(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 10, 2024

Summary of Financial Results for Fiscal Year Ended March 31, 2024
[Japan Standards] (Consolidated)
Name of Listed Company: Sanshin Electronics Co., Ltd.
Stock Exchange Listed: Prime Market, Tokyo
Code No.:
8150
URL: http://www.sanshin.co.jp
Representative:
Toshiro Suzuki (Representative Director & COO)
Enquiries to:
Jun-ichi Murakami, Director, Operating Officer and Senior General
Tel: +81-3-3453-5111
Manager of Finance & Accounting Division
Scheduled date of Ordinary General Meeting of Shareholders: June 21, 2024
Scheduled date of filing of Annual Securities Report:
June 24, 2024
Scheduled date of dividend payment:
June 24, 2024
Supplementary materials for the financial results:
Yes
Investor conference for the financial results:
Yes (for securities analysts and institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for March 2024 Term (April 1, 2023 – March 31, 2024)(1) Consolidated business performance

Net sales(% figures represent year-on-year changes)
Net profit attributable
Ordinary profit
to shareholders ofparent company

Operating profit

Million yen%

Million yen%

Million yen%

Million yen%

March 2024 Term
March 2023 Term

140,197
161,107(13.0)
30.4

5,748
6,847

(16.0)
62.7

3,908
5,511

(29.1)
54.8

2,740
3,832

(28.5)
51.8(Note) Comprehensive income

March 2024 Term: 5,831 million yen (21.8%)

Net profit per
share
Yen

Diluted net profit
per share

March 2023 Term: 4,788 million yen (13.9%)

Return on
EquityYen

March 2024 Term
224.66－
March 2023 Term
314.43－(Reference) Investment profit and loss based on the equity method
March 2024 Term:－ million yen

Ordinary profit tototal assets

Operating profit
to net sales

%

%

%

7.6
11.8

5.0
7.3

4.1
4.3

March 2023 Term:－ million yen(2) Consolidated financial position
Total assets
Million yen

March 2024 Term
March 2023 Term
(Reference) Own capital

Net assets
Million yen

78,88438,37378,601
34,252
March 2024 Term: 38,295 million yen

Equity ratio%

Net assets per share
Yen

48.5
3,138.10
43.5
2,803.65
March 2023 Term: 34,183 million yen(3) Consolidated cash flow position

March 2024 Term
March 2023 Term

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

5,740
(780)

(364)
(46)

(5,883)
262

8,793
8,893

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Yen

Yen

Yen

Yen

Annual

Total
Dividend on
Payout ratio
dividends
net assets(consolidated)(annual)(consolidated)

Yen Million yen%%

March 2023 Term
－
30.00
－
105.00135.00
1,666
43.5
5.1
March 2024 Term
－
35.00
－
70.00
105.00
1,297
47.3
3.5
March 2025 Term
－
30.00
－
75.00
105.0049.9(forecast)(Notes) The payout ratio is calculated by dividing the total dividends by the net profit attributable to shareholders of parent company.

3. Forecasts for Consolidated Business Performance for March 2025 Term (April 1, 2024 – March 31, 2025)

Net sales

Operating profit(% figures represent year-on-year changes)
Net profit attributable
Net profit per shareto shareholders ofparent company

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

69,000150,000

(7.1)
7.0

1,400
4,300

(50.7)(25.2)

1,000
3,600

(46.7)
(7.9)

700
2,600

(45.8)(5.1)

57.36
213.06First half
Full year* Annotations(1) Significant subsidiary changes during the term (changes in scope of consolidation): None
Newly added:
Excluded:(2) Changes in accounting principles, changes in accounting estimate, and redisplay after revision:
1) Changes in accounting principles caused by revision of accounting standards:
None2) Changes in accounting principles other than 1):
None3) Changes in accounting estimate:None4) Redisplay after revision:
None(3) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
March 2024 Term:

16,281,373 shares

March 2023 Term:

16,281,373 shares

March 2023 Term:

4,089,037shares

March 2023 Term:

12,188,982 shares2) Amount of treasury stock at the end of term:
March 2024 Term:

4,077,986 shares3) Amount of average stock during the term:
March 2024 Term:

12,199,104 shares

Note: The amount of treasury stock at the end of the term includes Company stock (March 2024 term: 151,200 shares, March 2023
term: 162,400 shares) possessed in a trust related to the Performance-Based Stock Compensation Plan for Directors (with the
exception of External Directors). Also, Company stock held in the trust is included in treasury stock to be deducted in thecalculation of the amount of average stock during the term (March 2024 term: 155,545 shares, March 2023 term: 131,426
shares).

(Reference) Overview of Non-consolidated Results(1) Non-consolidated Business Performance for March 2024 Term (April 1, 2023 – March 31, 2024)(% figures represent year-on-year changes)
Net sales
March 2024 Term
March 2023 Term

Operating profit

Net profit

Million yen%

Million yen%

Million yen%

Million yen%

94,513
104,800

(9.8)
13..5

1,493
1,679

(11.1)
45.7

3,493
3,063

14.0
46.5

2,903
2,262

28.4
44.3

Net profit per share
March 2024 Term
March 2023 Term

Ordinary profit

Diluted net profit per share

Yen

Yen

238.02185.59－－(2) Non-consolidated financial position
Total assets
Million yen

March 2024 Term
March 2023 Term
Reference) Own capital

53,74247,370March 2024 Term:

Net assets
Million yen

19,80018,26919,800 million yen

Equity ratio

Net assets per share
%

36.8
38.6
March 2023 Term:

Yen

1,622.52
1,498.46
18,269 million yen* This summary of financial results is not subject to audits of certified public accountants or auditing corporations.
* 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. Overview of Business Results – (4) Future Prospects” on page 4 of [Appendix] regarding the relevant matters forthe above forecast for the business performance.

Contents of Appendix
1. Overview of Business Results ....................................................................................................................... 2(1) Overview of Business Results for the Fiscal Year Ended March 31, 2024 .................................................. 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2024 ................................................ 3(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2024 .......................................................... 3(4) Future Prospects ........................................................................................................................................... 4
2. Basic Attitudes Toward the Selection of our Accounting Standards .............................................................. 4
3. Consolidated Financial Statements and Main Notes...................................................................................... 5(1) Consolidated Balance Sheets ....................................................................................................................... 5(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........................ 7(3) Consolidated Statements of Changes in Shareholders’ Equity ..................................................................... 9(4) Consolidated Statement of Cash Flows .......................................................................................................11(5) Notes on Consolidated Financial Statements ............................................................................................. 12(Notes Regarding Going Concern) .................................................................................................................. 12(Additional Information) ................................................................................................................................. 12(Segment Information and Other) .................................................................................................................... 13(Per Share Information) ................................................................................................................................... 16(Significant Subsequent Events) ...................................................................................................................... 171

1. Overview of Business Results
The items related to the future contained in this document are decisions made based on present consolidated
financial results as of the end of this fiscal year.
(1) Overview of Business Results for the Fiscal Year Ended March 31, 2024
During the consolidated fiscal year under review, a palpable wariness prevailed. Monetary tightening inWestern countries, anxiety about prospects for the Chinese economy and heightening geopolitical risk all pointed
to a possible slowdown in the global economy. In the electronics industry, which is the primary area of businessof the Sanshin Electronics Group, a phase of inventory adjustment continued in supply chains for semiconductors
and electronic devices, fostering a lingering mood of stagnation. In contrast, the domestic ICT industry trended
firmly against a background of factors such as renewals and a shift to the cloud in existing corporate systems
with the aim of improving productivity and increasing business efficiency, and the promotion of DX (Digital
Transformation).
Against this background, the Group worked to increase profitability by reforming our business structure andto expand our business in growth markets. Specifically, in the device business, we worked to expand our existing
businesses and establish a new profit structure. In the solution business, we strove to grow the business based onservice provision, expand our digital technology, and expand our customer platform.
As a result of these efforts, business performance in the consolidated fiscal year under review was as follows:
Net sales were ¥140,197 million (down 13.0% year-on-year), operating profit was ¥5,748 million (down 16.0%
year-on-year), and ordinary profit was ¥3,908 million (down 29.1% year-on-year). Net profit attributable toshareholders of parent company was ¥2,740 million (down 28.5% year-on-year), and ROE was 7.6%.
In regard to internal transactions of revenues and expenses between consolidated companies, the parent
company’s transactions are converted at the exchange rate at the time of the transaction or at the forward
exchange rate, and the overseas subsidiary’s transactions are converted at the average rate during the period andoffset. During the consolidated fiscal year under review, due to the weaker yen, operating profit increased because
the offsetting expenses greatly exceeded the corresponding revenues. However, the same amount has beenadjusted as a foreign exchange loss in non-operating expenses. Hence, there is no impact on the ordinary profit.
Consolidated performance by segment for the term under review is as follows.
(Device segment)
In the device business segment, our leading products are semiconductors (including system LSIs,
microcomputers, power semiconductors, LCD driver ICs and memory) and electronic components (including
connectors, capacitors and LCD panels). These products are sold mainly to electronics manufacturers. We
also provide technical support such as software development and module development.
The consolidated fiscal year under review saw a number of setbacks. Net sales declined against theprevious fiscal year, while gross profit fell significantly as some highly-profitable projects were dropped.
Moreover, profit and loss were also impacted by an increase in non-operating expenses such as interest
expenses.
As a result, net sales were ¥124,905 million (down 15.4% year-on-year) and segment profit was ¥21,02
million (down 49.3% year-on-year).
(Solution segment)
In the solution business segment, we provide one-stop services spanning from design and construction tooperation and maintenance of network devices and security products that utilize ICT in accordance with ourcustomers’ environments. In addition, we provide Line-of-Business systems such as sales and production
management, and applications such as personnel, payroll, and accounting in various formats ranging from on
premise to the cloud.
In the consolidated fiscal year under review, there was a trend of overall recovery with a focus on business
related to information and communication networks for companies, due in part to high corporate need for DX
promotion supported at companies, and also due to favorable sales compared with the previous fiscal year, inwhich there were serious procurement difficulties for servers and communications equipment due to tight2

supply and demand for semiconductors, etc.
As a result, net sales were ¥15,291 million (up 13.0% year-on-year) and segment profit was ¥1,806 million(up 32.2% year-on-year).
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2024
(Assets)
As of March 31, 2024, assets increased ¥282 million compared to March 31, 2023, to ¥78,884 million. Thiswas mainly attributable to a ¥4,663 million increase in consumption taxes receivable, a ¥521 million increase ininvestment securities, a ¥2,780 million decrease in notes and accounts receivable–trade and a ¥2,075 million
decrease in merchandise inventories.
(Liabilities)
As of March 31, 2024, liabilities decreased ¥3,837 million compared to March 31, 2023, to ¥40,510 million.
This was mainly attributable to a ¥2,869 million decrease in short-term loans payable, a ¥594 million decreasein accrued corporate tax, etc., and a ¥508 million decrease in notes and accounts payable–trade.
(Net Assets)
As of March 31, 2024, net assets increased ¥4,120 million compared to March 31, 2023, to ¥38,373 million.
This was mainly attributable to a ¥2,509 million increase in foreign currency translation adjustment, a ¥1,010
million increase in retained earnings, a ¥445 million increase in valuation difference on available-for-salesecurities, etc.
(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2024
As of March 31, 2024, cash and cash equivalents decreased ¥99 million compared with March 31, 2023, to¥8,793 million. This was due to expenses caused by factors such as an increase in repayment of short-term loans
and consumption taxes refund receivable, which exceeded income from sources such as a decrease in notes andaccounts receivable–trade.
(Operating activities)
Net cash provided by operating activities during the consolidated period under review totaled ¥5,740 million.
This was mainly due to income as the result of factors such as decreases in notes and accounts receivable–tradeand inventories, which exceeded expense from factors such as increases in consumption taxes refund receivable.
Since the figure for the previous consolidated fiscal year was an expense of ¥780 million, this represented anincome rise of ¥6,520 million.
(Investing activities)
Net cash used in investing activities during the consolidated period under review totaled ¥364 million due tofactors such as the purchase of property and equipment, the purchase of software, etc. Compared to the previous
consolidated fiscal year, this represented an expense increase of ¥317 million.
(Financing activities)
Net cash used in financing activities during the consolidated period under review totaled ¥5,883 million. Thiswas due to expenses caused by factors such as repayment of short-term loans and cash dividends paid. Since thefigure for the previous consolidated fiscal year was an income of ¥262 million, this represented an expense riseof ¥6,146 million.

3

(Reference) Performance indicators associated with cash flows
March 2020
Term
57.0

March 2021
Term

March 2022
Term

March 2023
Term

March 2024
Term

51.0

42.1

43.5

48.5

Ratio of Own capital on current price base (%)

36.3

45.5

26.9

37.4

33.3

Interest-bearing debt to cash flow ratio (year)

1.3

－

11.2

－

4.2

19.2

－

6.0

Ratio of Own capital (%)

44.9
Interest coverage ratio－
Notes: Ratio of Own capital: Own capital ÷ Total assets
Ratio of Own capital on current price base: Market capitalization ÷ Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debts ÷ Operating cash flow
Interest coverage ratio: Operating cash flow ÷ Interest paid

* Each indicator is calculated using the consolidated financial figures.
* The market capitalization is calculated as the share price at term-end multiplied by the number of shares outstanding at term-end (after
the deduction of treasury stock).
* For the operating cash flow, the “cash flow from operating activities” shown in the consolidated statement of cash flows is used. Theinterest-bearing debts feature all debts bearing interest among the debts listed in the consolidated balance sheets. For the amount ofinterest paid, the “interest expenses paid” listed in the consolidated statement of cash flows is used.
* Figures for the interest-bearing debt to cash flow ratio and the interest coverage ratio are not recorded when the operating cash flow
figure is negative.

(4) Future Prospects
1) Forecast for the next fiscal year
The Company expects supply-chain inventory adjustment to continue in the device business and firm demandfor DX promotion to persist in the solution business, resulting in increases in net sales in both businesses
compared to the fiscal year under review. Earnings, however, are expected to trend lower in both businesses,
amid an increase in selling, general and administrative expenses, including personnel expenses. As a result, theforecast of business results for the fiscal year ending March 31, 2025 is as follows.
(Forecast for Consolidated Business Performance)
Net sales:
Operating profit:
Ordinary profit:
Net profit attributable to shareholders of parent company:
Dividend per share:¥150,000 million (up 7.0% YoY)
¥4,300 million (down 25.2% YoY)
¥3,600 million (down 7.9% YoY)
¥2,600 million (down 5.1% YoY)¥105 (dividend of ¥105 per share in the previous
fiscal year)

2) Full-year forecast for assets, liabilities, net assets, and cash flow
We forecast that total assets at the end of the next consolidated fiscal year will be approximately ¥87,400 million,
an increase of approximately of ¥8,500 million compared to the consolidated fiscal year ended March 31, 2024.
We forecast that this will mainly be attributable to factors including an increase in notes and accounts receivable–
trade. Furthermore, we forecast that the balance of interest-bearing debt will be approximately ¥33,100 million, aincrease of approximately ¥9,200 million compared to the end of the consolidated fiscal year ended March 31,
2024.
We forecast that cash and cash equivalents at the end of the next consolidated fiscal year will be approximately¥7,700 million, a decrease of approximately ¥1,100 million compared to the end of the consolidated fiscal year
ended March 31, 2024. Although proceeds are expected from a decrease in inventories, etc., expenditures are
expected from factors such as increase in notes and accounts receivable - trade.
2. Basic Attitudes Toward the Selection of our Accounting Standards
For the time being, the Group has applied the Japanese standards to its consolidated financial statements, withconsideration given to the comparability of the terms of consolidated financial statements and comparability
among enterprises.
As regards the application of international accounting standards, the Group is open to appropriately meet thesestandards upon consideration of both domestic and overseas circumstances.
43. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Million yen)March 2023 Term
(As of Mar. 31, 2023)

March 2024 Term
(As of Mar. 31, 2024)

Cash and deposits

8,893

8,793

Notes and accounts receivable–trade, and contract assets

35,77932,012

AssetsCurrent assets

Electronically recorded monetary claims

1,485

2,472

Merchandise inventories

25,002

22,927

Partly-finished work

01

Accrued income

61

103

Consumption taxes receivable

162

4,826

Others1,219

987

Allowance for doubtful accounts

(32)

(28)

72,572

72,095

4,669

4,680

Accumulated depreciation(3,423)(3,497)

Buildings and structures, net

1,246

1,182

1,135

1,135

375

397

Accumulated depreciation

(216)

(223)

Lease assets, net

159

174

Construction in progress

－

352

487

513

(411)

(436)

76

77

2,617

2,921

358

301

Investment securities

2,767

3,288

Deferred tax assets

181

83

Net defined benefit assets－

79

Others154

170

Total current assets
Non-current assets
Property and equipment
Buildings and structures

Land
Leased assets

Other
Accumulated depreciation
Other, net
Total property and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(50)

(57)

Total investments and other assets

3,053

3,564

6,029

6,788

78,60178,884

Total non-current assets
Total assets

5

(Million yen)March 2023 Term
(As of Mar. 31, 2023)

March 2024 Term
(As of Mar. 31, 2024)

Notes and accounts payable–trade

13,85813,350

Short-term loans payable

26,82823,959Liabilities
Current liabilities

Lease obligations

67

80

Accrued corporate tax, etc.

958

364

Allowance for bonuses to employees
Allowance for bonuses to Directors and Audit &Supervisory Board members
Others

576

517

61

56

1,361

1,621

Total current liabilities

43,712

39,949Non-current liabilities
Lease obligations

92

99

Deferred tax liabilities

21

206

Allowance for stock compensation

136

150

Net defined benefit liabilities

281－

Others104

105

Total non-current liabilities

636

561

44,34840,51014,811

14,81116

16

Retained earnings

25,25526,266

Treasury stock(8,777)(8,758)

Total shareholders’ equity

31,30532,335

Valuation difference on available-for-sale securities

568

1,014

Deferred hedge gains (losses)

44

(63)

2,424

4,933

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

Accumulated other comprehensive income

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(160)

74

Total accumulated other comprehensive income

2,877

5,959

69

77

34,25238,37378,60178,884Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Consolidated Profit and Loss Statement)
March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)
161,107

Net sales(Million yen)March 2024 Term
(Apr. 1, 2023 – Mar. 31, 2024)
140,197

Cost of sales

144,231

124,643

Gross profit on sales

16,876

15,553

Selling, general and administrative expenses

10,028

9,804

Operating profit

6,847

5,748

Interest income

38

114

Dividend income

42

38

Others90

77

Total non-operating profit

171

231

Interest expenses

753

963

Foreign exchange losses

690

1,077

Others

63

29

1,508

2,071

5,511

3,908

Gain on sales of non-current assets

0－Gain on sales of investment securities

31

14

Total extraordinary profits

31

14

4

11

Non-operating profit

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses
Loss on retirement of non-current assets

1－

Loss on valuation of investment securities

178

26

Total extraordinary losses

185

37

Net profit before tax and other adjustments

5,357

3,886

Corporate, resident and enterprise taxes

1,546

1,097

Adjustment for corporate tax, etc.

(37)

39

Total corporate taxes

1,508

1,137

Net profit

3,848

2,748

15

8

3,832

2,740

Loss on sales of investment securities

Net profit attributable to non-controlling interests
Net profit attributable to shareholders of parent company

7

(Consolidated Comprehensive Income Statement)(Million yen)March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)
3,848

Net profit

March 2024 Term
(Apr. 1, 2023 – Mar. 31, 2024)
2,748

Other comprehensive income
1

Valuation difference on available-for-sale securities

445

Deferred hedge gains (losses)

162

(108)

Foreign currency translation adjustment

912

2,509

Remeasurements of defined benefit plans, net of tax

(136)

235

Total other comprehensive income

939

3,082

4,788

5,831

4,772

5,823

15

8

Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests8

(3) Consolidated Statements of Changes in Shareholders’ Equity
March 2023 Term (April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance as of April 1, 2022
Changes during the term
Dividends of surplus
Net profit attributable toshareholders of parent
company
Purchase of treasury stock
Disposal of treasury stock
Purchase of treasury stock
via Board Benefit Trust
Disposal of treasury stock
for Board Benefit Trust
Net changes of items otherthan shareholders’ equity
Total changes during the term
Balance as of March 31, 2023

14,811Retained earnings-

22,654(8,773)(1,231)(1,231)

3,832

3,832
(0)
12

(0)
12

(99)

(99)

83

99

(3)
(8,777)2,613
31,305

16

14,811

16
16

Total
shareholders’equity28,692

Treasury stock

2,600
25,255(Million yen)
Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
DeferredRemeasurements
difference on
currency
otherhedge gains
of defined
available-for-saletranslation
comprehensive(losses)benefit planssecurities
adjustment
incomeBalance as of April 1,
2022
Changes during theterm
Dividends of surplus
Net profit
attributable toshareholders ofparent company
Purchase of treasury
stock
Disposal of treasury
stock
Purchase of treasury
stock via Board
Benefit Trust
Disposal of treasury
stock for Board
Benefit Trust
Net changes of
items other thanshareholders’ equity
Total changes during
the term
Balance as of March
31, 2023

567

(117)

1,512

(23)

1,937

Noncontrollinginterests
53

Total net
assets30,683(1,231)
3,832

(0)
12
(99)

99

1

162

912

(136)

939

15

955

1

162

912

(136)

939

15

3,568

568

44

2,424

(160)

2,877

69

34,2529

March 2024 Term (April 1, 2023 to March 31, 2024)(Million yen)
Shareholders’ equity
Capital stock

Capitalsurplus14,811

16

Balance as of April 1, 2023
Changes during the term
Dividends of surplus
Net profit attributable toshareholders of parent
company
Purchase of treasury stock
Retirement of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes during the term
Balance as of March 31, 2024－
14,811－16

Retained earnings
25,255

Total
shareholders’equity31,305

Treasury stock(8,777)(1,729)(1,729)

2,740

2,740

1,010
26,266

(0)

(0)

19

19

18
(8,758)1,029
32,335(Million yen)

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
DeferredRemeasurements
difference on
currency
otherhedge gains
of defined
available-for-saletranslation
comprehensive(losses)benefit planssecurities
adjustment
incomeBalance as of April 1,
2023
Changes during theterm
Dividends of surplus
Net profit
attributable toshareholders ofparent company
Purchase of treasury
stock
Retirement oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes during
the term
Balance as of March
31, 2024

568

44

2,424

(160)

2,877

Noncontrollinginterests
69

Total net
assets34,252(1,729)
2,740

(0)
19
445

(108)

2,509

235

3,082

8

3,090

445

(108)

2,509

235

3,082

8

4,120

1,014

(63)

4,933

74

5,959

77

38,37310

(4) Consolidated Statement of Cash Flows(Million yen)March 2023 Term
March 2024 Term
(Apr. 1, 2022 – Mar. 31, 2023) (Apr. 1, 2023 – Mar. 31, 2024)
Operating activities
5,357

3,886

Depreciation and amortization

300

300

Amortization of goodwill

26

26

Increase (decrease) in net defined benefit assets or liabilities

Net profit before tax and other adjustments

(79)

(32)

Increase (decrease) in allowance for doubtful accounts

02

Increase (decrease) in allowance for stock compensation

34

33

Interest and dividend income

(81)

(153)

Interest expenses

753

963

Loss (gain) on sales of non-current assets(0)－Loss (gain) on sales of investment securities

(29)

(14)

Loss (gain) on valuation of investment securities

178

26

786

5,962

Decrease (increase) in inventories(4,472)

3,520

Increase (decrease) in notes and accounts payable–trade(1,694)(1,981)

Decrease (increase) in consumption taxes refund receivable(47)(4,663)

Increase (decrease) in accrued consumption taxes

20

(7)

Others48

513

Subtotal

1,103

8,381

87

156

(753)

(960)

(1,218)(1,836)

(780)

5,740

Purchase of property and equipment

(89)

(400)

Purchase of software

(23)

(69)

Purchase of investment securities(0)－

Proceeds from sales of investment securities

72

113

Others(6)(8)

Net cash used in investing activities

(46)

(364)

Net increase (decrease) in short-term loans payable

1,582(4,058)

Repayments of lease obligations

(93)

(102)

Net decrease (increase) in treasury stock

(0)

(0)

(1,225)(1,721)262(5,883)

Effect of exchange rate change on cash and cash equivalents

149

408

Net increase (decrease) in cash and cash equivalents

(414)

(99)

Balance of cash and cash equivalents, beginning of the period

9,307

8,893

Balance of cash and cash equivalents, end of the period

8,893

8,793

Decrease (increase) in notes and accounts receivable–trade

Interest and dividend income received
Interest expenses paid
Corporate and other taxes paid
Net cash provided by (used in) operating activities
Investing activities

Financing activities

Cash dividends paid
Net cash provided by (used in) financing activities11(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
None(Additional Information)
Performance-Based Stock Compensation Plan for Directors
The Company has introduced a Performance-Based Stock Compensation Plan for Directors, for the purposeof further clarifying the link between the compensation to the Company’s Directors (excluding External
Directors) and the value of its shares. With the introduction of the Performance-Based Stock Compensation Plan,
Directors will not only enjoy the advantages when the Company’s share price rises but also bear the risks when
the share price declines, sharing with shareholders the benefits and risks of fluctuations in share prices. This
move is intended ultimately to incentivize Directors to increase medium-to-long-term business results andincrease enterprise value.
1) Overview of transactions
In the Performance-Based Stock Compensation Plan, a trust that is funded by Company expenditures acquires
shares in the Company. The Board of Directors establishes regulations for the granting of shares, according towhich each Director is awarded points for his or her degree of accomplishment of numerical targets based on
management indices. Each Director is then awarded the Company’s shares in proportion to the points awarded,
through the trust. In principle, the shares are awarded to Directors at the time of their resignation or retirement.
2) Accounting treatment of Company shares remaining in the trust
The book value of the trust (net of ancillary expenses) for shares held by the trust was ¥277 million in theprevious consolidated fiscal year and ¥257 million in the consolidated fiscal year under review, and is recorded
as treasury stock in the shareholders’ equity.
The number of said shares was 162,400 as of the end of the previous consolidated fiscal year and 151,200 asof the end the consolidated fiscal year under review. The average number of shares was 131,426 during theprevious consolidated fiscal year and 155,545 during the consolidated fiscal year under review. These shares areincluded in the shares of treasury stock excluded for calculation of per share information.

12

(Segment Information and Other)[Segment Information]
1. Outline of Report Segments
The report segments are composition units of the Company for which separate financial information isavailable. The Board of Directors reviews these segments periodically to determine the allotment ofmanagerial resources and evaluate the financial results.
The Company has business headquarters for individual merchandise and services. The businessheadquarters work out domestic and overseas comprehensive strategies about their merchandise and services,and do business activities according to the strategies.
Therefore, the Company is organized in two segments by merchandise and services based on businessheadquarters. They are device segment and solution segment.
In the device business segment, our leading products are semiconductors (including system LSIs,
microcomputers, power semiconductors, LCD driver ICs and memory) and electronic components (including
connectors, capacitors and LCD panels). These products are sold mainly to electronics manufacturers. We
also provide technical support such as software development and module development.
In the solution business segment, we provide one-stop services spanning from design and construction tooperation and maintenance of network devices and security products that utilize ICT in accordance with ourcustomers’ environments. In addition, we provide Line-of-Business systems such as sales and production
management, and applications such as personnel, payroll, and accounting in various formats ranging from on
premise to the cloud.
2. Amount calculation methods for sales, profit or loss, assets, liabilities, and other items in each report segment
The accounting method in the reported business segments is almost the same as that used for preparing
the consolidated financial statements.
Profit (loss) in the report segments are based on ordinary profit (loss).

13

3. Information regarding the amounts of sales, profit or loss, assets, liabilities, and other items in each report
segment
March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)(Million yen)

Report segment

Net sales
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation andamortization (Note 3)
Increase of property andequipment and intangible
assetsAdjustment
amount (Note 1)

Amountaccounted on
consolidated
financialstatements(Note 2)

Devicesegment

Solutionsegment

147,575

13,532

161,107-

161,107

-

-

-

-

-

147,575
4,144
64,053

13,532
1,366
6,992

161,107
5,511
71,045

7,556

161,107
5,511
78,601

225

75

300

-

300

75

34

110

86

197

Total

Notes: 1. The adjustment amount of segment assets includes investment capital (cash, deposits, and securities), long-term investment(investment in securities), and assets related to the management divisions of the Company.
2. The segment profit coincides with the ordinary profit in the consolidated profit and loss statement.
3. The depreciation and amortization do not include the amortization of goodwill.

March 2024 Term (Apr. 1, 2023 – Mar. 31, 2024)(Million yen)

Total

Adjustment
amount (Note 1)

Amountaccounted on
consolidated
financialstatements(Note 2)

Report segment
Devicesegment
Net sales
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation andamortization (Note 3)
Increase of property andequipment and intangible
assetsSolutionsegment

124,905

15,291

140,197－

140,197

-

-

-

-

-

124,905
2,102
60,87915,291
1,806
6,723

140,197
3,908
67,603－－
11,280140,197
3,908
78,884

222

77

300

-

300

150

14

165

411

577

Notes: 1. The adjustment amount of segment assets includes investment capital (cash, deposits, and securities), long-term investment(investment in securities), and assets related to the management divisions of the Company.
2. The segment profit coincides with the ordinary profit in the consolidated profit and loss statement.
3. The depreciation and amortization do not include the amortization of goodwill.

14

[Related information]
March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)
1. Information of products and services
The information by product and service coincides with that by report segment, and is, therefore, omitted.
2. Information of regions(1) Net sales(Million yen)Japan
45,653

Asia

North America

114,717

Others

546

Total
190

161,107(2) Property and equipment
As the amount of property and equipment in Japan exceeds 90% of the amount stated in the consolidatedbalance sheets, description is omitted.
3. Information of major clients
As none of the items among net sales to outside customers account for 10% or more of net sales on the
consolidated profit and loss statement, description is omitted.
March 2024 Term (Apr. 1, 2023 – Mar. 31, 2024)
1. Information of products and services
The information by product and service coincides with that by report segment, and is, therefore, omitted.
2. Information of regions(1) Net sales(Million yen)Japan
40,852

Asia

North America

98,006861

OthersTotal
476

140,197(2) Property and equipment
As the amount of property and equipment in Japan exceeds 90% of the amount stated in the consolidatedbalance sheets, description is omitted.
3. Information of major clients
As none of the items among net sales to outside customers account for 10% or more of net sales on the
consolidated profit and loss statement, description is omitted.
[Information regarding impairment loss for non-current assets in each report segment]
None

15

[Information regarding the amount of amortization of goodwill and the balance in each report segment]
March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

26

-

-

26

Balance at term-end

70

-

-

70

March 2024 Term (Apr. 1, 2023 – Mar. 31, 2024)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

26

－

－

26

Balance at term-end

43

－

－

43

[Information regarding profit on negative goodwill in each report segment]
None(Per Share Information)(Yen)

March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)

March 2024 Term
(Apr. 1, 2023 – Mar. 31, 2024)

Net assets per share

2,803.65

3,138.10

Net profit per share

314.43224.66

Notes: 1. Diluted net profit per share is not presented since the Company has no dilutive shares.
2. Shares of the Company which are owned by a trust in connection with the Performance-Based Stock Compensation Plan for
Directors (excluding the External Directors) and which are recorded as treasury stock in shareholders' equity are included in
the shares of treasury stock that are excluded from the total number of shares outstanding at the end of term for calculation of
net assets per share (previous consolidated fiscal year: 162,400 shares, current consolidated fiscal year: 151,200 shares), andalso are included in treasury stock excluded in the calculation of amount of average stock during the term for calculation of
net profit per share (previous consolidated fiscal year: 131,426 shares, current consolidated fiscal year:155,545 shares).
3. Net profit per share was calculated on the following basis.

(Million yen)March 2023 Term
March 2024 Term
(Apr. 1, 2022 – Mar. 31, 2023) (Apr. 1, 2023 – Mar. 31, 2024)
Net profit attributable to shareholders of parent
company
Amount not attributable to ordinary shareholders
Net profit attributable to shareholders of parent
company available to ordinary shares
Average shares outstanding available to ordinary shares(thousand shares)

16

3,832

2,740

-

－

3,832

2,740

12,18812,199(Significant Subsequent Events)
None17