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, 2022
(Based on Japanese GAAP)
November 8, 2022
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:

General ManagerCorporate Planning Division

Hiroyuki Maruyama

Operating Officer
Scheduled date to file Quarterly Securities Report:

November 9, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 2, 2022
Yes

Holding of quarterly financial results meeting:

Yes

TEL

06-6321-0321(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2022
Six months ended September 30, 2021

Millions of yen
12,904
10,643

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
21.2
307 (28.1)
252 (41.6)
134 (58.1)
19.6
427–432–321–

Earnings per share

Diluted earnings per share

Yen
10.46
22.86

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
27,87627,146Equity ratio

Millions of yen
20,29819,810Net assets per share
%
72.8
73.0

Yen
1,579.95
1,541.90

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
8.00
8.00

Yen–

Yen
17.00

Yen
25.00

–––

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
26,000
14.7
1,600
21.5
1,600
21.8
1,200
4.6
93.40

14. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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, 2022

14,950,000 shares As of March 31, 2022

14,950,000 shares

Number of treasury shares at the end of the period
As of September 30, 2022

2,102,122 shares As of March 31, 2022

2,102,122 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

12,847,878 shares Six months ended September 30, 2021

2

14,047,878 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

5,026
838

4,665
778

Accounts receivable - trade
Electronically recorded monetary claims - operating

6,364
1,242

6,012
1,667

Merchandise and finished goods
Work in process

2,634
1,591

2,985
1,837

Raw materials and supplies
Other

2,618
562

2,979
673

(59)

(35)

20,81921,566

1,866

1,754

517
2,238

426
2,238

Leased assets, net
Construction in progress

295
79

261
138

Other, net

262

262

5,259

5,082

Goodwill
Other

28114

25113

Total intangible assets

143

138

Investments and other assets
Investment securities

2425

Deferred tax assets
Retirement benefit asset

255
508

283
551

Other

135

229

Total investments and other assets

924

1,089

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land

Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets

3

6,326

6,310

27,14627,876

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

3,470

3,715

Electronically recorded obligations - operating
Accounts payable - other

337
913

306
946

Accrued expenses
Income taxes payable

609
195

624
228

Contract liabilities
Provision for bonuses

388
565

322
595

Provision for product warranties
Provision for loss on orders received

57
40

52
175

Other

326

198

6,905

7,164

Lease liabilities
Directors' retirement benefits payable

101
68

100
68

Deferred tax liabilities
Retirement benefit liability

161
52

131
56

Other48

55

Total current liabilities
Non-current liabilities

Total non-current liabilities

431

412

7,336

7,577

Share capital
Capital surplus

2,774
2,698

2,774
2,698

Retained earnings
Treasury shares

15,226(1,903)

15,142(1,903)

Total shareholders' equity

18,79518,711

5

7901
107

1,476
103

Total liabilities
Net assets
Shareholders' equity

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

1,014

1,587

19,81020,29827,14627,876

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, 2021

September 30, 2022

Net sales
Cost of sales

10,643
8,197

12,904
10,344Gross profit

2,446

2,559

Selling, general and administrative expenses

2,018

2,252427

307

Interest income
Dividend income2160

Rental income
Gain on valuation of derivatives

7–

761

Other

1122

Total non-operating income

2398

Interest expenses
Loss on valuation of derivatives

212–

Foreign exchange losses
Other

14
0

150
0

Total non-operating expenses

19153

Ordinary profit

432

252

Profit before income taxes

432

252

Income taxes - current

91

169

Income taxes - deferred19(51)

Total income taxes

111

118

Profit321

134

Profit attributable to owners of parent

321

134

Operating profit
Non-operating income

Non-operating expenses

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Profit
Other comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022
321

134

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(0)
99

1574

Remeasurements of defined benefit plans, net of tax

(17)

(3)

81

572

Comprehensive income

Total other comprehensive income

402

707

Comprehensive income attributable toComprehensive income attributable to owners of parent

402

707

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, 2021

September 30, 2022
432252

Depreciation
Amortization of goodwill

467
31432
3

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(6)
12(25)
25

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

420(5)
135

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

(26)
0(47)
4

Interest and dividend income
Interest expenses

(3)
2(7)
2Decrease (increase) in trade receivables
Decrease (increase) in inventories

412(482)

238(745)

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

684
(28)

42
9

Increase (decrease) in Accrued Directors Retirement Benefits
Other, net

(388)
(282)

–
(140)

Subtotal

850

171

Interest and dividends received
Interest paid

3(2)

7(2)

Income taxes paid

(103)

(139)

Net cash provided by (used in) operating activities

748

37(150)

(312)

11(6)

(25)

(155)

(336)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment andintangible assets
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease liabilities

(55)

(53)

Dividends paid

(140)

(218)

Net cash provided by (used in) financing activities

(195)

(271)

Effect of exchange rate change on cash and cash equivalents

30

210

Net increase (decrease) in cash and cash equivalents

428

(360)

Cash and cash equivalents at beginning of period

5,870

5,026

Cash and cash equivalents at end of period

6,299

4,665

7