For Institutional Investors/Analystssts

Consolidated Financial Results
for the First Quarter of theFiscal Year ending March 2023
KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

August 4, 2022

Summary of Financial Results
for the First Quarter Ended June 30, 2022

FY2023/3
1Q Results

Net sales increased by 43.3 billion yen or 40.9% year on year to 149.3 billion yen,driven by the core electronic components business. Sales expanded in a wide range ofareas, led by automotive and industrial equipment related applications.

Operating income increased by 5.3 billion yen or 120.6% year on year to 9.8 billion yen.
Improved gross profit margin attributable to higher sales and sales mix resulted in
substantial rise in gross profit.

All objectives from net sales to ordinary income for the quarter achieved record highs
for a first quarter.

Net sales and operating income both exceeded the internal plan, by approx. 27.0 billion
yen and 4.6 billion yen respectively.

Given uncertainties in the outlook due to factors including COVID-19, the situation in Ukraine
and exchange fluctuations, upward revision was made factoring in the 1Q upside only.
Forecasts for 2Q and beyond are unchanged from the initial forecasts.

FY2023/3
earnings
Forecasts(billion yen)

Effect ofexchangerates

Net Sales

Operating income

Net income

Previous forecasts

510.0

21.2

14.5

Revised forecasts

540.0

24.0

16.0

Relative to the US dollar and other major currencies, the yen generally trended downward,
weakening to below compared to the same period the previous year earlier levels and planassumptions. The effect of exchange rates on the conversion into yen of the P&L of the Group’s
overseas companies is as follows.
(billion yen)

Net Sales

Operating income

YoYapprox 9.4

approx 0.4

vs Planapprox 5.6

approx 0.3

1

Financial Highlights for FY2023/3 1Q（million yen）

FY2022/3
1Q Results

FY2023/3
1Q Results

105,949

Gross Profit

13,55012.8%

19,838

SG&A

9,098

8.6%

Operating income

4,452

Ordinary income
Profit attibutable toowners of parent
EPS (yen)Exchange Rateyen / USD

YoY

(announced on May. 12, 2022)

149,302

Net sales

FY2023/3
Forecasts

Progressrate

40.9%

510,000

13.3%

46.4%ーーー10,018

6.7%

10.1%

ーー

ー

4.2%

9,820

6.6%

120.6%

21,200

4.2%

46.3%

4,566

4.3%

9,858

6.6%

115.9%

21,200

4.2%

46.5%

2,872

2,7%

6,984

4.7%

143.2%

14,500

2.8%

48.2%

104.55ー

266.10ーー

552.42ーー

109.49ー

129.57ーー

116.00ーー

29.3%

Note: "x. x% " represents the profit margin.

2

Financial Results by Business Segment for FY2023/3 1Q（million yen）

FY2022/3
1Q Results
ElectronicComponent

Net sales

Information
Equipment

Net sales

Software

OthersTotalSegment incomeFY2023/3
1Q Results

90,624
3,699

4.1%

10,6369,018

6.8% 143.7%

18,50011,1474.8%

39,000

-0.6%

2,000

-12.3%

4,000

ー100

1.4%

20,00014.7%

600

149,30240.9%

510,000

9,820

6.6% 120.6%

21,200

564

568

498

Segment income-67 -11.8%-33

Segment income
Net sales
Segment income

217

5.1%

-6.7%

4,178
5.3%

105,949
4,452(announced on May. 12, 2022)

447,000

Net sales

4,120

4.2%

Forecasts

47.3%

568

Net sales

YoY

133,477

Segment income

5.3%

FY2023/3

249

6.0%

Progressrate29.9%

4.1%

48.7%
28.6%

5.1%

28.2%
12.5%

2.5%

ー20.9%

3.0%

41.5%
29.3%

4.2%

46.3%

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
"x. x% " represents the profit margin.

3

Effect of M&A（million yen）

Net Sales

Gross profit / Gross profit margin

All three companies achieved significant increases in net
sales driven by the electronic components business.

Kaga FEI achieved a significant increase in gross profit,
reflecting higher sales and improved profit margin.

105,949+24,223+15,607+3,521

149,302
13,550
16.0%
9.4%
7.9%

2022/3
1Q

Kaga
Electronics

Kaga FEI

Excel

FY2023/3

2023/3
1Q

SG&A / SG&A ratio

9,098
9.9%
8.1%
4.0%

12.8%

2022/3
1Q

8.6%
Kaga
Electronics

5.6%

Kaga FEI

Kaga
Electronics

2.9%

FY2023/3

13.3%

12.1%

Kaga FEI

Excel

FY2023/3

2023/3
1Q

4,452
6.2%
3.7%

2023/3
1Q

9,820+2,693-44+2,532
6.7%

Excel

-92

Kaga Electronics and Kaga FEI contributed significantly toachieve 6.6% operating income margin.

10,018+39

19,838

5.7%

-47
8.1%

2022/3
1Q

15.5%+2,775

Operating income / Operating income marjin

SG&A ratio was kept down despite an increase in SG&A
expenses resulting from a growth in sales.
+927+3,452

1.1%

7.4%

2.7%

4.2%

2022/3
1Q

KagaElectronics

6.6%

6.4%

Kaga FEI

Excel

FY2023/3

2023/3
1Q

Note :With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the two companies. For reference, after consolidation adjustments, gross profit
stood at 25million yen, and operating income came to 65million yen.

4FY2023/3 1Q Results by Company（million yen）

KagaElectronics

FY2022/3
1Q Results

FY2023/3
1Q Results

YoY

60,11584,33940.3%

Gross Profit

9,588 16.0%

13,040 15.5%

36.0%

Operating income

3,719 6.2%

6,251 7.4%

68.1%

32,14547,752

3,009 9.4%

5,784 12.1%

Net sales

Net sales
Kaga FEI

Gross Profit
Operating income

Excel

92.2%

3,040 6.4% 777.0%
17,209Net sales

13,688Gross Profit

1,0797.9%

986 5.7%

-8.6%

507

3.7%462 2.7%

-8.9%

Operating income
Net sales
Total

346 1.1%

48.6%

Gross Profit
Operating income

25.7%

105,949

149,302

13,550 12.8%

19,838 13.3%

4,452 4.2%

9,820 6.6% 120.6%

40.9%
46.4%

Note: With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.
"x. x% " represents the profit margin.

5

Financial Highlights: Electronic Component Segment
Net sales/Segment income（million yen）//

180 000YoY

Net Sales

180 00

Segment income

160 000

160 00133,477

140 000140 00

122,440120 000

100 000

120 0090,6249,018

800 00

800 0

5,105

600 00400 00100 00

600 0

3,699

400 0

200 00200 00 Net Sales Segment income+42,853million yen

47.3％Up+5,318million yen 143.7％Up・ Despite protracted supply constraints of some materials, thecomponents sales business was able to secure sales volumeusing the Company’s strengths as an independent trading
company, and achieved substantial growth in profit.
・ Both Kaga Electronics and Kaga FEI saw spot sales making
a larger than expected contribution to profit.
・Sales in the EMS business were solid, especially of in
automotive and medical applications.
・To minimize the impact of lockdown in Shanghai,
collaboration among Group companies in China andthorough process control were implemented to keep
operations running.

QoQ
 Net Sales Segment income+11,037million yen

9.0％Up+3,912million yen

76.6％Up

0

FY2022/3
1Q Results

FY2022/3
4Q Results

FY2023/3
1Q Results

6

Financial Highlights: Information Equipment Segment 2020年
Net sales/Segment income（million yen）

YoY/ Net Sales

200 00 Net Sales
200 0/ Segment income180 00

180 0

160 00160 013,315140 00120 00140 011,147

10,636

120 0869

100 00

100 0

800 0

600 0800568564600

400 0400

200 02000

 Segment income+511million yen 4.8％Up-3million yen 0.6％Down

・Despite a downturn in sales of PCs for remote working,sales of PCs to educational institutions and sales of PC
peripheral equipment such as security softwareremained solid.
・In the LED installation business, large projects that
had been delayed due to shortages of materials
resumed, contributing to earnings.

QoQ
 Net Sales Segment income-2,168million yen 16.3％Down-304million yen 35.0％Down

0

FY2022/3
1Q Results

FY2022/3
4Q Results

FY2023/3
1Q Results

7Factors of Increase / Decrease in Operating Incomevs Internal Plan

YoY
（million yen）

+1,859-920（million yen）

9,820
+1,138+4,429

SG&A+3,000Spot sales

+482

9,820

SG&A
Spot sales

5,200
4,452
Sales volume
Sales mix

Sales volume
Sales mix

Income increase: 5,368
FY2022/3
1Q Results

FY2023/3
1Q Results

Upside: 4,620
FY2023/3
1Q Plan

FY2023/3
1Q Results8

Balance Sheet Main Items
Total assets

Total liabilities and net assets（million yen）

（million yen）

286,756

286,756
272,139+14,616

272,139

237,004+14,616

237,004
171,637
166,339
233,984

248,727+14,742

Current assets+5,297

Total liabilities

141,942

200,179

95,06236,825

38,1552021/32022/338,028-1262022/6

105,800

115,119+9,319Total net assets

Non-current assets
2021/32022/32022/69

Balance Sheet Main Items
Inventories
100 ,0 00

46.1
90,00 0Accounts receivable/Accounts payable（ million Yen, day）

43.3

50.0
200 ,0 00

Inventory turnover

32.8
80,00 071,03993.7（ million Yen, day）
90.0

89.0

79.8

A/R turnover
70.0

68.6

30.0

+8,43260.2

70,00 0A/P turnover
50.0

150 ,0 00

62,60710.0

120,948

60,00 0125,694

Notes and A/R+4,74630.0

108,394

50,00 0-10.0

40,00 076.6

100 ,0 00

37,94879,854-30.0

30,00 086,49390,487+3,99310.0

Notes and A/PInventories-10.0

50,00 020,00 0-50.0-30.0

10,00 0-70.002021/32022/32022/60-50.0

2021/32022/32022/6

Note：Inventory turnover ＝ Inventories ÷ Net Sales × 91（day） Notes：・Notes and A/R are amounts including Electronically recorded monetary claims-operating
・Notes and A/P are amounts including Electronically recorded obligations - operating
・A/R turnover ＝ Notes and A/R ÷ Net sales × 91（day）
・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 91（day）

10

Balance Sheet Main Items
Cash and Deposits/Interest Bearing Debt
0.42

0.48

0.48

（million yen, times）
0.50

80,00 0-0.08

0.100.110.00

D/E ratio
Net D/E ratio

70,00 055,19560,00 051,17150,00 040,00 045,63638,26141,051+4,02442,317-0.50

Cash and deposits-1.00+1,265-1.50

Interest bearing debts

30,00 0-2.00

20,00 0-2.50

10,00 00-3.00

2021/32022/32023/6

Note：D/E ratio＝ Interest bearing debts ÷ Shareholder’s equity
Net D/E ratio ＝（Interest bearing debts - Cash and deposits） ÷Shareholder’s equity

11Forecasts for FY2023/3

Forecasts for the FY2023/3（million yen）

（Announced on May 12, 2022)

FY2022/3
Results
Net sales

FY2023/3
Previous forecasts

495,827

Diff. frompreviousforecasts

FY2023/3
Current forcasts

540,000

510,000

YoY

5.9%

8.9%

Operating income

20,915

4.2%

21,2004.2%

24,000

4.4%

13.2%

14.7%

Ordinary income

21,456

4.3%

21,2004.2%

24,500

4.5%

15.6%

14.2%

Profit attibutable toowners of parent

15,401

3.1%

14,5002.8%

16,000

3.0%

10.3%

3.9%

EPS (yen)

576.46552.42609.58

ー

57.16

33.12

ROE

15.7%

13.0%

14.0%

ー

1.0pt

-1.7pt120.00150.00150.00ー30.00

Annual dividend (yen)Ordinary dividend

80.00

Ordinary dividend

Special devidend

40.00

Commemorative dividend 10.00

140.00Ordinary dividend

140.00Commemorative dividend 10.00

Note: "x. x% " represents the profit margin.

13

Forecasts for FY2023/3 by Segment（million yen）

FY2022/3
Results
Net sales
Segment income

18,107

Information
Equipment

Net sales

39,616

Others

Total

Segment income

2,085

Net sales

2,767

Segment income
Net sales
Segment income
Net sales
Segment income

-26

4.2%

5.3%

4.5%

2,000-1.0%

1005.1%600

2.5%

24,000

ー
2.1%

3.0%

540,000
4.2%

-4.1%
44.5%

20,000
3.2%

17.6%
-1.6%

4,000

495,827
20,91521,3009.9%

39,00019,590626

YoY

477,000

433,852

ElectronicComponent

Software

FY2023/3
Forecasts

-4.2%
8.9%

4.4%

14.7%

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
"x. x% " represents the profit margin.

14ReferenceSegment disclosure associated with 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-Term
Management 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

 Sales of PCs and PC
peripherals
 Sales of home electric
appliances and lighting
fixtures Sales of photograph andimaging products

SoftwareOthers

 Production of CG videoand software
 Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods

Electroniccomponents

 Sales of semiconductors
 Sales of general electroniccomponents
 Sales of various devices

EMS

 Electronic equipment manufacture
contracting services
 Sales of PCs and PC peripherals
 Sales of home electric appliancesand lighting fixtures

CSI

 Sales of photograph and imaging
products
CSI: Consumer & System Integrator
 Production of CG video and software

Others Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods

16Financial Highlights by Business Segment ofthe Medium-Term Management Plan（million yen）

FY2021/3
1Q Results
ElectronicComponent
EMS

CSIOthers

Total

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income

FY2022/3
1Q Results

FY2022/3
1Q Results

YOY49,740

66,124

101,444

53.4%

44

1,775

6,541

268.4%

19,82026,33433,867

28.6%

1,083

2,060

2,612

26.8%

12,537

10,636

11,147

4.8%

583

568

564

-0.6%

2,031

2,854

2,842

-0.4%

-89

1479

451.6%

84,130105,949

149,302

40.9%

1,656

4,452

9,820

120.6%

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

17Quarterly Net Sales Trends
Net Sales（million yen）

143,143
129,675
117,059
105,949
4,120
568
10,636

4,530
669
8,077

4,478
603
7,587

6,460
926
13,315

149,302
4,178
498
11,147

Total
YoY
QoQ：+43,352： +6,159

Other
YoY ：+57

QoQ ：-2,281

Software
YoY ：
QoQ ：

90,624

103,782

117,005

122,440

133,477-69-428

Information equipment
YoY ： +511
QoQ ： -2,168

Electronic equipment
YoY ：+42,853
QoQ ：+11,037

FY2022/3
1Q Results

FY2022/3
2Q Results

FY2022/3
3Q Results

FY2022/3
4Q Results

FY2023/3
1Q Results

18Quarterly Segment Income Trends
Segment Income（million yen）

9,820
249564

Total
YoY
QoQ： +5,367： +3,563

Other

6,357
152

305

4,452
217
568

YoY
QoQ

6,257
152
83869

3,848

YoY
QoQ342
5,878+31+96

Information equipment

9,018

103：：：-3： -304

Electronic equipment
YoY
QoQ： +5,318： +3,912

YoY
QoQ

：：

5,105
Software

3,699

3,423-67-42-0

FY2022/3
1Q Results

FY2022/3
2Q Results

FY2022/3
3Q Results+33-116-33
FY2022/3
4Q Results

FY2023/3
1Q Results

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

19

Net Sales by Region
Net Sales（million yen）

143,143

149,302
Total

129,675

YoY
QoQ：+43,352： +6,159

YoY
QoQ：+25,139： +1,756

117,059
Japan105,949
78,484

55,101

7,454
3,915

61,266

8,721
4,301

39,47742,770

FY2022/3
1Q Results

FY2022/3
2Q Results

80,24068,562

North America
YoY
QoQ

11,228

8,675
3,938

9,249
4,718

48,49850,69051,983

FY2022/3
3Q Results

FY2022/3
4Q Results

FY2023/3
1Q Results

5,849： +3,773： +1,978EuropeYoY
QoQ： +1,934： +1,130

YoY
QoQ：+12,505： +1,293

Asia

20

Exchange Rate/FOREX Sensitivity（Reference）

FY2022/3
1Q Results（Yen）

FY2023/3
1Q Results（Yen）

Effect of 1% change（Million Yen）

Net sales

OperatingincomeForex
Assumption
for2023/3(yen)USD

109.49129.57457

16116.00

RMB

16.36

18.29

813

18.00

THB

3.50

3.77

64

33.50

HKD

14.10

16.51

49

2

14.50

EUR

131.96138.1230

130.0021

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Contact: Investor Relations & Public Relations Office
TEL:+81-3-5657-0106
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■ 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.