May 21, 2020

Summary of Consolidated Financial Results
for the Year Ended March 2020 [Japan GAAP]
Name of Company:
KAGA ELECTRONICS CO., LTD.
Stock Code:8154
URL: https://www.taxan.co.jp/
Stock Exchange Listing:Tokyo Stock Exchange, First Section
Representative
Title: President & COO
Name: Ryoichi Kado
Name: Eiji Kawamura
Contact Person
Title: Managing Director, Administration Headquarters
Phone:+81-(0)3-5657-0111
Date of regular general meeting of shareholders:June 26, 2020 (tentative)
Date of commencement of dividend payment:
June 29, 2020 (tentative)
Date of filing of securities report:
June 26, 2020 (tentative)
Supplementary explanatory documents:
Yes
Earnings presentation:
Yes (For institutional investors and analysts)(Yen in millions, rounded down)

1. Financial results for the current fiscal year (April 1, 2019 - March 31, 2020)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Net sales

Fiscal year ended March 2020
Fiscal year ended March 2019

Operating income

Profit attributableto owners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

443,615
292,779

51.5
24.1

10,014
7,570

32.3
(6.8)

10,137
7,859

29.0(10.1)

5,852
8,014

ሺ27.0)
23.5

Note: Comprehensive income: FY ended March 31, 2020: 4,005 million yen [(49.0)%] FY ended March 31, 2019: 7,848 million yen [19.9%]

Earnings per share

Earnings per share(diluted)

Return on
equityYen

Yen

213.21292.07－－

Ratio of ordinary
income to assets
%

7.6
10.9
Ref.: Share of profit/loss of entities accounted for using equity method: FY ended March 2020: (905) million yen
Fiscal year ended March 2020
Fiscal year ended March 2019

Ratio of operating
income to net sales

%

%

4.8
4.6

2.3
2.6

FY ended March 2019: （194）million yen(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen

As of March 31, 2020
As of March 31, 2019
Ref.: Shareholders’ equity

Equity ratio

Million yen

Net assets per share%

Yen

207,638
86,25037.7
2,850.99
213,761
84,25935.8
2,790.97
FY ended March 2020: 78,284 million yen
FY ended March 2019:76,604 million yen(3) Cash flow position (Consolidated)
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen

22,406(1,547)

ሺ3,651)(6,860)

ሺ7,544)
11,68442,69332,231

Fiscal year ended March 2020
Fiscal year ended March 2019
2. Dividends

Dividend per share

1Q

Fiscal year ended March 2019
Fiscal year ended March 2020
Fiscal year ending March 2021
(Forecast)

2Q

3Q

Year- end

Full year

Annualaggregate
amountPayout ratio(Consolidated)

Dividends/
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

－
－

35.00
30.00

－
－

45.00
40.00

80.00
70.00

2,195
1,921

27.4
32.8

3.0
2.5

－

30.00

－

－

－

－

Notes: Breakdown of interim dividend for FY3/19: Ordinary dividend 30.00 yen; 50th anniversary commemorative dividend 5.00 yen
Breakdown of year-end dividend for FY3/19: Ordinary dividend: 40.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/20: Ordinary dividend: 30.00 yen; Extraordinary dividend: 10.00 yen
Dividend forecasts for the fiscal year ending in March 2021 have not yet been decided. For details, please refer to page 4 of the appended
materials, "1. Results of Operations (5) Basic policy for earnings allocations and dividends in the current and next fiscal years ."3. Forecast for the fiscal year ending March 2020 (Consolidated, April 1, 2020 - March 31, 2021)
Consolidated earnings forecasts for the fiscal year ending in March 2021 have not yet been decided as it is difficult at this point
to rationally estimate the impact of the novel coronavirus. For details, please refer to page 4 of the appended materials, "1.
Results of Operations (4) Future outlook."

* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in the scope of consolidation): None
(2) 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 “3.Consolidated Financial Statements and Major Notes (5) Notes to consolidated financial
statements (Changes in accounting policies)” on page 13.
(3) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)

As of March 31, 2020:

28,702,118

As of March 31, 2019:28,702,118(b) Treasury shares

As of March 31, 2020:

1,243,279

As of March 31, 2019:

1,254,924(c) Average number of shares
outstanding during the year

As of March 31, 2020:

27,449,833

As of March 31, 2019:27,439,524(Reference) Non-consolidated Financial Results
Financial results for the fiscal year ended March 2020 (April 1, 2019 - March 31, 2020)(Percentage figures represent year on year changes)(1) Result of operations (Non-consolidated)
Net sales
Fiscal year ended March 2020
Fiscal year ended March 2019

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

76,32673,906

3.3
1.1

211
(323)

－
－

4,751
4,820

ሺ1.4)
50.0

%

1,112 ሺ75.9)
4,620
22.1

Earnings per share(diluted)

Earnings per share
Fiscal year ended March 2020
Fiscal year ended March 2019

Million yen

Yen

Yen

40.51
168.38－－(2) Financial Position (Non-consolidated)
Total assets
As of March 31, 2020
As of March 31, 2019
Ref.: Shareholders’ equity

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

93,971
96,08741,48043,34844.1
45.1

1,510.51
1,579.20

Fiscal year ended March 2020: 41,480 million yen

Fiscal year ended March 2019: 43,348 million yen*The audit procedures by certified public accountant or auditing firm are not applicable to this 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 thesestatements for a number of reasons. For information about the forecasts, please see “1. Results of Operations (4) Future outlook”
on page 4 of Supplementary Information.
(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, May 28, 2020. Supplementarymaterials for the earnings briefing will be posted on our website today (Thursday, May 21st). We plan to post a video of theearnings briefing, together with the briefing materials used on that day, on our website on May 28th.
（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) Cash flows ............................................................................................................................................................................ 4(4) Future outlook ....................................................................................................................................................................... 4(5) Basic policy for earnings allocations and dividends in the current and next fiscal years ...................................................... 5
2. Basic Approach to the Selection of Accounting Standards .......................................................................................................... 5
3. Consolidated Financial Statements and Major Notes .................................................................................................................... 6(1) Consolidated balance sheet ................................................................................................................................................... 6(2) Consolidated statements of income and comprehensive income .......................................................................................... 8(3) Consolidated statement of changes in equity ...................................................................................................................... 10(4) Consolidated statement of cash flows ................................................................................................................................. 12(5) Notes to consolidated financial statements ......................................................................................................................... 14(Notes to going concern assumptions) ................................................................................................................................ 14(Changes in accounting policies) ...................................................................................................................................... 14(Segment information, etc.) ................................................................................................................................................ 15(Per-share information) ..................................................................................................................................................... 17(Subsequent events) .......................................................................................................................................................... 17
4. Non-consolidated Financial Statements....................................................................................................................................... 20(1) Balance sheet ...................................................................................................................................................................... 20(2) Statement of income ........................................................................................................................................................... 22(3) Statement of changes in equity ........................................................................................................................................... 23

1

1. Results of Operations(1) Overview of consolidated business performance
Looking back at economic conditions in this consolidated fiscal year, we find that the US-China trade disputeintensified, and the outlook for the US economy, which has been supported by solid personal spending until now and has
continued to enjoy a moderate expansion, has gradually worsened, particularly in the manufacturing industry. The
slowdown in the Chinese economy is also marked. Moreover, in Europe, the manufacturing industry’s exports fell and theeconomy stalled as the UK left the EU and faced trade problems with the US. In the Japanese economy, capital
investment and personal spending surpassed expectations, in part due to last-minute demand before the consumption tax
hike went into effect in the first half of the fiscal year, but the economy began to fall into a downturn from last autumn,
after the consumption tax hike was imposed. In addition, since the fourth quarter the novel coronavirus, COVID-19 has
spread from China to the rest of Asia, North America and Europe simultaneously and with a chain reaction. This has had asevere impact on the global economy, with economic activity stalling in countries and regions around the world where thevirus has spread.
In the electronics industry to which the Group belongs, in the information and communications field, the smartphonemarket experienced negative growth over the previous year, but the personal computer market was strong due toreplacement demand. In the auto-related field, the number of cars sold grew at negative levels globally, but electronic
technologies, such as electric cars and autonomous driving support technologies, were increasingly introduced, and theautomotive market performed well. In the industrial equipment field, the slump caused by curbs on capital investment in
the Chinese market continued, and conditions remained harsh overall.
In this business environment, in line with our corporate philosophy of “everything we do is for our customers,” theGroup moved aggressively to reinforce its production capacity in Japan and overseas in response to customer requests.
We set this, together with “strengthening manufacturing skills” and “improving engineering skills,” as Group’s threepriority issues in order to strengthen the competitiveness of the EMS(Note) business.
Specifically, in October 2019, a manufacturing subsidiary of Pioneer Corporation became a subsidiary of the Groupand Kaga EMS Towada Co., Ltd. was established. In the same month, the new factory was completed in Sukagawa City
in Fukushima Prefecture, and in December operations began at a second factory in Amata Nakorn, Thailand. A marketing
division dedicated to EMS was set up from April in Fujitsu Electronics Inc. (hereafter, “Fujitsu Electronics”), whichbecame a Group company in January 2019, and the entire Group worked together to expand the EMS business.
(Note) Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis

FY 2020/3

FY 2019/3(April 1, 2018 –March 31, 2019) (April 1, 2019 –March 31, 2020)

YoY（Million yen）

（Million yen）

（Million yen）

Net sales

292,779

443,615150,835

51.5%

Gross profit（Margin）

35,54612.1%

47,016
10.6%

11,470ሺ1.5pt)

32.3%

SG&A

27,97637,001

9,025

32.3%

Operating income

7,570

10,014

2,444

32.3%

Ordinary income

7,859

10,137

2,277

29.0%

Profit before income taxes

9,649

9,286

ሺ362)

ሺ3.8%)

Profit attributable to ownersof parent

8,014

5,852

ሺ2,161)

ሺ27.0%)

EPS

292.07Yen

213.21Yenሺ78.86 Yen)

－

ROE

10.9%

7.6%

ሺ3.3pt)－110.91 Yen

108.74 Yenሺ2.17Yen)－

Exchange Rate
(Average rate during the year)
USD

2

Net sales in the consolidated fiscal year ended March 31, 2020 increased by 51.5% year on year to 443,615 million yen.
This was due to revenue contribution from Fujitsu Electronics, whose results are reflected in the full year beginning in thefirst quarter, as well as the solid performance of the electronic component business, the Group’s core business, andparticularly for medical equipment and automotive applications. Operations were temporarily suspended at some EMS
production sites overseas due to restrictions imposed by governments as COVID-19 spread, but the impact was minimal.
In terms of income, operating income increased by 32.3% year on year to 10,014 million yen and ordinary income
increased by 29.0% year on year to 10,137 million yen. This can be attributed to the steady performance of the electronic
component business, in addition to the aforementioned effect of corporate acquisitions. Operating income reached its
highest level in 15 fiscal years, exceeding the previous high of 8,474 million yen in the fiscal year ended March 31, 2005,
while ordinary income recorded a new high for the first time in two fiscal years, surpassing the previous high of 8,740
million yen recorded in the fiscal year ended March 31, 2019.
Profit attributable to owners of parent decreased by 27.0%, to 5,852 million yen, over the previous fiscal year. Thisdecrease was primarily due to a “gain on bargain purchase” of 2,164 million yen posted in the previous consolidated fiscal
year as extraordinary income in connection with the acquisition of Fujitsu Electronics, and loss on valuation of
investment securities of 880 million yen were posted this fiscal year as an extraordinary loss.
Business segment performance was as follows.
FY 2019/3

FY 2020/3

YoY(April 1, 2018 –March 31, 2019) (April 1, 2019 –March 31, 2020)（Million yen）

（Million yen） （Million yen）

Electronic components

Net sales
Segment income

225,598
4,761

377,587
7,503

151,989
2,741

67.4%
57.6%

Information equipment

Net sales
Segment income

44,344
1,906

43,466
1,707

ሺ878)
ሺ198)

ሺ2.0%)
ሺ10.4%)

Software

Net sales
Segment income

2,876
247

2,778
236

ሺ97)
ሺ10)

ሺ3.4%)
ሺ4.3%)

Others

Net sales
Segment income

19,959490

19,781
452

ሺ177)
ሺ38)

ሺ0.9%)
ሺ7.8%)Total

Net sales
Segment income

292,7797,570

443,615
10,014

150,835
2,444

51.5%
32.3%

Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total.
(a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components andother products, the electronics manufacturing service (EMS), and other activities)
In this business, the EMS business maintained solid performance throughout the year, led by medical equipment andautomotive. Operations were suspended in China and Malaysia from February through March 2020 due to those
governments’ measures to halt the spread of COVID-19, but the impact was limited. At the same time, the components
sales business benefited from solid sales of LED products for automotive devices and consumer electronics, as well as
the addition of a new revenue base, primarily from mobile phones and automotive devices, resulting from theacquisition of Fujitsu Electronics. In addition, the termination of its sales contract with the US-based Cypress
Semiconductor Corporation (announced on October 10, 2019), a major supplier for Fujitsu Electronics, resulted in oneoff revenue. As a result, net sales increased by 67.4% year on year to 377,587 million yen, and segment income
increased by 57.6% year on year to 7,503 million yen.
(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph and imaging products,
original brand products, and other products)
In this business, the PC and PC peripheral business benefited from replacement demand before the consumption tax
hike went into effect and demand to upgrade to Windows 10, and sales to electronics retail stores and schools andeducational institutions were strong. However, the housing-related home electric appliances business remained weak
due to such factors as delivery date adjustments by customers. The commercial facilities-related LED installment
business was affected by a pause in replacement demand from major customers. As a result, net sales decreased by
2.0% year on year to 43,466 million yen, and segment income decreased by 10.4% year on year to 1,707 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products, and other activities)
In this sector, orders for production of computer graphics animation and development of game software continued to
face harsh conditions, partly due to customers in the amusement equipment industry extending their development
schedules and a contraction in the size of businesses. As a result, net sales decreased by 3.4% year on year to 2,778
million yen, and segment income decreased by 4.3% year on year to 236 million yen.
3

(d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement equipment, and sales ofsports goods, and other activities)
In this business, sales of arcade amusement machines continued to be strong. The PC peripherals and mobile phones
recycling business showed robust performance, however golf products suffered sluggish sales. As a result, net sales
decreased by 0.9% year on year to 19,781 million yen, and segment income decreased by 7.8% year on year to 452
million yen.
(2) Overview of financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2020 decreased by 6,122 million yen from the previous fiscal year-end to 207,638 million
yen.
Current assets decreased by 8,064 million yen to 174,331 million yen. This is primarily due to a decrease of 10,649
million yen in notes and accounts receivable – trade, and a decrease of 8,457 million yen in merchandise and finishedgoods, although cash and deposits increased by 8,381 million yen.
Non-current assets increased by 1,942 million yen to 33,306 million yen. This was primarily because the adoption of
IFRS 16 and the construction of a new factory in Fukushima and a second factory in Thailand, among other factors,
increased property, plant and equipment by 2,963 million yen and investment securities decreased by 1,583 million yen.
Liabilities decreased by 8,113 million yen from March 31, 2019, to 121,388 million yen.This is primarily attributed to a
5,165 million yen reduction in borrowings as a result of factors including the repayment of borrowings.
Net assets increased by 1,990 million yen from March 31, 2019, to 86,250 million yen. This was primarily due to a
3,793 million yen increase in retained earnings due to 5,852 million yen in profit attributable to owners of parent, as well
as a 1,234 million yen decrease in the currency translation adjustment account resulting from currency fluctuations.
(3) Cash flows
Cash and cash equivalents as of March 31, 2020 increased 10,461 million yen from March 31, 2019 to 42,693 million yen.
(Operating activities)
Net cash provided by operating activities was 22,406 million yen (1,547 million yen used in the previous fiscal year)
mainly due to the posting of profit before income taxes and a decrease in notes and accounts receivable−trade.
(Investing activities)
Net cash used in investing activities was 3,651 million yen (6,860 million yen used in the previous fiscal year) mainly
due to purchase of property, plant and equipment.
(Financing activities)
Net cash used in financing activities was 7,544 million yen (11,684 million yen provided by the previous fiscal year)
mainly due to the repayment of loans and the payment of dividends.
(4) Future outlook
In the electronics market to which the Group belongs, we continue to predict that demand for electronic components
will increase in the medium to long term due to increasingly high performance of smartphones with the full introductionof 5G (fifth-generation mobile communications system), the expansion of the data center market, and the expansion of
new businesses melding IoT (Internet of Things) with AI (artificial intelligence) in the information and communications
field, as well as progress with electronic components and cyber technology in cars, as with CASE (Connected,
Autonomous, Shared & Services, Electric) in the automotive field.
That said, at present, the decline in demand and restrictions on economic activity due to the global spread of COVID19 are having an impact, and we still cannot predict when the virus will stop spreading, restrictions will be lifted, anddemand will recover after the pandemic subsides.
At this point, it is difficult to logically estimate the effects of COVID-19, and thus we have not formulated our forecasts
for consolidated earnings in the fiscal year ending in March 2021. We will promptly release these forecasts when logicalforecasts are possible.
The Company formulated “Medium Term Management Plan 2021” (announced on November 6, 2018), a three-yearplan which sets forth its growth strategy, running from the fiscal year ending March 31, 2020 to the fiscal year ending
March 31, 2022, and will strive to form “Japan’s No. 1 corporate group in the industry” and, furthermore, to become acompetitive “World Class Company”. Group-wide efforts will be made in implementing the various initiatives of thebasic policy, which comprises “enhancement of revenue base” focusing on markets that are expected to see high growthand profitability in the future, “stabilization of management base” through improvement of efficiency and financial
4soundness after conversion of Fujitsu Electronics to a subsidiary, and “creation of new business” in order to strengthen
resistance to changes in the external environment.
(Reference) Medium-term Management Plan 2021 Numerical Targets
Relevant Fiscal YearNet Sales

Operating Income

ROE

Fiscal year ending March 2022

500.0 billion yen

13.0 billion yen

8.0% or higher(5) Basic policy for earnings allocations and dividends in the current and next fiscal years
The Company positions the return of profits to shareholders as one of the most important management policies, and in
addition to endeavoring to strengthen its financial position and management foundation with a long-term perspective, has
the basic policy of maintaining stable and ongoing dividends to all shareholders with due consideration to consolidated
performance.
Based on this policy, the Medium Term Management Plan 2021 sets out the target of making “stable dividend payments
while securing a consolidated dividend ratio of 25% to 35%.”
With respect to the year-end divided for the fiscal year ended March 31, 2020, the Group plans to pay an extraordinary
dividend of 10 yen per share in addition to the 30 yen per share dividend forecast at the start of the fiscal year, for a totalof 40 yen per share. As a result, the annual dividend, including an interim dividend of 30 yen per share, will be 70 yen per
share.
Although the dividend for the next fiscal year is scheduled to be paid in accordance with the basic policy, due to thedifficulty in forecasting earnings, it has not been determined yet and will be disclosed as soon as it becomes possible to doso.

2. Basic Approach to the Selection of Accounting Standards
The KAGA ELECTRONICS Group prepares consolidated financial statements based on Japanese accounting standards.
Going forward, we will consider adopting IFRS standards with due consideration to financial market trends, share of foreign
investors, and the organizational costs resulting from the adoption of IFRS standards.

5

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)
FY 2019/3(As of March 31, 2019)

FY 2020/3(As of March 31, 2020)

ASSETS
Current assets
Cash and deposits

35,00343,384

Notes and accounts receivable - trade96,14585,495

Electronically recorded monetary claims - operating

5,361

5,876

Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

261

254

33,73425,276

489

567

5,802

6,063

5,894

7,601

ሺ296)

ሺ188)

182,396

174,331

Non-current assets
Property, plant and equipment
9,436

13,899

Accumulated depreciation

ሺ4,526)

ሺ6,533)

Buildings and structures, net

4,910

7,365

Buildings and structures

Machinery, equipment and vehicles
Accumulated depreciation

8,266

10,163

ሺ4,760)

ሺ5,685)

3,506

4,477

Tools, furniture and fixtures

5,119

5,092

Accumulated depreciation

ሺ4,015)

ሺ4,032)

1,104

1,060

4,861

4,924

628

145

15,011

17,974

Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill

259

322

Software

1,819

1,743

Other

126

190

2,206

2,256

Total intangible assets
Investments and other assets
Investment securities

10,085

8,502

Deferred tax assets

1,292

1,584

Guarantee deposits

870

857

Insurance funds
Other

951

894

1,462

1,791

Allowance for doubtful accounts

ሺ515)

ሺ552)

Total investments and other assets

14,147

13,075

Total non-current assets
Total assets

6

31,36433,306

213,761

207,638(Million yen)
FY 2019/3(As of March 31, 2019)

FY 2020/3(As of March 31, 2020)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

77,88470,188

Short-term loans payable

30,656

6,540

Accrued expenses

5,307

5,739

Income taxes payable

1,147

1,884

105

101

6,239

9,201

121,340

93,655Long-term loans payable

1,882

20,833

Deferred tax liabilities

1,300

1,378

94

95

Net defined benefit liability

1,997

1,969

Asset retirement obligations

280

329

Other

2,606

3,127

Total non-current liabilities

8,161

27,732

129,501

121,388

Capital stock

12,133

12,133

Capital surplus

13,865

13,878Retained earnings

51,29755,091

Treasury sharesሺ2,024)

ሺ2,005)

Total shareholders’ equity

75,272

79,097

1,018

0

2

28

527

ሺ707)

Remeasurements of defined benefit plans

ሺ215)

ሺ133)

Total accumulated other comprehensive income

1,332

ሺ812)

Non-controlling interests

7,654

7,965

Total net assets

84,25986,250213,761

207,638

Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities

Provision for directors’ retirement benefits

Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Total liabilities and net assets

7

(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2019/3(April 1, 2018 –March 31, 2019)

FY 2020/3(April 1, 2019 –March 31, 2020)

Net sales

292,779

443,615

Cost of sales

257,233

396,598

Gross profit

35,54647,016

Selling, general, and administrative expenses

27,97637,001

Operating income

7,570

10,014

Interest income

174

269

Dividends income

175

199

Commission fee

209

228

Foreign exchange gain－

275

House rent income

106

126

Non-operating income

349

385

1,015

1,485

Interest expenses

200

308

Loss from equity method investments

194

905

Foreign exchange losses

177

－

Other

153

149

Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income

726

1,362

7,859

10,137

17

61

215

135

2,164

－

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on transfer of business7

12

Settlement received

－

498

Other

－

1

2,403

709

Loss on retirement of non-current assets

16

12

Loss on sales of investment securities

2

57

Loss on valuation of investment securities

550

880

Loss on valuation of golf club membership

6－

Extra retirement payments－

199

Impairment loss

31

380

Other

8

30

Total extraordinary income
Extraordinary loss

Total extraordinary loss

614

1,560

Profit before income taxes

9,649

9,286

Income taxes - current

1,477

3,054

Income taxes - deferred

120

ሺ61)

Total income taxes

1,597

2,992

Profit

8,051

6,293

Profit attributable to owners of parent

8,014

5,852

37

441

Profit attributable to non-controlling interests

8

(Million yen)
FY 2019/3(April 1, 2018 –March 31, 2019)

FY 2020/3(April 1, 2019 –March 31, 2020)

ሺ489)

ሺ1,018)Deferred gains or losses on hedges

18

26

Foreign currency translation adjustment307

ሺ1,260)

9

68

ሺ49)

ሺ104)

ሺ203)

ሺ2,288)Comprehensive income

7,848

4,005

Comprehensive income attributable to owners of parent

7,801

3,708

Comprehensive income attributable to non-controllinginterests

47

297

Other comprehensive income
Valuation difference on available-for-sale securities

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income9(3) Consolidated statement of changes in equity
For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,85345,183

TreasurysharesTotalshareholders’equityሺ2,042)

69,127

Changes of items during period
Dividends of surplus

ሺ2,057)

ሺ2,057)

8,014

8,014

Profit attributable to owners of parent

ሺ1)

ሺ1)

24

36

(0)

(0)

156

ሺ4)

152

Purchase of treasury shares
Disposal of treasury shares

12

Change in treasury shares arising fromchange in equity in entities accounted forusing equity method
Change of scope of equity method
Net changes of items other thanshareholders’ equity
Total changes of items during period

－

12

6,113

18

6,144

Balance at the end of current period

12,133

13,86551,297

ሺ2,024)75,272

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof current period

1,504

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

148

ሺ208)

ሺ16)

Total
Nonaccumulated controlling
otherinterests
comprehensive
income1,428

75

Total net
assets

70,631

Changes of items during
periodDividends of surplus

ሺ2,057)

Profit attributable toowners of parent

8,014

Purchase of treasury
sharesሺ1)

Disposal of treasury
shares36

Change in treasury
shares arising fromchange in equity inentities accounted forusing equity method

ሺ0)Change of scope ofequity method152

Net changes of items
other thanshareholders’ equity

ሺ486)

18

378

ሺ6)

ሺ96)

7,579

7,482

Total changes of items
during period

ሺ486)

18

378

ሺ6)

ሺ96)

7,579

13,627

Balance at the end ofcurrent period

1,018

2

527

ሺ215)

1,332

7,654

84,25910

For the fiscal year ended March 2020 (April 1, 2019 – March 31, 2020)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,86551,297

Total
shareholders’equityTreasurysharesሺ2,024)75,272

Changes of items during period
Dividends of surplus

ሺ2,058)

ሺ2,058)

5,852

5,852

Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares

12

Change in treasury shares arising fromchange in equity in entities accounted forusing equity method

ሺ0)

ሺ0)

19

31

0

0

Net changes of items other thanshareholders’ equity
Total changes of items during period

－

12

3,793

18

3,825

Balance at the end of current period

12,133

13,87855,091

ሺ2,005)79,097

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof current period

1,018

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

527

ሺ215)

2

Total
Nonaccumulated controlling
otherinterests
comprehensive
income
1,332

7,654

Total net
assets84,259Changes of items during
periodDividends of surplus

ሺ2,058)

Profit attributable toowners of parent

5,852

Purchase of treasury
sharesሺ0)

Disposal of treasury
shares31

Change in treasury
shares arising fromchange in equity inentities accounted forusing equity method
Net changes of items
other thanshareholders’ equity0ሺ1,017)26

ሺ1,234)81

ሺ2,144)310

ሺ1,834)

Total changes of items
during period

ሺ1,017)26

ሺ1,234)81

ሺ2,144)

310

1,990

Balance at the end ofcurrent period

0

28

ሺ707)

ሺ133)

ሺ812)

7,965

86,25011

(4) Consolidated statement of cash flows(Million yen)
FY 2019/3(April 1, 2018 – March 31, 2019)

FY 2020/3(April 1, 2019 – March 31, 2020)

Cash flows from operating activities
Profit before income taxes

9,649

9,286

Depreciation

1,740

2,754

Impairment loss

31

380

Amortization of goodwill
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income

85

98

ሺ58)

8

ሺ4)

ሺ1)

ሺ160)

30

53

0

ሺ351)

ሺ469)

Interest expenses
Share of (profit) loss of entities accounted for using
equity method

200

308

194

905

Loss (gain) on sales of property, plant and equipment

ሺ10)

ሺ43)

16

12

ሺ212)

ሺ78)

550

880

ሺ2,164)

－

－

ሺ498)

ሺ1,152)9,086

ሺ2,145)

7,658

ሺ6,746)

ሺ6,667)

Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Gain on bargain purchase
Settlement received
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Decrease (increase) in accounts receivable - otherሺ207)

ሺ1,149)

Increase (decrease) in accrued expenses

552

384

Decrease (increase) in advance payments
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in other current assets

292

ሺ1,431)

ሺ2)

266

ሺ191)

93

Increase (decrease) in other current liabilities

276

2,106

Other, net

135

ሺ350)

Subtotal

371

23,571

Interest and dividend income received

349

481

ሺ189)

ሺ316)

ሺ2,078)

ሺ1,829)Settlement package received－

498

Other, net

00ሺ1,547)22,406

Interest expenses paid
Income taxes paid

Net cash provided by (used in) operating activities

12

(Million yen)
FY 2019/3(April 1, 2018 – March 31, 2019)

FY 2020/3(April 1, 2019 – March 31, 2020)

Cash flows from investing activities(2,661)

ሺ893)

Proceeds from withdrawal of time deposits

1,944

2,924

Purchase of property, plant and equipment

ሺ3,027)

ሺ3,276)

111

271

Payments into time deposits

Proceeds from sales of property, plant and equipment

ሺ420)

ሺ355)

ሺ2,977)

ሺ2,180)

575

651

ሺ286)

ሺ321)

Payments of short-term loans receivable

ሺ2)

ሺ551)

Collection of short-term loans receivable

3

1

ሺ13)

ሺ2)

10

59

ሺ29)

ሺ34)

25

41

Other payments

ሺ125)

ሺ96)

Other proceeds

12

108

ሺ6,860)ሺ3,651)

15,137

ሺ24,038)－

20,266

ሺ1,269)

ሺ1,312)

Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase from purchase of shares of subsidiaries
resulting in change in scope of consolidation

Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments for guarantee deposits
Proceeds from collection of guarantee deposits

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term borrowings
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid

ሺ1)

ሺ0)

ሺ2,054)

ሺ2,056)

Other, net

ሺ127)

ሺ402)

Net cash provided by (used in) financing activities

11,684

ሺ7,544)75

ሺ748)

Net increase (decrease) in cash and cash equivalents

3,352

10,461

Cash and cash equivalents at beginning of period

28,87932,231

Cash and cash equivalents at end of period

32,231

42,693

Effect of exchange rate change on cash and cash
equivalents13(5) Notes to consolidated financial statements(Notes to going concern assumptions)Not applicable(Changes in accounting policies)(IFRS 16 “Leases”)
Subsidiaries that adopt International Financial Reporting Standards are applying International Financial ReportingStandard No. 16 “Leases” (hereafter, “IFRS 16”) from the beginning of the fiscal year ended March 31, 2020. In accordancewith the standards, right-of-use assets and lease liabilities are recognized in principle for all of the lessee’s lease transactions,and depreciation of right-of-use assets and interest on lease liabilities are recorded.
In applying IFRS 16, the transition provisions are followed, opting therefore to measure lease liability at the present value,
discounted using lessee’s incremental borrowing rate at the date of initial application, and record this same amount for rightof-use asset.
As a result of the application of IFRS 16, the following items increased as of March 31, 2020: in non-current assets,“buildings and structures (net)” by 1,039 million yen, “machinery, equipment and vehicles (net)” by 2 million yen, and“tools, furniture and fixtures (net)” by 1 million yen; "other" in current liabilities by 260 million yen, and "other" in noncurrent liabilities by 740 million yen.
The effect of this change on profit and loss for this consolidated fiscal year ended March 31 2020 is immaterial.
(Segment information, etc.)
a. Segment information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular evaluationby the Company’s management is being performed in order to decide how resources are allocated among the Group. The
Company classifies subsidiaries and associates according to their products and services, and implements comprehensive
strategies in Japan and overseas. Consequently, the Group has four reportable segments that are made of different
categories of products and services: electronic components, information equipment, software and others. The electronic
components segment includes the development, manufacture and sale of semiconductors, general electronic components
and other products, the electronics manufacturing service (EMS), and other activities. The information equipment segment
includes sales of PCs, PC peripherals, home electric appliances, photograph and imaging products, original brand products,
and other products. The software segment includes the production of computer graphics, planning and development of
amusement products, and other activities. The others segment includes the repair and supports for electronics equipment,
and sales of amusement equipment and sports goods, and others.
2. Methods of measurement for the amounts of net sales, income (loss), assets, and other items for each reportable segment
The accounting policies of each reportable segment are consistent with the accounting standards adopted to prepare
consolidated financial statements.

14

3. Information about net sales, profit (loss), assets, and other items is as follows:
For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)

Electronic
components
Net sales:
Sales to externalcustomers
Inter-segment sales ortransfers
Total

Reporting segments
Information
Software
Othersequipment

Total

Adjustment*1

Consolidated*2

225,598

44,344

2,876

19,959292,779－

292,779

2,855

1,004

697

4,450

9,007

ሺ9,007)－

228,454

45,3493,574

24,409301,787

ሺ9,007)292,779

Segment income(loss)

4,761

1,906

247

490

7,406

163)

7,570

Segment assets

197,476

14,951

1,859

11,482

225,769

ሺ12,008)

213,761

1,182

58

69

103

1,413

ሺ7)

1,406

2,338

40

66

1,087

3,533

ሺ84)

3,448

OthersDepreciation
Increase in property,
plant andequipment
and intangible assets

For the fiscal year ended March 2020 (April 1, 2019 – March 31, 2020)(Million yen)

Electronic
components
Net sales:
Sales to externalcustomers
Inter-segment sales ortransfers
Total

Reporting segments
Information
Software
Othersequipment

Total

Adjustment*1

Consolidated*2377,587

43,466

2,778

19,781

443,615－443,615

2,337

1,745

765

3,514

8,362

ሺ8,362)－379,925

45,211

3,544

23,295451,977

ሺ8,362)443,615

Segment income(loss)

7,503

1,707

236

452

9,900

114

10,014

Segment assets

187,750

16,575

1,799

12,016

218,141

ሺ10,503)

207,638

54

48

145

2,132

ሺ6)

2,125

144

21

813

3,754

ሺ123)

3,631

OthersDepreciation
1,883
Increase in property,
plant and equipment
2,774
and intangible assets
Note:
1. The adjustment is as follows:(1) Segment income(Million yen)
Fiscal year ended March 2019

Fiscal year ended March 2020

Elimination of inter-segment trade

163

114

Amortization of goodwill

－

－

Total

163

114

(2) Segment assets(Million yen)
Fiscal year ended March 2019

Fiscal year ended March 2020

(14,111)

ሺ12,507)

2,102

2,004

ሺ12,008)

ሺ10,503)

Elimination of inter-segment trade
Corporate *Total* Total corporate assets principally consist of surplus funds of the Company under management (cash and securities, etc.).
15

(3) Depreciation(Million yen)
Fiscal year ended March 2019

Fiscal year ended March 2020

Elimination of inter-segment trade

ሺ7)

ሺ6)

Total

ሺ7)

ሺ6)

(4) Increase in property, plant and equipment and intangible assets(Million yen)
Fiscal year ended March 2019

Fiscal year ended March 2020

Elimination of inter-segment trade

ሺ84)

ሺ123)

Total

ሺ84)

ሺ123)

2. Segment income is adjusted with operating income on the consolidated statements of income and comprehensive income.
b. Associated information
For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)
Geographic information
Net sales
Japan

North America

EuropeAsia(Million yen)Total

180,306
13,078
9,903
89,492292,779
Notes: 1．Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Russia, and Turkey(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India, Indonesia, and Vietnum
For the fiscal year ended March 2020 (April 1, 2019 – March 31, 2020)
Geographic information
Net sales
Japan

North America

EuropeAsia(Million yen)
Total

270,585
26,89420,019126,115443,615
Notes: 1．Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Russia, and Turkey(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India, Indonesia, and Vietnum(Per-share information)(Yen)
FY 2019/3(April 1, 2018 – March 31, 2019)

FY 2020/3(April 1, 2019 – March 31, 2020)

Net assets per share

2,790.97

2,850.99

Earnings per share

292.07213.21

Notes: 1. Earnings per share (diluted) have not been disclosed because there were no potentially dilutive shares.

16

2. The basis of calculation of earnings per share is as follows.
FY 2019/3(April 1, 2018 – March 31, 2019)

FY 2020/3(April 1, 2019 – March 31, 2020)

8,014

5,852

－

－

8,014

5,852

27,439,524

27,449,833

Earnings per share
Profit attributable to owners of parent(million yen)
Profit not attributable to commonshareholders (million yen)
Profit attributable to owners of parent
allocated to common stock (million yen)
Average number of common stock
outstanding during the fiscal year
(Subsequent events)(Share transfer agreement with CITY INDEX ELEVENTH CO., Ltd. for acquisition of shares in EXCEL CO., LTD.)At the board of directors meeting held on December 9, 2019, Kaga Electronics Co., Ltd (“the Company”) resolved toconclude a share transfer agreement with CITY INDEX ELEVENTH CO.,Ltd (“CI11") with respect to the outstanding
shares issued by EXCEL CO., LTD. (“EXCEL”), and concluded the said agreement on the same date. The acquisition of
EXCEL shares under the said agreement (“the Share Acquisition”) is scheduled to be executed on April 1, 2020, upon which
EXCEL became the Company’s wholly-owned subsidiary effective the same date.
Pursuant to the integrated contract entered into between the Company, EXCEL, Office Support K.K., the parent company
of CI11, and CI11 on December 9, 2019, the Share Acquisition executed upon (1) CI11 making EXCEL a wholly-owned
subsidiary through share exchange for cash consideration, and subsequently (2) payment of dividend in kind being made to
CI11 using a portion of assets owned by EXCEL as dividend property.
1. Reasons for the management integration and acquisition of the shares
Since its foundation, the Company has been expanding its business domain by responding to the various needs ofcustomers in accordance with its philosophy of “everything we do is for our customers”. As an independent general trading
company that specializes in electronics, the Company is engaged in a wide variety of business activities and offers a variety
of services to customers both in Japan and abroad, ranging from distribution of Electronic Parts and Semiconductors thatleverages its expertise in the segment, the EMS business where it has a competitive advantage in high-mix low-volume
production, to support for customers in planning, development and design of their products, creation of software/video
images, and provision of network solutions and other system support services.
Meanwhile, changes are taking place with increasing speed in the business environment surrounding the electronics tradingindustry, where there still are many players competing with each other. We have seen reorganization and consolidation ofsemiconductor/device manufacturers, our suppliers, which have led to review of their policies on distribution agents, moves
by end-products manufacturers, our customers, to relocate their production facilities to overseas sites for assembly offinished products, changes in demand and supply and price fluctuations in both domestic and overseas markets reflecting
US-China tariff policies and uncertainty in the future of the global economy. There has also been shortening of product life
cycles as a result of ongoing technological innovations. Against this backdrop, we believe that the competition for survival
among electronic trading companies will become more and more intense in the coming years.
Under these circumstances, the Company has formulated the three-year “Medium Term Management Plan 2021” that runs
from the fiscal year ending March 31, 2020 to March 31, 2022 (announced on November 6, 2018, “the Medium Term Plan”),
in line with which it is working on enhancement of revenue base, stabilization of management base and creation of new
businesses, being guided by its medium to long-term vision of becoming “Japan’s No. 1 corporate group in the industry” by
establishing “profit-focused management” and putting it firmly in place, with the aim of developing into a competitive“world-class company”.In January last year, Fujitsu Electronics Inc., a core trading company of the Fujitsu Group, wasconverted to a subsidiary of the Group, to achieve expansion the Group’s trading company business. In October, theCompany acquired from Pioneer Corporation shares of Towada Pioneer Corporation (currently Kaga EMS Towada Co.,
Ltd.), a manufacturing subsidiary of Pioneer, to strengthen manufacturing capabilities.The decision to make EXCEL a
subsidiary based on the share transfer agreement concluded with CI11 also forms a part of the Company’s efforts to achieve
its growth strategy. In the course of the decision, the Company recognized that EXCEL’s strengths in its key domestic andoverseas products in the area of liquid crystal devices as well as its customer base in China were particularly attractive for
the Company as it seeks to achieve its growth strategy.
17

EXCEL operates a business focusing on electronic devices led by liquid crystal, semiconductors and integrated circuits,
and its integration into the Group is expected to generate the following synergies.
(1)Market share expansion for the Electronic Parts and Semiconductor businessWe will seek to strengthen ability to respond to customer needs and expand share in the electronic parts andsemiconductor markets by complementing the respective companies’ offerings and sales channels. In particular,
realization of synergies can be expected with EXCEL’s strengths in its key domestic and overseas products in the LCD
domain to expand sales to the Company’s customers, as well as EXCEL’s customer base in China to strengthen
distribution of the Company’s products.
(2)Expansion in the scale of the EMS businessWe will strive to further strengthen the profitability of the Company’s EMS business by sharing the Company’s
global network of EMS manufacturing bases with EXCEL, and reaching out to the EXCEL customer base with theCompany’s EMS business.
(3)Acquisition of new businesses
We will bring in EXCEL’s promising new businesses such as EV-related business and mobilize the collective
strength of the Group to achieve early commercialization.
(4)Further improvement in management efficiency through business collaboration between the two companies
We will seek to improve the profitability of both the Company and EXCEL by optimizing and sharing to the greatest
extent possible the two firms’ sales related organizations and other functions.

Through the Share Acquisition, we will seek to solidify our footing as “Japan’s No. 1 corporate group in the industry” as
set out in the Medium Term Plan, and will continue efforts to expand and improve the scale and the quality of Groupmanagement, with the aim of achieving sustainable growth as a competitive “world-class company” which can stand up to
overseas competition with their sales crossing the trillion yen mark.
2. Name, business details, and size of company whose shares are to be acquired(1) Name

EXCEL CO., LTD.

(2) Business

Sale, import and export of LCD devices, integrated circuits, semiconductor devices and other electronic
components and equipment(3) Size of company (consolidated figures for the fiscal year ended March 2019)

Consolidated net assets
Consolidated total assets
Consolidated net sales
Consolidated operating income
Consolidated ordinary income
Ordinary income attributable to owners of parent

24,611 million yen
43,739 million yen
67,499 million yen
369 million yen
252 million yen
569 million yen

3. Name of the selling shareholder

CITY INDEX ELEVENTH CO.,Ltd4. Date of share acquisition

April 1, 2020
5. Number of shares to be acquired, acquisition price, and ownership ratio following acquisition(1) Shares to be acquired

8,665,854 shares(2) Acquisition price
Shares of common stock in EXCEL CO., LTD. (estimate)

100 million yen (Note 2)

Advisory and other fees (estimate)

176 million yen

Total (estimate)276 million yen(3) Ownership ratio following acquisition
100.0%
Notes 1: It is anticipated that the Company will recognize approximately 8.2 billion yen of gain on bargain purchase fromthe Share Acquisition.
18

2: In addition to payment of the acquisition price, we had planned to provide about 8 billion yen to EXCEL CO.,LTD. as working capital on the execution date of the share acquisition, but we instead guaranteed the banktransactions for EXCEL and its subsidiary. Regarding the payment for the acquisition of ordinary shares in
EXCEL, we may make additional adjustments to the amount after referring to EXCEL's consolidated balance
sheets on March 31, 2020.

19

4. Non-consolidated Financial Statements(1) Balance sheet(Million yen)
FY 2020/3(As of March 31, 2020)

FY 2019/3(As of March 31, 2019)ASSETS
Current assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments - trade
Prepaid expenses
Short-term loans receivable from subsidiaries andassociates
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Lease assets
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets

20

7,047
572
2,739
16,664
261
4,199
25
4
292
199

12,804408
3,052
21,003
254
4,001
23
2
1,659
212

17,822

5,486

4,425
415
ሺ893)
53,7772,843
423
ሺ1,861)50,315

2,347
13
－
0
145
3,388
102
5,998

2,186
17
69
0
155
3,292
70
5,791

4
586
5
597

3
673
5
682

8,353
25,82525

7,077
27,092
24

14

14

225

1,392

312

428

322
163
1,495
ሺ355)
ሺ666)
35,71542,31096,087

334
739
1,460
ሺ288)
ሺ1,094)37,181
43,655
93,971

(Million yen)
FY 2019/3(As of March 31, 2019)
LIABILITIESCurrent liabilities
Notes payable - trade
Accounts payable - trade
Short-term loans payable
Short-term loans payable to subsidiaries andassociates
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation differences on available-for-salesecurities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

21

FY 2020/3(As of March 31, 2020)

956
10,221
28,118878
11,475
3,624

5,773

7,023

1,247
37
621
1,340
72
21
63
60
71
48,605

1,279
30
847
1,724
901
1,446
68
80
5
29,386

1,882
68
256
102
1,824
4,134
52,73920,833
42
230
103
1,894
23,10452,491

12,133

12,133

13,912
12
13,924

13,91224
13,937

618

618

7,000
10,777
18,396
ሺ2,019)42,4347,000
9,830
17,449
ሺ2,000)41,519

912

ሺ63)

0
913
43,34896,08724
ሺ39)
41,48093,971

(2) Statement of income(Million yen)
FY 2019/3(April 1, 2018 – March 31, 2019)

FY 2020/3(April 1, 2019 – March 31, 2020)

Net sales

73,90676,326

Cost of sales

65,26667,029Gross profit

8,639

9,297

Selling, general and administrative expenses

8,963

9,085

Operating income (loss)

ሺ323)

211

Non-operating income
Interest income

111

91

Dividend income

4,987

4,372

－

10

Foreign exchange gains
Other
Total non-operating income

379

413

5,478

4,888

191

215

Non-operating expenses
Interest expenses
Loss on investments in partnership35

1

Depreciation of assets for rent

1211Foreign exchange losses

73－

Commission for syndicated loans

－

55

Other

20

64

Total non-operating expenses

333

348

4,820

4,751

Gain on sales of investment securities

73

135

Settlement received

－

498

Other

0

13

Total extraordinary income

73

647

2

54

Loss on valuation of investment securities

550

880

Impairment loss
Loss on valuation of shares of subsidiaries andassociates
Provision of allowance for doubtful accounts

20

245

－

1,380

53

972

Provision of allowance for investment loss

590

428

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales of investment securities

0

15

1,218

3,978

Profit before income taxes

3,675

1,420

Income taxes - current

ሺ753)

638

Income taxes - deferred

ሺ191)

ሺ329)

Total income taxes

ሺ945)

308

Profit

4,620

1,112

Other
Total extraordinary losses

22

(3) Statement of changes in equity
For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at the beginning of current
period12,133Retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

13,912

0

13,912

618

Other retained
earnings

Total
retainedearnings

Generalreserve

Retainedearnings
brought
forward

7,000

8,214

15,833

ሺ2,057)

ሺ2,057)

4,620

4,620

Changes of items during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares

12

12

Net changes of items other thanshareholders' equity
Total changes of items during period

－

－

12

12

－

－

2,563

2,563

Balance at the end of current period

12,133

13,912

12

13,924618

7,000

10,777

18,396

Shareholders’ equity

Balance at the beginning of current
periodValuation and translation adjustments

TreasurysharesTotal shareholders’equityValuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

ሺ2,042)

39,836

1,290

ሺ2)

1,288

Total net
assets41,124

Changes of items during period
Dividends of surplus
Profitሺ2,057)

ሺ2,057)

4,620

4,620

Purchase of treasury shares

ሺ1)

ሺ1)

ሺ1)

Disposal of treasury shares

24

36

36

Net changes of items other thanshareholders’ equity

ሺ378)

3

ሺ374)

ሺ374)

Total changes of items during period

23

2,598

ሺ378)

3

ሺ374)

2,223

Balance at the end of current period

ሺ2,019)42,434

912

0

913

43,34823

For the fiscal year ended March 2020 (April 1, 2019 – March 31, 2020)(Million yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at the beginning of current
period12,133Retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

13,912

12

13,924

618

Other retained
earnings

Total
retainedearnings

Generalreserve

Retainedearnings
brought
forward

7,000

10,777

18,396

ሺ2,058)

ሺ2,058)

1,112

1,112

Changes of items during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares

12

12

Net changes of items other thanshareholders' equity
Total changes of items during period

－

－

12

12

－

－

ሺ946)

ሺ946)

Balance at the end of current period

12,133

13,91224

13,937

618

7,000

9,830

17,449

Shareholders’ equity

Balance at the beginning of current
periodValuation and translation adjustments

TreasurysharesTotal shareholders’equityValuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments(2,019)42,434

912

0

913

Total net
assets43,348Changes of items during period
Dividends of surplus
Profitሺ2,058)

ሺ2,058)

1,112

1,112

Purchase of treasury shares

ሺ0)

ሺ0)

ሺ0)

Disposal of treasury shares

19

31

31

Net changes of items other thanshareholders’ equity

ሺ976)

23

ሺ952)

ሺ952)

Total changes of items during period

18

ሺ915)

ሺ976)

23

ሺ952

ሺ1,868)

Balance at the end of current period

ሺ2,000)41,519

ሺ63)

24

ሺ39)

41,48024