August 8, 2024

Summary of Consolidated Financial Results
for the First Quarter Ended June 30, 2024 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:

KAGA ELECTRONICS CO., LTD.
8154
URL: https://www.taxan.co.jp/
Tokyo Stock Exchange, Prime Market
Title: Representative Director,
Representative
President & COO
Title: Senior Executive Officer
Contact Person
Head of Administration Headquarters
Phone:+81-(0)3-5657-0111
Date of commencement of dividend payment (tentative):－
Earnings supplementary explanatory documents:
Yes
Earnings presentation:No

Name: Ryoichi Kado
Name: Yasuhiro Ishihara(Yen in millions, rounded down)
1. Financial results for the first quarter of the fiscal year ending March 2025 (April 1, 2024 – June30, 2024)(1) Result of operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)
Profit attributable
Operating income Ordinary income
to owners ofparentNet sales
Million yen%

Million yen%

Million yen%

Million yen%

First quarter ended June 2024

128,638(6.6)

5,550 (20.6)

6,045 (12.5)

4,127 (28.4)

First quarter ended June 2023

137,694(7.8)

6,994 (28.8)

6,909 (29.9)

5,767 (17.4)

Note: Comprehensive income: 1Q of FY2025/3: 9,635 million yen [(2.5%)] 1Q of FY2024/3: 9,404 million yen [(16.9%)]

Earnings per
share(diluted)

Earnings per
share
Yen

Yen

First quarter ended June 2024

157.12－First quarter ended June 2023

219.63－(2) Financial Position (Consolidated)
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of June 30, 2024

296,909

158,162

53.1

As of March 31, 2024

286,792

151,231

52.6

Reference: Shareholdersʼ equity︓As of June 30, 2024: 157,662 million yen

As of March 31, 2024: 150,834 million yen

2. Dividends
Dividend per share

1Q

2Q

3Q

Year-end

Full year

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 2024－

Fiscal year ending March 2025－

Fiscal year ending March 2025 (Forecast)110.00－110.00220.00110.00

－

55.00

－

Notes: 1. Change in the dividend forecast from the latest announcement: None
2. The Company plans to conduct a two-for-one stock split of its common stock effective October 1, 2024. The
amount of the year-end dividend per share presented above for the fiscal year ending March 2025 (forecast)takes into account the effect of the stock split, and the full-year dividend amount is indicated as “–”. If thestock split is not taken into account, the year-end dividend per share and the full-year dividend per share forthe fiscal year ending March 2025 (forecast) will be 110.00 yen and 220.00 yen, respectively.

3. Forecast for the fiscal year ending March 2025 (Consolidated, April 1, 2024 – March 31, 2025)(Percentage figures represent year on year changes)
Net sales

Full year

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

555,000

2.3

26,0000.6

26,0000.1

Profit attributable

Earnings per

to owners of parent

shareMillion yen%

Yen

18,000 (11.5)

342.63

Note: 1. Change in the forecast from the latest announcement: None
2. With respect to the earnings per share for the fiscal year ending March 2025 (full year), the figure presented
above is the amount that takes into account the stock split as described in “2. Dividends.” Note that theearnings per share for the fiscal year ending March 2025 (full year) would be 685.26 yen if the stock split is
not taken into account.

* Notes(1) Significant changes in the scope of consolidation during the period: None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial
statements: None(3) Changes in accounting policies, estimates, and retrospective restatement(a) Changes due to revision of accounting standards : Yes(b) Changes other than (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: NoneNote: For details, please refer to “(3) Notes to quarterly consolidated financial statements (Notes tochanges in accounting policies) under 2. Quarterly Consolidated Financial Statements and Major
Notes” on page 9 of the attached Supplementary Information.
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of June 30, 2024:(b) Treasury shares
As of June 30, 2024:

28,702,118

As of March 31, 2024

28,702,118

2,434,694

As of March 31, 2024

2,434,544(c) Average number of shares (quarterly consolidated during the period)
Period ended June 30, 2024:
26,267,519
Period ended June 30, 2023: 26,261,015* Review of the Japanese-language originals of the attached consolidated quarterly financial statements
by certified public accountants or audit firm
: None* Cautionary statement regarding forecasts of operating results and special notes(Caution regarding forward-looking statements)
Forward-looking statements in these materials are based on information available to management at
the time this report was prepared and assumptions that management believes are reasonable. Actual
results may differ significantly from these statements for a number of reasons. For conditions asassumption for earnings forecast and cautionary statement regarding use of the forecast, please see “1.
Results of Operations (3) Qualitative information on consolidated earnings forecast” on page 4.
(How to obtain supplementary materials on quarterly financial results)
Supplementary materials on financial results are disclosed through TDnet and posted on the Companyʼs
website today (August 8, 2024).

Index for Supplementary Information
1. Results of Operations ............................................................................................ 2(1) Overview of consolidated business performance ................................................ 2(2) Overview of financial condition ........................................................................ 4(3) Qualitative information on consolidated earnings forecast ................................... 4
2. Quarterly Consolidated Financial Statements and Major Notes ................................... 5(1) Quarterly consolidated balance sheet................................................................ 5(2) Quarterly consolidated statements of income and comprehensive income ............. 7
For the first quarter (April 1, 2024 - June 30, 2024) ......................................... 7(3) Notes to the quarterly consolidated financial statements ..................................... 9(Notes to going concern assumptions) ............................................................ 9(Notes to significant change in shareholdersʼ equity) ......................................... 9(Notes to changes in Accounting Policies) ........................................................ 9(Notes to the quarterly consolidated statement of cash flows) ........................... 9(Notes to segment information) ................................................................... 10- 1-

1. Results of Operations(1) Overview of consolidated business performance
During the first quarter of the consolidated fiscal period under review, net sales
decreased by 6.6% year on year to 128,638 million yen, due to such factors in theelectronic components business as the impact of inventory adjustments at key customers
which emerged from the second half of the fiscal year ended March 2024, as well as
diminution of transactions with a certain major customer of an overseas subsidiary.
Gross profit was generally at the same level year as the same period of the previous
fiscal year despite a net sales decrease notably in the electronic components business,down 3.3% year on year to 16,980 million yen, with gross profit margin improving by 0.5
percentage points year on year, reflecting improved sales mix resulting from a reduction
in sale of lower-margin products. Operating income decreased by 20.6% year on year to5,550 million yen. In addition to a gross profit decline, the decrease was also attributable
to an increase in selling, general and administrative expenses resulting primarily fromwage increases implemented in April 2024 for the Groupʼs employees in Japan. Ordinary
income decreased by 12.5% year on year to 6,045 million yen, due partly to the impactof foreign exchange gains and losses.
Profit attributable to owners of parent decreased by 28.4% year on year to 4,127
million yen, partly reflecting the absence of the 1,065 million yen gain on sale ofinvestment securities recorded in the same period of the previous fiscal year.
In the earnings assumption for the fiscal year ending March 2025, the impact of
inventory adjustments at key customers is carefully factored into our assumption of adecrease in both net sales and incomes in the first half, and an increase in net sales andincomes in the second half reflecting recovery from such adjustment phase. In line withthis scenario, performance got off to a good start in the first quarter under review.
FY 2024/3 1Q

FY 2025/3 1Q(April 1, 2023 –(April 1, 2024 –June 30, 2023)

June 30, 2024)

YoY（Million yen）

（Million yen）

（Million yen）

Net sales

137,694

128,638(9,056)(6.6％)

Gross profit

17.55316.980(572)(3.3％)（Margin）

12.7％

13.2％

0.5pt

－

SG&A

10,55911,430871

8.3％

Operating income

6,994

5,550

(1,443)(20.6％)

Ordinary income

6,909

6,045

(864)

(12.5％)

Profit before income taxes

7,912

6,045

(1,867)(23.6%)

5,767

4,127

(1,640)(28.4%)

137.37yen

155.88yen

18.51yen－

Profit attributable to ownersof parent
Exchange Rate
(Average rate during the year period)

USD

- 2-

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors,
general electronic components and other products, the electronics manufacturingservice (EMS*1), and other activities)
In this business, the components sales business enjoyed robust sales of SoC*2
products by Kaga FEI Co., Ltd., but overall, business was slow due largely to the impact
of inventory adjustments at key customers which emerged from the second half of the
fiscal year ended March 2024, and diminution of transactions with a certain major
customer of an overseas subsidiary of Excel Co., Ltd.
In the EMS business, although sales in applications related to air-conditioning
equipment were affected by inventory adjustments at key customers, net sales turned
upward on the back of solid sales in the automotive sector as well as sales recovery inapplications related to industrial equipment.
As a result, net sales decreased by 7.2% year on year to 111,320 million yen, andsegment income decreased by 26.9% year on year to 4,331 million yen.
Note: 1. Electronics Manufacturing Service: Provision of product development and manufacturing services onan outsourcing basis.
2. Abbreviation for System on a Chip. A design technique of integrating all the functions necessary for
operation of a device or system on a single semiconductor chip.

(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances,photograph and imaging products, original brand products, and other products)
In this business, the PC sales business saw continued strong sales of PCs foreducational institutions amid the season of high demand for newly enrolled students, incontrast to sluggish sales of PCs for mass retailers due to a reduction in product lines by
a major PC supplier. Additionally, the LED installation business faced a decrease in net
sales given completion of the large-scale project that the Group had been pushing
forward on a full sale since the fiscal year ended March 2023.
As a result, net sales decreased by 12.0% year on year to 10,606 million yen, andsegment income decreased by 14.4% year on year to 639 million yen.
(c) Software (Production of computer graphics, planning and development of amusement
products, and other activities)
In this business, orders for computer graphics production remained generally steady.
Net sales increased by 9.4% year on year to 631 million yen, and segment income of
35 million yen was recorded (4 million yen of segment loss in the same period of theprevious fiscal year).
(d) Others (Repair and support for electronics equipment, and sales of amusement
equipment and sports goods, and others)
In this business, PC product and peripheral recycling business remained strong, as did
sales of amusement equipment in both domestic and overseas markets. Net sales
increased by 20.4% year on year to 6,079 million yen, and segment income increased
by 58.3% year on year to 461 million yen.
Financial Results by Business Segment
FY 2024/3 1Q

FY 2025/3 1Q(April 1, 2023 –(April 1, 2024 –June 30, 2023)

June 30, 2024)（Million yen）

（Million yen）

120,015
5,922

111,320
4,331(8,694)(1,591)(7.2%)(26.9%)

YoY（Million yen）

Electronic
components

Net sales
Segment income

Informationequipment

Net sales
Segment income

12,050746

10,606639(1,443)(107)(12.0%)(14.4%)

Software

Net sales
Segment income

577
(4)

631
35

54
39

9.4%
－

Others

Net sales
Segment income

5,050
291

6,079
461

1,028
169

20.4％
58.3%

Total

Net sales
137,694
128,638(9,056)(6.6％)
Segment income
6,994
5,550
(1,443)(20.6％)
Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures
for the total.
- 3-

(2) Overview of financial condition
Assets, liabilities and net assets
Total assets as of June 30, 2024 increased by 10,117 million yen from March 31, 2024,
to 296,909 million yen.
Current assets increased by 7,078 million yen from March 31, 2024, to 251,707 million
yen. This was primarily due to a 6,565 million yen increase in inventory and a 5,375 million
yen increase in cash and deposits, along with a 6,338 million yen decrease in accounts
receivable – trade.
Non-current assets increased by 3,039 million yen from March 31, 2024, to 45,202
million yen. This is primarily due to a 1,011 million yen increase in Machinery, equipment
and vehicles, net and a 1,497 million yen increase in Investment securities.
Liabilities increased by 3,187 million yen from March 31, 2024, to 138,747 million yen.
Thais is primarily due to a 4,838 million yen increase in Notes and accounts payable – trade,along with a 1,434 million yen decrease in Accrued expenses.
Net assets increased by 6,930 million yen from March 31, 2024, to 158,162 million yen.
This is primarily due to a 1,237 million yen increase in retained earnings and a 5,128
million yen increase in foreign currency translation adjustment due to 4,127 million yen in
profit attributable to owners of parent.
(3) Qualitative information on consolidated earnings forecast
The full-year earnings forecasts for the fiscal year ending March 2025, announced on
May 9, 2024, remain unchanged. Should any revision to the forecasts become necessary
in the future, an announcement will be made promptly.

- 4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Million yen)
Fiscal year ended March 2024 First quarter ended June 2024
(As of March 31, 2024)(As of June 30, 2024)
ASSETS
Current assets
Cash and deposits

66,596

71,972900

2,055

10,146

9,889

101,528

94,291

171

161

Merchandise and finished goods

37,99943,509Work in process

1,878

2,287

Notes receivable – trade
Electronically recorded monetary claims operating
Accounts receivable – trade
Securities

Raw materials and supplies

14,861

15,507

Other

10,77012,256

(223)

(224)

244,629

251,707

Buildings and structures, net

7,266

7,601

Machinery, equipment and vehicles, net

7,647

8,658

Tools, furniture and fixtures, net

1,362

1,464

6,036

6,125

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Land
Construction in progress

2,824

3,387

Total property, plant and equipment

25,13527,238Intangible assets
Goodwill

16

8Software

2,021

1,934

54

51

2,092

1,993

Investment securities

10,472

11,970

Deferred tax assets

1,179

858

Distressed receivables

5,015

5,019

Other

3,340

3,198

(5,073)(5,077)

Total investments and other assets

14,934

15,969Total non-current assets

42,16245,202286,792

296,909

Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts

Total assets- 5-

(Million yen)
Fiscal year ended March 2024 First quarter ended June 2024
(As of March 31, 2024)(As of June 30, 2024)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade71,392

76,231

Short-term loans payable

10,604

11,245－5,000

Accrued expenses

8,419

6,985

Income taxes payable

2,238

1,324

437

12

Current portion of bonds payable

Provision for directorsʼ bonuses
Other

11,70910,929Total current liabilities

104,803111,728

Non-current liabilities
Bonds payable

10,0005,000

Long-term loans payable

10,50010,500

Deferred tax liabilities

3,241

4,344

94

83

Net defined benefit liability

2,342

2,429

Asset retirement obligations

660

677

3,918

3,984

Provision for directorsʼ retirement benefits

Other
Total non-current liabilities
Total liabilities

30,75727,019135,560

138,747

12,133

12,133

NET ASSETS
Shareholdersʼ equity
Capital stock
Capital surplus

14,84914,849Retained earnings

110,250

111,488

Treasury shares(5,603)(5,604)

Total shareholdersʼ equity

131,629

132,866

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

3,075

3,547

21

20

Foreign currency translation adjustment

15,80320,931Remeasurements of defined benefit plans

303

296

Total accumulated other comprehensive
income19,204

24,795396

499

Non-controlling interests
Total net assets
Total liabilities and net assets- 6-

151,231

158,162

286,792

296,909(2) Quarterly consolidated statements of income and comprehensive income
For the First quarter (April 1, 2024 – June 30, 2024)
First quarter ended June 2023
(April 1, 2023– June 30,2023)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Commission fee Share of profit of entities
accounted for using equity method
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
loss on net monetary position
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on retirement of non-current assets
Loss on valuation of investment securities
Other
Total extraordinary loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent
Profit (loss) attributable to non-controllinginterests- 7-(Million yen)First quarter ended June 2024
(April 1, 2024 – June 30, 2024)

137,694
120,140
17,553
10,5596,994

128,638
111,657
16,98011,430
5,550

116
76
51

322
127
35

31

22

－
182
458

35
274
818

226
238
38
38
542
6,909

199
－
86
37
323
6,045

1
1,065
1,067

0
0
1

5
0
58
0
65
7,912
606
1,533
2,139
5,772

－
1
－
1
2
6,045
720
1,285
2,006
4,039

5,767

4,127

5

(87)

(Million yen)First quarter ended June 2023
(April 1, 2023 – June 30,2023)

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

First quarter ended June 2024
(April 1, 2024 – June 30, 2024)

(200)

472

28

(0)

Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method

3,782

5,142

(5)

(7)

26

(11)

Total other comprehensive income

3,631

5,595

9,404

9,635

9,394

9,718

9

(83)

Comprehensive income
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests- 8-(3) Notes to the quarterly consolidated financial statements(Notes to going concern assumptions)Not applicable(Notes to significant change in shareholdersʼ equity)
Not applicable(Notes to changes in Accounting Policies)(Application of “Accounting Standard for Current Income Taxes” and related implementation
guidance)
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October28, 2022; hereinafter, the “Revised Accounting Standard of 2022”) and related
implementation guidance are applied since the beginning of the first quarter under review.
With respect to the revision concerning accounting classification of income taxes (taxes
on other comprehensive income), the transitional treatment stipulated in the proviso of
Paragraph 20-3 of the Revised Accounting Standard of 2022 and the transitional treatment
stipulated in the proviso of Paragraph 65-2 (2) of the Guidance on Accounting Standard forTax Effect Accounting (ASBJ Guidance No. 28, October 28 2022; hereinafter, “Revised
Guidance of 2022”) are followed. The foregoing has no impact on the quarterly
consolidated financial statements for the first quarter under review.
With respect to the revision concerning change in the accounting treatment inconsolidated financial statements of tax deferral of gains/losses on sale of subsidiariesʼ
shares, etc. between consolidated subsidiaries, the Company has applied the Revised
Guidance of 2022 from the beginning of the first quarter under review. As this change in
the accounting policies is to be applied retrospectively, the quarterly consolidated financial
statements and the full-year consolidated financial statements for the fiscal year ended
March 31, 2024, reflect retrospective application of the said change in the accounting
policies. The said change has no impact on the quarterly consolidated financial statements
for the first quarter ended June 30, 2023, and the consolidated financial statements for the
fiscal year ended March 31, 2024.
(Notes to the quarterly consolidated statement of cash flows)
The Company has not prepared a quarterly consolidated statement of cash flows for the
first quarter under review. Note that depreciation (inclusive of amortization related tointangible assets excluding goodwill) and amortization of goodwill for the first quarter
under review are as shown below.
(Million yen)First quarter ended June 2023
(April 1, 2023 – June 30,2023)

Depreciation
Amortization of goodwill

935
8

- 9-

First quarter ended June 2024
(April 1, 2024 – June 30, 2024)

1,043
8

(Notes to segment information)
For the first quarter ended June 2023 (April 1, 2023 – June 30, 2023)
1. Information about net sales and income (loss) by reportable segments(Million yen)

Reportable segments
Electronic

Information

components equipment

SoftwareAdjustment Consolidated

Others

Total(Note 1)

(Note 2)

Net sales:
Sales to externalcustomers

120,015

12,050577

5,050

137,694－

137,694

Inter-segment
sales or transfers

840

2,426

178

1,247

4,692

(4,692)－

120,855

14,477755

6,298

142,386(4,692)

137,694

5,922

746

(4)

291

6,956

37

6,994

Total
Segment income(loss)
Notes:

1. Adjustment in segment income of 37 million yen includes 37 million yen for elimination of inter-segment trade.
2. Segment income (loss) is adjusted for operating income on the quarterly consolidated statements ofincome and comprehensive income.

2. Information regarding impairment loss on non-current assets or on goodwill and othermatters by reportable segment(Material impairment loss pertaining to non-current assets)
Disclosure is omitted due to immateriality of the information.
(Material change in goodwill amount)Not applicable(Material gain on bargain purchase)
Not applicable
For the first quarter ended June 2024 (April 1, 2024 – June 30, 2024）
1. Information about net sales and income (loss) by reportable segments(Million yen)

Reportable segments
Electronic

Information

components equipment

SoftwareAdjustment Consolidated

Others

Total(Note 1)

(Note 2)

Net sales:
Sales to externalcustomers

111,320

10,606631

6,079

128,638－

128,638

Inter-segment
sales or transfers

995

2,084

218

1,391

4,689

(4,689)－112,316

12,690849

7,470

133,327(4,689)128,638

4,331

639

35

461

5,467

83

5,550

Total
Segment income
Notes:

1. Adjustment in segment income of 83 million yen includes 83 million yen for elimination of inter-segment trade.
2. Segment income is adjusted for operating income on the quarterly consolidated statements of income andcomprehensive income.

２. Information regarding impairment loss on non-current assets or on goodwill and othermatters by reportable segment(Material impairment loss pertaining to non-current assets)
Not applicable(Material change in goodwill amount)Not applicable(Material gain on bargain purchase)
Not applicable- 10 -