KAGA ELECTRONICS
CO., LTD.

For Institutional Investors/Analystss

Financial Results Briefing Material
for the Fiscal Year ended March 2022

加賀電⼦株式会社

KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

May 26, 2022

My name is Kawamura with KAGA ELECTRONICS CO., LTD. Thank you very much for yourcontinued patronage.

Consolidated Financial Results
for the Fiscal Year ended March 2022

Director,
Managing Executive Officer

Eiji Kawamura

I would like to review the financial results for the full fiscal year ended March 31, 2022.

Summary

Results for
FY2022/3

FY2023/3
earnings
forecasts

Net sales: Driven by the core electronic components business, robust demand continued
as production activities recovered in manufacturing industries both in Japan and overseas. Net
sales grew significantly, achieving a record high for the first time in two years.



Operating income: Increased significantly as a result of increased gross profit due to higher
sales and an improved profit margin, as well as continued efforts toward workstyle reforms andcost reductions amid the COVID-19 pandemic, achieving a record high for the third
consecutive fiscal year.



Net income: Despite the absence of the 7.96 billion yen “gain on bargain purchase” posted
as extraordinary income in the previous fiscal year, net income increased significantly
thanks to expanded revenue in core businesses, achieving a record high for the second
consecutive fiscal year.

Economic situation: The business outlook remains cloudy both in Japan and overseas
due to factors such as the renewed spread of COVID-19 due to variant strains, the future
situation in Ukraine, and rising prices of crude oil and other resources.
Industry trends: Although the supply of semiconductors and electronic parts remains tight for
the foreseeable future, demand for automobiles, communication equipment, and home
appliances is expected to continue to grow.
Companyʼs outlook: Maintain the momentum of growth in net sales and operating
income by focusing on expanding revenue in key areas such as the automotive, industrial
equipment, and medical fields.







Shareholder
Return

FY2022/3: The year-end dividend was revised upward to 75 yen per share due to theaddition of a 10-yen “extraordinary dividend” to the previous forecast of 65 yen (40 yen in
ordinary dividends + 25-yen extraordinary dividend).
*The full-year dividend is 120 yen per share, a 40-yen increase from the previous fiscal
year.
FY2023/3: Ordinary dividends were increased by 20 yen to 140 yen per share (70 yen forboth the interim and year-end dividends). In addition, a 10-yen “55th anniversarycommemorative dividend” will be paid as a year-end dividend. Accordingly, the full-year
dividend is planned to be 150 yen per share, an increase of 30 yen.

2

Here is a summary. First, net sales increased significantly, driven by the mainstay electronic
components business, as a result of continued strong demand in line with the recovery of
production activities in the manufacturing industry both in Japan and overseas. This is the firsttime in two fiscal years that we have reached a record high.
Operating profit increased significantly as a result of higher gross profit due to increased sales
and improved profit margins, as well as continued efforts to reform work styles and curb
expenses amid the pandemic. This is the third consecutive year of record profits.
Net profit increased significantly due to the expansion of earnings in the mainstay businesses,
despite an extraordinary income on negative goodwill of JPY7.96 billion, which was posted in theprevious fiscal year. This is the second consecutive year of record profits.
This is the forecast for the fiscal year ending March 2023. The economic outlook in Japan andoverseas remains uncertain due to the reemergence of COVID infections caused by mutant
strains, conflicts in Ukraine, and soaring prices of crude oil and other natural resources.
As for industry trends, the tight supply‐demand balance for semiconductors and electronic
components will continue for the time being, but demand is expected to continue to grow for
automobiles, telecommunications equipment, and home appliances.
In this environment, the Company's outlook is to focus on expanding earnings in focused areas
such as automotive, industrial machinery, and medical, and to maintain the momentum of
increased net sales and operating profit.
Next, I will discuss shareholder returns. For the fiscal year ended March 2022, we have increased
the year‐end dividend to JPY75 per share, adding a special dividend of JPY10 to the previous
forecast of JPY65, an ordinary dividend of JPY40 and a special dividend of JPY25. The annual
dividend is JPY120 per share, an increase of JPY40 from the previous fiscal year.
This is the dividend forecast for the fiscal year ending March 2023. The ordinary dividend wasincreased by JPY20 to JPY140 per share, or JPY70 each for the interim and year‐end dividends. In
addition, we will pay a commemorative dividend of JPY10 per share for the 55th anniversary of
our founding as the year‐end dividend, resulting in an annual dividend of JPY150 per share, anincrease of JPY30 per share.

Financial Highlights for FY2022/3（million yen）

FY2021/3
Results

FY2022/3
Results

FY2022/3
Previous Forecasts

YoY

vsForecasts(announced on Feb. 3, 2022)

422,365

495,82717.4%

475,000

4.4%

Gross profit

47,936 11.3%

60,547 12.2%

26.3%

ー

ー

SG&A

36,469

8.6%

39,632

8.0%

8.7%

ー

ー

Operating income

11,467

2.7%

20,915

4.2%

82.4%

17,500

3.7%

19.5%

Ordinary income

11,241

2.7%

21,456

4.3%

90.9%

18,000

3.8%

19.2%

Profit attributable toowners of parent

11,3992.7%

15,401

3.1%

35.1%

12,000

2.5%

28.4%

EPS（Yen）

415.07576.46ーー

449.13ーーNet sales

3

Continued below are the financial highlights for the fiscal year ended March 2022. Net
sales totaled JPY495.827 billion, up 17.4% from the previous year. The forecast
announced on February 3, 2022, for the fiscal year ended March 2022 was JPY475 billion,
which represents an increase of 4.4%.
Gross profit totaled JPY60.547 billion, up 26.3% from the previous year. The gross profit
margin was 12.2%, a 0.9% improvement over the previous year.
SG&A expenses totaled JPY39.632 billion, up 8.7% from the previous year. As a result,operating profit totaled JPY20.915 billion, up 82.4% from the previous year. The forecast
announced on February 3 was JPY17.5 billion, which is 19.5% over the previous forecast.
Ordinary profit totaled JPY21.456 billion, up 90.9% from the previous year. Since theprevious forecast was JPY18 billion, this figure was exceeded by 19.2%.
Net income attributable to shareholders of the parent company was JPY15.401 billion,
up 35.1% from the previous year. Since the previously announced figure was JPY12
billion, this figure was exceeded by 28.4%. As a result, EPS was JPY576.46. ROE was
15.7%, an improvement of 2.2 percentage points from the previous year.

Financial Results by Business Segment for FY2022/3（million yen）

FY2021/3

FY2022/3

Results

Results

FY2022/3

YoY

Previous Forecasts

vsForecasts(announced on Feb. 3, 2022)

Net sales
Electronin
Component Segment income

353,454

Information Net sales
Equipment Segment income

48,389Software

OthersTotal

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

8,151
2,482

433,852
2.3%

5.1%

9.0%

5.3%

-26

-1.0%

19,5902.7%

422,365
11,467

2,085
2,767

17,589474

4.2%

39,616

2,932
263

18,107626

3.2%

495,827
2.7%

20,915

4.2%

22.7%

414,000

122.1%

14,800-18.1%

40,000-16.0%

2,000

-5.6%

3,000

ー

200

11.4%

18,000

32.0%

500

17.4%

475,000

82.4%

17,500

4.8%
3.6%

22.4%
-1.0%

5.0%

4.3%
-7.8%

6.7%

ー
8.8%

2.8%

25.2%
4.4%

3.7%

19.5%

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

4

The following are the results by segment. Net sales in the electronic components
business amounted to JPY433.852 billion, up 22.7% from the previous year. Since theprevious forecast was JPY414 billion, this figure is 4.8% higher than the forecast.
Segment profit was JPY18.107 billion, up 122.1% from the previous year. Compared to
the forecast, the increase is 22.4%.
Next is information equipment. Net sales totaled JPY39.616 billion, down 18.1% fromthe previous year. This is a 1% decrease compared to the previous forecast. Segment
profit was JPY2.085 billion, down 16% from the previous year and up 4.3% from theprevious forecast.
For software, net sales totaled JPY2.767 billion, down 5.6% from the previous year anddown 7.8% from the forecast. Segment profit was a loss of JPY26 million.
Net sales for other businesses totaled JPY19.59 billion, up 11.4% from the previous year
and 8.8% from the forecast. Segment profit was 626 million, up 32% from the previous
year and 25.2% from the forecast.

Financial Results by Company for FY2022/3（million yen）

FY2021/3

FY2022/3

Results

Results

FY2022/3

YoY

Previous Forecasts

vsForecasts(announced on Feb. 3, 2022)

Kaga
Electronics

Net sales
Gross Profit
Operating income
Net sales

Kaga FEI

Gross Profit
Operating income
Net sales

Excel

Gross Profit
Operating income
Net sales

Total

Gross Profit
Operating income

243,897
281,075
35,273 14.5% 41,767 14.9%
11,083 4.5% 15,461 5.5%
131,932
149,455

265,000
38,300 14.5%
39.5%
13,000 4.9%
13.3% 145,000

10,307362
46,535
2,365
6

9.8%

42.5%

2.4%

907.2%

6.5%

79.5%

3.0%

ー

7.8%
0.3%
5.1%
0.0%

14,6903,654
65,296
4,247
1,937

15.2%

6.1%

18.4%

9.1%
3.1%

9.3%

8.8%

1.8%

40.5%

6.5%

1.1%

2.9%

2.0%

17.4%

475,000
56,000 11.8%
82.4%
17,500 3.7%

4.4%

26.3%

8.1%

40.3%

422,365
495,827
47,936 11.3% 60,547 12.2%
11,467 2.7% 20,915 4.2%

13,5002,600
65,000
4,200
1,900

18.9%

0.5%

19.5%

Note: With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.

5

The following is a breakdown of our business performance by company. First, let us lookat net sales for KAGA ELECTRONICS. The total amount was JPY281.075 billion, up 15.2%
from the previous year and up 6.1% from the previously announced forecast. Grossprofit totaled JPY41.767 billion, up 18.4% from the previous year and 9.1% from theforecast. The gross profit margin was 14.9%, an improvement of 0.4% from the previous
year. Operating profit totaled JPY15.461 billion, up 39.5% from the previous year and18.9% from the forecast.
KAGA FEI’s net sales totaled JPY149.455 billion, up 13.3% from the previous year and3.1% from the forecast. Gross profit totaled JPY14.69 billion, up 42.5% from the previous
year and 8.8% from the forecast. Operating profit totaled JPY3.654 billion, up 907.2%
from the previous year and 40.5% from the forecast. The gross profit margin was 9.8%, a
2% improvement.
EXCEL’s net sales totaled JPY65.296 billion, up 40.3% from the previous year and 0.5%
from the forecast. Gross profit totaled JPY4.247 billion, up 79.5% from the previous year
and 1.1% from the forecast. The gross profit margin was 6.5%, an improvement of 1.4%
from the previous year. Operating profit was JPY1.937 billion, a significant increase here.
The forecasted increase is 2%.

Effect of M&A for FY2022/3（million yen）

＊ EXCEL's actual results for FY2021/3 do not include results of overseas subsidiariesʼ FY2021/Jan-Mar period.

Net Sales

Gross profit / Gross profit margin

There was a significant increase in net sales in all three companies,
driven by the electronic components business.

Profit grew for all three companies thanks to improved profit
margins and increased gross profit in line with higher sales.

422,365+37,177+17,523+18,760

495,827+73,462+6,49447,936+4,382+1,88160,547+12,610

14.9%
14.5%
7.8%
5.1%
FY2021/3
ResultKaga
Electronics

KagaFEI

Excel

FY2022/3

FY2022/3
ResultSG&A / SG&A ratio

36,469
10.0%
7.5%

9.5%

8.6%

+956

7.2%

KagaFEI

8.0%

Excel

12.2%

6.5%

KagaFEI

Excel

FY2022/3

FY2022/3
ResultHigher expenses were absorbed by the increase in grossprofit, maintaining increased income. Operating income
margins also increased significantly.

+3,162

3.3%
KagaElectronics

Kaga
Electronics+3,291

FY2022/3
Result+1,93020,915+9,448+4,378

11,4674.8%
FY2021/3
Result39,632-54

FY2021/3
Result9.8%

Operating income / Operating income marjin

Although expenses increased with growth in sales, SG&A
ratios fell.

+2,260

11.3%

5.5%

4.5%

2.4%

3.0%

KagaFEI

Excel

4.2%

2.7%

0.3%
0.0%
FY2021/3
ResultKaga
Electronics

FY2022/3
ResultFY2022/3
FY2022/3(note) With respect to gross profit and operating income, figures presented above are before

6
consolidation adjustments between the two companies. For reference, after consolidation
adjustments, gross profit stood at -157million yen, and operating income came to -137 million yen.

These graphs show the impact of M&A for the fiscal year ended March 2022. First is net
sales. All three companies achieved a significant increase in sales, driven by theelectronic components business. Gross profit increased for all three companies due tothe increase in profits resulting from the sales increase and an improvement in profit
margins. The bar graph shows gross profit, and the line graph shows gross margin.
As you can see here, the gross profit margin is 12.2% compared to 11.3% for the Group
as a whole. As I reviewed earlier, we can see that the gross profit margins of eachcompany have improved significantly. The blue represents KAGA ELECTRONICS. 14.5% to14.9%. The red represents KAGA FEI. 7.8% to 9.8%. The green represents EXCEL. 5.1% to
6.5%.
SG&A expenses increased in line with the increase in sales, but the SG&A‐to‐sales ratio
decreased. As can be seen from the graph, KAGA ELECTRONICS reduced its share from
10% to 9.5%, FEI from 7.5% to 7.2%, and EXCEL from 4.8% to 3.3%. For the Group total,
it reduced from 8.6% to 8%.
Next, operating profit. The increase in gross profit absorbed the increase in expenses
and secured an increase in profit, and the profit margin also increased significantly. As
can be seen from the line graph, KAGA ELECTRONICS improved from 4.5% to 5.5%, FEIfrom 0.3% to 2.4%, and EXCEL from almost zero to 3%. The operating profit marginincreased significantly from 2.7% to 4.2% for the Group.

Financial Highlights: Electronic Component 2020年3⽉（Million Yen)

Net sales/Segment income//

500000Net sales
Segment income

433,852

450000YoY

 Segment Income＋80,398million Yen 22.7％Up＋9,956million Yen 122.1％Up

50000

400000353,45440000

35000030000030000

・Strong sales continued in the components sales businessthroughout the period as a result of previously capturing
demand from customers in a wide range of industries.
・Despite supply shortages of some parts, the Company
utilized the strengths of its procurement network as anindependent trading company to maintain widespread sales
quantities, which also boosted performance.
・Steady progress in PMI at acquired companies including
Kaga FEI and EXCEL contributed to profit growth.

25000020000018,10720000

150000100000 Net sales

8,151

10000

・Sales in the EMS business were solid, especially of
automotive/medical products and industrial equipment.
・Despite prolonged lockdowns to combat the renewed
spread of COVID-19 and part shortages, efforts weremade to minimize their impact by implementing thoroughprocess control under close cooperation with customers.

50000

0

0

FY2021/3
Results

FY2022/3
Results

7

These graphs show the impact of M&A for the fiscal year ended March 2022. First is net
sales. All three companies achieved a significant increase in sales, driven by theelectronic components business. Gross profit increased for all three companies due tothe increase in profits resulting from the sales increase and an improvement in profit
margins. The bar graph shows gross profit, and the line graph shows gross margin.
As you can see here, the gross profit margin is 12.2% compared to 11.3% for the Group
as a whole. As I reviewed earlier, we can see that the gross profit margins of eachcompany have improved significantly. The blue represents KAGA ELECTRONICS. 14.5% to14.9%. The red represents KAGA FEI. 7.8% to 9.8%. The green represents EXCEL. 5.1% to
6.5%.
SG&A expenses increased in line with the increase in sales, but the SG&A‐to‐sales ratio
decreased. As can be seen from the graph, KAGA ELECTRONICS reduced its share from
10% to 9.5%, FEI from 7.5% to 7.2%, and EXCEL from 4.8% to 3.3%. For the Group total,
it reduced from 8.6% to 8%.
Next, operating profit. The increase in gross profit absorbed the increase in expenses
and secured an increase in profit, and the profit margin also increased significantly. As
can be seen from the line graph, KAGA ELECTRONICS improved from 4.5% to 5.5%, FEIfrom 0.3% to 2.4%, and EXCEL from almost zero to 3%. The operating profit marginincreased significantly from 2.7% to 4.2% for the Group.

Financial Highlights: Information Equipment（Million Yen)

Net sales/Segment income
/
/

55000

50000

YoY

Net sales Net sales
Segment income
8000 Segment Income

48,389-8,772million Yen 18.1％Down-396million Yen 16.0％Down

7000

45000

6000

39,616
40000

・Although sales of PCs to educational institutions and PC
peripherals such as security software were robust, sales of PCs tocorporations were subdued as a result of the abatement of
remote working and product supply difficulties.

5000

35000

4000

30000

25000

2,482

・The LED installation business struggled due to extensionsof construction periods caused by difficulty procuring
materials/equipment and delivery delays.

3000

2,085
2000

20000

1000

15000

10000

0

FY2021/3
Results

FY2022/3
Results

8

Next is the information equipment business. Net sales totaled JPY39.616 billion andprofit was JPY2.085 billion.
Sales of PCs, security software and other PC peripherals to educational institutions werestrong, but sales to corporate customers were weak due to the feeling of one round of
remote work demand and product supply difficulties. The LED equipment installation
business remained sluggish, affected by difficulties in procuring materials and equipment
and the extension of construction periods due to delays in deliveries.
Pages 8 through 14 are a presentation of the most recent three months' results, so I will
omit them.

Reference

Financial Highlights (3 months)（million yen）

FY2021/3
4Q Results

FY2022/3
3Q Results

FY2022/3
4Q Results

129,675

143,143

YoY

QoQ

11.7%

10.4%

Net sales

128,099

Gross profit

14,28911.2%

15,62812.1%

17,786

12.4%

24.5%

13.8%

SG&A

10,339

8.1%

9,270

7.1%

11,529

8.1%

11.5%

24.4%

Opearating income

3,950

3.1%

6,357

4.9%

6,257

4.4%

58.4%

-1.6%

Ordinary income

4,010

3.1%

6,434

5.0%

6,569

4.6%

63.8%

2.1%

Profit attributable toowners of parent-1,329

-1.0%

4,790

3.7%

4,986

3.5%

ー

4.1%

EPS

-48.38ーー

182.57189.999Reference

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

Electronic
Components

Information
Equipment

Software

OthersTotal

Net sales
Segment income
Net sales

FY2021/3

FY2022/3

FY2022/3

4Q Results

3Q Results

4Q Results

106,750
2,732

728

Net sales

927

Segment income

156

Segment income
Net sales
Segment income

2.6%

14,451

Segment income

Net sales

117,005

5.0%

305

16.9%

-0

4.0%

152

-0.1%

6,357

869

6.5%

83

9.0%

6,460
3.4%

129,675
3.1%

4.2%

926

4,478
5.5%

5,105
13,315603

128,099
3,950

5.0%

7,587

5,969
325

5,878

122,440

152

2.4%

143,143
4.9%

6,257

4.4%

YoY

QoQ

14.7%

4.6%

86.8%

-13.1%

-7.9%

75.5%

19.2%

184.2%

-0.1%

53.5%

-46.9%

ー

8.2%

44.2%

-53.0%

0.1%

11.7%

10.4%

58.4%

-1.6%

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

10Reference

Financial Results by Company（３months）（million yen）

Kaga
Electronics

Net sales
Gross Profit
Operating income
Net sales

Kaga FEI

Gross Profit
Operating income
Net sales

Excel

Gross Profit
Operating income
Net sales

Total

Gross Profit
Operating income

FY2021/3

FY2022/3

FY2022/3

4QResults

3QResults

4QResults

72,423
10,488 14.5%
3,304 4.6%

73,748
10,839 14.7%
4,698 6.4%

82,054
12,077 14.7%
4,360 5.3%

39,511
3,064

37,876
3,945 10.4%

43,3384,419 10.2%

1,351
18,050850

506
16,163
733

7.8%
1.3%
4.5%

3.6%
4.7%

0.8%
128
308 1.7%
128,099
129,675
14,289 11.2%
15,628 12.1%

3,950

3.1%

6,357

4.9%

YoY

QoQ

+13.3%+11.3%+15.3%+11.4%+32.0%

-7.2%

+9.7%

+14.4%+44.2%+12.0%

1,235
17,7501,293

2.9%+143.8%

-8.6%

+9.8%

-1.7%

7.3%

+76.3%+52.1%

662

3.7%+417.1%114.6%+11.7%+10.4%+24.5%+13.8%+58.4%-1.6%

143,143

17,786 12.4%
6,257

4.4%

Note: With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.

11Reference

Effect of M&As (3months)（million yen）

Net Sales

Gross profit / Gross profit margin

There was a significant increase in net sales in all three companies,
driven by the electronic components business.

128,099+9,630+3,826+1,586

143,143+15,043

Profit grew for all three companies thanks to improved profit
margins and increased gross profit in line with higher sales.

14,289+1,589

14.5%

14.7%

7.8%
4.5%
FY2021/3
4QResult

Kaga
Electronics

KagaFEI

Excel

FY2022/3
4QResult

11.2%

FY2021/3
4QResult

Kaga
Electronics

FY2022/3

SG&A / SG&A ratio

10,339
10.0%
8.1%
6.3%
3.5%
FY2021/3
4QResult

9.5%

+614

+27

KagaFEI

8.1%

FY2022/3

Excel

KagaFEI

Excel

FY2022/3
4QResult

Higher expenses were absorbed by the increasein gross profit. Income increased significantly for all threecompanies.

+1,189

3.4%
KagaElectronics

12.4%

7.3%

Operating income / Operating income margin

3,950
7.2%

10.2%

+3,496FY2022/3

Expenses increased with growth in sales,in addition to seasonal factors such as bonus reserves
in 4Q.
11,529+546

17,786+559+1,355+1,055
5.3%

4.6%
3.1%

FY2022/3
4QResult

1.3%
0.8%
FY2021/3
4QResult

Kaga
Electronics

+534

+728

2.9%

6,257
+2,307

3.7%

KagaFEI

Excel

4.4%

FY2022/3
4QResult

FY2022/3(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 -5 million yen, and operating income came to -0 million yen.

12

Please go to page 15, and here I will review the difference between the actual results
and the previous forecast for the fiscal year ended March 2022. First, net sales exceeded
JPY20.827 billion by segment. The breakdown is JPY19.852 billion increase in electronic
components, JPY383 billion decrease in information equipment, JPY232 billion decreasein software, and JPY1.59 billion increase in others.
By company, KAGA ELECTRONICS increased by JPY16.075 billion, KAGA FEI by JPY4.455
billion, and EXCEL by JPY296 billion.
Operating profit increased by JPY3.415 billion. By segment, the electronic components
business increased by JPY3.307 billion, information equipment increased by JPY85
million, software decreased by JPY226 million, and others increased by JPY126 million.
By company, KAGA ELECTRONICS increased by JPY2.461 billion, KAGA FEI by JPY1.054
billion, and EXCEL by JPY37 million.

Reference

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

Net sales/Segment income//

140000117,005

120000YoY

Net Sales
Segment Income

14000

122,440

 Net sales
 Segment
Income＋15,690million Yen 14.7％Up＋2,372million Yen 86.8％Up

12000

106,750

QoQ

100000

10000

80000

8000

5,878
5,105

60000

40000

 Net sales
 Segment
Income＋5,435million Yen 4.6％Up-772million Yen 13.1％Down

6000

4000

2,732
20000

2000

0

0

FY2021/3
4QResults

FY2022/3
3QResults

FY2022/3
4QResults

13

Reference

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

Net sales/Segment income
/
/

18000

YoY

Net Sales
Segment Income

4000

16000

3500

14,451
13,315

14000

3000

12000

2500

10000

2000

7,587

8000

 Net sales
 Segment
Income-1,135million Yen

7.9％Down＋140million Yen 19.2％Up

QoQ
 Net sales
 Segment
Income＋5,728million Yen 75.5％Up＋563million Yen 184.2％Up

1500

6000

4000

869

728
305

2000

1000

500

0

0

FY2021/3
4QResults

FY2022/3
3QResults

FY2022/3
4QResults

14

Reference

Changes from Previous forecast（announced on February 3, 2022)（million yen）

Operating income

Net sales< by Business Segment >+19,852

-383

-232

+1,590495,827+20,827

17,500+3,307

+85

-226

+126

Software

Others

20,915+3,415475,000

FY2022/3 Electronic Information
Forecast components equipment

Software

Others

FY2022/3
ResultFY2022/3 Electronic Information
Forecast components equipment

FY2022/3
ResultNote: Figures of each segment income are not inter-segment adjusted. Total amount is inter-segment
adjusted (operating income).

<by company>+4,455+296+16,075

495,827+20,827

17,500+2,461+1,054+37

Kaga
Electronics

Kaga FEI

Excel

20,915+3,415475,000

FY2022/3
Forecast

Kaga
Electronics

Kaga FEIFY2022/3

Excel

FY2022/3
ResultFY2022/3
Forecast

FY2022/3

FY2022/3
ResultNote︓With respect to gross profit and operating income, figures presented above are before consolidation.
adjustments between the three companies.

15

Reference

Segment disclosure associatedwith the Medium-Term Management Plan

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

Current segments

Segments in Medium‐Term Management Plan

Legal financial accounting

Management Accounting

Components sales businessElectronic
components

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

EMS business Electronic equipment
manufacture contracting
services

Informationequipment

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

Software Production of CG video andsoftware

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

Electronic
components

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

EMS

 Electronic equipment manufacture
contracting services

CSI

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

CSI: Consumer & System Integrator

 Production of CG video andsoftware

Others Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods
16

Reference

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

＊announced on February 3, 2022

Net sales
Electronic
Componens
Segment income
EMS

CSI

OthersTotal

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

FY2021/3

FY2022/3

Results

Previous Forecasts(*)

262,318
2,961

313,000
1.1%

99,599
5,539

5.6%

5.1%

2,000

3.2%

400

5.8%

17,500

3.4%

7,356

6.2%

39,616
5.0%

2,085

5.3%

12,5523.3%

475,000
2.7%

11,094
117,828

12,000422,365
11,4672.8%

40,00012,057
387

6,400

YoY

325,830

110,000

48,389
2,482

8,700

FY2022/3
Results255

2.0%

495,827
3.7%

20,9154.2%

vsForecasts+24.2%+4.1%+274.6%+27.5%+18.3%+7.1%+32.8%+14.9%-18.1%-1.0%-16.0%

+4.3%

+4.1%

+4.6%

-34.0%-36.0%+17.4%+4.4%+82.4%+19.5%

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

17

Next, I will review our performance by segment based on our medium‐termmanagement plan segmentation for the fiscal year ended March 2022.
Net sales of electronic components business totaled JPY325.83 billion, up 24.2% fromthe previous year and 4.1% from the forecast. Segment profit totaled JPY11.094 billion,
up 274.6% from the previous year and 27.5% from the forecast.
Next is the EMS business. Net sales totaled JPY117.828 billion, up 18.3% from theprevious year and 7.1% from the forecast. Segment profit totaled JPY7.356 billion, up
32.8% from the previous year and 14.9% from the forecast.
Sales in the CSI business totaled JPY39.616 billion, down 18.1% from the previous year
and down 1% from the forecast. Segment profit was JPY2.085 billion, down 16% fromthe previous year and up 4.3% from the forecast.
Other businesses posted sales of JPY12.552 billion, up 4.1% from the previous year and4.6% from the forecast. Segment profit was JPY255 million, down 34% from the previous
year and 36% from the forecast.

Reference

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

Net sales
Electronic
Componens
Segment income
EMS

CSI

OthersTotal

FY2021/3

FY2022/3

FY2022/3

4QResults

3QResults

4QResults

80,405
1,304

88,0791.6%

29,383

Net sales
Segment income

1,649

Segment income

728

5.6%

Segment income

261

5.0%

Segment income

3,950

6.9%

305

6.8%

64

4.0%

6,357

1,893

5.7%

869

6.5%

3,634
2.3%

126

3.5%

143,143

129,675
3.1%

3.6%

13,315

2,865

128,099

Net sales

2,140

3,321
33,232

7,587

3,858

Net sales

4.3%

31,142

14,451

Net sales

3,824

92,960

4.9%

6,257

4.4%

YoY

vs
Forecasts+15.6%+5.5%+154.6%-13.1%+13.1%+6.7%+14.8%-11.6%-7.9%+75.5%+19.2%+184.2%-5.8%+26.8%-51.5%+95.1%+11.7%+10.4%+58.4%-1.6%

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

18

Page 18 is a summary of the recent three months by segment.

Balance Sheet Main Items（million yen）

Total assets

Total liabilities and net assets

272,139

272,139+35,135+35,135

237,004

237,004
207,638

207,638
166,339

Total liabilities+24,397

233,984+33,805

141,942

Current assets

121,388

200,179
174,331

33,30636,825

FY2020/3

FY2021/3

38,15586,25095,062

FY2020/3

FY2021/3

105,800

Total net assets+10,737

Non-current assets+1,329FY2022/3

FY2022/3

19

I would like to continue with an analysis of key items on the balance sheet. Total assets
amounted to JPY272.139 billion, up JPY35.135 billion from the previous year. Current
assets totaled JPY233.984 billion, up JPY33.805 billion from the previous year. Fixed
assets totaled JPY38.155 billion, up JPY1.329 billion from the previous year.
Regarding liabilities and net assets, total liabilities amounted to JPY166.339 billion, up
JPY24.397 billion. Net assets totaled JPY105.8 billion, an increase of JPY10.737 billion.

Balance Sheet Main Items（million yen,day）

Inventories

Accounts receivable/Accounts payable
93.7

100,000
180,000

46.1

90.0

Inventory turnover

90,00080,00026.3

89.0

160,000

79.8

32.8

70.0

68.6

140,000
30.0

64.6

62,607

A/P turnover

120,948+12,553+24,658

70,000A/R turnover

75.2

50.0

50.0

120,000

108,394

10.0

Notes and A/R

60,000100,000

91,37150,00079,85486,49330.0+6,639‐10.0

37,94840,00080,00070,18810.0

31,908‐30.0
30,000Inventories

Notes and A/P

60,000‐10.0

40,00020,000

‐50.0

‐30.0

20,00010,0000‐70.0
02020/3末

2021/3末

2022/3末

notes︓Inventory turnover ＝ Inventories ÷ Net Sales × 365（day）‐50.0

FY2020/3

FY2021/3

FY2022/3

notes︓・Notes and A/R are amounts including Electronically recorded monetary claims-operating
・Notes and A/P are amounts including Electronically recorded obligations - operating
・A/R turnover ＝ Notes and A/R ÷ Net sales × 365（day）
・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 365（day）

20

The next item on the balance sheet is inventories. Inventories totaled JPY62.607 billion,
up JPY24.658 billion from the previous year. Inventory turnover days increased to 46.1
days.
These are trade receivables and trade payables. Trade receivables amounted to
JPY120.948 billion, up JPY12.553 billion from the previous year. Trade payables totaled
JPY86.493 billion, an increase of JPY6.639 billion. The trade receivables turnover was 89days, and the trade payables turnover was 68.6 days.

Cash and Deposits/Interest Bearing Debts/Cash Flows（million yen）

Cash and deposits /Interest bearing debts
0.37

0.42

Cash flows（times）

0.48
0.50

D/E ratio
70,000

-0.19

-0.08

0.10
0.00

Net D/E ratio

60,00051,171+12,910‐0.50

50,00043,38445,63638,26140,000Interest bearing debts

41,051-4,58522,406

Cash flows fromfinancing activities

‐1.00

9,999
30,0001,155

28,736‐1.50

Cash and deposits-3,651-2,453-1,554-6,772‐2.00

20,000-6,851-7,544

Cash flows fromoperating activities

Cash flows frominvesting activities‐2.50
10,0002020/3末0‐3.00

FY2020/3

FY2021/3

2022/3

FY2020/3

202/3末FY2021/3

2022/3末

FY2022/3

note︓D/E ratio＝ Interest bearing debts ÷ Shareholderʼs equity
Net D/E ratio ＝Interest bearing debts - Cash and deposits） ÷ Shareholderʼs equity

21

The next item on the balance sheet is inventories. Inventories totaled JPY62.607 billion,
up JPY24.658 billion from the previous year. Inventory turnover days increased to 46.1
days.
These are trade receivables and trade payables. Trade receivables amounted to
JPY120.948 billion, up JPY12.553 billion from the previous year. Trade payables totaled
JPY86.493 billion, an increase of JPY6.639 billion. The trade receivables turnover was 89days, and the trade payables turnover was 68.6 days.

Major Business Indicators（million yen）

Equity ratio
350,000

300,000

ROE
0.400

37.7%

38.4%

13.5%

38.8%

272,139+35,135

15.7%

7.6%
0.350

237,004

250,000

207,6380.300

200,000

Total assets

1.3

2.7

3.1
Net profit margin

150,000

0.250

2.7

105,680
100,000

78,28490,967

2.6

2.6

Financial leverage

2.1

1.9

1.9

Total asset turnoverFY2020/3

FY2021/3

FY2022/3+14,713

0.200

Shareholdersʼ equity
50,0000

0.150

FY2020/3

FY2021/3

FY2022/3

22

Next, I would like to explain management KPIs. Total assets amounted to JPY272.139
billion, an increase of JPY35.135 billion. Shareholders' equity totaled JPY105.68 billion,
up from JPY14.713 billion in the previous year. As a result, the equity ratio is 38.8%.
Next is ROE. ROE came in at 15.7%. This breakdown shows a total asset turnover of 1.9,
financial leverage of 2.6, and net profit margin of 3.1.

Forecasts for FY2023/3

Forecasts for FY2023/3（million yen）

FY2022/3
Results
Net sales

FY2023/3
Forecasts

495,827

YoY

510,000

2.9%

Operating income

20,915

4.2%

21,2004.2%

1.4%

Ordinary income

21,456

4.3%

21,200

4.2%

-1.2%

Profit attributable toowners of parent

15,401

3.1%

14,500

2.8%

-5.9%

EPS（Yen）

576.45552.42

ROE

15.7%

13.0%

-

24

I would like to continue with our earnings forecast for the fiscal year ending March 2023.
Net sales are projected at JPY510 billion. This represents a 2.9% increase over theprevious year. Operating profit is projected at JPY21.2 billion, an increase of 1.4%. We
also forecast an ordinary profit of JPY21.2 billion, the same amount as operating profit.
This is a 1.2% decrease from the previous year. Net income attributable to shareholdersof the parent company is projected at JPY14.5 billion, a decrease of 5.9%.
As a result, EPS is projected to be JPY552.42 and ROE is 13%.

FY2022/3 vs FY2023/3 Factors of Increase/Decreasein Operating Income

Personnel costs
Packing/shipping+2,320+863（million yen）

+4,753+4,10020,915+8,511
Spot sales-3,100-3,163-1,368Spot sales
Sales volumes

SG&A

21,200

SG&A

11,467
Sales volumes

Income increase: 9,448

2021/3Results

Income increase: 285

2022/3Results

2023/3
Forecasts
25

I would like to review the factors behind the increase or decrease in operating profit for
the fiscal year ended March 2022 and the fiscal year ending March 2023. The bar in the
middle of the chart shows the actual results for the fiscal year ended March 2022, with
an operating profit of JPY20.915 billion, an increase of JPY9.448 billion over the previous
year. The increase was due to an increase of JPY8.511 billion in sales volume, an increaseof JPY4.1 billion in spot sales, and a decrease of JPY3.163 billion in SG&A expenses.
On the right is the forecast for the fiscal year ending March 2023, with an operating
profit of JPY21.2 billion, an increase of JPY285 million over the previous year. The
breakdown is as follows: an increase of JPY4.753 billion due to an increase in sales
volume, a decrease of JPY3.1 billion due to a decrease in spot sales, and a decrease of
JPY1.368 billion due to an increase in SG&A expenses.

Forecasts for FY2023/3 by Segment（million yen）

FY2022/3

FY2023/3

Results

Forecasts

Net sales
Electronic
components Segment income

433,852

Information Net sales
equipment Segment income

39,616

Software

OthersTotal

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

18,1272,085

447,000
4.2%

5.3%

0.1%

2,000
100

3.2%

600

5.1%

21,200

-4.1%
44.5%

2.5%

ー
2.1%

3.0%

510,000
4.2%

2.2%
-1.6%

20,000495,827
20,934

4.1%

4,000

19,590626

18,5003.0%

39,000

2,767
-26

YoY

-4.2%
2.9%

4.2%

1.4%

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

26

Business performance by segment. The electronic components business is projected topost sales of JPY447 billion, up 3% from the previous year, and segment profit of JPY18.5
billion, up 2.2%.
In information equipment, we forecast net sales of JPY39 billion, down 1.6%, andsegment profit of JPY2 billion, down 4.1%.
For software, we forecast net sales of JPY4 billion, an increase of 44.5%, and a segment
profit of JPY100 billion.
In the other segment, we forecast net sales of JPY20 billion, up 2.1%, and segment profitof JPY600 million, down 4.2%.

ReferenceFinancial Highlights by Business Segment <Net Sales>（million yen）

Net
売上⾼
Sales
143,143
128,099

104,729
84,1302,904
491
12,5374,600
783
10,654105,406
4,114
730
10,745

129,675

5,969

117,059927
14,451

4,530
669
8,077

105,949
4,120
568
10,636

4,478
603
7,587

6,460
926
13,315

Total
YoY
QoQ

︓
︓

YoY

︓

+490

QoQ ︓

+1,981Other

Software
YoY ︓
QoQ ︓

106,750
88,69090,62489,816

103,782

117,005

122,440-1+322

Information equipment
YoY ︓
QoQ ︓

68,196-1,135+5,728

Electronic equipment
YoY ︓
QoQ ︓

2021/3
1QResults+15,043+13,4672021/3
2QResults

2021/3
3QResults

2021/3
4QResults

2022/3
1QResults

2022/3
2QResults

2022/3
3QResults+15,690+5,4352022/3
4QResults

28

Financial Highlights by Business Segment < Segment Income >（million yen）

Segment Income
6,357

6,276

152

152
83

305

869

4,452

3,082
2,778
137

1,656

131
577

112
20
592

3,950

217

3,848

325

568

103

728

5,878
5,124
3,699

583
1,897

2,335

-44
-101

2021/3
2QResults

2021/3
3QResults

YoY
QoQ

︓
︓

YoY
QoQ

︓
︓

Other
-172
+0

-73
+83

Information equipment
YoY
QoQ

︓
︓

+140
+563

Electronic equipment
YoY
QoQ

2021/3
4QResults+2,326
-81

3,423

2,732

1,185

2021/3
1QResults︓︓

Software

342

156

Total
YoY
QoQ

-67

-42

-0

2022/3
1QResults

2022/3
2QResults

2022/3
3QResults︓︓+2,372-772

2022/3
4QResults

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

29

Net Sales by Region（million yen）

Net Sales
Total

143,143

105,949
72,14258,14353,334

7,419
1,894

3,827
4,687

6,175
3,573

38,07039,0382021/3
2QResults

2021/3
3QResults

61,266

68,56278,484

55,101

56,6195,276
3,467

47,212

YoY
QoQ

︓
︓

+15,043+13,467Japan

117,059

84,130︓︓

129,675

128,099
104,729 105,406

YoY
QoQ

7,454
3,915

8,721
4,301

39,47742,7702022/3
1QResults

2022/3
2QResults

8,675
3,938

9,249
4,718

48,49850,6902022/3
3QResults

2022/3
4QResults+6,342+9,921

North America
YoY
QoQ

︓
︓

+3,972
+573

YoY
QoQ

︓
︓

YoY
QoQ

︓
︓

Europe+1,251+779

Asia+3,477+2,192

21,4822021/3
1QResults

2021/3
4QResults

30

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

Net sales

OperatingincomeForex
Assumptionfor2023/3(yen)112.381,573

46116.00

15.48

17.03

242

9

18.00

THB

3.42

3.44

251

14

3.50

HKD

13.68

14.44

208

6

14.50

EUR

123.70130.50100130.00

FY2021/3
Results

FY2022/3
Results

（Yen）

（Yen）

USD

106.06RMB

31

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

This concludes my review of financial results for the fiscal year ended March 2022 andour forecast for the fiscal year ending March 2023.
Thank you very much for your kind attention.

■ 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.