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Earnings presentation6707Sanken Electric Co.,Ltd.Electrical Equipment and Precision Instruments

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

In the fiscal year ended March 2026, revenue declined significantly due to lower demand, mainly for white goods, and production adjustments, while operating and net losses continued. In the fiscal year ending March 2027, the company expects to return to operating profitability through securing appropriate selling prices, increased production, structural reforms and cost reductions.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-414
¥100 million (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFull-year results for the fiscal year ended March 2026 and earnings forecast for the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales802 Hundreds of millions of yen-34.1%
Operating profit-47 Hundreds of millions of yen
Ordinary income-88 Hundreds of millions of yen
Net income-98 Hundreds of millions of yen
Results for the three months of the current quarterDisclosed
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
865 Hundreds of millions of yen
Operating profit
14 Hundreds of millions of yen
Ordinary income
1 Hundreds of millions of yen
Net income for the current fiscal year
10 Hundreds of millions of yen
Earnings per share
¥48.26
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sanken Core revenue decline, mainly in the white goods market-114 Hundreds of millions of yen
  • Foreign exchange impact on Sanken Core revenue-5 Hundreds of millions of yen
  • Foreign exchange impact on Sanken Core operating profit-2 Hundreds of millions of yen
  • Production build-up impact associated with back-end production restructuring (Q1–Q3)13 Hundreds of millions of yen
  • Production adjustments (Q4)-29 Hundreds of millions of yen
  • Income from equity-method investments / LPS management gains or losses-30 Hundreds of millions of yen
  • Foreign exchange losses-12 Hundreds of millions of yen
  • Gain on sale of non-current assets11 Hundreds of millions of yen
  • Gain on changes in equity interests25 Hundreds of millions of yen
  • Loss on disposal of fixed assets and impairment loss-8 Hundreds of millions of yen
  • Special retirement payments-24 Hundreds of millions of yen
  • Income Taxes-9 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed exchange rate for the fiscal year ending March 2027155 JPY/USD
  • Sensitivity to exchange rate movements against the U.S. dollar (annual impact of a ¥1 movement): revenue4 Hundreds of millions of yen
  • Sensitivity to exchange rate movements against the U.S. dollar (annual impact of a ¥1 movement): operating profit1.3 Hundreds of millions of yen
  • CY26 OEM production forecast93 million vehicles
  • Break-even point (fiscal year ending March 2027)830 Hundreds of millions of yen
New initiatives
  • Securing appropriate selling-price terms reflecting higher metal benchmark prices
  • Expanding sales of white goods products in India, Europe and the United States
  • Expanding sales in new fields, including data centers and mobility
  • Expanding sales of new products, including high-voltage case modules and digital power ICs incorporating 22nm MCUs
  • Reducing costs through material changes, including the transition to copper wire
  • Production collaboration for back-end processes
  • Reducing fixed costs at Yamagata Sanken
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio50.1 %
    Year on year against the same period last yearDown from 56.9%
  • D/E ratio0.67 times
    Year on year against the same period last yearUp from 0.43x
  • Global IPM ranking5 rank
  • Domestic IPM ranking3 rank
  • IPM market share10 %
Segment results
サンケンコア
Net Sales
786 Hundreds of millions of yen-12.7%
Operating profit
-45 Hundreds of millions of yen
Other
Net Sales
16 Hundreds of millions of yen
Medium-term management plan targets
Fiscal year ending March 2028
Sanken Core revenue875 Hundreds of millions of yen
Operating profit14 Hundreds of millions of yen
Next medium-term management plan targets
Sanken Core revenue¥100 billion or more
Operating profit margin4% or higher
Market Size / Share
IPM
World ranking5th
Domestic ranking3rd
Sanken Electric market share10%
Annual Dividend
No dividend for the fiscal year ended March 2026. The policy for the fiscal year ending March 2027 has not yet been determined.
Acquisition of treasury shares
Acquisition price300
Amount unitHundreds of millions of yen
Number of shares acquired417
Share unit10,000 shares
Completion dateBy September 2025
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFull-year results for the fiscal year ended March 2026 and earnings forecast for the fiscal year ending March 2027
Net Sales802 Hundreds of millions of yen (YoY -34.1%)
Operating profit-47 Hundreds of millions of yen
Ordinary income-88 Hundreds of millions of yen
Net income-98 Hundreds of millions of yen
Results for the three months of the current quarterDisclosed
Full-year earnings forecastFiscal year ending March 2027 Net Sales 865 Hundreds of millions of yen / Operating profit 14 Hundreds of millions of yen / Ordinary income 1 Hundreds of millions of yen / Net income for the current fiscal year 10 Hundreds of millions of yen / Earnings per share ¥48.26
Segment resultsサンケンコア Net Sales 786 Hundreds of millions of yen (YoY -12.7%) / Operating profit -45 Hundreds of millions of yen / Other Net Sales 16 Hundreds of millions of yen / Operating profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Sanken Core revenue decline, mainly in the white goods market / Amount -114 Hundreds of millions of yen, Factors Foreign exchange impact on Sanken Core revenue / Amount -5 Hundreds of millions of yen, Factors Foreign exchange impact on Sanken Core operating profit / Amount -2 Hundreds of millions of yen, Factors Production build-up impact associated with back-end production restructuring (Q1–Q3) / Amount 13 Hundreds of millions of yen, Factors Production adjustments (Q4) / Amount -29 Hundreds of millions of yen, Factors Income from equity-method investments / LPS management gains or losses / Amount -30 Hundreds of millions of yen, Factors Foreign exchange losses / Amount -12 Hundreds of millions of yen, Factors Gain on sale of non-current assets / Amount 11 Hundreds of millions of yen, Factors Gain on changes in equity interests / Amount 25 Hundreds of millions of yen, Factors Loss on disposal of fixed assets and impairment loss / Amount -8 Hundreds of millions of yen, Factors Special retirement payments / Amount -24 Hundreds of millions of yen, Factors Income Taxes / Amount -9 Hundreds of millions of yen
Key KPIsIndicator name Equity ratio / Value 50.1 % / Year on year against the same period last year Down from 56.9%, Indicator name D/E ratio / Value 0.67 times / Year on year against the same period last year Up from 0.43x, Indicator name Global IPM ranking / Value 5 rank / Year on year against the same period last year Not disclosed, Indicator name Domestic IPM ranking / Value 3 rank / Year on year against the same period last year Not disclosed, Indicator name IPM market share / Value 10 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Assumed exchange rate for the fiscal year ending March 2027 / Value 155 JPY/USD, Item Sensitivity to exchange rate movements against the U.S. dollar (annual impact of a ¥1 movement): revenue / Value 4 Hundreds of millions of yen, Item Sensitivity to exchange rate movements against the U.S. dollar (annual impact of a ¥1 movement): operating profit / Value 1.3 Hundreds of millions of yen, Item CY26 OEM production forecast / Value 93 million vehicles, Item Break-even point (fiscal year ending March 2027) / Value 830 Hundreds of millions of yen
Medium-term management plan targetsFiscal year ending March 2028 Sanken Core revenue 875 Hundreds of millions of yen / Operating profit 14 Hundreds of millions of yen / Next medium-term management plan targets Sanken Core revenue ¥100 billion or more / Operating profit margin 4% or higher
Annual DividendNo dividend for the fiscal year ended March 2026. The policy for the fiscal year ending March 2027 has not yet been determined.
Acquisition of treasury sharesAcquisition price 300 / Amount unit Hundreds of millions of yen / Number of shares acquired 417 / Share unit 10,000 shares / Completion date By September 2025
Market Size / ShareIPM World ranking 5th / Domestic ranking 3rd / Sanken Electric market share 10%
New initiativesSecuring appropriate selling-price terms reflecting higher metal benchmark prices, Expanding sales of white goods products in India, Europe and the United States, Expanding sales in new fields, including data centers and mobility, Expanding sales of new products, including high-voltage case modules and digital power ICs incorporating 22nm MCUs, Reducing costs through material changes, including the transition to copper wire, Production collaboration for back-end processes, Reducing fixed costs at Yamagata Sanken
Items this document does not state (14)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout ratioCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the fiscal year ended March 2026, the factors cited include lower revenue in the white goods market, particularly a decline in sales to Chinese customers, foreign exchange effects, production adjustments, deterioration in income from equity-method investments and LPS management, foreign exchange losses, and special retirement payments. For the fiscal year ending March 2027, the company expects to secure appropriate selling-price terms to offset higher metal benchmark prices, expand white goods sales to South Korea, increase production, reorganize production, reduce expenses, and benefit from foreign exchange effects.

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Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | Sanken Electric Co.,Ltd. (6707) timely disclosure | Komori