May 12, 2022

Summary of Consolidated Financial Results
for the Year Ended March 2022 [Japan GAAP]
Name of Company:

KAGA ELECTRONICS CO., LTD.

Stock Code:8154

Stock Exchange Listing:Tokyo Stock Exchange, Prime Market

Representative

Title: Representative Director, President & COO
Title: Director, Managing Executive Officer
Head of Administration Headquarters+81-(0)3-5657-0111

Contact Person
Phone:

URL: https://www.taxan.co.jp/
Name: Ryoichi Kado
Name: Eiji Kawamura

Date of regular general meeting of shareholders:June 29 2022 (tentative)

Date of commencement of dividend payment:

June 30, 2022 (tentative)

Date of filing of securities report:

June 29, 2022 (tentative)

Supplementary explanatory documents:

Yes

Earnings presentation:

Yes (For institutional investors and analysts)(Yen in millions, rounded down)

1. Financial results for the current fiscal year (April 1, 2021 - March 31, 2022)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Net sales
Million yen

Operating income

Ordinary income

Fiscal year ended March 2022

495,827

17.4%

Million yen

20,915

82.4%

Million yen

Fiscal year ended March 2021

422,365(4.8)

11,467

14.5

11,241

Note: Comprehensive income: FY ended March 31, 2022: 20,745 million yen [47.0%]
14,114 million yen [252.4%]

Earnings per
share
Yen

Fiscal year ended March 2022

576.46

Fiscal year ended March 2021

415.07

Earnings per
share(diluted)

Return on
equityYen%

21,456%

Profit attributableto owners ofparentMillion yen

90.9
10.9

%

15,40135.1

11,39994.8

FY ended March 31, 2021:

Ratio ofRatio of operating
ordinary income income to net
to assets
sales
%

%

－

15.7

8.4

4.2

－

13.5

5.1

2.7

Ref.: Share of profit/loss of entities accounted for using equity method: FY ended March 2022: (472) million yen FY ended
March 2021: (627) million yen
Note:The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. was applied
from the beginning of the consolidated fiscal year ended March 2022.

(2) Financial Position (Consolidated)
Total assets
Million yen

Net assets
Million yen

Equity ratio

Net assets per share%

Yen

As of March 31, 2022

272,139

105,800

38.8

4,026.22

As of March 31, 2021

237,004

95,06238.4

3,311.24

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Ref.: Shareholders’ equity：FY ended March 2022: 105,680 million yen
FY ended March 2021: 90,967 million yen
Note:The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. was applied
from the beginning of the consolidated fiscal year ended March 2022.

(3) Cash flow position (Consolidated)
Net cash providedby (used in)operating activities

Fiscal year ended March 2022

(1,554)

Million yen(6,772)Million yen

Million yen

1,155

39,240Million yen

Fiscal year ended March 2021

9,999

(2,453)(6,851)44,333

2. Dividends
Dividend per share

1Q

2Q

Yen

Yen

3Q
Yen

YearendYen

AnnualPayout ratio Dividends/
aggregate (Consolidated
net assets
amount(Consolidated)

Full
year

Yen

Million yen%%

Fiscal year ended March 2021

－

30.00

－

50.00

80.00

2,197

19.3

2.6

Fiscal year ended March 2022
Fiscal year ending March 2023
(Forecast)

－

45.00

－

75.00

120.00

3,149

20.8

3.3

－

70.00

－

80.00

150.0027.2

Notes: Breakdown of year-end dividend for FY3/2021: Ordinary dividend: 30.00 yen; Extraordinary dividend: 20.00 yen
Breakdown of interim dividend for FY3/2022: Ordinary dividend: 40.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/2022: Ordinary dividend: 40.00 yen; Extraordinary dividend: 35.00 yen
Breakdown of year-end dividend for FY3/2023（forecast）: Ordinary dividend: 70.00 yen; 55th anniversary commemorative
dividend: 10.00 yen

3. Forecast for the fiscal year ending March 2023 (Consolidated, April 1, 2022 - March 31, 2023)(Percentage figures represent year on year changes)

Net sales
Full year

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

510,000

2.9

21,200

1.4

21,200(1.2)

Profit attributable Earnings per
to owners of parent
shareMillion yen%

Yen

14,500(5.9)

552.42* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) 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: None
Note: For more information, please refer “4．Consolidated Financial Statements and Major Notes (5)Notes to consolidated financial statements (Changes to accounting policies)” on page 18.
(3) Number of shares outstanding (common stock)(a) Shares outstanding
As of March 31, 2022:(including treasury shares)

28,702,118 As of March 31, 2021:

28,702,118(b) Treasury shares

As of March 31, 2022:

2,454,162 As of March 31, 2021:

1,229,877(c) Average number of shares
outstanding during the year

As of March 31, 2022:

26,717,972 As of March 31, 2021

27,465,021

(Reference) Non-consolidated Financial Results
Financial results for the fiscal year ended March 2022 (April 1, 2021 - March 31, 2022)(1) Result of operations (Non-consolidated)(Percentage figures represent year on year changes)

Net sales

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

Fiscal year ended March 2022

103,074

27.8

3,692

109.0

9,454

48.8

7,208

－

Fiscal year ended March 2021

80,628

5.6

1,766

734.5

6,351

33.7

(621)

－

Earnings per share

Earnings per share(diluted)

Yen

Yen

Fiscal year ended March 2022

269.77－

Fiscal year ended March 2021

(22.63)－(2) Financial Position (Non-consolidated)
Total assets
As of March 31, 2022
As of March 31, 2021

Ref.: Shareholders’ equity
million yen

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

117,109

41,11035.1

1,566.11

103,000

40,10738.9

1,459.80

Fiscal year ended March 2022: 41,110 million yen

Fiscal year ended March 2021: 40,107*The audit procedures by certified public accountant or auditing firm are not applicable to this Financial
Results report.
*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 information about theforecasts, please see “1. Results of Operations (4) Future outlook” on page 5 of Supplementary Information.
(Supplementary materials for financial results and how to obtain details of the financial results meeting)
We plan to hold an earnings briefing for institutional investors and analysts on Thursday, May 26, 2022.
Supplementary materials for the earnings briefing will be posted on our website today (Thursday, May12nd). We plan to post a video of the earnings briefing, together with the briefing materials used on thatday, on our website on May 26th.
（Japanese）https://www.taxan.co.jp/jp/ir/event/event_01.html（English）https://www.taxan.co.jp/en/ir/event/event_01.html

Index for Supplementary Information
1. Results of Operations .......................................................................................................... 2(1) Overview of consolidated business performance............................................................... 2(2) Overview of financial condition ....................................................................................... 4(3) Cash flows................................................................................................................... 5(4) Future outlook ............................................................................................................. 5(5) Basic policy for earnings allocations and dividends in the current and next fiscal years ......... 6
２．Management policies, operating environment, and challenges to address ................................ 7(1) Philosophy ................................................................................................................... 7(2) Review of previous medium-term management plan ........................................................ 7(3) New medium-term management plan............................................................................. 8
3. Basic Approach to the Selection of Accounting Standards ....................................................... 9
4. Consolidated Financial Statements and Major Notes .............................................................. 10(1) Consolidated balance sheet ......................................................................................... 10(2) Consolidated statements of income and comprehensive income ....................................... 12(3) Consolidated statement of changes inequity.........................................................................................................................................
14 .....................................................................................................................................
(4) Consolidated statement of cash flows ........................................................................... 16(5) Notes to consolidated financial statements .................................................................... 18(Notes to going concern assumptions) ........................................................................... 18(Changes to accounting policies) .................................................................................. 18(Additional information) ............................................................................................... 18(Segment information, etc.) .......................................................................................... 19(Per-share information) .............................................................................................. 22(Subsequent events) .................................................................................................. 22
5. Non-consolidated Financial Statements................................................................................ 23(1) Balance sheet ............................................................................................................ 23(2) Statement of income .................................................................................................. 25(3) Statement of changes in equity .................................................................................... 26

1

1. Results of Operations(1) Overview of consolidated business performance
During the consolidated fiscal period under review, conditions remained harsh for the Japanese andoverseas economies due to a global supply shortage of semiconductors and other products, stalls in
the international distribution network, and the resurgence of COVID-19 cases due to variants. However,
economic activity recovered due to progress in vaccination campaigns and the relaxation of restrictions
on movement, and there were signs of improvements in capital investment and manufacturing activity
in the manufacturing industry overall as well as in personal spending.
In the electronics industry to which the Group belongs, demand for semiconductors and electronicparts expanded in a wide range of fields, including automotive, medical equipment and industrial
equipment. Manufacturing could not keep up with the higher demand for some electronic parts, leading
to ongoing supply shortages, and unit prices were also increased. However, demand remained robuston the back of a recovery in manufacturing activity.
In these conditions, the electronic components business, which is the Group’s core business,addressed customer requests from various industries in advance, pursued sales activities thatleveraged its strengths as an independent trading company, and gave the highest priority to securing
sales volume. As a result, the Group’s net sales in the fiscal year under review totaled 495,827 million
yen, up 17.4% year on year.
In terms of income, the Company’s continued efforts to facilitate telework and take other workstylereform measures in the midst of the COVID-19 pandemic while also controlling operating costs,
combined with an increase in gross profit due to higher net sales and an improved gross profit margin,
led to an 82.4% year-on-year increase in operating income, to 20,915 million yen, and a 90.9%
increase in ordinary income, to 21,456 million yen. Despite the absence of the 7,963 million yen “gainon bargain purchase” posted as extraordinary income following a corporate acquisition in the previous
fiscal year, profit attributable to owners of parent increased 35.1% year on year, to 15,401 million yen,
due to a significant increase in ordinary income.
Net sales reached the highest level in two fiscal years, since the fiscal year ended in March 2020,
operating income and ordinary income reached record levels for the third straight year, and profit
attributable to owners of parent did so for the second straight year
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.
was applied from the beginning of the current fiscal year . This lowered net sales in the current fiscal
year by 6,060million yen. For details, refer to “４. Consolidated Financial Statements and Major Notes(5) Notes to consolidated financial statements (Changes to accounting policies).”
FY 2021/3(April 1, 2020 –March 31, 2021)

FY 2022/3(April 1, 2021 –March 31, 2022)（Million yen）

（Million yen）

SG&A

36,469Operating income

Net sales
Gross profit（Margin）

17.4％
26.3％
－

39,632

3,162

8.7％

11,467

20,915

9,448

82.4％

Ordinary income

11,241

21,456

10,214

90.9％

Profit before income taxes

14,472

21,348

6,875

47.5％

Profit attributable toowners of parent

11,39915,401

4,001

35.1％

EPS (yen)415.07576.46161.39

－

ROE

13.5%

15.7%

2.2pt

－

106.06112.38

6.32－(Average rate during the year)

USD

(yen)

2

495,827
60,547
12.2％（Million yen）

73,462
12,6100.9pt

Exchange Rate

422,365
47,936
11.3％

YoY

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors, generalelectronic components and other products, the electronics manufacturing service (EMS*), andother activities)
In this business, despite prolonged constraints on the supply of semiconductors and electronicparts, strong sales continued in the component sales business throughout the period as a result ofpreviously capturing demand from customers in a wide range of industries. Furthermore, theCompany leveraged the strength of its procurement capabilities and knowledge as an independent
trading company to enable it to maintain widespread sales quantities, which also boosted revenue
in this business. In addition, steady progress in PMI at acquired companies such as KAGA FEI Co.,
Ltd., and EXCEL Co., Ltd., contributed to profit growth in this business.
In the EMS business, the automotive, industrial equipment, and medical sectors in particular
continued to see strong performance. Although lockdowns to combat the spread of COVID-19 andproduction line stoppages due to a shortage of electronic parts occurred at some plants, theCompany endeavored to mitigate their impact by implementing thorough process control throughclose cooperation with customers’ plants and other measures.
As a result, net sales rose 22.7% year on year to 433,852 million yen and segment income
increased 122.1% year on year to 18,107 million yen.
(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph andimaging products, original brand products, and other products)
In this business, sales of PCs for educational institutions and PC peripherals such as security
software remained strong, but sales of PCs to corporations were sluggish due to the winding downof demand associated with the shift to remote work and the impact of product supply difficulties
attributable to a shortage of electronic parts. In addition, the impact of difficulties in procuring
equipment, products, and materials and delays to construction work resulting from late deliveries
were also felt in the equipment installation business for LED lighting, network devices, and other,which led to disappointing results.
As a result, net sales decreased 18.1% year on year to 39,616 million yen and segment income
decreased 16.0% year on year to 2,085 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products,
and other activities)
In this business, demand for computer graphics production for smartphone games was solid on
the back of stay-at-home demand during the pandemic, but profitability worsened due to anincrease in development costs and other resulting from efforts to meet delivery deadlines.
As a result, net sales decreased 5.6% year on year to 2,767 million yen and segment loss was
26 million yen (segment income was 263 million yen in the same period of the previous year).
(d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement
equipment, and sales of sports goods, and other activities)
In this business, the PC and PC peripheral recycling business was strong, as demand for reused
and recycled products increased amid continuing supply difficulties for PC products due to theshortage in electronic parts.
As a result, net sales increased 11.4% year on year to 19,590 million yen and segment income
increased 32.0% year on year to 626 million yen.
（*）Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis< Financial Results by Business Segment >Electronic
components

Net sales
Segment income

FY 2021/3

FY 2022/3

YoY(April 1, 2020 –March 31, 2021)(April 1, 2021 –March 31, 2022)（Million yen）

（Million yen）

（Million yen）

353,4548,151

433,852
18,10780,398
9,956

Informationequipment
Software22.7％
122.1％Net sales
48,38939,616(8,772)(18.1％)
Segment income
2,482
2,085
(396)
(16.0％)Net sales
2,932
2,767
(165)
(5.6％)
Segment income
263
(26)
(290)
(110.1％)Others
Net sales
17,58919,5902,000
11.4％
Segment income
474
626
151
32.0％
Total
Net sales
422,365
495,827
73,46217.4％
Segment income
11,467
20,915
9,448
82.4％
Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures
for the total.
3

<Reference>Financial results
Financial highlights(3months)①

FY 2021/3 4Q(3months)

FY 2022/3 4Q(3months)(January 1, 2021 –March 31, 2021)

YoY(January 1, 2022 –March 31, 2022)（Million yen）

（Million yen）

（Million yen）

128,099

143,143

15,043

11.7％

Gross profit

14,28917,786

3,496

11.2％

12.4％

1.2pt

24.5％

（Margin）
SG&A

10,33911,529

1,189

11.5％

Operating income

3,950

6,257

2,307

58.4％

Ordinary income

4,010

6,569

2,559

63.8％

(370)

6,641

7,011

－

(1,329)

4,986

6,315

－

Net sales

Profit before income
taxes
Profit attributable toowners of parent②－

By segment
FY 2021/3 4Q(3months)

Electronic
Components

Net sales
Segment income

FY 2022/3 4Q(3months)

YoY(January 1, 2021 –March 31, 2021)(January 1, 2022 –March 31, 2022)（Million yen）

（Million yen）

（Million yen）

106,750

122,440

15,690

2,732

5,105

2,372

14,451

13,315(1,135)(7.9％)

140

19.2％

14.7％
86.8％

Information

Net sales

Equipment

Segment income

728

869

Software

Net sales

927

926

(1)

(0.1％)

156

83

(73)

(46.9％)

Others

Net sales

5,969

6,460

490

8.2％

325

152

(172)

(53.0％)

128,099

143,143

15,043

11.7％

6,257

2,307

58.4％

Segment income
Segment income
Total

Net sales
Segment income

3,950

Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures
for the total.
(2) Overview of financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2022 increased by 35,135 million yen from the previous fiscal yearend to 272,139 million yen.
Current assets increased by 33,805 million yen compared to the end of the previous fiscal year, to233,984 million yen. This was primarily due to a 16,503 million yen increase in merchandise andfinished goods and a 7,072 million yen increase in raw materials and supplies.
Non-current assets increased by 1,329 million yen compared to the end of the previous fiscal
year, to 38,155 million yen. This was primarily due to a 1,406 million yen increase in machinery,equipment, and vehicles.
4

Liabilities increased by 24,397 million yen compared to the end of the previous fiscal year, to
166,339 million yen. This was primarily due to a 13,028 million yen increase in loans payable and a
6,639 million yen increase in notes and accounts payable – trade.
Net assets increased by 10,737 million yen from March 31, 2021, to 105,800 million yen. Thiswas primarily due to a 12,854 million yen increase in retained earnings due to 15,401 million yen in
profit attributable to owners of parent.
(3) Cash flows
Cash and cash equivalents as of March 31, 2022 decreased 5,092 million yen from March 31, 2021
to 39,240 million yen.
(Operating activities)
Net cash used in operating activities was 1,554 million yen (9,999 million yen provided by theprevious fiscal year) mainly due to an increase in inventory assets.
(Investing activities)
Net cash used in investing activities was 6,772 million yen (2,453 million yen used in the previous
fiscal year) mainly due to purchase of property, plant and equipment.
(Financing activities)
Net cash provided by financing activities was 1,155 million yen (6,851 million yen used in theprevious fiscal year) mainly due to the additional acquisition of shares in KAGA FEI Co., Ltd., theacquisition of treasury shares, and the payment of dividends, despite an increase in loans payable.
(4) Future outlook
In the fiscal year ending in March 2023, we expect economic activity in Japan and overseas tonormalize due to the spread of vaccines in developed countries and regions such as the US andEurope and economic stimulus measures. However, we believe that the outlook will remain
uncertain due to concerns about inflation stemming from a spike in the price of oil and otherresources and Russia’s prolonged conflict in Ukraine.
In the electronics industry to which the Group belongs, it will still take time for the tight global
supply/demand conditions caused by turmoil in the supply chain for semiconductors and otherproducts to ease, but in the medium to long term, we continue to maintain that demand forelectronic components will increase. Specifically, in the ICT sector, we expect smartphone functions
to become more advanced as 5G (fifth-generation wireless network technology) is introduced inearnest; also, the data center market will expand, and greater sophistication of IoT and AI will
create new demand. In the automotive field, we expect electronic vehicles to be increasingly
popular as an eco-friendly initiative and that advancements with CASE (Connected, Autonomous,
Shared & Services, Electric) will result in the introduction of more electronic components and cybertechnology to cars.
Based on these assumptions and in line with the basic policies of Medium-Term Management Plan
2024, which begins in the fiscal year ending on March 31, 2023, the Group will further reinforce
profitability by focusing on markets in which high growth and profitability are expected while also
actively utilizing venture investments and mergers and acquisitions to create new businesses andstrengthen resilience against changes in the external environment. While pursuing further efficiency
and soundness, we will strengthen the Group’s management foundation while also pursuing SDGs
management, aiming for a balance between solutions to social issues and sustainable growth as acompany.
As a result of these factors, we expect net sales to total 510 billion yen, operating and ordinary
income to amount to 21.2 billion yen, and profit attributable to owners of parent to be 14.5 billion
yen in the fiscal year ending in March 2023.

5

(5) Basic policy for earnings allocations and dividends in the current and next fiscal years
The Company views the return of profits to shareholders as one of its most importantmanagement policies, and in addition to endeavoring to strengthen its financial position andmanagement foundation from a long-term perspective, it has the basic policy of maintaining stableand ongoing dividends to all shareholders with due consideration to consolidated earnings.
For its year-end dividend for the fiscal year ended on March 31, 2022, the Company plans to pay
an extraordinary dividend of 10 yen per share in addition to the 65 yen per share dividend (40 yen
ordinary dividend + 25 yen extraordinary dividend) that we previously forecasted (May 9, 2022), inlight of the aforementioned strong earnings in the fiscal year ended in March 2022, for a total of 75
yen per share. As a result, the annual dividend, including the interim dividend of 45 yen per sharealready paid in November of last year, will be 120 yen per share, which is an increase of 40 yen
from the 80 yen per share in the previous fiscal year.
The Company will celebrate the 55th anniversary of its founding in September 2022. We would
like to take this opportunity to thank our shareholders and other stakeholders for their generous
support. To express our appreciation for the support we have received from all of our shareholders
thus far, we will pay an interim dividend of 10 yen per share as a commemorative dividend in thefiscal year ending in March 2023. With the addition of this commemorative dividend, we plan to pay
150 yen per share (including an 80 yen interim dividend) in the next fiscal year.

62. Management policies, operating environment, and challenges to address(1) Philosophy①Corporate Philosophy: Everything we do is for our customers②Vision:Aim to be “Japan’s No. 1 corporate group in the industry”
Aim to become a competitive “world-class company”③Action Guidelines: “F.Y.T. (Fight)” (Flexibility, Young at heart, Try)
“3G” (General, Global, Group)“KAGA-ism” (Management mindset, sales mindset, and readiness as amember of society)
Since its founding, the Company has been expanding its business fields by responding to customers’
diverse needs under the corporate philosophy that “Everything we do is for our customers.” Startingwith the sale of electronic parts and semiconductors leveraging its strengths as an independent
trading company, the Company now provides a wide array of services both domestically and overseas
as an electronics trading conglomerate, including its electronics manufacturing service (EMS) businessspecializing in high-mix, small-lot production, as well as planning, development, and engineering
support for customers’ products; software and video production; network solutions; and system
support.
At the same time, the Company’s business environment is changing at an accelerating pace, withreorganization and consolidation of semiconductor and device manufacturers as well as reviews toagency policies on the supplier side, along with the shifting of finished-product assembly overseas,
demand changes and price fluctuations in both the domestic and overseas markets, and responses
to global environment problems as exemplified by decarbonization on the customer side. The
Company recognizes that competition in the electronics trading industry, where there are still
numerous competing companies, will become even more intense in the future.
(2) Review of previous medium-term management plan
Against this backdrop, the Company is accelerating a growth strategy centered around promoting
sales of electronic devices to major customers and expanding its EMS business mainly in overseas
markets in order to achieve its medium- to long-term vision of becoming “Japan’s No. 1 corporategroup in the industry” and a “world-class company.”
The consolidated fiscal year ended on March 31, 2022, was the final year of Medium-Term
Management Plan 2021 (2019-2021), the Group’s three-year management plan that began in April
2019. Over the past three business years, the Company has worked on priority issues in line with thebasic policies of that plan.
As major achievements, in terms of the first basic policy, “enhancement of revenue base,” theCompany acquired KAGA FEI Co., Ltd. (“KAGA FEI”), and EXCEL Co., Ltd., as Group companies andworked to share and expand the products it handles and its customer base, thereby generating about
215 billion yen in net sales. In the EMS business, the Company also achieved sales growth of about
28 billion yen, mainly in the key automotive and medical markets.
In “stabilization of management base,” the Company worked to instill the concept of “profit-focusedmanagement” at KAGA FEI in order to improve its profit margin.
In “creation of new businesses,” the Company entered the mobility business, a business oriented
toward the resolution of social issues, in areas such as disaster-safety helicopters and electric buses
and also moved forward with preparations for entry into the medical device business.
As a result of these efforts, in terms of progress toward major KPIs, although net sales fell slightly
short of the management target due to losses of major commercial rights at KAGA FEI, the Company
succeeded in substantially surpassing the targets for operating income and ROE.

7

＜Review of Medium-Term Management Plan 2021： Management Targets(3) New medium-term management plan
The Company formulated Medium-Term Management Plan 2024 in November 2021 to present theGroup’s path toward growth over the next three years. Under the new medium-term management
plan, the Company will continue to thoroughly implement “profit-focused management” while
carrying out measures in line with the following basic policies to achieve its vision of becoming“Japan’s No. 1 corporate group in the industry” and “a competitive world-class company.”①Basic Policy1）Further Reinforcement of Profitability
Predicting the era to focus on markets with potential for high growth and profitability2）Reinforcement of Management Base
Pursuit of further efficiency and soundness, and transformation to a Group managementfoundation worthy of "Japan’s No. 1 corporate group in the industry"3）Creation of New Businesses
Active use of venture investments and M&As to create new businesses and strengthen
resistance to change in the external environment4）Promotion of SDGs Management
Promotion of management that seeks to achieve solutions to social issues and sustainablegrowth as a company②Management targets
For the initiatives described above, the Company has set the following management targets to beachieved by the fiscal year ending on March 31, 2025, which will be the final year of the new mediumterm management plan.
1）Net sales: 750 billion yen ・・・・・・・・・・ In addition to 600 billion yen in organic growth, theCompany will aim to generate 150 billion yen throughmeasures such as new mergers and acquisitions.
2）Operating income: 20 billion yen ・・・ Although profit levels currently already exceed the
medium-term target due in part to special factors, theCompany will review this target appropriately in line withactual conditions after assessing progress in the first half.
3）ROE: 8.5% or higher ・・・・・・・・・・・・・・ Keeping shareholders’ equity costs (approximately 7-8%)
in mind, the Company will aim to maintain a stable level of
8.5% or higher.

83. Basic Approach to the Selection of Accounting Standards

The KAGA ELECTRONICS Group prepares consolidated financial statements based on Japanese

accounting standards. Going forward, we will consider adopting IFRS standards with due consideration
to financial market trends, share of foreign investors, and the organizational costs resulting from theadoption of IFRS standards.

9

4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)
FY 2021/3(As of March 31, 2021)

FY 2022/3(As of March 31, 2022)

Cash and deposits

45,636

41,051

Notes and accounts receivable - trade103,773

－

－

1,449

4,621

9,258

－

110,240ASSETS
Current assets

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

302

264

Merchandise and finished goods

29,727

46,230Work in process

1,280

2,363

Raw materials and supplies

6,940

14,013

Other

9,921

9,388

Allowance for doubtful accounts(2,024)(275)

Total current assets

200,179

233,984

14,327

15,033(7,305)(8,108)

7,021

6,925

11,49614,181(6,853)(8,132)

4,642

6,048

Tools, furniture and fixtures

5,632

5,697

Accumulated depreciation(4,254)(4,667)

1,378

1,030

5,074

5,074

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

107

313

18,225

19,393

Intangible assets
Goodwill

209

98

Software

2,338

3,021

62

42

2,609

3,163

Investment securities

10,771

10,313

Deferred tax assets

2,252

2,189

Guarantee deposits

931

1,068

Insurance funds

910

915

1,629

3,466

Other
Total intangible assets
Investments and other assets

Other
Allowance for doubtful accounts(504)(2,355)

Total investments and other assets

15,99015,598

Total non-current assets

36,825

38,155

237,004

272,139

Total assets

10

(Million yen)
FY 2021/3(As of March 31, 2021)

FY 2022/3(As of March 31, 2022)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

79,85486,493

Short-term loans payable

10,80023,858

Accrued expenses

5,957

7,138

Income taxes payable

2,136

2,834

Provision for directors’ bonuses

126

301

9,642

12,291

108,517

132,918

Long-term loans payable

25,16625,136

Deferred tax liabilities

1,685

2,046

Other
Total current liabilities
Non-current liabilities

Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations

106

123

2,272

2,095

343

572

Other

3,850

3,446

Total non-current liabilities

33,42433,421

141,942

166,339

Capital stock

12,133

12,133

Capital surplus

14,327

14,818

Total liabilities
NET ASSETS
Shareholders’ equity

Retained earnings

64,56877,423

Treasury shares(1,984)(5,643)

Total shareholders’ equity

89,04598,732

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

1,378

1,299

50

(2)

Foreign currency translation adjustment

470

5,439

Remeasurements of defined benefit plans

21

210

Total accumulated other comprehensive
income

1,921

6,948

Non-controlling interests

4,095

120

Total net assets

95,062

105,800

237,004

272,139

Total liabilities and net assets

11(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2021/3(April 1, 2020 –March 31, 2021)
Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Foreign exchange gain
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss from equity method investments
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on transfer of business
Reversal of estimated losses associated withfund leakage incident that involved ourAmerican subsidiary
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Extra retirement payments
Provision of allowance for doubtful accounts
Estimated losses associated with fundleakage incident that involved our American
subsidiary
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
12

FY 2022/3(April 1, 2021 –March 31, 2022)

422,365
374,428

495,827
435,280

47,936
36,46960,547
39,632

11,467

20,915

135
197
168
－
116
539
1,158

135
195
183
252
104
572
1,443

317
627
359
80
1,384

315
472
－
114
902

11,241

21,456

2
128
7,963
7

15
363
－
7

－

176

20
8,122

34
596

1,893
101
36
525

93
13
2
260

－

175

24
1,750

－
129

480

－

78
4,892
14,472
3,207
(51)
3,156
11,31529
705
21,348
5,071
606
5,678
15,66911,39915,401(84)

268

(Million yen)
FY 2021/3(April 1, 2020 –March 31, 2021)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

13

FY 2022/3(April 1, 2021 –March 31, 2022)

1,376

(78)

22

(52)

1,218

4,922

138

188

42

95

2,799

5,075

14,114

20,745

14,101

20,42813316

(3) Consolidated statement of changes in equity
For the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Shareholders’ equity
Capitalstock
Balance at the beginning of current
periodCapitalsurplus12,133

13,878Retainedearnings

TreasurysharesTotalshareholders’equity55,091(2,005)79,097

Changes of items during period
Dividends of surplus(1,922)(1,922)

Profit attributable to owners ofparent11,39911,399Purchase of treasury shares
8

Disposal of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity

(1)

(1)

22

31

441

441

Total changes of items during period

－

449

9,477

21

9,948

Balance at the end of current period

12,133

14,32764,568(1,984)89,045

Total
Nonaccumulated controlling
otherinterests
comprehensi
ve income

Total
net
assets

Accumulated other comprehensive income

Balance at the
beginning of current
periodChanges of items
during period
Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at the end ofcurrent period

Valuation
Deferreddifference on
gains oravailable-forlosses onsalehedgessecurities
0

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

(707)

(133)

28

(812)

7,965

86,250(1,922)
11,399
(1)
31

441

1,378

22

1,178

154

2,733

(3,869) (1,135)

1,378

22

1,178

154

2,733

(3,869)

8,812

1,378

50

470

21

1,921

4,095

95,06214

For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Shareholders’ equity
Capitalstock
Balance at the beginning of current
periodCapitalsurplus12,133Retainedearnings

14,32764,568Cumulative effects of changes inaccounting policies
Restated balance

TreasurysharesTotalshareholders’equity(1,984)89,045

7
12,133

14,32764,576

7(1,984)89,053

Changes of items during period
Dividends of surplus(2,554)(2,554)

Profit attributable to owners ofparent15,401

15,401

Purchase of treasury shares
Disposal of treasury shares(3,681)(3,681)22

30

8Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity

481

481

Total changes of items during period－

490

12,847(3,658)

9,678

Balance at the end of current period

12,133

14,81877,423(5,643)98,732

Total
Nonaccumulated controlling
otherinterests
comprehensi
ve income

Total
net
assets

Accumulated other comprehensive income

Balance at the
beginning of current
periodCumulative effects
of changes inaccounting policies
Restated balance

Valuationdifference on Deferredavailable-for- gains orlosses on
salehedgessecurities
1,378

1,378

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

470

21

50

50

470

21

1,921

1,921

4,095

95,062

1

8

4,096

95,071

Changes of items
during period
Dividends of surplus
Profit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesChange in ownershipinterest of parent
due to transactions
with non-controllinginterests
Net changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at the end ofcurrent period(2,554)
15,401(3,681)
30

481

(79)

(53)

4,969

189

5,026

(3,976)

1,050

(79)

(53)

4,969

189

5,026

(3,976)

10,728

1,299

(2)

5,439

210

6,948

120

105,800

15

(4) Consolidated statement of cash flows(Million yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in net defined benefit
liability
Increase (decrease) in provision for
directors’ retirement benefits
Increase (decrease) in provision for
directors’ bonuses
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted
for using equity method
Loss (gain) on sales of property, plant andequipment
Loss on retirement of non-current assets
Loss (gain) on sales of investment
securities
Loss (gain) on valuation of investment
securities
Gain on bargain purchase
Reversal of estimated losses associatedwith fund leakage incident that involved ourAmerican subsidiary
Estimated losses associated with fundleakage incident that involved our American
subsidiary
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable - trade
Decrease (increase) in accounts receivable- other
Increase (decrease) in accrued expenses
Decrease (increase) in advance payments
Decrease (increase) in consumption taxes
refund receivable
Decrease (increase) in other current assets
Increase (decrease) in other current
liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Fund leakage incident that involved ourAmerican subsidiary
Other, net
Net cash provided by (used in) operating
activities
16

FY 2021/3

FY 2022/3(April 1, 2020 –(April 1, 2021 –March 31, 2021)

March 31, 2022)

14,472
3,167
1,893
114

21,348
3,738
93
110

(5)

16

11

16

25

175

1,607

92

(413)
317

(403)
315

627

472

(0)

(14)

101

13

(92)

(360)

525

260

(7,963)

－

－

(187)

480

－

(4,303)(7,889)2,997(22,088)

1,495

2,451

842

583

(162)
(349)

887
1,349

(164)

(822)

(397)

(264)

(1,206)2,030

130
13,754342(322)(3,295)

797
2,723
124
(315)
(4,263)

(480)

－

－

175

9,999

(1,554)

(Million yen)
FY 2021/3

FY 2022/3(April 1, 2020 –March 31, 2021)(April 1, 2021 –March 31, 2022)

Cash flows from investing activities
Payments into time deposits

(905)

(856)

Proceeds from withdrawal of time deposits

753

474

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(2,514)(3,276)28

32(1,059)(1,377)Purchase of investment securities
Proceeds from sales of investment
securities
Purchase from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Payments of short-term loans receivable(1,688)(1,085)

723

834

(351)

－

2,707

－

－

(388)

Collection of short-term loans receivable0－Long-term loan advances(166)(1,180)Purchase of insurance funds
Proceeds from cancellation of insurance
funds
Payments for guarantee deposits
Proceeds from collection of guarantee
deposits
Other payments

(11)

(4)

58

－

(77)

(28)

63

65

(100)

(174)

Other proceeds

87

194

Net cash provided by (used in) investing
activities(2,453)(6,772)

Cash flows from financing activities
Increase (decrease) in short-term loans
payableProceeds from long-term borrowings(4,608)

7,636

5,000

5,000

Repayments of long-term loans payable(1,279)

(668)

(1)

(3,681)(1,922)(2,551)(3,441)(3,811)

(597)

(767)

(6,851)

1,155

945

2,079

1,639

(5,092)

42,69344,33344,33339,240Purchase of treasury shares
Cash dividends paid
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period17(5) Notes to consolidated financial statements(Notes to going concern assumptions)Not applicable(Changes to accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020), etc. effective from the beginning of the consolidated fiscal year ended on
March 31, 2022, and it recognizes revenue as the amount expected to be received in exchange forgoods or services when control over the promised goods or services passes over to the customer.
As a result, in the case of a performance obligation in which the promise with the customer
involves the supply of goods or services provided by another party, the net amount received as theagent is recognized as revenue.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the new
accounting policy has been applied to periods prior to the beginning of the consolidated fiscal year
ended on March 31, 2022, was added to or subtracted from the balance of retained earnings at the
beginning of the consolidated fiscal year ended on March 31, 2022, and thus the new accounting
policy was applied from this beginning balance. However, the method provided for in Paragraph 86of the Accounting Standard for Revenue Recognition was applied so that the new accounting policy
was not retrospectively applied to contracts where recognition of nearly all the revenue amounts forperiods prior to the beginning of the consolidated fiscal year ended on March 31, 2022, were
subject to the previous treatment.
Furthermore, “Notes and accounts receivable – trade,” which was listed under “Current assets” inthe consolidated balance sheet for the previous consolidated fiscal year, has been included under“Notes receivable – trade” and “Accounts receivable – trade” starting from the consolidated fiscal
year ended on March 31, 2022. However, subject to the transitional treatment provided for in
Paragraph 89-2 of the Accounting Standard for Revenue Recognition, statements for the previous
fiscal year were not reclassified according to the new format.
As a result, compared to the previous method, in the consolidated fiscal year ended on March 31,
2022, net sales decreased by 6,060 million yen, and the impact on operating income, ordinary
income, and profit before income taxes was minimal. The impact of retained earnings on thebalance at the beginning of the period was also minimal.
The impact on per-share information is described in the corresponding section.
(Application of Accounting Standards for Fair Value Measurement)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)
was applied from the start of the first quarter of this consolidated fiscal year, and in accordancewith the transitional treatment set forth in Article 19 of “Accounting Standard for Fair Value
Measurement” and Article 44-2 of “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019), the Company will continue to apply new accounting policies
prescribed by “Accounting Standard for Fair Value Measurement” and other standards into the
future. The effects of this adoption on the quarterly consolidated financial statements are
immaterial.
(Additional information)(Accounting estimates associated with the COVID-19 pandemic)
Accounting estimates such as of impairment of non-current assets and collectability of deferred tax
assets are made based on information that is available as of March 31, 2022 and do not include
significant changes from the financial statement for the previous consolidated fiscal year.

18

(Segment information, etc.)
a. Segment information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available
and regular evaluation by the Company’s management is being performed in order to decide how
resources are allocated among the Group. The Company classifies subsidiaries and associates
according to their products and services, and implements comprehensive strategies in Japan andoverseas. Consequently, the Group has four reportable segments that are made of different
categories of products and services: electronic components, information equipment, software andothers. The electronic components segment includes the development, manufacture and sale ofsemiconductors, general electronic components and other products, the electronics manufacturingservice (EMS), and other activities. The information equipment segment includes sales of PCs, PC
peripherals, home electric appliances, photograph and imaging products, original brand products,
and other products. The software segment includes the production of computer graphics, planningand development of amusement products, and other activities. The others segment includes therepair and supports for electronics equipment, and sales of amusement equipment and sports goods,
and others.

19

2. Information about net sales, profit (loss), assets, and other items is as follows:
For the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021)
Reporting segments
Electronic

Information

components equipment
Net sales:
Sales to externalcustomers
Inter-segment
sales or transfers

Software(Million yen)

Adjustment Consolidated

Others

Total

*1

*2

353,454

48,3892,932

17,589422,365－

422,365

3,022

4,251

1,178

4,714

13,166(13,166)－

356,476

52,6404,111

22,303435,532(13,166)

422,365

Segment income

8,151

2,482

263

474

11,371

95

11,467

Segment assets

215,323

18,3682,076

11,142

246,911(9,906)

237,004

Depreciation

2,273

51

56

156

2,537

(7)

2,530

Increase inproperty, plant andequipment andintangible assets

3,139

281

93

183

3,698

(124)

3,574

Total

OthersFor the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)
Reporting segments
Electronic

Information

components equipment
Net sales:
Sales to externalcustomers
Inter-segment
sales or transfers

Software(Million yen)

Adjustment Consolidated

Others

Total

*1

*2

433,852

39,616

2,767

19,590495,827－

495,827

2,733

5,402

855

6,265

15,257(15,257)－

Total

436,586

45,0193,623

25,855

511,085(15,257)

495,827

Segment income

18,107

2,085

(26)

626

20,792

122

20,915

Segment assets

250,460

20,435

1,612

11,707284,214(12,074)

272,139

Depreciation

2,237

54

53

136

2,481

(10)

2,471

Increase inproperty, plant andequipment andintangible assets

4,362

121

24

146

4,654

－

4,654

OthersNote:

1. The adjustment is as follows:(1) Segment income(Million yen)
Fiscal year ended MarchFiscal year ended March

2021

2022

Elimination of inter-segment

95

122

Amortization of goodwill

－

－

Total

95

122

20

(2) Segment assets(Million yen)
Fiscal year ended MarchFiscal year ended March

2021

2022

Elimination of inter-segment
Corporate *Total(12,168)(14,176)

2,261

2,101

(9,906)(12,074)* Total corporate assets principally consist of surplus funds of the Company under management(cash and securities, etc.).
(3) Depreciation(Million yen)
Fiscal year ended MarchFiscal year ended March

2021

2022

Elimination of inter-segment

(7)

(10)

Total

(7)

(10)

(4) Increase in property, plant and equipment and intangible assets(Million yen)
Fiscal year ended MarchFiscal year ended March

2021

2022

Elimination of inter-segment

(124)

－

Total

(124)

－

2. Segment income is adjusted with operating income on the consolidated statements of income andcomprehensive income.
b. Associated information
For the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021)
Geographic information
Net sales(Million yen)Japan

North America

240,240

Europe22,698

13,622

Asia

Total

145,804

422,365

Notes: 1．Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Turkey and Russia(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India,
Indonesia, and Vietnum

21For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)
Geographic information
Net sales(Million yen)Japan

North America

263,415

Europe34,101

Asia

16,874

Total

181,436495,827

Notes: 1．Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Turkey and Russia(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India,
Indonesia, and Vietnum(Per-share information)(Yen)

FY 2021/3

FY 2022/3(April 1, 2020 – March 31, 2021)(April 1, 2021 – March 31, 2022)

Net assets per share

3,311.24

4,026.22

Earnings per share

415.07576.46

Notes: 1. Earnings per share (diluted) have not been disclosed because there were no potentially dilutive shares.
2. The basis of calculation of earnings per share is as follows.
FY 2021/3(April 1, 2020 –March 31, 2021)

FY 2020/3(April 1, 2021 –March 31, 2022)

Earnings per share
Profit attributable to owners ofparent (million yen)
Profit not attributable to commonshareholders (million yen)

11,39915,401－－

11,39915,401

27,465,021

26,717,972

Profit attributable to owners ofparent allocated to common stock(million yen)
Average number of common stock
outstanding during the fiscal year

3. As described under “(Changes to accounting policies),” the Company has applied the“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
effective from the beginning of the consolidated fiscal year ended on March 31, 2022, subject tothe transitional treatment provided for in the proviso of Paragraph 84 of the AccountingStandard for Revenue Recognition. As a result, the impact on earnings per share in the
consolidated fiscal year ended on March 31, 2022, was minimal.
(Subsequent events)
Not applicable225. Non-consolidated Financial Statements(1) Balance sheet
FY 2021/3(As of March 31, 2021)(Million yen)
FY 2022/3(As of March 31, 2022)

8,846
989

10,669
412

2,820

4,300

25,033
302
3,421
4
2
2,033
194

25,028
264
9,688
17
2
460
280

11,18011,0504,287
1,241(5,706)

5,414
1,650
(4,760)54,65164,479

2,109
19
148
0
190
3,292
45
5,807

2,010
17
102
95
139
3,292
50
5,707

3
1,289
5
1,299

5
2,266
5
2,277

8,718
29,41624

8,701
32,776
10

14

14

1,131

1,096

110

1,875

400
35
1,627
(233)
(2)
41,243
48,349103,000

300
252
1,526
(1,910)(1)44,644
52,630117,109

ASSETS
Current assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments - trade
Prepaid expenses
Short-term loans receivable fromsubsidiaries and associates
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Lease assets
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries
and associates
Long-term loans receivable fromsubsidiaries and associates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets

23

(Million yen)
FY 2021/3(As of March 31, 2021)

FY 2022/3(As of March 31, 2022)

LIABILITIESCurrent liabilities
Notes payable - trade
Accounts payable - trade
Short-term loans payable
Short-term loans payable to subsidiaries
and associates
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation differences on available-for-salesecurities
Deferred gains or losses on hedges
Total valuation and translation
adjustments
Total net assets
Total liabilities and net assets

24

1,007
13,3197,598

1,736
14,62913,640

7,483

6,174

668
71
1,070
1,301
918
1,519
76
100
140

5,036
67
1,726
1,662
1,602
1,767
198
250
115

35,27548,60825,166
200
201
105
1,944

25,136
159
181
107
1,805

27,61862,89327,39175,99912,133

12,133

13,912
33

13,912
41

13,945

13,954

618

618

7,000
7,286

7,000
11,94014,905(1,979)19,559(5,638)39,00440,008

1,088

1,109

13

(7)

1,102

1,102

40,107103,000

41,110117,109(2) Statement of income(Million yen)
FY 2022/3(April 1, 2021 –March 31, 2022)

FY 2021/3(April 1, 2020 –March 31, 2021)
Net sales

80,628103,074

Cost of sales

70,616

90,211Gross profit

10,012

12,863

Selling, general and administrative expenses

8,245

9,170

Operating income

1,766

3,692

Interest income

55

73

Dividend income

4,382

5,598

Non-operating income

Other

384

512

4,822

6,185

169

207

Loss on investments in partnership4

11

Depreciation of assets for rent

1114Foreign exchange losses

19

127

Other

33

62

Total non-operating expenses

237

423

6,351

9,454

Gain on sales of investment securities

128

344

Gain on sale of shares of subsidiaries

104

－

－

293

150

－

0

3

383

640

Loss on sales of investment securities

36

2

Loss on valuation of investment securities

525

260

－

472

1,921

54

Total non-operating income
Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income

Gain on liquidation of subsidiaries andassociates
Gain on transfer of business
Other
Total extraordinary income
Extraordinary losses

Loss on sale of shares of subsidiaries andassociates
Loss on valuation of shares of subsidiaries
and associates
Provision of allowance for doubtful accounts

3,926

873

Provision of allowance for investment loss

0

－

Other

1

7

6,412

1,672

Profit before income taxes

323

8,422

Income taxes - current

711

1,225

Income taxes - deferred

232

(11)

Total income taxes

944

1,214

(621)

7,208

Total extraordinary losses

Profit(loss)

25

(3) Statement of changes in equity
For the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Shareholders’ equity
Retained earnings

Capital surplus

Balance at the beginning ofcurrent period

Capital
stock

Legal
capitalsurplus

Othercapitalsurplus12,133

13,912

24

Other retained
earnings

Total

7,000

17,449Total
Legal
retained
Retained
capital retained
earnings
surplus earnings General earnings
reserve brought
forward13,937618

9,830

Changes of items during period
Dividends of surplus(1,922) (1,922)

Profit(loss)

(621)

(621)

Purchase of treasury shares
Disposal of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at the end of current
period

8

8

－

－

8

8

－

12,133

13,912

33

13,945

618

Shareholders’ equity－ (2,543) (2,543)
7,000

7,286

14,905

Valuation and translation
adjustments

Total
Valuation
DeferredTotal
net
Total shareTreasury
difference on gains or valuation and assets
holders’available-for losses on translation
sharesequitysale securitie
hedges adjustments
Balance at the beginning ofcurrent period(2,000)41,519

(63)

24

(39)

41,480Changes of items during period
Dividends of surplus
Profit(loss)(1,922)(1,922)

(621)

(621)

Purchase of treasury shares

(1)

(1)

(1)

Disposal of treasury shares

22

31

31

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of current
period

1,151

(10)

1,141

1,141

21

(2,514)

1,151

(10)

1,141

(1,373)(1,979)39,004

1,088

13

1,102

40,10726

For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at the beginning ofcurrent period

12,133Legalcapitalsurplus

Othercapitalsurplus13,91233

Retained earnings
Other retained
earnings

Total

Total
Legal
retained
Retained
capital retained
surplus earnings General earnings earnings
reserve brought
forward13,945

618

7,000

7,286

14,905(2,554)(2,554)

7,208

7,208

Changes of items during period
Dividends of surplus
Profit(loss)
Purchase of treasury shares
Disposal of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at the end of current
period

8

8

－

－

8

8

－

－

4,653

4,653

12,133

13,912

41

13,954618

7,000

11,94019,559

Shareholders’ equity

Valuation and translation
adjustments

Total
Valuation
DeferredTotal
net
Total shareTreasury
difference on gains or valuation and assets
holders’available-for losses on translation
sharesequitysale securitie
hedges adjustments
Balance at the beginning ofcurrent period(1,979)39,004

1,088

13

1,102

40,107

Changes of items during period
Dividends of surplus
Profit(loss)(2,554)(2,554)

7,208

7,208

Purchase of treasury shares(3,681)(3,681)(3,681)

Disposal of treasury shares

22

30

30

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of current
period

21

(21)

(0)

(0)

(3,658)

1,003

21

(21)

(0)

1,003

(5,638)40,008

1,109

(7)

1,102

41,11027