An independent general electronics trading company

KAGA ELECTRONICS Group
Medium-term Management Plan 2018
(FY2016/3 – FY2019/3)

Announced on November 26, 2015

Performance Summary up to FY2015/3
Recovered tothe record high level

Net Sales:

売 上 高（億円）
経常利益 （億円）¥291.3 billion
Ordinary Income:¥8.6 billion

Net Sales
Ordinary Income(FY) 86/3

88/3

90/3

92/3

94/3

96/3

98/3

2000/3

02/3

04/3

06/3

08/3

10/3

12/3

14/3

16/3
Forecast

 Continued structural reform toward the recovery of performance since 2008.
 Shifted into “profit-oriented management” since FY2015/3.

 Recovered to the record high level with profit increase for two consecutive years.

 Reinforce group wide management to realize more effective and efficient operation.
© 2015 KAGA ELECTRONICS CO., LTD. All Rights Reserved.

2

Positioning of “Medium-term Management Plan 2018”
 Prepare for “profit-oriented management” and “Next generation KAGA ELECTRONICS”
 Aim at ordinary income of ¥10 billion (record high) to mark the 50th anniversary
上 高（億円） Become売theindustry leader in Japan and aim at sustainable growth as a world-class company
経常利益 （億円）¥290
2,900billionNet Sales¥10 billion

100

Ordinary Income
FY2019/3
2019/3Medium-termManagement Plan2018© 2015 KAGA ELECTRONICS CO., LTD. All Rights Reserved.

月期

Realize a leap

Become the industry leader in Japan
Sustainable growth3

Management Target
KPI

FY2015/3
Results

FY2019/3
TargetNet Sales¥255.1 billion¥290.0 billion

Ordinary Income¥7.6 billion¥10.0 billion

ROE

7.9%

8.0% or higher

 Secure ROE of 8% or higher steadily and constantly.
➞ Work on further profitability improvement and pursue sales growth.

© 2015 KAGA ELECTRONICS CO., LTD. All Rights Reserved.

4

Basic Policy( 1 ) Enhance revenue base
1. Cultivate priority markets: Automotive devices, Environment,
Telecommunication, Industrial equipment, and Amusement
2. Strengthen relationship with priority customers
3. Expand overseas businesses2.
( 2 ) Create
new business3.
1. Medical & Healthcare

買収方法

2. Materials( 3 ) Strengthen management foundation
1. Reduce SG&A expenses
2. Reorganize group companies
3. Strengthen corporate governance system
4. Compliance© 2015 KAGA ELECTRONICS CO., LTD. All Rights Reserved.

5

Profit Distribution/Shareholder Return
Basic policy ofprofit distribution

 Aim at stable dividend payments while maintaining consolidated dividend payout ratio of 25%
to 35%
 Share buyback as needed, taking into account the market environment and capital efficiency
 Use internal reserve to business investment, capital expenditures and M&A that will contributeto enhancement of corporate value

Trend of Dividend

・Payout ratio of 25% to 35%
・Stable dividend payment(Yen per share)

45.0

50.0
40.0
30.0

30.0

30.0

30.0

35.0

40.0

40.0

Medium-termManagement Plan 2018
(FY)

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

EPS
(Yen)

151.5

128.9

-28.9

-11.5

64.0

33.1

16.0

137.2

156.2

176.9

Payout
ratio

29.7%

38.8%

－－

46.8%

90.5%

186.5%

25.5%

25.6%

22.6%

(Forecast)6© 2015 KAGA ELECTRONICS CO., LTD. All Rights Reserved.

“Everything we do isfor our customers”
20 Kandamatsunagacho, Chiyoda-ku,
Tokyo 101-8629
Contact: Secretarial & Public Relations Office
TEL: +81-3-5657-0106
FAX: +81-3-3254-7133
E-mail: webmaster@taxan.co.jp

http://www.taxan.co.jp
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.