September 1, 2021
Name of Company
KAGA ELECTRONICS CO., LTD.
Representative
Ryoichi Kado, President & COO(Stock Code: 8154 Tokyo Stock Exchange, First Section)
Contact
Eiji Kawamura, Managing Director
Head of Administration Headquarters
Tel: 03-5657-0111

Notice Regarding the Possibility of Claims against
EuroTec Japan, Inc., Becoming Uncollectible
KAGA ELECTRONICS CO., LTD. (“the Company”), hereby announces the possibility thatcollection of its claims against its business partner, EuroTec Japan, Inc. (“EuroTec”), may
become impossible or delayed accompanying EuroTecʼs filing for the initiation of civil
rehabilitation proceedings with the Osaka District Court on August 31, 2021, as described
below.
1. Overview of Other Party
（１）

Name

EuroTec Japan, Inc.

（２）

Location

2926 Shirahamacho, Nishimuro-gun, Wakayama（３）

Name and Job Title
of Representative

Tsunemasa Koie, President（４）

Business Description

Export/import, sale, and lease of aircraft and related parts（５）

Capital

60 million yen（６）Date of establishment

July 29, 2010
Capital relationships

None
Two employees of KAGA

Relationships with（７）Personal relationships

been dispatched as executives.

Kaga Electronics Co.,Ltd.

ELECTRONICS CO., LTD., haveBusiness relationships
Related party status

Sales transactions in aircraft andrelated parts
None

2. Types and Amounts of Claims against EuroTec Japan, Inc. (as of August 30, 2021)
Loans, etc.: approx. 1.9 billion yen
Inventory: approx. 3.9 billion yen*
*Future sale of inventory to EuroTec is expected to generate approximately 4.2 billion
yen in receivables.

-1-3. Background and Future Outlook
The Company recently received a request for aid from EuroTec after conducting businesswith EuroTec while exploring the prospect of entering the rotary-wing aircraft business inwhich it is involved. EuroTecʼs business is in line with the direction of business that theCompany would like to grow in the future, and the Company expects collaboration between
EuroTecʼs manufacturing and technical capabilities and the Companyʼs planning and sales
capabilities to enable business that more closely meets customersʼ needs. Furthermore, there
is a substantial societal need for the reconstruction of EuroTec and the continuity of its businessin light of the public aspects of its business such as transactions with local governments.
According, the Company has decided to discuss and deliberate supporting EuroTec.
Going forward, the Company will proceed with negotiations with EuroTec regarding supportconditions and schemes and swiftly carry out deliberation of business support to EuroTec via
the appropriate mechanisms on the condition of completion of the prescribed procedures,
including approval by an oversight committee. In addition, while deliberating business support
to EuroTec, the Company will sign a loan contract with EuroTec and provide EuroTec with thecash-flow support it requires.
4. Impact on Earnings
The impact of this matter on the Companyʼs full-year consolidated earnings is still underevaluation.
Among the claims described above, the loans, etc. have already been declared asallowances for the fiscal year ended on March 31, 2021, as well as the first quarter of thefiscal year ending on March 31, 2022. Furthermore, collection related to the inventory for
EuroTec is anticipated based upon the Companyʼs fulfillment of its responsibility as a supplierand completion of delivery to customers through the civil rehabilitation support.

(Reference) Forecast for the fiscal year ending March 2022（announced on May 13, 2021） and
Result for the fiscal year ending March 2021
（million yen）
ProfitOperating
Ordinary
attributable toNet sales
incomeincomeowners of parent
FY2022/3
Forecasts

470,000

13,00012,0008,000

FY2021/3
Results

422,365

11,467

11,241

11,399-2-