For the Fiscal Year Ended March 31, 2016

Annual Select® 2016

SUN-WA TECHNOSCORPORATIONTokyo Square Garden, 3-1-1, Kyobashi,
Chuo-ku, Tokyo 104-0031 JAPAN(Securities Code: 8137)+81-3-5202-4011

Corporate Profile
When it was founded in 1949, Sun-Wa Technos Corporation responded to the demands of that era, during
which Japan was rebuilding its industrial capacity following World War II. Ever since then, our main
business has been the sale of technology products—such as industrial systems and machinery, electricmotors, and control equipment—and associated contracting work. With the subsequent structural changes
in Japanese industry, however, we extended into new business fields, including electrical products,
electronic components, and computer systems related to factory automation (FA systems), and as society
has become more information-driven, our business activities have evolved to encompass the sale ofindustrial systems and devices, equipment, and electronic components. During that time, however, we haveconsistently dedicated ourselves to our customers’ development as a technology trading company that puts
customers first, delivers engineering services, and provides up-to-date technical information.
Since establishing an overseas base in Singapore in 1995, the Sun-Wa Group has now established a total of
25 bases in 11 countries. Aiming to expand and develop its non-Japan business, the Group makes a selling
point of providing the same level of service it provides in Japan when assisting Japanese customers moving
into overseas markets, while at the same time cultivating local companies overseas as new customers.
We are currently in the process of establishing the Sun-Wa global network, thereby helping to reduceoverall costs for customers by offering services including acting as a procurement agent (global SCM[supply chain management] solutions) to streamline the process from inventory procurement to distribution.
We also operate a business that develops outstanding products overseas and supplies them to customers
inside and outside Japan.

I. Summary of Selected Financial Data (Consolidated)

Net sales

64th fiscal year

65th fiscal year

66th fiscal year

67th fiscal year

68th fiscal year

From April 1, 2011
to March 31, 2012

From April 1, 2012
to March 31, 2013

From April 1, 2013
to March 31, 2014

From April 1, 2014
to March 31, 2015

From April 1, 2015
to March 31, 2016

89,706

88,264

101,378

111,276

105,748

3,403

2,519

3,438

3,761

2,645

1,975

1,520

2,168

2,466

1,690

1,835

2,033

3,368

3,642

713

12,571

14,34918,654

21,951

22,26342,53947,256

53,69858,74855,439978.57

1,117.07

1,299.29

1,529.00

1,550.73

154.22118.71

162.98171.83117.76

–

–

–

–

–

29.5

30.3

34.7

37.4

40.2

16.8

11.3

13.2

12.2

7.6

5.4

6.8

5.3

6.8

6.0

1,297

3,652

(1,374)

1,353

(60)

(215)

(110)

(127)

(444)

(384)

(472)

(415)

769

(470)

(654)

3,687

6,949

6,453

7,100

5,875

776

784

812

841

857

(Millions of yen)

Ordinary income(Millions of yen)

Profit attributable to owners ofparent(Millions of yen)Comprehensive income(Millions of yen)

Net assets(Millions of yen)

Total assets(Millions of yen)

Net assets per share(Yen)

Basic earnings per share(Yen)

Diluted earnings per share(Yen)

Equity ratio(%)

Return on equity (ROE)(%)

Price earnings ratio (PER)(Times)Net cash provided by (used in)operating activities(Millions of yen)

Net cash provided by (used in)investing activities(Millions of yen)

Net cash provided by (used in)financing activities(Millions of yen)

Cash and cash equivalents at
end of period(Millions of yen)

Number of employees(Persons)

Notes: 1.
2.
3.

Net sales does not include consumption taxes.
Diluted earnings per share is not provided since there are no potential shares.
Effective from the fiscal year under review, the Company has adopted the “Accounting Standard for Business Combinations”(ASBJ Statement No. 21, September 13, 2013) and other accounting standards. As a result, former “net income” is now shownas “profit attributable to owners of parent.”-1-II. Message
Outlining a vision for 10 years ahead to launch Challenge 1500, our ninth medium-term
management plan
To Our Shareholders,

I would like to preface my comments in this Annual Select byextending my sincerest appreciation to all Sun-Wa Group
shareholders for your understanding and constant support of ourGroup’s endeavors.
In the year ended March 31, 2016, we were unfortunately
unable to achieve our financial target for the final year of
JUMP 1200, our eighth medium-term management plan. Thiswas due to a number of factors, including the economic
slowdowns in China and other developing countries and thesluggish smartphone market. Nonetheless, we made steadyprogress with key measures in the course of implementing theplan and we have succeeded in establishing a firm businessbase to get our new medium-term management plan that began
in April 2016 off to a strong start.

Sei Yamamoto
President and Representative Director

I am pleased to announce that, in appreciation of ourshareholders’ constant support, we decided to pay a year-end
dividend of ¥14 per share, in addition to the interim dividend of¥14 per share, bringing the annual dividend to ¥28 per share.

Making a steady start on sustainable growth in both Japan and overseas
As Japan’s birthrate declines and its society ages, robots are increasingly employed to automate
manufacturing. In addition, we are now witnessing the results of our active development of new markets
such as the in-vehicle equipment sector of the automobile market, agriculture, food, and pharmaceuticals,
supplementing achievements in the existing markets, such as the environment and energy, and social
infrastructure. In February 2016, Sun-Wa Technos Corporation established a sales office in Yokohama withthe aim of strengthening its electrical machinery, electronics, and general machinery composite businesses
in the Kanto area. We will continue to clearly define its key markets and take a bold approach in operating
its businesses.
Overseas, meanwhile, growth has slowed and is now flat in the FA (factory automation) market centered on
Shanghai in China, a market which has grown continuously for the past few years. However, myimpression is that, rather than reflecting the slowdown in economic growth, this indicates that the market isfacing a period of structural transition socially and economically as personnel expenses soar and the jobs
preferred by the younger generation shift from manufacturing to IT, finance, and service industries. As thetimes change, we want to respond with precision to customer needs with regard to manufacturing
automation and associated quality improvements, areas in which markets are currently forming overseas asthey are in Japan.
In ASEAN, which is attracting attention as the focus of many companies’ “China-plus-one” strategies, wetook advantage of moves by the ASEAN Economic Community (AEC) to promote intra-regional trade, andestablished a Vietnamese local subsidiary in May 2016 with the aim of helping customers to procure andsell products locally. With the addition of this subsidiary we have now finished establishing sales offices insix of the ten countries within the ASEAN region, and will maximize networking among these regional-2-

sales offices working as a single team to expedite so-called “out-out” business, whereby products
manufactured overseas are delivered directly to an overseas customer without going via Japan. In the
United States, meanwhile, we opened a Los Angeles office in January 2016, aiming to cultivate new
business and improve the service we provide to customers in western areas previously served from
Chicago.
In Thailand, Indonesia, and Mexico, our engineering business is garnering high praise for offering local
assistance with manufacturing systems and bringing them on line for customers in automobile-related fields.
Our engineering business now boasts a staff of around 40 engineers, having recruited many technicalexperts who had been employees of the former SUN-WA TESCOM CORPORATION or other leading
manufacturers. Looking ahead, we will further enhance the one-stop solutions we propose, moving beyond
the automobile-related fields, which has long benefitted from automation, to target markets and fields inJapan and overseas where latent demand for automation is high, such as food and pharmaceuticals.

Setting the SUN-WA VISION 2025 and initiating a new medium-term management plan
to make it a reality
Our ninth medium-term management plan, Challenge 1500, was launched in April 2016, and like the planthat preceded it, was formulated by consensus among our employees and management following lively
discussion by project members comprising mid-level employees. This time the process started with the
mid-level employees setting a vision from a long-term perspective by outlining their own views with regard
to the type of entity Sun-Wa Technos Corporation should strive to be and the goals it should aim to achieve
in ten years’ time. The result was the SUN-WA VISION 2025, which targets consolidated net sales of ¥250
billion in fiscal 2025 in line with the stated intent to create a “Sun-Wa Group : Creating a Bright Future”
The figure of ¥250 billion was the one the project members themselves came up with, but this challenging
target represents more than just a projection based on our existing businesses; it also represents theindomitable spirit of these employees who are ready to tackle the challenges of adding further value to ourexisting businesses and creating new businesses. We in the Group’s management team will continue toprovide the structures and the business environment for younger employees to plan and conduct businessthemselves.
Challenge 1500 represents the start of our drive to make our vision a reality, targeting ¥150 billion of
consolidated net sales by fiscal 2019, the 70th anniversary of Sun-Wa Technos Corporation’s founding. In
the core electrical machinery, electronics and general machinery businesses we have cultivated for many
years, we will continue to clearly articulate our core competencies, as represented by the unique services
and proposals we offer. To that end, we will seek to further strengthen our relationships with key business
partners and reinforce our engineering business and our global SCM (supply chain management) solutions
business, which employs the existing business infrastructure to optimize high-quality links amongcustomers and suppliers.
In tandem with our efforts to improve our engineering capabilities by increasing our technical staff andcorporate partners, we will reinforce our global SCM solutions not only in terms of product distribution,
but also by providing our customers with the wide variety of up-to-date technical information we gather bytaking advantage of our networks as a technology trading company. Alongside efforts to further develop our
non-Japan business by cultivating local companies overseas as customers and strengthening collaboration
within the Group, we will take on the challenge of building an IoT*1-related business to facilitate advanced-3-computerized networking in manufacturing through use of ICT*2 technology.
*1*2Internet of Things
Information and Communication Technology

Taking advantage of the ideal business base to implement our plan with a totalcommitment to achieving its targets
In December 2015, Sun-Wa Technos Corporation relocated its head office, aiming to produce synergies
through collaboration among its electrical machinery, electronics, and general machinery business segmentswith a view to expanding its operations. As employees become more aware of our efforts to reinvent theCompany in this new environment, and more motivated to participate in that reinvention, we are also taking
steps to reform our corporate culture. We regard uncompromising adherence to the principles of corporate
governance as essential, and as one of the ways in which we promote the diversity, we are striving toestablish work-life balance for our female employees based on active participation in the work place andmore efficient working. These aims are currently being put into practice in our New Life Promotion Office,where female employees are playing a central role in making proposals for lifestyle-related fields such as
LEDs and AEDs (automated external defibrillators). Meanwhile, the Kaizen Promotion Office aims not
only to reduce costs, but also to reduce working hours by taking action to improve work efficiency and by
instilling awareness of the need to maintain adequate profits. We plan to extend these efforts to improve
work efficiency and profit-awareness across the entire Group, enabling them to permeate throughout ourorganization.
With a corporate philosophy of “Serving society by nurturing the human talent to build new companies,”
Sun-Wa Technos Corporation’s business base is founded on its human resources. To cultivate humanresources with a global outlook, we intend to supplement the manufacturer training and grade-specificinternal training that we have always provided by implementing a well-rounded human resource
development program that anticipates future developments in our business and is in line with the times.
Key elements of this program will be English-language training and overseas training. Meanwhile, we aretaking steps to make our business management faster and more transparent. Initiatives to this end include
integrating sales administration and accounting systems into a single system to be shared across the Groupand strengthening control systems at the head office and branch offices. We also adopted an executive
officer system in June 2016, thereby clarifying responsibility for, and expediting, business execution.
Thanks in large part to all our employees’ efforts during the previous medium-term management plan, we
now have the necessary organization and framework in place to tackle our new medium-term management
plan with total commitment to achieving its targets. We look forward to the continued support of ourshareholders as Sun-Wa Technos Corporation goes on to meet the challenges to come.

-4-Ninth Medium-Term Management Plan (FY2016-FY2018)

Challenge 1500
FY2019 ... Toward the 70th Anniversary

SUN-WA VISION 2025
Sun-Wa Group : Creating a Bright Future

FY 2025\250 ｂillion

FY 2019

FY2019 - Our 70th Anniversary and Beyond
We continue to evolve and accelerate growth as anindependent technology trading company.

\150 ｂillion♦ Policy
Through our core electrical machinery, electronics
and general machinery businesses, we will offer our
proprietary value-added solutions to help ourcustomers manufacture additional products of
excellence.
As a technology trading company, we will supply ourcustomers with the latest technical information.
We will continue to refine the Sun-Wa Global
Network to further strengthen its group power.

♦ Managerial Goal
Sun-Wa Technos is steadily building a foundation
to ready itself for our 70th Anniversary andchallenging consolidated net sales of 150 billion
yen in FY2019 and 250 billion yen in FY2025.
Consolidated
FY2016FY2017FY2018(69th Fiscal Year)(70th Fiscal Year)(71st Fiscal Year)

117,000

126,000

137,000

Operating income

2,800

3,500

4,300

Ratio of operating
income to net sales

2.4%

2.8%

3.1%

Ordinary income

3,000

3,700

4,500

Ratio of ordinary
income to net sales

2.6%

2.9%

3.3%

♦ Policy Measures
Increase our core electrical machinery, electronic,
and general machinery businesses.
Establish our “engineering business” and global SCM
solutions business.
Strengthen group power and overseas business,
including identification of capable local
manufacturers.
Establish IoT-related business by utilizing ICT
technology.
Transform corporate culture by continued investment
in our associates, including diversity promotion andhighly skilled talent.

Net sales-5-(Millions of yen)III. Financial Highlights
Net Sales

Operating Income¥105,748 million
down ¥5,528 million YoY¥2,444 million

down 5.0% YoY
111,276

down ¥776 million YoY(Millions of yen)

Year end(Millions of yen)

Year end

down 29.6% YoY

down 31.5% YoY

down 29.7% YoY
3,761

105,748

101,378

down ¥1,116 million YoY(Millions of yen)

Year end¥1,690 million¥2,645 million

down ¥1,027 million YoY(Millions of yen)

Year end

Profit Attributable to Ownersof Parent

Ordinary Income

3,471

3,438

3,211

2,466

2,645

2,444

2,168
1,690

66th
67th
68th
(FY2013) (FY2014) (FY2015)

66th
67th
68th
(FY2013) (FY2014) (FY2015)

66th
67th
68th
(FY2013) (FY2014) (FY2015)

66th
67th
68th
(FY2013) (FY2014) (FY2015)

Total Assets / Net Assets

Net Assets per Share /Equity Ratio

Orders Received / Order Backlog

Ratio of Ordinary
Income to Net Sales

Total assets ¥55,439 million
Net assets ¥22,263 million
YoY change total assets Down ¥3,309 million
YoY change net assets Up ¥311 million

Net assets per share ¥1,550.73
Equity ratio
40.2%
Net Assets per Share
Equity Ratio(Millions of yen)
Total assetsup

Net assets

1.4% YoY

up 1.4%

34.7
53,698YoY change orders received
YoY change orders backlog

YoY

37.4
1,529.00

55,4392.5 %Down 7,946 million
Down 1,069 million(Millions of yen)Orders received

Orders backlog

Ratio of ordinary income to net sales (%)

down 6.1% YoY

up 2.8 points YoY

down 5.6% YoY
58,748(Yen)(%)

Orders received ¥104,678 million
Order backlog ¥16,587 million

down 0.9 points YoY

down 7.1% YoY

40.2

112,624

1,550.73

102,840

104,678

1,299.29

3.4

3.4
2.5

18,654

21,951

22,263
16,308

66th
67th
68th
(FY2013) (FY2014) (FY2015)

66th
67th
68th
(FY2013) (FY2014) (FY2015)-6-

17,656

16,587

66th
67th
68th
(FY2013) (FY2014) (FY2015)

66th
67th
68th
(FY2013) (FY2014) (FY2015)

Financial highlights
In the fiscal year under review, the Japanese economy continued to follow a track of gradual recovery. This
reflected the upturn in capital investment on the back of improvements in corporate earnings resulting
principally from effective economic measures by the government. However, the economic slowdowns in
China and other developing countries posed a risk of suppressing economic activity in the Japan.
In the industrial electronics and mechatronics industries serviced by the Sun-Wa Group, demand in theautomobile industry remained firm, but demand in the field of smartphones was sluggish. As a result of theeconomic slowdown in China, moreover, the environment continued to be challenging to winning orders inthe semiconductor-related and industrial machinery industries.
In this environment, the Sun-Wa Group continued to push ahead with the key measures in JUMP 1200, its
eighth medium-term plan, in the last year of the plan. In particular, we added “engineering capabilities” toour electrical machinery, electronics and general machinery composite businesses, and not only worked toenhance our corporate value as a technology trading company but also pressed ahead with initiatives tocultivate new business fields. We engaged in proactive upfront investment in anticipation of the Challenge
1500 medium-term management plan to be implemented from April 2016, but market growth during the
fiscal year under review turned out to be weaker than we had initially expected.
As a result, the operating results for the fiscal year under review fell year on year in terms of both sales andprofits.

Outlook for the Fiscal Year ending March 31, 2017

In the new fiscal year, we expect further increases in capital investment on the back of improved corporate
earnings, while employment and income conditions are expected to hold firm, enabling the Japanese
economy to continue recovering gradually. However, there is likely to be a continued risk of economic
slowdowns in China and other developing countries suppressing economic activity in Japan. In theindustrial electronics and mechatronics sectors serviced by the Sun-Wa Group, smartphone-related orders
have stagnated, but continued strong growth is predicted in orders from the automobile-related industries,
where use of electronics is advancing.

Consolidated earnings forecasts for the year ending March 31, 2017
Net sales¥114,500 million(up 8.3% year-on-year)

Operating income¥2,500 million(up 2.3% year-on-year)

Ordinary income
Profit attributable to ownersof parent
Basic earnings per share¥2,700 million(up 2.1% year-on-year)¥1,800 million(up 6.5% year-on-year)¥125.38

Note: Earnings projections are based on information available to the Company as of May 10, 2016. Actual results may differ from the
projections presented here due to various factors.

-7-IV. Business Segment Information
Electrical Machinery

Net Sales¥19,069 million
down ¥3,591 million YoY(Millions of yen)down 15.8%YoY

Proportion
Proportion of total net sales

18.0%

24,75922,66066th(FY2013)

67th(FY2014)The Electrical Machinery Department saw an increase in salesof electrical products used in semiconductor manufacturing
devices. However, sales of servo motors used in the industrial
machinery industry and sales of control equipment forphotovoltaic power generation systems decreased.

19,06968th(FY2015)Main Products
AC servo motors, linear motors and various other motors, inverters, machine controllers,machine vision systems, clean room robots and vacuum chamber robots for semiconductor
manufacturing devices, power conditioners, power substations and other facility works, etc.

Electronics

Net Sales¥77,593 million
down ¥2,879 million YoY

AC servo motors

The Electronics Department saw increases in sales of electronic
components used in automobile-related industries and the like,and industrial machinery industry. However, sales of electronic
components used in the amusement field decreased.

(Millions of yen)down 3.6% YoY
69,643

Proportion of total net sales
sales

73.4%

66th
(FY2013)80,47377,59367th(FY2014)

68th(FY2015)Main Products
Various electronic components and equipment including power supplies, connectors,
semiconductors, sensors, miniature fans, LEDs (Light Emitting Diodes), LCDs (Liquid
Crystal Displays), industrial PCs, CPU boards, memory modules, etc.

General Machinery

Net Sales¥9,084 million
up ¥942 million YoY

LED light module

The General Machinery Department saw increases in sales ofmounters for the household fixtures industry and production
equipment for the automobile industry, but sales of equipmentused in liquid crystal delivery equipment declined.

(Millions of yen)

up
6,975

Proportion of total net sales
sales

8.6%

66th
(FY2013)

11.6% YoY
8,141

9,084

67th
(FY2014)

68th(FY2015)Main Products
Semiconductor-related manufacturing equipment, industrial robots, clean room robots forconveying liquid crystal panels, substrate-related devices, conveying devices for logistics,
valve control devices, wind- and hydro-power equipment, air conditioners and kitchen
facilities, environmental protection equipment and devices, various inspection devices,
medical equipment, etc.

-8-

Double arm robot

V. Reportable Segment Information
Japan(Millions of yen)
Net sales
Operating income

Net sales ¥79,995 million (down ¥1,753 million YoY)

down 2.1% YoY

Operating income ¥1,580 million (down ¥548 million YoY)

77,477

81,749

2,152

2,128

66th

67th
(FY2014)

69.7% (FY2013)

Proportion
Proportion of total net sales

Asia

79,995
1,580

68th(FY2015)

There were increases in sales of electrical products forsemiconductor manufacturing devices, electronic components
for automobile-related industries and the industrial machineryindustry, and mounters for the household fixtures industry.
However, sales decreased for servo motors for the industrial
machinery industry, control equipment for photovoltaic
power generation systems, electronic components used in theamusement field, and equipment used in liquid crystal
delivery equipment.

(Millions of yen)
Net sales
Operating income

Net sales ¥30,097 million (down ¥2,916 million YoY)

down 8.8% YoY

Operating income ¥853 million (down ¥407 million YoY)

33,01426,756
1,021

66th

30,097

1,260

853

67th

68th

Sales of electronic components for the industrial machineryindustry increased, but sales of electronic components used in
the amusement field decreased. Sales of electrical products forthe industrial machinery industry and sales of electronic
components also decreased as a result of the slowdown in the
Chinese economy.

25.9% (FY2013) (FY2014) (FY2015)

Proportion
Proportion of total net sales

Europe andthe United States(Millions of yen)
Net sales
Operating income

Net sales ¥3,685 million (up ¥253 million YoY)

up

Operating income ¥2 million (down ¥84 million YoY)

3,191

7.4% YoY
3,431

3,685

Sales of manufacturing equipment for automobile industry
increased. However, sales of electronic components used ininverters decreased.

87
26

66th

Proportion of total
total net sales

Other*

3.3% (FY2013)

2
67th(FY2014)

68th(FY2015)(Millions of yen)
Net sales
Operating income

Net sales ¥1,935 million (down ¥623 million YoY)

down 24.4% YoY

Operating loss ¥1 million (up ¥9 million YoY)

2,686

2,559
1,935

Proportion
Proportion of total net sales

(7)

(11)

66th

67th
(FY2014)

1.1% (FY2013)(1)* The “Other” segment includes businesses not included inreportable segments, including the operations of somedomestic subsidiaries.

68th(FY2015)

Note 1: Each proportion of total net sales is based on sales to external customers.
Note 2: Regional segment sales shown above include internal sales among segments as well as amounts transferred to othersegments.

-9-VI. Sun-Wa Global Network
Japan
SUN-WA TECHNOS CORPORATIONTokyo-Nishi Branch
Tohoku Sales OfficeKita-Kanto Sales Office
Nagano Sales Office

Customer Sales Dept
Kyoto Branch
Hokuriku Sales Office

Head OfficeOsaka BranchElectrical Machinery Dept

Himeji Sales Office

General Machinery Dept
Fukuoka BranchElectronics Dept

Hiroshima Sales Office
Oita Sales Office
Kumamoto Sales Office
Nagasaki Sales Office

Yokohama Sales OfficeNumazu Sales Office
Tokyo Service Center
Nagoya Service Center

Automotive Electronic
Components Sales Dept

Nagoya Branch
Kyushu Service Center

Hamamatsu Sales Office
Mikawa Sales Office
Mie Sales Office

SUN-WA TRINITY CORPORATION
SUN-WA LOGISTICS CO., LTD.

Europe
SUN-WA TECHNOS (EUROPE) GmbHGermany (Frankfurt)

Americas
United States (Chicago)
United States (Greenville)
South Carolina
United States (Los Angeles)

Mexico(Queretaro)

SUN-WA TECHNOS AMERICA, INC.
SUN-WA TECHNOS MEXICO S.A. DE C.V.

China / Hong Kong / Taiwan
China (Tianjin)

ASEAN

China (Dalian)
China (Shenyang)

Vietnam(Hanoi)

China (Suzhou)
China (Shenzhen)
China (Guangzhou)

Thailand(Bangkok)

China (Shanghai)
China (Shanghai
Mechatronics Centre)
China (Hangzhou)
Taiwan (Taipei)
Taiwan (Taichung)Taiwan (Tainan)
Hong Kong
Hong Kong Logistics Center

Philippines(Manila)

Malaysia (Kuala Lumpur)
Singapore
Indonesia(Jakarta)
SUN-WA TECHNOS (SINGAPORE) PTE LTD.
SUN-WA TECHNOS (MALAYSIA) SDN. BHD.
SUN-WA TECHNOS ASIA (THAILAND) CO., LTD.
PT. SUNWA TECHNOS INDONESIA
SUN-WA TECHNOS (PHILIPPINES), INC.
SUN-WA TECHNOS (VIETNAM) CO., LTD.

SUN-WA TECHNOS (H.K.) CO., LTD.
SUN-WA TECHNOS (TAIWAN) CO., LTD.
SHANGHAI SUN-WA TECHNOS CO., LTD.
SUN-WA TECHNOS (SHENZHEN) CO., LTD.

On May 20, 2016, we established SUN-WA TECHNOS (VIETNAM) CO., LTD. Accordingly, the Hanoi office, which is therepresentative office for SUN-WA TECHNOS (H.K.) CO., LTD., is scheduled to be closed.
For addresses and contact details of each business base above, please refer to the network page of our website below.
http://www.sunwa.co.jp/- 10 -

VII. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of March 31, 2016

7,584
34,4196,359
33,006

726

1,548

5,384
82
0
300
834
(93)
49,239

5,170
0
–
219
644
(91)
46,8572,548(1,629)
918
2,590
591
(297)
293
460
(383)
77
3,879

2,475
(1,511)
963
2,420
702
(392)
309
444
(350)
93
3,788

243
243

240
240

4,566
–
858
(38)
5,386
9,509
58,748

3,518
4
1,123
(93)
4,553
8,581
55,439AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 11 -

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

27,496
1,462
1,320
123
509
1,026
432
32,37024,732
1,417
900
147
274
806
412
28,691

1,200
900
188
625
674
836
4,426
36,797

1,200
1,200
185
203
696
998
4,484
33,176

2,553
1,958
14,472(54)
18,9292,553
1,958
15,761(54)
20,217

1,851

1,148

1,170
3,022
21,951
58,748897
2,045
22,26355,439Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accrued expenses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 12 -

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Purchase discounts
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of notes receivable - trade
Loss on sales of accounts receivable
Bond issuance cost
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on valuation of membership
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent- 13 -

Fiscal year ended
March 31, 2016

111,276
97,287
13,98810,516
3,471

105,748
92,491
13,256
10,812
2,444

7
53
54
108
222
445

22
74
53
115
161
428

54
1
6
19
48
25
156
3,761

43
–
12
–
149
22
227
2,645

–
–
–
3,761
1,292
2
1,294
2,466
2,466

94
0
95
2,550
829
30
859
1,690
1,690

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2015
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests- 14 -

Fiscal year ended
March 31, 2016

2,466

1,690

644
530
1,175
3,642

(703)
(273)
(976)
713

3,642

713

–

–

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
period2,553

Capital surplus

Retained earnings

1,958

12,350Treasury shares(53)

Total shareholders’equity16,807

Changes of items during period
Dividends of surplus

(344)

(344)

Profit attributable to ownersof parent

2,466

2,466

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

–

–

2,122

(0)

2,122

2,553

1,958

14,472(54)

18,929

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of current
period1,207

Foreign currencytranslation
adjustment
639

Total accumulated
othercomprehensive
income1,847

Total net assets

18,654

Changes of items during period
Dividends of surplus(344)

Profit attributable to ownersof parent

2,466

Purchase of treasury shares(0)

Net changes of items otherthan shareholders’ equity

644

530

1,175

1,175

Total changes of items during
period

644

530

1,175

3,297

Balance at end of current period

1,851

1,170

3,022

21,951- 15 -

Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
period2,553

Capital surplus

Retained earnings

1,958

14,472

Treasury shares(54)

Total shareholders’equity18,929Changes of items during period
Dividends of surplus

(401)

(401)

Profit attributable to ownersof parent

1,690

1,690

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

–

–

1,288

(0)

1,288

2,553

1,958

15,761(54)

20,217

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of current
period1,851

Foreign currencytranslation
adjustment
1,170

Total accumulated
othercomprehensive
income3,022

Total net assets

21,951

Changes of items during period
Dividends of surplus(401)

Profit attributable to ownersof parent

1,690

Purchase of treasury shares(0)

Net changes of items otherthan shareholders’ equity

(703)

(273)

(976)

(976)

Total changes of items during
period

(703)

(273)

(976)

311

Balance at end of current period

1,148

897

2,045

22,263- 16 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2015
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in net defined benefit liability
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of bonds
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 17 -

Fiscal year ended
March 31, 2016

3,761
221
87

2,550
267
161

(40)

53

(60)
54
92
6

(97)
43
(16)
94

(1,156)

282

(820)
(311)

170
175

997

(2,500)

69
114
50
3,065
60
(54)
(1,718)
1,353

(56)
(152)
(25)
950
97
(43)
(1,064)
(60)

(38)
40
(231)
(215)
(444)

(194)
117
(32)
(274)
(384)

–
(1,200)
(125)
1,200
(0)
(344)
(470)

1,200
(1,320)
(131)
–
(0)
(401)
(654)

209

(125)

647
6,453
7,100

(1,225)
7,100
5,875

VIII. Corporate Data
Company Information (as of March 31, 2016)
Trade name:
Established:
Business year:
Paid-in capital:
Number of employees:
Head office:Telephone:
Consolidated subsidiaries:

URL:

SUN-WA TECHNOS CORPORATION
November 4, 1949
From April 1 to March 31 of the following year
2,553 million yen
857 (consolidated)Tokyo Square Garden, 3-1-1, Kyobashi, Chuo-ku, Tokyo
104-0031 JAPAN+81-3-5202-4011
SUN-WA TRINITY CORPORATION
SUN-WA LOGISTICS CO., LTD.
SUN-WA TECHNOS (SINGAPORE) PTE LTD.
SUN-WA TECHNOS (H.K.) CO., LTD.
SUN-WA TECHNOS (EUROPE) GmbH
SUN-WA TECHNOS AMERICA, INC.
SUN-WA TECHNOS (TAIWAN) CO., LTD.
SUN-WA TECHNOS (MALAYSIA) SDN. BHD.
SHANGHAI SUN-WA TECHNOS CO., LTD.
SUN-WA TECHNOS ASIA (THAILAND) CO., LTD.
SUN-WA TECHNOS (SHENZHEN) CO., LTD.
PT. SUNWA TECHNOS INDONESIA
SUN-WA TECHNOS (PHILIPPINES), INC.
SUN-WA TECHNOS MEXICO S.A. DE C.V.
http://www.sunwa.co.jp/

Officers (as of June 28, 2016)
Chairman and Representative Director
President and Representative Director
Director and Senior Managing Executive Officer
Director and Managing Executive Officer
Director and Managing Executive Officer(Outside) Director(Outside) Director
Standing Audit & Supervisory Board Member
Standing Audit & Supervisory Board Member(Outside) Audit & Supervisory Board Member(Outside) Audit & Supervisory Board Member
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive Officer

Masujiro Yamada
Sei Yamamoto
Hiroyuki Tanaka
Masanori Igarashi
Shoichiro Mine
Masanori Aoki
Toshiro Koizumi
KazutoTakeuchi
Kiyoshi Goto
Yasuo Nakamura
Satoru Ueno
Toshihiko Makino
Kazuya Hanayama
Shinya Murakami
Yaeko Tanaka
Kenji Takamatsu

Stock Information (as of March 31, 2016)
Stock exchange listing:
Listing date:
Total number of shares authorized:
Total number of shares issued:
Number of shareholders:Major (top 10) shareholders:Tokyo Stock Exchange, 1st Section (Code: 8137)
May 19, 1982
33,380,000 shares
14,438,000 shares
3,616

Number of shares held
Share-holding ratio (%)(Thousands)
YASKAWA Electric Corporation
797
5.55
The Dai-ichi Life Insurance Company, Limited
729
5.08
Resona Bank, Limited
545
3.79
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
545
3.79
Origin Electric Co., Ltd.
498
3.46
Okuma Corporation
435
3.03
Japan Trustee Services Bank, Ltd. (Trust Account)
401
2.79
Masujiro Yamada
395
2.75
OMRON Corporation
355
2.47
Sun-Wa Technos Employee’s Shareholding Association
283
1.97*Note: Share-holding ratio is calculated after deducting the treasury shares (81,182 shares).
Shareholder name- 18 -

* Annual Select is an English-language disclosure format developed by ZAIHON, INC. to increase the level of convenience of investors outside Japan based on Japanese-language
statutory disclosure material, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material. Annual Select is a registered trademark of
ZAIHON, INC. Reproduction or copying without prior permission is prohibited.
* While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company does not guarantee it is 100% accurate.
Therefore, please verify the original Japanese text for any final judgments made based on this information.

- 19 -