May 9, 2018

Summary of Consolidated Financial Results
for the Year Ended March 2018 [Japan GAAP]
Name of Company:
KAGA ELECTRONICS CO., LTD.
Stock Code:8154
URL: http://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 28, 2018 (tentative)
Date of commencement of dividend payment:
June 29, 2018 (tentative)
Date of filing of securities report:
June 28, 2018 (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, 2017 - March 31, 2018)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Net sales

Operating income

Million yen%

Million yen

Profit attributableto owners of parent

Ordinary income%

Million yen%

Million yen%

Fiscal year ended March 2018

235,921

3.8

8,119

18.0

8,740

19.0

6,490

(7.0)

Fiscal year ended March 2017

227,209

(7.4)

6,879

(11.7)

7,343

(7.1)

6,975

28.3

Note: Comprehensive income: FY ended March 31, 2018: 6,544 million yen [(10.6)%] FY ended March 31, 2017: 7,320 million yen [111.1%]

Earnings per share

Earnings per share(diluted)

Return on
equityRatio of ordinary
income to assets

Yen

Yen

%

%

%

Fiscal year ended March 2018236.58

-

9.5

6.9

3.4

Fiscal year ended March 2017249.43

-

10.9

5.9

3.0

Ref.: Share of profit/loss of entities accounted for using equity method: FY ended March 2018: (111) million yen

Ratio of operating
income to net sales

FY ended March 2017: - million yen(2) Financial Position (Consolidated)
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

129,493

70,63154.5

2,571.79

As of March 31, 2017

125,751

65,93252.4

2,401.00

Ref.: Shareholders’ equity

FY ended March 2018: 70,556 million yen

As of March 31, 2018

FY ended March 2017: 65,872 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 2018

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

28,879Fiscal year ended March 2017

10,746(258)(6,118)26,021

2. Dividends
Dividend per share

1Q
Yen

Fiscal year ended March 2017
Fiscal year ended March 2018
Fiscal year ending March 2019
(Forecast)

2Q

3Q

Yen

Yen

Year- end

Full year

Yen

Yen

-

25.00
30.00

-

35.00
40.00

60.00
70.00

-

30.00

-

40.00

70.00

Annualaggregate
amountPayout ratio(Consolidated)

Dividends/
net assets(Consolidated)

Million yen

%

%

1,666
1,920

24.1
29.6

2.6
2.8

Notes: Breakdown of interim dividend for FY3/17: Ordinary dividend: 20.00 yen; Extraordinary dividend: 5.00 yen
Breakdown of year-end dividend for FY3/17: Ordinary dividend: 20.00 yen; Extraordinary dividend: 15.00 yen
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-3. Forecast for the fiscal year ending March 2019 (Consolidated, April 1, 2018 - March 31, 2019)
The consolidated earnings forecast for the fiscal year ending March 2019 is not provided. For details, please see “1. Results ofOperations (4) Future outlook” on page 3 of Supplementary Information.
* Notes(1) Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in the scope of consolidation): None
(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
As of March 31, 2018:(including treasury shares)

28,702,118

As of March 31, 2017:

28,702,118(b) Treasury shares

As of March 31, 2018:

1,267,393

As of March 31, 2017:

1,266,468(c) Average number of shares
outstanding during the year

As of March 31, 2018:27,435,139

As of March 31, 2017:27,967,362(Reference) Non-consolidated Financial Results
Financial results for the fiscal year ended March 2018 (April 1, 2017 - March 31, 2018)(Percentage figures represent year on year changes)(1) Result of operations (Non-consolidated)
Net sales
Fiscal year ended March 2018
Fiscal year ended March 2017

Operating income

Ordinary income

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

73,09875,666(3.4)(11.7)(629)
31(97.1)

3,213
2,550

26.0
(27.4)

3,782
2,955

28.0
3.4

Earnings per share
Fiscal year ended March 2018
Fiscal year ended March 2017

Earnings per share(diluted)

Yen

Yen

137.89105.67-(2) Financial Position (Non-consolidated)
Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

72,08069,784

41,12438,88557.1
55.7

1,499.00
1,417.34

Ref.: Shareholders’ equity
Fiscal year ended March 2018: 41,124 million yen

Fiscal year ended March 2017: 38,885 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 3 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, May 24, 2018. 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 .............................................................................................................................................2(3) Cash flows...............................................................................................................................................................................3(4) Future outlook.........................................................................................................................................................................3(5) Basic policy for earnings allocations and dividends in the current and next fiscal years.......................................................3
2. Basic Approach to the Selection of Accounting Standards ...........................................................................................................3
3. Consolidated Financial Statements and Major Notes......................................................................................................................4(1) Consolidated balance sheet .....................................................................................................................................................4(2) Consolidated statements of income and comprehensive income............................................................................................6(3) Consolidated statement of changes in equity..........................................................................................................................8(4) Consolidated statement of cash flows...................................................................................................................................10(5) Notes to consolidated financial statements ...........................................................................................................................12(Notes to going concern assumptions) ..................................................................................................................................12(Additional information).......................................................................................................................................................12(Segment information, etc.) ..................................................................................................................................................12(Per-share information) .......................................................................................................................................................14(Subsequent events) ............................................................................................................................................................14
4. Non-consolidated Financial Statements ........................................................................................................................................15(1) Balance sheet ........................................................................................................................................................................15(2) Statement of income .............................................................................................................................................................17(3) Statement of changes in equity .............................................................................................................................................18

1

1. Results of Operations(1) Overview of consolidated business performance
In the fiscal year ended March 31, 2018, the Japanese economy witnessed a gradual recovery as the recovery of overseas
economy improved corporate earnings as well as steady growth of capital expenditures, although the recovery of consumer
spending has slowed down.
In the electronics industry, the principal sector of operations of the KAGA ELECTRONICS Group (“the Group”), while
the markets for PCs and amusement machines remained stagnant, steady growths were observed in the smartphone market
supported by growth of demand in emerging countries and responses to advanced functionality, as well as the market for
automotive devices where use of electronics in automobiles is expanding. Furthermore, innovative technology-related
markets including the IoT (Note 1), big data, and artificial intelligence also showed favorable growth.
Under such an environment, based on our corporate philosophy of “Everything we do is for our customers,” the Groupfocused on increasing sales to existing major customers in Japan and expanding the EMS (Note 2) business, notably inoverseas markets.
As a result, consolidated net sales in the fiscal year ended March 2018 came to 235,921 million yen, an increase of 8,712
million yen, or 3.8%, from the previous fiscal year, driven by electronic components and information equipment businesses.
Operating income came to 8,119 million yen, an increase of 1,240 million yen, or 18.0%, as a result of improvement ingross profit margin reflecting largely an increase in productivity as well as efforts to control SG&A expenses. Ordinary
income came to 8,740 million yen, an increase of 1,397 million yen, or 19.0%, achieving yet another record high. Profit
attributable to owners of parent decreased to 6,490 million yen, down 485 million yen, or 7.0%, attributable largely to anincrease of 1,950 million yen in income taxes.
(Note 1) Internet of Things: New services and business models, or technologies that connect all things through the Internet.
(Note 2) Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis

Business segment performance was as follows.
(a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components andother products, the electronics manufacturing service (EMS), and other activities)
EMS business for electronic equipment and sales of semiconductors showed favorable growth. As a result, net sales
increased 0.6% to 172,248 million yen, and segment income rose 8.0% to 5,312 million yen.
(b) Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph and imaging products,
original brand products, and other products)
Sales of housing-related and commercial facilities-related products saw favorable growth. As a result, net sales
increased 11.8% to 47,582 million yen, and segment income rose 47.7% to 2,202 million yen.
(c) Software (Production of computer graphics, planning and development of amusement products, and other activities)
Orders for production of computer graphics animation and development of game software were sluggish. As a result,net sales decreased 18.7% to 2,568 million yen, and segment income decreased 67.4% to 172 million yen.
(d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement equipment, and sales ofsports goods, and other activities)
Sales in Japan of arcade amusement machines and golf products showed solid growth. As a result, net sales increased
31.6% to 13,522 million yen, and segment income was 308 million yen (segment loss of 212 million yen recorded in theprevious fiscal year).
(2) Overview of financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2018 increased 3,741 million yen from the previous fiscal year-end to 129,493 million yen,mainly due to increase in cash and deposits.
Liabilities decreased 958 million yen from the previous fiscal year-end to 58,861 million yen, mainly due to repayments oflong-term loans payable.
Net assets increased 4,699 million yen from the previous fiscal year-end to 70,631 million yen, as a result of recording
profit attributable to owners of parent.

2(3) Cash flows
Cash and cash equivalents as of March 31, 2018 increased 2,857 million yen from March 31, 2017 to 28,879 million yen.
(Operating activities)
Net cash provided by operating activities was 10,077 million yen (10,746 million yen provided in the previous fiscal year)
mainly due to recording profit before income taxes.
(Investing activities)
Net cash used in investing activities was 4,173 million yen (258 million yen used in the previous fiscal year) mainly due topurchase of investment securities.
(Financing activities)
Net cash used by financing activities was 2,811 million yen (6,118 million yen used in the previous fiscal year) mainly due
to repayments of long-term loans payable, and cash dividends paid.

(4) Future outlook
In the market environment surrounding the Group, growth of demand for electronic components will likely accelerate
amidst expansion in both the automotive devices market where use of electronics in automobiles is increasing and in the
medical/healthcare-related market, as well as development of the new markets such as big data and artificial intelligence on
the back of rapid IoT spread. Meanwhile the supply side’s efforts to increase production tend to fall behind, leading to atight supply-demand situation which is becoming tangible in certain components and materials.
Under such circumstances, the Group will strive to further strengthen its sales activities in growing sectors such as
automotive devices, and will continue its efforts to expand value-added businesses led by the EMS business.
With respect to the fiscal year ending March 2019, consolidated earnings forecast is not provided due to the difficulty incalculating such a forecast at this time, given the substantial uncertainties that exist in the rapidly changing environment as
explained above. Still, in this final year of the Medium-term Management Plan 2018 announced on November 4, 2015, theGroup will make greater efforts to “Enhance revenue base,” “Create new business,” and “Strengthen managementfoundation”, and achieve the numerical targets (Note) set out therein.
For the consolidated performance forecasts, these will be disclosed promptly as soon as a reasonable projection becomes
possible.
(Note) Medium-term Management Plan 2018 Numerical Targets
Relevant Fiscal YearNet Sales

Ordinary Income

ROE

Fiscal year ending March 2019¥290 billion¥10 billion

8.0% or higher(5) Basic policy for earnings allocations and dividends in the current and next fiscal years
Our basic policy is to maintain a stable and continuous payment of dividends that reflect a consolidated performance aswell as to strengthen financial position and management foundation from a long-term perspective.
Based on this policy, the Medium-term Management Plan 2018 has set out the aim of making stable dividend payments
while maintaining a consolidated payout ratio of 25% to 35%.
In light of the foregoing, and reflecting a steady business performance of the fiscal year ended March 2018, the Groupplans to pay a year-end dividend of 40 yen per share, which consists of an ordinary dividend of 35 yen per share and an
extraordinary dividend of 5 yen per share, as previously announced on February 6, 2018.
As a result, annual dividend, including interim dividend of 30 yen per share, will be 70 yen per share, which represents a
10 yen per share increase from the previous fiscal year.
For the fiscal year ending March 31, 2019, a dividend of 70 yen per share, including an interim dividend of 30 yen, isplanned.

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.

33. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)
FY 2017(As of March 31, 2017)

FY 2018(As of March 31, 2018)ASSETS
Current assets
Cash and deposits

26,42330,803

Notes and accounts receivable - trade

46,77445,809

Electronically recorded monetary claims - operating

5,234

4,032

188

295

14,675

15,060365

575

Raw materials and supplies

4,284

3,818

Deferred tax assets
Other
Noncurrent
assetsAllowance for
doubtful accounts

1,340

1,028

4,562

3,807

(166)

(133)

103,684

105,097

7,902

8,102

Accumulated depreciation(3,043)(3,232)

Buildings and structures, net

4,859

4,870

Machinery, equipment and vehicles

5,593

6,315

Accumulated depreciation(3,579)(3,731)

Machinery, equipment and vehicles, net

2,014

2,583

Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Tools, furniture and fixtures

3,774

3,556

Accumulated depreciation(3,032)(2,846)

Tools, furniture and fixtures, net
Land

742

709

4,126

4,036

3

10

11,745

12,210Goodwill

406

317

Software363

515

Construction in progress
Total property, plant and equipment
Intangible assets

Other

71

46

Total intangible assets

841

878

Investment securities

6,761

8,688

Deferred tax assets

240

240

Guarantee deposits

735

657

Insurance funds
Other

936

943

1,529

1,363

Allowance for doubtful accounts

(723)

(587)

Investments and other assets

Total investments and other assets

9,479

11,305

Total non-current assets

22,067

24,395

125,751

129,493

Total assets

4

(Million yen)
FY 2017(As of March 31, 2017)

FY 2018(As of March 31, 2018)

LIABILITIESCurrent liabilities
Notes and accounts payable - trade37,55336,392

Short-term loans payable

4,883

5,385

Accrued expenses

3,387

3,711

Income taxes payable

888

901

Provision for directors’ bonuses

204

247

Other

3,325

3,070

Total current liabilities

50,242

49,708Long-term loans payable

4,603

3,161

Deferred tax liabilities

1,213

2,013

Provision for directors’ retirement benefits

1,222

1,264

Net defined benefit liability

1,669

1,737

Asset retirement obligations

144

175

Other

723

800

9,576

9,152

59,81958,861

Capital stock

12,133

12,133

Capital surplus

13,912

13,853Retained earnings

40,47645,183

Treasury shares(2,040)(2,042)

Total shareholders’ equity

64,481

69,127

1,159

1,504

0

(16)

421

148

Non-current liabilities

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(190)

(208)

Total accumulated other comprehensive income

1,391

1,428

59

75

65,932

70,631

125,751

129,493

Non-controlling interests
Total net assets
Total liabilities and net assets5(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2017(April 1, 2016 –March 31, 2017)

FY 2018(April 1, 2017 –March 31, 2018)

Net sales

227,209

235,921

Cost of sales

195,983

203,423

Gross profit

31,22532,498Selling, general, and administrative expenses

24,346

24,379Operating income

6,879

8,119

Interest income

59

124

Dividends income

103

119

Commission fee

222

279

Foreign exchange gain-

44

House rent income

77

99

Other

282

228

Total non-operating income

745

896

128

132

Loss from equity method investments-

111

Foreign exchange losses

88

-

Other

63

32

Non-operating income

Non-operating expenses
Interest expenses

280

275

7,343

8,740

Gain on sales of non-current assets

23

28

Gain on sales of investment securities

110

591

Gain on bargain purchase

28-

Gain on sale of shares of subsidiaries-

467

Gain on transfer of business89

12

Settlement received

372-

Total extraordinary income

624

1,101

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets

15

7

Impairment loss

16

228

Loss on sales of investment securities

31

24

Loss on valuation of investment securities

47

269

Loss on valuation of golf club membership

11

6

Other

13

5

Total extraordinary loss

136

541

Profit before income taxes

7,832

9,300

Income taxes - current

1,610

1,840

Income taxes - deferred

(768)

952

Total income taxes

842

2,792

Profit

6,989

6,507

Profit attributable to owners of parent

6,975

6,490

14

16

Profit attributable to non-controlling interests

6

(Million yen)
FY 2017(April 1, 2016 –March 31, 2017)

FY 2018(April 1, 2017 –March 31, 2018)

Other comprehensive income
Valuation difference on available-for-sale securities

479

345

Deferred gains or losses on hedges

(4)

(16)

Foreign currency translation adjustment

(292)

(273)

Remeasurements of defined benefit plans, net of tax

147

(17)

Total other comprehensive income

330

37

Comprehensive income

7,320

6,544

Comprehensive income attributable to owners of parent

7,305

6,528

Comprehensive income attributable to non-controllinginterests

15

16

7

(3) Consolidated statement of changes in equity
For the fiscal year ended March 2017 (April 1, 2016 – March 31, 2017)(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock

Balance at the beginning of current period

12,133Retainedearnings

13,91235,195

Total
shareholders’equityTreasuryshares(539)

60,702

Changes of items during period
Dividends of surplus(1,695)(1,695)

Profit attributable to owners of parent

6,975

6,975

Purchase of treasury shares
Disposal of treasury shares(1,501)(1,501)000

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

-

0

5,280

(1,501)

3,779

Balance at the end of current period

12,133

13,91240,476(2,040)64,481

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference
on availablefor-salesecurities

Deferred
gains orlosses onhedges681

4Foreign
Remeacurrency surements oftranslation
definedadjustment benefit plans
713

(338)

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total
net
assets1,061

44

61,808Changes of items during
periodDividends of surplus(1,695)

Profit attributable toowners of parent

6,975

Purchase of treasury
shares(1,501)

Disposal of treasury
shares0

Net changes of items
other thanshareholders’ equity

478

(4)

(292)

147

329

15

344

Total changes of items
during period

478

(4)

(292)

147

329

15

4,123

Balance at the end ofcurrent period

1,159

0

421

(190)

1,391

59

65,9328

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)

273)

(17)

37

16

54

Total changes of items
during period

344

(16)

(273)

17)

37

16

4,699

Balance at the end ofcurrent period

1,504

(16)

148

208)

1,428

75

70,6319

(4) Consolidated statement of cash flows(Million yen)
FY 2017(April 1, 2016 – March 31, 2017)

FY 2018(April 1, 2017 – March 31, 2018)

Profit before income taxes

7,832

9,300

Depreciation

1,452

1,481

Impairment loss

16

228

Amortization of goodwill

88

88

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

124

40

14

41

18

43

(11)

(85)

(162)

(244)

Interest expenses
Share of (profit) loss of entities accounted for using
equity method

128

132

-

111

Loss (gain) on sales of shares of subsidiaries

(18)

(467)
(23)

Cash flows from operating activities

Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets

15

7Loss (gain) on sales of investment securities

(79)

(567)

Loss (gain) on valuation of investment securities
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

47

269

2,602

2,076

(240)

(226)

933

(1,101)

(390)

1,087

Increase (decrease) in accrued expenses

45

338

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

143

(135)

92

(163)

89

(88)

Increase (decrease) in other current liabilities

(94)

(362)

Other, net

(138)

(47)

Subtotal

12,50911,734

Interest and dividend income received

164

242

Interest expenses paid

(128)

(130)

(1,792)(1,770)

Income taxes paid
Other, net
Net cash provided by (used in) operating activities

10

(5)

2

10,746

10,077

(Million yen)
FY 2017(April 1, 2016 – March 31, 2017)

FY 2018(April 1, 2017 – March 31, 2018)

Payments into time deposits(630)(2,773)

Proceeds from withdrawal of time deposits

854

1,158

Purchase of property, plant and equipment(967)(1,678)

119

87

Cash flows from investing activities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

(109)

(360)

Purchase of investment securities(387)(2,481)

Proceeds from sales of investment securities

855

1,331

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

20-

Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation-

504

Payments of short-term loans receivable

(2)

(1)

Collection of short-term loans receivable

5

1

(17)

(15)

2

14

Payments for guarantee deposits

(15)

(58)

Proceeds from collection of guarantee deposits

22

136

Other payments

(90)

(74)

Other proceeds

81

36

(258)

(4,173)

(397)

825

Purchase of insurance funds
Proceeds from cancellation of insurance funds

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

66-

Repayments of long-term loans payable(2,428)(1,641)

Purchase of treasury shares(1,501)(2)

Cash dividends paid

(1,693)(1,780)-(58)

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

(164)

(153)

(6,118)(2,811)

Effect of exchange rate change on cash and cash
equivalents

(227)

(234)

Net increase (decrease) in cash and cash equivalents

4,141

2,857

Cash and cash equivalents at beginning of period

21,87926,021

Cash and cash equivalents at end of period

26,021

28,879Other, net
Net cash provided by (used in) financing activities11(5) Notes to consolidated financial statements(Notes to going concern assumptions)Not applicable(Additional information)(Adoption of consolidated taxation system)
From the fiscal year ended March 31, 2018, the Company and its certain domestic subsidiaries have adopted theconsolidated taxation system.

(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 evaluation by
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 to 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 2017 (April 1, 2016 – March 31, 2017)(Million yen)

Reportable segments

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

Adjustment*1

Consolidated*2

Electronic
components

Informationequipment

Software

171,227

42,547

3,159

10,274

227,209-227,209

695

518

1,555

2,611

5,380

(5,380)-

OthersTotal

171,923

43,065

4,714

12,885232,589(5,380)227,209

Segment income(loss)

4,917

1,491

528

(212)

6,724

154

6,879

Segment assets

109,053

14,320

2,083

5,185

130,642(4,890)125,751

Depreciation

898

70

98

94

1,162

(11)

1,151

Increase inproperty, plant andequipment andintangible assets

855

86

86

85

1,114

(37)

1,076

Others12

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

112,878

14,692

1,847

9,191

138,609(9,116)

129,493

63

91

92

1,165

(8)

1,157

77

42

316

2,135

(96)

2,039

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

Others

Total

OthersDepreciation
916
Increase inproperty, plant and1,699
equipment andintangible assets
Note:
1. The adjustment is as follows:(1) Segment income(Million yen)
Fiscal year ended March 2017

Fiscal year ended March 2018

154

123

-

-

154

123

Elimination of inter-segment trade
Amortization of goodwill
Total(2) Segment assets(Million yen)
Fiscal year ended March 2017

Fiscal year ended March 2018

Elimination of inter-segment trade(6,945)(11,335)

Corporate *

2,054

2,219

Total

(4,890)(9,116)* 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 2017

Fiscal year ended March 2018

Elimination of inter-segment trade

(11)

(8)

Total

(11)

(8)

(4) Increase in property, plant and equipment and intangible assets(Million yen)
Fiscal year ended March 2017

Fiscal year ended March 2018

Elimination of inter-segment trade

(37)

(96)

Total

(37)

(96)

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

13

b. Associated information
For the fiscal year ended March 2017 (April 1, 2016 – March 31, 2017)
Geographic information
Net sales
Japan

North America

EuropeEast Asia

151,912
5,995
2,518
66,783
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(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, Thailand, India, and Indonesia(Million yen)Total
227,209

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

North America

EuropeEast Asia

149,024
8,628
4,034
74,234
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(Million yen)Total
235,921(Per-share information)(Yen)
FY 2017(April 1, 2016 – March 31, 2017)

FY 2018(April 1, 2017 – March 31, 2018)

Net assets per share

2,401.00

2,571.79

Earnings per share

249.43236.58Notes: 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 2017(April 1, 2016 – March 31, 2017)

FY 2018(April 1, 2017 – March 31, 2018)

6,975

6,490

-

-

6,975

6,490

27,967,362

27,435,139

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)
Average number of common stock
outstanding during the fiscal year
(Subsequent events)
Not applicable144. Non-consolidated Financial Statements(1) Balance sheet(Million yen)
FY 2018(As of March 31, 2018)

FY 2017(As of March 31, 2017)
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
Deferred tax assets
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

15

11,706977
3,792
17,027
188
3,699
40
4
566
132
463

14,420593
2,946
16,117
295
4,007
45
3
709
195
394

11,784

9,865

2,192
203
(5,445)47,334

2,679
290(5,341)47,224

2,631
16
0
197
3,411
77
6,334

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

4
139
57
201

5
333
29
368

6,058
7,923
26

7,537
8,838
26

13

14

637

345

1,930

398

214
126
1,629
(2,308)(340)
15,91322,44969,784

254
1,459
(424)
(75)
18,37324,85672,080(Million yen)
FY 2017(As of March 31, 2017)
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

16

FY 2018(As of March 31, 2018)

1,834
13,7301,626

1,339
11,719
2,602

3,209

5,896

1,448
59
499
1,326
155
264
69
200
229
24,654

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

4,376
65
316
1,128
98
257
6,243
30,898

3,129
63
536
319
1,180
100
195
5,525
30,956

12,133

12,133

13,912
0
13,912

13,912
0
13,912

618

618

7,000
6,214
13,833(2,040)37,8397,000
8,214
15,833(2,042)
39,836

1,046

1,290

(0)
1,046
38,88569,784(2)
1,288
41,12472,080(2) Statement of income(Million yen)
FY 2017(April 1, 2016 – March 31, 2017)

FY 2018(April 1, 2017 – March 31, 2018)

Net sales

75,66673,098

Cost of sales

66,73964,740Gross profit

8,927

8,358

Selling, general and administrative expenses

8,896

8,987

31

(629)

Interest income

75

48

Dividend income

2,083

3,584

99

18

Operating income (loss)
Non-operating income

Foreign exchange gains

394

352

2,653

4,004

Interest expenses

89

121

Depreciation of assets for rent

15

13

Other

28

25

Total non-operating expenses

134

160

2,550

3,213

Gain on sales of investment securities

110

591

Gain on sales of shares of subsidiaries-

424

Reversal of allowance for doubtful accounts-

53

Reversal of allowance for investment loss

495

265

Other

30

14

Total extraordinary income

636

1,350

Other
Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales of investment securities

31

24

Loss on valuation of investment securities

47

269

Loss on liquidation of subsidiaries-

23

Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit

17

174

-

12
265
2,921
102
(136)
(34)
2,955

0
317
4,246
(121)
585
463
3,782

(3) Statement of changes in equity
For the fiscal year ended March 2017 (April 1, 2016 – March 31, 2017)(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

4,954

12,573

Dividends of surplus(1,695)(1,695)

Profit

2,955

2,955

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

-

-

1,259

1,259

Balance at the end of current period

12,133

13,912

0

13,912

618

7,000

6,214

13,833

Shareholders’ equity

Balance at the beginning of current
periodValuation and translation adjustments

TreasurysharesTotal shareholders’equityValuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments(539)

38,080

587

13

600

Total net
assets38,680Changes of items during period
Dividends of surplus(1,695)(1,695)

Profit

2,955

2,955

Purchase of treasury shares(1,501)(1,501)(1,501)

Disposal of treasury shares

0

0

0

Net changes of items other thanshareholders’ equity

459

(13)

446

446

Total changes of items during period(1,501)

(241)

459

(13)

446

204

Balance at the end of current period(2,040)37,839

1,046

(0)

1,046

38,88518

For the fiscal year ended March 2018 (April 1, 2017 – March 31, 2018)(Million yen)
Shareholders’ equity
Capital surplus
Capitalstock

Retained earnings

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

41,12419