Sanden : English translation of Annual Securities Report (for the year ended March 31, 2021)

Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.

Securities Report

(Report based on Article 24, Paragraph 1 of the Financial Instruments and Exchange Act

April 1, 2020 to March 31, 2021

Fiscal year (the 95th)

(Fiscal 2020)

(The English translation of the Securities Report ("Yukashoken Houkokusho")

for the year ended March 31, 2021)

Sanden Holdings Corporation

(E01913)

The 95th Fiscal Year (April 1, 2020 to March 31, 2021)

Securities Report

This document is based on the data used in the Securities Report based on Article 24, Paragraph 1 of the Financial Instruments and Exchange Act, and submitted to the electronic disclosure for Investors' Network (EDINET) prescribed in Article 27, Paragraph 30-2 of the Act. and printed with the table of contents and pages attached.

Sanden Holdings Corporation

Contents

			Page
The 95th (Fiscal 2020) Securities Report
Cover..........................................................................................................................................................................		1
Part I. Company Information ...................................................................................................................................	2
1.	Overview of the Company ...............................................................................................................................	2
	1.	Key financial data and trends ...................................................................................................................	2
	2.	History......................................................................................................................................................	4
	3.	Businesses...............................................................................................................................................	7
	4.	Information of subsidiaries and affiliates ..................................................................................................	9
	5.	Employees ...............................................................................................................................................	12
2.	Business Overview..........................................................................................................................................	13
	1.	Management policy, management environment, and issues to be tackled, etc........................................	13
	2.	Business and other risks ..........................................................................................................................	15
	3. Analysis of financial position, operating results, and cash flows by management....................................	20
	4.	Important business contracts ...................................................................................................................	28
	5.	Research and development activities ......................................................................................................	28
3.	Equipment and Facilities .................................................................................................................................	29
	1.	Overview of capital expenditures .............................................................................................................	29
	2.	Major equipment and facilities..................................................................................................................	29
	3.	Plans for new additions or disposals ........................................................................................................	30
4.	Corporate Information .....................................................................................................................................	31
	1.	Information on the Company's shares......................................................................................................	31
	2. Acquisition of treasury stock.....................................................................................................................	36
	3.	Dividend Policy ........................................................................................................................................	37
	4.	Corporate Governance.............................................................................................................................	38
5.	Financial Information .......................................................................................................................................	65
	1.	Consolidated financial statements ...........................................................................................................	66
	2.	Non-consolidated financial statements.....................................................................................................	112
6.	Information on Transfer and Repurchase of the Company's Stock .................................................................	132
7.	Reference Information on the Company..........................................................................................................	132
	1.	Information on the parent company of the submitting company...............................................................	132
	2.	Other reference information .....................................................................................................................	133
Part II. Information on Guarantors for the Company ...............................................................................................	135

【Cover】

【Document Submitted】

【Article of the Applicable Law Requiring Submission of This Document】

【Filed to】

【Date of Submission】

【Business Year】

【Company name】

【Position and Name of Representative】

【Address of headquarters】

【Phone No.】

Securities Report ("Yukashoken Houkokusho")

Article 24, Paragraph 1 of the Financial Instruments and Exchange Law

Director, Kanto Local Finance Bureau

June 24, 2021

The 95th Fiscal Year (April 1, 2020 to March 31, 2021)

Sanden Holdings Corporation

Katsuya Nishi, Representative Director

20 Kotobuki-cho, Isesaki- shi, Gunma, Japan

Isesaki: [phone]

【Contact for Communications】Toru Akima, Director & General Manager of Finance & Accounting Division

【Nearest Contact】	10th Floor, Akihabara Daibiru Building, 1-18-13 Soto Kanda, Chiyoda-ku,
	Tokyo, Japan
【Phone No.】	Tokyo: [phone]

【Contact for Communications】Toru Akima, Director & General Manager of Finance & Accounting Division

【Place Where Available for	Tokyo Stock Exchange, Inc.
Public Inspection】	(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo)

―1―

Part I. Company Information

1. Overview of the Company

1. Key financial data and trends

1. Consolidated financial data

Fiscal Year		91st	92nd	93rd	94th	95th
		March 31,	March 31,	March 31,	March 31,	March 31,
Year ended		2017	2018	2019	2020	2021
		(FY2016)	(FY2017)	(FY2018)	(FY2019)	(FY2020)
Net sales	Millions	282,061	287,609	273,934	204,880	137,477
of yen
Ordinary income (loss)	Millions	(2,262)	4,411	564	(9,735)	(23,237)
of yen
Net income (loss) attributable to	Millions	(22,488)	4,255	(23,060)	2,287	(45,251)
owners of parent	of yen
Comprehensive income	Millions	(24,232)	1,884	(27,070)	335	(41,189)
of yen
Net assets	Millions	49,159	50,957	23,538	22,699	(16,956)
of yen
Total assets	Millions	280,194	275,649	246,401	187,559	155,081
of yen
Net assets per share	Yen	1,576.34	1,633.99	685.04	747.92	(664.58)
Net income (loss) per share	Yen	(814.10)	154.00	(833.58)	82.54	(1,630.38)
Diluted net income per share	Yen	-	-	-	-	-
Capital adequacy ratio	(%)	15.5	16.4	7.7	11.1	(11.9)
Return on equity	(%)	(39.6)	9.6	(71.9)	11.5	-
Price earnings ratio	Times	-	9.9	-	4.4	-
Cash flows from operating	Millions	10,048	7,140	3,043	7,219	3,234
activities	of yen
Cash flows from investing	Millions	(10,371)	4,093	(11,362)	28,452	(5,661)
activities	of yen
Cash flows from financing	Millions	(2,479)	(6,536)	2,679	(24,677)	(3,632)
activities	of yen
Cash and cash equivalents at the	Millions	14,040	18,776	13,030	23,711	18,203
end of the year	of yen
Number of employees [outside of		10,613	10,106	9,628	6,509	6,246
which, average number of	Persons	(2,785)	(3,034)	(3,055)	(2,051)	(2,278)
temporally employees]

Notes: 1. Consumption taxes (refer to consumption tax and local consumption tax and the same applies hereinafter) are not included in net sales.

1. Diluted net income per share for the 92nd and 94th fiscal years (fiscal 2017 and 2019) are not stated because there was no dilutive share. Diluted net income per share for the 91st, 93rd and 95th fiscal years (fiscal 2016, 2018 and 2020) are not stated because net loss per share was reported and there was no dilutive share.
2. In calculating the net assets per share, the Company shares held by the executive compensation Board Incentive Plan (BIP) Trust are included in the treasury stock deducted from the total number of issued shares at the end of the term. In calculating the net income per share or net loss, it is included in the number of treasury stock to be deducted in the calculation of the average number of common shares during the term.
3. As of October 1, 2017, company shares are consolidated at a ratio of one out of every five common shares. Net assets per share, net income per share or net loss and diluted net income per share are calculated, assuming that the share consolidation took place at the beginning of the 91st fiscal year (fiscal 2016).
4. Return on equity for the 95th fiscal year (fiscal 2020) is not stated because liabilities exceeded assets.
5. Partial revision of 'Accounting Standards for Tax Effect Accounting'" (Corporate Accounting Standard No. 28, issued on February 16, 2018), etc. have been applied from the beginning of the 93rd fiscal year (fiscal 2018). The major management indicators, etc. for the 92nd fiscal year (fiscal 2017) are the indicators after applying the relevant accounting standards retroactively.

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