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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2020
(Based on Japanese GAAP)
November 6, 2020
Company name:Sansha Electric Manufacturing Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

6882
URL https://www.sansha.co.jp
Representative Director, President
Hajimu Yoshimura

Inquiries:

Corporate Planning Department
General Manager

Hiroyuki Maruyama

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 6, 2020
December 2, 2020

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

YesNo

TEL

06-6321-0321(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changesProfit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2020
8,897 (24.9)
13 (92.8)
21 (85.4)(27)–
Six months ended September 30, 201911,8420.5
181 (78.8)
146 (82.5)
110 (83.6)
Earnings per share

Diluted earnings per share

Yen(1.92)
7.79

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen23,425
24,051

As of September 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
18,38918,489Net assets per share%
78.5
76.9

Yen
1,309.07
1,316.15

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––Yen
8.00
5.00

Yen–

Yen
5.00

Yen
13.00

–––

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full year

Millions of yen
21,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
(4.0)
400
55.9
400
64.5
280
–19.931

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2020

14,950,000 shares As of March 31, 2020

14,950,000 shares

Number of treasury shares at the end of the period
As of September 30, 2020

902,122 shares As of March 31, 2020

902,122 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

14,047,878 shares Six months ended September 30, 2019

214,142,878 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,6596,217

5,005
5,407

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,247
2,906

1,065
3,052

Work in process
Raw materials and supplies

709
1,648

867
1,610

247
(24)

263
(24)

17,611

17,247

Buildings and structures, net
Machinery, equipment and vehicles, net

2,220
657

2,105
685

Land
Leased assets, net

2,090
247

2,090
241

180
314

63
300

5,710

5,485

99

68

Other

183

143

Total intangible assets

282

211

Investment securities
Deferred tax assets

35
165

35161

Retirement benefit asset
Other

109
136

156
127

Total investments and other assets

446479Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Total non-current assets
Total assets

36,440

6,177

24,051

23,425

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

2,318

2,139

Electronically recorded obligations - operating
Accounts payable - other177799169
613

Accrued expenses
Income taxes payable

557
106

510
105

Provision for bonuses
Provision for product warranties

362
63

447
47

Provision for loss on order received
Other

24
477

24
332

4,889

4,388

Total current liabilities
Non-current liabilities
Lease obligations

96

82

Directors' retirement benefits payable
Deferred tax liabilities

388
90

388
69

Retirement benefit liability
Other

48
49

49
57

Total non-current liabilities

673

647

5,562

5,035

Shareholders' equity
Share capital

2,774

2,774

Capital surplus
Retained earnings

2,698
13,975

2,698
13,877

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(925)

(925)

18,522

18,425

3
73(2)

(45)

(37)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(33)

(35)

18,48918,38924,051

23,425

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Net sales
Cost of sales

11,842
9,394

8,897
7,064

Gross profit

2,448

1,832

Selling, general and administrative expenses

2,266

1,819

181

13

Interest income
Dividend income

5331

Rental income
Subsidy income

70

710

Gain on valuation of derivatives
Other198–
16

Total non-operating income

4438

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

41Commission expenses
Loss on valuation of derivatives

4––
11

Foreign exchange losses
Other673

14
3

Total non-operating expenses

7930

Ordinary profit

146

21

Profit before income taxes

146

21

Income taxes - current

156

68

Income taxes - deferred

(120)

(19)

Total income taxes

35

48

Profit (loss)

110

(27)

Profit (loss) attributable to owners of parent

110

(27)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2019

September 30, 2020
110

(27)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment0(230)

0(10)Remeasurements of defined benefit plans, net of tax

(21)

7

Total other comprehensive income

(251)

(2)

Comprehensive income

(141)

(29)

Comprehensive income attributable toComprehensive income attributable to owners of parent

(141)

(29)

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2019

September 30, 2020
146

21

Depreciation
Amortization of goodwill

517
31474
31

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

41(8)

(0)
84

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on order received

(1)
(11)

(16)
(0)

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability

(42)
4(35)
0

Interest and dividend income
Interest expenses

(8)
4(4)
1

Decrease (increase) in trade receivables
Decrease (increase) in inventories

149
1,321

1,006(263)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses(1,789)
(151)

(194)
(47)

2(114)

(131)
(105)

Subtotal

91

821Interest and dividends received
Interest paid

8(4)

4(1)

Income taxes paid

(189)

(69)

Net cash provided by (used in) operating activities

(93)

754

(410)

(314)

06

Increase (decrease) in accrued consumption taxes
Other, net

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment andintangible assets
Purchase of intangible assets

(26)

(16)

Net cash provided by (used in) investing activities

(435)

(324)

(100)

–

(64)
(255)

(52)
(70)

(0)

–

Net cash provided by (used in) financing activities

(420)

(123)

Effect of exchange rate change on cash and cash equivalents

(83)

39

Net increase (decrease) in cash and cash equivalents(1,034)345

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from

5,963

4,659

(71)

–

4,857

5,005

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Repayments of lease obligations
Dividends paid
Purchase of treasury sharesaccounting term alterations of subsidiaries
Cash and cash equivalents at end of period7