For the Fiscal Year Ended March 31, 2017

Annual Select® 2017

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

65th fiscal year

66th fiscal year

67th fiscal year

68th fiscal year

69th fiscal year

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

From April 1, 2016
to March 31, 201788,264

101,378

111,276

105,748

116,611

2,519

3,438

3,761

2,645

3,215

1,520

2,168

2,466

1,690

1,584

2,033

3,368

3,642

713

2,142

14,34918,654

21,951

22,26323,63747,256

53,69858,74855,43964,816

1,117.07

1,299.29

1,529.00

1,550.73

1,705.66

118.71

162.98171.83117.76113.64

–

–

–

–

–

30.3

34.7

37.4

40.2

36.5

11.3

13.2

12.2

7.6

6.9

6.8

5.3

6.8

6.0

9.9

3,652

(1,374)

1,353

(60)

1,679

(110)

(127)

(444)

(384)

(235)

(415)

769

(470)

(654)

(818)

6,949

6,453

7,100

5,875

6,275

784

812

841

857

888

(Millions of yen)

Ordinary profit(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.

Net sales does not include consumption taxes.
Diluted earnings per share is not provided since there are no potential shares.

-1-II. Message
Implementing Challenge 1500 reliably through concerted Group effort to generateunique added value
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.
Our operating results for the year ended March 31, 2017, serve
to sum up the first year of our ninth medium-term management
plan, Challenge 1500. Despite a difficult start in the first half ofthe year, our results were ultimately largely on-target for theplan’s first year. This was primarily due to soaring personnel
expenses driven by yen depreciation and upturns in both theJapanese and Chinese markets as a result of increased demand
for factory automation reflecting such factors as growth in thesemiconductor industry in the second half of the year.

Sei Yamamoto
Chairman 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.

Steadily pursuing our unique strategies to reinforce core businesses
In April 2017, Sun-Wa Technos Corporation radically restructured its organization. First, we merged oursales departments of electrical machinery and general machinery into the FA Systems Sales Department.
This reinforces our efforts to integrate our machinery and electrical operations and gives us the structural
capability to supply an appropriate, broad, and comprehensive range of products and up-to-date production
systems in response to changing and diversifying market needs in Japan and overseas. Meanwhile, theestablishment of our Yokohama branch (upgraded from a sales office) serves to strengthen our composite
businesses in the electrical machinery, electronics, and general machinery fields for customers in
Kanagawa Prefecture and eastern Shizuoka Prefecture with a focus on the customer-centric,
community-based services we have traditionally provided. The establishment of our Nagoya office(upgraded from a branch) aims to strengthen our organizational base to enhance our ability to address
individual markets and customers in response to the expanding size of the market and increasingly diverseand specialized needs in the Nagoya area.
Based on this network capacity, we are using robust organizational collaboration to develop our own
unique applications that anticipate market trends as they shift from the tangible (products) to the intangible(capabilities). In doing so, we aim to reinforce our core business of expanding sales for the diverse range ofoutstanding products made by the manufacturers who are our main suppliers.
One of the strategies designed to realize that aim is the strengthening and further development of ourengineering business. Most recently, we have provided robotic systems for the food, healthcare, agricultural
sectors and for the assembly processes of manufacturers of assembled products, in addition to the usual
production sites. Overseas, we won new business including installation and wiring work for electrical
products to be performed on-site in South Korea, based on an order from a manufacturer of organic EL
manufacturing devices for the South Korean market. Looking ahead, we intend to further increase thenumber of engineers we employ and strengthen our cross-organizational teamwork to generate new ideas
and business models. We will take responsibility for the management of entire projects by cooperating with
the SI (System Integration) companies that are our suppliers and partners.
As for another strategy, our global SCM solutions, each base will discover and procure the most suitableproducts and deliver them quickly all over the world based on the assumption of the independence and-2-strengthening group capabilities of the 25 overseas bases we have built up since establishing our Singapore
base in 1995. We will integrate sales and operations to improve our services, extending our Japan-based
quality control system, and adopting an EMS (Electronics Manufacturing Service) business model tofurther reinforce the network linking our bases. We are also conducting research on the promising Indian
market with a view to establishing a base there in future.

Cultivating growth markets by sharing up-to-date technical information throughout the GroupAs for growth markets, we are already active in sectors including the environment, food, healthcare, andagriculture. In addition, we are witnessing increasing demand for improved transparency in production andother areas through use of IoT (the Internet of Things) as part of the process of enhancing innovation andefficiency in manufacturing. We intend, therefore, to share up-to-date technical information and businessstrategies with the manufacturers who are our core suppliers. This will enable us to provide customers with
up-to-date information on IoT and other technologies as a selling point to persuade them to choose us, andultimately, to secure orders. We will take advantage of the diverse range of products available fromapproximately 1,900 manufacturers who supply us to roll out our unique offerings incorporating
information technology, including automation technologies and software for robotics and otherapplications.
We are currently investing effort in exhibiting at a variety of trade shows that serve as opportunities forproviding sales support by providing customers with such new technical information. We aim to further
enhance our corporate value by having cross-company teams comprising sales personnel, systems
engineers, and technical experts propose solutions using a range of methods, from explanations of
up-to-date technologies to demonstrations using actual machinery. Furthermore, we have spent the past
year revamping our sales support system based on SFA (Sales Force Automation) to enable us to integrate
and visualize previously unconnected information on sales activities and negotiations within a centralcompany-wide system. We will continue utilizing information technologies of this type to enable all Group
employees to work together to offer pioneering technology proposals and pursue sales activities.

Implementing measures for the plan’s second year reliably, guided by our basic policies
One of the basic policies articulated under Challenge 1500 is refining the Sun-Wa global network.
Accordingly, during the second year of the plan, we are going one step beyond collaboration using our
network of 25 overseas bases. We are now no longer classifying our customers or markets as either
domestic or overseas; instead, we will enhance our services for customers by strengthening our capacity to
manage the Group as a single entity headquartered in Japan in order to ensure consolidated operation of thebusiness.
Current measures to this end include adopting a global key account system and reinforcing our efforts tointroduce reliable products and make technology proposals across all factories operated by our globally
operating customers by giving the head office (the FA Systems Sales Department) a central role in it. We
are also utilizing the information-gathering capacities of our overseas bases to source the optimal products
our customers require from across multiple countries and regions. In this way, we are enhancing the valueof our global SCM solutions that candeliver products all over the world in atimely manner.
We are matching initiatives such asthese to the engineering business weare currently seeking to expand as anindependent technology trading
company. This will enable us to refine
our global network by building abusiness base capable of implementing
our business strategies in an integrated
way throughout Japan and overseas.

-3-

Rising to the challenge of realizing our vision for 2025 with new management system
In tandem with implementing business strategies such as these, we are also taking active steps to reform
our corporate culture. In light of initiatives by the Japanese government’s Council for the Realization ofWork Style Reform and our major suppliers, we are reviewing and improving our established work
methods and structures with a view to developing our new, distinctive corporate culture and employee
mindset. Evidence of this is seen in the launch of entities such as the Kaizen Promotion Office, which
focuses on facilitating optimal work-life balance and promoting diversity, and the Eco New Life Support
Department which increases opportunities for female employees to participate actively in making proposals
for lifestyle-related products such as AEDs (Automated External Defibrillators). Recently, Sun-Wa
Technos Corporation earned official recognition by the governor of Tokyo as a Tokyo company committed
to work style reform for clearly demonstrating both internally and externally its determination to seriously
address reform. Looking ahead, we intend to further instill this work style reform throughout the Group.
At the same time, we are cultivating the human resources fundamental to the operation of our business.
Based on the one-on-one on-the-job training inspired by our corporate philosophy of nurturing the humantalent, we have introduced fragmented, specialized training programs reflecting the increasing diversity ofwork tasks and skills required, and these programs are already being implemented in each department andbranch. Going forward, we aim to systematize our training across the entire Group to provide a training
system that can teach and nurture our employees from multiple perspectives. Recently, an increasing
number of employees have outstanding language skills; we therefore intend to use our company-widetraining structure to also cultivate human resources with a global outlook, with the ultimate aim ofrevamping our personnel system and the way we rotate employees.
With the SUN-WA VISION 2025, Sun-Wa Technos Corporation set out the type of entity it should strive
to be in 2025. The first stage in realizing that vision is to make solid progress with implementing Challenge
1500, which targets ¥150 billion of net sales on the 70th anniversary of the Company’s founding, while thesecond stage is the robust implementation of our tenth medium-term management plan. In order to ensureboth these stages are accomplished, we resolved in May 2017 to appoint a new president and representative
director. Going forward, our new president, Hiroyuki Tanaka, and our young executives will take the leadin formulating the next medium-term management plan targeting the 100th anniversary of the Company’s
founding, as the entire Group forges ahead in unison to further enhance its corporate value. We lookforward to the continued support of our shareholders as Sun-Wa Technos Corporation goes on to meet thechallenges to come.

♦ Progress
Net Sales

Ordinary Profit(Millions of yen)

(Millions of yen)
Forecast

ActualTargetActualForecast

Ta rget

4,500

137,000
126,000
3,700

117,000
126,000
116,611

3,000

3,450

3,215

FY2016FY2016(69th Fiscal Year)(69th)FY2018FY2017FY2017FY2018(70th Fiscal Year) (71st Fiscal Year)(70th)FY2016FY2016(69th Fiscal Year)(71th)(69th)-4-

FY2018FY2017FY2017FY2018(70th Fiscal Year) (71st Fiscal Year)(70th)(71th)

Message from the New Company President
Targeting a vibrant company by boldly anticipating change
I would like to thank our shareholders for the support you
have given us to date. I have taken over the post of
President and Representative Director of Sun-Wa Technos
Corporation on June 28, 2017.
I am humbled to be taking on such an important role, andam keenly aware of the weight of responsibility thatcomes with it. Our Chairman, Sei Yamamoto, successfully
developed the Company’s human and organizational
business base, as well as its business strategies, with theaim of achieving our long-term vision, SUN-WA VISION
2025. Having inherited these assets, I intend to continue
aiming high as we strive to be an inspirational and vibrantcompany.
Above all, I am committed to successfully accomplishing
our ninth medium-term management plan, Challenge
1500, now under way.
Hiroyuki Tanaka
President and Representative Director

I am aware that our current business environment isextremely favorable, and it is precisely because we are inthis situation that I intend to avoid taking a defensive
position, and will instead boldly anticipate change androbustly implement a diverse range of measures to meet
our shareholders’ expectations.
As always, your continued support and encouragement
would be greatly appreciated.

-5-

III. Financial Highlights
Net Sales¥116,611 millionup ¥10,863 million YoY

up

10.3% YoY

up

down ¥106 million YoY

up ¥570 million YoY

up ¥569 million YoY(Millions of yen)

Year end¥1,584 million¥3,215 million¥3,014 million(Millions of yen)

Year end

Profit Attributable to Ownersof Parent

Ordinary Profit

Operating Profit

up

23.3% YoY

(Millions of yen)

Yea r end

(Millions of yen)

Year end

down 6.3% YoY

21.6% YoY

3,761

111,276

116,611

3,471

105,748

3,215

3,014

2,466

2,645

2,444

1,690

1,584

67th
68th
69th
(FY2014) (FY2015) (FY2016)

67th
68th
69th
(FY2014) (FY2015) (FY2016)

67th
68th
69th
(FY2014) (FY2015) (FY2016)

67th
68th
69th
(FY2014) (FY2015) (FY2016)

Total Assets / Net Assets

Net Assets per Share /Equity Ratio

Orders Received / Order Backlog

Ratio of Ordinary Profit
to Net Sales

Total assets ¥64,816 million
Net assets ¥23,637 million
YoY change total assets Up ¥9,376 million
YoY change net assets Up ¥1,374 million

Net assets per share ¥1,705.66
Equity ratio
36.5%
Net As s ets per Share
Equi ty Ratio(Millions of yen)
Total assetsup

Net a ssets

6.2% YoY

10.0%

YoY cha nge orders received
YoY cha nge orders backlog

YoY

64,81637.4
1,529.00

55,43940.2
1,550.73

2.8 %Up ¥16,185 mi llion
Up ¥4,251 mi llion(Millions of yen)Orders received

Orders backlog

Ratio of ordinary profit to net sales (%)

up 15.5% YoY

down 3.7 points YoY

up 16.9% YoY
58,748

up

(Yen)
(%)

Orders received ¥120,863 million
Order backlog ¥20,839 millionup

up 25.6% YoY

0.3 points YoY

1,705.66
120,863

112,624

36.5

104,678

3.4
2.8
2.5
21,951

22,26323,637

17,656

67th
68th
69th
(FY2014) (FY2015) (FY2016)

67th
68th
69th
(FY2014) (FY2015) (FY2016)-6-

16,587

20,839

67th
68th
69th
(FY2014) (FY2015) (FY2016)

67th
68th
69th
(FY2014) (FY2015) (FY2016)

Financial highlights
In the fiscal year under review, the Japanese economy followed a gradual recovery track. This reflected
signs of improvement in corporate earnings, as well as employment and income conditions, on the back ofcontinuous, effective economic measures by the government. However, the issue of the United Kingdom’s
withdrawal from the EU and the increased unpredictability of policy management by the new US
administration make it difficult to determine the economic outlook.
In the industrial electronics and mechatronics industries serviced by the Sun-Wa Group, theautomobile-related business is continuing to perform favorably. Moreover, demand in the field ofsmartphones within the Chinese market is firm, and encouraging signs are starting to appear in thesemiconductor-related and industrial machinery industries.
In this environment, the Sun-Wa Group launched new measures in the first year of its ninth medium-term
management plan (Challenge 1500). During the fiscal year under review, we added engineering capabilities
and global SCM solutions that support enhanced innovation in manufacturing to our core businesses
incorporating up-to-date technology and outstanding product information in the electrical machinery,electronics, and general machinery fields. Consequently, our efforts to generate new value as anindependent technology trading company with global operations proved effective.
As a result, the operating results for the fiscal year under review exceeded the previous year’s results fornet sales, operating profit, and ordinary profit. However, profit attributable to owners of parent fell short ofthe previous year’s result due to the posting of extraordinary losses (impairment loss on non-current assets).

Outlook for the Fiscal Year ending March 31, 2018
In the new fiscal year, the outlook is expected to remain unclear, reflecting such factors as prolonged
economic stagnation in developing countries and increasing concerns over the unpredictability of US andEuropean government policies. However, we predict that the economy will stay on a recovery track due tothe economic measures supporting demand within Japan and increased capital investment accompanying
improved corporate earnings, among other factors.

Consolidated earnings forecasts for the year ending March 31, 2018
Net sales¥126,000 million(up 8.1% year-on-year)

Operating profit¥3,200 million(up 6.2% year-on-year)

Ordinary profit
Profit attributable to ownersof parent
Basic earnings per share¥3,450 million(up 7.3% year-on-year)¥2,150 million(up 35.7% year-on-year)¥155.14

Note: Earnings projections are based on information available to the Company as of May 10, 2017. Actual results may differ from the
projections presented here due to various factors.

-7-IV. Business Segment Information
Electrical Machinery

Net Sales¥20,736 millionup ¥1,667 million YoY(Millions of yen)up

8.7% YoY

22,660

Proportion of total
total net sales
sales

17.8%

67th
(FY2014)19,06920,73668th(FY2015)

69th(FY2016)

The Electrical Machinery Department saw an increase in salesof electrical products used in FPD (Flat Panel Display)-relatedindustries, semiconductor-related industries and the industrial
machinery industry. However, sales of control equipment forphotovoltaic power generation systems decreased.

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¥85,819 million
up ¥8,225 million YoY(Millions of yen)

Proportion of total
total net sales

73.6%

up

10.6% YoY

80,47377,59367th(FY2014)

68th(FY2015)

AC servo motors

The Electronics Department saw increases in sales of electronic
components used in automobile-related industries and the likeas well as the industrial machinery industry, and sales ofelectronic components for FA equipment used in FPD-relatedindustries.

85,81969th(FY2016)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¥10,055 million
up ¥970 million YoY

LED light module

The General Machinery Department saw increases in sales of
production equipment for the industrial machinery industry andsales of equipment used in FPD-related industries, but sales ofequipment for the household fixtures industry declined.

(Millions of yen)

up
8,141

Proportion ofof total net sales
sales

8.6%

67th
(FY2014)

10.7% YoY
9,084

10,05568th(FY2015)

69th(FY2016)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(Millions of yen)
Net sales
Operating profitJapan

up 15.3%YoY
81,7492,128

67th

Proportion
Proportion ofof total
total net
net sales
sales

71.3% (FY2014)

Asia

92,213Operating profit ¥2,165 million (up ¥585 million YoY)

79,995
2,165

1,580

68th
(FY2015)

69th(FY2016)

There were increases in sales of electronic components forautomobile-related industries, electrical products for
FPD-related industries, electronic components and equipment
for FA equipment, electrical products, electronic components
and production equipment for the industrial machineryindustry, and electrical products for the semiconductor
industry. However, sales decreased for control equipment forphotovoltaic power generation systems and equipment for thehousehold fixtures industry.

(Millions of yen)
Net sales
Operating profit

Net sales ¥29,896 million (down ¥201 million YoY)

down 0.7% YoY

Operating profit ¥816 million (down ¥37 million YoY)

33,01430,09729,896

853

816

68th

69th

1,260

67th

Proportion ofof total net sales

Net sales ¥92,213 million (up ¥12,217 million YoY)

Sales of electronic components for the electrical equipment
industry and electrical products and certain electronic
components for the industrial machinery industry increased,
but sales of electronic components used in the amusement
field decreased.

23.6% (FY2014) (FY2015) (FY2016)

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

Net sales ¥6,323 million (up ¥2,637 million YoY)

up 71.6% YoY

Operating profit ¥14 million (up ¥11 million YoY)
6,323

3,431
87

3,685

14

2

Proportion of total net sales

Other*

4.2%

67th(FY2014)

68th(FY2015)

69th(FY2016)(Millions of yen)
Net sales
Operating profit

Net sales ¥1,689 million (down ¥246 million YoY)

down 12.7% YoY

Operating profit ¥25 million (up ¥27 million YoY)

2,559
1,935

Proportion
Proportion of total net sales

In Europe and the United States, there were increases in salesof electronic components used in the amusement field,
production equipment for the industrial machinery industry
and electrical products for FPD-related industries. However,sales of electrical products and electronic components for theindustrial machinery industry decreased.

(11)

(1)

67th

68th
(FY2015)

0.9% (FY2014)

1,689
25

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

69th(FY2016)

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 Branch

FA Systems Sales Dept.

Himeji Sales OfficeElectronics Dept.

Fukuoka BranchTokyo Service Center

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

Yokohama Branch
Numazu Sales Office

Nagoya Service Center

Kyushu Service Center

Automotive Electronic
Components Sales Dept.

Nagoya Office

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

Sales Dept. I

Sales Dept. II

Mikawa Sales OfficeHamamatsu Sales Office
Mie Sales Office

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.

http://www.sunwa.co.jp/- 10 -

VII. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

6,359
33,006

6,759
34,141

1,548

7,027

5,170
0
219
644
(91)
46,857

6,071
25
363
1,227
(108)
55,5072,475(1,511)
963
2,420
702
(392)
309
444
(350)
93
3,788

2,336
(1,566)
769
1,971
699
(493)
206
463
(354)
109
3,056

240
240

222
222

3,518
4
1,123
(93)
4,553
8,581
55,439

4,900
4
1,215
(88)
6,030
9,309
64,816

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
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, 2016

As of March 31, 2017

24,732
–
1,417
–
900
147
274
806
–
412
28,691

17,85813,324
1,289
1,200
–
95
675
1,284
67
801
36,596

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

–
2,300
129
602
613
68
868
4,581
41,1782,553
1,958
15,761(54)
20,217

2,553
1,958
16,950(427)
21,034

1,148

2,134

897
2,045
22,26355,439468
2,603
23,63764,816

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accrued expenses
Provision for non-current assets removal cost
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Long-term accounts payable - other
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, 2016
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of membership
Provision for removal expenses of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Fiscal year ended
March 31, 2017

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

116,611
102,356
14,255
11,240
3,014

22
74
53
115
161
428

19
72
54
113
128
388

43
12
149
22
227
2,645

41
4
11
110
19
187
3,215

–
–

36
36

–

94

–

–
–

660
13

0

–

–

67
740
2,511
1,108
(180)
927
1,584
1,584

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

- 13 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2016
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, 2017

1,690

1,584

(703)
(273)
(976)

(428)

986

713

557
2,142

713

2,142

–

–

(3) Consolidated Statements of Changes in Equity
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- 15 -

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
period2,553

Capital surplus

Retained earnings

1,958

15,761

Treasury shares(54)

Total shareholders’equity20,217

Changes of items during period
Dividends of surplus

(395)

(395)

Profit attributable to ownersof parent

1,584

1,584

Purchase of treasury shares

(372)

(372)

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

–

–

1,189

(372)

816

2,553

1,958

16,950(427)

21,034

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of current
period1,148Foreign currencytranslation
adjustment
897

Total accumulated
othercomprehensive
income2,045

Total net assets

22,263

Changes of items during period
Dividends of surplus(395)

Profit attributable to ownersof parent

1,584

Purchase of treasury shares(372)

Net changes of items otherthan shareholders’ equity

986

(428)

557

557

Total changes of items during
period

986

(428)

557

1,374

Balance at end of current period

2,134

468

2,603

23,637- 16 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
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 investment securities
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
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities
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
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, 2017

2,550
267
–
161

2,511
311
660
(130)

53

12

(97)
43
(16)
–
94

(92)
41
3
(23)
–

282

(7,018)170
175(1,079)(599)(2,500)

6,785

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

0
921
70
2,376
92
(41)
(747)
1,679

(194)
117
(32)
–
(274)
(384)

(139)
–
(31)
95
(160)
(235)

–
1,200
(1,320)
(131)
(0)
(401)
(654)

(101)
1,100
(900)
(149)
(372)
(395)
(818)

(125)

(224)

(1,225)
7,100
5,875

400
5,875
6,275

VIII. Corporate Data
Company Information (as of March 31, 2017)
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
888 (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.
SUN-WA TECHNOS (VIETNAM) CO., LTD.
http://www.sunwa.co.jp/

Officers (as of June 28, 2017)
Chairman and Representative Director
President and Representative Director
Director and Senior Adviser
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

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

Stock Information (as of March 31, 2017)
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
3,193

Number of shares held
Share-holding ratio (%)(Thousands)
YASKAWA Electric Corporation
797
5.75
The Dai-ichi Life Insurance Company, Limited
729
5.26
Japan Trustee Services Bank, Ltd. (Trust Account)548
3.96
Origin Electric Co., Ltd.
498
3.59
Okuma Corporation
435
3.14
Masujiro Yamada
396
2.86
Resona Bank, Limited
395
2.85
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
395
2.85
OMRON Corporation
355
2.56
The Master Trust Bank of Japan, Ltd. (Trust Account)283
2.04*Note: Share-holding ratio is calculated after deducting the treasury shares (579,533 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 -