May 12, 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

KAGA ELECTRONICS Revises Earnings Forecast and Dividend Forecast
KAGA ELECTRONICS CO., LTD. (TSE: 8154; hereinafter, “the Company”) has revised its consolidated
earnings forecast and dividend forecast for the fiscal year ended March 31, 2020, released on February 6,2020, in light of recent earnings trends, as shown below:Details●Revision of earnings forecast
Revisions to consolidated earnings forecasts for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)
Profitattributable toowners ofparent

Net income
per share

Net sales

OperatingincomeOrdinary
incomeMillion yen

Million yen

Million yen

Million yen(yen)Previous forecast (A)442,000

9,000

9,000

5,000

182.17

Revised forecast (B)443,000

10,00010,0005,800

211.29Difference (B-A)

1,000

1,000

1,000

800－Percent change (%)

0.2

11.1

11.1

16.0－

292,779

7,570

7,859

8,014

292.07(Reference) Results for thefiscal year ended March31,2019[Reasons for revisions]
Although some overseas EMS production bases in countries including China and Malaysia temporarilysuspended operations in accordance with the guidance of national and regional governments in response to
the spread of the novel coronavirus infection, orders were achieved ahead of schedule from customers who
were concerned about parts procurement shortages. As a result, the Company expects net sales to exceed theprevious forecast.
The Company also expects income to surpass the previous forecasts because gross margin increased as aresult of higher net sales combined with a general ban on domestic and overseas business travel in response
to measures issued by Japan and other governments to prevent the spread of the new coronavirus, including
voluntary restraint and lockdowns, and the success of cuts in non-urgent spending.

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●Revision of dividend forecast
Annual dividends
Year-end

Total

Previous forecast(Announced
February 6, 2020)

30 yen60 yen

Revised forecast

40 yen(Ordinary dividend 30 yen)(Special dividend 10 yen)70 yen(Ordinary dividend 60 yen)(Special dividend 10 yen)

45 yen(Ordinary dividend 40 yen)(Special dividend 5 yen)

80 yen(Ordinary dividend 70 yen)(Commemorative dividend5 yen)(Special dividend 5 yen)

Second quarter end

Dividends for thecurrent fiscal year
Dividends for theprevious fiscal year
(Fiscal year ended
March 31, 2019）30 yen35 yen(Ordinary dividend 30 yen)(Commemorative dividend5 yen)[Reasons for revisions]
The Company has positioned the return of profits to shareholders as one of the most importantmanagement policies, and in addition to endeavoring to strengthen its financial position and managementfoundation with a long term perspective, has the basic policy of maintaining stable and ongoing dividends toall shareholders in conjunction with the consolidated results.
Based on this policy, in the Medium Term Management Plan 2021 (2019-2022) we have stated the targetof stably providing dividends while securing a consolidated dividend ratio of 25% to 35%.
In light of this revision to the full-year earnings forecast, we have increased the dividend for the fiscal year
ended March 2020 to 40 yen per share, adding a special dividend of 10 yen per share to the initial forecast of
30 yen per share. As a result, the total annual dividend, including the interim dividend of 30 yen per share,will be 70 yen per share.
A proposal concerning this matter will be submitted to the 52nd Ordinary General Meeting ofShareholders scheduled for June 26, 2020.
●Financial results briefing for the fiscal year ended March 31, 2020
As announced on April 23, 2020, the Company's consolidated financial results for the current fiscal year
were originally scheduled to be announced on May 12, 2020, but due to measures to deter the spread of thenovel coronavirus infection within the Group, the Company has decided to postpone the announcement andplans to make the announcement on May 21.
Note: The above forecasts are based on the information currently available to the Company on the date of release and certain
assumptions deemed reasonable. Actual results may vary from the forecast for a variety of reasons.

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