Sanwa : 〔Delayed〕Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (J-GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results

for the Three Months Ended June 30, 2022 (J-GAAP)

				July 29, 2022
Listed Company Name: Sanwa Holdings Corporation		Listing: Tokyo Stock Exchange
Securities Code:	5929	URL https://www.sanwa-hldgs.co.jp/english/
Representative:	Yasushi Takayama, Representative Director, President
Contact:	Katsumi Fujii, General Manager, Corporate Planning Department	Tel.: [phone]
Scheduled Date to Submit Quarterly Securities Report: August 10, 2022
Scheduled Date to Start Dividend Payment:	-
Preparation of Results Briefing Materials:	Yes
Holding of Financial Results Briefing:		None

(Amounts of less than one million yen have been truncated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

Three Months Ended June

118,957

19.9

4,880

30.5

3,938

5.6

2,575

6.5

30, 2022

Three Months Ended June

99,186

19.7

3,739

984.5

3,728

-

2,419

-

30, 2021

Note: Comprehensive income

Three Months Ended June 30, 2022:

9,665 million yen

( 56.2%)

Three Months Ended June 30, 2021:

6,188 million yen

( -%)

Earnings per share

Diluted earnings per share

Yen

Yen

Three Months Ended June

11.66

11.63

30, 2022

Three Months Ended June

10.95

10.93

30, 2021

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

％

As of June 30, 2022

400,057

208,818

51.8

As of March 31, 2022

386,237

203,311

52.2

Reference: Shareholders' equity

As of June 30, 2022:

207,100 million yen

As of March 31, 2022:

201,649 million yen

2. Dividends

Full-year dividend

First

Second

Third

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

−

17.00

−

19.00

36.00

March 31, 2022

Fiscal year ending

−

March 31, 2023

Fiscal year ending

25.00

−

25.00

50.00

March 31, 2023 (Forecast)

Note: Revision of dividends forecast since last announcement: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit		Profit attributable	Earnings per
			to owners of parent	share
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
First half	261,000		20.6	20,000	39.3	18,000		29.2	12,000	31.4	54.31
Full year	545,000		16.2	45,000	26.8	42,000		23.1	28,000	22.6	126.74

Note: Revision of consolidated results forecast since last announcement: Yes

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation): None

New: ―Excluded: ―

(2) Application of special accounting treatments in preparing quarterly consolidated financial statements: Yes

Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly Consolidated Financial Statements (Application of Accounting Treatments Specific to the Preparation of Quarterly Consolidated Financial Statements)" on page 7 of the attached materials.

1. Changes in accounting policies, accounting estimates, and retrospective restatements
2. 1. Changes in accounting policies in accordance with revision of accounting standards: Yes
   2. Changes in accounting policies other than item 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None

Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 7 of the attached materials.

1. Number of shares issued (common stock)
2. 1. Number of shares issued at the end of the period (including treasury shares)

	As of June 30, 2022	231,000,000 shares
	As of March 31, 2022	231,000,000 shares
2)	Number of treasury shares at the end of the period
	As of June 30, 2022	10,027,237 shares
	As of March 31, 2022	10,063,915 shares
3)	Average number of shares during the period
	April−June 2022	220,945,204 shares
	April−June 2021	220,892,219 shares

The quarterly review procedure by a certified public accountant or an auditing firm does not apply to this Summary of Consolidated Financial Results.

Explanation regarding appropriate use of results forecast and additional notes

(Earnings forecasts and other forward-looking statements)

This document includes projections based on assumptions, forecasts, and plans for the future that are available on the day of its publication, and actual results may differ from the forecast figures stated in the document due to various risk factors and uncertainties. For further details regarding the earnings forecasts, please see "1. Qualitative Information regarding Financial Results for the Three Months Ended June 30, 2022, (3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements" on page 2 of the attached materials.

(Supplementary presentation materials for the quarterly results)

Supplementary materials for the quarterly results will be posted on the Company's website, along with a summary of the quarterly financial results report.

Contents of the Attachment

1. Qualitative Information regarding Financial Results for the Three Months Ended June 30, 2022…………. 2

1. Explanation of Operating Results……………………………………………………………………………… 2
2. Explanation of Financial Position……………………………………………………………………………… 2

(3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements………………	2
2. Quarterly Consolidated Financial Statements and Primary Notes……………………………………………	3

1. Quarterly Consolidated Balance Sheets……………………………………………………………………… 3

(2)	Quarterly Consolidated Statements of Income and Comprehensive Income……………………………	5
(3)	Notes to Quarterly Consolidated Financial Statements……………………………………………………	7
	(Notes on the Going Concern Assumption)…………………………………………………………………… 7
	(Notes on Significant Changes in the Amount of Shareholders' Equity)……………………………………	7
	(Application of Accounting Treatments Specific to the Preparation of Quarterly Consolidated Financial	7
	Statements)………………………………………………………………………………………………………
	(Changes in Accounting Policies)………………………………………………………………………………	7
	(Additional Information)…………………………………………………………………………………………	7
	(Segment Information, etc.)……………………………………………………………………………………	8

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1. Qualitative Information regarding Financial Results for the Three Months Ended June 30, 2022

1. Explanation of Operating Results

During the three months ended June 30, 2022, the external environment surrounding the Group saw a recovery in the economy as measures to combat COVID-19 continued and economic activity moved toward normalization. Meanwhile, the tight supply and demand following rapid recovery in economic activity continued to have an impact due to price hikes of raw materials, supply shortages of parts and materials, and supply chain disruptions. Accordingly, the outlook remained uncertain due to concerns about the risk of an economic downturn caused by accelerating inflation and monetary tightening such as higher interest rates, the prolonged situation in Ukraine, and the impact of restrained economic activity in China.

Amid this environment, the Sanwa Group launched its long-term management vision, Sanwa Global Vision 2030, and the Mid-Term Management Plan 2024, and worked to establish the foundation to become a global leader in smart entrance solutions that meet the changing needs of society due to climate change and digitalization.

To expand and strengthen core businesses at Japan, North America, and Europe, we expanded our non- residential business by enhancing our product lineup and proposal capabilities, and our residential business and service business by differentiating our products and expanding our sales channels. To strengthen a basis for growth of the Asian business, we reorganized our sales structure in China, expanded our business through the operation of the Changshu Plant in China, and renovated production facilities at our main plants in Vietnam and other countries. To expand products for disaster prevention and climate change response and enhance smart products and services, we strived to expand waterproof products, wind-resistant products, and IoT and connectivity products. To increase productivity through digitalization and manufacturing innovation, we promoted system integration between manufacturing, sales, and engineering, as well as the digitalization of internal operations, and investment in the automation of production facilities. To enhance sustainability management, we set KPIs linked to ESG materiality and worked toward the realization of a sustainable society by reducing CO2 emissions and water consumption.

As a result, net sales for the three months ended June 30, 2022 amounted to ¥118,957 million, a 19.9% year-on- year increase. In terms of profits, operating profit amounted to ¥4,880 million, a 30.5% year-on-year increase, ordinary profit amounted to ¥3,938 million, a 5.6% year-on-year increase, and profit attributable to owners of parent amounted to ¥2,575 million, a 6.5% year-on-year increase.

1. Explanation of Financial Position
   (Assets, Liabilities, and Net Assets)
   As of June 30, 2022, total assets increased by ¥13,820 million from the end of the previous fiscal year, to ¥400,057 million, due mainly to an increase in inventories. Liabilities increased by ¥8,313 million from the end of the previous fiscal year, to ¥191,238 million, due mainly to an increase in trade payables. Net assets increased by ¥5,506 million from the end of the previous fiscal year, to ¥208,818 million, due mainly to an increase in foreign currency translation adjustment.
   As a result, the shareholders' equity ratio rose by 0.4 points from the end of the previous fiscal year to 51.8%.
2. Explanation of Consolidated Results Forecasts and Other Forward-looking Statements

The consolidated results forecasts for the fiscal year ending March 31, 2023 have been revised from those announced on May 13, 2022. For details, please refer to the "Notice of Revision of Results Forecast and Dividends Forecast" released today (July 29, 2022).

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2. Quarterly Consolidated Financial Statements and Primary Notes

1. Quarterly Consolidated Balance Sheets

		(Millions of yen)
	As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	52,897	54,139
Notes and accounts receivable - trade, and	98,000	91,608
contract assets
Electronically recorded monetary claims -	11,116	11,230
operating
Securities	9,000	8,054
Merchandise and finished goods	17,571	19,911
Work in process	11,549	17,201
Raw materials	34,557	39,400
Other	5,123	8,899
Allowance for doubtful accounts	(2,335)	(2,842)
Total current assets	237,480	247,602
Non-current assets
Property, plant and equipment
Buildings, net	23,748	24,221
Land	22,304	22,502
Other, net	28,914	29,970
Total property, plant and equipment	74,967	76,694
Intangible assets
Goodwill	10,789	10,741
Other	18,783	19,864
Total intangible assets	29,573	30,605
Investments and other assets
Investment securities	28,756	29,600
Retirement benefit asset	7,776	7,885
Other	8,247	8,249
Allowance for doubtful accounts	(564)	(580)
Total investments and other assets	44,215	45,155
Total non-current assets	148,756	152,454
Total assets	386,237	400,057

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