Sanshin Electronics Co., Ltd. (8150) 3Q 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.)

February 3, 2022

Summary of Financial Results for the First Three Quarters of the Fiscal YearEnding March 31, 2022
(Nine Months Ended December 31, 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:
February 8, 2022
Scheduled date of dividend payment:―
Supplementary materials for the quarterly financial results: None
Investor conference for the quarterly financial results:
None(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Three Quarters of March 2022 Term(April 1, 2021 – December 31, 2021)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

3Q March 2022 Term
3Q March 2021 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

89,222
5.3
2,352
121.0
84,760(12.0)
1,064(23.4)
3Q March 2022 Term: 2,117 million yen (383.0%);
Net profit per share

Million yen%

Million yen

%

1,939
119.1
1,400
115.4
885 (30.3)
650(24.3)
3Q March 2021 Term: 438 million yen (-36.0%)

Diluted net profit per share
Yen

Yen

3Q March 2022 Term
89.83－
3Q March 2021 Term
33.91－
(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 3Q 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%

3Q March 2022 Term
72,05928,596
39.6
March 2021 Term
84,602
43,21051.0(Reference) Shareholders’ equity 3Q March 2022 Term: 28,540 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 3Q March 2022 term are after application of the
Accounting Standard, etc.

Sanshin Electronics Co., Ltd. (8150) 3Q 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

70.00

100.00March 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

120,000

6.4

3,500

61.5

3,100

65.0

2,300

39.7

155.89(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

(4) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
3Q March 2022 Term:

16,281,373 shares

March 2021 Term:

24,281,373 shares

March 2021 Term:

5,097,465 shares

3Q March 2021 Term:

19,182,110 shares2) Amount of treasury stock at the end of term:
3Q March 2022 Term:

4,097,658 shares3) Amount of average stock during the term (quarterly total):
3Q March 2022 Term:

15,594,690 shares(Note) The amount of treasury stock at the end of the term includes Company stock (3Q 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 (3Q March 2022
term: 132,800 shares, 3Q March 2021 term: 134,814 shares).

Sanshin Electronics Co., Ltd. (8150) 3Q 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 forthe business performance.

Sanshin Electronics Co., Ltd. (8150) 3Q 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...................................................................... 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(Change of Accounting Principles) .................................................................................................................. 10(Segment Information and Other) .....................................................................................................................111

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

1. Qualitative Information Concerning the Current Quarterly Settlement(1) Explanation of Business Results
During the consolidated first three quarters under review, conditions were overall challenging in the global
economy. While economic recovery progressed, particularly in China, Europe and the United States, theemergence of new COVID-19 variants caused a rapid expansion in new cases from the third quarter, leaving noend in sight for the COVID-19 pandemic. An uncertain outlook lingered.
In the electronics industry, a vital area of business for the Sanshin Electronics Group, shortages of inputs suchas semiconductors and electronic components persisted, impacting manufacturing of automobiles, electronic
devices and other products that incorporate them. However, investment in digital transformation (DX) was firmin the domestic ICT industry.
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 nine-month period under review was as follows.
Net sales were ¥89,222 million (up 5.3% year-on-year). In terms of profit, operating profit was ¥2,352 million(up 121.0% year-on-year), while ordinary profit was ¥1,939 million (up 119.1% year-on-year). Net profit
attributable to shareholders of parent company was ¥1,400 million (up 115.4% 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, 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.
Sales trended favorably in the consolidated first three quarters under review. Sales of products of Renesas
Electronics Corporation declined, due to the cancellation of a dealership agreement with that company in June
2020. However, sales of products of overseas semiconductor manufacturers advanced, while the Company
expanded commercial rights with existing suppliers and acquired commercial rights with new suppliers. Net
sales were ¥81,359 million (up 6.8% year-on-year). Segment profit was ¥1,536 million (up 628.3% year-onyear), as revenue increased and the Company trimmed selling, general and administrative expenses.
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
seamlessly integrated service from design and construction to operation and maintenance, responding to
revolutionary technologies such as AI and IoT and advances in technology made possible by cloud development.
In the consolidated first three quarters under review, sales were sluggish overall, as a squeeze in semiconductor
supplies caused stagnation in sourcing of certain products. Net sales were ¥7,863 million (down 8.1% year-onyear). Segment profit was ¥402 million (down 40.3% year-on-year), impacted by an increase in selling, generaland administrative expenses caused by an increase in staffing levels.
(2) Explanation of Financial Position(Assets)
As of December 31, 2021, assets decreased ¥12,543 million compared with March 31, 2021, to ¥72,059
million. This was mainly attributable to a ¥16,120 million decrease in cash and deposits and a ¥4,184 million
increase in merchandise inventories.

2

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

(Liabilities)
As of December 31, 2021, liabilities increased ¥2,070 million compared with March 31, 2021, to ¥43,462
million. This was mainly attributable to a ¥2,074 million increase in short-term loans payable.
(Net Assets)
As of December 31, 2021, net assets decreased ¥14,613 million compared with March 31, 2021, to ¥28,596
million. This was mainly attributable to a ¥5,329 million decrease in capital surplus from retirement of treasury
stock and an ¥11,575 million decrease in retained earnings.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
Based on business progress until the consolidated first three quarters of the Group and on information which
is currently available, the Group revised as shown below the values for the full-year business forecast for theyear ending March 31, 2022, which was announced on November 5, 2021. For dividends, in conjunction withchanges to the forecast value for net profit attributable to shareholders of parent company for the March 2022
term, the Group revised as shown below the forecast value for the year-end dividend announced on November
5, 2021.
For details, please refer to the “Notice Regarding Revision of Forecast of Business Results and Revision(Increase) of Dividend Forecast” announced today.
(Forecasts for Consolidated Business Performance for March 2022 Term)
Net sales¥120,000 million (up 6.4% year-on-year)
Operating profit¥3,500 million(up 61.5% year-on-year)
Ordinary profit¥3,100 million(up 65.0% year-on-year)
Net profit attributable to shareholders of parent company ¥2,300 million(up 39.7% year-on-year)
Year-end dividend¥70 per share(annual dividend ¥100 per
share including the interim
dividend)3

Sanshin Electronics Co., Ltd. (8150) 3Q 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)

3Q March 2022 Term
(As of Dec. 31, 2021)

Cash and deposits

25,544

9,423

Notes and accounts receivable–trade32,696--32,288841

1,045

14,333

18,517

9

67

4,520

4,365

AssetsCurrent assets

Notes and accounts receivable–trade, and contract assets
Electronically recorded monetary claims
Merchandise inventories
Partly-finished work
Others(9)(25)

77,93465,682

2,701

2,661

482

489

Others

3,520

3,261

Allowance for doubtful accounts

(35)

(35)

Total investments and other assets

3,484

3,225

6,668

6,376

84,602

72,059Notes and accounts payable–trade

13,104

13,484

Short-term loans payable

25,351

27,425

Accrued corporate tax, etc.

288

272

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

296

Others

1,730

1,623

Total current liabilities

40,975

43,101

Net defined benefit liabilities

100

65

Others316

295

Total non-current liabilities

416

360

41,392

43,462

Allowance

Non-current liabilities

Total liabilities

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

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

3Q March 2022 Term
(As of Dec. 31, 2021)

Capital stock

14,811

14,811

Capital surplus

5,329

-

Net assets
Shareholders’ equity

Retained earnings

33,106

21,530Treasury stock(10,348)(8,773)

Total shareholders’ equity

42,89927,568Valuation difference on available-for-sale securities

583

553

Deferred hedge gains (losses)

(133)

(8)

Foreign currency translation adjustment

(244)

376

Remeasurements of defined benefit plans

47

49

Total accumulated other comprehensive income

253

971

58

56

43,21028,596

84,602

72,059

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5Sanshin Electronics Co., Ltd. (8150) 3Q 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 Three Quarters)

3Q March 2021 Term
(Apr. 1, 2020 – Dec. 31, 2020)
84,760Net sales(Million yen)
3Q March 2022 Term
(Apr. 1, 2021 – Dec. 31, 2021)
89,222

Cost of sales

77,11180,143Gross profit on sales

7,649

9,079

Selling, general and administrative expenses

6,584

6,727

Operating profit

1,064

2,352

Interest income

13

14

Dividend income

31

38

Others62

90

Total non-operating profit

107

142

Interest expenses

61

81

Sales discounts

7

11

Commission for purchase of treasury stock-

21

Foreign exchange losses

178

398

Others39

42

Total non-operating expenses

287

555

885

1,939

Gain on sales of investment securities

141

0

Total extraordinary profits

141

0Loss on sales of non-current assets

0-Loss on retirement of non-current assets

00Loss on valuation of investment securities

0-

Total extraordinary losses00

Net profit before tax and other adjustments

1,026

1,939

Corporate, resident and enterprise taxes

237

370

Adjustment for corporate tax, etc.

137

169

Total corporate taxes

374

540

Net profit

651

1,399

Net profit (loss) attributable to non-controlling interests

0(1)

Net profit attributable to shareholders of parent company

650

1,400

Non-operating profit

Non-operating expenses

Ordinary profit
Extraordinary profits

Extraordinary losses

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

(Quarterly Consolidated Comprehensive Income Statement of the First Three Quarters)
3Q March 2021 Term
(Apr. 1, 2020 – Dec. 31, 2020)
651

Net profit

3Q March 2022 Term
(Apr. 1, 2021 – Dec. 31, 2021)
1,399

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred hedge gains (losses)
Foreign currency translation adjustment
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-controllinginterests

7

150

(30)

3

125

(387)

621

20

1

(213)

718

438

2,117

437

2,118

0

(1)

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

(3) 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.

8

Sanshin Electronics Co., Ltd. (8150) 3Q 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

Retirement of Treasury StockAt the November 5, 2021 meeting of its Board of Directors, the Company resolved to retire treasury stock based on
Article 178 of the Companies Act. The purposes of this action were to improve the Company’s stock circulation ratio andfulfill the criteria for continued listing in the Prime Market. On November 19, 2021 the Company retired 8,000,000 shares.
With this move, treasury stock decreased in value by ¥17,318 million, capital surplus by ¥5,329 million and retained
earnings by ¥11,988 million.

9

Sanshin Electronics Co., Ltd. (8150) 3Q 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.

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

(Segment Information and Other)[Segment Information]
I. Nine months ended December 31, 2020 (Apr. 1, 2020 – Dec. 31, 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

Device segment

Solution segment

76,206－76,206
211

8,554
－
8,554
674

Total
84,760－84,760885(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Nine months ended December 31, 2021 (Apr. 1, 2021 – Dec. 31, 2021)
1. Information regarding the amounts of sales, profit or loss in each report segment(Million yen)

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

Device segment

Solution segment

81,359－81,359
1,536

7,863
－
7,863
402

Total
89,222－
89,222
1,939(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
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.

11