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 Year Ended March 31, 2021
(Based on Japanese GAAP)May 7, 2021
Company name:Sansha Electric Manufacturing Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
6882
Representative:
Inquiries:

URL

https://www.sansha.co.jp

Representative Director, President
Corporate Planning Department

Hajimu YoshimuraHiroyuki Maruyama

General Manager
Scheduled date of ordinary general meeting of shareholders:TEL

06-6321-0321

June 25, 2021

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

June 25, 2021
June 7, 2021

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

Yes
Yes

(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
19,436
21,875Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(11.2)
416
62.4
441
81.4
497
–
(10.2)
256 (86.0)
243(86.5)(680)–

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
2.6
1.8
2.1–
(3.5)
0.9
1.2

Diluted earnings pershare

Yen
35.42(48.22)

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
24,84624,051Millions of yen
19,33618,489Cash flows fromoperating activities
Millions of yen
1,729
36

Cash flows frominvesting activities
Millions of yen
(355)
(571)

Net assets per share%
77.8
76.9

Yen
1,376.49
1,316.15(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen(249)
5,870(659)4,659

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

8.00
5.00

––

5.00
10.00

13.00
15.00

183
210–
42.3

1.0
1.1

–––––

1–

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
21,800Percentages 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
12.2
800
92.0
800
81.4
550
10.5
39.15

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

YesNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

14,950,000 shares As of March 31, 202014,950,000 shares

Number of treasury shares at the end of the period
As of March 31, 2021

902,122 shares As of March 31, 2020

902,122 shares

14,047,878 shares Year ended March 31, 2020

14,120,955 shares

Average number of shares during the period
Year ended March 31, 20212

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

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,659
6,217

5,870
6,606

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,247
2,906

1,039
2,464

Work in process
Raw materials and supplies

709
1,648

877
1,507

247(24)283(55)

17,611

18,594

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

2,220
657

2,023
594

Land
Leased assets, net

2,090
247

2,090
217

180
314

80
274

5,710

5,282

99

36

Other

183

120

Total intangible assets

282

156

Investment securities
Deferred tax assets

35
165

46168

Retirement benefit asset
Other

109
136

462
136

Total investments and other assets

446

812

Other
Allowance for doubtful accountsTotal current assets
Non-current assets
Property, plant and equipment

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

Total non-current assets
Total assets

36,4406,251

24,051

24,846

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

2,318

2,220

Electronically recorded obligations - operating
Accounts payable - other177
799

191
701

Accrued expenses
Income taxes payable

557
106

609
138

Provision for bonuses
Provision for product warranties

362
63

442
50

Provision for loss on order received
Other

24
477

19432

4,889

4,806

Total current liabilities
Non-current liabilities
Lease obligations

96

66

Directors' retirement benefits payable
Deferred tax liabilities

388
90

388
153

Retirement benefit liability
Other

48
49

49
46

Total non-current liabilities

673

703

5,562

5,509

Shareholders' equity
Share capital

2,774

2,774

Capital surplus
Retained earnings

2,698
13,975

2,698
14,332

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(925)

(925)

18,522

18,879

37

11291

(45)

153

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)

457

18,48919,33624,051

24,846

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

21,875

19,436

Cost of sales

17,281

15,027Gross profit

4,594

4,408

Selling, general and administrative expenses

4,337

3,992

Operating profit

256416

Non-operating income
Interest income

126

Dividend income
Rental income

513

2
14

Electricity sale income
Subsidy income

617

723

Gain on valuation of derivatives
Other

1214–
19

Total non-operating income

8273

Non-operating expenses
Interest expenses

54Commission expenses
Loss on valuation of derivatives

4––
15

Foreign exchange losses
Other80524
5

Total non-operating expenses

95

49

243

441

Gain on sale of investment securities
Gain on sale of non-current assets

83–

–
171

Total extraordinary income

83

171

Extraordinary losses
Loss on sale of non-current assets

30–

Loss on valuation of investment securities

5–

Total extraordinary losses

35–

Profit before income taxes

290

612

Income taxes - current

210

140

Income taxes - deferred

761

(25)

Total income taxes

971

115

Profit (loss)

(680)

497

Profit (loss) attributable to owners of parent(680)497

Ordinary profit
Extraordinary income5Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
(680)

497

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

(47)
(177)

7283

Remeasurements of defined benefit plans, net of tax

(137)

199

(361)

490

Comprehensive income

Total other comprehensive income(1,042)988

Comprehensive income attributable toComprehensive income attributable to owners of parent(1,042)988

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,774

Retained earnings

2,698

15,000Treasury shares(849)

Total shareholders'equity
19,623

Changes during period
Dividends of surplus

(367)

(367)

Profit (loss) attributable toowners of parent

(680)

(680)

Purchase of treasury shares(75)

The net change in the total due
to fiscal year-end change ofconsolidated subsidiaries

(75)

2323

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––(1,025)(75)(1,101)

2,774

2,698

13,975(925)

18,522

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of period

51185

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income92328

Total net assets

19,952

Changes during period
Dividends of surplus(367)

Profit (loss) attributable toowners of parent(680)

Purchase of treasury shares(75)

The net change in the total dueto fiscal year-end change ofconsolidated subsidiaries

23

Net changes in items otherthan shareholders' equity

(47)

(177)

(137)

(361)

Total changes during period

(47)

(177)

(137)

(361)

(1,463)

Balance at end of period

37(45)(33)

18,4897(361)

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,774

Retained earnings

2,698

13,975

Total shareholders'equityTreasury shares(925)

18,522

Changes during period
Dividends of surplus

(140)

(140)

Profit (loss) attributable toowners of parent

497497

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––357–

357

2,774

2,698

14,332(925)

18,879

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of period

37

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensiveincome

(45)

(33)

Total net assets

18,489Changes during period
Dividends of surplus(140)

Profit (loss) attributable toowners of parent

497

Net changes in items otherthan shareholders' equity

7283

199

490

490

Total changes during period

7283

199

490

847

Balance at end of period

11291

153

457

19,336

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
290

612

Depreciation
Amortization of goodwill

1,030
62

948
62

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

(19)
(252)

28
78

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on order received(20)
10(13)(5)

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

(59)
4(66)
1

Interest and dividend income
Interest expenses

(18)
5(8)
4

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities(83)
5––Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables

30
20(171)(39)

Decrease (increase) in inventories
Increase (decrease) in trade payables

1,867(2,217)

529
(176)

Increase (decrease) in accrued expenses
Other, net(278)
(67)

43
13

Subtotal

312

1,842

Interest and dividends received
Interest paid

18(5)

8(4)

(291)
2(117)–

36

1,729(654)(494)

24(58)

172(33)

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities

117–

Net cash provided by (used in) investing activities

(571)

(355)

Net increase (decrease) in short-term borrowings
Purchase of treasury shares

(100)
(76)

–
–

Dividends paid
Repayments of finance lease obligations

(366)
(116)

(140)
(108)

Net cash provided by (used in) financing activities

(659)

(249)

Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Increase (decrease) in cash and cash equivalents resulting from(34)86(1,228)

1,211

accounting term alterations of subsidiaries
Cash and cash equivalents at beginning of period

(74)

–

5,963

4,659

Cash and cash equivalents at end of period

4,659

5,870

9