February 3, 2022
Name of Company
KAG A E LECTR ON ICS CO., LT D.
Representative
Ryoichi Kado, President & COO(Stock Code: 8154 Tokyo Stock Exchange, First Section)
Eiji Kawamura, Managing Director
Contact
Head of Administration Headquarters
Tel: 03-5657-0111

Notice regarding upward revision to full-year earnings anddividends forecasts
In light of recent earnings trends, Kaga Electronics Co., Ltd. (hereinafter, “the Company”)
has revised its forecasts announced on November 4, 2021, with respect to consolidated
full-year earnings and dividends for the fiscal year ending March 31, 2022. Details are asfollows.
１．Revision of earnings forecast
Revision to consolidated earnings forecast for the fiscal year ending March 31, 2022 (fromApril 1, 2021 to March 31, 2022)
Profitattributable Net income
to owners of per shareparentNet sales

OperatingincomeOrdinary
incomeMillion yen

Million yen

Million yen

Million yenyen

470,000

15,00014,5009,000

336.84

Revised forecast (B)475,000

17,50018,00012,000449.13Difference (B) – (A)

5,000

2,500

3,500

3,000

Percent change (%)

1.1

16.7

24.1

33.3

422,365

11,46711,241

11,399Previous forecast (A)(Announced on November 4, 2021)(Reference)
Results for the fiscal year
ended March 31, 2021

415.07< Reasons for revision >In the third quarter of the consolidated fiscal year ending March 31, 2022, the electronic
components business, which was the driver of the Group’s earnings in the first half, continued
to enjoy strong performance led notably by automotive, medical, and industrial equipment.
While constraints on supplies such as electronic parts were identified as a downside risk
and a cause for concern when the previous forecasts were announced, there has to datebeen no tangible impact on net sales, which are projected to exceed the previous forecasts
based foremost on prioritizing the securing of volume by leveraging the Company's
procurement capabilities as an independent trading company. Further, operating income,ordinary income, and profit attributable to owners of parent are also expected to exceed the‐ 1 ‐previous forecasts as a result of continued efforts regarding the promotion of teleworking andother measures for work style reform amid the COVID-19 pandemic, as well reduction andcontrol of expenses, combined with increases in net sales and gross profit.
Note that of the inventories that the Company protects in relation to the rotary-wing
aircraft business for use in disaster prevention by government agencies, as announced in the“Notice Regarding the Possibility of Claims against EuroTec Japan, Inc. Becoming
Uncollectible” dated September 1, 2021, the sales agreement between the Ishikawa
Prefectural Government and the said company was canceled, effective January 19, 2022,
following which a re-evaluation of the relevant inventory and in-process equipment wasconducted to ensure that the foregoing will have no future impact on the Company’s earnings.
The amounts are reflected reasonably and conservatively on earnings of the third quarter ofthe consolidated fiscal year under review and forecasts for the fourth quarter.
Taking into consideration the aforementioned circumstances, full-year earnings forecasts
have been revised upward as presented above.
2．Revision of dividend forecast
End of 1st halfPrevious forecast

Revised forecast(Reference)
Dividends for theprevious fiscal year

(Fiscal year ended March 31, 2021）

Total45 yen

90 yen65 yen110 yen

50 yen80 yen(Ordinary dividend 40 yen) (Ordinary dividend 80 yen)
(Extraordinary dividend 5 yen) (Extraordinary dividend 10 yen)

(Announced on November 4, 2021)

Dividends for thecurrent fiscal year

Annual dividends
Year-end(Ordinary dividend 40 yen) (Ordinary dividend 80 yen)
(Extraordinary dividend 25 yen) (Extraordinary dividend 30 yen)

45 yen(Ordinary dividend 40 yen)
(Extraordinary dividend 5 yen)

30 yen(Ordinary dividend 30 yen) (Ordinary dividend 60 yen)(Ordinary dividend 30 yen)
(Extraordinary dividend 20 yen) (Extraordinary dividend 20 yen)＜Reasons for revision＞
The Company positions the return of profits to shareholders as one of the most importantmanagement policies, and in addition to endeavoring to strengthen its financial position andmanagement foundation with a long-term perspective, has a basic policy of maintaining
stable and ongoing dividends to all shareholders commensurate with the consolidated results.
In line with the upward revision of the consolidated full-year earnings forecast for the fiscal
year ending March 31, 2022, as described above, the Company has revised upward itsyear-end dividend forecast for the fiscal year under review, from the previous forecast of 45
yen per share (40 yen of ordinary dividend and 5 yen of extraordinary dividend), by adding afurther 20 yen of extraordinary dividend, to 65 yen per share.
As a result, the annual dividend will be 110 yen per share, an increase of 30 yen from thedividend paid in the previous fiscal year.
(Note) The above forecasts are based on the information currently available to the Company on the date of the releaseand certain assumptions deemed reasonable. Actual results may vary from the forecast for a variety of reasons.

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