To Our Investors

Message from the Representative

代表取締役 社長執行役員(COO) 鈴木 俊郎 代表取締役 社長執行役員(COO) 鈴木 俊郎

Thank you very much for your continued support of our company.

On May 12, 2021, the Group announced the V73 Medium-Term Management Plan to be concluded in the Company’s 73rd Term (fiscal year ending March 31, 2024). In the Plan, the Group defined the goal of achieving an ROE of 5% at an early stage.
In order to achieve this goal, we are diligently working to “improve profitability and expand business in growth markets through business structure reform,” “improve capital efficiency,” and “strengthen corporate governance.”

I look forward to continued support and guidance from our shareholders.

Representative Director, COO 鈴木 俊郎

Financial Highlights /
Forecasts

Financial Highlights (The fiscal ended March 2021)

During the consolidated fiscal year under review, the global economy overall faced tough conditions due to the prolonged impact caused by the spread of COVID-19. Although vaccinations have started in some regions, countries are forced to engage in economic activities while implementing continued measures to prevent infection, and it is uncertain when the COVID-19 pandemic will end. In the electronics industry, which is one of the Group’s fields of business, the pandemic caused stagnation in the production of semiconductors. Conversely, there were strong sales of televisions, home appliances, and home video game consoles due to stay-at-home demand. Furthermore, there was a sudden recovery in the Chinese automotive market from the second half of the fiscal year. Overall, there was tight supply and demand for semiconductors. In the domestic ICT industry, the COVID-19 pandemic caused a decrease in corporate IT investment. However, investment for digitalization increased due to factors such as the development of environments for remote work. Against this background, in the device business, the Group promoted a shift of human resources for expanding sales of overseas semiconductor manufacturer products. This was done in conjunction with the cancellation (as of June 30, 2020) of the dealership agreement with Renesas Electronics Corporation, which was previously a main supplier. The Group also strove to make drastic transitions to our profit structure through efforts such as developing new products and business models based on items related to in-vehicle systems, artificial intelligence (AI), and the internet of things (IoT). In the solution business, aiming to establish a robust platform for future growth, the Group committed resources to reinforcing its cloud business, centered on Sanshin Data Center, while bolstering initiatives to expand its number of customer platforms. As a result of these efforts, business performance in the consolidated fiscal year under review was as follows: Net sales were ¥112,791 million (down 8.4% year-on-year), but operating profit was ¥2,167 million (up 10.7% year-on-year) and ordinary profit was ¥1,878 million (up 1.1% year-on-year) due to the Group’s efforts to improve the gross profit margin and reduce selling, general and administrative expenses. As a result, net profit attributable to shareholders of parent company was ¥1,646 million (up 13.4% year-on-year) and ROE was 3.9% (up from 3.4% in the previous year).

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March 31,
2017
March 31,
2018
March 31,
2019
March 31,
2020
March 31,
2021
Net sales (Millions of yen) 167,654 157,257 147,879 123,085 112,791
Ordinary income (loss) (Millions of yen) (952) 1,787 1,737 1,858 2,167
Net income (loss) (Millions of yen) (1,575) 947 1,449 1,451 1,646
Net assets (Millions of yen) 61,537 61,787 42,711 42,029 43,210
Total assets (Millions of yen) 93,860 93,624 88,261 73,659 84,602
Net assets per share (Yen) 2,183.84 2,191.19 2,224.47 2,188.84 2,249.40
Net income (loss) per share (Yen) (55.90) 33.62 67.48 75.66 85.82
Equity ratio (%) 65.6 65.9 48.3 57.0 51.0
Return on equity(ROE) (%) - 1.5 2.8 3.4 3.9
Price earnings ratio(PER) (Times) - 64.8 28.1 18.4 23.4
Dividend per share(annual) (Yen) 25 33 70 70 40
Payout ratio (%) - 98.2 93.3 93.2 46.9

Year Ending March 2022 Business Forecasts for the Full Year

Net sales
120,000 million yen (6.4% increase over the previous year)
Ordinary profit
3,100 million yen (65.0% increase over the previous year)
Net profit
2,300 million yen (39.7% increase over the previous year)

* The figures are announced on February 3, 2022. Please see the following article for further details.
Summary of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022