Sanden : Financial Results of 2st Quarter

Financial Results of 2nd Quarter for the Year Ending December 31, 2023

August 2023

Sanden Corporation

© 2023 SANDEN CORPORATION

CONTENTS

Progress in Activities for Growth

1. Progress of the Business Revitalization Plan
2. Realization of a virtuous cycle for growth
3. Initiatives for the future

Financial Results of 2nd Quarter for the Year Ending December 31, 2023

1. Summary of consolidated financial results １６
2. Sales by region from the automotive systems business segment
3. Operating income（Year-on-year comparison）
4. Cash flows from operating activities（ Year-on-yearcomparison ）
5. Consolidated balance sheet （ Year-on-year comparison ）1. Points of the financial results

P.1	© 2023 SANDEN CORPORATION

Progress in Activities for Growth

１．Progress of the Business Revitalization Plan

The outline of the business revitalization plan

In May 2021, we are working on each measure for the business revitalization based on the business revitalization plan agreed by the financial institutions.

Business Revitalization Plan Period ： Until March 31, 2026 (the end of the planned term of the business revitalization plan)

Management Plan Target Figures：Fiscal year ending March 31, 2026 Net sales: 170.5 billion yen Operating income: 10.2 billion yen

Measures for business restructuring

1

5 2 reform 3 plans

4

5

Drastic review of production system

"Enhancement of basic earning power

Growth by actively promoting

"collaborative creation"

Strengthen cash flow generation measures

Reform in system for implementation

P.2	© 2023 SANDEN CORPORATION

Progress in Activities for Growth

１．Progress of the Business Revitalization Plan

Plan is 12 months from April to March Actual is January to December

						1,830					102	（ 100 million yen ）
									Operating profit （Plan）
				1,756						84	1,705
1,626								1,654
			1,590
Sales
		1,471			51
1,437
	～	～～～～ ～
～～
			5
Plan Results	Plan Results	Plan Forecast	Plan		Plan
2021		2022		2023			2024		2025
-29			Operating profit （Results）
	-57	-57

-212

P.3	© 2023 SANDEN CORPORATION

２．Realization of a virtuous cycle for growth		Progress in Activities for Growth
※Acquire new	Jan-Jun 2022	Jan-Jun 2023
commercial rights	91.0 billion yen	188 billion yen	Double
◆ Existing Customers ： China area (local customers/global customers)	(Compared to the previous year)

◆ New Customers ： Start-up EV Manufacturer & Leading Agricultural Equipment Manufacturer

◆ Main acquisition areas ： China, Europe

◆ Main acquired products ：Electric compressors, ECH, HVAC Mechanical compressors (share up), etc.

※Total lifetime sales of commercial rights acquired in January-June Total lifetime sales from SOP per deal

R&D Expenses	2.6 billion yen	3.3billion yen	+27％（ Compared to the previous year ）
(Growth Investment Expenses)	3.3 billion yen	5billion yen	+52％（ Compared to the previous year ）
Purchase of property,	2.7billion yen	4.1billion yen	1.5 times （Compared to the previous year ）
plant and equipment

P.4	© 2023 SANDEN CORPORATION