Suzuden : Consolidated Financial Results for the Three Months Ended June 30, 2022

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 Three Months Ended June 30, 2022

[Japanese GAAP]

August 1, 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, Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: August 8, 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 Three Months Ended June 30, 2022 (April 1, 2022 - June 30, 2022)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	June 30, 2022	15,847	21.0	948	111.8	1,064	99.8	711	92.8
	June 30, 2021	13,093	16.7	448	37.1	532	34.2	369	33.1

(Note) Comprehensive income: Three months ended June 30, 2022: ¥752 million [103.1%]

			Three months ended June 30, 2021: ¥370 million [30.9%]
			Basic earnings		Diluted earnings
			per share		per share
	Three months ended		Yen		Yen
	June 30, 2022		50.93		-
	June 30, 2021		26.45		-
(2) Consolidated Financial Position
			Total assets	Net assets	Equity ratio
			Million yen	Million yen	%
	As of June 30, 2022	31,129	17,013	54.7
	As of March 31, 2022	32,736	17,627	53.8

(Reference) Equity: As of June 30, 2022: ¥17,013 million As of March 31, 2022: ¥17,627 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
	-	25.00		-	97.00	122.00
March 31, 2022
Fiscal year ending		-
March 31, 2023
Fiscal year ending
March 31, 2023			55.00		-	56.00	111.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

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

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
29,600	10.8	1,370	17.3	1,520	15.4	980	9.0	70.22
Full year	59,400	(0.5)	2,700	(11.5)	2,990	(11.2)	1,930	(17.6)	138.29

(Note) Revision to the financial results forecast announced most recently: None

* 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):

June 30, 2022:	14,652,600 shares
March 31, 2022:	14,652,600 shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	681,787 shares
March 31, 2022:	681,287 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:	13,970,940 shares
Three months ended June 30, 2021:	13,953,393 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 4 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 .........................................................................................................	4
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .....	4
2. Quarterly Consolidated Financial Statements and Principal Notes ...........................................................	6
(1)	Quarterly Consolidated Balance Sheets ................................................................................................	6
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ........................................	8
(3)	Quarterly Consolidated Statements of Cash Flows .............................................................................	10
(4)	Notes to Quarterly Consolidated Financial Statements.......................................................................	11
	(Notes on going concern assumption)................................................................................................	11
	(Notes in case of significant changes in shareholders' equity) ..........................................................	11
	(Changes in accounting policies) .......................................................................................................	11
	(Additional information) ....................................................................................................................	11
3. Others ......................................................................................................................................................	12
Purchases and Sales ................................................................................................................................	12

1

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

Regarding the Group's operating environment during the three months ended June 30, 2022 (April 1, 2022 - June 30, 2022), although the future economy has remained uncertain due to the impacts of supply chain disruption caused by the lockdown measures in Shanghai under the zero-COVID policy in China and surging oil prices arising from the situation in Ukraine, corporate production and capital investment demand has steadily grown recently.

Within this environment, from the perspective of business continuity planning, while taking measures that prioritize the health and safety of its employees, the Company has made efforts for supplying products in a stable manner by expanding inventory, enhancing the system to receive and place orders, and maintaining its distribution system in order to assist manufacturing processes as a "Manufacturing Support Company."

With regard to the business results of the Group, in the electrical equipment, electronic component, and industrial machinery industries, the principal markets of the Group, with increased orders from some customers ahead of schedule due to fears over supply caused by the impact of shortages in semiconductors and other members, as well as increased sales due to increased amount of merchandises received toward the end of the first quarter of the current fiscal year, performance has been favorable. Especially regarding customers related to semiconductor manufacturing equipment, the growing capital investment demand of semiconductor manufacturers has continued, contributing to these favorable results of the Company. In terms of profit, the results in the first quarter of the previous fiscal year were surpassed as profit increased following the increase in sales.

As a result, for the three months ended June 30, 2022, net sales amounted to ¥15,847 million (up 21.0% year- on-year), operating profit was ¥948 million (up 111.8% year-on-year), ordinary profit was ¥1,064 million (up 99.8% year-on-year), and profit attributable to owners of parent was ¥711 million (up 92.8% year-on-year). As such, both sales and profit increased year-on-year.

Results by segment are as follows.

In order to enhance manufacturing functions and respond to customer request items, the Company added facilities to Taiwa Plant (Kurokawa County, Miyagi Prefecture), and started assembly of aluminum frames for customers related to semiconductor manufacturing equipment from the first quarter of the current fiscal year, which was segmented as "manufacturing business."

Accordingly, from the first quarter of the current fiscal year, the Company, which previously had only a single segment of "electrical and electronic components sales business", has two segments, "electrical and electronic components sales business" and "manufacturing business."

(Electrical and electronic components sales business)

Net sales and operating profit of the electrical and electronic components sales business amounted respectively to ¥15,779 million (up 20.5% year-on-year) and ¥969 million (up 116.4% year-on-year).

Net sales by product segment are as follows.

1. FA equipment
   Net sales amounted to ¥9,387 million (up 18.2% year-on-year) with increased sales of RFID equipment, PLC equipment, relay equipment, and control equipment, etc.
2. Information and communication equipment
   Net sales amounted to ¥1,205 million (up 11.0% year-on-year) with increased sales of CPUs, personal computers for industrial use, office automation equipment accessories, etc.
3. Electronics and devices
   Net sales amounted to ¥2,215 million (up 36.4% year-on-year) with increased sales of connectors, switching power supplies, EMI prevention products, etc.

2