July 29, 2022

[Supplementary Materials]

Kanematsu Electronics, Ltd.

Highlights of Consolidated Financial Results for the Three Months Ended June 30, 2022 [Japanese GAAP]■ Net sales, operating profit, and ordinary profit all increased.

Status of assets, liabilities and net assets(% indicates change from the previous corresponding period)♢Net sales♢Operating profit♢Ordinary profit♢Profit attributable to owners of parent

14.1 %
38.4 %
36.8 %
30.8 %

12,792 million yen
1,275 million yen
1,301 million yen
866 million yen■Net sales

Status of Income(Million yen)

As of June 30, As of March
2022
31, 2022■Assets
Current assets decreased ¥6,006 million (8.0%) from the end of theprevious fiscal year, mainly due to a decrease of ¥8,166 million in notes andaccounts receivable-trade.
(8.0) Non-current assets decreased ¥552 million (7.5%) from the end of theprevious fiscal year, mainly due to a decrease of ¥464 million in investment(8.0) securities.

Year-on-yearchangePercentagechange (%)

Total Assets

75,88782,446(6,559)Current assets

69,02575,031(6,006)

Non-current assets

6,862

7,415(552)

Liabilities

15,726

20,518(4,791)(23.4) previous fiscal year, mainly due to a decrease of ¥2,523 million in income

Current liabilities

13,133

17,966(4,833)(26.9) Non-current liabilities increased ¥41 million (1.6%) from the end of theNon-current liabilities

2,592

2,551

41

Net assets

60,161

61,928(1,767)(2.9) ■Net assets

Equity (Note 1)

60,114

61,885(1,770)(2.9) attributable to owners of parent and a decrease from the payment of ¥Equity ratio (Note 2)

79.2%

75.1%

Up 4.1pt(7.5) ■Liabilities
Current liabilities decreased ¥4,833 million (26.9%) from the end of thetaxes payable.

previous fiscal year, mainly due to an increase of ¥26 million in other non-

1.6 current liabilities.
Net assets decreased ¥1,767 million (2.9%) from the end of the previous
fiscal year, mainly due to an increase from recording ¥866 million in profit
2,289 million in dividends.

Net sales increased by ¥1,585 million year on year
FY Mar
2023
1Q

FY Mar2022
1Q

12,792

11,207Year-on-yearchangePercentagechange (%)(Million yen)

Net sales

1,585

14.1

FY Mar 2023 fullyear
forecast

72,000Gross profit

3,477

2,995

481

16.1

-

Selling, general and administrative
expenses(2,202)(2,074)

(128)

6.2

-

Operating profit

1,275

921

353

38.4

12,750Non-operating income

29

31

(1)

(4.9)

-

Non-operating expenses

(3)

(1)

(1)

155.1

-

1,301

951

350

36.8

12,800-0(0)(100.0)-(0)(1)

1(98.7)

-

1,301

950

351

36.9

-

Ordinary profit

sales of its service-oriented businesses centered on

Extraordinary income
Extraordinary loss
Profit before income taxes

to ¥12,792 million (up 14.1% year on year) in an■売上高
売上高は、106億７千４百万円となり、働き方
effort that the Group worked on workstyle reform
改革および新型コロナウイルス感染症対策の一and COVID-19 countermeasures through the環として堅調な仮想デスクトップ（ＶＤＩ）環
construction of robust environments for virtual
境の構築や企業内のデータ量の増大に伴い設
17.8
desktop infrastructure (VDI) and security
備投資が旺盛なストレージ基盤の構築ビジネス- に加え、サービス提供型ビジネスの拡充などにもsolutions in line with the era of zero trust networks.
注力したことで、前年同期比１億８千１百万円
At the same time, the Group further expanded- （前年同期比 1.7％増）の増収。

Percentage change
fromFY Mar 2023 1Q(Forecast) (%)

Income taxes

(434)

(290)

(144)

49.6

-

-

Profit867

660

206

31.3-

-

Profit attributable toowners of parent

866

661

204

30.8

8,600

30.8% year on year).

30.27

23.14

7.13

*1 3Ks: The service business cluster comprising10.1 KEL Briefing Center (KBC); KEL Custom Cloud(Million yen)

FY Mar2022
1Q(Forecast)

10,0008,000

10,999Year-on-yearchange■IT Systems BusinessNet sales increased ¥1,499 million year onFY Mar 2022
Year-on-year year, mainly due to strong performance in
1Qchangethe server-related business for the service
industry and government offices.
261
53■Services and Support Business
87 Net sales increased ¥75 million year on year,832
mainly due to an increase in sales related tocloud services for the manufacturing349
886
industry.

8,043

6,544

1,499

314

Services and Support Business

4,827

4,752

75

920

Total

12,871

11,296

1,574

1,235

(78)

(89)

11

39

35

4

12,792

11,207

1,585

1,275

921

353

9,000
8,785
8,000

17.9%

15.3%

25.0%

11,041
17.8%

20.0%

7,000

8,600

7,387

7,382

6,000
15.0%

20.0%

14.9%
14.5%

5,000

6,000
10.0%

13.4%

13.5%

5.0%

742

914

951

FY Mar 2020

FY Mar 2021

FY Mar 2022

1,301

10.0%

2,000

5.0%

866

1,000
0.0%

FY Mar 2023

15.0%

4,000

4,000

2,000

25.0%

(Forecast)

16.8%

0661615FY Mar 2020 FY Mar 2021 FY Mar 2022 FY Mar 2023
481

Profit (1Q)

Profit (Full year)

0.0%

ROE (Full year)

Dividends

Segment profit

IT Systems Business

Other (including adjustments)

12,78412,00030.0%12,800

Ordinary profit (1Q)
Ordinary profit (Full year)
Ratio of ordinary profit to total assets (Full year)

FY Mar2023
1Q

Trends in Profit and ROE

30.0%

10,000030.8

Net sales
FY Mar
2023
1Q

Million yen

Trends in ordinary profit and ordinary profit to total assets

3,000

Segment Information

Total

Million yen

14,000(KCC); and KEL Managed Service (KMS).

Basic earnings per share (yen)previous fiscal year.

(Note 1) Equity = "Total shareholders' equity" + "Total accumulated other comprehensive income" of net assets(Note 2) Equity ratio = Equity capital / Total assets

10.0

the 3Ks*1.
■利益- 営業利益は、７億９千８百万円となり、前年同期比６千９百万円（前年同期比 9.5％増）の■Profit- 増益。
Operating profit increased by ¥353 million year on
経常利益は、９億１千４百万円となり、前年同
10.2 期比１億７千２百万円（前年同期比23.2％year to ¥1,275 million (up 38.4% year on year).
増）の増益。
Ordinaryprofit
increasedby¥350
millionyear on
親会社株主に帰属する四半期純利益は、６億year to ¥1,301 million (up 36.8% year on year).
- １千５百万円となり、前年同期比１億３千４Profit attributable to ownersof parent increased
百万円（前年同期比27.9％増）の増益。
- by ¥204 million year on year to ¥866 million (up- As a result, the equity ratio stood at 79.2%, up 4.1pt from the end of theInterim dividend (Yen)
Year-end dividend (Yen)Annual dividend (Yen)
Equity (Million yen)
Payout ratio (%)

FY March 2023 FY March 2022 FY March 2021 FY March 2020
75.00 (forecast)
75.00
65.00
65.00
80.00 (forecast)
80.00
70.00
70.00
155.00 (forecast)155.00135.00135.0061,88556,361
52,86351.60 (forecast)
50.50
52.30
52.30

*The financial results outlook and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions
deemed reasonable, and do not represent a promise by the Company to achieve them. Actual results may differ significantly from these forecasts due to a wide range offactors.