August 6, 2020
Name of Company:
Stock Code:Head Office:Representative:
Contact:

KAGA ELECTRONICS CO., LTD.

8154 Tokyo Stock Exchange, First Section
20 Kandamatsunagacho, Chiyoda-ku, Tokyo
Ryoichi Kado, President & COO
Eiji Kawamura, Managing Director,
Head of Administration Headquarters
Tel: 03-5657-0111

Notification of earnings and dividend forecasts
KAGA ELECTRONIC CO., LTD. (hereafter, the “Company”) hereby announces its consolidated
earnings forecast and dividend forecast for the fiscal year ending March 2021 (April 1, 2020
to March 31, 2021), which were reported as undecided in the “Summary of Consolidated
Financial Results for the Year Ended March 2020 (Japan GAAP)” announced on May 21, 2020.
Details are as follows.
Details
１．Earnings forecast
Consolidated earnings forecasts for the fiscal year ended March 31, 2020 (from April 1,2020 to March 31, 2021)

Net sales

Million yen

Million yen

Million yen

Million yen

(yen)

－－－－－

400,000

5,000

4,500

10,000364.18Difference (B-A)－－－－－

Percent change (%)－－－－－

443,615

10,014

10,1375,852

213.21

Previous forecast (A)(Announced on May 21, 2020)

Revised forecast (B)Ordinary
incomeProfitattributable toowners ofparent

OperatingincomeNet incomeper share(Reference)
Results for the fiscal year
ended March 31,2020[Reasons for consolidated earnings forecasts ]With respect to consolidated earnings forecast for the fiscal year ending March 31, 2021,
the Company reported it as undecided as of May 21, 2020, when the “Summary ofConsolidated Financial Results for the Year Ended March 2020 (Japan GAAP)” wasannounced, as it was difficult to logically estimate the effects of COVID-19 on the Group’sbusiness operations. Calculations have now been made based on information that iscurrently available, estimates and any other pertinent data as of the date of reporting.

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Looking ahead at the fiscal year ending March 31, 2021, it is expected that theCOVID-19 pandemic will continue unabated and will impact the Group’s business activities
in a variety of ways. In the information equipment business, demand for IT-related
products such as PCs and tablets is expected to grow as remote working and online
learning continue to expand. However, in the Group’s core electronic components business,a decline in demand is inevitable, notably in the automotive and industrial equipment
markets. Given also the impact of the dissolution of large commercial rights at FujitsuElectronics, a subsidiary of the Group, net sales are expected to fall below those of theprevious fiscal year. Although Group-wide efforts will be made to enhance operational
efficiency and curb selling, general and administrative expenses, a decrease in net sales isexpected, accompanied by year on year decreases in operating income and ordinary
income. Meanwhile, a year on year increase in profit attributable to owners of the parent is
projected because the “gain on bargain purchases” associated with the acquisition of
EXCEL in April 2020 will be recognized as extraordinary income.
２．Dividend forecast
Annual dividends
Second quarter end

Year-end

Total－－－

Revised forecast

30 yen30 yen60 yenDividends for the current
fiscal year－－－

Previous forecast(Announced February 6, 2020)

Dividends for the previous
fiscal year

30 yen40 yen70 yen(Ordinary dividend 30 yen)(Ordinary dividend 30 yen)(Special dividend 10 yen)(Ordinary dividend 60 yen)(Special dividend 10 yen)

(Fiscal year ended March 31, 2020)[Reasons for revisions]
The Company has positioned the return of profits to shareholders as one of the mostimportant management policies, and in addition to endeavoring to strengthen its financial
position and management foundation with a long term perspective, has the basic policy ofmaintaining stable and ongoing dividends to all shareholders in conjunction with theconsolidated results.
In the “Summary of Consolidated Financial Results for the Year Ended March 2020
(Japan GAAP)” announced on May 21, 2020, dividend forecast for the fiscal year ending
March 31, 2021, was reported as undecided, but in consideration of the Company’s
dividend policy and consolidated earnings forecast for the fiscal year ending March 31,2021, as described above, it has been decided to schedule the payment of regular dividendat the same level as in the previous fiscal year, with an annual dividend of 60 yen per
share, consisting of an interim dividend of 30 yen per share and a year-end dividend of 30
yen per share.
Note: The above forecasts are based on the information currently available to the Company on the date ofrelease and certain assumptions deemed reasonable. Actual results may vary from the forecast for avariety of reasons.

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