarter of fiscal year ended March 31, 2020: ¥(1,216)million [–%]
Basic earnings per
share

Six months ended
September 30, 2020
September 30, 2019

Diluted earnings per
share

Yen

Yen

(65.28)(46.20)––(2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of10,773September 30, 2020
61,762
11,660March 31, 2020
63,681(Reference) Equity: As of September 30, 2020: ¥10,675 million
As of March 31, 2020: ¥11,571 million

Equity ratio
%

17.3
18.2

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
5.00
March 31, 2020
Fiscal year ending–
0.00
March 31, 2021
Fiscal year ending
March 31, 2021–––
(Forecast)(Note 1) Revision to recently disclosed projected cash dividends: No(Note 2) Annual dividend for the Fiscal Year Ending March 31, 2021 has not yet been determined.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March
31, 2021)(% 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%

Million yen

Basic earnings
per share%

Yen

Full year
–
–
–
–
–
–
–
–
–
(Note 1) Revision to recently disclosed projected consolidated financial results: No(Note 2) The consolidated earnings forecast for the fiscal year ending March 31, 2021 has not been determinedbecause of the uncertain outlook for the business environment due to the impact of the COVID-19 and otherfactors, and the difficulty to make a proper and reasonable estimate of the impact at this time.
* 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):
September 30, 2020: 32,848,066 shares
March 31, 2020: 32,637,500 shares2) Total number of treasury shares at the end of the period:
September 30, 2020: 20,715 shares
March 31, 2020: 20,715 shares
3) Average number of shares during the period:
Six months ended September 30, 2020: 32,707,027 shares
Six months ended September 30, 2019: 32,586,085 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, our Shipbuilding & Engineering business is stillfacing difficult circumstances reflecting continuous “twin surpluses” of shipping tonnage and shipbuilding capacity,
government subsidies to our competing Chinese and South Korean shipyards and sluggish shipping market caused
by global economic slump.The shipping market for bulk carriers remained weak since the beginning of 2020. In
this situation, business negotiations of shipbuilding have stopped since April 2020. Though some dry bulk shipping
indices are showing an upward trend, time charter rates remain at a low level and the price of new ships has notrecovered yet.
In the Shipbuilding business, we have developed new 82,000 DWT type PANAMAX bulk carriers and new 64,000
DWT type ULTRAMAX bulk carriers. These vessels are in accordance with IMO NOx Tier Ⅲ regulation and
IACS Harmonized Common Structural Rules and further improved fuel consumption. In addition, We have newly
developed 41,000 DWT type HANDY SIZE bulk carriers. This type of vessel with wide beam and shallow draft
has larger cargo hold capacity and applies new regulations. We mainly carry out sales promotion for these vessels.
On the other hand, we are working on diversification of the construction menu by promoting sales of passenger
ferries, special purpose vessels and work vessels, etc. in addition to commercial vessels. As to the gas tankbusiness that we have been working on expanding to complement the Shipbuilding business, we reorganized ourgas tank business structure by placing "Gas Tank Sales Department" and "Gas Tank Design Department" under
newly formed “Gas Tank Business Department” and we have been constructing gas tank production facilities in
the Mizushima Shipyard (Kurashiki City, Okayama Prefecture) in addition to the Osaka Shipyard (Osaka City,
Osaka Prefecture) in the beginning of this fiscal year in order to expand and strengthen our gas tank business.
We regard the Machinery & Technology business as “second core business” and are promoting various businessportfolios. Moreover, we are proceeding reorganization to stabilize the group management by strengthening themanagement base of our subsidiaries. We merged Sanoyas Engineering Corporation which had been merged with
DAICHU CO., LTD in the beginning of last fiscal year and Sanoyas Construction Machinery Corporation which ismainly engaged in sales and rental business of construction-use elevator additionally in the beginning of this fiscal
year. As a result of these mergers, we enhanced the scale of operation and functional organization of the company.
We intend to pursue further synergies by shifting the human resources to strategic fields, enhancement of R&D
investment, joint use of existing factories and so on.

Consolidated net sales in the second quarter ended September 30, 2020 decreased by ¥1,665 million (7.1%) overthe same period of the previous fiscal year, to ¥21,710 million. Operating loss was ¥2,234 million (operating lossof the same period of the previous fiscal year was ¥1,608 million), ordinary loss was ¥2,104 million (ordinary lossof the same period of the previous fiscal year was ¥1,495 million), and quarterly net loss attributable to parent
company shareholder was ¥2,134 million (quarterly net loss attributable to parent company shareholder of thesame period of the previous fiscal year was ¥1,505 million).

1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 newbuilding prices have not been recovered
with unusual economic climate affected by COVID-19, with the result that we received new orders of 2 vessels of
new 82,000 DWT type PANAMAX bulk carriers. The number of backlog of orders was 13 vessels as of September
30, 2020. We will try to get orders flexibly responding to demanding marketing conditions and focus on ourbusiness policy of securing an order backlog for about two years. As to marine business and gas tank business, we
focused on sales of repairing services for vessels of public and private sectors and LPG tanks. As a result, thesegment backlog of orders for shipbuilding business including marine business, gas tank business and plantbusiness was ¥33,227 million on a percentage of completion method.
The segment net sales in the second quarter ended September 30, 2020 decreased by ¥334 million (2.4%) over thesame period of the previous fiscal year, to ¥14,122 million due to slowing down of the building pace of new ships
following current situation on new orders received. The evaluated net sales of the backlog of shipbuilding orders
on a US dollar basis decreased because Japanese Yen has been stronger against the US dollar during the second
quarter ending September 30, 2020. The allowance for future loss on construction contracts including the newly
ordered vessels increased. As a result, the profitability of the vessels deteriorated and the operating loss was ¥1,450
million (operating loss of the same period of the previous fiscal year was ¥2,164 million).

[2] M & T (Machinery & Technology) business
Regarding the Machinery & Technology business, COVID-19 have had a significant impact on its performancecontinuously. Though precision machining for semiconductor manufacturing equipment continued to increase,other businesses have been sluggish owing to decline in sales of mechanical car parking devices and shot blast
machines, construction of air conditioning and water supply/wastewater facilities and rental of construction project
elevators. The amusement park business, which had been severely depressed due to the declaration of state of
emergency and restrictions on overseas travel, and had a negative impact on the performance of Machinery &Technology group, has shown some signs of recovery owing to easing of restrictions, although it is still in difficult
condition. As a result of the business activities, the segment backlog of orders was ¥8,794 million.
The segment net sales in the first quarter ended September 30, 2020 decreased by ¥1,321 million (14.8%) over thesame period of the previous fiscal year, to ¥7,588 million. The operating loss was ¥573 million (operating loss ofthe same period of the previous fiscal year was ¥744 million).

2

(3) Information regarding Consolidated Financial Results Forecasts and other forward-looking statements
The consolidated earnings forecast for the fiscal year ending March 31, 2021 has not been determined because of
the uncertain outlook for the business environment due to the impact of the COVID-19 and other factors, and the
difficulty to make a proper and reasonable estimate of the impact at this time.
Especially, as to operation and management of amusement parks, we are unable to prospect number of visitors
owing to factors such as increase in the number of people infected by COVID-19, although we reopened major
facilities in June 2020 and they are recovering moderately following the lifting of the state of emergency declaredby Japanese Government. In the Shipbuilding & Engineering business and Machinery & Technology business as awhole, business negotiations with customers have been hindered by the influence of spread of COVID-19. We
predict that the orders and sales for the current fiscal year would be affected by these factors.
We will disclose a reasonable forecast as soon as it becomes possible.

32. Quarterly Consolidated Financial Statements [Japanese GAAP](1) Quarterly Consolidated Balance Sheets [Japanese GAAP](Million yen)
As of March 31, 2020
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 September 30, 2020

15,62315,085
535
500
179
1,464
829
3,656
(33)
37,83910,527
16,138
428
－
185
2,303
766
3,015
(30)
33,334

6,310
3,003
5,168
1,883
16,365

6,223
2,918
5,245
2,279
16,667

550
901
39
1,490

1,251
853
40
2,146

5,894
401
231
254
1,346
(143)
7,984
25,841
63,681

7,840
400
220
263
992
(102)
9,613
28,427
61,762

(Million yen)
As of March 31, 2020
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
Provision for removal cost of property andequipment
Lease obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for removal cost of property andequipment
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 September 30, 2020

10,973
5,442
3,665
200
2,696
534
287
2,286

9,352
5,000
3,584
89
2,712
518
273
2,685

90

99

261
1,845
28,284391
1,025
25,732

14,214
1,823
2,181

13,978
2,900
2,721

8

－

5,024
450
33
23,73652,020

5,186
441
27
25,25650,989

2,542
405
6,364
(5)
9,306

2,559
259
4,229
(5)
7,042

2,708
11
(286)
(169)
2,264
89
11,66063,681

4,012
2
(240)
(142)
3,632
97
10,773
61,762

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income[Japanese GAAP]
Quarterly Consolidated Statements of Income [Japanese GAAP](Million yen)
Six Months ended September
30, 2019

Six Months ended September
30, 2020

22,37622,496879
2,488(1,608)21,71021,206504
2,739(2,234)

6
77

5
61

171

57

－
29
285

42
184
351

130
42
173
(1,495)17545
220(2,104)98
98(1,397)103
4108(1,505)(1,505)－－(2,104)51(20)
30(2,134)(2,134)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating 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
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Loss before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Loss
Loss attributable to owners of parent

Quarterly Consolidated Statements of Comprehensive Income [Japanese GAAP](Million yen)Three Months ended September Three Months ended September
30, 2019
30, 2020
Loss
Other comprehensive income loss (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 loss (income) 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

6(1,505)(2,134)

239
(5)
19
39

1,304
(13)
46
27

(3)

4

289
(1,216)

1,367
(767)

(1,216)－(767)－

(3) Quarterly Consolidated Statements of Cash Flows [Japanese GAAP](Million yen)Six months ended
September 30, 2019
Cash flows from operating activities
Loss before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in net defined benefit liability
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for construction
warranties
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Gain on sales of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund
receivable
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Insurance income
Income taxes (paid) refund
Net cash provided by (used in) operating activities

7

Six months ended
September 30, 2020

(1,397)
786
34
264
6
(1)

(2,104)
767
47
162
(43)
(15)

(18)

(13)

21

398

(84)
130
1
(98)

(67)
175
(25)
－

518

(907)

(488)
(962)
(1,277)(1,079)

(786)
(304)
(1,754)
49

479

754

(660)
(3,825)
83
(131)
245
174
(3,453)(633)(4,300)
67
(175)
－
73
(4,334)

(Million yen)Six months ended
September 30, 2019
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Proceeds from cancellation of insurance fund
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

Six months ended
September 30, 2020

(150)
365
(910)
231
(109)
(7)
37
－
－
38
(505)

(142)
142
(361)
68
(81)
(9)
－
500
236
(18)
334

(580)
2,200
(1,585)
(162)
(90)
(218)
(4)
(4,182)
19,323
15,140(442)
1,606(1,926)(163)(182)(1,108)13(5,095)
15,0539,957

(Segment Information)
Ⅰ Six months Ended September 30, 2019 (April 1, 2019 to September 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

Adjustments( Note 1)

Total

Machinery &Technology
Business

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

14,466

8,909

23,376－23,376

64

7

71

(71)

－

14,531

8,916

23,447(71)

23,376(2,164)744(1,420)(188)(1,608)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit or loss of ¥(188) million include corporate cost of ¥(200) million not allocated to eachreportable segment, allowance for doubtful accounts of ¥0 million and elimination of inter-segment transaction of ¥12
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.
(Note 3) Following the transfer of the shares and the business administration of SANOTEC Corporation from Sanoyas MTG
Corporation to Sanoyas Shipbuilding Corporation in January 2020, we transferred SANOTEC Corporation from a part ofMachinery & Technology Business to a part of Shipbuilding & Engineering Business. The segment information for theprevious period is restated to current period presentation.

Ⅱ Six months Ended September 30, 2020 (April 1, 2020 to September 30, 2020)
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)

14,122

7,588

21,710－21,710

85

－

85

(85)

－

14,208

7,588

21,796(85)

21,710(1,450)(573)(2,023)(211)(2,234)(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment loss of ¥(211) million include corporate cost of ¥(230) million not allocated to each reportablesegment, allowance for doubtful accounts of ¥5 million and elimination of inter-segment transaction of ¥14 million.
Corporate cost consists of general and administrative expenses which do not belong to the reporting segment.
(Note 2) Segment loss is adjusted with operating loss recorded in the quarterly consolidated statements of income.

9

(Significant subsequent events)(Sale of investment securities)
We sold a portion of investment securities (1 listed security) held by our consolidated subsidiary.
Accordingly, we will record ¥3,639 million of the gain on sales of investment securities (extraordinary
income) for the third quarter of fiscal year ending March 31, 2021.
3. Supplementary information
Status of sales and orders
Segmental sales
Six months ended September 30, 2019
(April 1, 2019 to September 30, 2019)
Segment
Composition ratio(Million yen)（%）
Shipbuilding &14,466
61.9
Engineering BusinessSix months ended September 30, 2020
(April 1, 2020 to September 30, 2020)
Composition ratio(Million yen)（%）
14,12265.0

Machinery &Technology Business

8,909

38.1

7,588

35.0

Total

23,376100.0

21,710100.0

Order status and backlog of orders
Six months ended September 30, 2020
(April 1, 2019 to June 30, 2019)
Segment
OrdersBacklog of orders(Million yen)
(Million yen)Six months ended September 30, 2020
(April 1, 2020 to September 30, 2020)
Orders(Million yen)Backlog of orders(Million yen)

Shipbuilding &Engineering Business
Machinery &Technology Business

12,731

39,67010,07333,227

7,191

8,142

7,859

8,794

Total

19,92347,813

17,93242,021(Note) The backlog of orders of shipbuilding in the Shipbuilding & Engineering Business as of September 30, 2020 is stated on
the percentage of completion method and the number of backlog of orders is 13 on delivery basis.

10