KAGA ELECTRONICS
CO., LTD.

For Institutional Investors/Analysts

Financial Results Briefing Material
for the Fiscal Year ended March 31, 2020
KAGA
ELECTRONICS CO., LTD.
加賀電子株式会社
TSE 1st section 8154

May 28, 2020

INDEX FY2020/3 Full-Year Financial Results

P-2～

Summary/Financial Highlights
Financial Highlights by Business Segment/
Balance Sheet/Cash Flows Management Topics

P-20～

Response to the Spread of COVID-19
Progress of PMI at Fujitsu Electronics
Initiatives to strengthen EMS business
Acquisition of EXCEL/New initiatives
Environment and outlooks for the FY2021/3
 Reference

P-29～

Consolidated Financial Results
for the Fiscal Year ended March 31, 2020

Managing Director
KAGA ELECTRONICS CO., LTD.

Eiji Kawamura

2

Summary of Financial Results for FY2020/3
Significant increase in net sales with contribution to full-year results from theconsolidation of Fujitsu Electronics.
 Operating income and ordinary income both exceeded the previous forecast andreached record-high levels.
 Net income decreased due to the elimination of gain on negative goodwill recordedin the previous fiscal year and loss on valuation of shareholdings.
 During the spread of the novel coronavirus in the January-March period, althoughproduction was suspended at some plants including China, performance ended up
exceeding the plan as a result of the Group's concerted efforts to minimize the impact.
 The year-end dividend will be increased from the initial forecast of 30 yen per sharewith a special dividend of 10 yen per share for 40 yen per share.
*Combined with an interim dividend, the annual dividend will be 70 yen per share.


FY2020/3
Results

Electronic
Components
Overview of themain segments

Information
Equipment

Earnings forecast
for FY2021/3



・In the EMS business, performance was strong throughout the year in theareas of medical equipment and automotive devices.
・In the components sales business, the closing of Cypress business also
made a significant contribution.
・The PC product sales business grew by capturing demand from theswitchover to Windows 10.
・Sales in the housing-related home electronic appliances business
continue to be weak.
・The commercial facilities-related LED installation business was alsosluggish due to a lull in large-lot demand.

Due to the spread of novel coronavirus infection, it is difficult to make a reasonablecalculation at this stage, so the forecast is undecided.
The dividend forecast is also undecided at this time.
3

Financial Highlights for FY2020/3（million yen）

FY2019/3
Results

FY2020/3

Previous forecast

FY2020/3
Results

YoY

vs Forecast

Net sales

292,779

442,000

443,615

51.5%

0.4%

Gross profit

35,54647,00047,016

32.3%

0.0%

12.1%

10.6%

10.6%

27,97638,00037,001

32.3%

-2.6%

Operating income

7,570

9,000

10,014

32.3%

11.3%

Ordinary income

7,859

9,000

10,137

29.0%

12.6%

Profit attributable to owners of parent

8,014

5,000

5,852

-27.0%

17.0%

292.07182.17213.21

ー

ー

10.9

6.4

7.6

-3.3pt+1.2ptGross profit margin
SG&A

EPS（Yen)
ROE

Note: Previous forecast was announced on February 6, 2020.

4

Financial Results by Business Segment for FY2020/3（million yen）

FY2019/3

FY2020/3

Results

Results

YoY

225,598

377,587

67.4%

4,761

7,503

57.6%

44,344

43,466-2.0%

Segment income

1,906

1,707

-10.4%Net sales

2,876

2,778

-3.4%

247

236

-4.3%

19,95919,781

-0.9%

490

452

-7.8%

292,779

443,615

51.5%

7,570

10,014

32.3%

Electronic
Component

Net sales

Information
Equipment

Net sales

Software

Others

Total

Segment income

Segment income
Net sales
Segment income
Net sales
Segment income

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

5Financial Highlights by Business Segment(Million Yen)

Net Sales
443,615
19,781
2,778
43,466

Segment Income
Total

Total

YoY：
＋150,853
vs Forecast：＋51.5%

YoY：+2,444
vs Foreca : +32.3%

Others292,779

Software19,9592,876
44,344

YoY：
ー97
vs Forecast： ー3.4%
Information equipment

377,587

YoY：
ー878
vs Forecast： ー2.0%

7,570

YoY：
＋151,989
vs Forecast： 67.4%

FY2020/3
Result

452
236
1,707

490
247

SoftwareYoY：
ー10
vs Forecast： ー4.3%

YoY：
ー198
vs Forecast： ー10.4%

7,503
4,761

FY2019/3
ResultOthersYoY：
ー38
vs Forecast： ー7.8%

Information equipment

1,906

Elecronic Compornent

225,598

FY2019/3
Result10,014

YoY ：ー177
vs Forecast ： ー0.9%

Elecronic Compornent
YoY：+2,741vs Forecast：+57.6%

FY2020/3
ResultNote: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

6Effect of Fujitsu Electronics conversion to subsidiary※In million yen, figures in ( ) are simple sums. Actual figures of Fujitsu Electronics for the previous period are for reference only.

Net Sales

Sales increase at Kaga Electronics driven by EMS, while sales at
Fujitsu Electronics declined due to loss of commercial rights(468,995)
200,584443,615
FujitsuElectronics

233,306

Gross profit / Gross profit margin
Income increased at Kaga Electronics; FujitsuElectronics saw improvement in gross profit margin(46,725)
47,016
13,708600 00500 00400 00FujitsuElectronics

243,031300 00Kaga
Electronics
200 00Kaga
Electronics

235,689201 9

100 00Kaga
Electronics
加賀電子

FY2019/3

FujitsuElectronics
富士通エレクトロニクス

連結

comsolidated

0

14,59033,298

13.6%

13.7%

32,135

10.6%

6.3%
201 9

FY2019/3

FY2020/3

6.8%

加賀電子

Kaga
Electronics

comsolidated
FujitsuElectronics
富士通エレクトロニクス

連結

FY2020/3

SG&A / SG&A ratio

Operating income / Operating income marjin

Kaga Electronics curbed SG&A, personnel cost reduced
at Fujitsu Electronics

Income increased and income margin improved atboth Kaga Electronics and Fujitsu Electronics

600 00500 00400 00FujitsuElectronics
300 00200 00Kaga
Electronics
100 000(37,998)

11,622

13,191

25,379

10.5%

10.4%
5.8%

24,8075.6%201 9FY2019/3

加賀電子

Kaga
Electronics

富士通エレクトロニクス

FujitsuElectronics

FY2020/3

37,001

8.3%

comsolidated
連結(8,727)
FujitsuElectronics
Kaga
Electronics

1,399

3.1%

7,927
3.3%

7,328

0.6%
201 9

FY2019/3

KagaElectronics
加賀電子

2,086

1.0%
富士通エレクトロニクス

10,014
2.3%

連結Fujitsucomsolidated
Electronics

FY2020/3(note) With respect to gross profit and operating income, figures presented above are before consolidation

adjustments between the two companies. For reference, after consolidation adjustments, gross profit
stood at 9million yen, and operating income came to 1 million yen.

7

Financial Highlights: Electronic Component（million yen）

Net sales/Segment income/

Kaga Electronics/

Fujitsu Electronics

377,587

57,090168,508

7,503
4,761
242
4,519

FY2019/3
Result Net sales＋151,989million Yen 67.4％up

 Segment Income +2,741million Yen 57.6％up
・ The EMS business made steady progress throughout theyear in medical equipment and automotive devices.
・ As a result of the spread of COVID-19, although operations
were suspended at some overseas plants, the impact on thecurrent fiscal year's results was limited.

200,584

225,598

YoY

2,086

・ In the components sales business, sales of LEDs for invehicle and consumer use were strong.
・ The consolidation of Fujitsu Electronics has added newrevenue for mobile phones and automotive devices.・・There was also a one-time revenue contribution from thetermination of the contract with Cypress.

177,003
5,417

FY2020/3
Result8

Financial Highlights: Information Equipment（million yen）

Net sales/Segment income

500 00450 00YoY

800 0

 Net sales
 Segment Income

44,344

43,466

ー878million Yen ２.0％down
ー198million Yen 10.4％down

700 0

・ Sales of PCs and PC peripherals were strong to consumer
400 00600 0electronics stores, schools, and educational institutions,capturing the demand to switch to Windows 10.

350 00500 0

300 00400 0・ Performance in the housing-related home electronic
appliances business was weak as a result of delivery dateadjustments at customers.
・ Replacement demand in the commercial facilities-related

250 00200 00

300 0

1,906

1,707

200 0

150 00100 0

100 000FY2019/3
Result

LED installation business has slowed down.

FY2020/3
Result9Reference

Financial Highlights (3 months)（million yen）

FY2019/3
4Q Results

Fy2020/3
3Q Results

FY2020/3
4Q Results

YoY

QoQ

Net sales

118,997108,170

104,813-11.9%-3.1%

Gross profit

11,522

11,474

11,770

2.2%

2.6%

9.7%

10.6%

11.2%

SG&A

9,700

8,982

9,488

-2.2%

5.6%

Opearating income

1,821

2,492

2,282

25.3%

-8.4%

Ordinary income

1,859

2,428

2,161

16.2%

-11.0%

Profit attributable to owners of parent

3,139

1,422

927

-70.5%-34.8%

114.38

51.82

33.78

ー

ー

Gross profit margin

EPS

10

Reference

financial Results by Business Segment (3 months)（million yen）

4Q Results

3Q Results

4Q Results

YoY

QoQ

84,060-16.5%-10.3%

981

2,180

1,084

10.5%

-50.2%

11,9709,820

13,677

14.3%

39.3%

Segment income

567

236

853

50.4%

261.6%Net sales

933

455

990

6.1%

117.3%

Segment income

125

-37

226

81.4%

ー

5,388

4,185

6,085

12.9%

45.4%

75

105

87

17.0%

-16.4%

118,997108,170

104,813-11.9%

-3.1%

1,821

2,492

2,282

25.3%

-8.4%

Information
Equipment

Net sales

Total

FY2020/3

93,708Net sales

Others

FY2020/3

100,704

Electronic
Components

Software

FY2019/3

Segment income

Net sales
Segment income
Net sales
Segment income

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

11Reference

Financial Highlights: Electronic Component (3 months）（Million Yen)

Net sales/Segment income//

120 000YoY

Net Sales
Segment Income
800 0

100,704

 Net sales
 Segment
Incomeー16,644million Yen 16.5％down+ 102million Yen 10.5％up

700 093,708100 000

84,060600 0

800 00500 0

600 00400 0

QoQ
 Net sales
 Segment
Incomeー9,648million Yen 10.3％down
ー1,095million Yen 50.3％down

300 0

2,180

400 00200 0

200 00

1,084

981

100 0

0

0

2019/3
4QResults

2020/3
3QResults

2020/3
4QResults

12

Reference

Financial Highlights: Information Equipment（3 months）（Million Yen)

Net sales/Segment income
160 00YoY/

Net Sales/

Segment Income

300 0

13,677140 00 Net sales
 Segment
Income1,706million Yen

14.3％up286million Yen

50.4％up

3,856million Yen

39.3％up

250 0

QoQ

11,970120 00

200 0

9,820

100 00150 0

 Net sales
 Segment
Income617million Yen 261.6％up

800 0

853

100 0

600 0

567
500

236

400 0

200 0

0

2019/3
4QResults

2020/3
3QResults

2020/3
4QResults

13

Balance Sheet Main Items（Million Yen)

Total assets
213,761

Total liabilities and net assets
213,761

207,638

128,755

129,501

121,388

Total liabilities

84,25986,250Total net assets

FY2019/3

FY2020/3

128,755
182,396

174,331207,638

Current assets

58,123104,069

70,631
24,68531,36433,306FY2018/3

FY2019/3

FY2020/3

Non-current assets

FY2018/3

14Balance Sheet Main Items（Million Yen, Day)

Inventories

Accounts receivable/Accounts payable

40.7

160 ,000

80. 0

34.9

A/R turnover

40. 0

50, 000

29.4

140 ,000

77.1

77.0

75.2
70. 0

30. 0

Inventory turnover

40,026

A/P turnover

120 ,000

65.3

40, 000
20. 0

63.3

64.6

60. 0

101,507
31,908100 ,000

91,37110. 077,88430, 000

80, 000

0.0

19,45560, 000

20, 000-10.0

Inventories
40, 000-20.0

70,18849,84150. 0

Notes and A/R

40. 0

30. 0

36,39220. 0

Notes and A/P

10, 000

20, 000
10. 0
-30.0

-40.0

0

FY2018/3

FY2019/3

FY2020/3

注：Inventory turnover ＝ Inventories ÷ Cost of Sales × 365（day）

0.0

0

FY2018/3

FY2019/3

FY2020/3

notes：・Notes and A/R are amounts including Electronically recordedmonetary claims-operating
・A/R turnover ＝ Notes and A/R ÷ Net sales × 365（day）
・A/P turnover ＝ Notes and A/P ÷ Cost of sales × 365（day）

15

Cash and Deposits/Interest Bearing Debt/Cash Flows（million yen

Cash and deposits
0.43

60, 000

0.13

50, 000

-0.03

-0.31

0.37

0.5 0

Cash flows（times）

D/E ratio-0.19

Cash flows fromoperating activities

0.0 0

Net D/E ratio-0.50

40, 000

22,40643,384-1.00

Cash and deposits

11,684

10,07730, 000

35,003-1.50-4,17320, 000

30,80332,851-1,547-2,811

10, 000-2.50

Cash flows fromfinancing activities-7,544

Cash flows frominvesting activities-6,860-2.00

28,736-3,651

Interest bearing debts

8,900
2018/3末-3.00

0FY2018/3

FY2019/3

FY2020/3

FY2018/3

2019/3末FY2019/3

2020/3末

FY2020/3

note：D/E ratio＝ Interest bearing debts ÷ Shareholder’s equity
Net D/E ratio ＝（Interest bearing debts - Cash and deposits） ÷ Shareholder’s equity

16

Major Business Indicators（million yen）

Equity ratio

ROE

54.8%

9.5%

260 ,000

35.8%

10.9%
7.6%

37.7%
40. 0%

210 ,000

20. 0%

Total assets

213,761

160 ,000

0.0 %

2.7

Net profit margin

2.7

Financial leverage

2.1

Total asset turnover

2.8-20.0%

110 ,000

1.3

207,6381.8

2.8-40.0%

60, 000

128,755
70,556

Shareholders’ equity

76,60478,284-60.0%

1.8

1.4

10, 000-80.0%FY2018/3-40,000

FY2019/3

FY2018/3

FY2020/3

FY2019/3

FY2020/3-100.0%17

Reference

Segment disclosure associated with the start of the Medium-Term
Management Plan

Continuous disclosure based on current segmentation according to legal financial accounting,along with voluntary disclosure based on segmentation in line with the new Medium-Term
Management Plan

Current segments

Segments in Medium-Term Management Plan

Legal financial accounting

Management Accounting

Components sales businessElectronic
components

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

EMS business Electronic equipment
manufacture contracting
services

Informationequipment

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

Software Production of CG video andsoftware

Others Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods

Electronic
components

 Sales of semiconductors
 Sales of general electronic
components
 Sales of various devices

EMS

 Electronic equipment manufacture
contracting services

CSI

 Sales of PCs and PC peripherals
 Sales of home electric appliancesand lighting fixtures
 Sales of photograph and imaging
products

Others Production of CG video andsoftware Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods
18

Reference

Financial Highlights by Business Segment of
the Medium-Term Management Plan（million yen）

Electronic
Componens
EMS

CSI

OthersTotal

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income

FY2019/3

FY2020/3

FY2020/3

Results

Previous forecast

Results

YoY

vs Forecsast

145,042

290,000

292,905

101.9%

1.0%

2,278

4,000

3,553

56.0%

-11.2%

89,481

100,000

93,340

4.3%

-6.7%

2,667

3,500

4,015

50.5%

14.7%

44,34439,00043,466

-2.0%

11.5%

1,906

1,000

1,707

-10.4%

70.7%

13,912

13,00013,902

-0.1%

6.9%

554

500

623

12.5%

24.6%

292,779

442,000

443,615

51.5%

0.4%

7,570

9,000

10,014

32.3%

11.3%

Note 1: Previous forecast was announced on February 6, 2020.
Note 2: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

19

Management Topics
President & Representative Director
KAGA ELECTRONICS CO., LTD.

Ryoichi Kado

20

Response to the Spread of Novel Coronavirus Infection

Kaga Electronics
Head Office

The Novel Coronavirus Response Committee was established on February 27. With thesafety and security of the lives of all Group employees as our top priority, we haveevacuated employees stationed overseas and supported their families. We made adecision to provide material support and dispatch personnel from the head office as a
BCP that we promptly implemented.



From April 7 to the end of May, we have and will continue to implement telework andstaggered commuting in response to the state of emergency declaration and therequest to refrain from going out (office attendance rate: 22%, average for May).
*There are plans to return to the normal work schedule from June 1.

Japan
Sales bases
Overseas

Japan
Production bases
Overseas

・We are continuing sales activities while implementing telework andstaggered commuting in accordance with the guidance of the central
government and regional governments.
・We are continuing sales activities while implementing safety measures inaccordance with the guidance of national governments, states, and local
government agencies.
・We are continuing to operate with a minimum number of people while
implementing safety measures in accordance with the guidance of the central
government and regional governments.
・We are continuing operations while implementing safety measures inaccordance with the guidance of national governments, states, and local
government agencies in China, Asia, Europe, excepting Mexico and India.
21

Progress of PMI at Fujitsu Electronics

Improvements in
profitability
Good news

Reduction in fixed
expenses
Good news

Loss of majorcommercial rights
Bad news

Gross profit margin improved by 0.5 points YoY

6.3％ in FY 2019/3 ➡ 6.8％ in FY 2020/3[Factors] While there was a one-time gain from the closing of Cypress, the sales mix has
been improving



SG&A expenses decreased by approximately 1.5 billion yen YoY

13.1 billion yen in FY 2019/3 ➡ 11.6 billion yen in FY 2020/3[Factors] Personnel costs have been reduced due to the natural attrition and therationalization of sales companies following the termination of Cypress (U.S.) business.

Termination of Cypress (U.S.) (October 2019)

Change in distribution channel in products manufactured by Mie Fujitsu Semiconductor
to UMC (Taiwan) following the transfer of its business to UMC (March 2020).

22

Progress of PMI at Fujitsu Electronics
EMS
initiatives

At present, we have received orders and tentative offers from four companies, including
an automotive equipment manufacturer and an electronics manufacturer

96 companies approached ➡ Business negotiations ongoing with 37 companies[Focus point] Major business negotiations are underway, leveraging the strengths of Kaga
Electronics and Fujitsu Electronics


Cross-selling
initiatives

Strengthening sales of the leading products of Kaga Electronics to major automotive
equipment customers[Focus point] Major business negotiations are underway in preparation for full-fledged
earnings in FY 2022/3 to FY 2024/3*Abbreviations: Kaga Electronics ➔ KG, Fujitsu Electronics ➔ FEI

Japan
Consolidation ofsales bases

Overseas

・Relocation of FEI Nagoya Office to KG Nagoya Sales Office[September/2019]
・Closing of FEI Hiroshima Sales Office, consolidation with KG Kansai Sales
Office [December/2019]
・Closing of FEI Nagaoka Sales Office, consolidation with KG Niigata Sales
Office [February/2020]
・Liquidation of KG US sales company, transfer of business to FEI US sales
company [planned for Spring/2021]*Integration of the sales bases of the two companies in Midwest prior to this[planned for Summer/2020]・Sales companies in Korea of both company are also under consideration[planned for Spring/2021]
23

Initiatives to strengthen EMS Business

Increasing of Production
CapacityStrengthening of
Manufacturing Capabilities

Acquisition of Towada Pioneer
Name:

KAGA EMS TOWADA CO.,
LTD.

Add:

Towada City, Aomori
Prefecture

Strengthening ofEngineering Capabilities

Amata Nakhon 2nd Factory
Name:

KAGA ELECTRONICS(THAILAND) CO., LTD.
Amata Nakhon 2nd Plant

Add:

Amata Nakhon Industrial
Estate, Chon Buri, Thailand

Business Automotive electronic
Content: equipment, installation ofsubstrates in medical
equipment, assembly offinished Products

Business Installation of substrates forContent: multifunction devices,
printers and automotive
related units

operation to October 2019
commence:

operation to December 2019
commence :Fukushima Factory

China JV project

Name:

KAGA MICRO SOLUTION CO.,LTD.Fukushima FactoryName:

蘇州路遠加賀実装技術開発有限
公司

Add:

Sukagawa City, Fukushima
Prefecture

Add:

Suzhou City, Jiangsu
Province, China

Business Manufacture, repair, reuse,
Content: and recycling ofcommunications equipment,PCs, and PC peripherals

operation to October 2019
commence:

Business Development, manufacture,
Content: and external sale of substrateinstallation equipment sets
operation to December 2019
commence:24

Acquisition of EXCEL

Acquisition
schemeAcquisition price(estimate)

Impact on finances

Purpose of
acquisition

Acquisition of EXCEL

April 1, 2020: Assets split following the conversion of EXCEL into a wholly owned
subsidiary by CI11.
 On the same day, a business transfer was conducted and EXCEL was converted into
wholly owned subsidiary of Kaga Electronics, along with a partial transfer of assets.

・Shares of common stock in EXCEL

100 million yen

・Advisory and other fees

176 million yen

・ Total

276 million yen

Gain on negative goodwill of 8.2 billion yen will be recorded as extraordinary income
in FY 2021/3*8 billion yen raised through a short-term loan as working capital for EXCEL

Increase market share in the electronic parts and semiconductor business: Sharing
LCD device products and the customer base in China
Expansion in the scale of the EMS business: Switching from EXCEL’s external factories
to our own factories
Acquisition of new businesses: Support early commercialization of promising themes
including EV-related business
Improvement in management efficiency: Optimization of sales-related organizations
and indirect management departments





25

New Initiatives: 5G mobile communication system

Electronic
componentsPower supplies, heat exchangers, etc. for 5G base stations
ASICs for millimeter-wave antennas
Sales of low-noise amplifiers for automotive communication chips (C-V2X modules),etc.

Completedproducts



Optical transceivers for 5G cellular networks
Sales of mobile routers, communication modules, Wi-Fi access points for local 5G, etc.
Development of game IP (content) for 5G service providers, etc.

26

New initiatives: Bell (U.S.) Helicopter business

Articles of Incorporation amended at 2019 General Meeting of Shareholders to add
aircraft and uninhabited airborne vehicles as an objective.
 Partnered with eurotec Japan, Inc. to establish an integrated system for procurement,
sales, and maintenance of helicopters.
 In addition to synergies expected from sales of on-board communications equipment,
the business will contribute to solving social issues, including preparations for disasterby local governments in response to the recent spate of large-scale disasters.


Background andoverview

Delivery record andoutlook

FY 2020/3: Four units sold as helicopters for prefectural disaster prevention.
FY 2021/3: Received orders for two units as disaster prevention helicopters forprefectural police.
In addition to revenue from the sale of equipment, expect to generate stable revenue
from maintenance fees.
27

Business environment and outlooks for FY2021/3
Status of BCP
at the Kaga
Electronics Group●EMS production bases: Operations are being continued at almost all global production bases●Japanese sales bases: Telecommuting will be the main focus until May, with plans to return
to a normal work schedule from June.
●Overseas sales bases: We are continuing business activities while implementing safetymeasures in accordance with the guidance of the government agencies of each country.

Status of the
supply chain●Although production by parts and materials manufacturers in China has largely recovered,
there is a sense of a tight demand-and-supply situation for some parts and materials.
●Uncertainties continue over the containment of the novel coronavirus and the global
economy continues to slow. There is no outlook for timing of the recovery in ultimate demand.
●In particular, production of automobile-related products is continuing to decline substantiallyboth in Japan and overseas. Time will also be needed for general consumer goods such as
electrical appliances.

Earnings forecast
for FY2021/3●In light of the circumstances above, it is difficult to make a reasonable forecast, so theearnings forecast is undecided at this time.
●The general outlook is that net sales and operating income will decrease due to theimpact of the coronavirus and the terminations of large-scale business such as
Cypress, and net income will increase due to the recording of a gain on negative
goodwill.
●Because the earnings forecast for the next fiscal year is undecided, the dividend forecast
is also undecided at this time.

management
stancein response to thecoronavirus●It is expected to take at least one year and as long as three years for the coronavirus
to be contained.
●Secure as much working capital as possible to be prepared for unforeseen
circumstances.
*Cash-on-hand of 43 billion yen + commitment line of 15 billion yen●While we will begin formulating a structural improvement plan for the post-corona era, wewill give priority to ensuring employment for the time being.
28

Reference29

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

Net Sales
121,066

118,997
5,388
933
11,970109,564
4,412
437
10,126

5,097
895
9,842

Total

108,170
4,185
455
9,820

YoY
QoQ

：
：

104,813
6,085
990
13,677

ー 14,183
ー 3,357

Others
YoY
QoQ

：
：

YoY
QoQ

：
：

+696
+1,899Software55,493
4,103
465
10,41759,8895,276
939
10,72558,3995,190
538
11,231

100,704

94,587105,230+57+534

Information equipment

93,708

YoY ：
QoQ ：

+1,706+3,856

84,060Electronic component

40,50742,94841,438

YoY
QoQ

：
：

ー16,644
ー9,648

2019/3
2019/3
2019/3
2019/32020/32020/32020/32020/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results

30

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

Segment Income

3,389

Total
YoY
QoQ

186
108
429

2,282
135
162

1,489

547

80
317

1,071

-19

1,976
198
474

1,821
75
125

1,306

-20

105
236

1,850
72
188

Others

2,282
87
226

853

2,617

567

1,402

2,492

1,621
1,084

-61

YoY
QoQ

+12
ー17

：
：

Software
YoY

：

+101

QoQ

：

+264

Information equipment
YoY
QoQ

2,180

981

+461
ー209

：
：

+286
+617

：
：

Electronic component
YoY
QoQ

：
：

+102
－1,095-37

2019/3
2019/3
2019/3
2019/32020/32020/32020/32020/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results
Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

31

Net Sales by Region（million yen）

Net sales

YoY＋90,279million yen 50.1％up
 North America ＋13,815million yen 105.6％up＋10,115million yen102.1％up
 Europe Japan443,615

 Asia292,779

270,585 [61.0%]

180,306 [61.6%]

13,078[4.5%]

9,903[3.4%]

89,492[30.6%]FY2019/3
Result＋36,623million yen 40.9％up

Japan

North America

26,89420,019[6.1%][4.5%]

126,115 [28.4%]

EuropeAsia

FY2020/3
Result32

Net Sales by Region （3 months）（Million Yen)

Net sales

YoY Japan

118,997

 North America
108,170

 Europe

104,813

 Asiaー4,336million Yen＋236million Yen

5.9％Down
3.4％UP

ー3,200million Yen 48.0％Down

ー6,881million Yen 21.8％Down

73,947 [62.1%]
65,761 [60.8%]

69,610 [66.4%]

QoQ

Japan

+3,849million Yen 5.9％UP
 North America +1,081million Yen 18.0％UP
 Japan

6,841[5.8%]

6,668[5.6%]

5,995 [5.5%]
4,438 [4.1%]

31,539 [26.5%] 31,975 [29.6%]

2019/3
4Q Results

2020/3
3Q Results

North America

7,077 [6.8%]
3,468 [3.3%]

Europe24,657 [23.5%]

Asia

 Europe Asiaー970million Yen 21.9％Down

ー7,317million Yen 22.9％Down

2020/3
4Q Results

33

Exchange Rate/FOREX Sensitivity（Reference）

FY2019/3
Results（Yen）

FY2020/3
Results（Yen）

Effect of 1% change（Million Yen）

Net sales

Ordinary
incomeForex
Assumptionfor2021/3(yen)USD

110.91108.74

1,680

38

ー

THB

3.43

3.52

235

14

ー

RMB

16.72

15.78

194

8

ー

HKD

14.14

13.91

210

4

ー
34

＜ｍemo＞

35

＜ｍemo＞

36

＜ｍemo＞

37

“Everything we do isfor our customers
20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629
Contact: Investor Relations & Public Relations Office
TEL:+81-3-5657-0106
FAX:+81-3-3254-7133
E-mail： webmaster@taxan.co.jp
https://www.taxan.co.jp

■ 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.