For Institutional Investors/Analystssts

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.

● Net sales by and large maintained the same level year-on-year, driven

FY2019/3 1QResultsby EMS business.
● Decreases in operating income and net profit, as anticipated at thebeginning of the period.
*Causes of the decreases: production adjustments resulting from model switching at
major customers, upfront expenses of new overseas sites at their start-up phase, etc.

Overview of themain businesssegments● Electronic components business: EMS business for medical equipment wasslow, but that for automotive and air conditioning devices maintained
steady performance. Components sales business remained sluggish.

● Information equipment business: PC-related business was sluggish butsales of housing-related home electric appliances and commercial
facilities-related LED installation business continued to show robustgrowth.

● Earnings forecast to be presented in the Financial Results for the Second

Forecast for
FY2019/3

Quarter ending September 30, 2018, along with the next Medium-termManagement Plan.

● No change however in the Company’s stance to aim for the achievementof the numerical targets* set out for the final fiscal year of theMedium-term Management Plan.
*Medium-term Management Plan Numerical Targets: Net sales ¥290 billion,
Ordinary income ¥10 billion, ROE 8% or higher© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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(Million Yen)FY2018/3

FY2019/3

1Q Results

1Q Results

YoY▲ 681▲ 241
Gross profit margin

14.0%

13.8%▲0.2pt

359
▲ 599
▲ 526
▲ 602
▲ 21.92© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

3

(Million Yen)

Net Sales

56,174
2,872
448
11,13260,4083,202
694
12,314

Total

61,873
57,465
2,627
399
11,2994,819
1,027
12,83655,493
4,103
465
10,417

YoY ：▲680
QoQ： ▲6,380Others
YoY ： ＋1,230QoQ :▲716

Software
YoY ：
QoQ：

+17▲561

Information equipment

41,721

44,197

43,13943,19040,507

YoY ：
QoQ :

▲714▲2,418

Electronic component
YoY ： ▲1,214
QoQ： ▲2,683

2018/3
1Q Results

2018/3
2Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2018/3
3Q Results

2018/3
4Q Results

2019/3
1Q Results4

(Million Yen)

Segment Income
2,305
2,088

46112

1520358

2,219

Total

37

YoY ：
QoQ :

543757

Others1,5067280

1,48980
317543
1,539

YoY ：
QoQ :

YoY ：
QoQ :1,353802

YoY :

▲468

QoQ：+268

SoftwareYoY :QoQ :▲18▲99▲ 19▲ 20
2018/3
3Q Results▲41▲225

Electronic component

1,616

2018/3
2Q Results▲71＋8Information equipment

1,071

2018/3
1Q Results▲598▲162018/3
4Q Results

2019/3
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(Million Yen)

Net sales/Segment income

YoY/Net sales/Segment income

 Net sales
 Segment Income

43,19044000-1,214 million Yen 2.9％down

4000-468 million Yen 30.4％down

3500

41,72142000

40,507
3000

EMS business for automotive and airconditioning devices maintained a steadyperformance.

40000

2500

38000

2000

Components sales business remained sluggish,notably for home electric appliances from theeffect of production adjustments at major
customers.

36000

1,539
1500

34000

QoQ

1,071
802

32000

1000

 Net sales
 Segment Income

30000-2,683 million Yen 6.2％down+268 million Yen 33.5％up

500

2018/3
1Q Results

2018/3
4Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2019/3
1Q Results6

(Million Yen)

Net sales/Segment income

12,83613000

YoY
 Net sales/Net sales/Segment income

 Segment Income-714 million Yen 6.4％down-41 million Yen 11.5％down

1400

1200

12000

11,132

Sales of housing-related home electric appliancesand commercial facilities-related LED installation
business showed robust growth.

1000

Sales of PCs and PC peripherals were slow.

11000

10,417

800

10000

543

9000

358600

QoQ317400

 Net sales
 Segment Income

8000-2,418 million Yen 18.8％down-225 million Yen 41.5％down

200

2018/3
1Q Results

2018/3
4Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

2019/3
1Q Results7

(Million Yen)

Net sales

YoY Japan

61,87356,17455,493

 North America＋75 million Yen 4.1％up

 Europe＋198 million Yen 22.0％up

 East Asia

＋645 million Yen 3.5％up

Japan38,381

Japan: Gaming machine for the amusement
industry and golf equipment sales weresluggish

33,42935,030-1,600 million Yen 4.6％down

Overseas:Every region showed solid growth.

1,852
901
18,3892018/3
1Q Results

North America

1,613
1,048

1,928
1,100Europe

20,83019,035

East Asia

2018/3
4Q Results

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

QoQ Japan-4,951 million Yen 12.9％down

 North America＋314 million Yen 19.5％up

 Europe＋51 million Yen

 East Asia

-1,795 million Yen

4.9％up
8.6％down
8

FY2018/3
1Q Results（Yen）

FY2019/3
1Q Results（Yen）（Reference）
Effect of 1% change（Million Yen）
Net sales

Ordinary income

USD

111.09109.07

687

THB

3.24

3.42

54

3RMB

16.57

17.05

33

2

HKD

14.27

13.90

431

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

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(Million Yen)

Total assets
125,751

128,755

Total liabilities and net assets

130,479
125,751

Current assets

103,684

104,069

59,819128,755

130,479

58,12359,477

70,631

71,001

Total liabilities

104,981

65,932
Non-current assets

22,067

24,68525,4982017/3

2018/3

2018/6

Total net assets

2017/3

2018/3

2018/6

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.

(Million Yen)

Inventories

Accounts receivable/Accounts payable
50.0

83.6

43.0

（Day）

30,000

36.0

34.9

（Day）

80,000

40.0

77.1

76.0

80.0

Inventory turnover

A/R turnover

70,00070.0

71.2

25,00030.0
60,00069.9

65.3

A/P turnover

60.0

20,00050,00020.0

50.0

Notes and A/R

40,00015,00040.0

10.0

30,00010,00019,325

19,45530.0

20,5900.0

52,009Inventories
20,00037,55349,841
36,392

Notes and A/P

46,36137,448

20.0

5,000
-10.0

10,00010.0

0-20.02017/3

2018/3

2018/6© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

00.0

2017/3

2018/3

2018/611

Electroniccomponents• Sale of semiconductors (general-purpose products and customizedproducts)• Sale of electronic components (transformers, condensers, cables,connectors, and switches, etc.), LED, and storage devices• Development, manufacture and sales related to EMS (airconditioning, office equipment, automotive devices, industrial
equipment, amusement machines, communication equipment,
medical equipment, etc.)

Informationequipment• Sales of PCs and PC peripherals, home electric appliances/lighting
fixtures, photograph and imaging products, original brand products,
etc.)

Software• Production of computer graphics, planning and development ofamusement products, and other activities

Others• Repair and supports for electronics equipment, manufacture andsales of amusement equipment, and wholesale/retail of sports goods,etc.)© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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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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