Sinfonia Technology : Financial Results for 3rd Quarter FY2022

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.

February 7, 2023

Summary of Financial Statements for the Nine Months Ended December 31, 2022

(Japanese GAAP) (Consolidated)

Name of listed company:	SINFONIA TECHNOLOGY CO., LTD.
Exchange for listed company: Tokyo Stock Exchange
Securities Code:	6507
URL:	https://www.sinfo-t.jp/eng/index_a.htm
Representative	Shinichi Hirano, Representative Director and President
											(Rounded down to the nearest million yen)
1. Consolidated financial results for the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
(1) Consolidated operating results (cumulative)			(Percentage (%) indicates the rate of year-over-year increase or decrease)
				Net sales		Operating profit			Ordinary profit	Profit attributable to
								owners of parent
Nine months ended			Millions of yen	%	Millions of yen	%		Millions of yen	%	Millions of yen	%
December 31, 2022				71,656	15.0		6,044	90.2			6,510	93.5		4,628	99.5
December 31, 2021				62,297	7.8		3,178	123.6			3,363	162.9		2,320	115.0
Note: Comprehensive income	Nine months ended December 31, 2022	¥4,698 million		121.7 %
		Nine months ended December 31, 2021	¥2,119million		(23.8)%
				Profit per share		Diluted profit per share
Nine months ended						Yen					Yen
December 31, 2022					164.16					-
December 31, 2021					80.46					-
(2) Consolidated financial position
				Total assets			Net assets		Equity capital ratio
As of				Millions of yen		Millions of yen				%
December 31, 2022				122,021			57,378				47.0
March 31, 2022				116,801			54,090				46.3
(Reference) Equity capital
As of December 31, 2022	¥57,378 million
As of March 31, 2022	¥54,090 million
2. Cash dividends
							Annual dividends per share
				End of		End of	End of		End of		Total
			first quarter	second quarter	third quarter	period
				Yen			Yen				Yen		Yen		Yen
Fiscal year ended March 2022				-			0.00				-	50.00		50.00
Fiscal year ending March 2023			-			0.00
Fiscal year ending March 2023 (Forecast)									-	60.00		60.00
Note: Revisions to the most recently announced dividend forecast: No
3. Consolidated operating results forecast for fiscal year ending March 2023(April 1, 2022 to March 31, 2023)
						(Percentage (%) indicates the rate of year-over-year increase or decrease)
		Net sales		Operating profit	Ordinary profit		Profit attributable to	Profit per share
				owners of parent
Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%		Yen
Full year		105,000	11.0	9,500	26.4	10,000	26.6	6,700	19.8		237.66
Note: Revisions to the most recently announced consolidated operating results forecast: No

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*Notes
(1)	Transfer of key subsidiaries during the nine months ended December 31, 2022	None
	(transfer of specific subsidiaries that involve any changes in the scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	Changes in accounting policies, changes in accounting estimates, and/or restatements

(i)	Changes in accounting policies associated with any amendments in accounting standards, etc.	No
(ii)	Other changes in accounting policies:	No
(iii) Changes in accounting estimates:	No
(iv) Restatements:	No

(4) Number of issued shares (common shares)

a Number of issued shares at the end of the period (including treasury shares)

As of December 31, 2022

29,789,122 shares As of March 31, 2022

29,789,122 shares

• Number of treasury shares at the end of the period

As of December 31, 2022

1,593,653 shares As of March 31, 2022

1,600,948 shares

c Average number of shares during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2022

28,192,629 shares Nine months ended December 31, 2021

28,837,591 shares

Note: Number of treasury shares at the end of the period includes Sinfonia Technology's shares held by the Board Benefit Trust (BBT) (167,500 shares in nine months ended December 2022 and 175,200 shares in fiscal year ended March 2022). Sinfonia Technology's shares held by the Board Benefit Trust (BBT) are included in the treasury shares deducted in the calculation of the average number of shares during the period (170,580 shares in nine months ended December 2022 and 176,040 shares in nine months ended December 2021).

*Summary of Financial Statements is not subject to the audit of a certified public accountant or an auditing firm.

*Explanation of proper use of financial results forecast and other special notes

The financial results forecast is based on information available as of the date of the announcement of this document. The actual results may differ from this forecast due to different future factors.

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Quarterly consolidated financial statements

Quarterly consolidated balance sheets

		(Unit: Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	8,734	8,467
Notes and accounts receivable - trade, and contract assets	34,844	29,542
Merchandise and finished goods	2,053	2,811
Work in process	10,336	13,640
Raw materials and supplies	11,187	15,887
Other	689	1,180
Allowance for doubtful accounts	(43)	(78)
Total current assets	67,803	71,451
Non-current assets
Property, plant and equipment
Buildings and structures, net	10,973	10,945
Land	14,573	14,621
Other, net	4,810	7,010
Total property, plant and equipment	30,356	32,577
Intangible assets	2,015	1,526
Investments and other assets
Investment securities	11,015	10,879
Other	5,770	5,732
Allowance for doubtful accounts	(159)	(144)
Total investments and other assets	16,626	16,467
Total non-current assets	48,998	50,570
Total assets	116,801	122,021

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		(Unit: Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	22,894	22,214
Short-term borrowings	7,170	8,727
Current portion of long-term borrowings	3,335	3,009
Income taxes payable	1,794	340
Provision for product warranties	411	406
Provision for loss on orders received	545	384
Other	9,110	11,075
Total current liabilities	45,261	46,158
Non-current liabilities
Long-term borrowings	11,278	11,940
Provision for retirement benefits for directors	137	118
(and other officers)
Provision for share awards for directors	59	83
(and other officers)
Provision for environmental measures	3	8
Retirement benefit liability	2,779	2,834
Other	3,190	3,498
Total non-current liabilities	17,449	18,484
Total liabilities	62,710	64,643
Net assets
Shareholders' equity
Share capital	10,156	10,156
Capital surplus	452	452
Retained earnings	33,562	36,772
Treasury shares	(1,963)	(1,955)
Total shareholders' equity	42,209	45,427
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,214	5,120
Revaluation reserve for land	3,913	3,913
Foreign currency translation adjustment	376	709
Remeasurements of defined benefit plans	2,377	2,208
Total accumulated other comprehensive income	11,881	11,951
Total net assets	54,090	57,378
Total liabilities and net assets	116,801	122,021

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Quarterly consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Quarterly consolidated statements of income (cumulative)

		(Unit: Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2021	December 31, 2022
Net sales	62,297	71,656
Cost of sales	48,851	54,229
Gross profit	13,446	17,426
Selling, general and administrative expenses	10,267	11,382
Operating profit (loss)	3,178	6,044
Non-operating income
Interest and dividend income	213	324
Foreign exchange gains	98	251
Transfer of rights income	99	-
Other	138	106
Total non-operating income	549	682
Non-operating expenses
Interest expenses	108	105
Other	255	110
Total non-operating expenses	364	216
Ordinary profit (loss)	3,363	6,510
Profit (loss) before income taxes	3,363	6,510
Income taxes	1,043	1,882
Profit (loss)	2,320	4,628
Profit (loss) attributable to owners of parent	2,320	4,628

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