For the Fiscal Year Ended March 31, 2014

Annual Select® 2014

SUN-WA TECHNOSCORPORATION
Fukuoka Building, 2-8-7, Yaesu,
Chuo-ku, Tokyo 104-0028, Japan(Securities Code: 8137)+81-3-5202-4011

Corporate Profile
Sun-Wa Technos Corporation is a technology products trading company with a proud history of over 60
years during which it has constantly striven to conduct its business in a manner that fulfills its corporate
philosophy of “Serving society by nurturing the human talent to build new companies.” Today, Sun-Wa
Technos is the core of a global group that uses its ability to quickly and accurately grasp market trends to
respond to customer needs. By providing customers with the latest information, products that create value,
and maintenance services that ensure the safe and stable operation of supplied products and by working
closely with our suppliers, we will continue to grow our business.
Toward that end, the Sun-Wa Group supplies customers with technology products in three core categories:
electrical machinery, electronics, and general machinery. In each category, our product offerings range fromcomponents to individual machines, equipment, and entire systems. We also provide full product support,
including customized adjustments and after-sales maintenance. Befitting our positioning as a “technology
trading company,” our wide range of products and services is provided by an organization that possesses
the expertise required in each of our product categories and the adaptability to provide complex solutions
across those categories. Leveraging our global network, our marketing efforts also focus on proposing
complete solutions for customers.
Going forward, the Sun-Wa Group will continue to supply products to our markets, with customer
satisfaction as our highest priority. Leveraging the expertise accumulated over our long history as atechnology products trading company, we will constantly endeavor to strengthen our business foundations
and ability to contribute to our customers’ success as well as to society as a whole.

I. Summary of Selected Financial Data (Consolidated)

Net sales

62nd fiscal year

63rd fiscal year

64th fiscal year

65th fiscal year

66th fiscal year

From April 1, 2009
to March 31, 2010

From April 1, 2010
to March 31, 2011

From April 1, 2011
to March 31, 2012

From April 1, 2012
to March 31, 2013

From April 1, 2013
to March 31, 2014

55,38685,28389,706

88,264

101,378

(107)

2,875

3,403

2,519

3,438

(409)

1,694

1,975

1,520

2,168

–

1,593

1,835

2,033

3,368

9,655

10,992

12,571

14,34918,65436,866

41,25442,53947,256

53,698750.99855.27

978.57

1,117.07

1,299.29(31.97)132.33154.22118.71

162.98

–

–

–

–

–

26.1

26.6

29.5

30.3

34.7

(4.2)

16.5

16.8

11.3

13.2

–

5.4

5.4

6.8

5.3

954

45

1,297

3,652

(1,374)

(65)

(94)

(215)

(110)

(127)

675

(985)

(472)

(415)

769

4,236

3,126

3,687

6,949

6,453

724
[48]

738
[18]

776
[23]

784
[13]

812
[10]

(Millions of yen)

Ordinary income (loss)(Millions of yen)

Net income (loss)(Millions of yen)Comprehensive income(Millions of yen)

Net assets(Millions of yen)

Total assets(Millions of yen)

Net assets per share(Yen)

Net income (loss) per share(Yen)

Diluted net income 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[Separately, average numberof temporary employees](Persons)

Notes: 1.
2.
3.

Net sales does not include consumption taxes.
Diluted net income per share is not provided since there are no potential shares. Furthermore, there was a net
loss per share in the 62nd fiscal year.
Price earnings ratio for the 62nd fiscal year is not provided since there was a net loss per share in that fiscal
year.

-1-

II. MESSAGE
Strengthening our engineering capabilities and implementing organizational reform toprovide high-quality global services
To Our Shareholders,
I would like to preface my comments in this Annual Selectby extending my sincerest appreciation to all Sun-Wa Group
shareholders for your understanding and constant support ofour Group’s endeavors.
In the year ended March 31, 2014, the Sun-Wa Group posted
record-high results for net sales, ordinary income and net
income. Thanks to the hard efforts of all employees, whowere the key contributors to the strength and collaboration of
our global network and our three departments of electricalmachinery, electronics and general machinery, and the
support of our business partners, we were able to achieve¥100 billion consolidated net sales that we were unable torealize in the previous management plan. It was a favorable
first-year start to our eighth medium-term management plan
(JUMP 1200) currently in deployment.
I am pleased to anounce that, in appreciation of ourshareholders’ constant support, we decided to pay a year-end
dividend of ¥12 per share, in addition to the interim dividendof ¥10 per share, bringing the annual dividend to ¥22 per share.
Sei Yamamoto
President and Representative Director

Actively expanding a composite business with added engineering capabilities
Currently our overseas business is seeing signs of recovery in the previously sluggish Chinese market, and
the ASEAN market is growing firmly. Our employees are out on the frontline, proactively developing
business proposals based on accurate information collection. Since last year, we have opened businessoffices in Vietnam (Hanoi) and Taiwan (Taichung), and aim to further strengthen sales through locally
based sales offices.
Meanwhile in Japan’s domestic market, where customers are shifting production of mass-produced items tooverseas, we are steadily growing businesses in the robot systems field, aimed at automation andproduction efficiency improvement in response to Japan’s declining birthrate and aging society, as well as
the environment and energy field to meet the demand for lower energy and electric power consumption,
which has grown since the Great East Japan Earthquake.
In the second year of JUMP 1200, all employees are working toward fulfilling the management plan bystrengthening internal control systems to boost our unique sales proposal capabilities and improve businessefficiency, and introducing work policies that enable swifter and more accurate provision of products. In
particular, we are adding engineering capabilities to our composite business of electric machinery,electronics and general machinery which we are proactively promoting, with the aim of entering into new
business fields and improving our value as a technology trading company.
Overseas also, we are building on past achievements in the United States by developing equipment related
business that includes demonstrations in Thailand and at the Shanghai Mechatronics Centre as one model
for improving our engineering capabilities and developing and strengthening our service framework in theentire Group.

-2-Our challenge to reform sales activities to propose functions and application technology
Our corporate mission is to provide systems with the best hardware and software solutions for all ourcustomers’ issues and needs by proposing systems that are comprised of our suppliers’ excellent products.
However, our future vision is to provide more than just the individual product functions. We wish to reform
our sales activities to better contribute to improving production efficiency and product performance for ourcustomers by proposing functions and application technology.
For example, in the environment and energy conservation, medical, food, and infrastructure markets, aswell as other growth areas, it is important to consider how to apply technology to make peoples’ lives more
comfortable such as by finding new applications for robotic technology currently playing a central role in
the automotive manufacturing industry. We wish to build a new business pillar that stays abreast of theadvancements in these growth markets and propose our own original ideas that utilize component
technology possessed by our suppliers. Already, we are receiving positive reception at expositions and thelike where we propose actual application examples and usage formats that incorporate a wide range of our
suppliers’ products.
Moreover, in projects such as photovoltaic power generation, we are bringing together personnel
knowledgeable about these technologies and systems to create new sales methods and business models thatoffer profitable outcomes for our customers.

Global-minded efforts to implement organizational reform and interchange personnel
Meanwhile, aiming to develop an environment conducive for the next-generation younger senior managers
to tackle new initiatives, we are implementing organizational reform and interchanging personnel as a
response to the changes in the business environment such as introducing three new director positions andoptimizing the work duties of each director.
On the sales front, we are responding to the current business environment in which customers spread theirproduction bases throughout the world and businesses are transgressing areas and globalizing. By
horizontally transferring engineers and other technical employees, we are building an organizational
structure that will provide the same quality of technological service throughout our global operations. We
are also strengthening the functions of our sales division to achieve overall optimization of our businesses
from a broad perspective by introducing a global manager system to disseminate shared customer-centric
information and combining this with our existing area-centric locally based sales.
We also aim to improve our customers’ SCM (supply chain management) using global logistics centered atour Hong Kong Logistics Center. Through procurement-agent services and other services designed to
improve our customers’ business efficiency, we are able to provide services with even further added value
and develop this knowhow as our shared business base that can be shared among customers.
In addition to spearheading our ongoing CSR efforts, our administration division will more actively
implement the interchange of personnel to strengthen the capabilities of local subsidiaries and build asystem that can support sales from a global perspective that includes our nine overseas local subsidiaries.

-3-

To be a company more highly recognized for its group-wide total capability
Our human resources comprise the business base of the Sun-Wa Technos Group. In addition to the
manufacturer training that we have always provided, our proactive efforts in human resource development
includes “third-year-employee go-it-alone” training, one-on-one leader training that implements adevelopment plan to turn novice employees into valuable members of society, and improvement activities(various campaigns) aimed at improving employee motivation.
Looking forward, we will continue to steadily develop our management base to further boost our corporate
value based on our corporate precept of “creating the people, building the company, serving the society.” In
this way, next year we will begin formulating the next medium-term management plan, which will be led
by our next-generation senior managers. Guided by all employees, we will draw up a grand design of how
the Sun-Wa Technos Group will be in ten years from now. We shall develop as a company that uses its
group-wide total capability to raise its value as a technological trading company and earn long-standing
support and recognition from all shareholders.

-4-Eighth Medium-Term Management Plan (JUMP 1200)
Targeting a giant leap forward for the Sun-Wa Technos Group to consolidated sales of ¥120 billion¨ Managerial Goal

¨ Policy

Consolidated

Further expand business via global expansion(Millions of yen)
th

th

th

66 Fiscal
Year (ended

67 Fiscal
Year (ending

68 Fiscal
Year (ending

March 2014)

March 2015)

March 2016)

Net sales

98,000110,000

120,000

Pursue higher levels of customer satisfaction by
being the first to grasp market trends andresponding quickly to those changes

Operatingincome

3,100

3,700

4,400

Raise profitability by building a leaner, stronger
company

Ordinary
income

3,400

4,000

4,700

Net income

2,000

2,500

2,850

Ratio ofordinary income
to net sales

3.5%

3.6%

3.9%

Enhance corporate value via proprietary proposals
and technological capabilities

Promote adherence to the best CSR practices¨ Priority Measures
Build an organization that will enable us to display
to the maximum extent the strength of ourintegrated electrical machinery, electronics, andgeneral machinery business as well as our overall
engineering capabilities
Further expand overseas business, including inemerging countries

We aim to be a truly global company that is active
around the world and provides services as a constantly
growing technology products trading company.

Aggressively develop new growth markets with theaim of establishing new businesses
Strengthen and expand our global logistics function
Upgrade the Sun-Wa Group’s administrative
structure

Sun-Wa GroupElectrical
Machinery

Composite BusinessElectronics

GeneralMachineryEngineering Capabilities

68th Fiscal Year(ending March 2016) [Plan]¥120 billion in consolidated
sales

Establish a human resources development system
based on our corporate philosophy¨ Progress

Sustain a ratio of ordinary income to
net sales of 3.5 % or more

Ordinary income

Net sales(Millions of yen)
Target Actual

65th Fiscal Year (ended March 2013)¥88.2 billion in consolidated sales

98,000Ordinary income ¥2.5 billion in consolidated basis

Forecast(Millions of yen)
Target Actual

120,000
110,000 110,000
101,378

Forecast
4,700

4,000

3,800

3,400 3,438

 ¥120 billion in consolidated sales in the plan’s final
year (ending March 2016)
 Sustain a ratio of ordinary income to net sales of
3.5 % or more
68th
67th
66th
68th
67th
66th
66th…
67th…
68th…
66th…
67th…
68th…
(FY2013) (FY2014) (FY2015) (FY2013) (FY2014) (FY2015)-5-

III. Financial Highlights
Net Sales

Operating Income¥101,378 millionup ¥13,114 million YoY¥3,211 million

YoY

up 36.5%

YoY

3,211

(Millions of yen)up 42.6%

3,438

3,403

101,378
89,706up ¥647 million YoY(Millions of yen)

YoY

3,289

¥2,168 million

up ¥918 million YoY(Millions of yen)up 41.5%

Net Income¥3,438 million

up ¥941 million YoY(Millions of yen)up 14.9%

Ordinary Income

YoY

2,168
1,975

88,264
2,269

2,519

64th
65th
66th
(FY2011) (FY2012) (FY2013)

64th
65th
66th
(FY2011) (FY2012) (FY2013)

64th
65th
66th
(FY2011) (FY2012) (FY2013)

64th
65th
66th
(FY2011) (FY2012) (FY2013)

Total Assets / Net Assets

Net Assets per Share /Equity Ratio

Orders Received / Order Backlog

Ratio of Ordinary
Income to Net Sales

Total assets ¥53,698 million
Net assets ¥18,654 million
YoY change total assets Up ¥6,442 million
YoY change net assets Up ¥4,305 million

Net assets per share ¥1,299.29
Equity ratio
34.7%
Net Assets per Share
Equity Ratio(Millions of yen)
Total assets

Net assets

up 30.0% YoY

(Yen)
(%)

Orders received ¥102,840 million
Order backlog ¥16,308 million

up 16.3% YoY(Millions of yen)Orders receivedup

Orders backlog

up 0.5 points YoY

30.3
1,299.29

53,69847,256

102,840

1,117.07

42,539Ratio of ordinary income to net sales (%)

9.8% YoY

up 13.7% YoY

34.7
29.5

3.4 %

YoY change orders received Up ¥12,419 million
YoY change order backlog Up ¥1,462 million

up 4.4 points YoY

up 13.6% YoY

1,520

87,484

978.57

3.8

90,421

2.9

3.4

18,654
12,571

14,34912,689

64th
65th
66th
65th
66th
(FY2011) (FY2012)(FY2012)(FY2013)(FY2013)

64th
65th
66th
(FY2011) (FY2012) (FY2013)-6-

14,846

16,308

66th
64th
65th
64th
65th
65th
(FY2013)(FY2012) (FY2012)(FY2011)(FY2011) (FY2012)

64th
65th
66th
(FY2011) (FY2012) (FY2013)

Financial Highlights
In the fiscal year under review, the Japanese economy followed a track of gradual recovery, benefitting from thegovernment’s economic measures and financial measures. However the slump in overseas economic activity due
to the impact of the US’ curtailment of monetary easing, and uncertainty as to the future outlook of the emerging
economies poses the risk of suppressing economic activity in the Japanese economy, leaving Japan’s economic
outlook uncertain.
In the industrial electronics and mechatronics industries that are serviced by the Sun-Wa Group, signs ofrecovery were observed in the previously sluggish Chinese market. Moreover with rises in smartphone demandand demand related to new energy sources, the environment is becoming more conducive to receiving orders
from the electronic component related and the industrial machinery sectors.
In this environment, the Sun-Wa Group newly started the initiatives of JUMP 1200, its eighth medium-term planin its first year. As a result, the operating results for the fiscal year under review rose significantly higher thanthe previous fiscal year and set new record-highs.

Outlook for the Fiscal Year ending March 31, 2015
In the new fiscal year, we expect economic activity to gradually recovery due to the beneficial effect of thegovernment’s economic measures and fiscal measures, despite risks including a reactive lull in demand
accompanying a rise in the consumption tax, the impact of the US’ curtailment of monetary easing anduncertainty as to the future outlook of the emerging economies. In the semiconductor and the industrial
mechatronics sectors that are serviced by the Sun-Wa Group, we expect to maintain gradual growth on the backof capital investment continuing to improve mainly due to booming demand for smartphones and improved
corporate earnings.
Consolidated earnings forecasts for the year ending March 31, 2015
Net sales¥110,000 million(up 8.5% year-on-year)

Operating income¥3,600 million(up 12.1% year-on-year)

Ordinary income¥3,800 million(up 10.5% year-on-year)

Net income¥2,350 million(up 8.4% year-on-year)

Net income per share¥163.68

Note: Earnings projections are based on information available to the Company as of May 8, 2014. Actual results may differ from the
projections presented here due to various factors.

-7-IV. Business Segment Information
Electrical Machinery

Net Sales¥24,759 million
up ¥2,536 million YoY(Millions of yen)

Proportion of total net sales
sales

24.4%

up

11.4% YoY

24,49522,22224,75964th(FY2011)65th(FY2012)66th(FY2013)The Electrical Machinery Department saw the trend ofincreasing demand related to new energy sources continue and a
sharp increase in sales of control equipment and otherequipment for photovoltaic power generation systems. Also,
there was a trend of increasing sales of motors and otherelectrical equipment used in industrial machinery. However,sales of vacuum chamber robots fell back from the previous
year due to a drop in demand for EL production equipment.

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¥69,643 millionup ¥11,014 million YoY(Millions of yen)

Proportion of total net sales
sales

68.7%

up

18.8% YoY

56,90558,62864th(FY2011)65th(FY2012)

69,643AC servo motors

The Electronics Department saw increases in sales of electronic
components used in the machine tool industry,
automobile-related equipment, POS systems and vending
machines. However, sales of electronic components forinfrastructure equipment in mobile phone base stations werelower compared with the previous year.

66th(FY2013)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¥6,975 million
down ¥437 million YoY(Millions of yen)down 5.9% YoY
8,306

Proportion of total net sales
sales

6.9%

64th
(FY2011)

7,412

6,975

65th
(FY2012)66th(FY2013)

LED light module

The General Machinery Department’s sales were suported byincreased capital investment in some sectors such as theautomobile industry, and it saw an increase in sales for someequipment, such as robots. Overall, however, capital investment
was weak.

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 ¥77,477 million (up ¥8,629 million YoY)

up 12.5% YoY

Operating income ¥2,152 million (up ¥562 million YoY)

74,153

2,442

64th

68,848

1,590

65th

77,477

2,152

66th

In Japan, although capital investment was weak, sales ofcontrol equipment for photovoltaic power generation systems
in the growing new energy market increased, as did sales ofelectronic components for sectors such as the machine tools
industry, automobile-related industry, and POS systems andvending machine industry.

71.4% (FY2011) (FY2012) (FY2013)

Proportion
Proportion ofof total
total net
net sales
sales

Asia

(Millions of yen)
Net sales
Operating income

Net sales ¥26,756 million (up ¥5,232 million YoY)

up 24.3% YoY

Operating income ¥1,021 million (up ¥368 million YoY)
26,756

18,453

21,524

1,021

620

652

64th

65th

66th

In the Asian region, sales of electronic components for PLC,
inverters, servo motors and photovoltaic power generation
systems increased. Sales of electronic components used insmartphone manufacturing equipment, however, declined
temporarily due to inventory adjustments, among otherreasons.

24.5% (FY2011) (FY2012) (FY2013)

Proportion
Proportion ofof total
total net
net sales
sales

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

Operating income ¥26 million (down ¥4 million YoY)

down 3.3% YoY
3,486

3,298

3,191

30

26

65th

66th

231

64th

Proportion
Proportion ofof total net
net sales

Other*In Europe and the United States, sales of electronic
components used in inverters and servo motors increased, but
sales declined for control equipment used in electric power
infrastructure as well as for production equipment andmachinery.

2.6% (FY2011) (FY2012) (FY2013)(Millions of yen)
Net sales
Operating income

Net sales ¥2,686 million (down ¥55 million YoY)

down 2.0% YoY

Operating loss ¥7 million (up ¥11 million YoY)

2,714

(29)

64th

Proportion
Proportion of total net sales

Net sales ¥3,191 million (down ¥107 million YoY)

2,742

(19)

65th

2,686

(7)

* The “Other” segment includes businesses not included inreportable segments, including the operations of somedomestic subsidiaries.

66th

1.5% (FY2011) (FY2012) (FY2013)

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 CORPORATION
Kyoto Branch
Hokuriku Sales Office
Tokyo-Nishi Branch
Tohoku Sales OfficeKita-Kanto Sales Office
Nagano Sales OfficeOsaka Branch
Himeji Sales Office
Fukuoka Branch
Hiroshima Sales Office
Oita Sales Office
Kumamoto Sales Office
Nagasaki Sales Office

Head Office
Tokyo Service Center
Electronics Department
Numazu Sales Office

Nagoya Service Center
Kyushu Service Center

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

Nagoya Branch
Hamamatsu Sales Office
Mikawa Sales Office
Mie Sales Office

SUN-WA TECHNOS（EUROPE）GmbH
Frankfurt

ChicagoGreenville(South Carolina)
SUN-WA TECHNOS AMERICA, INC.

Asia
Tianjin

DalianShenyangSuzhouShanghai
Shanghai Mechatronics Centre
Hangzhou
SUN-WA TECHNOS (SINGAPORE) PTE LTD.
TaipeiTaichung
SUN-WA TECHNOS (H.K.) CO., LTD.
Hanoi
TainanHong Kong
SUN-WA TECHNOS (TAIWAN) CO., LTD.
Hong Kong Logistics Center
SUN-WA TECHNOS (MALAYSIA) SDN. BHD.
Bangkok
SHANGHAI SUN-WA TECHNOS CO., LTD.
Kuala Lumpur
SUN-WA TECHNOS ASIA (THAILAND) CO., LTD.
SUN-WA TECHNOS (SHENZHEN) CO., LTD
Singapore

Shenzhen
Guangzhou

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/eng- 10 -

VII. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets

As of March 31, 2013

As of March 31, 2014

7,433
27,866
3,869
56
0
232
375
(75)

6,937
33,075
4,356
48
0
307
691
(87)

39,75845,3292,551(1,542)

2,559(1,596)

1,008

963

2,636
585
(207)

2,636
573
(198)

378

375

395
(344)

421
(358)

50

63

4,074

4,038

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

42

76

Total intangible assets

4276

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

2,625
847
(92)

3,469
869
(84)

Total investments and other assets

3,381

4,254

Total non-current assets
Total assets- 11 -

7,497

8,369

47,256

53,698(Millions of yen)
As of March 31, 2013
Liabilities
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
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Net defined benefit liability
Total non-current liabilities

As of March 31, 2014

24,784
1,650
600
95
327
843
346

25,917
1,328
1,200
122
921
977
267

28,64830,735

2,486
302
116
739
614
–

2,205
274
408
–
671
749

4,258

4,309

Total liabilities

32,90735,044

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

1,935
1,341
10,437
(53)

2,553
1,958
12,350(53)

13,66016,807

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Total shareholders’ equity

678
(31)

1,207
639

Total accumulated other comprehensive income

646

1,847

Minority interests
Total net assets
Total liabilities and net assets- 12 -

41–

14,34918,65447,256

53,698

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Net sales
Cost of sales

88,26477,295

101,378
88,697Gross profit

10,968

12,680

Selling, general and administrative expenses

8,699

9,469

Operating income

2,269

3,211

3
41
69
112
136

3
47
55
107
158

363

371

55
0
34
–
6
17

49
0
7
16
57
12

114

144

2,519

3,438

–
–

4
37

–

41

0
–

–
1

0

1

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 payable
Loss on sales of accounts receivable
Share issuance cost
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on valuation of membership
Provision of allowance for doubtful accounts
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income- 13 -

2,518

3,478

966
29

1,385
(73)

995

1,311

1,523

2,166

2

(1)

1,520

2,168

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

1,523

2,166

240
269

530
671

510

1,201

Comprehensive income

2,033

3,368

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

2,029
3

3,368
(0)

- 14 -

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2013
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

1,935

1,341

9,173

(53)

12,396

Changes of items during period
Dividends of surplus

(256)

(256)

Net income

1,520

1,520

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

–

–

1,264

(0)

1,264

1,935

1,341

10,437(53)

13,660Minority interests

Total net assets

37

12,571

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of current
period438

Foreign currencytranslation
adjustment(301)

Total accumulated
othercomprehensive
income137

Changes of items during period
Dividends of surplus(256)

Net income

1,520

Purchase of treasury shares
Net changes of items other thanshareholders’ equity

(0)
239

269

509

3

513

Total changes of items during
period

239

269

509

3

1,777

Balance at end of current period

678

(31)

646

41

14,349- 15 -

Fiscal year ended March 31, 2014
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

1,935

1,341

10,437(53)

13,660618

616

Changes of items during period
Issuance of new shares

1,234

Dividends of surplus

(256)

(256)

Net income

2,168

2,168

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders’ equity
Total changes of items during
period

618

616

1,912

(0)

3,146

Balance at end of current period

2,553

1,958

12,350(53)

16,807

Minority interests

Total net assets

41

14,349

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income

678

(31)

646

Changes of items during period
Issuance of new shares

1,234

Dividends of surplus(256)

Net income

2,168

Purchase of treasury shares
Net changes of items other thanshareholders’ equity

(0)
528

671

1,200

(41)

1,158

Total changes of items during
period

528

671

1,200

(41)

4,305

Balance at end of current period

1,207

639

1,847

–

18,654- 16 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

2,518
167
–
110
61
–
(44)
55
66
–

3,478
205
(37)
(739)
4
749
(50)
49
46
(4)

(375)

(4,259)

219
(71)
2,244
(65)
71
(2)

(84)
(279)
273
2
19
65

Subtotal

4,955

(560)

Interest and dividend income received
Interest expenses paid
Income taxes paid

45
(56)
(1,292)

50
(49)
(814)

Net cash provided by (used in) operating activities

3,652(1,374)

(33)
(29)
–
(47)

(36)
(31)
12
(72)

Net cash provided by (used in) investing activities

(110)

(127)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from issuance of common shares
Purchase of treasury shares
Cash dividends paid

(173)
1,286
(1,200)
(71)
–
(0)
(256)

(394)
900
(600)
(114)
1,234
(0)
(256)

Net cash provided by (used in) financing activities

(415)

769

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Gain on bargain purchase
Increase (decrease) in provision for retirement benefits
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable trade
Decrease (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

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Other, net

Effect of exchange rate change on cash and cash equivalents

135

236

Net increase (decrease) in cash and cash equivalents

3,262

(496)

Cash and cash equivalents at beginning of period

3,687

6,949

Cash and cash equivalents at end of period

6,949

6,453

- 17 -

VIII. Corporate Data
Company Information (as of March 31, 2014)
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
812 (consolidated)Fukuoka Building, 2-8-7, Yaesu, Chuo-ku, Tokyo 104-0028,
Japan+81-3-5202-4011
SUN-WA TESCOM CORPORATION
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.
http://www.sunwa.co.jp/eng

Directors and Corporate Auditors (as of June 26, 2014)
Chairman and Representative Director
President and Representative Director
Senior Managing Director
Managing Director
Managing Director
Managing Director
Director
Director
Director
Director
DirectorStanding Corporate Auditor(Outside) Corporate Auditor(Outside) Corporate Auditor(Outside) Corporate Auditor

Masujiro Yamada
Sei Yamamoto
Hiroyuki Tanaka
Hitoshi Fukuda
Masanori Igarashi
Shoichiro Mine
Toshihiko Makino
Kazuya Hanayama
Shinya Murakami
Kiyoshi Goto
Yaeko Tanaka
Shigeru Aoyagi
Isao Ishikawa
Hajime Yasukuni
Jun Kobayashi

Stock Information (as of March 31, 2014)
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
3,587

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
Sompo Japan Insurance Inc.
396
2.75
Masujiro Yamada
392
2.73
JPMCC CLIENT SAFEKEEPING ACCOUNT377
2.63
OMRON Corporation
355
2.47*Note: Share-holding ratio is calculated after deducting the treasury shares (80,570 shares).
Shareholder name- 18 -