Briefing Materials on
the Financial Results for
the Year Ended March 2024
May 10, 2024

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 2024
Performance Summary-3-[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Consolidated Performance Summary(Unit: ¥100 million)■ Net sales declined against the previous fiscal year (YoY). Earnings also fell YoY, though they exceeded the initial forecast.
03/23 Result
Net Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit Attributable to
Shareholders of Parent
Company

ROE
Exchange Rate
(1 US dollar)

03/24 Result

YoY Change

1,611.1
1,402.0
10.5%
11.1%
168.8
155.5
6.2%
7.0%
100.3
98.0
4.3%
4.1%
68.5
57.5
3.4%
2.8%
55.1
39.1
2.4%
2.0%
38.3
27.4

87%

Forecast*1)

1,570.0
9.5%
92%
149.5
6.7%
98%
105.5
2.8%
84%
44.0
2.2%
71%
35.0
1.7%
72%
26.0

Achievement
Ratio

89%
104%
93%
131%
112%
105%

11.8%

7.6%

-4.2p

7.2%

+0.4p

¥135.49¥144.62¥9.13¥140.00+¥4.62*1) Forecast figures announced in the Summary of Financial Results for Fiscal Year Ended March 31, 2023 (announced on May 11, 2023).
*2) Figures in the YoY Change section and Achievement Ratio section for ROE and exchange rate represent increases or decreases.

-4-[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Year-to-Year Comparison of Consolidated Ordinary Profit● Decrease in gross profit Approx. ¥1.81 bn*

Ordinary
Profit¥5.51 bn

○ Decrease in SG&A expenses, etc.
Approx. ¥0.21 bn
Mainly decreases in logistics expenses,
outsourcing expenses, etc.

Ordinary
Profit¥3.91 bn

Decrease of approx. ¥1.60 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.
-5-

03/24 Term Result[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Consolidated Performance Summary by Segment (Unit: ¥100 million)■ Device BusinessNet sales declined YoY. Earnings also declined YoY as gross profit fell from loss of certain highly-profitable projects andinterest expenses increased.
■ Solution BusinessSupported by high corporate need for DX promotion at companies, this segment trended favorably throughout the fiscal year,
posting gains in both sales and earnings.
03/23 Term
ResultNet Sales
DeviceBusiness

Operating
ProfitSegment
Profit1,475.8

Operating
ProfitSegment
ProfitExchange rate (1 US dollar)

YoY Change

1,249.1

85%

48.7

74%

41.4

21.0

51%

135.3

152.9

113%

22.0

123%

13.7

18.1

132%

¥135.49¥144.62

¥9.13

4.4%

3.9%
65.5

2.8%

1.7%

Net Sales
Solution
Business

03/24 Term
Result

13.2%

14.4%
17.9

10.1%

11.8%

*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.
-6-[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)▲15％

By Business Category of Device Business

1,476
1,249
Strategic Device

488
352

Core Device

478

Volume Business

510

462

03/23 Term

03/24 Term

435

【Year-to-Year Comparison of Fluctuations】■ Volume Business (down 9% YoY)
● Decrease for mobile devices and social infrastructure■ Core Device (down 9% YoY)
● Overall decline due to the impact of inventory adjustments■ Strategic Device (down 28% YoY)
● Decrease in overseas merchandise such as wirelessmerchandise/analog semiconductors-7-[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)▲15％

By Supplier of Device Business

1,476
Other

198

1,249
143

Overseas
Manufacturers

660ElectromechanicalParts Manufacturers

618

577

03/23 Term

03/24 Term

529

【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (down 7% YoY)
● Decrease for mobile devices■ Overseas Manufacturers (down 20% YoY)
● Decrease for wireless merchandise/analog semiconductors,
etc.
■ Other (down 28% YoY)
●Decrease for social infrastructure-8-[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)
＋13％

152.9
135.3
Video Systems

By Sector of Solution Business

20.3【Year-to-Year Comparison of Fluctuations】

16.2■ NW systems (up 28% YoY)
31.5

AP systems○ Increase in IT infrastructure investment by customers

28.3■ Firefighting and Disaster Preparedness (down 26% YoY)
●Slowdown from postponement of bid projects

25.9

Platform■Platform (up 4% YoY)

24.9

○ Increase in server-related sales

12.8

Firefighting and disaster
preparedness■ AP systems (up 11% YoY)

17.3

○ Increase in software development projects■ Video Systems (up 25% YoY)

62.4

NW systems○ Increase in streaming projects

48.6

03/23 Term

Note:
Some classification methods are changed as of the business results ofthe fiscal year ended March 31, 2024. These changes are maderetroactively in the figures for the fiscal year ended March 31, 2023.

03/24 Term

-9-

[SANSHIN CONFIDENTIAL]

Year Ended March 2024
Consolidated Financial Situation(Unit: ¥100 million)■ Total assets for the fiscal year ended March 31, 2024 were ¥78.9 bn. This figure was little changed YoY as notes and accounts receivable–tradeand inventories decreased, while consumption taxes refund receivable increased (not yet liquidated).
■ Streamlining of assets led to reduction of interest-bearing liabilities to ¥24 bn (down ¥2.9 bn from the end of the previous fiscal year) and
improvement of the debt-to-equity ratio to 0.62 (down 0.16 from the end of the previous fiscal year).
■ Increase in net assets was prompted by accumulation of earnings and the impact of the lower yen on exchange-rate adjustments. Equity ratio was
48.5％ (up 5.0% from the end of the previous fiscal year).
■ Operating cash flows were ¥5.7 bn (up ¥6.5 from the end of the previous fiscal year) amid decreases in notes and accounts receivable–trade andinventories (down ¥9.5 bn from the end of the previous fiscal year). The funds were used to pay down debt.
1) Balance Sheets
2) Cash FlowsFY EndedMar. 22
Result (A)FY EndedMar. 23
Result (B)

B-A
Increase/
Decrease

FY EndedMar. 24
Result (C)C-B
Increase/
Decrease

93.1

88.9

-4.1

87.9

-1.0

358.7

372.7

14.0

344.8

-27.8

Inventories

197.3

250.0

52.7

229.3

-20.7

Other assets

79.0

74.4

-4.6

126.8

52.4

Total assets

728.1

786.0

57.9

788.8

2.8

Operating C/F

144.6

138.6

-6.0

133.5

-5.1

Investing C/F

244.3

268.3

24.0

239.6

-28.7

Financing C/F

Other liabilities

32.4

36.6

4.2

32.0

-4.6

Total net assets

306.8

342.5

35.7

383.7

41.2

728.1

786.0

57.9

788.8

2.8

42.1%

43.5%

1.4%

48.5%

5.0%

Cash and deposits
Accounts receivable

Notes and accounts
payable–trade
Interest bearing
liabilities

Total liabilities
and net assets
Equity ratio

FY Ended
FY Ended
FY EndedMar. 22 Result Mar. 23 Result Mar. 24 Result- 10 -

Decrease (increase)in accounts
receivable-trade
Decrease (increase)in inventories
Increase (decrease)in accounts payabletrade
Other

Foreign currency
conversion adjustments
Increase (decrease) incash and deposits
Balance of cash anddeposits at term-end

-0.1

7.9

59.6

-45.6

-44.7

35.2

2.3

-17.0

-19.8

65.3

46.0

-17.6

21.9

-7.8

57.4

-1.5

-0.5

-3.6

-185.9

2.6

-58.8

3.1

1.5

4.1

-162.4

-4.1

-1.0

93.1

88.9

87.9
[SANSHIN CONFIDENTIAL]

Year Ended March 2024
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, 2024
An annual dividend of ¥105 per share (midterm dividend of ¥35, term-end dividend of ¥70); consolidated dividend
payout ratio of 47.3%

AnnualDividend
Per Share

Ordinary
Dividend
Commemorativ
e Dividend

Total

Payout Ratio

03/20 Result

03/21 Result

03/22 Result

03/23 Result

¥70

¥40

¥80

¥135

¥105

-¥30

－

－

¥20

－

－

－

¥70

¥40

¥100

¥135

¥105

-¥30

93.2%

46.9%

48.8%

43.5%

47.3%

+3.8P

- 11 -

03/24 Result YoY Change[SANSHIN CONFIDENTIAL]

Ⅱ. Review 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]

Trend in Business Results for the V73 Medium-Term Management Plan
11.8%

V73 quantitative target

6.8%

7.6%

ROE
6% or more

3.9%

3.4%

1.7%

1.5%

3.4%

2.9%

2.8%

ROS
1,611
1,231

1,236

1,128

1,402
38.3

35.6

Net sales(Unit: ¥100 million)

55.1

39.1
27.4

25.3
18.8

18.6
14.5
03/20 Term

Net profit¥1.8 bn or more

16.5
03/21 Term

Ordinary profit¥2.5 bn or more

03/22 Term

03/23 Term

- 14 -

03/24 Term

[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan:
Evaluation of Results in Terms of Qualitative Targets
Measures of MediumTerm Management Plan

Expand existing
businesses andimprove
profitability
Device Business
Establish new
profit structure(reform portfolio)

Contents of Measures

Targeted Effect and Review(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
Review ◎・Average rate of increase in net sales to overseas
manufacturers during V73 was a solid 34%.
・Launch of a new sales support system wascompleted.
Segment profit rate during V73 averaged justover 2％
Targeted Effect・ Acquire customers in new markets (including
non-electronics)
・ Acquire highly-profitable businesses
・ Improve segment profit to net sales
Review ○・Reservoir solution business for local
governments was established.
(During V73 the Group entered the business
and won contracts in four prefectures.)・Contracts were concluded with consultants andcooperation began with a view to improving
profitability in the robotics field.

(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]

15

V73 Medium-Term Management Plan:
Evaluation of Results in Terms of Qualitative Targets
Measures of MediumTerm Management Plan

Grow businessbased on service
provision

Solution Business

Expand digitaltechnology

ExpandcustomerplatformContents of Measures

Targeted Effect and Review(1) Establish a service provision model utilizing mega cloud
Targeted Effect(AWS, MS Azure, etc.) infrastructure
Secure and expand stable stock earnings(2) Expand Sanshin Data Center business
Review △(hosting + operation maintenance, cloud connection service)
Expanding order acceptance through proposals to(3) Expand general-purpose cloud services
provide SaaS optimized for customer(enhance services such as cloud backup and cloud security)environments and by partnering with vendors(4) Expand subscription business by improving service menu
Striving for stable earnings by supporting
utilization rates at Sanshin Data Center, etc.
(1) Respond to evolving security technology
Targeted Effect・ Implement proposal of security model based on Zero
Increase sales in the solution business
Trust concept
Review ◎・ Strengthen response to SASE technology
Expanding proposal activities utilizing advanced(2) Acquire new infrastructure technology
technologies (SASE, 5G)(SD-WAN, WiFi6, 5G, private LTE, etc.)
Beset by semiconductor supply problems, in V73
average net sales growth was held to just 3.5%.
(1) Discover new merchandise in collaboration with external
Targeted Effectconsultants, expand free promotional merchandise
Expand business domains and identify new(2) Acquire new customers through collaboration withrevenue sources
partners
Review 〇(3) Promote cross-sales through cooperation inside of
Aiming to contribute to earnings from the next
divisions(4) Develop new markets for existing products such as mobile
fiscal year onwards by expanding contracts withrelay equipment
new suppliers and starting initiatives for SDGs
(5) Incorporate DX demand- 16 -[SANSHIN CONFIDENTIAL]

16

V73 Medium-Term Management Plan:
Evaluation of Results in Terms of Qualitative Targets
Measures of MediumTerm Management Plan

Improving capitalefficiency

Contents of Measures

Targeted Effect and Review(1) Optimize the scale of equity capital・ Based on future demand for funds, in June 2021, we
executed a treasury stock tender offer for 7 million shares(equivalent to 28.83% of outstanding shares at that time;value of ¥15.7 bn)
・ Continue dividends targeting a consolidated payout ratioof 50%

Targeted Effect
Maintain ROE above the cost of shareholders’ equity(2) Maintain financial soundness
・ Improve transaction conditions
・ Liquidate large receivables
・ Reduce strategically held shares
Reduce 9 types of stocks during V73(including one type of stock transferred to pureinvestment shares)

Review ◎・Rightsizing of owned capital was completed.
・Equity ratio was 48.5% as of March 31, 2024, withfinancial condition maintaining a sound trend.
・Business results were boosted by strong tailwinds.
ROE averaged 8.7% during V73, never falling
below 6% in any year.
Going forward, the Company will take steps toachieve ROE at a stable level above shareholder
capital cost (considered to be 8%).

(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:
Evaluation of Results in Terms of Qualitative Targets
Measures of MediumTerm Management Plan

Contents of Measures

Targeted Effect and Review(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,
mid-career hires: continue to maintain 30% or
higher)・ Hire diverse and talented human resources
・ Enhance support for skill development andcareer advancement
Strengthening
・ Ensure fair evaluation/treatment and create a
corporate governancecomfortable 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
(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 -

Targeted Effect・ Establish a management base for sustainable growth・ Strengthen responsibility of explanation toward stakeholders
Review 〇<Enhanced human capital and maximized its value>・ The Company expects to clear its targets for foreign nationals
and mid-career hires as a proportion of its management class.
・ Expanding the presence of women in the management classremains an issue.
<Initiatives for the issue of climate change>
・ Strengthened efforts to serve market needs for carbon
neutrality⇒Expanded sales for vehicle-mounted products andpromoted business based on service provision (cloud)・ Performed disclosure in accordance with TCFD and set
targets for reduction of GHG emissions<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 topromote the active participation of women (from June 2023)[SANSHIN CONFIDENTIAL]

III. Full-Year Business Forecast for theYear Ending March 31, 2025

- 19 -[SANSHIN CONFIDENTIAL]

Year Ending March 2025
Full-Year Business Forecast(Unit: ¥100 million)■ Although net sales are expected to grow in comparison with the previous fiscal year, earnings are expected to decline due to factors
such as an increase in selling, general and administrative expenses.
03/21 Result 03/22 Result 03/23 Result 03/24 Result

Net Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit Attributable to
Shareholders of Parent
Company

ROE
Exchange Rate
(1 US dollar)

03/25
Forecast

1,127.9
1,235.8
1,611.1
1,402.0
1,500.0
9.8%
10.9%
10.5%
11.1%
10.1%
110.5
135.3
168.8
155.5
150.9
7.9%
7.5%
6.2%
7.0%
7.2%
88.8
93.2
100.3
98.0
107.9
1.9%
3.4%
4.3%
4.1%
2.9%
21.7
42.1
68.5
57.5
43.0
1.7%
2.9%
3.4%
2.8%
2.4%
18.8
35.6
55.1
39.1
36.0
1.5%
2.0%
2.4%
2.0%
1.7%
16.5
25.3
38.3
27.4
26.0

YoY Change

107%
97%
110%
75%
92%
95%

3.9%

6.8%

11.8%

7.6%

6.9%

-0.7p

¥106.06¥112.38¥135.49¥144.62¥140.00¥-4.62*Figures in the YoY Change section for ROE and exchange rate represent increases or decreases.
- 20 -[SANSHIN CONFIDENTIAL]

Year Ending March 2025
Year-to-Year Comparison of Consolidated Ordinary Profit○ Increase in gross profit
Approx. ¥0.79 bn*

Ordinary
Profit¥3.91 bn

03/24 Term Result● Increase in SG&A expenses
Approx. ¥1.10 bn
Mainly increases in personnel expenses,
outsourcing expenses, logistics
expenses, etc.

Decrease of approx. ¥0.31 bn*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¥3.60 bn

03/25 Term Forecast[SANSHIN CONFIDENTIAL]

Year Ending March 2025
Full-Year Business Forecast by Segment(Unit: ¥100 million)■ Net sales are expected to increase in both segments YoY, propelled by progress in inventory adjustments in the device businessand continuing firm demand for DX promotion in the solution business.
■ Earnings are expected to decline in both businesses, amid factors such as increases in selling, general and administrative expenses.
03/21
ResultNet Sales
DeviceBusiness

Operating
Profit1.6%

Segment
Profit0.2%

Net Sales
Solution
Business

989.9

03/23
Result03/24
Result1,105.2

1,475.8

1,249.1

3.6%

4.4%

15.7

3.9%

40.1
2.0%

1,335.0

YoY
Change
107%

2.8%

65.5
2.8%

03/25
Forecast

48.7
1.7%

37.0

76%

1.4%

1.7

21.9

41.4

21.0

19.0

90%

138.0

130.6

135.3

152.9

165.0

108%

Operating
Profit15.2%

Segment
Profit12.4%

Exchange rate (1 USdollar)

03/22
Result

14.0%
21.0

13.2%
18.3

10.5%

14.4%
17.9

10.1%

13.2%
22.0

11.8%

21.7

99%

10.3%

17.1

13.7

13.7

18.1

17.0

94%

¥106.06¥112.38¥135.49¥144.62¥140.00¥-4.62*The figure in the YoY Change section for exchange rate represents an increase or decreasein amount.
- 22 -[SANSHIN CONFIDENTIAL]

Year Ending March 2025
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
+7％

1,476

By Business Category of Device Business
1,335

1,249
1,105

488
402

352

990
244
Strategic
Business

155
478Core Business

VolumeBusiness431

404

03/21 Term

390

435

522

411

471

510

462

03/22 Term

03/23 Term

03/24 Term

【Year-to-Year Comparison of Fluctuations】■ Volume Business (down 11% YoY)
● Decrease for mobile devices○ Increase for social infrastructure■ Core Device (up 20% YoY)
○ An overall recovering trend is expected amid
progress in inventory adjustment.
■ Strategic Device (up 14% YoY)
○ Increase in overseas merchandise such as
modular products

03/25 Term Forecast- 23 -[SANSHIN CONFIDENTIAL]

Year Ending March 2025
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
By Supplier of Device Business

+7％

1,476

1,335

198

1,249
1,105
990

275

143

207
660

Other
281

529

517

356

Overseas
Manufacturers

219Electromechanical
Parts
Manufacturers

490

03/21 Term

542

03/22 Term

618

577

543

03/23 Term

03/24 Term

03/25 Term Forecast- 24 -【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (down 6% YoY)
● Decrease for mobile devices■ Overseas Manufacturers (down 2% YoY)
● Decrease in wireless merchandise/analog
semiconductors■ Other (up 92% YoY)
○ Increase in vehicle-mounted products and social
infrastructure.

[SANSHIN CONFIDENTIAL]

Year Ending March 2025
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
+8％

165.0
152.9
138.0
Video Systems

16.2

130.6

135.3

27.3
26.2

Platform

20.3
34

16.2
17.9

AP systems

17

31.5
28.3

28.8
25.9

26.2
23.2

24.9

22

12.8

Firefighting anddisaster
preparedness
NW systems

19.4

16.8

17.3

48.9

46.5

48.6

03/21 Term

03/22 Term

03/23 Term

62.4

63.2

03/24 Term

03/25 Term Forecast- 25 -

By Sector of Solution Business【Year-to-Year Comparison of Fluctuations】■ NW systems (up 1% YoY)
○ Increase in investment in IT infrastructureby private corporations■ Firefighting and Disaster Preparedness(up 72% YoY)
○ Increase in projects for updating disasterprevention radio■ Platform (up 11% YoY)
○ Server-related results are expected to be on a
firm trend.
■ AP systems (up 8% YoY)
○ Software development projects are expected
to maintain a solid footing.
■ Video Systems (down 16% YoY)
▲ Decrease in demand for streaming[SANSHIN CONFIDENTIAL]

Year Ending March 2025
Forecast of Consolidated Financial Situation (Unit: ¥100 million)■ Total assets for the fiscal year ended March 31, 2025 are forecasted to reach ¥87.4 billion (up ¥8.5 bn from the end of the previous fiscal year), due toincrease in notes and accounts receivable–trade from increase in sales.
■ As a result of the increase in notes and accounts receivable–trade, interest-bearing liabilities is forecasted to reach ¥33.1 bn (up ¥9.2 bn from theend of the previous fiscal year) for a debt-to-equity ratio of 0.87.
■ Equity ratio is forecasted to reach 43.7% (down 4.8% from the end of the previous fiscal year) about the same level as at the end of the fiscal year
ended March 31, 2023, securing financial soundness and capital efficiency.
■ Increase in notes and accounts receivable–trade (up ¥9.5 bn from the end of the previous fiscal year) is forecasted to decrease operating cash flows by¥7.2 bn and increase financing cash flows by ¥7.8 bn (before debt securitization).
1) Balance Sheets
2) Cash FlowsFY Ended Mar. FY Ended Mar. FY Ended Mar.
23 Result
24 Result
25 Result

FY EndedMar. 23
Result (A)FY EndedMar. 24
Result (B)

B-A
Increase/
Decrease

FY EndedMar. 25
Result (C)C-B
Increase/
Decrease

Cash and deposits

88.9

87.9

-1.0

77.0

-11.0

Accounts receivable

372.7

344.8

-27.8

439.2

94.4

Inventories

250.0

229.3

-20.7

207.8

-21.5

Other assets

74.4

126.8

52.4

150.1

23.3

Total assets

786.0

788.8

2.8

874.1

85.2

Operating C/F

138.6

133.5

-5.1

128.3

-5.2

Investing C/F

268.3

239.6

-28.7

331.4

91.8

36.6

32.0

-4.6

32.0

0.0

342.5

383.7

41.2

382.4

-1.4

Notes and accounts
payable–trade
Interest bearing
liabilities
Other liabilities
Total net assets
Total liabilities
and net assets
Equity ratio

786.0
43.5%

788.8
48.5%

2.8
5.0%

874.1
43.7%

Decrease (increase) in
accounts receivabletrade
Decrease (increase) ininventories
Increase (decrease) in
accounts payable-trade
Other

Financing C/F
Foreign currency
conversion adjustments

85.2

Increase (decrease) in cash
and deposits-4.8%

Balance of cash and deposits
at term-end- 26 -

7.9

59.7

-94.4

-44.7

35.2

21.5

-17.0

-19.8

-5.2

46.0

-17.7

6.5

-7.8

57.4

-71.6

-0.5

-3.6

-17.8

2.6

-58.8

78.4

1.5

4.1

-4.1

-1.0

-11.0

88.9

87.9

77.0
[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 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.
● Dividend Forecast for the Year Ending March 31, 2025
An annual dividend of ¥105 per share (midterm dividend of ¥30, term-end dividend of ¥75); consolidated dividend payout ratio of
49.9%
03/21 Result 03/22 Result

AnnualDividend
Per Share

Ordinary
Dividend
Commemorativ
e Dividend

Total

Payout Ratio

03/23 Result

03/24 Result

03/25
Forecast

YoY Change

¥40

¥80

¥135

¥105

¥105

0

－

¥20

－

－

－

－

¥40

¥100

¥135

¥105

¥105

0

46.9%

48.8%

43.5%

47.3%

49.9%

+2.6P

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

- 27 -[SANSHIN CONFIDENTIAL]

Change in Return to Shareholders
03/20 Term
Result03/21 Term
Result03/22 Term
Result03/23 Term
Result03/24 Term
Result03/25 Term
Forecast(1) Consolidated net profit¥1,451 million¥1,646 million¥2,525 million¥3,833 million¥2,740 million¥2,600 million(2) Comprehensive profit¥666 million¥2,393 million¥4,204 million¥4,788 million¥5,831 million

-

57.0%

51.0%

42.1%

43.5%

48.5％

43.7％

¥1,352 million(¥70)¥773 million(¥40)¥1,232 million(¥100)¥1,666 million(¥135)¥1,297 million（¥105）¥1,297 million（¥105）

93.2%

46.9%

48.8％

43.5%

47.3％

49.9％

-

-

¥15.74 billion(7 million shares)--

Suspense

93.2%

46.9%

672.3％

43.5%

47.3％

Suspense(8) Cancellation of treasury stock--

8,000 thousand
shares--

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

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)16,281 thousand
shares(12,203 thousand
shares)

Suspense(10) Net profit per share¥75.66¥85.82¥171.12¥314.43¥224.66¥213.06(11) Net assets per share¥2,188.84¥2,249.40¥2,514.04¥2,803.65¥3,138.10¥3,133.55(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 03/25 term is calculated based on the total number of shares issued (excluding treasury stock) as of March 31, 2024.

- 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]

Note on Handling of These Materials
Forecasts of business results and other forward-looking statements included in these materials are
predictions based on the information available at time of publication and shall not be interpreted
as constituting any promise or guarantee of achievement whatsoever. Actual business results may
differ significantly from forecasts due to a wide range of factors. The main important factors that
can impact actual business results are as follows.
Economic conditions and consumer trends in Japan, North America, Asia ex-Japan,etc.
Production trends, product development, etc. at purchasersSupply conditions and product development, etc. at suppliersPrice declines due to intensification of competition
Major fluctuations in exchange rates, etc.

三信電気株式会社
30