November 8, 2022

Summary of Consolidated Financial Results
for the First Half Ended September 30, 2022 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:

KAGA ELECTRONICS CO., LTD.
8154
URL: https://www.taxan.co.jp/
Tokyo Stock Exchange, Prime Market
Title: Representative Director,
Representative
Name: Ryoichi Kado
President & COO
Title: Director, Managing Executive Officer
Contact Person
Name: Eiji Kawamura
Head of Administration Headquarters
Phone:+81-(0)3-5657-0111
Date of filing of quarterly securities report (tentative):
November 14, 2022
Date of commencement of dividend payment (tentative):
December 2, 2022
Quarterly earnings supplementary explanatory documents: Yes
Quarterly earnings presentation:
Yes (For institutional investors and analysts)(Yen in millions, rounded down)
1. Financial results for the first half of the fiscal year ending March 2023 (April 1, 2022 –September 30, 2022)(1) Result of operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)
Profit attributable
Operating income Ordinary income
to owners ofparentNet sales
Million yen%

Million yen%

Million yen%

Million yen%

First half ended September 2022

298,760

34.0

18,361

121.2

18,932124.0

13,412 138.5

First half ended September 2021

223,009

18.1

8,300

87.2

8,452

94.8

5,624 (47.8)

Note: Comprehensive income: First half of FY3/2023:21,035 million yen [218.9%]

First half of FY3/2022:6,595 million yen [(40.1%)]

Earnings per
share(diluted)

Earnings per
share
Yen

Yen

First half ended September 2022

510.88－First half ended September 2021

207.39－(2) Financial Position (Consolidated)
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2022

290,923

124,928

42.9

As of March 31, 2022

272,139

105,800

38.8

Reference: Shareholders’ equity：As of September 30, 2022: 124,808 million yen

As of March 31, 2022: 105,680 million yen

2. Dividends
Dividend per share

1Q

2Q

3Q

Year-end

Full year

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 2022

－

45.00

－

75.00

120.00Fiscal year ending March 2023－

100.00－100.00200.00Fiscal year ending March 2023 (Forecast)

Notes: Change in the dividend forecast from the latest announcement: Yes
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 interim dividend for FY3/2023: Ordinary dividend: 70.00 yen; Extraordinary dividend: 30.00 yen
Breakdown of year-end dividend for FY3/2023 (Forecast): Ordinary dividend: 70.00 yen; 55th Anniversarycommemorative dividend: 10.00 yen; Extraordinary dividend: 20.00 yen
With respect to the revision of dividend forecast, please refer to “Notice regarding upward revision to forecasts forfull-year earnings, dividends of surplus, and dividends (dividend increase)” announced today (November 8, 2022).

3. Forecast for the fiscal year ending March 2023 (Consolidated, April 1, 2022 – March 31, 2023)

Net sales
Full year

Operating income(Percentage figures represent year on year changes)
Profit attributable Earnings per
Ordinary income
to owners of parent
shareMillion yen%

Million yen%

Million yen%

Million yen%

Yen

570,000

15.0

28,00033.9

29,00035.2

20,00029.9

761.70Note: Change in the forecast from the latest announcement: Yes
With respect to the revision of dividend forecast, please refer to “Notice regarding upward revision to forecasts forfull-year earnings, dividends of surplus, and dividends (dividend increase)” announced today (November 8, 2022).

* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial
statements: None
(3) 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 “２．Quarterly Consolidated Financial Statements and Major
Notes (4) Notes to quarterly consolidated financial statements (Changes in accounting
policies)” on page 12.
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of September 30, 2022:

28,702,118

As of March 31, 2022:

28,702,118

2,440,773

As of March 31, 2022:

2,454,162(b) Treasury shares
As of September 30, 2022:(c) Average number of shares (quarterly consolidated during the period)
Period ended September 30, 2022:

26,253,692

Period ended September 30, 2021: 27,120,191* The quarterly audit procedures by a certified public accountant or auditing firm are not applicable tothis Quarterly 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
conditions as assumption for earnings forecast and cautionary statement regarding use of theforecast, please see “1. Results of Operations, (3) Qualitative information on consolidated earnings
forecast” on page 5.
(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, November
24, 2022. Supplementary materials for the earnings briefing will be posted on TDnet and our
website today (Tuesday, November 8th). We plan to post a video of the earnings briefing, together
with the briefing materials used on that day, on our website on November 24th.
(A video of the earnings briefing in English will be posted at a later date.)（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) Qualitative information on consolidated earnings forecast .....................................................

5

2. Quarterly Consolidated Financial Statements and Major Notes ......................................................

6(1) Quarterly consolidated balance sheet ..................................................................................

6(2) Quarterly consolidated statements of income and comprehensive income ...............................

8

For the First half (April 1, 2022 - September 30, 2022) ......................................................

8(3) Consolidated statement of cash flows ................................................................................. 10(4) Notes to quarterly consolidated financial statements ............................................................ 12(Notes to going concern assumptions) .............................................................................. 12(Significant change in shareholders’ equity) ...................................................................... 12(Changes in accounting policies） .................................................................................... 12(Additional information） ................................................................................................ 12(Segment information) ................................................................................................... 13－ 1 －1. Results of Operations(1) Overview of consolidated business performance
During the first half of the consolidated fiscal period under review, there were signs of a slowdown
in the US economy due to the impact of inflation and monetary tightening, while the economy
slowed in Europe due to a spike in energy prices resulting from the prolonged conflict in Ukraine, as
well as the impact of rate hikes. In China, the recovery in personal spending slowed due to strict
restrictions on activity in line with the country’s zero-COVID policy. As such, conditions remained
uncertain globally. Meanwhile, in Japan, as upward pressures on prices picked up due to the weakyen, restrictions on economic activity were eased with the end of measures aimed at preventing the
spread of COVID-19 and there were signs of a gradual recovery in the economy, primarily inpersonal spending.
In the electronics industry to which the Group belongs, global supply shortages and extended leadtimes have affected some semiconductors and electronic components since last year, but there aresigns of improved supply/demand conditions, with the exception of some products, such as
automotive- and industrial equipment-related applications, and demand remains robust in a wide
range of industries.
In this kind of management environment, net sales in the first half of the consolidated fiscal year
rose 34.0% year on year to 298,760 million yen. This growth was driven by the electronic
components business, which is the Group’s core business.
Operating income increased 121.2% year on year to 18,361 million yen due to a significant
increase in gross profit resulting from higher net sales and improved gross profit margin. Ordinary
income increased by 124.0% year on year to 18,932 million yen and profit attributable to owners ofparent increased by 138.5% to 13,412 million yen. All metrics from net sales to ordinary income forthe quarter achieved record highs for the first half of a consolidated fiscal year.
In November 2021, the Group announced its three-year management plan, the Medium-Term
Management Plan 2024 (2022–2024), which runs from the fiscal year ending March 31, 2023, to thefiscal year ending March 31, 2025. The new Medium-Term Management Plan sets “organic growth +further M&A challenges” as growth engines, seeks to reinforce and expand overseas and EMS(note)businesses, and aims to realize the goal of becoming “Japan’s top-class corporate group in theindustry with net sales of 750 billion yen” by the Plan’s final fiscal year ending on March 31, 2025.
The Company made a smooth start to the first fiscal year of the new Medium-Term Management
Plan.
(Note ) Electronics Manufacturing Service: Provision of product development and manufacturing services onan outsourcing basis.

FY 2022/3 2Q(April 1, 2021 –FY 2023/3 2Q(April 1, 2022 –YoY

September 30, 2021)

September 30, 2022)（Million yen）

（Million yen）

（Million yen）

Net sales

223,009298,760

75,751Gross profit

27,13340,001

12,868

47.4％

13.4％

1.2pt

－

34.0％

（Margin）

12.2％

SG&A

18,832

21,639

2,807

14.9％

Operating income

8,300

18,361

10,060121.2％

Ordinary income

8,452

18,932

10,479124.0％

Profit before income taxes

8,229

18,951

10,722130.3％

5,624

13,412

7,787

138.5％

109.80 yen

133.97yen

24.17yen－

Profit attributable to ownersof parent
Exchange Rate

(Average rate during the year)

USD

－ 2 －

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, the component sales business achieved a significant increase in sales through early
efforts to capture the requests of customers from a broad range of industries. The supply constraints
experienced with semiconductors and electronic components since the previous fiscal year haveeased for some components, but the Company addressed the ongoing supply shortages faced byautomotive and industrial equipment-related customers by securing sales volume using its strength
in procurement capabilities as an independent trading company as well as proposing alternative
products. In addition, steady progress in PMI (Post Merger Integration)(Note) at acquired companies
such as KAGA FEI Co., Ltd. and EXCEL Co., Ltd. contributed to profit growth in this business.
In the EMS business, sales to key customers primarily in automotive and medical equipment
applications grew significantly. The impact of the weak yen also contributed to sales.
As a result, net sales increased by 38.1% year on year to 268,464 million yen, and segment income
increased by 133.3% year on year to 16,617 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 corporations and educational institutions were firm, particularly forhigh-priced products, and sales of PC peripherals such as security software also remained strong. In
the LED installation business, large-scale work that had been delayed due to a shortage of materials
resumed and contributed to profit in this business.
As a result, net sales increased by 4.7% year on year to 19,597 million yen, and segment income
increased by 6.0% year on year to 965 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products,
and other activities)
In this business, sales recovered due to an increase in orders for new projects in games
development and computer graphics production, among other factors.
As a result, net sales increased by 5.6% year on year to 1,307 million yen, and segment income
increased by 95 million yen was recorded (109 million yen of segment loss in the same period of theprevious fiscal year).
(d) Others (Repair and support for electronics equipment, and sales of amusement equipment andsports goods, and others)
In this business, the PC and PC peripheral recycling business was strong. In addition, gameequipment for the amusement industry in Japan and overseas as well as golf products saw growth insales following a relaxation of pandemic-induced restrictions on movement.
As a result, net sales increased by 8.6% year on year to 9,392 million yen, and segment income
increased by 105.2% year on year to 658 million yen.

－ 3 －Financial Results by Business Segment

Electronic

Net sales

FY 2022/3 2Q

September 30, 2021)

September 30, 2022)（Million yen）

（Million yen）

（Million yen）

194,406

268,464

74,05738.1％

16,6179,493

133.3％

19,597

883

4.7％

965

54

6.0％

1,307

69

5.6％

95

204

－

9,392

740

8.6％

658

337

105.2％

298,760

75,75134.0％

18,361

10,060121.2％

components

Segment income

Information

Net sales

18,713equipment

Segment income

Software

Net sales

910
1,237

Segment income(109)

Net sales

8,651
320

Segment income
Total

Net sales
Segment income

YoY(April 1, 2022 –7,123

Others

FY 2023/3 2Q(April 1, 2021 –

223,0098,300

Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total.

(2) Overview of financial condition(a) Assets, liabilities and net assets
Total assets as of September 30, 2022, increased by 18,783 million yen from March 31, 2022,
to 290,923 million yen.
Current assets increased by 17,780 million yen compared with the end of the previous fiscal
year, to 251,765 million yen. This was primarily due to a 7,432 million yen increase in cash anddeposits and a 6,583 million yen increase in Merchandise and finished goods.
Non-current assets increased by 103 million yen from March 31, 2022, to 39,158 million yen.
Liabilities decreased by 344 million yen from March 31, 2022, to 165,995 million yen.
Net assets increased by 19,128 million yen from March 31, 2022, to 124,928 million yen. Thisis primarily due to a 11,522 million yen increase in total shareholders’ equity and a 7,478 million
yen increase in foreign currency translation adjustment resulting from the recording of profit
attributable to owners of parent.
(b) Cash flows
Cash and cash equivalents as of September 30, 2022, increased by 6,396 million yen fromMarch 31, 2022, to 45,636 million yen.
(Operating activities)
Net cash provided by operating activities was 10,650 million yen (2,013 million yen used in thesame period of the previous fiscal year), mainly due to the posting of profit before income taxes.
(Investing activities)
Net cash used in investing activities was 3,492 million yen (3,699 million yen used in the same
period of the previous fiscal year), mainly due to payments into time deposits and purchase ofproperty, plant and equipment.
(Financing activities)
Net cash used in financing activities was 3,187 million yen (529 million yen provided in thesame period of the previous fiscal year), mainly due to the payment of dividends.

－ 4 －(3) Qualitative information on consolidated earnings forecast
The consolidated full-year earnings forecasts for the fiscal year ending March 31, 2023, announced
on August 4, 2022, have been revised as shown below, and forecasts for the distribution of surplus
funds, with a record date of September 30, 2022, and year-end dividends have been increased.
These revisions only take earnings trends in the first half of the fiscal year into account, given theuncertainties in the outlook for supply/demand trends for semiconductors and other electronic
components, the COVID-19 situation, the conflict in Ukraine, exchange rate fluctuations, and otherfactors. There is no change in the forecasts for the third quarter and onward.
For details, please refer to “Notice regarding upward revision to forecasts for full-year earnings,
dividends of surplus, and dividends (dividend increase)” announced today (November 8, 2022).
1.Consolidated earnings forecasts for the fiscal year ended March 31,2023（from April 1,2022 to March 31,2023）
Results
FY2022/3

Current
Forecasts
FY2023/3

Previous
Forecasts
FY2023/3

Difference from
Previous Forecasts(Million yen)

(Million yen)

(Million yen)

(Million yen)

Net Sales

495,827

540,000

570,000

30,000

5.6％

Operating Income

20,91524,00028,000

4,000

16.7％

Ordinary Income

21,456

24,50029,000

4,500

18.4％

Profit attributable toowners of parent

15,401

16,00020,000

4,000

25.0％

ＲＯＥ

15.7％

14.0％

17.0％

3.0pt

－

2.Revision of dividend forecast
Annual dividends
End of 1st halfPrevious forecast(Announced on May 12, 2022)

70.00 yenfiscal year
Dividends for the previous
fiscal year

Total

80.00 yen

150.00 yen

100.00 yen

200.00 yen

75.00 yen

120.00 yen(Ordinary dividend 70 yen) (Ordinary dividend 140 yen)(commemorative dividend 10 yen) (commemorative dividend 10 yen)

Revised forecast

Dividends for the current

Year-end(Ordinary dividend 70 yen) (Ordinary dividend 140 yen)(commemorative dividend 10 yen) (commemorative dividend 10 yen)
(Extraordinary dividend 20 yen) (Extraordinary dividend 50 yen)

100.00 yen(Ordinary dividend 70 yen)
(Extraordinary dividend 30 yen)

45.00 yen(Ordinary dividend 40 yen) (Ordinary dividend 40 yen) (Ordinary dividend 80 yen)
(Fiscal year ended March 31, 2022） (Extraordinary dividend 5 yen) (Extraordinary dividend 35 yen) (Extraordinary dividend 40 yen)
Note: The above forecasts are based on the information currently available to the Company on the date ofrelease and certain assumptions deemed reasonable. Actual results may vary from the forecast for avariety of reasons.

－ 5 －2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Million yen)
Fiscal year ended

First half ended

March 2022

September 2022

(As of March 31, 2022)(As of September 30, 2022)

Cash and deposits

41,051

48,484

Notes receivable – trade

1,449

2,482

ASSETS
Current assets

Electronically recorded monetary claims – operating
Accounts receivable – trade
Securities
Merchandise and finished goods

9,258

8,468

110,240

113,589

264

256

46,23052,814Work in process

2,363

2,887

Raw materials and supplies

14,013

15,584

Other

9,388

7,374

Allowance for doubtful accounts

(275)

(176)

233,984

251,765

Buildings and structures, net

6,925

6,727

Machinery, equipment and vehicles, net

6,048

6,910

Tools, furniture and fixtures, net

1,030

1,104

Land

5,074

5,074

Total current assets
Non-current assets
Property, plant and equipment

313

714

19,393

20,532

Goodwill

98

64

Software

3,021

2,831

Construction in progress
Total property, plant and equipment
Intangible assets

42

35

3,163

2,930

Investment securities

10,313

10,761

Deferred tax assets

2,189

1,876

Guarantee deposits

1,068

1,076

Other
Total intangible assets
Investments and other assets

915

917

3,466

3,443

Allowance for doubtful accounts(2,355)(2,381)

Total investments and other assets

15,59815,694

Total non-current assets

38,155

39,158272,139

290,923

Insurance funds
Other

Total assets－ 6 －(Million yen)
Fiscal year ended

First half ended

March 2022

September 2022

(As of March 31, 2022)(As of September 30, 2022)

Notes and accounts payable - trade

86,49384,968

Short-term loans payable

23,85825,313

Accrued expenses

7,138

8,471

Income taxes payable

2,834

4,815

301

140

Other

12,291

8,470

Total current liabilities

132,918

132,181－

10,000Long-term loans payable

25,13615,121

Deferred tax liabilities

2,046

2,575

123

131

Net defined benefit liability

2,095

2,145

Asset retirement obligations

572

597

Other

3,446

3,243

Total non-current liabilities

33,42133,813

166,339

165,995

Capital stock

12,133

12,133

Capital surplus

14,81814,820Retained earnings

77,423

88,913

Treasury shares(5,643)(5,612)

Total shareholders’ equity

98,732110,254

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

1,299

1,465

(2)

89

Foreign currency translation adjustment

5,439

12,918Remeasurements of defined benefit plans

210

81

6,948

14,554120

119

105,800

124,928

272,139

290,923

LIABILITIESCurrent liabilities

Provision for directors’ bonuses

Non-current liabilities
Bonds payable

Provision for directors’ retirement benefits

Total liabilities
NET ASSETS
Shareholders’ equity

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 7 －(2) Quarterly consolidated statements of income and comprehensive income
For the First half (April 1, 2022 – September 30, 2022)(Million yen)First half ended
September 2021

First half ended
September 2022

(April 1, 2021 –September 30, 2021)(April 1, 2022 –September 30, 2022)

Net sales
Cost of sales

223,009
195,875

298,760
258,759

Gross profit

27,13340,001

Selling, general and administrative expenses

18,832

21,639Operating income

8,300

18,361

68
111
99

76
177
109

－

21

114
343

359
215

738

959

148

294

403

－

33

95

Non-operating income
Interest income
Dividends income
Commission fee
Share of profit of entities accounted forusing equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sale of businesses
Gain on revision of retirement benefit plan
Reversal of estimated losses associatedwith fund leakage incident that involved
our American subsidiary
Other
Total extraordinary income
Extraordinary loss

Impairment loss

Loss on retirement of non-current assets
Loss on valuation of investment securities

Loss on liquidation of subsidiaries andassociates
Provision of allowance for doubtful
accounts

586

389

8,452

18,932

2
11
7
－

11
39
－
126

172

－

15

1

209

177

36
9
56

28
1
126

174

－

131

－

Other

24

1

Total extraordinary loss

432

158

Profit before income taxes

8,229

18,951

Income taxes - current
Income taxes - deferred

2,130
339

4,773
756

Total income taxes

2,469

5,529

Profit5,759

13,422

Profit attributable to owners of parent
Profit attributable to non-controlling interests

5,624
135

13,4129－ 8 －(Million yen)First half ended
September 2021

First half ended
September 2022

(April 1, 2021 –September 30, 2021)(April 1, 2022 –September 30, 2022)

Other comprehensive income
Valuation difference on available-for-salesecurities

135

168

Deferred gains or losses on hedges

(36)

92

Foreign currency translation adjustment

621

7,326

8

(129)

106

156

835

7,613

6,595

21,035

6,453

21,019142

16

Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofassociates accounted for using equ ty method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests－ 9 －(3) Consolidated statement of cash flows
First half ended
September 2021
(April 1, 2021 –September 30, 2021)(Million yen)First half ended
September 2022
(April 1, 2022 –September 30, 2022)

Profit before income taxes

8,229

18,951

Depreciation

Cash flows from operating activities
1,869

2,009

Impairment loss

36

28

Amortization of goodwill

56

34

8

7

(61)

(114)

(180)

(253)

Interest expenses

148

281

Share of (profit) loss of entities accounted forusing equity method

403

(21)

Loss (gain) on sales of investment securities

(10)

(39)

56

126

(172)

－

12,706

3,614

Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income

Loss (gain) on valuation of investment
securities
Reversal of estimated losses associated withfund leakage incident that involved ourAmerican subsidiary
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories(12,908)(3,984)

Decrease (increase) in accounts receivable other

1,749

1,828

Decrease (increase) in advance payments

(320)

79

Increase (decrease) in notes and accounts
payable - trade(10,121)(8,020)

Increase (decrease) in accrued expenses

550

908

Decrease (increase) in consumption taxes
refund receivable

(244)

1,021

Decrease (increase) in other current assets

(181)

(13)

Increase (decrease) in other current liabilities(1,731)(4,195)

Other, net

174

1,347

Subtotal

58

13,598Interest and dividend income received

189

254

(146)

(266)

(2,286)(2,936)171－(2,013)

10,650

Payments into time deposits

(1)

(934)

Proceeds from withdrawal of time deposits

466－

Purchase of property, plant and equipment(1,586)(1,786)

Proceeds from sales of property, plant andequipment

14

19

Purchase of intangible assets

(723)

(258)

Purchase of investment securities

(883)

(392)

Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating
activities
Cash flows from investing activities－ 10 －

First half ended
September 2021
(April 1, 2021 –September 30, 2021)
Proceeds from sales of investment securities(Million yen)First half ended
September 2022
(April 1, 2022 –September 30, 2022)

215

261

Short-term loan advances

－

(361)

Long-term loan advances(1,179)(6)

Other payments

(137)

(60)

Other proceeds

116

25

(3,699)(3,492)

Increase (decrease) in short-term loans
payable

6,607

(709)

Repayments of long-term loans payable(652)(10,018)

Proceeds from issuance of bonds

－

9,945

Purchase of shares of subsidiaries not resulting
in change in scope of consolidation

－

(21)

Purchase of treasury shares(3,675)(1)

Cash dividends paid

(1,372)(1,966)

(378)

(415)

529

(3,187)

194

2,425

(4,989)6,396

Cash and cash equivalents at beginning of period

44,33339,240Cash and cash equivalents at end of period

39,343

45,636

Net cash provided by (used in) investing
activities
Cash flows from financing activities

Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents－ 11 －

(4) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)Not applicable(Significant change in shareholders’ equity)
Not applicable(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Implementation Guidance No. 31, June 17, 2021, hereinafter referred to as ASBJ Guidance No. 31)
is applied from the start of the first quarter of the consolidated fiscal year under review. In
accordance with the transitional treatment set forth in Article 27-2 of the ASBJ Guidance No. 31,
the Company will continue to apply the new accounting policies prescribed by ASBJ Guidance No.
31 into the future. The effect of this application on the quarterly consolidated financial statements
is immaterial.
(Additional information)(Application of the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing
System)The Company and some of its domestic consolidated subsidiaries have transitioned from theconsolidated taxation system to the group tax sharing system with effect from the first quarter ofthe consolidated fiscal year under review. Accordingly, accounting treatment and disclosure ofcorporation tax, local corporation tax and tax effect accounting are conducted pursuant to “thePractical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (Practical
Solution No. 42, August 12, 2021; hereinafter referred to as “Practical Solution No. 42”). Based on
the provisions of Paragraph 32 (1) of Practical Solution No. 42, we see no impact from the changein accounting policy associated with application of Practical Solution No. 42.
(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 September 30, 2022 and do notinclude significant changes from the financial statement for the previous consolidated fiscal year.

－ 12 －

(Segment information)
I. For the first half ended September 2021 (April 1, 2021 – September 30, 2021)
Information about net sales and income (loss) by reportable segments
Reportable segments
Electronic

Information

components equipment

Software

Others

Total(Million yen)
Adjustment

Consolidated(Note 1)

(Note 2)

Net sales:
Sales to externalcustomers
Inter-segment
sales or transfers
Total
Segment income
Notes:

194,406

18,713

1,237

8,651

223,009－

223,009

1,484

2,310

349

3,306

7,451

(7,451)－

195,891

21,023

1,587

11,957

230,460(7,451)

223,009

7,123

910

(109)

320

8,245

55

8,300

1. Adjustment in segment income of 55 million yen includes 55 million yen for elimination of inter-segment trade.
2. Segment income is adjusted for operating income on the quarterly consolidated statements of income andcomprehensive income.

II. For the first half ended Septmber 2022 (April 1, 2022 – September 30, 2022)
Information about net sales and income (loss) by reportable segments
Reportable segments
Electronic

Information

components equipment

Software

Others

Total(Million yen)
Adjustment

Consolidated(Note 1)

(Note 2)

Net sales:
Sales to external

268,464

19,597

1,307

9,392

298,760－

298,760

1,772

3,393

517

4,039

9,723

(9,723)－

Total

270,236

22,9901,824

13,431

308,484(9,723)298,760

Segment income

16,617

965

95

658

18,33525

18,361

customers
Inter-segment
sales or transfers

Notes:

1. Adjustment in segment income of 25 million yen includes 25 million yen for elimination of inter-segment trade.
2. Segment income is adjusted for operating income on the quarterly consolidated statements of income andcomprehensive income.

－ 13 －