2023
2021 - 2023

Financial Results Briefing Material
for the First Half of the
Fiscal Year ending March 2024

KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

November 24, 2023

I am Ishihara from Kaga Electronics.
Thank you very much for your continued support and thank you for watching ourfinancial results briefing today.

0Consolidated Financial Results
for the First Half of the
Fiscal Year ended March 2024
Senior Executive Officer
Head of Administration Headquarters

Yasuhiro Ishihara

I would like to present an overview of our financial results for the first half of the fiscal
year ending March 31, 2024.

Summary of Financial Results for FY2024/3 2Q
Net sales decreased by 23.7 billion yen or 7.9% year on year to 275.0 billion yen.
The decrease, despite sales growth in the information equipment business and theothers business, reflected disappearance of spot demand and emergence of some
impact of inventory adjustments by customers in the electronic components
business, the Groupʼs core business.

Operating income decreased by 4.4 billion yen or 24.4% year on year to 13.8 billion yen.
Lower income is attributable partly to provision of allowance for doubtful accounts
recorded in 1Q associated with a business partnerʼs filing for insolvency, in addition to
decline in gross profit due to lower sales.
Excluding disappearance of spot demand and the one-off factor related toallowance for doubtful accounts, “earning power” in real terms maintained theprevious yearʼs level.

Net income decreased by 2.0 billion yen or 15.0% year on year to 11.4 billion yen.
Gain on sales of investment securities and gain on bargain purchase associatedwith a corporate acquisition were posted as extraordinary income.



Upward momentum in 1Q was maintained in 2Q. Net sales and operating income
exceeded the internal plan, by 15.0 billion and 3.8 billion yen, respectively.

While an upward revision is in mind as better-than-expected performancecontinues, supporting first-half earnings momentum, earnings forecast revision
is held off at this time to carefully assess the future demand trend, in light of amanagement environment that poses growing uncertainty about the outlook.

FY2024/3
2Q results

FY2024/3
earnings
forecast

Net Sales
FY2024/3 Forecasts(Announced on May 11, 2023)

2Q Progress rate

Operating income

Net income

JPY 550.0 bn

JPY 25.0 bn

JPY 18.0 bn

50.0%

55.5%

63.4%
2

Results for the first half of the current fiscal year
Net sales decreased by 23.7 billion yen from the previous year to 275.0 billion yen.
Operating income decreased by 4.4 billion yen from the previous year to 13.8 billion yen.
The primary cause of decreases in net sales and income is disappearance of spot demand in our
mainstay electronic components business.
Other factors that pushed down sales and income include emergence of some impact ofcustomers’ inventory adjustments, and provision of allowance for doubtful accounts recorded in
1Q in connection with filing of a petition for civil rehabilitation proceedings by a certain business
partner.
Profit decreased by 2.0 billion yen from the previous year to 11.4 billion yen, reflecting in part
posting of gain on sales of investment securities and gain on bargain purchase associated with acorporate acquisition.
In comparison with the internal plan that factors in disappearance of spot demand and impact ofcustomers’ inventory adjustments, net sales were in excess by 15.0 billion yen and operating
income by 3.8 billion yen.
Excluding disappearance of spot demand and one-off factors including allowance for doubtful
accounts, our “earning power” in real terms maintained the previous year’s level. The betterthan-expected performance vis-a-vis the internal plan observed in 1Q continued in 2Q.
Full-year earnings forecasts
With respect to progress in 2Q against the full-year earnings forecasts announced on May 11, a
good progress was made in general, with net sales at 50%, operating income at 55.5%, and profit
at 63.4%.

In view of such progress achieved in business performance and the results that tend to exceed
the internal plans, we discussed and considered whether or not to revise upward our full-year
earnings forecasts. Given that the outlook was becoming increasingly uncertain, more so than at
the start of the fiscal year, and as we wanted to carefully assess the future demand trend, we
decided to leave the earnings forecasts unchanged at this time.

2

Financial Highlights for FY2024/3 2Q（million yen）

FY2023/3
2Q Results
Net sales

298,760

Gross Profit

40,001SG&A

FY2024/3
2Q Results

FY2024/3
Forecasts

YoY(Announced on May 11, 2023)-7.9%

550,000

13.4%

35,160 12.8% -12.1%

―

ー

ー

21,6397.2%

21,284

7.7%

-1.6%

―

ー

ー

Operating income

18,361

6.1%

13,876

5.0%-24.4%

25,000

4.5%

55.5%

Ordinary income

18,932

6.3%

13,945

5.1%-26.3%

25,000

4.5%

55.8%

Profit attibutable toowners of parent

13,412

4.5%

11,4044.1%-15.0%

18,000

3.3%

63.4%

EPS (yen)

510.88ー

434.23ーー

685.42ーー

133.97ー

141.00ーー

135.00ーー

Exchange Rateyen / USD

275,044

Progress
rate
50.0%

Note: 1. The effect of exchange rates on the conversion into yen is approximately 6,072 million yen on
net sales and 194 million yen on operating income.
2. "x. x% " represents the ratio to net sales.

3

The financial highlights on the next page are as I have just explained.
Earnings per share (EPS) in the first half was 434.23 yen.
The average exchange rate during the first half was 141 yen against the U.S. dollar, which
represents a depreciation of about 7 yen from the previous year and a depreciation of 6
yen from the assumed exchange rate of 135 yen used for the full-year earnings forecasts.
The year-on-year impact of foreign exchange fluctuations was an increase of
approximately 6 billion yen in net sales and an increase of approximately 190 million yen
in operating income. In comparison with the internal plan, the impact was an increase of
approximately 70 million yen in operating income.

Results by Business Segment for FY2024/3 2Q（million yen）

FY2023/3
2Q Results
Electronic
Component

Information
Equipment

Net sales

268,464

Segment income

16,617

Net sales

19,597

Segment income
Net sales

SoftwareSegment income
Net sales
OthersSegment income
Net sales
Total
Segment income

FY2024/3
2Q Results

965

4.9%

7.3%

4.9%

1,280

6.2%

112

9.2%

10,5397.0%

298,760
18,361

11,785

1,225

9,392
658

(Announced on May 11, 2023)

20,715

1,307
95

YoY

242,564
6.2%

623

5.9%

275,044
6.1%

13,876FY2024/3
Forecasts

5.0%

-9.6%

471,500-29.1%

20,7005.7%

45,000

32.7%

2,500

-6.3%

4,500

18.2%

300

12.2%

29,000

-5.3%

1,500

-7.9%

550,000-24.4%

25,000Progress
rate
51.4%

4.4%

56.9%
46.0%

5.6%

51.2%
27.2%

6.7%

37.7%
36.3%

5.2%

41.5%
50.0%

4.5%

55.5%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

4

These are results by business segment.
In the mainstay electronic components business, net sales and income in the component sales
business both recorded decreases from the previous fiscal year. This is attributable todisappearance of spot demand, which had contributed to earnings until the previous fiscal year,
given easing of supply shortages of semiconductors and electronic components, combined withemergence of some impact of inventory adjustments by customers. The EMS business also
recorded decreases in net sales and income year on year, for although sales in the automotive
sector increased due to improved supply and demand balance of semiconductors and electronic
components, inventory adjustments by key customers had an impact on sales in applications
related to medical and industrial equipment. Against the full-year earnings forecasts, theelectronic components business is progressing at over 50% in terms of both net sales andsegment income.
In the information equipment business, both net sales and income increased from the previous
fiscal year due to robust sales of PCs to educational institutions, security software and PC
peripheral products, combined with contribution from large-scale projects in the LED installation
business that we started pushing forward on a full scale in the previous fiscal year. Segment
income progressed to over 50% of the full-year earnings forecasts, and income margin also
exceeded the result of the previous fiscal year as well as the internal plan figures.
In the software business, net sales were almost at the same level as the previous fiscal year,
while segment income increased and, as with the information equipment business, income
margin exceeded the result of the previous fiscal year and the internal plan figures.
In the others business, net sales increased year on year, and segment income was almost at thesame level as the previous fiscal year.

Particularly with respect to segment income margin, all business segments exceeded full-year
internal plan figures. Overall, operating income margin stood at 5% for the first half, against fullyear target of 4.5%.
Please also refer to pages 7 and 8, which contain information by business segment.

4

Results by Company for FY2024/3 2Q（million yen）

FY2023/3
2Q Results

FY2022/3
2Q Results

Kaga
Electronics

Net sales

125,272

Gross Profit
Operating income

Kaga FEI

Excel

18,850
6,402

5.1%

68,240Gross Profit
Operating income

12,235

7.3%

6,325

11,301

1,067

1.6%

5,214

5.3%

2,103

7.1%

966

3.3%

Net sales

223,009

Gross Profit

31,602

27,1338,300

3.7%

23,651-11.5%

10,5686.8%-13.6%

9,632

9.8%

-14.8%

2,422

2.5%

-53.5%

0.0%

19,869

1,991

6.3%

866

2.7%

298,760
12.2%

-7.1%
15.1%

98,766
11.4%

Gross Profit

Operating income

26,734

9.3%

29,495

YoY

156,408
15.9%

98,757

Net sales

Operating income

Total

168,400
15.1%

Net sales

FY2024/3
2Q Results-37.1%

1,925

9.7%

-3.3%

865

4.4%

-0.1%

-12.1%-24.4%

275,044-7.9%

40,001

13.4%

35,16012.8%

18,361

6.1%

13,8765.0%

Note: 1. With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.
2. "x. x% " represents the profit margin.

5

Moving on to performance by company, I would like to explain the points that I wish to draw
your attention to.
In Kaga Electronics proper, net sales and income decreased from the previous fiscal year, largely
reflecting disappearance of spot demand. However, compared with the year prior to theprevious fiscal year when the benefits of spot demand were still small, we can see that net sales,
operating income, and operating income margin all increased significantly.
In the Kaga FEI Group, despite disappearance of spot demand, net sales maintained the previous
fiscal year’s level. Comparison with the year prior to the previous fiscal year shows significant
improvement in its sales power. Although income was pushed down notably by posting ofallowance for doubtful accounts associated with a certain customer, we can see that, as with
Kaga Electronics, both operating income and operating income margin increased significantly
when compared with the year prior to the previous fiscal year.
In Excel Group, despite a decrease in sales to a major customer, profit-generating ability wasenhanced with improved sales mix, enabling the company to maintain gross profit and operating
income at almost the same levels as the previous fiscal year, and improve operating income
margin significantly, to 4.4%.
Thus although in a year-on-year comparison, net sales and income both recorded decreases, if
you look at our performance by taking into account such things as one-off factors in the context
of the trend to date, I believe you can recognize that post-merger integration is progressing
steadily particularly at the Kaga FEI Group and Excel Group, with dramatic changes and growth intheir sales power and profit-generating ability, and that the “earning power” of the whole Group,
including Kaga Electronics proper, is steadily increasing.

Please also refer to the graphs on page 6.

5Effect of M&A for FY2024/3 2Q（million yen）

Net Sales

Gross profit / Gross profit margin

Kaga Electronics posted a sales decrease due partly todisappearance of spot demand. Excel saw a decrease in sales
to a major customer.

Kaga Electronics and Kaga FEI both recorded a gross profit decrease
due partly to disappearance of spot demand. Improved sales mix
helped Excel to maintain profit at nearly the same level as last year.

298,760 -11,992-11,732+9275,044

40,001-3,082

15.9%
11.4%

-1,669

15.1%

13.4%

35,160

-66

12.8%

9.8%

9.7%

6.3%
2023/3
2Q

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/32Q

2023/3
2Q

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
2Q

SG&A / SG&A ratio

Operating income / Operating income marjin

SG&A expenses declined in both Kaga Electronics and Excel due tolower sales. Kaga FEIʼs expenses increased due partly to theprovision of allowance for doubtful accounts.

Kaga Electronics and Kaga FEI recorded a decrease in operating
income. Excel secured last yearʼs income level with improved
operating income margin.

-837

21,639

8.8%

8.7%
6.0%

7.2%

+553
6.5%

-70

21,284

7.7%
4.9%

Kaga
Electronics-1,666

7.3%
5.3%

Kaga FEI

Excel

FY2024/3

2024/3
2Q-2,791

6.8%

6.1%

2.7%

3.3%
2023/3
2Q

18,3612023/32Q-113,876

4.4%

5.0%

Excel

2024/3
2Q

2.5%
Kaga
Electronics

Kaga FEIFY2024/3

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 -47million yen, and operating income came to 19million yen.

6

Financial Highlights: Electronic Component Segment

Net sales/Segment income（million yen）//

350000Net Sales

YoY
35000

Segment income

300000 Net Sales Segment income-25,899million yen

9.6％Down-4,831million yen 29.1％Down

30000

268,464
242,564

25000025000

200000・ Both net sales and income decreased in the component sales
business due to partial emergence of the impact of customersʼ
inventory adjustments, in addition to disappearance of spot
demand that had contributed to earnings until the previous
fiscal year, given easing of supply shortages of semiconductors
and electronic components.

20000

16,61715000015000

11,785
100000

10000

50000

5000

0

・ In the EMS business, net sales and income declined due partly
to the impact of inventory adjustments at key customers inapplications related to medical and industrial equipment,
despite sales growth in the automotive sector resulting from
improved supply and demand balance of semiconductors andelectronic components.

0

FY2023/3
2Q Results

FY2024/3
2Q Results

7

Financial Highlights: Information Equipment Segment

Net sales/Segment income（million yen）

/ Net Sales

YoY
 Net Sales
4000/ Segment income

 Segment income+1,118million yen

5.7％Up+315million yen

32.7％Up

25000

3500

・ Sales of PCs to educational institutions remained firm, withan increase in the number of accounts.

20,715

19,597

3000

20000

・ Sales of security software and PC peripheral products werealso solid.

2500

15000

2000

1,280

10000

・ The LED installation business enjoyed contribution from salesof large-scale projects that the Group has been pushing
forward on a full scale since the previous fiscal year.

1500

965
1000

5000

500

0

0

FY2023/3
2Q Results

FY2024/3
2Q Results8Reference

Financial Highlights for FY2024/3 2Q (3 months)（million yen）

FY2023/3
2Q Results

FY2024/3
1Q Results

FY2024/3
2Q Results

QoQ

137,350

-8.1%

-0.3%

Net sales

149,458

Gross Profit

20,163

13.5%

17,553

12.7%

17,607

12.8% -12.7%

0.3%

SG&A

11,621

7.8%

10,5597.7%

10,725

7.8%

-7.7%

1.6%

Operating income

8,541

5.7%

6,994

5.1%

6,882

5.0%

-19.4%-1.6%

Ordinary income

9,073

6.1%

6,909

5.0%

7,035

5.1%

-22.5%

1.8%

Profit attibutable toowners of parent

6,427

4.3%

5,767

4.2%

5,636

4.1%

-12.3%-2.3%

244.79ー

219.63ー

214.60ーーーEPS (yen)

137,694

YoY

Note: "x. x% " represents the ratio to net sales.

9

In the past three months, net sales, operating income, and income margin were allalmost at the same levels as in the first quarter and exceeded the internal plan,maintaining the upward momentum of 1Q.
Please also refer to pages 10 to 14 for information by quarter.

Results by Business Segment for FY2024/3 2Q (3 months) Reference（million yen）

FY2023/3
2Q Results
Electronic
Component
Information
Equipment

Software

Others

Net sales

7,599

Net sales

8,449

Segment income

400

Net sales

808

Segment income

129

Segment income

Total

134,986

Segment income

Net sales

Net sales
Segment income

FY2024/3
1Q Results

120,015
5.6%

4.7%

4.9%

746

16.0%

-4

6.2%

291

-0.8%

6,994

533

117

5.8%

331

6.2%

6,882

QoQ

-9.2%

2.1%

-22.9%-1.0%

33.4% -28.5%-19.9%

12.3%

-9.0%

－

5.3%

8.7%

6.0%

-18.9%

13.8%

-8.1%

-0.3%

5.0%

-19.4%

-1.6%

18.1%

137,350
5.1%

YoY

2.5% -28.1%

5,488

137,694
5.7%

4.8%

647

5,050
7.8%

5,862
8,664

577

149,458
8,541

5,922

122,549

12,0505,213
408

FY2024/3
2Q Results

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

10

Reference

Results by Company for FY2024/3 2Q (3 months)（million yen）

FY2023/3
2Q Results

Kaga
Electronics

-7.5%

-1.0%

13,69316.3%

12,14615.5%

11,50414.8%-16.0%

-5.3%

5,983

7.1%

5,663

7.2%

4,905

6.3%

-18.0% -13.4%

Net sales

51,005Gross Profit

5,516

10.8%

2,173

4.3%

77,792

QoQ

84,061

48,135Net sales

14,392Gross Profit

1,004

7.0%

403

2.8%

Operating income

Total

78,615YoY

Net sales

Operating income

Excel

FY2024/3
2Q Results

Gross Profit
Operating income

Kaga FEIFY2024/3
1Q Results

50,631

-0.7%

5.2%

4,379

9.1%

5,252

10.4%

-4.8%

19.9%

797

1.7%

1,625

3.2%

-25.2% 103.9%

10,943

8,925

1,014

9.3%

485

4.4%

910
379

4.3%

137,350-9.3% -10.2%-6.0% -21.8%

Net sales

149,458

Gross Profit

20,163

13.5%

17,553

12.7%

17,60712.8%-12.7%

0.3%

8,541

5.7%

6,994

5.1%

6,882

5.0%

-19.4%-1.6%

Operating income

137,694-38.0% -18.4%
10.2%

-8.1%

-0.3%

Note: 1. With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.
2. "x. x% " represents the profit margin.

11

Reference

Effect of M&A for FY2024/3 2Q (3 months)（million yen）

Net Sales

Gross profit / Gross profit margin

All three companies recorded a decrease in net sales
due to a sales decrease in the electronic components business.

-6,268

149,458-373-5,466Gross profit decreased in all three companies due to a sales decrease.

20,163-2,188

16.3%

14.8%

137,350

13.5%

-264

17,607

-93

12.8%

10.4%
10.2%

10.8%
7.0%
2023/3
2Q

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/32Q

2023/3
2Q

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
2Q

SG&A / SG&A ratio

Operating income / Operating income margin

SG&A expenses decreased in Kaga Electronics and Excel due toa sales decrease.

Operating income decreased in both Kaga Electronics and Kaga FEI.
Excel secured last yearʼs income level with improved operating
income margin.

11,621

-832

9.3%

9.0%

6.4%

7.8%

+9

-73

6.5%

10,7257.8%-1,078

7.1%
4.3%

5.4%

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
2Q

-548

6.3%

5.7%

2023/3
2Q

-24

6,882

4.3%

5.0%

Excel

2024/3
2Q

3.2%

2.8%

3.8%
2023/3
2Q

8,541

Kaga
Electronics

Kaga FEIFY2024/3

Note :With respect to gross profit and operating income, figures presented above are before consolidation 12
adjustments between the two companies. For reference, after consolidation adjustments, gross profit
stood at -60million yen, and operating income came to -28million yen.

Financial Highlights: Electronic Component Segment(3 months）
Net sales/Segment income（million yen）//

180000YoY

Net Sales Net Sales

Segment income

 Segment income-12,437million yen

9.2％Down-1,736million yen 22.9％Down

25000

160000140000

Reference

134,986
120,015

122,549

20000

QoQ

120000 Net Sales
10000015000

 Segment income+2,533million yen-60million yen

2.1％Up
1.0％Down

80000

10000

60000

40000

7,599
5.6%

5,922

5,862

4.9%

4.8%

5000

20000

0

0

FY2023/3
2Q Results

FY2024/3
1Q Results

FY2024/3
2Q Results
Note: "x. x% " represents the profit margin.

13

Financial Highlights: Information Equipment Segment(3 months）
Net sales/Segment income（million yen）

14000

Reference

YoY/

Net Sales/

Segment income

 Net Sales+215million yen

 Segment income+133million yen 33.4％Up

2.5％Up

2000

1800

12,050
12000

1600

1400

QoQ

10000

8,664

8,449

 Net Sales
1200

 Segment income

8000-3,385million yen 28.1％Down-212million yen 28.5％Down

1000

746

6000

800

533
4000

6.2%
2000

600

400
6.2%

400

4.7%
200

0

0

FY2023/3
2Q Results

FY2024/3
1Q Results

FY2024/3
2Q Results
Note: "x. x% " represents the profit margin.

14

Factors of Increase / Decrease in Operating Income

vs Internal Plan

YoY
（million yen）

（million yen）

Sales volume & mix +548
SG&A (354)

Sales volume & mix +219
SG&A (147)

18,361▲1,795▲3,592

Sales volume
Sales mix

Spot sales

+708
SG&A

13,876+194+0+2,942

Effect of
Exchange
Rates
（net）

+862

Spot sales SG&A

10,000

Sales volume
Sales mix

13,876+72
Effect of
Exchange
Rates
（net）

Including 400 in provision for loss associatedwith a business partnerʼs filing for insolvency

Including 400 in provision for loss associatedwith a business partnerʼs filing for insolvency

Income Decrease: 4,485

Upside: 3,876

FY2023/3
2Q Results

FY2024/3
2Q Results

FY2024/3
2Q Plan

FY2024/3
2Q Results
15

I will now explain the causes of fluctuation in operating income.
In a year-on-year comparison, operating income decreased by 4.4 billion yen, a largepart of which was accounted for by disappearance of spot sales, which resulted in an
income decrease of 3.6 billion yen. Other causes of the fluctuation were an income
decrease of 1.2 billion yen due to a decrease in sales volume and changes in sales mix,
and an income increase of 0.4 billion yen due to reduced SG&A expenses.
Vis-a-vis the internal plan, the result was 3.8 billion yen higher. This largely consisted of
3.1 billion yen attributable to an increase in sales volume and changes in sales mix, and
0.7 billion yen due to reduction in SG&A expenses.

Balance Sheet Main Items
Total assets

Total liabilities and net assets（million yen）

272,139

286,217（million yen）

290,328

290,328+4,110272,139

286,217+4,110146,720
156,479-9,758

Total liabilities

166,339
233,984

245,572

252,337+6,765Current assets

105,800
38,15540,6452022/32023/337,990-2,6542023/9129,737

143,607+13,869

Total net assets

Non-current assets
2022/32023/32023/916

I will now move on to the balance sheet, starting with assets.
Current assets increased by 6.7 billion yen from the end of the previous fiscal year to252.3 billion yen, due in part to an increase in cash and deposits. Non-current assets
decreased by 2.6 billion yen from the end of the previous fiscal year to 38.0 billion yen,
due notably to amortization and sale of investment securities. Total assets increased by
4.1 billion yen from the end of the previous fiscal year to 290.3 billion yen.
Liabilities decreased by 9.7 billion yen from the end of the previous fiscal year to 146.7
billion yen, due primarily to payments of income taxes payable and accounts payable.
Net assets increased by 13.8 billion yen from the end of the previous fiscal year to 143.6
billion, due partly to an increase in retained earnings.
As a result of the increase in current assets and decrease in current liabilities, thecurrent ratio improved to 215.6%.
The equity ratio improved by 4.1 percentage points from 45.3% at the end of theprevious fiscal year to 49.4%, recovering to the level before the M&A deal to create theKaga FEI Group.

Balance Sheet Main Items
Inventories

Accounts receivable/Accounts payable
110.0

90,00046.1

42.3（ million Yen, day）
50.0

33.7

80,000Inventory turnover

89.0+7,37562,60778.3（ million Yen, day）
A/R turnover

200,000

68.6

30.0

63,58170,000

77.5

60.0

55.8

Inventories

A/P turnover

59.6

10.0

150,000

56,20560,000

10.0

-10.0

120,948

129,099

Notes and A/R

117,752-11,346

50,000

-30.0
-40.0

100,000

40,00086,493-50.0

79,23277,353

Notes and A/P-1,879-90.0

30,000-70.0

50,00020,000-90.0-140.010,000-110.00-130.02022/32023/32023/9Note︓ Inventory turnover ＝ Inventories ÷ Net Sales × 183（day）

0-190.02022/32023/32023/9Notes︓1. ・Notes and A/R are amounts including Electronically recorded monetary claims-operating
2. ・Notes and A/P are amounts including Electronically recorded obligations - operating
3. ・A/R turnover ＝ Notes and A/R ÷ Net sales × 183（day）
4. ・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 183（day）

17

Inventories increased by 7.3 billion yen from the end of the previous fiscal year to 63.5
billion yen, partly due to inventory adjustments by key customers. Inventory turnover
was 42 days, and is on a rising trend. We are strengthening our efforts to reduceinventories by the end of the fiscal year.

Balance Sheet Main Items
Cash and Deposits/Interest Bearing Debt
90,000

0.48

Cash flows（million yen, times）

0.32

0.30

-0.08

-0.14

0.50

D/E ratio

0.10
80,000

0.00

Net D/E ratio-0.50

30,56970,00062,487

Cash flows fromoperating activities

Cash and deposits+9,886

-1.00

9,551

1,155

60,00052,600-1,554-6,772-1.50

51,171-797-4,194-4,805

Cash flows fromfinancing activities

50,00041,051

41,93842,510

-2.00

+571

-15,549

Interest bearing debts

Cash flows frominvesting activities

40,000-2.50

2022/3末

30,000-3.00

2022/32023/32023/9Note︓1. D/E ratio＝ Interest bearing debts ÷ Shareholderʼs equity
2. Net D/E ratio ＝（Interest bearing debts - Cash and deposits） ÷

FY2022/3

2023/3末

FY2023/3

2023/9末

FY2023/9

Shareholderʼs equity

18

Interest-bearing debt stood at 42.5 billion yen, showing no significant change from theend of the previous fiscal year, and the debt-to-equity ratio (D/E ratio) was kept low at
0.3% due to an increase in equity through profit generation.
The balance of cash and deposits increased by 9.8 billion yen from the end of theprevious fiscal year to 62.4 billion yen. As a result of the increase in cash and deposits,
the net D/E ratio stood at negative 0.14%, remaining in the negative as it did at the endof the previous fiscal year. We are working on strengthening our financial foundation in
preparation for the next stage, to build a sound and stronger financial structure.

Forecasts for FY2024/3

Forecasts for FY2024/3（million yen）

FY2024/3
Forecasts

FY2023/3
Results
Net sales

YoY(Announced on May11, 2023)

608,064

550,000-9.5%

Operating income

32,2495.3%

25,0004.5%-22.5%

Ordinary income

32,7395.4%

25,0004.5%-23.6%

Profit attibutable toowners of parent

23,0703.8%

18,0003.3%-22.0%EPS (yen)

878.65685.42

－

ROE

19.6%

13.3%

-6.3ptAnnual dividend (yen)220.00Ordinary dividend
140.00Commemorative dividend 10.00
Extraordinary dividend
70.00

220.00Ordinary dividend

220.00ー

Note: "x. x% " represents the profit margin.

20

Full-year earnings forecasts for the fiscal year ending March 2024
As I mentioned at the opening of this session, in light of the progress made in the firsthalf and the upward trend against the internal plan, we discussed and consideredinternally whether or not to revise the full-year earnings forecasts that we presented at
the beginning of the current fiscal year, namely net sales of 550 billion yen, operating
income and ordinary income of 25 billion yen, and profit of 18 billion yen, and decided
to leave the earnings forecasts, as well as annual dividend of 220 yen, unchanged at thistime in view of the ever-increasing uncertainty about the outlook and also as we would
like to carefully assess the future demand trend.
Based on the full-year earnings forecasts, we anticipate ROE at the end of the current
fiscal year to be 13.3%.
Page 24 and onwards are reference materials containing voluntary disclosure
information by segment in line with the Medium-Term Management Plan, as well as
graphs showing quarterly net sales by segment and by region, and such otherinformation as exchange rates and exchange rate sensitivity. Please do have a look.

Forecasts by Business Segment for FY2024/3（million yen）

FY2024/3
Forecasts

FY2023/3
Results

539,342

Electronic
Component

Net sales
Segment income

28,314

Information
Equipment

Net sales

43,680Software

Others

Total

Segment income

2,449

Net sales

2,998

Segment income
Net sales
Segment income
Net sales
Segment income

286

471,500
5.2%

5.6%

4.4%

2,500

300

5.6%

1,500

25,000

4.6%
31.6%

5.2%

550,000
5.3%

2.1%
50.1%

6.7%

29,0005.0%-26.9%
3.0%

4,500
9.6%

608,064
32,24920,700-12.6%

45,00022,044
1,101

YoY(Announced on May11, 2023)

36.1%
-9.5%

4.5%

-22.5%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

21

Latest 5 years Financial Trends
Operating Income

Net Sales （billion yen）
1H

443.6
230.6

1H

Full-year

422.3
188.8

608.0
495.8

223.0

298.7

Full-year

20.9
10.0
5.2

2020/3 2021/3 2022/3 2023/3 2024/3

11.4

213.21

4.4

2020/3 2021/3 2022/3 2023/3 2024/3（forecasts）（forecasts）

Equity（billion yen）

37.3

38.4

ROE

Equity ratio（billion yen, ％）

30.5
25.7

415.0713.8
8.3

2020/3 2021/3 2022/3 2023/3 2024/3

CF from Operating activities

22.4
18.7

38.8

45.3

49.4

9.5
8.7

2020/3 2021/3 2022/3 2023/3 2023/9
-1.5
-8.3

78.2

90.9

105.6

129.6

143.4

2020/3 2021/3 2022/3 2023/3 2023/9

Cost of Equity（％, times, turns）■Total asset turnover■Financial leverage■Net profit margin

7.6
9.9
7.5

685.42576.4618.3（forecasts）

Free Cash Flow（yen）

878.65

25.0

550.0

275.0

EPS

（billion yen）

32.2

6.6

13.5

15.7

19.6

8.1

7.5

8.1
2.2

1.9

1.9

2.7

2.6

2.6

2.4

2.1

2.7

3.1

3.8

1.3

13.3
10.0
1.9
2.1
3.3

2020/3 2021/3 2022/3 2023/3 2024/3（forecasts）

22

ReferenceSegment disclosure associated with 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
 Sales of PCs and PC
peripherals

Informationequipment

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

Software

Others Production of CG video
and software
 Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods

 Sales of semiconductors

Electronic
components

 Sales of general electronic
components
 Sales of various devices

EMS

 Electronic equipment manufacture
contracting services
 Sales of PCs and PC peripherals
 Sales of home electric appliancesand lighting fixtures

CSI

 Sales of photograph and imaging
products
CSI: Consumer & System Integrator
 Production of CG video and software

Others Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods

24Financial Highlights by Business Segment of
the Medium-Term Management Plan

Reference（million yen）

FY2022/3
2Q Results
Electronic
Component

EMS

Net sales
Segment income
Net sales
Segment income

CSI

Net sales
Segment income

Others

Net sales
Segment income

Total

Net sales
Segment income

144,790
3,948

202,867
2.7%

53,453
3,322

6.2%

4.9%

7.6%

965

1.1%

369

4.9%

18,361

6.7%

1,280

5.4%

375

6.2%

13,876

32.7%
15.1%

4.8%

275,044
6.1%-22.0%
5.7%

7,837

298,760
3.7%

4,143

-31.5%-10.6%

20,715

6,809

223,009
8,300

5,311

8,002

YoY
-9.1%

4.3%

62,122

19,597

6,052
64

11,689FY2024/3
2Q Results

184,368
5.8%

69,486

18,713910

FY2023/3
2Q Results

1.6%
-7.9%

5.0%

-24.4%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

25

Financial Highlights by Business Segment of
the Medium-Term Management Plan (3months)

Reference（million yen）

FY2022/3
2Q Results
Electronic
Component

EMS

CSI

Net sales
Segment income
Net sales

Net sales

8,449

Net sales

Net sales
Segment income

90,115
5.1%

35,6192,698

Segment income
Total

5,148

Segment income

Segment income
Others101,422

400

7.6%

2,433

4.7%

746

7.7%

81

6.2%

6,994

5.6%

533

2.2%

294

6.2%

6,882

QoQ

-7.1%

4.6%

-16.3%

16.6%-14.8%-4.5%-36.7% -29.8%

33.4% -28.5%
2.9%

7.2%

137,350
5.1%

YoY

2.5% -28.1%

4,083

137,694
5.7%

1,709
8,664

3,754
7.3%

4,307

4.6%

30,34812,050149,458
8,541

3,695

FY2024/3
2Q Results

94,253
4.1%

31,7733,967
289

FY2024/3
1Q Results

5.0%

8.8%

1.6% 262.7%
-8.1%

-0.3%

-19.4%-1.6%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

26

Reference

Quarterly Net Sales Trends (3months)

Net Sales（million yen）

149,302
4,178
498
11,147

149,458
5,213
808
8,449

153,460
6,004
768
9,542

Total

155,843
6,647
922
14,540137,694

137,350

5,050
577
12,050

5,488
647
8,664

YoY
QoQ

︓ -12,108
︓
-343

YoY

︓

+274

QoQ

︓

+437

YoY
QoQ

︓
︓

Other

Software133,477

134,986

137,144

133,733

120,015

122,549-160+70

Information equipment
YoY
QoQ

︓
︓

+215
-3,385

Electronic equipment
YoY
QoQ

FY2023/3
1Q Results

FY2023/3
2Q Results

FY2023/3
3Q Results

FY2023/3
4Q Results

FY2024/3
1Q Results

︓ -12,437
︓ +2,533

FY2024/3
2Q Results27Reference

Quarterly Segment Income Trends (3months)

Segment Income（million yen）
Total
YoY
QoQ

9,820
249
564

︓
︓

8,541
408
129
400

Other

7,645
313
39
534

6,242
129
151
949

6,994

6,882

291
746

331
117
533

5,922

5,862

9,018
7,599

-1,659
-111

YoY ︓
QoQ ︓

-77
+40

Software
YoY
QoQ

︓
︓

-11
+122

Information equipment

6,724
4,972

YoY
QoQ

︓
︓

+133
-212

Electronic equipment
YoY
QoQ-1,736-60-4-33
FY2023/3
1Q Results︓︓

FY2023/3
2Q Results

FY2023/3
3Q Results

FY2023/3
4Q Results

FY2024/3
1Q Results

FY2024/3
2Q Results

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

28

Reference

Net Sales by Region (3months)

Net Sales（million yen）
Total

149,302

149,458

5,849
11,228

4,987
12,422

51,98353,761

153,460

155,843

6,298
11,456

6,649
8,571

50,090

YoY
QoQ

︓ -12,108
︓
-343

︓
︓

137,694

137,350

6,662
10,6706,399
12,345

YoY
QoQ

40,66937,796

YoY
QoQ

︓
-77
︓ +1,674

YoY
QoQ

︓ -15,965
︓-2,873

YoY
QoQ

︓
︓

Europe+1,411-263

49,562
North America

Asia

80,240

FY2023/3
1Q Results

78,286FY2023/3
2Q Results

85,614FY2023/3
3Q Results

91,058FY2023/3
4Q Results

79,691

FY2024/3
1Q Results

80,809Japan+2,523+1,117

FY2024/3
2Q Results

29

Exchange Rate/FOREX Sensitivity（Reference）
Effect of 1% change（Million Yen）

Net sales

OperatingincomeForex
Assumptionfor2024/3(yen)141.001,088

17135.00

18.94

19.45

151

12

19.50

THB

3.79

4.05

140

9

3.80

HKD

17.07

18.00

92

2

17.00

EUR

138.73

153.3940.1

140.00

FY2023/3
2Q Results

FY2024/3
2Q Results

（Yen）

（Yen）

USD

133.97

RMB

30

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

This concludes my presentation of our financial results for the first half.
Thank you very much for listening.

■ 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.