Briefing Materials on
the Financial Results for
the Year Ended March 2023
May 11, 2023

SANSHIN ELECTRONICS CO., LTD.
Toshiro Suzuki, Representative Director, COO-1-[SANSHIN CONFIDENTIAL]

Business Activities
As a general electronics trading company committed to being “customers’ best partner,”
Sanshin Electronics runs two major businesses: device business and solution business.
Device Business― Addressing diversified market needs through a wide product lineup ―We cover a wide array of manufacturers, from both domestic and overseas
major semiconductors/electronic parts makers all the way to emerging
manufacturers that are currently developing products with excellent
performance. In a time when market needs are constantly diversifying, we
respond to our customers’ requests through a full lineup and detailed systemof both domestic and overseas sales.

Solution Business― Building up social infrastructures interconnected through ICT ―With information and telecommunications network at the core of ouroperations, we are committed to proposing and building up the optimal
system to fit our customers’ needs. We provide our customers with asafe and reliable infrastructure through bundled services, including a
support menu, after the system implementation.

-2-[SANSHIN CONFIDENTIAL]

I. Year Ended March 2023
Performance Summary-3-[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Consolidated Performance Summary(Unit: ¥100 million)■ Net sales increased by 30% year-on-year, profit increased significantly due to growing sales despite
higher SG&A expenses, and ROE increased to 11.8%.
03/22 Result
Net Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit Attributable to
Shareholders of Parent Company

ROE
AnnualDividend Per
Share

Ordinary Dividend
Commemorative
Dividend

Total

Payout Ratio
Exchange Rate
(1 US dollar)

03/23 Result

YoY Change

1,235.8
1,611.1
10.9%
10.5%
135.3
168.8
7.5%
6.2%
93.2
100.3
3.4%
4.3%
42.1
68.5
2.9%
3.4%
35.6
55.1
2.0%
2.4%
25.3
38.3

130%

Forecast*1)

Achievement
Ratio

1,556.0
10.4%
125%
162.4
6.5%
108%
100.4
4.0%
163%
62.0
2.9%
155%
45.0
2.1%
152%
33.0

104%
104%
100%
110%
122%
116%

6.8%
¥80
¥20
¥100

11.8%
¥135
－
¥135

+5.0P
+¥55
-¥20
+¥35

10.0%
¥135
－
¥135

+1.8P
±¥0
±¥0
±¥0

48.8%

43.5%

-5.3P

50.4%

-6.9P

¥112.38¥135.49¥23.11¥130.00+¥5.49*1) Figures in the Forecast section are based on results announced for the second quarter of the fiscal year ended March 31, 2023 (announced on November 7, 2022).
*2) Figures in the YoY Change section and Achievement Ratio section for ROE, annual dividend per share, payout ratio and exchange rate represent increases or decreases.

-4-[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Year-to-Year Comparison of Consolidated Ordinary Profit● Increase in SG&A expenses
Approx. ¥0.71 bn
Mainly an increase in distribution cost

Ordinary
Profit¥3.56 bn

○ Increase in gross profit Approx. ¥3.19 bn*
Maintained a high gross profit margin due toincreased earnings (including favorable
conditions such as a depreciating yen) andstrong performance of highly-profitableprojects

Ordinary
Profit¥5.51 bn
● Decrease in non-operating profit Approx. ¥0.53 bn*
Mainly an increase in interest expenses

Increase of approx. ¥1.95 bn

03/22 Term Result*Per accounting standards, the difference between the month-end exchange rate and the averageexchange rate is shown in both denominations in the profit and loss statement. However, in theabove figure, the difference is offset by gross profit and non-operating profit and loss, and theactual increase or decrease is shown.
-5-

03/23 Term Result[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Consolidated Performance Summary by Segment (Unit: ¥100 million)■ Device BusinessNet sales of overseas semiconductors increased due to expansion of commercial rights and strong sales of home video game consoles.
Exchange rates with a weak yen also created favorable conditions.
Profits increased significantly compared to the previous fiscal year due to increased earnings and strong performance of highly-profitableprojects.
■ Solution BusinessAlthough product sales were sluggish due to tight supply and demand for semiconductors, full-year results were almost as planned due torecovery caused by normalization of the supply chain from the second half of the fiscal year.
03/22 Term
ResultNet Sales
DeviceBusiness

Operating
ProfitSegment
Profit1,105.2

Operating
ProfitSegment
ProfitYoY Change

1,475.8

134%

65.5

164%

21.9

41.4

189%

130.6

135.3

104%

17.9

98%

13.7

100%

3.6%

4.4%
40.1

2.0%

Net Sales
Solution
Business

03/23 Term
Result

2.8%

14.0%

13.2%
18.3

10.5%

10.1%
13.7

Exchange rate (1 US dollar)¥112.38¥135.49¥23.11*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.
-6-[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)
+34%
1,476

1,105
Strategic Device

488

244

478
Core Device

390

Volume Business

471

510

1

2

By Business Category of Device Business【Year-to-Year Comparison of Fluctuations】■ Volume Business (up 8% YoY)
○ Sales for mobile devices were strong● Decrease for social infrastructure■ Core Device (up 23% YoY)
○ Strong sales for industry, vehicle-mounted
business, and storage, etc.
■ Strategic Device (up 100% YoY)
○ Increase in overseas merchandise such as wirelessmerchandise/analog semiconductors○ Strong sales of modular products-7-[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)+34%

By Supplier of Device Business

1,476
198

1,105
Other

207

Overseas
Manufacturers

356ElectromechanicalParts Manufacturers

542

1

660

618

【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (up 14% YoY)
○ Increase for mobile devices and gaming consoles■ Overseas Manufacturers (up 85% YoY)
○ Increase caused by strong sales for home video game
consoles○ Increase in strategic devices for wirelessmerchandise/analog semiconductors, etc.
○ Strong sales of modular products■ Other (down 4% YoY)
● Decrease for social infrastructure

2-8-[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)
+4%

130.6
Video Systems

135.3

By Sector of Solution Business

16.2【Year-to-Year Comparison of Fluctuations】

17.9■ NW (up 3% YoY)
AP Software○ IT infrastructure investment by customers
trended toward recovery

28.3
26.7

■ Public Systems (up 2% YoY)
Embedded Systems

23.6○ Maintained strong performance of projects for
updating disaster prevention radio

26.9■ Embedded Systems (up 14% YoY)
Public Systems

33.2○ Increased due to recovery in server delivery

33.7■ AP Software (up 6% YoY)
○ Increase in software development projects

NW

29.2

■ Video Systems (down 9% YoY)

30.2

● Decrease in streaming projects
1

2
-9-

[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Consolidated Financial Situation(Unit: ¥100 million)■ Total assets for the fiscal year ended March 31, 2023 were ¥78.6 bn (up ¥5.8 bn from the end of the previous fiscal year) due to an increase in inventories. Net
assets also increased due to an increase in profits, and the equity ratio improved to 43.5% (up 1.4% from the end of the previous fiscal year).
■ Borrowings for working capital were ¥26.8 bn (up ¥2.4 bn from the end of the previous fiscal year) due to an increase in accounts receivable and inventories.
■ Due to an increase in inventories and a decrease in accounts payable-trade, operating cash flows were -¥0.78 billion (down ¥3.0 from the end of the previous
fiscal year).

1) Balance Sheets

Cash and deposits
Accounts receivable

2) Cash FlowsFY EndedMar. 21
Result (A)FY EndedMar. 22
Result (B)

B-A
Increase/
Decrease

FY EndedMar. 23
Result (C)C-B
Increase/
Decrease

255.4

93.1

-162.4

88.9

-4.1

335.4

358.7

23.3

372.7

14.0

FY Ended Mar. FY Ended Mar. FY Ended Mar.
21 Result
22 Result
23 Result
Decrease (increase) in
accounts receivabletrade
Decrease (increase) ininventories
Increase (decrease) in
accounts payable-trade

Inventories

143.4

197.3

53.9

250.0

52.7

Other assets

111.8

79.0

-32.8

74.4

-4.6

846.0

728.1

-117.9

786.0

57.9

Operating C/F

131.1

144.6

13.5

138.6

-6.0

Investing C/F

Total assets
Accounts payable
Interest bearing
liabilities
Other liabilities
Total net assets
Total liabilities
and net assets
Equity ratio

253.5

244.3

-9.2

268.3

24.0

29.4

32.4

3.1

36.6

4.2

432.1

306.8

-125.3

342.5

35.7

846.0

728.1

-117.9

786.0

57.9

51.0%

42.1%

-8.9%

43.5%

1.4%
- 10 -

-46.3

-0.1

7.9

18.9

-45.6

-44.7

-11.2

2.3

-17.0

21.7

65.3

46.0

-16.9

21.9

-7.8

-3.8

-1.5

-0.5

89.3

-185.9

2.6

2.4

3.1

1.5

71.0

-162.4

-4.1

255.4

93.1

88.9

Other

Financing C/F
Foreign currency
conversion adjustments
Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end[SANSHIN CONFIDENTIAL]

Year Ended March 2023
Return to Shareholders● Policy on Distribution of Profits
The Company considers profit returns to its shareholders as one of the most important management issues. The
Company’s basic policy is to determine dividends by comprehensively considering the need to maintain a balance
between rewarding of shareholders, investment to gain opportunities for growth, attainment of sufficient retained
earnings to enable sustainable growth, and improvement in capital efficiency. Under this policy, the Company has set atarget for its dividend payout ratio of around 50% on a consolidated basis.

● Dividends for the Year Ended March 31, 2023
An annual dividend of ¥135 per share (midterm dividend of ¥30, term-end dividend of ¥105); consolidated dividend
payout ratio of 43.5%

03/19 Result
Ordinary
Dividend
AnnualCommemorative
Dividend Per
Dividend

Share

Total

Payout Ratio

03/20 Result

03/21 Result

03/22 Result

03/23 Result

YoY Change

¥70

¥70

¥40

¥80

¥135

+¥55

－

－

－

¥20

－

-¥20

¥70

¥70

¥40

¥100

¥135

+¥35

93.3%

93.2%

46.9%

48.8%

43.5%

-5.3P

- 11 -[SANSHIN CONFIDENTIAL]

Ⅱ. Progress of the V73 MediumTerm Management Plan

- 12 -[SANSHIN CONFIDENTIAL]

Overview of the V73 Medium-Term Management Plan
1. Improving profitability through business structure reform and expanding business in growth markets■ Device business: Expand existing businesses and improve profitability, and establish a new profit structure (reform our businessportfolio)■ Solution business: Grow the business based on service provision, expand our digital technology, and expand our customer platform

2. Improving capital efficiency■ Continue to target a dividend payout ratio of around 50% on a consolidated basis, and improve capital efficiency throughmeasures such as reducing total assets■ Maintain financial soundness and ensure the mobility and stability of fund procurement

3. Strengthening corporate governance■ Strengthen efforts to address issues related to sustainability, and strengthen the functions of the Board of Directors for
executing measures in the Medium-Term Management Plan

Quantitative targets for the final year of
V73(fiscal year ending March 31, 2024)

ROE

Maintain 6% or higher during V73

Ordinary profit¥2.5 bn or higher

Net profit attributable to shareholdersof parent company¥1.8 bn or higher- 13 -[SANSHIN CONFIDENTIAL]

Overview of V73 Medium-Term Management Plan (Quantitative Targets)
11.8%
7.2%

6.8%
3.9%

3.4%

2.8%

ROE
6% or more

3.4%

2.9%

2.2%

1.7%

1.5%

1.2%

ROS
1,611

1,479
1,231

55.1

1,128

14.5
03/19 Term

18.6
14.5
03/20 Term

Net sales(Unit: ¥100 million)

1,236
35.6

38.3

35.0
26.0

25.3
17.4

1,570

Ordinary profit¥2.5 bn or more

18.8
Net profit¥1.8 bn or more

16.5

03/21 Term

03/22 Term
- 14 -

03/23 Term

03/24 Term
Forecast[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Expand existing
businesses andimprove
profitability

Device Business
Establish new
profit structure(reform portfolio)

Contents of Measures

Targeted Effect and Progress Status(1) Shift resources to overseas semiconductors(2) Acquire new customers through merchandise from existing
suppliers(3)Improve the efficiency of expanding sales by reorganizing
the organization by customers (especially major
corporations)and businesses(4) Promote the increased efficiency of sales activities
・ Improvement/new introduction of sales support systems,
maintenance of operation systems

Targeted Effect・ Increase net sales of overseas semiconductor
manufacturers
・ Increase segment profit to net sales
Progress Status: Excellent
・ Net sales of overseas semiconductor
manufacturers increased 85% YoY
・ Segment profit to net sales: 2.8% (up 0.8%
YoY)
・ Currently continuing efforts to increase
efficiency of sales activities
Targeted Effect・ Acquire customers in new markets (including
non-electronics)
・ Acquire highly-profitable businesses
・ Improve segment profit to net sales
Progress Status: Fair・ Acquired orders through reservoir solutions
for local governments
・ For robotics, although business negotiations
have been reached through efforts to develop
customers in new markets, time will be
required to contribute to segment profit rate(1) Focus on provision of total solutions (AI/IoT, robotics)(2) AI/IoT related
・ Enhance approaches to local governments throughreservoir and river monitoring solutions with added value(3) Robotics field・ Focus on new development by strengthening cooperation
with collaborative partners and interdepartmental
cooperation(4) Vehicle-mounted field・ Use proposal-based software (including wireless modules
and security products) as the key to formulate a new
strategy in the existing organization (automotive
department)- 15 -[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Grow businessbased on service
provision

Solution Business

Expand digitaltechnology

Expand customer
platformContents of Measures

Targeted Effect and Progress Status(1) Establish a service provision model utilizing mega cloud(AWS, MS Azure, etc.) infrastructure(2) Expand Sanshin Data Center business(hosting + operation maintenance, cloud connection service)(3) Expand general-purpose cloud services(enhance services such as cloud backup and cloud security)(4) Expand subscription business by improving service menu

Targeted Effect
Secure and expand stable stock earnings
Progress Status: Fair
Accelerating the development and expansion of
the cloud service menu amidst changes inmaintenance styles due to the expansion ofcloud services
Targeted Effect
Increase sales in the solution business
Progress Status: Excellent
Expanding proposal activities utilizing
advanced technologies (SASE, 5G)(1) Respond to evolving security technology
・ Implement proposal of security model based on Zero Trust
concept
・ Strengthen response to SASE technology(2) Acquire new infrastructure technology(SD-WAN, WiFi6, 5G, private LTE, etc.)(1) Discover new merchandise in collaboration with external
consultants, expand free promotional merchandise(2) Acquire new customers through collaboration with partners(3) Promote cross-sales through cooperation inside of divisions(4) Develop new markets for existing products such as mobile
relay equipment(5) Incorporate DX demand- 16 -

Targeted EffectExpand business domains and identify newrevenue sources
Progress Status: Good
Aiming to contribute to earnings from the next
fiscal year onwards by expanding contracts
with new suppliers and starting initiatives for
SDGs
Currently acquiring new customers acrossdifferent businesses through the promotion ofcross-sales by strengthening pre-sales[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Improving capitalefficiency

Contents of Measures

Targeted Effect and Progress Status

Targeted Effect(1) Optimize the scale of equity capital
Maintain ROE above the cost of shareholders’ equity
・ Based on future demand for funds, in June 2021, we
executed a treasury stock tender offer for 7 million shares
Progress Status: Excellent(equivalent to 28.83% of outstanding shares at that time;・ As a result of optimizing the scale of equity capital,value of ¥15.7 bn)
ROE during V73 is expected to remain above the・ Continue dividends targeting a consolidated payout ratio
initial target (5%).
of 50%・ Equity ratio as of March 31, 2023 was 43.5%.
Aiming to maintain the financial soundness(2) Maintain financial soundness
necessary to continue business transactions.
・ Improve transaction conditions
・ Liquidate large receivables
・ Reduce strategically held shares
Eliminate 8 types of stocks during V73(including one type of stock transferred to pureinvestment shares)(3) Ensure the mobility and stability of fund procurement
・ Entered into a commitment line contract (from August 31,
2021)- 17 -[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Strengthening
corporate governanceContents of Measures

Targeted Effect and Progress Status(1) Efforts for issues regarding sustainability (SDGs,
ESG)a) Enhance human capital and maximize its value
Strengthen initiatives for management position ratio
targets for March 31, 2031 (women: 10%,
foreigners: continue to maintain 10% or higher, midcareer hires: continue to maintain 30% or higher)
・ Hire diverse and talented human resources
・ Enhance support for skill development and careeradvancement
・ Ensure fair evaluation/treatment and create acomfortable working environmentb) Respond to the issue of climate change
・ Identify/evaluate risks and opportunities, andreflect evaluation in management strategy
・ Perform disclosure in accordance with TCFD

Targeted Effect・ Establish a management base for sustainable growth・ Strengthen responsibility of explanation toward stakeholders
Progress Status: Good
<Enhanced human capital and maximized its value>
・ Continued recruitment of new graduates and mid-career workers, andenhanced training programs (Udemy, etc.) for expanded support ofskill development and career advancement
・ Revised the remuneration system to ensure fair treatment andmaintain a competitive salary level, and increased base salary<Initiatives for the issue of climate change>
・ Disclosed amount of GHG emissions, and set and disclosed reduction
targets
・Strengthened initiatives to address BCP needs in response to the shift
to EVs and occurrence of abnormal weather, and to address needs for
decarbonization⇒Expanded sales for vehicle-mounted products and promoted
business based on service provision (cloud).
・ Disclosed in accordance with TCFD (May 2023)<Strengthened functions of Board of Directors>
・ Identified required skills and inspected the status of skill possession.
⇒Possessed required skills for the overall Board of Directors
・Appointed a female director and accelerated initiatives to promote theactive participation of women (scheduled for appointment at theOrdinary General Meeting of Shareholders in June 2023)(2) Strengthen functions of the Board of Directors
・ Secure the required skill balance to make accurate
decisions on important matters and to supervise
business execution- 18 -[SANSHIN CONFIDENTIAL]

III. Full-Year Business Forecast for theYear Ending March 31, 2024

- 19 -[SANSHIN CONFIDENTIAL]

Year Ending March 2024
Full-Year Business Forecast(Unit: ¥100 million)■ Special demand for semiconductors has run its course, so we expect earnings and profits to
decline due to inventory adjustments, etc. We forecast recovery in the second half of the year.
03/19 Result

03/20 Result

03/21 Result

03/22 Result

03/23 Result

03/24 Forecast

YoY Change

1,478.8
1,230.9
1,127.9
1,235.8
1,611.1
1,570.0
7.7%
9.1%
9.8%
10.9%
10.5%
9.5%
Gross Profit on Sales
114.1
112.3
110.5
135.3
168.8
149.5
6.4%
7.5%
7.9%
7.5%
6.2%
6.7%
SG&A Expenses
94.4
92.7
88.8
93.2
100.3
105.5
1.3%
1.6%
1.9%
3.4%
4.3%
2.8%
Operating Profit
19.7
19.6
21.7
42.1
68.5
44.0
1.2%
1.5%
1.7%
2.9%
3.4%
2.2%
Ordinary Profit
17.4
18.6
18.8
35.6
55.1
35.0
1.0%
1.2%
1.5%
2.0%
2.4%
1.7%
Net Profit Attributable to
Shareholders of Parent Company
14.5
14.5
16.5
25.3
38.3
26.0

97%

Net Sales

ROE
AnnualDividend Per
Share

Ordinary Dividend
Commemorative
Dividend

Total

Payout Ratio
Exchange Rate
(1 US dollar)

89%
105%
64%
64%
68%

2.8%
¥70
－
¥70

3.4%
¥70
－
¥70

3.9%
¥40
－
¥40

6.8%
¥80
¥20
¥100

11.8%
¥135
－
¥135

7.2%
¥100
－
¥100

-4.6P
-¥35
－
-¥35

93.3%

93.2%

46.9%

48.8%

43.5%

47.5%

+4.0P

¥110.91¥108.74¥106.06¥112.38¥135.49¥133.00-¥2.49*Figures in the YoY Change section for ROE, annual dividend per share, payout ratio
and exchange rate represent increases or decreases.
- 20 -[SANSHIN CONFIDENTIAL]

Year Ending March 2024
Year-to-Year Comparison of Consolidated Ordinary Profit● Decrease in gross profit Approx. ¥1.16 bn*
In the device business, net sales will decrease and a
portion of highly-profitably projects will end● Decrease in non-operating profit
Approx. ¥0.33 bn*
Mainly an increase in interest expenses

Ordinary
Profit¥5.51 bn

● Increase in SG&A expenses
Approx. ¥0.52 bn
Mainly increases in personnel expenses,
outsourcing expenses, logistics expenses, andactivity expenses in conjunction with the endof COVID-19

Decrease of approx. ¥2.01 bn

03/23 Term
Result*Per accounting standards, the difference between the month-end exchange rate andthe average exchange rate is shown in both denominations in the profit and loss
statement. However, in the above figure, the difference is offset by gross profit andnon-operating profit and loss, and the actual increase or decrease is shown.
- 21 -

Ordinary
Profit¥3.50 bn

03/24 Term
Forecast[SANSHIN CONFIDENTIAL]

Year Ending March 2024
Full-Year Business Forecast by Segment(Unit: ¥100 million)■ In the device business, we forecast that net sales will decrease by 3% year-on-year, and that profit will decrease due to thedecrease in net sales and the end of a portion of highly-profitable projects■ In the solution business, we forecast that net sales will increase by 5% year-on-year, and that profit will increase due to theincrease in net sales
03/19 Result 03/20 Result 03/21 Result 03/22 Result 03/23 Result

03/24
Forecast

YoY
ChangeNet Sales
1,332.8
DeviceBusiness

Operating Profit

1.3%

1,090.8
1.4%

17.1
Segment
Profit

0.3%

989.9
1.6%

15.3
0.4%

1,105.2
3.6%

15.7
0.2%

1,475.8
4.4%

40.1
2.0%

1,428.0

97%

38.8

59%

2.7%
65.5

2.8%

1.4%

4.7

4.2

1.7

21.9

41.4

20.0

48%

146.0

140.1

138.0

130.6

135.3

142.0

105%

19.3

108%

Net Sales
Solution
Business

Operating Profit

11.3%

13.2%
16.5

Segment
ProfitExchange rate (1 US dollar)

8.7%

15.2%
18.4

10.3%

14.0%
21.0

12.4%

13.2%
18.3

10.5%

13.6%
17.9

10.1%

10.6%

12.7

14.4

17.1

13.7

13.7

15.0

109%

¥110.91¥108.74¥106.06¥112.38¥135.49¥133.00-¥2.49*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.
- 22 -[SANSHIN CONFIDENTIAL]

Year Ending March 2024
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
-3%
1,476
1,428

100

415

478

533

471

510

480

03/22 Term

03/23 Term

03/24 Term
Forecast

1,105

1,091

Strategic
Business

488

990

244

155

Core Business

426
431

VolumeBusiness

565
404

03/20 Term

03/21 Term390

- 23 -By Business Category of Device Business【Year-to-Year Comparison of Fluctuations】■ Volume Business (down 6% YoY)
● Decrease for mobile devices○ Strong sales for social infrastructure■ Core Device (up 12% YoY)
○ Strong sales for industry, vehicle-mounted
business, and storage, etc.
■ Strategic Device (down 15% YoY)
● Decrease in overseas merchandise such as
wireless merchandise/analog
semiconductors● Decrease in modular products[SANSHIN CONFIDENTIAL]

Year Ending March 2024
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales-3%

By Supplier of Device Business

1,476
1,428
198

1,105

1,091
990
Other

413

198

207

660

626

281
356

Overseas
Manufacturers

Electromechanical
Parts
Manufacturers

212【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (down 2% YoY)
● Decrease for mobile devices and gaming consoles■ Overseas Manufacturers (down 5% YoY)
● Decrease in overseas merchandise such as wirelessmerchandise/analog semiconductors● Decrease in modular products■ Other (no change YoY)

219

466

490

03/20 Term

03/21 Term

542

03/22 Term

618

604

03/23 Term

03/24 Term
Forecast- 24 -[SANSHIN CONFIDENTIAL]

Year Ending March 2024
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
+5%
140.1
Video
Systems
AP Software

16.4

142.0

138.0
130.6
16.1

135.3
18.8

16.2
17.9

27.8

27.3

26.7

28.3
26.7

Embedded
Systems

29.7

PublicSystems

30.1

NW

27.1
23.6

36.5

33.2

By Sector of Solution Business

28.8

26.9

32.3

33.7

36.1

31.0

29.2

30.2

35.4

03/20 Term

03/21 Term

03/22 Term

03/23 Term

03/24 Term
Forecast- 25 -【Year-to-Year Comparison of Fluctuations】■ NW (up 17% YoY)
○ Increase in investment in IT infrastructureby private corporations■ Public Systems (down 4% YoY)
● Decrease in projects for updating disasterprevention radio■ Embedded Systems (up 7% YoY)
○ Recovery of demand related to servers, etc.
■ AP Software (down 6% YoY)
● Decrease in software development projects■ Video Systems (up 16% YoY)
○ Recovery of demand for streaming[SANSHIN CONFIDENTIAL]

Year Ending March 2023
Forecast of Consolidated Financial Situation (Unit: ¥100 million)■ Regarding the forecast for the fiscal year ending March 31, 2024, we are planning total assets of ¥77.9 bn (down ¥0.7 bn from March 31, 2023) and an equity ratio of 45% (up 1.6%
from March 31, 2023).
■ We predict that accounts receivable will increase by ¥4.60 bn from March 31, 2023 due to business recovery in the second half of the year, but inventories will decrease by ¥4.53 bn
from March 31, 2023.
■ We will reduce interest-bearing liabilities (down ¥1.38 bn from March 31, 2023) through appropriate management of cash and deposits, and focus on gradually reducing financial
costs.
■ Operating cash flows are expected to be ¥2.6 bn, a ¥3.3 bn improvement due to a reduction in inventories despite an increase in accounts receivable.
■ In addition to unused funds, we will ensure sufficient working capital by entering into commitment line agreements with three major banks (total of ¥6 bn).

1) Balance Sheets

2) Cash FlowsFY EndedMar. 22
Result (A)FY EndedMar. 23
Result (B)

B-A
Increase/
Decrease

FY EndingMar. 24
Forecast (C)C-B
Increase/
Decrease

Cash and deposits

93.1

88.9

-4.1

80.5

-8.4

Decrease (increase) ininventories

Accounts receivable

358.7

372.7

14.0

418.7

46.0

Inventories

197.3

250.0

52.7

204.8

-45.3

Increase (decrease) in
accounts
payable-trade

Other assets

79.0

74.4

-4.6

75.0

0.6

Total assets

728.1

786.0

57.9

778.9

-7.1

Operating C/F

144.6

138.6

-6.0

136.1

-2.5

Investing C/F

244.3

268.3

24.0

254.5

-13.8

Financing C/F

Other liabilities

32.4

36.6

4.2

37.0

0.4

Total net assets

306.8

342.5

35.7

351.3

8.8

728.1

786.0

57.9

778.9

-7.1

42.1%

43.5%

1.4%

45.1%

1.6%

Accounts payable
Interest-bearing
liabilities

Total liabilities
and net assets
Equity ratio

Decrease (increase) in
accounts
receivable-trade

FY Ended Mar.
22 Result

FY Ended Mar.
23 Result

FY Ending Mar.
24 Forecast

-0.1

7.9

-46.0

-45.6

-44.7

45.3

2.3

-17.0

-2.5

65.3

46.0

28.7

21.9

-7.8

25.5

-1.5

-0.5

-2.0

-185.9

2.6

-32.0

3.1

1.5

-162.4

-4.1

-8.4

93.1

88.9

80.5

Other

- 26 -

Foreign currency
conversion
adjustments
Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end[SANSHIN CONFIDENTIAL]

Concept of Return to Shareholders● Policy on Distribution of Profits
The Company considers profit returns to its shareholders as one of the most importantmanagement issues. The Company’s basic policy is to determine dividends by comprehensively
considering the need to maintain a balance between rewarding of shareholders, investment togain opportunities for growth, attainment of sufficient retained earnings to enable sustainablegrowth, and improvement in capital efficiency. Under this policy, the Company has set a target
for its dividend payout ratio of around 50% on a consolidated basis.
● Dividend Forecast for the Year Ending March 31, 2024
An annual dividend of ¥100 per share (midterm dividend of ¥35, term-end dividend of ¥65);
consolidated dividend payout ratio of 47.5%
03/19 Result
Ordinary
Dividend
AnnualCommemorative
Dividend Per
Dividend

Share

Total

Payout Ratio

03/20 Result

03/21 Result

03/22 Result

03/23 Result

03/24 Forecast

YoY Change

¥70

¥70

¥40

¥80

¥135

¥100

-¥35

－

－

－

¥20

－

－

－

¥70

¥70

¥40

¥100

¥135

¥100

-¥35

93.3%

93.2%

46.9%

48.8%

43.5%

47.5%

+4.0P

*Figures in the YoY Change section represent increases or decreases in amount.

- 27 -[SANSHIN CONFIDENTIAL]

Change in Return to Shareholders
03/19 Term
Result03/20 Term
Result03/21 Term
Result03/22 Term
Result03/23 Term
Result03/24 Term
Forecast(1) Consolidated net profit¥1,449 million¥1,451 million¥1,646 million¥2,525 million¥3,833 million¥2,600 million(2) Comprehensive profit¥1,585 million¥666 million¥2,393 million¥4,204 million¥4,788 million

－

48.3%

57.0%

51.0%

42.1%

43.5%

45.1%

¥1,352 million(¥70)¥1,352 million(¥70)¥773 million(¥40)¥1,232 million(¥100)¥1,666 million(¥135)¥1,235 million(¥100)

93.3%

93.2%

46.9%

48.8％

43.5%

47.5%

¥19.72 billion(9 million shares)--¥15.74 billion(7 million shares)－

Suspense

1,454.2%

93.2%

46.9%

672.3％

43.5%

Suspense(8) Cancellation of treasury stock

5,000 thousand
shares--8,000 thousand
shares－

Suspense(9) Total number of shares issued(Excluding treasury stock)

24,281 thousand
shares(19,178 thousand
shares)24,281 thousand
shares(19,180 thousand
shares)24,281 thousand
shares(19,183 thousand
shares)16,281 thousand
shares(12,183 thousand
shares)16,281 thousand
shares(12,192 thousand
shares)

Suspense(10) Net profit per share¥67.48¥75.66¥85.82¥171.12¥314.43¥213.25(11) Net assets per share¥2,224.47¥2,188.84¥2,249.40¥2,514.04¥2,803.65¥2,881.29(3) Consolidated equity ratio(4) Total dividends(Dividend per share)(5) Consolidated payout ratio(6) Value of treasury stock acquired(Number of shares acquired)(7) Total payout ratio (4+6)÷1*1) Total dividends include the dividend amount for shares held by trusts related to the performance-based stock compensation plan for directors (excluding external directors).
The forecast for 03/22 term includes the commemorative dividend ¥20 per share.
2) Net profit per share is calculated based on the average number of issued shares (excluding treasury stock) during the period.
3) Net assets per share is calculated based on the total number of shares issued (excluding treasury stock) at fiscal year end.
4) The forecast for net profit per share and net assets per share for 03/24 term is calculated based on the total number of shares issued (excluding treasury stock) as of March 31, 2023.

- 28 -[SANSHIN CONFIDENTIAL]

Our Corporate Code

TRUST

PRINCIPLESSINCERITY

Business cannot
succeed without trust.
It begins and ends
with trust.

Do not just pursue profit.
But act based onprinciples, which can berealized through selfdiscipline.

Always act sincerely.
Rise to the challengehead-on.

- 29 -[SANSHIN CONFIDENTIAL]