November 7, 2012
To All Stakeholders:Name of Company:
Stock Code:
Stock Exchange Listing:
Headquarters:
Representative
Title:Name:

KAGA ELECTRONICS CO., LTD.
8154
Tokyo Stock Exchange, First Section
3-12-8, Sotokanda Chiyoda-ku, Tokyo
President & COO
Tomohisa Tsukamoto

Contact Person

Director, Finance & Administration
Headquarters
Eiji Kawamura+81-(0)3-4455-3111

Title:Name:
Phone:

Notice concerning Differences between Forecast and Actual Performance in First Half of Fiscal YearEnding March 2013 and Revisions to the Annual Forecasts
KAGA ELECTRONICS CO., LTD. is announcing the following reasons for the differences between actual resultsof operations in the first half of the fiscal year ending on March 31, 2013 (April 1, 2012 to September 30, 2012) andthe forecast that was announced on July 31, 2012.
In Addition, the company announces the revisions made to the annual forecasts of consolidated results for the fiscalyear ending March 31, 2013 that was announced on July 31, 2012, based on recent performance trends.

1. Differences between actual results of consolidated operations in the first half and the forecast
First half (April 1, 2012 to September 30, 2012)
Net sales
million yen

Operatingincome
million yen

Ordinary
incomemillion yen

Net income
million yen

Earnings pershareyen

Previous forecast (A)104,000

(200)

(100)

(300)

(10.87)

Actual results (B)103,845

(470)

(355)

(1,373)(49.79)Difference (B–A)

(155)

(270)

(255)

(1,073)-

Pct. change (%)

(0.1)

--

-

-

116,237

771

895

301

10.92

(Ref.) Previous results(First half of FY 3/2012)

2. Revisions of forecasts of consolidated operations
Fiscal year ending March 31, 2013 (April 1, 2012 to March 31, 2013)Operating
Ordinary
Net sales
incomeincomemillion yen
million yen
million yen

Net income
million yen

Earnings pershareyen

Previous forecast (A)230,000

1,500

1,800

1,000

36.24

Revised forecast (B)230,000

1,500

1,800

300

10.87

Difference (B–A)

---

(700)

-

Pct. change (%)---(70.0)-

229,856

2,067

2,569

914

33.13

(Ref.) Previous fiscal year
(FY3/2012)

3. Reasons for differences and forecast revision
In the first half of the current fiscal year, the operating environment for the KAGA ELECTRONICS Group was
more difficult than expected because of soft demand for consumer electronics and other reasons. As a result,declines in sales and earnings in the consumer information equipment business and software-related businesswere much larger than was initially expected. In addition, there was an asset impairment loss for fixed assets at apoorly performing subsidiary and a reversal of deferred tax assets. For these reasons, first half sales and earnings
were below the forecast.
In the current fiscal year, earnings are expected to recover starting in the third quarter due to growth in sales
channels in growing markets such as automotive products and to growth of the EMS business. However, theforecast has been revised as shown above mainly because of an asset impairment loss for fixed assets andreversal of deferred tax assets in the fiscal year’s first half.
NOTE: Forecasts for results of operations are based on information available to management at the time thismaterial was prepared and assumptions that management believes are reasonable. Actual results may differ
significantly from these statements for a number of reasons.