2021 - 2022

Financial Results Briefing Materialfor the First Half of theFiscal Year ending March 2023
KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

November 24, 2022

Management Topics
Representative Director,President & COO

Ryoichi Kado

Review of the new medium-term management plan

IR schedule forrevisionannouncement

Reasons forchange ofschedule At the announcement of financial results for the fiscal year ending
March 31, 2023, in May 2023, revised management targets forthe final fiscal year (ending March 31, 2025) of the medium-term
management plan will be disclosed together with earnings
forecasts for the fiscal year ending March 31, 2024.
 In revising management targets, a comprehensive review ofKPIs encompassing not only operating income but also net
sales and ROE will be conducted.
 To assess the final income level in the fiscal year ending March 31,
2023, as the upward momentum is expected to be maintained toexceed the targets.
 To improve the accuracy of income forecast for the fiscal year
ending March 31, 2024, given concerns about downward
pressure on earnings from the absence of spot sales, customers’
inventory adjustment, and other factors.

2EMS Business growth investment: new factory in Malaysia【Outline of the new factory in Malaysia】
Site area

11,300㎡

Floor area

11,150㎡

Number ofemployee

900（max. 950）

Scheduledcommencementof operations

October, 2022

Items produced

・Various power supply products
・Sanitary equipment,
Industrial equipment,
and electrical equipment
substrates for consumer
electronics

Sales Plan for FY22 to FY26
112 00（million Yen）

920 0720 0520 0

4,500

5,500

7,000

8,500

10,000320 0120 0-800

2023/32024/32025/32026/3

2027/3

3

EMS Business growth investment: new factory in Turkey【Outline of the new factory in Turkey】
Site area

15,000㎡

Floor area

11,600㎡

Number ofemployee

330

Scheduledcommencementof operations

June, 2023

Items produced・Electrical units for airconditioners
・Substrates for electric tools
・Automotive equipment
substrates

Sales Plan for FY22 to FY26800 05700 0（million Yen）

5,000

600 0

0500 0

3,500

400 0

2,000

300 0200 0

100 0-5500-101,000-15-2002023/32024/32025/32026/32027/34

Inventory reduction
Background to inventory buildup（million Yen, day）
100 ,0 00

Inventory turnover (%) 46.1

▶ Prolonged global supply shortages of

43.7

50.0

90,00 032.8

32

semiconductors and electroniccomponents, and extended lead time

80,00 0

JPY71.2bn

30.0▶ Components sales business: secured sales

volume to respond to advanced andduplicate orders from customers

70,00 0JPY62.6bn
10.0

60,00 0

JPY50.0bn or less

Inventories
50,00 0-10.0

40,00 0

JPY37.9bn-30.0
30,00 0▶ EMS business: increase in work inprogress and secured safety stock as partof BCP

Policy and target for the reduction▶ Components sales business:targeting 15 days in inventory

20,00 0-50.0▶ EMS business:

10,00 0targeting 45 days in inventory

-70.0

0

2021/32022/32022/92023/3
TargetNote： Inventory turnover ＝ Inventories ÷ Net Sales × 365（day）▶ By achieving the aboves, targeting

inventory level of ¥50 billion or less and30 days in inventory at March 31, 2023
5

Human capital investment: from the Integrated Report 2022
Number of annual paid leave granted /Utilization ratio of annual paid leave

Average length of service / Job turnover rate
24

2235

Average length of service (years)
Job turnover rate (%)

3.1

2.9

1.9

10

2.0

2.1

30

5100

Number of annual paid leave granted (days)
Utilization ratio of annual paid leave (%)

56.8

57.9

63.1

53.2

80

54.3
60

20

250

18

16

14.1

14.7

14.7

15.4

14.8

-5

20

18.7

18.4

18.7

18.7

40

18.7

20-10

14

15

0-15
1210

2018/3

2019/32020/32021/3-20

10-20

2018/32022/3

Number of employees who took childcare leave /Ratio of employees reinstated following childcare leave

2019/32020/32021/32022/3

Average annual wage (including bonus)
850 0(Male)

830 0

Number of employees who took childcare leave (persons, Female)
Ratio of employees reinstated following childcare leave

100.0
86.6

92.9

100.0

100.0

19

17

23

790 0
110

100

1
22

17
1
16

22

7,567

7,646

0

7,815

-5

7,504

750 0
80-10

70

2

730 0

60-15

20

710 0-20

690 0

2018/3

2019/32020/32021/35810 0

770 0

17

8,081

120

90

19(thousands Yen)

2022/3

2018/3

2019/32020/32021/32022/3

Note: The average annual wage for the fiscal year ending March
31, 2022 includesspecial stock incentives.

6Distribution and return of profits to stakeholders
Dividend per share & Total dividends

Labor share
66.6

66.6

65.2

57.1

53.2

Extraordinary dividendLabor share (%)
Taxes and dues

43,742

33,59522,377

29,135

Operating

46,78730,487

Total amount of dividends

Income34,571

38,000Results

2020/3
2019/3Results

2021/32020/3Results

2,195

2022/32021/3¥80

Results

2023/32022/3

Forecasts

1,921

5570

¥70

¥80

¥200
¥120(Up ¥40 per share)(Up ¥10 per share)（Down ¥10 per share)）2019/3Results

1060

20

2020/3Results

2021/3Results

60

50
1040

3000
1000-1000-3000

14080
2022/3Results

7000
5000

3,149

2,197

(Up ¥80 per share)(Up ¥10 per share)

Payroll

2019/3
2018/3

addedvalue

Operating Income

5,252

Ordinary dividend

60,517

Depreciation

PayrollCommemorative dividend

71,450Rent expenses

9000(Million Yen)

2023/3
Forecasts

Monthly salary: aiming for industry’s top level

Ordinary dividend: focus on stability and continuity

Periodic bonus (summer/winter): focus on stability

Extraordinary dividend: focus on performance linkage

Fiscal year-end bonus: focus on performance linkage

Commemorative dividend: focus on event
elements such as anniversaries-5000-7000

7

“Everything we do isfor our customers
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