Briefing Materials on
the Financial Results for
the Year Ended March 2022
May 20, 2022
SANSHIN ELECTRONICS CO., LTD.
Toshiro Suzuki, Representative Director, COO(Stock code: 8150)
1

SANSHIN ELECTRONICS CO., LTD.

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/electronicparts 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 lineupand detailed system of both domestic and overseas sales.

Solution Business― Building up social infrastructures interconnected
through ICT ―With information and telecommunications network at thecore of our operations, we are committed to proposing andbuilding up the optimal system to fit our customers’
needs. We provide our customers with a safe and reliableinfrastructure through bundled services, including a
support menu, after the system implementation.

2

I. Year Ended March 2022
Performance Summary

SANSHIN ELECTRONICS CO., LTD.
3

Year Ended March 2022
Consolidated Performance Summary

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Net sales increased by 10% year-on-year, profit increased significantly due to growing sales despite
higher SG&A expenses, and ROE increased to 6.8%.
03/21 Result
Net Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit Attributable to
Shareholders of Parent Company

ROE
AnnualDividend Per
Share

Ordinary Dividend
Commemorative
Dividend

Total

Payout Ratio
Exchange Rate
(1 US dollar)

7.9%
1.9%
1.7%
1.5%

Achievement
Ratio

YoY Change

1,235.8
10.9%
110.5
135.3
7.5%
88.8
93.2
3.4%
21.7
42.1
2.9%
18.8
35.6
2.0%
16.5
25.3

110%

3.9%
¥40
－
¥40

6.8%
¥80
¥20
¥100

+2.9P Not announced
+¥40
¥80
+¥20
¥20
+¥60
¥100

－
±¥0
±¥0
±¥0

46.9%

48.8%

+1.9P Not announced－¥106.06¥112.38¥6.32 Not announced－

1,127.9
9.8%

Forecast*1)

03/22 Result

1,200.0103%

122% Not announced－

105% Not announced
2.9%
194%
35.0
2.6%
189%
31.0
1.9%
153%
23.0

－
120%
115%
110%

*1) Figures in the Forecast section are based on results announced for the third quarter of the fiscal year ended March 31,
2022 (announced on February 3, 2022).
*2) Figures in the YoY Change section for ROE, annual dividend per share, payout ratio and exchange rate, and inAchievement Ratio section for annual dividend per share represent increases or decreases.

4Year Ended March 2022
Year-to-Year Comparison of Consolidated Ordinary Profit

SANSHIN ELECTRONICS CO., LTD.

● Increase in SG&A expenses
Approx. ¥0.44 bn
Mainly logistics costs such as
packing and freight expenses andfreight forwarder expenses○ Increase in gross profit
Approx. ¥2.06 bn
Also impacted by increased net sales in thedevice business and temporary factors
including tight supply and demand forsemiconductors○Improvement in non-operating profit Approx. ¥0.06 bn*1)

Ordinary
Profit¥1.88 bn

03/21 Term
ResultOrdinary
Profit¥3.56 bn

Increase of approx. ¥1.68 bn*1) 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.

03/22 Term
Result5

Year Ended March 2022
Consolidated Performance Summary by Segment

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Device Business→ We cancelled our dealership agreement with Renesas Electronics Corporation in June of the previous fiscal year, and sales of products from Renesas
decreased as a result. However, overall sales were strong due to factors such growth of products of overseas semiconductor manufacturers, expansion ofcommercial sales rights of existing suppliers, and acquisition of commercial sales rights of new suppliers.
→ There were also temporary factors including the tight supply and demand for semiconductors, etc., and we achieved increased segment profit.
■ Solution Business→ Although sales were strong in the video systems field, overall sales in other fields stagnated due to factors such as late delivery of products caused by thetight supply and demand for semiconductors.
→ Although gross profit margin was nearly the same as the previous fiscal year, segment profit fell due to decreased net sales and increased SG&A expenses
caused by a higher number of employees.
03/21 Term
ResultNet Sales
DeviceBusiness

Operating
ProfitSegment
Profit989.9

Operating
ProfitSegment
ProfitExchange rate (1 US dollar)

YoY Change

1,105.2

112%

40.1

255%

1.7

21.9

1265%

138.0

130.6

95%

18.3

87%

17.1

13.7

80%

¥106.06¥112.38

¥6.32

1.6%

3.6%
15.7

0.2%

Net Sales
Solution
Business

03/22 Term
Result

2.0%

15.2%

14.0%
21.0

12.4%

10.5%

*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.
6Year Ended March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million+12%

By Business Category of Device Business
1,105【Year-to-Year Comparison of Fluctuations】
990

244
Strategic Device

155

390
Core Device

431

Volume Business

404

471

■ Volume Business○ Sales for mobile devices were strong○ Recovery for social infrastructure■ Core Device● Significant decrease due to cancellation of dealership agreementwith Renesas EL○ Sales for gaming consoles were strong○ Increase for industry, vehicle-mounted business, storage, etc.
○ Increase in commercial sales rights of existing suppliers■ Strategic Device○ Increase in overseas merchandise such as wirelessmerchandise/analog semiconductors○ Acquisition of commercial sales rights of new suppliers
YoY Change

03/21 Term

03/22 Term

Volume Business+17%

Core Device-10%Strategic Business

+58%

7

Year Ended March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

+12%

By Supplier of Device Business
1,105

990
Other

219

ElectromechanicalParts Manufacturers

490【Year-to-Year Comparison of Fluctuations】■ Renesas EL

198

159

Overseas
Manufacturers

Unit: ¥100 million

356● Significant decrease due to cancellation of dealership agreement■ Electromechanical Parts Manufacturers○ Sales for mobile devices and gaming consoles were strong■ Overseas Manufacturers○ Increase in sales for industry, vehicle-mounted business, storage, etc.
○ Also contribution from strategic devices such as wirelessmerchandise/analog semiconductors○ Expansion of commercial sales rights of existing suppliers andacquisition of commercial sales rights of new suppliers■ Other○ Recovery for social infrastructure542
YoY Change

Renesas EL

122
903/21 Term

03/22 Term

Renesas EL-92%

Electromechanical Parts Manufacturers+11%

Overseas Manufacturers

+63%

Other

+25%

8

Year Ended March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

-5%

Unit: ¥100 million

By Sector of Solution Business

138.0
130.6
Video Systems

16.1
17.9

AP Software

27.3
26.7

Embedded
Systems

27.1

PublicSystems

36.5

NW

23.6

31.0

03/21 Term

【Year-to-Year Comparison of Fluctuations】■ NW● Sluggish due to careful IT infrastructure investment by customers■ Public Systems● Decrease due to inability to solve delivery problems■ Embedded Systems● Decrease due to delivery problems for computers, servers, etc.
■ AP Software● Decrease in new development projects■ Video Systems○ Increase in demand for streaming
YoY Change

33.2

29.2

NW

-6%

Public Systems-9%

Embedded Systems-13%

AP Software-2%

Video Systems+11%

03/22 Term

9

Year Ended March 2022
Consolidated Financial Situation

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Regarding the results of the fiscal year ended March 31, 2022, total assets were ¥72.8 bn (down ¥11.8 bn from theend of the previous fiscal year) and the equity ratio was 42.1% (down 8.9% from the end of the previous fiscal year).
→ Cash and deposits and net assets decreased due to acquisition of treasury stock, and accounts receivable, accounts payable,
and inventories increased due to growth in net sales.
→ Operating cash flows increased by ¥2.19 bn due in part to liquidation of receivables.
1) Balance Sheets

Cash and deposits
Accounts receivable

FY EndedMar. 20
Result (A)FY EndedMar. 21
Result (B)

184.4

255.4

283.9

335.4

2) Cash Flows

B-A
Increase/
Decrease

FY EndedMar. 22
Result (C)C-B
Increase/
Decrease

71.0

93.1

-162.4

51.5

358.7

23.3

FY Ended Mar. FY Ended Mar. FY Ended Mar.
20 Result
21 Result
22 Result
Decrease (increase) in
accounts receivabletrade
Decrease (increase) ininventories
Increase (decrease) in
accounts payable-trade

Inventories

161.7

143.4

-18.2

197.3

53.9

Other assets

106.6

111.8

5.2

79.0

-32.8

Total assets

736.6

846.0

109.4

728.1

-117.9Operating C/F

140.4

131.1

-9.3

144.6

13.5

Investing C/F

Accounts payable
Interest bearing
liabilities
Other liabilities
Total net assets
Total liabilities
and net assets
Equity ratio

149.5

253.5

104.0

244.3

-9.2

26.4

29.4

3.0

32.4

3.1

420.3

432.1

11.8

306.8

-125.3

736.6

846.0

109.4

728.1

-117.9

57.0%

51.0%

-6.0%

42.1%

-8.9%

183.4

-46.3

-0.1

-15.8

18.9

-45.6

-41.6

-11.2

2.3

-5.3

21.7

65.3

120.7

-16.9

21.9

-2.7

-3.8

-1.5

-102.989.3-185.9

-1.3

2.4

3.1

13.8

71.0

-162.4

184.4

255.4

93.1

Other

Financing C/F
Foreign currency
conversion adjustments
Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end

10

Year Ended March 2022
Return to Shareholders

SANSHIN ELECTRONICS CO., LTD.

● 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 abalance between rewarding of shareholders, investment to gain opportunities for growth, attainment ofsufficient retained earnings to enable sustainable growth, and improvement in capital efficiency. Under thispolicy, the Company has set a target for its dividend payout ratio of around 50% on a consolidated basis.

● Dividends for the Year Ended March 31, 2022
・ In conjunction with the policy on distribution of profits listed above, we plan to distribute profit as follows.
⇒An annual dividend of ¥100 per share; consolidated dividend payout ratio of 48.8%
・ Ordinary dividend of ¥80 (midterm dividend of ¥10, term-end dividend of ¥70)
・ 70th anniversary commemorative dividend of ¥20 (implemented in conjunction with midterm
dividend)
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 YoY Change

¥33

¥70

¥70

¥40

¥80

+¥40

－

－

－

－

¥20

+¥20

¥33

¥70

¥70

¥40

¥100

+¥60

98.2%

93.3%

93.2%

46.9%

48.8%

+1.9P

11

Ⅱ．Progress of the V73 MediumTerm Management Plan

SANSHIN ELECTRONICS CO., LTD.
12SANSHIN ELECTRONICS CO., LTD.

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 ourbusiness portfolio)■ 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 capitalefficiency through measures 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 yearof V73(fiscal year ending March 31, 2024)

ROE

Change from 5% or higher to 6% orhigher with the goal of shareholders’equity cost

Ordinary profit¥2.5 bn or higher

Net profit attributable toshareholders of parent company¥1.8 bn or higher
13

Overview of V73 Medium-Term Management Plan (Quantitative Targets)

SANSHIN ELECTRONICS CO., LTD.

6.8%

2.8%

3.4%

6.7%

ROS

2.9%

1,573

2.2%

1.7%

1.5%

1.2%

ROE
6% or more

3.9%

1.5%
1.1%

Unit: ¥100 million

1,479
1,231

1,315

1,236

1,128

Net sales

35.6
29.0
25.3

17.4

17.9

9.5
03/18 Term

14.5
03/19 Term

18.6
14.5
03/20 Term

Ordinary profit¥2.5 bn or more

18.8
21.0

16.5

03/21 Term

03/22 Term

Net profit¥1.8 bn or more

03/23 Term
Forecast

14

SANSHIN ELECTRONICS CO., LTD.

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

Measures of MediumTerm Management Plan

Expand existing
businesses andimprove
profitability

Contents of Measures

Targeted Effect and Progress Status(1) Shift resources to overseas semiconductors

Targeted Effect(2) Acquire new customers from existing overseas suppliers・ Increase segment profit to net sales(3) Reorganize the managed customers in sales units and improve the efficiency of・ Increase net sales of overseas semiconductor manufacturers

sales promotion(4) Promote the increased efficiency of sales activities

Progress Status: Excellent

・ Currently reviewing the reform of existing sales support systems/establishment

・ Segment profit to net sales: 2.0%

of new systems and establishment of new mechanisms(initially 0.1% for full plan period)
・ Net sales of overseas semiconductor manufacturers at 163%

Device Business

YoY
・ Continuing efforts for increasing efficiency of sales activities

Establish new
profit structure(reform portfolio)(1) Focus on provision of total solutions (AI/IoT, robotics, vehicle-mounted)(2) AI/IoT related
・ Strengthen activities (surveillance solutions, etc.) for municipalities, engage innew business negotiations
・ Start expansion of sales to manufacturing industry, expand merchandise for IoT
security(3) Robotics field・ Start activities, established new organization, complete development of original
boards・ Strengthen collaboration with business partners, aim to acquire new customers(4) Vehicle-mounted field・ Complete development of original modules, start expansion of sales for
proposal type software

Targeted Effect・ Acquire customers in new markets (including nonelectronics)
・ Improve segment profit to net sales
Progress Status: Fair
・ Started efforts to acquire customers in new markets
・ Time is required to contribute to segment profit rate

15

SANSHIN ELECTRONICS CO., LTD.

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

Measures of MediumTerm Management
Plan

Contents of Measures

Targeted Effect and Progress Status

Solution Business

Targeted Effect
Secure stable stock profit

Grow businessbased on service
provision(1) Establish a service provision model utilizing mega cloud (AWS, MS Azure,etc.) infrastructure(2) Collaborate with cloud integrators and partners, strengthen consulting sales(3) Expand Sanshin Data Center business(hosting + operation maintenance, cloud connection service)(4) Develop unique services(enhance services such as cloud backup, file box, etc.)

Targeted Effect
Increase sales in the solution business

Expand digitaltechnology(1) Respond to evolving security technology
・Start 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.)(1) Cooperate with outside consultants, start activities for expansion into new
business domains(2) Identify new merchandise, expand free promotional merchandise(3) Promote cross-sales through cooperation inside of divisions(4) Develop new markets for mobile relay equipment(5) Incorporate DX demand

Targeted EffectExpand business domains and identify new revenue sources

Expandcustomerplatform

Progress Status: Fair
Amidst an accelerating shift from stock business centered on
hardware to a business based on service provision, developing
and enhancing a cloud service menu through collaboration withpartners

Progress Status: GoodEntering the customer proposal phase incorporating newtechnology

Progress Status: Fair
Currently promoting cross-sales by strengthening pre-sales andpromoting new merchandise/expansion of suppliers acrossdifferent businesses

16

SANSHIN ELECTRONICS CO., LTD.

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

Measures of MediumTerm Management
Plan

Contents of Measures

Targeted Effect and Progress Status

1) Implement flexible capital policy including acquisition of treasury stock

Targeted Effect・ Based on future demand for funds, we executed a treasury stock tender offer for

Improve ROE

7 million shares (equivalent to 28.83% of outstanding shares at that time; valueof ¥15.7 bn) to optimize the scale of our equity.

Progress Status: Excellent
・ As a result of optimizing the scale of equity, ROE for the fiscal
year ended March 21, 2022 exceeded the initial V73

Improving capitalefficiency

2) Continue dividends with a consolidated payout ratio of around 50%

quantitative target (5%).

・ Increase dividend from the previous fiscal year (¥40 to ¥100 per share) due to・ Maintaining an equity ratio of at least 40%, which is the level

execution of a tender offer for treasury stock, an increase in net profit

required to continue stable business transactions.

attributable to shareholders of parent company, and the payment of a・ Moving forward, we will transition to efforts for ensuringcommemorative dividend (¥20 per share) for the Company’s 70th anniversaryfinancial soundness while maintaining the current scale ofequity.

3) Maintain financial soundness and ensure the mobility and stability of fundprocurement
・ Entered into a commitment line contract (from August 31, 2021)

17

SANSHIN ELECTRONICS CO., LTD.

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

Measures ofMedium-Term
Management Plan

Contents of Measures

Targeted Effect and Progress Status(1) Efforts for issues regarding sustainability (SDGs, ESG)

Targeted Effect・ Disclose targets for ensuring diversity (December 2021)

・ Establish a management base for sustainable growth and[Targets for management position ratio]

formulate a strategic scenario.

Women: 10% (by March 31, 2031)

・ Strengthen responsibility of explanation toward stakeholders.

Foreigners: Continue to maintain 10% or higher

Mid-career hires: Continue to maintain 30% or higher

Progress Status: Fair

⇒ In order to achieve these targets, expand the group of hiring candidates and・ Ratio of women in management positions is 5% (as of March 31,

implement measures for developing an appropriate work environment

Strengthening
corporate
governance・ Strengthen investment in human capital⇒ Strengthen employee training systems for improving specialized skills
・ Respond to the issue of climate change

2022)
・ In addition to existing group training, enhanced our menu forimproving employee skills by utilizing outside training programs
such as Udemy.

⇒ Disclose in accordance with TCFD recommendations

・ Shared a response roadmap for TCFD disclosure at the Board of⇒ Reduce the amount of greenhouse gas emissions

Directors meeting and started efforts. Seeking disclosure in May(2) Strengthen functions of the Board of Directors

2024.

・ Secure the required skill balance to make accurate decisions on important・ Started quantitative assessment for amount of greenhouse gas

matters and to supervise business execution

emissions.
（Scope1, 2, 3)
・ Clarified and disclosed the required skills(listed in the Notice of the Ordinary General Meeting of
Shareholders from June 2022.

18

ⅡI．Full-Year Business Forecast for theYear Ending March 31, 2023
SANSHIN ELECTRONICS CO., LTD.
19

Year Ending March 2023
Full-Year Business Forecast

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ We forecast net sales of ¥131.5 bn (up 6% year-on-year).
■ Profit is expected to decrease due to the backlash of temporary factors that caused anincrease in the previous fiscal year and to an increase in SG&A expenses.
03/18 Result

Net Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit Attributable to
Shareholders of Parent Company

ROE
AnnualDividend Per
Share

Ordinary Dividend
Commemorative
Dividend

Total

Payout Ratio
Exchange Rate
(1 US dollar)

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
1,315.0
7.3%
7.7%
9.1%
9.8%
10.9%
9.5%
114.5
114.1
112.3
110.5
135.3
125.4
6.2%
6.4%
7.5%
7.9%
7.5%
7.2%
96.8
94.4
92.7
88.8
93.2
95.1
1.1%
1.3%
1.6%
1.9%
3.4%
2.3%
17.6
19.7
19.6
21.7
42.1
30.3
1.1%
1.2%
1.5%
1.7%
2.9%
2.2%
17.9
17.4
18.6
18.8
35.6
29.0
0.6%
1.0%
1.2%
1.5%
2.0%
1.6%
9.5
14.5
14.5
16.5
25.3
21.0

106%
93%
102%
72%
81%
83%

1.5%
¥33
－
¥33

2.8%
¥70
－
¥70

3.4%
¥70
－
¥70

3.9%
¥40
－
¥40

6.8%
¥80
¥20
¥100

6.7%
¥85
－
¥85

-0.1P
+¥5
-¥20
-¥15

98.2%

93.3%

93.2%

46.9%

48.8%

49.9%

+1.1P

¥110.86¥110.91¥108.74¥106.06¥112.38¥115.00¥2.62*Figures in the YoY Change section for ROE, annual dividend per share, payout ratio
and exchange rate represent increases or decreases.

20

SANSHIN ELECTRONICS CO., LTD.

Year Ending March 2023
Year-to-Year Comparison of Consolidated Ordinary Profit● Decrease in gross profit Approx. ¥0.39 bn
・ In the device business, profit will decrease due to backlash from temporary
factors that caused an increase in the previous fiscal year.
・ In the solution business, profit will increase due to a recovery in net sales.
● Decrease in non-operating profit Approx. ¥0.08 bn*1)
Mainly interest expenses due to increase in U.S. interest rates

Ordinary
Profit¥3.56 bn

● Increase in SG&A expenses Approx. ¥0.19 bn
Mainly expenses associated with increase in number of
employees and activities

Decrease of approx. ¥0.66 bn

03/22 Term
Result*1) 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.

Ordinary
Profit¥2.90 bn

03/23 Term
Forecast
21

Year Ending March 2023
Full-Year Business Forecast by Segment

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ In the device business, we forecast that net sales will increase by 6% year-on-year, and that profit will decrease due to factors suchas backlash from factors that caused an increase in the previous fiscal year.
■ In the solution business, we forecast that net sales will increase by 9% year-on-year, and that profit will increase slightly due to theincreased net sales, despite an increase in SG&A expenses.
03/18 Result 03/19 Result 03/20 Result 03/21 Result 03/22 Result
Net Sales

1,437.0

Device1.1%
Operating Profit
Business
Segment
0.5%
ProfitNet Sales
Solution
9.8%
Operating Profit
Business
Segment
7.8%
ProfitExchange rate (1 US dollar)

1,332.8
1.3%

16.2

1,090.8
1.4%

17.1
0.3%

989.9
1.6%

15.3
0.4%

1,105.2
3.6%

15.7
0.2%

03/23
Forecast

YoY
Change1,173.0

106%

26.4

66%

2.2%
40.1

2.0%

1.3%

7.2

4.7

4.2

1.7

21.9

15.0

69%

135.6

146.0

140.1

138.0

130.6

142.0

109%

17.9

98%

11.3%
13.4

13.2%
16.5

8.7%

15.2%
18.4

10.3%

14.0%
21.0

12.4%

12.6%
18.3

10.5%

9.9%

10.6

12.7

14.4

17.1

13.7

14.0

102%

¥110.86¥110.91¥108.74¥106.06¥112.38¥115.00¥2.62*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.

22

Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

Strategic
Business

86
1,173
1,105

1,091

100
Core Business

By Business Category of Device Business

+6%

1,333

990

523

244

325

155
426
431

VolumeBusiness

390

420

724
565
404

471

Unit: ¥100 million

428【Year-to-Year Comparison of Fluctuations】■ Volume Business● Decrease for mobile devices● Decrease for social infrastructure■ Core Device○ Strong sales for industry, vehicle-mounted business, andstorage, etc.
● Decrease for gaming consoles● Ended in the previous fiscal year due to cancellation of
the dealership agreement with Renesas EL■ Strategic Device○ Increase in overseas merchandise such as wirelessmerchandise/analog semiconductors○ Acquisition of new customers for vehicle-mounted
business, etc.
○ Strong sales of modular products
YoY Change

03/19 Term

03/20 Term

03/21 Term

03/22 Term

03/23 Term
Forecast

Volume Business-9%Core Business+8%

Strategic Business

+33%

23

Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

1,333

Unit: ¥100 million
By Supplier of Device Business+6%【Year-to-Year Comparison of Fluctuations】
Other

1,173

256

1,105

1,091

990
240

194
198

159

Overseas
Manufacturers

Electromechanical
Parts
Manufacturers

485
212

362

466

219

356

475

490
542

504

■ Renesas EL● Ended in the previous fiscal year due to cancellationof the dealership agreement■ Electromechanical Parts Manufacturers● Decrease for mobile devices and gaming consoles■ Overseas Manufacturers○ Increase in strategic devices for wirelessmerchandise/analog semiconductors, etc.
○ Acquisition of new customers for vehicle-mounted
business, etc.
○ Strong sales of modular products■ Other● Decrease for social infrastructure○ Increase in IoT related business and agent sales, etc.
YoY Change

Renesas EL

230

03/19 Term

173
03/20 Term

122
03/21 Term

9003/22 Term

03/23 Term
Forecast

Renesas EL－

Electromechanical Parts
Manufacturers-7%

Overseas Manufacturers

+33%

Other

-2%

24

Year Ending March 2023
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

By Sector of Solution Business

+9%

146.0
140.1

Video
Systems

16.3

AP Software

21.8

130.6

16.4

16.1

17.0

17.9
27.8

Embedded
Systems

142.0

138.0

26.1

27.3
26.7

31.0
29.7

26.5

27.1
23.6

PublicSystems

46.9

30.1

36.5

Unit: ¥100 million

37.4
33.2

【Year-to-Year Comparison of Fluctuations】■ NW○ Increase in investment in IT infrastructure by private
corporations■ Public Systems○ Increase in projects for updating disaster prevention
radio, etc.
■ Embedded Systems○ Recover of demand related to servers, etc.
■ AP Software● Decrease in software development projects■ Video Systems● Decrease in large-scale internet streaming systems
YoY Change

NW

30.0

03/19 Term

36.1

03/20 Term

31.0

03/21 Term

29.2

03/22 Term

35.0

03/23 Term
Forecast

NW+20%

Public Systems+13%

Embedded Systems+12%

AP Software-2%

Video Systems

-5%

25

Year Ending March 2023
Consolidated Financial Situation

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Regarding the forecast for the fiscal year ending March 31, 2023, total assets will be ¥72.8 bn (no change from March

31, 2022) and the equity ratio will be 43.3% (up 1.2% compared to March 31, 2022).
→ We predict that the temporary increase in inventories due to an increase in inventory held at the end of the previous fiscal year
will shrink to approximately a normal level, and we forecast that interest-bearing liabilities will decrease by ¥1.8 bn.
→ We forecast that operating cash flows will increase by ¥4.03 bn due to the reasons stated above.
1) Balance Sheets

2) Cash FlowsFY EndedMar. 21
Result (A)FY EndedMar. 22
Result (B)

B-A
Increase/
Decrease

FY EndingMar. 23
Forecast (C)

255.4

93.1

-162.4

100.0

6.9

335.4

358.7

23.3

384.0

25.3

Inventories

143.4

197.3

53.9

165.0

-32.3

Other assets

111.8

79.0

-32.8

79.0

-0.0

Total assets

846.0

728.1

-117.9

728.0

-0.1

Operating C/F

131.1

144.6

13.5

154.0

9.4

Investing C/F

Cash and deposits
Accounts receivable

Accounts payable
Interest-bearing
liabilities

C-B
Increase/
Decrease

253.5

244.3

-9.2

226.0

-18.3

Other liabilities

29.4

32.4

3.1

32.5

0.1

Total net assets

432.1

306.8

-125.3

315.5

8.7

846.0

728.1

-117.9

728.0

-0.1

Total liabilities
and net assets
Equity ratio

51.0%

42.1%

-8.9%

43.3%

1.2%

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

-25.3

18.9

-45.6

32.3

-11.2

2.3

9.4

21.7

65.3

23.9

-16.9

21.9

40.3

-3.8

-1.5

-2.0

89.3

-185.9

-31.4

2.4

3.1

71.0

-162.4

6.9

255.4

93.1

100.0

Other

Financing C/F
Foreign currency
conversion
adjustments
Increase (decrease) in cash
and deposits
Balance of cash and deposits
at term-end

26

Concept of Return to Shareholders

SANSHIN ELECTRONICS CO., LTD.

● Policy on Distribution of Profits
The Company considers profit returns to its shareholders as one of the most importantmanagement issues. The Company’s basic policy is to determine dividends by comprehensively
considering the need to maintain a balance between rewarding of shareholders, investment togain opportunities for growth, attainment of sufficient retained earnings to enable sustainablegrowth, and improvement in capital efficiency. Under this policy, the Company has set a target
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 ¥85 per share (midterm dividend of ¥30, term-end dividend of ¥55); consolidated
dividend payout ratio of 49.9%
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

¥85

+¥5

－

－

－

－

¥20

－

-¥20

¥33

¥70

¥70

¥40

¥100

¥85

-¥15

98.2%

93.3%

93.2%

46.9%

48.8%

49.9%

+1.1P

27

SANSHIN ELECTRONICS CO., LTD.

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¥2,100 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%

43.3%

¥934 million(¥33)¥1,352 million(¥70)¥1,352 million(¥70)¥773 million(¥40)¥1,232 million(¥100)¥1,047 million
(¥85)

98.2%

93.3%

93.2%

46.9%

48.8％

49.9％

-

¥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¥172.36(11) Net assets per share¥2,191.19¥2,224.47¥2,188.84¥2,249.40¥2,514.04¥2,585.28(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.

28

Our Corporate Code

SANSHIN ELECTRONICS CO., LTD.

信
用

信
念

信
実

TRUST

PRINCIPLESSINCERITY

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

Do not just pursue
profit. But act basedon principles, which
can be realized
through selfdiscipline.

Always act sincerely.
Rise to the challengehead-on.

29