2023
2021 - 2023

Financial Results Briefing Material
for the Fiscal Year ended March 2024

KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

May 23, 2024

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

Consolidated Financial Results
for 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 fiscal year
ended March 31, 2024.

Summary of Financial Results for FY2024/3

Results for
FY2024/3

Net sales decreased by 65.3 billion yen or 10.8% year on year to 542.6 billion yen.
The electronic components business was affected by full-scale impact of inventory
adjustment from 3Q, in addition to disappearance of spot demand and diminution oftransactions with a major customer of a Group company.

Operating income decreased by 6.4 billion yen or 19.9% year on year to 25.8
billion yen.
The decrease primarily reflected a decrease in gross profit due to lower net sales,
despite efforts to reduce SG&A expenses.
Net income decreased by 2.7 billion yen or 11.8% year on year to 20.3 billion yen.
1.4 billion yen in gain on sale of investment securities and 0.4 billion yen in gain on
bargain purchase associated with a corporate acquisition were posted.
Compared with the Company plan, net sales fell slightly short of the plan, but
incomes exceeded the plan.



FY2025/3
earnings
forecast

Shareholder
ReturnSales assumptions: Although there is no change to the medium- to long-term growthscenario for the electronics-related markets with the automotive area as one of the
major drivers, full-fledged demand recovery is not expected until the second halfof FY2025/3 given that full-scale inventory adjustment observed since the second halfof FY2024/3 will continue for some time.

Income assumptions: Increase in expenses due to salary increases, etc. are factoredin, in addition to prolonged inventory adjustment.



Earnings forecast: In light of the above, [net sales of 550.0 billion yen (up 2.3%),
operating income of 26.0 billion yen (up 0.6%), and net income of 18.0 billion
yen (down 11.5%)] are projected.



FY2024/3: The year-end dividend will be 110 yen per share as previously forecast on
May 11, 2023. The annual dividend including interim dividend amounts to 220 yen
per share, unchanged from the previous fiscal year.
FY2025/3: Despite a projected decrease in final income, the previous fiscal year’s 220
yen per share will be maintained.



2

These are the results for the fiscal year ended March 31, 2024.
Net sales decreased by 65.3 billion yen from the previous year to 542.6 billion yen.
Operating income decreased by 6.4 billion yen from the previous year to 25.8 billion yen.
The primary cause of decreases in net sales and income is the disappearance of spot
demand in our mainstay electronic components business and full-scale impact of inventory
adjustment by customers from 3Q.
Operating income decreased from the previous year, reflecting a decline in gross profit due tolower net sales, despite efforts to control and reduce SG&A expenses.
Profit decreased by 2.7 billion yen from the previous year to 20.3 billion yen, reflecting in part
posting of extraordinary income, including gain on sales of investment securities and gain on
bargain purchase associated with a corporate acquisition.
Compared with the internal plan announced in May last year, net sales fell slightly short ofthe plan, but operating income, ordinary income, and profit all exceeded the plan.
Next is the earnings forecast for the year ending March 31, 2025.
In the electronics-related market to which we belong, our medium- to long-term growthscenario, driven mainly by the automotive market, will remain unchanged. However, we
expect inventory adjustment, which began in full swing in the second half of the year ended
March 31, 2024, to continue for some time, and a full-fledged demand recovery is notexpected until the second half of the year ending March 31, 2025.
Factoring in the business conditions and increased costs partly from recent salary increases,
our earnings forecast for the year ending March 31, 2025, is net sales of 555.0 billion yen,operating income of 26.0 billion yen, and profit of 18.0 billion yen.
I explain our shareholder return policy.
As announced in May last year, the year-end dividend for the year ended March 31, 2024, willbe 110 yen per share.
The annual dividend including interim dividend will be 220 yen per share, the same amount as
the previous fiscal year.
For the year ending March 31, 2025, we intend to maintain the dividend of 220 yen per share,even though the final profit is expected to decrease.

Financial Highlights for FY2024/3（million yen）

FY2023/3
Results
Net sales

608,064

Gross Profit

78,514

SG&A

FY2024/3
Results

FY2024/3
Forecasts

YoY(Announced on May 11, 2023)-10.8%

550,000

12.9%

70,452 13.0% -10.3%

―

ー

ー

46,265

7.6%

44,607

8.2%

-3.6%

―

ー

ー

Operating income

32,2495.3%

25,8454.8%-19.9%

25,0004.5%

3.4%

Ordinary income

32,7395.4%

25,976

4.8%-20.7%

25,000

4.5%

3.9%

Profit attibutable toowners of parent

23,0703.8%

20,345

3.7%-11.8%

18,000

3.3%

13.0%

EPS (yen)

878.65

ー

774.61ーー

685.42

ー

ー

ROE

19.6%

ー

14.5%

ー

-5.1pt

13.3%

ー

1.2pt

135.47ー

144.62ーー

135.00ーー

Exchange Rateyen / USD

542,697

Progress
rate
-1.3%

Note: 1. The effect of exchange rates on the conversion into yen is approximately 12,539 million yen on net sales
and 420 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 current year was 774.61 yen.
ROE was 14.5%, down 5.1 percentage points from the previous year. Whilemost of the profits earned are piled in net assets, increasing financial stability,
we find it necessary to further improve capital efficiency in the future.
The average exchange rate during the current year was 144.62 yen against
the U.S. dollar, which represents a depreciation of about 9 yen from theprevious year and from the assumed rate of 135 yen in the full-year earnings
forecasts.
The year-on-year impact of foreign exchange fluctuations was an increase of
approximately 12.5 billion yen in net sales and an increase of approximately
420 million yen in operating income.

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

FY2023/3
Results
Electronic
Component

Information
Equipment

Net sales

539,342

Segment income

28,314

Net sales

43,680

Segment income

2,449

Net sales

2,998

SoftwareSegment income
Net sales
OthersSegment income
Net sales
Total
Segment income

FY2024/3
Results

286

5.6%

20,887

4.4%

2,924

6.6%

2,567
9.6%

370 14.4%
23,241

5.0%

608,064
32,249(Announced on May 11, 2023)

44,30522,044
1,101

YoY

472,583
5.2%

1,555

6.7%

542,697
5.3%

25,845

FY2024/3
Forecasts

4.8%-12.4%

471,500-26.2%

20,7001.4%

45,000

19.4%

2,500

-14.4%

4,500

29.0%

300

5.4%

29,000

41.2%

1,500

-10.8%

550,000-19.9%

25,000Progress
rate
0.2%

4.4%

0.9%
-1.5%

5.6%

17.0%
-42.9%

6.7%

23.4%-19.9%

5.2%

3.7%
-1.3%

4.5%

3.4%

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.

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 due todisappearance of spot demand, which had contributed to earnings until the previous
fiscal year, given easing of supply shortages of semiconductors and electronic
components and the diminution of transactions with a certain major client of Excel, as
well as the impact of inventory adjustment by customers, which began in earnest from3Q. The EMS business also recorded decreases in net sales and income year on year, foralthough sales in the automotive sector increased due to improved supply and demandbalance of semiconductors and electronic components, inventory adjustments by key
customers had an impact on sales in applications related to medical, industrial, and airconditioning equipment.
In the information equipment business, both net sales and income increased from theprevious 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 scalein the previous fiscal year. Segment income, in terms of both income amount and margin,
came in above the previous year’s results and the internal plan figures.
In the software business, net sales were lower than in the previous fiscal year, while
segment income increased and, as with the information equipment business, both thesegment income amount and margin exceeded the previous year’s results and theinternal plan figures.
In the others business, net sales increased year on year, and segment income washigher than the previous year’s results and the internal plan figures.
Regarding segment income margin, all business segments exceeded the internal plan
figures. Overall, operating income margin stood at 4.8% against full-year target of 4.5%.
Please also refer to pages 7 and 8, which contain information by business segment.

Results by Company for FY2024/3（million yen）

FY2022/3
Results

Kaga
Electronics

Net sales

281,075

Gross Profit

41,76714.9%

15,461

5.5%

Operating income

Kaga FEI

149,455

Gross Profit

14,690

9.8%

3,654

2.4%

315,404

53,123

15.3%

21,8996.3%

199,548

-9.4%

12.2%

47,373-10.8%

13.4%

19,580

6.2%-10.6%

26.6%

-4.4%

27.6%

-8.1%

30.8%

-45.5%

20.8%

20,913 10.5%

19,218 10.1%

8,103

4,413

60,481VS
FY2022/3

15.0%

190,684
4.1%

YoY

2.3%

Net sales

65,296Gross Profit

4,247

6.5%

4,443

7.3%

3,834 10.5% -13.7%

Operating income

1,937

3.0%

2,072

3.4%

1,653

36,608-39.5% -43.9%

4.5%

-9.7%

-20.2% -14.6%

495,827

608,064542,697-10.8%

9.5%

Gross Profit

60,547 12.2%

78,514 12.9%

70,452 13.0% -10.3%

16.4%

Operating income

20,91532,24925,845

23.6%

Net sales
Total

FY2024/3
Results

348,034

Net sales

Operating income

Excel

FY2023/3
Results

4.2%

5.3%

4.8%

-19.9%

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

Next, I will explain our performance by company.
In the Kaga Electronics Group’s traditional business, net sales and income decreased
from the previous fiscal year, largely reflecting the disappearance of spot demand.
However, both the gross profit margin and operating income margin remained at thesame level as in the previous fiscal year, and we can see that its profit-generating
ability is maintained.
At a glance, Kaga FEI Group’s operating income appears to have declined
significantly, partly stemming from the intra-group allocation of head office expenses
which began in the year ended March 31, 2024, and the provision for doubtful
accounts for certain customers.
But in fact, the disappearance of spot demand does not have much of an impact on
net sales and gross profit, and we can see that the company has steadily developed
a highly profitable structure.
In the Excel Group, despite a decline in sales to large-lot customers, profitgenerating ability was enhanced with improved sales mix, and profits showed no
decline as much as net sales, with both gross profit margin and operating income
margin improving significantly.
Thus although in a year-on-year comparison, net sales and income both recorded
decreases overall, if we take into account one-off factors, including spot demandassociated with the tight supply and demand balance of inventories in the context ofa larger trend, the gross profit margin was slightly above the previous year’s figures,and I believe you can feel that the company continues to maintain the “earning
power.”
Please also refer to the graphs on page 6.
Please also refer to the quarterly information for the last three months of the year on
pages 9 to 14.

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

Net Sales

Gross profit / Gross profit margin

Net sales decreased both at Kaga Electronics and Kaga FEI due
partly to disappearance of spot demand. Excel saw a decreasein sales to a major customer.

All three companies recorded a gross profit decrease due tolower net sales. At Excel, gross profit margin improved
due to improved sales mix.

608,064

78,514-32,630-8,863-23,872

542,697-5,749-1,695

-608

10.1%

10.5%

Kaga FEI

Excel-65,367

15.0%

15.3%
10.5%

12.9%

70,452-8,06213.0%

7.3%
2023/3ResultKaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3ResultSG&A / SG&A ratio
SG&A expenses decreased in Kaga Electronics and Excel, reflecting costcutting efforts. Kaga FEI’s expenses increased due partly to the provision ofallowance for doubtful accounts and allocation of head office expenses.

46,265-2,366
9.3%

9.1%
6.3%

7.6%

+921

-213

44,607-1,657

8.2%

7.0%

5.4%

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

Kaga
Electronics

2024/3ResultFY2024/3

2024/3ResultOperating income / Operating income
Operating income / Operating income margin
marjinAll three companies recorded an operating income decrease.
At Excel, operating income margin improved due to improved sales mix

32,2496.3%-2,319-3,690

6.2%

5.3%

4.1%
3.4%

3.6%
2023/3Result2023/3Result2023/3Result-419

25,845-6,404

4.5%

4.8%

Excel

2024/3Result

2.3%
KagaElectronics

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 25million yen, and operating income came to 198million yen.

6

Financial Highlights: Electronic Component Segment

Net sales/Segment income（million yen）

/
/

YoY

Net Sales Net Sales

Segment income

 Segment income

6 00 , 00 0

539,342-66,759million yen 12.4％Down-7,427million yen 26.3％Down

5 00 0 0472,583

5 00 , 00 0

4 00 0 0

4 00 , 00 0

28,3143 00 0 0

3 00 , 00 0

20,8872 00 0 0

2 00 , 00 0

5.2%
4.4%

・ Both net sales and income decreased in the component sales
business due to the impact of inventory adjustment taking
place on a full-scale since 3Q, in addition to disappearance of
spot demand that had contributed to earnings until theprevious fiscal year, given easing of supply shortages ofsemiconductors and electronic components, and diminution oftransactions with a certain major client of Excel.
・ Kaga FEI’s SoC (System on a Chip) products continued to enjoy
robust sales.
・ In the EMS business, net sales and income declined due partly
to the impact of inventory adjustments at key customers inapplications related to medical, industrial and air-conditioning
equipment, despite sales growth in the automotive sector
resulting from improved supply and demand balance ofsemiconductors and electronic components.

1 00 0 0

1 00 , 00 000

FY2023/3
Results

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

7

Financial Highlights: Information Equipment Segment 2020年

Net sales/Segment income（million yen）/

5 5, 0 00/

YoY

Net Sales Net Sales+625million yen

1.4％Up Segment income+474million yen

19.4％Up

9 00 0

Segment income

5 0, 0 00
8 00 04 5, 0 00

44,30543,680

7 00 0

4 0, 0 00

6 00 0• Although sales of PCs for mass retailers struggled due to weak
demand, sales of PCs for educational institutions remained
firm, with an increase in the number of accounts.
• Sales of security software and PC peripheral products werealso solid.

3 5, 0 00

5 00 0

3 0, 0 00

4 00 02 5, 0 00

2 0, 0 00

2,449• 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.

2,924
3 00 0

6.6%

2 00 0

1 5, 0 00

5.6%
1 00 0
1 0, 0 00

5 ,0 0 00

FY2023/3
Results

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

8

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

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results

136,239

QoQ-12.6%

3.7%

Net sales

155,843

Gross Profit

18,63012.0%

17,091

13.0%

18,200

13.4%

-2.3%

6.5%

SG&A

12,387

7.9%

10,475

8.0%

12,846

9.4%

3.7%

22.6%

Operating income

6,242

4.0%

6,615

5.0%

5,353

3.9%

-14.2% -19.1%

Ordinary income

6,121

3.9%

6,365

4.8%

5,664

4.2%

-7.5% -11.0%

Profit attibutable toowners of parent

4,017

2.6%

4,587

3.5%

4,353

3.2%

8.4%

-5.1%

152.99ー

174.65ー

165.73ーーーEPS (yen)

131,413

YoY

Note: 1. The effect of exchange rates on the conversion into yen is approximately 2,842 million yen on net sales
and 90 million yen on operating income.
2. "x. x% " represents the ratio to net sales.

9Results by Business Segment for FY2024/3 (3 months)（million yen）

FY2023/3
4Q Results
Electronic
Component
Information
Equipment

Software

OthersTotal

Net sales
Segment income
Net sales

133,733
4,972

949

Net sales

922

Segment income

151

Segment income
Net sales
Segment income

115,229
3.7%

14,540

Segment income

Net sales

FY2024/3
3Q Results

6.5%

4.7%

641

16.4%

149

6.7%

436

25.3%

7.2%

131,413
4.0%

6,615

3.3%

1,002

7.1%

750

6,041
2.0%

3,738
14,038591

155,843
6,242

114,788

9,551

6,647
129

5,363

FY2024/3
4Q Results

5.0%

YoY

QoQ

-14.2%-0.4%-24.8% -30.3%
-3.4%

47.0%

5.6%

56.2%

-18.6%

27.0%

107 14.3% -29.1% -28.2%
6,660

0.2%

10.2%

495

7.4% 281.9%

13.6%

136,239-12.6%

3.7%

5,353

3.9%

-14.2% -19.1%

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

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

FY2023/3
4Q Results

Kaga
Electronics

Net sales

93,560Gross Profit

12,901

13.8%

11,556

14.7%

4,320

4.6%

5,089

6.5%

Operating income

Kaga FEI

Excel

78,517

Net sales

46,255Gross Profit

4,300

9.3%

4,510

10.2%

Operating income

44,360

1,093

2.4%

1,009

2.3%

FY2024/3
4Q Results

YoY

QoQ

80,478-14.0%

2.5%

12,165 15.1%

-5.7%

5.3%

3,922

4.9%

47,556
980

2.1%

7.2%
12.5%

-10.3%-2.9%-48.8%

-3.9%
-7.8%

Gross Profit

1,328

8.3%

993

11.6%

915 11.2% -31.0%

695

4.3%

455

5.3%

332

155,843

Gross Profit
Operating income

8,203

2.8%
18.0%

16,027

Net sales

8,535

5,075 10.7%-9.2% -22.9%

Net sales

Operating income

Total

FY2024/3
3Q Results

131,413

18,630

12.0%

6,242

4.0%

4.1%

136,239

17,091

13.0%

6,615

5.0%

-52.1% -26.9%-12.6%

3.7%

18,200

13.4%

-2.3%

6.5%

5,353

3.9%

-14.2% -19.1%

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

Net
売上高
Sales

Gross
売上総利益
profit / Gross/ 売上総利益率
profit margin
profit decreased at both Kaga Electronics andExcel due to lower net sales.
Kaga FEI recorded a gross profit increase.

Net sales decreased both at Kaga Electronics and Excel due
to continuation of inventory adjustment.
Kaga FEI secured an increase in net sales.

155,843-13,081+1,301-7,824

136,239

18,630-736-19,604

+774

-412

18,200
-430

15.1%
13.8%
9.3%
8.3%
2023/3
4QResult

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
4QResult

SG&A
販管費/ /SG&A
販管費率
ratio

9.3%
6.8%

7.9%

7.9%

9.4%
6.1%

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

Kaga FEI

Excel

FY2024/3

2024/3
4QResult

All three companies recorded a decrease in operating
income but maintained roughly last year’s level ofoperating income margin on a consolidated basis.

6,242

4.6%
4.3%

-398

2024/3
4QResult

-112

4.9%

-362

5,353

4.1%

3.9%

Excel

2024/3
4QResult

-889

4.0%
2.1%

2.4%

3.6%
2023/3
4QResult

Kaga
Electronics

11.2%

Operating income
営業利益/ Operating/ 営業利益率
income marjin

At Kaga Electronics and Excel reduced SG&A expenses due toa decrease in gross profit. Kaga FEI’s expenses increased due
partly to allocation of head office expenses.
12,846
+618
-71
+459
12,387-87

10.7%2023/3
4QResult

13.4%
10.7%

12.0%

2023/3
4QResult

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 43million yen, and operating income came to 117million yen.

12

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

1 80 , 00 0

YoY

Net Sales Net Sales

Segment income

 Segment income-18,944million yen 14.2％Down-1,233million yen 24.8％Down

1 60 , 00 0

1 40 , 00 0

133,733

1 20 0 0115,229

1 20 , 00 0

QoQ

114,788

 Net Sales Segment income

1 00 , 00 0

-440million yen 0.4％Down-1,624million yen 30.3％Down

8 0, 0 00

4,972

5,363

6 00 0

6 0, 0 00

4.7%
4 0, 0 00

3.7%

3,738
3.3%

2 0, 0 00

00

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results
Note: "x. x% " represents the profit margin.

13

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

2 0, 0 00/

YoY

Net Sales
Segment income

 Net Sales-501million yen 3.4％Down

 Segment income+52million yen5.6％Up

1 8, 0 00

1 6, 0 00

14,54014,038QoQ

1 4, 0 00

 Net Sales+4,487million yen

47.0％Up+360million yen

56.2％Up

1 2, 0 00

 Segment income

9,551

1 0, 0 00

8 ,0 0 0

6 ,0 0 0

1,002

949
641

4 ,0 0 0

6.5%

6.7%

7.1%

2 ,0 0 0

00

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results
Note: "x. x% " represents the profit margin.

14

Factors behind Changes in Net Sales /Operating Income for FY2024/3

Reference

Operating Income

Net Sales（billion yen）

608.0 bn（billion yen）

-22.8
-19.6

-22.8

542.6 bn
Excel’ssales to Spot Salesa majorcustomer
Sales Volume

Gross Profit around -8.0 bn

32.2 bn -0.6

-4.6

Excel’ssales toa majorcustomerSpot Sales-2.8+1.6 25.8 bn
SG&A

Sales Volume
Sales mix

Income Decrease:around 6.4 bn

Sales Decrease:around 65.4 bn
2023/3Results

2024/3Results

2023/3Results

2024/3Results
15

I will now explain the causes of the year-on-year changes in net sales andoperating income.
A diminution in transactions with a certain major customer of Excel caused
sales to decrease by 22.8 billion yen and income to decrease by 0.6 billion yen.
Another factor was the disappearance of spot demand in the electronic
components business, which led to a decrease in sales of 19.6 billion yen anda decrease in income of 4.6 billion yen.
In addition, a decrease in sales volume due to inventory adjustment bycustomers and fluctuation in sales mix caused sales to decrease by 22.8
billion yen and income to decrease by 2.8 billion yen.
These three factors above resulted in a year-on-year decrease in net sales of
65.4 billion yen and a decrease in gross profit of 8.0 billion yen.
In the business condition, we made efforts to reduce and control SG&A
expenses and cut costs by 1.6 billion yen, but operating income stood at 6.4
billion yen less than the previous year’s level.
In comparison with the internal plan, net sales fell slightly short of the plan,but operating income exceeded the plan figures of 25.0 billion yen by 0.8
billion yen.
Please also refer to the quarterly information for the last three months of theyear on page 16.

Factors behind Changes in Net Sales /Operating Income for FY2024/3 (3 months)

Reference

Operating Income

Net Sales（billion yen）

155.8 bn

-5.3

-1.2

-12.9

（billion yen）

136.2 bn

Excel’ssales to Spot Salesa majorSales Volume
customer

Gross Profit around -0.4 bn

6.2 bn

-0.0

-0.3

-0.0

-0.4

5.3 bnExcel’s Spot Sales
sales to
Sales Volume SG&A
a majorSales mix
customer

Income Decrease:around 0.9 bn

Sales Decrease:around 19.6 bn
2023/3Results

2024/3Results

2023/3Results

2024/3Results
16

Balance Sheet Main Items
Total assets

Total liabilities and net assets（million yen）

272,139

286,217（million yen）

286,792+574

272,139

286,217

156,479

233,984

245,572

244,629-943

40,6452022/32023/342,162+574

135,560

Total liabilities

151,231

Total net assets-20,919

166,339
Current assets

105,800
38,155

286,792

129,737+21,4932023/32024/3

Non-current assets+1,5172024/32022/317

Let me move on to the balance sheet, starting with assets.
Current assets decreased by 0.9 billion yen from the end of the previous fiscal
year to 244.6 billion yen, due in part to a decrease in accounts receivable andinventories. Non-current assets increased by 1.5 billion yen from the end of
the previous fiscal year to 42.1 billion yen, due notably to capital investmentin the new Mexico plant. Total assets increased by 0.5 billion yen from theend of the previous fiscal year to 286.7 billion yen.
Liabilities decreased by 20.9 billion yen from the end of the previous fiscal
year to 135.5 billion yen, due primarily to a decrease in accounts payabletrade and repayment of loans payable. Net assets increased by 21.4 billion
yen from the end of the previous fiscal year to 151.2 billion, due partly to anincrease in retained earnings.
As a result of the significant decrease in current liabilities, the current ratio
was 233.4%.
The equity ratio improved by 7.3 percentage points from 45.3% at the end of
the previous fiscal year to 52.6%, indicating improved financial stability.

Balance Sheet Main Items
Inventories

Accounts receivable/Accounts payable
1 10 . 0

9 0, 0 00（ million Yen, day）

46.1
33.7

8 0, 0 00

36.8

89.0

75.7

（ million Yen, day）
A/R turnover

5 0. 02 00 , 00 0

Inventory turnover

68.6

3 0. 0

7 0, 0 00

77.5

6 0. 055.8

62,607

A/P turnover

57.4

1 0. 056,205

6 0, 0 00

54,739
-1,466

1 50 , 00 0

Inventories

1 0. 0-1 0. 0120,948

129,099

5 0, 0 00

112,574

Notes and A/R-16,524-3 0. 0-4 0. 0

1 00 , 00 0

4 0, 0 00

86,493-5 0. 079,232

71,392-7,840

3 0, 0 00

Notes and A/P-9 0. 0-7 0. 0

5 0, 0 00
2 0, 0 00-9 0. 0-1 40 . 0

1 0, 0 00-1 10 . 00-1 30 . 02022/32023/32024/3

Note: Inventory turnover ＝ Inventories ÷ Net Sales × 365（day）

0-1 90 . 02022/32023/32024/3

Notes: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 × 365（day）
4. ・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 365（day）

18

Inventories amounted to 54.7 billion yen, a decrease of 1.4 billion yen fromthe end of the previous fiscal year, as a result of efforts, including
adjustments in purchasing and procurement, amid the impact of inventory
adjustment by key customers.
Inventory turnover, on the other hand, worsened by 3 days to 36.8 days, partly
due to a decrease in net sales, and we are continuing to strengthen efforts to
reduce inventories.

Balance Sheet Main Items（million yen）

Cash and Deposits/Interest Bearing Debt
1 10 , 00 0

1 00 , 00 0

0.48

Cash flows（million yen, times）

0.32

0.10
-0.08

0.23
-0.21

0 .5 00 .0 0D/E ratio

Net D/E ratio

9 0, 0 00

8 0, 0 00-0 .5 066,59630,569Cash and deposits+13,996

7 0, 0 00

29,385

Cash flows fromoperating activities-1 .0 01,155

6 0, 0 00

51,17152,600-1 .5 0-1,554

5 0, 0 00

41,051

41,93834,270 Interest bearing debts

4 0, 0 00-7,668-4,805-2,968Cash flows frominvesting activities-15,549-16,973

Cash flows fromfinancing activities-6,772-2 .0 0

3 0, 0 00-2 .5 02 0, 0 00

1 0, 0 00-3 .0 02022/32023/32024/3

Note:1. D/E ratio＝ Interest bearing debts ÷ Shareholder’s equity
2. Net D/E ratio ＝（Interest bearing debts - Cash and deposits） ÷

2022/32023/32024/3

Shareholder’s equity

19

Interest-bearing debt stood at 34.2 billion yen, a decrease of 7.6 billion yen
from the end of the previous fiscal year due to debt repayment, and the debtto-equity ratio (D/E ratio) was kept low at 0.23 times due to an increase inequity through profit generation.
The balance of cash and deposits increased by 13.9 billion yen from the endof the previous fiscal year to 66.5 billion yen, reflecting cash flow fromoperating activities of 29.3 billion yen, almost the same level as the previous
fiscal year. As a result of the increase in cash and deposits, the net D/E ratio
stood at negative 0.21 times remaining in the negative as it did at the end of
the previous fiscal year. Our financial foundation is becoming increasingly
stable and strong to invest in the next phase of growth.

Major Business Indicators（million yen）

Equity ratio
4 20 , 00 0

ROE
6 0. 0 %

15.7%

14.5%

52.6%

45.3%

3 70 , 00 019.6%

4 0. 0 %38.8%
3 20 , 00 0

272,139

286,217

286,792

2 0. 0 %

+574

2.2

Total assets

1.9

Total asset turnover

2.0

Financial leverage

3.8

3.7

Net profit margin

2023/32024/31.9

2 70 , 00 0

0 .0 %

2 20 , 00 02.4
-2 0. 0 %

129,608
1 20 , 00 0

Shareholders’ equity

150,834

1 70 , 00 0

2.6

+21,226-4 0. 0 %105,680-6 0. 0 %3.1

7 0, 0 00-8 0. 0 %2 0, 0 00

2022/3-3 0, 0 00

2023/32024/32022/3-1 00 . 0%

20

While shareholders’ equity increased, bringing financial stability higher at anequity ratio of 52.6%, ROE of 14.5% indicates a slight decline in capitalefficiency.
We intend to continue further enhancing the profit-generating ability and use
the funds generated to implement a multifaceted approach covering
investments in business expansion, including through M&A, production
facilities and other business infrastructure for growth, and human capital, as
well as shareholder returns. As such, we aim to sustainably maintain andimprove the management target ROE of a “stable 10% or higher.”Forecasts for FY2025/3

Forecasts for FY2025/3（million yen）

FY2024/3
Results
Net sales

FY2025/3
Forecasts

542,697

YoY

555,000

2.3%

Operating income

25,8454.8%

26,0004.7%

0.6%

Ordinary income

25,9764.8%

26,0004.7%

0.1%

Profit attibutable toowners of parent

20,345

3.7%

18,0003.2%-11.5%EPS (yen)774.61ー

685.26

ー

－

ROE

14.5%

ー

11.5%

ー

-3.0ptAnnual dividend (yen)220.00220.00ー

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

22

I now explain our earnings forecast for the fiscal year ending March 31, 2025.
As mentioned earlier, we expect customers’ inventory adjustments, whichbegan in full swing in the second half of the year ended March 31, 2024, to
continue for some time with a full-fledged recovery in demand expected in
the second half of the year ending March 31, 2025.
Factoring in higher costs, including salary increases, in addition to thelingering inventory adjustment, we have revised our forecasts for the year
ending March 31, 2025, to net sales of 555 billion yen, operating income andordinary income of 26 billion yen, and profit of 18 billion yen, which is almost
unchanged from the previous fiscal year.
Based on the above forecasts, we expect earnings per share (EPS) for theyear ending March 31, 2025, to be 685.26 yen, and ROE at the end of the year
to be 11.5%.
The annual dividend will be 220 yen per share, the same as the previous year,
even though profit is expected to be lower than the previous year.

Forecasts by Business Segment for FY2025/3（million yen）

FY2024/3
Results

472,583

Electronic
Component

Net sales
Segment income

20,887

Information
Equipment

Net sales

44,305

Software

Others

Total

Segment income

2,924

Net sales

2,567

Segment income
Net sales
Segment income
Net sales
Segment income

FY2025/3
Forecasts

370

482,500
4.4%

4.3%

3,000

14.4%

400 13.3%

1,700

26,000

8.1%
5.4%

6.9%

555,000
4.8%

2.6%
16.8%

24,500
6.7%

0.1%
1.6%

6.7%

3,000

542,697
25,84520,9002.1%

45,000
6.6%

23,241
1,555

YoY

9.3%
2.3%

4.7%

0.6%

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.

23

The earnings forecast for each business segment is expected to remain at thesame level as in the previous fiscal year.

Factors behind Changes in Operating Income
for FY2025/3
Operating Income（billion yen）

25.8bn+1.6△1.5

Sales Volume
Personnel
Sales mix
expenses+0.1

26.0bnReference

Cost increase factors incorporated
into FY2025/3 forecasts⑴ Salary increases 1.0 bn
・ Kaga Electronics: Up 25,000 yen /month across the board(average rise of 7.8%)・ Group companies: rise of 2.0% to 7.5%

Other
expenses⑵ New graduate salary, regularsalary increases, etc.
0.5 bnIncome Increase:around 0.2 bn
2024/3Results*Operating income forecast:+1.6 billion yen (+6.4%) in real terms,
excluding the effects of the above factors
2025/3Results
24

I will now explain the causes of the year-on-year changes in operating income.
Starting from the fiscal year ending March 31, 2025, salary increases of about
1.0 billion yen took effect for the Group as a whole.
At Kaga Electronics, the monthly increase is 25,000 yen across the board. The
average increase is 7.8%.
By adding this figure to a 0.5 billion yen increase in costs, including new
graduate salaries and regular salary increases, we have factored in a 1.5
billion yen increase in personnel expenses in our forecast.
This increase in income was due to a 1.6 billion yen increase in gross profit
from higher sales volume and improved sales mix, a 0.1 billion yen increase
from curbing non-personnel expenses, and an approximately 0.2 billion yen
increase in operating income, all of which are incorporated in our forecast.

Shareholder ReturnBasic Policy on
Dividends ofSurplus

We shall perform stable dividends, while securing a consolidated dividend payout
ratio of 25 to 35%.
We shall use funds for business investments, capital investments, and M&A, etc.
in order to contribute to future growth.
Decisions on the acquisition of treasury shares shall be made appropriately,in consideration of capital efficiency and share price, etc.

29.6%

28.6%
25.6%

■ Commemorative
dividend■ Special dividend

35%

25.0%

27.4%

25%
19.3%

Total return trend:45.4%
Acquisition of treasury shares(JPY 1,499 mil)

20.8%

※Including negative goodwill
JPY220
about JPY8 bn

JPY220 JPY22070
JPY120

JPY55

JPY60

10
30

15
40

20

FY2014
Results

FY2015Results

FY2016
Results

JPY40

32.1%

28.4%
24.1%

■ Ordinary dividend

Total return trend:44.3%
Acquisition of treasury shares(JPY 3,674 mil)

32.8%

40

JPY70

JPY80

10

5
5

60
FY2017
Results

JPY70

JPY80

10

20

70

60

60

FY2018Results

FY2019Results

FY2020Results

10

40

220

220

FY2023Results

FY2024
Forecasts

140
80
FY2021Results

FY2022
Results

25

I now explain about shareholder returns and dividends.
The following are our three basic principles for profit distribution.
・We shall perform stable dividends, while securing a consolidated dividend payout
ratio of 25 to 35%.
・We shall use funds for business investments, capital investments, and M&A, etc. inorder to contribute to future growth.
・Decisions on the acquisition of treasury shares shall be made appropriately, in
consideration of capital efficiency and share price, etc.
In the fiscal year ended March 31, 2024, we plan to pay an annual dividend of 220
yen per share, the same as the previous year, despite the year-on-year decline in net
sales and income. This will bring the payout ratio to 28.4%.
Looking toward the fiscal year ending March 31, 2025, the annual dividend is also
expected to be 220 yen per share, the same as the previous year, even though final
income is expected to decrease. As a result, the payout ratio for the year ending
March 31, 2025, is expected to be 32.1%.
In January this year, we announced our policy on “Action to Implement Managementthat is Conscious of Cost of Capital and Stock Price.”
Going forward, we will, in line with the policy, work to further strengthen our earning
power and management foundation, and will consider and make efforts to distributeprofits other than through dividends as necessary, taking into account theenvironment and circumstances.
Page 28 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 have a look.

Latest 5 years Financial Trends
Operating Income

Net Sales （billion yen）
1H

Full-year

422.3
188.8

1H

608.0

495.8
298.7

223.0

542.6

Full-year

20.9
11.4

（yen）

878.65
25.8

550.0

275.0

EPS

（billion yen）

32.2

774.6126.0

685.26576.4618.3

415.07

13.8
8.3

4.4

2021/3 2022/3 2023/3 2024/3 2025/3

2021/3 2022/3 2023/3 2024/3 2025/3（forecasts）

Cash Flow
CF from Operating activities
Free Cash Flow

30.5
25.7

22.4
18.7

26.4

ROE

（％, billion yen）

Equity ratio■ Equity

37.7
9.9
7.5

（forecasts）

Equity Ratio（billion yen）

29.3

2021/3 2022/3 2023/3 2024/3 2025/3（forecasts）

78.2

38.4

90.9

38.8

105.6

45.3
129.6

52.6

■Financial leverage■Total asset turnover■Net profit margin

7.6
150.8
6.6
2.1
2.7

2020/3 2021/3 2022/3 2023/3 2024/3
(1.5)
(8.3)

1.3

2020/3 2021/3 2022/3 2023/3 2024/3（％, times, turns）
ROE
Cost of Equity

13.5

15.7

19.6

14.5

8.1

7.5

8.1

10.6

1.9

1.9

2.2

2.6

2.6

2.4

1.9
2.0

2.7

3.1

3.8

3.7

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

26

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

28

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

FY2022/3
Results
Electronic
Component

EMS

CSI

OthersTotal

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

325,830
11,094

398,783
3.4%

117,828
7,356

6.2%

5.3%

12,552
255

4.9%

2.0%

vs
FY2022/3

-9.5%

10.7%

14,228 3.9% -26.9%

28.2%-19.6%

2.2%

9,563 6.4%

7,375 6.1% -22.9%

0.3%

43,68044,305

2,449

5.6%

663 4.2%

32,249

2,924

6.6%

17,170608,064
4.2%

YoY

120,478

15,739495,827
20,915

19,475

FY2024/3
Results

360,743

149,862

39,6162,085

FY2023/3
Results

1,208 7.0%
542,697

5.3%

1.4%

11.8%

19.4%

40.2%

9.1%

36.8%

82.1% 372.4%-10.8%

9.5%

25,845 4.8% -19.9%

23.6%

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.

29

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

Electronic
Component

EMS

CSI

OthersTotal

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

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results

YoY

QoQ

95,56986,66889,705

-6.1%

3.5%

3,753 4.3%

2,472 2.8% -30.8% -34.1%

31,00027,355

1,798 5.8%

1,433 5.2% -12.4% -20.3%

9,551

14,038

3,573

3.7%

41,251
1,637

4.0%

14,540
949

6.5%

4,480

4,193

42 1.0%155,843
6,242

641

6.7%

396 9.5%
131,413

4.0%

6,615 5.0%

-33.7% -11.8%

-3.4%

47.0%

5.6%

56.2%

14.7%

22.5%

436 8.5% 924.3%

9.9%

1,002
5,138

136,2397.1%-12.6%

3.7%

5,353 3.9% -14.2% -19.1%

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.

30

Quarterly Net Sales Trends (3months)

Net Sales（million yen）

149,302 149,458
4,178
498
11,147

5,213
808
8,449

153,460155,843
6,004
768
9,542

6,647
922
14,540

Total

137,694 137,350
5,050
577
12,050

5,488
647
8,664

131,413
6,041
591
9,551

136,2396,660
750
14,038

YoY
QoQ

:
:

-19,604+4,825

YoY

:

+12

QoQ

:

+618

YoY
QoQ

:
:

Other

Software133,477

134,986

137,144

133,733

120,015

122,549

115,229

114,788-171+159

Information equipment
YoY
QoQ

:
:

-501
+ 4,487

Electronic equipment
YoY
QoQ

:
:

-18,944- 440

FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results

31Quarterly Segment Income Trends (3months)

Segment Income（million yen）
Total
YoY
QoQ

:
:

YoY
QoQ

:
:

5,353

YoY
QoQ

:
:

1,002

Information equipment

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

331
117
533

746

6,724
4,972

5,922

5,862

436
149
641

Software

495
107

YoY
QoQ

5,363
3,738

:
:

-44
-42

+52
+360

Electronic equipment
YoY
QoQ

-33

+366
+59

6,615

9,018
7,599

-889
-1,261::-1,233-1,624-4FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results
Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

32

Net Sales by Region (3months)

Net Sales（million yen）
Total

149,302 149,458
5,849
11,22851,983

4,987
12,42253,761

153,460 155,843
6,298
11,45650,090

6,649
8,571

137,694 137,350
6,662
10,6706,399
12,34540,66937,79649,562

131,413
6,334
11,44236,124

YoY
QoQ

:
:

YoY
QoQ

:
:

136,239
6,742
11,47836,002-19,604+4,825

Europe+92+408

North America
YoY
QoQ

:
:

YoY
QoQ

:
:

YoY
QoQ

:
:

+2,906+36

Asia

80,24078,286

85,614

91,05879,69180,80977,51282,015-13,560-121

Japan-9,043+4,503

FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results

33

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

FY2023/3
Results

FY2024/3
Results

Net sales

OperatingincomeForex
Assumptionfor2025/3(yen)USD

135.47144.621,740

26145.00

RMB

19.48

19.82

328

22

19.50

THB

3.84

4.11

282

18

4.00

HKD

17.28

18.48

177

3

18.50

EUR

140.97156.8070155.00

（Yen）

（Yen）

34

Note

35

Note

36

Note

37

“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 fiscal year
ended March 31, 2024.
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.