Report on Financial Result
Third Quarter of Fiscal Year 2012
2012
April to December 2011

February.24, 2012
KAGA ELECTRONICS CO., LTD. (TSE 1st section, 8154)
3-12-8 Sotokannda, Chiyoda-ku, Tokyo 101-8629
Tel: (03) 4455-3131 Fax: (03) 3815-6807
URL：http://www.taxan.co.jp

Financial Highlights
Third Quarter of Fiscal Year 2012
April to December 2012
(Consolidated Third Quarter)2© 20102011 KAGAKAGA ELECTRONICS
ELECTRONICS CO.,LTD©
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■ Financial Highlights of Third Quarter Ended December 2012
Consolidated Statement of Income
Nine months ended
December 2010

Nine months ended
December 2011

Year over year
ChangeAmountAmountAmountNet Sales
177,535
平成18年3月期
Cost of sales
154,293
Gross profit
23,241
SG&A expenses
20,033Operating income
3,208
Non-operating income
557
Non-operating expence
635
Ordinary income
3,130
Extraordinary items-225
Income before income taxes

Income taxes
Income taxes-deferred
Minority interests
Net income（ million yen ）

2,905
1,192
244
37
1,431

Pct.

100.0% 173,690
平成19年3月期（予）
86.9%
13.1%
11.3%
1.8%
0.3%
0.4%
1.8%
-0.1%
1.6%
0.7%
0.1%
0.0%
0.8%

152,425
21,264
19,988
1,276
544
418
1,402
-1,058
344
880
-212
32
-356

Pct.
100.0%
87.8%
12.2%
11.5%
0.7%
0.3%
0.2%
0.8%
-0.6%
0.2%
0.5%
-0.1%
0.0%
-0.2%

Pct.

-3,845-2.2%-1,867-1.2%-1,977
-8.5%
-45
-0.2%
-1,932-60.2%
-13
-2.3%
-217
-34.2%-1,728-55.2%-833 370.2%-2,561-88.2%-312-26.2%-457 -186.9%-5-13.5%-1,786 -124.9%3© 20102011 KAGAKAGA ELECTRONICS
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Comparison of Consolidated Sales by Business Category（ million yen ）Nine months ended December Nine months ended December
2010
2011
Net sales
Segment income

Net sales

Pct.

Segment income

Pct.

ChangesAmountPct.

Electroniccomponents

127,64271.9%

124,428

71.6%-3,214

-2.5%

2,525

78.7%

1,223

95.8%

-1,302-51.6%

Informationequipment

38,72421.8%

39,332

22.6%

608

1.6%

564

17.6%

-188

-14.7%-752-133.3%

3,661

2.1%

2,445

1.4%

-1,216-33.2%

274

8.5%

66

5.2%

-208

-75.9%

7,506

4.2%

7,484

4.3%

-22

-0.3%

275
177,5353,208

8.6%
100.0%
100.0%

243
173,690
1,276

19.0%
100.0%
100.0%-32-3,845-1,932-11.6%-2.2%-60.2%

Software
OtherTotal* Figures of each segment income are not inter-segment adjusted other than total.

Summary Electronic components (Development, manufacture and sale of semiconductors, general electronic components and other products,
electronic manufacturing service (EMS), and other activities)
Sales activities focused on increasing sales to current customers and on increasing sales of LED products, solar panels and other products in the environmental
business, which has attracted attention following the Great East Japan Earthquake. However, orders in Japan decreased from EMS customers due to lower output
because of the earthquake and slowing consumer spending. Overseas, performance was affected by lower output by clients caused by flooding in Thailand. The result
was segment sales of 124,428 million yen.
 Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, and other products)
Performance reflected sales activities to increase sales of current products like PCs and PC peripherals, the addition of new products, and higher orders for terrestrial
digital TV broadcast tuners following the July end of terrestrial analog TV broadcasts in Japan. The result was segment sales of 39,332 million yen.

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2011 KAGAKAGA ELECTRONICS
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【Reference】Comparison of Consolidated Sales by Business Category（ million yen ）（ million yen ）Nine months ended
December 2010

Nine months ended
December 2011

AmountPct.

AmountPct.

Information equipment

35,87720.2%

35,92820.7%

510.1%

EMS

50,53531.1%

47,29627.2%-3,239-6.4%

Semiconductors

44,01724.8%

44,761

25.8%

744

1.7%

Generalelectronic
components

20,552

11.6%

22,530

13.0%

1,978

9.6%

Others26,55315.0%

23,17313.3%-3,380-12.7%

Total

177,535

100.0% 173,690

100.0%-3,845-2.2%

ChangesAmount177,535

173,690

Pct.

Summary■ EMS sales: Down 3,239 million yen (-6.4%)
EMS orders were lower mainly because of the difficulty of procuring parts caused by the Great East Japan Earthquake
and flooding in Thailand and the resulting decline in output at clients. The result was a decrease in sales of 3,239
million yen from one year earlier to 47,296 million yen.
■ General electronic components sales: Up 1,978 million yen (+9.6%)
Measures to secure procurement channels for parts where shortages occurred temporarily after the Great East Japan
Earthquake along with aggressive sales activities, including measures to increase sales to current customers, resulted
in an increase in sales of 1,978 million yen from one year earlier to 22,530 million yen.

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2011 KAGAKAGA ELECTRONICS
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■ Selling, General and Administrative Expenses of Nine Months Ended December 2011
（million yen ）SG&A Expenses
Nine months ended
December 2010

Nine months ended
December 2011

Changes（ million yen ）Rent
Personnel
expenses
OthersAmount
1,766
395
938
3,099
585
1,578
10,724
4,046

Total administrative
expenses

16,934

84.5%16,710

83.6%

-224

-1.3%

Total SG&A
expenses

20,033100.0%

19,988100.0%-45-0.2%

Packing andfreight
R&D
OthersTotal selling
expenses
Depreciations

Pct.
Amount
8.8%
1,880
2.0%
417
4.7%
981
15.5%
3,278
2.9%
523
7.9%
1,499
53.5%
10,787
20.2%
3,901

Pct.
Amount
9.4%
114
2.1%
22
4.9%
43
16.4%
179
2.6%
-62
7.5%
-79
54.0%
63
19.5%
-145

Pct.

20,033

19,988

6.5%
5.6%
4.6%
5.8%
-10.6%
-5.0%
0.6%
-3.6%

Summary■Selling expenses – Packing and freight：
These expenses were 114 million yen higher than one year earlier mainly because of a 103 million yen increaseat KAGA HIGHTECH due to a larger volume of products handled.
■Administrative expenses：Rental expenses – Down 79 million yen from one year earlier mainly because of lower store rental expenses
at KAGA SPORTS Depreciation – Down 62 million yen from one year earlier mainly because of a decrease in depreciation
associated with accounting methods

6© 20102011 KAGAKAGA ELECTRONICS
ELECTRONICS CO.,LTD©
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■ Financial Highlights Nine Months Ended December 201１
Consolidated Balance Sheets
End of FY3/11（ASSETS）
Current assets
Cash and cash equivalents
Notes and account receivable-trade

Merchandize and f inished goods

Goods in progress
Raw materials and other supplies

Others114,686
92,876
11,92654,173
15,775
555
3,189
7,258

End of 3H
FY3/12

114,675
94,496
10,861
53,953
17,667
712
4,054
7,249

（ millions of yen ）Change-11
1,620-1,065-220
1,892
157
865-9

End of FY3/11(LIABILITIES)Current liabilities
Notes and accounts payable-trade

Short-term bank loans
OthersLong-term liabilities
Long-term bank loans
Others(NET ASSETS)

End of 3H
FY3/12

66,08756,98740,790
8,505
7,692
9,099
4,636
4,463
48,59868,752
61,032
41,25012,944
6,838
7,719
3,281
4,438
45,922

12,133
13,91225,038-1,332-2,817
1,664
114,686

12,133
13,912
23,854-1,332-4,190
1,545
114,675

Shareholders' equity

Fixed assets
Property , plant and equipment

Intangible assets
Investments and other assets21,810
9,724
2,599
9,485

20,178
9,135
2,385
8,658

-1,632-589
-214
-827

Paid-in capital
Capital surplus
Retained earnings
Treasury stock
Valuation and translation adjustment
Minority interests

Total assets

114,686

114,675-11

Total liabilities and net assets

Change

2,665
4,045
460
4,439
-854
-1,380-1,355-25-2,676000-1,184
0-1,373-119-117© 20102011 KAGAKAGA ELECTRONICS
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■ Forecast for FY3/2012
Consolidated Statement of Income（ million yen ）FY3/2011(actual)

FY3/2012 (plan)

AmountAmount

平成18年3月期

平成19年3月期（予）Pct.

ChangePct.change

100.0%

227,000

100.0%-10,951-4.6%

207,298

87.1%

198,700

87.5%-8,598-4.1%

30,65312.9%

28,30012.5%-2,353-7.7%

27,08911.4%

26,700

11.8%

-389

-1.4%

3,563

1.5%

1,600

0.7%

-1,963-55.1%

175

0.1%

500

0.2%

325

185.7%

Ordinary income

3,738

1.6%

2,100

0.9%

-1,638-43.8%

Extraordinary gain and loss

-376

-0.2%

500.0%

426

852.0%

Corporate income taxes

1,516

4.9%

1,200

4.2%

-316

-20.8%Net income

1,854

0.9%

950

0.4%

-904

-48.8%Net sales
Cost of sales
Gross profit
SG&A expenses
Operating income

Non-operating income

237,951

Pct.

Change8© 20102011 KAGAKAGA ELECTRONICS
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■ Forecast for FY3/2012 (Consolidated Forecast by Segment)（ million yen ）FY3/2011(Actual)
Net sales
Segment income

FY3/2012(Forcast)
Net sales

Pct.

Segment income

Changes

Pct.

AmountPct.

Electroniccomponents

171,57672.1%

154,500

68.1%-17,076-10.0%

2,901

81.4%

720

45.0%

-2,181-75.2%

Informationequipment

50,88521.4%

52,000

22.9%

1,115

2.2%

72

2.0%

130

8.1%

58

80.6%

5,687

2.4%

7,500

3.3%

1,813

31.9%

487

13.7%

470

29.4%

-17

-3.5%

9,801

4.1%

13,000

5.7%

3,199

32.6%

230

6.5%

280

17.5%

50

21.7%

237,951

100.0%

227,000

100.0%-10,951

-4.6%

3,563

100.0%

1,600

100.0%-1,963-55.1%

Software
Other
Total

Summary■Electronic components (Development, manufacture and sales of semiconductors, general electronic components
and other products, electronics manufacturing service (EMS), and other activities)
Sales are expected to be less than initially planned because of a temporary downturn in electronic component,
semiconductor and EMS sales because of the difficulty of procuring parts caused by the Great East Japan
Earthquake and flooding in Thailand and the resulting decline in output at clients.
■Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products,
and other products)
Group companies are concentrating on increasing sales of current products like PCs, PC peripherals, products for
smartphones and tablets, and other products.

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■ Forecast for FY3/2012 (Net Sales by Product )（ million yen ）FY3/2011

FY3/2012 (F)ChangePct.

664

1.4%

29.0% 63,000

27.8% -5,897-8.6%

Semiconductors 58,588

24.6% 56,000

24.7% -2,588-4.4%

General electronic
components

29,231

12.3% 26,000

11.5% -3,231 -11.1%

Others33,898

14.2% 34,000

15.0%

102

0.3%

Total237,951

100.0% 227,000

100.0% -10,951-4.6%

Informationequipment
EMSNet sales

Pct.

Net sales

Pct.

47,336

19.9% 48,000

21.1%

68,897

Changes

237,951

227,000 （ million yen ）Summary■ Information equipment: Forecast sales growth of 664 million yen (1.4%) because of growth in sales of PCs and PC peripherals.
■ EMS: Forecast sales decline of 5,897 million yen (8.6%) because of lower output at client companies associated with the earthquake in Japanand flooding in Thailand.
Semiconductors: Forecast sales decline of 2,588 million yen (4.4%) mainly because of lower output at client companies.
■ General electronic components: Forecast sales decline of 3,231 million yen (11.1%) mainly because of lower output at client companies.
■ Others: Forecast sales growth of 102 million yen (0.3%) mainly because of higher sales from recycling operations, computer graphics
and application software.

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Topics of October - December 201011
© 20102011 KAGAKAGA ELECTRONICS
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Topics １
Opened Liaison Offices in Indonesia and the Philippines！
Consolidated subsidiary KAGA (SINGAPORE) ELECTRONICS PTE. LTD. opened a liaison
office in Indonesia in January 2012 to expand its presence in Southeast Asian markets. The
company opened a liaison office the following March in the Philippines. KAGA ELECTRONICS
will continue to aggressively pursue opportunities in emerging countries.
Indonesia Liaison Office
Location: Jakarta, Indonesia
Opened: January 2012
Purposes: Increase sales to Japanese companies(audio products, office equipment, home appliances,etc.) and establish relationships with local companies
Philippines Liaison Office
Location: Manila, Philippines
Opening: March 2012 (plan)
Purposes: Increase sales to Japanese companies(automotive devices, etc.) and establish relationships
with local companies

Philippines Liaison Office

KAGA (SINGAPORE)

Indonesia Liaison Office12© 20102011 KAGAKAGA ELECTRONICS
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Topics ２
New Amata Nakorn Factory at KAGA ELECTRONICS (THAILAND)
Due to damage at the Ayutthaya Factory of consolidated subsidiary KAGA ELECTRONICS(THAILAND) CO., LTD. caused by the October 2011 flooding, this company has closed this factoryand moved manufacturing operations to a factory in Amata Nakorn, which is at a higher elevation.
The New Amata Nakorn Factory
Location:

Amata Nakorn, Chonburi, Thailand

Products:

PCBA (mainly office equipment, climate
control equipment, and automotivesubstrates)

Site:

10,144 m2 (leased)

Building:

5,250 m2 (leased)

Employees:

150 (Plan)

Operations:Started February 2012

Amata Nakorn
Factory

The new high-tech factory has a clean room for the production of high-density
circuit boards, automotive substrates and other products, equipment to control staticelectricity and humidity, a contamination prevention system, and other advanced
facilities. In addition, there are automated systems to reduce the effects of expected
growth in personnel expenses in Thailand as well as to improve quality.

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Topics ３
KAGA HIGHTECH launches two new products!
1) The TAXAN Meo Series for the growing market for smartphones, tablets and other mobile devices2) Smart Karaoke for using a smartphone to enjoy karaoke

スマカラ

14
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KAGA ELECTRONICS CO.,LTD.

Contact: Public Relations Department
3-12-8 Sotokannda,Chiyoda-ku,Tokyo 101-8629
TEL:03-4455-3131
FAX:03-3254-7132
E-mail： webmaster@taxan.co.jp
http://www.taxan.co.jp
15© 20102011 KAGAKAGA ELECTRONICS
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