Financial Results for Q1 FY2025
May 22, 2025
Sanden Corporation
© 2025 SANDEN CORPORATION
Financial Results for Q1 2025
Key Points of Q1 Financial Results
Overview of Consolidated Financial Results
Sales Revenue by Segment
Year-on-year Variance Analysis
Key Indicator Trend
Consolidated Balance Sheet
Business Environment Analysis and Structural Reform
Conclusion
© 2025 SANDEN CORPORATION
Key Points of Q1 Financial Results
Revenue
-
YoY revenue decreased by ¥1 billion (down 2.1%)
E U :
C h i n a : A s i a :
Americas:
Decreased revenue due to production adjustments of existing models in response to changes in market conditions. Decreased revenue due to adjustments in EV vehicle production
Increased revenue compared to the previous year due to growth in local OEM business
Increased revenue compared to the previous year is due to the launch of a new vehicle business for EV manufacturers.
Situation By Region
Sanden Corporation Q1 2025 Financial Results
Foreign exchange impact:
+400 million yen
Profit
Improvement Factors | Improving productivity in the Americas and China Reversal of inventory valuation loss due to an increase in EC sales in North America. |
-
Operating Profit: ¥700 million recovery in profits YoY
Reasons for the decline in
profits:
Foreign exchange valuation losses on foreign currency-denominated receivables and payables that are
non-operating
-
Ordinary Profit：¥1.5 billion decrease in profits YoY
Reasons for the decline in
profits:
The sale of fixed assets was unable to offset the decline in ordinary profit.
Net income attributable to the parent company：¥1.3 billion decrease in profits YoY
Measure
Due to enhanced front-loading activities, new commercial rights increased significantly YoY.
Reduced SG&A expenses, including expense reductions, and improved the SG&A ratio to revenue YoY.
Improved logistics costs through joint container freight contracts with the Hisense Group.
Key Points of Q1 Financial Results
Overview of Consolidated Financial Results
Sanden Corporation Q1 2025 Financial Results
[Unit: 100M]
FY2024
Jan-Mar 2024
FY2025
Jan-Mar 2025
YoY
Variance
Percent Change
Revenue
465
455
△10
－2.1%
Automotive Component
461
453
△8
－1.7%
Others
4
2
△2
－50.0%
Operating Profit
△18
△10
7
ー
Equity Gains of Affiliated Companies
10
10
０
０％
Foreign Exchange
13
△7
△20
ー
Ordinary Profit
6
△8
△15
ー
Net Income
Attributable to Owners of the Parent
3
△10
△13
ー
EBITDA
23
13
△10
－44.1%
Foreign Exchange
US＄
148円
153円
4円
EUR
161円
161円
△1円
※ Equity Gains of Affiliated Companies: This mainly relates to Sanden Huayu Automotive Air Conditioning Co., Ltd., an equity-method affiliate of our company.
（Some of our products are sold through joint ventures in markets such as China, and revenue from these joint ventures is recorded as non-operating revenue in our financial statements.）
Actual figures are rounded off to the nearest ¥10 million.
*Exchange rate: Market average rate
Sales Revenues by Segment: By Region
Revenue: ¥45.3 billion
YoY:－¥800 million（YoY:－2％）
（Including foreign exchange impact: +4）
※Automotive Components segment only. Excluding other businesses.
Sanden Corporation Q1 2025 Financial Results
Ratio of regional composition
7%
Europe
15% 35%
21%
22%
Asia
China
Americas Japan
[Unit: ¥100M]
EU
Asia
China
Americas
Japan
174
-16
(-9.3%)
158
Decrease in the production volume of current models due to changes in market conditions.
Expansion of sales of mechanical compressors
(for manufacturers in India and
EC production volume decreased due to reduced EV vehicle sales by customers.
Increase in EC production volume due to the launch of new models
by EV manufacturers
Decrease in production volume due to reduced sales by automotive and construction
200
200
Singapore)
200
200
200
machinery customers
160
120
160
120
160
120
160
120
160
35 -3
(-9.3%)
32
120
85
+13
(+15.3%)
98
80 80 80
40 40 40
80 80
56
+11
67
(+20.7%)
40 40
0
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
0
111
-14
97
(-12.3%)
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
Sales Revenues by Segment: By Product
Revenue: ¥45.3 billion
YoY: －¥800 Million（YoY:－2％）
(Including foreign exchange impact: +4）
※Automotive Components segment only. Excluding other businesses.
Sanden Corporation Q1 2025 Financial Results
Product composition ratio
9%
MC
HVAC EC
Mechanical Compressor
Heating, Ventilating and Air-Conditioning
19%
Electric Compressor
51%
21%
ITMS
Integrated Thermal Management System
*ITMS includes other products
[Unit: ¥100M]
MC
HVAC
EC
ITMS
Although sales volume decreased for European manufacturers, demand increased in Asia.
Increased demand in Asia and China
Decrease in customers' EV vehicle sales in China
Decrease in vehicle sales, mainly NEVs
250
200
150
100
50
250
229
+0
(+0.1%)
229
200
150
100
50
250
97
+22
75 (+29.8%)
200
150
100
50
250
108
-23
(-21.2%)
85
50
-9
(-16.8%)
41
200
150
100
50
0
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
0
2024
Q1
2025
Q1
Q1 2025 Financial Results
Year-on-Year Variance Analysis: EBITDA Sanden Corporation
FY2024→FY2025
2024
2025
Difference
Revenue
465
455
-10
EBITDA
23
13
-10
An improvement of ¥800 million was achieved by constitutional
improvement, excluding the effects of foreign exchange.
Improved productivity in China and the Americas
Cost control through ongoing efforts to reduce SG&A expenses
[Unit: ¥100M]
+3
23
-1
+5
-1
-0.4
+0.3
+1
+2
13
-19
2024
Q1
2025
Others | Price | Equity | Growth | Logistic | SG&A | Volume | Productivity | Exchange |
Method | Investment | Cost | Rate |
1Q
5．Key Indicator Trends
Sanden Corporation Q1 2025 Financial Results
New Commercial Rights: | Expanding commercial rights in Europe, China, and the Americas, with a focus on electric compressors, one of our strategic products. |
Revenue: | Year-on-year revenue decreased due to a decline in customer sales in Europe and China. |
Ordinary Profit: | Profit decreased due to foreign exchange losses on foreign currency-denominated receivables and payables from non-operating activities. |
EBITDA: | Although we strengthened our business structure by improving productivity and SG&A expenses, EBITDA decreased due to foreign exchange effects. |
[Unit: ¥100M]
New Commercial Rights
Revenue
Ordinary Profit
EBITDA
702
327
892
427
465
455
23
16
13
6.2
0.2
-8.2
2023
1Q
Actual
2024
1Q
Actual
2025
1Q
Actual
2023
1Q
Actual
2024
1Q
Actual
2025
1Q
Actual
2023
1Q
Actual
2024
1Q
Actual
2025
1Q
Actual
2023
1Q
Actual
2024
1Q
Actual
2025
1Q
Actual
Q1 2025 Financial Results
Consolidated Balance Sheet Sanden Corporation
Assets
Liabilities & Net Assets
[単位：億円] [Unit: ¥100M]
Cash & Deposit
Accounts
412
738
(600)
377
(87日)
477
587
(397)
385
(86日)
Receivable
1,671
1,755
179
355
（69 Days）
1,727
388
（75 Days）
138
Accounts Payable
1,671 1,755
1,727
378 369
Inventory Assets
Others Fixed Assets
（87 Days）
94
748
（86 Days）
96
736
Loans
（Net Debt）
Others Net Assets
221
（13.2％）
443
698
(520)
377
(22日)
236
（13.4％）
201
（11.6％）
698
96
322
（74 Days）
364
（71 Days）
191
Mar 2024 Dec 2024 Mar 2025 Mar 2024 Dec 2024 Mar 2025
USD: 151
USD:158
USD:151
（Equity Capital: 214）
（Equity Capital: 226） （Equity Capital: 191）
EUR: 163
EUR:165
EUR:163
（12.8％）
（12.9％）
（11.1％）
*Number of days: Term-end balance / (most recent 3 months revenue / 90)
*Individual account items are rounded, so the total may not match.
*Accounts receivable exclude Iranian receivables.
Business Environment Analysis and Structural Reform
Sanden Corporation Q1 2025 Financial Results
Business Environment To Achieve the Medium-Term Business PlanOrdinary Profit
Revenue
Global Automotive Production Forecast
Global automotive production in 2025 will decrease by 1.56 million units compared to
the forecast in January of this year.
Due to policy changes in the US, global economic growth is expected to slow down in the short term.
2024 Actual 2025 (Fcst as of Jan) 2025 (Fcst as of Apr)
3,000
Plan Actual Forecast
90
（Unit:10K）
800
Jan-Mar
2024:21.4 M units
⇒2025:21.7 M units
(+1.3%)
Annual
Risk of Decline
Risk
in Production
700
2024: 89.5 M units
Volume
～
⇒2025: 87.9 M units
(-1.7%)
Jan Feb Mar
0
2024 2025 2026 2027 2028
Risk
2024 2025 2026 2027 2028
Apr May Jun Jul Aug Sep Oct Nov Dec
Exchange Rate Impact
Significant fluctuations due to US tariff policies, with a tendency toward a strong yen.
Exchange rate fluctuations and instability continue to be caused by financial policies in
various countries.
Urgent improvements are needed in order to prepare for the risk of further deterioration in profit levels.
Implementation of Human Resource Restructuring・The directors and executive officers have declined their executive compensation.
・Voluntary retirement program announced (300 employees in Japan)
Jan-Mar
EUR USD CNY
2025
2025
2025年1月1日基準
Risks Associated with a Strong Yen
2025
Strengthen our business structure through structural reforms to improve profitability and respond quickly to changes in the environment.
Jan 1
Mar 31
Apr 30
The impact of voluntary retirement on earnings forecasts will be announced once it has been determined.
Conclusion
Sanden Corporation Q1 2025 Financial Results
Sanden will steadily implement our medium-term strategies and achieve the
Medium-Term Business Plan, "SHIFT 2028".
１．
Expansion of Sales Scale２． Strengthening Earnings Power
３．
Thorough Risk ManagementPromote new business opportunities and expand NEV products while maintaining the ICE product market.
EU: Pay close attention to customer trends, including the transition to NEVs and environmental regulations.
China: Achieve continuous growth by leveraging market presence in China and collaborating with joint venture partners.
Asia: Expand the market by taking advantage of the growth of the Indian market and the entry of Chinese OEMs.
Americas: Monitor trends in tariff policies closely, establish an optimal production system, and expand the market share by mass-producing products for which commercial rights have already been obtained.
Japan: Strengthen the system business and build a foundation for future growth by strengthening relationships with OEMs.
Pursue high-value-added products. Implement structural reforms to generate profits.
Increase added value by transitioning to a system solution supplier.
Increase profitability by maximizing the utilization of existing assets. Promote asset liquidation.
Improve development efficiency through platform development.
Improve procurement capabilities and productivity by enhancing the supply chain.
Promote continuous measures to strengthen our corporate constitution (e.g., implement human resource structural reforms).
Prevent risks in advance by accurately grasping the changing business environment.
Capture market changes, execute investments at the right time, and optimize inventory.
Transition to a profit-oriented structure in anticipation of exchange rate fluctuations.
In light of geopolitical risks, including tariffs, diversify the supply chains.
Disclaimer
This material is intended to provide information on the Company's management policies, plans, financial condition, etc., and is not intended as a
solicitation to buy, sell, or otherwise invest in the Company's stock.
Forecasts and forward-looking statements contained in this material are based on information available to the Company as of the date of publication of this material and on certain assumptions and expectations. Accordingly, actual results, performance or achievements may differ materially due to economic trends, market price conditions, currency exchange rate fluctuations and other risks and uncertainties.
The Company assumes no obligation to update any forecasts or forward-looking statements contained in this document.
For questions or inquiries regarding this matter, please contact Mail :sdhd.prcsr.jp@g-sanden.com