Sanwa : 〔Delayed〕FY2020 Consolidated Results & FY2021 Forecast

Presentation Materials

FY2020 Consolidated Results (The 86th Period) FY2021 Consolidated Forecast

May 14, 2021

www.sanwa-hldgs.co.jp

Contents

■ Introduction
1. Introduction	・・・・4

2. Progress of Mid-Term Management Plan ・・・・5

• Trend of Consolidated Results

■ FY2020 Consolidated Results

3. FY2020 Business Results Highlight	・・・・7
4. FY2020 Net Sales & Operating Income	・・・・8
（By sector）

• FY2021 Consolidated Forecast

5. FY2021 Forecast Highlight

・・・10

6. FY2021 Forecast Net Sales & Operating ・・・11 Income（By sector）

■ Progress of Priority Strategies in
Mid-Term Management Plan
7. Basic Strategies ①～⑤	・・・13
■ Financial Information Highlight
8. Financial Information Highlight	・・・21

◆Appendix
1.	Outline of Consolidated Results by	・・・25
	Sector
2.	Sales Trend of Main Products
	(By sector)	・・・26
3.	Japan : Order Backlog & Net Sales by
	Products (Sanwa Shutter)	・・・27
4. USA・Europe : Net Sales by products	・・・28
	(ODC, NF)
5.	Business and External Environment	・・・29
6.	Key Figures & Ratios	・・・30
7. SVA tree	・・・31
8.	Capital Expenditure & Depreciation	・・・32
9.	Topics	・・・33

Foot-note on Forecast

Any contents in this brochure are based on various assumptions, and neither promise nor guarantee the indicated results of forecast or realization of any management issue.

Introduction

FY2020 Consolidated Results

FY2021 Consolidated Forecast

Progress of Mid-Term Management Plan

Financial Information Highlight

１. Introduction

１．Next long-term vision and mid-term management plan will begin in FY2022

Fiscal 2020 was supposed to be the final year of Sanwa Global Vision 2020 and the Third Mid-Term Management Plan. However, we have extended them through FY2021 in response to the COVID-19 pandemic and to complete our strategy that was impacted by the pandemic. We plan to announce our next long-term vision and mid-term management plan in May 2022.

２．U.S. subsidiary ODC celebrates its 100th anniversary and makes an acquisition.

Acquired all shares of Won-Door, the market leader in accordion style fire and security door solutions in the U.S. (April 2021).

・Sales growth through utilizing the distribution network in U.S..

・Expansion of ODC's product portfolio.

• Refer to 14 page

３．Announcement of long-term goals for decarbonizing society.

CO₂ emission reduction target: 30% reduction by FY2030 (compared with FY2020). ・Determine KPIs during FY2021 and accelerate initiatives

during the next mid-term management plan. ➡Refer to 19 page

4

2. Progress of Mid-Term Management Plan / Trend of Consolidated Results

		FY2020	FY2020	FY2021	Mid-Term
Progress of Mid-Term Management Plan（2019-2021）
	Revised	Management
	Result	Forecast
		Forecast	Plan Target

・FY2020 result fell short of original targets	Net Sales	¥427.1Bln	¥420.0Bln	¥450.0Bln	¥450.0Bln
in Mid-Term Management Plan but	Operating
¥33.1Bln	¥30.0Bln	¥34.0Bln	¥37.5Bln
exceeded revised forecast substantially.
Income

・Expect to return to pre-pandemic level in	Operating		7.7%		7.1%	7.6%	8.3%
Income
FY2021.											Ratio
									SVA*1		¥13.6Bln	¥11.2Bln	¥14.5Bln	¥15.9Bln
JPYbn											ROE*2		12.4%		10.6%	12.0%	14.1%
																		*1 Calculated at the weighted
500															Third Mid-Term	10.0%
														average cost of capital (WACC)
														Management Plan
	Overseas Sales	Domestic Sales	Operationg Income Ratio				of 6%, tax rate of 33%
																			*2 The cost of equity capital
400									7.8%	7.3%	7.5%	7.3%	7.7%	7.8%	7.6%	8.0%	8% assumed
							6.6%								7.7%
300	5.5%					5.3%							(46.4)	(45.4)	(45.9)	(47.7)	6.0%
4.9%					(43.8)	(44.7)		(44.4)	(46.1)
					(41.0)		(41.7)
	(43.1)
		(36.9)			3.6%	(39.3)
200		(42.1)	(38.1)												4.0%
	3.0%	(43.3)
			2.4% 1.9%
100																		2.0% (Overseas Sales Ratio)
																			Forex	2020	2021
																			Rate		（Forecast）
0																		0.0%	１USD	106.43	105.00
	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015		2016	2017	2018	2019	2020	2021		１EUR	121.97	125.00
																	Forecast
																					5