SINFONIA TECHNOLOGY CO., LTD.

Business Details

A segment providing precision transfer technology under clean environment conditions, centered on Handling Equipment for Semiconductor Manufacturing Equipment (EFEM, sorters, etc.). The Company manufactures and sells domestically, while its subsidiary SINFONIA TECHNOLOGY (THAILAND) CO.,LTD. handles manufacturing and sales, and Sinfonia Technology (Shanghai) Trading Co., Ltd. handles sales. SINFONIA TECHNOLOGY (AMERICA) INC. was added to the scope of consolidation from the current fiscal year. Against a backdrop of recovering demand for semiconductor manufacturing equipment, both orders and sales are on an expanding trend, and the segment is positioned as a growth driver in the semiconductor-related field under the medium-term management plan "SINFONIA NEXT DREAM."

Recent Overview

Achieved double-digit growth in both net sales and operating profit on the back of a recovery in AI semiconductor-related demand

In FY2026 (ending March 2026), demand for semiconductor-related investment trended on a recovery path, with orders received of ¥28,586 million (up 9.5% year on year), net sales of ¥28,029 million (up 11.5%), and operating profit of ¥4,797 million (up 19.2%). In particular, capital investment demand related to AI semiconductors showed a strengthening recovery trend from the fourth quarter onward. In addition, SINFONIA TECHNOLOGY (AMERICA) INC., previously a non-consolidated subsidiary, was added to the scope of consolidation from the current fiscal year, strengthening the overseas business foundation. The order backlog also grew to ¥7,833 million (up 14.6% from the end of the prior fiscal year), and contribution to sales in future periods is expected.

Key Products

Growth Drivers

• Expansion of AI semiconductor-related capital investment (recovery trend accelerating from the fourth quarter onward)
• Accumulation of orders backed by medium- to long-term demand growth in the semiconductor manufacturing equipment market
• Promotion of sales expansion for system products such as EFEM and sorters
• Strengthening of the overseas business foundation through the consolidation of SINFONIA TECHNOLOGY (AMERICA) INC.
• Concentration of technical resources in the semiconductor-related field under the medium-term management plan "SINFONIA NEXT DREAM"
• Expansion of orders in front-end processes and development/commercialization of products supporting back-end process automation

Risks

• Risk of demand fluctuation in the semiconductor manufacturing equipment market (uncertainty over timing and scale of recovery)
• Impact on the semiconductor supply chain from geopolitical risk and US tariff policy
• Intensifying technological competition with competitors (competitive environment remains severe in both front-end and back-end processes)
• Risk of delayed capacity expansion, as capital expenditures remain at a low level of ¥587 million
• Risk of fluctuation in the overseas sales ratio (impact of exchange rate movements and tightening of export regulations)

Business Details

This segment comprises a diverse range of products including Electrical Components for Aircraft and Space Rockets, Servo Actuators, Electromagnetic Clutches and Brakes, Electrical Components for Railway and Construction Vehicles, Airport Ground Support Vehicles, and Large Self-Propelled Dollies for Heavy Cargo Transport. It is the core segment boasting the largest sales scale and order backlog within the group, supported by brisk demand for aerospace-related equipment centered on electrical components for the Ministry of Defense and strong demand for actuators for semiconductor manufacturing equipment. Manufacturing is carried out by the Company as well as Sinfonia Technology (Dongguan) Co., Ltd., Sinfonia Micro Tech Co., Ltd., SINFONIA MICROTEC (VIETNAM) CO.,LTD., and others (Osaki Electric Co., Ltd. was excluded from the scope of consolidation during the current fiscal year).

Recent Overview

Both net sales and operating profit increased substantially, with order backlog accumulating to ¥79,403 million

In FY2026 (ending March 2026), against a backdrop of continued steady orders for actuators for semiconductor manufacturing equipment and high-level orders for aerospace-related equipment, net sales reached ¥50,731 million (up 17.1% year on year) and operating profit reached ¥6,864 million (up 41.6%). Orders received were ¥65,997 million (down 0.7%), roughly in line with the prior year, but the order backlog accumulated to ¥79,403 million (up 23.8%), giving high visibility into future sales. Capital expenditures surged to ¥7,961 million (up 250%) as investment for capacity expansion in the aerospace field under the medium-term management plan. Osaki Electric Co., Ltd. was excluded from the scope of consolidation during the current fiscal year.

Key Products

Growth Drivers

• Continued demand and high-level orders for aerospace-related equipment (electrical components for the Ministry of Defense, etc.) due to the major expansion of the defense buildup program
• Steady orders for actuators for semiconductor manufacturing equipment backed by the recovery in AI semiconductor-related capital investment demand (recovery trend strengthening from the fourth quarter onward)
• Improvement in profit margin in addition to increased net sales, achieving a 41.6% year-on-year increase in operating profit and a 13.5% operating profit margin for FY2026 (ending March 2026)
• High visibility into future sales due to the accumulation of order backlog to ¥79,403 million (up 23.8% year on year)
• Aggressive capital investment (¥7,961 million) aimed at doubling production capacity in the aerospace field under the medium-term management plan "SINFONIA NEXT DREAM"

Risks

• Uncertainty over the continuity of high-level orders, as orders received declined 0.7% year on year to ¥65,997 million
• Uncertainty in the business environment due to geopolitical risk and trends in US tariff policy
• Sharp increase in capital investment burden accompanying the expansion of aerospace production capacity (¥7,961 million in the current fiscal year, up 250% year on year)
• Risk that the pace of recovery in semiconductor manufacturing equipment demand falls short of expectations
• Impact from changes to the business structure following the exclusion of Osaki Electric Co., Ltd. from the scope of consolidation

Business Details

Manufactures and sells Automotive Evaluation Systems / Full-Scale Crash Test Systems; equipment for social infrastructure such as Electrical Instrumentation for Water/Sewage Systems and Road Management Electrical Equipment; industrial electric power equipment such as Lifting Magnets / Submerged Motors / Vacuum Melting Furnaces / small and medium-sized generators; and vibration application equipment such as Vibratory Conveying Equipment / Parts Feeders and coffee roasting equipment. The Company is the main entity, while some products are manufactured and sold by SINFONIA TECHNOLOGY (THAILAND) CO.,LTD., with sales handled by Sinfonia Technology (Shanghai) Trading Co., Ltd.

Recent Overview

A decline in sales of automotive test equipment weighed on results, with both net sales and operating profit falling below the prior year

In fiscal 2025 (FY2026 (ending March 2026)), the Power Electronics Equipment segment recorded net sales of ¥25,090 million (down 4.5% year on year) and operating profit of ¥3,280 million (down 3.6%). A decline in orders for automotive test equipment, centered on EV applications, pushed down both sales and profit. On the other hand, orders received increased to ¥29,544 million (up 9.9%) due to large-scale orders received for electrical equipment for sewage facilities and vibration equipment for overseas markets, and the order backlog also grew to ¥36,787 million (up 13.8%).

Key Products

Growth Drivers

• Continued replacement demand for electrical equipment for water/sewage facilities (addressing aging social infrastructure)
• Large-scale orders received for overseas vibration equipment (contributing to a 9.9% year-on-year increase in orders received in fiscal 2025)
• Future sales contribution from the order backlog of ¥36,787 million (up 13.8% from the end of the prior fiscal year)
• New market development through the development of electric power equipment for the hydrogen and ammonia fields under the medium-term management plan "SINFONIA NEXT DREAM"
• Expansion of demand for industrial electric power equipment through capturing DX and labor-saving capital investment demand

Risks

• Decline in orders for automotive test equipment centered on EV applications (main factor behind the 4.5% year-on-year decline in net sales in fiscal 2025)
• Demand uncertainty due to geopolitical risk and trends in US tariff policy
• Fluctuation in quarterly results due to the seasonal concentration of sales to public/social infrastructure customers (concentrated in the second and fourth quarters)
• Changes in demand structure for existing products (such as evaluation systems for internal combustion engines) accompanying the shift to electrification in the automotive industry
• Risk of recording provisions for losses on order contracts (fluctuation in estimates of future losses related to order contracts)

Business Details

Sinfonia Engineering Co., Ltd. leads the development of Electrical and Mechanical Equipment Construction Contracting / Engineering and Hospital In-House Transport System Engineering. Sinfonia Trading Co., Ltd. and I.C.S. Co., Ltd. handle Peripheral Services (Warehousing, Transportation, Staffing, Software Development, etc.) such as warehousing, transportation, staffing, and software development. Major customers include semiconductor manufacturing plants (including Taiwan-affiliated ones), public sector demand (water/sewage, roads, etc.), and medical institutions. There is also a certain scale of internal sales within the group (internal transfers); in fiscal 2025, internal transfers of ¥5,550 million were added to external net sales of ¥24,346 million.

Recent Overview

Net sales declined slightly, but a surge in large-scale orders led to a 93.5% year-on-year increase in order backlog

Net sales in fiscal 2025 came to ¥24,346 million (down 0.2% year on year), a slight decline, but orders received increased significantly to ¥34,803 million (up 44.3%) due to the receipt of large-scale, long-construction-period projects related to domestic electrical equipment construction. The order backlog expanded sharply to ¥21,640 million (up 93.5%), significantly expanding room for future sales accumulation. On the profit side, improved margins led to operating profit of ¥3,697 million (up 8.5%) and an operating profit margin of 15.2%, a substantial improvement from 11.6% in the prior fiscal year.

Key Products

Growth Drivers

• Sharp increase in the order backlog (¥21,640 million) supporting future sales, driven by a surge in large-scale orders related to domestic electrical equipment construction (orders received up 44.3% in fiscal 2025)
• Steady replacement demand for electrical equipment construction for public sector customers (water/sewage, road management, etc.) accompanying defense reinforcement and DX/labor-saving investment
• Recovery in demand for transfer equipment construction for semiconductor manufacturing plants (AI semiconductor-related capital investment recovering from the fourth quarter onward)
• Continued profit margin improvement measures (operating profit margin improved by 3.6 percentage points year on year to 15.2% in fiscal 2025)
• Measures to improve customer satisfaction through engineer reinforcement and enhanced after-sales service systems

Risks

• Risk that engineer shortages and difficulty in securing human resources become a bottleneck for construction capacity relative to the sharp increase in order backlog (¥21,640 million)
• Fluctuation in quarterly results due to the seasonality of budget execution for public sector projects (concentrated in the second and fourth quarters)
• Electrical equipment construction for semiconductor manufacturing plants is prone to risk from changes or delays in customers' investment plans
• Risk of customers curbing capital investment due to the impact of geopolitical risk and US tariff policy
• Risk that revenue is linked to the performance trends of other group segments, given the high proportion of internal transfer sales (¥5,550 million in internal transfers in fiscal 2025)