Suzuden : Consolidated Financial Results for the Nine Months Ended December 31, 2021

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

January 31, 2022

Company name: SUZUDEN CORPORATION

Stock exchange listing: Tokyo Stock Exchange

Securities code: 7480

URL: https://www.suzuden.co.jp/

Representative: Toshio Suzuki, Representative Director, Chairman and President

Contact: Satoshi Nakano, General Manager, Corporate Management Division

Phone: [phone]

Scheduled date of filing quarterly securities report: February 9, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing materials on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 - December 31, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
			Net sales		Operating profit		Ordinary profit	Profit attributable to
					owners of parent
		Nine months ended	Million yen	%	Million yen	%		Million yen	%	Million yen	%
		December 31, 2021	42,167	-	1,927	119.7	2,163	106.0	1,561	171.0
		December 31, 2020	32,861	0.8	877	(7.3)	1,050	(6.1)	576	(21.6)
	(Note) Comprehensive	income: Nine months	ended December 31, 2021: ¥1,557 million [149.0%]
			Nine months ended December 31, 2020: ¥625 million [(19.6)%]
			Basic earnings	Diluted earnings
			per share		per share
		Nine months ended		Yen		Yen
		December 31, 2021	111.90		-
		December 31, 2020		41.44		-

(Note)The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending March 31, 2022. For this reason, the year-on-year change in net sales before the application of the above accounting standard, etc. is not provided.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of December 31, 2021	30,046	16,855	56.1	1,207.37
As of March 31, 2021	26,441	16,396	62.0	1,175.22

(Reference) Equity: As of December 31, 2021: ¥16,855 million As of March 31, 2021: ¥16,396 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	18.00		-	54.00	72.00
March 31, 2021
Fiscal year ending		-	25.00		-
March 31, 2022
Fiscal year ending
March 31, 2022						87.00	112.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
57,500	-	2,730	105.0	3,040	94.6	2,060	131.7	147.61

(Note) Revision to the financial results forecast announced most recently: Yes

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending March 31, 2022. The above consolidated financial results forecast has been obtained after the application of the said accounting standard, etc. For this reason, the year-on-year change in net sales is not provided.

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: - (

), Excluded: - (

)

1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards and other regulations: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	14,652,600 shares
March 31, 2021:	14,652,600 shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	692,387 shares
March 31, 2021:	700,987 shares
3) Average number of shares during the period:
Nine months ended December 31, 2021:	13,955,208 shares
Nine months ended December 31, 2020:	13,907,033 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation on the proper use of financial results forecasts and other special notes

The financial results forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that have been deemed reasonable. They do not constitute a guarantee of future results. Actual performance may differ significantly from these forecasts due to a wide range of factors. For assumptions underlying the financial results forecasts and precautions regarding their use, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ...........................................................................	2
(1)	Explanation of Operating Results..........................................................................................................	2
(2)	Explanation of Financial Position .........................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .....	3
2. Quarterly Consolidated Financial Statements and Principal Notes ...........................................................	5
(1)	Quarterly Consolidated Balance Sheets ................................................................................................	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ........................................	7
(3)	Quarterly Consolidated Statements of Cash Flows ...............................................................................	9
(4)	Notes to Quarterly Consolidated Financial Statements .....................................................................	10
	(Notes on going concern assumption)................................................................................................	10
	(Notes in case of significant changes in shareholders' equity) ..........................................................	10
	(Changes in accounting policies) .......................................................................................................	10
	(Additional information) ....................................................................................................................	10
3. Others ......................................................................................................................................................	11
Purchases and Sales ..................................................................................................................................	11

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1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results
   The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the current fiscal year. Accordingly, net sales for the nine months ended December 31, 2021 are presented without a year-on-year comparison (%) with the corresponding period of the previous fiscal year. Details are explained in "2. Quarterly Consolidated Financial Statements and Principal Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)".
   Regarding the Group's operating environment during the nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021), amidst progress with COVID-19 vaccinations and relaxed restrictions on movement, corporate production and capital investment demand have shown signs of recovery. However, with concerns about the spread of new COVID-19 variants, as well as the manifestation of the effects of stagnating production due to shortages in semiconductor, resin material, etc., the outlook remains uncertain.
   Within this environment, from the perspective of business continuity planning, the Company has adopted measures that prioritize the health and safety of its employees, and to assist manufacturing processes as a "Manufacturing Support Company," possesses a comprehensive inventory and has strived to provide a stable supply of products to its customers. This inventory strategy has garnered positive feedback from our customers.
   In the electrical equipment, electronic component, and industrial machinery industries, the principal markets of the Group, formerly stagnant production and capital investment demand have been showing signs of recovery from the latter half of the previous fiscal year. Moreover, with increased production and orders ahead of schedule due to shortages in semiconductors and resin materials, etc., performance has been favorable. Especially regarding major customers of semiconductor manufacturing equipment, increased production and capital investment demand owing to the strong demand for semiconductors have fueled these favorable results and substantially contributed to sales and profit. In terms of profit, along with the recording of extraordinary income due to the revision of the period of recognizing lease obligations following an overseas subsidiary's business withdrawal, performance during the nine months ended December 31, 2021 exceeded the full-year consolidated financial results forecast announced on November 1, 2021.
   As a result, for the nine months ended December 31, 2021, net sales amounted to ¥42,167 million (¥32,861 million in the same period of the previous year), operating profit was ¥1,927 million (up 119.7% year-on-year), ordinary profit was ¥2,163 million (up 106.0% year-on-year), and profit attributable to owners of parent was ¥1,561 million (up 171.0% year-on-year). As such, both sales and profit increased year-on-year.

Net sales of the Group by product segment are as follows:

1. FA equipment
   Net sales of control equipment, power supplies, RFID equipment, etc. amounted to ¥25,058 million.
2. Information and communication equipment
   Net sales of office automation equipment, network equipment, liquid crystal displays, etc. amounted to ¥3,508 million.
3. Electronics and devices
   Net sales of connectors, CPUs, switching power supplies, etc. amounted to ¥5,436 million.
4. Materials for electric facilities
   Net sales of terminal blocks, cable accessories, tools, etc. amounted to ¥8,162 million.

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