(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 6, 2024

Summary of Financial Results for the First Quarter of the Fiscal YearEnding March 31, 2025
(Three Months Ended June 30, 2024)[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 & CEO)Enquiries to:
Jun-ichi Murakami, Director, Operating Officer and Senior General
Tel.: +81-3-3453-5111
Manager of Finance & Accounting Division
Scheduled date of dividend payment:－Supplementary materials for the financial results: None
Investor conference for the financial results:
None(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Quarter of March 2025 Term(April 1, 2024 – June 30, 2024)(1) Consolidated business performance (cumulative)

Net sales

Operating profit

Million yen

1Q March 2025 Term
1Q March 2024 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders of parentcompany%

Million yen%

Million yen%

Million yen%

34,957
5.9
1,255
28.4
874
58.3
530
189.9
32,999(7.5)
977(49.9)
552 (52.6)
182 (76.1)
1Q March 2025 Term: 1,950 million yen (2.7%) 1Q March 2024 Term: 1,898 million yen (-19.9%)
Net profit per share

1Q March 2025 Term
1Q March 2024 Term

Diluted net profit per shareYenYen

43.45
15.00－－(2) Consolidated financial positionTotal assets

Net assets

Million yen

1Q March 2025 Term
March 2024 Term
(Reference) Own capital

Equity ratio

Million yen

82,46978,884
1Q March 2025 Term: 39,387 million yen%

39,45938,373
March 2024 Term: 38,295 million yen

47.8
48.5

2. Dividends
1Q-end2Q-endYen

March 2024 Term－
March 2025 Term－
March 2025 Term (forecast)(Note) Revision of most recent forecast on dividends:

None

Dividend per share
3Q-endYear-end

AnnualYen

Yen

Yen

Yen

35.00

－70.00105.0030.00－75.00105.003. Forecasts for Consolidated Business Performance for March 2025 Term (April 1, 2024 – March 31, 2025)

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%

Yen

76,000150,000

2.3
7.0

2,100
4,300

(26.0)(25.2)

1,500
3,600

(20.1)(7.9)

1,000
2,600(22.5)
(5.1)

81.94
213.06(Note) Revision of most recent forecast on earnings:

None* Annotations(1) Significant changes in the scope of consolidation during the consolidated cumulative period of this quarter: Yes
Newly added: － Excluded: One company (Company name: Sanshin Network Service Co., Ltd.)(Note) Sanshin Network Service Co., Ltd. was extinguished on April 1, 2024 in an absorption-type merger in which theCompany was the surviving company.
(2) Application of unique accounting to the preparation of quarterly consolidated financial statements:

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 2025 Term:

16,281,373 shares

March 2024 Term:

16,281,373 shares

March 2024 Term:

4,077,986 shares2) Amount of treasury stock at the end of term:
1Q March 2025 Term:

4,077,986 shares3) Amount of average stock during the term (quarterly total):
1Q March 2025 Term:

12,203,387 shares

1Q March 2024 Term:

12,192,317 shares(Note) The amount of treasury stock at the end of the term includes Company stock (1Q March 2025 term: 151,200 shares,March 2024 term: 151,200 shares) possessed in a trust related to the Performance-Based Stock Compensation Planfor Directors (with the exception of Directors and External Directors who are Audit & Supervisory Committee
Members). Also, Company stock held in the trust is included in treasury stock to be deducted in the calculation ofthe amount of average stock during the term (1Q March 2025 term: 151,200 shares, 1Q March 2024 term: 162,400shares).
* Review of the attached quarterly consolidated financial statements by certified public accountants or auditing corporations: None
* Cautionary statement regarding forward-looking statements
The projected results and forward-looking statements included in this document reflect the Company’s expectations based on
information available at the time of release, and are not intended as a guarantee that the Company will achieve these targets. The actual
performance may considerably differ from the forecast due to various factors.
See the section “1. Overview of Business Results - (3) Explanation of Forecasts for Consolidated Business Performance and OtherFuture Prospects” on page 3 of [Appendix], regarding the relevant matters for the above forecast for the business performance.

Contents of Appendix
1. Overview of Business Results ....................................................................................................................... 2(1) Overview of Business Results for the First Quarter of the Fiscal Year Ending March 31, 2025.................. 2(2) Overview of Financial Position for the First Quarter of the Fiscal Year Ending March 31, 2025................ 3(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects .................. 32. 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 Segment Information and Other) .......................................................................................... 8(Notes Regarding Remarkable Change of Shareholders’ Equity) ...................................................................... 8(Notes Regarding Going Concern) .................................................................................................................... 8(Notes Regarding Quarterly Consolidated Statement of Cash Flows) ............................................................... 8(Notes Regarding Revenue Recognition) .......................................................................................................... 91

1. Overview of Business Results
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) Overview of Business Results for the First Quarter of the Fiscal Year Ending March 31, 2025
In the consolidated first quarter under review, the outlook for the global economy remained uncertain.
Monetary tightening persisted in Western countries despite easing of inflationary pressures. Geopolitical risk inUkraine and the Middle East combined with a slowdown in the Chinese economy to exacerbate concerns of a
global downturn.
In the electronics industry, which is the primary area of business of the Sanshin Electronics Group, AI-related
demand for semiconductors burgeoned, driving the overall semiconductor market forward. In the domestic ICTindustry, the IT service market posted solid growth against a background of renewals and a shift to the cloud inexisting corporate systems and the promotion of DX (Digital Transformation).
The Group will closely focus on important issues with a view to realizing the long-term vision it announced
on May 10, 2024. As a first step in plans to execute the vision, the Group drafted the V76 Medium-Term
Management Plan, with the 76th fiscal year (ending March 31, 2027) as the final year. TheV76 Medium-Term
Management Plan calls for the formation of a business structure that consistently achieves return on equity (ROE)
of 8% or more, ordinary profit of ¥5 billion and net profit of ¥3.5 billion, by the final year of the Plan. To thisend, the Group is striving to achieve sustainable growth and improve capital efficiency while devoting itself tosustainability.
Business performance in the consolidated first quarter under review was as follows: Net sales were ¥34,957
million (up 5.9% year-on-year), operating profit was ¥1,255 million (up 28.4% year-on-year), ordinary profit
was ¥874 million (up 58.3% year-on-year), and net profit attributable to shareholders of parent company was¥530 million (up 189.9% 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 quarter 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 ordinaryprofit.
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 quarter under review, inventory adjustments in the supply chain gradually drew to aclose, while the Japanese yen weakened significantly year-on-year. Net sales were ¥31,567 million (up 4.3%year-on-year) and segment profit was ¥751 million (up 40.2% year-on-year).
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 quarter under review, net sales of the Network Systems Business Unit (NetworkSystems BU) soared year-on-year, propelled by robust corporate demand for investment in ICT networks. Net
sales in the solution business segment were ¥3,389 million (up 24.3% year-on-year) and segment profit was ¥1222

million (up 657.6% year-on-year).
(2) Overview of Financial Position for the First Quarter of the Fiscal Year Ending March 31, 2025
(Assets)
As of June 30, 2024, assets increased ¥3,585 million compared with March 31, 2024, to ¥82,469 million. Thiswas mainly attributable to a ¥4,583 million increase in notes and accounts receivable–trade, a ¥3,229 million
increase in merchandise inventories, and a ¥3,446 million decrease in consumption taxes refund receivable.
(Liabilities)
As of June 30, 2024, liabilities increased ¥2,499 million compared with March 31, 2024, to ¥43,010 million.
This was mainly attributable to a ¥3,653 million increase in notes and accounts payable–trade and a ¥1,449
million decrease in short-term loans payable.
(Net Assets)
As of June 30, 2024, net assets increased ¥1,085 million compared with March 31, 2024, to ¥39,459 million.
This was mainly attributable to a ¥1,402 million increase in foreign currency translation adjustment and a ¥334
million decrease in retained earnings.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
The Company has changed its forecast of consolidated business performance for the first half of the fiscal year
ending March 31, 2025 from the forecast set forth in the Summary of Financial Results for the Fiscal Year Ended
March 31, 2024, released on May 10, 2024. This change was noted in “Notice Regarding Upward Revision ofFirst-Half Business Results Forecast,” released on July 25, 2024.
In regard to the forecasts of consolidated business performance and dividends in the full fiscal year ending
March 31, 2025, we have not revised the forecast figures set forth in the Summary of Financial Results for Fiscal
Year Ended March 31, 2024, released on May 10, 2024.

3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2024 Term
(As of Mar. 31, 2024)

1Q March 2025 Term
(As of Jun. 30, 2024)

AssetsCurrent assets
Cash and deposits

8,793

8,255

Notes and accounts receivable–trade, and contract assets

32,01235,730Electronically recorded monetary claims

2,472

3,337

Merchandise inventories

22,927

26,1561

18

Others

5,916

3,158

Allowance for doubtful accounts

(28)

(32)

72,09576,623

2,921

2,887

301

270

Partly-finished work

Total current assets
Non-current assets
Property and equipment
Intangible assets
Investments and other assets

7985

Others

3,542

2,662

Allowance for doubtful accounts

(57)

(60)

Total investments and other assets

3,564

2,687

Net defined benefit assets

6,788

5,845

78,88482,469Notes and accounts payable–trade

13,35017,004

Short-term loans payable

23,95922,509Accrued corporate tax, etc.

364

224

Allowance

573

291

Others

1,702

2,265

Total current liabilities

39,94942,295561

714

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
OthersTotal non-current liabilities
Total liabilities

4561

714

40,51043,010(Million yen)March 2024 Term
(As of Mar. 31, 2024)

1Q March 2025 Term
(As of Jun. 30, 2024)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

14,811

14,81116

16

Retained earnings

26,26625,931

Treasury stock(8,758)(8,758)

Total shareholders’ equity

32,33532,000

Valuation difference on available-for-sale securities

1,014

1,123

Deferred hedge gains (losses)

(63)

(146)

Foreign currency translation adjustment

4,933

6,336

Remeasurements of defined benefit plans

7473

5,959

7,386

77

71

38,37339,45978,88482,469

Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Quarterly Consolidated Profit and Loss Statement of the First Quarter)
1Q March 2024 Term
(Apr. 1, 2023 – Jun. 30, 2023)
32,999Net sales(Million yen)
1Q March 2025 Term
(Apr. 1, 2024 – Jun. 30, 2024)
34,957

Cost of sales

29,62831,171Gross profit on sales

3,370

3,785

Selling, general and administrative expenses2,393

2,530

977

1,255

Interest income

2647

Dividend income

1516Others

129

Total non-operating profit

5573

Interest expenses

252

140

Foreign exchange losses

222

299

514480

454

552

874

Gain on sales of investment securities－73

Gain on extinguishment of tie-in shares－

8

Total extraordinary profits

－81－

70

Operating profit
Non-operating profit

Non-operating expenses

OthersTotal non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses
Loss on sales of investment securities－70

Net profit before tax and other adjustments552

885

Corporate, resident and enterprise taxes

276

216

Adjustment for corporate tax, etc.

96

145

Total corporate taxes

372

361

Net profit

179

523

Net profit (loss) attributable to non-controlling interests

(3)

(6)

Net profit attributable to shareholders of parent company

182

530

Total extraordinary losses

6

(Quarterly Consolidated Comprehensive Income Statement of the First Quarter)

Net profit

1Q March 2024 Term
(Apr. 1, 2023 – Jun. 30, 2023)
179

1Q March 2025 Term
(Apr. 1, 2024 – Jun. 30, 2024)
523

147

109

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

(195)

(83)

Foreign currency translation adjustment

1,764

1,402

1(1)

1,718

1,427

1,898

1,950

1,901

1,957

(3)

(6)

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 Segment Information and Other)[Segment Information]
I. Three months ended June 30, 2023 (Apr. 1, 2023 - Jun. 30, 2023)
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

30,271－
30,271
536

2,727
－
2,727
16

Total
32,999－32,999552(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Three months ended June 30, 2024 (Apr. 1, 2024 - Jun. 30, 2024)
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

Device segment

Solution segment

31,567－31,567751

3,389－
3,389
122

Total
34,957－
34,957874(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

(Notes Regarding Remarkable Change of Shareholders’ Equity)
None.

(Notes Regarding Going Concern)
None.

(Notes Regarding Quarterly Consolidated Statement of Cash Flows)
The Company has not prepared a quarterly consolidated statement of cash flows for the consolidated first quarter
under review. Depreciation and amortization (including amortization of intangible assets other than goodwill) andamortization of goodwill in the consolidated first quarter are as follows.
1Q March 2024 Term
(Apr. 1, 2023 – Jun. 30, 2023)

Depreciation and amortization
Amortization of goodwill¥72 million¥6 million

8

1Q March 2025 Term
(Apr. 1, 2024 – Jun. 30, 2024)¥77 million¥6 million

(Notes Regarding Revenue Recognition)(Breakdown of revenue generated from contracts with customers)(Million yen)
1Q March 2024 Term
(Apr. 1, 2023 – Jun. 30, 2023)

1Q March 2025 Term
(Apr. 1, 2024 – Jun. 30, 2024)

Mechanical parts manufacturers

11,83914,056

Overseas manufacturers

14,916

13,534

Other manufacturers

3,515

3,976

30,271

31,567

1,220

1,966

Firefighting and Disaster Preparedness BU

2817

Platform BU

598

544

Application Systems BU

551

494

Imaging Systems BU

327

367

Subtotal

2,727

3,389

Total

32,99934,957

Report segment
Device segment
By type of supplier

Subtotal
Solution segment
By business unit (BU)
Network Systems BU

Beginning with the end of the previous consolidated fiscal year, the “breakdown of revenue generated from contracts
with customers” is changed from a breakdown of the solution segment by field (network field, public-sector field,
application-systems field, embedded-systems field, imaging-systems field) to a breakdown of the solution segment bybusiness unit (Network Systems BU, Firefighting and Disaster Preparedness BU, Platform BU, Application Systems
BU, Imaging Systems BU).
The products handled by the Group are used in a diverse range of fields. For this reason, to describe the content of its
operations as appropriately as possible, the Group is changing the breakdown of this section from a breakdown bymarket to a breakdown by product group.
To reflect this change in categories, the Group has also reorganized the breakdown of the solution segment in theprevious consolidated fiscal quarter.

9