Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(This document has been translated from the original document in Japanese. In the event of any discrepancy between this English translationand the original document in Japanese, the original document in Japanese shall prevail.)November 5, 2021

Summary of Financial Results for the First Half of the Fiscal YearEnding March 31, 2022
(Six Months Ended September 30, 2021)[Japan Standards] (Consolidated)

Name of Listed Company:
Sanshin Electronics Co., Ltd.
Stock Exchange Listed: 1st Section, 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 filing of Quarterly Report:
November 9, 2021
Scheduled date of dividend payment:
December 1, 2021
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: Yes (for securities analysts and institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Half of March 2022 Term (April 1, 2021 – September 30, 2021)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

2Q March 2022 Term
2Q March 2021 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

57,047
5.7
1,346
140.9
53,970(18.7)
558(53.1)
2Q March 2022 Term: 954 million yen (237.5%);
Net profit per share

Million yen%

Million yen

%

1,147
139.3
789
115.0
479 (57.1)
367(57.3)
2Q March 2021 Term: 282 million yen (-21.1%)

Diluted net profit per share
Yen

Yen

2Q March 2022 Term
45.61－
2Q March 2021 Term
19.15－
(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020), etc., was applied from the
beginning of the consolidated first quarter of this fiscal year. The figures for 2Q March 2022 term are after application of the
Accounting Standard, etc.

(2) Consolidated financial position
Total assets
Million yen

Net assets
Million yen

Equity ratio%

2Q March 2022 Term
71,34827,803
38.9
March 2021 Term
84,602
43,21051.0(Reference) Shareholders’ equity 2Q March 2022 Term: 27,750 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 first quarter of this fiscal year. The figures for 2Q March 2022 term are after application of the
Accounting Standard, etc.

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

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

Annual

Yen

Yen

Yen

Yen

Yen

－
－

8.00
30.00

－

32.00

40.00

－

50.00

80.00

March 2021 Term
March 2022 Term
March 2022 Term (forecast)(Notes) 1. Revision of most recent forecast on dividends:

Yes

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

3. Forecasts for Consolidated Business Performance for March 2022 Term (April 1, 2021 – March 31, 2022)

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%

Yen

109,500

(2.9)

2,320

7.0

2,100

11.8

1,500

(8.9)

101.67(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:

Yes

None

None

None

(Note) For details, please refer to the section “2. Quarterly Consolidated Financial Statements and Main Notes - (4)Notes on Quarterly Consolidated Financial Statements (Change of Accounting Principles)” on page 12 of[Appendix].
(4) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
2Q March 2022 Term:

24,281,373 shares

March 2021 Term:

24,281,373 shares

March 2021 Term:

5,097,465 shares

2Q March 2021 Term:

19,181,121 shares2) Amount of treasury stock at the end of term:
2Q March 2022 Term:

12,097,640 shares3) Amount of average stock during the term (quarterly total):
2Q March 2022 Term:

17,309,495 shares(Note) The amount of treasury stock at the end of the term includes Company stock (2Q 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 intreasury stock to be deducted in the calculation of the amount of average stock during the term (2Q March 2022
term: 132,800 shares, 2Q March 2021 term: 135,826 shares).

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

* This summary of quarterly financial results is not subject to quarterly review by certified public accountants or auditing corporations.
* Cautionary statement regarding forward-looking statements
The projected results and forward-looking statements included in this document reflect the Company’s expectations based on
information available at the time of release, and are not intended as a guarantee that the Company will achieve these targets. The actual
performance may considerably differ from the forecast due to various factors.
See the section “1. Qualitative Information Concerning the Current Quarterly Settlement - (3) Explanation of Forecasts for Consolidated
Business Performance and Other Future Prospects” on page 3 of Appendix, regarding the relevant matters for the above forecast for thebusiness performance.

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

Contents of Appendix
1. Qualitative Information Concerning the Current Quarterly Settlement ......................................................... 2(1) Explanation of Business Results .................................................................................................................. 2(2) Explanation of Financial Position ................................................................................................................ 2(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects .................. 3
2. Quarterly Consolidated Financial Statements and Main Notes...................................................................... 5(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 5(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........ 7(3) Statement of Quarterly Cash Flows.............................................................................................................. 9(4) Notes on Quarterly Consolidated Financial Statements ............................................................................. 10(Notes Regarding Going Concern) .................................................................................................................. 10(Notes Regarding Remarkable Change of Shareholders’ Equity) .................................................................... 10(Change of Accounting Principles) .................................................................................................................. 12(Segment Information and Other) .................................................................................................................... 13(Significant Subsequent Events) ...................................................................................................................... 13

1

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

1. Qualitative Information Concerning the Current Quarterly Settlement(1) Explanation of Business Results
In the consolidated first-half period under review, when looking at the global economy, there was recovery of
economic activities with a focus on China, Europe, and the United States. In Japan, the number of people infectedwith the novel coronavirus (COVID-19) is starting to decrease. However, it is still uncertain when the global
COVID-19 pandemic will end. Furthermore, there is severe friction between China and the United States. Due
to such factors, the future remained uncertain.
In the electronics industry, which is the primary area of business of the Sanshin Electronics Group, there wastight supply and demand for semiconductors and electronic components due to a rapid increase in demand for
products such as automobiles, and to the impact of operation stoppage at product plants caused by COVID-19
mainly in Southeast Asia. Also, in the domestic ICT industry, there was strong investment related to DX (Digital
Transformation).
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 subscription-type business model, expand our latest digital technology, and increase
the number of customers.
As a result, business performance in the consolidated first half-period under review was as follows. Net sales
were ¥57,047 million (up 5.7% year-on-year). In terms of profit, operating profit was ¥1,346 million (up 140.9%
year-on-year), while ordinary profit was ¥1,147 million (up 139.3% year-on-year). Net profit attributable toshareholders of parent company was ¥789 million (up 115.0% 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, LCD driver ICs and memory) and electronic components (including connectors, capacitors andcircuit boards). These products are sold mainly to electronics manufacturers. We also provide technical support
such as software development and module development.
In the consolidated first-half period under review, although cancellation of the dealership agreement withRenesas Electronics Corporation in June 2020 caused sales of Renesas Electronics products to decrease, there
were strong overall sales starting with growth in products from overseas semiconductor manufacturers. As aresult, net sales were ¥51,851 million (up 7.9% year-on-year). In terms of profit, segment profit was ¥840 million(contrasting with segment loss of ¥65 million in the same period of the previous fiscal year).
Solution segment
In the solution business segment, we provide the optimal ICT infrastructure to each customer by combining
network devices, security products, Line-of-Business systems, clouds, and data centers. Furthermore, we provide
integrated services in all phases of design, construction, operation, and maintenance while supporting technologythat continually evolves through revolutionary technology such as AI and IoT, and through cloud native.
In the consolidated first-half period under review, overall sales decreased due to factors such as stagnatingprocurement for some products caused by tight supply and demand of semiconductors from the second half ofthe period. As a result, net sales were ¥5,196 million (down 11.9% year-on-year). In terms of profit, the improved
gross profit margin was insufficient to cover the decrease in net sales, and profit was also impacted by an increase
in selling, general and administrative expenses caused by increased personnel. As a result, segment profit was¥306 million (down 43.6% year-on-year).
(2) Explanation of Financial Position(Assets)
As of September 30, 2021, assets decreased ¥13,253 million compared with March 31, 2021, to ¥71,348
million. This was mainly attributable to a ¥16,505 million decrease in cash and deposits and a ¥2,662 million
increase in notes and accounts receivable–trade.
2

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(Liabilities)
As of September 30, 2021, liabilities increased ¥2,153 million compared with March 31, 2021, to ¥43,545
million. This was mainly attributable to a ¥1,709 million increase in short-term loans payable and a ¥622 million
increase in notes and accounts payable–trade.
(Net Assets)
As of September 30, 2021, net assets decreased ¥15,407 million compared with March 31, 2021, to ¥27,803
million. This was mainly attributable to a ¥15,743 million decrease as a result of the purchase of treasury stock.
(Cash Flows)
As of September 30, 2021, cash and cash equivalents decreased ¥16,505 million compared with March 31,
2021, to ¥9,038 million. This was due to increased expenses resulting from the purchase of treasury stock, etc.
(Operating activities)
Net cash used in operating activities during the consolidated first-half period under review totaled ¥1,628
million. This was due to expenses caused by factors such as an increase in notes and accounts receivable–
trade and an increase in inventories, which exceeded income from sources such as a decrease in consumption
taxes refund receivable. Compared to the previous consolidated first-half period, this represented an expensedecrease of ¥2,343 million.
(Investing activities)
Net cash used in investing activities during the consolidated first-half period under review totaled ¥35
million due to factors such as purchase of property and equipment and purchase of software. Compared tothe previous consolidated first-half period, this represented an expense decrease of ¥287 million.
(Financing activities)
Net cash used in financing activities during the consolidated first-half period under review totaled ¥14,823
million. This was due to expenses caused by factors such as the purchase of treasury stock, which exceeded
income as the result of factors such as an increase in short-term loans payable. Since the figure for the previous
consolidated first-half period was an income of ¥3,862 million, this represented an expense rise of ¥18,685
million.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
From the third quarter onward, in the device business segment, there is concern that delivery to customers will
be delayed due to demand for semiconductors and electronic components outpacing supply. This problem oftight supply and demand also exists in the solution business segment, and there is concern that delivery tocustomers will be delayed for some products such as computers and servers. However, although there is strong
uncertainty for the future, business performance in the consolidated first-half period under review was strong
and surpassed the figures which had been revised upward on August 5, 2021. Therefore, we decided to revise
upward the initial forecast for business performance in the fiscal year ending March 31, 2022 as follows.
In regards to the forecasted figure for dividend per share, the Company acquired treasury stock of 7,000,000
shares through a tender offer conducted from June 22, 2021 to July 19, 2021. This acquisition caused the numberof shares eligible for dividends to decrease below the assumption for the initial dividend forecast. Furthermore,
the Company revised upward the forecasted figure for net profit attributable to shareholders of parent company
in the fiscal year ending March 31, 2022. For these reasons, as shown below, the Company decided to revise theyear-end dividend forecast to ¥50 per share, an increase of ¥30 from the initial figure of ¥20.
For details, please refer to the “Notice Regarding Revision of Business Forecast and Dividend Forecast”
announced today.

3Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(Forecasts for Consolidated Business Performance for March 2022 Term)
Net sales¥109,500 million (down 2.9% year-on-year)
Operating profit¥2,320 million(up 7.0% year-on-year)
Ordinary profit¥2,100 million(up 11.8% year-on-year)
Net profit attributable to shareholders of parent company ¥1,500 million(down 8.9% year-on-year)
Year-end dividend¥50 per share(annual dividend ¥80 per
share including the interim
dividend)

4

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

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

2Q March 2022 Term
(As of Sept. 30, 2021)

Cash and deposits

25,544

9,038

Notes and accounts receivable–trade32,696--35,092841

1,107

14,333

16,402

9

43

4,520

3,265

AssetsCurrent assets

Notes and accounts receivable–trade, and contract assets
Electronically recorded monetary claims
Merchandise inventories
Partly-finished work
Others(9)(23)

77,93464,926

2,701

2,652

482

520

Others

3,520

3,284

Allowance for doubtful accounts

(35)

(34)

Total investments and other assets

3,484

3,249

6,668

6,422

84,602

71,348Notes and accounts payable–trade

13,104

13,726

Short-term loans payable

25,351

27,060Accrued corporate tax, etc.

288

266

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

Total non-current assets
Total assets
Liabilities
Current liabilities

501

480

Others

1,730

1,640

Total current liabilities

40,97543,174

Net defined benefit liabilities

100

74

Others316

296

Total non-current liabilities

416

371

41,392

43,545

Allowance

Non-current liabilities

Total liabilities

5Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

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

2Q March 2022 Term
(As of Sept. 30, 2021)

Capital stock

14,811

14,811

Capital surplus

5,329

5,329

Net assets
Shareholders’ equity

Retained earnings

33,10633,277

Treasury stock(10,348)(26,091)

Total shareholders’ equity

42,89927,327

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

583

526

Deferred hedge gains (losses)

(133)

(38)

Foreign currency translation adjustment

(244)

(112)

Remeasurements of defined benefit plans

47

48

Total accumulated other comprehensive income

253

423

58

52

43,21027,80384,602

71,348Non-controlling interests
Total net assets
Total liabilities and net assets

6Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

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

2Q March 2021 Term
(Apr. 1, 2020 - Sept. 30, 2020)
53,970Net sales(Million yen)
2Q March 2022 Term
(Apr. 1, 2021 - Sept. 30, 2021)
57,047

Cost of sales

49,036

51,279Gross profit on sales

4,933

5,767

Selling, general and administrative expenses

4,374

4,421

558

1,346

Interest income

99Dividend income

20

25

Others48

47

Total non-operating profit

78

82

Interest expenses

37

52

Sales discounts

55Commission for purchase of treasury stock-

21

Foreign exchange losses

90

169

Others24

33

Total non-operating expenses

158

281

479

1,147

Gain on sales of investment securities

56

0

Total extraordinary profits

56

0Loss on sales of non-current assets

0-Loss on retirement of non-current assets

00Operating profit
Non-operating profit

Non-operating expenses

Ordinary profit
Extraordinary profits

Extraordinary losses00

Net profit before tax and other adjustments

536

1,147

Corporate, resident and enterprise taxes

151

231

Adjustment for corporate tax, etc.

18

132

Total corporate taxes

169

363

Net profit

366

783

Net profit (loss) attributable to non-controlling interests

(0)

(5)

Net profit attributable to shareholders of parent company

367

789

Total extraordinary losses

7Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(Quarterly Consolidated Comprehensive Income Statement of the First Half)
2Q March 2021 Term
(Apr. 1, 2020 - Sept. 30, 2020)
366

Net profit

2Q March 2022 Term
(Apr. 1, 2021 - Sept. 30, 2021)
783

Other comprehensive income
160

Valuation difference on available-for-sale securities

(57)

(5)

94

(253)

132

Remeasurements of defined benefit plans, net of tax

13

0

Total other comprehensive income

(83)

170

282

954

283

959

(0)

(5)

Deferred hedge gains (losses)
Foreign currency translation adjustment

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

8Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(3) Statement of Quarterly Cash Flows(Million yen)
2Q March 2021 Term
(Apr. 1, 2020 - Sept. 30, 2020)

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

Operating activities
Net profit before tax and other adjustments

536

1,147

Depreciation and amortization

112

118

Amortization of goodwill

6

13

Increase (decrease) in allowance for doubtful accounts

1

12

Increase (decrease) in allowance for stock compensation

(3)

(3)

Increase (decrease) in net defined benefit liabilities

(11)

(22)

Interest and dividend income

(30)

(34)

Interest expenses

37

52

Loss (gain) on sales of non-current assets

0-Loss (gain) on sales of investment securities

(56)

(0)

(5,981)(2,405)Decrease (increase) in inventories(208)(2,057)

Increase (decrease) in notes and accounts payable–trade

(325)

542

Decrease (increase) in consumption taxes refund receivable

2,052

1,762

Increase (decrease) in accrued consumption taxes

(5)

(20)

Others5(489)

Subtotal(3,871)(1,385)Decrease (increase) in notes and accounts receivable–trade

Interest and dividend income received

33

38Interest expenses paid

(38)

(51)

Income taxes (paid) refund

(96)

(229)

(3,971)(1,628)

(58)

(21)

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

0-

Purchase of software

(38)

(15)

Purchase of investment securities

(241)

(0)

Proceeds from sales of investment securities

76

1

Others(61)0

Net cash used in investing activities

(323)

(35)

Net increase (decrease) in short-term loans payable

4,963

1,575

Repayments of lease obligations

(41)

(38)

Proceeds from sales of property and equipment

Financing activities(0)(15,743)

Cash dividends paid

(1,059)(616)

Net cash provided by (used in) financing activities

3,862(14,823)

(2)

(18)

Net increase (decrease) in cash and cash equivalents(434)(16,505)

Balance of cash and cash equivalents, beginning of the period

18,44325,544

Balance of cash and cash equivalents, end of the period

18,008

9,038

Net decrease (increase) in treasury stock

Effect of exchange rate change on cash and cash equivalents

9Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(4) Notes on Quarterly Consolidated Financial Statements(Notes Regarding Going Concern)
None.

(Notes Regarding Remarkable Change of Shareholders’ Equity)
Reduction of General Reserve, Capital Reserve, and Retained Surplus
At the 70th Ordinary General Meeting of Shareholders held on June 18, 2021, the Company resolved to reduce theamount of general reserve, capital reserve and retained surplus.
(1) Purpose of Reducing the General Reserve, Capital Reserve, and Retained Surplus
In order to expand the financial resources for the tender offer for treasury stock that was decided at the Board of
Directors meeting held on May 12, 2021, and to ensure flexibility and agility in future capital policy, we reduced thecapital reserve and retained surplus. Additionally, after decreasing the amount of capital reserve, we transferred it to othercapital surplus; after reducing the retained surplus, we transferred it to retained earnings brought forward; and we
transferred the general reserve to retained earnings brought forward. Details are as follows.
(2) Method of Reducing Capital Reserve
Based on the provisions of Paragraph 1, Article 448 of the Companies Act, the capital reserve of ¥5,329,906,456 was
reduced with June 30, 2021 as the effective date, and the entire amount of the reduction was transferred to other capitalsurplus.
(3) Method of Reducing Retained Surplus
Based on the provisions of Paragraph 1, Article 448 of the Companies Act, the retained surplus of ¥670,983,281 wasreduced with June 30, 2021 as the effective date, and the entire amount of the reduction was transferred to retained earnings
brought forward.
(4) Method of Reducing General Reserve
Based on the provisions of Article 452 of the Companies Act, the general reserve of ¥18,680,000,000 was reduced,
and the entire amount of the reduction was transferred to retained earnings brought forward.

10

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

Acquisition of Treasury Stock and Tender Offer of Treasury StockAt the Board of Directors meeting held on May 12, 2021, the Company resolved the acquisition of the Company’streasury stock based on Paragraph 1 of Article 156 of the Companies Act (Act No. 86 of 2005), as amended (the“Companies Act”), which applies mutatis mutandis pursuant to Paragraph 3 of Article 165 of the same Act and theCompany’s Articles of Incorporation, and resolved to make a tender offer of treasury stock (the “Tender Offer”) as the
specific acquisition method of treasury stock. The acquisition was executed on August 13, 2021.
(1) Purpose of Acquiring Treasury Stock and Making Tender Offer for Treasury StockOn May 12, 2021, the Company announced its V73 Medium-term Management Plan, which is a three-year plan with
the Company’s 73rd term (fiscal year ending March 31, 2024) as the final year. In that plan, the Company set its target toachieve a 5% ROE at an early stage, and stated that, as part of measures for achieving this target, it will promote businessstructure reform to highly-profitable business with terms for early collection of accounts receivables, which will achievea small purchase amount relative to net sales compared to unit sales of semiconductors and electronic components, which
are the main products in the current net sales composition. The Company also stated that it will optimize capital in
conjunction with improving profitability and suppressing an increase in demand for funds as a result of this businessstructure reform. As part of these measures, the Company decided that it was necessary to make the Tender Offer andresolved to implement the Tender Offer.
(2) Contents of Resolution by the Board of Directors
1) Type of shares to be acquired:
Ordinary stock2) Total number of shares to be acquired:
7,000,100 shares (maximum)
3) Contents of funds, etc., to be delivered in exchange for acquisition:
Funds4) Total amount of funds, etc., to be delivered in exchange for acquisition: ¥15,743,224,900 (maximum)
5) Period during which acquisition is possible:
From June 22, 2021 to August 31, 2021
(3) Overview of Tender Offer for Treasury Stock
1) Number of shares scheduled for tender offer:
2) Price of tender offer:
3) Period of tender offer:
4) Publication date for commencing the tender offer:5) Settlement start date:

7,000,000 shares¥2,249 per share
From June 22, 2021 to July 19, 2021
June 22, 2021
August 13, 2021

(4) Result of Tender Offer for Treasury Stock
1) Total number of shares tendered:2) Total number of shares purchased:
3) Total acquisition price:4) Acquisition date:

7,486,162 shares
7,000,000 shares¥15,743,000,000
August 13, 2021

11

Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(Change of Accounting Principles)
Application of the Accounting Standard for Revenue Recognition, etc.
From the beginning of the consolidated first quarter of this fiscal year, the Company applies the Accounting Standard
for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020; hereinafter, “the Accounting Standard for Revenue
Recognition”), etc. Under this standard, once control of a promised good or service is transferred to the customer, theCompany recognizes revenue at the amount that the Company expects to receive in 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 trade conditions stipulated
by Incoterms (international commercial terms), etc.
In applying the Accounting Standard for Revenue Recognition, etc., the Company follows the transitional handlingstipulated 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 beginning of the consolidated first quarterof this fiscal year is added to or subtracted from the retained earnings at the beginning of the first quarter, and the new
accounting principle is applied from the balance at the beginning of the first quarter onward. However, the method
stipulated in Paragraph 86 of 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 the beginning of the consolidated first quarter of this fiscal year. 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 first quarter of this fiscal year, accounting is conducted based on thecontract terms after all of the contract changes are reflected, and the cumulative financial effect is added to or subtracted
from the retained earnings at the beginning of the consolidated first quarter of this fiscal year.
Applying the Accounting Standard for Revenue Recognition, etc., has insignificant impact on the quarterly
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 consolidated first quarter of this fiscal year 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 methodof 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, “theAccounting Standard for Fair Value Measurement”), etc., is applied from the beginning of the consolidated first quarterof this fiscal year. 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 Accounting Standard 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 quarterly consolidated
financial statements.

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Sanshin Electronics Co., Ltd. (8150) 2Q Fiscal Year Ending March 31, 2022

(Segment Information and Other)[Segment Information]
I. Six months ended September 30, 2020 (Apr. 1, 2020 - Sept. 30, 2020)
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

48,070－48,070
(65)

5,900
－
5,900
544

Total
53,970－53,970479(Note) The segment profit (loss) is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Six months ended September 30, 2021 (Apr. 1, 2021 - Sept. 30, 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

51,851－
51,851
840

5,196
－
5,196
306

Total
57,047－57,047
1,147(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
2. Items related to changes in report segments, etc.
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 firstquarter of this fiscal year 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.

(Significant Subsequent Events)
Retirement of Treasury StockAt the Board of Directors meeting held on November 5, 2021, the Company resolved the retirement of the Company’streasury stock based on Article 178 of the Companies Act.
(1) Type of shares to be retired: Ordinary shares of company stock(2) Number of shares to be retired:
8,000,000 shares (ratio of outstanding shares before retirement: 32.95%)(3) Scheduled date of retirement:
November 19, 2021
(4) Reason for retirement:
The Company plans to list on the Prime Market when our Tokyo Stock Exchange market classification is reviewed(scheduled for April 2022). The treasury stock will be retired in order to improve the ratio of shares in circulation andmeet the criteria for maintaining listing on the Prime Market.
(5) Total number of outstanding shares after retirement: 16, 281,373 shares

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