April 28, 2022

[Supplementary Materials]

Kanematsu Electronics, Ltd.

Highlights of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Japanese GAAP]■ Net sales, operating profit, ordinary profit, and profit attributable to owners of parent all
increased.

(Million yen)

♢Net sales♢Ordinary profit♢Profit attributable to owners of parent♢ROE (Return on equity)

8.8 %
15.8 %
19.0 %
1.4 pt

71,331 million yen
12,784 million yen
8,785 million yen
14.9 ％(% indicates change from the previous corresponding period)

主な増減要因Status of Income
FY Mar2022
Full-year

FY Mar 2021
Full-year

Year-onyear change Percentagechange (%)(Million yen)

Net sales

71,331Gross profit

22,089Selling, general and administrative
expenses(9,401)

Operating profit

12,68765,542
19,946(9,075)
10,8705,788
2,143(326)
1,817

8.8
10.7
3.6
16.7

■Net sales
FY Mar 2023 fullNet sales increased ¥5,788 million to ¥71,331
year
Percentage
million (up 8.8% year-on-year) as a result offorecastchange fromprevious year efforts to further expand the robust sales ofservice-oriented business centered on “3Ks*1,(%)
in addition to the construction of environments
72,0000.9 for virtual desktop infrastructure (VDI), aspart of measures taken to reform work styles- and preventing COVID-19, and security
solutions in line with the era of Zero Trust- Network.
12,750Non-operating income

97

Non-operating expenses

(1)

(1)

022.7

-

12,784

11,041

1,742

15.8

12,800Extraordinary income

185

2183

8467.3-Extraordinary loss

(19)

(107)

88(82.3)-Ordinary profit

Profit before income taxes

12,951

Income taxes(4,177)

Profit8,773

Status of assets, liabilities and net assets

172

10,936(3,553)
7,383(74)2,014(624)
1,390(43.2)

-18.4

0.5

■ProfitOperating profit increased ¥1,817 million to ¥12,687 million (up 16.7% year-on-year).
Ordinary profit increased ¥1,742 million to ¥12,784 million (up 15.8% year-on-year). Profit
attributable to owners of parent increased ¥0.1
1,402 million to ¥ 8,785 million (up 19.0%year-on-year).
*1 “3Ks” means the service businesscomprising “KEL Briefing Center (KBC),”“KEL Customer Cloud (KCC),” and “KEL
Managed Service (KMS).”

17.6

-18.8

82,44675,164

7,281

Current assets

75,031

68,981

6,050

Non-current assets

7,415

6,183

1,231

Liabilities

20,51818,749

1,768

Current liabilities

17,966

16,303

1,663

Non-current liabilities

2,551

2,446

105

Net assets

61,92856,4155,513

Equity (Note 1)

61,88556,3615,524

Equity ratio (Note 2)

75.1%

75.0%

0.1pt

8,785

7,382

1,402

19.0

8,600

CF
from operating activities
営業活動によるCF

営業活動によるCF
CFfrom investing activities
投資活動によるCF
投資活動によるCF
Free cash flows
フリーキャッシュ・フロー
フリーキャッシュ・フロー
CF from financing activities
財務活動によるCFNet
increase (decrease) in cash and cash
財務活動によるCF
現金及び現金同等物の増減額
equivalents
Cash and cash equivalents at end of
現金及び現金同等物の期末残高
現金及び現金同等物の期末残高
period258.11

48.96

7,999
7,999

8,610
8,610

7999

8610 ■CF from investing activities-1,074△ 1,074(884) mainly due to the purchase of(1074)

7,725 investment securities, property, plant
7,725
and equipment, and intangible assets.

6,924
6,9246924

7725-4,149△ 4,149-3,863△ 3,863■CF from financing activities(4149)
2,790

Cash outflow of ¥4,149 million,(3863)
3,867

2,790

49668
49,66849,6683,867 mainly due to payment of dividends.

46877
46,877
46,87725.0%

11,041(Million yen)

IT Systems Business

50,914

46,697Year-onyear change

4,217

8,530

20,89919,616

1,283

4,032

3,739

Total

71,814

66,3135,500

12,562

10,842Other (including adjustments)
Total

(482)
71,331(770)
65,542■IT Systems BusinessNet sales increased ¥4,217 million year-onFY Mar 2021
Year-onyear (up 9.0% year-on-year), mainly due toFull-year
year change strong performance in the storage-related
business and the network security-related
7,103
1,426 business.

Services and Support Business

288
5,788

125
12,68727
10,870292 ■Services and Support BusinessNet sales increased ¥1,283 million year-on1,719 year (up 6.5% year-on-year), mainly due toincreases in sales related to the system
operation business and cloud services.
97
1,817

65 円

80.00

70.00

80円

70円

155.00155円

135.00135円

自己資本（百万円）

61,88556,361Equity (Million yen)

61,88556,361

配当性向（％）
Payoutratio (%)

50.5
50.5

52.3
52.3

Annual dividend
年間配当(Yen)

Trends in Profit and ROE

10,00030.0%

10,125

17.9%

7,387

7,382
20.0%

6,739

20.0%

6,000

16.8%
15.0%

25.0%

8,000
7,000

15.3%

Segment Information

FY Mar 2021
Full-year

65.00

8,785

15.0%

FY Mar2022
Full-year

75 円

12,784(2.1)

8,000

FY Mar2022
Full-year

75.00

9,000-Segment profit

Interim dividend(Yen)
中間配当
Year-end dividend(Yen)Million yen

30.0%

FY March
2021/3期
2021

FYMarch 2022
2022/3期

期末配当-884 Cash outflow of ¥1,074 million,△ 884

Trends in ordinary profit and ordinary profit
to total assets

19.0

Net sales

Net assets increased ¥5,513 million (9.8%) from the end of the previous
9.8 fiscal year, mainly due to an increase from recording ¥8,785 million inprofit attributable to owners of parent and a decrease from the- payment of ¥4,148 million in dividends.
As a result, the equity ratio stood at 75.1%.

Dividends

Million yen

10,000307.079.8 ■Net assets■CF from operating activities
FY
Mar20222022 FYFYMar2021
2021 Cash inflow of ¥7,999 million,
2022/3期
2021/3期
FYMarMar
Fullyear
Fullyear mainly due to an increase in
通期
通期
Full-year
Full-year
operating revenue and the collection(Million yen)
(単位：百万円)(単位：百万円)
of trade receivables.

10,999Basic earnings per share (yen)Current liabilities increased ¥1,663 million (10.2%) from the end of the9.4 previous fiscal year, mainly due to increases of ¥746 million in income
taxes payable and ¥465 million in notes and accounts payable-trade.
10.2 Non-current liabilities increased ¥105 million (4.3%) from the end of
the previous fiscal year, mainly due to an increase of ¥109 million in
4.3 retirement benefit liability.

Cash flows

12,000

Profit attributable toowners of parent

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

14,000--

As of March Year-on-year
31, 2021
changeTotal Assets--

As of March
31, 2022■Assets
Current assets increased ¥6,050 million (8.8%) from the end of thePercentage
previous fiscal year, mainly due to increases of ¥2,790 million in cashchange (%)
and deposits and ¥1,590 million in notes and accounts receivable-trade.
9.7 Non-current assets increased ¥1,231 million (19.9%) from the end of theprevious fiscal year, mainly due to an increase of ¥1,857 million in
8.8 investment securities.

6,000

5,000

14.2%

14.5%

14.9%
13.5%

15.0%

4,000
10.0%

10.0%

3,000

4,000
2,000
5.0%

5.0%

2,000

1,000

00.0%

FY Mar 2019

FY Mar 2020

Ordinary profitFY Mar 2021

FY Mar 2022

Ratio of ordinary profit to total assets

00.0%

FY Mar 2019 FY Mar 2020 FY Mar 2021 FY Mar 2022
Profit (Full year)

ROE (Full year)*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 of factors.