Medium Term Management Plan 2021（2019 - 2021）
OutlineNovember 6, 2018

Kaga Electronics Co., Ltd.

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 “World Class Company”.

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

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

Key Issues

1

Utilizing the Group’s DNA to see things ahead of time, we shall focus on markets and2
3Aiming to stabilize the management base towards early improvement of efficiency andEnhancement ofRevenue Base

Stabilization ofManagement
Base

Creation ofNew Businesscustomers forecast to have high growth potential and profitability, and will aim tostrengthen 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 businessfinancial 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・ 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.

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“Medium Term Management Plan 2021 (2019-2021)”
Management Targets

FY2018
Forecast

Management Targets
FY2021

Growth Rate
Compared toFY2018

Net Sales

290 billion yen○

500 billion yen○

Up 72%○

Operating
Income7.7 billion yen○

13 billion yen○

Up 69%○

9.9%○

8% or higher○

－ROE

FOREX

・ Assumed Exchange Rate： US$1.00＝￥110© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

3

Positioning of “Medium Term Management Plan 2021 (2019 - 2021)”
1 trillion yen

Organic
GrowthAim to become a “company that spans the globe”+that will be victorious in global competition
Further M&A
FurtherChallengesexpansion of500 billion yen
Towards the realization ofthe EMS“Japan’s No. 1 corporate group inbusinessthe industry”
Kaga
ElectronicGroup+FujitsuElectronics

Increased
Sales

Expansion oftrading company business

Increased
ProfitRatio

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

Qualitative improvement
through EMS businessMedium Term Management Plan 2021 (2019-2021)(Net Sales)

Medium to Long Term
Vision© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

4

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

29.6%

28.6%
25.5%

25.6%

28.2%
28.0%

24.1%
25%
Total return trend：45.4%■ Ordinary dividend■ Commemorative
dividend■ Special dividend

Acquisition of treasury shares (JPY 1,499million)

70 yen75 yen(5 yen dividend
60 yen(10 yen dividend increase)
55 yen (5 yen dividendincrease)(15 yen dividend increase)40yen
535 yen
10increase)(5 yen dividend(5 yen dividendincrease)
20increase)
15

530

10Period
Ending
2014/3期
March 2014実績
Results

PeriodEnding
2015/3期
March 2015実績
Results30

4040

PeriodEnding
2016/3期
March 2016実績
Results

PeriodEnding2017/3期
March 2017実績
Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

60
PeriodEnding
2018/3期
March 2018実績
Results

70Period
Ending2019/3期
March 2019
予想Forecast

PeriodEnding2020/3期
March 2020
イメージ
Image

PeriodEnding2021/3期
March 2021
イメージ
Image

PeriodEnding2022/3期
March 2022
イメージ
Image

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“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■ Caution on forward-looking statements
Forwarding look statements included in this document, such as performance forecasts, arebased on information that has been obtained at the current time and certain assumptions
deemed as reasonable by the company; actual performance, etc. may be significantly different
due to various factors.