November 4, 2021

Summary of Consolidated Financial Results
for the First Half Ended September 30, 2021 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:
URL:
Representative
Title:Name:

KAGA ELECTRONICS CO., LTD.
8154
Tokyo Stock Exchange, First Section
https://www.taxan.co.jp/
President & COO
Ryoichi Kado
Managing Director,
Contact Person
Title:
Head of Administration Headquarters
Name:
Eiji Kawamura
Phone:+81-(0)3-5657-0111
Date of filing of quarterly securities report (tentative):
November 12, 2021
Date of commencement of dividend payment (tentative): December 3, 2021
Quarterly earnings supplementary explanatory documents: Yes
Quarterly earnings presentation:
Yes (For institutional investors and analysts)(Yen in millions, rounded down)
1. Financial results for the first half of the fiscal year ending March 2021 (April 1, 2021 –September 30, 2021)(1) Result of operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)
Profit attributable
Operating income Ordinary income
to owners ofparentNet sales
Million yen%

First half ended September 2021

223,009First half ended September 2020

188,859 (18.1)

Million yen

18.1

%

8,300

Million yen

87.2

4,434 (15.4)

Note: Comprehensive income: First half of FY3/2022:6,595 million yen [(40.1%)]

%

8,452

Million yen

%

94.8

5,624 (47.8)

4,338 (21.8)

10,772 207.5

First half of FY3/2021:11,011 million yen [351.9%]

Earnings per
share(diluted)

Earnings per
share
Yen

Yen

First half ended September 2021

207.39－First half ended September 2020

392.30－Note:The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. was applied fromthe first quarter of the current fiscal year.

(2) Financial Position (Consolidated)
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2021

233,461

96,618

39.6

As of March 31, 2021

237,004

95,062

38.4

Reference: Shareholdersʼ equity︓As of September 30, 2021: 92,379 million yen
As of March 31, 2021: 90,967million yen
Note:The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. was applied
from the first quarter of the current fiscal year.

2. Dividends
Dividend per share

1Q

2Q

3Q

Year-end

Full year

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 2021

－

30.00

－

50.00

80.00

Fiscal year ending March 2022

－

45.00
－

45.00

90.00

Fiscal year ending March 2022 (Forecast)Notes: Change in the dividend forecast from the latest announcement: Yes
Breakdown of year-end dividend for FY3/2021: Ordinary dividend: 30.00 yen; Extraordinary dividend: 20.00 yen
Breakdown of interim dividend for FY3/2022: Ordinary dividend 40.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/2022（forecast）: Ordinary dividend: 40.00 yen; Extraordinary dividend: 5.00 yen
With respect to the revision of dividend forecast, please refer to “Notice regarding revision to full-year earnings anddividend forecasts, and distribution of dividends from surplus” announced today (November 4, 2021).

3. Forecast for the fiscal year ending March 2022 (Consolidated, April 1, 2021 – March 31, 2022)

Net sales
Full year

Operating income(Percentage figures represent year on year changes)
Profit attributable Earnings per
Ordinary income
to owners of parent
shareMillion yen%

Million yen%

Million yen%

470,000

11.3

15,00030.8

14,50029.0Million yen%

Yen

9,000 (21.1)

336.84

Note: Change in the forecast from the latest announcement: Yes
With respect to the revision of consolidated performance forecast, please refer to “Notice regarding revision to fullyear earnings and dividend forecasts, and distribution of dividends from surplus” announced today (November 4,2021).

* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial
statements: None
(3) 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 “２．Quarterly Consolidated Financial Statements and Major
Notes (4) Notes to quarterly consolidated financial statements (Changes in accounting
policies)” on page 13.
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of September 30, 2021:

28,702,118

As of March 31, 2021:

28,702,118

2,461,879

As of March 31, 2021:

1,229,877(b) Treasury shares
As of September 30, 2021:(c) Average number of shares (quarterly consolidated during the period)
Period ended September 30, 2021:

27,120,191

Period ended September 30, 2020:

27,458,682* The quarterly audit procedures by a certified public accountant or auditing firm are not applicable to thisQuarterly 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 these statements for a number of reasons. For
conditions as assumption for earnings forecast and cautionary statement regarding use of theforecast, please see “1. Results of Operations, (3) Qualitative information on consolidated earnings
forecast”.
(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, November
25, 2021. Supplementary materials for the earnings briefing will be posted on our website today(Thursday,November 4th). We plan to post a video of the earnings briefing, together with thebriefing materials used on that day, on our website on November 25th.
（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) Qualitative information on consolidated earnings forecast ..............................................

5

2. Quarterly Consolidated Financial Statements and Major Notes ...............................................

7(1) Quarterly consolidated balance sheet ...........................................................................

7(2) Quarterly consolidated statements of income and comprehensive income ........................

9

For the First half (April 1, 2021 - September 30, 2021) ...............................................

9(3) Consolidated statement of cash flows .......................................................................... 11(4) Notes to quarterly consolidated financial statements ..................................................... 13(Notes to going concern assumptions) ....................................................................... 13(Significant change in shareholdersʼ equity) ............................................................... 13(Changes in accounting policies） ............................................................................. 13(Additional information） ......................................................................................... 13(Segment information) ............................................................................................ 14－ 1 －1. Results of Operations(1) Overview of consolidated business performance
During the first half of the consolidated fiscal period under review, there remained no indicationof when the COVID-19 pandemic would subside. However, economic conditions gradually recovered
owing to the progress of vaccinations and the easing of restrictions on movement, and there weresigns of a recovery in capital investment and manufacturing activity in the manufacturing industry
overall.
In the electronics industry to which the Group belongs, the tight supply of semiconductors andelectronic parts broadly impacted the manufacturing plans of companies, from automotive products
to air-conditioning equipment, communications, and industrial-use products. However, overall
demand remained robust on the back of a recovery from the slump caused by the COVID-19 crisis.
As a result of these factors, net sales in the first half of the consolidated fiscal year rose 18.1%
year on year to 223,009 million yen. Throughout the first half, this growth continued to be driven
by the electronic components business, which is the Groupʼs core business.
In terms of income, in addition to an increase in gross profit following higher sales and an
improvement in the gross profit rate, the Company promoted the use of telework and online
meetings, among other efforts to reduce and scale back expenses. As a result, operating income
rose 87.2% year on year to 8,300 million yen and ordinary income climbed 94.8% to 8,452 million
yen, which were record highs for a first half. Profit attributable to owners of parent was down
47.8% year on year to 5,624 million yen due to the absence of the 7,963 million yen “gain on
bargain purchase” posted in the previous fiscal year as extraordinary income following a corporate
acquisition.
The fiscal year ending in March 2022 will be the last year of the Groupʼs three-year management
plan, Medium-Term Management Plan 2021 (2019–2021), which began in April 2019. In addition toa recovery in demand in the electronic components business, steady progress in PMI at acquiredcompanies such as KAGA FEI Co., Ltd. and EXCEL Co., Ltd. has contributed to profit, and progress
toward achieving profit targets has exceeded the plan.
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020),
etc. was applied from the first quarter of the current fiscal year. This lowered net sales in the firsthalf by 2,358million yen. For details, refer to “2. Quarterly Consolidated Financial Statements andMajor Notes (4) Notes to quarterly consolidated financial statements (Changes to accounting
policies).”
FY 2021/3 2Q(April 1, 2020 –FY 2022/3 2Q
YoY(April 1, 2021 –September 30, 2020)

September 30, 2021)（Million yen）

（Million yen）

（Million yen）

Net sales

188,859

223,009

34,14918.1％

Gross profit

21,641

27,133

5,491

25.4％

（Margin）

11.5％

12.2％

0.7pt

－

SG&A

17,206

18,832

1,625

9.4％

Operating income

4,434

8,300

3,866

87.2％

Ordinary income

4,338

8,452

4,113

94.8％

Profit before income taxes

12,126

8,229(3,897)(32.1％)

10,772

5,624(5,147)(47.8％)

106.92 yen

109.80 yen

2.88 yen－

Profit attributable to ownersof parent
Exchange Rate
(Average rate during the year)

USD

－ 2 －

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors, generalelectronic components and other products, the electronics manufacturing service (EMS), andother activities)
In this business, results were strong and net sales increased in the components sales business,in response to robust demand from a wide range of industries, as the Company leveraged its
procurement power as an independent trading company amid the persistently tight supply ofsemiconductors and electronic parts. Net sales also increased in the EMS business, with
continuing strong demand from the automotive, industrial equipment, and medical sectors.
Lockdowns to combat the spread of COVID-19 and production line stoppages due to shortages inelectronic parts occurred at some plants, but the Company endeavored to mitigate the impact
through thorough process control.
As a result, net sales increased by 23.9% year on year to 194,406 million yen, and segment
income increased by 131.1% year on year to 7,123 million yen.
Since the fiscal year of the overseas subsidiaries of EXCEL, which became consolidated in April
2020, ends in December, earnings for January–March 2020, prior to consolidation, were notposted as quarterly data for the previous fiscal year, but the January–March 2021 results wereposted for this consolidated fiscal year
(Note ) Electronics Manufacturing Service: Provision of product development and manufacturing services onan outsourcing basis.

(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph andimaging products, original brand products, and other products)
In this business, sales of PCs to corporations were subdued, with the abatement of demandassociated with the shift to remote work, and the impact of product supply difficulties due to ashortage of electronic parts. However, sales of PCs to educational institutions and PC peripheralssuch as security software remained strong. The impact of delays in work, resulting from the latedelivery of products and materials due to parts shortages, was also felt in the equipment
installation business for LED lighting, network devices, etc.
As a result, net sales decreased by 19.3% year on year to 18,713 million yen, and segment
income decreased by 21.6% year on year to 910 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products,
and other activities)
In this business, the Company focused on capturing CG development orders for smartphonegames in the context of stay-at-home demand, but development costs and other expenses
increased.
As a result, net sales decreased by 2.9% year on year to 1,237 million yen, and segment lossof 109 million yen was recorded (86 million yen of segment income in the same period of theprevious fiscal year).
(d) Others (Repair and support for electronics equipment, and sales of amusement equipment andsports goods, and others)
In this business, the recycling business for PC, PC peripheral, and other equipment was strong,
as demand for reused and recycled products increased amid continuing supply difficulties forfinished products due to the shortage in electronic parts.
As a result, net sales increased by 15.3% year on year to 8,651 million yen, and segment
income increased by 787.3% year on year to 320 million yen.

－ 3 －Financial Results by Business Segment
FY 2021/3 2Q

Electronic

Net sales

FY 2022/3 2Q
YoY(April 1, 2020 –(April 1, 2021 –September 30, 2020)

September 30, 2021)（Million yen）

（Million yen）

（Million yen）

156,887

194,406

37,519

23.9％

7,123

4,040

131.1％

components

Segment income

3,083

Information

Net sales

23,192

18,713(4,478)(19.3％)

equipment

Segment income

1,160

910

(250)

(21.6％)

Software

Net sales

1,274

1,237

(37)

(2.9％)

86

(109)

(195)

－

7,505

8,651

1,146

15.3％

36

320

284

787.3％

188,859

223,009

34,149

18.1％

4,434

8,300

3,866

87.2％

Segment income
Others

Net sales
Segment income

Total

Net sales
Segment income

Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total.

(2) Overview of financial condition(a) Assets, liabilities and net assets
Total assets as of September 30, 2021, decreased by 3,543 million yen from March 31, 2021,
to 233,461 million yen.
Current assets decreased by 3,933 million yen compared with the end of the previous fiscal
year, to 196,245 million yen. This was primarily due to a 12,637 million yen decrease in notes
and accounts receivable – trade and a 5,445 million yen decrease in cash and deposits, despite
an increase of 8,448 million yen in merchandise and finished goods.
Non-current assets increased by 390 million yen from March 31, 2021, to 37,215 million yen.
This is primarily due to a 506 million yen increase in software due to the development of new ERP
systems.
Liabilities decreased by 5,099 million yen from March 31, 2021, to 136,843 million yen. This is
primarily due to a decrease of 9,367 million yen in notes and accounts payable – trade.
Net assets increased by 1,555 million yen from March 31, 2021, to 96,618 million yen. This is
primarily due to an increase of 583 million yen in total shareholdersʼ equity and 715 million yen in
the foreign currency translation adjustment resulting from the recording of profit attributable toowners of parent, the payment of dividends, and share repurchases.
(b) Cash flows
Cash and cash equivalents as of September 30, 2021, decreased by 4,989 million yen fromMarch 31, 2021, to 39,343 million yen.
(Operating activities)
Net cash used in operating activities was 2,013 million yen (7,017 million yen used in the same
period of the previous fiscal year), mainly due to income taxes paid.
(Investing activities)
Net cash used in investing activities was 3,699 million yen (2,996 million yen used in the same
period of the previous fiscal year), mainly due to the purchase of property, plant, and equipment
and the purchase of intangible assets.
(Financing activities)
Net cash provided by financing activities was 529 million yen (855 million yen used in the same
period of the previous fiscal year), mainly due to an increase in short-term loans payable, despite
share repurchases and the payment of dividends.

－ 4 －(3) Qualitative information on consolidated earnings forecast
In light of progress with earnings in the first half of the current fiscal year and the outlook for the
future, we have revised our consolidated earnings forecasts for the fiscal year ending on March 31,
2022 and dividend forecast as reported in the “Notice regarding revision to full-year earnings anddividend forecasts, and distribution of dividends from surplus” released today. The details areprovided below.
1.Consolidated earnings forecasts for the fiscal year ended March 31,2022（from April 1,2021 to March 31,2022）
Net sales

OperatingincomeOrdinary
IncomeProfitAttributable Net income
to owners of Per share
ParentMillion yen

Million yen

Million yen

Million yen(yen)Previous forecast（Ａ）

470,000

13,00012,0008,000

291.20

Revised forecast（Ｂ）

470,000

15,00014,5009,000

336.84

Differense(Ｂ)－（Ａ)

－

2,000

2,500

1,000

－

Percent change（％）

－

15.4

20.8

12.5

－

422,365

11,467

11,241

11,399415.07(Reference)
Results for the fiscal year
Ended March 31,2021＜Reasons for consolidated earnings forecasts＞
In the first half of the fiscal year ending March 31, 2022, sales recovered notably in the Electronic
Components business, led by automotive equipment, medical products, and industrial equipment.
Meanwhile, income exceeded the initial plan as a result of an increase in gross profit that reflected
higher sales and improved gross profit margin, combined with efforts to curb and reduce expenses
through facilitation of remote working, online conferencing, and other tools.
Regarding the full-year earnings forecast, the previous forecast for net sales is maintained, inlight of the tight supply/demand balance of semiconductors and electronic components. On theother hand, the operating income forecast has been revised upward to 15 billion yen, up 2 billion
yen from the previous forecast, which factors in the upside given the steady earnings progress inthe first half and taking into account a certain degree of downside risk. In line with this revision,
forecasts for ordinary income and profit attributable to owners of the parent have also been revised
upward, to 14.5 billion yen and 9 billion yen, respectively.
2.Revision of dividend forecast
Annual dividends

Previous forecast(Announced on May 13, 2021)

End of 1st half

Year-end

Total

40.00

40.00

80.00

45.00 yen

90.00 yen

Revised forecast(Ordinary dividend 40 yen) (Ordinary dividend 80 yen)
(Extraordinary dividend 5 yen) (Extraordinary dividend 10 yen)

Dividends for the current
fiscal year
Dividends for the previous
fiscal year
(Fiscal year ended March 31, 2021）

45.00 yen(Ordinary dividend 40 yen)
(Extraordinary dividend 5 yen)

30.00 yen(Ordinary dividend 30 yen)

－ 5 －50.00 yen

80.00 yen(Ordinary dividend 30 yen) (Ordinary dividend 60 yen)
(Extraordinary dividend 20 yen) (Extraordinary dividend 20 yen)

<Reasons for revision of dividend forecast>
The Company positions the return of profits to shareholders as one of the most importantmanagement policies, and in addition to endeavoring to strengthen its financial position andmanagement foundation with a long-term perspective, has a basic policy of maintaining stable andongoing dividends to all shareholders commensurate with the consolidated results.
As described above, in the income projection for consolidated full-year earnings in the fiscal year
ending March 31, 2022, income is anticipated to exceed the previous forecast. Accordingly, theCompany has revised upward its interim dividend, from the previous forecast of 40 yen to 45 yen
per share by paying an extraordinary dividend of 5 yen. Likewise, the forecast for year-end
dividend has been revised upward to 45 yen per share, which includes an extraordinary dividend of
5 yen.
As a result, the annual dividend will be 90 yen per share, an increase of 10 yen from the dividend
paid in the previous year.
Note: The above forecasts are based on the information currently available to the Company on the date ofrelease and certain assumptions deemed reasonable. Actual results may vary from the forecast for avariety of reasons.

－ 6 －2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(Million yen)
Fiscal year ended

First half ended

March 2021

September 2021

(As of March 31, 2021)(As of September 30, 2021)

Cash and deposits

45,63640,191

Notes and accounts receivable – trade103,773

91,135

4,621

5,516

302

323

Merchandise and finished goods

29,727

38,175Work in process

1,280

1,619

Raw materials and supplies

6,940

11,374

Other

9,921

8,166

ASSETS
Current assets

Electronically recorded monetary claims – operating
Securities

Allowance for doubtful accounts(2,024)(258)

Total current assets

200,179

196,245

Buildings and structures, net

7,021

6,608

Machinery, equipment and vehicles, net

4,642

5,062

Tools, furniture and fixtures, net

1,378

1,059

Land

5,074

5,074

107

121

18,225

17,927

Non-current assets
Property, plant and equipment

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill

209

152

Software

2,338

2,844

62

51

2,609

3,048

Investment securities

10,771

11,151

Deferred tax assets

2,252

2,032

Guarantee deposits

931

887

Insurance funds

910

912

Other
Total intangible assets
Investments and other assets

Other

1,629

3,468

Allowance for doubtful accounts(504)(2,213)

15,990

16,239Total investments and other assets
Total non-current assets
Total assets－ 7 －36,82537,215

237,004

233,461(Million yen)
Fiscal year ended

First half ended

March 2021

September 2021

(As of March 31, 2021)(As of September 30, 2021)

Notes and accounts payable - trade

79,85470,486

Short-term loans payable

10,80017,001

Accrued expenses

5,957

6,567

Income taxes payable

2,136

1,762

126

80

9,642

7,742

108,517

103,640

Long-term loans payable

25,16625,150

Deferred tax liabilities

1,685

1,739

LIABILITIESCurrent liabilities

Provision for directorsʼ bonuses
Other
Total current liabilities
Non-current liabilities

Provision for directorsʼ retirement benefits

106

115

Net defined benefit liability

2,272

2,254

Asset retirement obligations

343

344

Other

3,850

3,598

Total non-current liabilities

33,42433,202

141,942

136,843

Capital stock

12,133

12,133

Capital surplus

14,327

14,327

Total liabilities
NET ASSETS
Shareholdersʼ equity

Retained earnings

64,56868,827

Treasury shares(1,984)(5,659)Total shareholdersʼ equity

89,04589,629

1,378

1,519

50

13

Foreign currency translation adjustment

470

1,186

Remeasurements of defined benefit plans

21

30

1,921

2,750

Non-controlling interests

4,095

4,238

Total net assets

95,062

96,618237,004

233,461

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Total accumulated other comprehensive income

Total liabilities and net assets－ 8 －(2) Quarterly consolidated statements of income and comprehensive income
For the First half (April 1, 2021 – September 30, 2021)(Million yen)First half ended
September 2020

First half ended
September 2021

(April 1, 2020 –September 30,2020)(April 1, 2021 –September 30, 2021)

Net sales

188,859

223,009

Cost of sales

167,218

195,875

Gross profit

21,641

27,133

Selling, general and administrative expenses

17,206

18,832

Operating income

4,434

8,300

Interest income

62

68

Dividends income

132

111

Commission fee

8699

Non-operating income

－

114

Other

352

343

Total non-operating income

634

738

Interest expenses

156

148

Share of loss of entities accounted forusing equity method

284

403

Foreign exchange losses

256

－

Other

32

33

Foreign exchange gains

Non-operating expenses

Total non-operating expenses
Ordinary income

730

586

4,338

8,452

Extraordinary income
Gain on sales of non-current assets

1

2Gain on sales of investment securities

39

11

Gain on bargain purchase

7,963

－

Gain on sale of businesses

7

7

Reversal of estimated losses associatedwith fund leakage incident that involved
our American subsidiary

－

172

Other
Total extraordinary income

11

15

8,023

209

Extraordinary loss

Impairment loss－

36

Loss on retirement of non-current assets

15

9Loss on valuation of investment securities

163

56

－

174

－

131

Other

56

24

Total extraordinary loss

235

432

Profit before income taxes

12,126

8,229

Income taxes - current

1,107

2,130

Income taxes - deferred

317

339

Loss on liquidation of subsidiaries andassociates
Provision of allowance for doubtful
accounts

Total income taxes

1,424

2,469

Profit10,701

5,759

－ 9 －

(Million yen)First half ended
September 2020

First half ended
September 2021

(April 1, 2020 –September 30,2020)

Profit attributable to owners of parent(April 1, 2021 –September 30, 2021)

10,772

5,624

(70)

135

Valuation difference on available-for-salesecurities

994

135

Deferred gains or losses on hedges

(28)

(36)

Foreign currency translation adjustment

(727)

621

13

8

57

106

309

835

11,011

6,595

11,085

6,453

(73)

142

Profit attributable to non-controlling interests
Other comprehensive income

Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofassociates accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests－ 10 －

(3) Consolidated statement of cash flows(Million yen)First half ended
September 2021
(April 1, 2021 –September 30, 2021)

First half ended
September 2020
(April 1, 2020 –September 30, 2020)
Cash flows from operating activities
Profit before income taxes

12,126

8,229

Depreciation

1,505

1,869

Impairment loss－

36

Amortization of goodwill

56

56

4

8

15

(61)

(363)

(180)

Interest expenses

156

148

Share of (profit) loss of entities accounted forusing equity method

284

403

Loss (gain) on sales of investment securities

(39)

(10)

Loss (gain) on valuation of investment
securities

163

56

(7,963)

－

－

(172)

10,547

12,706

Decrease (increase) in inventories

1,835(12,908)

Decrease (increase) in accounts receivable other

1,607

1,749

Decrease (increase) in advance payments

(393)

(320)

Increase (decrease) in notes and accounts
payable - trade(21,540)(10,121)

Increase (decrease) in accrued expenses

(993)

550

Decrease (increase) in consumption taxes
refund receivable

285

(244)

Increase (decrease) in provision for directorsʼ
retirement benefits
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income

Gain on sale of businesses
Reversal of estimated losses associated withfund leakage incident that involved ourAmerican subsidiary
Decrease (increase) in notes and accounts
receivable - trade

24

(181)

(2,298)(1,731)Other, net

(265)

174

Subtotal(5,242)

58

203

189

(163)

(146)

(1,814)(2,286)－171(7,017)(2,013)(3,289)(1)

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities

Interest and dividend income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

390

466

Purchase of property, plant and equipment(1,290)(1,586)

Proceeds from sales of property, plant andequipment

15

14

Purchase of intangible assets

(691)

(723)

Purchase of investment securities

(851)

(883)

－ 11 －

First half ended
September 2018
(April 1, 2019 –September 30, 2019)(Million yen)First half ended
September 2019
(April 1, 2020 –September 30, 2020)

204

215

Short-term loan advances

(140)

－

Long-term loan advances－(1,179)2,707－

Other payments

(73)

(137)

Other proceeds

22

116

(2,996)(3,699)

Increase (decrease) in short-term loans
payable

1,166

6,607

Repayments of long-term loans payable

(639)

(652)

Proceeds from sales of investment securities

Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation

Net cash provided by (used in) investing
activities
Cash flows from financing activities(0)(3,675)(1,088)(1,372)

(292)

(378)

(855)

529

(236)

194

(11,105)(4,989)Cash and cash equivalents at beginning of period

42,69344,333

Cash and cash equivalents at end of period

31,58839,343Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents－ 12 －

(4) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)Not applicable(Significant change in shareholdersʼ equity)
The Company has acquired 1,231,700 treasury shares based on a resolution passed at the Boardof Directorsʼ meeting held on August 5, 2021. As a result, treasury stock increased by 3,674 million
yen in the second quarter of the consolidated fiscal period under review, and the amount oftreasury stock as of September 30, 2021, was 5,659 million yen.
(Changes to Accounting Policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the current fiscal
year, and it recognizes revenue as the amount expected to be received in exchange for goods orservices when control over the promised goods and services passes over to the customer.
As a result, in the case of a performance obligation in which the promise with the customer
involves the supply of goods or services provided by another party, the net amount received as theagent is recognized as revenue.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the new
accounting policy had been applied to periods prior to the beginning of the first half, was added toor subtracted from the beginning balance of retained earnings of the first half, and thus the new
accounting policy was applied from the beginning balance.
However, the method provided for in Paragraph 86 of the Accounting Standard for Revenue
Recognition was applied so that the new accounting policy was not retrospectively applied tocontracts where recognitions of nearly all the revenue amounts for periods prior to the beginning of
the first half were subject to the previous treatment.
As a result, compared to the previous method, in this first quarter, net sales decreased by 2,358
million yen, and the impact on operating income, ordinary income, and profit before income taxes
was minimal.
(Application of Accounting Standards for Fair Value Measurement)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)
was applied from the start of the first quarter of this consolidated fiscal year, and in accordancewith the transitional treatment set forth in Article 19 of “Accounting Standard for Fair Value
Measurement” and Article 44-2 of “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019), the Company will continue to apply new accounting policies
prescribed by “Accounting Standard for Fair Value Measurement” and other standards into the
future. The effects of this adoption on the quarterly consolidated financial statements are
immaterial.
(Additional information)(Accounting estimates associated with the COVID-19 pandemic)
Accounting estimates such as of impairment of non-current assets and collectability of deferred
tax assets are made based on information that is available as of September 30, 2021 and do notinclude significant changes from the financial statement for the previous consolidated fiscal year.

－ 13 －

(Segment information)
I. For the first half ended Septmber 2020 (April 1, 2020 – September 30, 2020)
Information about net sales and income (loss) by reportable segments(Million yen)
Reportable segments
Electronic

Information

components equipment

Software

Others

Total

Adjustment

Consolidated(Note 1)

(Note 2)

Net sales:
Sales to externalcustomers

156,887

23,192

1,274

7,505

188,859－

188,859

1,280

2,569

513

2,030

6,394

(6,394)－

158,167

25,761

1,788

9,536

195,254(6,394)

188,859

3,083

1,160

86

36

4,366

68

4,434

Inter-segment
sales ortransfers
Total
Segment income
Notes:

1. Adjustment in segment income of 68 million yen includes 68 million yen for elimination of inter-segment
trade.
2. Segment income is adjusted for operating income on the quarterly consolidated statements of income andcomprehensive income.

II. For the first half ended Septmber 2021 (April 1, 2021 – September 30, 2021)
Information about net sales and income (loss) by reportable segments(Million yen)
Reportable segments
Electronic

Information

components equipment

SoftwareAdjustment

Others

Total(Note 1)

Consolidated(Note 2)

Net sales:
Sales to externalcustomers

194,406

18,713

1,237

8,651

223,009－

223,009

1,484

2,310

349

3,306

7,451

(7,451)－

195,891

21,023

1,587

11,957

230,460(7,451)

223,009

7,123

910

(109)

320

8,245

55

8,300

Inter-segment
sales ortransfers
Total
Segment income
Notes:

1. Adjustment in segment income of 55 million yen includes 55 million yen for elimination of inter-segment
trade.
2. Segment income is adjusted for operating income on the quarterly consolidated statements of income andcomprehensive income.

－ 14 －