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The first slide shows the “Medium to Long Term Management Vision,” the same
vision which I have consistently pursued to this day, ever since I assumed the officeof President in 2014.
The vision embraces, first and foremost, “profit‐focused management.” In theprevious medium term management plan, we focused our efforts on establishing
this “profit‐focused management” and setting it firmly in place. To this end,
“expansion of the EMS business” and “structural reforms” were conductedsimultaneously.
As we made a good progress towards achieving “profit‐focused management,” wehave moved on to the next goal, which is to become “Japan’s No. 1 corporategroup in the industry,” and have recently set out to execute “the conversion ofFuijtsu Electronics to a subsidiary.”
Once we have achieved the goal of becoming “Japan’s No. 1 corporate group in theindustry,” our next goal will be to become “a World Class Company that willsurvive even in global competition.” Globally, we have competitors with sales
exceeding a trillion yen. We must aim to be a company that can compete withthem and be victorious.
My mission as the top management is, I believe, to transform and develop KagaElectronics into such a company and pass it on to the next generation.

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•This slide illustrates the positioning of “Medium Term Management Plan 2021.”
As indicated with a large font at the center of the slide, by leveraging the conversionof Fujitsu Electronics to a subsidiary, we will seek to realize our goal of becoming“Japan’s No. 1 corporate group in the industry” through discontinuous expansionof electronic parts business, which is our core business and on which we werefounded.
Our short‐term goal is to expand the trading company business. This means thetwo companies sharing their products and customer bases in order toquantitatively expand net sales and profit of the trading company business.
The quantitative expansion of the trading company business will then be used forthe value adding EMS business, which is our strength. This is our medium‐termgoal. In this way, we will seek qualitative improvement, or in other words,
improvement in profit ratio. So, first we achieve quantitative expansion, and thenseek qualitative improvement. Such is the scenario.
In the current Medium Term Management Plan, we have set our goal to become a“500 billion yen class” company using the conversion of Fujitsu Electronics to asubsidiary as a springboard. Our subsequent medium to long‐term goal will be tobecome “a trillion yen class” company.
In addition to growing EMS and overseas businesses, we will boldly take on thechallenge of doing more M&A transactions in pursuing our goal to become “aWorld Class Company that will survive even in global competition.”
As you may be aware, while Japan already has “500 billion yen class” companies,
there is as yet no company of “trillion yen class.”
Such being the case, we would definitely wish to aim to be “the first trillion yencompany.”•••In this slide, we present in detail the three basic policies of the plan, which are“enhancement of revenue base,” “stabilization of management base,” and“creation of new businesses.”
As these were explained in our previous presentation, I will not go into the details
today, but let me add that, of these policies, “stabilization of management bases”
is the key.
Given that the Group’s profitability will decline temporarily following theconversion of Fujitsu Electronics to a subsidiary, I believe it is important topromptly put it back on track. To this end, we will proceed with cost reduction
across the Group and development of an organizational structure, through which
we will strive for an early improvement of Group management efficiency andfinancial soundness

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This slide shows the management targets of “Medium Term Management Plan
2021.”Net sales of 500 billion yen, an operating income of 13 billion yen , and an ROEof 8% or higher, are the management targets for fiscal 2021, which is the final yearof Medium Term Management Plan 2021.
The fiscal 2018 results and fiscal 2019 forecasts which Mr. Kawamura justpresented, are shown in the columns on the left hand side.
These are all challenging targets but we will strive to achieve them over the next
three years, with concerted efforts of the whole Group

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•The last slide is on “shareholder returns.”
Returning profits to shareholders is one of our important management issues.
Of the basic policies described here, we are giving priority to “stably providing
dividends while securing a consolidated dividend ratio of 25 to 35%.”
In the fiscal year ended March 31, 2019, we paid an interim dividend of 35 yen
per share, which consisted of an ordinary dividend of 30 yen as initially projected,
and a 50th anniversary commemorative dividend of 5 yen. For the year‐end
dividend, an ordinary dividend of 40 yen as initially projected and an extraordinary
dividend of 5 yen will be paid, for a total of 45 yen per share. The annual dividend
will be 80 yen per share, which represents a dividend ratio of 27.4%.
In the fiscal year ending March 31, 2020, an annual dividend of 60 yen per shareis currently planned, which represents a dividend ratio of 32.9% against a
projected 5 billion yen in profit attributable to owners of parent.
As shown in this graph, we have maintained a dividend increase for six consecutive
years since the fiscal year ended March 31, 2014. Regrettably this will beinterrupted, but we will work on achieving a sustained growth of profit so that
we may be able to resume dividend increase in the future.

This concludes my explanation on the outline of the “Medium Term Management Plan.”