For Institutional Investors/Analystss

Kaga Electronics Co.,Ltd.
Financial Results Briefing Material
for the Fiscal Year ended March 2019

May 23, 2019
KAGA ELECTRONICS CO., LTD.
TSE 1st section 8154

Index FY2019/3 Full-Year Financial Results
Summary
Financial Highlights /Financial Highlights by Business Segment
Balance Sheet Main Items/Cash FlowsP‐ 3

Forecast for the Fiscal Year ending march 2020

P‐16〜20

P‐ 4〜10
P‐11〜15

 Kaga Electronics Group’s Growth Scenario
Medium Term Business Plan 2021 Outline

P‐22〜26

 Reference
Business portfolio concept
EMS Business Growth Scenario

P‐28
P‐29

Financial Highlights by Business Segment
Exchange Rate

P‐30〜31
P‐32

Consolidated Financial Results
for the Fiscal Year ended March 2019

Kaga Electronics Co., Ltd.
Managing Director

Eiji Kawamura

2

Summary of Financial Results for the Fiscal Year Ended March 31, 2019

Results for
FY2019/3

 Fujitsu Electronics consolidated from 4Q
 Operating income and ordinary income did not meet forecasts, but net sales and net
profit exceeded forecasts.
 Net income reaching a record‐high level for the first time in 13 years, in part due tothe negative goodwill and tax reduction.
 Despite negative factors such as product adjustments resulting from model switching,upfront expenses for the start‐up of new overseas factories, supply/demandpressures on some parts and materials, and lower demand due to a slowdown in
China’s economy, results were generally passable.

Overview ofthe mainbusinesssegments

 Electronic components: Solid results in the EMS business for automotive and air
conditioning devices; the component sales business was sluggish.
 Information equipment: In PC sales, although sales were low in the housing‐related
home electric appliance business, the commercial facilities‐related LED installation
business was robust.

Shareholder
return Dividend policy: make stable dividend payments while securing a
consolidated dividend payout ratio of 25% to 35%
 Year-end dividend of ¥45, which includes an extraordinary dividend of ¥5.
Annual dividend of ¥80 representing a ¥10 increase.

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

3

Financial Highlights（million yen）

FY2018/3

FY2019/3

FY2019/3

Results

Previous Forecast

Results

YoY

vs Forecast

Net sales

235,921290,000

292,779

24.1%

1.0%

Gross profit

32,49835,50035,546

9.4%

0.1%

13.8%

12.2%

12.1%

SG&A

24,37927,80027,976

14.8%

0.6%

Operating income

8,119

7,700

7,570

‐6.8%

‐1.7%

Ordinary income

8,740

8,000

7,859

‐10.1%‐1.8%

Profit attributableto owners of parent

6,490

7,300

8,014

23.5%

9.8%

EPS (Yen)

236.58266.04292.07

ー

ー

9.5

9.9

10.9

14.7%

10.1%

Gross profit margin

ROE© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

4

Financial Results by Business Segment（miillion yen）

Software

OthersTotal

FY2019/3

FY2019/3

Results

Previous Forecast

ResultYoY

vs Forecast

172,248

227,200

225,598

31.0%

‐0.7%

5,312

5,200

4,761

‐10.4%‐8.4%

47,58243,00044,344

‐6.8%

3.1%

Segment income

2,202

1,700

1,906

‐13.4%

12.1%

Net Sales

2,568

2,800

2,876

12.0%

2.7%

172

300

247

43.6%

‐17.7%

13,522

17,00019,959

47.6%

17.4%

308

500

490

59.1%

‐2.0%

235,921290,000

292,779

24.1%

1.0%

8,119

7,700

7,570

‐6.8%

‐1.7%

Net Sales
Electronic
Components Segment income

Information
Equipment

FY2018/3

Net Sales

Segment income
Net Sales
Segment income
Net Sales
Segment income

Note: Figures of each segment income are not inter‐segment adjusted.
Total amount is inter‐segment adjusted (operating income).
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

5

Financial Highlights by Business Segment(Million Yen)

Net Sales
290,000

235,921

Segment Income

292,779

17,0002,800

19,95943,00044,344

2,876

13,522
2,568
47,582

Total

Total

YoY：
＋56,858
vs Forecast：＋2,779

OthersYoY ：＋6,436
vs Forecast ：＋2,959

YoY：
+182
vs Forecast：
▲9

YoY：
＋308
vs Forecast： ＋76
Information equipment

225,598

172,248

8,119
308
172
2,202

YoY：
▲3,237
vs Forecast：＋1,344

7,700
500
300
1,700

7,570
490
247
1,906

Elecronic Compornent
YoY：＋53,350
vs Forecast：▲1,601

FY2018/3
FY2019/3
FY2019/3
Result Previous Forecast Result

SoftwareYoY：+74
vs Forecast： ▲52
Information equipment
YoY：
▲296
vs Forecast： ＋206
Elecronic Compornent

5,312

5,200

4,761

YoY：
▲550
vs Forecast： ▲438

FY2018/3
FY2019/3
FY2019/3
Result Previous Forecast Result
Note: Figures of each segment income are not inter‐segment adjusted.
Total amount is inter‐segment adjusted (operating income).

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

▲549
▲129

OthersSoftware227,200

YoY：
vs Foreca :6Effect of Fujitsu Electronics conversion to subsidiary(million yen)

Net Sales

Gross profit / Gross profit margin

Fujitsu Electronics consolidated from 4Q, sales increased
Significantly.

Gross profit margin declined on a consolidated basis, but flaty-o-y on a non-consolidated basis
50000

235,921235,689

57,090292,779

50.00%

45000

40000

35000

32,49835,546

3,411

32,13535.00%

30.00%

25000

25.00%

13.8%

13.6%

15000

12.1%

6.0%

10000

Kaga
Electoronics

FY2018/3

Fujitsu
Consolidated
Electronics
富士通エレクトロニクス

15.00%

5.00%

0
2018

連結

FY2019/3

20.00%

10.00%

5000

加賀電子

40.00%

30000

20000

2018

45.00%

Fujitsu
Consolidated
Electronics

加賀電子

富士通エレクトロニクス

Kaga
Electoronics

FY2018/3

0.00%

連結

FY2019/3

Operating income

Profit attributable to owners of parent

Consolidation of Fujitsu Electronics could not offset decreasein Kaga Electronics’ operating income

Incorporating “negative goodwill” arising from the consolidationand special factor relating to tax consolidation

8,119

242

7,328

7,570

2,403
7,859

614

1,597

8,014

Negative goodwill
2,164

2018

FY2018/3

加賀電子

Kaga
Electoronics

Fujitsu
Consolidated
Electronics
富士通エレクトロニクス

FY2019/3© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

連結

経常利益

特別利益

特別損失

法人税等

親会社株主にProfitOrdinary ExtraordinaryExtraordinary Income
incomeincomeloss
taxes attributable to
帰属する当期純利益

owners ofparent7

Financial Highlights: Electronic Component Segment（million yen）

Net sales/Segment income
227,200

225,598

58,00057,090

YoY＋53,350 million Yen 31.0％up
 Segment Income ▲550 million Yen 10.4％down
 Net sales

FujitsuElectronics

172,248

vs Forecast
 Net sales▲1,601 million Yen Segment Income

KagaElectronics

172,248

169,200

5,312

168,508

5,200
100

4,761
242

5,312

5,100

4,519

FY2018/3利益
売上

売上2019/3利益

売上2019/3利益

ResultPrevious
Forecast© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

▲438 million Yen

0.7％down
8.4％down

・ Significant increase in net sales resulting fromconversion of Fujitsu Electronics to subsidiary
・ Steady performance of EMS business forautomotive and air conditioning devices.
・ Sluggish components sales business, notably forhome electric appliances, from the effect of
production adjustments at major customers.

Result8

Financial Highlights: Information Equipment Segment（million yen）

Net sales/Segment income

YoY

60000

7000

 Net sales▲3,237 million Yen Segment Income

6.8％down▲296 million Yen 13.4％down

55000

6000

50000

47,582

 Net sales

44,34443,00045000

vs Forecast

5000

3.1％up＋206 million Yen 12.2％up＋1,344 million Yen Segment Income

40000

35000

4000

30000

3000

25000

2,202
20000

1,700

1,906
2000

・ The commercial facilities-related LED installation
business showed robust growth.
・ The housing-related home electric appliancebusiness declined due to delivery date adjustments
by customers. Although sales of PCs to individuals
were solid, sales of PCs to corporate customers were
slow.

15000

10000

1000

FY2018/3
Result

FY2019/3
Previous Foreast© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

FY2019/3
Result9

Net Sales by Region（million yen）

Net sales

YoY＋31,281million yen 21.0％up
 North America ＋4,449million yen 51.6％up＋5,869million yen145.5％up
 Europe＋15,258million yen 20.6％up
 Asia Japan

290,000

292,779

235,921Japan

180,000

180,306

vs Forecast
 Japan North America

149,024

 Europe
North America

8,628
4,034
74,234FY2018/3
Result13,0006,000

13,0789,903

Europe91,00089,492Asia

FY2019/3
Previous Forecast

FY2019/3
Result© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

 Asia＋306million yen＋78million yen

0.2％up
0.6％up＋3,903million yen 65.1％up▲1,508million yen 1.7％down

10Balance Sheet Main Items（Million Yen)

Total assets

Total liabilities and net assets

213,761

213,761

Total liabilities

Current assets

125,751

Kaga Electronics
101,058

128,755
182,396

Fujitsu Electronics
81,338125,751

59,819103,684

128,755

129,501

Kaga Electronics
81,665
Fujitsu Electronics
47,835

58,123104,069
Non‐current assets

Total net assets

Kaga Electronics
28,081
Fujitsu Electronics
3,282

22,067

24,68531,364FY2017/3

FY2018/3

FY2019/3© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

65,932

70,631FY2017/3

FY2018/3

84,259Kaga Electronics
74,490Fujitsu Electronics
9,768

FY2019/3

11Balance Sheet Main Items（Million Yen, Day)

Inventories

Accounts receivable/Accounts payable

40.7 Kaga Electronics
36.0

34.9

81.7 Fujitsu Electronics

160,000

83.6

80.0

A/R turnover

40.0

Inventory turnover

50,00077.1

77.0 Kaga Electronics

140,000

70.0

29.1 Fujitsu Electronics

71.4 Fujitsu Electronics

30.0

40,02669.9
65.3

120,000

40,00020.0

A/P turnover

63.3 Kaga Electronics
60.0

101,507
100,000

50.0

17,347 Fujitsu Electronics

Notes and A/R

10.0

77,88430,00080,00040.0

0.0

Notes and A/P

51,80220,00019,325

19,45560,000-10.0

Inventories
40,00052,00937,55349,841

42,561 Fujitsu Electronics
30.0

36,39220.0-20.0

22,678 Kaga Electronics

10,00049,70420,000-30.0

10.0

35,323 Kaga Electronics
0

-40.0

FY2017/3

FY2018/3

FY2019/3

注：Inventory turnover ＝ Inventories ÷ Cost of Sales × 365（day）© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

0

0.0

FY2017/3

FY2018/3

FY2019/3

notes：・Notes and A/R are amounts including Electronically recordedmonetary claims-operating
・A/R turnover ＝ Notes and A/R ÷ Net sales × 365（day）
・A/P turnover ＝ Notes and A/P ÷ Cost of sales × 365（day）

12

Cash and Deposits/Interest Bearing Debt/Cash Flows（million yen

Cash and deposits
0.43

45,000

0.15

0.50

0.13

‐0.25

（times）

D/E rtaio‐0.03

40,000Cash flows

0.00

‐0.31

Net D/E ratio

35,000Cash flows fromfinancing activities-0.50

30,00010,746-1.00

11,684

10,07725,00020,000-1.50

35,00330,80315,00026,423

Cash and deposits▲ 258

32,851▲ 6,118-2.00▲ 1,547▲ 4,173▲ 6,860

10,000▲ 2,811
-2.50

5,000

9,805

8,900
-3.00

FY2017/3

FY2018/3

FY2019/3

Cash flows frominvesting activities

Interest bearing debts

FY2017/3
0Cash flows fromoperating activities

FY2017/3

2018/3末FY2018/3

2019/3末FY2019/3

note：D/E ratio＝ Interest bearing debts ÷ Shareholder’s equity
Net D/E ratio ＝（Interest bearing debts ‐ Cash and deposits） ÷ Shareholder’s equity© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

13

Supplementary information on cash flow
Although in FY2019/3, cash flow in operating activities recorded a temporary increase in outflow
due the conversion of Fujitsu Electronics to subsidiary, reaction to this is anticipated in FY2020/3.

Cash flows
fromoperatingactivities

Main factors

FY2019/3

Main variation items

FY2018/3

 Profit before income taxes
 Gain on negative goodwill

9,300

9,649

－
2,076

△2,164△1,152△226△1,101△2,145△6,746 other

1,087△1,059△207
1,218

Net cash provided by (used in) operating activities

10,077△1,547

 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 - other① Gain on negative godwill② Increase in notes and accounts
receivable -trade③ Increase in inventories④ Decrease in notes and accounts
receivable -trade© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

・・・①
・・・②
・・・③
・・・④

➞ Due to the acquisition of Fujitsu Electronics 70% stock➞ of which, - 1,040 due to consolidation of Fujitsu Electronics➞ Mainly in response to customer inventory adjustment and sales increase in EMS➞ of which, - 5,192 due to consolidation of Fujitsu Electronics

14

Major Business Indicators（million yen）

Equity ratio
52.4%
52.40

ROE

54.8%
54.80

10.9%

260,000

9.5%

10.9%

35.8%
35.80
40.00

210,000

20.00

Total assets
160,000

3.1

0.00

2.7

Net profit margin

2.8

Financial leverage

1.4

総Total asset turnover

2.8-20.00213,761

110,000

Shareholders’ equity

128,755
60,000

1.8

1.8

1.9

1.8

FY2017/3

FY2018/3-40.00125,751
65,87276,60470,556-60.0010,000-80.00FY2017/3

FY2018/3

FY2019/3-40,000

FY2019/3-100.00© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

15

Summary of Forecast for the Fiscal Year ending March 31, 2020

Forecast for
FY2020/3

 The Group overall is conservative in its projections due to uncertain domestic andoverseas conditions going forward.
 In the case of Fujitsu Electronics, we expect a risk of the cancellation of large‐lotcommercial rights and thus forecast lower sales and income.
 We predict a reactionary decline in net income due to the negative goodwill posted in
the previous fiscal year and the loss of the tax effect.

Perception ofEnvironment
for the Main
Segments

 Electronics Components Business: Slowdown in China‐related business is
a concern, but sales is likely to continue expanding led by “automotive
devices.
 EMS business: Growth of demand is expected for automotive and air
conditioning devices in the new overseas factories.
 CSI business: Decline in demand is likely to continue in housing‐related
home electric appliances business.

Shareholder
return We shall perform stable dividends, while securing a consolidated
dividend payout ratio of 25 to 35%.
 In light of current performance forecast, annual dividend of 60 yen isplanned (dividend ratio of 32.9%)© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

16

Segment disclosure associated with the start of 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‐TermManagement 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

Software

Others Sales of PCs and PC
peripherals
 Sales of home electric
appliances and lighting fixtures
 Sales of photograph andimaging products
 Production of CG video andsoftware Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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

Others Production of CG video andsoftware Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods
17Forecast for the Fiscal Year ending march 2020
（million yen）

FY2019/3

FY2020/3

Results

Forecast

YoY

Net sales

292,779

430,000

46.9%

Gross profit

35,54646,500

30.8%

12.1%

10.8%

SG&A

27,97639,50041.2%

Operating income

7,570

7,000

‐7.5%

Ordinary income

7,859

7,000

‐10.9%

Profit attributableto owners of parent

8,014

5,000

‐37.6%EPS（Yen）

292.07182.1710.9

6.4

Gross profit margin

ROE© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

‐

18

Forecasts by Business Segment for the Fiscal Year ending march 2020
（million yen）

Electronic
Components
EMS

CSI

OthersTotal

Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income
Net Sales
Segment income

FY2019/3

FY2020/3

Results

Forecast

YoY

145,042

282,000

94.4%

2,278

2,200

‐3.4%

89,481

95,000

6.2%

2,667

2,800

5.0%

44,34440,000

‐9.8%

1,906

1,500

‐21.3%

13,912

13,000

‐6.6%

554

500

‐9.7%

292,779

430,000

46.9%

7,570

7,000

‐7.5%

Note: Figures of each segment income are not inter‐segment adjusted.
Total amount is inter‐segment adjusted (operating income).
© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

19Effect of Fujitsu Electronics conversion to subsidiary (FY2020/3 Forecast)
Net Sales

Gross profit / Gross profit margin

Prudent projection for net sales in view of uncertainty in the
future business environment

Gross profit margin to be flat y-o-y for Kaga Electronics, up
1 pt for Fujitsu Electronics(468,995)

195,000

430,000

50000(46,725)

235,000

14,590Kaga
Electronics

Kaga
Electronics
加賀電子

FujitsuElectronics
富士通エレクトロニクス

連結70.00%

65.00%

60.00%

13.8%

50.00%

7.2%

32,13510.8%

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

02019

Consolidated

FY2020/3(37,998)

13,500

5.00%

KagaElectronics
加賀電子

FujitsuElectronics
富士通エレクトロニクス

0.00%
連結

Consolidated

FY2020/3

Operating income / Operating income marjin
Fujitsu Electronics’ contribution to income to remain limited

50000

40000

10.00%FY2019/3

Expenses to increase for both companies due notably tolaunch of new facilities and IT-related spending
39,500(8,727)

10000

FujitsuElectronics

1,399

8000

35000

13,19180.00%

6.3%

SG&A / SG&A ratio

30000

85.00%

10000

FY2019/3

FujitsuElectronics

90.00%

55.00%

13.6%

30000

Kaga 235,689
Electronics

45000

46,50032,500

20000

2019

95.00%

75.00%

FujitsuElectronics
40000

Fujitsu 233,306
Electronics

14,000100.00%26,000

6,500

500

7,000

6000

3.1%

25000

10.5%

20000

11.1%

15000

Kaga
Electronics
10000

5000

24,807

6.9%

9.2%

Kaga
Electronics
2000

5.6%

0
2019

Kaga
Electronics
加賀電子

FY2019/3

Fujitsu
Consolidated
Electronics
富士通エレクトロニクス

FY2020/3

連結

2.8%
1.6%

4000

7,328

0.3%

0.6%

0
2019

FY2019/3

KagaElectronics
加賀電子

Fujitsu
Consolidated
Electronics
富士通エレクトロニクス

FY2020/3※In million yen, figures in ( ) are simple sums

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

連結20Kaga Electronics Group’s Growth Scenario
Medium Term Management Plan 2021 Outline（announced on November 6, 2018）

Kaga Electronics Co., Ltd.
President & Representative Director

Ryoichi Kado

21

Medium to Long Term Vision of the Kaga Electronics GroupThrough the establishment and taking hold of “profit‐focusedmanagement”,

forming Japan’ No.1 corporate groupin the industry,

and furthermore,aiming to become a competitive“World class company”.

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

22

Positioning of “Medium Term Management Plan 2021 (2019 ‐ 2021)”
Organic
GrowthAim to become a competitive “World class+company”
Further M&A
Challenges
Towards the realization of“Japan’s No. 1 corporate group in
the industry”
Kaga
ElectronicGroup+
FujitsuElectronics

Increased
Sales

1 trillion yen

500 billion yen

Expansion of
trading company business

Increased
ProfitRatio

Further
expansion of
the EMSbusiness

Enhancement
and expansion ofoverseasbusinesswill lead to
growth of the EMS business
Quantitative
expansion of trading
company business

Qualitative improvement
through EMS business(Net Sales)

Medium Term Management Plan 2021
①Enhancement of Revenue Base ②Stabilization ofManagement Base ③Creation of New Business© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

Medium toLong Term
Vision23

“Medium Term Management Plan 2021 (2019 ‐ 2021)” Basic Policies

Key Issues
Utilizing the Group’s DNA to see things ahead of time, we shall focus on markets andcustomers forecast to have high growth potential and profitability, and will aim to

Enhancement of
Revenue Basestrengthen the revenue base・ Strengthening initiatives for growth sectors: In‐vehicle, communications, environment, industrial
equipment, medical and healthcare
・ Enhancement and expansion of EMS business and overseas business

Aiming to stabilize the management base towards early improvement of efficiency andStabilization ofManagement
Basefinancial soundness after conversion of Fujitsu Electronics to subsidiary・ Continuation of group‐wide cost reduction measures
・ Promotion of improve group management efficiency through the preparation of an organizational structure
・ Enhancement of corporate governance, cultivating human resources to lead the next generation

In order to enhance resistance to changes in the external environment, we shallendeavor to create new business through the proactive use of our own resources and M&A

Creation of
New Business・ Launching of social issues (childcare, welfare, nursing care, etc.) business and materials business・ Promotion of open innovation through venture investment
・Proactive use of M&A activities© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

24

“Medium Term Management Plan 2021” Management Targets

FY2018Result

FY2019Forecast

Net Sales

292.8 billion yen

Operating
Income430 billion yen

500 billion yen○

7.6 billion yen

7 billion yen○

13 billion yen○

10.9%

6.4%

○○

8% or higher○

○

○

ROE

FOREX

Management
Targets FY2021○○○

・ Plan forecast： US$1.00＝￥110© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

25

Shareholder Return Concept
We shall perform stable dividends, while securing a consolidated dividend payout
ratio of 25 to 35%.
 We shall use funds for business investments, capital investments, and M&A, etc. inorder to contribute to future growth.
 Decisions on the acquisition of treasury shares shall be made appropriately,inconsideration of capital efficiency and share price, etc.
Basic Policy on
Dividends ofSurplus

29.6%

28.6%
25.5%

25.6%

24.1%

35%

32.9%

27.4%

25%

Total return trend：45.4%■ Ordinary dividend■ Commemorative
dividend■ Special dividend

Acquisition of treasury
shares (JPY 1,499 million)

80 yen(10 yen dividend
increase)60yen
555 yen (5 yen dividend (10 yen dividend
increase)
540 yen (15 yen dividend increase)increase)10(5 yen dividend

70 yen35 yen(5 yen dividend
increase)increase)

5
30

10

2014/3期
PeriodEnding
March
2014
実績
Results

2015/3期
PeriodEnding
March
2015
実績
Results

30

15

20

40

40

2016/3期
PeriodEnding
March
2016
実績
Results

2017/3期
PeriodEnding
March
2017
実績
Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

60
2018/3期
PeriodEnding
March
2018
実績
Results

70

2019/3期
PeriodEndingMarch
実績2019Results

60 Yen60
2020/3期
PeriodEnding
March
2020
予想
Forecast

2021/3期
Period Ending
イメージ
March
2021
Image

2022/3期

Period Ending
イメージ
March
2022
Image

26

Reference27

＜Reference＞Business portfolio concept
In the new medium term plan, we have reviewed future disclosure segments,
and perform a reclassification into the following new categories.
。
Sales Composition Ratio Diagram

500 billion yen
430 billion yen
130
400

3%
9%

950

22%

292.8 billion yen
OthersCSI

1,400 28%1395%
443 15%894 30%EMS
Electronic
components

100
2%
500 10%2,820 66%

3,000 60%

1,450 50%

FY2018Result© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

FY2019Forecast

Final Management
Targets（FY2021）
28

＜Reference＞ EMS Business Growth Scenario
Driven by the growth of in-vehicle, air conditioning, industrial
machinery, and medical and healthcare, we shall aim for drastic growthof business size of 1.5x that of FY2018
140 billion yen

1.5x

Fujitsu Electronics,
M&A

11％

Consumer,Communication etc.

10％

OfficeEquipment

10％
10％

Industrial
Machinery14％

Air Conditioning

20%

In‐vehicle

25%

Healthcare

89.4 billion yen
19％
9％
12％
14％
23%
23％
FY2018Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

FY2021 Image

PointsOrganic
GrowthFujitsuElectronics

EMS Shift

Further

M&A In addition to our existing production capacity in China,
ASEAN, and Europe, we shall aim to expand businessin growth areas such as in‐vehicle, air conditioning,
and industrial machinery, through full scale investment
in new bases in Vietnam, Mexico, Turkey, and India.
 We shall develop a “Key Device + EMS” approach forthe major customers of Fujitsu Electronics.
 We shall aim to further expand the size of the EMS
business, and search for new M&A opportunities insideand outside of Japan.
29

＜Reference＞Financial Highlights by Business Segment①（Net Sales）（Million Yen)

Net Sales
118,997
5,388
933

Total
YoY
QoQ

： +57,123： ＋60,597

YoY

：

＋568

QoQ

：

＋197

11,970
Others56,174
2,872
448
11,13260,4083,202
694
12,31457,465
2,627
399
11,29961,873
4,819
1,027
12,83655,493
4,103
465
10,41759,8895,276
939
10,725

Software58,3995,190
538
11,231

YoY
QoQ

100,704

：
：

▲93
＋394

Information equipment
YoY
QoQ

：
：

▲866
＋739

Electronic component

41,721

44,197

43,13943,19040,50742,94841,438

2018/3
1Q Results

2018/3
2Q Results

2018/3
3Q Results

2018/3
4Q Results

2019/3
1Q Results

2019/3
2Q Results

2019/3
3Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

YoY
QoQ

： +57,514：＋59,266

2019/3
4Q Results

30＜Reference＞Financial Highlights by Business Segment②（Segment Income）（Million Yen)

Segment Income

Total
YoY
QoQ

： ＋315： ▲155

Others

2,305
2,088
152
0
358

46
112
757

2,219

2,282

37
543

1,506
72
80
543

1,539

1,353

▲ 20
2018/3
2Q Results

80

2018/3
3Q Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

1,976

162

198

547

1,071

1,402

2019/3
1Q Results

1,306

1,821
75
125

981

▲ 20
2019/3
2Q Results

2019/3
3Q Results：

QoQ： ▲123＋2

Software567▲ 19
2018/3
4Q Results

474

317

1,616
802

2018/3
1Q Results

1,489

135

YoY

YoY
QoQ

： ＋44
： ＋146

Information equipment
YoY
QoQ

：
：

＋24
+92

Electronic component
YoY
QoQ： ＋178： ▲324

2019/3
4Q Results

Note: Figures of each segment income are not inter‐segment adjusted. Totalamount is inter‐segment adjusted (operating income).

31

＜Reference＞ Exchange Rate/FOREX Sensitivity（Reference）

FY2018/3
Results（Yen）

FY2019/3
Results（Yen）

Ordinary
incomeForex
Assumption
for2020/3(yen)Effect of 1% change（Million Yen）

Net sales

USD

110.85110.91827

26110.00

THB

3.36

3.43

225

12

3.40

RMB

16.63

16.72

118

6

17.00

HKD

14.20

14.14

162

3

14.00

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

32

＜Reference＞ Products and Services by New Business Segment

Electronic components

EMS(Electronics Manufacturing
Service) Sale of semiconductors (general‐purpose products,
customized products)
 Sale of general components (condensers, connectors,
cables, switches, etc.)
 Sale of LCD, LED, and various devices
 Manufacturing outsourcing (from mounting of circuitboards to assembly of completed products) services
for various electronic devices, and the resulting
design and development

CSI Sale of computers and PC ancillary equipment
 Sale of home electronic appliances, lighting
equipment, and photograph and film‐related products,
etc.

Others Production of various CG images and software Planning, development, manufacture, and sale ofamusement‐related products Repair of and support for electronics equipment
 Wholesale and retail sales of sports equipment, other(Consumer Solution Information)© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

33

＜ｍemo＞

34

＜ｍemo＞

35

＜ｍemo＞

36

＜ｍemo＞

37

“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

■ 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.