(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.)

May 11, 2023

Summary of Financial Results for Fiscal Year Ended March 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 Ordinary General Meeting of Shareholders: June 22, 2023
Scheduled date of filing of Annual Securities Report:
June 23, 2023
Scheduled date of dividend payment:
June 23, 2023
Supplementary materials for the financial results:
Yes
Investor conference for the financial results:
Yes (for securities analysts and institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Business Performance for March 2023 Term (April 1, 2022 – March 31, 2023)(1) Consolidated business performance(% figures represent year-on-year changes)
Net profit attributable
Ordinary profit
to shareholders ofparent company

Operating profit

Net sales
Million yen%

Million yen%

Million yen%

Million yen%

March 2023 Term
March 2022 Term

161,107
123,583

30.4
9.6

6,847
4,209

62.7
94.2

5,511
3,560

54.8
89.5

3,832
2,524

51.8
53.4

(Note) Comprehensive income

March 2023 Term:

Net profit per
share

4,788 million yen (13.9%)

Diluted net profit
per share

Yen

March 2022 Term:

Return on
EquityYen

March 2023 Term
314.43－
March 2022 Term
171.12－(Reference) Investment profit and loss based on the equity method
March 2023 Term:－ million yen

4,204 million yen (75.6%)

Ordinary profit tototal assets

Operating profit
to net sales

%

%

%

11.8
6.8

7.3
4.5

4.3
3.4

March 2022 Term:－ million yen(2) Consolidated financial position
Total assets

Net assets

Million yen

March 2023 Term
March 2022 Term
(Reference) Shareholders’ equity

Million yen

78,60172,809March 2023 Term:

34,25230,68334,183 million yen

Equity ratio
%

43.5
42.1
March 2022 Term:

Net assets per shareYen

2,803.65
2,514.04
30,630 million yen(3) Consolidated cash flow position

March 2023 Term
March 2022 Term

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

(780)
2,189

(46)
(149)

262
(18,584)

8,893
9,307

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Total
Dividend on
Payout ratio
dividends
net assets(consolidated)(annual)(consolidated)
Million yen%%

March 2022 Term
－
30.00
－
70.00
100.00
1,231
48.8
4.2
March 2023 Term
－
30.00
－
105.00135.00
1,666
43.5
5.1
March 2024 Term
－
35.00
－
65.00
100.0047.5(forecast)(Notes) 1. The payout ratio is calculated by dividing the total dividends by the net profit attributable to shareholders of parent company.
2. Breakdown of 2Q-end dividends for March 2022 term: Ordinary dividend 10.00 yen, Commemorative dividend 20.00 yen(dividend to commemorate 70th anniversary of founding)

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

Net sales

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%

Yen73,600157,000(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
213.25First half
Full year* Annotations(1) Significant subsidiary changes during the term (changes in scope of consolidation): None
Newly added:
Excluded:(2) Changes in accounting principles, changes in accounting estimate, and redisplay after revision:
1) Changes in accounting principles caused by revision of accounting standards:
None2) Changes in accounting principles other than 1):
None3) Changes in accounting estimate:None4) Redisplay after revision:
None(3) Number of shares outstanding (ordinary shares)
1) Number of shares outstanding at the end of term (including treasury stock):
March 2023 Term:

16,281,373 shares

March 2022 Term:

16,281,373 shares

March 2022 Term:

4,097,789 shares

March 2022 Term:

14,753,614 shares2) Amount of treasury stock at the end of term:
March 2023 Term:

4,089,037 shares3) Amount of average stock during the term:
March 2023 Term:

12,188,982 shares

Note: The amount of treasury stock at the end of the term includes Company stock (March 2023 term: 162,400 shares, March 2022
term: 132,800 shares) possessed in a trust related to the Performance-Based Stock Compensation Plan for Directors (with the
exception of External Directors). Also, Company stock held in the trust is included in treasury stock to be deducted in thecalculation of the amount of average stock during the term (March 2023 term: 131,426 shares, March 2022 term: 132,800
shares).

(Reference) Overview of Non-consolidated Results(1) Non-consolidated Business Performance for March 2023 Term (April 1, 2022 – March 31, 2023)(% figures represent year-on-year changes)
Operating profit

Net sales
March 2023 Term
March 2022 Term

Ordinary profit

Net profit

Million yen%

Million yen%

Million yen%

Million yen%

104,800
92,367

13..5
9.7

1,679
1,152

45.7
164.0

3,063
2,091

46.5
11.2

2,262
1,567

44.3
(18.4)

Net profit per share
March 2023 Term
March 2022 Term

Diluted net profit per share

Yen

Yen

185.59106.26－－(2) Non-consolidated financial position
Total assets
Million yen

March 2023 Term
March 2022 Term
Reference) Shareholders’ equity

47,37046,661March 2023 Term:

Net assets
Million yen

18,26917,062
18,269 million yen

Equity ratio

Net assets per share
%

38.6
36.6
March 2022 Term:

Yen

1,498.46
1,400.46
17,062 million yen* This summary of financial results is not subject to audits of 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. Overview of Business Results – (4) Future Prospects” on page 4 of [Appendix] regarding the relevant matters forthe above forecast for the business performance.

Contents of Appendix
1. Overview of Business Results ....................................................................................................................... 2(1) Overview of Business Results for the Fiscal Year Ended March 31, 2023 .................................................. 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2023 ................................................ 3(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2023 .......................................................... 3(4) Future Prospects ........................................................................................................................................... 4
2. Basic Attitudes Toward the Selection of our Accounting Standards .............................................................. 5
3. Consolidated Financial Statements and Main Notes...................................................................................... 6(1) Consolidated Balance Sheets ....................................................................................................................... 6(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement ........................ 8(3) Consolidated Statements of Changes in Shareholders’ Equity ................................................................... 10(4) Consolidated Statement of Cash Flows ...................................................................................................... 12(5) Notes on Consolidated Financial Statements ............................................................................................. 13(Notes Regarding Going Concern) .................................................................................................................. 13(Additional Information) ................................................................................................................................. 13(Segment Information and Other) .................................................................................................................... 14(Per Share Information) ................................................................................................................................... 17(Significant Subsequent Events) ...................................................................................................................... 18
4. Other ............................................................................................................................................................ 18(1) Changes in Officers .................................................................................................................................... 18

1

1. Overview of Business Results
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 fiscal year.
(1) Overview of Business Results for the Fiscal Year Ended March 31, 2023
During the consolidated fiscal year under review, the global economy experienced normalization of economic
activities assuming life with COVID-19 in each country. On the other hand, the economic outlook remained
uncertain due to factors including the impact of rising prices for goods on a global scale, high resource prices
caused by the Russian invasion of Ukraine, changes in financial policy, and sudden exchange rate fluctuations.
In the electronics industry, a vital area of business for the Sanshin Electronics Group, the supply chain started
to regain stability due to factors such as a gradual alleviation from the second half of the fiscal year for the tightsupply and demand of semiconductors and electronic components, which had been an increasingly serious issue.
In the domestic ICT industry, the transition of systems to the cloud and the use of subscription models spread in
conjunction with increased needs to advance 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 of these efforts, business performance in the consolidated fiscal year under review was as follows:
Net sales were ¥161,107 million (up 30.4% year-on-year), operating profit was ¥6,847 million (up 62.7% yearon-year), and ordinary profit was ¥5,511 million (up 54.8% year-on-year). Net profit attributable to shareholdersof parent company was ¥3,832 million (up 51.8% 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 fiscal year under review, due to the weaker yen, operating profit increased because
the offsetting expenses greatly exceeded the corresponding revenues. However, the same amount has beenadjusted as a foreign exchange loss in non-operating expenses. Hence, there is no impact on the ordinary profit.
Consolidated performance by segment for the term under review is as follows.
(Device segment)
In the device business segment, our leading products are semiconductors (including system LSIs,
microcomputers, power semiconductors, LCD driver ICs and memory) and electronic components (including
connectors, capacitors and LCD panels). These products are sold mainly to electronics manufacturers. We
also provide technical support such as software development and module development.
In the consolidated fiscal year under review, there were robust sales of electronic components, and net
sales of semiconductors manufactured overseas increased due to expansion of commercial sales rights andstrong sales of home video game consoles. Other factors in improved results were success in fully utilizing
our trading company functions despite tight supply and demand for semiconductors, as well as exchange rates
with a weaker yen year-on-year. This resulted in net sales of ¥147,575 million (up 33.5% year-on-year). In
terms of profit, although selling, general and administrative expenses increased, segment profit was ¥4,144
million (up 89.4% year-on-year) due to the effect of increased revenue and strong projects with highprofitability.
(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.
For the consolidated fiscal year under review, although sales of major products such as servers and2communication devices were sluggish due to supply difficulties caused by tight supply and demand forsemiconductors, etc., the supply chain started to normalize from the fourth quarter, and performance was asplanned for the full year. This resulted in net sales of ¥13,532 million (up 3.6% year-on-year). In terms of
profit, although selling, general and administrative expenses increased, segment profit was nearly the same
year-on-year at ¥1,366 million (down 0.4% year-on-year).
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2023
(Assets)
As of March 31, 2023, assets increased ¥5,792 million compared to March 31, 2022, to ¥78,601 million. Thiswas mainly attributable to a ¥1,399 million increase in notes and accounts receivable–trade and a ¥5,270 million
increase in merchandise inventories.
(Liabilities)
As of March 31, 2023, liabilities increased ¥2,223 million compared to March 31, 2022, to ¥44,348 million.
This was mainly attributable to a ¥2,402 million increase in short-term loans payable.
(Net Assets)
As of March 31, 2023, net assets increased ¥3,568 million compared to March 31, 2022, to ¥34,252 million.
This was mainly attributable to a ¥2,600 million increase in retained earnings and a ¥912 million increase inforeign currency translation adjustment.
(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2023
As of March 31, 2023, cash and cash equivalents decreased ¥414 million compared with March 31, 2022, to¥8,893 million. This was due to expenses caused by factors such as an increase in inventories and a decrease innotes and accounts payable–trade, which exceeded income from sources such as short-term loans payable.
(Operating activities)
Net cash used in operating activities during the consolidated period under review totaled ¥780 million. Thiswas mainly due to expenses from factors such as an increase in inventories and a decrease in notes and accounts
payable–trade, which exceeded income from factors such as a decrease in notes and accounts receivable–trade.
Since the figure for the previous consolidated fiscal year was an income of ¥2,189 million, this represented an
expense rise of ¥2,970 million.
(Investing activities)
Net cash used in investing activities during the consolidated period under review totaled ¥46 million due tofactors such as the purchase of property and equipment, the purchase of software, etc. Compared to the previous
consolidated fiscal year, this represented an expense decrease of ¥102 million.
(Financing activities)
Net cash provided by financing activities during the consolidated period under review totaled ¥262 million.
This was due to income as the result of factors such as an increase in short-term loans payable, which exceeded
expenses caused by factors such as cash dividends paid. Since the figure for the previous consolidated fiscal year
was an expense of ¥18,584 million, this represented an income rise of ¥18,847 million.

3

(Reference) Performance indicators associated with cash flows
March 2019
Term
48.3

March 2020
Term

March 2021
Term

March 2022
Term

March 2023
Term

57.0

51.0

42.1

43.5

Ratio of shareholders’ equity on current price base (%)

41.2

36.3

45.5

26.9

37.4

Interest-bearing debt to cash flow ratio (year)

2.7

1.3

－

11.2

－

Interest coverage ratio

22.1

44.9

－

19.2

－

Ratio of shareholders’ equity (%)

Notes: Ratio of shareholders’ equity: Shareholders’ equity ÷ Total assets
Ratio of shareholders’ equity on current price base: Market capitalization ÷ Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debts ÷ Operating cash flow
Interest coverage ratio: Operating cash flow ÷ Interest paid
* Each indicator is calculated using the consolidated financial figures.
* The market capitalization is calculated as the share price at term-end multiplied by the number of shares outstanding at term-end (after
the deduction of treasury stock).
* For the operating cash flow, the “cash flow from operating activities” shown in the consolidated statement of cash flows is used. Theinterest-bearing debts feature all debts bearing interest among the debts listed in the consolidated balance sheets. For the amount ofinterest paid, the “interest expenses paid” listed in the consolidated statement of cash flows is used.
* Figures for the interest-bearing debt to cash flow ratio and the interest coverage ratio are not recorded when the operating cash flow
figure is negative.

(4) Future Prospects
1) Forecast for the next fiscal year
In the device business segment, in addition to a portion of highly-profitable projects ending in the first half ofthe consolidated fiscal year ended March 31, 2023, the Group also expects an increase in selling, general andadministrative expenses such as personnel expenses and activity expenses, as well as an increase in interest paidin conjunction with rising interest rates. As a result, the Group expects both net sales and profits to decrease
compared to the consolidated fiscal year ended March 31, 2023.
In the solution business segment, the Group expects net sales and profits to recover from the consolidated
fiscal year ended March 31, 2023 due to factors such as an alleviation of late delivery for hardware such asservers and communications equipment in conjunction with relaxation in the supply and demand forsemiconductors and electronic components. However, this recovery will not be sufficient to cover for thedecrease in the device business segment, and the forecast for consolidated business performance in the fiscal
year ending March 31, 2024 is as follows. The fiscal year ending March 31, 2024 will be the final year of theV73 Medium-Term Management Plan (V73) that the Group is currently implementing. The Group is working
hard to achieve the consolidated business performance listed below and to “maintain an ROE of 6% or higher
during the period of V73,” which is a target of V73.
(Forecast for Consolidated Business Performance)
Net sales:
Operating profit:
Ordinary profit:
Net profit attributable to shareholders of parent company:
Dividend per share:¥157,000 million (down 2.5% YoY)
¥4,400 million (down 35.7% YoY)
¥3,500 million (down 36.5% YoY)
¥2,600 million (down 32.2% YoY)¥100 (dividend of ¥135 per share in theprevious fiscal year)

2) Full-year forecast for assets, liabilities, net assets, and cash flow
We forecast that total assets at the end of the next consolidated fiscal year will be approximately ¥77,900
million, which is roughly the same level as the consolidated fiscal year ended March 31, 2023. We forecast that
this will mainly be attributable to factors including an increase in notes and accounts receivable–trade, and adecrease in inventories. Furthermore, we forecast that the balance of interest-bearing debt will be approximately¥25,400 million, a decrease of approximately ¥1,400 million compared to the end of the consolidated fiscal year
ended March 31, 2023.
4

We forecast that cash and cash equivalents at the end of the next consolidated fiscal year will be approximately¥8,000 million, which is roughly the same level as the consolidated fiscal year ended March 31, 2023.
2. Basic Attitudes Toward the Selection of our Accounting Standards
For the time being, the Group has applied the Japanese standards to its consolidated financial statements, withconsideration given to the comparability of the terms of consolidated financial statements and comparability
among enterprises.
As regards the application of international accounting standards, the Group is open to appropriately meet thesestandards upon consideration of both domestic and overseas circumstances.

53. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Million yen)March 2022 Term
(As of Mar. 31, 2022)

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

Cash and deposits

9,307

8,893

Notes and accounts receivable–trade, and contract assets

34,90835,779AssetsCurrent assets

Electronically recorded monetary claims
Merchandise inventories

957

1,485

19,73225,002

Partly-finished work00Accrued income

69

61

Consumption taxes receivable

115

162

Others

1,399

1,219

Allowance for doubtful accounts

(29)

(32)

66,45972,572

4,607

4,669

Accumulated depreciation(3,348)(3,423)

Buildings and structures, net

1,258

1,246

1,135

1,135

359

375

Accumulated depreciation

(183)

(216)

Lease assets, net

175

159

Construction in progress

13

-

452

487

(384)

(411)

67

76

2,652

2,617

461

358

Investment securities

2,988

2,767

Deferred tax assets

146

181

Others147

154

Allowance for doubtful accounts

(47)

(50)

Total investments and other assets

3,235

3,053

Total current assets
Non-current assets
Property and equipment
Buildings and structures

Land
Leased assets

Other
Accumulated depreciation
Other, net
Total property and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets

6

6,349

6,029

72,80978,601

(Million yen)March 2022 Term
(As of Mar. 31, 2022)

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

Notes and accounts payable–trade

14,455

13,858

Short-term loans payable

24,426

26,828

Liabilities
Current liabilities

Lease obligations

77

67

Accrued corporate tax, etc.

602

958

Allowance for bonuses to employees
Allowance for bonuses to Directors and Audit &Supervisory Board members
Others

597

576

56

61

1,414

1,361

Total current liabilities

41,63043,712

Lease obligations

100

92

Deferred tax liabilities

16

21

Allowance for stock compensation

114

136

Net defined benefit liabilities

158

281

Others103

104

Total non-current liabilities

494

636

42,12544,34814,811

14,811-16

Retained earnings

22,65425,255

Treasury stock(8,773)(8,777)

Total shareholders’ equity

28,69231,305

Valuation difference on available-for-sale securities

567

568

Deferred hedge gains (losses)

(117)

44

Foreign currency translation adjustment

1,512

2,424

Remeasurements of defined benefit plans

(23)

(160)

Total accumulated other comprehensive income

1,937

2,877

53

69

30,68334,25272,80978,601

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

Accumulated other comprehensive income

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

7

(2) Consolidated Profit and Loss Statement, Consolidated Comprehensive Income Statement(Consolidated Profit and Loss Statement)
March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)
123,583

Net sales(Million yen)March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)
161,107

Cost of sales

110,053

144,231

Gross profit on sales

13,52916,876

Selling, general and administrative expenses

9,320

10,028Operating profit

4,209

6,847

Interest income

19

38

Dividend income

43

42

Others11290

Total non-operating profit

175

171

Interest expenses

114

753

Sales discounts

14

26

Commission for purchase of treasury stock

21-

Foreign exchange losses

613

690

Non-operating profit

Non-operating expenses

Others61

37

Total non-operating expenses

825

1,508

3,560

5,511

Gain on sales of non-current assets-

0Gain on sales of investment securities

031

Total extraordinary profits

031

Loss on retirement of non-current assets

04Loss on sales of investment securities-

1

Loss on valuation of investment securities

54

178

Total extraordinary losses

54

185

Net profit before tax and other adjustments

3,506

5,357

Corporate, resident and enterprise taxes

766

1,546

Adjustment for corporate tax, etc.

219

(37)

Total corporate taxes

985

1,508

2,520

3,848

Net profit (loss) attributable to non-controlling interests

(4)

15

Net profit attributable to shareholders of parent company

2,524

3,832

Ordinary profit
Extraordinary profits

Extraordinary losses

Net profit8

(Consolidated Comprehensive Income Statement)(Million yen)March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)
2,520

Net profit

March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)
3,848

Other comprehensive income
Valuation difference on available-for-sale securities

(16)

1

15

162

Foreign currency translation adjustment

1,756

912

Remeasurements of defined benefit plans, net of tax

(71)

(136)

Total other comprehensive income

1,684

939

4,204

4,788

4,208

4,772

(4)

15

Deferred hedge gains (losses)

Comprehensive income(Details)
Comprehensive income attributable to shareholders ofparental company
Comprehensive income attributable to non-controllinginterests9(3) Consolidated Statements of Changes in Shareholders’ Equity
March 2022 Term (April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Capital stock

Capitalsurplus14,811

5,329

Balance as of April 1, 2021
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during the term
Dividends of surplus
Net profit attributable toshareholders of parent
company
Purchase of treasury stock
Retirement of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes during the term
Balance as of March 31, 2022

Retained earnings
33,106

Total
shareholders’equity42,899Treasury stock(10,348)(0)
14,811

5,329

14,811

33,106(0)(10,348)

42,899

(987)

(987)

2,524

2,524
(15,743)(15,743)(5,329)(11,989)

17,318-(5,329)-(10,451)
22,654

1,574(8,773)(14,206)
28,692(Million yen)

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
DeferredRemeasurements
difference on
currency
otherhedge gains
of defined
available-for-saletranslation
comprehensive(losses)benefit planssecurities
adjustment
incomeBalance as of April 1,
2021
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during theterm
Dividends of surplus
Net profit
attributable toshareholders ofparent company
Purchase of treasury
stock
Retirement oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes during
the term
Balance as of March
31, 2022

583

583

(133)

(133)

(244)

47

(244)

47

Noncontrollinginterests

Total net
assets253

58

43,210

-

-

(0)

253

58

43,210

(987)
2,524

(15,743)
(16)

15

1,756

(71)

1,684

(4)

1,679

(16)

15

1,756

(71)

1,684

(4)

(12,526)

567

(117)

1,512

(23)

1,937

53

30,68310

March 2023 Term (April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance as of April 1, 2022
Changes during the term
Dividends of surplus
Net profit attributable toshareholders of parent
company
Purchase of treasury stock
Disposal of treasury stock
Purchase of treasury stock
via Board Benefit Trust
Disposal of treasury stock
for Board Benefit Trust
Net changes of items otherthan shareholders’ equity
Total changes during the term
Balance as of March 31, 2023

14,811Retained earnings-

22,654(8,773)(1,231)(1,231)

3,832

3,832
(0)
12

(0)
12

(99)

(99)

83

99

(3)
(8,777)2,613
31,305

16

14,811

16
16

Total
shareholders’equity28,692

Treasury stock

2,600
25,255(Million yen)
Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
DeferredRemeasurements
difference on
currency
otherhedge gains
of defined
available-for-saletranslation
comprehensive(losses)benefit planssecurities
adjustment
incomeBalance as of April 1,
2022
Changes during theterm
Dividends of surplus
Net profit
attributable toshareholders ofparent company
Purchase of treasury
stock
Disposal of treasury
stock
Purchase of treasury
stock via Board
Benefit Trust
Disposal of treasury
stock for Board
Benefit Trust
Net changes of
items other thanshareholders’ equity
Total changes during
the term
Balance as of March
31, 2023

567

(117)

1,512

(23)

1,937

Noncontrollinginterests
53

Total net
assets30,683(1,231)
3,832

(0)
12
(99)

99

1

162

912

(136)

939

15

955

1

162

912

(136)

939

15

3,568

568

44

2,424

(160)

2,877

69

34,25211

(4) Consolidated Statement of Cash Flows(Million yen)March 2022 Term
March 2023 Term
(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Operating activities
3,506

5,357

Depreciation and amortization

260

300

Amortization of goodwill

26

26

Increase (decrease) in allowance for doubtful accounts

250

Net profit before tax and other adjustments

Increase (decrease) in allowance for stock compensation

40

34

Increase (decrease) in net defined benefit liabilities

(49)

(79)

Interest and dividend income

(62)

(81)

Interest expenses

114

753

Loss (gain) on sales of non-current assets-(0)Loss (gain) on sales of investment securities

(0)

(29)

Loss (gain) on valuation of investment securities

54

178

Decrease (increase) in notes and accounts receivable–trade

(13)

786

(4,561)(4,472)233(1,694)

3,700

(47)

Increase (decrease) in accrued consumption taxes

(19)

20

Others(553)

48

Subtotal

2,701

1,103

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable–trade
Decrease (increase) in consumption taxes refund receivable

69

87

Interest expenses paid

(114)

(753)

Corporate and other taxes paid

(467)

(1,218)Net cash provided by (used in) operating activities

2,189

(780)

(67)

(89)

0

-

Purchase of software

(85)

(23)

Purchase of investment securities

(0)

(0)

Proceeds from sales of investment securities

172

Others

2

(6)

(149)

(46)

(1,778)

1,582

(77)

(93)

(15,743)(0)Interest and dividend income received

Investing activities
Purchase of property and equipment
Proceeds from sales of property and equipment

Net cash used in investing activities
Financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Net decrease (increase) in treasury stock(985)(1,225)(18,584)

262

308

149

Net increase (decrease) in cash and cash equivalents(16,236)(414)

Balance of cash and cash equivalents, beginning of the period

25,544

9,307

Balance of cash and cash equivalents, end of the period

9,307

8,893

Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents12(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern)
None(Additional Information)
Performance-Based Stock Compensation Plan for Directors
The Company has introduced a Performance-Based Stock Compensation Plan for Directors, for the purposeof further clarifying the link between the compensation to the Company’s Directors (excluding External
Directors) and the value of its shares. With the introduction of the Performance-Based Stock Compensation Plan,
Directors will not only enjoy the advantages when the Company’s share price rises but also bear the risks when
the share price declines, sharing with shareholders the benefits and risks of fluctuations in share prices. This
move is intended ultimately to incentivize Directors to increase medium-to-long-term business results andincrease enterprise value.
1) Overview of transactions
In the Performance-Based Stock Compensation Plan, a trust that is funded by Company expenditures acquires
shares in the Company. The Board of Directors establishes regulations for the granting of shares, according towhich each Director is awarded points for his or her degree of accomplishment of numerical targets based on
management indices. Each Director is then awarded the Company’s shares in proportion to the points awarded,
through the trust. In principle, the shares are awarded to Directors at the time of their resignation or retirement.
2) Accounting treatment of Company shares remaining in the trust
The book value of the trust (net of ancillary expenses) for shares held by the trust was ¥190 million in theprevious consolidated fiscal year and ¥277 million in the consolidated fiscal year under review, and is recorded
as treasury stock in the shareholders’ equity.
The number of said shares was 132,800 as of the end of the previous consolidated fiscal year and 162,400 asof the end the consolidated fiscal year under review. The average number of shares was 132,800 during theprevious consolidated fiscal year and 131,426 during the consolidated fiscal year under review. These shares areincluded in the shares of treasury stock excluded for calculation of per share information.

13

(Segment Information and Other)[Segment Information]
1. Outline of Report Segments
The report segments are composition units of the Company for which separate financial information isavailable. The Board of Directors reviews these segments periodically to determine the allotment ofmanagerial resources and evaluate the financial results.
The Company has business headquarters for individual merchandise and services. The businessheadquarters work out domestic and overseas comprehensive strategies about their merchandise and services,and do business activities according to the strategies.
Therefore, the Company is organized in two segments by merchandise and services based on businessheadquarters. They are device segment and solution segment.
In the device business segment, our leading products are semiconductors (including system LSIs,
microcomputers, power semiconductors, LCD driver ICs and memory) and electronic components (including
connectors, capacitors and LCD panels). These products are sold mainly to electronics manufacturers. We
also provide technical support such as software development and module development.
In the 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.
2. Amount calculation methods for sales, profit or loss, assets, liabilities, and other items in each report segment
The accounting method in the reported business segments is almost the same as that used for preparing
the consolidated financial statements.
Profit (loss) in the report segments are based on ordinary profit (loss).

14

3. Information regarding the amounts of sales, profit or loss, assets, liabilities, and other items in each report
segment
March 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)(Million yen)

Report segment

Net sales
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation andamortization (Note 3)
Increase of property andequipment and intangible
assetsAdjustment
amount (Note 1)

Amountaccounted on
consolidated
financialstatements(Note 2)

Devicesegment

Solutionsegment

110,522

13,061

123,583-

123,583

-

-

-

-

-

110,5222,188
58,071

13,061
1,372
5,951

123,583
3,560
64,023

8,785

123,583
3,560
72,809

192

68

260

-

260

56

44

101

105

207

Total

Notes: 1. The adjustment amount of segment assets includes investment capital (cash, deposits, and securities), long-term investment(investment in securities), and assets related to the management divisions of the Company.
2. The segment profit coincides with the ordinary profit in the consolidated profit and loss statement.
3. The depreciation and amortization do not include the amortization of goodwill.

March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)(Million yen)

Report segment

Net sales
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation andamortization (Note 3)
Increase of property andequipment and intangible
assetsAdjustment
amount (Note 1)

Amountaccounted on
consolidated
financialstatements(Note 2)

Devicesegment

Solutionsegment

147,575

13,532

161,107-

161,107

-

-

-

-

-

147,575
4,144
64,053

13,532
1,366
6,992

161,107
5,511
71,045

7,556

161,107
5,511
78,601

225

75

300

-

300

75

34

110

86

197

Total

Notes: 1. The adjustment amount of segment assets includes investment capital (cash, deposits, and securities), long-term investment(investment in securities), and assets related to the management divisions of the Company.
2. The segment profit coincides with the ordinary profit in the consolidated profit and loss statement.
3. The depreciation and amortization do not include the amortization of goodwill.

15

[Related information]
March 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)
1. Information of products and services
The information by product and service coincides with that by report segment, and is, therefore, omitted.
2. Information of regions(1) Net sales(Million yen)Japan
43,022

Asia

North America

80,116

Others

355

Total
89

123,583(2) Property and equipment
As the amount of property and equipment in Japan exceeds 90% of the amount stated in the consolidatedbalance sheets, description is omitted.
3. Information of major clients
As none of the items among net sales to outside customers account for 10% or more of net sales on the
consolidated profit and loss statement, description is omitted.
March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)
1. Information of products and services
The information by product and service coincides with that by report segment, and is, therefore, omitted.
2. Information of regions(1) Net sales(Million yen)Japan
45,653

Asia

North America

114,717

546

OthersTotal
190

161,107(2) Property and equipment
As the amount of property and equipment in Japan exceeds 90% of the amount stated in the consolidatedbalance sheets, description is omitted.
3. Information of major clients
As none of the items among net sales to outside customers account for 10% or more of net sales on the
consolidated profit and loss statement, description is omitted.
[Information regarding impairment loss for non-current assets in each report segment]
None

16

[Information regarding the amount of amortization of goodwill and the balance in each report segment]
March 2022 Term (Apr. 1, 2021 – Mar. 31, 2022)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

26

-

-

26

Balance at term-end

97

-

-

97

March 2023 Term (Apr. 1, 2022 – Mar. 31, 2023)(Million yen)

Device segment

Solution segment

Elimination/Corporate

Total

Amount ofamortization

26

-

-

26

Balance at term-end

70

-

-

70

[Information regarding profit on negative goodwill in each report segment]
None(Per Share Information)(Yen)

March 2022 Term
(Apr. 1, 2021 – Mar. 31, 2022)

March 2023 Term
(Apr. 1, 2022 – Mar. 31, 2023)

Net assets per share

2,514.04

2,803.65

Net profit per share

171.12314.43

Notes: 1. Diluted net profit per share is not presented since the Company has no dilutive shares.
2. Shares of the Company which are owned by a trust in connection with the Performance-Based Stock Compensation Plan for
Directors (excluding the External Directors) and which are recorded as treasury stock in shareholders' equity are included in
the shares of treasury stock that are excluded from the total number of shares outstanding at the end of term for calculation of
net assets per share (previous consolidated fiscal year: 132,800 shares, current consolidated fiscal year: 162,400 shares), andalso are included in treasury stock excluded in the calculation of amount of average stock during the term for calculation of
net profit per share (previous consolidated fiscal year: 132,800 shares, current consolidated fiscal year: 131,426 shares).
3. Net profit per share was calculated on the following basis.

(Million yen)March 2022 Term
March 2023 Term
(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Net profit attributable to shareholders of parent
company
Amount not attributable to ordinary shareholders
Net profit attributable to shareholders of parent
company available to ordinary shares
Average shares outstanding available to ordinary shares(thousand shares)

17

2,524

3,832

-

-

2,524

3,832

14,753

12,188(Significant Subsequent Events)
None
4. Other(1) Changes in Officers (Scheduled for June 22, 2023)
1) Changes in Representatives
None2) Changes in Other Officers
 Candidates for new Directors
Director, Operating Officer Hitoshi Iwakami [Operating Officer, Director of Electronic Components Sales
Promotion Unit and Director of Overseas Sales Unit]
Director Minako Adachi (A candidate for External Director)
 Directors scheduled for retirement
Mitsuhiro Ogawa [Director, Senior Operating Officer, Deputy Supervisor of Device Business](After retirement, scheduled to be appointed as Senior Operating Officer and Deputy Supervisor of Device
Business)
Tatsuo Takeuchi [External Director]
Current position is listed in brackets [ ].

18