(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 5, 2024

Summary of Financial Results for the First Three Quarters of the Fiscal YearEnding March 31, 2024
(Nine Months Ended December 31, 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:
February 6, 2024
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 2024 Term(April 1, 2023 – December 31, 2023)(1) Consolidated business performance (cumulative)

Operating profit

Net sales
Million yen

3Q March 2024 Term
3Q March 2023 Term
(Note) Comprehensive income(% figures represent year-on-year changes)
Net profit attributable toOrdinary profit
shareholders ofparent company%

Million yen%

108,351(14.1)
3,908(28.8)
126,082
41.3
5,487
133.2
3Q March 2024 Term: 3,055 million yen (-22.6%);
Net profit per share

3Q March 2024 Term
3Q March 2023 Term

Million yen%

Million yen%

2,503 (37.9)
1,754(41.4)
4,028
107.7
2,994
113.8
3Q March 2023 Term: 3,948 million yen (86.5%)

Diluted net profit per share
Yen

Yen

143.85245.68－－(2) Consolidated financial position
Total assets

Net assets

Million yen

3Q March 2024 Term
March 2023 Term
(Reference) Shareholders’ equity

Equity ratio

Million yen

79,80678,601
3Q March 2024 Term: 35,517 million yen;%

35,59744.5
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

AnnualYen

Yen

Yen

Yen

Yen－－30.00
35.00

－－

105.00135.0065.00

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)

213.06(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):
3Q March 2024 Term:

16,281,373 shares

March 2023 Term:

16,281,373 shares

March 2023 Term:

4,089,037 shares

3Q March 2023 Term:

12,187,870 shares2) Amount of treasury stock at the end of term:
3Q March 2024 Term:

4,077,986 shares3) Amount of average stock during the term (quarterly total):
3Q March 2024 Term:

12,197,686 shares(Note) The amount of treasury stock at the end of the term includes Company stock (3Q March 2024 term: 151,200 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 (3Q March 2024
term: 156,983 shares, 3Q March 2023 term: 128,447 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
During the consolidated first three quarters under review, the outlook for the global economy remained
uncertain due to a persistent sense of caution regarding an economic downturn caused by factors such astightening of monetary policy in each country, concern for the economic future of China, and intensifying
geopolitical risk.
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 with the aim ofimproving productivity and increasing business efficiency, and the promotion of 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 three quarters under review was as follows. Netsales were ¥108,351 million (down 14.1% year-on-year), operating profit was ¥3,908 million (down 28.8% yearon-year), ordinary profit was ¥2,503 million (down 37.9% year-on-year), and net profit attributable toshareholders of parent company was ¥1,754 million (down 41.4% 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 three quarters 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 ordinaryprofit.
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 three quarters under review, in addition to a decrease in sales compared to the sameperiod of the previous fiscal year, gross profit decreased due to the loss of some highly-profitable projects, andprofit and loss were also impacted by an increase in non-operating expenses such as interest expenses.
As a result, net sales were ¥98,313 million (down 16.8% year-on-year) and segment profit was ¥1,722 million(down 53.7% 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 three quarters under review, there was a trend of overall recovery with a focus on
business related to information and communication networks for companies, due in part to a rebound from thesame period of the previous fiscal year, in which there were serious procurement difficulties for servers and2

communications equipment due to tight supply and demand for semiconductors, etc., and also due to high needs
for DX promotion at companies.
As a result, net sales were ¥10,038 million (up 27.7% year-on-year) and segment profit was ¥780 million (up150.6% year-on-year).
(2) Explanation of Financial Position(Assets)
As of December 31, 2023, assets increased ¥1,204 million compared with March 31, 2023, to ¥79,806 million.
This was mainly attributable to a ¥3,774 million increase in consumption taxes receivable, a ¥1,132 million
decrease in notes and accounts receivable–trade, and a ¥1,054 million decrease in cash and deposits.
(Liabilities)
As of December 31, 2023, liabilities decreased ¥139 million compared with March 31, 2023, to ¥44,209
million. This was mainly attributable to a ¥3,194 million decrease in notes and accounts payable–trade, a ¥779
million decrease in accrued corporate tax, etc., and a ¥3,543 million increase in short-term loans payable.
(Net Assets)
As of December 31, 2023, net assets increased ¥1,344 million compared with March 31, 2023, to ¥35,597
million. This was mainly attributable to a ¥1,025 million increase in foreign currency translation adjustment anda ¥226 million increase in valuation difference on available-for-sale securities.
(3) Explanation of Forecasts for Consolidated Business Performance and Other Future Prospects
Consolidated business performance and year-end dividends for March 2024 term remain unchanged from thefollowing forecast figures announced on May 11, 2023.
(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 interimdividend)32. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Million yen)March 2023 Term
(As of Mar. 31, 2023)

3Q March 2024 Term
(As of Dec. 31, 2023)

Cash and deposits

8,893

7,838Notes and accounts receivable–trade, and contract assets

35,77933,963

Electronically recorded monetary claims

1,485

2,169

Merchandise inventories

25,002

24,266

AssetsCurrent assets

060

Others

1,443

5,431

Allowance for doubtful accounts

(32)

(30)

72,57273,699

2,617

2,570

358

320

3,103

3,270

Partly-finished work

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

(50)

(54)

Total investments and other assets

3,053

3,215

6,029

6,106

78,60179,806

Notes and accounts payable–trade

13,85810,664

Short-term loans payable

26,82830,372

Accrued corporate tax, etc.

958

179

Allowance

637

291

Total non-current assets
Total assets
Liabilities
Current liabilities

Others

1,428

1,878

Total current liabilities

43,71243,384

Net defined benefit liabilities

281

260

Others354

563

Total non-current liabilities

636

824

44,34844,209Non-current liabilities

Total liabilities

4

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

3Q March 2024 Term
(As of Dec. 31, 2023)

14,811

14,8111616Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings

25,25525,280Treasury stock(8,777)(8,758)

Total shareholders’ equity

31,30531,349Valuation difference on available-for-sale securities

568

795

Deferred hedge gains (losses)

4479

Foreign currency translation adjustment

2,424

3,449

Remeasurements of defined benefit plans

(160)

(155)

Total accumulated other comprehensive income

2,877

4,168

69

79

34,25235,59778,60179,806

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets5(2) Quarterly Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Quarterly Consolidated Profit and Loss Statement of the First Three Quarters)

3Q March 2023 Term
(Apr. 1, 2022 – Dec. 31, 2022)
126,082

Net sales(Million yen)
3Q March 2024 Term
(Apr. 1, 2023 – Dec. 31, 2023)
108,351

Cost of sales

113,103

97,153Gross profit on sales

12,978

11,197

Selling, general and administrative expenses

7,491

7,289

Operating profit

5,487

3,908

Interest income

2077

Dividend income

3733

Others62

63

Total non-operating profit119175

Non-operating profit

Non-operating expenses
488

804

1,044

754

25

20

1,578

1,580

4,028

2,503

Gain on sales of non-current assets

0－Gain on sales of investment securities

3114

Total extraordinary profits

3114

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

Extraordinary losses
Loss on retirement of non-current assets

01

Loss on sales of investment securities

1－

Total extraordinary losses

11

Net profit before tax and other adjustments

4,058

2,517Corporate, resident and enterprise taxes

935570Adjustment for corporate tax, etc.

116

182

Total corporate taxes

1,051752

Net profit

3,006

1,764

129

2,994

1,754

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

6

(Quarterly Consolidated Comprehensive Income Statement of the First Three Quarters)
3Q March 2023 Term
(Apr. 1, 2022 – Dec. 31, 2022)
3,006

Net profit

3Q March 2024 Term
(Apr. 1, 2023 – Dec. 31, 2023)
1,764

Other comprehensive income
Valuation difference on available-for-sale securities(7)

Deferred hedge gains (losses)

361

34

Foreign currency translation adjustment

605

1,025

Remeasurements of defined benefit plans, net of tax

(17)

4

Total other comprehensive income

941

1,290

3,948

3,055

3,935

3,045

12

9

Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests7226

(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. Nine months ended December 31, 2022 (Apr. 1, 2022 – Dec. 31, 2022)
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

118,220－
118,220
3,716

7,861
－
7,861
311

Total
126,082－
126,082
4,028(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.
II. Nine months ended December 31, 2023 (Apr. 1, 2023 – Dec. 31, 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

98,313－98,313
1,722

10,038－10,038780

Total
108,351－
108,351
2,503(Note) The segment profit is consistent with the ordinary profit in the quarterly consolidated profit and loss statement.

8