2023
2021 - 2023

Financial Results Briefing Material
for the Fiscal Year ended March 2024

KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

May 23, 2024

INDEX Consolidated Financial Results
for the Fiscal Year ended of FY2024/3

P-3～

Summary/Financial Highlights
Financial Highlights by Business Segment/
Balance Sheet/Cash Flows/Forecasts

 Management Topics

P-29～

Summary of FY2024/3 Results
Inventory Reduction『Medium-Term Management Plan 2024』 Progress ofManagement targets
Started a New Factory in Mexico to expand EMS BusinessMedium- to long-term sustainability targets and major KPIs

 Reference

P-40～

Consolidated Financial Results
for the Fiscal Year ended March 2024

Senior Executive Officer
Head of Administration Headquarters

Yasuhiro Ishihara

Summary of Financial Results for FY2024/3

Results for
FY2024/3

Net sales decreased by 65.3 billion yen or 10.8% year on year to 542.6 billion yen.
The electronic components business was affected by full-scale impact of inventory
adjustment from 3Q, in addition to disappearance of spot demand and diminution oftransactions with a major customer of a Group company.

Operating income decreased by 6.4 billion yen or 19.9% year on year to 25.8
billion yen.
The decrease primarily reflected a decrease in gross profit due to lower net sales,
despite efforts to reduce SG&A expenses.
Net income decreased by 2.7 billion yen or 11.8% year on year to 20.3 billion yen.
1.4 billion yen in gain on sale of investment securities and 0.4 billion yen in gain on
bargain purchase associated with a corporate acquisition were posted.
Compared with the Company plan, net sales fell slightly short of the plan, but
incomes exceeded the plan.



FY2025/3
earnings
forecast

Shareholder
ReturnSales assumptions: Although there is no change to the medium- to long-term growthscenario for the electronics-related markets with the automotive area as one of the
major drivers, full-fledged demand recovery is not expected until the second halfof FY2025/3 given that full-scale inventory adjustment observed since the second halfof FY2024/3 will continue for some time.

Income assumptions: Increase in expenses due to salary increases, etc. are factoredin, in addition to prolonged inventory adjustment.



Earnings forecast: In light of the above, [net sales of 550.0 billion yen (up 2.3%),
operating income of 26.0 billion yen (up 0.6%), and net income of 18.0 billion
yen (down 11.5%)] are projected.



FY2024/3: The year-end dividend will be 110 yen per share as previously forecast on
May 11, 2023. The annual dividend including interim dividend amounts to 220 yen
per share, unchanged from the previous fiscal year.
FY2025/3: Despite a projected decrease in final income, the previous fiscal year’s 220
yen per share will be maintained.



3

Financial Highlights for FY2024/3（million yen）

FY2023/3
Results

FY2024/3
Results

FY2024/3
Forecasts

YoY(Announced on May 11, 2023)

542,697

Progressrate-10.8%

550,000

12.9%

70,452 13.0% -10.3%

―

ー

ー

46,265

7.6%

44,607

8.2%

-3.6%

―

ー

ー

Operating income

32,2495.3%

25,8454.8%-19.9%

25,0004.5%

3.4%

Ordinary income

32,7395.4%

25,976

4.8%-20.7%

25,000

4.5%

3.9%

Profit attibutable toowners of parent

23,0703.8%

20,345

3.7%-11.8%

18,000

3.3%

13.0%

EPS (yen)

878.65

ー

774.61ーー

685.42

ー

ー

ROE

19.6%

ー

14.5%

ー

-5.1pt

13.3%

ー

1.2pt

135.47ー

144.62ーー

135.00ーー

Net sales

608,064

Gross Profit

78,514

SG&A

Exchange Rateyen / USD

-1.3%

Note: 1. The effect of exchange rates on the conversion into yen is approximately 12,539 million yen on net sales
and 420 million yen on operating income.
2. "x. x% " represents the ratio to net sales.

4Results by Business Segment for FY2024/3（million yen）

FY2023/3
Results
Electronic
Component
Information
Equipment

Software

OthersTotal

Net sales

28,314

Net sales

43,680

Segment income

2,449

Net sales

2,998

Net sales
Segment income
Net sales
Segment income

286

5.2%

5.6%

4.4%

2,924

6.6%

2,567
9.6%

370 14.4%
23,241

5.0%

1,555

6.7%

542,697

608,064
32,249(Announced on May 11, 2023)

44,30522,044
1,101

20,887

5.3%

25,845

FY2024/3
Forecasts

YoY

472,583

539,342

Segment income

Segment income

FY2024/3
Results

4.8%-12.4%

471,500-26.2%

20,7001.4%

45,000

19.4%

2,500

-14.4%

4,500

29.0%

300

5.4%

29,000

41.2%

1,500

-10.8%

550,000-19.9%

25,000Progress
rate
0.2%

4.4%

0.9%
-1.5%

5.6%

17.0%
-42.9%

6.7%

23.4%-19.9%

5.2%

3.7%
-1.3%

4.5%

3.4%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

5

Results by Company for FY2024/3（million yen）

FY2022/3
Results

Kaga
Electronics

Kaga FEI

Total

FY2024/3
Results

315,404

YoY

VS
FY2022/3

-9.4%

12.2%

Net sales

281,075

Gross Profit

41,76714.9%

53,12315.3%

47,373 15.0% -10.8%

13.4%

Operating income

15,461

5.5%

21,8996.3%

19,580-10.6%

26.6%

-4.4%

27.6%

-8.1%

30.8%

-45.5%

20.8%

348,034

6.2%

190,684

Net sales

149,455

Gross Profit

14,6909.8%

20,913

10.5%

3,654

2.4%

8,103

4.1%

Operating income

Excel

FY2023/3
Results

199,548

19,218 10.1%
4,413

2.3%

36,608Net sales

65,29660,481Gross Profit

4,247

6.5%

4,443

7.3%

3,834 10.5% -13.7%

Operating income

1,937

3.0%

2,072

3.4%

1,653

Net sales

495,827

Gross Profit

60,54712.2%

78,514

Operating income

20,915

4.2%

32,249-39.5% -43.9%

4.5%

542,697

608,064-9.7%-20.2% -14.6%-10.8%

9.5%

12.9%

70,452 13.0% -10.3%

16.4%

5.3%

25,845

23.6%

4.8%

-19.9%

Note: 1. With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.
2. "x. x% " represents the profit margin.

6

Effect of M&A for FY2024/3（million yen）

Net Sales

Gross profit / Gross profit margin

Net sales decreased both at Kaga Electronics and Kaga FEI due
partly to disappearance of spot demand. Excel saw a decreasein sales to a major customer.

All three companies recorded a gross profit decrease due tolower net sales. At Excel, gross profit margin improved
due to improved sales mix.

608,064

78,514-32,630-8,863-23,872

542,697-5,749-65,367

15.3%
10.5%

15.0%

12.9%

-1,695

-608

10.1%

10.5%

Kaga FEI

Excel

70,452-8,06213.0%

7.3%
2023/3ResultKaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3ResultSG&A / SG&A ratio
SG&A expenses decreased in Kaga Electronics and Excel, reflecting costcutting efforts. Kaga FEI’s expenses increased due partly to the provision ofallowance for doubtful accounts and allocation of head office expenses.

46,2659.1%
6.3%-2,366
9.3%

7.6%

+921

-213

7.0%

5.4%

44,607-1,657

8.2%

KagaElectronics

Kaga FEI

Excel

FY2024/3

Kaga
Electronics

2024/3ResultFY2024/3

2024/3ResultOperating income / Operating income
Operating income / Operating income margin
marjinAll three companies recorded an operating income decrease.
At Excel, operating income margin improved due to improved sales mix

32,2496.3%

5.3%-2,3192023/3Result-3,690

6.2%

4.1%
3.4%

3.6%
2023/3Result2023/3Result-419

25,845-6,404

4.5%

4.8%

Excel

2024/3Result

2.3%
KagaElectronics

Kaga FEIFY2024/3

Note :With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the two companies. For reference, after consolidation adjustments, gross profit
stood at 25million yen, and operating income came to 198million yen.

7

Financial Highlights: Electronic Component Segment
Net sales/Segment income（million yen）

600 ,0 00//

YoY Net Sales

Net Sales
Segment income

539,342

 Segment income

500 00-66,759million yen 12.4％Down-7,427million yen 26.3％Down

・ Both net sales and income decreased in the component sales

472,583

500 ,0 00

400 00400 ,0 00

28,314300 ,0 00

300 0020,887200 00200 ,0 00

5.2%
4.4%

business due to the impact of inventory adjustment taking
place on a full-scale since 3Q, in addition to disappearance of
spot demand that had contributed to earnings until theprevious fiscal year, given easing of supply shortages ofsemiconductors and electronic components, and diminution oftransactions with a certain major client of Excel.
・ Kaga FEI’s SoC (System on a Chip) products continued to enjoy
robust sales.
・ In the EMS business, net sales and income declined due partly
to the impact of inventory adjustments at key customers inapplications related to medical, industrial and air-conditioning
equipment, despite sales growth in the automotive sector
resulting from improved supply and demand balance ofsemiconductors and electronic components.

100 00100 ,0 00

00

FY2023/3
Results

FY2024/3
Results
Note: "x. x% " represents the profit margin.

8

Financial Highlights: Information Equipment Segment 2020年
Net sales/Segment income（million yen）
55,00 0YoY/

Net Sales/

Segment income

 Net Sales+625million yen

1.4％Up Segment income+474million yen

19.4％Up

900 0

50,00 0800 045,00 044,30543,680700 040,00 0600 0

• Although sales of PCs for mass retailers struggled due to weak
demand, sales of PCs for educational institutions remained
firm, with an increase in the number of accounts.
• Sales of security software and PC peripheral products werealso solid.

35,00 0500 030,00 0400 025,00 020,00 02,449

• The LED installation business enjoyed contribution from salesof large-scale projects that the Group has been pushing
forward on a full scale since the previous fiscal year.

2,924
300 0

6.6%

200 0

15,00 05.6%
100 0
10,00 05,000

0FY2023/3
Results

FY2024/3
Results
Note: "x. x% " represents the profit margin.

9

Financial Highlights for FY2024/3 (3months)（million yen）

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results

136,239

QoQ-12.6%

3.7%

Net sales

155,843

Gross Profit

18,63012.0%

17,091

13.0%

18,200

13.4%

-2.3%

6.5%

SG&A

12,387

7.9%

10,475

8.0%

12,846

9.4%

3.7%

22.6%

Operating income

6,242

4.0%

6,615

5.0%

5,353

3.9%

-14.2% -19.1%

Ordinary income

6,121

3.9%

6,365

4.8%

5,664

4.2%

-7.5% -11.0%

Profit attibutable toowners of parent

4,017

2.6%

4,587

3.5%

4,353

3.2%

8.4%

-5.1%

152.99ー

174.65ー

165.73ーーーEPS (yen)

131,413

YoY

Note: 1. The effect of exchange rates on the conversion into yen is approximately 2,842 million yen on net sales
and 90 million yen on operating income.
2. "x. x% " represents the ratio to net sales.

10Results by Business Segment for FY2024/3 (3 months)（million yen）

FY2023/3
4Q Results
Electronic
Component
Information
Equipment

Software

OthersTotal

Net sales
Segment income
Net sales

133,733
4,972

949

Net sales

922

Segment income

151

Segment income
Net sales
Segment income

3.7%

6.5%

5,363

4.7%

641

16.4%

149

6.7%

436

25.3%

7.2%

131,413
4.0%

6,615

3.3%

1,002

7.1%

750

6,041
2.0%

3,738
14,038591

155,843
6,242

114,788

9,551

6,647
129

FY2024/3
4Q Results

115,229

14,540

Segment income

Net sales

FY2024/3
3Q Results

5.0%

YoY

QoQ

-14.2%-0.4%-24.8% -30.3%
-3.4%

47.0%

5.6%

56.2%

-18.6%

27.0%

107 14.3% -29.1% -28.2%
6,660

0.2%

10.2%

495

7.4% 281.9%

13.6%

136,239-12.6%

3.7%

5,353

3.9%

-14.2% -19.1%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

11

Results by Company for FY2024/3 (3 months)（million yen）

FY2023/3
4Q Results

Kaga
Electronics

Kaga FEI

Excel

FY2024/3
4Q Results

Net sales

93,560Gross Profit

12,901

13.8%

11,556

14.7%

4,320

4.6%

5,089

6.5%

Operating income

78,517

YoY

QoQ

80,478-14.0%

2.5%

12,165 15.1%

-5.7%

5.3%

3,922

4.9%

47,556

Net sales

46,255Gross Profit

4,300

9.3%

4,510

10.2%

Operating income

1,093

2.4%

1,009

2.3%

44,3605,075 10.7%
980

2.1%

8,203

8,535

-9.2% -22.9%
2.8%

7.2%

18.0%

12.5%

-10.3%-2.9%-48.8%

-3.9%
-7.8%

Net sales

16,027Gross Profit

1,328

8.3%

993

11.6%

915 11.2% -31.0%

695

4.3%

455

5.3%

332

Operating income

Total

FY2024/3
3Q Results

136,239

Net sales

155,843

Gross Profit

18,63012.0%

17,091

13.0%

6,242

4.0%

6,615

5.0%

Operating income

4.1%

131,413

18,200 13.4%
5,353

3.9%

-52.1% -26.9%-12.6%

3.7%

-2.3%

6.5%

-14.2% -19.1%

Note: 1. With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the three companies.
2. "x. x% " represents the profit margin.

12

Effect of M&A for FY2024/3 (3 months)（million yen）

Net
売上高
Sales

Gross
売上総利益
profit / Gross/ 売上総利益率
profit margin
profit decreased at both Kaga Electronics andExcel due to lower net sales.
Kaga FEI recorded a gross profit increase.

Net sales decreased both at Kaga Electronics and Excel due
to continuation of inventory adjustment.
Kaga FEI secured an increase in net sales.

155,843-13,081+1,301-7,824

136,239-19,604

18,630Kaga FEI

Excel

FY2024/3

2024/3
4QResult

SG&A
販管費/ /SG&A
販管費率
ratio

9.3%
6.8%

-87
10.7%

7.9%

+618

7.9%

-71

12,846
+459

9.4%
6.1%

2023/3
4QResult

Kaga
Electronics

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

-430

13.4%

Kaga FEI

11.2%
Excel

FY2024/3

2024/3
4QResult

All three companies recorded a decrease in operating
income but maintained roughly last year’s level ofoperating income margin on a consolidated basis.

6,242
4.6%
4.3%

-398

2024/3
4QResult

-112

4.9%

-362

5,353

4.1%

3.9%

Excel

2024/3
4QResult

4.0%

2023/3
4QResult

-889

2.1%

2.4%

3.6%
2023/3
4QResult

18,200Operating income
営業利益/ Operating/ 営業利益率
income marjin

At Kaga Electronics and Excel reduced SG&A expenses due toa decrease in gross profit. Kaga FEI’s expenses increased due
partly to allocation of head office expenses.

12,387

-412

10.7%

12.0%

9.3%
8.3%
Kaga
Electronics

+774

15.1%

13.8%

2023/3
4QResult

-736

Kaga
Electronics

Kaga FEIFY2024/3

Note :With respect to gross profit and operating income, figures presented above are before consolidation
adjustments between the two companies. For reference, after consolidation adjustments, gross profit
stood at 43million yen, and operating income came to 117million yen.

13

Financial Highlights: Electronic Component Segment(3 months）
Net sales/Segment income（million yen）//

180 ,0 00

YoY

Net Sales Net Sales

Segment income

 Segment income-18,944million yen 14.2％Down-1,233million yen 24.8％Down

160 ,0 00

140 ,0 00

133,733

120 00115,229

120 ,0 00

QoQ

114,788

 Net Sales Segment income

100 ,0 00-440million yen 0.4％Down-1,624million yen 30.3％Down

80,00 0

4,972

5,363

600 0

60,00 04.7%
40,00 0

3.7%

3,738
3.3%

20,00 00

0

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results
Note: "x. x% " represents the profit margin.

14

Financial Highlights: Information Equipment Segment(3 months）
Net sales/Segment income（million yen）
20,00 0YoY/

Net Sales/

Segment income

 Net Sales-501million yen3.4％Down

 Segment income+52million yen 5.6％Up

18,00 016,00 014,54014,038QoQ

14,00 0

 Net Sales

12,00 0 Segment income

9,551

10,00 0+4,487million yen

47.0％Up+360million yen

56.2％Up

8,000

6,000

1,002

949
641

4,000

6.5%

6.7%

7.1%

2,000

0

0

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results
Note: "x. x% " represents the profit margin.

15

Factors behind Changes in Net Sales /Operating Income for FY2024/3

Reference

Operating Income

Net Sales（billion yen）

608.0 bn

-22.8

-19.6

（billion yen）

-22.8

542.6 bn
Excel’ssales to Spot Salesa majorcustomer
Sales Volume

Gross Profit around -8.0 bn

32.2 bn -0.6
Excel’ssales toa majorcustomer-4.6-2.8
Spot Sales+1.6 25.8 bn
SG&A

Sales Volume
Sales mix

Income Decrease:around 6.4 bn

Sales Decrease:around 65.4 bn
2023/3Results

2024/3Results

2023/3Results

2024/3Results
16

Factors behind Changes in Net Sales /Operating Income for FY2024/3 (3 months)

Reference

Operating Income

Net Sales（billion yen）

155.8 bn

-5.3

-1.2

-12.9

（billion yen）

136.2 bn

Excel’ssales to Spot Salesa majorSales Volume
customer

Gross Profit around -0.4 bn

6.2 bn

-0.0

-0.3

-0.0

-0.4

Excel’s Spot Sales
sales to
Sales Volume SG&A
a majorSales mix
customer

Income Decrease:around 0.9 bn

Sales Decrease:around 19.6 bn
2023/3Results

5.3 bn2024/3Results

2023/3Results

2024/3Results17

Balance Sheet Main Items
Total assets

Total liabilities and net assets（million yen）

272,139

286,217（million yen）

286,792+574

272,139

286,217

156,479

233,984

245,572

244,629-943

Current assets

40,6452022/32023/342,162+1,5172024/3+574

135,560

Total liabilities

151,231

Total net assets-20,919

166,339

105,800
38,155

286,792

129,737+21,493

Non-current assets
2022/32023/32024/318

Balance Sheet Main Items
Inventories

Accounts receivable/Accounts payable
110 .090,00 0（ million Yen, day）

46.1
33.7

80,00 0

36.8

89.0

50.0
200 ,0 00

75.7

A/R turnover

Inventory turnover

68.6

30.0

70,00 077.5

（ million Yen, day）

62,60760.0

55.8

A/P turnover

57.4

10.0

56,20560,00 054,739
-1,466

150 ,0 00

Inventories

10.0

-10.0

120,948

50,00 0129,099

112,574

Notes and A/R-16,524

-30.0

-40.0

100 ,0 00

40,00 0-50.086,493

79,232

71,392-7,84030,00 0Notes and A/P
-90.0

-70.0

50,00 020,00 0-90.0

-140.010,00 0-110.0-130.002022/32023/32024/3

Note： Inventory turnover ＝ Inventories ÷ Net Sales × 365（day）

0-190.02022/32023/32024/3

Notes：1. ・Notes and A/R are amounts including Electronically recorded monetary claims-operating
2. ・Notes and A/P are amounts including Electronically recorded obligations - operating
3. ・A/R turnover ＝ Notes and A/R ÷ Net sales × 365（day）
4. ・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 365（day）

19

Balance Sheet Main Items（million yen）

Cash and Deposits/Interest Bearing Debt
110 ,0 00

100 ,0 00

0.48
0.10

Cash flows（million yen, times）

0.32
-0.08

0.23
-0.21

0.50

0.00

D/E ratio
Net D/E ratio

90,00 080,00 0-0.50

66,59630,569Cash and deposits+13,996

70,00 029,385

Cash flows fromoperating activities

-1.00

1,155

60,00 051,17152,600-1.50-1,55450,00 041,051

41,93840,00 034,270-7,668Interest bearing debts-4,805-2,968Cash flows frominvesting activities-15,549-16,973

Cash flows fromfinancing activities-6,772-2.00

30,00 0-2.50

20,00 010,00 0-3.00

2022/32023/32024/3

Note：1. D/E ratio＝ Interest bearing debts ÷ Shareholder’s equity
2. Net D/E ratio ＝（Interest bearing debts - Cash and deposits） ÷

2022/32023/32024/3

Shareholder’s equity

20Major Business Indicators（million yen）

Equity ratio
420 ,0 00

ROE
60.0%

15.7%

14.5%

52.6%

45.3%

370 ,0 00

19.6%

40.0%

38.8%
320 ,0 00

272,139

286,217

286,792

20.0%

+574

2.2

Total assets

1.9

Total asset turnover

2.0

Financial leverage

3.8

3.7

Net profit margin

2023/32024/3

1.9

270 ,0 00

0.0%

220 ,0 00

2.4-20.0%

129,608
120 ,0 00

Shareholders’ equity

150,834

170 ,0 00+21,2262.6-40.0%

105,680-60.0%

3.1

70,00 0-80.0%

20,00 02022/3-30,000

2023/32024/32022/3-100.0%21

Forecasts for FY2025/3

Forecasts for FY2025/3（million yen）

FY2024/3
Results
Net sales

FY2025/3
Forecasts

YoY

555,000

542,697

2.3%

Operating income

25,8454.8%

26,0004.7%

0.6%

Ordinary income

25,9764.8%

26,0004.7%

0.1%

Profit attibutable toowners of parent

20,345

3.7%

18,0003.2%-11.5%EPS (yen)774.61ー

685.26

ー

－

ROE

14.5%

ー

11.5%

ー

-3.0ptAnnual dividend (yen)220.00220.00ー

Note: "x. x% " represents the profit margin.

23

Forecasts by Business Segment for FY2025/3（million yen）

FY2024/3
Results
Electronic
Component
Information
Equipment

Software

OthersTotal

Net sales

20,887

Net sales

44,305

Segment income

2,924

Net sales

2,567

Net sales
Segment income
Net sales
Segment income

370

4.4%

6.6%

4.3%

3,000

14.4%

6.7%

400 13.3%
1,700
26,000

8.1%
5.4%

6.9%

555,000
4.8%

2.6%
16.8%

24,500
6.7%

0.1%
1.6%

3,000

542,697
25,84520,9002.1%

45,00023,241
1,555

YoY

482,500

472,583

Segment income

Segment income

FY2025/3
Forecasts

9.3%
2.3%

4.7%

0.6%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

24

Factors behind Changes in Operating Income
for FY2025/3
Operating Income（billion yen）

25.8bn+1.6△1.5

Sales Volume
Personnel
Sales mix
expenses+0.1

26.0bnReference

Cost increase factors incorporated
into FY2025/3 forecasts⑴ Salary increases 1.0 bn
・ Kaga Electronics: Up 25,000 yen /month across the board(average rise of 7.8%)・ Group companies: rise of 2.0% to 7.5%

Other
expenses⑵ New graduate salary, regularsalary increases, etc.
0.5 bnIncome Increase:around 0.2 bn
2024/3Results

2025/3Results*Operating income forecast:+1.6 billion yen (+6.4%) in real terms,
excluding the effects of the above factors

25

Shareholder ReturnBasic Policy on
Dividends ofSurplus

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.
in order to contribute to future growth.
Decisions on the acquisition of treasury shares shall be made appropriately,in consideration of capital efficiency and share price, etc.
Total return trend：44.3%

25.6%

24.1%

■ Ordinary dividend■ Commemorative
dividend■ Special dividend

32.1%

35%

28.4%
25.0%

27.4%
19.3%

Total return trend：45.4%
Acquisition of treasury shares(JPY 1,499 mil)

25%

20.8%

※Including negative goodwill
JPY220
about JPY8 bn

JPY220 JPY220

70

JPY55

JPY60

10
30

15
40

20

FY2014
Results

FY2015Results

FY2016
Results

JPY40

32.8%

29.6%

28.6%

Acquisition of treasury shares(JPY 3,674 mil)

40

JPY70

JPY80

10

5
5

60
FY2017
Results

JPY70

JPY80

10

20

70

60

60

FY2018Results

FY2019Results

FY2020Results

JPY120

10

40

220

220

140
80
FY2021Results

FY2022
Results

FY2023Results

FY2024
Forecasts

26

Latest 5 years Financial Trends
Operating Income

Net Sales （billion yen）
1H

Full-year

608.0

495.8

422.3
188.8

1H

298.7

223.0

2021/3

542.6

550.0

275.0

20.9
11.4
4.4

2022/32023/32024/3

Cash Flow
CF from Operating activities
Free Cash Flow

30.5
25.7

22.4
18.7

2025/3（forecasts）

26.4

25.8

878.6526.0

774.6118.3

415.0713.8
8.3

2021/3 2022/3 2023/3 2024/3 2025/3（forecasts）

Equity Ratio

ROE（％, billion yen）

Equity ratio■ Equity

78.2

685.26576.46

38.4

90.9

38.8
105.6

45.3
129.6

52.6

■Financial leverage■Total asset turnover■Net profit margin

7.6
150.8
6.6
2.1
2.7

2020/3 2021/3 2022/3 2023/3 2024/3
(1.5)
(8.3)

（yen）

（forecasts）

37.7
9.9
7.5

32.2

2021/3 2022/3 2023/3 2024/3 2025/3（billion yen）

29.3

Full-year

EPS（billion yen）

1.3

2020/3 2021/3 2022/3 2023/3 2024/3（％, times, turns）
ROE
Cost of Equity

13.5

15.7

19.6

14.5

8.1

7.5

8.1

10.6

1.9

1.9

2.2

2.6

2.6

2.4

1.9
2.0

2.7

3.1

3.8

3.7

2020/3 2021/3 2022/3 2023/3 2024/3

27

Management Topics
Representative Director,
President & COO

Ryoichi Kado

Summary of FY2024/3 Results
In the Electronic Component segment, the impact of ‘inventory adjustment by
Initialcustomers’ and ‘disappearance of spot demand’ was factored into our forecast forforecast
lower net sales and operating income.


FY2024/3
Summary
Results

Outlook for
FY2025/3



‘Spot demand’ made no contribution to earnings as expected.
The impact of inventory adjustment by customers on 1H results appeared lessthan initially expected, and both net sales and operating income returned
above the internal plan.
The impact of inventory adjustment by customers began on a full scale in 2H
and the upward swing gradually narrowed, but the full-year plan exceeded thetarget.
1Q

2Q

3Q

4Q

Operation margin

6.9 bn13.8 bn

20.4 bn

25.8 bn

Progress rate

28.0％

55.5％

82.0％

103.4％vs InternalPlan＋2.0 bn＋3.8 bn＋2.0 bn＋0.8 bn(billion yen)

Upside: Medium- to long-term market growth scenario, especially in the automotive
sector, remains unchanged.
Downside: Inventory adjustment by customers continue for some time, and a fullfledged recovery is expected in 2H of FY2025/3.
Salary increase: Decided to increase salaries to invest in human capital contributing tofuture growth
Even after factoring in the impact of 1.5 billion yen, we aim to return to an upward
trend of higher net sales and operating income.
29

Inventory Reduction
Inventory amount / Inventory turnover days
■Inventory amount (manufacturing business)■Inventory amount (trading company business)
140

900

JPY 78.8 bn

JPY 62.6 bn

84.0

27.1

JPY 70.5 bn

30.3

600

500

89.0

30.1

30.4
80.1

200

100

0

－Inventory turnover (trading company business)

JPY

JPY 63.5 bn
JPY 56.2 bn

27.0

76.7
78.1

27.0

46.1

34.3

43.3

31.4

43.7

32.6

35.4

40.8

40.8

2022/32022/62022/9

47.9

26.8

100

25.6

79.0

33.7

38.9

48.5

2022/12

46.6
37.3

43.5

23.4

29.3

2023/3120

66.4 bn
JPY

74.8

65.5

400

300

－Inventory turnover (manufacturing business)

JPY 71.2 bn
JPY 71.0 bn

800

700

－Inventory turnover (consolidated)

54.7 bn
70.9days

24.2

80

60

45.0
42.3
31.5

36.4

36.8days
36.0

40.8

26.6days

40

20

30.4
2023/62023/92023/122024/3030

『Medium-Term Management Plan 2024』
Progress of Management targets


The Company formulated the three-year Medium-Term Management Plan 2024 in November 2021. Excluding the
new M&A element, management targets for all the three KPIs of net sales, operating income, and ROE set
for the final year of the Plan were achieved in the fiscal year ended March 31, 2023, the first year of thePlan. Based on the results of the first year, the Company updated its earnings forecast for the final year, andpresented them as the “latest outlook.”The earnings forecast for the fiscal year ending March 31, 2025, announced at this time deviates from the “latest
outlook” partly due to unexpectedly prolonged inventory adjustment and impact of salary increases.
Accordingly, the Company has positioned earnings forecast as “commitment” and the latest outlook as“challenging targets,” and will work toward accomplishment of the Plan in the final year.
First-year
results

Initial plan
(Announcedon November 25, 2021)

JPY

Net Sales

FY2023/3

Latest outlook(Announced on May 11, 2023)

Second-year
results

Final-year
earnings forecast

FY2024/3

FY2025/3

750.0 bn

Organic growth :JPY 600.0 bn
Including new M&As:

JPY

608.0 bn

542.6 bn

JPY

25.8 bn

JPY[No change]

JPY

30.0 bn or higher

JPY

555.0 bn

JPY 150.0 bn

Operating
IncomeROE

JPY

20.0 bn
Stable8.5% or higher

JPY

32.2 bn

19.6％

JPY

stable10.0% or higher

14.5％

26.0 bn

11.5％
31

Medium-Term Management Plan 2024 - Progress ofManagement Measures Overall, we expect to achieve initial targets through efforts on key issues as per our basic policy.
key issues
Further
Reinforcement ofProfitability• Selection and concentration in
growth fields• Reinforcement and expansionof EMS business and overseas
business

Major outcome• Started operation of a new plant in
Mexico (April 2024)

Evaluation○• Established a special leave system for
Reinforcement ofManagement Base

• Reinforcement of corporate
governance• Efficient Group management• Investments in human capitalmale employees to take parental leave
Utilization rate of 73.7% (FY2024/3)• Group-wide salary increase decided○(March 2024)

Creation of New
Businesses• Initiatives in new fields• Promotion of open innovation
through venture investments• M&A efforts aimed at
discontinuous growth

Promotion of SDGs
Management*See the Progress of the Sustainability Medium- to Long-term Management Plan in thefollowing page.

• Investment in start-up companies
through CVC (5 cases in FY2023/3, 1
case in FY2024/3)△

32

Started a New Factory in Mexico to expand EMS Business In April 2024, the new Mexico plant began operation as initially planned.
 Aiming for ‘sales of 50 billion yen’ over the next 5 years to meet the growing production
demand that is expected for North and Latin American markets
 Launched "TAXAN-SWE MEXICO," a finished product assembly plant adjacent to the new plantin Mexico
We will establish an integrated production base that encompasses component molding, andsheet metal processing, in addition to circuit board assembly.

TAXAN MEXICO S.A. DE C.V.
Outline of the New Factory
Location：Parque Industrial
Millenium, Arroyos,
San Luis Potosí

Nomber of
Employees ：700（at start）
Land area ：80,000㎡
Floor area ：20,000㎡
Expected Investment Amount：total around 5 billion yen
over the next five years.
（includes the landpurchase and buildings）
Items produced
Assembly of automotive lighting
units and circuit boards for airconditioning equipment, etc.
Start of operation
Scheduled for April 2024

33

Medium- to long-term sustainability targets and major KPIs
Key themesE

Achievement of shift to100% renewable energy

Issues to address and issues to
examine• Adoption of renewable energy atdomestic sales offices• Adoption of renewable energy atdomestic manufacturing sites• Adoption of renewable energy atoverseas manufacturing sites

Shift to electricity for• Switch to electric vehicles for domestic
sales vehicles (EV, HV, PHV, FCV)
company-owned vehicles

2030: 100%

By 2024: Information
gathering/analysis and determinationof policy
・In-house power generation/external
procurement
・Solar panel/biomass power
generation/renewable energy
businesses

2030: 50%
2050: 100%

2024: 85% (78.5%)

2030: 100%

Diversity and humanresource management

Percentage of female newgraduates in general positions
2023: 30% (5.8%)
Percentage of women in
management positions
2024: 15% (13.3%)

Work–life management
and enhancement of
productivity• Enhancement of programs such as
childcare/family-care and telework• Acquisition of certification as a Healthand Productivity Management
Organization

2022: Implementation of review
2023: Certification

Restructuring the• Independent Outside Directors: atgovernance structure in
least 1/3
response to the revision of
the Corporate Governance • Establishment of Nomination and
Code and the reorganization
Compensation Committeeof Tokyo Stock Exchange

Further strengthening
the supervisory andoversight functions of
top management overbusiness execution• Diversification of the Board of
Directors• Full compliance with Corporate
Governance Code for Prime Market• Adoption of delegation-based
executive officer structure• Transition to structure of company
with committees

Long-term targets

2024: 40% (1%)• Ensuring diversity in core humanresources (Women, foreign
nationals, mid-career hires)• Initiatives to employ elderly workers
and persons with disabilities

S

G

Medium-term targets

2030: 30%
2050: 100%

Percentage of female
new graduates ingeneral positions
2028: 40%
Percentage of women in
management positions
2029: 17%2025: Certification byoutside party
2024 onward:
Continuation ofcertification

Performed in June 2021

By June 2022: Determination ofpolicyPerformed in November 2021

Setting of targets inline with next
Corporate Governance
Code revision

April 2022: Enactment
By March 2023: Determination ofpolicy*Numbers in parentheses represent values at the time of planning: Nov. 2021

34

Progress of medium- to long-term sustainability targets：
Environmental
Key themes

Issues to address and issues to examine

Main activities and progress in FY2022 / FY2023
FY2022: (1) Introduced 1.2% of total electricity
from renewable sources (2) Study on measures to‘achieve 40% in FY2024’• Adoption of renewable energy at domestic
sales offices

Achievement of shift
to 100% renewableenergyE• Adoption of renewable energy at domestic
manufacturing sites• Adoption of renewable energy at overseas
manufacturing sites

Shift to electricity forcompany-owned
vehicles• Switch to electric vehicles for domestic sales
vehicles (EV, HV, PHV, FCV)FY2023: (1) Introduced 5.1% of total electricity
from renewable sources (2) Decided to purchasenon-fossil certificates to achieve target of ‘40%
renewable energy in 2024’, and to quantify
greenhouse gas emissions and set a reduction
target in FY2024
FY2022：Calculated power generation to installsolar panels at sites in Aomori, Fukushima, andTottori. Started the detailed design.
FY2023:Installed solar power generation system in
Towada factory (December 2023) and Fukushima
factory (February 2024)
FY2022: Started to introduce renewable energyderived electricity using solar panels at sites in
China (Hubei) and Vietnam. Expected to cover
30%-50% of annual electricity usage at each site.
FY2023: Installed solar panels in Mexico newfactory (April 2024)
FY2022: The ratio of electric vehicles increased by
1.2pt year on year to 82.0% (as of March 31,2023).
FY2023: The ratio of electric vehicles increased by
3.0pt year on year (as of March 31, 2024)

35

Introduction of Renewable Energy Solar power generation facilities will be installed step by step to achieve 100% renewable energy.
 We continue to proactively install facilities for environmentally sustainable business growth.

KAGA EMS TOWADA CO.,LTD.

写真

Fukushima Factory

Generating capacity

Generating capacity

Annual energy
production

Annual energy
production

289,444kWh

Renewable energy
ratio

10～20％

写真

158,761kWh

Renewable energy
ratio

20～30％

Instruction period

Instruction period

December, 2023

February, 2024

Hubei Factory

Vietnam factory

写真

KAGA MICRO SOLUTION CO., LTD.

Generating capacity

Generating capacity

Annual energy
production

Annual energy
production

747,934kWh

Renewable energy
ratio

70～80％

写真

1,086,118kWh

Renewable energy
ratio

30～40％

Instruction period

Instruction period

November, 2022

April, 2022

Note: Renewable energy ratio indicates the projected percentage of renewable energy
in total consumption at each site.

36

Progress of medium- to long-term sustainability targets：Social
Key themes

Diversity andhuman resource
management

Issues to address and issues to examine

 Ensuring diversity in core humanresources (Women, foreign nationals,
mid-career hires) Percentage of female new graduates in general
positions based on hiring activities as per the
Action Plan
FY2022: 4 females out of 22 new graduates ingeneral positions, up 12.3pt year on year to 18.1%
FY2023: 5 females out of 23 new graduates ingeneral positions, up 3.6pt year on year to 21.7%.
Fell below the target of 30%, despite a 3.6-pt
year-on-year increase to 21.7%
 Discussions held within the group to improve
percentage of women in management positions
and set targets for the number of women in
management positions at each group company.
FY2022: 16.5%, up 3.2pt year on year
FY2023: 17.4%, up 0.9pt year on year

 Initiatives to employ elderly workers andpersons with disabilities

FY2022: Employment of persons with disabilities is100% of the legally mandated rate (as of March 31,2023)
FY2023: Employment of persons with disabilities is100% of the legally mandated rate (as of March 31,2024) Enhancement of programs such as
childcare/family-care and telework

FY2022: Revised regulations and rules to maketelework a permanent system
FY2023: The new rules took effect in April 2023.

 Acquisition of certification as a Healthand Productivity Management
Organization

FY2022: Certified in March 2023
FY2023: Certified for two consecutive years in
March 2024

S

Work–life
management
and enhancementof productivity

Main activities and progress in FY2022 / FY2023

37

Progress of medium- to long-term sustainability targets：
GovernanceKey themes

Restructuring thegovernance structure
in response to therevision of the
Corporate
Governance Codeand thereorganization ofTokyo Stock
Exchange

G

Issues to address and issues to examine Independent Outside Directors: at least
1/3
 Establishment of Nomination andCompensation Committee Diversification of the Board of Directors

 Full compliance with Corporate
Governance Code for Prime Market

Main activities and progress in FY2022 / FY2023
FY2022: Effective June 2023, 6 directors(including three outside directors), with a majorityof directors being outside directors. Establishedthe Nomination and Compensation Committee.
FY2023: Adopted a 6-director structure (including
3 outside directors) at the June 2023 generalshareholders' meeting
FY2022: Decided to nominate a female candidate
as a new outside auditor. Continued to work to
appoint a female director.
FY2023: Appointed a female outside director at
the June 2023 meeting. Deferred a proposal toappoint a female director at the June 2024
meeting
FY2022: TCFD-compliant information to bedisclosed from June 2022.
FY2023: CG Code not revised
FY2022: Implemented from April 2022.

Furtherstrengthening thesupervisory andoversight
functions of top
management overbusiness execution

 Adoption of delegation-based executive
officer structure Transition to structure of company withcommittees

FY2023: Decided to expand the membership of
the Group management committee to adelegation-based executive officer structure
effective in April 2024
FY2022: Continue the company-with-auditors
system, but shorten the term of directors from thecurrent 2 years to 1 year (in June 2023).
FY2023: Continued the company-with-auditors
system. Discussed to move to a company-withaudit and supervisory committee structure, given
the need for speedy management andappointment of female directors

38

ReferenceSegment disclosure associated with the Medium-Term
Management Plan
Continuous disclosure based on current segmentation according to legal financial accounting,along with voluntary disclosure based on segmentation in line with the new Medium-Term
Management Plan
Current segments

Segments in Medium-Term Management Plan

Legal financial accounting

Management Accounting

Components sales businessElectronic
components

 Sales of semiconductors
 Sales of general electronic
components
 Sales of various kinds ofdevices

EMS business Electronic equipment
manufacture contracting
services

Informationequipment

 Sales of PCs and PC
peripherals
 Sales of home electric
appliances and lighting
fixtures Sales of photograph andimaging products

Software

Others Production of CG video
and software
 Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods

Electronic
components

 Sales of semiconductors
 Sales of general electronic
components
 Sales of various devices

EMS

 Electronic equipment manufacture
contracting services
 Sales of PCs and PC peripherals
 Sales of home electric appliancesand lighting fixtures

CSI

 Sales of photograph and imaging
products
CSI: Consumer & System Integrator
 Production of CG video and software

Others Sales of amusement equipment
 Repair and support for electronics
equipment
 Sales of sports goods

40

Financial Highlights by Business Segment of
the Medium-Term Management Plan（million yen）

FY2022/3
Results
Electronic
Component

EMS

CSI

OthersTotal

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income

325,830
11,094

3.4%

6.2%

5.3%

6.4%

2,449

2.0%

663

5.6%

32,249

-9.5%

10.7%

14,228 3.9% -26.9%

28.2%-19.6%

2.2%

7,375 6.1% -22.9%

0.3%

2,924 6.6%
17,1704.2%

1,208 7.0%
542,697

608,064
4.2%

vsFY2022/3

44,305

15,739495,827
20,915

9,563

YoY

120,478

43,68012,552255

4.9%

149,862

39,616
2,085

19,475

FY2024/3
Results

360,743

398,783

117,828
7,356

FY2023/3
Results

5.3%

1.4%

11.8%

19.4%

40.2%

9.1%

36.8%

82.1% 372.4%-10.8%

9.5%

25,845 4.8% -19.9%

23.6%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

41

Financial Highlights by Business Segment of
the Medium-Term Management Plan (3months)（million yen）

Electronic
Component

EMS

CSI

OthersTotal

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income

FY2023/3
4Q Results

FY2024/3
3Q Results

FY2024/3
4Q Results

YoY

QoQ

95,56986,66889,705

-6.1%

3.5%

3,573

3.7%

41,251
1,637

4.0%

6.5%

5.8%

641

6.7%

1.0%

396

9.5%

4.0%

6,615

-3.4%

47.0%

1,002 7.1%

5.6%

56.2%

5,138

14.7%

22.5%

436 8.5% 924.3%

9.9%

136,239

131,4135.0%-33.7% -11.8%

1,433 5.2% -12.4% -20.3%
14,0384,193

155,843
6,242

1,798

2,472 2.8% -30.8% -34.1%
27,355

9,551

4,480
42

4.3%

31,00014,540949

3,753-12.6%

3.7%

5,353 3.9% -14.2% -19.1%

Note: 1. Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).
2. "x. x% " represents the profit margin.

42

Quarterly Net Sales Trends (3months)
Net Sales（million yen）

149,302 149,458
4,178
498
11,147

5,213
808
8,449

153,460155,843
6,004
768
9,542

6,647
922
14,540

Total

137,694 137,350
5,050
577
12,050

5,488
647
8,664

131,413
6,041
591
9,551

136,2396,660
750
14,038

YoY
QoQ

：
：

-19,604+4,825

Other
YoY

：

+12

QoQ

：

+618

Software
YoY
QoQ

133,477

134,986

137,144

133,733

120,015

122,549

115,229

114,788

：
：

-171
+159

Information equipment
YoY
QoQ

：
：

-501
+ 4,487

Electronic equipment
YoY
QoQ

：
：

-18,944- 440

FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results

43Quarterly Segment Income Trends (3months)
Segment Income（million yen）
Total
YoY
QoQ

9,820
249

564

8,541
408
129
400

Other

7,645
313
39
534

6,242
129
151
949

6,994

6,882
331
117
533

291
746

YoY ：
QoQ ：

6,724
4,972

5,922

5,862

436
149
641

Software

5,353

YoY
QoQ

1,002

Information equipment

495
107

YoY
QoQ

5,363
3,738

：
：

：
：

-44
-42

+52
+360

Electronic equipment
YoY
QoQ

-33

+366
+59

6,615

9,018
7,599

-889
-1,261：：：：-1,233-1,624-4FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results
Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

44

Net Sales by Region (3months)
Net Sales（million yen）
Total

149,302 149,458
5,849

11,22851,983

4,987

12,42253,761

YoY
QoQ

153,460 155,843
6,298

11,45650,090

6,649
8,571

137,694 137,350
6,662

6,399

10,67012,34540,66937,79649,562

131,413
6,334
11,44236,124：：

136,239
6,742

11,47836,002-19,604+4,825

Europe
YoY
QoQ

+92
+408

：
：

North America
YoY
QoQ

：
：

YoY
QoQ

：
：

+2,906+36

Asia

80,24078,286

85,614

91,05879,69180,80977,51282,015-13,560
-121

Japan
YoY
QoQ

：
：

-9,043+4,503

FY2023/3 FY2023/3 FY2023/3 FY2023/3 FY2024/3 FY2024/3 FY2024/3 FY2024/3
1Q Results 2Q Results 3Q Results 4Q Results 1Q Results 2Q Results 3Q Results 4Q Results

45

Exchange Rate/FOREX Sensitivity（Reference）

Effect of 1% change（Million Yen）

FY2023/3
Results

FY2024/3
Results

Net sales

OperatingincomeForex
Assumptionfor2025/3(yen)USD

135.47144.621,740

26145.00

RMB

19.48

19.82

328

22

19.50

THB

3.84

4.11

282

18

4.00

HKD

17.28

18.48

177

3

18.50

EUR

140.97156.8070155.00

（Yen）

（Yen）

46

“Everything we do isfor our customers
20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629
Contact: Investor Relations & Public Relations Department
TEL:+81-3-5657-0106
FAX:+81-3-3254-7133
E-mail： webmaster@taxan.co.jp
https://www.taxan.co.jp/en/■ Forward-looking statements in these materials are based on information available to management
at the time this report was prepared and assumptions that management believes are reasonable.
Actual results may differ significantly from these statements for a number of reasons.
■ Display method in this material
Number : Truncated less than the display unit.
Ratio: After calculation in yen units, Round down one digit of Display unit.