May 7, 2013

Summary of Consolidated Financial Results
For the Year Ended March 2013 [Japan GAAP]
Name of Company:
Stock Code:
Stock Exchange Listing:
Representative
Contact Person

KAGA ELECTRONICS CO., LTD.
8154
URL: http://www.taxan.co.jp/
Tokyo Stock Exchange, First Section
Title: President & COO
Name: Tomohisa Tsukamoto
Title: Executive Officer, Finance &Name: Eiji Kawamura
Administration Headquarters
Phone:+81-(0)3-4455-3111
Date of regular general meeting of shareholders:June 27, 2013 (tentative)
Date of commencement of dividend payment:
June 28, 2013 (tentative)
Date of filing of securities report:
June 27, 2013 (tentative)
Supplementary explanatory documents:
Yes
Earnings presentation:
Yes (For institutional investors)(Yen in millions, rounded down)
1. Financial results for the current fiscal year (April 1, 2012 – March 31, 2013)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen%

Million yen%

Million yen%

Million yen%

Fiscal year ended March 2013

216,405

(5.9)

1,260

(39.0)

1,931(24.8)

444(51.4)

Fiscal year ended March 2012
Note: Comprehensive income:

229,856(3.3)
2,067(39.6)FY ended March 31, 2013:
2,381 million yen
FY ended March 31, 2012:
397 million yen

2,569(28.6)
499.6%(51.7%)

914(48.3)Net income per
share
fully diluted

Net income per
share
Yen

Fiscal year ended March 2013
Fiscal year ended March 2012
Note: Equity in income/losses of affiliates

Return on
equityRatio of ordinary
income to assets

%

%

Yen

16.09
33.13
FY ended March 2013: -million yen

Ratio ofoperating income
to net sales
%

0.9
1.7
2.0
2.2
FY ended March 2012: - million yen

0.6
0.9

(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen

As of March 31, 2013
As of March 31, 2012
Note: Shareholders’ equity(3)

Equity ratio

Million yen

Net assets per share%

Yen

111,888
48,80643.5
1,721.86
114,71447,93640.5
1,681.73
FY ended March 2013: 48,656 million yen
FY ended March 2012: 46,410 million yen

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

7,041
958

(4,910)(2,645)

(403)
(242)

11,878
9,695

Fiscal year ended March 2013
Fiscal year ended March 2012
2. Dividends
End of
1Q

Dividend per share
End of End of End of
Full year
2Q
3Q
FY

Yen

Yen

Fiscal year ended March 2012

-

15.00

Fiscal year ended March 2013-

Fiscal year ending March 2014
(estimated)-

Yen

Annualaggregate
amountPayout ratio(Consolidated)

Dividends/
net assets(Consolidated)

Yen

Yen

Million yen

%

%

-

15.00

30.00

827

90.5

1.8

15.00

-

15.00

30.00

837

186.5

1.8

15.00

-

15.00

30.00

70.6

3. Forecast for the fiscal year ending March 2014 (Consolidated, April 1, 2013 - March 31, 2014)(Percentage figures represent year on year changes)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareFirst half
Full year*

Million yen%

Million yen%

Million yen%

Million yen%

Yen

104,000
230,000

0.1
6.3

(600)
1,800

42.8

(300)
2,300

19.1

(500)
1,200

169.8

(17.69)
42.47

Notes
(1) Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation):
None(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: Yes(d) Retrospective restatement: None
Note: These changes meet the conditions of Article 14-7 a case where it is difficult to make a distinction between a change in an
accounting method and a change in an accounting estimate of “Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements.” For more information, please refer 4. Consolidated Financial Statements (5) Note to theconsolidated financial statements (Changes in accounting policies and estimates, and retrospective restatement) on page 15.

(3) Number of shares outstanding (common stock)(a) Shares outstanding
As of March 31, 2013:(including treasury stock)

28,702,118(b) Treasury stock

As of March 31, 2013:

443,831(c) Average number of shares outstanding
during the year

As of March 31, 2013:

27,647,603

As of March 31, 2012: 28,702,118
As of March 31, 2012:

1,105,201

As of March 31, 2012: 27,597,270(Reference) Non-consolidated Financial Results
1. Financial results for the current fiscal year (April 1, 2012 – March 31, 2013)(1) Result of operations (Non-consolidated)(Percentage figures represent year on year changes)
Net sales
Fiscal year ended March 2013
Fiscal year ended March 2012

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

82,754
95,163(13.0)
(0.0)

(68)
705

(37.3)

2,506
4,736

(47.1)
66.0

27
2,646

(99.0)
27.9

Net income
per share

Net income per share
fully diluted
Yen

Fiscal year ended March 2013
Fiscal year ended March 2012

Yen

1.00
95.90

-

(2) Financial Position (Non-consolidated)
Total assets
Million yen

As of March 31, 2013
71,109As of March 31, 2012
75,486
Note: Shareholders’ equity
Fiscal year ended March 2013: 35,494 million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen

35,49435,37849.9
46.9

1,256.07
1,281.99

Fiscal year ended March 2012:

35,378 million yen*Status of implementation of audit procedures
The financial statements for the fiscal year were under audit procedures at the time this Summary of Financial Results was
released.
*Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was
prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements
for a number of reasons.

Index for Supplementary Information
1.

Results of Operations ....................................................................................................................................................................1
Overview on consolidated business performance ....................................................................................................................1
Overview of financial condition ...............................................................................................................................................2
Fundamental policy for earnings allocations and dividends in the current and next fiscal yeas ...............................................22.
Corporate Group ...........................................................................................................................................................................3
3.
Management Policies ....................................................................................................................................................................5(1) Fundamental management policy.............................................................................................................................................5(2) Targeted performance indicators ..............................................................................................................................................5(3) Medium- and long-term management strategies ......................................................................................................................5(4) Key issues ................................................................................................................................................................................5(5) Other important items concerning management .......................................................................................................................64.
Consolidated Financial Statements ...............................................................................................................................................7(1) Balance sheet ...........................................................................................................................................................................7(2) Statements of income and comprehensive income ...................................................................................................................9(3) Statement of changes in consolidated shareholders’ equity ...................................................................................................11(4) Statements of cash flows ........................................................................................................................................................13(5) Notes to consolidated financial statements ............................................................................................................................15(Notes to ongoing concern assumptions) ....................................................................................................................................15(Changes in accounting policies and estimates, and retrospective restatement) ..........................................................................15(Segment information etc.)..........................................................................................................................................................16(Per-share information) ...............................................................................................................................................................19(Subsequent events) ....................................................................................................................................................................195.
Non-consolidated Financial Statements ......................................................................................................................................20(1) Balance sheets ........................................................................................................................................................................20(2) Statements of income .............................................................................................................................................................23(3) Statement of changes in shareholders’ equity......................................................................................................................24
6.
Other Information .......................................................................................................................................................................26
(1)
(2)
(3)

1.

Results of Operations(1) Overview on consolidated business performance
In the fiscal year that ended on March 31, 2013, the outlook for the Japanese economy remained uncertain because of sourcesof concern such as the prolonged European debt crisis and slowing economic growth in China and other emerging countries.
Despite this uncertainty, there are growing expectations for an economic recovery. Earthquake recovery projects are
generating demand and the yen is weakening and stock prices are climbing owing to monetary easing and other initiatives ofJapan’s new government since the end of 2012.
In the electronics industry, sales were relatively strong for automotive devices and in the information and communications
market for products such as smartphones and tablets. However, shifting demand caused weak sales and lower prices in thedigital consumer electronics market for products like flat-panel televisions and digital cameras and in the informationequipment market, chiefly for personal computers. The operating environment continued to be difficult as a result.
In this environment, the KAGA ELECTRONICS Group took many actions based on the management philosophy of“Everything we do, we do for our customers.” In the electronic components and semiconductors business, group companies
concentrated on increasing sales of these products for automotive devices and communication devices and on increasing salesof environmental products. There were also aggressive sales activities to increase sales overseas in the EMS* business.
Another priority was rebuilding subsidiaries that are performing poorly. For example, consolidated subsidiary ADM INC.
became a wholly owned subsidiary and there was a voluntary retirement program for this company’s employees.
Sales were higher in the electronic components and semiconductors business to manufacturers of automotive devices andoverseas in the EMS business. But there were declines in sales in Japan of electronic components and semiconductors used inamusement equipment and consumer information and in the software business. Consolidated net sales decreased 5.9% to216,405 million yen, operating income decreased 39.0% to 1,260 million yen and ordinary income decreased 24.8% to 1,931
million yen. After an impairment charge for fixed assets, the reversal of deferred tax assets and other items, net income wasdown 51.4% to 444 million yen.
* Electronics manufacturing service is a term used for the 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 and otherproducts, electronics manufacturing service (EMS), and other activities)
Sales of electronic components and semiconductors used in automotive devices increased and there were higher EMS
sales overseas for air conditioning equipment. There were declines in sales of electronic components and semiconductors
used in amusement equipment in Japan and in other sectors. The result was a 1.4% decrease in segment sales to 164,164
million yen and a 0.9% increase in operating income to 2,040 million yen.
(b) Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, andother products)
There were measures to increase sales of existing products and add new products. However, sales were brought down by
lower personal computer sales associated with the widespread use of smartphones and tablets and lower sales of memorycard products caused by changes in sales and distribution channels for products sold at large consumer electronics storesand specialty shops. Segment sales decreased 22.4% to 38,305 million yen and the operating loss increased to 836 million
yen from 533 million yen one year earlier.
(c) Software (Production of computer graphics, planning and development of amusement products, and other activities)
Activities in this business focused on the production of computer graphics for animation applications and image
processing for amusement equipment. But lower sales of game software and delays in launches of new software productscaused sales to decline 25.4% to 2,874 million yen. There was an operating loss of 61 million yen compared with
operating income of 402 million yen one year earlier.
(d) Others (Electronic device repairs and support, sales of sporting goods, and other activities)
There were recoveries in the recycling business, golfing products sales business and other activities in this segment. As aresult, sales increased 8.7% to 11,060 million yen. However, operating income was down 50.8% to 157 million yen.

1

In the fiscal year ending on March 31, 2014, in the electronics industry, more growth is anticipated in the market for
smartphones, tablets and other communication products. But the operating environment for digital consumer electronics andinformation products is expected to remain challenging.
To improve its performance, the KAGA ELECTRONICS Group will further strengthen sales activities for electronic
components and semiconductors, primarily for automotive devices, communication products and other categories with goodprospects for growth. Group companies will also concentrate on increasing sales in the EMS business and environmental
business, which are operations where the group can add value.
Based on this outlook, the current forecast for consolidated performance in the fiscal year ending on March 31, 2014 is asfollows(Consolidated performance forecast)
Net sales
230,000 million yen
up 6.3%Operating income
1,800 million yen
up 42.8%
Ordinary income
2,300 million yen
up 19.1%
Net income
1,200 million yen
up 169.8%(2) Overview of financial condition(a) Assets, liabilities and net assets
Assets decreased 2,825 million yen from one year earlier to 111,888 million yen at the end of the fiscal year mainly
because of a decrease in inventories.
Liabilities decreased 3,695 million yen to 63,082 million yen mainly because of a decrease in notes and accounts
payable-trade.
Net assets increased 869 million yen to 48,806 million yen mainly because of the sale of treasury stock.
(b) Cash flows
There was a net increase of 2,183 million yen in cash and cash equivalents to 11,878 million yen at the end of the fiscal
year.
(Operating activities)
Net cash provided by operating activities was 7,041 million yen compared with 958 million yen one year earlier. The
decrease in notes and accounts receivable-trade was the major reason for this increase.
(Investing activities)
Net cash used in investing activities was 4,910 million yen compared with 2,645 million yen one year earlier. The
primary use of cash was payments for the purchase of property, plant and equipment.
(Financing activities)
Net cash used in financing activities was 403 million yen compared with 242 million yen one year earlier. This wasprimarily the difference between net proceeds from loans payable and cash dividends paid.
(Reference) Cash flow index trends
Fiscal year
ended
March 2009

Fiscal year
ended
March 2010

Fiscal year
ended
March 2011

Fiscal year
ended
March 2012

Fiscal year
ended
March 2013

Shareholders’ equity ratio
40.7%
41.1%
40.9%
40.5%
43.5%
Shareholders’ equity ratio at market value
18.8%
24.4%
23.6%
20.9%
19.4%
Debt repayment multiple
2.38 years
2.01 years
2.12 years
14.97 years
2.15 years
Interest coverage ratio
28.1
43.6
52.0
6.6
51.6
Shareholders’ equity ratio is shareholders’ equity divided by total assets.
Shareholders’ equity ratio at market value is market capitalization divided by total assets.
Debt repayment multiple is interest-bearing debt divided by operating cash flows.
Interest coverage ratio is operating cash flows divided by interest expenses.
Notes:
1. All figures are calculated based on consolidated financial data.
2. Market capitalization uses the number of shares issued less treasury stock.
3. Cash flows are operating cash flows.
4. Interest-bearing debt is the sum of all liabilities on the balance sheet on which the Group is obligated to pay interest.
(3) Fundamental policy for earnings allocations and dividends in the current and next fiscal yeas
The Company’s fundamental policy is to pay a steady and consistent dividend to shareholders that reflect consolidated
performance as well as the need to establish a more powerful financial position and base of operations from a long-term
stable perspective.
Based on performance in the fiscal year 2013, the Company plans to pay a year-end dividend of 15 yen per share. With theinterim dividend of 15 yen per share, this will result in an annual dividend of 30 yen per share.
For the fiscal year ending on March 31, 2014, to show appreciation to shareholders for their support, a dividend per share of
30 yen, including an interim dividend of 15 yen, is planned.

2

2.

Corporate GroupThe KAGA ELECTRONICS group of companies (the Group) is made up of KAGA ELECTRONICS CO., LTD. (the Company),
48 consolidated subsidiaries (22 in Japan, 26 overseas) and 2 affiliates that are not accounted for using the equity method (1 inJapan, 1 overseas). These companies are engaged primarily in the following activities: the electronic components business,
including the development, manufacture and sale of semiconductors and general electronic components and EMS (electronic
manufacturing services); and the information equipment business, including the sale of personal computers and peripherals,
photography and imaging products, and original-brand products; and the software business includes the production of computer
graphics for animation, the planning and development of products for amusement devices, and other activities. Other businesses
include repair and support services for electronic devices, the sale of sporting goods, and other activities.
<Japan>[Electronic components business]
Sales
KAGA DEVICES CO., LTD.
AD DEVICE CORPORATIONADM INC.
Manufacturing and sales
KAGA TECH CO., LTD.
KAGA COMPONENTS CO., LTD.

[Software business]
DIGITAL MEDIA LAB., INC.
ACCESS GAMES INC.
WORKBIT CORPORATIONSI ELECTRONICS LTD.
CyberFront Corporation
Dreams.Co.,LTD.
Two other companies

KAGA ELECTRONICS CO., LTD.
(procurement and sales)[Information equipment business]
Sales
KAGA SOLUTION NETWORK CO., LTD.
KAGA HIGHTECH CO., LTD.
KAGA EDUCATIONAL MARKETING CO.,LTD.
KAGA TECHNO SERVICE CO., LTD.

<Overseas>[Electronic components business]
Sales
KAGA (H.K.) ELECTRONICS LTD.
KAGA (SINGAPORE) ELECTRONICS PTE.LTD.
KAGA (KOREA) ELECTRONICS CO., LTD.
KAGA (TAIWAN) ELECTRONICS CO., LTD.
KAGA DEVICES (H.K.) LTD.
KAGA ELECTRONICS (USA) INC.
KAGA (SHENZHEN) TRADING CO., LTD.
HANZAWA (HK) LTD.
AD DEVICE (H.K.) LIMITEDKAGA (EUROPE) ELECTRONICS LTD.
NUMATA (H.K.) CO.,LTD.
NUMATA (SHENZHEN) TRADING CO., LTD.
KAGA DEVICES INDIA PRIVATE LIMITEDAD DEVICE (Thailand) CO., Ltd.
Manufacturing and sales
KAGA COMPONENTS(HONG KONG)LIMITEDKAGA (SHENZHEN) ELECTRONICS CO.,LTD.
KAGA COMPONENTS (MALAYSIA) SDN.
BHD.
KAGA (SHANGHAI) ELECTRONICS CO., LTD.
KAGA ELECTRONICS (THAILAND) CO., LTD.
DONGGUAN POWERTEK ELECTRONICS CO., LTD.
KAGA (DALIAN) ELECTRONICS CO., LTD.
KD TEC s.r.o.
KAGA TAXAN ELECTRONICS (SUZHOU) CO.,LTD.
SUZHOU KAGA TAXAN TRADING CO., LTD.

[Other business]
KAGA CREATE CO., LTD.
MICRO SOLUTION CO., LTD.
KAGA SPORTS CO., LTD.
KAGA AMUSEMENT CO., LTD[Other business]
KAGA AMUSEMENT MALAYSIA SDN.BHD.

# Explay Japan Co., Ltd.

# One other company

KAGA AGENCY CO., LTD.
(insurance agency)

Manages and operates facility for employees
Uses
TAXAN GUAM LTD.
Uses
Japanese and overseas customers(Notes)#: Affiliates that are not accounted for using the equity method.
All other companies are consolidated subsidiaries.
3(1) The following consolidated subsidiaries became our group company during the fiscal year that ended in March 2013.
Relationship with the Company

Name

Address

CapitalActivities

Voting rights
held
%

Joint
directors

FinancialsupportBusinessrelationship

Leasing offacilities andequipment

Persons Million yen[Electronic components business]
SUZHOU KAGATAXAN TRADING
CO., LTD.(Note 2)

Jiangsu
Province,
China

1 million
RMB

Manufacture andsale of electronic
components andequipments etc.

100.0
(Note 1)(90.0)

1---

AD DEVICE(Thailand) Co., Ltd.
(Note 5)

Bangkok,Thailand10 million
THB

Sale of electronic
components andequipments etc.

100.0
(Note 1)(100.0)

-

-

-

-

Notes:
1. Percentages of voting rights in parentheses show indirectly owned voting rights.
2. On August 3, 2012, KAGA TAXAN ELECTRONICS (SUZHOU) CO., LTD., a subsidiary of consolidated subsidiary KAGA(SHANGHAI) ELECTRONICS CO., LTD., became a wholly owned subsidiary of KAGA (SHANGHAI) to improve theefficiency of business operations and SUZHOU KAGA TAXAN TRADING CO., LTD. was established in Jiangsu Province,
China.
3. On August 13, 2012, HANZAWA (SZ) LTD., which was a consolidated subsidiary of KAGA ELECTRONICS consolidated
subsidiary HANZAWA (HK) LTD. until March 31, 2012, was liquidated.
4. On August 31, 2012, all shares of Cyberfront Korea Corporation, which was a consolidated subsidiary of CyberFront
Corporation until March 31, 2012, were sold. As a result, Cyberfront Korea is no longer an affiliate.
5. On February 6, 2013, to strengthen the relationships between consolidated subsidiary AD DEVICE CORPORATION and its
customers in Thailand, AD DEVICE (Thailand) Co., Ltd. was established in Bangkok as a wholly owned subsidiary of AD
DEVICE.
6. On March 26, 2013, KAGA INSTRUMENTS (SHANTOU) CO., LTD., which was a consolidated subsidiary of KAGAELECTRONICS consolidated subsidiary KAGA COMPONENTS CO., LTD. until March 31, 2012, was liquidated.

4

3.

Management Policies(1) Fundamental management policy
Based on the management philosophy of “Everything we do, we do for our customers,” the KAGA ELECTRONICS Group is
guided by the fundamental policy of “remaining a company that contributes to the happiness of all stakeholders, including
shareholders, customers and employees, and fulfills its responsibilities to society.” The Group is dedicated to growing
consistently by responding with speed and agility to globalization of the economy and the rapidly changing electronics
industry. To accomplish this, the Group will expand its network in Japan and overseas and deepen ties among Group
companies to enhance collective strengths. The Group also has a strong commitment to corporate social responsibility,
positioning compliance and protecting the global environment as important elements of its operations.
Based on the above management philosophy and fundamental management policy, the companies of the KAGAELECTRONICS Group, which are active primarily in the electronics industry, seek to improve their results of operations
while cooperating with each other by doing business in a speedy manner that places the highest priority on rapid decisionmaking.
The key word is “F.Y.T.”
F = Flexibility (adapting adeptly to external changes)
Y = Young (staying young in thought and action)
T = Try (the spirit of always taking on challenges)(2) Targeted performance indicators
As the electronics industry, where the Group is active, is expected to continue to grow, priority will continue to be placed on
raising the rate of sales growth and improving the return on equity.
(3) Medium- and long-term management strategies
The rapid pace of change in the electronics industry is expected to continue. New products are appearing and existingproducts going out of date faster. Companies are moving production bases out of Japan faster, too. Amid these changes, more
growth is foreseen for the electronics industry.
The Group has grown with KAGA ELECTRONICS, an independent electronics trading company, as its nucleus by working
with a large number of suppliers and customers and handling a broad spectrum of products. The Group is distinguished by its
ability to handle all aspects of the electronics business, from upstream to downstream, including product planning,development and processing (EMS). Backed by these distinctive strengths, the Group will work even more closely together
to capture synergies with the goal of increasing sales and earnings while growing on a global scale.
The key word is “3G.”
General (covering everything)
Global (worldwide coverage)
Group (leveraging the collective power of the Group)(4) Key issues
The KAGA ELECTRONICS Group is determined to continue growing while adhering to its fundamental management policy.
Based on the “F.Y.T.” and “3G” management policies explained earlier as well as on the reinforcement of compliance, theGroup’s management will be strengthened with the aim of increasing enterprise value while preserving strong relationships
with all stakeholders.
Additionally, the Group conducts reorganizations whenever needed in order to respond rapidly to changes in market
conditions and customer needs. Another goal is enhancing the ability to gather information quickly. At the same time, theGroup aims to capture more synergies by building stronger ties among Group companies and fostering more collaborationand mutual assistance within the Group, thereby expanding operations and improving efficiency.
Based on the following environmental policy, all members of the Group are working together to build a framework that cantackle environmental issues from many perspectives. (ISO14001 certification was received on November 15, 2002.)(Environmental Policy)
Always looking ahead to the future of electronics, the KAGA ELECTRONICS Group is dedicated to meeting the needs ofcustomers while protecting the Earth in order to preserve the improve the natural environment.
 At present, the Group is concentrating on the following issues:i)Updating and establishing group oversight systems to improve operating efficiencyii) Strengthening relationships, collaboration and mutual assistance among Group companies to realize greater synergiesiii) Reinforcing operations overseas and expanding the global networkiv) Upgrading technological skills and improving the ability to gather information with speedv)
Revitalizing underperforming subsidiariesvi) Tackling environmental problemsvii) Thorough operation of internal control systems
 Major initiatives of the fiscal year that ended in March 2013 were as follows.
i)
Measures to capture synergies by deepening ties among group companies and reinforcing cooperation and mutual
assistance among group companies
The KAGA ELECTRONICS Group is engaged in a diverse array of business activities in the electronics industry. In
some cases, different group companies conduct activities that are very similar. To consolidate these activities, they
were reorganized to form business units in April 2010. The objective of this reorganization was to increase synergies
and efficiency and group companies are continuing to take actions aimed at achieving this goal.
5

ii)

Growth of overseas operations and a stronger overseas network
The operating environment for KAGA ELECTRONICS is constantly changing. Management believes that theperformance of the group’s overseas operations will significantly influence results of operations in the future.
Consequently, the group is taking many actions to strengthen its business network in eastern Asia. Activities include
establishing EMS bases in China and Thailand, using mergers and acquisitions, establishing overseas subsidiaries,
and other measures.
iii) Revitalization of poorly performing subsidiaries
The causes of poor performance and potential of the associated businesses will be examined so that revitalization
measures can be taken while drawing on synergies with other group companies.
iv) Rigorous implementation of systems for internal controls
In the fiscal year that ended in March 2012, improper transactions and accounting procedures were discovered atconsolidated subsidiary KAGA HIGHTECH CO., LTD. (“KAGA HIGHTECH”). An Investigation Committee that
included experts from outside the KAGA ELECTRONICS Group submitted recommendations for measures toprevent this problem from happening again. To ensure that this type of incident will not reoccur, a Reoccurrence
Prevention Committee was established in June 2012. This committee oversaw the rigorous use of internal control
systems and a retraining program as well as the establishment of an organizational framework for the continuous
operation and improvement of these internal control systems. The Reoccurrence Prevention Committee wasterminated in March 2013. KAGA HIGHTECH and the Management Planning Department and Auditing Departmentof KAGA ELECTRONICS will continue to take actions in order to ensure the extensive use of internal control
systems and make improvements to these systems.
The KAGA ELECTRONICS Group is committed to continuing to implement compliance programs rigorously
throughout the Group and to strengthening corporate governance.
The Group regards other key issues as well as matters that require constant attention and initiatives and will work on
making the necessary refinements and improvements.
(5) Other important items concerning management
Not applicable64.

Consolidated Financial Statements(1) Consolidated balance sheet(Million yen)
FY 2012(As of March 31, 2012)ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

FY 2013(As of March 31, 2013)

9,775
55,97974
17,104
334
4,115
861
6,272
(144)

12,25854,580111
14,075
637
4,065
482
3,823
(90)

94,37489,945

4,818(1,872)

5,227(2,100)

Buildings and structures, net

2,945

3,126

Machinery, equipment and vehicles
Accumulated depreciation

3,408(1,916)

4,166(2,451)

1,492

1,714

3,752
(2,826)

4,036(3,230)

926

805

Land
Construction in progress

4,077
45

4,305
606

Total property, plant and equipment

9,487

10,559

253
800
1,191

799
435
991

2,245

2,226

Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Insurance funds
Other
Allowance for doubtful accounts

4,032
341
2,068
1,322
2,521
(1,678)

4,491
472
2,100
1,295
1,843
(1,046)

Total investments and other assets

8,607

9,157

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Goodwill
Software
Other
Total intangible assets

Total noncurrent assets
Total assets

7

20,34021,943

114,714

111,888

(Million yen)
FY 2012(As of March 31, 2012)
LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Accrued expenses
Income taxes payable
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Asset retirement obligations
Other

FY 2013(As of March 31, 2013)

41,74811,084
2,444
1,082
52
3,061

37,423
9,567
2,683
1,055
74
2,551

59,47453,355

2,833
228
1,579
1,399
245
1,017

5,121
559
1,643
1,398
227
775

7,303

9,726

Total liabilities

66,77763,082NET ASSETS
Shareholder’s equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

12,133
13,91225,038(1,333)

12,133
13,912
24,384(535)

Total noncurrent liabilities

Total shareholder’s equity

49,75149,895

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

(653)
(24)
(2,663)(180)(6)(1,052)

Total accumulated other comprehensive income(3,341)(1,238)

0
1,526

149

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

8

47,93648,806

114,714

111,888(2) Consolidated statements of income and comprehensive income(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

Net sales
Cost of sales

229,856
201,350

216,405
188,943

Gross profit

28,506

27,462

Selling, general and administrative expenses

26,43826,202

Operating income

2,067

1,260

59
67
205
90
107
318

49
71
212
112
81
107
320

850

955

145

135
79
69

Non-operating income
Interest income
Dividends income
Commission fee
Amortization of negative goodwill
Foreign exchange gains
House rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in partnership
Foreign exchange losses
Other

72
80
49
348

Total non-operating expenses

284

Ordinary income

2,569

1,931

Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on sales of subsidiaries and affiliates' stocks
Insurance income
Other

17
255
1,295
0

39
86
522
6
385
18

1,567

1,058

42
23
69
1,044
154

25
72
152
80
55
166
2

Total extraordinary loss

1,334

555

Income before income taxes

2,802

2,434

Income taxes-current
Income taxes-deferred

1,784
95

1,594
559

Total income taxes
Income before minority interests

1,879

2,154

Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Loss on disaster
Litigation settlement
Business structure improvement expenses
Extra reirement payment
Other

Minority interests in income (loss)

922

279

8

(164)

914

444

Minority interests in income (loss)

8

(164)

Income before minority interests

922

279

Net income9(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

(408)
(25)
(91)

478
18
1,604

(525)

2,101

397

2,381

390

2,547

6

(166)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests10

(3) Statements of changes in net assets(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period

12,133

12,133--

Balance at the end of current period

12,133

12,133

13,912

13,912-(0)Capital surplus
Balance at the beginning of current period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Acquisition of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total Shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period

11

-

(0)

13,912

13,912

24,95225,038

(827)
914
-

(827)
444
(271)

86

(654)

25,03824,384(1,332)(1,333)

(0)
-

(0)
798

(0)

797

(1,333)(535)

49,66549,751

(827)
914
(0)
-

(827)
444
(0)
526

85

143

49,75149,895

(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity

(246)

(653)

(406)

472

Total changes of items during the period

(406)

472

(653)

(180)

0

(24)

(25)

18

Balance at the end of current period
Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

12

(25)

18

(24)

(6)

(2,571)(2,663)

(92)

1,611

(92)

1,611

(2,663)(1,052)(2,817)(3,341)

(523)

2,102

(523)

2,102

(3,341)(1,238)

0

0

-

(0)

-

(0)

0

-

1,664

1,526

(138)

(1,376)(138)(1,376)

1,526

149

48,51247,936

(827)
914
(0)
(661)

(827)
444
(0)
526
726

(575)

869

47,93648,806

(4) Consolidated statements of cash flows(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

2,802
2,181
69
87
-

2,434
2,303
152
72
(522)

24

62

104

(0)

(86)
107
(127)
146
(15)
42
(233)
23

22
(569)
(121)
135
(38)
25
(86)
72

(2,561)

7,424(2,522)
1,235
1,734
(144)
(123)

4,014
(8,912)
945
137
724

(257)

267

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net

65
26
(124)

150
(375)
(424)

Sub-total

2,456

7,895

Interest and dividends income received
Interest expenses paid
Proceeds from insurance income on disaster
Income taxes paid

123
(145)
518
(2,230)
237

121
(136)
1,198
(1,966)
(70)

958

7,041

Operating activities
Income before income taxes and minority interest
Depreciation and amortization
Impairment loss
Amortization of goodwill
Gain on bargain purchase
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Loss (gain) on sales of investment securities
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
Increase (decrease) in accrued expenses
Decrease (increase) in advance payments
Decrease (increase) in consumption taxes refund
receivable

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

13

(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

Merger expenses
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other payments
Other proceeds(2,274)
39
(637)
(88)
558
(21)
(1)
9
(298)
27
(77)
77
(76)
117

(267)
(2,529)
47
(312)
(557)
435
(87)
(350)
(1,205)
5
(73)
100
(49)
39
(138)
33

Net cash provided by (used in) investing activities(2,645)(4,910)Financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net

2,607
1(1,828)
(0)
(828)
(103)
(89)

(2,126)5,000(2,305)
(0)
(828)
(38)
(105)

(242)

(403)

Investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries

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

(171)

456

(2,100)2,183

Cash and cash equivalents, beginning of period

11,796

9,695

Cash and cash equivalents, end of period

9,695

11,87814

(5) Notes to consolidated financial statements(Notes to ongoing concern assumptions)
None(Changes in accounting policies and estimates, and retrospective restatement)
Changes in accounting policies for items that are difficult to categorize as changes in accounting estimates
In accordance with the revisions to the Corporation Tax Act of Japan, starting with the fiscal year that ended in March 2013,
KAGA ELECTRONICS CO., LTD. and its domestic consolidated subsidiaries are using the depreciation method in therevised Corporation Tax Act for property and equipment that was acquired on or after April 1, 2012. The effect of thischange on earnings is negligible.

15

(Segment information etc.)
Segment information
1. Summary of reporting segments
Segments used for financial reporting are the constituent units of KAGA ELECTRONICS for which separate financial
information is available and for which the board of directors performs regular reviews for the purposes of determining the
distribution of resources and evaluating results of operations.
KAGA ELECTRONICS conducts business activities by grouping affiliated companies based on products and services
and based on comprehensive strategies for operations in Japan and overseas for products and services handled.
Consequently, KAGA ELECTRONICS and its affiliated companies have three reporting segments that are made up ofdifferent categories of products and services: electronic components, information equipment and software.
The electronic components segment includes the development, manufacture and sale of semiconductors, generalelectronic components and other products, the electronics manufacturing service (EMS), and other activities. The
information equipment segment includes sales of PCs, PC peripherals, photograph and imaging products, original brandproducts, and other products. The software segment includes the production of computer graphics, planning anddevelopment of amusement products, and other activities. The others segment includes the maintenance and support forelectronics equipments, and sales of sports goods, and others.
2. The accounting method used for reporting business segments
The accounting method used for reporting business segments is the same as the method of presenting the consolidated
financial statements.
(Changes in accounting policies for items that are difficult to categorize as changes in accounting estimates)
As stated in “Changes in accounting policies and estimates, and retrospective restatement”, in accordance with therevisions to the Corporation Tax Act of Japan, starting with the fiscal year that ended in March 2013, the Company andits consolidated subsidiaries are using the depreciation method in the revised Corporation Tax Act for property andequipment that was acquired on or after April 1, 2012. The effect of this change on earnings is negligible.
3. Information concerning sales, earnings or losses, assets, liabilities and other items for individual reporting segments
For the previous fiscal year ended March 2012 (April 1, 2011 – March 31, 2012)(Million yen)Amount in theReporting segments
Adjustments
consolidated
Electronic Information*1
statement ofSoftware
Others
Total
components equipment
income *2
Net salesof which to outside
customersof which intersegment

166,468

49,3603,854

10,173229,856-

229,856

1,625

798

3,453

2,551

8,429

(8,429)-Total

168,094

50,1597,308

12,724

238,286(8,429)229,856

Segment income(loss)

2,021

(533)

402

319

2,210

(142)

2,067

Segment assets

104,294

14,411

4,569

6,751

130,025(15,311)

114,714

924

133

361

121

1,541

(5)

1,536

1,306

86

388

1,155

2,937

(26)

2,911

OthersDepreciation andamortization
Increase inproperty, plant andequipment andintangible assets

16

For the current fiscal year ended March 2013 (April 1, 2012 – March 31, 2013)
Reporting segments
Adjustments(Million yen)Amount in the
consolidated
statement ofincomeElectronic
components

Informationequipment

Software

OthersTotal

164,164

38,305

2,874

11,060216,405-

216,405

1,396

650

3,265

1,964

7,276

(7,276)-

165,560

38,955

6,139

13,025

223,682(7,276)

216,405

Segment income(loss)

2,040

(836)

(61)

157

1,299

(39)

1,260

Segment assets

99,087

11,156

4,241

6,498

120,984(9,095)

111,888

1,570

(3)

1,567

2,870

(28)

2,841

Net salesof which to outside
customersof which intersegment
Total

OthersDepreciation and
808
94
554
113
amortization
Increase inproperty, plant and
2,097
131
269
371
equipment andintangible assets
Notes:
1. The adjustment for segment information is as follows(1) Segment income

Elimination of inter-segment trade
Amortization of goodwill
Total
(2)

Fiscal year ended March 2012
(62)
(79)
(142)

(Million yen)
Fiscal year ended March 2013
27
(67)
(39)

Segment assets(Million yen)
Fiscal year ended March 2012
Fiscal year ended March 2013
Elimination of inter-segment trade(17,995)(11,639)
Corporate *
2,684
2,544
Total
(15,311)(9,095)* Major component of corporate assets is investment of idle assets (cash and investment securities etc.).

(3)

Depreciation and amortization

Elimination of inter-segment trade
Total
(4)

(Million yen)
Fiscal year ended March 2013
(3)
(3)

Increase in property, plant and equipment and intangible assets

Elimination of inter-segment trade
Total
2.

Fiscal year ended March 2012
(5)
(5)

Fiscal year ended March 2012
(26)
(26)

(Million yen)
Fiscal year ended March 2013
(28)
(28)

Segment income is adjusted with operating income on the consolidated statements of income and comprehensive
income17

Associated information
For the previous fiscal year ended March 2012 (April 1, 2011 – March 31, 2012)
1. Information about individual products and services
This information is not presented because .KAGA ELECTRONICS Group prepares reports in accordance with amanagement approach based on individual products and services.
2. Geographic information(1) Net sales(Million yen)Japan
North America
EuropeEast Asia
Total
164,532
2,394
4,241
58,687
229,856
Note: Net sales are classified based on the client’s geographic location.
(2)

Property, plant and equipment
Japan
North America
7,357
33

EuropeEast Asia
74

2,021

(Million yen)
Total
9,487

Notes:
1.
2.

Countries and regions are classified according to geographical proximity.
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, and Thailand
3. Information by major customers
Information by major customers is not presented because outside sales for major customers accounted for less than 10% of
net sales on the consolidated statements of income.
For the current fiscal year ended March 2012 (April 1, 2012 – March 31, 2013)
1. Information about individual products and services
This information is not presented because .KAGA ELECTRONICS Group prepares reports in accordance with amanagement approach based on individual products and services.
2. Geographic information(1) Net sales(Million yen)Japan
North America
EuropeEast Asia
Total
152,303
2,428
3,392
58,281
216,405
Note: Net sales are classified based on the client’s geographic location.
(2)

Property, plant and equipment
Japan
North America
7,766
35

EuropeEast Asia
75

2,681

(Million yen)Total
10,559Notes:
1.
2.

Countries and regions are classified according to geographical proximity.
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, and Thailand
3. Information by major customers
Information by major customers is not presented because outside sales for major customers accounted for less than 10% of
net sales on the consolidated statements of income.

18

(Per-share information)(Yen)
FY 2012(April 1, 2011 – March 31, 2012)
Net assets per share
Net income (loss) per share

FY 2013(April 1, 2012 – March 31, 2013)

1,681.73

1721.86

33.13

16.09

Note: 1. Net income per share (diluted) for FY2012 is not presented, since there is no potential stock which has dilution
effect.
2. The basis for calculating net income (loss) per share and diluted net income (loss) per share are as follows.
FY 2012FY 2013
Item(April 1, 2011 – March 31, 2012) (April 1, 2012 – March 31, 2013)
Net income per share
Net income (loss) (million yen)

914

444

-

-

914

444

27,597,270

27,647,603

Number of classes of subscription
rights to shares for consolidated
companies : 4(Number of rights: 4060)-

Net income (loss) not available to commonshareholders (million yen)
Net income (loss) available to commonshareholders (million yen)
Weighted average number of shares outstanding
Outline of potential stock which does not havedilution effect and has not been included in net
income per share(Subsequent events)
None

19

5.

Non-consolidated Financial Statements(1) Balance sheets(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)ASSETS
Current assets
Cash and deposits
Notes receivable-trade
Accounts receivable-tradeMarketable securities
MerchandiseWork in process
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable
Short-term loans receivable from subsidiaries andaffiliates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Right of trademark
SoftwareTelephone subscription right
Other
Total intangible assets

20

FY 2013(April 1, 2012 – March 31, 2013)

4,954
3,055
26,682
74
5,698
77
29
994
206
460
33

6,488
3,515
23,758
111
3,197
74
29
348
219
545
17

15,851

17,521

3,317
321
41
(4,555)

2,239
157
3
(6,316)57,243

51,912

839
(531)

877
(605)

308

272

71
(36)

71
(41)

35

30

128
(113)

119
(111)

14

7

853
(659)

859
(733)

194

125

2,964
218
(41)

3,191
218
(71)

177

147

45

606

3,740

4,382

12
228
26
164

10
156
26
99

431

293

(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Investments in capital of subsidiaries andaffiliates
Long-term loans receivable
Long-term loans receivable from subsidiaries
and affiliates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Insurance funds
Golf club membership
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Short-term loans payable to subsidiaries andaffiliates
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
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors' retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities

21

FY 2013(April 1, 2012 – March 31, 2013)

3,533
7,357
57

3,952
7,817
51

6

7

76

-

2,222

2,097

555

749

143
839
956
1,281
380
(2,253)(1,085)

167
974
948
1,284
262
(1,758)(2,033)

14,07014,521

18,242

19,19775,486

71,1092,440
19,0797,419

2,486
14,755
5,536

1,672

1,385

1,761
19
222
1,014
191
1,142
56
40
23

2,178
28
217
999
167
510
56
60
15

35,08328,397

2,787
190
462
1,157
190
235

5,109
162
474
1,154
192
126

5,024

7,218

40,10735,615

(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

NET ASSETS
Shareholder’s equity
Capital stock
Capital surplus
Legal capital surplus

12,133

12,133

13,912

13,912

Total capital surplus

13,912

13,912

618

618

7,000
3,620

7,000
2,548

11,239

10,167Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock(1,333)(535)

Total shareholder’s equity

35,95235,678

(560)
(12)

(175)
(8)

(573)

(183)

35,37835,49475,486

71,109Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

22

(2) Statements of income(Million yen)

Net sales
Cost of sales
Beginning goods
Cost of purchased goods

FY 2012FY 2013(April 1, 2011 – March 31, 2012) (April 1, 2012 – March 31, 2013)
95,16382,7544,172
87,7495,776
71,558

Total

91,921

77,334

Goods transfer to other accountEnding goods

317
5,776

179
3,271

Cost of goods sold85,82773,883Gross profit

9,336

8,871

Selling, general and administrative expenses

8,630

8,939

705

(68)

120
3,856
34
238

142
2,134
110
372

4,251

2,760

120

116
55
13

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expense
Loss on investments in partnership
Other

68
31
220

185

4,736

2,506

198
9

82
2

207

85

3
20
173
300
975
63

1
4
1,057
1,309
11

1,537

2,384

3,406

207

592
167

433
(253)

Total income taxes

760

179

Net income (loss)

2,646

27

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision of allowance for investment loss
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred23

(3) Statement of changes in shareholders’ equity(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)

Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period

12,133

12,133--

Balance at the end of current period

12,133

12,133

13,912

13,912

Capital surplus
Legal capital surplus
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period--

13,912

13,912

13,912

13,912--

Balance at the end of current period

13,912

13,912Retained earnings
Legal retained earnings
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period

618

618

-

-

Balance at the end of current period

618

618

Other retained earnings
General reserve
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period

7,000

7,000

-

-

Balance at the end of current period

7,000

7,000

1,802

3,620

(827)
2,646
-

(827)
27
(271)

1,818

(1,071)

3,620

2,548

9,420

11,239

(827)
2,646
-

(827)
27
(271)

1,818

(1,071)

11,239

10,167Retained earnings brought forward
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends paid
Net income
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period

24

(Million yen)
FY 2012(April 1, 2011 – March 31, 2012)

FY 2013(April 1, 2012 – March 31, 2013)(1,332)(1,333)

(0)
-

(0)
798

Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period

(0)

797

(1,333)(535)

34,13435,952

(827)
2,646
(0)
1,818
35,952

(827)
27
(0)
526
(273)
35,678

(208)

(560)

Net changes of items other than shareholders'equity(352)

385

Total changes of items during the period

(352)

385

(560)

(175)

(1)

(12)

(11)

4

Balance at the end of current period
Total Shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period

(11)

4

(12)

(8)

(209)

(573)

Net changes of items other than shareholders'equity(363)

389

Total changes of items during the period

(363)

389

(573)

(183)

33,92435,378

(827)
2,646
(0)
-

(827)
27
(0)
526

(363)

389

Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

25

1,454

115

35,37835,494

6. Other Information
Not applicable26