三和ホールディングス（5929） – FY2021 Third Quarter consolidated financial result highlights

FY2021 Third Quarter consolidated financial result highlights1. Overview of Consolidated ResultsJanuary 31, 20221) Figures in［］are FY2021 figures calculated on the last year’s FX rates.2) Figures are round off. <+> is for increase, <-> is for decrease from the previous year.3) Forex rate is term average. 4) Figures by entities are before consolidation adjustment and do not add up to total.5) Figures in FY2021 4Q (forecast) is calculated by subtracting the FY2021 3QYTD results from FY2021 full year forecast.13QFull Year3QFull Year(Forecast)USD107.25106.43109.11105.00EUR121.13121.97130.27125.00Forex RateFY2021FY2020JPYm・%3Q3Q YTD4QFull Year3Q3Q YTD4Q (Forecast)Full Year (Forecast)Y/YprofitratioY/YY/YprofitratioY/YY/YprofitratioY/YY/YprofitratioY/YNet Sales99,1131.9290,063-2.2136,997-4.7427,061-3.0110,67311.7327,17312.8129,826-5.2457,0007.0[assumed forex rate same as the previous year]［108,626］[9.6]［321,088］[10.7]［135,798］[-0.9]［456,886］[7.0]Sanwa Shutter39,325-2.0126,669-5.372,774-5.0199,443-5.246,88319.2139,95410.565,045-10.6205,0002.8Japanese Subsidiaries12,1632.635,56616.116,201-21.251,7671.112,7084.536,0241.314,245-12.150,270-2.9ODC (U.S.A.)31,7435.685,620-1.031,625-1.3117,245-1.034,2237.898,82115.434,7489.9133,57013.9Novoferm (Europe)19,3135.751,520-6.020,6462.572,167-3.720,9008.262,71821.717,031-17.579,75010.5ASIA1,6025.44,4908.32,108-7.46,5992.81,7106.74,99711.33,46164.28,45828.2Operating Income7,13831.616,7175.81.416,359-7.733,0777.7-3.34,789-32.919,1455.914.514,854-9.234,0007.42.8[assumed forex rate same as the previous year]［4,704］[-34.1]［18,844］[12.7]［15,176］[-7.2]［34,020］[2.9]Sanwa Shutter2,41719.99,5187.5-0.511,053-4.720,57110.3-2.82,5043.610,9397.814.99,760-11.720,70010.10.6Japanese Subsidiaries57190.91,1033.1119.71,623-22.02,7275.35.672126.41,7134.855.21,186-26.92,9005.86.3ODC (U.S.A.)2,68410.54,8405.7-5.62,893-25.97,7336.6-14.4859-68.04,0704.1-15.94,04639.98,1166.14.9Novoferm (Europe)1,61356.91,6033.1-32.61,48813.23,0914.3-16.31,008-37.53,2975.3105.7439-70.43,7374.720.9ASIA23-24.5571.3<＋>-596<－>-539-8.2<－>61167.01372.7141.780<＋>2172.6<＋>Ordinary Income7,09635.216,1655.60.815,977-8.332,1427.5-4.04,452-37.318,3795.613.714,320-10.432,7007.21.7[assumed forex rate same as the previous year]［4,377］[-38.3]［18,097］[12.0][14,615][-8.5][32,712][1.8]Sanwa Shutter2,49719.79,7047.7-0.511,079-4.920,78410.4-2.92,5682.811,1177.914.69,782-11.720,90010.20.6Japanese Subsidiaries59483.51,2053.4110.01,618-22.92,8245.55.674926.11,7855.048.01,195-26.12,9815.95.5ODC (U.S.A.)2,59211.04,4835.2-4.02,848-24.77,3326.3-13.3496-80.93,3153.4-26.03,88736.47,2035.4-1.8Novoferm (Europe)1,56461.61,2602.4-44.51,48513.92,7463.8-23.2949-39.33,2165.1155.1333-77.53,5504.529.3ASIA3364.2521.2<＋>-581<－>-528-8.0<－>79140.61402.8165.86<＋>1471.7<＋>Equity method Affiliates-31<－>-174<－>-254<－>-429<－>-16<＋>-236<－>18<＋>-218<＋>4,85840.510,6663.72.510,585-5.921,2515.0-1.82,558-47.311,6943.69.69,905-6.421,6004.71.6[assumed forex rate same as the previous year]［2,520］[-48.1]［11,499］[7.8]［10,115］[-4.4]［21,614］[1.7]Sanwa Shutter1,65319.46,4575.1-0.47,882-3.114,3407.2-1.91,6610.57,3215.213.46,878-12.714,2006.9-1.0Japanese Subsidiaries37488.37362.1126.91,123-1.81,8603.626.647426.51,1263.153.0904-19.62,0314.09.2ODC (U.S.A.)1,93512.63,3073.9-3.6-1,016<－>2,2902.0-63.3385-80.12,4832.5-24.92,913<＋>5,3974.0135.6Novoferm (Europe)1,09169.98231.6-44.1733-7.71,5572.2-31.4446-59.12,1723.5163.7277-62.12,4503.157.4ASIA2540.7-3-0.1<＋>-637<－>-640-9.7<－>71183.81072.1<＋>-2<＋>1051.2<＋>Equity method Affiliates-31<－>-174<－>-254<－>-429<－>-16<＋>-236<－>18<＋>-218<＋>《Local currency》USDk・EURk・%3Q3Q YTD4QFull Year3Q3Q YTD4Q (Forecast)Full Year (Forecast)Y/YprofitratioY/YY/YprofitratioY/YY/YprofitratioY/YY/YprofitratioY/YODC (U.S.A.)$300,5707.8$798,3250.8$303,2973.5$1,101,6231.6$310,0593.2$905,70913.5$366,39020.8$1,272,10015.5Novoferm (Europe)€155,5931.4€425,331-5.0€166,3490.4€591,680-3.5€160,9053.4€481,45013.2€156,549-5.9€638,0007.8ODC (U.S.A.)$25,21812.5$45,1345.7-3.9$27,530-22.9$72,6656.6-12.1$7,701-69.5$37,3054.1-17.3$39,99445.3$77,3006.16.4Novoferm (Europe)€13,32055.7€13,2373.1-31.9€12,11212.2€25,3494.3-16.1€7,769-41.7€25,3125.391.2€4,587-62.1€29,9004.718.0Net Income attributableto owners of the parentFY2020FY2021FY2020FY2021SalesOperatingIncomeFY2021 Third Quarter consolidated financial result highlights2. Consolidated FY2021 3Q (9 months) ResultsJanuary 31, 2022〈Summary〉Achieved growth in both sales and profits. Reached record high levels across the board.FY2021 3Q (9 months) Results■Consolidated net sales increased by 12.8% or 37.1 billion yen YoY.Excluding currency impact, it would have increased by 10.7％ or 31 billion yen.Japan: Increased by 8.5％ (pre-intercompany eliminations) YoY. Economic conditions are recovering from the impact of COVID-19. Added on the increase (+8.4billion yen) due to new revenue recognition standard, net sales of Sanwa Shutter increased by 10.5%. Centering on logistics centers, heavy-duty shutters sales progressed steadily. Commercial/Residential doors and lightweight shutters sales were steady and maintenance & repair sector is recovering from the impact of COVID-19. 3Q (3 months) sales increased by 19.2% or 7.56 billion yen.Japanese subsidiaries increased by 1.3% or 0.46 billion yen. The recovery of Sanwa System Wall, Okinawa Sanwa Shutter and Suzuki Shutter contributed greatly. 3Q (3 months) sales increased by 4.5% or 0.54 billion yen.Increased by 13.5％ on local currency basis (+15.4% on yen basis). Sales increased; commercial doors/shutters by 10.1%, garage doors by 10.4%, operators by 16.0% and automatic doors by 2.1%, with the effect of price raise. In terms of 3Q (3 months) result, while residential products are inhigh demand, due to supply chain disruption, sales increased by 3.2%, supported by price raise.Net SalesUSA(ODC): Europe(NF) : Asia: USA(ODC): Europe(NF) : Asia: Increased by 13.2% on local currency basis (+21.7% on yen basis). In terms of product sales, general growth was achieved: hinged door by 8.0%, garage door by 21.8% and industrial door by 10.6%, with residential garage door performing well. 3Q (3 months) result increased by 3.4％.Increased by 11.3％ or 0.51 billion yen, contributed by sales growth of Shanghai Baosteel – Sanwa Door. 3Q (3 months) result increased by 6.7％.■Consolidated operating income increased by 14.5％ or 2.43 billion yen.Japan: Sanwa Shutter increased by 14.9% (profit ratio of 7.8%). 3Q (3 months) result increased by 3.6%.Japanese subsidiaries increased substantially by 55.2% or 0.61 billion yen. Sanwa System Wall and Suzuki Shutter increased in profit.3Q (3 months) result increased by 26.4％ or 0.15 billion yen.Operating IncomeDecreased by 17.3％ on local currency basis (-15.9％ on yen basis). 3Q (3 months) result decreased greatly by 69.5％ or ＄17.5 million. Effect of price increase will mainly appear from 4Q and cost rise due to supply chain disruption had great impact.Increased substantially by 91.2％ on local currency basis (105.7% on yen basis). 3Q (3 months) result decreased by 41.7％ or €5.6 million, in reaction to extraordinary impact of recovery from COVID-19 during 3Q last year as well as raw material cost rise.Increased by 0.8 billion yen. Vina-Sanwa has been recovering.Ordinary Income Ordinary income increased by 13.7% or 2.21 billion yen. Equity in earnings/losses of affiliates worsened by 0.06 billion yen.Net Income attributable to owners of the parent Net income attributable to owners of the parent increased by 9.6% or 1.03 billion yen.2FY2021 Third Quarter consolidated financial result highlights3. Consolidated FY2021 Full Year ForecastsJanuary 31, 2022〈Summary〉Maintaining the revised consolidated forecast announced on October 29, 2021.FY2021 Full Year Forecasts■All areas (Japan, USA, Europe and Asia) are recovering steadily, forecast to increase in sales.Japan: Sanwa Shutter will focus on orders from the well-performing logistic centers and small to middle scale sites. Maintenance & Repair sector will also be recovering and overall, expected to reach revised forecast.Japanese subsidiaries is recovering steadily from the impact of COVID-19 last year, expected to reach revised forecast.Net SalesStarting from second half of last year, markets, centering on residential products, have been recovering swiftly form the impact of COVID-19 and demand has remained high. Starting form second half of this year, shipping has been in a challenging situation due to supply chain disruption. With the effect of bold price increase, expected to reach revised forecast.Sales of garage doors is recovering greatly while hinged doors and industrial doors are also recovering steadily. Supply chain disruption is also occurring while alike the situation of USA(ODC), effect of price increase will be substantial and is expected to reach revised forecast. All subsidiaries are progressing steadily and overall, are expected to reach revised forecast.■While effect of the rise in raw material cost are seen in all areas, progress is as forecast.Japan:Profit is forecast to increase due to the growth in sales volume. The rise in raw material cost continues and is expected to reach revised forecast through efforts in price raising and cost reduction.Operating IncomeExpected to reach revised forecast while maintaining good condition in the residential market. Cost increase due to rise in raw material cost, supply chain disruption and labor shortage is impacting but will be responded by pass-through to sales price.Centering on garage doors sales, all sectors are recovering and is expected to reach revised forecast. Rise in raw material cost is higher than expectation but will be responded by pass-through to sales price and cost reduction.All subsidiaries are aiming to strengthen business foundation and overall, are expected to reach revised forecast.USA(ODC): Europe(NF) : Asia: USA(ODC): Europe(NF) :Asia:3FY2021 Third Quarter consolidated financial result highlights4. Order Intake and Net Sales by products / Sanwa ShutterJanuary 31, 20224JPYm・%FY2020FY20213Q YTDFull Year3Q YTDFull Year（F）OrderIntake% tototalSales% tototalOrderIntake% tototalSales% tototalOrderIntake% tototalSales% tototalOrderIntake% tototalSales% tototal<-3.5><-1.2><0.5><0.1><9.5><8.7><3.8><4.7>16,93411.216,36012.922,63211.322,44811.318,54311.617,78912.723,50011.023,50011.5<7.7><-5.2><1.8><-8.0><5.4><28.8><4.0><15.5>21,14813.914,80011.727,01513.524,07712.122,28113.919,06913.628,10013.227,80013.6<7.4><2.7><3.2><4.0><1.4><9.1><2.2><4.5>4,1942.83,4902.85,3842.75,2602.64,2542.73,8082.75,5002.65,5002.7<-4.6><-12.0><0.1><-8.2><12.7><22.1><13.5><5.1>10,2566.88,0736.413,7426.813,2296.611,5567.29,8557.015,6007.313,9006.8<3.1><0.2><0.8><-10.0><2.4><6.6><5.1><-2.8>40,83226.931,95325.254,25827.054,85427.541,82826.234,04824.357,00026.853,30026.0<-20.0><-20.2><-18.5><-18.6><8.3><6.2><8.2><4.5>2,3331.52,3351.83,0501.53,0611.52,5261.62,4801.83,3001.53,2001.6<0.5><-0.2><-0.2><-0.1><-0.1><-0.6><3.2><2.1>6,7944.56,6775.38,8144.48,8174.46,7904.36,6364.79,1004.39,0004.4<-13.0><-14.3><-12.6><-11.8><2.5><5.6><3.0><1.8>2,5861.72,4591.93,3991.73,4361.72,6501.72,5981.93,5001.63,5001.7<-9.4><-9.3><-7.2><3.4><5.8><21.5><11.8><-0.0>10,0986.77,2195.713,6006.814,4037.210,6846.78,7696.315,2007.114,4007.0<-25.5><-19.2><-19.8><-27.1><1.0><-1.3><-1.7><-11.0>5,5083.64,7433.77,5243.77,8613.95,5613.54,6813.37,4003.57,0003.4<30.7><40.7><17.5><18.7><8.1><24.3><8.1><13.9>2,3831.61,8031.43,1451.62,8091.42,5771.62,2421.63,4001.63,2001.6<-5.5><-3.7><-1.6><0.3><5.2><7.8><5.7><3.9>1,8581.21,6271.32,5551.32,5031.31,9551.21,7551.32,7001.32,6001.3<-0.9><-0.3><-0.1><-0.7><5.8><6.5><7.3><5.6>25,54316.823,30718.433,81716.833,72416.927,02816.924,82917.736,30017.035,60017.4<-29.4><-59.6><-28.2><113.6><11.7><-23.6><25.3><-15.4>1,3700.91,8151.41,9151.02,9551.51,5301.01,3871.02,4001.12,5001.2<-1.5><-5.3><-1.6><-5.2><5.2><10.5><6.0><2.8>151,844100.0126,669100.0200,855100.0199,443100.0159,768100.0139,954100.0213,000100.0205,000100.0the end of Dec. 2020the end of Mar. 2021the end of Dec. 2021the end of Mar. 2022（F）113,54090,136118,44198,7351) < >=⊿% year on year 　2) Outstanding Order Backlog = Backlog of orders including orders worked-in-processLightweight ShuttersWindow-relatedProductsHeavy-duty ShuttersOverhead DoorsShutter-relatedProductsComm. Bldgs/Condominiums DoorsResidential DoorsOthersTotalOutstanding Order BacklogExterior FittingsPartitionsStainless-SteelEntrancesAluminum FrontsAutomatic dooropratorsMaintenance & Repair