April 28, 2021
Name of Company KAGA ELECTRONICS CO., LTD.
Representative:

Ryoichi Kado, President & COO（Stock Code: 8154 Tokyo Stock Exchange, First Section）
Eiji Kawamura, Managing Director,
Head of Administration Headquarters
Tel: 03-5657-0111

Contact:

Notice Regarding Upward Revision to Earnings Forecast,
Upward Revision to Year-End Dividend Forecast, and Recording of Extraordinary Loss

In light of recent earnings trends, Kaga Electronics Co., Ltd. (hereinafter, “the Company”)
has revised its consolidated earnings forecast for the fiscal year ended March 31, 2021,
released on February 4, 2021, as shown below.

1. Revision of earnings forecast
Revision to consolidated earnings forecast for the fiscal year ended March 31, 2021
(from April 1, 2020 to March 31, 2021)

Net sales

Operating

Ordinary

incomeincomeProfitattributable Net income
to owners per shareof parent

Million yen

Million yen

Million yen

Million yenyen

415,000

9,000

8,500

10,500382.30

Revised forecast (B)422,000

11,400

11,20011,400415.07

Difference (B) – (A)

7,000

2,400

2,700

900

Percent change (%)

1.7

26.7

31.8

8.6

443,615

10,014

10,137

5,852

Previous forecast (A)(Announced on February 4, 2021)(Reference)
Results for the fiscal year
ended March 31, 2020)

213.21<Reasons for the revision>
The Electronics Components business has maintained the trend of the previous
quarter to outperform the internal forecast, driven by a sharp, faster than anticipated
recovery in demand from domestic and overseas customers in the manufacturingsector. The Information Equipment business has enjoyed strong sales of PC products byfirmly capturing the needs in teleworking at many companies as well as enrollment andadvancement needs in universities and vocational schools. Along with an increase in1

gross profit resulting from higher than anticipated growth of sales as explained above,
company-wide cost-cutting efforts have been made, helping to bring down selling,
general and administrative expenses to below the internal forecast. In view of theforegoing, operating income and ordinary income are both expected to exceed theprevious forecast. Given the increases in incomes from its main businesses, theCompany expects that profit attributable to owners of the parent will likewise exceed
the previous forecast after factoring in recognition of the approximately 500 million yenof loss as announced in the notice dated March 19, 2021 “Regarding Loss of Funds fromU.S. Subsidiary,” as well as impairment losses associated with certain overseas plants
where operations were temporarily suspended due to the COVID-19 pandemic.
2. Regarding the Recording of Extraordinary LossThe following constitute the main items pertaining to the extraordinary loss expected tobe recorded in the fiscal year ended March 2021.
Consolidated
business results(1) Provision of allowance for doubtful accountsapprox. ¥1.7 bnNon-consolidated
business results－approx. ¥1.7 bn

Insolvency of major creditor

approx. ¥2.2 bn

Insolvency of 3 consolidated
subsidiaries(2) Loss on valuation of stocks of affiliated companies－approx. ¥1.9 bn(3) Impairment loss on fixed assets
approx. ¥1.9 bn

Details－Investing company,
2 consolidated subsidiaries

Facilities of 5 consolidated
subsidiaries, etc.

３. Revision of dividend forecast
Annual dividends
End of 1st halfPrevious forecast(Announced on February 4, 2021)－Year-end

Total

40 yen70 yen(Ordinary dividend 30 yen) (Ordinary dividend 60 yen)(Special dividend 10 yen) (Special dividend 10 yen)

Revised forecast

50 yen－80 yen(Ordinary dividend 30 yen) (Ordinary dividend 60 yen)(Special dividend 20 yen) (Special dividend 20 yen)

Dividends for thecurrent fiscal year
Dividends for theprevious fiscal year

30 yen40 yen30 yen70 yen(Ordinary dividend 30 yen) (Ordinary dividend 60 yen)

(Fiscal year ended March 31, 2020）(Special dividend 10 yen) (Special dividend 10 yen)2

<Reasons for the revision>
The Company has positioned the return of profits to shareholders as one of its mostimportant management policies, and in addition to endeavoring to strengthen its
financial position and management foundation with a long-term perspective, has thebasic policy of maintaining stable and ongoing dividends to all shareholders, taking into
consideration the consolidated results.
In light of the upward revision to the full-year earnings forecast as described above,
we have increased the year-end dividend for the fiscal year ended March 31, 2021 to 50
yen per share, by adding a further 10 yen per share of special dividend to the previous
forecast of 40 yen per share (30 yen of ordinary dividend + 10 yen of special dividend).
Thus, together with the interim dividend of 30 yen, the full-year dividend will total 80
yen per share, a 10-yen increase from the 70 yen per share paid out in the previous
fiscal year.
This matter will be referred to the 53rd Ordinary General Meeting of Shareholders
scheduled to be held on June 29, 2021.
(Note) The above forecasts are based on the information currently available to the Company on the dateof the release and certain assumptions deemed reasonable. Actual results may vary from theforecast for a variety of reasons.

End（Reference）Annual dividend of the past 5 years
FY2016/3
FY2017/3
FY2018/3
Results
Results
Results

FY2019/3
Results

FY2020/3
Results

FY2021/3
Forecasts

Ordinary dividend

40 yen40 yen60 yen70 yen60 yen60 yenSpecial dividend

15 yen20 yen

10 yen

5 yen

10 yen20 yenCommemorative
dividend－－－

5 yen

－－

55 yen60 yen70 yen80 yen70 yen80 yenTotal3