(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 4, 2023

Summary of Financial Results for the First Quarter of the Fiscal YearEnding March 31, 2024
(Three Months Ended June 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:
August 7, 2023
Scheduled date of dividend payment:－Supplementary materials for the quarterly financial results: NoneInvestor conference for the quarterly financial results:
None(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for the First Quarter of March 2024 Term(April 1, 2023 – June 30, 2023)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

1Q March 2024 Term
1Q March 2023 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders of parentcompany%

Million yen%

Million yen%

Million yen%

32,999(7.5)
977(49.9)552 (52.6)
182(76.1)
35,675
45.5
1,953
322.9
1,165
249.6
766
290.4
1Q March 2024 Term: 1,898 million yen (-19.9%) 1Q March 2023 Term: 2,369 million yen (901.8%)
Net profit per share

1Q March 2024 Term
1Q March 2023 TermDiluted net profit per share
YenYen15.00
62.92－－(2) Consolidated financial position
Total assets

Net assets

Million yen

1Q March 2024 Term
March 2023 Term
(Reference) Shareholders’ equity

Equity ratio

Million yen

83,12078,601
1Q March 2024 Term: 34,787 million yen%

34,85441.9
34,252
43.5
March 2023 Term: 34,183 million yen

2. Dividends
1Q-end2Q-endYen

March 2023 Term－
March 2024 Term－
March 2024 Term (forecast)(Note) Revision of most recent forecast on dividends:

NoneDividend per share
3Q-endYear-end

AnnualYenYenYen

Yen

30.00

－105.00

135.00

35.00

－

65.00

100.003. Forecasts for Consolidated Business Performance for March 2024 Term (April 1, 2023 – March 31, 2024)

Net salesFirst half
Full year

Operating profit(% figures represent year-on-year changes)
Net profit attributable to
Net profit per
shareholders ofshareparent company

Ordinary profit

Million yen%

Millionyen%

Million yen%

Million yen%

Yen

73,600157,000(11.3)
(2.5)

1,700
4,400

(60.0)(35.7)

1,260
3,500

(57.1)(36.5)

930
2,600(57.0)(32.2)

76.28
213.25(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):
1Q March 2024 Term:

16,281,373 shares

March 2023 Term:

16,281,373 shares

March 2023 Term:

4,089,037 shares2) Amount of treasury stock at the end of term:
1Q March 2024 Term:

4,089,077 shares3) Amount of average stock during the term (quarterly total):
1Q March 2024 Term:

12,192,317 shares

1Q March 2023 Term:

12,183,569 shares(Note) The amount of treasury stock at the end of the term includes Company stock (1Q March 2024 term: 162,400 shares,March 2023 term: 162,400 shares) possessed in a trust related to the Performance-Based Stock Compensation Planfor 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 (1Q March 2024
term: 162,400 shares, 1Q March 2023 term: 132,800 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 forthe business 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...................................................................... 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(Segment Information and Other) ...................................................................................................................... 81

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 quarter under review, when looking at the global economy, the normalization ofsocioeconomic activities progressed following the COVID-19 pandemic. However, the future remained
uncertain due to the continued strong risk of economic decline caused by factors such as the rising prices ofgoods on a global scale and the resulting monetary tightening in various countries, as well as heightened
geopolitical risk.
In the electronics industry, which is the primary area of business of the Sanshin Electronics Group, adjustment
began for the tight supply and demand which had persisted for items such as semiconductors and electroniccomponents. On the other hand, 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 quarter under review was as follows: Net sales were¥32,999 million (down 7.5% year-on-year), operating profit was ¥977 million (down 49.9% year-on-year),ordinary profit was ¥552 million (down 52.6% year-on-year), and net profit attributable to shareholders of parentcompany was ¥182 million (down 76.1% 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, power semiconductors, LCD driver ICs and memory) and electronic components (includingconnectors, 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, sales decreased year-on-year despite trending firmly in relationto the beginning plan. Profits were impacted by the loss of some highly-profitable projects and an increase in
non-operating expenses such as interest expenses.
As a result, net sales were ¥30,271 million (down 9.8% year-on-year) and segment profit was ¥536 million(down 55.5% 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, 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 were signs of overall recovery with a focus on business related
to information and communication networks for companies.
As a result, net sales were ¥2,727 million (up 29.2% year-on-year) and segment profit was ¥16 million(compared to segment loss of ¥39 million yen in the same period of the previous fiscal year). In the solution
business, net sales tend to be concentrated in the second quarter and fourth quarter.

2(2) Explanation of Financial Position(Assets)
As of June 30, 2023, assets increased ¥4,518 million compared with March 31, 2023, to ¥83,120 million. Thiswas mainly attributable to a ¥2,146 million increase in notes and accounts receivable–trade and a ¥2,757 million
increase in merchandise inventories.
(Liabilities)
As of June 30, 2023, liabilities increased ¥3,917 million compared with March 31, 2023, to ¥48,265 million.
This was mainly attributable to a ¥1,343 million increase in notes and accounts payable–trade and a ¥2,381
million increase in short-term loans payable.
(Net Assets)
As of June 30, 2023, net assets increased ¥601 million compared with March 31, 2023, to ¥34,854 million.
This was mainly attributable to a ¥1,764 million increase in foreign currency translation adjustment and a ¥1,114
million decrease in retained earnings.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
In regard to the forecasts for consolidated business performance and dividends in the full-year and first halfof the fiscal year ending March 31, 2024, we have not revised the forecast figures set forth in the Summary ofFinancial Results for Fiscal Year Ended March 31, 2023 released on May 11, 2023.

3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2023 Term
(As of Mar. 31, 2023)

1Q March 2024 Term
(As of Jun. 30, 2023)

AssetsCurrent assets
Cash and deposits

8,893

7,379

Notes and accounts receivable–trade, and contract assets

35,77936,539

Electronically recorded monetary claims

1,485

2,872

Merchandise inventories

25,002

27,7590

16

Others

1,443

2,411

Allowance for doubtful accounts

(32)

(37)

72,572

76,942

2,617

2,632

358

338

3,103

3,251

Partly-finished work

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

(50)

(44)

Total investments and other assets

3,053

3,206

6,029

6,177

78,601

83,120Notes and accounts payable–trade

13,85815,202

Short-term loans payable

26,82829,209Accrued corporate tax, etc.

958

611

Total non-current assets
Total assets
Liabilities
Current liabilities

637

260

Others

1,428

2,327

Total current liabilities

43,712

47,611

Net defined benefit liabilities

281

274

Others354

379

Total non-current liabilities

636

654

44,34848,265

Allowance

Non-current liabilities

Total liabilities

4

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

1Q March 2024 Term
(As of Jun. 30, 2023)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

14,811

14,81116

16

Retained earnings

25,25524,141

Treasury stock(8,777)(8,777)

Total shareholders’ equity

31,30530,191

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

568

716

Deferred hedge gains (losses)

44

(150)

Foreign currency translation adjustment

2,424

4,189

Remeasurements of defined benefit plans

(160)

(159)

Total accumulated other comprehensive income

2,877

4,596

696634,252

34,85478,601

83,120Non-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 2023 Term
(Apr. 1, 2022 – Jun. 30, 2022)
35,675Net sales(Million yen)
1Q March 2024 Term
(Apr. 1, 2023 – Jun. 30, 2023)
32,999

Cost of sales

31,361

29,628Gross profit on sales

4,314

3,370

Selling, general and administrative expenses

2,361

2,393

Operating profit

1,953

977

Interest income

526

Dividend income

1515Others

1612

Total non-operating profit

3855

Interest expenses

58252

Foreign exchange losses

757

222

95826

480

1,165552

Gain on sales of investment securities

0－

Total extraordinary profits

0－

Loss on retirement of non-current assets

0－Loss on sales of investment securities

0－

Total extraordinary losses0－

Net profit before tax and other adjustments

1,165

552

Corporate, resident and enterprise taxes

340

276

Adjustment for corporate tax, etc.

5296

Total corporate taxes

392372Net profit

773

179

Net profit (loss) attributable to non-controlling interests

6(3)Net profit attributable to shareholders of parent company

766

182

Non-operating profit

Non-operating expenses

OthersTotal non-operating expenses
Ordinary profit
Extraordinary profits

Extraordinary losses

6

(Quarterly Consolidated Comprehensive Income Statement of the First Quarter)

Net profit

1Q March 2023 Term
(Apr. 1, 2022 – Jun. 30, 2022)
773

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

1

147

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

(49)

(195)

Foreign currency translation adjustment

1,649

1,764

(5)

1

1,596

1,718

2,369

1,898

2,362

1,901

6

(3)

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 Going Concern)
None.

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

(Segment Information and Other)[Segment Information]
I. Three months ended June 30, 2022 (Apr. 1, 2022 - Jun. 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 (loss)

Device segment

Solution segment

33,565－33,565
1,205

2,110
－
2,110(39)

Total
35,675－35,675
1,165(Note) The segment profit (loss) is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. 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.

8