My name is Eiji Kawamura. Thank you for your usual support. I am going to
explain our financial results in the fiscal year ended in March 2020.

Net sales increased significantly in the fiscal year ended in March 2020 due in partto earnings contributions from the consolidation of Fujitsu Electronics. Bothoperating income and ordinary income exceeded the previous forecasts andreached new highs. Net income decreased due to the elimination of gains on
negative goodwill recorded in the previous fiscal year and the return of our tax
obligations to normal levels, as well as losses on the valuation of shareholdings,
among other factors. As the novel coronavirus outbreak spread in the JanuaryMarch quarter, production was temporarily suspended at some plants, including in
China, but the Group’s concerted efforts to minimize the impact resulted in earnings
that surpassed our plans. The year-end dividend will be increased from the initial
forecast of 30 yen per share with a special dividend of 10 yen per share for 40 yen
per share. When combined with the 30-yen interim dividend, the annual dividend will
total 70 yen per share.
Moving on to an overview of the main segments, in the electronic components
segment, the EMS business showed strong performance throughout the year in theareas of medical equipment and automotive devices. In the components sales
business, the closing of the Cypress business also made a significant contribution.
In the information equipment segment, the PC product sales business grew by
capturing demand from the switchover to Windows 10. The housing-related homeelectronic appliances business remained weak, and the commercial facilities-related
LED installation business was also sluggish due to a lull in large-lot demand.
Due to the spread of novel coronavirus infection, it is difficult at this stage to makereasonable calculations for our earnings forecasts for the fiscal year ending inMarch 2021, so this forecast as well as that for the dividend are undecided at thistime.

This slide shows the financial highlights for the fiscal year ended in March
2020. Net sales increased by 150,836 million yen over the previous fiscal
year to 443,615 million yen, representing a 51.5% increase. Net sales camein at 1,615 million yen over the revised forecast we announced on February 6of this year. Operating income totaled 10,014 million yen, up 2,444 million
yen over the previous year, representing a 32.3% increase. Operating
income was 1,014 million, or 11.3%, higher than the forecast. Ordinary
income totaled 10,137 million yen, a 2,278 million yen, or 29%, increase overthe previous year. This was 1,137 million yen, or 12.6% higher than theforecast. Profit attributable to owners of the parent amounted to 5,852 million
yen, which was 2,162 million yen, or 27%, lower than the previous year. Thiswas 852 million yen, or 17%, higher than we had forecast. As a result, net
income per share was 213.21 yen, 31.04 yen higher than the forecast. ROE
was 7.6%, 3.3 points down over the previous year, but 1.2 points above theforecast.

I will continue with an overview of earnings by segment. Net sales in theelectronic component business totaled 377,587million yen, an increase of
151,989 million yen, or 67.4%, over the previous year. Segment income forelectronic components was 7,503 million yen, up 2,741 million yen, or 57.6%.
Net sales in the information equipment business amounted to 43,466 million
yen, down 878 million yen, or 2%. Segment income was 1,707 million yen,down 198 million yen, or 10.4%. Net sales in the software businessamounted to 2,778 million yen, a decrease of 97 million yen. Segment
income totaled 236 million yen, down 10 million yen. In the Others business,
net sales came in at 19,781 million yen, down 177 million yen, and segment
income was 452 million yen, down 38 million yen.

Next, Fujitsu Electronics became a Group company from January 2019, andits earnings contributed to our overall earnings throughout this fiscal year,
which had a very significant impact. This slide explains the financial impact
resulting from making Fujitsu Electronics a Group company. Of the 443,615
million yen in net sales mentioned earlier, Fujitsu Electronics sales totaled
200,584 million yen. Without Fujitsu Electronics’ sales, net sales for theformer Kaga Electronics Group would have been 243,031 million yen, an
increase of 7,342 million yen over the previous year. Gross profit was 47,016
million yen for the Group overall, but Fujitsu Electronics accounted for 13,708
million yen of this, while gross profit for the former Kaga Electronics Groupwould have been 33,298 million yen, an increase of 1,163 million yen overthe previous year. In addition, while the gross profit margin was 6.3% for
Fujitsu Electronics in the fiscal year ended in March 2019, it improved by
0.5% to 6.8% in the current fiscal year. The former Kaga Electronics Group’s
gross profit margin was 13.7% in the fiscal year ended in March 2020, which
is a 0.1-point improvement over a 13.6% margin in the previous year. SG&A
expenses were 37,001 million yen overall, of which Fujitsu Electronics
accounted for 11,622 million yen and the former Kaga Electronics Groupaccounted for 25,379 million yen, up 572 million yen over the previous year.
Operating income, which is gross profit less SG&A expenses, totaled 10,014
million yen, of which Fujitsu Electronics accounted for 2,086 million yen andthe former Kaga Electronics Group accounted for 7,927 million, representing
a 599 million yen increase.

I will now explain the earnings of the electronic component business, ourmain business. Net sales in this business increased by 151,989 million yen
over the previous fiscal year, when sales totaled 377,587 million yen. Income
increased by 2,741 million yen, due to the EMS business making steadyprogress throughout the year in medical equipment and automotive devices.
Operations were suspended at some overseas plants as a result of the
spread of COVID-19, but the impact on the current fiscal year's results waslimited. In the components sales business, sales of LEDs for in-vehicle andconsumer use were strong. In addition, the consolidation of FujitsuElectronics has added new revenue for mobile phones and automotive
devices. There was also a one-time revenue contribution from the terminationof the contract with Cypress. This completes my overview of the electronic
component business.

Turning next to the information equipment business, these sales account for
10% of overall sales. Sales in the information equipment business fell 878
million yen over the previous year to 43,466 million yen. Income also dropped
198 million yen to 1,707 million yen. Sales of PCs and PC peripherals werestrong to consumer electronics stores, schools, and educational institutions,riding the demand to switch to Windows 10. However, performance in the
housing-related home electronic appliances business was weak as a result ofdelivery date adjustments at customers, and the commercial facilities-related
LED installation business was weak due as replacement demand wound
down.

Now I will explain the highlights of our earnings in the fourth quarter of the
fiscal year ended in March 2020. In the most recent three-month period,
representing the fourth quarter, net sales totaled 104,813 million yen.
Compared to the previous year, this was an 11.9% decrease, and a 3.1%
decline compared to the third quarter. Operating income totaled 2,282 million
yen, up 25.3% over the previous year, and down 8.4% compared to the third
quarter. Ordinary income was 2,161 million yen, up 16.2% over the previous
year and down 11.0% compared to the third quarter. Profit attributable toowners of the parent amounted to 927 million yen, down 70.5% compared tothe previous year and 34.8% compared to the previous quarter.

Financial results by segment show that net sales were 84,060 million yen in
the electronic components segment, which is 16.5% lower than the previous
year and 10.3% lower than the third quarter. Segment income was 1,084
million yen, up 10.5% compared to the previous year but down 50.2%
compared to the third quarter. In the information equipment segment, net
sales were 13,677 million yen, up 14.3% compared to the previous year andup 39.3% compared to the third quarter. Segment income was 853 million
yen, up 50.4% compared to the previous year and up 261.6% compared tothe third quarter. In the software segment, net sales were 990 million yen, up
6.1% compared to the previous year and up 117.3% over the third quarter.
Segment income was 226 million yen, up 81.4% compared to the previous
year. This segment had a 37 million yen loss in the third quarter, but returnedto the black in the fourth quarter. In the Others segment, net sales were
6,085 million yen, up 12.9% compared to the previous year and up 45.4%
compared to the third quarter. Segment income was 87 million yen, up 17%
over the previous year and down 16.4% compared to the third quarter.

Continuing on, I will explain financial conditions. Total assets were 207,638
million yen, down 6,123 million yen. Of this, current assets accounted for
174,331 million yen, down 8,065 million yen; non-current assets totaled
33,306 million yen, up 1,942 million yen; liabilities totaled 121,388 million yen,down 8,113 million yen; and net assets were 86,250 million yen, up 1,991
million yen.

Of the main items on the balance sheet, inventories yielded a balance of
31,908 million yen, down 8,118 million yen. Inventory turnover was 29.4 days,
demonstrating a slight improvement by a little over 11 days from the 40.7-day
turnover in the previous year. In terms of accounts receivable, total notes andaccounts receivable were 91,371 million yen, down 10,136 million yen overthe previous year. Notes and accounts payable amounted to 70,188 million
yen, down 7,696 million yen. Accounts receivable turnover was 75.2 days,
and accounts payable turnover was 64.6 days, showing that accounts
receivable improved somewhat and accounts payable lagged somewhat.

Next, we will look at cash and deposits, interest-bearing debt and cash flows.
The balance of cash and deposits is 43,384 million yen, up 8,381 million yen.
Interest-bearing debt was 28,736 million, down 4,115 million yen. The D/E
ratio stood at 0.37, and the net D/E ratio was -0.19. Moving on to cash flow,
cash flows from operating activities was an inflow of 22,406 million yen. Cashinflows were up significantly over the previous year. Cash flows frominvesting activities were an outflow of 3,651 million yen. In addition, cash
flows from financing activities were an outflow of 7,544 million yen.

In terms of major business indicators, Shareholders’ equity was 78,284
million yen, while total assets were 207,638 million yen, resulting in an equity
ratio of 37.7%. ROE is 7.6%, down from 10.9% in the previous year, primarily
because, while the net profit margin was 2.7% in the previous year, it fell to
1.3% in this fiscal year.

As the new medium-term management plan gets underway, we arevoluntarily releasing new segment information. Previously, our segments
comprised electronic components, information equipment, software andothers, but under our medium-term plan, they are electronic components,
EMS, CSI and others, with the electronic components business divided into
the components sales business and the EMS business. The informationequipment business was renamed the CSI business. The software businessand others were merged and renamed the Others business.

This table shows earnings by segment in the medium-term management plan.
These figures are the result of adjustments by hand between divisions. Net
sales in the electronic components business were 292,905 million yen, up
101.9% over the previous fiscal year. Segment income rose 56% over theprevious year to 3,553 million yen. Net sales in the EMS business totaled
93,340 million yen, up 4.3% over the previous year, and segment income
rose 50.5% over the previous year to 4,015 million yen. In the CSI business,
net sales fell 2% to 43,466 million yen, and segment income declined 10.4%
to 1,707 million yen. In the Others business, net sales fell 0.1% to 13,902
million yen, and segment income rose 12.5% to 623 million yen.
This concludes my overview of our financial results for the fiscal year ended
in March 2020. Thank you for your attention.

Hello. My name is Ryoichi Kado, and I am President and COO of Kaga
Electronics.
Thank you very much for supporting and cooperating with our IR activities.
Managing Director Eiji Kawamura has already reported the details of our
financial results in the year ended in March 2020, and I will report to you on“Management Topics,” namely, the important management issues over the
past year.
I would also like to share with all of you my thoughts on the fiscal year endingin March 2021—a year for which we have not yet formulated earnings
forecasts.

First, I would like to address the coronavirus issue.
As Mr. Kawamura already reported, our EMS factories in China and Malaysia
temporarily suspended operations, but fortunately, the impact on earnings for the
fiscal year ended in March 2020 was extremely limited. This slide summarizes our
response thus far to the coronavirus infections.
First, the head office set up a Coronavirus Response Committee on February 27. In
addition to ensuring the safety of the lives of all Group employees, as well as thesafety and evacuation of employees and their families stationed overseas, the head
office promptly provided material support as part of its BCP. In particular, we sent
large amounts of masks and disinfectant—without these, factories cannot reopen—
as well as food to our factories in lockdown overseas, including China.
Subsequently, when the Japanese government issued a state of emergency
declaration, we directed all Group companies in Japan to have employees
telecommute, and endeavored to comply with the stay-at-home recommendation forabout two months. As a result, the office attendance rate was 22% in May, and wemet the government’s request that social interaction be reduced by at least 70%,
and ideally 80%, with room to spare.
Sales offices continued sales activities with safety as their top priority. In Japan,
employees essentially telecommuted, and overseas they worked from home in linewith instructions from local governments and administrative agencies.
In terms of manufacturing bases, at this point, operations remain suspended during
May in Mexico and India, but manufacturing activities continue, with safetymeasures also implemented, in China, ASEAN, and Europe.

Next, I will report on Fujitsu Electronics’ PMI.
The first slide divides this past year in terms of good news and bad news.
One piece of good news, as Mr. Kawamura explained, is that FujitsuElectronics’ profitability is improving. The gross profit margin improved 0.5
points, from 6.3 to 6.8%. In September 2018, we held an IR briefing on theacquisition of Fujitsu Electronics, and we were asked whether we could
improve the company’s low profit rate. I stated that this was possible bycombining the company’s products, gathered from around the world, as anindependent trading company, an approach that we are taking now.
The second piece of good news is that we were able to reduce selling,
general and administrative expenses by about 1.5 billion yen. This wasprimarily due to cuts to personnel costs by reducing the number of staff.
The bad news is that sales with Cypress have ended, and the distributionagreement was terminated in October 2019. In addition, Taiwan-based
United Microelectronics Corporation (UMC) fully acquired Mie Fujitsu
Semiconductor Limited, which means that the commercial rights for the
products manufactured by Mie Fujitsu to date were dissolved from April.

Next, I will explain synergies resulting from the acquisition of Fujitsu Electronics.
Starting with the EMS business, last April we launched the EMS/EDMS Sales
Division, a sales organization dedicated to EMS, at Fujitsu Electronics. This division
combines with Kaga Electronics’ EMS Business Division to implement sales
activities aimed at the company’s prime customers. Until now, we have approached
90 companies and secured orders from four companies, and expect to generatesales in this fiscal year as well. Sales negotiations are ongoing with 37 companies,
and we anticipate some of these negotiations resulting in multiple projects that willlead to orders.
The second synergy is cross-selling. We are working our hardest to sell Kaga
Electronics products to Fujitsu Electronics’ prime customers. While we have notseen major results in this fiscal year yet, there has been progress with several
projects with annual sales projected at several billion yen in two to three years.
We are not able to provide details today, but this is a very hopeful development.
Third, we are consolidating the two companies’ sales offices and organizations.
These efforts got underway first in Japan, and we have already consolidated the twocompanies’ office locations in Nagoya. We have also closed Fujitsu Electronics’sales offices in Hiroshima and Nagaoka, and moved these trading zones to Kaga
Electronics’ Kansai and Niigata sales offices.
We are making major efforts overseas and are currently working on the
consolidation of the US sales company by spring 2021. Ahead of this, we plan toconsolidate the offices in Chicago and Detroit in the Midwest around summer 2020.
We are currently reviewing plans for the two companies’ sales companies in South
Korea as well.

This slide summarizes the work done over this past year to reinforce thecompetitiveness of the EMS business, the Group’s core business. These threethemes are crucial to strengthening the competitiveness of the EMS business.
“Increasing production capacity” will allow us to flexibly move production away from
China as a result of the prolonged US-China trade dispute, as well as to return
production in Japan, which has earned another look due to the coronavirus outbreak.
“Strengthening manufacturing capabilities” refers to our efforts to further raise ourlevel of quality with the acquisition of the tangible and intangible assets acquired
when Towada Pioneer became a Group company in October 2019, including the
manufacturing know-how accumulated over many years as a manufacturer
specializing in electronics, its exceptional production personnel and production
equipment, and its quality guarantee system.
“Strengthening engineering capabilities” comprises our efforts to elevate our costcompetitiveness by utilizing in-house engineering capabilities and self-developing
production equipment that is ideal for “wide-ranging, low-volume convenience store
EMS,” which is our strength.
We carried out these specific initiatives in line with these three themes. As with
Towada Pioneer, we began operations at a new factory in Fukushima in October
2019 and a second factory in Thailand in December.
In addition, we launched two companies in Suzhou as development companies for
production equipment in a joint venture with a Chinese company.
I believe that these initiatives have provided advantages that propelled us several
levels above our rivals in the EMS business.

Now I would like to explain several points about the current fiscal year (the year
ending in March 2021).
First, as we announced in December 2019, we acquired shares in EXCEL, acompany in our industry, from CITY INDEX ELEVENTH CO., LTD. (CI11) following
various developments. And as a result EXCEL became a Group subsidiary in April
2020.
The decision to make EXCEL a subsidiary was based on four objectives: to expand
the electronic parts business, to expand the scale of the EMS business, to acquire
new businesses, and to further improve management efficiency.
EXCEL has excellent products, as well as a customer base, in the area of liquid
crystal devices—an area in which we have not been very strong thus far. EXCEL is
also in charge of products for Chinese manufacturers such as BOE, and has madeinroads among key smartphone manufacturers in China as customers. For thesereasons, we think sharing these strengths offers us significant merit.
EXCEL is also involved in the EMS business but outsources production. By using
our EMS infrastructure instead, EXCEL will allow us to generate significant
synergies.
We are not yet sure about the outlook for EXCEL’s earnings in the current fiscal
year, but it became a consolidated member of our Group from this fiscal year. The
acquisition price was 100 million yen, so we are certain to post 8.2 billion yen ingains on negative goodwill. As a result, we cannot yet determine the full impact of
the coronavirus on sales and operating income for the Group’s main business, but
we are confident that we will post bottom-line income gains unless conditions
become quite serious.

Next, I will explain the Group’s initiatives related to the fifth-generation mobile
communications system (5G).
As we know, 5G is expected to cause major changes in people’s lives. For example,
it makes it possible for conversations to be translated in real time between devices,smoothing communication in multiple languages. It also enables completely
automated operations based on massive amounts of data, among many otherpossibilities.
Other countries may have taken the lead with 5G, but services on a full scale began
in Japan this spring. As communications systems are converted from the existing
4G and LTE to 5G, demand for additional and replacement communications devices
and industrial equipment will increase, offering major opportunities for the supply
chain related to communications equipment and electronic parts.
Business has already started for the Group, as described here.
In the parts and module business, power-supply devices and heat exchangers, etc.
for 5G base stations
In the finished product business, optical transceivers and routers for businesses,
and access points for local 5G use
Our Group company that develops CG has experienced a stream of orders for thecreation of content for 5G-compatible smartphone games.
As such, the Group overall is meeting a variety of needs for parts, finished products,
software creation and other. As this has only just begun, we cannot expect major
sales in this fiscal year but think this will be a growth field going forward.

Next, I will explain the Group’s initiatives in the helicopter business.
At last year’s General Meeting of Shareholders, we altered the Articles ofIncorporation to enable the company to buy, sell, import and export “aircraft andunmanned aircraft” and added “aircraft use business, unmanned aircraft use
business, aircraft maintenance business, and heliport installation business” to thebusinesses that the company operates.
This allows the company to engage in the sale of such aircraft as helicopters anddrones, and in all related business so that it can prepare for future businessdevelopment.

In response to those who may wonder why Kaga Electronics is involved withhelicopters, the photograph on the right of this slide shows the cockpit of ahelicopter, and as you can see, it is crammed with measuring and communications
equipment. We have a Communications Business Division, and trade with many
communications equipment manufacturers. So this move allows us to use this routeand not only sell the helicopter itself, but offer it packaged together with
communications equipment.
In addition to this incentive, I was also approached by an acquaintance with thisidea, and the company decided to begin selling helicopters made by US-based Bell
Textron Inc. Since we had decided to go ahead with it, we set up an integrated
system encompassing procurement, sales and maintenance.
Our target is disaster-management helicopters. As you know, large-scale disasters
such as torrential rains and earthquakes have occurred frequently in Japan in recent
years, and local governments and prefectural police departments have an increased
need for disaster-management helicopters to prepare for and respond to such
events.
I feel that Kaga Electronics can play a significant role in resolving social issues.
In the fiscal year ended in March 2020, we sold four helicopters, and we currently
have orders for two helicopters for this fiscal year.

In this, the final slide, I would like to explain the business environment and outlook for the
fiscal year ending in March 2021.
As we are currently unable to predict when the coronavirus outbreak will subside, under theGroup’s BCP all EMS factories other than those in Mexico and India and our sales offices inJapan and overseas are functioning without any obstacles.
While the supply chain seems tight for some products on the procurement side, it is generally
recovering; however, end-demand is a serious issue. Production of automobiles is down
sharply in Japan and overseas, and operations continue to be suspended at some factories.
Electronic equipment manufacturers face the same difficult conditions. Companies havealready begun to release their earnings statements, and according to newspaper reports,
60% of these companies state that their earnings forecasts are undecided.
Accordingly, we have also left our earnings forecasts for the fiscal year ending in March 2021
undecided at this point.
We cannot release earnings forecasts to which we can commit. However, no company canoperate without business plans, so we have developed internal plans even though we do nothave a firm grasp on the impact of the coronavirus outbreak. In general, we expect sales andoperating income to decline as a result of the loss of major commercial rights from Cypress
and others and the impact of the pandemic, but we expect higher net income due to theposting of 8.2 billion yen in gains on negative goodwill.
I believe that it will take at least one year, and possibly as long as three years, for thecoronavirus outbreak to subside, and so I am fully aware of the need to manage thecompany with a strong hand. First, I would like to make sure we retain sufficient cash on
hand to prepare us for unforeseen circumstances. I also want to begin the Group’s structuralreforms in anticipation of a post-coronavirus world, and for precisely this reason we mustprioritize our employees’ safety and their jobs in the near term.
Sincerely embracing this approach, I will manage the company in the fiscal year ending inMarch 2021, and I ask for your continued support this year.

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