KAGA ELECTRONICS
CO., LTD.

Medium- to Long-Term
Sustainability Management Plan
KAGA
ELECTRONICS CO., LTD.
加賀電⼦株式会社
November 25, 2021
TSE 1st section 8154

I am Kado of KAGA ELECTRONICS CO.,LTD. Thank you very much for your continued
support and cooperation in our IR activities.
Next, I would like to explain the Kaga Electronics Group’s Medium‐ to Long‐Term
Sustainability Management Plan, which was announced today.

Sustainability Policy
Under our corporate philosophy of "Everything we do is for our customers," the Kaga Electronics
Group seeks to achieve both a sustainable society and sustainable growth of the Group.
Toward this purpose, we will respect dialogue with customers, business partners, shareholders,investors, employees, local communities, and all other stakeholders, based on our Basic CSR Policy,
Environmental Policy, and Action Guidelines. We will work to increase our corporate value as weplay an active role in achieving a sustainable society.

1 We will tackle environmental issues through our business activities
Through our business activities, we will take action to cut CO2 emissions, reduce waste, andpromote reuse. At the same time, by providing environmentally considerate products and services,
we will contribute to bringing about a society that values the global environment.

2 We will respect human rights and develop human resources
We will respect the human rights of all stakeholders, regardless of gender, age, nationality, socialstatus, disabilities, or other personal attributes. We will develop work environments in which
diverse employees can work in safety and health, both physically and mentally, and will develop
personnel systems and education and training systems that allow these employees to maximize
their individual abilities. We will further work to develop human resources who will take on thechallenge of innovation.

3 We will work to build mutual trust with society
We will work to be a company that earns the trust of society by observing laws and regulations,by strengthening our governance structure, and by sincerely engaging in fair competition, theprovision of high-quality products and services, timely and appropriate information disclosure,and other corporate activities.
1First of all, KAGA ELECTRONICS has established the sustainability policy as our basic approach tothe SDGs, so I would like to explain it.
As stated in this preamble, under our corporate philosophy of “Everything we do is for ourcustomers,” the Kaga Electronics Group seeks to achieve both a sustainable society andsustainable growth of the Group.
Toward this purpose, we will respect dialogue with customers, business partners, shareholders,investors, employees, and all other stakeholders. We will work to increase our corporate value
as we play an active role in achieving a sustainable society.
The following 3 items are included in our Sustainability Policy.
The first is to tackle environmental issues through our business activities. Through our businessactivities, we will take action to cut CO2 emissions, reduce waste, and promote reuse, At thesame time, by providing environmentally considerate products and services, we will contributeto bringing about a society that values the global environment.
The second is to respect human rights and develop human resources. We will respect the humanrights of all stakeholders, regardless of their gender, age, nationality, or other personal
attributes. In addition, we will develop work environments in which diverse employees can workin safety and health, both physically and mentally, and will develop personnel systems andeducation and training systems that allow these employees to maximize their individual abilities.
We will further work to develop human resources who will take on the challenge of innovation.
The third is to establish mutual trust with society, which includes compliance with laws andregulations, fair competition, and the provision of high‐quality products and services. We will
work to be a company that earns the trust by strengthening our governance structure and bysincerely engaging in fair competition, and timely and appropriate information disclosure, andother corporate activities.

Sustainability promotion structure
The Kaga Electronics Group views the promotion of sustainability as a key management issue.
We have established an SDGs Committee chaired by the President and COO of Kaga Electronics
Co., Ltd., and, under this committee, have created working groups for "Environment," "Society,"and "Governance." In this way, we have established a management structure that promotes
sustainability across the Group.
Under commitment by top management and collaboration among business divisions, we act
through these working groups to formulate policies, measures, and goals that address ESG issues,
to manage progress, and to otherwise promote sustainability within the Group as a whole.

Board of Directors
SDGs Committee
Discuss and address medium- to long-term management matters associated withenvironmental (E), social (S) and governance (G) issues, with the three themeMission specific working groups playing a central role, to help enhance the Companyʼs
corporate value through the implementation of cross-organizational initiatives
encompassing the Group■ Chair
︓ Kaga Electronics Co., Ltd.'s President■ Members︓ Kaga Electronics Co., Ltd.'s chief officers in charge of supervisingvarious divisions

Environmental Issue
Working Group

Social Issue
Working Group

Governance Issue
Working Group
2In April this year, we announced the establishment of the SDGs Committee, which is ourpromotion system.
I, as President, chaired the committee, and the committee members were 5 directors
who were responsible for business and administrative divisions. We have designed amanagement system to promote sustainability management across the Group byassigning environmental, social, and governance working groups directly under thecommittee.
Under the commitment of top management, and in cooperation with business divisionsand Group companies, we have formulated policies and measures to address ESG issues,
with the aim of making a Group‐wide effort.
The Committee has met 3 times since April. The working groups have met 7 times to 8times each and have had active discussions and deliberations on each theme.
One of the outputs of this plan is the Medium‐ to Long‐Term Sustainability ManagementPlan, which was announced today.

Materiality
The Kaga Electronics Group is committed to seriously addressing a variety of issues relevant not
only to itself but also communities around the world and thereby living up to the expectations ofsociety. In line with this commitment, the Group has employed four perspectives̶ Environmental(E), Social (S), Governance (G) and Business (B)̶to identify priority issues that are deemed toexert significant impact on its business operations, as listed below. Through its efforts to tackle themateriality of these issues, the Group will practice corporate activities aimed at contributing to therealization of a sustainable society, with the aim of further improving its corporate value.
Materiality

E

Create a clean
globalenvironment

S

Create aninclusive company
as well as anaffluent societyG

Createa sustainable
management base

B

Realizesustainablebusiness growth

Related SDGs

Changes in the socio-economic
environment• Growing seriousness of global warming
and other environmental problems• Urgent call for carbon neutrality• Changes in social structure as we movetoward the popularization of the newnormal• Human resource shortages attributable
to a low birthrate and an aging
population• Public calls for more robust corporate
governance• Growing need for business resilienceagainst changes in the operating
environment• Progress in digital transformation• Coming of a “super-smart” society due
to the popularization of ICT, such as
IoT and AI• Intensification of global competition

Our initiatives• Provide products and services designed tohelp resolve environmental and energy
issues• Continue initiatives to reduce theenvironmental burden• Promote workforce diversity andinnovative work styles to better adapt tothe new normal• Develop human resources by passing
down and updating KAGA-ism• Further strengthen corporate governanceand compliance• Thoroughly practice a profit-focusedmanagement approach• Provide products and services that
contribute to the transition to a digitaldriven society• Create new businesses aimed at helping

3This slide shows some of the key issues that we have discussed and identified.
We have taken a sincere look at the various challenges we face globally and thedemands of society and have identified 4 key issues that will have a significant impact on
our operations from the perspectives of the environment, society, governance, andbusiness.
By addressing these important issues, we will practice corporate activities that
contribute to the realization of a sustainable society and promote further enhancementof corporate value.
Specifically, in terms of the environment, we will create a clean global environment. In
society, we will create a company that is easy to work for and a prosperous society. In
governance, create a sustainable management base. In the area of business, our key
challenge is to achieve sustainable business growth.
For details on each of these, please see the next page for a list of themes, targets, andKPIs to be addressed.

Medium- to long-term sustainability targets and major KPIs
Key themes

EAchievement of shift to100% renewable energy

Issues to address and issues toexamine• Adoption of renewable energy atdomestic sales offices• Adoption of renewable energy atdomestic manufacturing sites• Adoption of renewable energy atoverseas manufacturing sites

Shift to electricity for• Switch to electric vehicles for domestic
sales vehicles (EV, HV, PHV, FCV)
company-owned vehicles

2030: 100%

By 2024: Information
gathering/analysis and determinationof policy
・In-house power generation/externalprocurement
・Solar panel/biomass power
generation/renewable energy
businesses

2030: 50%
2050: 100%

Percentage of female newgraduates in general positions
2023: 30% (5.8%)
Percentage of women in
management positions
2024: 15% (13.3%)

Work–life management
and enhancement ofproductivity• Enhancement of programs such as
childcare/family-care and telework• Acquisition of certification as a Healthand Productivity Management
Organization

2022: Implementation of review
2023: Certification

Restructuring the• Independent Outside Directors: atgovernance structure in
least 1/3
response to the revision of
the Corporate Governance • Establishment of Nomination andCode and the reorganization
Compensation Committeeof Tokyo Stock Exchange

Further strengthening
the supervisory andoversight functions of
top management overbusiness execution

2030: 30%
2050: 100%

2024: 80% (78.5%)• Ensuring diversity in core humanresources (Women, foreign
nationals, mid-career hires)• Initiatives to employ elderly workers
and persons with disabilities• Diversification of the Board ofDirectors• Full compliance with Corporate
Governance Code for Prime Market• Adoption of delegation-based
executive officer structure• Transition to structure of company
with committees

Long-term targets

2024: 40% (1%)

Diversity and humanresource management

SG

Medium-term targets

2030: 100%
Percentage of female
new graduates ingeneral positions
2028: 40%
Percentage of women in
management positions
2029: 17%2025: Certification byoutside party
2024 onward:
Continuation ofcertification

Performed in June 2021

By June 2022: Determination ofpolicy
Performed in November 2021

Setting of targets inline with next
Corporate Governance
Code revision

April 2022: Enactment
By March 2023: Determination ofpolicy*Numbers in parentheses represent current values
4Finally, I would like to extract only the main items regarding medium‐ to long‐term sustainability goals andmajor KPIs.
In the area of the environment, we will work to achieve 100% renewable energy for the energy weconsume in our business activities. We are currently using about 1% of renewable energy at our sales
offices in Japan, but we aim to achieve 40% by 2024, 3 years from now, and 100% by 2030.
On the other hand, in our EMS business, we have our own factories in 21 locations in 10 countries in Japanand overseas. Therefore, we have set long‐term goals for the energy we use: 30% to 50% by 2030 and
100% by 2050. In order to implement the plan, we will spend the next 3 years collecting and analyzing
information to determine whether we should generate our own power or procure it from external sources.
We will also decide whether solar panels or biomass power is the best way to generate our own electricity.
Through these efforts, we would also like to consider the declaration of RE100.
In society, we will work on diversity and human resource management, as well as work‐life management
and productivity improvement.
In particular, to ensure the diversity of our core human resources, we will increase the ratio of women inmanagement positions from the current 13% to 15% by 2024. As a preliminary step, we are planning toincrease the ratio of women in newly hired general positions from the current 6% to 30%.
Lastly, with regard to governance, as part of the restructuring of our governance system in response tothe revision of the CG Code and the reorganization of the Tokyo Stock Exchange, we have already
implemented the establishment of at least one‐third independent outside directors and the Nominationand Compensation Committee in June of this year. We hope to decide and propose a policy fordiversification of the Board of Directors at next year’s general meeting of shareholders.
We also plan to introduce a delegated executive officer system in April next year to further strengthen ourmanagement supervision and execution functions. We would like to decide on a policy for a company withcommittees by March 2023.
In this way, we are committed to sustainability management.
Thank you very much for listening.

＜ｍemo＞

55

“Everything we do isfor our customers
20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629
Contact: Investor Relations & Public Relations Office
TEL:+81-3-5657-0106
FAX:+81-3-3254-7133
E-mail︓ webmaster@taxan.co.jp
https://www.taxan.co.jp

■ 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.
■ Display method in this material
Number : Truncated less than the display unit.
Ratio: After calculation in yen units, Round down one digit of Display unit.