COMPANY RESEARCH AND ANALYSIS REPORT

SUN-WA TECHNOS CORPORATION
8137
Tokyo Stock Exchange First Section

12-Jan.-2021
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

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. In the 1H FY3/21 results, secured profits on the same level as in the same period in the previous
fiscal year through a recovery for the Chinese market and the effects of cost reductions. ..........................

01

2. The forecasts for FY3/21 are for single-digit declines in sales and profits...................................................

01

3. Status of progress on NEXT1800, the medium-term management plan. .....................................................

02■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. 1H FY3/21 results overview................... ......................................................................................................

03

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

04

3. Outlook for FY3/21 results..................... ......................................................................................................

07■Progress of the medium-term management plan----------------------------------------------------------------------- 09
1. Medium-term management plan NEXT 1800...............................................................................................

09

2. Progress for “contribute to customer production activities by strengthening core businesses”...................

11

3. Progress for “expand global business capabilities to support market demand”. .........................................

15

4. Progress for “pursue new business fields to accelerate sustainable growth”.. .............................................

16

5. Progress for “initiatives to realize a sustainable society”..............................................................................

16

6. Outlook for the automotive business..... ......................................................................................................

17■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

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html█ SummaryIs aiming to speed-up the major strategies set out in the mediumterm management plan and to grow earnings from FY3/22 onwards
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. In the 1H FY3/21 results, secured profits on the same level as in the same period in the previous fiscal
year through a recovery for the Chinese market and the effects of cost reductions
In the 1H FY3/21 (April to September 2020) consolidated results, net sales decreased 8.6% year-on-year (YoY) to¥61,813mn and ordinary income declined 1.5% to ¥1,020mn. Due to the impact of the novel coronavirus pandemic,
the severe market environment continued, including the freezing of capital investment by companies in the manufacturing industry. In this situation, the Company’s sales fell in the automotive industry, mainly for on-board electronicequipment and electronic parts for the amusement industry, so net sales declined for the second consecutive year.
However, orders recovered for the semiconductor and FPD industries and for the Chinese market, while in addition,
the Company as a whole worked to keep down costs. As a result, it was able to secure results on the same level
as in the same period in the previous fiscal year, on a profits basis. In particular, the recovery for China included arecovery of orders for the solar cell industry, and by region, its sales are quickly recovering.
2. The forecasts for FY3/21 are for single-digit declines in sales and profits
For the FY3/21 consolidated results, the Company is forecasting that net sales will decrease 5.8% YoY to¥130,000mn and ordinary income will decline 2.1% to ¥2,100mn, and it has upwardly revised the ordinary income
forecast from that previously announced in July 2020 (net sales of ¥130,000mn and ordinary income of ¥1,400mn).
Current ordering conditions are improving, as in addition to the recovery for the semiconductor industry, orders in
China are active for the automotive industry as well. In Japan as well, orders for electronic equipment have returnedto the same level as in the same period in the previous fiscal year. In addition, sales of novel coronavirus-related
products (including a spatial sterilizing and deodorizing device) are strong, and are expected to contribute tens of
millions of yen over the full fiscal year. On the other hand, for costs, the Company intends to work to keep down
costs in the 2H also and does not expect any particular increases. Therefore, as long as corporate activities do not
once again cool down due to the novel coronavirus pandemic, we at FISCO think that it is possible that ordinary
income will exceed its forecast.

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01 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Summary

3. Status of progress on NEXT1800, the medium-term management plan
Looking at the status of progress of NEXT 1800, which is the three-year medium-term management plan started in
FY3/20, we see that the numerical results are lagging behind the initial forecasts, mainly due to the deterioration of
the market environment. Therefore, it seems that the FY3/22 numerical targets (net sales of ¥180bn and ordinary
income of ¥5bn) will be revised in the future. However, there is a sense that progress is being made for the priority
measures set out as the fundamental policies, and going forward, it is thought that growth will acquire momentum
from FY3/22 onwards as the Company aims to further speed-up these measures. Among the priority measures, tostrengthen the engineering business in order to improve profitability, it is aiming to further improve the profit margin
by acquiring orders for large-scale projects, while to strengthen the global SCM solutions business in order toincrease scale, it intends to acquire and to deepen transactions with new customers. Also, the micro sales office,*
which was started on a trial basis in Japan from 2019 as a new measure, has been highly evaluated by customers
and it has been confirmed that there are no problems with it in terms of profitability. Therefore, the Company plansto actively open these offices in the future. In FY3/21, two new offices will be newly established in Nagaoka andKofu, and one in Kanazawa (currently under consideration). Going forward as well, it intends to establish offices
in areas where it has few sales staff, such as the Tohoku area. The Company has many excellent customers insmall- and medium-sized regional cities, and will build strong relations with these customers by establishing sales
offices nearby. Online sales consultations are becoming widespread due to the novel coronavirus pandemic, but
in the B-to-B market to which the Company belongs, face-to-face sales remain important. Its strategy is to growsales by training human resources while increasing the number of micro sales offices.
*	A micro sales office refers to a sales office with a few sales staff supported by clerical-work staff in remote locations. In
July 2019, the Company opened the Shikoku Sales Office (Ehime) on a trial basis.

Key Points
In the 1H FY3/21 results, profits were secured at the same level as in the same period in the previous fiscal year,
due to the recovery for the Chinese market and the effects of cost reductions• Results for China were strong, while results recovered for the automotive (on-board products) industry in Japan
as well, and there is room for the FY3/21 results to slightly exceed the forecasts on a profits basis• Intends to deepen sales by establishing micro sales offices in small- and medium-sized regional cities andbuilding “a new closeness” with excellent customers•

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02 18

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

SUN-WA TECHNOS CORPORATION

12-Jan.-2021

8137 Tokyo Stock Exchange First Section

http://www.sunwa.co.jp/en/index.html

Summary

Results trends（¥ｍｎ）

Net sales (left)

Operating income (right)

200,000

（¥ｍｎ）
5,000

4,135

160,000

4,000

3,410
3,014

120,000

3,000

80,000146,759

1,846

1,800

137,943

130,000

FY3/20FY3/21 (E)145,4102,000

116,61140,000

0

1,000

0

FY3/17

FY3/18

FY3/19Source: Prepared by FISCO from the Company’s financial results█ Results trends
In the 1H FY3/21 results, profits were secured at the same level as in
the same period in the previous fiscal year, due to the recovery for
the Chinese market and the effects of cost reductions
1. 1H FY3/21 results overview
In the 1H FY3/21 consolidated results, net sales decreased 8.6% YoY to ¥61,813mn, operating income declined
1.0% to ¥900mn, ordinary income fell 1.5% to ¥1,020mn, and net income attributable to owners of the parent
increased 2.4% to ¥705mn. Economic activities were stagnant due to the impact of the novel coronavirus pandemic,
and movements could be seen in the factory automation and industrial equipment market environments, which
are the Company’s mainstay markets, including movements in companies in the manufacturing industry to reduce
operations at factories and to postpone capital investment. The Company’s result can be highly evaluated because
it exceeded its forecasts on a profits basis despite the severe environment.

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03 18

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

SUN-WA TECHNOS CORPORATION

12-Jan.-2021

8137 Tokyo Stock Exchange First Section

http://www.sunwa.co.jp/en/index.html

Results trends

1H FY3/21 results (consolidated)(¥mn)
1H FY3/20
Results

1H FY3/21% of sales

Initialforecast

Revisedforecast(July 2020)

Results% of sales

YoY

vs. initial
forecast

Net sales

67,608-70,00062,00061,813--8.6%-11.7%

Gross profit

6,984

10.3%

-

-

6,719

10.9%

-3.8%

-

SG&A expenses

6,075

9.0%

-

-

5,819

9.4%

-4.2%

-

Operating income

909

1.3%

750

500

900

1.5%

-1.0%

20.0%

Ordinary income

1,036

1.5%

800

650

1,020

1.7%

-1.5%

27.5%

689

1.0%

500

400

705

1.1%

2.4%

41.0%

Net income attributableto owners of the parent

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

Although orders recovered for the semiconductor and FPD industries and for the solar cell industry in China, andorders also increased for investment in plant automation using robots and for novel coronavirus-related products,
sales fell for on-board electronic equipment and for electronic parts for the amusement industry in Japan andoverseas, leading to a decrease in net sales. However, due to factors such as the changes to the sales composition
ratio, including the decline in sales of on-board electronic equipment that have a relatively low profit margin, and theimproved profitability of the engineering business, which is a field in which the Company is strengthening, the grossmargin rose 0.6 of a percentage point (pp) YoY to 10.9%, while gross profit decreased by only 3.8%.
SG&A expenses decreased 4.2% YoY. Due to the impact of the novel coronavirus pandemic, the teleworking raterose to around 80% in April and May, so transportation expenses, including overseas business trip expenses,
declined. Advertising and publicity expenses also declined due to the cancellations of various exhibitions. In addition,
the efforts in the Company as a whole to reduce costs were a main factor behind the decrease. In particular, forteleworking, as parts of its series of workstyles reforms that it has worked on for the last two years, the Company
has completed investment in establishing a structure by, for instance, introducing online tools, so it was able tosmoothly transition to teleworking, which lead to an improvement in work efficiency. Because the effects of these
reductions in SG&A expenses absorbed the part that gross profit decreased, operating income was secured at thesame level as in the same period in the previous fiscal year.
Looking at the factors that caused deviations from the initial Company forecasts, net sales were 11.7% below
forecast, mainly because sales of on-board electronic equipment and sales for the amusement industry fell morethan expected. However, operating income was 20% higher than forecast, due in part to the effects of the reductions
in SG&A expenses and the improvements to work efficiency.

Looking at each region, China is recovering quickly, while byindustry, sales to the semiconductor and FPD industries are
increasing
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 income as segment information by region, and discloses the sales composition ratio by industry andtrend fluctuations as reference information.

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04 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Results trends(1) Trends in net sales by business segments
Net sales by business segments(¥mn)
FY3/19FY3/20FY3/21

1H

YoY

2H

YoY

1H

YoY

2H

YoY

1H

Electrical machinery

13,332

7.6%

11,237-24.0%

10,565-20.8%

10,572-5.9%

10,793

YoY
2.2%

Electronics

53,553

6.4%

55,817-7.1%

52,470-2.0%

53,930-3.4%

46,249-11.9%

General machinery

5,278

14.3%

6,192

36.5%

4,571

-13.4%

5,833

-5.8%

4,770

4.3%

Total

72,164

7.2%

73,246-7.8%

67,608-6.3%

70,335-4.0%

61,813-8.6%

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

The main products in the electrical machinery segment include servo motors, motion controllers, programmablecontrollers, inverters, and power conditioners. Although sales decreased for the environment / energy industry,sales of electrical machinery parts for the industrial machinery industry increased in Japan and in China, and forthe information / communications industry in Japan. As a result, net sales increased for the first time in two fiscal
periods, up 2.2% YoY to ¥10,793mn.
The main products in the electronics segment are wide ranging, including general electronics parts such as
capacitors, connectors, relays and switches, as well as fan motors, stepping motors, LEDs, power supplies, andheat sinks. Due to the impact of the novel coronavirus pandemic, sales for the automotive (on-board products)
industry in Japan fell greatly, while sales declined similarly significantly for the amusement industry in Japan andthe United States. Therefore, net sales decreased 11.9% YoY to ¥46,249mn.
The main products in the general machinery segment include robots for Yaskawa Electric <6506>, as well as
conveyors and reduction gears. Sales declined of equipment for the industrial machinery industry in Japan, but
increased of equipment for the FPD industry in Japan and Taiwan. Therefore, net sales increased for the first timein two fiscal periods, rising 4.3% YoY to ¥4,770mn.
(2) Trends in sales composition ratio by industry and sales increase/decrease
Table of sales composition ratio and increase/decrease by industry (non-consolidated)
Customers (industry)

1H FY3/19

1H FY3/20% of sales

YoY% of sales

Factory automation/industrial
equipment

41.5%

•

Automotive (on-board products)

16.7%

•

Semiconductors/LCDs

10.3%

Social infrastructure

3.6%

Information/communications

1H FY3/21
YoY% of sales

36.6%

×

38.2%

-

22.8%

•

20.4%

×

•

9.3%

×

10.7%

•

•

3.6%

×

3.6%

×

3.0%

×

2.4%

×

2.2%

×

Amusement

3.8%

•

3.7%

×

1.7%

×

Medical equipment

1.3%

•

1.7%

•

1.6%

×

Environment/energy

1.1%

×

1.5%

•

1.2%

×

Food

0.5%

•

0.1%

×

0.4%

•

Security

0.3%

•

0.2%

×

0.1%

×

Other

17.9%

•

18.1%

-

19.9%

-

Total

100.0%

100.0%

100.0%

Note: • indicates an increase, × a decrease, and - unchanged.
Source: Prepared by FISCO from the Company’s results briefing materials

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05 18

YoY

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Results trends

Looking at the top ranking of sales distribution by industry, the ratio for the mainstay factory automation andindustrial equipment industry rose from 36.6% in the same period in the previous fiscal year to 38.2%, while net
sales were basically unchanged YoY. The main factors were that in China, capital investment-related demand
recovered quickly, and also in Japan, orders for robotization investment continued to be strong. Orders also
continue to be strong for the semiconductor and FPD industries in Japan and China, increasing by a single-digit
YoY. In addition, sales grew for the food industry.
Conversely, the sales composition ratio of the automotive (on-board products) industry decreased from 22.8%
in the same period in the previous fiscal year to 20.4%, and net sales declined by nearly 20%, mainly because of
production adjustments implemented by customers. However, the operating rate has been slowly rising since the2Q, and as of October, it had recovered to the same level as in the same period in the previous fiscal year. While
the amusement industry’s sales composition ratio is low, it seems that its net sales declined by more than 50% YoY.
Estimating from the sales composition ratios, it can be provisionally calculated that around half of the decrease insales was for the automotive (on-board products) industry and approximately 20% for the amusement industry.
(3) Trends in net sales and profits by region
Net sales and operating income by region(¥mn)
FY3/19FY3/20FY3/21

1H

2H

1H

2H

1H

YoY

Japan

57,65358,34053,88956,44649,445

-8.2%

Asia

18,646

18,542

16,243

18,211

16,7883.4%

Europe/US

4,204

3,880

3,746

2,652

2,435

-35.0%-46.6%Net sales by segment

791

942

899

497

480

Adjustment amount-9,131-8,458-7,170-7,471-7,336-

Total

72,16473,246

67,60870,33561,813

-8.6%

Japan

1,065

874

529

756

474

-10.5%

Asia

778

430

289

303

377

30.7%

Europe/US

275

-21

35

-119

17

-51.5%

Other

9

-6

21

-14

24

13.8%

Adjustment amount

0

4

33

13

6

-

2,129

1,281

909

937

900

-1.0%

Other

Operating income by segment

Total

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

In Japan, net sales declined 8.2% YoY to ¥49,445mn and operating income decreased 10.5% to ¥474mn, so thedeclines in sales and profits continued. Sales increased of electrical machinery parts for the industrial machineryindustry and the information / communications industry, and of equipment for the FPD industry and the industrial
machinery industry. However, the main reasons for the declines in sales and profits were decreases in sales forelectronic parts for the automotive (on-board products) industry and the amusement industry, and for production
equipment for the industrial machinery industry.
In Asia, net sales increased 3.4% YoY to ¥16,788mn and operating income rose 30.7% to ¥377mn, making it the
only region in which both sales and profits increased. Sales electronic parts for the industrial machinery industry
and the amusement industry both decreased. However, sales increased of electrical machinery parts for theindustrial machinery industry, of electronic parts for the industrial machinery industry and semiconductor industry,and of equipment for the FPD industry. Looking at each country, sales and profits increased for China, which
provides 70% of the region’s sales, due in part to an increase in orders for solar cell manufacturing equipment.

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06 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Results trends

In Europe and the US, net sales decreased 35.0% YoY to ¥2,435mn and operating income declined 51.5% to¥17mn. The US casino market was hit hard by the novel coronavirus pandemic, and sales of electronic parts forthe amusement industry fell significantly.

Sales are strong for China, and are also recovering for the
automotive (on-board products) industry in Japan, so there is room
for the FY3/21 results to slightly exceed the forecasts on a profitsbasis
3. Outlook for FY3/21 results
For the FY3/21 results, the Company is forecasting that net sales will decrease 5.8% YoY to ¥130,000mn, operating
income will decline 2.5% to ¥1,800mn, ordinary income will fall 2.1% to ¥2,100mn, and net income attributable toowners of the parent will increase 4.4% to ¥1,400mn, and it has upwardly revised the forecasts for each profit itemfrom those announced in July 2020. As previously stated, the main factor behind this is the effect of SG&A expenses
being reduced more than expected. There has been no change to a situation in which the future of the economy
is unclear due to the impact of the novel coronavirus pandemic. But including because a medical system is now inplace, it seems unlikely that we will return to the same situation as in April and May, when corporate activities wereseverely restricted.
FY3/21 consolidated results forecast(¥mn)
FY3/20FY3/21Results% of sales

Previous
forecasts(July 2020)

Revisedforecasts(October 2020)% of sales

YoY

Revisionamount2Q rate ofprogress

137,943100.0%

130,000

130,000

100.0%

-5.8%

-

47.5%

Operating income

1,846

1.3%

1,100

1,800

1.4%

-2.5%

700

50.0%

Ordinary income

2,144

1.6%

1,400

2,100

1.6%

-2.1%

700

48.6%

Net income attributableto owners of the parent

1,341

1.0%

900

1,400

1.1%

4.4%

500

50.4%

Net sales

Source: prepared by FISCO from the Company’s financial results and press releases

The expectations for the Company include that orders from the semiconductor industry will continue to recover,that capital investment will increase alongside the automation of factories in the factory automation and industrial
equipment industry, that sales of on-board electronic equipment in Japan will recover in conjunction with therecovery of automotive production, and that orders of novel coronavirus-related products will increase. Therefore,
the outlook is that sales in the 2H will increase by around 10% compared to in the 1H. By region, orders for China
are continuing to trend upward. In addition, the measures in response to the novel coronavirus pandemic that were
thoroughly implemented at the initial-outbreak stage seem to have been successful, and the economy has quickly
returned to a recovery trend. Even within this situation, production has been recovering in the automotive industry
since April and is trending favorably, increasing 14.1% YoY in September, so it would seem that capital-investment
movement has also become more active.

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07 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Results trends

Capital investment in the semiconductor industry is expected to increase by around 10% YoY in fiscal 2020, against
the backdrop of the growth in demand for data centers and 5G, and the Company’s orders are trending at about
the same level. Orders for automotive (on-board products) recovered in September to the same level as in the samemonth in the previous year, and the outlook is that they will also be strong in the 2H. In novel coronavirus-related
products, orders for Aeropure, which is a spatial sterilizing and deodorizing device, are strong to the extent that
there are back orders for it, and it is expected to be a profit-increase factor worth tens of millions of yen over thefull fiscal year.
While net sales in the 2H are expected to increase by around 10% compared to the 1H, the forecast is for operating
income to be the same level as in the 1H. Normally, an increase in sales would result in an increase in operating
income, but due to the uncertainty about the impact of the novel coronavirus pandemic, it seems that the Company
has set conservative forecasts, on a profits basis. However, if net sales trend as forecast, at FISCO we think that it
is highly likely that the results will exceed the forecasts on a profits basis, the same as for the 1H results. In terms of
the outlook for SG&A expense in the 2H, the teleworking rate will be in the vicinity of around 20%, and sales visits
to customers by the other parties are resuming. Therefore, transportation expenses are expected to increase slightly
compared to in the 1H. But the Company has no plans for overseas business trips or to exhibit at exhibitions in the
2H (it will hold online seminars), and its policy is to continue with measures to reduce costs. Therefore, the forecast
is that SG&A expenses will increase only slightly compared to in the 1H.
Assuming an exchange rate of ¥110 to US$1, overseas net sales will decrease 0.9% YoY to ¥40,199mn, and theirsales composition ratio will be 30.9% (29.4% in the previous period). While sales will decrease for North America,
they are expected to increase for China and other Asian countries. In other Asian countries, there are orders forlarge-scale projects in global SCM solutions, so sales are forecast to increase in the 2H. The impact of a strong yen
on the full fiscal year results will be approximately ¥400mn for net sales and around ¥30mn for ordinary income,although the Company enters into exchange contracts to partially hedge the risk of this.

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

50,00047,3842,843

40,000

Other Asian countries
Europe6,160

40,5501,217
5,272

40,199

8,921

9,648

25,141

25,727

FY3/20FY3/21 E

1,608
3,216

9,951
30,00020,00028,43010,0000FY3/19Source: Prepared by FISCO from the Company’s results briefing materials

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08 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html█ Progress of the medium-term

management plan

Is working to speed-up the fundamental policies in the NEXT 1800
medium-term management plan, aiming for growth from FY3/22
onwards
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. The Company’s
medium- to long-term growth strategy is to use this three-year medium-term management plan as a signpost, andto position this as a period to build a management foundation that will allow the company to achieve sustainablegrowth over the medium- to long-term by steadily implementing the plan’s priority measures.
In its long-term management vision “Sun-Wa Vision 2025,” the Company calls for “strengthening core businesses
to build operations that contribute to advances 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.”
Similar to the Company’s previous medium-term management plans, NEXT 1800 is positioned as a three-year
action plan toward the realization of the corporate mission and Sun-Wa Vision 2025.
In NEXT 1800, the Company presents four items as fundamental policies, including “contribute to customer
production activities by strengthening core businesses” and works on priority measures for each of the policies.
We review the details of plan measures later in this report. 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 even higher certainty, while also carrying out initiatives for
new business creation that lay the groundwork for growth over a longer term as a new initiative. Additionally, it
places more emphasis on themes with strong social content, such as work style reforms that enhance productivity
by utilizing ICT in a way that addresses changes in society, achievement of a corporate culture that stimulatesinterest in work, and working on contributions to SDGs (sustainable development goals), than previously.
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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09 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan(2) Numerical management targets in the NEXT 1800 plan
As the numerical management targets in the NEXT 1800 medium-term management plan, as suggested by the titleof this plan, in FY3/22 the Company is aiming to achieve net sales of ¥180,000mn, operating income of ¥4,800mn,
and ordinary income of ¥5,000mn. However, after setting the targets, the market environment has continued to
be severe, due in part to the prolonging of the trade friction between the US and China and the deterioration of
the global economy because of the novel coronavirus pandemic, so the FY3/21 results forecasts have been set
lower than the initial target values (net sales of ¥165,000mn and operating income of ¥3,800mn). Therefore, it isanticipated that the Company will re-evaluate and review the FY3/22 numerical management targets in the future.
Medium-term management plan numerical targets(¥mn)
FY3/20FY3/21

FY3/19Results

TargetResults

TargetForecast

FY3/22
Target145,410150,000

137,943

165,000

130,000

180,000

Operating income

3,410

3,100

1,846

3,800

1,800

4,800

Ordinary income

3,627

3,300

2,144

4,000

2,100

5,000

Ordinary margin

2.5%

2.2%

1.6%

2.4%

1.6%

2.8%

Net sales

Source: Prepared by FISCO from the Company’s results briefing materials

However, the Company’s awareness is that the direction of the four points set out as the fundamental policies is
not incorrect, and it is thought that speeding-up efforts for these priority measures will lead to growth from FY3/22
onwards. In the post-coronavirus era, there is likely to be a recognition that investing in labor saving as a measure
to prevent the infection spreading is an important management issue, while it is also possible that introductionsof industrial robots in the manufacturing industry will accelerate more than in the past. In addition, in the case of
a company introducing industrial robots, it will need to build systems suitable for each respective manufacturingline, which can be understood to be an opportunity for growth for the engineering business, as described below.
Although the market environment has temporarily deteriorated due to the novel coronavirus pandemic, it canbe said that the possibility of seeing the changes as an opportunity and taking advantage of the opportunity torealize growth has increased. From a medium- to long-term perspective, capital investment is expanding alongsideeconomic growth while tracking the positive and negative economic cycles. It seems that the Company’s resultsover the years since FY3/22 have also trended similarly. In terms of the average annual growth rate over the 20
years from FY3/00 to FY3/20, net sales have grown at an average annual rate of 5.1%, while operating income hasgrown at an average annual rate of 3.4%. In the 18-year period up to FY3/18, which represents the most recent
peak in results, net sales grew by an average of 6.0% per year, and operating income grew at an average of 8.6%
per year. In order to achieve sales of ¥250bn, as targeted in the long-term vision for FY3/26, the pace of growth
will have to become faster than before, but at FISCO we believe that if the priority measures in the medium-term
management plan proceed smoothly, there is a good possibility that we may even surpass the average growthrate for the past twenty years.

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10 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

Medium- to long-term results
Net sales (left)（¥mn）

Operating income (right)（¥mn）

150,000

5,000

125,000

4,000

100,000

3,000

75,0002,000

50,0001,000

25,00000-1,000
FY3/00

FY3/05

FY3/10FY3/15

FY3/20Source: Prepared by FISCO from the Company’s financial results

Is aiming to increase the profitability of the engineering businessand to expand the scale of the global SCM solutions business2. 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 growthstrategy. Within this fundamental policy, the Company is focusing especially on the engineering business and theglobal SCM solutions business. Both of these businesses still only have annual sales of roughly ¥10bn, but theseare seen as important businesses for realizing sales growth and improved profitability going forward. The progress
made on each business is described below.
(1) 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 factors in the backgroundto the Company focusing on this business are the progress made in improving the functions of automationequipment, such as industrial robots, and also in response to this, the diversifying needs of customers, and thatin this situation, the Company cannot meet these needs simply by selling individual products as single items, andthat it may be able to increase profitability by providing the added-value of engineering, as well as increasing thescale of individual orders. Therefore, it is possible that the scale of this business will grow at the same time as its
profitability improves.

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11 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

Overview of engineering business

Source: The Company’s website

In the engineering business in 1H FY3/21, although net sales were ¥4.5bn, declining slightly YoY, the gross marginrose from 13.1% in the previous fiscal period to 14.3%. In order-related results, there were orders for conveyors
for the FPD industry and for assembly robots for the industrial machinery industry, while going forward, the outlook
is that orders will increase for projects to introduce industrial robots and to construct labor-saving lines that utilize
IoT. Due to the novel coronavirus pandemic, it is said that while initially the plans were for introductions in thenext three years, there are now some people calling for these plans to be pushed forward. As the situation in theexternal environment is unclear, the stage of making a final decision on implementing investment has not yet beenreached. But if the future becomes clearer, it is thought that similar capital investment projects will increase, which
we at FISCO think will be an excellent opportunity for the engineering business to grow.

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

（¥bn）

15.0

20.0%

About ¥13.5bn
About ¥12.6bn About ¥12.4bn

12.0
12.8%

About ¥12.0bn
14.3%

13.4%
12.2%

13.1%

9.0

16.0%
12.0%

12.2%

11.5%

11.2%

6.0

10.5%

10.9%
About ¥4.5bn

3.0

8.0%

4.0%

0.0

0.0%
FY3/17

FY3/18

FY3/19FY3/20FY3/21
2Q

Source: Prepared by FISCO from the Company’s financial briefing materials and interviews

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12 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

The Company’s gross margin on a company-wide basis is around 10%, but it would likely be above 11% if
excluding electronic parts for the automotive (on-board products) industry. Therefore, the added-value of theengineering business is still no more than around 3%. The Company is targeting a gross margin of 25% to 30%.
It is thought that the main reason that it is below this level is it has few projects that it proposes to customers thatutilize its past knowledge and experience, and instead the majority of projects are simply orders received from
customers. As a result, costs per project, such as the personnel costs for the engineers, are high, and it it does
not sufficiently obtain compensation for the inherent added-value it provides.
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.
Based on this situation, from FY3/20 the Company began to revise the business model for the engineeringbusiness, and it switched to a strategy that focuses on receiving orders with an emphasis on profitability, by turning
down orders for projects that do not utilize its past knowledge. We can see that this type of measure is leading to
an improvement in the gross margin. 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 already stated, in the future, investment inlabor saving will advance in various industries, including the electronic parts assembly and the food industries,
and it is anticipated that opportunities to acquire customers will increase. If the Company can satisfy customer
needs and also provide services in which they can sense cost benefits, then it will become possible to increase
sales for the engineering business while simultaneously improving profitability. In particular, if orders increase forlarge-scale projects that can be expected to be highly profitable, it is likely that it will have in sight achieving agross margin of 25% to 30%. The Company has approximately 50 engineers working in this business, and forthe time being the Company’s plan is to expand the business with this team of engineers.
(2) Global SCM solutions business
The global SCM solutions business is rooted in the services that the Company has provided since the distantpast of services such as procurement agent, logistics agent, and delivery management services. The various
manufacturers that are its main customers have been pursuing efficiency as major companies and progressing
business structural reforms and restructuring. In this process, they have targeted reducing personnel and bases
in areas 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 electronic parts and equipment, etc., which theclient manufacturers had been procuring from various suppliers on their own up until this point, in the Company,
customers can enjoy such benefits as reduced procurement costs and shortened lead times.

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13 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

Using the moving business as an example, conventional procurement agent and logistics agent services justmoving a 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 andinstalling antennas and Wi-Fi equipment. Engineering business corresponds to selection and procurement ofantennas and Wi-Fi equipment suited to the new area and wiring installation. The move might lead to morebusiness too if an order is received for landscaping and softscaping work. The Company is aiming to grow the
global SCM solutions business by utilizing the expertise it has accumulated over its long history as a technology
trading company and its strength of having a wide overseas network (26 bases worldwide).
The outlook for FY3/21 is that net sales will grow, increasing 28% YoY to approximately ¥11bn. The main reasonsfor the higher sales will be the progress made in acquiring new customers and the orders for large-scale projects
from among them. In terms of new projects, the company is receiving orders for overseas export agency workfrom a harness processing manufacturer. In terms of sales strategy, the previous sales style was passive, andconsisted of simply waiting for requests from customers. Yet following the establishment of the global SCM
solutions business division in April 2019, it prioritized increasing sales and actively worked to acquire orders.
However, profitability declined as a result, so it is returning to a sales strategy that prioritizes profits.
Even so, at FISCO we think that global SCM outsourcing will grow in the future. The trade friction between the
United States and China has intensified, and a partial movement has begun of relocating factories from China toSouth East Asia, Latin America, or Japan. But when relocating a factory, building a system from scratch by oneself,such as for local parts procurement, is inefficient, so in fact inquiries to the Company for this are increasing. In
this business, this trend is leading not only to the growth in the scale of transactions with existing customers,
but also to opportunities to acquire 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 eachproject.

Trends in net sales in the global SCM solutions business
（¥bn）
12.0

About ¥11.0bn

10.0

About ¥9.2bn

8.0

About ¥8.6bn

About ¥6.7bn

6.0

4.0

About ¥3.8bn

2.0
0.0
FY3/17

Fy3/18

FY3/19FY3/20FY3/21 E

Source: Prepared by FISCO from the Company’s results briefing materials

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14 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

Is aiming to deepen sales by establishing micro sales offices
in small- and medium-sized regional cities and building a “newcloseness” with excellent customers
3. Progress for “expand global business capabilities to support market demand”
For this theme, in August 2019 the Company established a business base in Ho Chi Minh City, Vietnam, and it
intends to strengthen its sales structure in this country through a two-base structure. However, recently this plan
has been impacted by the novel coronavirus pandemic and no noticeable changes can be seen. Conversely, as a
new measure within Japan, in 2019 it launched a micro sales office on a trial basis that has produced a certain levelof results, so it is working toward the fully fledged deployment of these offices.
The Company’s sales offices consist of several sales staff and several clerical-work staff, but a micro sales officeconsists of only two or three sales staff, while the clerical-work staff provide support from remote locations. Therefore,
it can keep down sales-office related expenses and personnel expenses for the clerical-work staff. Among theCompany’s customers, there are many excellent customers located in small- and medium-sized regional cities,
so the Company is aiming to build closer relations with these customers and to deepen transactions with them by
establishing nearby micro sales offices that will be in contact with them. It also intends for these offices to lead toacquisitions of new customers. During the coronavirus pandemic, cases of online sales discussions are increasing,but in the B-to-B market, there are significant differences between customers’ requests, while relations of trust are
built by directly meeting with and listening to the customer, which in many cases leads to new sales discussions.
In fact, the micro sales office has been highly evaluated by customers of the Shikoku Sales Office, and the positiveeffects of establishing such offices have been confirmed.
The Company has three conditions for opening a micro 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, the micro
sales office can be opened. It has already decided to open offices in Nagaoka (Niigata) and in Kofu (Yamanashi), while
it is currently considering an opening in Kanazawa (Ishikawa, which presently has one staff member and will open
when it has two). The Company has 24 bases in Japan, and of these, 23 are located west of Kanto. In Tohoku, it
has only 1 sales office in Sendai, resulting in a situation where 4 or 5 sales staff cover the entire Tohoku area. There
are many manufacturing-industry factories in Tohoku, and it cannot fully cover them under the current structure.
However, it is expected that opening micro sales offices will advance customer acquisition in regions that it cannot
fully cover. Similarly, the Company currently has no sales base in Hokkaido, so it may open micro sales offices there
in the future. Therefore, sales growth can be expected for the Japanese market in the future through openings of
micro sales offices, and we shall be paying attention to developments going forward.

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15 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management planIs strengthening the training of management human resources toaccelerate sustainable growth
4. Progress for “pursue new business fields to accelerate sustainable growth”
In order to “pursue new business fields to accelerate sustainable growth,” the Company is aware that training
human resources is an important issue, and it is strengthening measures for this. In particular, to train managementhuman resources, it holds training events including the Global Next Leader Training, Discussion Panel Depicting
100 Years in the Future, and the Vision and Medium-term Management Plan Formulation Committee. Additionally,in order to grow the global business, the overseas bases are advancing measures to train and appoint local staff tobe management human resources and to strengthen organizational capabilities.
Currently, because the majority of the customers of the overseas local corporations, which operate 26 bases in 12
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 the Group,and the training of management candidates starts in Japan. If the globalization of management human resources
continues, we at FISCO anticipate that the Company will progress customer acquisition of foreign companies, whichcurrently provide only around 10% of total sales (around 35% in the Chinese market), and that this will lead to thefurther growth of overseas sales.

Is working to realize a sustainable society through workstylereforms that utilize ICT
5. Progress for “initiatives to realize a sustainable society”
For this theme, the Company is working on workstyle reforms through utilizing ICT, and the results of its ICT
investment in 2018 are starting to appear, such as allowing the smooth transition to a teleworking structure. Goingforward also, its policy is to respond flexibly to the post-corona era through workstyle reforms that reflect the newnormal social environment. For SDGs as well, it has started Company-wide measures, including holding study
sessions internally to raise employee awareness.

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16 18

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

SUN-WA TECHNOS CORPORATION
8137 Tokyo Stock Exchange First Section

12-Jan.-2021
http://www.sunwa.co.jp/en/index.html

Progress of the medium-term management plan

In the automotive (on-board products) business in FY3/22, net sales
will decline by slightly less than ¥14bn due to an accounting change,
but this will have no effect on profits
6. Outlook for the automotive business
The business for the automotive industry can be divided into two businesses: the electronic parts business foron-board electronic equipment, and the production equipment business for factories, such as for automotive
manufacturers. Of these, the outlook for the electronic parts business for on-board electronic equipment, which has
grown dramatically in the last few years, is that net sales will decrease by slightly less than ¥14bn in FY3/22. Thisis because for electronic parts, the supplied products from customers were previously recorded in net sales andthe same amount was included in the purchased products account, but due to changes to accounting methods
from FY3/22, supplied products will no longer be recorded in sales. However, this will have no effect on operating
income and overall, it will seemingly lead to an improvement in profitability. On provisionally calculating the FY3/21
results forecasts based on the new standard, compared to the current accounting standard, the gross margin willrise 1.2pp and the operating margin 0.1pp. Previously, the growth in sales of on-board products was a factor thatlowered the profit margin, but this effect will end from FY3/22.
Excluding supplied products, in FY3/21 net sales of electronic parts for on-board products are forecast to decline
for the second consecutive period, falling 12.8% YoY to ¥8,778mn. However as previously stated, recently orders
have recovered to the same level as in the same period in the previous fiscal year. It seems that the main mover willbe the ADAS-related business, but going forward, in relation to automotives, it is expected that further progress
will be made in the transition to electric devices, including the spread of the use of environmentally friendly vehicles
like EV/HEV, and the introduction of automated driving technologies. Therefore, at FISCO we think that the growthtrend will continue in the medium- to long-term. After excluding supplied products, this field has a sales composition
ratio of 8%, ranking it behind only the factory automation and industrial equipment industry and the semiconductorand LCD industry in the sales composition ratios. So in the future, it can be expected to be one of the main fields
supporting the Company’s growth.

Trend in net sales for the automotive industry（¥mn）

Automotive (on-board products)

Supplied products

Automotive (equipment)

28,25630,00025,601
25,00020,89220,00025,681
3,527
3,039

4,303

3,399
14,66615,00011,891

10,000

7,203

5,000

2,830

11,10813,864

8,304

Excluded from
sales
from FY3/22

3,143
1,810

3,995

377 6,938

9,188

10,18910,0638,778

FY3/17

FY3/18

FY3/19FY3/20FY3/21 E

0
FY3/16

Source: Prepared by FISCO from the Company’s results briefing materials

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

17 18

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

SUN-WA TECHNOS CORPORATION

12-Jan.-2021

8137 Tokyo Stock Exchange First Section

http://www.sunwa.co.jp/en/index.html█ Shareholder return policy
Plans for FY3/21 dividend to be ¥34 per share, the same as theprevious year
The Company’s basic policy is to provide returns to shareholders in the form of dividends. Management prioritizes
providing stable, continuous dividends, as demonstrated in its track record to date. While the Company does not
sharply raise dividends in response to temporary rapid profit expansion, it has steadily increased them in keepingwith earnings growth.
Profits continued to decline for two consecutive fiscal periods, in FY3/19 and FY3/20, but the Company still maintained the dividend per share at ¥34.0. For FY3/21 also, it plans to pay a dividend of ¥34.0 (dividend payout ratio,
38.3%), which is unchanged YoY. This indicates the importance it places on continuously paying a stable dividend.

Dividend per share and dividend payout ratio
Dividend (left)（¥）

Dividend payout ratio (right)

50.0

50.0%
40.4%

40.0
34.0

30.0

28.0

20.0

24.6%

30.0

34.0

38.3%

40.0%

34.0

30.0%
20.7%
20.0%

13.5%

10.0

10.0%

0.0

0.0%
FY3/17

FY3/18

FY3/19FY3/20FY3/21 E

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

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

18 18

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
The issuers’ securities, currencies, commodities, securities and other financial instruments
mentioned in this report may increase or decrease in value or lose their value due to influence
from corporate activities, economic policies, world affairs and other factors. This report does
not make any promises regarding any future outcomes. If you use this report or any information
mentioned herein, regardless of the purpose therefor, such use shall be made based on yourjudgment and responsibility, and FISCO shall not be liable for any damage incurred by you asa result of such use, irrespective of the reason.
This report has been prepared at the request of the company subject hereto based on theprovision of information by such company through telephone interviews and the like. However,
the hypotheses, conclusions and all other contents contained herein are based on analysis
by FISCO. The contents of this report are as of the time of the preparation hereof, and are
subject to change without notice. FISCO is not obligated to update this report.
The intellectual property rights, including the copyrights to the main text hereof, the data
and the like, belong to FISCO, and any revision, reprocessing, reproduction, transmission,
distribution or the like of this report and any duplicate hereof without the permission of FISCO
is strictly prohibited.
FISCO and its affiliated companies, as well as the directors, officers and employees thereof,
may currently or in the future trade or hold the financial instruments or the securities of issuersthat are mentioned in this report.
Please use the information in this report upon accepting the above points.

◾ For inquiry, please contact: ◾

FISCO Ltd.
5-11-9 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (Financial information Dept.)
Email: support@fisco.co.jp