Briefing Materials on the Financial
Results for the First Half of the YearEnding March 2023
November 7, 2022

SANSHIN ELECTRONICS CO., LTD.
Toshiro Suzuki, Representative Director, COO-1-[SANSHIN CONFIDENTIAL]

Business Activities
As a general electronics trading company committed to being “customers’ best partner,”
Sanshin Electronics runs two major businesses: device business and solution business.
Device Business― Addressing diversified market needs through a wide product lineup ―We cover a wide array of manufacturers, from both domestic and overseas
major semiconductors/electronic parts makers all the way to emerging
manufacturers that are currently developing products with excellent
performance. In a time when market needs are constantly diversifying, we
respond to our customers’ requests through a full lineup and detailed systemof both domestic and overseas sales.

Solution Business― Building up social infrastructures interconnected through ICT ―With information and telecommunications network at the core of ouroperations, we are committed to proposing and building up the optimal
system to fit our customers’ needs. We provide our customers with asafe and reliable infrastructure through bundled services, including a
support menu, after the system implementation.

-2-[SANSHIN CONFIDENTIAL]

I. Year Ending March 2023
Performance Summary for the First Half

-3-

[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Consolidated Performance Summary(Unit: ¥100 million)■ Net sales were up 45% year-on-year and profit went up despite an increase in SG&A expenses.
03/22 1st Half 03/23 1st Half
ResultResultNet Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit

570.5
10.1%

Ordinary Dividend
Commemorative
Dividend

Total

Exchange Rate
(1 US dollar)

Forecast*1)

Achievement
Ratio

829.9

145%

770.0

108%

91.7

159% Not announced

－

49.2

－

11.0%
57.7

7.7%

5.9%
44.2

7.9
¥10
¥20
¥30

21.6
¥30
－
¥30

111% Not announced
4.1%
315%
31.2
2.9%
255%
22.7
2.2%
273%
16.6
+¥20
¥30
-¥20
－
±¥0
¥30

¥109.79¥133.98¥24.19 Not announced

2.4%

5.1%
13.5

2.0%

42.5
3.5%

11.5

1.4%
Net Profit Attributable to
Shareholders of Parent Company
Interim
Dividend Per
Share

YoY Change

29.3
2.6%

136%
129%
130%
±¥0
±¥0
±¥0
－

*1) Figures in the Forecast section are based on results announced for the first quarter of the fiscal year ending March 31,
2023 (announced on August 5, 2022).
*2) The figure in the YoY Change section for exchange rate represents an increase or decrease.
-4-[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Year-to-Year Comparison of Consolidated Ordinary Profit● Increase in SG&A expenses
Approx. ¥0.5 bn
Mainly an increase in distribution cost

Ordinary
Profit¥1.15 bn

○ Increase in gross profit
Approx. ¥2.46 bn*
Also impacted by increased net sales in thedevice business and temporary factors
including tight supply and demand forsemiconductors

Ordinary
Profit¥2.93 bn

○ Decrease in non-operating profit Approx. ¥0.18 bn*

Increase of approx. ¥1.78 bn
03/22 1st Half
Result*Per accounting standards, the difference between the month-end exchange rate and the averageexchange rate is shown in both denominations in the profit and loss statement. However, in theabove figure, the difference is offset by gross profit and non-operating profit and loss, and theactual increase or decrease is shown.
-5-

03/23 1st Half
Result[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Consolidated Performance Summary by Segment (Unit: ¥100 million)■ Device BusinessIn addition to strong net sales of electronic components and overseas semiconductors, the weakening yen in foreignexchange was also a driving factor.
■ Solution BusinessOverall sales stagnated due to late delivery of products caused by tight supply and demand of semiconductors.
03/22 1st Half 03/23 1st Half
ResultResultNet Sales
DeviceBusiness

Operating Profit
Segment
Profit518.5

Solution
Business

Operating Profit
Segment
ProfitExchange Rate
(1 US dollar)

777.5

150%

44.4

291%

8.4

26.6

317%

52.0

52.4

101%

4.5

89%

3.1

2.8

91%

¥109.79¥133.98¥24.19

2.9%

5.7%
15.3

1.6%

Net Sales

YoY Change

3.4%

9.7%

8.6%
5.0

5.9%

5.3%

*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.

-6-[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)+50%

By Business Category of Device Business

777

245

518
Strategic Device

109
244

Core Device

Volume Business

196

288
213

03/22 1st Half

【Year-to-Year Comparison of Fluctuations】■ Volume Business (up 35% YoY)
○ Sales for mobile devices were strong○ Recovery for social infrastructure■ Core Device (up 24% YoY)
○ Strong sales for industry, vehicle-mounted business, and storage, etc.
● Renesas EL ended in the previous fiscal year due to the cancellationof the dealership agreement■ Strategic Device (up 125% YoY)
○ Increase in overseas merchandise such as wirelessmerchandise/analog semiconductors○ Acquisition of new customers for vehicle-mounted business, etc.
○ Strong sales of modular products

03/23 1st Half
-7-

[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)+50%

By Supplier of Device Business

777
115

518
321

Other

90

Overseas
Manufacturers

164ElectromechanicalParts Manufacturers

341
264

03/22 1st Half

03/23 1st Half

【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (up 29% YoY)
○ Increase for mobile devices and gaming consoles■ Overseas Manufacturers (up 96% YoY)
○ Increase in strategic devices for wirelessmerchandise/analog semiconductors, etc.
○ Acquisition of new customers for vehicle-mounted
business, etc.
○ Strong sales of modular products■ Other (up 28% YoY)
○ Recovery for social infrastructure○ Increase in IoT related business and agent sales, etc.
● Renesas EL ended in the previous fiscal year due to thecancellation of the dealership agreement*Net sales by Renesas EL in the first half of the fiscal year ended March
21, 2022: ¥900 million-8-[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales (Unit: ¥100 million)+1%

Video Systems

52.0

52.4

7.7

8.3

By Sector of Solution Business【Year-to-Year Comparison of Fluctuations】■ NW (down 18% YoY)
● Decrease due to late delivery of NW machinery

AP Software

12.7

12.8

■ Public Systems (down 15% YoY)
● Decrease in projects for updating disaster prevention radio

Embedded Systems

9.1
12.7

■ Embedded Systems (up 39% YoY)
○ Recover of demand related to servers, etc.
■ AP Software (up 1% YoY)

Public Systems○ Software development projects remained at the same level

9.8
8.3

■ Video Systems (up 7% YoY)
○ Increase in streaming projects

NW

12.7

03/22 1st Half

10.3

03/23 1st Half
-9-

[SANSHIN CONFIDENTIAL]

First Half of the Year Ending March 2023
Consolidated Financial Situation(Unit: ¥100 million)■ Regarding the results of the term ended September 30, 2022, total assets were ¥96.2 bn (up ¥23.4 bn from the end of the previous fiscal year) and theequity ratio was 35.8% (down 6.3% from the end of the previous fiscal year).
→ Accounts receivable, accounts payable, and inventories increased significantly due to growth in net sales, and interest-bearing liabilities increased as
the increase in working capital was covered with bank loans.
→ Due to the factors listed above, operating cash flows decreased by ¥12.66 bn, and financing cash flows increased by ¥10.05 bn.
1) Balance Sheets
2) Cash Flows

Cash and deposits
Accounts receivable
Inventories

FY EndedMar. 21
Result (A)FY EndedMar. 22
Result (B)

B-A
Increase/
Decrease

Q2 Ended
Sept. 22
Result (C)C-B
Increase/
Decrease

255.4

93.1

-162.4

70.0

-23.1

335.4

358.7

23.3

487.3

128.7

FY Ended Mar. FY Ended Mar. H1 Ended Sept.
21 Result
22 Result
22 Result
Decrease (increase) in
accounts
receivable-trade

-46.3

-0.1

-76.9

Decrease (increase) ininventories

18.9

-45.6

-74.9

Increase (decrease) in
accounts
payable-trade

-11.2

2.3

31.9

21.7

65.3

-6.6

-16.9

21.9

-126.6

-3.8

-1.5

0.3

89.3

-185.9

100.5

2.4

3.1

2.7

71.0

-162.4

-23.1

255.4

93.1

70.0

143.4

197.3

53.9

291.6

94.2

111.8

79.0

-32.8

113.3

34.2

846.0

728.1

-117.9

962.2

234.1

Operating C/F

131.1

144.6

13.5

201.4

56.8

Investing C/F

253.5

244.3

-9.2

377.9

133.6

Financing C/F

Other liabilities

29.4

32.4

3.1

38.2

5.8

Total net assets

432.1

306.8

-125.3

344.7

37.9

846.0

728.1

-117.9

962.2

234.1

Other assets
Total assets
Accounts payable
Interest-bearing
liabilities

Total liabilities
and net assets
Equity ratio

51.0%

42.1%

-8.9%

35.8%

-6.3%
- 10 -

Other

Foreign currency
conversion
adjustments
Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end[SANSHIN CONFIDENTIAL]

Ⅱ. Progress of the V73 MediumTerm Management Plan

- 11 -[SANSHIN CONFIDENTIAL]

Overview of the V73 Medium-Term Management Plan
1. Improving profitability through business structure reform and expanding business in growth markets■ Device business: Expand existing businesses and improve profitability, and establish a new profit structure (reform our businessportfolio)■ Solution business: Grow the business based on service provision, expand our digital technology, and expand our customer platform

2. Improving capital efficiency■ Continue to target a dividend payout ratio of around 50% on a consolidated basis, and improve capital efficiency throughmeasures such as reducing total assets■ Maintain financial soundness and ensure the mobility and stability of fund procurement

3. Strengthening corporate governance■ Strengthen efforts to address issues related to sustainability, and strengthen the functions of the Board of Directors for
executing measures in the Medium-Term Management Plan

Quantitative targets for the final year of
V73(fiscal year ending March 31, 2024)

ROE

Maintain 6% or higher during V73

Ordinary profit¥2.5 bn or higher

Net profit attributable to shareholdersof parent company¥1.8 bn or higher- 12 -[SANSHIN CONFIDENTIAL]

Overview of V73 Medium-Term Management Plan (Quantitative Targets)
10.0%
6.8%
2.8%

1.5%

1.2%

1.1%
1,573

ROE
6% or more

3.9%

3.4%

2.9%

1.7%

1.5%

2.9%

ROS
Net sales(Unit: ¥100 million)

1,556

1,479
1,231

45.0

1,236

1,128

35.6

33.0
Ordinary profit¥2.5 bn or more

25.3
17.4

17.9

9.5
03/18 Term

14.5
03/19 Term

18.6
14.5
03/20 Term

18.8
Net profit¥1.8 bn or more

16.5

03/21 Term
- 13 -

03/22 Term

03/23 Term
Forecast[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Expand existing
businesses andimprove
profitability

Device Business
Establish new
profit structure(reform portfolio)

Contents of Measures

Targeted Effect and Progress Status(1) Shift resources to overseas semiconductors(2) Acquire new customers from existing suppliers(3) Reorganize organization by customer and business andimprove the efficiency of sales promotion(4) Promote the increased efficiency of sales activities
・ Improvement/new introduction of sales support systems,
maintenance of operation systems

Targeted Effect・ Increase net sales of overseas semiconductor manufacturers
・ Increase segment profit to net sales(1) Focus on provision of total solutions (AI/IoT, robotics)(2) AI/IoT related
・ Enhance approaches to local governments through reservoir
and river monitoring solutions with added value(3) Robotics field・ Focus on new development by strengthening cooperation
with collaborative partners and interdepartmental
cooperation(4) Vehicle-mounted field・ Use proposal-based software (including wireless modules
and security products) as the key to formulate a new
strategy in the existing organization (automotive
department)

Targeted Effect・ Acquire customers in new markets (including nonelectronics)
・ Acquire highly-profitable businesses
・ Improve segment profit to net sales- 14 -

Progress Status: Excellent*YoY comparison is comparison with full-year forecast

・ Net sales of overseas semiconductor manufacturers
increased 69% YoY
・ Segment profit to net sales: 2.2% (up 0.2% YoY)
・ Currently continuing efforts to increase efficiency of sales
activities

Progress Status: Fair・ Acquired orders through reservoir solutions for local
governments
・ For robotics, although business negotiations have beenreached through efforts to develop customers in newmarkets, time will be required to contribute to segment
profit rate
[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of MediumTerm Management Plan

Grow businessbased on service
provision

Solution Business

Expand digitaltechnology

Expand customer
platformContents of Measures

Targeted Effect and Progress Status(1) Establish a service provision model utilizing mega cloud (AWS,MS Azure, etc.) infrastructure(2) Expand Sanshin Data Center business(hosting + operation maintenance, cloud connection service)(3) Expand general-purpose cloud services(enhance services such as cloud backup and cloud security)(4) Expand subscription business by improving service menu

Targeted Effect
Secure and expand stable stock earnings(1) Respond to evolving security technology
・ Implement proposal of security model based on Zero Trust
concept
・ Strengthen response to SASE technology(2) Acquire new infrastructure technology(SD-WAN, WiFi6, 5G, private LTE, etc.)

Targeted Effect
Increase sales in the solution business
Progress Status: Excellent
Enhancing proposal activities utilizing advanced
technologies (SASE, 5G)(1) Discover new merchandise in collaboration with external
consultants, expand free promotional merchandise(2) Acquire new customers through collaboration with partners(3) Promote cross-sales through cooperation inside of divisions(4) Develop new markets for existing products such as mobile relay
equipment(5) Incorporate DX demand

Targeted EffectExpand business domains and identify new revenue
sources
Progress Status: Good
Aiming to expand contracts with new suppliers andcontribute to earnings from the next fiscal year onwards
Currently promoting cross-business expansion, such as
promoting cross-selling by strengthening pre-sales- 15 -

Progress Status: Fair
Accelerating the development and expansion of the cloudservice menu amidst changes in maintenance styles due tothe expansion of cloud services[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of Medium-Term
Management Plan

Contents of Measures(1) Optimize the scale of equity capital・ Based on future demand for funds, in June 2021, we executed atreasury stock tender offer for 7 million shares (equivalent to28.83% of outstanding shares at that time; value of ¥15.7 bn)
・ Continue dividends targeting a consolidated payout ratio of 50%

Improving capitalefficiency(2) Maintain financial soundness
・ Improve transaction conditions (stricter conditions for new
transactions)・ Liquidate large receivables
・ Reduce strategically held shares
March 31, 2021: 22 types of stocks ⇒ September 30, 2022:
15 types of stocks(Sold 6 types of stocks, transferred 1 type of stock to pureinvestment shares)

Targeted Effect and Progress Status
Targeted EffectImprove ROE
Progress Status: Excellent
・ As a result of optimizing the scale of equity capital,
ROE during V73 is expected to remain above theinitial target (5%).
・ As of September 30, 2022, the equity ratio was 35.8%.
However, by the March 31, 2023, we aim to achieve alevel of at least 40%, which is the level required tocontinue stable business transactions.

(3) Ensure the mobility and stability of fund procurement
・ Entered into a commitment line contract (from August 31,
2021)- 16 -[SANSHIN CONFIDENTIAL]

V73 Medium-Term Management Plan: List of Progress for Priority Measures
Measures of Medium-Term
Management Plan

Strengthening corporate
governanceContents of Measures

Targeted Effect and Progress Status(1) Efforts for issues regarding sustainability (SDGs, ESG)
・ Disclose targets for ensuring diversity (December 2021)[Targets for management position ratio]
Women: 10% (by March 31, 2031)
Foreigners: Continue to maintain 10% or higher
Mid-career hires: Continue to maintain 30% or higher⇒ In order to achieve these targets, expand the group of hiring
candidates and implement measures for developing anappropriate work environment
・ Strengthen investment in human capital⇒ Strengthen employee training systems for improving
specialized skills
・ Respond to the issue of climate change⇒ Disclose in accordance with TCFD recommendations⇒ Reduce the amount of greenhouse gas emissions(2) Strengthen functions of the Board of Directors
・ Secure the required skill balance to make accurate decisions onimportant matters and to supervise business execution

Targeted Effect・ Establish a management base for sustainable growthand formulate a strategic scenario
・ Strengthen responsibility of explanation toward
stakeholders- 17 -

Progress Status: Fair・ Ratio of women in management positions is 5% (as ofMarch 31, 2022)
・ In addition to existing group training, enhanced ourmenu for improving employee skills by utilizing
outside training programs such as Udemy
・ We are aiming for TCFD disclosure in May 2023, one
year ahead of the initial schedule (May 2024)
・ For greenhouse gas emissions, we have started toquantitatively ascertain Scope 1, 2 and Scope 3(partial)
We plan to set reduction targets from the fiscal year
ending March 31, 2024
・ From the Notice of the Ordinary General Meeting of
Shareholders in June 2022, we are disclosing required
skills and their retention status as a matrix table[SANSHIN CONFIDENTIAL]

III. Full-Year Business Forecast for theYear Ending March 31, 2023

- 18 -[SANSHIN CONFIDENTIAL]

Year Ending March 2023
Full-Year Business Forecast(Unit: ¥100 million)■ We expect net sales of ¥155.6 bn (up 26% YoY) and an increase in profit.
03/18 Result

03/19 Result

03/20 Result

03/21 Result

03/22 Result

03/23 Forecast

YoY Change

1,572.6
1,478.8
1,230.9
1,127.9
1,235.8
1,556.0
7.3%
7.7%
9.1%
9.8%
10.9%
10.4%
Gross Profit on Sales
114.5
114.1
112.3
110.5
135.3
162.4
6.2%
6.4%
7.5%
7.9%
7.5%
6.5%
SG&A Expenses
96.8
94.4
92.7
88.8
93.2
100.4
1.1%
1.3%
1.6%
1.9%
3.4%
4.0%
Operating Profit
17.6
19.7
19.6
21.7
42.1
62.0
1.1%
1.2%
1.5%
1.7%
2.9%
2.9%
Ordinary Profit
17.9
17.4
18.6
18.8
35.6
45.0
0.6%
1.0%
1.2%
1.5%
2.0%
2.1%
Net Profit Attributable to
Shareholders of Parent Company
9.5
14.5
14.5
16.5
25.3
33.0

126%

Net Sales

ROE
AnnualDividend Per
Share

Ordinary Dividend
Commemorative
Dividend

Total

Payout Ratio
Exchange Rate
(1 US dollar)

120%
108%
147%
126%
131%

1.5%
¥33
－
¥33

2.8%
¥70
－
¥70

3.4%
¥70
－
¥70

3.9%
¥40
－
¥40

6.8%
¥80
¥20
¥100

10.0%
¥135
－
¥135

+3.2P
+¥55
-¥20
+¥35

98.2%

93.3%

93.2%

46.9%

48.8%

50.4%

+1.6P

¥110.86¥110.91¥108.74¥106.06¥112.38¥130.00¥17.62*Figures in the YoY Change section for ROE, annual dividend per share, payout ratio
and exchange rate represent increases or decreases.
- 19 -[SANSHIN CONFIDENTIAL]

Year Ending March 2023
Year-to-Year Comparison of Consolidated Ordinary Profit● Increase in SG&A expenses
Approx. ¥0.72 bn
Mainly an increase in distribution cost

○ Increase in gross profit
Approx. ¥2.21 bn*
Sales growth in the device business andtemporary factors including tight supply anddemand for semiconductors will also have an
impact.

Ordinary
Profit¥4.5 bn
Ordinary
Profit¥3.56 bn

03/22 Term
Result○ Decrease in non-operating profit Approx. ¥0.55 bn*

Increase of approx. ¥0.94 bn*Per accounting standards, the difference between the month-end exchange rate andthe average exchange rate is shown in both denominations in the profit and loss
statement. However, in the above figure, the difference is offset by gross profit andnon-operating profit and loss, and the actual increase or decrease is shown.
- 20 -

03/23 Term
Forecast[SANSHIN CONFIDENTIAL]

Year Ending March 2023
Full-Year Business Forecast by Segment(Unit: ¥100 million)■ In the device business, we expect net sales to increase by 28% YoY and segment profit to rise due to the increase in net sales■ In the solutions business, we expect net sales to increase by 5% YoY and segment profit to remain at the same level YoY
03/18 Result 03/19 Result 03/20 Result 03/21 Result 03/22 Result

03/23
Forecast

YoY
ChangeNet Sales
1,437.0
DeviceBusiness

Operating Profit

1.1%

1,332.8
1.3%

16.2
Segment
Profit0.5%

1,090.8
1.4%

1.6%

17.1
0.3%

989.9

15.3
0.4%

1,105.2
3.6%

15.7
0.2%

1,418.7

128%

59.5

149%

4.2%
40.1

2.0%

2.2%

7.2

4.7

4.2

1.7

21.9

31.2

143%

135.6

146.0

140.1

138.0

130.6

137.3

105%

18.0

98%

Net Sales
Solution
Business

Operating Profit

9.8%

11.3%
13.4

Segment
ProfitExchange rate (1 US dollar)

7.8%

13.2%
16.5

8.7%

15.2%
18.4

10.3%

14.0%
21.0

12.4%

13.1%
18.3

10.5%

10.1%

10.6

12.7

14.4

17.1

13.7

13.8

101%

¥110.86¥110.91¥108.74¥106.06¥112.38¥130.00¥17.62*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.

- 21 -[SANSHIN CONFIDENTIAL]

Year Ending March 2023
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
+28%
1,419

By Business Category of Device Business

1,333
Strategic
Business

86

Core Business

523

100

439

1,105

1,091
990

244
155
426

464
431

VolumeBusiness

390

724
565
404

03/19 Term

03/20 Term

03/21 Term

471

516

03/22 Term

03/23 Term
Forecast- 22 -【Year-to-Year Comparison of Fluctuations】■ Volume Business (up 10% YoY)
○ Increase for mobile devices● Sales for social infrastructure will begin to decrease
from the second half
■ Core Device (up 19% YoY)
○ Strong sales for industry, vehicle-mounted business,and storage, etc.
● Renesas EL ended in the previous fiscal year due tothe cancellation of the dealership agreement■ Strategic Device (up 80% YoY)
○ Increase in overseas merchandise such as wirelessmerchandise/analog semiconductors○ Acquisition of new customers for vehicle-mounted
business, etc.
○ Strong sales of modular products[SANSHIN CONFIDENTIAL]

Year Ending March 2023
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales+28%

By Supplier of Device Business
1,419
1,333
201

Other

486

1,105

1,091
990
413

207
597

281
356

Overseas
Manufacturers

Electromechanical
Parts
Manufacturers

485

362

03/19 Term

212

466

219

490

621

542

【Year-to-Year Comparison of Fluctuations】■ Electromechanical Parts Manufacturers (up 15% YoY)
○ Increase for mobile devices and gaming consoles■ Overseas Manufacturers (up 68% YoY)
○ Increase in strategic devices for wirelessmerchandise/analog semiconductors, etc.
○ Acquisition of new customers for vehicle-mounted
business, etc.
○ Strong sales of modular products■ Other (down 3% YoY)
● Renesas EL ended in the previous fiscal year due tothe cancellation of the dealership agreementNote) Change in sales by Renesas EL (included in the
figures for "Other")

03/20 Term

03/21 Term

03/22 Term

03/23 Term
Forecast- 23 -

03/19 Term

03/20 Term

03/21 Term

03/22 Term

03/23 Term

230

173

122

9

0

[SANSHIN CONFIDENTIAL]

Year Ending March 2023
(Unit: ¥100 million)
Year-to-Year Comparison of Consolidated Net Sales
+5%
146.0
140.1

Video
Systems

16.3

AP Software

21.8

16.4

138.0

137.3

16.1

16.7
17.9

27.8

27.3

26.8
26.7

Embedded
Systems

31.0
29.7

27.1

27.0
23.6

PublicSystems

46.9

NW

30.0

03/19 Term

By Sector of Solution Business

130.6

30.1

36.5

36.1

03/20 Term

33.2

36.6

31.0

29.2

30.2

03/21 Term

03/22 Term

03/23 Term
Forecast- 24 -【Year-to-Year Comparison of Fluctuations】■ NW (up 3% YoY)
○ Increase in investment in IT infrastructureby private corporations■ Public Systems (up 10% YoY)
○ Increase in projects for updating disasterprevention radio■ Embedded Systems (up 14% YoY)
○ Recover of demand related to servers, etc.
■ AP Software (up 0% YoY)
○ Software development projects will remain
at the same level■ Video Systems (down 6% YoY)
● Decrease in demand for streaming[SANSHIN CONFIDENTIAL]

Year Ending March 2023
Consolidated Financial Situation(Unit: ¥100 million)■ Regarding the forecast for the fiscal year ending March 31, 2023, total assets will be ¥86.3 bn (up ¥13.5 bn from the end of the previous fiscal year)
and the equity ratio will be 40.8% (down 1.3% from the end of the previous fiscal year).
→ Growing sales will cause total assets and working capital to increase, and we expect operating cash flows to decrease by ¥6.02 bn.
→ We will aim to reduce interest-bearing liabilities by implementing stricter conditions for new transactions and utilizing liquidation of receivables toimprove working capital.
→ In August 2021, we entered into commitment line agreement for a total of ¥6 bn to supplement liquidity on hand.
1) Balance Sheets
2) Cash FlowsFY EndedMar. 21
Result (A)FY EndedMar. 22
Result (B)

B-A
Increase/
Decrease

FY EndingMar. 23
Forecast (C)C-B
Increase/
Decrease

255.4

93.1

-162.4

75.0

-18.1

335.4

358.7

23.3

461.5

102.8

Inventories

143.4

197.3

53.9

247.5

50.2

Other assets

111.8

79.0

-32.8

79.0

-0.0

846.0

728.1

-117.9

862.9

134.8

Operating C/F

131.1

144.6

13.5

175.1

30.5

Investing C/F

253.5

244.3

-9.2

301.5

57.3

Financing C/F
Foreign currency
conversion
adjustments

Cash and deposits
Accounts receivable

Total assets
Accounts payable
Interest-bearing
liabilities
Other liabilities

29.4

32.4

3.1

33.9

1.5

Total net assets

432.1

306.8

-125.3

352.4

45.6

846.0

728.1

-117.9

862.9

134.8

Total liabilities
and net assets
Equity ratio

51.0%

42.1%

-8.9%

40.8%

-1.3%

- 25 -

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

FY Ended Mar.
21 Result

FY Ended Mar.
22 Result

FY Ending Mar.
23 Forecast

-46.3

-0.1

-102.8

18.9

-45.6

-50.2

-11.2

2.3

30.5

21.7

65.3

62.2

-16.9

21.9

-60.2

-3.8

-1.5

-2.0

89.3

-185.9

44.1

2.4

3.1

71.0

-162.4

-18.1

255.4

93.1

75.0

Other

Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end[SANSHIN CONFIDENTIAL]

Concept of Return to Shareholders● Policy on Distribution of Profits
The Company considers profit returns to its shareholders as one of the most important management issues. The
Company’s basic policy is to determine dividends by comprehensively considering the need to maintain a balance
between rewarding of shareholders, investment to gain opportunities for growth, attainment of sufficient retained
earnings to enable sustainable growth, and improvement in capital efficiency. Under this policy, the Company has set atarget for its dividend payout ratio of around 50% on a consolidated basis.

● Dividend Forecast for the Year Ending March 31, 2023
An annual dividend of ¥135 per share (midterm dividend of ¥30, term-end dividend of ¥105); consolidated dividend
payout ratio of 50.4%
03/18 Result
Ordinary
Dividend
AnnualCommemorative
Dividend Per
Dividend

Share

Total

Payout Ratio

03/19 Result

03/20 Result

03/21 Result

03/22 Result

03/23 Forecast

YoY Change

¥33

¥70

¥70

¥40

¥80

¥135

+¥55

－

－

－

－

¥20

－

-¥20

¥33

¥70

¥70

¥40

¥100

¥135

+¥35

98.2%

93.3%

93.2%

46.9%

48.8%

50.4%

+1.6P

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

- 26 -[SANSHIN CONFIDENTIAL]

Change in Return to Shareholders
03/18 Term
Result03/19 Term
Result03/20 Term
Result03/21 Term
Result03/22 Term
Result03/23 Term
Forecast(1) Consolidated net profit¥947 million¥1,449 million¥1,451 million¥1,646 million¥2,525 million¥3,300 million(2) Comprehensive profit¥912 million¥1,585 million¥666 million¥2,393 million¥4,204 million

-

65.7%

48.3%

57.0%

51.0%

42.1%

40.8%

¥934 million(¥33)¥1,352 million(¥70)¥1,352 million(¥70)¥773 million(¥40)¥1,232 million(¥100)¥1,662 million(¥135)

98.2%

93.3%

93.2%

46.9%

48.8％

50.4％

-

¥19.72 billion(9 million shares)--¥15.74 billion(7 million shares)

Suspense

98.2%

1,454.2%

93.2%

46.9%

672.3％

Suspense(8) Cancellation of treasury stock-

5,000 thousand
shares--8,000 thousand
shares

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

29,281 thousand
shares(28,179 thousand
shares)24,281 thousand
shares(19,178 thousand
shares)24,281 thousand
shares(19,180 thousand
shares)24,281 thousand
shares(19,183 thousand
shares)16,281 thousand
shares(12,183 thousand
shares)

Suspense(10) Net profit per share¥33.62¥67.48¥75.66¥85.82¥171.12¥270.66(11) Net assets per share¥2,191.19¥2,224.47¥2,188.84¥2,249.40¥2,514.04¥2,890.31(3) Consolidated equity ratio(4) Total dividends(Dividend per share)(5) Consolidated payout ratio(6) Value of treasury stock acquired(Number of shares acquired)(7) Total payout ratio (4+6)÷1*1) Total dividends include the dividend amount for shares held by trusts related to the performance-based stock compensation plan for directors (excluding external directors).
The forecast for 03/22 term includes the commemorative dividend ¥20 per share.
2) Net profit per share is calculated based on the average number of issued shares (excluding treasury stock) during the period.
3) Net assets per share is calculated based on the total number of shares issued (excluding treasury stock) at fiscal year end.
4) The forecast for net profit per share and net assets per share for 03/23 term is calculated based on the total number of shares issued (excluding treasury stock) as of March 31, 2022.

- 27 -[SANSHIN CONFIDENTIAL]

Our Corporate Code

TRUST

PRINCIPLESSINCERITY

Business cannot
succeed without trust.
It begins and ends
with trust.

Do not just pursue profit.
But act based onprinciples, which can berealized through selfdiscipline.

Always act sincerely.
Rise to the challengehead-on.

- 28 -[SANSHIN CONFIDENTIAL]