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, 2019
[Japanese GAAP]
July 31, 2018
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: August 10, 2018
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, 2019 (April 1, 2018 toJune 30, 2018)(1) Consolidated Operating Results (Cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2018
11,727(2.1)
850 148.6
955 177.8
973 116.0
June 30, 2017
11,974
(1.3)
342–
343–
450–
(Note) Comprehensive income: First quarter of fiscal year ending March 31, 2019: ¥1,200 million [96.8%]
First quarter of fiscal year ended March 31, 2018: ¥609 million [–%]
Basic earnings pershare

Three months ended
June 30, 2018
June 30, 2017

Diluted earnings pershareYen

Yen

29.89
13.84

29.69
13.80

(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
14,48921.8
June 30, 2018
66,162
13,446
19.8
March 31, 2018
67,635(Reference) Equity: As of June 30, 2018: ¥14,441 million As of March 31, 2018: ¥13,403 million(Note) “Partial Amendments to the Accounting Standard for Tax Effect Accounting” (ASBJ No.28; February 16,2018), etc. have been applied from the beginning of the first quarter of the fiscal year ending March 31, 2019,and results for the fiscal year ended March 31, 2018 are those after retrospective application.

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

Yen

Yen

Total

Yen

Yen

Year ended
–
0.00
–
5.00
March 31, 2018Year ending–
March 31, 2019Year ending
March 31, 2019
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, 2019 (April 1, 2018 to March31, 2019)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating profit

Ordinary profit

Million yen

Million yen%

Profit (loss)
attributable toowners of parent%

Basic earnings
per share

Million yen%

Yen

Full year
46,000 (3.1)(800)–(800)–(800)(Note) Revision to recently disclosed projected consolidated financial results: No–(24.56)* 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 June 30, 2018: 32,600,600 shares
As of March 31, 2018: 32,600, 600 shares
2) Number of treasury shares at the end of the period:
As of June 30, 2018: 20,715 shares
As of March 31, 2018: 20 715 shares
3) Average number of outstanding shares during the period:
Three months ended June 30, 2018: 32,579,885 shares
Three months ended June 30, 2017: 32,578,386 shares* These quarterly consolidated financial results are outside the scope of audit* Explanation of the proper use of financial results forecast and other notes
1) 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.

2) 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 inshipping price that are strongly affected by shipping market and presence of new orders, 2.individual profitabilityof shipbuilding on the basis of percentage of completion method, and 3.exchange rates at the end of each quarter.
3) We have not updated the consolidated financial results forecast announced in May 2018 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 andshipbuilding market.

Quarterly Consolidated Financial Statements [Japanese GAAP](1) Quarterly Consolidated Balance Sheets [Japanese GAAP](Million yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
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

1As of June 30, 2018

23,01914,235–222
1,330
654
3,040
(23)
42,47920,143
15,319
500
238
1,465
794
1,736
(28)
40,169

2,784
4,980
8,228
15,993

3,246
5,004
8,224
16,475

409
426
31
868

390
409
31
831

6,715
538
203
273
662
(98)
8,295
25,156
67,635

7,169
473
198
281
660
(98)
8,685
25,992
66,162

(Million yen)
As of March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Notes payable - facilities
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 noncurrent assets removal cost
Lease obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for noncurrent assets removal cost
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
Subscription rights to shares
Total net assets
Total liabilities and net assets

2

As of June 30, 201811,278
765
4,630
4,231
72
3,757
464
253
5,210
–
95
1,497
32,258

10,546
738
4,180
4,139
65
3,801
235
258
4,158
59
158
1,453
29,795

13,689
1,009
2,373
59
4,309
445
44
21,931
54,18913,285
1,287
2,441
–
4,381
451
30
21,87751,673

2,538
564
7,356
(5)
10,453

2,538
401
8,329
(5)
11,264

3,274
(1)
(31)
(290)
2,950
42
13,446
67,635

3,566
(1)
(123)
(265)
3,176
48
14,48966,162

(2) Quarterly Consolidated Statements of Income [Japanese GAAP](Million yen)Three months ended
June 30, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange profit
OtherTotal non-operating incomeNon-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

3

Three months ended
June 30, 2018

11,974
10,382
1,592
1,250
342

11,727
9,591
2,135
1,284
850

4
54

3
60

24

16

1
25
111

87
19
187

80
29
109
343
343
46(153)
(106)
450
450

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

(Segment Information)
Ⅰ Three months ended June 30, 2017 (April 1, 2017 to June 30, 2017)
Information concerning Net sales and Operating profit or loss by Reportable business segment
Reportable segment
Industrial
Shipbuilding &Machinery &Engineering
ServiceBusinessBusinessAdjustments(Note 1)

TotalLeisureBusiness(Million yen)Amountrecorded inquarterly
consolidated
statements ofincome(Note 2)

Net sales
External sales
Internal sales or transfers
TotalSegment profit (loss)

8,067

2,925

981

11,974－

11,974

3210

－

213

(213)

－

8,070

3,135

981

12,188(213)

11,974384

155(11)527(185)342(Note 1) Details of “Adjustments” are as follows:Adjustments for the segment profit or loss of ¥185 million include corporate cost of ¥191 million not allocated to eachreportable segment, allowance for doubtful accounts of ¥0 million and elimination of inter-segment transaction of ¥(6)
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 Three months ended June 30, 2018 (April 1, 2018 to June 30, 2018)
１ Information concerning Net sales and Operating profit or loss by Reportable business segment
Reportable segment
Shipbuilding &Engineering
Business

Machinery &TechnologyBusinessAdjustments(Note 1)

Total(Million yen)Amount recorded inquarterly
consolidated
statements ofincome(Note 2)

Net sales
External sales
Internal sales or transfers
TotalSegment profit

7,269

4,457

11,727－

11,7275251

256(256)

－

7,274

4,709

11,983(256)

11,727

787

159

947

(96)

850

(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit of ¥96 million include corporate cost of ¥103 million not allocated to each reportablesegment, 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.

4

２ Changes in Reportable segments
During the three months ended June 30, 2018, “Industrial Machinery & Service Business” and “LeisureBusiness” were integrated into “Machinery & Technology Business” as a result of the review of themanagement unit.
Since Sanoyas MTG Corporation was established in April 2018 to supervise "Machinery & Technology
Business", it is difficult to collect information to prepare segment information for the first quarter ended
June 30, 2017 based on the segment classification for the first quarter ended June 30, 2018. Therefore, thefirst quarter ended June 30, 2018 is prepared based on the reportable segments for the first quarter ended
June 30, 2017.
Reportable segment
Industrial
Shipbuilding &Machinery &Engineering
ServiceBusiness
Business

Adjustments(Note 1)

Total

LeisureBusiness(Million yen)Amountrecorded inquarterly
consolidatedstatements ofincome(Note 2)

Net sales
External sales
Internal sales or transfers
TotalSegment profit

7,269

3,414

1,042

11,727－

11,7275267－

272(272)

－

7,274

3,682

1,042

11,999(272)

11,727

787

170

120

1,077

(227)

850

(Note 1) Details of “Adjustments” are as follows:
Adjustments for the segment profit of ¥227 million include corporate cost of ¥234 million not allocated to each reportablesegment, 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.

5Supplementary information
Status of sales and orders
Segmental sales
Segment

Three months ended June 30, 2017 (April 1,2017 to June 30, 2017)(Million yen)

Shipbuilding &Engineering Business
Machinery &Technology Business
Total

Composition ratio (%)

Three months ended June 30, 2018 (April 1,2018 to June 30, 2018)(Million yen)

Composition ratio (%)

8,067

67.4

7,269

62.03,907

32.6

4,457

38.0

11,974100.0

11,727100.0

Order status and backlog of orders
Three months ended June 30, 2017 (April 1,2017 to June 30, 2017)
Segment

Shipbuilding &Engineering Business
Machinery &Technology Business
Total

Orders(Million yen)Backlog of orders(Million yen)Three months ended June 30, 2018 (April 1,2018 to June 30, 2018)
Orders(Million yen)Backlog of orders(Million yen)765

50,8099,998

41,815

3,011

4,220

3,180

6,784

3,777

55,03013,17948,600(Note) The backlog of orders of the shipbuilding in the Shipbuilding & Engineering Business as of June 30, 2018 is stated on thepercentage of completion method and the number of backlog of orders is 17 ships on a delivery basis.

6