May 7, 2015

Summary of Consolidated Financial Results
For the Year Ended March 2015 [Japan GAAP]
Name of Company:
KAGA ELECTRONICS CO., LTD.
Stock Code:8154
URL: http://www.taxan.co.jp/
Stock Exchange Listing:Tokyo Stock Exchange, First Section
Representative
Title: President & COO
Name: Ryoichi Kado
Title: Director, Administration Headquarters
Contact Person
Name: Eiji Kawamura
Phone:+81-(0)3-5657-0111
Date of regular general meeting of shareholders:June 26, 2015 (tentative)
Date of commencement of dividend payment:
June 29, 2015 (tentative)
Date of filing of securities report:
June 26, 2015 (tentative)
Supplementary explanatory documents:
Yes
Earnings presentation:
Yes (For institutional investors)(Yen in millions, rounded down)
1. Financial results for the current fiscal year (April 1, 2014 – March 31, 2015)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ended March 2015
Fiscal year ended March 2014
Note: Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

255,143

(1.1)

6,362

24.6

7,664

31.1

4,416

13.9

5,847
202.8
43.5%
122.2%

3,877

771.8

257,852
19.2
5,106
305.2
FY ended March 31, 2015:
7,592 million yen
FY ended March 31, 2014:
5,290 million yen
Net income per
share
fully diluted

Net income per
share
Yen

Fiscal year ended March 2015
Fiscal year ended March 2014
Ref.: Equity in income/losses of affiliates

Return on
equityRatio of ordinary
income to assets

%

%

Yen

156.28137.22
FY ended March 2015: -million yen

Ratio ofoperating income
to net sales
%

7.8
6.0
7.6
4.9
FY ended March 2014: - million yen

2.5
2.0

(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen

As of March 31, 2015
As of March 31, 2014
Ref.: Shareholders’ equity(3)

Equity ratio

Million yen

Net assets per share%

Yen

127,948
59,60346.6
2,108.04
126,028
52,82541.9
1,868.07
FY ended March 2015: 59,564 million yen
FY ended March 2014: 52,786 million yen

Cash flow position (Consolidated)
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

Million yen

Million yen

Million yen

Million yen

9,127
3,334

(1,465)(3,339)(4,431)
1,024

17,56913,361

Fiscal year ended March 2015
Fiscal year ended March 2014
2. Dividends
End of
1Q

Dividend per share
End of End of End of
Full year
2Q
3Q
FY

Yen

Yen

Fiscal year ended March 2014

-

15.00

Fiscal year ended March 2015

-

15.00

Yen

Annualaggregate
amountPayout ratio(Consolidated)

Dividends/
net assets(Consolidated)

Yen

Yen

Million yen

%

%

-

20.00

35.00

989

25.5

1.9

-

25.00

40.00

1,130

25.6

2.0

Fiscal year ending March 2016
20.00
20.00
40.00
24.6
(estimated)
Notes: Breakdown of year-end dividend for FY3/14: Ordinary dividend: 15.00 yen; Commemorative dividend: 5.00 yen (tocommemorate completion of new head office building)
Breakdown of year-end dividend for FY3/15: Ordinary dividend: 15.00 yen; Extraordinary dividend: 10.00 yen3. Forecast for the fiscal year ending March 2016 (Consolidated, April 1, 2015 - March 31, 2016)(Percentage figures represent year on year changes)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareMillion yen%

Million yen%

Million yen%

Million yen%

Yen

First half
125,000
3.9
3,100
1.1
3,300
(9.3)
2,200
2.0
77.86
Full year
260,000
1.9
6,500
2.2
7,000
(8.7)
4,600
4.2
162.80* Notes(1) Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation):
None(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
Note: For more information, please refer 5. Consolidated Financial Statements (5) Note to the consolidated financial statements (Changes inaccounting policies) on page 16.

(3) Number of shares outstanding (common stock)(a) Shares outstanding
As of March 31, 2015:(including treasury stock)

28,702,118

As of March 31, 2014:

28,702,118(b) Treasury stock

As of March 31, 2015:

446,040

As of March 31, 2014:

445,002(c) Average number of shares
outstanding during the year

As of March 31, 2015:

28,256,695

As of March 31, 2014:

28,257,761(Reference) Non-consolidated Financial Results
1. Financial results for the fiscal year ended March 2015 (April 1, 2014 – March 31, 2015)(1) Result of operations (Non-consolidated)(Percentage figures represent year on year changes)
Net sales
Fiscal year ended March 2015
Fiscal year ended March 2014

Operating income

Million yen%

90,13894,517(4.6)
14.2

Net income

Million yen%

Million yen%

Million yen

%

324
115

181.1
-

2,845
2,152

32.2
(14.1)

1,790
678

164.1
-

Net income
per share

Net income per share
fully diluted
Yen

Fiscal year ended March 2015
Fiscal year ended March 2014

Ordinary income

Yen

63.37
24.00

-

Note: Percent change of net income for FY2014 is shown as “–” because it exceeded 1000% (2359.5%), and percent change of operating income
is shown as “–” because the previous year’s number was negative.

(2) Financial Position (Non-consolidated)
Total assets
As of March 31, 2015

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

73,071

37,18650.9

1,316.06

35,65648.7

1,261.85

As of March 31, 2014
73,149Ref.: Shareholders’ equity
Fiscal year ended March 2015: 37,186 million yen

Fiscal year ended March 2014: 35,656 million yen*Status of implementation of audit procedures
The rule mandating audit procedures (under the Financial Instruments and Exchange Act) does not apply to this Summary of
Financial Results. It is under the review procedure process based upon the Financial Instruments and Exchange Act at the time of
disclosure of this report.
*Cautionary statement regarding forecasts of operating results and special notes
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 the forecasts, please see “Results of Operations” on page 2 of Supplementary
Information.

Index for Supplementary Information
1.

Results of Operations ....................................................................................................................................................................2(1)

Overview on consolidated business performance ....................................................................................................................2(2)

Overview of financial condition ...............................................................................................................................................3(3)

Fundamental policy for earnings allocations and dividends in the current and next fiscal yeas ...............................................32.

Corporate Group ...........................................................................................................................................................................4

3.

Management Policies ....................................................................................................................................................................6(1)

Fundamental management policy.............................................................................................................................................6(2)

Targeted performance indicators ..............................................................................................................................................6(3)

Medium- and long-term management strategies ......................................................................................................................6(4)

Key issues ................................................................................................................................................................................6(5)
4.

Other important items concerning management .......................................................................................................................6
Fundamental policy regarding choice of accounting standard ......................................................................................................7

5.

Consolidated Financial Statements ...............................................................................................................................................8(1)

Consolidated balance sheet ......................................................................................................................................................8(2)

Consolidated statements of income and comprehensive income ............................................................................................10(3)

Statements of changes in net assets ........................................................................................................................................12(4)

Consolidated statements of cash flows ...................................................................................................................................14(5)

Notes to consolidated financial statements ............................................................................................................................16(Notes to going concern assumptions) ........................................................................................................................................16(Changes in accounting policies) ................................................................................................................................................16(Segment information etc.)..........................................................................................................................................................16(Per-share information) ...............................................................................................................................................................20(Subsequent events) ....................................................................................................................................................................20

6.

Non-consolidated Financial Statements ......................................................................................................................................21(1)

Balance sheets ........................................................................................................................................................................21(2)

Statements of income .............................................................................................................................................................24(3)
7.

Statement of changes in shareholders’ equity......................................................................................................................25
Other Information .......................................................................................................................................................................27(1)

Changes in directors and corporate auditors ..........................................................................................................................27(2)

Other information...................................................................................................................................................................27

1

1.

Results of Operations(1)

Overview on consolidated business performance
In the fiscal year ended March 31, 2015, consumer spending following the April increase in the Consumption Tax was
sluggish and raw material prices surged due a weaker yen. Although these factors caused concerns, the Japanese economy
staged a gradual recovery as corporate earnings rebounded and the employment picture brightened because of economic
measures by the Japanese government and the Bank of Japan’s monetary easing.
In the electronics industry, the principal area of operations for the KAGA ELECTRONICS Group, demand for PCs andconsumer electronics remained weak. But overall demand in the industry increased with growth fueled by strong demand forsmartphones, tablets and other mobile devices, automotive devices and medical and healthcare products. In addition, there
was growth in new market sectors for environmental and energy products, IoT (Note 1) and wearable terminals.
In this environment, the KAGA ELECTRONICS Group reinforced collaboration among group companies, worked onincreasing sales to major current customers, added new products and strengthened its overseas network. There were also costcutting measures, such as moving the head office to lower rental expenses.
Consolidated net sales in the current fiscal year decreased 1.1% from the previous fiscal year to 255,143 million yen,operating income increased 24.6% to 6,362 million yen, ordinary income increased 31.1% to 7,664 million yen, and net
income increased 13.9% to 4,416 million yen.
Note 1: IoT is the abbreviation for “Internet of Things,” a service that connects all things through the Internet.

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components and otherproducts, electronics manufacturing service (EMS) (Note 2), and other activities)
The volume of semiconductors for communication equipment in Japan decreased because of a change in distribution
channels. But sales were higher overseas for electronic components and semiconductors, EMS for electronic devices, andin other sectors. The result was a 1.2% increase in segment sales to 197,188 million yen and a 27.5% increase inoperating income to 4,852 million yen.
Note 2: Electronics manufacturing service is a term used for the provision of product development and manufacturing services on an
outsourcing basis.

(b) Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, andother products)
Sales of PCs increased due to replacement demand created by the end of Windows XP support. Sales of housing-related
products and environmental-related items were also strong. However, there was sluggish demand for digital consumer
electronics. As a result, segment sales decreased 9.6% to 42,024 million yen and operating income was 707 million yen,down 18.4% from the previous fiscal year(c) Software (Production of computer graphics, planning and development of amusement products, and other activities)
In this segment, orders for development of amusement products such as electronic toys were sluggish. Activities in thissegment increased focus on development and sales of computer graphics and game software, in addition to cost cutting.
Segment sales decreased 12.6% to 2,889 million yen but operating income was up 458.0% to 442 million yen.
(d) Others (Electronic device repairs and support, manufacturing and sales of amusement products, sales of sporting goods,
and other activities)
Sales of arcade amusement machines in Japan and sales of golf products were both weak. As a result, segment sales
decreased 1.6% to 13,040 million yen and operating income was down 58.6% to 169 million yen.
In the fiscal year ending on March 31, 2016, in the electronics industry, more growth is anticipated in the new markets. In
addition, markets that were strong in the current fiscal year are also expected to continue to expand.
In this environment, the KAGA ELECTRONICS Group will continue to strive to expand its business while strengthening its
activities in automotive devices, communication products and other categories with good prospects for growth. Group
companies will also concentrate on increasing sales in the EMS business and environmental business, which are operations
where the group can add value.
Based on this outlook, the current forecast for consolidated performance in the fiscal year ending on March 31, 2016 is asfollows:(Consolidated performance forecast)(Year on year)
Net sales
260,000 million yen
up 1.9%Operating income
6,500 million yen
up 2.2%
Ordinary income
7,000 million yen
down 8.7%
Profit attributable to owners of parent
4,600 million yen
up 4.2%2

(2)Overview of financial condition(a) Assets, liabilities and net assets
Assets increased 1,920 million yen from one year earlier to 127,948 million yen at the end of the fiscal year mainly
because of an increase in cash and deposits.
Liabilities decreased 4,857 million yen to 68,345 million yen mainly because of a decrease in short-term loans payable
and notes and accounts payable - trade.
Net assets increased 6,777 million yen to 59,603 million yen mainly because of net income.
(b) Cash flows
There was a net increase of 4,207 million yen in cash and cash equivalents to 17,569 million yen at the end of the fiscal
year.
(Operating activities)
Net cash provided by operating activities was 9,127 million yen compared with 3,334 million yen one year earlier. The
income before income taxes and minority interest was the major reason.
(Investing activities)
Net cash used in investing activities was 1,465 million yen compared with 3,339 million yen one year earlier. The
primary use of cash was payments for the purchase of property, plant and equipment.
(Financing activities)
Net cash used by financing activities was 4,431 million yen compared with the positive cash flow 1,024 million yen one
year earlier. This was primarily a decrease in short-term loans payable.

(Reference) Cash flow index trends
Fiscal year
ended
March 2011

Fiscal year
ended
March 2012

Fiscal year
ended
March 2013

Fiscal year
ended
March 2014

Fiscal year
ended
March 2015

Shareholders’ equity ratio
40.9%
40.5%
43.5%
41.9%
46.6%
Shareholders’ equity ratio at market value
23.6%
20.9%
19.4%
32.0%
32.4%
Debt repayment multiple
2.12 years
14.97 years
2.15 years
5.17 years
1.60 years
Interest coverage ratio
52.0
6.6
51.6
25.2
77.9
Shareholders’ equity ratio is shareholders’ equity divided by total assets.
Shareholders’ equity ratio at market value is market capitalization divided by total assets.
Debt repayment multiple is interest-bearing debt divided by operating cash flows.
Interest coverage ratio is operating cash flows divided by interest expenses.
Notes:
1. All figures are calculated based on consolidated financial data.
2. Market capitalization uses the number of shares issued less treasury stock.
3. Cash flows are operating cash flows.
4. Interest-bearing debt is the sum of all liabilities on the balance sheet on which the Group is obligated to pay interest.
(3)

Fundamental policy for earnings allocations and dividends in the current and next fiscal yeas
The Company’s fundamental policy is to pay a steady and consistent dividend to shareholders that reflect consolidated
performance as well as the need to establish a more powerful financial position and base of operations from a long-term
stable perspective.
Based on the policy and performance in the fiscal year that ended on March 31, 2015, KAGA ELECTRONICS plans to pay a
year-end dividend of 25 yen per share. This is the sum of a 15 yen ordinary dividend and a 10 yen extraordinary dividend.
With the interim dividend of 15 yen per share, this will result in an annual dividend of 40 yen per share.
For the fiscal year ending on March 31, 2016, The Company plans increase the ordinary dividend to dividend per share of 40
yen, including an interim dividend of 20 yen.

3

2.

Corporate GroupThe KAGA ELECTRONICS group of companies (the Group) is made up of KAGA ELECTRONICS CO., LTD. (the Company),
49 consolidated subsidiaries (22 in Japan, 27 overseas) and 2 affiliates that are not accounted for using the equity method (1 inJapan, 1 overseas). These companies are engaged primarily in the following activities: the electronic components business,
including the development, manufacture and sale of semiconductors and general electronic components and EMS (electronic
manufacturing services); and the information equipment business, including the sale of personal computers and peripherals,
photography and imaging products, and original-brand products; and the software business includes the production of computer
graphics for animation, the planning and development of products for amusement devices, and other activities. Other businesses
include repair and support services for electronic devices, manufacturing and sales of amusement products, sales of sporting goods,
and other activities.
<Japan>[Electronic components business]
Sales
KAGA TECH CO., LTD.
KAGA DEVICES CO., LTD.
AD DEVICE CORPORATION<Overseas>[Electronic components business]
Sales
KAGA (H.K.) ELECTRONICS LTD.
KAGA (SINGAPORE) ELECTRONICS PTE.LTD.
KAGA (KOREA) ELECTRONICS CO., LTD.
KAGA (TAIWAN) ELECTRONICS CO., LTD.
KAGA DEVICES (H.K.) LTD.
KAGA ELECTRONICS (USA) INC.
KAGA (SHENZHEN) TRADING CO., LTD.
AD DEVICE (H.K.) LIMITEDKAGA (EUROPE) ELECTRONICS LTD.
KAGA DEVICES INDIA PRIVATE LIMITEDAD DEVICE (Thailand) CO., Ltd.
AD DEVICE (SHANGHAI) CO., Ltd.

Manufacturing and sales
KAGA COMPONENTS CO., LTD.

KAGA EDUCATIONAL MARKETING CO., LTD.
KAGA TECHNO SERVICE CO., LTD.

[Software business]
DIGITAL MEDIA LAB., INC.
ACCESS GAMES INC.
WORKBIT CORPORATIONSI ELECTRONICS LTD.
CyberFront Corporation
Dreams.Co.,LTD.

KAGA ELECTRONICS CO., LTD.
(procurement and sales)[Information equipment business]
Sales
KAGA SOLUTION NETWORK CO., LTD.
KAGA HIGHTECH CO., LTD.

Manufacturing and sales
KAGA COMPONENTS(HONG KONG)LIMITEDKAGA (SHENZHEN) ELECTRONICS CO.,LTD.
KAGA COMPONENTS (MALAYSIA) SDN. BHD.
KAGA (SHANGHAI) ELECTRONICS CO., LTD.
KAGA ELECTRONICS (THAILAND) CO., LTD.
DONGGUAN POWERTEK ELECTRONICS CO.,LTD.
KAGA (DALIAN) ELECTRONICS CO., LTD.
KD TEC s.r.o.
KAGA TAXAN ELECTRONICS (SUZHOU) CO.,LTD.

Three other companies
SUZHOU KAGA TAXAN TRADING CO., LTD.
KAGA ELECTRONICS (SUZHOU) CO., LTD.

[Other business]
KAGA CREATE CO., LTD.
MICRO SOLUTION CO., LTD.
KAGA SPORTS CO., LTD.
KAGA AGENCY CO., LTD.
KAGA AMUSEMENT CO., LTD

KAGA ELECTRONICS INDONESIA, PT
HUBEI KAGA ELECTRONICS CO.,LTD.
[Other business]
KAGA AMUSEMENT MALAYSIA SDN.BHD.

# One other company# One other company

Manages and operates facility for employees
Uses
TAXAN GUAM LTD.
Uses
Japanese and overseas customers(Notes) #: Affiliates that are not accounted for using the equity method.
All other companies are consolidated subsidiaries.
4

(1) The following consolidated subsidiaries became our group company during the fiscal year that ended in March 2015.
Relationship with the Company

Name

Address

CapitalActivities

Voting rights
held%[Electronic components business]
KAGA
ELECTRONICS
Jakarta
INDONESIA, PT
Indonesia(Note 3)
HUBEI KAGAELECTRONICS
CO.,LTD.
(Note 5)

Hubei
Province,
China

Joint
directors

FinancialsupportBusinessrelationship

Leasing offacilities andequipment

Persons Million yen

6,058
millionIDR

Manufacture andsale of electronic
components andequipment etc.

100.0
(Note 1)(99.8)

1

-

-

-

325
thousand
USD

Sale of electronicequipment etc.

100.0
(Note 1)(100.0)

1

-

-

-

Software businessOne other company(note 6)
Notes:
1. Percentages of voting rights in parentheses show indirectly owned voting rights.
2. HANZAWA（HK）LTD., which was until March 31, 2014 a consolidated subsidiary, was liquidated on April 11, 2014.
3. On May 13, 2014, KAGA ELECTRONICS (THAILAND) COMPANY LIMITED, a consolidated subsidiary, established
KAGA ELECTRONICSINDONESIA, PT as a subsidiary in Jakarta, Indonesia to expand business with local customers.
4. NUMATA (H.K.) CO., LTD., which was until March 31, 2014 a consolidated subsidiary, was liquidated on January 3,
2015
5. On January 9, 2015, KAGA (SHENZHEN) ELECTRONICS CO.,LTD., a consolidated subsidiary of KAGA (H.K.)
ELECTRONICS LIMITED, a consolidated subsidiary, established HUBEI KAGA ELECTRONICS CO.,LTD. (Hubei
Province, China) as a subsidiary in order to cope with the expected increase in business.
6. One other company is Izakul Co., Ltd. The company was converted into a consolidated subsidiary of DIGITAL MEDIA
LAB, INC., a consolidated subsidiary, in order to supplement and strengthen its debug operations on October 1, 2014. On
April 1, 2015, Izakul Co., Ltd. merged with Dreams Co., Ltd, a subsidiary of DIGITAL MEDIA LAB, as the surviving
company and Izakul Co., Ltd. was dissolved.

5

3.

Management Policies(1)

Fundamental management policy
Based on the management philosophy of “Everything we do, we do for our customers,” the KAGA ELECTRONICS Group is
guided by the fundamental policy of “remaining a company that contributes to the happiness of all stakeholders, including
shareholders, customers and employees, and fulfills its responsibilities to society.” The Group is dedicated to growing
consistently by responding with speed and agility to globalization of the economy and the rapidly changing electronics
industry. To accomplish this, the Group will expand its network in Japan and overseas and deepen ties among Group
companies to enhance collective strengths. The Group also has a strong commitment to corporate social responsibility,
positioning compliance and protecting the global environment as important elements of its operations.
Based on the above management philosophy and fundamental management policy, the companies of the KAGAELECTRONICS Group, which are active primarily in the electronics industry, seek to improve their results of operations
while cooperating with each other by doing business in a speedy manner that places the highest priority on rapid decisionmaking.
The key word is “F.Y.T.”
F = Flexibility (adapting adeptly to external changes)
Y = Young (staying young in thought and action)
T = Try (the spirit of always taking on challenges)(2)

Targeted performance indicators
As the electronics industry, where the Group is active, is expected to continue to grow, priority will continue to be placed on
raising the rate of sales growth and improving the return on equity.

(3)

Medium- and long-term management strategies
The rapid pace of change in the electronics industry is expected to continue. New products are appearing and existingproducts going out of date faster. Companies are moving production bases out of Japan faster, too. Amid these changes, more
growth is foreseen for the electronics industry.
In this environment, The Group is aiming to grow with KAGA ELECTRONICS, an independent electronics trading company,as its nucleus by utilizing its ability to handle all aspects of the electronics business, from upstream to downstream, including
product planning, development and processing (EMS). Backed by these distinctive strengths, the Group will work even moreclosely together to capture synergies with the goal of increasing sales and earnings while growing on a global scale.
The key word is “3G.”
General (covering everything)
Global (worldwide coverage)
Group (leveraging the collective power of the Group)(4)

Key issues
The KAGA ELECTRONICS Group is determined to continue growing while adhering to its fundamental management policy.
Based on the “F.Y.T.” and “3G” management policies explained earlier as well as on the reinforcement of corporate
governance, the Group’s management will be strengthened with the aim of increasing enterprise value while preserving
strong relationships with all stakeholders.
Additionally, the Group conducts reorganizations whenever needed in order to respond rapidly to changes in market
conditions and customer needs. Another goal is enhancing the ability to gather information quickly. At the same time, theGroup aims to capture more synergies by building stronger ties among Group companies and fostering more collaborationand mutual assistance within the Group, thereby expanding operations and improving efficiency.
 At present, the Group is concentrating on the following issues:i)Strengthening corporate governance systemii) Strengthening relationships, collaboration and mutual assistance among Group companies to realize greater synergiesiii) Reinforcing operations overseas and expanding the global networkiv) Upgrading technological skills and improving the ability to gather information with speedv)
Revitalizing underperforming subsidiariesvi) Tackling environmental problems
The Group regards other key issues as well as matters that require constant attention and initiatives and will work on
making the necessary refinements and improvements.

(5)

Other important items concerning management
Not applicable6

4.

Fundamental policy regarding choice of accounting standard
The KAGA ELECTRONICS Group prepares consolidated financial statements based on Japanese accounting standards.
Going forward, the KAGA ELECTRONICS Group will as needed study the possibility of adopting IFRS standards with due
consideration to financial market trends, share of foreign investors and the organizational costs resulting from the adoption of
IFRS standards.

7

5.

Consolidated Financial Statements(1)

Consolidated balance sheet(Million yen)
FY 2014(As of March 31, 2014)ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

FY 2015(As of March 31, 2015)

14,19260,667
114
16,378
848
3,991
993
5,836
(93)

18,13058,167
127
17,276
401
5,024
929
4,497
(131)

102,930

104,424

8,089(2,351)

7,834(2,379)Buildings and structures, net

5,737

5,455

Machinery, equipment and vehicles
Accumulated depreciation

4,615(2,903)

5,689(3,403)

1,711

2,285

4,442
(3,438)4,159(3,222)

1,004

936

Land
Construction in progress

4,038
133

4,041
6

Total property, plant and equipment

12,625

12,725

715
486
332

607
479
44

1,533

1,131

5,377
562
821
1,357
1,836
(1,017)

6,351
274
846
1,280
2,084
(1,169)Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Insurance funds
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

8

8,938

9,667

23,09823,524

126,028

127,948

(Million yen)
FY 2014(As of March 31, 2014)
LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Accrued expenses
Income taxes payable
Provision for directors' bonuses
Other
Total current liabilities

FY 2015(As of March 31, 2015)

41,695
12,172
3,133
1,525
174
4,708

40,543
5,925
3,377
1,286
189
3,289

63,41054,612

4,681
686
1,437
1,954
123
909

8,253
1,231
1,501
1,643
140
963

Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities

9,792

13,73373,202

68,345

Capital stock
Capital surplus
Retained earnings
Treasury stock

12,133
13,912
27,414(536)

12,133
13,912
31,029(537)

Total shareholder’s equity

52,92356,538Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

161
0
5
(304)

790
23
2,462
(250)

Total accumulated other comprehensive income

(137)

3,026

Total liabilities
NET ASSETS
Shareholder’s equity

Accumulated other comprehensive income

Minority interests
Total net assets
Total liabilities and net assets

9

39

38

52,82559,603126,028

127,948

(2)Consolidated statements of income and comprehensive income(Million yen)
FY 2014(April 1, 2013 – March 31, 2014)

FY 2015(April 1, 2014 – March 31, 2015)

Net sales
Cost of sales

257,852
225,330

255,143
222,405

Gross profit

32,522

32,738Selling, general and administrative expenses

27,416

26,376

Operating income

5,106

6,362

Interest income
Dividends income
Commission fee

68
79
219

150
95
292

Amortization of negative goodwill

29-

Foreign exchange gains
House rent income
Other

255
121
251

560
116
308

1,025

1,522

Interest expenses
Loss on investments in partnership
Other

132
80
71

117
25
77

Total non-operating expenses

284

219

5,847

7,664

Gain on sales of noncurrent assets
Gain on sales of investment securities
Other

613
5
-

6
28
1

Total extraordinary income

619

36

28
46
177
67
412
74

25
257
25
4
64
42

Total extraordinary loss

807

419

Income before income taxes

5,659

7,281

Income taxes-current
Income taxes-deferred

2,220
(447)

2,329
525

Total income taxes

1,772

2,855

Income before minority interests

3,887

4,426

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Loss on liquidation of subsidiaries and associates
Office transfer expenses
Settlement package
Other

Minority interests in income (loss)
Net income

10

9

10

3,877

4,416

(Million yen)
FY 2014(April 1, 2013 – March 31, 2014)

FY 2015(April 1, 2014 – March 31, 2015)

9

10

3,887

4,426

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

341
6
1,054
-

630
23
2,457
54

Total other comprehensive income

1,403

3,166

5,290

7,592

5,283

7,580

7

12

Minority interests in income (loss)
Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

11

(3)

Statements of changes in net assets
Previous fiscal year (Apr. 1, 2013 – Mar. 31, 2014)(Million yen)
Shareholders' equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,912

Treasurystock

24,384

Total shareholders'equity(535)

49,895

Changes of items during the period
Dividends from surplus

(847)

(847)

Net income

3,877

3,877

Purchase of treasury stock
Disposal of treasury stock

(1)

(1)

(0)

0

0

Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period

-

-

3,029

(1)

3,028

12,133

13,912

27,414(536)

52,923

Accumulated other comprehensive income

Balance at the
beginning of current
periodChanges of items
during the period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeMinority
interests

Total net
assets(180)(6)(1,052)-(1,238)149

48,806

Dividends fromsurplus(847)

Net income

3,877

Purchase of treasury
stock

(1)

Disposal of treasurystock
Net changes of
items other thanshareholders' equity
Total changes of items
during the period

0
341

6

1,057

(304)

1,100

(110)

990

341

6

1,057

(304)

1,100

(110)

4,019

Balance at the end ofcurrent period

161

0

5

(304)

(137)

39

52,82512

Current fiscal year (Apr. 1, 2014 –Mar. 31, 2015)(Million yen)
Shareholders' equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,912

Treasury
stock
(536)

27,414

Cumulative effects of changes inaccounting policies

Total shareholders'equity52,923

188

Restated balance

12,133

13,912

188(536)

27,602

53,112

Changes of items during the period
Dividends from surplus

(988)

(988)

Net income

4,416

4,416

Purchase of treasury stock

(1)

(1)

Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period

-

-

3,427

(1)

3,425

12,133

13,912

31,029(537)

56,538

Accumulated other comprehensive income

Balance at the
beginning of current
periodCumulative effects
of changes inaccounting policies
Restated balance

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeMinority
interests

Total net
assets

161

0

5

(304)

(137)

39

52,825

188
161

0

5

(304)

(137)

39

53,014

Changes of items
during the period
Dividends fromsurplus(988)

Net income

4,416

Purchase of treasurystock
Net changes of
items other thanshareholders' equity
Total changes of items
during the period

629

23

2,456

54

3,164

(1)

3,163

629

23

2,456

54

3,164

(1)

6,588

Balance at the end ofcurrent period

790

23

2,462

(250)

3,026

38

59,603

(1)

13

(4)

Consolidated statements of cash flows(Million yen)
FY 2014(April 1, 2013 – March 31, 2014)

FY 2015(April 1, 2014 – March 31, 2015)

Cash flows from operating activities
5,659
2,418
177
128
(1,630)
1,467

7,281
1,907
25
127
82

38

64

94
13
(147)
132
(609)
28
(0)
46

16
141
(245)
117
(4)
25
(21)
257

(5,326)4,182(1,708)79

2,998(3,141)

48
320
(389)

(308)
129
478

(359)

96

2
1,460
382

1,485
(1,319)284

5,246

11,741

Interest and dividend income received
Interest expenses paid
Income taxes paid
Other, net

145
(132)
(1,810)
(114)

241
(118)
(2,687)(49)

Cash flows from operating activities

3,334

9,127

Income before income taxes and minority interest
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for retirement benefits
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
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
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
Subtotal

14

(Million yen)
FY 2014(April 1, 2013 – March 31, 2014)

FY 2015(April 1, 2014 – March 31, 2015)(430)(2,997)
1,228
(259)
(830)
548
(184)

(0)
(1,360)
374
(294)
(994)
624
(11)

(4)
1
(61)
(37)
(263)
137
(222)
35

(10)
(14)
12
(23)
(0)
100
(21)
16
(237)
374

(3,339)(1,465)

3,221
1,000
(2,223)
(1)
(847)
(5)
(119)

(6,832)5,000(1,436)
(1)
(987)
(0)
(174)

Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents

1,024(4,431)

463

977

Net increase (decrease) in cash and cash equivalents

1,482

4,207

Cash and cash equivalents at beginning of period

11,87813,361

Cash and cash equivalents at end of period

13,361

17,569Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of insurance funds
Payments of long-term loans receivable
Proceeds from cancellation of insurance funds
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other payments
Other proceeds
Cash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net

15

(5)

Notes to consolidated financial statements(Notes to going concern assumptions)
None(Changes in accounting policies)(Accounting Standard for Retirement Benefits)
Beginning at the current fiscal year, the Company is using Accounting Standard for Retirement Benefits (ASBJ Statement
No. 26, May 17, 2012) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,2012) as prescribed in paragraph 35 of this accounting standard and paragraph 67 of this guidance. The method for setting
the discount rate has been changed from a method based on determining a base value for the number of years
approximating to employees’ average remaining service period to a method using a simple weighted average discount ratethat reflects the anticipated payment period for accrued retirement benefits and the amounts to be paid in for each period.
For the application of the accounting standard for retirement benefits, in accordance with the transitional handlingprescribed in paragraph 37 of this standard, the effect of the change in the method for calculating retirement benefit
liabilities and service cost as of the beginning of the current period is included in retained earnings.
As a result, at the beginning of the current period, retirement benefit liabilities decreased 292 million yen and retained
earnings increased 188 million yen. However, effects on the operating income, ordinary income and income before income
taxes and minority interests were negligible.
(Segment information etc.)
a. Segment information
1. Summary of reporting segments
Segments used for financial reporting are the constituent units of KAGA ELECTRONICS for which separate financial
information is available and for which the board of directors performs regular reviews for the purposes of determining the
distribution of resources and evaluating results of operations.
KAGA ELECTRONICS conducts business activities by grouping affiliated companies based on products and services
and based on comprehensive strategies for operations in Japan and overseas for products and services handled.
Consequently, KAGA ELECTRONICS and its affiliated companies have four reporting segments that are made up ofdifferent categories of products and services: electronic components, information equipment, software, and others.
The electronic components segment includes the development, manufacture and sale of semiconductors, generalelectronic components and other products, the electronics manufacturing service (EMS), and other activities. The
information equipment segment includes sales of PCs, PC peripherals, photograph and imaging products, original brandproducts, and other products. The software segment includes the production of computer graphics, planning anddevelopment of amusement products, and other activities. The others segment includes the maintenance and support forelectronics equipments, and sales of sports goods, and others.
2. The accounting method used for reporting business segments
The accounting method used for reporting business segments is the same as the method of presenting the consolidated
financial statements.

16

3. Information concerning sales, earnings or losses, assets, liabilities and other items for individual reporting segments
For the previous fiscal year ended March 2014 (April 1, 2013 – March 31, 2014)
Reporting segments
Adjustments*1(Million yen)Amount in the
consolidated
statement ofincome *2

Electronic
components

Informationequipment

Software

OthersTotal

194,782

46,505

3,306

13,258257,852-

257,852

1,439

1,144

5,430

2,047

10,061(10,061)-

196,22147,6498,737

15,306

267,914(10,061)

257,852

Segment income(loss)

3,805

866

79

410

5,161

(54)

5,106

Segment assets

109,007

15,614

3,138

7,110

134,871(8,842)126,028

1,051

78

727

105

1,962

(4)

1,957

2,695

105

195

278

3,274

(17)

3,257

Net salesof which to outside
customersof which intersegment
Total

OthersDepreciation andamortization
Increase inproperty, plant andequipment andintangible assets

For the current fiscal year ended March 2015 (April 1, 2014 – March 31, 2015)
Reporting segments
Adjustments*1(Million yen)Amount in the
consolidated
statement ofincome *2

Electronic
components

Informationequipment

Software

OthersTotal

197,188

42,0242,889

13,040255,143-

255,143

1,134

611

4,145

2,301

8,192

(8,192)-

198,322

42,635

7,035

15,342

263,336(8,192)

255,143

Segment income(loss)

4,852

707

442

169

6,171

190

6,362

Segment assets

112,749

15,106

2,601

7,362

137,819(9,870)127,948

1,085

82

342

93

1,603

(21)

1,581

1,824

42

123

240

2,230

(575)

1,655

Net salesof which to outside
customersof which intersegment
Total

OthersDepreciation andamortization
Increase inproperty, plant andequipment andintangible assets

17Notes:1. The adjustment for segment information is as follows(1) Segment income

Elimination of inter-segment trade
Amortization of goodwill
Total
(2)

Fiscal year ended March 2014
(37)
(16)
(54)

(Million yen)
Fiscal year ended March 2015
190
190

Segment assets(Million yen)
Fiscal year ended March 2014
Fiscal year ended March 2015
Elimination of inter-segment trade(11,563)(12,615)
Corporate *
2,720
2,744
Total
(8,842)(9,870)* Major component of corporate assets is investment of idle assets (cash and investment securities etc.).

(3)

Depreciation and amortization

Elimination of inter-segment trade
Total
(4)

Fiscal year ended March 2014
(4)(4)(Million yen)
Fiscal year ended March 2015
(21)
(21)

Increase in property, plant and equipment and intangible assets

Elimination of inter-segment trade
Total

Fiscal year ended March 2014
(17)
(17)

(Million yen)
Fiscal year ended March 2015
(575)
(575)

2. Segment income is adjusted with operating income on the consolidated statements of income and comprehensive
income18

b. Associated information
For the previous fiscal year ended March 2014 (April 1, 2013 – March 31, 2014)
1. Information about individual products and services
This information is not presented because KAGA ELECTRONICS Group prepares reports in accordance with amanagement approach based on individual products and services.
2. Geographic information(1) Net sales
Japan
North America
Europe180,1703,918
2,430
Note: Net sales are classified based on the client’s geographic location.

East Asia
71,333(2)

Property, plant and equipment
Japan
North America
EuropeEast Asia
9,742
36
74
2,771
Notes: 1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand and India(Million yen)Total
257,852(Million yen)Total
12,625

3. Information by major customers
Information by major customers is not presented because outside sales for major customers accounted for less than 10%of net sales on the consolidated statements of income.
For the current fiscal year ended March 2015 (April 1, 2014 – March 31, 2015)
1. Information about individual products and services
This information is not presented because KAGA ELECTRONICS Group prepares reports in accordance with amanagement approach based on individual products and services.
2. Geographic information(1)
Net sales
Japan
North America
Europe173,0485,363
2,506
Note: Net sales are classified based on the client’s geographic location.
(2)

East Asia
74,225

Property, plant and equipment
Japan
North America
EuropeEast Asia
9,406
41
71
3,206
Notes: 1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand and India(Million yen)Total
255,143(Million yen)Total
12,725

3. Information by major customers
Information by major customers is not presented because outside sales for major customers accounted for less than 10%of net sales on the consolidated statements of income.

19(Per-share information)(Yen)
FY 2014(April 1, 2013 – March 31, 2014)
Net assets per share
Net income (loss) per share

FY 2015(April 1, 2014 – March 31, 2015)

1,868.07

2,108.04

137.22

156.28

Note: 1. Net income per share (diluted) is not presented, since there is no potential stock which has dilution effect.
2. The basis for calculating net income (loss) per share is as follows.
FY 2014
FY 2015
Item(April 1, 2013 – March 31, 2014)(April 1, 2014 – March 31, 2015)
Net income per share
Net income (loss) (million yen)
Net income (loss) not available to commonshareholders (million yen)
Net income (loss) available to commonshareholders (million yen)
Weighted average number of shares
outstanding(Subsequent events)
None

20

3,877

4,416

-

-

3,877

4,416

28,257,761

28,256,695

6.

Non-consolidated Financial Statements(1)

Balance sheets(Million yen)
FY 2014(As of March 31, 2014)ASSETS
Current assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Securities
MerchandiseWork in process
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries andassociates
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Structures
VehiclesTools, furniture and fixtures
Land
Lease assets
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets

21

FY 2015(As of March 31, 2015)

5,826
3,813
21,588
114
3,693
190
30
856
149
587

7,933
2,859
21,259
127
3,433
19
37
426
121
498

17,1542,215
1,474(6,182)

17,843
2,528
586(6,656)51,51251,018

3,010
26
4
413
3,213
0

2,861
22
2
325
3,314
37

6,668

6,563

9
200
68

6
183
26

278

217

(Million yen)
FY 2014(As of March 31, 2014)
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets

22

FY 2015(As of March 31, 2015)

4,801
7,657
32

5,666
7,658
28

8

11

1,687

1,337

1,839
208
633
1,850
(2,569)(1,461)

1,971
261
275
1,793
(2,629)(1,103)

14,68915,272

21,63622,05373,14973,071

(Million yen)
FY 2014(As of March 31, 2014)
LIABILITIESCurrent liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Short-term loans payable to subsidiaries andassociates
Current portion of long-term loans payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors' bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors' retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities

FY 2015(As of March 31, 2015)

1,795
13,9796,903

2,275
14,640
1,562

1,637
1,428
36
1,339
1,435
144
1,319
49
160
150
207

2,043
1,428
43
885
1,608
426
416
64
180
34

30,586

25,610

4,681
126
502
1,209
94
293

8,253
120
239
1,270
95
294

6,906

10,27437,49335,884

NET ASSETS
Shareholder’s equity
Capital stock
Capital surplus
Legal capital surplus

12,133

12,133

13,912

13,912

Total capital surplus

13,912

13,912

618

618

7,000
2,379

7,000
3,369

9,997

10,987

Total liabilities

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholder’s equity
Valuation and translation adjustments
Valuation differences on available-for-sales
securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

23

(536)

(537)

35,50736,496

148
0

672
18

148

690

35,65637,186

73,14973,071

(2)Statements of income(Million yen)

Net sales
Cost of sales

FY 2014
FY 2015(April 1, 2013 – March 31, 2014) (April 1, 2014 – March 31, 2015)
94,517
90,13884,44380,706Gross profit

10,074

9,431

Selling, general and administrative expenses

9,958

9,107

115

324

139
1,640
26
392

116
1,898
123
558

2,199

2,697

Non-operating expenses
Interest expenses
Loss on investments in partnership
Other

109
35
17

97
22
56

Total non-operating expenses

162

177

2,152

2,845

198
8

20
347
2

207

370

34
590
373
116
59

253
235
4
9

Total extraordinary losses

1,175

502

Income before income taxes

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income

Ordinary income
Extraordinary income
Gain on sales of investment securities
Reversal of allowance for investment loss
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Office transfer expenses
Impairment loss
Other

1,184

2,713

Income taxes - current
Income taxes - deferred

357
148

793
129

Total income taxes

506

922

Net income

678

1,790

24

(3)

Statement of changes in shareholders’ equity
Previous fiscal year (Apr. 1, 2013 –Mar. 31, 2014)(Million yen)
Shareholders' equity
Capital surplus

Balance at the beginning of current period

Retained earnings

Capital
stock

Legal
capitalsurplusTotal
capitalsurplusLegalretainedearnings

12,133

13,912

13,912

618

Other retained
earnings
Retained
General earnings
reserve brought
forward
7,000

Total
retainedearnings

2,548

10,167

Dividends from surplus

(847)

(847)

Net income

678

678

(0)

(0)

Changes of items during the period

Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

-

-

-

-

-

(169)

(169)

12,133

13,912

13,912

618

7,000

2,379

9,997

Treasury
stock

Total
shareholders'equityValuationdifferenceonavailablefor-salesecurities(535)

35,678(175)

Shareholders' equity

Balance at the beginning of current period

Valuation and translation adjustments
Totalvaluationandtranslation
adjustments

Deferred
gains orlosses onhedges(8)(183)

Total net
assets35,494

Changes of items during the period
Dividends from surplus

(847)

(847)

Net income

678

678

Purchase of treasury stock

(1)

(1)

(1)

Disposal of treasury stock

0

0

0

Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

324

8

332

332

(1)

(170)

324

8

332

161

(536)

35,507

148

0

148

35,65625

Current fiscal year (Apr. 1, 2014 –Mar. 31, 2015)(Million yen)
Shareholders' equity
Capital surplus

Balance at the beginning of current period

Retained earnings

Capital
stock

Legal
capitalsurplusTotal
capitalsurplusLegalretainedearnings

12,133

13,912

13,912

618

Other retained
earnings
Retained
General earnings
reserve brought
forward
7,000

Total
retainedearnings

2,379

9,997

188

188

2,567

10,186

Dividends from surplus

(988)

(988)

Net income

1,790

1,790

Cumulative effects of changes in accounting
policies
Restated balance

12,133

13,912

13,912618

7,000

Changes of items during the period

Purchase of treasury stock
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

-

-

-

-

-

801

801

12,133

13,912

13,912

618

7,000

3,369

10,987

Treasury
stock

Total
shareholders'equityValuationdifferenceonavailablefor-salesecurities(536)

35,507

148

Shareholders' equity

Balance at the beginning of current period

Valuation and translation adjustments

Cumulative effects of changes in accounting
policies
Restated balance

Totalvaluationandtranslation
adjustments

Deferred
gains orlosses onhedges
0

148

188
(536)

35,695

Total net
assets35,656
188

148

0

148

35,844

Changes of items during the period
Dividends from surplus

(988)

(988)

Net income

1,790

1,790

(1)

(1)

Purchase of treasury stock(1)

Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

523

18

541

541

(1)

800

523

18

541

1,342

(537)

36,496

672

18

690

37,18626

7.

Other Information(1)

Changes in directors and corporate auditors
(a)

(b)

Changes in representative director
Resigning representative director
Representative director and vice chairperson

Tomohisa Tsukamoto

To be assigned as an Advisor

Changes in directors and auditors
Candidates for new director
New title
Director and Manager of EMS Department

Name
Motonori Toshinari

Current position
Executive Officer and Manager of
EMS Department
Executive Officer and Manager ofElectronic Business Department
Adviser, Toyota Motor Corporation
Executive Advisor, TOYOTA Auto
Body, Co. Ltd
Executive Advisor, Hitachi Maxell,
Ltd.
Corporate Auditor (part time), The
Resolution and Collection
Corporation
Advisor, Okigin Economic
Research Institute, Ltd.
Advisor, Niigata Sohogo Security
Services Co., Ltd.

Director and Manager of Electronic Business
Department
Director

Mitsuhiro Nohara

Director

Akira Tamura

Susumu Miyoshi(Note) Susumu Miyoshi and Akira Tamura are the candidates of external director.
Resigning director
Senior Managing Director

Waichiro Shimoyama

Candidates for new corporate auditor
Corporate Auditor (full time)
Corporate Auditor (full time)

Kazunori Kameda
Takahiro Ishida

Resigning corporate auditor
Corporate Auditor (full time)
Corporate Auditor (full time)Masahiro Ishikawa
Kikuo Sumino

To be assigned as an advisor

Name
Eiji Kawamura

Current title
Director, Administration
Headquarters

Change of director
New title
Managing Director, Administration
Headquarters
(c)

(2)

Planned date of the changes
June 26, 2015

Other information
Not applicable27

To be assigned as an Advisor