(This document has been translated from the original document in Japanese. In the event of any discrepancy between this English translationand the original document in Japanese, the original document in Japanese shall prevail.)

May 11, 2023
Name of Company: Sanshin Electronics Co., Ltd.
Representative: Toshiro Suzuki (Representative Director, COO)
(Code No. 8150 Listed in the Prime Market of the Tokyo Stock Exchange)
Enquiries to: Jun-ichi Murakami (Director, Operating Officer and Senior General
Manager of Finance & Accounting Division)(Tel: +81-3-3453-5111)
For Immediate Release:

Notice Regarding Absorption-Type Merger of Wholly-Owned Subsidiaries(Simplified Merger and Short-Form Merger)
At the meeting of the Board of Directors held today, the Company passed a resolution to perform an absorption-typemerger (hereinafter, “the Merger”) of the Company’s wholly-owned subsidiaries Sanshin Network Service Co., Ltd.
(hereinafter, “SNS”) and Sanshin Media Solutions Co., Ltd. (hereinafter, “SMS”), effective April 1, 2024. Details arelisted below.
Since the Merger is an absorption-type merger targeting wholly-owned subsidiaries, some disclosure items and details
have been omitted from this notice.
Details
1. Purpose of the Merger
The Company’s subsidiaries SNS and SMS were established with the main role of strengthening maintenance support
after system construction in the Company’s solution business. More than 20 years have passed since the establishmentof SNS and SMS. As the provided technology and support format have changed, strong demand has arisen for theprovision of services that cover the entire system. In order to expand service provision type business and expand ourcustomer base, strengthening the ability to make even more comprehensive proposals has become an important issue
for the Company. By consolidating the technological capabilities of SNS and SMS into the Company through theMerger, we aim to strengthen our proposal ability, especially in upstream processes, and to improve our competitive
advantage by increasing the flexibility of our proposal activities. In downstream processes, we aim to expand earnings
in the solution business through efforts to optimize the distribution of operations by strengthening cooperation withpartner companies.

12. Outline of the Merger(1) Schedule of the Merger
Date of resolution by the Board of Directors

May 11, 2023

Date of signing the Merger agreement

May 11, 2023

Effective date of the Merger

April 1, 2024 (planned)(2) Method of the Merger
This is an absorption-type merger in which the Company is the surviving company and SNS and SMS are the merged
companies. Because the Merger qualifies as a simplified merger as defined in Article 796, Paragraph 2 of theCompanies Act of Japan for Sanshin Electronics, and as a short-form merger as defined in Article 784, Paragraph 1of the Companies Act of Japan for SNS and SMS, the Company and SNS/SMS will implement the Merger withoutobtaining approval for the Merger agreement at their respective general shareholders’ meetings.
(3) Details of allotment related to the Merger
As SNS and SMS are wholly-owned subsidiaries of the Company, no shares, money, etc., will be allotted as a resultof the Merger.
(4) Handling of stock acquisition rights and bonds with stock acquisition rights upon the Merger
No applicable items.

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3. Overview of the companies involved in the Merger (as of March 31, 2023)(1) Name(2) Address(3) Representative(position/name)(4) Business activities(5) Capital(6) Founded(7) Number of issued
shares(8) Fiscal year end(9) Major shareholders
and shareholding ratio

Surviving Company
Sanshin Electronics Co.,Ltd.
4-4-12, Shiba, Minato-ku,
Tokyo
Representative Director,
COO Toshiro Suzuki

Merged Companies
Sanshin Network Service Sanshin Media Solutions
Co., Ltd.
Co., Ltd.
4-4-12, Shiba, Minato-ku, 4-4-12, Shiba, Minato-ku,
Tokyo
Tokyo
Representative Director,President Yuji Mori
President Hiroyuki
TakanoTechnical services forTechnical services andinformation andinformation provision forcommunication systems
broadcasting businesses

・Sales, imports, andexports of semiconductors
and electronic
components
・Sales, imports, andexports of electronic
devices¥14,811 million
November 1, 1951
16,281,373 shares¥30 million
November 1, 2002

¥10 million
November 22, 2001

600 shares

200 shares

March 31
March 31・Matsunaga Eiichi, Ltd. ・Sanshin Electronics Co.,
12.97% Ltd.
・NEC Corporation
100%
Notes:
8.50%
・Treasury stock held by ・The Master Trust Bank
the Company is excluded of Japan, Ltd. (Trustfrom the major
Account)
shareholders listed on the
8.29%
right.
・Sumitomo Mitsui
・Treasury stock isBanking Corporation
excluded when
4.98%calculating shareholding
・MUFG Bank, Ltd.
ratios.
3.69%(10) Operating results and financial position for the most recent fiscal year
FY 2022 (nonFY 2022 (nonFiscal yearconsolidated)consolidated)
Net assets¥18,269 million¥342 million
Total assets¥47,370 million¥586 million
Net assets per share¥1,498.46¥570,282.75
Net sales¥104,800 million¥1,296 million
Operating profit¥1,679 million¥165 million
Ordinary profit¥3,063 million¥165 million
Net profit¥2,262 million¥107 million
Net profit per share¥185.59 yen¥178,582.44

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March 31
・Sanshin Electronics Co.,
Ltd.
100%

FY 2022 (nonconsolidated)¥16 million¥29 million¥84,945.40¥147 million¥1 million¥1 million¥1 million¥8,113.69

4. Status after the Merger
There will be no changes in trade name, address, name and position of representative, business activities, capital, or
fiscal year end of the Company.
5. Impact on results
Since it involves wholly-owned subsidiaries, the Merger will not have any material impact on the Company’s
consolidated results.
End4