(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.)August 5, 2022

Summary of Financial Results for the First Quarter of the Fiscal YearEnding March 31, 2023
(Three Months Ended June 30, 2022)[Japan Standards] (Consolidated)
Name of Listed Company: Sanshin Electronics Co., Ltd.
Stock Exchange Listed: Prime Market, Tokyo
Code No.:
8150
URL: http://www.sanshin.co.jp
Representative: Toshiro Suzuki (Representative Director & COO)
Enquiries to:
Jun-ichi Murakami, Director, Operating Officer and Senior General
Tel.: +81-3-3453-5111
Manager of Finance & Accounting Division
Scheduled date of filing of Quarterly Report:
August 8, 2022
Scheduled date of dividend payment:－Supplementary materials for the quarterly financial results: NoneInvestor conference for the quarterly financial results:
None(Amounts are rounded down to the nearest million yen)

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

Operating profit

Net sales
Million yen

1Q March 2023 Term
1Q March 2022 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders of parentcompany%

Million yen%

Million yen

35,675
45.5
1,953
322.9
24,51412.7
461－
1Q March 2023 Term: 2,369 million yen (901.8%)
Net profit per share

1Q March 2023 Term
1Q March 2022 Term%

Million yen%

1,165
249.6
766
290.4
333－196－
1Q March 2022 Term: 236 million yen (－%)

Diluted net profit per share
YenYen62.92
10.23－－(2) Consolidated financial position
Total assets

Net assets

Million yen

1Q March 2023 Term
March 2022 Term
(Reference) Shareholders’ equity

Equity ratio

Million yen

84,24972,8091Q March 2023 Term: 32,130 million yen%

32,19138.1
30,683
42.1
March 2022 Term: 30,630 million yen

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen

Year-end
Yen

AnnualYen

March 2022 Term
－30.00－70.00100.00March 2023 Term－
March 2023 Term (forecast)
30.00－55.0085.00(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 salesFirst half
Full year

Operating profit(% figures represent year-on-year changes)
Net profit attributable toNet profit per
shareholders ofshareparent company

Ordinary profit

Million yen%

Millionyen%

Million yen%

Million yen%

Yen77,000
131,500

35.0
6.4

3,120
3,030

131.8(28.0)

2,270
2,900

97.9(18.6)

1,660
2,100

110.3
(16.8)

136.25172.36(Note) Revision of most recent forecast on earnings:

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

None

None

(3) Change of accounting principles, change of accounting estimate, and redisplay after revision:1) Change of accounting principles caused by revision of accounting standards:
2) Change of accounting principles other than 1):
3) Change of accounting estimate:4) Redisplay after revision:

None

None

None

None

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

16,281,373 shares

March 2022 Term:

16,281,373 shares

March 2022 Term:

4,097,789 shares2) Amount of treasury stock at the end of term:
1Q March 2023 Term:

4,097,810 shares3) Amount of average stock during the term (quarterly total):
1Q March 2023 Term:

12,183,569 shares

1Q March 2022 Term:

19,183,878 shares(Note) The amount of treasury stock at the end of the term includes Company stock (1Q March 2023 term: 132,800 shares,
March 2022 term: 132,800 shares) possessed in a trust related to the Performance-Based Stock Compensation Planfor 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 (1Q March 2023
term: 132,800 shares, 1Q 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) ...................................................................................................................... 81

1. Qualitative Information Concerning the Current Quarterly Settlement
The items related to the future contained in this document are decisions made based on present consolidated
financial results as of the end of this quarter.
(1) Explanation of Business Results
In the consolidated first quarter under review, when looking at the global economy, the normalization ofeconomic activities progressed mainly in Europe and the United States under the premise of coexisting with
COVID-19. However, the future remained uncertain due to factors such as the risk of economic decline due tothe worsened and prolonged situation in the Ukraine, rising energy prices, and tightening of monetary policy ineach country.
In the electronics industry, which is the primary area of business of the Sanshin Electronics Group, tight supply
and demand for items such as semiconductors and electronic components persisted, impacting the manufacturingof automobiles, electronic devices and other products that incorporate those semiconductors and components.
Also, in the domestic ICT industry, there was a shift to the cloud in systems and spread of subscription models
based on heightened needs for promoting DX (Digital Transformation).
Against this background, the Group worked to increase profitability by reforming our business structure andto expand our business in growth markets. Specifically, in the device business, we worked to expand our existing
businesses and establish a new profit structure. In the solution business, we strove to grow the business based onservice provision, expand our digital technology, and expand our customer platform.
As a result, business performance in the consolidated first quarter under review was as follows: Net sales were¥35,675 million (up 45.5% year-on-year) and operating profit was ¥1,953 million (up 322.9% year-on-year).
Ordinary profit was ¥1,165 million (up 249.6% year-on-year) due to foreign exchange losses incurred mainly inthe elimination of internal transactions with subsidiaries in conjunction with fluctuations in foreign exchange
rates. Net profit attributable to shareholders of parent company was ¥766 million (up 290.4% year-on-year).
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 (includingconnectors, 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 quarter under review, in addition to strong sales of electronic components, net salesof semiconductors manufactured overseas increased due to expansion of commercial sales rights and strong sales
for home video game consoles. As a result, net sales were ¥33,565 million (up 50.2% year-on-year). Segment
profit was ¥1,205 million (up 226.3% 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 onpremise to the cloud.
In the consolidated first quarter under review, overall sales decreased due to the impact of later delivery ofproducts caused by the tight supply and demand for semiconductors that has continued from the fiscal year ended
March 31, 2022. As a result, net were ¥2,110 million (down 2.8% year-on-year). Furthermore, segment loss was¥39 million (compared to segment loss of ¥36 million in the same period of the previous fiscal year) due to ayear-on-year increase in selling, general and administrative expenses caused by an increased number ofemployees. In the solution business, net sales tend to be concentrated in the second quarter and fourth quarter,
so we expect the segment to become profitable from the second quarter onward.

2(2) Explanation of Financial Position(Assets)
As of June 30, 2022, assets increased ¥11,440 million compared with March 31, 2022, to ¥84,249 million.
This was mainly attributable to a ¥4,961 million increase in notes and accounts receivable–trade and a ¥6,165
million increase in merchandise inventories.
(Liabilities)
As of June 30, 2022, liabilities increased ¥9,932 million compared with March 31, 2022, to ¥52,057 million.
This was mainly attributable to a ¥2,301 million increase in notes and accounts payable–trade and a ¥7,482
million increase in short-term loans payable.
(Net Assets)
As of June 30, 2022, net assets increased ¥1,507 million compared with March 31, 2022, to ¥32,191 million.
This was mainly attributable to a ¥1,649 million increase in foreign currency translation adjustment.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
In addition to overall demand for semiconductors, etc., staying at a high level, there were strong sales for home
video game consoles, and continuation of some projects which we expected to end in the fiscal year ended March31, 2022, etc. Therefore, we expect that net sales in the device business segment will exceed the initial forecast.
Based on this expectation, we revised the forecast for consolidated business performance in the first half of thefiscal year ending March 31, 2023, which was announced on May 20, 2022, to the following figures. (For details,please refer to the “Notice Regarding Revision of Business Forecast” which was released today.)In terms of the full-term business performance forecast, we have not completed our investigation on the impactof the abovementioned revisions to the plan from the third quarter onwards, and it is extremely difficult to discern
the extent to which economic activities will be affected by the future status of supply and demand forsemiconductors, the status of the COVID-19 pandemic, foreign exchange rate fluctuations, and the situation inUkraine. Therefore, we have decided not to change the figures from the forecast that was announced on May 20,
2022. Moving forward, we will review the figures in the full-term business performance forecast, and plan toannounce the results at the time of releasing the Summary of Financial Results for the First Half of the Fiscal
Year Ending March 31, 2023 (scheduled for November 7, 2022).
In regards to the forecasted figure for dividend per share, since the Company’s dividend policy (aiming for aconsolidated payout ratio of 50%) is linked to net profit attributable to shareholders of parent company, we havedecided at the current point in time not to change the figures from the forecast that was announced on May 20,
2022, and plan to announce the forecasted figure for dividend per share together with the full-term businessperformance forecast discussed above.
Forecast for Consolidated Business Performance in the First HalfNet sales¥77,000 million (up 35.0% YoY)
Operating profit¥3,120 million (up 131.8% YoY)
Ordinary profit¥2,270 million (up 97.9% YoY)
Net profit attributable to shareholders of parent company¥1,660 million (up 110.3% YoY)3

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

1Q March 2023 Term
(As of Jun. 30, 2022)

AssetsCurrent assets
Cash and deposits

9,307

8,506

Notes and accounts receivable–trade, and contract assets

34,90838,268957

2,558

19,73225,897019

Others

1,583

2,729

Allowance for doubtful accounts

(29)

(36)

66,45977,943

2,652

2,633

461

445

3,282

3,277

Electronically recorded monetary claims
Merchandise inventories
Partly-finished work

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

(47)

(51)

Total investments and other assets

3,235

3,225

6,349

6,305

72,80984,249Notes and accounts payable–trade

14,455

16,757

Short-term loans payable

24,42631,908

Accrued corporate tax, etc.

602

594

Total non-current assets
Total assets
Liabilities
Current liabilities

653

265

Others

1,492

2,050

Total current liabilities

41,63051,576

Net defined benefit liabilities

158

158

Others335

323

Total non-current liabilities

494

481

42,12552,057

Allowance

Non-current liabilities

Total liabilities

4

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

1Q March 2023 Term
(As of Jun. 30, 2022)

Net assets
Shareholders’ equity
Capital stock

14,811

14,811Retained earnings

22,65422,559Treasury stock(8,773)(8,773)

Total shareholders’ equity

28,692

28,596

567

569

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

(117)

(167)

Foreign currency translation adjustment

1,512

3,161

Remeasurements of defined benefit plans

(23)

(29)

Total accumulated other comprehensive income

1,937

3,533

5360

30,68332,19172,80984,249Non-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 Quarter)
1Q March 2022 Term
(Apr. 1, 2021 – Jun. 30, 2021)
24,514

Net sales(Million yen)
1Q March 2023 Term
(Apr. 1, 2022 – Jun. 30, 2022)
35,675

Cost of sales

21,95931,361Gross profit on sales

2,555

4,314Selling, general and administrative expenses

2,093

2,361

461

1,953

Operating profit
Non-operating profit
Interest income

45

Dividend income

1515Others

1816

Total non-operating profit

3938

2558

Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Others

43133

757

56167

826

333

1,165

Gain on sales of investment securities

00

Total extraordinary profits

00

Loss on retirement of non-current assets-0Loss on sales of investment securities-0

Total extraordinary losses-0Net profit before tax and other adjustments

333

1,165

Corporate, resident and enterprise taxes

116

340

Total non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses

Adjustment for corporate tax, etc.

2352

Total corporate taxes

140

392

Net profit

192

773

Net profit (loss) attributable to non-controlling interests(3)

6

Net profit attributable to shareholders of parent company

1967666

(Quarterly Consolidated Comprehensive Income Statement of the First Quarter)
1Q March 2022 Term
(Apr. 1, 2021 – Jun. 30, 2021)
192

1Q March 2023 Term
(Apr. 1, 2022 – Jun. 30, 2022)773

Valuation difference on available-for-sale securities

(83)

1

Deferred hedge gains (losses)

Net profit
Other comprehensive income

118(49)Foreign currency translation adjustment

7

1,649

Remeasurements of defined benefit plans, net of tax

0(5)Total other comprehensive income

43

1,596

236

2,369

240

2,362

(3)

6

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. Three months ended June 30, 2021 (Apr. 1, 2021 - Jun. 30, 2021)
Information regarding the amounts of sales, profit or loss in each report segment(Million yen)

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

Device segment

Solution segment

22,343－
22,343369

2,170－2,170(36)

Total
24,514－24,514333(Note) The segment profit (loss) is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Three months ended June 30, 2022 (Apr. 1, 2022 - Jun. 30, 2022)
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
TotalSegment profit (loss)

Device segment

Solution segment

33,565－33,565
1,205

2,110
－
2,110(39)

Total
35,675－35,675
1,165(Note) The segment profit (loss) is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

8