November 25, 2021
Name of Company
KAG A EL ECTRON ICS CO., LT D.
Representative
Ryoichi Kado, President & COO(Stock Code: 8154 Tokyo Stock Exchange, First Section)
Eiji Kawamura, Managing DirectorContact
Head of Administration Headquarters
Tel: 03-5657-0111

Notice Regarding the Formulation of Next Medium-Term Management Plan
Kaga Electronics Co., Ltd. has formulated its Medium-Term Management Plan 2024 for thethree-year period beginning with the fiscal year ending March 2023, with details as follows.

1. About the formulation of Medium-Term Management Plan 2024
In September 2018, the 50th anniversary of our founding, Kaga Electronics Co., Ltd.
formulated its Medium-Term Management Plan 2021, covering the fiscal year ended March
2020 to the fiscal year ending March 2022. Viewing this three-year plan as a growth scenario
aimed at the next 50 years, we have worked to carry out the plan's measures. In the plan's
final fiscal year ending March 2022, we looked back on the midpoint and affirmed generally
favorable progress, including a forecast for exceeding operating income and ROE managementtargets. To share the Group's path to growth over the next three years with our shareholders,investors, and other parties in our market, we have formulated Medium-Term Management
Plan 2024.
2. Overview of Medium-Term Management Plan 2024
(1) Philosophy① Corporate Philosophy"Everything we do is for our customers"② Vision"Aim to be Japan’s No.1 corporate group in the industry""Aim to become a competitive World Class Company"③ Action Guidelines"F.Y.T." ("Flexibility," "Young," and "Try": "Agility to respond tochange; Always take a fresh approach to creating new ideas or
taking action; Never forget your commitment to take on daringchallenges")"3G" ("General," "Global," and "Group": "No matter what theproduct, we will look around the world, and leverage groupstrengths to give customers what they need")"KAGA-ism" (Management mindset, sales mindset, readinessas members of society)1(2) Basic policy
Our medium- to long-term vision is to be "Japan’s No. 1 corporate group in the industry"and "Aim to become a competitive World Class Company" while thoroughly engaging in profitfocused management. To make this vision a reality, in our next Medium-Term ManagementPlan we will develop measures in line with the following basic policy.
① Further strengthening of profitability
We will predict the movements of the times and focus on markets with high potential forgrowth and profitability.
② Strengthening of our management foundation
Pursuing further efficiency and soundness, we will effect a shift to a Group managementfoundation appropriate to "Japan’s No. 1 corporate group in the industry."③ Creation of new businesses
We will make active use of venture investments and M&A to create new businesses andstrengthen our resistance to changes in the external environment.
④ Promotion of SDGs management
We will engage in management that seeks to achieve solutions to social issues andsustainable growth as a company.
(3) Key management targets
FY2022/3
Items
Forecast

Management Targets
FY2025/3

3-year growth rate

Net sales

470 billion yen

750 billion yen

59.6％

Operating income

15 billion yen

20 billion yen

33.3％

9.7％

8.5％ or higher※

ROE* To improve corporate value, we have set a management target of maintaining a stable ROE of 8.5% orhigher, taking into account the cost of shareholders’ equity (approximately 7–8%).

(4) Business portfolio plan (net sales)
FY2022/3
Business segment
Forecast
Electronic
308 billion yen
components

Management Targets
FY2025/3

3-year growth rate

380 billion yen

23.4％

EMS※1

110 billion yen

150 billion yen

36.4％

CSI※2

40 billion yen

54 billion yen

35.0％

Others

12 billion yen

16 billion yen

33.3％

New M&A, etc.
Total

150 billion yen
470 billion yen

750 billion yen

59.6％*1. Electronics Manufacturing Service: Provision of product development and manufacturing services on an
outsourcing basis.
2. Consumer & System Integrator

2(5) Basic policy concerning shareholder returns
Our company views the return of profits to shareholders as a key measure in management.
Comprehensively taking into consideration investments that contribute to future growth, themaintenance of a sound financial foundation over the medium to long term, and the progressof our consolidated business results, we have set a 25–35% guideline for the consolidated
dividend payout ratio, and the stable and continuous enhancement of dividend per share, as
our basic policy.

※Caution regarding forward-looking statements
Forward-looking statements in these materials are based on information available tomanagement at the time this report was prepared and assumptions that management
believes are reasonable.

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