Kaga Electronics Groupʼs Growth Scenario
Medium Term Management Plan 2021 Outline（announced on November 6, 2018）

Kaga Electronics Co., Ltd.
President & Representative Director

Ryoichi Kado

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Medium to Long Term Vision of the Kaga Electronics GroupThrough the establishment and taking hold of “profit-focusedmanagement”,

forming Japanʼ No.1 corporate groupin the industry,

and furthermore,aiming to become a competitive“World class company”.

© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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Positioning of “Medium Term Management Plan 2021 (2019 - 2021)”
OrganicGrowth
Aim to become a competitive “World class+company”
Further M&A
Challenges
Towards the realization of“Japanʼs No. 1 corporate group inthe industry”
Kaga
ElectronicGroup+FujitsuElectronics

Increased
Sales

1 trillion yen

500 billion yen

Expansion oftrading company business

Increased
ProfitRatio

Further
expansion ofthe EMS
business

Enhancement
and expansion ofoverseas
businesswill lead togrowth of the EMS business
Quantitative
expansion of trading
company business

Qualitative improvement
through EMS business(Net Sales)

Medium Term Management Plan 2021
①Enhancement of Revenue Base ②Stabilization ofManagement Base ③Creation of New Business© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

Medium toLong TermVision2

“Medium Term Management Plan 2021 (2019 - 2021)” Basic Policies

Key Issues

1Utilizing the Groupʼs DNA to see things ahead of time, we shall focus on markets and2
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Aiming to stabilize the management base towards early improvement of efficiency andEnhancement ofRevenue Base

Stabilization ofManagement
Base

Creation ofNew Businesscustomers forecast to have high growth potential and profitability, and will aim tostrengthen the revenue base・ Strengthening initiatives for growth sectors: In-vehicle, communications, environment, industrial
equipment, medical and healthcare
・ Enhancement and expansion of EMS business and overseas businessfinancial soundness after conversion of Fujitsu Electronics to subsidiary・ Continuation of group-wide cost reduction measures
・ Promotion of improve group management efficiency through the preparation of an organizational structure
・ Enhancement of corporate governance, cultivating human resources to lead the next generation

In order to enhance resistance to changes in the external environment, we shallendeavor to create new business through the proactive use of our own resources and M&A・ Launching of social issues (childcare, welfare, nursing care, etc.) business and materials business・ Promotion of open innovation through venture investment
・Proactive use of M&A activities© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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“Medium Term Management Plan 2021” Management Targets

FY2018Result

FY2019Forecast

ManagementTargets FY2021

Net Sales

292.8 billion yen○

430 billion yen○

500 billion yen○

Operating
Income7.6 billion yen○

7 billion yen○

13 billion yen○○○

8% or higher○

10.9%ROEFOREX○○

6.4%

・ Plan forecast： US$1.00＝￥110© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

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Shareholder Return Concept
We shall perform stable dividends, while securing a consolidated dividend payout
ratio of 25 to 35%.
 We shall use funds for business investments, capital investments, and M&A, etc. inorder to contribute to future growth.
 Decisions on the acquisition of treasury shares shall be made appropriately,inconsideration of capital efficiency and share price, etc.
Basic Policy on
Dividends ofSurplus

29.6%

28.6%
25.5%

25.6%

(5 yen dividendincrease)

27.4%

25%

Total return trend：45.4%■ Ordinary dividend■ Commemorativedividend■ Special dividend

35 yen

24.1%

35%

32.9%

Acquisition of treasury
shares (JPY 1,499 million)

80 yen(10 yen dividendincrease)
70 yen60yen
555 yen (5 yen dividend (10 yen dividendincrease)(15yendividend
540 yenincrease)increase)10(5 yen dividendincrease)

530

102014/3期
PeriodEndingMarch2014実績
Results

2015/3期
PeriodEndingMarch2015実績
Results30

15204040

2016/3期
PeriodEndingMarch2016実績
Results

2017/3期
PeriodEnding
March2017実績
Results© 2017 KAGA ELECTRONICS CO.,LTD All Rights Reserved.

60
2018/3期
PeriodEnding
March2018実績
Results

70

2019/3期
PeriodEnding
March
実績2019Results

60 Yen60
2020/3期
PeriodEnding
March2020
予想
Forecast

2021/3期
Period Ending
イメージ
March2021
Image

2022/3期

Period Ending
イメージ
March2022
Image

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“Everything we do isfor our customers
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