Information Meeting for Fiscal Year
ended March 2011

May 13, 2010
KAGA ELECTRONICS CO., LTD. (TSE 1st section, 8154)
3-12-8 Sotokannda, Chiyoda-ku, Tokyo 101-8629
Tel: (03) 4455-3131 Fax: (03) 3815-6807
URL：http://www.taxan.co.jp

Financial Highlights
FY3/2011

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■ Consolidated Statement of Income(million yen)

FY3/2010
AmountPct.
239,391
Net Sales
211,153
Cost of sales
平成18年3月期
28,237Gross profit
26,655
SG&A expenses
1,582
Operating income
714
Non-operating income
1,016
Non-operating expence
1,280
Ordinary income
116
Extraordinary items
1,396
Income before income taxes
1,411
Income taxes
347
Income taxes-deferred-43
Minority interests-318
Net income

FY3/2011
AmountPct.

100.0% 237,951
88.2% 207,298
平成19年3月期（予）11.8%30,653
11.1%
27,089
0.7%
3,563
0.3%
876
0.4%
701
0.5%
3,738
0.0%
-376
0.6%
3,363
0.6%
2,026
0.14%
-509
-0.02%
-7
-0.1%
1,854

100.0%
87.1%
12.9%
11.4%
1.5%
0.4%
0.3%
1.6%
-0.2%
1.4%
0.9%
-0.21%
0.00%
0.8%

ChangesAmountPct.
-1,440-0.6%-3,855
-1.8%
2,416
8.6%
434
1.6%
1,981 125.2%
162 22.7%-315 -31.0%
2,458 192.0%-492 -424.1%
1,967 140.9%
615 43.6%-856 -246.7%
36 -83.7%
2,172
-

3
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Segment information(million yen)

FY3/2010(Pre-adjustment)
Net sales

FY3/2011(Pre-adjustment)
Net sales

Pct.

Segment income

Segment income

FY3/2011(Adjusted)

Changes

Pct.

AmountNet sales

Pct.

Segment income

Pct.

Electronic
components

195,086

68.3%

218,723

74.8%

23,63712.1%

172,919

72.7%

330

25.2%

2,361

72.3%

2,031

615.5%

2,901

81.4%

Informationequipment

72,24525.3%

52,003

17.8%-20,242-28.0%

51,664

21.7%

230

17.6%

231

7.1%

1

0.4%

72

2.0%

4,734

1.7%

8,814

3.0%

4,080

86.2%

8,105

3.4%

460

35.1%

465

14.2%

5

1.1%

487

13.7%

13,6494.8%

12,980

4.4%

-669

-4.9%

12,961

5.4%

290

22.1%

207

6.3%

-83

-28.6%

230

6.5%

-

-

-

-

-

-

-7,698-285,7141,310

100.0%
100.0%

292,5213,267

100.0%
100.0%

6,807
1,957

2.4%
149.4%-128
237,951
3,563

100.0%
100.0%

Software
Other
Adjustments
Total

Summary Electronic components (Development, manufacture and sale of semiconductors, general electronic components and otherproducts, electronic manufacturing service (EMS), and other activities)
There was growth in sales of semiconductors and electronic components used in flat-panel TVs and other digital consumer electronics, PCs and otherproducts. Sales of electronic components for LED lamps in environmentally responsible products also increased. In addition, EMS orders increased,
including overseas orders in the climate control equipment sector. The result was sales of 179,919 million yen.

 Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, and other products)
Group companies worked on adding new products like SD memory cards for portable devices and increasing sales of existing products. But sales werelower because of a shift in the distribution channels of major PC manufacturers. The result was sales of 51,664 million yen.

4
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Net Sales by Product (Reference)(million yen)

FY3/2010

300,000

ChangeFY3/2011

Net sales

Pct,

Net sales

Pct.

ChangePct.

Informationequipment

64,16926.8%

47,33619.9%-16,833-26.2%

EMS

60,911

25.4%

68,897

29.0%

7,986

13.1%

Semiconductor
Generalelectronics
compornent
Others51,861

21.7%

58,588

24.6%

6,727

13.0%

29,593

12.4%

29,231

12.3%

-362

-1.2%

239,391

237,951

32,85733,89829,59329,231150,000

51,86158,588100,000

60,911

250,000

200,000

Total

32,857239,39113.7%
100.0%

33,898
237,95114.2%
100.0%

1,041-1,4403.2%(million yen)

Others

EMS
68,89750,00064,169-0.6%

Generalelectronics
compornent
Semiconductor

47,336

Informationequioment

0

FY3/2010

FY3/2011

Summary EMS sales: Increased 7,986 million yen (+13.1%)
Orders in the EMS business increased. Orders in Japan from manufacturers of amusement equipment rose along with therecovery of the Japanese economy. Overseas orders increased mainly for circuit boards used by Japanese manufacturers ofoffice equipment and climate control equipment. The result was sales of 68,897 million yen (up 7,986 million yen).

 Information equipment sales: Decreased ¥16,833 million (-26.2%)
There was a shift in some distribution channels for products handled by KAGA ELECTRONICS that are sold at large electronics
retailers and specialty stores. The result was sales of 47,336 million yen (down 16,833 million yen).

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Selling, General and Administrative Expenses(million yen)

FY3/2010
AmountPacking andfreight

Pct,

FY3/2011
AmountPct.

ChangeChange
Pct.

2,283

8.6%

2,340

8.6%

57

2.5%

Others

736
1,490

2.8%
5.6%

659
1,318

2.4%
4.9%

-77
-172

-10.5%-11.5%

Total selling
expenses

4,509

16.9%

4,317

15.9%

-192

-4.3%

Rent

700
2,332

2.6%
8.7%

787
2,102

2.9%
7.8%

87
-230

12.4%
-9.9%

Personnel
expenses

13,80651.8%

14,434

53.3%

628

4.5%

Others

5,306

19.9%

5,448

20.1%

142

2.7%

22,144

83.1%

22,771

84.1%

627

2.8%

27,089 100.0%

434

1.6%

R&D

Depreciations

Total administrative
expenses
Total SG&A
expenses

26,655 100.0%(million yen)
30,00026,65527,089Others

25,000

5,306

5,448

20,00015,000Rent
13,806

14,4340Depreciations
Others

10,0005,000

Personnel
expenses

2,332
700
1,490
736
2,283

2,102
787
1,318
659
2,340

FY3/2010

FY3/2011

R&D
Packing andfreight

Summary Administrative expenses: Personnel expenses increased 628 million yen as headcount increased by 840 (from 4,885
to 5,725).
Reasons: (1) increase of 133 because the CyberFront Group joined the KAGA Group; (2) increase of 732 at overseas EMS factories, including
178 at KAGA (Shenzhen) and 337 at KAGA Taxan (Suzhou)

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■ Consolidated Balance Sheets(million yen)

End of
FY3/2010（ASSETS）
Current assets

End of
FY3/2010

End of
FY3/2011

Change65,40866,087679

58,77956,987-1,792

Notes and accounts payable-trade

43,53540,790-2,745End ofChangeFY3/2011（LIABILITIES）
Current liabilities

113,962

114,686724

Cash and cash equivalents

96,838
11,91792,876
11,926-3,9629Notes and account receivable-trade59,21454,173-5,041

Short-term bank loans

8,935

8,505

-430

Merchandize and finished goods

14,483647

15,775
555

1,292
-92

Others

6,309

7,692

1,383

6,629

9,099

2,470

3,011
7,566

3,189
7,258

178
-308

Long-term bank loans

2,500

4,636

2,136

Others

4,129

4,463

334

（NET ASSETS）
Shareholders' equity

48,553

48,59845

Goods in progress
Raw materials and other supplies
OthersFixed assets

Long-term liabilities

017,123

21,8104,687

Paid-in capital

12,133

12,133

0

9,724
2,599

3,290
698

Capital surplus

13,912

13,9120Intangible assets

6,434
1,901

Retained earnings

24,01225,0381,026

Investments and other assets

8,786

9,485

699

Treasury stock-1,332-1,3320

Valuation and translation adjustment-1,884-2,817-933

Minority interests
Total liabilities and net assets

1,711

1,664

-47

113,962

114,686724

Property, plant and equipment

Total assets

113,962

114,686724

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■ Consolidated Cash Flows(million yen)

FY3/2010

FY3/2011

Changes

Operating activities

5,728

6,321

593

Investing activities-3,040-6,369-3,329Financials activities-2,307478

2,785

Net change in cash and cash equivalents

49

-431

-480

Increase in cash and cash equivalents

428

-1

-429

Cash and cash equivalents at beginning of year

11,368

11,797429

Cash and cash equivalents at end of year

11,797

11,796-1

Summary Operating activities: Net cash provided by operating activities was 6,321 million yen primarily due to a decrease innotes and accounts receivable-trade Investing activities: Net cash used in investing activities was 6,369 million yen primarily due to payments for thepurchase of property, plant and equipment.
 Financing activities: Net cash provided by financing activities was 478 million yen primarily due to an increase in longterm loans.

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■ Forecast for FY3/2012
Consolidated Statement of Income

Net sales(million yen)

FY3/2011(actual)

FY3/2012 (plan)

AmountAmountPct.

ChangePct.change

100.0%
平成19年3月期（予）

-

-

-

-

207,298

87.1%

-

-

-

-

30,653

12.9%

-

-

-

-

27,089

11.4%

-

-

-

-

3,563

1.5%

-

-

-

-

175

0.07%

-

-

-

-

Ordinary income

3,738

1.6%

-

-

-

-

Net income

1,854

0.9%

-

-

-

-

Cost of sales
Gross profit
SG&A expenses
Operating income
Non-operating income

237,951
平成18年3月期

Pct.

ChangeNo forecast is shown because of the difficulty at this time of determining a reasonable estimate of the impact of the electric power shortage andother effects of the Great East Japan Earthquake on the economy and consumer spending as well as the resulting effects on the performance ofthe KAGA Group. An announcement will be made promptly when a forecast has been determined.

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■ Forecast for FY3/2012
Consolidated Sales Forecast by Segment
FY3/2011(Pre-adjustment)

FY3/2012(Pre-adjustment)

Net sales

Net sales

Segment income

Pct.

Segment income(million yen)

FY3/2012(Adjustment)

Changes

Pct.

AmountNet sales

Pct.

Pct.

Segment income

Electronic
components

218,723

74.8%

-

-

-

-

-

-

2,361

72.3%

-

-

-

-

-

-

Informationequipment

52,003

17.8%

-

-

-

-

-

-

231

7.1%

-

-

-

-

-

-

8,814

3.0%

-

-

-

-

-

-

465

14.2%

-

-

-

-

-

-

12,980

4.4%

-

-

-

-

-

-

207

6.3%

-

-

-

-

-

-

292,521100.0%

-

-

-

-

-

-

3,267

100.0%

-

-

-

-

-

-

Software
Other
Total

No forecast is shown because of the difficulty at this time of determining a reasonable estimate of the impact of the electric power shortage andother effects of the Great East Japan Earthquake on the economy and consumer spending as well as the resulting effects on the performance ofthe KAGA Group. An announcement will be made promptly when a forecast has been determined.

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■ Forecast for FY3/2012
Net Sales by Product(million yen)
250,000

FY3/2011
Net sales

Pct.

FY3/2012 (E)Net sales

237,952(million yen)

Cjanges

Pct.

Change33,898

Pct.

Others200,000

Informationequipment

47,336

19.9%

-

-

-

-

EMS

68,897

29.0%

-

-

-

-

29,231
General electronic
components
150,000

58,588
Semiconductors

Semiconductors

58,588

24.6%

-

-

-

100,000

General electronic
components

29,231

12.3%

-

-

-

-

Others33,898

14.2%

-

-

-

-

Total

237,952

100.0%

-

-

-

-

EMS

68,89750,000Informationequipment
47,3360
FY3/2011

FY3/2012(E)No forecast is shown because of the difficulty at this time of determining a reasonable estimate of the impact of the electric power shortage andother effects of the Great East Japan Earthquake on the economy and consumer spending as well as the resulting effects on the performance ofthe KAGA Group. An announcement will be made promptly when a forecast has been determined.

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■ Forecast for FY3/2012
Selling, General and Administrative Expenses(million yen)

FY3/2011

Total selling expenses

Amount
2,340
659
1,318
4,317

Depreciations
Rent
Personnel expenses
Others787
2,102
14,434
5,448

Packing and freight
R&D
OthersFY3/2012(E)Pct.
Amount
8.6%
2.4%
4.9%
15.9%
2.9%
7.8%
53.3%
20.1%

-

Changes

Pct.
-

-

-

-

(million yen)
30,00025,00022,771

84.1%

-

-

-

Total SG&A expenses

27,089100.0%---

Administrat
ive Others
Personnel

5,448

Rent
20,00015,000Depreciatio
nsSelling
Others
R&D

14,43410,0005,000

Total administrative
expenses

27,0890

Packingand freight

2,102
787
1,318
659
2,340
FY3/2011

FY3/2012(E)No forecast is shown because of the difficulty at this time of determining a reasonable estimate of the impact of the electric power shortage andother effects of the Great East Japan Earthquake on the economy and consumer spending as well as the resulting effects on the performance ofthe KAGA Group. An announcement will be made promptly when a forecast has been determined.

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Topics of FY3/201113© 2011
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■ Environmental Products
Increasing needs of the environment-related products→ Raising awareness of global warming and cost advantage

Expanding of environmental products■ Back ground• Concern to the global environment → To set the reduction targets of gases bycountries• Advantage → Advantage of “low power consumption”, “durability”• Electricity concern by the Great East Japan Earthquake

Great East Japan Earthquake (March 11, 2011)

Promoting environment businesses in all KAGA ELECTRONICS Grope
centered by Grope Business Strategy Office
1. LED Lighting• “Lower power consumption” and “Longer life” → Convenience stores / Food stores

2. Solar power generation system• Reducing energy costs by home generation of electricity → From business use tohome use

3. Energy-saving system• Automatic control of “lighting” and “air conditioning” → Amusement facilities

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■ Environmental sector■ Focus on LED Lighting
Revised Energy conservation low: Companies have to check the amount of energy consumption

Manufacturers• LED devices

KAGA Group
60companies,18countries

Sale

Lighting equipment
makersPurchase• LED drives

DeliverySale• Power supplies

KAGA TECHNO SERVICE
Installment / fitting

Purchase LED
lighting equipment

Customers(offices, factories,
convenience stores)

Provide “One-Stop-Service” for LEDs by KAGA group synergies
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■ Environmental sector
電力
情報

Products for smart houses and the smart grid
スマートハウスとスマートグリッド
Smart House

Voltageboosting unit
(optional)

Household fuel cell
Not available

Large-scale renewable power sources

Solar panels

Connection unit

Available

Power conditioning
systemDistribution
panel

Eco-cute
heat pump

Smart Building

Householdstorage battery

Hub storage
batteries(NAS
batteries)Power
conditioner

Electricity
purchasing
meter

HEMS
monitorElectricity
selling meter

Smart Grid
Centralized
power
supplies

PHEV/EVElectric utilities (surveillance and control of electricity supply)

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■ Reorganization of Group Companies
Requirements for success amid rapid changes in the electronics industry
 Compete and win on a global scale Manage operations with speed and efficiency
 Use business units to operate with speed and capture synergies

1. Integration of KAGA TECH and OTSUKA ELECTRIC• Integration of electronic components trading business = Lower administrative expenses

2. KAGA DEVICES (H.K.) became a subsidiary of KAGA DEVICES• Reinforced position as a sales agent of Mitsubishi Electric and Renesas Electronics• Integrated KAGA DEVICES (H.K.) and NUMATA (H.K.) to strengthen operations in China

3. Integrated KAGA (H.K.) ELECTRONICS and HANZAWA (H.K.)• KAGA (H.K.) took over the profitable businesses of HANZAWA (H.K.), which had been
performing poorly

4. CyberFront absorbed DS Press to strengthen business operations
and cut costs
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■ Group Companies
 KAGA DEVICES to establish subsidiary in India
Name:

KAGA DEVICES INDIA PVT LTD

Capital:15 million rupees (about ¥30 million)

Establishment:

August 2011 (planned)

Shareholders:

KAGA DEVICES 90%, KAGA ELECTRONICS 10%

CEO:

Shigeru Matsushita (President, KAGA DEVICES)

Location:

Bangalore, India (planned)

Activities:

Sale of products of Mitsubishi Electric and other companies

Employees:

3

Sales of power semiconductors used in inverters for home
appliances that use large motors (air conditioners, refrigerators, etc.)

For future market development activities, the subsidiary plans tosell microprocessors, a key component in a broad range of
products. Plans also include selling inverters, which Indian homeelectronics manufacturers cannot make, along with appliancedesigns incorporating inverters as a unified package.

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■ Establish Medium-term Management Plan

MEDIUM-TERM
MANAGEMENT PLAN
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■ Establish Medium-term Management Plan
The KAGA ELECTRONIC GROUP’s Operating Environment
Changes in the economic
environment•Impact of the Great East Japan
Earthquake•Sluggish global economy andpreference of consumers for lower-priced
products•Growth of markets in emerging
countries

Changes in the businessenvironment•Consolidation and closing of parts
manufacturers and trading company
competitors•Decline of finished productmanufacturing in Japan•The need to supply environmentally
responsible products

Changes in the
management environment•More effective corporate governance•More powerful risk management•Emphasis on cash flows

Changes in thetechnology environment•Rising speed of interfaces•Diversification of networks•Higher quality of products made atoverseas EMS operations

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■ Establish Medium-term Management Plan

Core Strategy■ The objective is to draw on the collective strengths of the KAGA ELECTRONICS Group to achieve more growth
while adhering to the management philosophy of “Everything we do, we do for our customers.” Activities will bebased on the policy of “remaining a company that contributes to the happiness of all stakeholders, including
shareholders, customers and employees, and fulfills its responsibilities to society.”

Create new businesses
Environmentally responsible
products
One-stop services
Infrastructure
Content

Adapt to structuralchanges in the operating
environment
Start operations in emerging
countries
Collaborate with overseas
partners

The collective strength of the 56 membersof the KAGA ELECTRONICS GroupThe FYT (Flexibility, Young, Try) Spirit
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■ Establish Medium-term Management Plan

Create New Businesses
RouterRouter

LED lamps
Energy conservation

Create new
businesses

The “IP-STB” service forhotelsEnvironmentally responsible
products
One-stop services
Infrastructure
Content

Content SD
Proposals for new applications
for communication modules

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■ Establish Medium-term Management Plan
Adapt to Structural Changes in the Operating Environment

Terrestrial digital broadcasts, Infrastructure,
Automobiles, Energy conservation, IT, Mobile
communications

Adapt to structural changes
in the operating
environment• Respond quickly to growth of overseas operations of Japanese automakers

Start operations in emerging
countries• Effectively use factories in Hong Kong, Thailand, Shanghai, Czech Republicand Malaysia and provide uniform services worldwide

Collaborate with overseas
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■ Establish Medium-term Management Plan
The Start of the Business Unit System
Components BUEntertainment BU

The Electronics Business Dept. and otherelements of the core components business(Strategies)
Deepen ties with large customers
Target the market for environmental products
Meet needs for overseas production anddevelopment
Start operations in emerging countries

Serving the amusement industry primarily with theGaming Products Dept.
(Strategies)
Reinforce planning/development capabilities for
proposal software for the constant creation of new
products and increase sales of KAGA VDP

Manufacturing BU
Manufacturing business that uses our manufacturing
capabilities(Strategies)
Position as the EDMS section for the KAGA Group
Effectively utilize KAGA Group factories for everythingfrom product design and development to production

KAGA
ELECTRONICSGROUP
The Pursuit of
Synergy

Information BU
The information equipment business that consists
primarily of KAGA HIGHTECH and othercompanies(Strategies)
Further enlarge distribution channels
Conduct a comprehensive network solutions
business

Promotion BU
A variety of businesses associated withelectronics(Strategies)
Offer a larger selection of line cards
Upgrade the technical support framework
Take on the challenge of entering new fields

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CO.,LTDAll Rights
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©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Business Units (1) Components BU
 Operates the electronic components/semiconductor/modulebusiness that is the core of the electronics business• Leverages KAGA’s advantage as an organization with no affiliations with othercompanies and the group’s powerful global network(KAGA ELECTRONICS Electronics Sales Division., Special
Sales Division., International Sales&Marketing Division)

KAGA DEVICES CO., LTD.

 Business strategies
1) Add more products for large customers and increase the number of vendors
2) Expand relationships with companies based in other countries3) Meet the need of Japanese companies for overseas design and production support4) Start operations in emerging countries (India, Brazil and others)5) Further deepen collaboration among group companies as globalization advances
6) Strengthen efficient collaboration with the Sales Promotion Dept. (including support for FAE andcreating modules)
7) Increase sales of LED products (LED elements, power sources) in the field of environmentally
responsible products8) Start Internet sales

KAGA
KAGA ELECTRONICS(USA)INC.
ELECTRONICS(USA)INC.
KAGA
KAGA (EUROPE)(EUROPE) ELECTRONICS
ELECTRONICS LTD.
LTD.

KAGA ELECTRONICS GROUP

More than 2,000
suppliers in Japan

Customers

More than 60 companies in Japan and other countries

Parts selection
Selection of parts to satisfy customers’ needs
Procure the best parts

Japanese vendors

KAGA
KAGA (DALIAN)(DALIAN) ELECTRONICS
ELECTRONICS CO.,CO., LTD.
LTD.

Consultation

KAGA
KAGA (SHANGHAI)(SHANGHAI) ELECTRONICS
ELECTRONICS CO.,CO., LTD.
LTD.

Delivery
Procure the best parts from around the world

Collect the latest
information

KAGA
KAGA DEVICE(H.K.)
DEVICE(H.K.) LTD.
LTD.

Propose alternative parts

The latest information

KAGA
KAGA (KOREA)ELECTRONICS(KOREA)ELECTRONICS CO.,LTD.
CO.,LTD.

Western vendors

Customers

KAGA
KAGA (TAIWAN)ELECTRONICS(TAIWAN)ELECTRONICS CO.,LTD.
CO.,LTD.

Asian vendors
OEM manufacturers

KAGA(SINGAPORE)ELECTRONICS
KAGA(SINGAPORE)ELECTRONICS PTE
PTE LTD.
LTD.

Production
requestConsultation
Specifications, development and design ofcustomized parts

Delivery

KAGA
KAGA ELECTRONICS
ELECTRONICS (THAILAND)(THAILAND) CO.,LTD.
CO.,LTD.

Delivery25© 2011
CO.,LTDAll Rights
Reserved.
©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Business Units (2) Manufacturing BU (KAGA ELECTRONICS EMS Business Division)
 EDMS that matches the requirements of each customer• Total support including production of many types of items in small lots and development,
design, production and quality control for semi-finished and finished products

KAGA COMPONENTS CO., LTD.

 Supply of many types of products by using experience and support systems
as an EDMS maker• Manufacture of products with outstanding performance and quality and a low cost

 Business strategies

DONGGUAN
DONGGUANPOWERTEKPOWERTEKELECTRONICS
ELECTRONICS
CO.,CO.,LTD.
LTD.
EDMSEDMS businessbusinessin
inDongguan
Dongguanarea
areaofof China
China1) Same level of performance at KAGA factories and subcontractors = Supply exactly the same products
anywhere2) Increase purchasing power = Implement centralized purchasing strategy
3) Production transfer businesses = Strengthen ties within the KAGA Group4) Capitalize on business opportunities regardless of the location
5) Enter new market sectors like LED lamps, energy-conserving equipment for houses, electric power meters,
digital display devices and other products
6) Establish a manufacturing framework that can immediately adapt to meet customers’ diversifying needs
Procurement of materials

Total support for manufacturing

Distribution and delivery

More than 2,000
suppliers in Japan

More than 60 companies in Japan and other countries

KAGA ELECTRONICS GROUP

Collect the latest
information
Parts selection

Japanese vendors
Western vendors
Asian vendors

The latest information

Proposealternative parts

Parts selection
Selection of parts to satisfy
customers’ needs
Parts selection

Request for
production

Designing
Overseas KAGA
factories

Delivery of partsand materials

Development/Cooperation

Overseassubcontractor
factories
Production

Delivery

KAGA
KAGA COMPONENTS(MALAYSIA)COMPONENTS(MALAYSIA)
SDN.BHD.
SDN.BHD.
EDMSEDMS businessbusinessin
inMalaysia
Malaysia

KAGA
KAGA (EUROPE)(EUROPE) ELECTRONICS
ELECTRONICS LTD.
LTD.

Sales
Sales ofof semiconductors
semiconductors andand electronic
electronic components,
components,
EDMS
EDMS businessbusiness

KAGA
KAGA (SHANGHAI)(SHANGHAI) ELECTRONICS
ELECTRONICS CO.,CO., LTD.
LTD.
EDMSEDMS businessbusinessin
ineastern
easternChina
China

Customers

KAGA
KAGA ELECTRONICS
ELECTRONICS (THAILAND)(THAILAND) CO.,LTD.
CO.,LTD.

EDMS
EDMS business,business,sales
sales ofof products
productsin
inThailand,
Thailand, export
export ofofsemiconductors
semiconductors andandelectronic
electronic components
componentsmade
madeinin
ThailandThailand

KAGA(H.K.)ELECTRONICS
KAGA(H.K.)ELECTRONICSLTD.
LTD.
EDMS
EDMS businessbusinessininsouthernsouthernChina
China

KD
KD TECTEC S.R.O
S.R.O

EDMS
EDMS businessbusiness forforJapaneseJapanesemanufacturers
manufacturers ininEurope
Europe26© 2011
CO.,LTDAll Rights
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©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Business Units (3) Entertainment BU(KAGA ELECTRONICS Specific Industry Sales Division)

 Use many years of experience in the amusement/game products industry togrow in the entertainment sector• Specialized teams provide services for every step from technology development tomanufacturing Business strategies
1) Goal is a 7% to 8% share of the amusement/game products industry2) Develop competitive products by identifying market trends
3) Create an even more efficient and powerful production capability that includes planning,production and program development
4) Increase sales of internally-developed VDP with the primary focus on the amusement
market5) Increase sales outside Japan

Amusement devices

SportsContent production

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CO.,LTDAll Rights
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©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Business Units (4) Information BU
 Supply to large electronics retailers PCs, peripherals and otherproducts from around the world.
••••

Extensive distribution channels = Large retailers, photography shops, others
Use network solutions to offer one-stop services
Handle distribution of content, too
Services extending from sales of products to large retailers to the creation of
networks, electrical construction work and follow-up maintenance Business strategies
1) Develop markets by constantly locating new products and supplying original products forthe large-retailer channel
2) Increase sales of security products like surveillance cameras for public-sector clients
3) Full-scale launch of a content business
4) Expand operations associated with video-on-demand5) Provide total coordination in the education market
6) Network one-stop service = Equipment sales, network construction and wiring installation
7) Build a new business model using call center and maintenance functions
IT manufacturers

KAGA ELECTRONICS GROUP
More than 60 companies in Japan and other countries

Development

Purchasemanufacturing
licenseSales support by extensive
distribution channels
Sales agent for PCs etc.
Latest information
High value added products e.g.
peripherals for PC

Delivery

Mass electronics retailers
Marketingphoto-specialty
stores

Proposal/Delivery
Order for original
products

convenience stores
Original products

Corporations

OEM manufacturers
Net work solutions
One-stop service from networks
installation to electrical construction

Consulting

Public offices

Schools

28© 2011
CO.,LTDAll Rights
Reserved.
©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Business Units (5) Promotional BU(KAGA ELECTRONICS, Engineering Department, Sales
Promotion Division, Group Business Strategy office) Handles every step from finding to launching new products

Engineering
Engineering Department
Department• Ideas for new businesses from many perspectives, extending from locating new vendors tocreating solutions such as alliances with suppliers

Oversees
Oversees technology-related
technology-related activities
activities forfor thetheentiregroup
andprovidesefficienttechnology
entire group and provides efficient technology
supportsupport encompassing
encompassing designs,
designs, development,
development,
mass
mass production
production andand quality
quality control
control Technical and sales support for sales units• Assistance to meet customers’ needs as much as possible by serving as a specialized FEA
for each vendor• Collaboration with external companies to provide planning, design and development
assistance when required

Fluorescent tubetype LED lamps

Storage batteries

Sales
Sales Promotion
Promotion Division
Division
Sales
Sales support
support andand FAE
FAE support
support forfor individual
individual
vendors
vendors to
to facilitate
facilitate horizontal
horizontal expansion
expansion ofof thethe
KAGA
KAGA GroupGroup

Solar panels

ESMT
Group
Group BusinessBusiness Strategy
Strategy office
officeDevelopment
Development ofof new
new businesses
businesses fromfrom thetheperspective
perspective ofof thethe entire
entire KAGAKAGA Group
Group

29
© 2011
CO.,LTDAll Rights
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©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

■ Establish Medium-term Management Plan
Central themes of Medium-term Management Plan
Create a groupmanagement
structure that can
improve efficiency
Conduct activities
that help resolve
environmental
problems

Revitalize operationsof poorly performing
subsidiaries

Expand overseas
operations andstrengthen overseas
network
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2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.

30

■ Establish Medium-term Management Plan

Financial Goals
Medium-term Management Plan (consolidated)(million yen)

FY3/2011 (Plan) FY3/2011 (Actual)

FY3/2013 (Plan)

225,000

237,951

270,000

Operating income

1,700

3,563

5,500

Ordinary income

2,100

3,738

5,000

Net income

1,300

1,854

3,000

Net sales

3000
2500
2000
1500
1000
500
0

Net sales
income (100 million yen)(100 million yen)

Operating income/Ordinary

60
50

Component

40Entertainment

30

Information

20

Manufacturing

10

Promotion0

Operating income
Ordinary income

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2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
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31

KAGA ELECTRONICS CO.,LTD.
3-12-8 Sotokannda,Chiyoda-ku,Tokyo 101-8629

Contact:Public Relations Department
TEL:03-4455-3131
FAX:03-3254-7133
E-mail：webmaster@taxan.co.jp

http://www.taxan.co.jp
For more information,please contact the public relations department.

32© 2011
CO.,LTDAll Rights
Reserved.
©
2010 KAGAKAGAELECTRONICS
ELECTRONICS
CO.,LTDAll Rights
Reserved.