(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 6, 2023

Summary of Financial Results for the First Half of the Fiscal YearEnding March 31, 2024
(Six Months Ended September 30, 2023)[Japan Standards] (Consolidated)

Name of Listed Company:
Sanshin Electronics Co., Ltd.
Stock Exchange Listed: Prime Market, Tokyo
Code No.:
8150
URL: http://www.sanshin.co.jp
Representative: Toshiro Suzuki (Representative Director & COO)
Enquiries to:
Jun-ichi Murakami, Director, Operating Officer and Senior General
Tel.: +81-3-3453-5111
Manager of Finance & Accounting Division
Scheduled date of filing of Quarterly Report:
November 7, 2023
Scheduled date of dividend payment:
December 1, 2023
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 2024 Term (April 1, 2023 – September 30, 2023)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

2Q March 2024 Term
2Q March 2023 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

74,311(10.5)
2,837(33.2)
82,994
45.5
4,247
215.5
2Q March 2024 Term: 3,759 million yen (-18.9%);
Net profit per share

2Q March 2024 Term
2Q March 2023 Term

Million yen%

Million yen%

1,877 (36.0)
1,291(40.2)
2,934
155.8
2,160
173.7
2Q March 2023 Term: 4,638 million yen (386.0%)

Diluted net profit per share
Yen

Yen

105.87177.30－－(2) Consolidated financial position
Total assets

Net assets

Million yen

2Q March 2024 Term
March 2023 Term
(Reference) Shareholders’ equity

Equity ratio

Million yen

89,94378,601
2Q March 2024 Term: 36,653 million yen;%

36,73340.8
34,252
43.5
March 2023 Term: 34,183 million yen

2. Dividends
1Q-endMarch 2023 Term
March 2024 Term
March 2024 Term (forecast)

Dividend per share
3Q-end2Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

－
－

30.00
35.00

－

105.00135.00－65.00

100.00(Note) Revision of most recent forecast on dividends:

None3. Forecasts for Consolidated Business Performance for March 2024 Term (April 1, 2023 – March 31, 2024)

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

157,000

(2.5)

4,400

(35.7)

3,500(36.5)

2,600(32.2)

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

None* Annotations(1) Significant subsidiary change in the consolidated cumulative period of this quarter (changes in scope of consolidation):
Newly added: － Excluded: －(2) Application of unique accounting to the preparation of quarterly consolidated financial statements:

None

None

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

None

None

None

None

(4) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
2Q March 2024 Term:

16,281,373 shares

March 2023 Term:

16,281,373 shares

March 2023 Term:

4,089,037 shares

2Q March 2023 Term:

12,185,566 shares2) Amount of treasury stock at the end of term:
2Q March 2024 Term:

4,077,931 shares3) Amount of average stock during the term (quarterly total):
2Q March 2024 Term:

12,194,798 shares(Note) The amount of treasury stock at the end of the term includes Company stock (2Q March 2024 term: 151,200 shares,
March 2023 term: 162,400 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 2024
term: 159,891 shares, 2Q March 2023 term: 130,784 shares).
* This summary of quarterly financial results is not subject to quarterly review by certified public accountants or auditing corporations.
* Cautionary statement regarding forward-looking statements
The projected results and forward-looking statements included in this document reflect the Company’s expectations based on
information available at the time of release, and are not intended as a guarantee that the Company will achieve these targets. The actual
performance may considerably differ from the forecast due to various factors.
See the section “1. Qualitative Information Concerning the Current Quarterly Settlement - (3) Explanation of Forecasts for Consolidated
Business Performance and Other Future Prospects” on page 3 of Appendix, regarding the relevant matters for the above forecast for thebusiness performance.

Contents of Appendix
1. Qualitative Information Concerning the Current Quarterly Settlement ......................................................... 2(1) Explanation of Business Results .................................................................................................................. 2(2) Explanation of Financial Position ................................................................................................................ 3(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects .................. 3
2. Quarterly Consolidated Financial Statements and Main Notes...................................................................... 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(Segment Information and Other) .................................................................................................................... 10

1

1. Qualitative Information Concerning the Current Quarterly Settlement
The items related to the future contained in this document are decisions made based on present consolidated
financial results as of the end of this quarter.
(1) Explanation of Business Results
In the consolidated first-half period under review, the future for the global economy remained uncertain.
Against a background of rising commodity prices, risk of economic downturn deepened as tightening ofmonetary policy persisted in each country and geopolitical risk intensified.
The electronics industry, which is the primary area of business of the Sanshin Electronics Group, continued toconfront inventory adjustment as a recovery in demand for items such as semiconductors and electronic
components stalled. In contrast, in the domestic ICT industry, the IT services market trended firmly against abackground of factors such as renewals and a shift to the cloud in existing corporate systems, and the promotionof DX (Digital Transformation).
Against this background, the Group worked to increase profitability by reforming our business structure andto expand our business in growth markets. Specifically, in the device business, we worked to expand our existing
businesses and establish a new profit structure. In the solution business, we strove to grow the business based onservice provision, expand our digital technology, and expand our customer platform.
As a result, business performance in the consolidated first half-period under review was as follows. Net sales
were ¥74,311 million (down 10.5% year-on-year), operating profit was ¥2,837 million (down 33.2% year-onyear), ordinary profit was ¥1,877 million (down 36.0% year-on-year), and net profit attributable to shareholdersof parent company was ¥1,291 million (down 40.2% 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 half-period 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 ordinary
profit.
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-half period under review, sales decreased year-on-year despite trending favorably in
relation to the beginning plan. Profits were impacted by the loss of some highly-profitable projects and anincrease in non-operating expenses such as interest expenses.
As a result, net sales were ¥67,691 million (down 12.9% year-on-year) and segment profit was ¥1,317 million(down 50.4% 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-half period under review, when compared to the same period of the previous fiscal
year, in which there were serious procurement difficulties for servers and communications equipment due to tightsupply and demand for semiconductors, etc., there was a trend of overall recovery with a focus on business
related to information and communication networks for companies.
2

As a result, net sales were ¥6,619 million (up 26.3% year-on-year) and segment profit was ¥559 million (up103.2% year-on-year).
(2) Explanation of Financial Position(Assets)
As of September 30, 2023, assets increased ¥11,341 million compared with March 31, 2023, to ¥89,943
million. This was mainly attributable to an ¥8,216 million increase in notes and accounts receivable–trade and a¥2,510 million increase in merchandise inventories.
(Liabilities)
As of September 30, 2023, liabilities increased ¥8,860 million compared with March 31, 2023, to ¥53,209
million. This was mainly attributable to a ¥3,098 million increase in notes and accounts payable–trade and a¥5,771 million increase in short-term loans payable.
(Net Assets)
As of September 30, 2023, net assets increased ¥2,481 million compared with March 31, 2023, to ¥36,733
million. This was mainly attributable to a ¥2,396 million increase in foreign currency translation adjustment.
(Cash Flows)
As of September 30, 2023, cash and cash equivalents decreased ¥1,903 million compared with March 31,
2023, to ¥6,989 million. This was due to expenses caused by factors such as an increase in notes and accounts
receivable–trade, which exceeded income from sources such as short-term loans payable.
(Operating activities)
Net cash used in operating activities during the consolidated first-half period under review totaled ¥5,049
million. This was due to expenses caused by factors such as an increase in notes and accounts receivable–
trade, which exceeded income from sources such as appropriation of net profit before tax and otheradjustments and increase in notes and accounts payable–trade. Compared to the previous consolidated firsthalf period, this represented an expense decrease of ¥7,609 million.
(Investing activities)
Net cash provided by investing activities during the consolidated first-half period under review totaled¥45 million. This was due to income from sources such as sales of investment securities, which exceeded
expenses caused by factors such as purchase of property and equipment and purchase of software. Comparedto the previous consolidated first-half period, this represented an income rise of ¥19 million.
(Financing activities)
Net cash provided by financing activities during the consolidated first-half period under review totaled¥2,835 million. This was due to income as the result of factors such as an increase in short-term loans payable,
which exceeded expenses caused by factors such as cash dividends paid. Compared to the previous
consolidated first-half period, this represented an income decrease of ¥7,217 million.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
Business results were favorable in the consolidated first-half period under review, exceeding the original
forecast announced on May 11, 2023. Also, greater-than-projected depreciation of the Japanese yen is providing
a tailwind for Group business results. However, a key factor in the favorable business results of the consolidated
first-half period was anticipation of projects brought forward from original plans. Moreover, prospects for thesemiconductor market remain uncertain. It is impossible to assess sufficiently at this time the degree of impact
these factors will have on business results. Accordingly, consolidated business performance and year-end
dividends for March 2024 term remain unchanged from the forecast figures announced on May 11, 2023. The
Group will monitor conditions closely and will disclose any results requiring disclosure as soon as it makes suchdetermination.
3

(Forecasts for Consolidated Business Performance for March 2024 Term)
Net sales¥157,000 million (down 2.5% year-on-year)
Operating profit¥4,400 million(down 35.7% year-on-year)
Ordinary profit¥3,500 million(down 36.5% year-on-year)
Net profit attributable to shareholders of parent company ¥2,600 million(down 32.2% year-on-year)
Year-end dividend¥65 per share(annual dividend ¥100 per
share including the interim
dividend)42. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2023 Term
(As of Mar. 31, 2023)

2Q March 2024 Term
(As of Sept. 30, 2023)

Cash and deposits

8,893

6,989

Notes and accounts receivable–trade, and contract assets

35,77943,898

Electronically recorded monetary claims

1,485

1,583

Merchandise inventories

25,002

27,513

AssetsCurrent assets

033

Others

1,443

3,758

Allowance for doubtful accounts

(32)

(40)

72,572

83,736

2,617

2,617

358

342

3,103

3,304

Partly-finished work

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

(50)

(57)

Total investments and other assets

3,053

3,247

6,029

6,206

78,601

89,943

Notes and accounts payable–trade

13,858

16,956

Short-term loans payable

26,82832,599Accrued corporate tax, etc.

958

498

Allowance

637

530

Total non-current assets
Total assets
Liabilities
Current liabilities

Others

1,428

1,988

Total current liabilities

43,712

52,574

Net defined benefit liabilities

281

274

Others354

360

Total non-current liabilities

636

635

44,34853,209Non-current liabilities

Total liabilities

5

(Million yen)March 2023 Term
(As of Mar. 31, 2023)

2Q March 2024 Term
(As of Sept. 30, 2023)

14,811

14,81116

16

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings

25,25525,249Treasury stock(8,777)(8,758)

Total shareholders’ equity

31,30531,318

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

568

803

Deferred hedge gains (losses)

44

(131)

Foreign currency translation adjustment

2,424

4,820

Remeasurements of defined benefit plans

(160)

(157)

Total accumulated other comprehensive income

2,877

5,334

69

80

34,252

36,73378,601

89,943

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

6

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

2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)
82,994

Net sales(Million yen)
2Q March 2024 Term
(Apr. 1, 2023 - Sept. 30, 2023)
74,311

Cost of sales

73,826

66,579Gross profit on sales

9,168

7,731

Selling, general and administrative expenses

4,920

4,893

Operating profit

4,247

2,837

Interest income

1254

Dividend income

23

20

Others45

47

Total non-operating profit

81

122

Non-operating profit

Non-operating expenses
208

531

1,161

537

24

13

1,395

1,082

2,934

1,877

Gain on sales of investment securities

31

14

Total extraordinary profits

31

14

Loss on retirement of non-current assets

00Loss on sales of investment securities

1－

Total extraordinary losses

10

Net profit before tax and other adjustments

2,963

1,892

Corporate, resident and enterprise taxes

816

551

Adjustment for corporate tax, etc.

(26)

39

Total corporate taxes

789

590

2,174

1,302

13

11

2,160

1,291

Interest expenses
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses

Net profit
Net profit attributable to non-controlling interests
Net profit attributable to shareholders of parent company

7

(Quarterly Consolidated Comprehensive Income Statement of the First Half)
2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)
2,174

Net profit

2Q March 2024 Term
(Apr. 1, 2023 - Sept. 30, 2023)
1,302

Other comprehensive income
7

Valuation difference on available-for-sale securities

234

Deferred hedge gains (losses)

(42)

(176)

Foreign currency translation adjustment

2,510

2,396

Remeasurements of defined benefit plans, net of tax

(11)

3

Total other comprehensive income

2,464

2,457

4,638

3,759

4,624

3,748

13

11

Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests8

(3) Statement of Quarterly Cash Flows(Million yen)
2Q March 2023 Term
(Apr. 1, 2022 - Sept. 30, 2022)

2Q March 2024 Term
(Apr. 1, 2023 - Sept. 30, 2023)

Operating activities
2,963

1,892

Depreciation and amortization

150

147

Amortization of goodwill

13

13

Increase (decrease) in allowance for doubtful accounts

7

14

Increase (decrease) in allowance for stock compensation(2)

5

Increase (decrease) in net defined benefit liabilities

(37)

(11)

Interest and dividend income

(36)

(74)

Interest expenses

208

531

Net profit before tax and other adjustments

(29)

(14)

Decrease (increase) in notes and accounts receivable–trade(7,693)(4,690)Decrease (increase) in inventories(7,487)(1,086)

Increase (decrease) in notes and accounts payable–trade

3,187

1,468

Decrease (increase) in consumption taxes refund receivable(3,147)(2,445)

Increase (decrease) in accrued consumption taxes

9

(10)

Others9704

Subtotal(11,882)(3,558)39

78

Loss (gain) on sales of investment securities

Interest and dividend income received
Interest expenses paid

(208)

(529)

Income taxes (paid) refund(606)(1,039)(12,658)(5,049)Purchase of property and equipment

(27)

(20)

Purchase of software

(18)

(45)

Purchase of investment securities(0)－

Proceeds from sales of investment securities

72

113

Others(1)(2)

Net cash provided by investing activities

25

45

10,954

4,170

Repayments of lease obligations

(44)

(45)

Net decrease (increase) in treasury stock

(0)

(0)

Cash dividends paid

(856)

(1,289)Net cash provided by financing activities

10,052

2,835

Net cash used in operating activities
Investing activities

Financing activities
Net increase (decrease) in short-term loans payable

273

264

Net increase (decrease) in cash and cash equivalents(2,306)(1,903)

Balance of cash and cash equivalents, beginning of the period

9,307

8,893

Balance of cash and cash equivalents, end of the period

7,001

6,989

Effect of exchange rate change on cash and cash equivalents9(4) Notes on Quarterly Consolidated Financial Statements(Notes Regarding Going Concern)
None.

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

(Segment Information and Other)[Segment Information]
I. Six months ended September 30, 2022 (Apr. 1, 2022 - Sept. 30, 2022)
Information regarding the amounts of sales, profit or loss in each report segment(Million yen)

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

Device segment

Solution segment

77,752－77,752
2,658

5,242
－
5,242
275

Total
82,994－82,9942,934(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Six months ended September 30, 2023 (Apr. 1, 2023 - Sept. 30, 2023)
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

67,691－
67,691
1,317

6,619
－
6,619
559

Total
74,311－
74,311
1,877(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

10