May 14, 2019

Summary of Consolidated Financial Results
for the Year Ended March 2019 [Japan GAAP]
Name of Company:
KAGA ELECTRONICS CO., LTD.
Stock Code:8154
URL: https://www.taxan.co.jp/
Stock Exchange Listing:Tokyo Stock Exchange, First Section
Representative
Title: President & COO
Name: Ryoichi Kado
Contact Person
Title: Managing Director, Administration Headquarters
Name: Eiji Kawamura
Phone:+81-(0)3-5657-0111
Date of regular general meeting of shareholders:June 27, 2019 (tentative)
Date of commencement of dividend payment:
June 28, 2019 (tentative)
Date of filing of securities report:
June 27, 2019 (tentative)
Supplementary explanatory documents:
Yes
Earnings presentation:
Yes (For institutional investors and analysts)(Yen in millions, rounded down)

1. Financial results for the current fiscal year (April 1, 2018 - March 31, 2019)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Net sales

Operating income

Million yen%

Fiscal year ended March 2019292,779

Fiscal year ended March 2018

235,921

Million yen

24.1

%

7,570

Profit attributableto owners of parent

Ordinary income
Million yen

(6.8)

%

7,859

Million yen(10.1)

8,014

%

23.5

3.8
8,119
18.0
8,740
19.0
6,490
(7.0)
Note: Comprehensive income: FY ended March 31, 2019: 7,848 million yen [19.9%] FY ended March 31, 2018: 6,544 million yen [(10.6)%]
Earnings per share

Earnings per share(diluted)

Return on
equityRatio of ordinary
income to assets

Ratio of operating
income to net sales

Yen

Yen

%

%

%

Fiscal year ended March 2019292.07

－

10.9

4.6

2.6

Fiscal year ended March 2018236.58

－

9.5

6.9

3.4

FY ended March 2018: （111）

Ref.: Share of profit/loss of entities accounted for using equity method: FY ended March 2019: (194) million yen
million yen(2) Financial Position (Consolidated)
Total assets

As of March 31, 2019
As of March 31, 2018
Ref.: Shareholders’ equity

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

213,761

84,25935.8

2,790.97

128,755

70,63154.8

2,571.79

FY ended March 2019: 76,604 million yen

FY ended March 2018:70,556 million yen(3) Cash flow position (Consolidated)
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen

Fiscal year ended March 2019

(1,547)(6,860)11,68432,231

Fiscal year ended March 2018

10,077(4,173)(2,811)

28,8792. Dividends
Dividend per share

1Q
Yen

Fiscal year ended March 2018
Fiscal year ended March 2019
Fiscal year ending March 2020
(Forecast)

2Q

3Q

Yen

Yen

Year- end

Full year

Yen

Yen

-

30.00
35.00

－

40.00
45.00

70.00
80.00

-

30.00

－

30.00

60.00

Annualaggregate
amountPayout ratio(Consolidated)

Dividends/
net assets(Consolidated)

Million yen

%

%

1,920
2,195

29.6
27.4

2.8
3.0

32.9

Notes: Breakdown of interim dividend for FY3/18: Ordinary dividend: 25.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/18: Ordinary dividend: 35.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of interim dividend for FY3/19: Ordinary dividend 30.00 yen; 50th anniversary commemorative dividend 5.00 yen
Breakdown of year-end dividend for FY3/19: Ordinary dividend: 40.00 yen; Extraordinary dividend: 5.00 yen3. Forecast for the fiscal year ending March 2020 (Consolidated, April 1, 2019 - March 31, 2020)

Net sales(Percentage figures represent year on year changes)
Profit attributable toEarnings per
Ordinary income
owners of parent
share

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

430,000

46.9

7,000

(7.5)

7,000

(10.9)

5,000(37.6)

182.17Full year* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in the scope of consolidation): Yes
New: 1 (Company Name) Fujitsu Electronics Inc.
(2) Changes in accounting policies, estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(3) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)

As of March 31, 2019:28,702,118

As of March 31, 2018:

28,702,118(b) Treasury shares

As of March 31, 2019:

1,254,924

As of March 31, 2018:

1,267,393(c) Average number of shares
outstanding during the year

As of March 31, 2019:27,439,524

As of March 31, 2018:27,435,139(Reference) Non-consolidated Financial Results
Financial results for the fiscal year ended March 2019 (April 1, 2018 - March 31, 2019)(Percentage figures represent year on year changes)(1) Result of operations (Non-consolidated)
Net sales
Fiscal year ended March 2019
Fiscal year ended March 2018

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

73,90673,098

1.1
(3.4)

(323)
(629)

－
－

4,820
3,213

50.0
26.0

4,620
3,782

22.1
28.0

Earnings per share(diluted)

Earnings per share
Fiscal year ended March 2019
Fiscal year ended March 2018

Yen

Yen

168.38137.89－－(2) Financial Position (Non-consolidated)
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of March 31, 2019
As of March 31, 2018

96,087
71,68543,34841,12445.1
57.4

1,579.20
1,499.00

Ref.: Shareholders’ equity

Fiscal year ended March 2019:

43,348 million yen

Fiscal year ended March 2018:41,124 million yen*The audit procedures by certified public accountant or auditing firm are not applicable to this Financial Results report.
*Cautionary statement regarding forecasts of operating results and special notes(Caution regarding forward-looking statements)
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 thesestatements for a number of reasons. For information about the forecasts, please see “1. Results of Operations (4) Future outlook”
on page 4 of Supplementary Information.
(Supplementary materials for financial results and how to obtain details of the financial results meeting)
The Company plans to hold a financial results meeting for institutional investors and analysts on Thursday, May23, 2019.
The Company also plans to post a streaming video of the meeting and the details of the presentation, along with the presentationmaterials used at the meeting, on its website promptly after the meeting.

Index for Supplementary Information
1. Results of Operations ....................................................................................................................................................................2(1) Overview of consolidated business performance ..................................................................................................................2(2) Overview of financial condition............................................................................................................................................3(3) Cash flows ............................................................................................................................................................................4(4) Future outlook.......................................................................................................................................................................4(5) Basic policy for earnings allocations and dividends in the current and next fiscal years ......................................................5
2. Basic Approach to the Selection of Accounting Standards ..........................................................................................................5
3. Consolidated Financial Statements and Major Notes ....................................................................................................................6(1) Consolidated balance sheet ...................................................................................................................................................6(2) Consolidated statements of income and comprehensive income ........................................................................................87(3) Consolidated statement of changes in equity ....................................................................................................................109(4) Consolidated statement of cash flows .................................................................................................................................12(5) Notes to consolidated financial statements .........................................................................................................................14(Notes to going concern assumptions) ................................................................................................................................14(Changes in Presentation Methods).....................................................................................................................................14(Segment information, etc.) ................................................................................................................................................14(Per-share information) .....................................................................................................................................................16(Subsequent events) ..........................................................................................................................................................16
4. Non-consolidated Financial Statements.......................................................................................................................................17(1) Balance sheet ......................................................................................................................................................................17(2) Statement of income ...........................................................................................................................................................19(3) Statement of changes in equity ...........................................................................................................................................20

1

1. Results of Operations(1) Overview of consolidated business performance
Looking back on the economic situation in the fiscal year ended March 31, 2019, the US economy continued its robust
trend, but the Federal Reserve Board (FRB) kept the policy rate on hold, an indication of its cautious outlook against the
backdrop of concerns over a global economic slowdown. The Chinese economy was showing a clearer sign of aslowdown amid concerns over US-China trade frictions, causing a significant impact globally. In Europe, exports
stagnated in one of the major countries, Germany, while in Japan the business sentiment of large corporations andmanufacturing companies, which were driving the gradual recovery during recent years, started to show the effects of aslowdown in the Chinese economy.
In the electronics industry, the principal sector of operations of the Group, although growth of electronic components
for mobile phones slowed due to maturation of the smartphone market and the rise of unit prices, the market for
automotive devices continued to be firm with the use of electronics expanding, as represented by electronic vehicles andautonomous driving assistance technologies.
In such conditions, based on our corporate philosophy of “Everything we do is for our customers,” the Group further
expanded its overseas production bases in response to calls from customers, while in Japan the Group focused its efforts
on expansion of the EMS (Note) business by pushing forward with enhancements of domestic production facilities andfunctions, and other measures. In January this year, the Group solidified its foothold for further growth by converting
Fujitsu Electronics Inc. to a subsidiary.
(Note) Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis

FY 2018/3

FY 2019/3(April 1, 2017 –March 31, 2018) (April 1, 2018 –March 31, 2019)

YoY（Million yen）

（Million yen）

（Million yen）

Net sales

235,921292,779

56,85824.1％

Gross profit（Margin）

32,49813.8％

35,546
12.1％

9.4％
－

SG&A

24,37927,9763,047(1.6p)t
3,596

14.8％

Operating income

8,119

7,570

Ordinary income

8,740

7,859

(549)

(6.8％)

Profit before income taxes

9,300

Profit attributable to ownersof parent

9,649

(880)
349

(10.1％)

6,490

8,014

1,523

23.5％

EPS

236.58 Yen

292.07Yen

55.49 Yen

－

ROE

9.5％

10.9%

1.4pt

－

110.85Yen

110.91 Yen

0.06Yen－Exchange Rate
(Average rate during the year)
USD

3.8％

Net sales of the Group in the fiscal year ended March 2019 came to 292,779 million yen, an increase of 24.1% from theprevious fiscal year. Despite a temporary decline in unit sales due to production adjustments and model switching at someof the customers, a significant year-to-year growth was recorded, notably reflecting the overall robust performance of theGroup’s mainstay EMS business and the impact of Fujitsu Electronics Inc. becoming a subsidiary from January 2019,In terms of income, operating income decreased by 6.8% from the previous fiscal year to 7,570 million yen, due tofactors including upfront expenses of new overseas sites, such as in Vietnam and Mexico, which were at their start-up
phase. Ordinary income decreased by 10.1% to 7,859 million yen. Meanwhile, profit attributable to owners of parent
came to 23.5% to 8,014 million yen, an impressive increase from the previous fiscal year and a record high for the firsttime in 13 years, exceeding 7,272 million yen recorded in the fiscal year ended March 2006. The increase is attributed to
the “Gain on bargain purchase ” which was posted as extraordinary income in connection with the acquisition of acompany as well as a decrease in income taxes due to the comsolidated tax payment system.

2

Business segment performance was as follows.
FY 2018/3

FY 2019/3

YoY(April 1, 2017 –March 31, 2018) (April 1, 2018 –March 31, 2019)（Million yen）

（Million yen）

（Million yen）

Electronic components

Net sales
Segment income

172,248
5,312

225,598
4,761

53,350(550)

31.0%(10.4%)

Information equipment

Net sales
Segment income

47,582
2,202

44,344
1,906(3,237)(296)(6.8%)(13.4%)

Software

Net sales
Segment income

2,568
172

2,876
247

308
74

12.0%
43.5%

Others

Net sales
Segment income

13,522308

19,959
490

6,436
182

47.6%
59.0%

Total

Net sales
Segment income

235,9218,119

292,779
7,570

56,858(549)

24.1%(6.8%)

Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total.
(a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components andother products, the electronics manufacturing service (EMS), and other activities)
In this business, the EMS business for automotive and air conditioning devices maintained steady performance whilebusiness for medical equipment was slow due to model switching and the resulting production adjustments at major
customers. Components sales business remained sluggish notably for home electric appliances from the effect of
production adjustments at major customers.In addition, Fujitsu Electronics Inc. was converted to a subsidiary inJanuary this year, which helped net sales record a substantial increase of 31.0% year-on-year, to 225,598 million yen.
Segment income came to 4,761 million yen, down 10.4% year-on-year.
(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph and imaging products,
original brand products, and other products)
In this business, although the commercial facilities-related LED installation business continued a robust trend, sales
in the housing-related home electric appliances business decreased as a result of factors including delivery dateadjustments by customers. In PC sales, although sales were strong for individuals, sales were sluggish for corporate
customers. As a result, net sales decreased by 6.8% to 44,344 million yen and segment income declined by 13.4% to
1,906 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products, and other activities)
In this business, orders for production of computer graphics animation and development of game software wererobust. As a result, net sales increased by 12.0% to 2,876 million yen and segment income increased by 43.5% to 247
million yen.
(d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement equipment, and sales ofsports goods, and other activities)
In this business, sales of arcade amusement machines continued strong. In addition, while the PC products and PC
peripherals recycling business performed strongly, sales of golf products remained sluggish. As a result, net sales
increased by 47.6% to 19,959 million yen and segment income increased by 59.0% to 490 million yen.
(2) Overview of financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2019 increased by 85,005 million yen from the previous fiscal year-end to 213,761 million
yen. This is largely due to an increase of 50,335 million yen in notes and accounts receivable – trade and an increase of
18,673 million yen in merchandise and finished goods, reflecting the significant impact of the conversion of FujitsuElectronics Inc. to a subsidiary.
Liabilities increased by 71,378 million yen from the previous fiscal year-end to 129,501 million yen. This is primarily
attributed to an increase of 25,270 million yen in short-term loans payable due to the procurement of funds notably for thepurchase of Fujitsu Electronics Inc. shares, and an increase of 41,491 million yen in notes and accounts payable – trade.
Net assets increased by 13,627 million yen from the previous fiscal year-end to 84,259 million yen. This is primarily
due to an increase of 6,144 million yen in retained earnings as a result largely of 8,014 million yen recorded as profit
attributable to owners of parent, and an increase of 7,579 million yen in non-controlling interests resulting largely fromthe conversion of Fujitsu Electronics Inc. to a subsidiary.

3(3) Cash flows
Cash and cash equivalents as of March 31, 2019 increased 3,352 million yen from March 31, 2018 to 32,231 million yen.
(Operating activities)
Net cash used in operating activities was 1,547 million yen (10,077 million yen provided in the previous fiscal year)
mainly due to decrease in notes and accounts payable-trade.
(Investing activities)
Net cash used in investing activities was 6,860 million yen (4,173 million yen used in the previous fiscal year) mainly
due to purchase of property, plant and equipment.
(Financing activities)
Net cash provided by financing activities was 11,684 million yen (2,811 million yen used in the previous fiscal year)
mainly due to short-term loans payable.
(4) Future outlook
In the economic environment surrounding the Group, the US economy is expected to continue its robust trend, while
the Japanese economy will also likely maintain a certain degree of firmness against the backdrop of strong corporate
capital expenditure. Still, an unpredictable situation is expected in the future of the global economy given concerns of aslowdown in Chinese economic growth resulting from prolonged trade friction between the US and China, the Brexit
issue, the geopolitical risks in the Middle East, and other factors.
The Company formulated “Medium Term Management Plan 2021” (announced on November 6, 2018), a three-yearplan which sets forth its growth strategy, running from the fiscal year ending March 31, 2020 to the fiscal year ending
March 31, 2022, and will strive to form “Japan’s No. 1 corporate group in the industry” and, furthermore, to become a“World Class Company”. Group-wide efforts will be made in implementing the various initiatives of the basic policy,
which comprises “enhancement of revenue base” focusing on markets that are expected to see high growth andprofitability in the future, “stabilization of management base” through improvement of efficiency and financial soundness
after conversion of Fujitsu Electronics to a subsidiary, and “creation of new business” in order to strengthen resistance tochanges in the external environment.
Having carefully factored in the situation as described above, the Group has set the following performance forecasts forthe fiscal year ending March 31, 2020, the first year of the plan:
FY2019/3
Results

FY2020/3
Forecasts

FY2022/3
Management Targets（Million yen）

（Million yen）

（Million yen）

292,779

430,000

500,000

Operating income

7,570

7,000

13,000Ordinary income

7,859

7,000

－

Profit attributable to ownersof parent

8,014

5,000

－

ROE

10.9％

6.4％

8.0％or higher

110.85 Yen

110.00 Yen

110.00Yen

Net sales

Exchange Rate
USD

(Note) The above performance forecasts, etc. are based on information currently available to the Company at the time ofwriting and on certain assumptions considered by the Group to be reasonable. Actual results, etc. may besubstantially different from the forecasts due to various factors.

4(5) Basic policy for earnings allocations and dividends in the current and next fiscal years
The Company positions the return of profits to shareholders as one of the most important management policies, and in
addition to endeavoring to strengthen its financial position and management foundation with a long-term perspective, has
the basic policy of maintaining stable and ongoing dividends to all shareholders with due consideration to consolidated
performance.
Based on this policy, the Medium Term Management Plan 2021 sets out the target of making “stable dividend payments
while securing a consolidated dividend ratio of 25% to 35%.”
With respect to the year-end dividend for the fiscal year ended March 2019, the Group plans to pay an extraordinary
dividend of 5 yen per share in addition to a dividend of 40 yen per share as previously announced on February 6, 2019,
for a total of 45 yen per share. As a result, the annual dividend, including an interim dividend of 35 yen per share, will be
80 yen per share, which represents a 10 yen per share increase from the previous fiscal year.
For the fiscal year ending March 31, 2020, a dividend of 60 yen per share, including an interim dividend of 30 yen per
share, is planned.

2. Basic Approach to the Selection of Accounting Standards
The KAGA ELECTRONICS Group prepares consolidated financial statements based on Japanese accounting standards.
Going forward, we will consider adopting IFRS standards with due consideration to financial market trends, share of foreign
investors, and the organizational costs resulting from the adoption of IFRS standards.

5

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)
FY 2018/3(As of March 31, 2018)

FY 2019/3(As of March 31, 2019)ASSETS
Current assets
Cash and deposits

30,80335,003

Notes and accounts receivable - trade45,80996,145

Electronically recorded monetary claims - operating

4,032

5,361

Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Noncurrent
assetsAllowance for
doubtful accounts

295

261

15,06033,734

575

489

3,818

5,802

3,807

5,894

(133)

104,069

Total current assets(296)

182,396

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

8,102

9,436

(3,232)(4,526)

4,870

Buildings and structures, net

4,910

6,315

8,266

(3,731)(4,760)Tools, furniture and fixtures

3,556

5,119

Accumulated depreciation(2,846)(4,015)

4,036

4,861

10

628

12,21015,011

Goodwill

317

259

Software

515

1,819

Other

46

126

Total intangible assets

878

2,206

Investment securities

8,688

10,085

Deferred tax assets

530

1,292

Guarantee deposits

657

870

Insurance funds
Other

943

951

1,363

1,462

Machinery, equipment and vehicles
Accumulated depreciation

2,583

Machinery, equipment and vehicles, net

709

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

3,506

1,104

Intangible assets

Investments and other assets(587)

Allowance for doubtful accounts

11,595

Total investments and other assets
Total non-current assets
Total assets

6

(515)

14,147

24,68531,364

128,755

213,761(Million yen)
FY 2018/3(As of March 31, 2018)

FY 2019/3(As of March 31, 2019)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

36,392

77,884

Short-term loans payable

5,385

30,656

Accrued expenses

3,711

5,307

Income taxes payable

901

1,147

Provision for directors’ bonuses

247

105

Other

3,068

6,239

Total current liabilities

49,707

121,340

Long-term loans payable

3,161

1,882

Deferred tax liabilities

1,276

1,300

Provision for directors’ retirement benefits

1,264

94

Net defined benefit liability

1,737

1,997

Asset retirement obligations

175

280

Other

800

2,606

8,416

8,161

58,123

129,501

Capital stock

12,133

12,133

Capital surplus

13,853

13,865Retained earnings

45,18351,297

Treasury shares(2,042)(2,024)

Valuation difference on available-for-sale securities

1,504

1,018

Deferred gains or losses on hedges

(16)

2

Non-current liabilities

Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

69,127

Total shareholders’ equity

75,272

Accumulated other comprehensive income

Foreign currency translation adjustment
Remeasurements of defined benefit plans

148

527

(208)

(215)

75

7,654

70,631

84,259128,755

213,761

1,428

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

1,332

(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2018/3(April 1, 2017 –March 31, 2018)

FY 2019/3(April 1, 2018 –March 31, 2019)

Net sales

235,921292,779

Cost of sales

203,423

257,233

Gross profit

32,49835,546

Selling, general, and administrative expenses

24,37927,976

Operating income

8,119

7,570

Interest income

124

174

Dividends income

119

175

Commission fee

279

209

Foreign exchange gain

44－

House rent income

99

106

Other

228

349

Total non-operating income

896

1,015

Interest expenses

132

200

Loss from equity method investments

111

194

Foreign exchange losses

－

177

Other

32

153

Non-operating income

Non-operating expenses

275

726

8,740

7,859

Gain on sales of non-current assets

28

17Gain on sales of investment securities

591

215

Gain on bargain purchase

－

2,164

Gain on sale of shares of subsidiaries

467－

Gain on transfer of business12

7

Total extraordinary income

1,101

2,403

7

16

Impairment loss

228

31

Loss on sales of investment securities

24

2

Loss on valuation of investment securities

269

550

Loss on valuation of golf club membership6

6

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets

58

Total extraordinary loss

541

614

Profit before income taxes

9,300

9,649

Income taxes - current

1,840

1,477

Income taxes - deferred

952

120

Total income taxes

2,792

1,597

Profit

6,507

8,051

Profit attributable to owners of parent

6,490

8,014

16

37

Other

Profit attributable to non-controlling interests

8

(Million yen)
FY 2018/3(April 1, 2017 –March 31, 2018)

FY 2019/3(April 1, 2018 –March 31, 2019)

Valuation difference on available-for-sale securities

345

Deferred gains or losses on hedges

(16)

(489)

Other comprehensive income(273)

Foreign currency translation adjustment(17)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

18

307
9

－

(49)

37

(203)

Comprehensive income

6,544

Comprehensive income attributable to owners of parent

6,528

7,801

Comprehensive income attributable to non-controllinginterests

16

47

9

7,848

(3) Consolidated statement of changes in equity
For the fiscal year ended March 2018 (April 1, 2017 – March 31, 2018)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,91240,476

Total
shareholders’equityTreasuryshares(2,040)64,481

Changes of items during period
Dividends of surplus(1,783)(1,783)

Profit attributable to owners of parent

6,490

6,490

Purchase of treasury shares
Disposal of treasury shares

0Change in ownership interest of parent
due to transactions with non-controllinginterests

(2)

(2)

0

0

(58)

(58)

Net changes of items other thanshareholders’ equity
Total changes of items during period

-

(58)

4,707

(2)

4,645

Balance at the end of current period

12,133

13,85345,183(2,042)

69,127

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof current period

1,159

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

421

(190)

0

Total
Nonaccumulated controlling
otherinterests
comprehensive
income1,391

59

Total net
assets65,932

Changes of items during
periodDividends of surplus(1,783)

Profit attributable toowners of parent

6,490

Purchase of treasury
shares(2)

Disposal of treasury
shares0Change in ownershipinterest of parent due
to transactions with
non-controllinginterests(58)

Net changes of items
other thanshareholders’ equity

344

(16)

(17)

37

16

54

Total changes of items
during period

(273)

344

(16)

(273)

37

16

4,699

Balance at the end ofcurrent period

1,504

(16)

148

(17)

1,428

75

70,631

10(208)

For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning of current period

12,133Retainedearnings

13,85345,183

Changes of items during period

TreasurysharesTotalshareholders’equity(2,042)

69,127(2,057)

Dividends of surplus
Profit attributable to owners of parent(2,057)

8,014

8,014

(1)

24

(1)

(0)

(0)

156

(4)

152

Purchase of treasury shares
Disposal of treasury shares

12

Change in treasury shares arising fromchange in equity in entities accounted forusing equity method
Change of scope of equity method
Net changes of items other thanshareholders’ equity

36

Total changes of items during period

－

12

6,113

18

6,144

Balance at the end of current period

12,133

13,86551,297(2,024)75,272

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginningof current period

1,504

Changes of items during
periodDeferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

148

(208)

(16)

Total
Nonaccumulated controlling
otherinterests
comprehensive
income1,42875Profit attributable toowners of parent

8,014

Purchase of treasury
shares(1)

Disposal of treasury
shares36

Change in treasury
shares arising fromchange in equity inentities accounted forusing equity method(0)

Change of scope ofequity method

Total changes of items
during period
Balance at the end ofcurrent period

70,631(2,057)

Dividends of surplus

Net changes of items
other thanshareholders’ equity

Total net
assets

152
(486)

18

378

(6)

(96)

7,579

7,482

(486)

18

378

13,627

527

(96)

7,579

2

(6)

7,654

84,259

1,018

11

(215)

1,332

(4) Consolidated statement of cash flows(Million yen)
FY 2018/3(April 1, 2017 – March 31, 2018)

FY 2019/3(April 1, 2018 – March 31, 2019)

Profit before income taxes

9,300

9,649

Depreciation

1,481

1,740

Impairment loss

228

31

Amortization of goodwill

88

85

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income

40

(58)

Cash flows from operating activities

41
43
(85)

Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities

111

194

(467)
(23)

－
(10)

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 - other

－
2,076

(2,164)(226)(2,145)

338

552

Increase (decrease) in other current liabilities

(362)

(163)

Other, net

371

242

349

2

Net cash provided by (used in) operating activities

10,07712(2)

11,734(1,770)

Income taxes paid

292

(191)

(130)

Interest expenses paid

(207)

(88)
(47)

Interest and dividend income received(1,152)

1,087

(135)

Subtotal

550(6,746)

Decrease (increase) in advance payments
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in other current assets
Other, net

16

(212)

(1,101)

Increase (decrease) in accrued expenses

200

(567)
269

Gain on bargain purchase

53

(351)

7

Loss (gain) on sales of investment securities

(160)

(244)
132

Loss (gain) on sales of shares of subsidiaries

(4)

276
135

(189)

(2,078)0(1,547)

(Million yen)
FY 2018/3(April 1, 2017 – March 31, 2018)

FY 2019/3(April 1, 2018 – March 31, 2019)(2,773)(2,661)

87

111

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

1,158(1,678)Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(360)

Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities

Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation
Payments of short-term loans receivableCollection of short-term loans receivable
Proceeds from cancellation of insurance funds

－
504

(286)

(1)

(2)

Other proceeds

2536

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable

Purchase of shares of subsidiaries that does not resultin change in scope of consolidation

(58)

－

(2,811)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

12(1,269)(153)

Other, net(125)(1,641)(1,780)Cash dividends paid

(29)

(6,860)(2)

Purchase of treasury shares

10(4,173)825

Repayments of long-term loans payable

3

136

(74)

Other payments

－

(13)

(58)

Proceeds from collection of guarantee deposits

575

(15)
14

Payments for guarantee deposits(420)(2,977)

1

Purchase of insurance funds(3,027)(2,481)
1,331

Purchase from purchase of shares of subsidiaries
resulting in change in scope of consolidation

1,944

15,137(1)(2,054)(127)

11,684

Net increase (decrease) in cash and cash equivalents

(234)
2,857

3,352

Cash and cash equivalents at beginning of period

26,021

28,879Cash and cash equivalents at end of period

28,87932,231

13

75

(5) Notes to consolidated financial statements(Notes to going concern assumptions)Not applicable(Changes in Presentation Methods)(Changes associated with the application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018)
are applied from the beginning of the fiscal year ended March 31, 2019, in accordance with which changes are made to thepresentation methods, with deferred tax assets presented under investments and other assets, and deferred tax liabilities
presented under non-current liabilities.
As result, in the consolidated balance sheets for the fiscal year ended March 31, 2018, “deferred tax assets” in “current
assets” decreased by 1,028 million yen, and “deferred tax assets” in “investments and other assets” increased by 290
million yen. In addition, “other” in “current liabilities” decreased by 1 million yen, and “deferred tax liabilities” in “noncurrent liabilities” decreased by 736 million yen.
Note that deferred tax assets are offset against deferred tax liabilities where they relate to the same taxable entity, and as
a result, total assets decreased by 738 million yen compared to the figure before the change.
(Segment information, etc.)
a. Segment information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular evaluationby the Company’s management is being performed in order to decide how resources are allocated among the Group. The
Company classifies subsidiaries and associates according to their products and services, and implements comprehensive
strategies in Japan and overseas. Consequently, the Group has four reportable segments that are made of different
categories of products and services: electronic components, information equipment, software and others. The electronic
components segment includes the development, manufacture and sale of semiconductors, general electronic components
and other products, the electronics manufacturing service (EMS), and other activities. The information equipment segment
includes sales of PCs, PC peripherals, home electric appliances, photograph and imaging products, original brand products,
and other products. The software segment includes the production of computer graphics, planning and development of
amusement products, and other activities. The others segment includes the repair and supports for electronics equipment,
and sales of amusement equipment and sports goods, and others.
2. Methods of measurement for the amounts of net sales, income (loss), assets, and other items for each reportable segment
The accounting policies of each reportable segment are consistent with the accounting standards adopted to prepare
consolidated financial statements.
3. Information about net sales, profit (loss), assets, and other items is as follows:
For the fiscal year ended March 2018 (April 1, 2017 – March 31, 2018)(Million yen)

Reporting segments
Adjustment*1

Consolidated*2

Electronic
components

Informationequipment

Software172,248

47,582

2,568

13,522

235,921-235,921

1,610

1,242

855

1,442

5,152

(5,152)-

173,859

48,8253,424

14,965241,074(5,152)

235,921

Segment income(loss)

5,312

2,202

172

308

7,996

123

8,119

Segment assets

112,426

14,532

1,845

9,191

137,996(9,240)128,755

916

63

91

92

1,165

(8)

1,157

1,699

77

42

316

2,135

(96)

2,039

Net sales:
Sales to externalcustomers
Inter-segment sales ortransfers
Total

Others

Total

OthersDepreciation
Increase inproperty, plant andequipment andintangible assets

14

For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)

Reporting segments
Adjustment*1

Consolidated*2292,779－

292,779

4,450

9,007

－

(9,007)292,779

Electronic
components

Informationequipment

Software225,598

44,344

2,876

19,959

2,855

1,004

697

Net sales:
Sales to externalcustomers
Inter-segment sales ortransfers
Total

OthersTotal

228,454

45,3493,574

24,409301,787(9,007)

Segment income(loss)

4,761

1,906

247

490

7,406

163)

7,570

Segment assets

197,476

14,951

1,859

11,482

225,769(12,008)

213,761

58

69

103

1,413

40

66

1,087

3,533

OthersDepreciation
1,182
Increase inproperty, plant and2,338
equipment andintangible assets
Note:
1. The adjustment is as follows:(1) Segment income

(7)

(84)

1,406
3,448

(Million yen)
Fiscal year ended March 2018

Fiscal year ended March 2019

Elimination of inter-segment trade

123

163

Amortization of goodwill

－

－

Total

123

163

(2) Segment assets(Million yen)
Fiscal year ended March 2018

Fiscal year ended March 2019(11,460)(14,111)

Corporate *

2,219

2,102

Total

(9,240)(12,008)

Elimination of inter-segment trade* Total corporate assets principally consist of surplus funds of the Company under management (cash and securities, etc.).
(3) Depreciation(Million yen)
Fiscal year ended March 2018

Fiscal year ended March 2019

(8)

(7)

Elimination of inter-segment trade
Total(4) Increase in property, plant and equipment and intangible assets

(8)

(7)
(Million yen)

Fiscal year ended March 2018

Fiscal year ended March 2019

(96)

(84)

Elimination of inter-segment trade

(96)

Total

(84)

2. Segment income is adjusted with operating income on the consolidated statements of income and comprehensive income.

15

b. Associated information
For the fiscal year ended March 2018 (April 1, 2017 – March 31, 2018)
Geographic information
Net sales
Japan

North America

Europe(Million yen)
Total

Asia

149,024
8,628
4,034
74,234
235,921
Notes: 1. Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India, and Indonesia
For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)
Geographic information
Net sales
Japan

North America

Europe(Million yen)
Total

Asia

180,306
13,078
9,903
89,492292,779
Notes: 1．Net sales are classified according to the customers’ geographic locations.
2. Countries and regions are classified according to geographical proximity.
From the fiscal year ended March 31, 2019, the geographical area which was previously presented as “EastAsia” was renamed “Asia.” Note that the change in the name of the geographical area has no effect on
segment information. In line with this change, for the fiscal year ended March 31, 2018, the previous name of“East Asia” was likewise changed to “Asia.”
3. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States, and Mexico(2) Europe: United Kingdom, Germany, Czech Republic, Russia, and Turkey(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India, Indonesia, and Vietnum(Per-share information)(Yen)
FY 2018/3(April 1, 2017 – March 31, 2018)

FY 2019/3(April 1, 2018 – March 31, 2019)

Net assets per share

2,571.79

2,790.97

Earnings per share

236.58292.07

Notes: 1. Earnings per share (diluted) have not been disclosed because there were no potentially dilutive shares.
2. The basis of calculation of earnings per share is as follows.
FY 2018/3(April 1, 2017 – March 31, 2018)

FY 2019/3(April 1, 2018 – March 31, 2019)

6,490

8,014

－

－

Earnings per share
Profit attributable to owners of parent(million yen)
Profit not attributable to commonshareholders (million yen)
Profit attributable to owners of parent
allocated to common stock (million yen)

6,490

Average number of common stock
outstanding during the fiscal year

27,435,139(Subsequent events)
Not applicable

16

8,014
27,439,524

4. Non-consolidated Financial Statements(1) Balance sheet(Million yen)
FY 2019/3(As of March 31, 2019)

FY 2018/3(As of March 31, 2018)ASSETS
Current assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
Securities
MerchandiseWork in process
Supplies
Advance payments - trade
Prepaid expenses
Short-term loans receivable from subsidiaries andassociates
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
VehiclesTools, furniture and fixtures
Land
Lease assets
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets

17

14,420593
2,946
16,117
295
4,007
45
3
709
195

7,047
572
2,739
16,664
261
4,199
25
4
292
199

9,865

17,822

2,679
290(5,341)
46,829

4,425
415
(893)
53,777

2,460
14
0
159
3,388
89
6,113

2,347
13
0
145
3,388
102
5,998

5
333
29
368

4
586
5
597

7,537
8,838
26

8,353
25,825
25

14

14

345

225

398

312

254
－
1,459
(424)
(75)
18,37324,856
71,685

322
163
1,495
(355)
(666)
35,71542,31096,087

(Million yen)
FY 2018/3(As of March 31, 2018)
LIABILITIESCurrent liabilities
Notes payable - trade
Accounts payable - trade
Short-term loans payable
Short-term loans payable to subsidiaries andassociates
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation differences on available-for-salesecurities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

18

FY 2019/3(As of March 31, 2019)

1,339
11,7192,602

956
10,221
28,118

5,896

5,773

1,247
34
616
1,315
131
99
73
240
113
25,430

1,247
37
621
1,340
72
21
63
60
71
48,605

3,129
63
141
319
1,180
100
195
5,130
30,561

1,882
68
－
256
－
102
1,824
4,134
52,73912,133

12,133

13,912
0
13,912

13,912
12
13,924

618

618

7,000
8,214
15,833(2,042)
39,836

7,000
10,777
18,396(2,019)42,434

1,290

912

(2)
1,288
41,124
71,6850913
43,34896,087

(2) Statement of income(Million yen)
FY 2018/3(April 1, 2017 – March 31, 2018)

FY 2019/3(April 1, 2018 – March 31, 2019)

Net sales

73,09873,906

Cost of sales

64,74065,266Gross profit

8,358

8,639

Selling, general and administrative expenses

8,987

8,963

Operating income (loss)

(629)

(323)

Interest income

48

111

Dividend income

3,584

4,987

Non-operating income

Foreign exchange gains

18

－

Other

352

379

4,004

5,478

Total non-operating income
Non-operating expenses
Interest expenses

121

191

Loss on investments in partnership2

35

Depreciation of assets for rent

13

12Foreign exchange losses

－

73

Other

23

20

Total non-operating expenses

160

333

3,213

4,820

Gain on sales of investment securities

591

73

Gain on sales of shares of subsidiaries

424－

Reversal of allowance for doubtful accounts

53－

Reversal of allowance for investment loss

265

－

Other

14

0

1,350

73

Loss on sales of investment securities

24

2

Loss on valuation of investment securities

269

550

Impairment loss－

20

Loss on liquidation of subsidiaries

23－

Provision of allowance for doubtful accounts－

53

Provision of allowance for investment loss

－

590

Other

0

0

317

1,218

Profit before income taxes

4,246

3,675

Income taxes - current

(121)

(753)

Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses

Total extraordinary losses

585

Income taxes - deferred

463

Total income taxes

3,782

Profit

19

(191)
(945)
4,620

(3) Statement of changes in equity
For the fiscal year ended March 2018 (April 1, 2017 – March 31, 2018)(Million yen)
Shareholders’ equity
Retained earnings

Capital surplus
Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

13,912

0

13,912

618

Other retained
earnings

Total
retainedearnings

Generalreserve

Retainedearnings
brought
forward

7,000

6,214

13,833

Dividends of surplus(1,783)(1,783)

Profit

3,782

3,782

Balance at the beginning of current
period12,133

Changes of items during period

Purchase of treasury shares
Disposal of treasury shares

00

Net changes of items other thanshareholders' equity
Total changes of items during period

-

-

0

0

-

-

1,999

1,999

Balance at the end of current period

12,133

13,912

0

13,912

618

7,000

8,214

15,833

Shareholders’ equity

Balance at the beginning of current
periodValuation and translation adjustments

TreasurysharesTotal shareholders’equityValuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments(2,040)37,839

1,046

(0)

1,046

Total net
assets

38,885

Changes of items during period
Dividends of surplus(1,783)(1,783)

Profit

3,782

3,782

Purchase of treasury shares

(2)

(2)

(2)

Disposal of treasury shares

0

0

0

Net changes of items other thanshareholders’ equity

244

(2)

241

241

Total changes of items during period

(2)

1,997

244

(2)

241

2,238

Balance at the end of current period(2,042)

39,836

1,290

(2)

1,288

41,12420

For the fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Million yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at the beginning of current
period12,133Retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

13,912

0

13,912

618

Other retained
earnings

Total
retainedearnings

Generalreserve

Retainedearnings
brought
forward

7,000

8,214

15,833(2,057)4,620(2,057)

Changes of items during period
Dividends of surplus
Profit

4,620

Purchase of treasury shares
Disposal of treasury shares

12

12

Net changes of items other thanshareholders' equity
Total changes of items during period

－

－

12

12

－

－

2,563

2,563

Balance at the end of current period

12,133

13,912

12

13,924618

7,000

10,777

18,396

Shareholders’ equity

TreasurysharesBalance at the beginning of current
periodChanges of items during period(2,042)

Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares

(1)

24

Valuation and translation adjustments

Total shareholders’equityValuationdifference on
availablefor-salesecurities

39,836

1,290

Deferred
gains orlosses onhedges(2)

Totalvaluationandtranslation
adjustments
1,288

Total net
assets41,124(2,057)4,620(2,057)

(1)

(1)

4,620

36

Net changes of items other thanshareholders’ equity

36

Total changes of items during period

23

2,598

(378)

Balance at the end of current period(2,019)42,434

912

21

(378)

3

(374)

(374)

0

913

43,348

3

(374)

2,223