Briefing Materials on
the Financial Results for
the First Half of the YearEnding March 2022
November 5, 2021
SANSHIN ELECTRONICS CO., LTD.
Toshiro Suzuki, Representative Director, COO(Stock code: 8150)
1

Business Activities

SANSHIN ELECTRONICS CO., LTD.

As a general electronics trading company committed to being “customers’ best
partner,” Sanshin Electronics runs two major businesses: device business andsolution 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/electronic parts makers all
the way to emerging manufacturers that are currently
developing products with excellent performance. In a time whenmarket needs are constantly diversifying, we respond to ourcustomers’ requests through a full lineup and detailed system ofboth 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 Ending March 2022
Performance Summary
for the First Half

SANSHIN ELECTRONICS CO., LTD.
3

First Half of the Year Ending March 2022
Consolidated Performance Summary

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Net sales recovered from the previous year, which had been impacted by COVID-19, and were up 6% year-on
year.
■ Profit increased year-on-year due to the effect of increased sales and the improvement of the gross profit
margin from changes in the sales composition.
03/21 1st Half 03/22 1st Half
ResultResultNet Sales
Gross Profit on Sales
SG&A Expenses
Operating Profit
Ordinary Profit

539.7
9.1%

Exchange Rate
(1 US dollar)

Forecast*1)

Achievement
Ratio

570.5

106%

550.0

104%

57.7

117% Not announced

−

44.2

101% Not announced
1.9%
10.5
241%
1.6%
9.0
239%
1.2%
6.5
215%

−

10.1%
49.3

8.1%

7.7%
43.8

1.0%

2.4%
5.6

0.9%

13.5
2.0%

4.8

0.7%
Net Profit Attributable to
Shareholders of Parent Company

YoY Change

11.5
1.4%

3.7

7.9

¥106.92¥109.79¥2.87¥105.00

128%
127%
122%
¥4.79

*1) Figures in the Forecast section are based on results announced for the first quarterof the fiscal year ending March 31, 2022 (announced on August 5, 2021).
*2) Figures in the YoY Change section and Achievement Ratio section for exchange
rate represent increases or decreases.

4

SANSHIN ELECTRONICS CO., LTD.

First Half of the Year Ending March 2022
Year-to-Year Comparison of Consolidated Ordinary Profit● Increase in SG&A expenses
Approx. ¥0.04 bn

Ordinary
Profit¥0.48 bn

○ Increase in gross profit
Approx. ¥0.83 bn
・ Device business→Net sales increased by ¥3.78 bn.
Gross profit margin improved by
1.46%.
・ Solution business→Net sales decreased by ¥0.7 bn.
Gross profit margin improved by
0.82%.

Ordinary
Profit¥1.15 bn

● Decrease in non-operating profit Approx. ¥0.12 bn
・ Interest expenses, foreign exchange losses

Increase of approx. ¥0.67 bn
03/21 1st Half
Result03/22 1st Half
Result5

First Half of the Year Ending March 2022
Consolidated Performance Summary by Segment

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Device BusinessDespite the impact of canceling the dealership agreement with Renesas Electronics Corporation, overall sales werestrong due to growth in products from overseas semiconductor manufacturers.

■ Solution BusinessOverall sales decreased due to stagnating procurement for some products caused by tight supply and demand of
semiconductors from the second half of the period.

03/21 1st Half 03/22 1st Half
ResultResultNet Sales
DeviceBusiness

Operating Profit
Segment
Profit480.7
1.1%

Operating Profit
Segment
ProfitExchange Rate (1 US dollar)

108%

2.9%
5.1
-0.7

302%
Increased by
8.4\0.91 bn

59.0

52.0

88%

5.0

70%

5.4

3.1

56%

¥106.92¥109.79

¥2.87

-0.1%

Net Sales
Solution
Business

518.5

YoY Change

15.3
1.6%

12.1%

9.7%
7.2

9.2%

5.9%

*Figures in the YoY Change section for exchange rate and segment profit in thedevice business represent increases or decreases in amount.

6

First Half of the Year Ending March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

+8%

By Business Category of Device Business
518

481
Strategic
Device

109
76

Core
Device214

Volume Business

191

03/21 1st Half

Unit: ¥100 million

196【Year-to-Year Comparison of Fluctuations】■ Volume Business○ Increase for mobile devices○ Recovery for social infrastructure■ Core Device● Decrease due to changes in distribution channels ofRenesas EL○ Sales for gaming consoles were strong○ Increase in sales for industry and storage, etc.
■ Strategic Device○ Increase in overseas merchandise for wirelessmerchandise/analog semiconductors

213

03/22 1st Half

YoY Change
Volume Business+12%Core Device-8%Strategic Device

+44%

7

First Half of the Year Ending March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

By Supplier of Device Business

+8%
518
481
81
Other
Manufactures

74

Overseas
Semiconductor
Manufacturers

101ElectromechanicalParts Manufacturers

164

234

【Year-to-Year Comparison of Fluctuations】■ Renesas EL● Decrease due to changes in distribution channels■ Electromechanical Parts Manufacturers○ Increase for mobile devices○ Sales for gaming consoles were strong■ Overseas Semiconductor Manufacturers○ Increase in sales for industry, vehicle-mounted
business, storage, etc.
○ Also contribution from strategic devices such as
wireless merchandise/analog semiconductors■ Other Manufactures○ Recovery for social infrastructure
YoY Change

264

Renesas EL

Renesas EL-88%

Electromechanical Parts
Manufacturers

+13%

9

Overseas Semiconductor
Manufacturers+63%

03/22 1st Half

Other Manufactures+9%72
03/21 1st Half

Unit: ¥100 million8First Half of the Year Ending March 2022
Year-to-Year Comparison of Consolidated Net Sales

SANSHIN ELECTRONICS CO., LTD.

By Sector of Solution Business

-12%
59.0
Video Systems

6.9【Year-to-Year Comparison of Fluctuations】
52.0
7.7

AP Software

14.4
12.7

Embedded
Systems

13.0
9.1

PublicSystems

NW

9.5

■ NW
● Customers had careful attitude toward IT
infrastructure investment■ Public Systems○Acquisition of large-scale wireless projects forgovernment/public agencies■ Embedded Systems● Decrease due to computer server delivery
problems■ AP Software● Delay in delivery for development projects■ Video Systems○ Strong sales of mobile relay equipment

9.8

15.2

03/21 1st Half

Unit: ¥100 million

12.7

03/22 1st Half

YoY Change
NW

-16%

Public Systems+2%

Embedded Systems-30%

AP Software-12%Video Systems

+13%

9

First Half of the Year Ending March 2022
Consolidated Financial Situation

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Regarding the results of the term ended September 30, 2021, total assets were ¥71.3 bn (down ¥13.2 bn fromthe end of the previous fiscal year) and the equity ratio was 38.9% (down 12.1% from the end of the previous
fiscal year).
→ Cash flows from operating activities decreased by ¥1.63 bn. Cash flows from financing activities decreased by¥14.82 bn due to acquisition of treasury stock (¥19.7 bn). Cash and deposits also decreased for the reasons
given above.
1) Balance Sheets
2) Cash Flows

Cash and deposits
Accounts receivable
Inventories
Other assets
Total assets
Accounts payable
Interest-bearing
liabilities
Other liabilities
Total net assets
Total liabilities
and net assets
Equity ratio

FY EndedMar. 20
Result (A)FY EndedMar. 21
Result (B)Q2 Ended
Sept. 21
Result (C)C-B
Increase/
Decrease

184.4

255.4

71.0

90.4

-165.1

283.9

335.4

51.5

362.0

26.6

161.7

143.4

-18.2

164.5

21.0

106.6

111.8

5.2

96.7

-15.1

736.6

846.0

109.4

713.5

-132.5

Operating C/F

140.4

131.1

-9.3

137.3

6.2

Investing C/F

B-A
Increase/
Decrease

149.5

253.5

104.0

270.6

17.1

26.4

29.4

3.0

27.6

-1.8

420.3

432.1

11.8

278.0

-154.1

736.6

846.0

109.4

713.5

-132.5

57.0%

51.0%

-6.0%

38.9%

-12.1%FY Ended Mar. FY Ended Mar. H1 Ended Sept.
21 Result
20 Result
21 Result
Decrease (increase) in
accounts
receivable-trade
Decrease (increase) ininventories
Increase (decrease) in
accounts
payable-trade

183.4

-46.3

-24.1

-15.8

18.9

-20.6

-41.6

-11.2

5.4

-5.3

21.7

22.9

120.7

-16.9

-16.3

-2.7

-3.8

-0.4

-102.989.3-148.2

-1.3

2.4

-0.2

13.8

71.0

-165.1

184.4

255.4

90.4

Other

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

10

Ⅱ．Progress of the V73
Medium-Term
Management Plan

SANSHIN ELECTRONICS CO., LTD.
11

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
Improve the profitability of existing businesses and reform business portfolio by developing highly-profitablebusinesses■ Solution business
Construct a subscription-type business model, expand digital technology, and increase the number of customers

2. Improving capital efficiency■ Continue dividends with a consolidated payout ratio of 50% and implement flexible capital policy
including acquisition of treasury stock■ Maintain financial soundness and ensure the mobility and stability of fund procurement

3. Strengthening corporate governance■ Review of policies for initiatives to address sustainability issues■ Strengthen systems and management to effectively supervise the execution of strategy in theMedium-Term Management Plan

ROE
Quantitative targets for the final
Ordinary profit
year of V73
Net profit attributable(fiscal year ending March 31, 2024) to shareholders ofparent company

5% or higher¥2.5 bn or higher¥1.8 bn or higher
12

SANSHIN ELECTRONICS CO., LTD.

Overview of V73 Medium-Term Management Plan (Quantitative Targets)Numerical value when ROE for 03/22 term is
calculated with equity at the end of Mar. 2022

2.8%

3.4%

5.3%

Unit: ¥100 million

5% or higher

3.9%
4.2%

1.5%
1.1%
1,573

1.2%

ROE

1.5%

1,479

ROS

1.9%

1.7%

Net sales
Ordinary
profit

1,231
1,128

1,095

¥2.5 bn or higher
17.9

17.4
14.5

18.6
14.5

18.8
16.5

21.0

¥1.8 bn or higher

15.0

Net profit

9.5
03/18 Term

03/19 Term

03/20 Term

03/21 Term

03/22 Term
Forecast

Quantitative
Targets for 03/24
Term

13

SANSHIN ELECTRONICS CO., LTD.

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

Measures of MediumTerm Management Plan

Progress Status

Device Business

Improve
profitability ofexisting businesses(1) Shifted resources to overseas semiconductors and acquired new customers from existingoverseas suppliers(2) Reorganized managed customers in each sales unit and improved the efficiency of sales
promotion(3) As part of strengthening infrastructure for sales activities, started reviewing improvements tothe sales support system, with the aim of establishing small teams of highly-skilled back-officepersonnel and increasing the efficiency of sales activities

Reform businessportfolio bydeveloping highlyprofitablebusinesses(1) Focused on providing total solutions for AI/IoT, robotics, and vehicle-mounted fields(2) For AI/IoT-related fields, strengthened monitoring solutions and other activities for local
governments, and obtained opportunities for business negotiations(3) Started activities for the robotics field, established new organizations, started developing
original boards, and enhanced cooperation with collaborative partners to aim for new
development(4) For vehicle-mounted fields, reviewed the design of wireless modules and realized proposaltype software projects that utilize AI

Construct a

Solution Business

subscription-typebusiness model
Expand digitaltechnology
Increase number ofcustomers(1) Expanded Sanshin DC business (hosting + operation/maintenance, cloud connection service)(2) Deployed proprietary services (cloud backup, file box, etc.)(3) Strengthened sales of public cloud (AWS, Azure, etc.)(4) Rebuilt the system for cloud expansion (partner contracts, certified persons, etc.)(1) Strengthened support for SASE (Secure Access Service Edge) technology(2) Continued the acquisition of new technology (network virtualization, private LTE, local 5G)(1) Started activities to expand business domains in cooperation with external consultants(2) Due to the promotion of cross-selling, both the number of cases and monetary amount are
increasing(3) Developed new markets for mobile relay equipment

14

SANSHIN ELECTRONICS CO., LTD.

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

Measures of MediumTerm Management Plan

Progress Status
1) Implement flexible capital policy including acquisition of treasury stock(1) In the device business, began steps for withdrawal from low-profit business specializing in
finance, thereby significantly decreasing the demand for funds(2) Our policy is to continue to focus on business structure reforms for high-margin businesses,
and demand for funds is expected to be suppressed in the medium- to long-term.
(3) Optimized the scale of equity by implementing a tender offer for 7 million shares (equivalent
to 28.83% of the total number of issued shares) amounting to ¥15.7 bn of treasury stock.

Improving capitalefficiency

2) Continue dividends with a consolidated payout ratio of around 50%(1) The dividend per share for ordinary dividends is expected to increase (+¥30 for annual
dividends) due to the implementation of the tender offer for treasury stock and the upwardrevision of net profit attributable to shareholders of parent company(2) We will pay a commemorative dividend for the 70th anniversary of our founding (¥20)
separately from the ordinary dividend
3) Maintain financial soundness and ensure the mobility and stability of fund procurement(1) Entered into a commitment line contract (from August 31, 2021)(2) Sold strategically held shares as appropriate while discerning the best timing
1) Enable support for the revised corporate governance code
(1) Reviewed the clarification of initiative policies and goals for securing diversity in humanStrengthening corporate
governanceresources(2) Revised initiative polices for sustainability issues and reviewed disclosure2) Demonstrate the effectiveness of the board of directors(1) Confirmed skill balance for the board of directors and reviewed maintenance of skills

15

ⅡI．Full-Year Business Forecast
for the Year Ending
March 31, 2022

SANSHIN ELECTRONICS CO., LTD.
16

Year Ending March 2022
Full-Year Business Forecast

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Net sales will decrease by 3% YoY, impacted by the cancelation of the dealership agreement with Renesas Electronics.
■ Operating profit and ordinary profit are expected to increase due to improvement in gross profit margin from changes insales composition.
■ Net profit attributable to shareholders of parent company is forecasted to be nearly the same level except for gain on salesof investment securities (¥0.14 bn) in the previous fiscal year.
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
Exchange Rate
(1 US dollar)

03/19 Result

1,572.6

03/20 Result

14.5

14.5

1.5%

2.8%

3.4%

3.9%

4.2%

+0.3P

¥110.86¥110.91¥108.74¥106.06¥110.00

¥3.94

114.5
6.2%

9.1%
114.1

6.4%
96.8

1.1%
1.1%

92.7

19.7

17.9

7.9%

1.6%

1.2%

0.6%

112.3

94.4

17.6

9.8%

7.5%

1.3%

1.9%
19.6

1.5%
17.4

1.0%

1,127.9

YoY Change

9.5

7.7%

1,230.9

03/22 Forecast

1,095.0
10.3%
110.5
112.6
8.2%
88.8
89.4
2.1%
21.7
23.2
1.9%
18.8
21.0
1.4%
16.5
15.0

7.3%

1,478.8

03/21 Result

1.7%
18.6

1.2%

1.5%

97%
102%
101%
107%
112%
91%

*Figures in the YoY Change section for ROE and exchange rate represent increases or decreases.
17

SANSHIN ELECTRONICS CO., LTD.

Year Ending March 2022
Year-to-Year Comparison of Consolidated Ordinary Profit○ Increase in gross profit
Approx. ¥0.21 bn
・ Device business→Net sales will decrease by ¥1.99 bn.
● Increase in SG&A expenses
Gross profit margin will improve
Approx. ¥0.06 bn
by 0.67%.
・ Solution business→Net sales will decrease by ¥1.3 bn.
Gross profit margin will improveby 0.86%.
○ Improvement in non-operating profit
Approx. ¥0.07 bn
Ordinary

Ordinary
Profit¥2.1 bn

Profit¥1.88 bn

Increase of approx. ¥0.22 bn

03/21 Term
Result03/22 Term
Forecast
18

Year Ending March 2022
Full-Year Business Forecast by Segment

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Device BusinessNet sales will decrease by 2% YoY due to the impact of the cancelation of the dealership agreement with Renesas EL, despite
strong sales of products from overseas semiconductor manufacturers.
Profit is expected to increase due to improvement in gross profit margin from changes in sales composition and cost reductions.
■ Solution BusinessNet sales will decrease by 9% YoY due to concerns regarding procurement of some products such as computers and servers causedby tight supply and demand of semiconductors.
Profit is expected to decline due to a decrease in net sales and an increase in selling, general and administrative expenses caused byincreased personnel.

03/18 Result 03/19 Result 03/20 Result 03/21 Result
Net Sales
DeviceBusiness

Operating Profit
Segment
Profit1,437.0
1.1%

Operating Profit
Segment
ProfitExchange rate (1 US dollar)

1.3%
16.2

0.5%

Net Sales
Solution
Business

1,332.8

1,090.8
1.4%

17.1
0.3%

989.9
1.6%

15.3
0.4%

03/22
Forecast

YoY
Change

970.0

98%

21.2

135%

2.2%
15.7

0.2%

0.9%

7.2

4.7

4.2

1.7

8.5

491%

135.6

146.0

140.1

138.0

125.0

91%

16.7

79%

9.8%

11.3%
13.4

7.8%

13.2%
16.5

8.7%

15.2%
18.4

10.3%

13.3%
21.0

12.4%

10.0%

10.6

12.7

14.4

17.1

12.5

73%

¥110.86¥110.91¥108.74¥106.06¥110.00¥3.94*The figure in the YoY Change section for exchange rate represents an increase or decrease in amount.
19

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

SANSHIN ELECTRONICS CO., LTD.

By Business Category of Device Business

Sales for the Full Year

【Year-to-Year Comparison ofFluctuations】

1,333

Strategic
Device

86

-2%
1,091
100

Core
Device

990

970

523
155
205
426

-13%
431

370

518
452
109

VolumeBusiness

Unit: ¥100 million

96

724
196

565

174
404

395
213

03/19 Term 03/20 Term 03/21 Term 03/22 Term
Forecast

03/22
1st Half■ Volume Business● Sales for mobile devices will decrease○ Recovery for social infrastructure■ Core Device● Significant decrease due to changes in
distribution channels of Renesas EL○ Sales for gaming consoles are expected
to be solid○ Increase in sales for industry andstorage, etc.
■ Strategic Device○ Increase in overseas merchandise forwireless merchandise/analog
semiconductors
YoY Change

182
03/22 2nd
Half Forecast

Volume Business-2%

Core Device-14%

Strategic Device

+32%

20

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

SANSHIN ELECTRONICS CO., LTD.

By Supplier of Device Business

Sales for the Full Year

【Year-to-Year Comparison ofFluctuations】

1,333

Other

-2%

256

1,091
990

970

240
159

Overseas
Semiconductor
Manufacturers

176

485
212

-13%

219
313

518
Electromechanical
Parts
Manufacturers

81
362

466

230

■ Renesas EL● Significant decrease due to cancellingdealership agreement■ Electromechanical Parts Manufacturers● Decrease for mobile devices○ Sales for gaming consoles are expected tobe solid■ Overseas Semiconductor Manufacturers○ Increase in sales for industry, vehiclemounted business, storage, etc.
○ Also contribution from strategic devices
such as wireless merchandise/analog
semiconductors■ Other Manufactures○ Recovery for social infrastructure

164

208

122
9

03/19 Term 03/20 Term 03/21 Term 03/22 Term
Forecast

YoY Change

149
264

173

452
95

490
472

Renesas EL

Unit: ¥100 million

903/22
1st Half

03/22 2nd
Half Forecast

Renesas EL-93%

Electromechanical Parts
Manufacturers-4%

Overseas Semiconductor
Manufactures

+43%

Other

+11%

21

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

SANSHIN ELECTRONICS CO., LTD.

By Sector of Solution Business

Sales for the Full Year

【Year-to-Year Comparison ofFluctuations】

-9%
146.0

Video
Systems

16.3

AP Software

21.8

140.1

138.0

16.4

16.1

125.0
17.2

27.8

27.3

+41%

Embedded
Systems

25.7

31.0
29.7

27.1

73.0
20.8

PublicSystems

9.5

52.0
46.9

Unit: ¥100 million

30.1

36.5

32.3

7.7

13.0

■ NW
● Customers will have careful attitude
toward IT infrastructure investment■ Public Systems● Net sales will decrease due toinability to solve delivery issues■ Embedded Systems● Decrease due to delivery issues forcomputers, servers, etc.
■ AP Software● Decrease in new development
projects■ Video Systems○ Increase for mobile relay equipment

11.7

YoY
Change

12.7
9.1

NW

30.0

36.1

31.0

29.0

03/19 Term 03/20 Term 03/21 Term 03/22 Term
Forecast

22.5

9.8
12.7

16.3

03/22
1st Half

03/22 2nd
Half Forecast

NW

-6%

Public Systems-12%

Embedded Systems-23%

AP Software-6%

Video Systems

+7%

22

Year Ending March 2022
Consolidated Financial Situation

SANSHIN ELECTRONICS CO., LTD.

Unit: ¥100 million■ Regarding the forecast for the fiscal year ending March 31, 2022, total assets will be ¥63.7 bn (down ¥20.9 bncompared to March 31, 2021) and the equity ratio will be 44.2% (down 6.8% compared to March 31, 2021).
→ We expect repayment of interest-bearing liabilities due to decrease in accounts receivable-trade andinventories, and expect operating cash flow to increase by ¥5.8 bn.
1) Balance Sheets

Cash and deposits
Accounts receivable
Inventories
Other assets
Total assets
Accounts payable
Interest-bearing
liabilities
Other liabilities
Total net assets
Total liabilities
and net assets
Equity ratio

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

184.4

255.4

283.9

2) Cash FlowsFY EndingMar. 22
Forecast (C)C-B
Increase/
Decrease

71.0

90.0

-165.4

335.4

51.5

310.0

-25.4

161.7

143.4

-18.2

130.0

-13.4

106.6

111.8

5.2

107.0

-4.8

736.6

846.0

109.4

637.0

-209.0Operating C/F

140.4

131.1

-9.3

128.0

-3.1

Investing C/F

B-A
Increase/
Decrease

149.5

253.5

104.0

200.0

-53.5

26.4

29.4

3.0

27.6

-1.8

420.3

432.1

11.8

281.4

-150.7

736.6

846.0

109.4

637.0

-209.0

57.0%

51.0%

-6.0%

44.2%

-6.8%

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

FY EndingMar. 22
Forecast

183.4

-46.3

25.4

-15.8

18.9

13.4

-41.6

-11.2

-3.1

-5.3

21.7

22.6

120.7

-16.9

58.3

-2.7

-3.8

-2.0

-102.989.3-221.6

-1.3

2.4

-0.2

13.8

71.0

-165.4

184.4

255.4

90.0

Other

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

23

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 important management
issues. The Company’s basic policy is to determine dividends by comprehensively considering the needto maintain a balance between rewarding of shareholders, investment to gain opportunities for growth,
attainment of sufficient retained earnings to enable sustainable growth, and improvement in capitalefficiency. 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, 2022
The number of shares eligible for dividends decreased by 7 million due to the implementation of thetender offer of treasury stock. In addition, due to the upward revision to the forecast for consolidated net
profit, we revised the forecast for the year-end dividend upward from ¥20 to ¥50.

⇒An annual dividend of ¥80 per share; consolidated dividend payout ratio of 65.7%
・ Ordinary dividend of ¥60 (midterm dividend of ¥10, term-end dividend of ¥50)
・ 70th anniversary commemorative dividend of ¥20 (to be implemented inconjunction with midterm dividend)
03/18 Result
Ordinary
Dividend
AnnualDividend Per Commemorative
Dividend

Share

Total
Payout Ratio

03/19 Result

03/20 Result

03/21 Result

03/22 Initial
Forecast

03/22 Forecast

YoY Change

¥33

¥70

¥70

¥40

¥30

¥60

+¥20

−

−

−

−

¥20

¥20

+¥20

¥33

¥70

¥70

¥40

¥50

¥80

+¥40

98.2%

93.3%

93.2%

46.9%

84.0%

65.7%

+18.8P

24

SANSHIN ELECTRONICS CO., LTD.

Change in Return to Shareholders
03/18 Term
Result03/19 Term
Result03/20 Term
Result03/21 Term
Result03/22 Term
Forecast(1) Consolidated net profit¥947 million¥1,449 million¥1,451 million¥1,646 million¥1,500 million(2) Comprehensive profit¥912 million¥1,585 million¥666 million¥2,298 million

-

65.7%

48.3%

57.0%

51.0%

44.2%

¥934 million(¥33)¥1,352 million(¥70)¥1,352 million(¥70)¥773 million(¥40)¥986 million
(¥80)

98.2%

93.3%

93.2%

46.9%

65.7%

(6) Value of treasury stockacquired(Number of shares acquired)-¥19.72 billion(9 million shares)--¥15.74 billion(7 million shares)(7) Total payout ratio (4+6)÷1

98.2%

1,454.2%

93.2%

46.9%

1,115.3%(8) Cancellation of treasury stock-

5,000 thousand
shares--8,000 thousand
shares(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(12,316 thousand
shares)(10) Net profit per share¥33.62¥67.48¥75.66¥85.82¥101.67(11) Net assets per share¥2,191.19¥2,224.47¥2,188.84¥2,249.40¥2,309.88(3) Consolidated equity ratio(4) Total dividends(Dividend per share)(5) Consolidated payout ratio*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) Net profit per share for 03/22 term is calculated based on the total number of shares issued (excluding treasury stock) as of September
30, 2021, while considering the impact of the acquisition of treasury stock.
5) The forecast for net assets per share for 03/22 term is calculated based on the total number of shares issued (excluding treasury stock)
as of September 30, 2021.

25

SANSHIN ELECTRONICS CO., LTD.

Our Corporate Code

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.

26