(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.)

February 3, 2023

Summary of Financial Results for the First Three Quarters of the Fiscal YearEnding March 31, 2023
(Nine Months Ended December 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:
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:
February 7, 2023
Scheduled date of dividend payment:―
Supplementary materials for the quarterly financial results: None
Investor conference for the quarterly financial results:
None(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Three Quarters of March 2023 Term(April 1, 2022 – December 31, 2022)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

3Q March 2023 Term
3Q March 2022 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

126,082
41.3
5,487
133.2
89,222
5.3
2,352
121.0
3Q March 2023 Term: 3,948 million yen (86.5%);
Net profit per share

3Q March 2023 Term
3Q March 2022 Term

Million yen%

Million yen

%

4,028
107.7
2,994
113.8
1,939
119.1
1,400
115.4
3Q March 2022 Term: 2,117 million yen (383.0%)

Diluted net profit per share
Yen

Yen

245.6889.83－－(2) Consolidated financial position
Total assets

Net assets

Million yen

3Q March 2023 Term
March 2022 Term
(Reference) Shareholders’ equity

92,89472,8093Q March 2023 Term: 33,346 million yen;

Million yen

Equity ratio%

33,41335.9
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

100.00105.00135.00March 2022 Term
March 2023 Term
March 2023 Term (forecast)(Notes) 1. Revision of most recent forecast on dividends:

None

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:

None* 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):
3Q March 2023 Term:

16,281,373 shares

March 2022 Term:

16,281,373 shares

March 2022 Term:

4,097,789 shares

3Q March 2022 Term:

15,594,690 shares2) Amount of treasury stock at the end of term:
3Q March 2023 Term:

4,088,932 shares3) Amount of average stock during the term (quarterly total):
3Q March 2023 Term:

12,187,870 shares(Note) The amount of treasury stock at the end of the term includes Company stock (3Q 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 (3Q March 2023
term: 128,447 shares, 3Q 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 forthe business 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...................................................................... 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 4(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........ 6(3) Notes on Quarterly Consolidated Financial Statements ............................................................................... 8(Notes Regarding Going Concern) .................................................................................................................... 8(Notes Regarding Remarkable Change of Shareholders’ Equity) ...................................................................... 8(Segment Information and Other) ...................................................................................................................... 8(Significant Subsequent Events) ........................................................................................................................ 9

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
During the consolidated first three quarters under review, while the global economy saw progress mainly inEurope and the United States under the premise of coexisting with COVID-19, with the global price hikes andhigh resource prices due to Russia's invasion of Ukraine, changes in monetary policy in each country,
accompanying sudden fluctuations in exchange rates, etc., the economic outlook remained uncertain.
In the electronics industry, which is the primary area of business of the Sanshin Electronics Group, theimbalance in supply and demand for semiconductors and electronic components which had worsened, started toease with the exception of certain fields such as automobiles, and calmness gradually returning to the market. In
the domestic ICT industry, in the context of a growing need for DX (Digital Transformation) promotion, cloudcomputing and subscription models have become popular.
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 three quarters under review was as follows. Net
sales were ¥126,082 million (up 41.3% year-on-year), operating profit was ¥5,487 million (up 133.2% year-onyear), and ordinary profit was ¥4,028 million (up 107.7% year-on-year). Net profit attributable to shareholdersof parent company was ¥2,994 million (up 113.8% 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. During the consolidated first three quarters under review, due to the weaker yen, operating profit increased
because the offsetting expenses greatly exceeded the corresponding revenues. However, the same amount has
been adjusted as a foreign exchange loss in non-operating expenses. Hence, there is no impact on the 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 three quarters 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 exchange rate remaining on a weaker yen trend compared with thesame period of the previous year also served as a tailwind. Net sales were ¥118,220 million (up 45.3% year-onyear). Segment profit was ¥3,716 million (up 141.9% 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 three quarters under review, sales in the public sector declined due to reaction toaccounting for large-scale fire and disaster prevention project in the same period of the previous year. Other2

fields were also affected due to difficulty in supplying products caused by tight supply and demand forsemiconductors, etc. Overall, the growth was sluggish. Net sales were ¥7,861 million (down 0.02% year-onyear). Furthermore, segment profit was ¥311 million (down 22.6% year-on-year) due to an increase in selling,
general and administrative expenses.
(2) Explanation of Financial Position(Assets)
As of December 31, 2022, assets increased ¥20,085 million compared with March 31, 2022, to ¥92,894 million.
This was mainly attributable to a ¥9,731 million increase in notes and accounts receivable–trade, a ¥7,046million
increase in merchandise inventories, and a ¥4,523 million increase in consumption taxes refund receivable.
(Liabilities)
As of December 31, 2022, liabilities increased ¥17,356 million compared with March 31, 2022, to ¥59,481
million. This was mainly attributable to a ¥17,986 million increase in short-term loans payable.
(Net Assets)
As of December 31, 2022, net assets increased ¥2,729 million compared with March 31, 2022, to ¥33,413
million. This was mainly attributable to a ¥1,762 million increase in retained earnings and a ¥605 million increasein foreign currency translation adjustment.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
Consolidated business performance and year-end dividends for March 2023 term remain unchanged from thefollowing forecast figures announced on November 7, 2022.
(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 26.4% 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)3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2022 Term
(As of Mar. 31, 2022)

3Q March 2023 Term
(As of Dec. 31, 2022)

Cash and deposits

9,307

8,423

Notes and accounts receivable–trade, and contract assets

34,90842,552957

3,044

19,732

26,778AssetsCurrent assets

Electronically recorded monetary claims
Merchandise inventories

0166

Others

1,583

5,869

Allowance for doubtful accounts

(29)

(38)

66,45986,796

2,652

2,591

461

387

3,282

3,169

Partly-finished work

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

(47)

(50)

Total investments and other assets

3,235

3,119

6,349

6,097

72,80992,894

Notes and accounts payable–trade

14,455

13,778

Short-term loans payable

24,42642,412

Accrued corporate tax, etc.

602

564

Allowance

653

329

Total non-current assets
Total assets
Liabilities
Current liabilities

Others

1,492

1,775

Total current liabilities

41,63058,861

Net defined benefit liabilities

158

131

Others335

488

Total non-current liabilities

494

620

42,12559,481

Non-current liabilities

Total liabilities

4

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

3Q March 2023 Term
(As of Dec. 31, 2022)

Capital stock

14,811

14,811Retained earnings

22,654

24,417

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

28,692

30,467567

560

Net assets
Shareholders’ equity

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

(117)

243

Foreign currency translation adjustment

1,512

2,117

Remeasurements of defined benefit plans

(23)

(41)

Total accumulated other comprehensive income

1,937

2,878

53

66

30,68333,41372,80992,894Non-controlling interests
Total net assets
Total liabilities and net assets5(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Quarterly Consolidated Profit and Loss Statement of the First Three Quarters)

3Q March 2022 Term
(Apr. 1, 2021 – Dec. 31, 2021)
89,222

Net sales(Million yen)
3Q March 2023 Term
(Apr. 1, 2022 – Dec. 31, 2022)
126,082

Cost of sales

80,143

113,103

Gross profit on sales

9,079

12,978Selling, general and administrative expenses

6,727

7,491

Operating profit

2,352

5,487

Interest income

14

20

Dividend income

38

37

Others90

62

Total non-operating profit

142

119

Interest expenses

81

488

Sales discounts

1119Commission for purchase of treasury stock

21-

Foreign exchange losses

398

1,044

Others42

25

Total non-operating expenses

555

1,578

1,939

4,028

Gain on sales of non-current assets-

0Gain on sales of investment securities

031

Total extraordinary profits

0

31

0

0

Loss on sales of investment securities-

1

Total extraordinary losses

01

Net profit before tax and other adjustments

1,939

4,058

Corporate, resident and enterprise taxes

370

935

Adjustment for corporate tax, etc.

169

116

Total corporate taxes

540

1,051

1,399

3,006

Net profit (loss) attributable to non-controlling interests

(1)

12

Net profit attributable to shareholders of parent company

1,400

2,994

Non-operating profit

Non-operating expenses

Ordinary profit
Extraordinary profits

Extraordinary losses
Loss on retirement of non-current assets

Net profit

6

(Quarterly Consolidated Comprehensive Income Statement of the First Three Quarters)
3Q March 2022 Term
(Apr. 1, 2021 – Dec. 31, 2021)
1,399

Net profit

3Q March 2023 Term
(Apr. 1, 2022 – Dec. 31, 2022)
3,006

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

(30)

(7)

Deferred hedge gains (losses)

125

361

Foreign currency translation adjustment

621

605

1

(17)

718

941

2,117

3,948

2,118

3,935

(1)

12

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-controllinginterests7

(3) 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. Nine months ended December 31, 2021 (Apr. 1, 2021 – Dec. 31, 2021)
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

81,359－81,359
1,536

7,863
－
7,863
402

Total
89,222－
89,222
1,939(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Nine months ended December 31, 2022 (Apr. 1, 2022 – Dec. 31, 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

118,220－
118,220
3,716

7,861
－
7,861
311

Total
126,082－
126,082
4,028(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

8

(Significant Subsequent Events)
Additional Trust for Stock Compensation PlanAt the Board of Directors meeting held on February 3, 2023, regarding the stock compensation plan introduced on
August 21, 2017 for the Company's Directors (however, External Directors are excluded. The same shall apply hereinafter),the Company has resolved to additionally entrust money for the trustee to acquire additional shares of the Company.
1. Regarding the “Board Benefit Trust” Introduced by the Company(1) Name

Board Benefit Trust(2) Entruster

The Company(3) Trustee

Sumitomo Mitsui Trust Bank, Limited(Re-trust trustee: Custody Bank of Japan, Ltd.)(4) Beneficiaries

Directors of the Company who fulfill the requirements for eligible
beneficiaries(5) Trust administrator

Aoyama Sogo Accounting Firm Co., Ltd.

(6) Type of trust

Money held in trust other than money trust (third party benefit trusts)(7) Trust contract dateAugust 21, 2017(8) Date of additional entrustment ofmoney

February 21, 2023

(9) Trust termination date

End of August 2027

2. Details of Additional Acquisition of Shares of the Company in Trust(1) Type of shares to be acquired

Common shares(2) Total acquisition cost of shares

99,781,000 yen(3) Number of shares to be acquired

38,600(4) Share acquisition method

Acquisition by disposing of treasury stock (third-party allotment)(5) Share acquisition dateFebruary 21, 2023

Disposal of Treasury Stock by Means of Third-Party Allotment as Stock Compensation
At the Board of Directors meeting held on February 3, 2023, the Company has resolved to dispose of treasury stock(hereinafter referred to as the "Disposal of Treasury Stock") as stock compensation.
1. Overview of Disposal(1) Date of disposal

February 21, 2023

(2) Type of and number of shares to bedisposed of

38,600 common shares of the Company(3) Disposal price

2,585 yen per share(4) Total amount of disposal

99,781,000 yen(5) Planned destination for disposal

Sumitomo Mitsui Trust Bank, Limited (trust account)(Re-trust trustee: Custody Bank of Japan, Ltd. (trust account))(6) Other

Regarding the Disposal of Treasury Stock, we have submitted a securities
notification in accordance with the Financial Instruments and ExchangeAct.

92. Purpose and Reason for the Disposal
At the Board of Directors meeting held on May 15, 2017, the Company resolved to introduce a new stock compensation
plan (hereinafter referred to as the "Plan") using a trust, for the purpose of further clarifying the link between thecompensation to the Company’s Directors (External Directors are excluded. The same shall apply hereinafter) and thevalue of its shares. With the introduction of the 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 offluctuations in share prices. This move is intended ultimately to incentivize Directors to increase medium-to-long-termbusiness results and increase enterprise value. The Plan was approved at the 66th Ordinary General Meeting of
Shareholders held on June 23, 2017. The Board of Directors, at a meeting held on June 15, 2022 passed a resolution tocontinue the Plan, and the Plan continues to this day.
The Disposal of Treasury Stock shall be made to Sumitomo Mitsui Trust Bank, Limited (trust account) (re-trust trustee:
Custody Bank of Japan, Ltd. (trust account)) which is the trustee of the trust (hereinafter referred to as the “Trust”) thathas already been established for the Plan.
The number of shares to be disposed of will be equivalent to the number of shares expected to be issued to the Directors,
based on the Sanshin share delivery rules established by the Company upon the introduction of the Plan, and after taking
into consideration the positions and changes in composition of the Company's Directors during the trust period. The degreeof dilution is 0.24% for the total number of issued shares of 16,281,373 shares as of September 30, 2022 (0.31% for the
total number of voting rights of 123,007 as of September 30, 2022. All numbers are rounded to the third decimal place).
The Company believes that the Plan will clarify the link between the compensation to the Directors and the value of
its shares, and in the medium to long term, this will lead to an improvement in our corporate value. We also believe thatthe number of shares to be disposed of and the degree of dilution due to the Disposal of Treasury Stock are reasonable,
and the impact on the secondary market will be minor.

10