November 6, 2018
Name of Company:

KAGA ELECTRONICS CO., LTD.

Stock Code:8154 Tokyo Stock Exchange, First Section

Head Office:20 Kandamatsunagacho, Chiyoda-ku, Tokyo

Representative:

Ryoichi Kado, President & COO

Contact:

Eiji Kawamura, Managing Director,
Head of Administrative Headquarters
Phone: +81-(0)3-5657-0111

KAGA ELECTRONICS Announces Revision of Consolidated Performance Forecast
and Interim Dividend Payout from Retained Earnings
KAGA ELECTRONICS CO., LTD (TSE: 8154; hereafter, the “Company”) announced today revision of its
consolidated performance forecast released on August 7, 2018 to reflect the recent performance, the details ofwhich are as follows.
Further, the Company announced that at the meeting of the Board of Directors held on November 6, 2018, it
was resolved to distribute retained earnings (date of record: September 30, 2018) in the form of an interim
dividend as outlined below:
 Revision of Consolidated Performance Forecast
Revised consolidated performance forecast for the full fiscal year ending March 31, 2019
(From April 1, 2018 to March 31, 2019)
OperatingincomeNet sales

Profitattributable toowners ofparentOrdinary
incomeEarnings pershare

Million yen

Million yenMillion yen

Million yen

Yen

Previous Forecast (A)-----Revised Forecast (B)290,000

7,700

8,000

7,300

266.04

Difference (B)-(A)-----Difference (%)

----

-

235,921

8,119

8,740

6,490

236.58(Reference) Results for the fiscal
year ended March 31, 2018

Reason for the Revision
In the electronics industry, the principal sector of operations of the KAGA ELECTRONICS Group (“theGroup”), demand for electronic parts continues to grow, notably with expansion of the market for automotive
devices where digital and cyber trends are making headway, as well as increase in the demand for storage in
response to the needs of the era of big data against the backdrop of the IoT . On the other hand, the supply side’s
efforts to increase production tend to fall behind and, since the latter half of the previous consolidated fiscal year, atight supply-demand situation has become tangible in certain components and materials.
Given significant uncertainties for the future as described above, the Company refrained from presenting, atthe beginning of the fiscal year, the full year performance forecast for the fiscal year ending March 31, 2019.
However, at this time, the consolidated performance forecast for the full fiscal year ending March 31, 2019 has－ 1 －been calculated as presented above, based on consolidated financial results for the six month period ended
September 31, 2018, as well as the recent market trends. The forecast also incorporates the September 10, 2018
announcement “Notice Regarding Acquisition of Shares in Fujitsu Electronics Inc. (and Making It a Subsidiary)”
and its effects on net sales and profits.
(On the Notice Regarding Acquisition of Shares in Fujitsu Electronics Inc. [and Making It a Subsidiary])
Changes are taking place with increasing speed in the business environment surrounding the Group. Further, inthe electronics trading industry where there still are many players competing with each other, we expect thatcompetition will become more and more intense. Amidst these circumstances, the Company released the “NoticeRegarding Acquisition of Shares in Fujitsu Electronics Inc. (and Making It a Subsidiary)” , as part of its growthstrategies for the future.
By making Fujitsu Electronics Inc. a subsidiary, the Company evolves into a corporate group with total netsales of about 500 billion yen and can solidify its management foundation towards the goal of becoming the“industry leader in Japan” as set out in its Medium-term Management Plan. Also, by leveraging this solidmanagement foundation and through continued efforts to expand the group’s scale and improve its management
quality, the Company seeks to achieve sustainable growth as a world-class company which can stand up tooverseas competitors with their sales crossing the trillion yen mark.
Incorporating this deal, the Company announced today the “Medium-term Management Plan 2021,” which
outlines the growth scenario it envisages over the medium to long-term.

 Details of Interim Dividend
Determined amountPrevious interim dividend
forecast(Announced on August 7, 2018)

Interim dividend for the firsthalf ended September 30, 2017

September 30, 2018

September 30, 2018

September 30, 201735.00 yen(Ordinary dividend: 30.00 yen)(Commemorative dividend:5.00 yen)

30.00 yen

30.00 yen(Ordinary dividend: 25.00 yen)
(Extraordinary dividend:5.00 yen)

Total dividend amount

960 million yen-823 million yen

Effective date

December 7, 2018-

December 1, 2017

Dividend resource

Retained earnings-

Retained earnings

Record date
Dividend per share

Reasons
Guided by its corporate philosophy of “Everything we do is for our customers” and leveraging its strength as
an independent general trading company with a specialization in electronics, the Company has been, since its
foundation in 1968, providing a wide variety of services, both in Japan and abroad, ranging from the distributionof electronic parts and EMS business, to providing customers with support in the planning and development of
their products, creation of software and video images, and systems support centering on network solutions.
By responding to a variety of customer needs as described above, the Group has been expanding the scope of
its operations and has celebrated its 50th anniversary on September 12 ,2018. We are deeply grateful to ourshareholders and stakeholders for their support over the years, without which this could not have beenaccomplished.
To express our appreciation to shareholders for their continued support, the Company will pay a “50thanniversary commemorative dividend” of 5 yen, in addition to an ordinary dividend of 30.00 yen, for a total of35.00 yen per share as interim dividend for the fiscal year ending March 31, 2019.

－ 2 －(Reference) Breakdown of annual dividend
Dividend per share
Record dateInterim

Fiscal year-end

Total

40.00 yen

75.00 yen(Ordinary dividend: 70.00 yen)(Commemorative dividend:5.00 yen)

Dividend forecast

35.00 yen(Ordinary dividend: 30.00 yen)(Commemorative dividend:5.00 yen)
30.00 yen
40.00 yen
70.00 yen
Fiscal year ended(Ordinary dividend: 25.00 yen)(Ordinary dividend: 35.00 yen)(Ordinary dividend: 60.00 yen)March 2018
(Extraordinary dividend: 5.00 yen) (Extraordinary dividend: 5.00 yen) (Extraordinary dividend: 10.00 yen)
Fiscal year ending
March 31, 2019

（Note）Forward-looking statements in these materials are based on information available to management at thetime this report was prepared and assumptions that management believes are reasonable. Actual results
may differ significantly from these statements for a number of reasons.

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