Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

February 5, 2015

Summary of Financial Results for the First Three Quarters of the Fiscal YearEnding March 31, 2015
(Nine Months Ended December 31, 2014)[Japan Standards] (Consolidated)

Name of Listed Company:
Sanshin Electronics Co., Ltd.
Stock Exchange Listed: 1st Section, Tokyo
Code No.:
8150
URL: http://www.sanshin.co.jp
Representative: Toshiro Suzuki (President & COO)
Enquiries to:
Akio Misono, Director and General Manager of Finance Headquarters Tel.: +81-3-3453-5111
Scheduled date of filing of Quarterly Report:
February 9, 2015
Scheduled date of dividend payment:－
Supplementary materials for the quarterly financial results: None
Investor conference for the quarterly financial results: None
(Amounts are rounded down to the nearest million yen)

1.

Consolidated Business Performance for the First Three Quarters of March 2015 Term(April 1, 2014 – December 31, 2014)(1) Consolidated business performance (cumulative)(% figures represent year-on-year increase or decrease)
Net sales

Operating profit

Million yen

3Q March 2015 Term
3Q March 2014 Term
(Note) Comprehensive income%

Million yen

Ordinary profit%

156,419
7.9
2,279
44.1
144,985
26.1
1,582
50.5
3Q March 2015 Term: 3,066 million yen (8.2%);
Net profit per share

3Q March 2015 Term
3Q March 2014 Term

Million yen

Net profit%

Million yen

%

2,177
33.5
1,445
36.8
1,631
72.1
1,056
57.5
3Q March 2014 Term: 2,834 million yen (58.0%)

Diluted net profit per share
Yen

Yen

51.28
37.24

－
－

(2) Consolidated financial position
Total assets

Net assets

Million yen

3Q March 2015 Term
March 2014 Term
(Reference) Shareholders' equity

Equity ratio

Million yen

98,662
93,5223Q March 2015 Term: 64,692 million yen;%

64,69262,255
March 2014 Term:

65.6
66.6
62,255 million yen

2. Dividends
1Q-endMarch 2014 Term
March 2015 Term
March 2015 Term (forecast)

Dividend per share
3Q-end2Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

－
－

10.00
10.00

－
－

10.00

20.00

10.00

20.00

(Note) Revision of most recent forecast on dividends:

NoneSanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

3. Forecasts for Consolidated Business Performance for March 2015 Term (April 1, 2014 – March 31, 2015)
Net sales
Million yen(% figures represent year-on-year increase or decrease)
Net profit per
Ordinary profit
Net profit
share

Operating profit
Million yen%

Million yen%

Million yen%

Yen

Full year
195,000
1.4
2,550(Note) Revision of most recent forecast on earnings:

%

1.3
None

2,450

(7.8)

1,650

(8.7)

58.55

* Annotations(1) Significant subsidiary change in the consolidated cumulative period of this quarter (changes in scope of consolidation):
Newly added:

None

Excluded:(2) Application of unique accounting to the preparation of quarterly consolidated financial statements:

None(3) Change of accounting principles, change of accounting estimate, and redisplay after revision:
1) Change of accounting principles caused by revision of accounting standards:
2) Change of accounting principles other than 1):
3) Change of accounting estimate:4) Redisplay after revision:

Yes

None

None

None

(Note) For further information, please refer to “2. Matters Concerning Summary Information (Notes) - (3) Change of accounting
principles, change of accounting estimate, and redisplay after revision”, on page 3 of [Appendix].

(4) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
3Q March 2015 Term:

29,281,373 shares

March 2014 Term:

29,281,373 shares

March 2014 Term:

1,101,952 shares

2) Number of treasury stock at the end of term:
3Q March 2015 Term:

1,102,116 shares

3) Number of average stock during the term (quarterly total):
3Q March 2014 Term

28,179,324 shares

3Q March 2014 Term:

28,369,549 shares* Indication concerning execution condition of quarterly review procedures
At the time of disclosure of these quarterly financial statements, the review procedures for the quarterly financial statements pursuant
to the Financial Instruments and Exchange Law have not been completed.

* Cautionary statement regarding forward-looking statements
The projected results and forward-looking statements included in this document reflect the Company's expectations based on
information available at the time of release, and are not intended as a guarantee that the Company will achieve these targets. The actual
performance may considerably differ from the forecast due to various factors.
See the section “1. Qualitative Information Concerning the Current Quarterly Settlement - (3) Explanation of Forecasts for Consolidated
Business Performance and Other Future Prospects” on page 3 of [Appendix] regarding the relevant matters for the above forecast forthe business performance.

Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

Contents of Appendix
1. Qualitative Information Concerning the Current Quarterly Settlement ......................................................... 2(1) Explanation of Business Results .................................................................................................................. 2(2) Explanation of Financial Position ................................................................................................................ 2(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects .................. 3
2. Matters Concerning Summary Information (Notes) ...................................................................................... 3(1) Significant Subsidiary Change in the Consolidated Cumulative Period of This Quarter ............................. 3(2) Application of Unique Accounting to the Preparation of Quarterly Consolidated Financial Statements ..... 3(3) Change of Accounting Principles, Change of Accounting Estimate, and Redisplay after Revision: ........... 3
3. Quarterly Consolidated Financial Statements ................................................................................................ 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 4(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Profit Statement........... 6(3) Notes on Quarterly Consolidated Financial Statements ............................................................................... 8(Notes regarding Going Concern) ...................................................................................................................... 8(Notes regarding Remarkable Change of Shareholder's Equity) ....................................................................... 8(Segment Information) ....................................................................................................................................... 8

1

Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

1. Qualitative Information Concerning the Current Quarterly Settlement(1) Explanation of Business Results
In the consolidated nine-month period under review, the global economic outlook grew increasingly uncertain
owing this to a visible slowdown in the Chinese economy among others, and despite the gradual recovery trend
in the United States, and also the signs of a slight recovery in Europe's overall business climate. In Japan, despitesome signs of weakness in demand accompanying the consumption tax hike, the economy stayed on a moderate
recovery path, supported by economic and monetary-easing policies taken by the government.
In the electronics industry, the increase in demand for mobile devices, including smartphones and tablet PCs,
continued to drive the semiconductor and electronic component markets. Meanwhile, in the domestic IT industry,
despite signs of moderate recovery in companies' willingness to invest, the demand situation remained tough,reflecting among others the drop in demand following the pre-tax hike purchasing rush.
In these circumstances, the Group made a continuous effort to increase sales and improve profitability bystrengthening its business power and consolidating management foundations.
As a result, the consolidated business performance during the nine months ended December 31, 2014, included
year-on-year increases in: net sales - up 7.9% to ¥156,419 million, operating profit - up 44.1% to ¥2,279 million,
ordinary profit - up 33.5% to ¥2,177 million, and net profit - up 36.8% to ¥1,445 million.
The operating results for each business segment are as follows:
Device segment
In the device segment, our leading products are semiconductors (including system LSIs, microcomputers,
LCD driver ICs, and memories, etc.) and electronic components (including connectors, capacitors, and circuitboards, etc.). These products are sold mainly to the electronics manufacturers. We also provide technicalsupport, such as software development and ASIC designs.
In the consolidated first three quarters under review, despite a decline in sales for the TOY sector, sales forsocial and industrial/vehicle-mounted systems remained solid.
As a result, consolidated segment sales increased 8.3% year-on-year to ¥147,496 million. The segment profit
ended at ¥1,612 million, up 50.3% year-on-year.
Orders received totaled ¥156,721 million, while the order backlog stood at ¥46,129 million.
Solution segment
In the solution segment, the Company develops business related to network and image editing systems. In
the network system business, we offer services including sales, maintenance, and support of the information
communication network and enterprise resource planning (ERP) systems, mainly targeting companies, medical
institutions, and national and local government agencies. In the image editing system business, we provide
systems and software products for editing, transmitting, and distribution of video content to customers
including the broadcast stations and video production companies.
In the consolidated first three quarters under review, in spite of a negative impact in demand following the
pre-tax hike purchasing rush, sales to public institutions improved steadily while sales in video-related products
focused on portable video transmitters increased.
As a result, consolidated segment sales increased 0.8% year-on-year to ¥8,923 million. The segment profit
ended at ¥565 million, up 1.1% year-on-year.
Orders received totaled ¥13,022 million, while the order backlog stood at ¥5,624 million.
(2) Explanation of Financial Position
Assets, liabilities and net assets
As of December 31, 2014, assets totaled ¥98,662 million. This represented an increase of ¥5,139 million,
compared to March 31, 2014. This was mainly attributable to a ¥9,579 million increase in notes and accounts
receivable-trade, a ¥1,998 million increase in merchandise inventories, as well as a ¥7,601 million decrease in
cash and deposits, etc.
Liabilities totaled ¥33,969 million. This represented an increase of ¥2,702 million, compared to March 31,
2014. This was mainly attributable to a ¥3,062 million increase in notes and accounts payable-trade, etc.
2Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

Net assets increased ¥2,437 million to ¥64,692 million, because of an ¥815 million increase in retained
earnings, and a ¥1,687 million increase in foreign currency translation adjustment, etc.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
The Company has not changed the forecasts for consolidated business performance for the full year from theones stated in the “Summary of Financial Results for Fiscal Year Ended March 31, 2014” (announced on
May 14, 2014).

2. Matters Concerning Summary Information (Notes)(1) Significant Subsidiary Change in the Consolidated Cumulative Period of This Quarter
None.
(2) Application of Unique Accounting to the Preparation of Quarterly Consolidated Financial Statements
None.
(3) Change of Accounting Principles, Change of Accounting Estimate, and Redisplay after Revision:
Change of Accounting Principles
Application of the Accounting Standards for Retirement Benefits
We have adopted “Accounting Standards regarding Retirement Benefits” (Application Guidance of Corporate
Accounting Standards, No. 26, May 17, 2012; hereinafter referred to as the “Accounting Standard for Retirement
Benefits”) and “Application Guidelines for Accounting Standard regarding Retirement Benefits” (Application
Guidance of Corporate Accounting Standards, No. 25, May 17, 2012; hereinafter referred to as the “Application
Guidelines for Retirement Benefits”) from the consolidated first quarter on provisions stipulated in the texts of
the Sector 35 of the Accounting Standards for Retirement Benefits and of the Section 67 of the Application
Guidelines for Retirement Benefits: we have revised the accounting method for retirement benefit obligations
and service liabilities, and we have changed our method of attributing projected retirement benefits from a fixedamount standard to a payment calculation standard along with changing the method of discount determination toa method that uses single-weighted average discount rate reflecting timing and amounts, either than the discountrate based on the average remaining years of service.
To apply the Retirement Benefits Accounting Standards, we comply with the transitional handling stipulated
in the Section 37 of Retirement Benefits Accounting Standards, and effect of changes of accounting method for
retirement benefit obligations and service expenses, financial effects are added to or subtracted from retained
earnings, at the beginning of the consolidated nine-month period under review.
As a result, net defined benefit liabilities increased by ¥102 million, while retained earnings decreased by ¥65
million, as of the beginning of the consolidated nine-month period under review. Also, in the consolidated first
three quarters under review, operating profit, ordinary profit and net profit before tax and other adjustments
decreased by ¥14 million, respectively.

3

Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)March 2014 Term
(As of Mar. 31, 2014)

3Q March 2015 Term
(As of Dec. 31, 2014)

AssetsCurrent assets
Cash and deposits

21,75814,157

Notes and accounts receivable-trade

48,72358,302Merchandise inventories

13,435

15,43322

368

Others

3,492

4,176

Allowance for doubtful accounts

(13)

(11)

87,41992,426

4,029

3,984

Goodwill

37

25

Others145

247

Total intangible assets

182

272

Others

2,027

2,159

Allowance for doubtful accounts

(136)

(180)

Total investments and other assets

1,891

1,978

6,103

6,235

93,522

98,662

Notes and accounts payable-trade

24,00027,063

Short-term loans payable

4,524

4,431

Accrued corporate tax, etc.

520

181

Allowance

650

315

Others928

1,265

30,62333,255Net defined benefit liabilities

398

503

Others245

209

Partly-finished work

Total current assets
Non-current assets
Property and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities

4

643

713

31,26733,969

Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

(Millions of yen)March 2014 Term
(As of Mar. 31, 2014)

3Q March 2015 Term
(As of Dec. 31, 2014)

Net assets
Shareholders' equity
Capital stock

14,811

14,811

Capital surplus

15,32915,329Retained earnings

33,40034,216

Treasury stock

(763)

(763)

Total shareholders' equity

62,77863,594

Valuation difference on available-for-sale securities

485

493

Deferred hedge gains/losses

84

33

Accumulated other comprehensive income

Foreign currency translation adjustment

(870)

817

Remeasurements of defined benefit plans

(223)

(245)

Total Accumulated other comprehensive income

(523)

1,098

62,25564,692

93,522

98,662

Total net assets
Total liabilities and net assets

5Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Profit Statement(Quarterly Consolidated Profit and Loss Statement of the First Three-Quarter Period)

Net sales

3Q March 2014 Term
(Apr. 1, 2013 - Dec. 31, 2013)
144,985(Millions of yen)
3Q March 2015 Term
(Apr. 1 2014 - Dec. 31, 2014)
156,419

136,126

146,426

Gross profit on sales

8,859

9,993

Selling, general and administrative expenses

7,277

7,713

Operating profit

1,582

2,279

Interest income

108Dividend income7520

Foreign exchange gains

14－

Others47

57

Total non-operating profit

148

87

Interest expenses

18

17

Sales discounts

28

35

Foreign exchange loss－

23

Loss on sales of electronically recorded monetary claims

45

108

Others5

3

Cost of sales

Non-operating profit

Non-operating expenses

98

189

1,631

2,177

Gain on sales of non-current assets

10Gain on sale of investment securities

10

Total extraordinary profits

30

Loss on sales of non-current assets

65－

Loss on retirement of non-current assets

2

3

Total extraordinary losses

683

Net profit before tax and other adjustments

1,566

2,174

Corporate, resident and enterprise taxes

355

592

Adjustment for corporate tax, etc.

155

137

Total income taxes

510

729

Income (loss) before minority interest

1,056

1,445

Net profit

1,056

1,445

Total non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses

6Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

(Quarterly Consolidated Comprehensive Profit Statement of the First Three-Quarter Period)(Millions of yen)

Income (loss) before minority interest

3Q March 2014 Term
(Apr. 1, 2013 - Dec. 31, 2013)
1,056

3Q March 2015 Term
(Apr. 1 2014 - Dec. 31, 2014)
1,445

Other comprehensive incomes
Valuation difference on available-for-sale securities

239

8

Deferred hedge gains (losses)

405

(51)

1,132

1,687

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive profit

－

(22)

1,778

1,621

2,834

3,066

2,834

3,066

－

－

(Details)
Comprehensive income relating to parental company
Comprehensive income relating to minority shareholders

7Sanshin Electronics Co., Ltd. (8150) 3Q Fiscal Year Ending March 31, 2015

(3) Notes on Quarterly Consolidated Financial Statements(Notes regarding Going Concern)
None.

(Notes regarding Remarkable Change of Shareholder's Equity)
None.

(Segment Information)
I. Nine months ended December 31, 2013 (Apr. 1, 2013 - Dec. 31, 2013)
Information regarding the amounts of sales, profit or loss in each report segment(Millions of yen)

Device segment

Solution segment

Total

136,132

8,852

144,985－－－

136,132
1,072

8,852
558

144,985
1,631

Net sales
Sales to outside customers
Inter-segment sales or transfers
Total
Segment profit(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

II. Nine months ended December 31, 2014 (Apr. 1, 2014 - Dec. 31, 2014)
Information regarding the amounts of sales, profit or loss in each report segment(Millions of yen)

Net sales
Sales to outside customers

Device segment

Solution segment

147,496

8,923

156,419－－－

147,496
1,612

8,923
565

156,4192,177

Inter-segment sales or transfers
Total
Segment profit(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

8

Total