November 5, 2020

Summary of Consolidated Financial Results
for the First Half Ended September 30, 2020 [Japan GAAP]
Name of Company:

KAGA ELECTRONICS CO., LTD.

Stock Code:8154

Stock Exchange Listing:Tokyo Stock Exchange, First Section

URL:

https://www.taxan.co.jp/

Representative

Contact Person

Title:

President & COO

Name:

Ryoichi Kado
Managing Director,

Title:

Chief of Administration Headquarters

Name:

Eiji Kawamura

Phone:+81-(0)3-5657-0111

Date of filing of quarterly securities report (tentative):

November 13, 2020

Date of commencement of dividend payment (tentative):

December 4, 2020

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, 2020 –September 30, 2020)(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%

Million yen%

Million yen%

Million yen%

First half ended September 2020

188,859-18.1

4,434 (15.4)

4,338 (21.8)

10,772 207.5

First half ended September 2019230,630

99.9

5,239

5,546

3,502

38.9

Note: Comprehensive income: First half of FY3/2021:11,011 million yen [(351.9%)]

37.0

27.4

First half of FY3/2020: 2,436 million yen [(29.7%)]

Earnings per
share(diluted)

Earnings per
share
Yen

Yen

First half ended September 2020

392.30－First half ended September 2019

127.62－(2) Financial Position (Consolidated)
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2020

209,908

96,16342.1

As of March 31, 2020

207,638

86,25037.7

Reference: Shareholdersʼ equity︓As of September 30, 2020: 88,271 million yen

As of March 31, 2020: 78,284million yen

2. Dividends
Dividend per share

1Q
Fiscal year ended March 2020
Fiscal year ending March 2021
Fiscal year ending March 2021 (Forecast)

2Q

3Q

Year-end

Full year

Yen

Yen

Yen

Yen

Yen

－
－

30.00
30.00

－

40.00

70.00

－

30.00

60.00

Notes: Change in the dividend forecast from the latest announcement: None
Breakdown of year-end dividend for FY3/20: Ordinary dividend: 30.00 yen; Extraordinary dividend: 10.00 yen3. Forecast for the fiscal year ending March 2021 (Consolidated, April 1, 2020 – March 31, 2021)

Net sales
Full year

Operating income

Million yen%

410,000(7.6)

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

7,500 (25.1)%

Million yen%

Yen

7,500 (26.0)

10,00070.9364.18

Note: Change in the forecast from the latest announcement: Yes
With respect to the revision of consolidated performance forecast, please refer to “ Notification of Revisions to
Earnings Forecasts ” announced today (November 5, 2020).

* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in thescope of consolidation): Yes
New: 2 (Company Name)︓EXCEL CO.,LTD. Advanced Display Solutions (HONG KONG) Limited.
Note: For more information, please refer “2. Quarterly Consolidated Financial Statements andMajor Notes (4) Notes to quarterly consolidated financial statements (Changes to principal
subsidiaries in the current consolidated year to date)” on page 12.
(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: None(b) Changes other than (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of September 30, 2020:

28,702,118

As of March 31, 2020:

28,702,118

1,243,638

As of March 31, 2020:

1,243,279(b) Treasury shares
As of September 30, 2020:(c) Average number of shares (quarterly consolidated during the period)
Period ended September 30, 2020:

27,458,682

Period ended September 30, 2019:27,447,183* The quarterly audit procedures by a certified public accountant or auditing firm are not applicable tothis Quarterly 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
26, 2020. Supplementary materials for the earnings briefing will be posted on our website today(Thursday,November 5th). We plan to post a video of the earnings briefing, together with thebriefing materials used on that day, on our website on November 26th.
（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 ......................................................

6(1) Quarterly consolidated balance sheet ..................................................................................

6(2) Quarterly consolidated statements of income and comprehensive income ...............................

8

For the First half (April 1, 2020 - September 30, 2020) ......................................................

8(3) Consolidated statement of cash flows ................................................................................. 10(4) Notes to quarterly consolidated financial statements ............................................................ 12(Notes to going concern assumptions) .............................................................................. 12(Significant change in shareholdersʼ equity) ...................................................................... 12(Changes to principal subsidiaries in the current consolidated year to date） ......................... 12(Additional information） ................................................................................................ 12(Segment information) ................................................................................................... 13－1－

1. Results of Operations(1) Overview of consolidated business performance

The overseas and domestic business environments surrounding the Group in the first halfof the fiscal year ending March 31, 2021 were affected by a slowdown of corporate
activity as lockdowns imposed in countries in response to the global coronavirus outbreak
led to the suspension of operations at some factories in the manufacturing industry.
At the same time, within the Group, the coronavirus outbreak sparked strong growth indemand for PCs for remote work in the Information Equipment business.
Moreover, in the Electronic Components business, EXCEL CO., LTD. (hereinafter,“EXCEL”) was consolidated in April 2020, while sales fell sharply for Fujitsu Electronics Inc.
(hereinafter, “Fujitsu Electronics”) due to the termination of a large sales agency
agreement.
As a result, Group sales fell 18.1% year on year to 188,859 million yen in the first half ofthe fiscal year.
In terms of income, operating income decreased by 15.4% year on year to 4,434 million
yen and ordinary income fell 21.8% year on year to 4,338 million yen. The Groupendeavored to improve operational efficiency and reduce selling, general andadministrative expenses by proactively utilizing remote work and online meetings to makeup for the decrease in gross profit resulting from lower sales. Meanwhile, profit
attributable to owners of the parent increased 207.5% year on year to 10,772 million yen,
far exceeding the amount in the same period of the previous fiscal year, reflecting in parta 7,963 million yen “gain on bargain purchase” associated with the acquisition of EXCEL,
which was recognized as extraordinary income.
FY 2020/3 2Q(April 1, 2019 –FY 2021/3 2Q
YoY(April 1, 2020 –September 30, 2019)

September 30, 2020)（Million yen）

（Million yen）

（Million yen）

Net sales

230,630

188,859(41,771)(18.1)％

Gross profit

23,771

21,641(2,129)(9.0)％（Margin）

10.3%

11.5％

1.2pt

－

SG&A

18,531

17,206(1,324)(7.1)％

Operating income

5,239

4,434

(805)

(15.4)％

Ordinary income

5,546

4,338

(1,207)(21.8)％

Profit before income taxes

5,302

12,126

6,823

128.7％

3,502

10,7727,269

207.5％

108.63Yen

106.92 Yen(1.71)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,
general electronic components and other products, the electronics manufacturingservice (EMS), and other activities)
In this segment, the components sales business saw the effect of higher sales
generated by EXCELʼs consolidation from April 2020, however sales fell sharply due tothe termination in October 2019 of a sales agency agreement that Fujitsu Electronics
had entered into with the US-based Cypress Semiconductor Corporation.
The EMS business maintained steady performance in the medical equipment area, but
was sluggish in the areas of automotive and air-conditioning devices in particular, due
to the impact of the partial suspension of operations and production adjustments atthe overseas plants of both the Company and its customers due to lockdowns
resulting from the coronavirus outbreak.
As a result, net sales decreased by 21.5% year on year to 156,887 million yen, andsegment income decreased by 27.3% year on year to 3,083 million yen.
(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 and imaging products, original brand products, and other products)
In this segment, the home appliance business underperformed due to the impact ofclientsʼ delivery adjustments and other factors, but sales of PCs and PC ancillaryequipment were strong due to an increase in remote work and online classes during
the coronavirus outbreak.
As a result, net sales increased by 16.1% year on year to 23,192 million yen, andsegment income increased by 87.8% year on year to 1,160 million yen.
(c) Software (Production of computer graphics, planning and development of amusement
products, and other activities)
In this segment, sales increased due to a boost in orders as well as front-loadedorders in computer graphics animation and the development of game software as aresult of growing demand sparked by a rise in at-home activities.
As a result, net sales decreased by 4.3% year on year to 1,274 million yen, andsegment income increased by 84.0% year on year to 86 million yen.
(d) Others (Repair and support for electronics equipment, and sales of amusement
equipment and sports goods, and others)
In this segment, the PC and PC peripheral recycling business remained solid, but salesof game equipment for the amusement industry and golf products were slow, due tothe impact of prolonged store closures following stay-at-home advisories fromgovernments.
As a result, net sales decreased by 21.1% year on year to 7,505 million yen, andsegment income decreased by 86.1% year on year to 36 million yen.

－3－

FY 2020/3 2Q

Electronic

Net sales

FY 2021/3 2Q
YoY(April 1, 2019–(April 1, 2020 –September 30, 2019)

September 30, 2020)（Million yen）

（Million yen）

199,818

156,887(42,931)(21.5)％

3,083(1,155)(27.3)％（Million yen）

components

Segment income

4,238

Information

Net sales

19,96823,192

3,223

16.1％

equipment

Segment income

618

1,160

542

87.8％

Software

Net sales

1,332

1,274

(57)

(4.3)％

46

86

39

84.0％

9,510

7,505

(2,005)(21.1)％

259

36

(223)

(86.1)％

230,630

188,859(41,771)(18.1)％

5,239

4,434

(805)

(15.4)％

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, 2020 increased by 2,270 million yen from March 31,
2020, to 209,908 million yen.
Current assets decreased by 1,955 million yen from March 31, 2020, to 172,376 million
yen. This is primarily attributable to an increase of 5,369 million yen in merchandiseand finished goods and offsetting the 7,830 million yen decrease in cash and deposits.
Non-current assets increased by 4,226 million yen from March 31, 2020, to 37,532
million yen. This is largely the result of a 565 million yen increase in software due to thedevelopment of new ERP systems and other, a 2,062 million yen increase in investment
securities, and a 443 million yen increase in deferred tax assets.
Liabilities decreased by 7,643 million yen from March 31, 2020, to 113,745 million yen.
This is primarily due to an increase of 10,501 million yen in short-term loans payable,
offsetting a 15,582 million yen decrease in notes and accounts payable – trade.
Net assets increased by 9,913 million yen from March 31, 2020, to 96,163 million yen,mainly the result of recording 10,772 million yen of profit attributable to owners of theparent.
(b) Cash flows
Cash and cash equivalents as of September 30, 2020 decreased by 11,105 million yen
from March 31, 2020 to 31,588 million yen.
(Operating activities)
Net cash used in operating activities was 7,017 million yen (12,242 million yen provided
in the same period of the previous fiscal year), mainly due to a decrease in notes andaccounts receivable ­ trade and a decrease in notes and accounts payable – trade.
(Investing activities)
Net cash used in investing activities was 2,996 million yen (1,899 million yen used in
the same period of the previous fiscal year), mainly due to payments into time deposits.
(Financing activities)
Net cash used in financing activities was 855 million yen (746 million yen used in the－4－same period of the previous fiscal year), mainly due to the payment of dividends.

(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, 2021 as reported in the “Notification of Revisions to Earnings
Forecasts,” released today. The details are provided below.
1.Consolidated earnings forecasts for the fiscal year ended March 31,2020（from April 1,2020 to March 31,2021）
Net sales

OperatingincomeOrdinary
IncomeProfitAttributable Net income
to owners of Per share
ParentMillion yen

Million yen

Million yen

Million yen(yen)Previous forecast（Ａ）

400,000

5,000

4,500

10,000364.18

Revised forecast（Ｂ）

410,000

7,500

7,500

10,000364.18Differense(Ｂ)－（Ａ)10,000

2,500

3,000

-

-

Percent change（％）

2.5

50.0

66.7

-

-

443,615

10,014

10,1375,852

213.21(Reference)
Results for the fiscal year
Ended March 31,2020

2.Reasons for consolidated earnings forecasts
In the second quarter of the fiscal year ending on March 31, 2021, while sales were still
down significantly compared to the previous fiscal year in the electronic components
segment due to the termination of large commercial rights agreements with somebusiness partners, we are gradually beginning to see signs of a recovery from the impactof the coronavirus outbreak in parts of the manufacturing industry. In addition, in theinformation equipment segment, sales of PC products have remained strong due tohigher demand for remote work and online schooling, while selling, general andadministrative expenses have decreased due to the voluntary suspension of somemarketing activities. As a result of these and other factors, net sales and income havebeen higher than internal forecasts.
In light of these conditions, we have revised our full-year earnings forecasts previously
announced on August 6, 2020. We have raised our net sales forecast by 10 billion yen to
410 billion yen, increased the operating income forecast by 2.5 billion yen to 7.5 billion
yen, and raised the ordinary income forecast by 3 billion yen to 7.5 billion yen. We
maintain a cautious view of the impact on our business environment, given theuncertainties as to when the coronavirus outbreak will subside, and thus at this time ourforecast for profit attributable to owners of parent remains unchanged.
Note: The above forecasts are based on the information currently available to the Company on thedate of release and certain assumptions deemed reasonable. Actual results may vary fromthe forecast for a variety of reasons.

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

First half ended

March 2020

September 2020

(As of March 31, 2020)(As of September 30, 2020)

Cash and deposits

43,38435,554

Notes and accounts receivable – trade85,49587,654

Electronically recorded monetary claims – operating

5,876

4,209

254

326

25,27630,646567

1,108

Raw materials and supplies

6,063

5,974

Other

7,601

7,174

ASSETS
Current assets

Securities
Merchandise and finished goods
Work in process

Allowance for doubtful accounts

(188)

(272)

174,331

172,376

Buildings and structures, net

7,365

7,518

Machinery, equipment and vehicles, net

4,477

4,858

Tools, furniture and fixtures, net

1,060

1,596

Land

4,924

4,924

145

17

17,974

18,915

Total current assets
Non-current assets
Property, plant and equipment

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

322

265

Software

1,743

2,309

190

85

2,256

2,660

Investment securities

8,502

10,564

Deferred tax assets

1,584

2,027

Guarantee deposits

857

984

Insurance funds

894

970

Other

1,791

1,983

Allowance for doubtful accounts

(552)

(572)

13,075

15,957

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets－6－

33,30637,532

207,638

209,908

(Million yen)
Fiscal year ended

First half ended

March 2020

September 2020

(As of March 31, 2020)(As of September 30, 2020)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade70,18854,605

Short-term loans payable

6,540

17,041

Accrued expenses

5,739

5,030

Income taxes payable

1,884

1,134

101

17

Other

9,201

7,800

Total current liabilities

93,65585,631Long-term loans payable

20,833

20,179Deferred tax liabilities

1,378

1,596

Provision for directorsʼ bonuses

Non-current liabilities

Provision for directorsʼ retirement benefits

95

99

Net defined benefit liability

1,969

2,232

Asset retirement obligations

329

355

Other

3,127

3,651

Total non-current liabilities

27,732

28,114

121,388

113,745

Capital stock

12,133

12,133

Capital surplus

13,87813,878

Total liabilities
NET ASSETS
Shareholdersʼ equity

Retained earnings

55,09164,764

Treasury shares(2,005)(2,006)

Total shareholdersʼ equity

79,097

88,770

Valuation difference on available-for-salesecurities

0997

Deferred gains or losses on hedges

280Foreign currency translation adjustment(707)(1,376)

Remeasurements of defined benefit plans

(133)

(119)

Total accumulated other comprehensive income

(812)

(498)

Non-controlling interests

7,965

7,891

Total net assets

86,25096,163

207,638

209,908

Accumulated other comprehensive income

Total liabilities and net assets－7－

(2) Quarterly consolidated statements of income and comprehensive income
For the First half (April 1, 2020 – September 30, 2020)(Million yen)First half ended
September 2019

First half ended
September 2020

(April 1, 2019 –September 30,2019)(April 1, 2020 –September 30, 2020)

Net sales

230,630

188,859

Cost of sales

206,859

167,218

Gross profit

23,771

21,641

Selling, general and administrative expenses

18,531

17,206

Operating income

5,239

4,434

Non-operating income
Interest income

117

62

Dividends income

126

132

Commission fee

147

86

Foreign exchange gains

137

－

Other

212

352

Total non-operating income

740

634

Interest expenses
Share of loss of entities accounted forusing equity method
Foreign exchange losses

156

156

216

284

－

256

Other

61

32

Total non-operating expenses

434

730

5,546

4,338

Gain on sales of non-current assets

171Gain on sales of investment securities

29

39

Gain on bargain purchase

－

7,963

Non-operating expenses

Ordinary income
Extraordinary income

Gain on sale of businesses

127

Settlement received

498

－

1

11

559

8,023

Loss on retirement of non-current assets

3

15

Loss on sales of investment securities

13－

Loss on valuation of investment securities

536

163

Impairment loss

245

－

4

56

Total extraordinary loss

803

235

Profit before income taxes

5,302

12,126

Income taxes - current

1,135

1,107

Income taxes - deferred

317

317

Total income taxes

1,453

1,424

Profit3,848

10,701

Other
Total extraordinary income
Extraordinary loss

Other

－8－

(Million yen)First half ended
September 2019

First half ended
September 2020

(April 1, 2019 –September 30,2019)

Profit attributable to owners of parent(April 1, 2020 –September 30, 2020)

3,502

10,772

Profit attributable to non-controlling interests

346

(70)

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

(423)

994

19

(28)

(986)

(727)

21

13

(42)

57

(1,411)

309

2,436

11,011

2,243

11,085

193(73)

Foreign currency translation adjustment
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－9－(3) Consolidated statement of cash flows(Million yen)First half ended
September 2019
(April 1, 2020 –September 30, 2020)

First half ended
September 2018
(April 1, 2019 –September 30, 2019)
Cash flows from operating activities
Profit before income taxes

5,302

12,126

Depreciation

1,284

1,505

Impairment loss

245－

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

42

56

6

4

29

15

(243)

(363)

156

156

216

284

(15)

(39)

536

163

－

(7,963)

2,979

10,547

4,784

1,835

(497)

1,607

(1,460)(393)(2,095)(21,540)

(269)

(993)

802

285

Interest expenses
Share of (profit) loss of entities accounted forusing equity method
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment
securities
Gain on sale of businesses
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable other
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts
payable - trade
Increase (decrease) in accrued expenses
Decrease (increase) in consumption taxes
refund receivable
Decrease (increase) in other current assets

66

24

Increase (decrease) in other current liabilities

1,201(2,298)Other, net

(159)

(265)

Subtotal

12,913(5,242)

253

203

Interest expenses paid

(164)

(163)

Income taxes paid

(633)

(1,814)(126)－

12,242(7,017)(517)(3,289)Interest and dividend income received

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

1,507

390

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(1,695)(1,290)

181

15

(244)

(691)

(922)

(851)

Proceeds from sales of investment securities

299

204

Short-term loan advances
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Proceeds from cancellation of insurance funds

(550)

(140)

－

2,707

52

6

Purchase of investment securities－10－First half ended
September 2018
(April 1, 2019 –September 30, 2019)
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other payments
Other proceeds
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Increase (decrease) in short-term loans
payableProceeds from long-term borrowings
Repayments of long-term loans payable
Cash dividends paid

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

(26)

(22)

30

9

(53)

(50)

39

5

(1,899)(2,996)

1,165

1,166

161

－

(639)

(639)

(1,233)(1,088)

(201)

(293)

(746)

(855)

(638)

(236)

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
Cash and cash equivalents at beginning of period

8,957(11,105)

32,231

42,693

Cash and cash equivalents at end of period

41,18931,588－11－

(4) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)Not applicable(Significant change in shareholdersʼ equity)
Not applicable(Changes to principal subsidiaries in the current consolidated year to date）
Effective April 1, 2020, as part of the Groupʼs growth strategy, the Company acquired allof the shares of EXCEL and made it a wholly owned subsidiary. As a result, EXCEL ASIANTAIWAN CO.,LTD, EXCEL ELECTRONICS (HONG KONG) LTD., EXCEL INTERNATIONAL
TRADING (SHANGHAI) CO.,LTD., EXCEL SINGAPORE PTE LTD., EXCEL ELECTRONICS
TRADING (SHENZHEN) LTD., Advanced Display Solutions Limited., Advanced Display
Solutions (HONG KONG) Limited., EXCEL ELECTRONICS TRADING(THAILAND)CO.,LTD.、
and ALFA BUS JAPAN CO.,LTD. became indirectly owned subsidiaries of the Company.
Note that EXCEL CO.,LTD. and Advanced Display Solutions (HONG KONG) Limited.
constitutes a specified subsidiary of the Company as the amount of its capital is greaterthan 10% of the amount of the Companyʼs capital.
(Additional information)(Accounting estimates associated with the COVID-19 pandemic)
Accounting estimates such as of impairment of non-current assets and collectability ofdeferred tax assets are made based on information that is available as of September 30,
2020 and do not include significant changes from the financial statement for the previous
consolidated fiscal year. Such accounting estimates assume that the impact of the COVID19 pandemic will continue until March 31, 2021 and that there will be a gradual recovery
from the fiscal year ending March 31, 2022. That being said, since the unprecedented
impact of the COVID-19 pandemic contains elements of uncertainty, differences may arise
between the estimates and subsequent results.

－12－

(Segment information)
I. For the first half ended September 2019 (April 1, 2019 – September 30, 2019)
Information about net sales and income (loss) by reportable segments(Million yen)
Reportable segments
Electronic
componen
ts

Informationequipment

Software

Others

Total

Adjustment

Consolidated(Note 1)

(Note 2)

Net sales:
Sales to externalcustomers

199,818

19,968

1,332

9,510

230,630－

230,630

1,280

428

298

1,659

3,667

(3,667)－201,099

20,396

1,631

11,170234,298(3,667)

230,630

4,238

618

46

259

5,163

76

5,239

Inter-segment
sales ortransfers
Total
Segment income
Notes:

1. Adjustment in segment income of 76 million yen includes 76 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 2020 (April 1, 2020 – September 30, 2020)
Information about net sales and income (loss) by reportable segments(Million yen)
Reportable segments
Electronic
componen
ts

Informationequipment

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.

－13－