(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 20, 2022

Summary of Financial Results for Fiscal Year Ended March 31, 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:
Akio Misono, Director, Senior Operating Officer and Senior General
Tel: +81-3-3453-5111
Manager of Finance & Accounting Division
Scheduled date of Ordinary General Meeting of Shareholders: June 28, 2022
Scheduled date of filing of Annual Securities Report:
June 29, 2022
Scheduled date of dividend payment:
June 29, 2022
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 2022 Term (April 1, 2021 – March 31, 2022)(1) Consolidated business performance(% figures represent year-on-year changes)
Net profit attributable
Ordinary profit
to shareholders ofparent company

Operating profit

Net sales
Million yen%

Million yen%

Million yen%

Million yen%

March 2022 Term
March 2021 Term

123,583
112,791

9.6
(8.4)

4,209
2,167

94.2
10.7

3,560
1,878

89.5
1.1

2,524
1,646

53.4
13.4

(Note) Comprehensive income

March 2022 Term:

Net profit per
share
Yen

4,204 million yen (75.6%)

Diluted net profit
per share
Yen

March 2021 Term:

Return on
Equity2,393 million yen (259.0%)

Ordinary profit tototal assets

Operating profit
to net sales

%

%

%

March 2022 Term
171.12
－
6.8
4.5
3.4
March 2021 Term
85.82
－
3.9
2.4
1.9
(Reference) Investment profit and loss based on the equity method
March 2022 Term:－ million yen
March 2021 Term: － million yen(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020), etc., was applied from the
beginning of the consolidated fiscal year under review. The figures for March 2022 term are after application of the AccountingStandard, etc.

(2) Consolidated financial position
Total assets
Million yen

Net assets
Million yen

Equity ratio%

Net assets per share
Yen

March 2022 Term
72,80930,68342.1
2,514.04
March 2021 Term
84,602
43,21051.0
2,249.40(Reference) Shareholders’ equity
March 2022 Term:
30,630 million yen
March 2021 Term:
43,152 million yen(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020), etc., was applied from the
beginning of the consolidated fiscal year under review. The figures for March 2022 term are after application of the AccountingStandard, etc.

(3) Consolidated cash flow position
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

2,189(1,686)

(149)
(380)

(18,584)
8,925

9,307
25,544

March 2022 Term
March 2021 Term

Cash and cash equivalents
at end of period

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

Annual

Yen

Yen

Yen

Yen

Yen

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

March 2021 Term
－
8.00
－
32.00
40.00
772
46.9
1.8
March 2022 Term
－
30.00
－
70.00
100.00
1,231
48.8
4.2
March 2023 Term
－
30.00
－
55.00
85.00
49.9
(forecast)(Notes) 1. The payout ratio is calculated by dividing the total dividends by the net profit attributable to shareholders of parent company.
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 salesFirst half
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%

Yen

65,000131,500

13.9
6.4

1,380
3,030

2.5
(28.0)

1,330
2,900

15.9
(18.6)

940
2,100

19.1
(16.8)

77.15
172.36* 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:
Yes2) Changes in accounting principles other than 1):
None3) Changes in accounting estimate:None4) Redisplay after revision:
None(Note) For details, please refer to the section “3. Consolidated Financial Statements and Main Notes - (5) Notes on
Consolidated Financial Statements (Change of Accounting Principles)” on page 13 of [Appendix].
(3) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
March 2022 Term:

16,281,373 shares

March 2021 Term:

24,281,373 shares

March 2021 Term:

5,097,465 shares

March 2021 Term:

19,182,559 shares2) Amount of treasury stock at the end of term:
March 2022 Term:

4,097,789 shares3) Amount of average stock during the term:
March 2022 Term:

14,753,614 shares

Note: The amount of treasury stock at the end of the term includes Company stock (March 2022 term: 132,800 shares, March 2021
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 in treasury stock to be deducted in thecalculation of the amount of average stock during the term (March 2022 term: 132,800 shares, March 2021 term: 134,317
shares).

(Reference) Overview of Non-consolidated Results(1) Non-consolidated Business Performance for March 2022 Term (April 1, 2021 – March 31, 2022)(% figures represent year-on-year changes)
Operating profit

Net sales

Ordinary profit

Net profit

Million yen%

Million yen%

Million yen%

Million yen%

92,367
84,181

9.7(11.9)

1,152
436

164.0
(37.4)

2,091
1,879

11.2
71.8

1,567
1,921

(18.4)
95.8

March 2022 Term
March 2021 Term

Net profit per share

Diluted net profit per share

Yen

Yen

March 2022 Term
106.26－
March 2021 Term
100.17－(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020), etc., was applied from the
beginning of the fiscal year under review. The figures for March 2022 term are after application of the Accounting Standard,etc.

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

March 2022 Term
March 2021 Term
Reference) Shareholders’ equity

46,66164,898March 2022 Term:

Net assets
Million yen

17,062
32,234
17,062 million yen

Equity ratio

Net assets per share
%

36.6
49.7
March 2021 Term:

Yen

1,400.46
1,680.27
32,234 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, 2022 .................................................. 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2022 ................................................ 3(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2022 .......................................................... 3(4) Future Prospects ........................................................................................................................................... 4
2. Basic Attitudes Toward the Selection of our Accounting Standards .............................................................. 5
3. Consolidated Financial Statements and Main Notes...................................................................................... 6(1) Consolidated Balance Sheets ....................................................................................................................... 6(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........................ 8(3) Consolidated Statements of Changes in Shareholders’ Equity ................................................................... 10(4) Consolidated Statement of Cash Flows ...................................................................................................... 12(5) Notes on Consolidated Financial Statements ............................................................................................. 13(Notes Regarding Going Concern) .................................................................................................................. 13(Change of Accounting Principles) .................................................................................................................. 13(Additional Information) ................................................................................................................................. 14(Segment Information and Other) .................................................................................................................... 15(Per Share Information) ................................................................................................................................... 18(Significant Subsequent Events) ...................................................................................................................... 19
4. Other ............................................................................................................................................................ 19(1) Changes in Officers .................................................................................................................................... 19

1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended March 31, 2022
During the consolidated fiscal year under review, the global economy overall faced tough conditions due tofactors including the stagnation of economic activities in various countries caused by the continuing spread ofvariants following the COVID-19 pandemic, the impact of rising raw materials prices, and the effect of theRussian invasion of Ukraine.
In the electronics industry, a vital area of business for the Sanshin Electronics Group, shortages of inputs suchas semiconductors and electronic components persisted, impacting manufacturing of automobiles, electronic
devices and other products that incorporate them. On the other hand, in the domestic ICT industry, although the
problem of late delivery of products arose due to the tight supply and demand for semiconductors, overallbusiness was strong in investment related to digital transformation (DX).
Against this background, in the device business, the Group worked to increase the profitability of existing
businesses and to reform our portfolio by cultivating new businesses with high profit margins. In the solution
business, we strove to build a business model based on service provision, expand our latest digital technology,
and increase the number of customers.
As a result of these efforts, business performance in the consolidated fiscal year under review was as follows:
Net sales were ¥123,583 million (up 9.6% year-on-year). Operating profit was ¥4,209 million (up 94.2% yearon-year) due to strong results in the device business, and ordinary profit was ¥3,560 million (up 89.5% year-onyear). As a result, net profit attributable to shareholders of parent company was ¥2,524 million (up 53.4% yearon-year) and ROE was 6.8% (up from 3.9% in the previous year).
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, 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 technicalsupport such as software development and module development.
In the consolidated fiscal year under review, we cancelled the dealership agreement with Renesas
Electronics Corporation in June of the previous fiscal year, and sales of products from Renesas decreased asa result. However, overall sales were strong due to factors such growth of products of overseas semiconductor
manufacturers, expansion of commercial sales rights of existing suppliers, and acquisition of commercial
sales rights for new suppliers. There were also temporary factors including the tight supply and demand forsemiconductors, etc. This resulted in net sales of ¥110,522 million (up 11.7% year-on-year) and segment
profit of ¥2,188 million (up 1,168.0% year-on-year).
(Solution segment)
In the solution business segment, we provide the optimal ICT infrastructure to each customer by using
network system devices, security products, Line-of-Business systems, clouds, data centers, etc. Furthermore,
we provide seamlessly integrated service from design and construction to operation and maintenance,
responding to revolutionary technologies such as AI and IoT and advances in technology made possible bycloud development.
For the consolidated fiscal year under review, although sales were strong in the video field, overall sales
in other fields stagnated due to factors such as late delivery of products caused by the tight supply and demand
for semiconductors. As a result, net were ¥13,061 million (down 5.4% year-on-year). Furthermore, although
the gross profit margin was nearly the same as the previous fiscal year, segment profit was ¥1,372 million(down 19.6% year-on-year) due to decreased net sales and increased selling, general and administrative
expenses caused by an increased number of employees.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2022
(Assets)
As of March 31, 2022, assets decreased ¥11,793 million compared to March 31, 2021, to ¥72,809 million.
This was mainly attributable to a ¥16,236 million decrease in cash and deposits, a ¥3,700 million decrease in
consumption taxes receivable, and a ¥5,398 million increase in merchandise inventories.
(Liabilities)
As of March 31, 2022, liabilities increased ¥733 million compared to March 31, 2021, to ¥42,125 million.
This was mainly attributable to a ¥1,351 million increase in notes and accounts payable–trade, a ¥314 million
increase in accrued corporate tax, etc., and a ¥924 million decrease in short-term loans payable.
(Net Assets)
As of March 31, 2022, net assets decreased ¥12,526 million compared to March 31, 2021, to ¥30,683 million.
This was mainly attributable to a ¥5,329 million decrease in capital surplus from the retirement of treasury stock
and a ¥10,451 million decrease in retained earnings.
(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2022
As of March 31, 2022, cash and cash equivalents decreased ¥16,236 million compared to March 31, 2021, to¥9,307 million. This was attributable to an increase in expenses resulting from the purchase of treasury stock,
etc.
(Operating activities)
Net cash provided by operating activities during the consolidated period under review totaled ¥2,189 million.
This was mainly due to income from factors such as the recording of net profit before tax and other adjustments
and a decrease in consumption taxes refund receivable, the total of which exceeded expenses from factors suchas an increase in inventories. As a result, this represented an income rise of ¥3,876 million when considering theexpenses of ¥1,686 million in the previous consolidated fiscal year.
(Investing activities)
Net cash used in investing activities during the consolidated period under review totaled ¥149 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 decrease of ¥230 million.
(Financing activities)
Net cash used in financing activities during the consolidated period under review totaled ¥18,584 million due
to expenses caused by factors such as the repayment of short-term loans and the purchase of treasury stock.
Since the figure for the previous consolidated fiscal year was an income of ¥8,925 million, this represented an
expense rise of ¥27,510 million.

(Reference) Performance indicators associated with cash flows

Ratio of shareholders’ equity (%)
Ratio of shareholders’ equity on current price base (%)

March 2018
Term
65.7

March 2019
Term

March 2020
Term

March 2021
Term

March 2022
Term

48.3

57.0

51.0

42.1

65.3

41.2

36.3

45.5

26.9

Interest-bearing debt to cash flow ratio (year)

－

2.7

1.3

－

11.2

Interest coverage ratio

－

22.1

44.9

－

19.2

Notes: Ratio of shareholders’ equity: Shareholders’ equity ÷ Total assets
Ratio of shareholders’ equity 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 Group has formulated the V73 Medium-Term Management Plan (V73) to be concluded in the Company’s
73rd Term (fiscal year ending March 31, 2024). In the Plan, the Group stated the quantitative target of achieving
an ROE of 5% at an early stage. Under these circumstances, the Group has made steady progress in optimizing
shareholders’ equity through measures to strengthen shareholder returns, including the tender offer for treasury
stock implemented in the fiscal year ended March 31, 2022. In response, moving forward, we have decided totarget the Group’s shareholders’ equity cost for the target ROE, and changed the quantitative target of V73 tomaintaining an ROE of 6% or higher during the period of V73.
In regards to the forecast for the next fiscal year, which will be the first fiscal year after changing thequantitative target of V73, there is concern regarding impact on the global economy due to factors such as rising
raw materials prices and the war in Ukraine. Furthermore, the future is extremely uncertain due to factors
including the tight supply and demand for semiconductors, as well as the associated delay in production of
hardware such as computers and servers. Despite predicting such a tough business environment, the Group is
working hard to maintain an ROE of 6% or higher, and we forecast the following business results.
(Forecast for Consolidated Business Performance)
Net sales:
Operating profit:
Ordinary profit:
Net profit attributable to shareholders of parent company:
Dividend per share:¥131,500 million (up 6.4% YoY)
¥3,030 million (down 28.0% YoY)
¥2,900 million (down 18.6% YoY)
¥2,100 million (down 16.8% YoY)
¥85 (dividend of ¥100 per share in the previous
fiscal year, including a commemorative
dividend of ¥20)

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 ¥72,800
million, which is roughly the same level as the consolidated fiscal year ended March 31, 2022. We forecast that
this will mainly be attributable to factors including an increase in notes and accounts receivable–trade, and adecrease in inventories. Furthermore, we forecast that the balance of interest-bearing debt will be approximately¥22,600 million, a decrease of approximately ¥1,800 million compared to the end of the consolidated fiscal year
ended March 31, 2022.

We forecast that cash and cash equivalents at the end of the next consolidated fiscal year will be approximately¥10,000 million, which is roughly the same level as the consolidated fiscal year ended March 31, 2022.
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.

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Million yen)March 2021 Term
(As of Mar. 31, 2021)

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

Cash and deposits

25,5449,307

Notes and accounts receivable–trade32,696-

AssetsCurrent assets-

34,908841

957

14,333

19,732

Partly-finished work

90

Accrued income

6069

Notes and accounts receivable–trade, and contract assets
Electronically recorded monetary claims
Merchandise inventories

3,815

115

Others644

1,399

Allowance for doubtful accounts

(9)

(29)

77,93466,459

4,608

4,607

Accumulated depreciation(3,329)(3,348)

Buildings and structures, net

1,278

1,258

1,135

1,135

Consumption taxes receivable

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

Land

344

359

Accumulated depreciation

(139)

(183)

Lease assets, net

205

175

-

13

Leased assets

Construction in progress

436

452

(355)

(384)

80

67

2,701

2,652

482

461

Investment securities

3,067

2,988

Deferred tax assets

309

146

Others

143

147

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

Allowance for doubtful accounts

(35)

(47)

Total investments and other assets

3,484

3,235

6,668

6,349

84,60272,809Total non-current assets
Total assets

(Million yen)March 2021 Term
(As of Mar. 31, 2021)

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

Notes and accounts payable–trade

13,104

14,455

Short-term loans payable

25,351

24,426

Liabilities
Current liabilities

Lease obligations

71

77

Accrued corporate tax, etc.

288

602

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

472

597

29

56

1,659

1,414

Total current liabilities

40,975

41,630Non-current liabilities
135

100

Deferred tax liabilities

3

16

Allowance for stock compensation

74

114

Net defined benefit liabilities

100

158

Others102

103

Total non-current liabilities

416

494

41,392

42,125

Capital stock

14,811

14,811

Capital surplus

5,329

-

Retained earnings

33,10622,654

Treasury stock(10,348)(8,773)

Total shareholders’ equity

42,89928,692

Lease obligations

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

583

567

Deferred hedge gains (losses)

(133)

(117)

Foreign currency translation adjustment

(244)

1,512

Remeasurements of defined benefit plans

47

(23)

Total accumulated other comprehensive income

253

1,937

58

53

43,21030,68384,60272,809Non-controlling interests
Total net assets
Total liabilities and net assets

(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Consolidated Profit and Loss Statement)

Net sales

March 2021 Term
(Apr. 1, 2020 – Mar. 31, 2021)
112,791(Million yen)March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)
123,583

Cost of sales

101,740

110,053

Gross profit on sales

11,051

13,529Selling, general and administrative expenses

8,883

9,320

Operating profit

2,167

4,209

Interest income

18

19

Dividend income

36

43

Others83

112

Total non-operating profit

138

175

83

114

Non-operating profit

Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Commission for purchase of treasury stock

9

14

282

613

-

21

Others52

61

Total non-operating expenses

427

825

1,878

3,560

Gain on sales of investment securities

141

0

Total extraordinary profits

141

0Loss on retirement of non-current assets

00Loss on sales of non-current assets

0-Loss on valuation of investment securities

054

Ordinary profit
Extraordinary profits

Extraordinary losses

054

Net profit before tax and other adjustments

2,019

3,506

Corporate, resident and enterprise taxes

452

766

Adjustment for corporate tax, etc.

(91)

219

Total extraordinary losses

361

985

1,658

2,520

Net profit (loss) attributable to non-controlling interests

12

(4)

Net profit attributable to shareholders of parent company

1,646

2,524

Total corporate taxes
Net profit

(Consolidated Comprehensive Income Statement)(Million yen)

Net profit

March 2021 Term
(Apr. 1, 2020 – Mar. 31, 2021)
1,658

March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)
2,520

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

245

Deferred hedge gains (losses)

(134)

15

Foreign currency translation adjustment

456

1,756

Remeasurements of defined benefit plans, net of tax

167

(71)

Total other comprehensive income

735

1,684

2,393

4,204

2,381

4,208

12

(4)

Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests(16)

(3) Consolidated Statements of Changes in Shareholders’ Equity
March 2021 Term (April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity
Capital stock

Capitalsurplus14,811

5,329

Balance as of April 1, 2020
Changes during the term
Dividends of surplus
Net profit attributable toshareholders of parent
company
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes during the term
Balance as of March 31, 2021

14,811

5,329

Retained earnings
32,676

Total
shareholders’equity42,464

Treasury stock(10,353)(1,216)(1,216)

1,646

1,646

429
33,106

(0)
5

(0)
5

5
(10,348)434
42,899(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,
2020
Changes during theterm
Dividends of surplus
Net profit
attributable toshareholders ofparent company
Purchase of treasury
stock
Disposal of treasurystock
Net changes of
items other thanshareholders’ equity
Total changes during
the term
Balance as of March
31, 2021

338

1

(701)

(120)

(482)

Noncontrollinginterests
46

Total net
assets42,029(1,216)
1,646

(0)
5
245

(134)

456

167

735

11

746

245

(134)

456

167

735

11

1,181

583

(133)

(244)

47

253

58

43,210March 2022 Term (April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Capital stock

Capitalsurplus14,811

5,329

Balance as of April 1, 2021
Cumulative effects ofchanges in accounting
policies
Restated balance
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, 2022

Retained earnings
33,106

Total
shareholders’equity42,899Treasury stock(10,348)(0)
14,811

5,329

14,811

33,106(0)(10,348)

42,899

(987)

(987)

2,524

2,524
(15,743)(15,743)(5,329)(11,989)

17,318-(5,329)-(10,451)
22,654

1,574(8,773)(14,206)
28,692(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,
2021
Cumulative effects
of changes inaccounting policies
Restated balance
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, 2022

583

583

(133)

(133)

(244)

(244)

47

47

Noncontrollinginterests

Total net
assets253

58

43,210

-

-

(0)

253

58

43,210

(987)
2,524

(15,743)
(16)

15

1,756

(71)

1,684

(4)

1,679

(16)

15

1,756

(71)

1,684

(4)

(12,526)

567

(117)

1,512

(23)

1,937

53

30,683

(4) Consolidated Statement of Cash Flows(Million yen)March 2021 Term
March 2022 Term
(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
Operating activities
2,019

3,506

Depreciation and amortization

224

260

Amortization of goodwill

17

26

Increase (decrease) in allowance for doubtful accounts

1

25

Net profit before tax and other adjustments

Increase (decrease) in allowance for stock compensation

20

40

Increase (decrease) in net defined benefit liabilities

(14)

(49)

Interest and dividend income

(54)

(62)

Interest expenses

83

114

Loss (gain) on sales of non-current assets

0

-

(141)

(0)

0

54

(4,633)(13)

Decrease (increase) in inventories

1,890(4,561)

Increase (decrease) in notes and accounts payable–trade(1,114)

233

85

3,700

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable–trade

Decrease (increase) in consumption taxes refund receivable

4

(19)

Others268(553)

Subtotal(1,343)(2,701)

Increase (decrease) in accrued consumption taxes

Interest and dividend income received

61

69

Interest expenses paid

(83)

(114)

Corporate and other taxes paid

(322)

(467)

(1,686)

2,189

(171)

(67)

0

0

Purchase of software

(77)

(85)

Purchase of investment securities

(241)

(0)

Proceeds from sales of investment securities

180

1

Others(70)

2

Net cash used in investing activities

(380)

(149)

Net cash provided by (used in) operating activities
Investing activities
Purchase of property and equipment
Proceeds from sales of property and equipment

Financing activities
10,218(1,778)

Repayments of lease obligations

(77)

(77)

Net decrease (increase) in treasury stock(0)(15,743)

Net increase (decrease) in short-term loans payable

Cash dividends paid

(1,214)(985)

Net cash provided by (used in) financing activities

8,925(18,584)

241

308

Net increase (decrease) in cash and cash equivalents

7,100(16,236)

Balance of cash and cash equivalents, beginning of the period

18,44325,544

Balance of cash and cash equivalents, end of the period

25,5449,307

Effect of exchange rate change on cash and cash equivalents

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
None(Change of Accounting Principles)
Application of the Accounting Standard for Revenue Recognition, etc.
From the beginning of the consolidated fiscal year under review, the Company applies the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020; hereinafter, “the AccountingStandard for Revenue Recognition”), etc. Under this standard, once control of a promised good or service istransferred to the customer, the Company recognizes revenue at the amount that the Company expects to receivein exchange for the good or service.
As a result, mainly in export sales, revenue was recognized at the time of clearing export customs. However,revenue is now recognized when the burden of risk has been transferred to the customer based on the tradeconditions stipulated by Incoterms (international commercial terms), etc.
In applying the Accounting Standard for Revenue Recognition, etc., the Company follows the transitional
handling stipulated in the proviso in Paragraph 84 of the Accounting Standard for Revenue Recognition. The
cumulative financial effect of applying the new accounting principle retroactively to events before the beginningof the consolidated fiscal year under review is added to or subtracted from the retained earnings at the beginningof the consolidated fiscal year under review, and the new accounting principle is applied from the balance at the
beginning of the consolidated fiscal year under review onward. However, the method stipulated in Paragraph 86of the Accounting Standard for Revenue Recognition is also applied. The new accounting principle is not applied
retroactively to contracts in which most revenue is recognized in accordance with the handling before thebeginning of the consolidated fiscal year under review. In addition, the method stipulated in the proviso (1) in
Paragraph 86 of the Accounting Standard for Revenue Recognition is applied. With respect to contract changes
conducted before the beginning of the consolidated fiscal year under review, accounting is conducted based on
the contract terms after all of the contract changes are reflected, and the cumulative financial effect is added toor subtracted from the retained earnings at the beginning of the consolidated fiscal year under review.
Applying the Accounting Standard for Revenue Recognition, etc., has insignificant impact on the
consolidated financial statements.
Because the Accounting Standard for Revenue Recognition, etc., is applied, the item “Notes and accounts
receivable–trade” listed under “Current assets” in the consolidated balance sheet for the previous consolidated
fiscal year is included in “Notes and accounts receivable–trade, and contract assets” from the consolidated fiscal
year under review onward. In accordance with the stipulation on transitional handling in Paragraph 89-2 of the
Accounting Standard for Revenue Recognition, accounting items are not reorganized for the previous
consolidated fiscal year as a result in the new method of representation.
Application of the Accounting Standard for Fair Value Measurement, etc.
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019; hereinafter,“the Accounting Standard for Fair Value Measurement”), etc., is applied from the beginning of the consolidated
fiscal year under review. In accordance with the stipulations on transitional handling in Paragraph 19 of the
Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10; July 4, 2019), the new accounting principle stipulated in the AccountingStandard for Fair Value Measurement, etc., will be applied in the future.
Applying the Accounting Standard for Fair Value Measurement, etc., has no impact on the consolidated
financial statements.

(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 ¥190 million in theprevious consolidated fiscal year and ¥190 million in the consolidated fiscal year under review, and is recorded
as treasury stock in the shareholders’ equity.
The number of said shares was 132,000 as of the end of the previous consolidated fiscal year and 132,000 asof the end the consolidated fiscal year under review. The average number of shares was 134,000 during theprevious consolidated fiscal year and 132,000 during the consolidated fiscal year under review. These shares areincluded in the shares of treasury stock excluded for calculation of per share information.

(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, LCD driver ICs and memory) and electronic components (including connectors andcapacitors). 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 are committed to design, construction, operation and maintenance ofinfrastructure for private companies as well as government offices and municipalities, focusing on
communication networks. For Line-of-Business systems, we offer services deriving from provision of
package software, such as individually developed and customized solutions. We also provide broadcast
stations and production companies with systems for editing, transmission and distribution of video content,
centered on products from suppliers abroad.
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).
As described in “(Change of Accounting Principles),” the Company applied the Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29; March 31, 2020), etc., from the beginning of the consolidated
fiscal year under review and changed the method of account processing for revenue recognition. Consequently,
we similarly changed the method for measuring net sales and profit in business segments.
The impact of the changes on net sales and profit in the business segment is insignificant.

3. Information regarding the amounts of sales, profit or loss, assets, liabilities, and other items in each report
segment
March 2021 Term (Apr. 1, 2020 – Mar. 31, 2021)(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

98,987

13,804

112,791-

112,791

-

-

-

-

-

98,987172
50,53013,804
1,706
5,642

112,791
1,878
56,17328,429112,791
1,878
84,602

170

54

224

-

224

232

44

277

80

358

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 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)(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

110,522

13,061

123,583-

123,583

-

-

-

-

-

110,5222,188
58,071

13,061
1,372
5,951

123,583
3,560
64,023

8,785

123,583
3,560
72,809

192

68

260

-

260

56

44

101

105

207

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.

[Related information]
March 2021 Term (Apr. 1, 2020 – Mar. 31, 2021)
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
47,400Asia
64,548

North America

Others

727

Total
114

112,791(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 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)
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
43,022

Asia
80,116

North America
355

OthersTotal
89

123,583(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[Information regarding the amount of amortization of goodwill and the balance in each report segment]
March 2021 Term (Apr. 1, 2020 – Mar. 31, 2021)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

57

-

-

57

Balance at term-end

124

-

-

124

March 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

26

-

-

26

Balance at term-end

97

-

-

97

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

March 2021 Term
(Apr. 1, 2020 – Mar. 31, 2021)

March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)

Net assets per share

2,249.40

2,514.04

Net profit per share

85.82

171.12

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: 132,000 shares, current consolidated fiscal year: 132,000 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: 134,000 shares, current consolidated fiscal year: 132,000 shares).
3. Net profit per share was calculated on the following basis.

(Million yen)March 2021 Term
March 2022 Term
(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
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)

1,646

2,524

-

-

1,646

2,524

19,182

14,753

(Significant Subsequent Events)
None
4. Other(1) Changes in Officers (Scheduled for June 28, 2022)
1) Changes in Representatives
None2) Changes in Other Officers
 Candidate for new Director
Director, Operating Officer Jun-ichi Murakami [Deputy Senior General Manager of Finance & Accounting
Division] Director scheduled for retirement
Akio Misono [Director, Senior Operating Officer]
 Candidate for new Audit & Supervisory Board member
Akio Misono [Director, Senior Operating Officer] Audit & Supervisory Board member scheduled for retirement
Keiji Nishio [full-time Audit & Supervisory Board member]
Current position is listed in brackets [ ].