(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.)November 7, 2022

Summary of Financial Results for the First Half of the Fiscal YearEnding March 31, 2023
(Six Months Ended September 30, 2022)[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 filing of Quarterly Report:
November 8, 2022
Scheduled date of dividend payment:
December 1, 2022
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: Yes (for securities analysts and institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Half of March 2023 Term (April 1, 2022 – September 30, 2022)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

2Q March 2023 Term
2Q March 2022 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

82,994
45.5
4,247
215.5
57,047
5.7
1,346
140.9
2Q March 2023 Term: 4,638 million yen (386.0%);
Net profit per share

2Q March 2023 Term
2Q March 2022 Term

Million yen%

Million yen

%

2,934
155.8
2,160
173.7
1,147
139.3
789
115.0
2Q March 2022 Term: 954 million yen (237.5%)

Diluted net profit per share
Yen

Yen

177.3045.61－－(2) Consolidated financial position
Total assets

Net assets

Million yen

2Q March 2023 Term
March 2022 Term
(Reference) Shareholders’ equity

96,21772,8092Q March 2023 Term: 34,405 million yen;

Million yen

Equity ratio%

34,47235.8
30,683
42.1
March 2022 Term: 30,630 million yen

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

－
－

30.00
30.00

－

70.00

100.00－105.00135.00March 2022 Term
March 2023 Term
March 2023 Term (forecast)(Notes) 1. Revision of most recent forecast on dividends:

Yes

2. Breakdown of 2Q-end dividends for March 2022 term: Ordinary dividend 10.00 yen, Commemorative dividend 20.00 yen(dividend to commemorate 70th anniversary of founding)

3. Forecasts for Consolidated Business Performance for March 2023 Term (April 1, 2022 – March 31, 2023)

Net sales

Full year

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%

Yen155,600

25.9

6,200

47.3

4,500

26.4

3,300

30.7

270.66(Note) Revision of most recent forecast on earnings:

Yes* Annotations(1) Significant subsidiary change in the consolidated cumulative period of this quarter (changes in scope of consolidation):
Newly added: － Excluded: －(2) Application of unique accounting to the preparation of quarterly consolidated financial statements:

None

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:

None

None

None

None

(4) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
2Q March 2023 Term:

16,281,373 shares

March 2022 Term:

16,281,373 shares

March 2022 Term:

4,097,789 shares

2Q March 2022 Term:

17,309,495 shares2) Amount of treasury stock at the end of term:
2Q March 2023 Term:

4,088,899 shares3) Amount of average stock during the term (quarterly total):
2Q March 2023 Term:

12,185,566 shares(Note) The amount of treasury stock at the end of the term includes Company stock (2Q March 2023 term: 123,800 shares,
March 2022 term: 132,800 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 intreasury stock to be deducted in the calculation of the amount of average stock during the term (2Q March 2023
term: 130,784 shares, 2Q March 2022 term: 132,800 shares).
* This summary of quarterly financial results is not subject to quarterly review by 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. 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 for thebusiness performance.

Contents of Appendix
1. Qualitative Information Concerning the Current Quarterly Settlement ......................................................... 2(1) Explanation of Business Results .................................................................................................................. 2(2) Explanation of Financial Position ................................................................................................................ 3(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects .................. 3
2. Quarterly Consolidated Financial Statements and Main Notes...................................................................... 5(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 5(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........ 7(3) Statement of Quarterly Cash Flows.............................................................................................................. 9(4) Notes on Quarterly Consolidated Financial Statements ............................................................................. 10(Notes Regarding Going Concern) .................................................................................................................. 10(Notes Regarding Remarkable Change of Shareholders’ Equity) .................................................................... 10(Segment Information and Other) .................................................................................................................... 10

1

1. Qualitative Information Concerning the Current Quarterly Settlement
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 quarter.
(1) Explanation of Business Results
In the consolidated first-half period under review, when looking at the global economy, the normalization of
economic activities progressed under the premise of coexisting with COVID-19. However, the future remained
uncertain due to the risk of economic decline caused by factors such as rising prices for commodities throughout
the world, rising raw materials prices in conjunction with the Russian invasion of Ukraine, and tightening ofmonetary policy in each country. In the electronics industry, which is the primary area of business of the Sanshin
Electronics Group, tight supply and demand for items such as semiconductors and electronic components
persisted, impacting the manufacturing of automobiles, electronic devices, and other products that incorporate
those semiconductors and components. Also, in the domestic ICT industry, there was a shift to the cloud insystems and spread of subscription models based on heightened needs for promoting 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, business performance in the consolidated first half-period under review was as follows. Net sales
were ¥82,994 million (up 45.5% year-on-year), operating profit was ¥4,247 million (up 215.5% year-on-year),and ordinary profit was ¥2,934 million (up 155.8% year-on-year). Net profit attributable to shareholders of parent
company was ¥2,160 million (up 173.7% year-on-year).
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. In the consolidated first half under review, in conjunction with significant weakening of the yen, expenses
to be offset significant exceeded the corresponding expenses, which resulted in increased operating profit.
However, we adjusted the increased amount as foreign exchange loss on non-operating expenses, and there was
no impact on ordinary profit.
The operating results for each business segment are 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.
In the consolidated first-half period under review, in addition to strong sales of electronic components, net
sales of semiconductors manufactured overseas increased due to expansion of commercial sales rights and strong
sales for home video game consoles. The weakening of the yen in foreign exchange markets was another driving
factor. As a result, net sales were ¥77,752 million (up 50.0% year-on-year). Segment profit was ¥2,658 million(up 216.4% year-on-year) due to increased revenue, despite an increase in selling, general and administrative
expenses.
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 first half under review, despite strong performance in the embedded systems field and2image systems field, overall sales decreased due to factors such as the impact of later delivery of products causedby the tight supply and demand for semiconductors that has continued from the fiscal year ended March 31, 2022
in other fields. As a result, net sales were ¥5,242 million (up 0.9% year-on-year). Furthermore, segment profit
was ¥275 million (down 10.2% year-on-year) due to an increase in selling, general and administrative expenses.
(2) Explanation of Financial Position(Assets)
As of September 30, 2022, assets increased ¥23,408 million compared with March 31, 2022, to ¥96,217
million. This was mainly attributable to a ¥12,868 million increase in notes and accounts receivable–trade and a¥9,382 million increase in merchandise inventories.
(Liabilities)
As of September 30, 2022, liabilities increased ¥19,619 million compared with March 31, 2022, to ¥61,744
million. This was mainly attributable to a ¥13,362 million increase in short-term loans payable and a ¥5,681
million increase in notes and accounts payable–trade.
(Net Assets)
As of September 30, 2022, net assets increased ¥3,788 million compared with March 31, 2022, to ¥34,472
million. This was mainly attributable to a ¥2,510 million increase in foreign currency translation adjustment anda ¥1,298 million increase in retained earnings.
(Cash Flows)
As of September 30, 2022, cash and cash equivalents decreased ¥2,306 million compared with March 31,
2022, to ¥7,001 million. This was due to expenses caused by factors such as an increase in notes and accounts
receivable–trade and an increase in inventories, which exceeded income from sources such as short-term loans
payable.
(Operating activities)
Net cash used in operating activities during the consolidated first-half period under review totaled ¥12,658
million. This was due to expenses caused by factors such as an increase in notes and accounts receivable–
trade and an increase in inventories, which exceeded income from sources such as an increase in notes andaccounts payable–trade. Compared to the previous consolidated first-half period, this represented an expense
increase of ¥11,029 million.
(Investing activities)
Net cash provided by investing activities during the consolidated first-half period under review totaled¥25 million. This was due to income from sources such as sales of investment securities, which exceeded
expenses caused by factors such as purchase of property and equipment. Since the figure for the previous
consolidated first-half period was an expense of ¥35 million, this represented an income rise of ¥61 million.
(Financing activities)
Net cash provided by financing activities during the consolidated first-half period under review totaled¥10,052 million. This was due to income as the result of factors such as an increase in short-term loans
payable, which exceeded expenses caused by factors such as cash dividends paid. Since the figure for theprevious consolidated first-half period was an expense of ¥14,823 million, this represented an income rise of¥24,875 million.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
From the third quarter onwards, in the device business, we expect that some of the projects (including thosethat had been handled for a limited period of time) that had been driving performance due to the tight supply anddemand of semiconductors, etc., will come to an end. In the solution business, we have concerns about delivery
delays for some products such as servers and communication equipment due to tight supply and demand.
3However, based on the progress of performance in the consolidated first half under review, current conditions,and our evaluation of the degree of impact due to foreign exchange, the situation in Ukraine, etc., we decided torevise upward the initial forecast (announced on May 20, 2022) for business performance in the fiscal year ending
March 31, 2023 to the figures shown below.
In regards to the forecasted figure for dividend per share, since we revised upward the forecast for net profit
attributable to shareholders of parent company in the fiscal year ending March 31, 2023, we have decided torevise upward the year-end dividend forecast to the figure shown below, based on the Company’s basic dividend
policy. For details, please refer to “Notice Regarding Discrepancies in Forecast of First Half Business Results
and Actual Results, Revision of Forecast of Full-Term Business Results, and Revision of Dividend Forecast”
that was published today.
(Forecasts for Consolidated Business Performance for March 2023 Term)
Net sales¥155,600 million (up 25.9% year-on-year)
Operating profit¥6,200 million(up 47.3% year-on-year)
Ordinary profit¥4,500 million(up 26.3% year-on-year)
Net profit attributable to shareholders of parent company ¥3,300 million(up 30.7% year-on-year)
Year-end dividend¥105 per share (annual dividend ¥135 pershare including the interim
dividend)42. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2022 Term
(As of Mar. 31, 2022)

2Q March 2023 Term
(As of Sept. 30, 2022)

Cash and deposits

9,307

7,001

Notes and accounts receivable–trade, and contract assets

34,90847,839957

894

19,732

29,114

AssetsCurrent assets

Electronically recorded monetary claims
Merchandise inventories

040

Others

1,583

5,063

Allowance for doubtful accounts

(29)

(43)

66,45989,910

2,652

2,615

461

422

3,282

3,323

Partly-finished work

Total current assets
Non-current assets
Property and equipment
Intangible assets
Investments and other assets
OthersAllowance for doubtful accounts

(47)

(53)

Total investments and other assets

3,235

3,269

6,349

6,307

72,80996,217

Notes and accounts payable–trade

14,455

20,136

Short-term loans payable

24,42637,788

Accrued corporate tax, etc.

602

867

Allowance

653

557

Total non-current assets
Total assets
Liabilities
Current liabilities

Others

1,492

1,948

Total current liabilities

41,63061,299Net defined benefit liabilities

158

146

Others335

299

Total non-current liabilities

494

445

42,12561,744Non-current liabilities

Total liabilities

5

(Million yen)March 2022 Term
(As of Mar. 31, 2022)

2Q March 2023 Term
(As of Sept. 30, 2022)

Capital stock

14,811

14,811Retained earnings

22,65423,953

Treasury stock(8,773)(8,760)Total shareholders’ equity

28,69230,003567

575

Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred hedge gains (losses)

(117)

(160)

Foreign currency translation adjustment

1,512

4,022

Remeasurements of defined benefit plans

(23)

(35)

Total accumulated other comprehensive income

1,937

4,401

53

67

30,683

34,47272,80996,217

Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Quarterly Consolidated Profit and Loss Statement of the First Half)

2Q March 2022 Term
(Apr. 1, 2021 - Sept. 30, 2021)
57,047

Net sales(Million yen)
2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)
82,994

Cost of sales

51,27973,826Gross profit on sales

5,767

9,168

Selling, general and administrative expenses

4,421

4,920

Operating profit

1,346

4,247

Interest income

912Dividend income

25

23

Others47

45

Total non-operating profit

82

81

Interest expenses

52

208

Sales discounts

59Commission for purchase of treasury stock

21-

Foreign exchange losses

169

1,161

Others33

15

Total non-operating expenses

281

1,395

1,147

2,934

Gain on sales of investment securities

031

Total extraordinary profits

031

Loss on retirement of non-current assets

00Loss on sales of investment securities-

1

Non-operating profit

Non-operating expenses

Ordinary profit
Extraordinary profits

Extraordinary losses

01

Net profit before tax and other adjustments

1,147

2,963

Corporate, resident and enterprise taxes

231

816

Adjustment for corporate tax, etc.

132

(26)

Total corporate taxes

363

789

Net profit

783

2,174

Net profit (loss) attributable to non-controlling interests

(5)

13

Net profit attributable to shareholders of parent company

789

2,160

Total extraordinary losses

7

(Quarterly Consolidated Comprehensive Income Statement of the First Half)
2Q March 2022 Term
(Apr. 1, 2021 - Sept. 30, 2021)
783

Net profit

2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)
2,174

Other comprehensive income(57)

Valuation difference on available-for-sale securities

7

Deferred hedge gains (losses)

94

(42)

Foreign currency translation adjustment

132

2,510

0

(11)

170

2,464

954

4,638

959

4,624

(5)

13

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests8

(3) Statement of Quarterly Cash Flows(Million yen)
2Q March 2022 Term
(Apr. 1, 2021 - Sept. 30, 2021)

2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)

Operating activities
1,147

2,963

Depreciation and amortization

118

150

Amortization of goodwill

13

13

Increase (decrease) in allowance for doubtful accounts

127

Increase (decrease) in allowance for stock compensation

(3)

(2)

Increase (decrease) in net defined benefit liabilities

(22)

(37)

Interest and dividend income

(34)

(36)

Interest expenses

52

208

Net profit before tax and other adjustments

(0)

(29)

Decrease (increase) in notes and accounts receivable–trade(2,405)(7,693)

Decrease (increase) in inventories(2,057)(7,487)

542

3,187

1,762

(3,147)

Increase (decrease) in accrued consumption taxes

(20)

9

Others(489)

9

Subtotal(1,385)(11,882)38

39

Interest expenses paid

(51)

(208)

Income taxes (paid) refund

(229)

(606)

(1,628)(12,658)

Purchase of property and equipment

(21)

(27)

Purchase of software

(15)

(18)

Purchase of investment securities

(0)

(0)

Proceeds from sales of investment securities

172

Others

0

(1)

(35)

25

1,575

10,954

Loss (gain) on sales of investment securities

Increase (decrease) in notes and accounts payable–trade
Decrease (increase) in consumption taxes refund receivable

Interest and dividend income received

Net cash used in operating activities
Investing activities

Net cash provided by (used in) investing activities
Financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Net decrease (increase) in treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities

(38)

(44)

(15,743)

(0)

(616)

(856)

(14,823)

10,052(18)273

Net increase (decrease) in cash and cash equivalents(16,505)(2,306)

Balance of cash and cash equivalents, beginning of the period

25,544

9,307

Balance of cash and cash equivalents, end of the period

9,038

7,001

Effect of exchange rate change on cash and cash equivalents9(4) Notes on Quarterly Consolidated Financial Statements(Notes Regarding Going Concern)
None.

(Notes Regarding Remarkable Change of Shareholders’ Equity)
None.

(Segment Information and Other)[Segment Information]
I. Six months ended September 30, 2021 (Apr. 1, 2021 - Sept. 30, 2021)
Information regarding the amounts of sales, profit or loss in each report segment(Million yen)

Net sales
Sales to outside customers
Inter-segment sales or transfers
Total
Segment profit

Device segment

Solution segment

51,851－
51,851
840

5,196
－
5,196
306

Total
57,047－57,047
1,147(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Six months ended September 30, 2022 (Apr. 1, 2022 - Sept. 30, 2022)
1. Information regarding the amounts of sales, profit or loss in each report segment(Million yen)

Net sales
Sales to outside customers
Inter-segment sales or transfers
Total
Segment profit

Device segment

Solution segment

77,752－77,752
2,658

5,242
－
5,242
275

Total
82,994－82,9942,934(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

10