July 30, 2010

Summary of Consolidated Financial Results
For the First Quarter Ended June 2010
Name of Company:
Stock Code:
Stock Exchange Listing:
URL:
Representative
Title:
Name:
Contact Person
Title:Name:
Phone:
Date of quarterly securities report
Date of commencement of dividend payment (tentative):
Quarterly earnings supplementary explanatory documents:
Quarterly earnings presentation:

KAGA ELECTRONICS CO., LTD.
8154
Tokyo Stock Exchange, First Section
http://www.taxan.co.jp/
President & COO
Tomohisa Tsukamoto
Senior Managing Director, Finance & Administration Headquarters
Waichiro Shimoyama+81-(0)3-4455-3111
August 11, 2010
－NoneNone(Yen in millions, rounded down)

1. Financial results for the first quarter ended June 2010 (April 1, 2010 – June 30, 2010)(1) Result of operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)

First quarter ended June 2010
First quarter ended June 2009

Net sales
MillionYoY
yen Change %59,692
10.4
54,062(16.1)

Operating income
MillionYoY
yen Change %
916
(253)
-Net income
per share

Net income
per share
fully dilutedYen20.02(23.22)

First quarter ended June 2010First quarter ended June 2009

Ordinary income
MillionYoY
yen Change %
993
(281)
-Net income
MillionYoY
yen Change %552(640)-Equity ratio

Net assets per shareYen-(2) Financial Position (Consolidated)
Total assets

Net assets

Million yen
First quarter ended June 2010
112,476
Fiscal year ended March 2010
113,962
Note: Shareholders’ equity
As of June 30, 2010 :46,263 million yen
As of March 31, 2010 :
46,841 million yen

Million yen
47,95548,553%
41.1
41.1

Yen
1,676.32
1,697.27

2. Dividends
Reference date

End of 1QYen-

End of 2Q
Yen
15.00

Dividend per share
End of 3Q
Yen-

Fiscal year ended March 2010
Fiscal year ending March 2011
Fiscal year ending March 2011
(est.)
Notes: Change in the estimation of dividend for the fiscal year in this period: No
The estimated amount of dividend for FY2011 is not yet determined.

1-

End of FY
Yen
15.00

Full year
Yen
30.00

--

3. Forecast for the fiscal year ending March 2011 (Consolidated, April 1, 2010 to March 31, 2011)
Net sales

Operating income

Ordinary income

Net income

Net income
per shareYen
21.74
47.10Million yen% Million yen% Million yen% Million yen%First half
116,000
1.8
1,100
199.2
1,400
594.0
600
Full year
225,000
(6.0)
1,700
7.4
2,100
64.0
1,300
Note: Change in the forecast made in this period : Yes(The percentage figures accompanying net sales, operating income, ordinary income, and net income represent year-on-year changes.)

4. Others (Please refer to page 1 “Others” for details.)(1) Changes in significant subsidiaries: None
Note: This section shows whether or not there is a change in Specified Subsidiaries that led to the change of theconsolidation scope during the current quarter.
(2) Use of simple method in accounting procedures and application of accounting procedures specific to thequarterly consolidated financial statements: NoneNote: This section shows the use of any simplified accounting method, or the use of any peculiar accounting
method for consolidated financial statements.
(3) Changes in accounting principles and procedures, presentation methods and other items in the preparation of thequarterly consolidated financial statements.
(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None
Note: Items to be disclosed in “Significant Changes in the Basis of Presenting Quarterly Consolidated FinancialStatement”(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury stock)
As of June 30, 2010: 28,702,118
As of March 31, 2010: 28,702,118(b) Treasury stock
As of March 31, 2010: 1,103,943
As of June 30, 2010: 1,103,964(c) Average number of shares (quarterly consolidated cumulative period)
Period ended June 30, 2009: 27,597,047
Period ended June 30, 2010: 27,598,187*Description of quarterly review procedure implementation status
It is under the quarterly review procedure process based upon the Financial Instruments and Exchange Act at the timeof disclosure of this report.
*Cautionary statement regarding forecasts of operating results and special notes
1. Forward-looking statements in these materials are based on information available to management at the time thisreport was prepared and assumptions that management believes are reasonable. Actual results may differ significantly
from these statements for a number of reasons.
2. There is no dividend forecast for the fiscal year ending on March 31, 2011 because of the uncertain outlook for theoperating environment. An announcement will be made promptly once a dividend forecast becomes possible due tofuture changes in operating results and other factors.

2Index of the Attachment
1.
2.
3.

Others……………………………………………………………………………………………………………………………4(1) Outline of Changes in Significant Accounting Policies, Procedures and Presentation……………………………………5Consolidated Financial Statements………………………………………………………………………………………………5Consolidated Balance Sheets…………………………………………………………………………………………………….5(1) Consolidated Statements of Income……………………………………………………………………………………….7(2) Going Concern Assumption……………………………………………………………………………………………... .7(3) Material Changes in Shareholders’ Equity………………………………………………………………………………..73

1.

Others(1) Outline of changes in Significant Accounting Policies, Procedures and Presentation
・ Changes in accounting standard
From the first quarter of the fiscal year ending March 31,2011, KAGA ELECTRONICS Group applies the “AccountingStandard for Asset Removal Obligations”(ASBJ Statement No.18 of March 31,2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations” ( ASBJ Guidance No.21 of March 31, 2008).
As a result, the operating income and the ordinary income have decreased for 11 million yen, and the income before
income tax and minority interests has decreased for 49 million yen.

4

5. Quarterly Consolidated Financial Statements(1) Quarterly Balance sheet(million yen)First quarter ended June 2010 Fiscal year ended March 2010
(As of June 30, 2010)(As of March 31, 2010)ASSETS
Current assets
Cash and cash equivalents
Notes and accounts receivable-tradeMarketable securities
Merchandise and finished goods
Work in process
Raw materials and other supplies
Deferred tax assets
OthersAllowance for doubtful receivables
Total current assets

12,26955,561
65
14,576
961
3,587
781
7,185
(260)

11,91759,21469
14,483
647
3,011
866
6,813
(184)

94,72996,838Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools and office furniture, net
LandConstruction in progress

2,669
1,447
1,232
1,297
469

2,584
1,489
944
1,297
119

Total property, plant and equipment

7,115

6,434

484
799
976

484
686
731

2,260

1,901

4,157
298
5,454
(1,540)

4,607
249
5,490
(1,559)Intangible assets
Goodwill
Software
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

58,3708,786

17,746

17,123

112,476

113,962(million yen)First quarter ended June 2010 Fiscal year ended March 2010
(As of June 30, 2010)(As of March 31, 2010)
LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term bank loans
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term bank loans
Allowance for retirement benefits for employees
Allowance for retirement benefits for directors andcorporate auditors
Asset removal obligation
OthersTotal long-term liabilities

44,8576,841
527
1085,358

43,535
8,935
1,049
20
5,237

57,692

58,779

2,387
1,452

2,500
1,432

1,234

1,222

215
1,538

1,474

6,828

6,629

Total liabilities

64,521

65,408NET ASSETS
Shareholder’s equity
Paid-in capital
Capital surplus
Retained earnings
Treasury stock

12,133
13,912
24,150(1,332)

12,133
13,91224,012(1,332)

48,864

48,726(370)(14)(2,216)(195)
8(1,697)(2,601)(1,884)

Total shareholder’s equity
Valuation and translation adjustments
Valuation differences on available-for-sales securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Total valuation and translation adjustments
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

61-

1,690

1,711

47,95548,553

112,476

113,962(2) Quarterly statements of income
For the first quarter ended June 2010
(million yen)First quarter ended June 2009
(April 1, 2009 – June 30, 2009)First quarter ended June 2010
(April 1, 2010 – June 30, 2010)

Net sales
Cost of sales

54,062
47,61559,692
51,900Gross profit

6,4477,792

Selling, general and administrative expenses

6,700

6,875

Operating income (loss)

(253)

916

Non-operating income
Interest income
Dividend income
Commission income
Others143211215315099

158

196

3375
78255538

Total non-operating income
Non-operating expenses
Interest expense
Loss in foreign exchange
OthersTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of investment securities
Compensation income
Gain on foreign currency translation adjustments forliquidation of subsidiaries
OthersTotal extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on revaluation of investment securities
Loss on adjustment for change of accounting standard
for asset removal obligations
OthersTotal extraordinary losses

186

119(281)

993

51
40

140

22

109
1113

250

187

1090

138
21

89

160

Income (loss) before income taxes and minority interests

(257)

1083

Income, inhabitants and enterprise taxes
Income tax adjustment

263
162

386
127

Total taxes

425

514

-

568

Income(loss) before minority interests
Minority interests in income (loss) of consolidatedsubsidiaries
Net income (loss)(3) Notes to ongoing concern assumptions
None(4) Notes on significant change in shareholders’ equity
None

7(42)

16(640)552