For Institutional Investors/Analystssts

Consolidated Financial Results
for the First Quarter of the Fiscal Yearending March 2020
August 7, 2019
KAGA ELECTRONICS CO., LTD.
TSE 1st section 8154

■ 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.

Summary of Financial Results for the First Quarter Ended June 30, 2019
FY2020/3 1Q
Results

Overview of theElectronic
Component
segment
Overview of theInformation
Equipment
segment

Forecast for
FY2020/3

 Close to twofold increase in net sales with contribution from the conversion ofFujitsu Electronics to a subsidiary.
 Income increases at all income levels, from operating income to profit, supportedby the effects of business acquisition and strong EMS business.
 Significant increase in components sales with the addition of revenue fromFujitsu Electronics. Expansion of automotive devices business.
 Sales expansion in EMS business for medical equipment and air conditioning
devices.
 Strong sales of PCs for individuals and educational institutions driving overall
growth of PC sales.
 Decline of sales in housing-related home electric appliances business from theeffect of delivery date adjustments by customers.
 Decline of sales in LED installation business due to customer preference for
installation in the second half.

 While carefully assessing the business environment with its uncertain
outlook, full-year performance forecasts to be maintained as previouslyannounced in view of solid progress made in the first quarter.
 No change in exchange rate assumptions used for the performance
forecasts.

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2

Financial Highlights(Million Yen)FY2019/3

FY2020/3

1Q Results

1Q Results

YoY

forecast

Progress
Rate

Net sales

55,493

109,564

97.4% 430,000

25.5%

Gross profit

7,641

11,06244.8%

46,500

23.8%

13.8%

10.1%

(3.7)pt

SG&A

6,152

9,212

49.7%

39,50023.3%

Operating income

1,489

1,850

24.2%

7,000

26.4%

Ordinary income

1,679

2,04521.8%

7,000

29.2%

Profit attributableto owners of parent

1,148

1,350

17.6%

5,000

27.0%

EPS (Yen)

41.87

49.20

7.33

182.1727.0%

109.07109.900.83

Gross profit margin

FOREX

US$© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

3

Financial Highlights by Business Segment①（Net Sales）(Million Yen)

Net Sales
Total

118,997
5,388
933
11,97055,49359,889Others
YoY ：
QoQ :

YoY ：
QoQ：

58,3995,190
538
11,23140,50742,94841,438

2019/3
1Q Results

2019/3
2Q Results

2019/3
3Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

4,412
437
10,126+309( 7.5％)-975( -18.1％)

Software

5,276
939
10,725

4,103
465
10,417

109,564

YoY ： +54,070( 97.4％)
QoQ： -9,432( -7.9％)

100,704-27( -6.0％)-495(-53.1％)

Information equipment

94,587YoY ：QoQ :-291( -2.8％）-1,844( -15.4％)

Electronic component
YoY ： +54,080( 133.5％)
QoQ： -6,117( -6.1％)

2019/3
4Q Results

2020/3
1Q Results

4

Financial Highlights by Business Segment②（Segment Income）(Million Yen)

Segment Income
2,2821351621,489

Total

1,976
198

1,82175

54747480

1,850125

YoY ：
QoQ :

72188+361( 24.2％)+29(1.6％)

OthersYoY ：QoQ ：-8( -10.6％)-2( -3.6％)

Information equipment
YoY ：
QoQ :

567

317-128( -40.5％)-378( -66.7％)

Software

1,621
1,402

2019/3
1Q Results

51.3％)
65.1％)

Electronic component

981

- 20
2019/3
2Q Results+549(+639(1,306

1,071- 19

YoY :
QoQ :

2019/3
3Q Results

YoY :-42(QoQ ：-187( -149.6%)‐ 61
2019/3
4Q Results

2020/3
1Q Results

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

- ％)

5

Financial Highlights: Electronic Component Segment(Million Yen)

Net sales/Segment income
100,704

YoY/Net sales/Segment income

 Net sales+54,080million Yen 133.5%UP

4000

 Segment Income+550million Yen

51.3％UP94,587

100000

3500

80000

3000

2500

60000

40,507

2000

1,621

40000

EMS business for medical equipment
recovers, that for air conditioning devices
maintains steady performance.
Components sales business sees growth insales, notably for automotive devices withrevenue contribution from FujitsuElectronics.

1500

1,07120000

QoQ

981
10000

 Net sales-6,117million Yen 6.1％down

 Segment Income+640million Yen 65.2％up

500

2019/3
1Q Results

2019/3
4Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2020/3
1Q Results

6

Financial Highlights: Information Equipment Segment(Million Yen)

Net sales/Segment income/YoY

Net sales
3000

11,970/Segment income

 Net sales-291million Yen Segment Income-128million Yen 40.5％down

2.8％down

12000

10,4172500

10,126

PCs and PC peripherals for individuals andeducational institutions enjoy strong sales.

10000

2000

8000

1500

Sales decline in both housing-related homeelectric appliances business andcommercial facilities-related LED
installation business.

6000

1000

QoQ

567
4000

317

500

188

2000

 Net sales
 Segment Income-1,844million Yen 15.4％down-378million Yen 66.7％down

02019/3
1Q Results

2019/3
4Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2020/3
1Q Results

7

Net Sales by Region(Million Yen)

Net sales

YoY118,995
109,564

85.0％up Japan+28,413 million Yen

 North America+5,288 million Yen 274.3％up

 Europe+4,893 million Yen 444.6％up

 Asia+15,475 million Yen

81.3％upJapan73,947

61,843

QoQ
55,493

 Japan
North America

33,429

7,216
5,993

Europe31,53934,510Asia

2019/3
4Q Results

2020/3
1Q Results

6,841
6,668-12,104 million Yen 16.4％down

 North America＋375 million Yen 5.5％up

 Europe-674 million Yen 10.1％down

 Asia+2,971 million Yen

9.4％up

1,928
1,100
19,035
2019/3
1Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

8Effect of Fujitsu Electronics conversion to subsidiary (FY2020/3 1Q Results)※In million yen, figures in ( ) are simple sums

Net Sales

Gross profit / Gross profit margin

Fujitsu Electronics contributes to consolidated results, EMS
business drives Kaga Electronics' sales growth(112,399)
109,564
51,892

At Kaga Electronics, sales growth leads to increase also ingross profit(11,359)
11,062
3,250
12000

56,906

57,671

8000

Kaga
Electronics
4000

55,49320192019/3
1QResults

12000

10000

2000

KagaElectronics
加賀電⼦

FujitsuElectronics
富⼠通エレクトロニクス

13.8%

Consolidated

55.00%

13.5%

50.00%

10.1%

6.3%

15.00%

10.00%

5.00%

KagaElectronics
加賀電⼦

FujitsuElectronics
富⼠通エレクトロニクス

0.00%
連結

Consolidated

2020/3 1QResults

Even excluding the effects of business acquisition,
Kaga Electronics secures income growth

6,190

11.1%

10.7%

(1,804)

5.8%

6,152

8.4%
Kaga
Electronics
500

2000

6.0%
2019

2019/3
1QResults

2.7%

1000

4000

0315

228

1,616

1,850

1500

6000

Kaga
Electronics

35.00%

25.00%

SG&A ratio improves both at Kaga Electronics andFujitsu Electronics(9,555)
9,212
3,021

2000

40.00%

30.00%

6.5%

2019/31QResults

FujitsuElectronics

45.00%

20.00%

2019

2020/3 1QResults

3,403

80.00%

60.00%

Operating income / Operating income marjin

8000

85.00%

65.00%

7,641

0
連結

7,806

SG&A / SG&A ratio

FujitsuElectronics

90.00%

70.00%

3,718

6000

Kaga
Electronics

95.00%

75.00%

FujitsuElectronics
10000

FujitsuElectronics

100.00%

14000

Kaga
Electronics
加賀電⼦

Fujitsu
Consolidated
Electronics
富⼠通エレクトロニクス

2020/3 1QResults

連結

2.8%

1.7%

1,489

0.4%

0.6%

02019

2019/31QResults

Kaga
Electronics
加賀電⼦Fujitsu
Consolidated
Electronics
富⼠通エレクトロニクス

連結2020/3 1QResults(note) With respect to gross profit and operating income, figures presented above are before consolidation adjustments© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

between the two companies. For reference, after consolidation adjustments, gross profit stood at ５million yen,and operating income came to ５ million yen.

9Balance Sheet Main Items(Million Yen)

Total assets

213,761

Total liabilities and net assets

213,761

209,272

Current assets

128,755
182,396

209,272

Total liabilities

128,755

129,501

125,800

84,25983,472

2019/3

2019/6

176,649
58,123104,069

Non-current assets

24,68531,36432,623

2018/3

2019/3

2019/6

70,631

2018/3

Total net assets

Note: “Partial Amendments to Accounting Standard for Tax Effect Accounting” etc. (Accounting Standards Board ofJapan (ASBJ) Statement No. 28, February 16, 2018) have been adopted from the beginning of the first quarterof the fiscal year ending March 31, 2019. Accordingly, deferred tax assets are presented under investments
10© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved. and other assets, while deferred tax liabilities are presented under non-current liabilities section.

Balance Sheet Main Items(Million Yen)

Inventories
40.7

50,000Accounts receivable/Accounts payable

40.6
40.0

45,000

34.9

77.1

（Day）

Inventory turnover

77.0

80.0

120,000

65.3

77.4

63.3

66.2

（Day）

A/R turnover
70.0

40,000A/P turnover

30.0

60.0
100,000

35,00050.0

20.0

30,00080,00040.0

Notes and A/R

25,00010.0

40,02620,00043,92460,00030.0

101,5070.0

15,00010,000Inventories

93,23520.0

77,88440,00019,455

Notes and A/P

71,68510.0‐10.0
20,00049,841
36,3920.0

5,000‐20.002018/3

2019/3

2019/6

note：Inventory turnover ＝ Inventories ÷ Cost of Sales × 365（day）（2019/6、91day）© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

0‐10.02018/3

2019/3

2019/6

notes：・Notes and A/R are amounts including Electronically recorded monetaryclaims‐operating
・A/R turnover ＝ Notes and A/R ÷ Net sales× 365（day）
・A/P turnover ＝ Notes and A/P ÷ Cost of sales × 365（day）
11（2019/6、91day）Forecast for the Fiscal Year ending march 2020
（million yen）

FY2019/3

FY2020/3

ResultsForecast

YoY

Net sales

292,779

430,000

46.9%

Gross profit

35,54646,500

30.8%

12.1%

10.8%

SG&A

27,97639,50041.2%

Operating income

7,570

7,000-7.5%

Ordinary income

7,859

7,000-10.9%

Profit attributableto owners of parent

8,014

5,000-37.6%

EPS（Yen）

292.07182.1710.9

6.4

Gross profit margin

ROE© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

-12

Exchange Rate/FOREX Sensitivity

FY2019/3
1Q Results（Yen）

FY2020/3
1Q Results（Yen）（Reference、Quarterly basis）
Effect of 1% change(million Yen)Net sales

Ordinary
incomeFY2020/3
Forex
Assumption
(yen)

USD

109.07109.90445

11110.00

THB

3.42

3.48

67

4

3.40

RMB

17.05

16.33

534

17.00

HKD

13.90

14.02

54

114.00© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

13(Reference) Segment disclosure associated with the start of
the Medium-Term Management Plan
Continuous disclosure based on current segmentation according to legal financial accounting,along with voluntary disclosure based on segmentation in line with the new Medium-TermManagement Plan

Current segments

Segments in Medium‐Term Management Plan

Legal financial accounting

Management Accounting

Components sales businessElectroniccomponents

 Sales of semiconductors
 Sales of general electronic
components
 Sales of various kinds ofdevices

EMS business Electronic equipment
manufacture contracting
services

Informationequipment

 Sales of PCs and PC
peripherals
 Sales of home electric
appliances and lighting fixtures
 Sales of photograph andimaging products

Software Production of CG video andsoftware

Others Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

Electroniccomponents

 Sales of semiconductors
 Sales of general electroniccomponents
 Sales of various devices

EMS

 Electronic equipment manufacture
contracting services

CSI

 Sales of PCs and PC peripherals
 Sales of home electric appliancesand lighting fixtures
 Sales of photograph and imaging
products
 Production of CG video andsoftware

Others Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods
14

(Reference) Business segments of Parent company and group companies
ElectronicComponents

EMS

CSIOthers

●●(●)

●

KAGA ELECTRONICS CO., LTD.
Electronics Business Division
EMS Business Division
Communication Network Sales Division
Specific Industry Business Division
Strategic Customer Sales Division
Sales Promotion Division●●●●(●)

●●(●)

●

●

●

(●)

●

●

(●)

(●)

(●)

●●

●

●

●

Major Affiliates in JapanKAGA TECH CO., LTD.
KAGA DEVICES CO., LTD.
KAGA SOLUTION NETWORK CO., LTD.
AD DEVICE CO., LTD.
KAGA MICRO SOLUTIONCO., LTD.
DIGITAL MEDIA LAB., INC.
KAGA SPORTS CO., LTD.
KAGA AMUSEMENT CO., LTD.
KAGA TECHNOSERVICE CO., LTD.
FUJITSU ELECTRONICS INC.

●●●(●)●●●●●●

Major Affiliates Overseas
KAGA TAXAN (SUZHOU) ELECTRONICS CO., LTD.
KAGA (SHANGHAI) ELECTRONICS CO., LTD.
KAGA (SHENZHEN) ELECTRONICS CO., LTD.
KAGA (H.K.) ELECTRONICS LIMITEDKAGA DEVICES (H.K.) LIMITEDKAGA (TAIWAN) ELECTRONICS CO., LTD
KAGA ELECTRONICS (THAILAND) COMPANY LIMITEDKAGA COMPONENTS (MALAYSIA) SDN.BHD.
KAGA ELECTRONICS INDONESIA, PT
KAGA ELECTRONICS (VIETNAM) CO., LTD.
KAGA (SINGAPORE) ELECRONICS PTE LTD
KAGA ELECTRONICS (USA) INC.
TAXAN MEXICO S.A. de C.V.
KD TEC s.r.o.
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

●(●)

●
●
●

●
●
(●)

(●)
●
●

●

●

●

(●)

●

●

●

●

●
(●)

●

15

(Reference) Financial highlights by Business Segment ofMedium-Term Management Plan for the FY2020/3 1Q（million yen）

ElectronicComponent
EMS

CSI

OthersTotal

Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income

FY2019/3

FY2020/3

1Q Results

1Q Results

YoY

21,008

72,105243.2%

264

475

80.1%

21,10324,520

16.2%

838

1,269

51.5%

10,417

10,126

-2.8%

317

188

-40.5%

2,9632,812-5.1%

30-114-470.7%55,493

109,564

97.4%

1,489

1,850

24.2%

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

16

(Reference) Forecasts by Business Segment for the Fiscal Yearending march 2020
（million yen）

Electronic
Component
EMS

CSI

OthersTotal

Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income

FY2019/3

FY2020/3

ResultsForecast

YoY145,042

282,000

94.4%2,278

2,200-3.4%

89,481

95,000

6.2%

2,667

2,800

5.0%

44,34440,000

-9.8%

1,906

1,500

-21.3%

13,912

13,000

-6.6%

554

500

-9.7%

292,779

430,000

46.9%

7,570

7,000

-7.5%

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

17

(Reference) Products and Services by New Business Segment

Electronic components

EMS(Electronics ManufacturingService)

CSI(Consumer & SystemIntegration)

Others© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

 Sale of semiconductors (general-purpose products,customized products)
 Sale of general components (condensers, connectors,cables, switches, etc.)
 Sale of LCD, LED, and various devices
 Manufacturing outsourcing (from mounting of circuitboards to assembly of completed products) services
for various electronic devices, and the resulting
design and development
 Sale of computers and PC ancillary equipment
 Sale of home electronic appliances, lighting
equipment, and photograph and film-related products,etc.
 Production of various CG images and software Planning, development, manufacture, and sale ofamusement-related products Repair of and support for electronics equipment
 Wholesale and retail sales of sports equipment, other18

＜ｍemo＞

19

＜ｍemo＞

20

＜ｍemo＞

21

＜ｍemo＞

22

“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© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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