May 11, 2023

Summary of Consolidated Financial Results
for the Year Ended March 2023 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:
Representative

KAGA ELECTRONICS CO., LTD.
8154
URL: https://www.taxan.co.jp/
Tokyo Stock Exchange, Prime Market
Title: Representative Director, President & COO
Name: Ryoichi Kado
Title: Executive Officer
Contact Person
Name: Yasuhiro Ishihara
Head of Administration Headquarters
Phone:+81-(0)3-5657-0111
Date of regular general meeting of shareholders: June 27, 2023 (tentative)
Date of commencement of dividend payment:
June 28, 2023 (tentative)
Date of filing of securities report:
June 27, 2023 (tentative)
Supplementary explanatory documents:
Yes
Earnings presentation:
Yes (For institutional investors and analysts)(Yen in millions, rounded down)

1. Financial results for the current fiscal year (April 1, 2022 - March 31, 2023)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Net sales

Operating income

Million yen

Fiscal year ended March 2023
Fiscal year ended March 2022%

608,064
495,827

Million yen

22.6
17.4

Ordinary income%

32,24920,915

Million yen

54.2
82.4

32,73921,456

Note: Comprehensive income: FY ended March 31, 2023: 28,472 million yen [37.2%]
20,745 million yen [47.0%]

Earnings per
share
Yen

Fiscal year ended March 2023
Fiscal year ended March 2022

Earnings per
share(diluted)

Return on
equityYen

878.65576.46%－－%

Profit attributableto owners ofparentMillion yen

52.6
90.9

23,07015,401

%

49.8
35.1

FY ended March 31, 2022:

Ratio ofRatio of operating
ordinary income income to net
to assets
sales
%

19.6
15.7

%

11.7
8.4

5.3
4.2

Ref.: Share of profit/loss of entities accounted for using equity method: FY ended March 2023: 97 million yen FY ended March
2022: (472) million yen(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen

As of March 31, 2023
As of March 31, 2022

Equity ratio

Million yen

286,217272,139

129,737
105,800

Ref.: Shareholdersʼ equity︓FY ended March 2023: 129,608 million yen(3) Cash flow position (Consolidated)

Net assets per share
%

Yen

45.3
38.8

4,935.36
4,026.22

FY ended March 2022: 105,680 million yen

Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

30,569(1,554)(4,805)(6,772)(15,549)
1,155

50,307
39,240Million yen

Fiscal year ended March 2023
Fiscal year ended March 2022

Million yen

Million yen

Million yen

2. Dividends
Dividend per share

1Q

2Q

Yen

Fiscal year ended March 2022
Fiscal year ended March 2023
Fiscal year ending March 2024
(Forecast)

Yen－ 45.00－ 100.00－ 110.00

3Q

Year- end

Yen

Yen

AnnualPayout ratio Dividends/
aggregate (Consolidated
net assets
amount(Consolidated)

Full
year

Yen

Million yen－
75.00 120.00－ 120.00 220.00

3,149
5,777

－ 110.00 220.00

%

%

20.8
25.0

3.3
4.9

32.1

Notes: Breakdown of interim dividend for FY3/2022: Ordinary dividend: 40.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/2022: Ordinary dividend: 40.00 yen; Extraordinary dividend: 35.00 yen
Breakdown of interim dividend for FY3/2023: Ordinary dividend: 70.00 yen; Extraordinary dividend: 30.00 yen
Breakdown of year-end dividend for FY3/2023: Ordinary dividend: 70.00 yen; 55th anniversary commemorative
dividend: 10.00 yen; Extraordinary dividend: 40.00 yen

3. Forecast for the fiscal year ending March 2024 (Consolidated, April 1, 2023 - March 31, 2024)(Percentage figures represent year on year changes)

Net sales
Full year

Million yen

550,000

Operating income
%

(9.5)

Million yen%

25,000 (22.5)

Ordinary income
Million yen%

25,000 (23.6)

Profit attributable Earnings per
to owners of parent
shareMillion yen%

18,000 (22.0)

Yen

685.42

* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) Changes in accounting policies, estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
Note: For more information, please refer “4．Consolidated Financial Statements and Major Notes (5)Notes to consolidated financial statements (Changes to accounting policies)” on page 17.
(3) Number of shares outstanding (common stock)(a) Shares outstanding
As of March 31, 2023:(including treasury shares)

28,702,118 As of March 31, 2022:

28,702,118(b) Treasury shares

As of March 31, 2023:

2,440,983 As of March 31, 2022:

2,454,162(c) Average number of shares
outstanding during the year

As of March 31, 2023:

26,257,182 As of March 31, 2022

26,717,972(Reference) Non-consolidated Financial Results
Financial results for the fiscal year ended March 2023 (April 1, 2022 - March 31, 2023)(1) Result of operations (Non-consolidated)(Percentage figures represent year on year changes)

Net sales

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

Fiscal year ended March 2023

137,522

33.4

6,007

62.7

11,46621.3

12,604

74.9

Fiscal year ended March 2022

103,074

27.8

3,692

109.0

9,454

48.8

7,208

－

Earnings per share
Yen

Earnings per share(diluted)

Yen

Fiscal year ended March 2023

479.99－Fiscal year ended March 2022

269.77－(2) Financial Position (Non-consolidated)
Total assets

Net assets

Million yen

As of March 31, 2023

127,208

Million yen

As of March 31, 2022

117,109

41,11050,431

Ref.: Shareholdersʼ equity Fiscal year ended March 2023: 50,431 million yen
million yen

Equity ratio

Net assets per share
%

Yen

39.6

1,920.21

35.1

1,566.11

Fiscal year ended March 2022: 41,110*The audit procedures by certified public accountant or auditing firm are not applicable to this 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 information about theforecasts, please see “1. Results of Operations (4) Future outlook” on page 6 of Supplementary Information.
(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, May 25, 2023.
Supplementary materials for the earnings briefing will be posted on TDnet and our website today(Thursday, May 11th). We plan to post a video of the earnings briefing, together with the briefing materials
used on that day, on our website on May 25th.
（Japanese）https://www.taxan.co.jp/jp/ir/event/event_01.html（English） https://www.taxan.co.jp/en/ir/event/event_01.html

Index for Supplementary Information
1. Results of Operations ................................................................................................................. 2(1) Overview of consolidated business performance ..................................................................... 2(2) Overview of financial condition.............................................................................................. 5(3) Cash flows ......................................................................................................................... 5(4) Future outlook .................................................................................................................... 6(5) Basic policy for earnings allocations and dividends in the current and next fiscal years ................ 6
２．Management policies, operating environment, and challenges to address ....................................... 7(1) Philosophy .......................................................................................................................... 7(2) Medium-Term Management plan 2024 ................................................................................... 7
3. Basic Approach to the Selection of Accounting Standards .............................................................. 8
4. Consolidated Financial Statements and Major Notes ....................................................................... 9(1) Consolidated balance sheet .................................................................................................. 9(2) Consolidated statements of income and comprehensive income .............................................. 11(3) Consolidated statement of changes in equity ........................................................................ 13(4) Consolidated statement of cash flows .................................................................................. 15(5) Notes to consolidated financial statements ........................................................................... 17(Notes to going concern assumptions) .................................................................................. 17(Changes to accounting policies) ......................................................................................... 17(Additional information) ...................................................................................................... 17(Segment information, etc.) ................................................................................................. 17(Per-share information) ..................................................................................................... 20(Subsequent events) ......................................................................................................... 20-1-

1. Results of Operations(1) Overview of consolidated business performance
During the consolidated fiscal period under review, the Japanese and overseas economic conditions
surrounding the Group showed a gradual recovery. The relaxation of COVID-19 restrictions on movement
normalized economic activity, and semiconductor shortages and supply chain disruptions eased. Meanwhile,amid rising food and energy prices due to the prolonged Russia–Ukraine conflict, conditions remain
uncertain partly owing to sharp changes in exchange rates and financial system instability resulting fromhigher policy rates as anti-inflation measures.
In the U.S. and Europe, personal spending generally remained strong, but high inflation and monetary
tightening have led to financial institution failures and other growing concerns about the future. In China,
although the country has been affected by its zero-COVID policy, there were signs of a pickup in personal
spending following the lifting of the policy. In Japan, despite concerns about the impact of rising commodity
prices due to the weak yen and price hikes in energy resources and grains, the economy recovered
gradually as economic activities began to return to normal.
In the electronics industry to which the Group belongs, supply shortages and extended lead times, which
had continued to affect some semiconductors and electronic components, were generally resolved, anddemand remains robust in a wide range of industries.
Under the management environment, in the electronic components business, which is the Groupʼs corebusiness, primarily in automotive and medical equipment applications, sales in both the component sales
business and the EMS business grew significantly.
In the information equipment business, the Company saw growth in sales of high-end PC products andsecurity software, as well as in the LED installation business.
In the software business, orders for smartphone game development and computer graphics production
recovered.
In other businesses, the recycling business for PC products and other products remained solid.
As a result, sales increased in all business segments, and the Groupʼs net sales in the fiscal year underreview totaled 608,064 million yen, up 22.6% year on year.
Operating income increased by 54.2% year on year to 32,249 million yen due to a significant increasein gross profit resulting from higher net sales and improved gross profit margin. Ordinary income increasedby 52.6% year on year to 32,739 million yen and profit attributable to owners of parent increased by
49.8% to 23,070 million yen. The Company achieved record highs in net sales for the second consecutive
year, operating income and ordinary income for the fourth consecutive year, and profit attributable toowners of parent for the third consecutive year.
（*）Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis

FY 2022/3

FY 2023/3

YoY(April 1, 2021 –March 31, 2022)(April 1, 2022 –March 31, 2023)（Million yen）

（Million yen）

608,064

112,237

Gross profit（Margin）

60,54712.2％

78,51412.9％

17,967
0.7pt

22.6％
29.7％
－

SG&A

39,632

46,265

6,633

16.7％

Operating income

20,91532,24911,334

54.2％

Ordinary income

21,45632,73911,283

52.6％

Profit before income taxes

21,34832,46011,111

52.1％

Profit attributable to owners ofparent15,401

23,070

7,669

49.8％

EPS (yen)

576.46878.65302.19

－

ROE

15.7%

19.6%

3.9pt

－

112.38135.47

23.9－

Net sales

495,827

Exchange Rate

(Average rate during the year)

USD

(yen)

-2-

（Million yen）

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors, general electronic
components and other products, the electronics manufacturing service (EMS*), and other activities)
In this business, the component sales business attracted a high level of sales in a broad range ofindustries, in part due to the improved supply/demand conditions for semiconductors and electronic
components from the second half of the fiscal year, which remained tight. Some products forautomotive-related applications are facing supply shortages, but the Company mobilized its abilities
and secured sales volume by using its strength in procurement capabilities as an independent trading
company as well as proposing alternative products.
In the EMS business, sales in the automotive sector grew significantly and sales to key customers inapplications related to medical and office equipment remained strong. The yen has been weak since
the start of the fiscal year, and this pushed up revenue on a yen basis.
As a result, net sales increased 24.3% year on year to 539,342 million yen and segment income
increased 56.4% year on year to 28,314 million yen.
(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph andimaging products, original brand products, and other products)
In this business, sales of PCs for corporations and educational institutions were sluggish on a unit
basis due to the prolonged replacement cycle but performed well on a value basis thanks to sales ofhigh-end products. Sales of PC peripheral products such as security software also remained solid. In
the LED installation business, the installation of large-scale nationwide projects, which had been delayed
due to material shortages, made steady progress and contributed significantly to operating revenue.
As a result, net sales increased 10.3% year on year to 43,680 million yen and segment income
increased 17.4% year on year to 2,449 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products, andother activities)
In this business, orders for large-scale and new projects in smartphone games development andcomputer graphics production recovered, and the profitability of the business improved as a result ofprogress in cost reductions.
As a result, net sales increased 8.3% year on year to 2,998 million yen and segment income was
286 million yen (segment loss was 26 million yen in the same period of the previous year).
(d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement
equipment, and sales of sports goods, and other activities)
In this business, the PC and PC peripheral recycling business was strong. In addition, sales of gameequipment for the amusement industry in Japan and overseas as well as golf products were robust, inpart due to the relaxation of restrictions on movement during the pandemic.
As a result, net sales increased 12.5% year on year to 22,044 million yen and segment income
increased 76.0% year on year to 111 million yen.

< Financial Results by Business Segment >Electronic
components

Net sales
Segment income

Informationequipment

Net sales
Segment income

FY 2022/3

FY 2023/3(April 1, 2021 –March 31, 2022)(April 1, 2022 –March 31, 2023)（Million yen）

（Million yen）

433,852
18,10739,6162,085

539,342
28,314

YoY（Million yen）

105,489
10,206

24.3％
56.4％

43,680
4,063
10.3％
2,449
363
17.4％
Software
Net sales
2,767
2,998
230
8.3％
Segment income
(26)
286
313
－
Others
Net sales
19,59022,0442,453
12.5％
Segment income
626
1,101
475
76.0％
Total
Net sales
495,827
608,064
112,237
22.6％
Segment income
20,91532,24911,33454.2％
Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total.
<Reference>Financial results

-3-

①

Financial highlights(3months)
FY 2022/3 4Q(3months)

YoY(January 1, 2022 –March 31, 2022)(January 1, 2023 –March 31, 2023)（Million yen）

（Million yen）

（Million yen）

Net sales

143,143

155,843

12,6998.9％Gross profit

17,786

18,630844

12.0％(0.4pt)4.7％（Margin）

12.4％

SG&A

11,52912,387858

7.4％

Operating income

6,257

6,242

(14)

(0.2％)

Ordinary income

6,569

6,121

(448)

(6.8％)

Profit before income taxes

6,641

5,325

(1,316)(19.8％)

4,986

4,017

(969)

(19.4％)FY 2022/3 4Q(3months)

FY 2023/3 4Q(3months)

Profit attributable to owners ofparent②

FY 2023/3 4Q(3months)－

By segment

Electronic
Components

Net sales
Segment income

YoY(January 1, 2022 –March 31, 2022)(January 1, 2023 –March 31, 2023)（Million yen）

（Million yen）

（Million yen）

122,440

133,733

11,292

9.2％

5,105

4,972

(133)

(2.6％)

13,315

14,540

1,224

9.2％

Information

Net sales

Equipment

Segment income

869

949

80

9.2％

Software

Net sales

926

922

(4)

(0.5％)

83

151

68

82.1％

6,460

6,647

186

2.9％

152

129

(22)

(15.0％)

143,143

155,843

12,699

8.9％

6,257

6,242

(14)

(0.2％)

Segment income
Others

Net sales
Segment income

Total

Net sales
Segment income

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

(2) Overview of financial condition-4-

Assets, liabilities and net assets
Total assets as of March 31, 2023 increased by 14,077 million yen from the previous fiscal year-end
to 286,217 million yen.
Current assets increased by 11,587 million yen compared to the end of the previous fiscal year, to245,572 million yen. This was primarily due to a 11,549 million yen increase in cash and deposits.
Non-current assets increased by 2,490 million yen compared to the end of the previous fiscal year, to40,645 million yen. This was primarily due to a 1,830 million yen increase in investment securities.
Liabilities decreased by 9,859 million yen compared to the end of the previous fiscal year, to 156,479
million yen. This was primarily due to a 7,260 million yen decrease in Notes and accounts payable trade and a 4,273 million yen decrease in Short-term loans payable.
Net assets increased by 23,937 million yen from March 31, 2023, to 129,737 million yen. This wasprimarily due to a 18,522 million yen increase in retained earnings and a 4,128 million yen increase inforeign currency translation adjustment due to 23,070 million yen in profit attributable to owners ofparent.
(3) Cash flows
Cash and cash equivalents as of March 31, 2023 increase 11,066 million yen from March 31, 2022 to50,307 million yen.
(Operating activities)
Net cash provided by operating activities was 30,569 million yen (1,554 million yen used in theprevious fiscal year) mainly due to the posting of profit before income taxes.
(Investing activities)
Net cash used in investing activities was 4,805 million yen (6,772 million yen used in the previous
fiscal year) mainly due to purchase of property, plant and equipment.
(Financing activities)
Net cash used in financing activities was 15,549 million yen (1,155 million yen provided by theprevious fiscal year) mainly due to Repayments of long-term loans payable and Cash dividends paid.

(4) Future outlook-5-In the fiscal year ending in March 2024, the Japanese and overseas economic conditions surrounding
the Group will remain unpredictable, partly due to rising prices of resources and other commodities
stemming from the prolonged conflict in Ukraine and financial system instability accompanying monetary
policy action to hike interest rates, despite socioeconomic activities moving closer to normal following theeasing of COVID-19 restrictions and the progress of infection control measures.
In the electronics industry to which the Group belongs, in the medium to long term, the Company
continues to maintain that demand is expected to grow with advancements in automotive technologies
represented by electronic vehicles and CASE (Connected, Autonomous, Shared & Services, Electric), as
well as technical functionality of ICT in areas such as 5G (fifth-generation wireless network technology),
IoT, and AI. However, it will still take time for the tight supply/demand conditions for some semiconductors
and electronic components in automotive applications to ease. In addition, a temporary decline in demand
for semiconductors and electronic components is projected, partly due to a backlash from the substantial
increase in demand during the COVID-19 pandemic and inventory adjustments by customers due to therisk of economic recession.
Based on these assumptions and in line with the basic policies of Medium-Term Management Plan 2024,
the Group will reinforce profitability by focusing on markets in which high growth and profitability are
expected. While pursuing further efficiency and soundness, we strive to strengthen the Groupʼsmanagement foundation. We will also continue to pursue SDGs management, aiming for a balance
between solutions to social issues and sustainable growth as a company.
As a result of these factors, we expect net sales to total 550 billion yen, operating and ordinary
income to amount to 25 billion yen, and profit attributable to owners of parent to be 18 billion yen in
the fiscal year ending in March 2024.
(5) Basic policy for earnings allocations and dividends in the current and next fiscal years
The Company views the return of profits to shareholders as one of its most important management
policies, and in addition to endeavoring to strengthen its financial position and management foundationfrom a long-term perspective, it has the basic policy of maintaining stable and ongoing dividends to allshareholders with due consideration to consolidated earnings.
For its year-end dividend for the fiscal year ended on March 31, 2023, the Company plans to pay 120
yen per share (70 yen ordinary dividend + 10 yen 55th anniversary commemorative dividend + 40 yen
extraordinary dividend), which we previously forecasted (February 7, 2023). The annual dividend,
including the interim dividend of 100 yen per share (70 yen ordinary dividend + 30 yen extraordinary
dividend) already paid in November of last year, will be 220 yen per share, which is an increase of 100
yen from the 120 yen per share in the previous fiscal year.
For the fiscal year ending March 31, 2024, a dividend of 220 yen per share (110 yen for both interim
and year-end dividend) is planned.

-6-2. Management policies, operating environment, and challenges to address(1) Philosophy①Corporate Philosophy: Everything we do is for our customers②Vision:Aim to be “Japanʼs No. 1 corporate group in the industry”
Aim to become a competitive “world-class company”③Action Guidelines: “F.Y.T. (Fight)” (Flexibility, Young at heart, Try)
“3G” (General, Global, Group)“KAGA-ism” (Management mindset, sales mindset, and readiness as amember of society)
Since its founding, the Company has been expanding its business fields by responding to customersʼ
diverse needs under the corporate philosophy that “Everything we do is for our customers.” Startingwith the sale of electronic parts and semiconductors leveraging its strengths as an independent
trading company, the Company now provides a wide array of services both domestically and overseas
as an electronics trading conglomerate, including its electronics manufacturing service (EMS) businessspecializing in high-mix, small-lot production, as well as planning, development, and engineering
support for customersʼ products; software and video production; network solutions; and system
support.
At the same time, the Companyʼs business environment is changing at an accelerating pace, withreorganization and consolidation of semiconductor and device manufacturers as well as reviews toagency policies on the supplier side, along with the shifting of finished-product assembly overseas,
demand changes and price fluctuations in both the domestic and overseas markets, and responses
to global environment problems as exemplified by decarbonization on the customer side. The
Company recognizes that competition in the electronics trading industry, where there are still
numerous competing companies, will become even more intense in the future.
(2) Medium-Term Management Plan 2024
The Company formulated Medium-Term Management Plan 2024 in November 2021 to present theGroupʼs path toward growth over the next three years. Under this plan, the Company will continue
to thoroughly implement “profit-focused management” while carrying out measures in line with thefollowing basic policies to achieve its vision of becoming “Japanʼs No. 1 corporate group in the industry”
and “a competitive world-class company.”①Basic Policy1）Further Reinforcement of Profitability
Predicting the era to focus on markets with potential for high growth and profitability2）Reinforcement of Management Base
Pursuit of further efficiency and soundness, and transformation to a Group managementfoundation worthy of "Japanʼs No. 1 corporate group in the industry"3）Creation of New Businesses
Active use of venture investments and M&As to create new businesses and strengthen
resistance to change in the external environment4）Promotion of SDGs Management
Promotion of management that seeks to achieve solutions to social issues and sustainablegrowth as a company-7-

②Management targets
After the start of the plan, in the fiscal year ended March 2023, the first year of the plan, theCompany achieved all KPI targets for net sales, operating income, and ROE two years ahead ofschedule for the final year of the plan, excluding new M&A targets, as a result of demonstrating theGroupʼs procurement advantages to the fullest extent amid the continuing global shortage ofsemiconductors and electronic components. Looking at the future prospects, the Company is
expecting a scenario in which the economy will be on a recovery track and return to a sound growthphase from the fiscal year ending March 2025, while factoring in the impact of recession risk andtemporary inventory adjustments by customers, and other effects in the fiscal year ending March
2024. Given the circumstances in which rapid changes in the electronics industry to which the Groupbelongs, and current fluctuations in business performance affected by these changes, which were notanticipated when the plan was formulated, the Company has updated the management targets forthe final year of the plan.
The management targets to be achieved by the fiscal year ending on March 31, 2025, which willbe the final year of the medium-term management plan, are as follows.
1） Net sales:

750 billion yen ・・・・・・・・・・・・・・・・・・・ In addition to 600 billion yen in organic growth, theCompany will aim to generate 150 billion yen throughmeasures such as new mergers and acquisitions.
2） Operating income:30 billion yen or higher ・・・・・・・・・・・ The Company expects the economy to be on a recovery
track and return to a sound growth phase from the fiscal
year ending March 2025, while factoring in the impact ofrecession risk and temporary inventory adjustments bycustomers, and other effects in the fiscal year ending
March 2024.
3） ROE:
10% or higher ・・・・・・・・・・・・・・・・・・・・ Keeping shareholdersʼ equity costs (approximately 7-8%)
in mind, the Company will aim to maintain a stable level of
10% or higher.

3. Basic Approach to the Selection of Accounting Standards

The KAGA ELECTRONICS Group prepares consolidated financial statements based on Japanese

accounting standards. Going forward, we will consider adopting IFRS standards with due consideration
to financial market trends, share of foreign investors, and the organizational costs resulting from theadoption of IFRS standards.

-8-

4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)
FY 2022/3(As of March 31, 2022)

FY 2023/3(As of March 31, 2023)

Cash and deposits

41,05152,600Notes receivable – trade
Electronically recorded monetary claims operating
Accounts receivable – trade

1,449

1,534

9,258

9,683

110,240

117,881264

195

Merchandise and finished goods

46,23041,375Work in process

2,363

2,277

ASSETS
Current assets

Securities

Raw materials and supplies

14,013

12,552

Other

9,388

7,624

Allowance for doubtful accounts

(275)

(153)

233,984

245,572

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

15,033

15,680(8,108)(8,990)

6,925

6,690

14,181

16,187(8,132)(9,721)

6,048

6,466

Tools, furniture and fixtures

5,697

5,880

Accumulated depreciation(4,667)(4,777)

1,030

1,103

5,074

5,859

313

39

19,393

20,158Goodwill

98

48

Software

3,021

2,617

42

36

3,163

2,702

Investment securities

10,313

12,144

Deferred tax assets

2,189

2,162

Guarantee deposits

1,068

1,280

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets

Insurance funds

915

920

Distressed receivables

2,295

4,842

Other

1,171

1,298

Allowance for doubtful accounts(2,355)(4,864)

Total investments and other assets

15,59817,784

Total non-current assets

38,15540,645272,139

286,217

Total assets-9-

(Million yen)
FY 2022/3(As of March 31, 2022)

FY 2023/3(As of March 31, 2023)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

86,493

79,232

Short-term loans payable

23,85819,585

Accrued expenses

7,138

8,400

Income taxes payable

2,834

6,011

Provision for directors’ bonuses

301

465

Other

12,291

13,852

Total current liabilities

132,918

127,547－

10,000Long-term loans payable

25,136

10,600

Deferred tax liabilities

2,046

2,634

123

143

Net defined benefit liability

2,095

2,148

Asset retirement obligations

572

627

Non-current liabilities
Bonds payable

Provision for directors’ retirement benefits

Other

3,446

2,778

Total non-current liabilities

33,421

28,932

166,339

156,479

Capital stock

12,133

12,133

Capital surplus

14,81814,820Retained earnings

77,423

95,945

Treasury shares(5,643)(5,614)

Total shareholders’ equity

98,732

117,285

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

1,299

2,534

(2)

(18)

Foreign currency translation adjustment

5,439

9,568

Remeasurements of defined benefit plans

210

239

Total accumulated other comprehensive
income6,948

12,322120

129

105,800

129,737

272,139

286,217

Total liabilities
NET ASSETS
Shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2022/3(April 1, 2021 –March 31, 2022)
Net sales
Cost of sales

FY 2023/3(April 1, 2022 –March 31, 2023)

495,827
435,280

608,064
529,550

60,547
39,63278,51446,265

20,91532,249

135
195

211
279

－

97

183
252
104
572
1,443

227
107
126
412
1,461

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on transfer of business
Gain on revision of retirement benefit plan
Reversal of estimated losses associated withfund leakage incident that involved ourAmerican subsidiary
Other

315
472
114
902

748
－
223
971

21,45632,739

15
363
7
－

20
626
－
126

176

－

Total extraordinary income
Extraordinary loss
Impairment loss
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Provision of allowance for doubtful accounts
Other
Total extraordinary loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit

34

1

596

774

93
13
2
260

644
37
12
348

175

－

129
29
705
21,348
5,071
606
5,678
15,669－11
1,054
32,460
9,197
167
9,365
23,094

Profit attributable to owners of parent
Profit attributable to non-controlling interests

15,401
268

23,07023

Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Share of profit of entities accounted forusing equity method
Commission fee
Foreign exchange gain
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss from equity method investments
Other
Total non-operating expenses- 11 -

(Million yen)
FY 2022/3(April 1, 2021 –March 31, 2022)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

FY 2023/3(April 1, 2022 –March 31, 2023)
(78)

1,235

(52)

(16)

Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method

4,922

4,033

188

28

95

97

Total other comprehensive income

5,075

5,378

20,74528,472

20,42828,445316

26

Comprehensive income
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests- 12 -

(3) Consolidated statement of changes in equity
For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Shareholdersʼ equity
Capitalstock
Balance at the beginning of current
periodCapitalsurplus12,133Retainedearnings

14,32764,568Cumulative effects of changes inaccounting policies
Restated balance

TreasurysharesTotalshareholdersʼ
equity(1,984)89,045

7
12,133

14,32764,576

7(1,984)89,053

Changes of items during period
Dividends of surplus(2,554)(2,554)

Profit attributable to owners ofparent15,401

15,401

Purchase of treasury shares
Disposal of treasury shares(3,681)(3,681)22

30

8Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholdersʼ equity

481

481

Total changes of items during period－

490

12,847(3,658)

9,678

Balance at the end of current period

12,133

14,81877,423(5,643)98,732

NonTotalaccumulated controllinginterests
othercomprehensi
ve income

Total
net
assets

Accumulated other comprehensive income

Balance at the
beginning of current
periodCumulative effects
of changes inaccounting policies
Restated balance
Changes of items
during period
Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes of
items other thanshareholdersʼ
equityTotal changes of
items during period
Balance at the end ofcurrent period

Valuationdifference on Deferredgains oravailable-for- lossesonsalehedgessecurities
1,378

1,378

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

470

21

50

50

470

21

1,921

1,921

4,095

95,062

1

8

4,096

95,071(2,554)
15,401(3,681)
30

481

(79)

(53)

4,969

189

5,026

(3,976)

1,050

(79)

(53)

4,969

189

5,026

(3,976)

10,728

1,299

(2)

5,439

210

6,948

120

105,800- 13 -

For the fiscal year ended March 2023 (April 1, 2022 – March 31, 2023)(Million yen)
Shareholdersʼ equity
Capitalstock
Balance at the beginning of current
periodCapitalsurplus12,133Retainedearnings

14,81877,423Adjustment of hyperinflation

TreasurysharesTotalshareholdersʼ
equity(5,643)98,732

45

Balance at the beginning of current
period reflecting the adjustment ofhyperinflation

12,133

14,81877,46945(5,643)

98,778Changes of items during period
Dividends of surplus(4,594)(4,594)

Profit attributable to owners ofparent23,07023,070Purchase of treasury shares
Disposal of treasury shares

10

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholdersʼ equity

(3)

(3)

32

43

△8

(8)

Total changes of items during period－

218,47629

18,507

Balance at the end of current period

12,133

14,82095,945(5,614)

117,285

Total
Nonaccumulated controlling
otherinterests
comprehensi
ve income

Total
net
assets

Accumulated other comprehensive income

Balance at the
beginning of current
periodAdjustment ofhyperinflation
Balance at the
beginning of current
period reflecting theadjustment ofhyperinflation
Changes of items
during period

Valuationdifference on Deferredavailable-for- gains orlosses on
salehedgessecurities
1,299

(2)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

5,439

210

6,948

120

45

1,299

(2)

5,439

210

6,948

120

Dividends of surplus
Profit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesChange in ownershipinterest of parent
due to transactions
with non-controllinginterests
Net changes of
items other thanshareholdersʼ equity
Total changes of
items during period
Balance at the end ofcurrent period

105,800

105,846(4,594)23,070
(3)
43

(8)

1,234

(16)

4,128

28

5,374

9

5,383

1,234

(16)

4,128

28

5,374

9

23,891

2,534

(18)

9,568

239

12,322

129

129,737- 14 -

(4) Consolidated statement of cash flows(Million yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in net defined benefit
liability
Increase (decrease) in provision for
directors’ retirement benefits
Increase (decrease) in provision for
directors’ bonuses
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted
for using equity method
Loss(gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment
securities
Loss (gain) on valuation of investment
securities
Reversal of estimated losses associatedwith fund leakage incident that involved ourAmerican subsidiary
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable - trade
Decrease (increase) in accounts receivable- other
Increase (decrease) in accrued expenses
Decrease (increase) in advance payments
Decrease (increase) in consumption taxes
refund receivable
Decrease (increase) in other current assets
Increase (decrease) in other current
liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating
activities- 15 -FY 2022/3

FY 2023/3(April 1, 2021 –(April 1, 2022 –March 31, 2022)

March 31, 2023)

21,348
3,738
93
110

32,460
4,000
644
54

16

(33)

16

20

175

163

92

2,358

(403)
315

(490)
748

472

(97)

(14)
13

(8)
37

(360)

(614)

260

348

(187)

－

(7,889)(5,952)(22,088)

9,316

2,451

(11,503)

583

2,239

887
1,349

994
(417)

(822)

2,340

(264)

(741)

2,030

393

797
2,723
124
(315)
(4,263)
175

922
37,183491(732)(6,372)－(1,554)30,569(Million yen)
FY 2022/3

FY 2023/3(April 1, 2021 –March 31, 2022)(April 1, 2022 –March 31, 2023)

Cash flows from investing activities
Payments into time deposits

(856)

(397)

Proceeds from withdrawal of time deposits

474－

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(3,276)(3,691)32

34(1,377)(467)

Purchase of investment securities
Proceeds from sales of investment
securities
Payments of short-term loans receivable(1,085)

(750)

834

1,102

(388)

(421)

Long-term loan advances(1,180)(7)

Purchase of insurance funds

(4)

(4)

Payments for guarantee deposits
Proceeds from collection of guarantee
deposits
Other payments

(28)

(103)

65

37

(174)

(170)

Other proceeds

194

33

Net cash provided by (used in) investing
activities(6,772)(4,805)

Cash flows from financing activities
Increase (decrease) in short-term loans
payableProceeds from long-term borrowings

7,636(5,555)

5,000

500

Repayments of long-term loans payable(668)(15,040)

Proceeds from issuance of bonds
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Purchase of treasury shares

－

9,945

(3,811)(21)(3,681)(2)

Cash dividends paid

(2,551)(4,590)

(767)

(784)

1,155

(15,549)

2,079

852

(5,092)

11,06644,33339,24039,24050,307

Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period- 16 -

(5) Notes to consolidated financial statements(Notes to going concern assumptions)Not applicable(Changes to accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Implementation Guidance No. 31, June 17, 2021, hereinafter referred to as ASBJ Guidance No. 31)
is applied from the start of the first quarter of the consolidated fiscal year under review. In
accordance with the transitional treatment set forth in Article 27-2 of the ASBJ Guidance No. 31,
the Company will continue to apply the new accounting policies prescribed by ASBJ Guidance No.
31 into the future. The effect of this application on the consolidated financial statements isimmaterial.
(Additional information)(Application of the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing
System)The Company and some of its domestic consolidated subsidiaries have transitioned from theconsolidated taxation system to the group tax sharing system with effect from the consolidated
fiscal year under review. Accordingly, accounting treatment and disclosure of corporation tax, local
corporation tax and tax effect accounting are conducted pursuant to “the Practical Solution on the
Accounting and Disclosure Under the Group Tax Sharing System” (Practical Solution No. 42, August
12, 2021; hereinafter referred to as “Practical Solution No. 42”). Based on the provisions ofParagraph 32 (1) of Practical Solution No. 42, we see no impact from the change in accounting
policy associated with application of Practical Solution No. 42.
(Segment information, etc.)
a. Segment information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available
and regular evaluation by the Company’s management is being performed in order to decide how
resources are allocated among the Group. The Company classifies subsidiaries and associates
according to their products and services, and implements comprehensive strategies in Japan andoverseas. Consequently, the Group has four reportable segments that are made of different
categories of products and services: electronic components, information equipment, software andothers. The electronic components segment includes the development, manufacture and sale ofsemiconductors, general electronic components and other products, the electronics manufacturingservice (EMS), and other activities. The information equipment segment includes sales of PCs, PC
peripherals, home electric appliances, photograph and imaging products, original brand products,
and other products. The software segment includes the production of computer graphics, planningand development of amusement products, and other activities. The others segment includes therepair and supports for electronics equipment, and sales of amusement equipment and sports goods,
and others.

- 17 -

2. Information about net sales, profit (loss), assets, and other items is as follows:
For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)
Reporting segments
Electronic

Information

components equipment
Net sales:
Sales to externalcustomers
Inter-segment
sales or transfers

Software(Million yen)

Adjustment Consolidated

Others

Total

*1

*2

433,852

39,616

2,767

19,590495,827－

495,827

2,733

5,402

855

6,265

15,257(15,257)－

Total

436,586

45,0193,623

25,855

511,085(15,257)

495,827

Segment income

18,107

2,085

(26)

626

20,792

122

20,915

Segment assets

250,460

20,435

1,612

11,707284,214(12,074)

272,139

Depreciation

2,237

54

53

136

2,481

(10)

2,471

Increase inproperty, plant andequipment andintangible assets

4,362

121

24

146

4,654

－

4,654

OthersFor the fiscal year ended March 2023 (April 1, 2022 – March 31, 2023)
Reporting segments
Electronic

Information

components equipment
Net sales:
Sales to externalcustomers
Inter-segment
sales or transfers

Software(Million yen)

Adjustment Consolidated

Others

Total

*1

*2

539,342

43,6802,998

22,044

608,064－

608,064

3,508

7,255

968

7,957

19,689(19,689)－

Total

542,850

50,9353,966

30,001

627,754(19,689)

608,064

Segment income

28,314

2,449

286

1,101

32,152

97

32,249Segment assets

265,302

22,7652,033

13,876

303,978(17,761)

286,217

3,529

105

41

337

4,014

(14)

4,000

60

62

310

4,162

(2)

4,159

OthersDepreciation

Increase inproperty, plant and3,728
equipment andintangible assets
Note: 1. The adjustment is as follows:(1) Segment income(Million yen)
Fiscal year ended March2022

Fiscal year ended March
2023

Elimination of inter-segment

122

97

Total

122

97

- 18 -

(2) Segment assets(Million yen)
Fiscal year ended March2022

Fiscal year ended March
2023(14,176)(19,823)

2,101

2,062

(12,074)(17,761)

Elimination of inter-segment
Corporate *Total* Total corporate assets principally consist of surplus funds of the Company under management(cash and securities, etc.).
(3) Depreciation(Million yen)
Fiscal year ended March2022

Fiscal year ended March
2023

Elimination of inter-segment

(10)

(14)

Total

(10)

(14)

(4) Increase in property, plant and equipment and intangible assets(Million yen)

Fiscal year ended March2022

Fiscal year ended March
2023

Elimination of inter-segment

－

(2)

Total

－

(2)

2. Segment income is adjusted with operating income on the consolidated statements of income andcomprehensive income.
b. Associated information
For the fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)
Geographic information
Net sales
Japan

North America

EuropeAsia(Million yen)Total

263,415
34,101
16,874
181,436495,827
Notes: 1．Net sales are classified according to the customersʼ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Turkey and Russia(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India,
Indonesia, and Vietnam
For the fiscal year ended March 2023 (April 1, 2022 – March 31, 2023)
Geographic information
Net sales
Japan

North America

Europe(Million yen)
Asia

Total

335,201
43,67923,785
205,398
608,064
Notes: 1．Net sales are classified according to the customersʼ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic and Turkey(3) Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India,
Indonesia, and Vietnam- 19 -

(Per-share information)(Yen)
FY 2022/3(April 1, 2021 – March 31, 2022)

FY 2023/3(April 1, 2022 – March 31, 2023)

Net assets per share

4,026.22

4,935.36

Earnings per share

576.46878.65

Notes: 1. Earnings per share (diluted) have not been disclosed because there were no potentially dilutive shares.
2. The basis of calculation of earnings per share is as follows.
FY 2022/3(April 1, 2021 –March 31, 2022)

FY 2023/3(April 1, 2022 –March 31, 2023)

Earnings per share
Profit attributable to owners ofparent (million yen)

15,401

23,070

Profit not attributable to commonshareholders (million yen)－－

Profit attributable to owners ofparent allocated to common stock(million yen)

15,401

23,070

Average number of common stock
outstanding during the fiscal year

26,717,972

26,257,182(Subsequent events)
Not applicable- 20 -