Consolidated Financial Results
for the First Quarter of theFiscal Year ending March 2024
KAGA ELECTRONICS CO., LTD.
TSE Prime Market 8154

August 3, 2023

Summary of Financial Results
for the First Quarter Ended June 30, 2023
 Net sales decreased by 11.6 billion yen or 7.8% year on year to 137.7 billion yen.
In the electronic components business, spot demand disappeared. Some
impact of customers’ inventory adjustments emerged. All other businesssegments achieved sales growth.

FY2024/3
1Q Results

 Operating income decreased by 2.8 billion yen or 28.8% year on year to 7.0
billion yen.
Excluding a decrease in gross profit due to the disappearance of spot
demand and provision for loss associated with a business partner’s filingfor insolvency, income level was virtually in line with the previous year.
 Net income decreased by 1.2 billion yen or 17.4% year on year to 5.8 billion yen.
Gain on sales of securities was posted as extraordinary income inconnection with sale of shares held for investment purposes.
 Year-on-year decrease in net sales and income notwithstanding, 1Q got off to agood start, with performance exceeding the internal plan.

FY2024/3
earnings
Forecasts

 No revision made to the outlook based on careful consideration of future demand
trends as well as uncertain management environment including concerns about
rising inflation and prolonged geopolitical risks.
Earnings revisions to be determined appropriately with due consideration
to progress in 2Q.
Previous forecasts
Progress rate

Net Sales

Operating Income

Net Income

550.0 billion yen

25.0 billion yen

18.0 billion yen

25.0％

28.0％

32.0％
1

Financial Highlights for FY2024/3 1Q（million yen）FY2023/3
1Q Results

FY2024/3
1Q Results

149,302

Gross Profit

19,83813.3%

17,553

SG&A

10,018

6.7%

Operatiing Income

9,820

Ordinary income
Profit attributable toowners of parent
EPS (yen)Exchange Rateyen/USD(Announced on May11, 2023)

137,694

Net sales

FY2024/3
Forecasts

YoY

Progress
rate

-7.8%

550,000

12.7%-11.5%－－－

10,559

7.7%

5.4%

－－－

6.6%

6,994

5.1%

-28.8%

25,000

4.5%

28.0%

9,858

6.6%

6,909

5.0%

-29.9%

25,000

4.5%

27.6%

6,984

4.7%

5,767

4.2%

-17.4%

18,000

3.3%

32.0%

266.10－219.63－－685.42－－129.57－137.37－－135.00－－25.0%

Note: 1. The effect of exchange rates on the conversion into yen is approximately 3,789 million yen on net sales
and 136 million yen on operating income.
2. "x. x% " represents the profit margin.

2

Results by Business Segment for FY2024/3 1Q（million yen）

FY2023/3
1Q Results
Electronic
Component
Information
Equipment

Software

OthersTotalNet sales
Segment income
Net sales

9,018

Net sales

498

Segment income-33Net sales
Segment income

5.1%

-6.7%

4.9%

746

6.2%

-4

-0.8%

5,050
6.0%

291

5.8%

137,694

149,302
9,820

5,922

577

4,178
249

(Announced on May11, 2023)

12,05011,147564

Segment income

6.8%

6.6%

6,994

FY2024/3
Forecasts

YoY

120,015

133,477

Segment income

Net sales

FY2024/3
1Q Results

5.1%-10.1%

471,500-34.3%

20,7008.1%

45,000

32.2%

2,500

15.8%

4,500

－300

20.9%

29,000

17.0%

1,500

-7.8%

550,000-28.8%

25,000Progress
rate
25.5%

4.4%

28.6%
26.8%5.6%

29.9%
12.8%

6.7%

－17.4%

5.2%

19.4%
25.0%

4.5%

28.0%

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.

4

Results by Company for FY2024/3 1Q（million yen）

FY2022/3
1Q Results
KagaElectronics

Kaga FEI

YoY

78,615

60,115Gross Profit

9,588

16.0%

13,04015.5%

12,146

15.5%

-6.9%

Operating income

3,719

6.2%

6,251

7.4%

5,663

7.2%

-9.4%

84,339-6.8%

48,135Net sales

32,145Gross Profit

3,009

9.4%

5,784

12.1%

4,379

9.1%

-24.3%

346

1.1%

3,040

6.4%

797

1.7%

-73.8%

47,752

0.8%

10,943

Net sales

13,688Gross Profit

1,079

7.9%

986

5.7%

1,014

9.3%

2.8%

507

3.7%

462

2.7%

485

4.4%

5.0%

Operating income

Total

FY2024/3
1Q Results

Net sales

Operating income

Excel

FY2023/3
1Q Results

17,209-36.4%

137,694

Net sales

105,949

Gross Profit

13,55012.8%

19,83813.3%

17,553

12.7%-11.5%

4,452

4.2%

9,820

6.6%6,994

5.1%-28.8%

Operating income

149,302-7.8%

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.

4

Effect of M&A for FY2024/3 1Q（million yen）

Net Sales

Gross profit / Gross profit margin

Kaga Electronics posted a sales decrease due partly to thedisappearance of spot demand. Kaga FEI enjoyed robust sales ofSocionext products. Excel saw a decrease in sales to a major customer.
149,302+382-5,724

137,694-6,266

Kaga Electronics and Kaga FEI both recorded a gross profit
decrease due to lower sales. Excel secured last year’s profit
level with an improved sales mix.
19,83817,553+27-894-1,405
15.5%
15.5%
12.7%
12.1%

13.3%

9.1%

9.3%

5.7%
2023/3
1Q

KagaElectronics

Kaga FEI

Excel

FY2024/3

2024/3
1Q

SG&A / SG&A ratio
Kaga FEI’s expenses increased due partly to the provision of allowancefor doubtful accounts and allocation of head office expenses.
+543

10,0188.1%
5.6%+2-5

6.7%

8.7%

10,559
7.7%

6.6%
4.5%

Kaga
Electronics

Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
1Q

Kaga FEI

Excel

FY2024/3

2024/3
1Q

Operating income / Operating income
Operating income / Operating income margin
marjinOperating Income decreased due to the disappearance of
spot demand and provision for allowance for doubtful accounts.
9,820
7.4%
6.4%

-587

6.6%

7.2%

2.7%

2.9%
2023/3
1Q

2023/3
1Q

2023/3
1Q-2,243

+23
4.4%

6,994
5.1%

1.7%
Kaga
Electronics

Kaga FEI

Excel

FY2024/3

2024/3
1QNote :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 12million yen, and operating income came to 47million yen.

5

Financial Highlights: Electronic Component Segment
Net sales/Segment income

YoY/ Net Sales/ Segment income（million yen）
180 000

180 00160 000

140 000

 Segment income-13,461million yen 10.1％Down-3,095million yen 34.3％Down

160 00133,477

140 00120,015120 000

100 000

 Net Sales120 00

9,018

100 00800 00

800 0

5,922
600 00

600 0

6.8%
4.9%

400 00200 00・ Sales declined in the component sales business due topartial emergence of the impact of customers’ inventory
adjustments, in addition to the disappearance of spot
demand that had contributed to earnings until the previous
fiscal year, given easing of supply shortages ofsemiconductors and electronic components.
・ In the EMS business, sales in the automotive sector
increased due to improved supply/demand ofsemiconductors and electronic components, while sales inapplications related to medical and industrial equipment
decreased due partly to inventory adjustments at somecustomers.

400 0

200 000

FY2023/3
1Q Results

FY2024/3
1Q Results
Note: "x.x% " represents the profit margin.

6

Financial Highlights: Information Equipment Segment
Net sales/Segment income

YoY Net Sales/ Net Sales（million yen）
180 00200 0/

 Segment income

Segment income+902million yen 8.1％ Up+181million yen 32.2％ Up

180 0

160 00160 0

140 00120 0012,05011,147140 0120 0100 00

100 0746

800

・Amid the season of high demand related to newenrollment and promotion, sales of PCs to educational
institutions were strong, with increase in the number ofaccounts.
・Sales of security software and PC peripheral products
also remained solid.
・The LED installation business saw steady progress oflarge-scale projects that the Group has been pushing
forward on a full scale since the previous fiscal year.

800 0564

600

600 05.1%

6.2%

400

400 0200

200 00

FY2023/3
1Q Results

FY2024/3
1Q Results
Note: “x.x% " represents the profit margin.

7

Factors of Increase / Decrease in Operating Income
YoY
Effect ofexchange
rates +336

9,820

vs Internal Plan（million yen）

+29（million yen）

-2,313(-307)
Sales volume
Sales mix

Spot sales
Effect ofexchange
rates +200-541(-341)

SG&A

6,994

+136
Effect ofExchange
Rates
（net）

+0+2,135

-41
SG&A

4,900

Spot sales

+0

6,994

Effect ofExchange
Rates
（net）

Sales volume
Sales mix

Including 412 in provision for loss associatedwith a business partner’s filing for insolvency

Including 412 in provision for loss associatedwith a business partner’s filing for insolvency

Upside: 2,094

Income decrease: 2,826
FY2023/3
1Q Results

FY2024/3
1Q Results

FY2024/3
1Q Plan

FY2024/3
1Q Results8Balance Sheet Main Items
Total assets

272,139

286,217292,822

Total liabilities and net assets（million yen）

（million yen）

+6,605272,139

286,217

156,479

233,984

245,572

254,874+9,30240,6452022/32023/337,948-2,6962023/6+6,605

156,839

Total liabilities

135,983

Total net assets+359

166,339
Current assets

105,800
38,155292,822

129,737+6,246

Current assets
2022/32023/32023/69

Balance Sheet Main Items
Inventories
120 ,0 00

Accounts receivable/Accounts payable（ million Yen, day）

46.1
100 ,0 00

33.7

46.6

（ million Yen, day）
90.0

200 ,0 00

Inventory turnover

89.0
77.5

50.0

76.6

70.0

A/R turnover

68.6

70,55780,00 00.0

Inventories+14,352

120,948

62,60756,20560,00 055.8

150 ,0 00

129,099

61.5

A/P turnover
50.0

115,890-13,208

Notes and A/R
30.0

-50.0

100 ,0 00

86,493

79,232

88,374+9,141

Notes and A/P
10.0-100.040,00 0-10.050,00 0-150.0
20,00 0-30.0

0-200.02022/32023/32023/60-50.02022/32023/32023/6

Note：Inventory turnover ＝ Inventories ÷ Net Sales × 91（day） Notes：・Notes and A/R are amounts including Electronically recorded monetary claims-operating
・Notes and A/P are amounts including Electronically recorded obligations - operating
・A/R turnover ＝ Notes and A/R ÷ Net sales × 91（day）
・A/P turnover ＝ Notes and A/P ÷ Total purchase of goods × 91（day）

10Balance Sheet Main Items
Cash and Deposits/Interest Bearing
Cash and Deposits/Interest Bearing Debt
Debt
0.48

0.32

0.31

-0.08

-0.12

90,00 00.10
80,00 0（million yen, times）
0.50

0.00

D/E ratio
Net D/E ratio

70,00 059,358-0.50

Cash and deposits+6,75760,00 051,17152,60050,00 041,051

41,938-1.00

42,597

Interest bearing debts+658

40,00 0-1.50

30,00 0-2.00

20,00 0-2.50

10,00 00-3.00

2022/32023/32023/6

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

Shareholder’s equity11

Forecasts for FY2024/3

Forecasts for FY2024/3（million yen）

FY2024/3
Forecasts

FY2024/3
1Q Results
Net sales(Announced on May11, 2023)

Progressrate

550,000

608,064-9.5%

Operatiing Income

32,2495.1%

25,0004.5%-22.5%

Ordinary income

32,7395.4%

25,0004.5%-23.6%

Profit attributable toowners of parent

23,0703.8%

18,0003.3%-22.0%EPS (yen)

878.65－685.42

－－ROE

19.6%

－

13.3%

－-6.3pt

220.00－

Annual dividend (yen)220.00Ordinary dividend
140.00Commemorative dividend 10.00
Extraordinary dividend
70.00

220.00Ordinary dividend

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

13

Forecasts by Business Segment for FY2024/3（million yen）

FY2024/3
Forecasts

FY2023/3
Results
Net sales
Segment income

28,314

Information
Equipment

Net sales

43,680Software

Others

Total

Segment income

2,449

Net sales

2,998

Segment income
Net sales
Segment income
Net sales
Segment income(Announced on May11, 2023)

471,500

539,342

ElectronicComponent

286

5.2%

5.6%

4.4%

2,500

9.6%

300

5.6%

1,500

6.7%25,000

4.6%
31.6%

5.2%

550,000
5.3%

2.1%
50.1%

29,0005.0%-26.9%
3.0%

4,500

608,064
32,24920,700-12.6%

45,00022,044
1,101

YoY

36.1%
-9.5%

4.5%

-22.5%

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.

14

ReferenceSegment disclosure associated with the Medium-Term
Management Plan

ReferenceContinuous 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 businessElectroniccomponents

 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 videoand software
 Sales of amusement
equipment Repair and support forelectronics equipment
 Sales of sports goods

Electroniccomponents

 Sales of semiconductors
 Sales of general electroniccomponents
 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

17Financial Highlights by Business Segment of
the Medium-Term Management Plan

Reference（million yen）

FY2022/3
1Q Results
ElectronicComponent

EMS

CSIOthers

Total

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

FY2023/3
1Q Results

66,124
1,775

2.7%

7.8%

5.3%

7.7%

564

0.5%

79

5.1%

9,820

2,433

746

81

2.8%

7.7%

6,994

-6.8%
8.1%

6.2%

32.2%
32.1%

2.2%

137,6946.6%-43.5%
-6.2%

3,754

149,302
4.2%

4.1%

12,0502,842

105,949
4,4522,612

3,695-11.2%

31,773

11,147

2,854
14

6.4%

33,867

10,636
568

6,541

YoY

90,115

101,444

26,3342,060

FY2024/3
1Q Results

1.5%
-7.8%

5.1%

-28.8%

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.

18

Quarterly Net Sales Trends
Net Sales（million yen）

149,302
4,178
498
11,147

149,458
5,213
808
8,449

153,460
6,004
768
9,542

155,843
6,647

922
14,540137,694
5,050
577
12,050

Total
YoY
QoQ

： -11,608： -18,148

Other
YoY：+872

QoQ：-1,596

Software133,477

134,986

137,144

YoY
QoQ

133,733

120,015：：+78-345

Information equipment
YoY
QoQ：：+902-2,489

Electronic equipment
YoY
QoQ

FY2023/3
1Q Results

FY2023/3
2Q Results

FY2023/3
3Q Results

FY2023/3
4Q Results： -13,461： -13,717

FY2024/3
1Q Results

19Quarterly Segment Income Trends
Segment Income（million yen）

9,820

Total

249
564

YoY
QoQ

8,541
408
129
400

7,64531339534

Other

6,242
129
151

6,994
291746

9,018+42+161

Information equipment：：+181-202

Electronic equipment

6,724
4,972

5,922

YoY
QoQ

：：

YoY
QoQ

：
：

-3,095+950

Software+28-156-4-33
FY2023/3
1Q Results

YoY ：
QoQ ：

YoY
QoQ

949

7,599-2,826+751：：

FY2023/3
2Q Results

FY2023/3
3Q Results

FY2023/3
4Q Results

FY2024/3
1Q Results

Note: Figures of each segment income are not inter-segment adjusted.
Total amount is inter-segment adjusted (operating income).

20

Net Sales by Region
Net Sales（million yen）

149,302

149,458

5,849

4,987

11,22851,983

12,42253,761

153,460
6,298
11,45650,090155,843
6,649
8,571

Total

137,694
6,662
10,67049,562： -11,608： -18,148

YoY
QoQ

EuropeYoY
QoQ

40,669：：+812+12

North America
YoY
QoQ

：-557
： +2,099

YoY
QoQ

：：

Asia

80,24078,286

85,614

91,05879,691

Japan
YoY
QoQ

FY2023/3
1Q Results

FY2023/3
2Q Results

FY2023/3
3Q Results

FY2023/3
4Q Results-11,314-8,893：-549： -11,367

FY2024/3
1Q Results

20

Exchange Rate/FOREX Sensitivity（Reference）

Effect of 1% change（Million Yen）

OperatingincomeForex
Assumption
for2024/3(yen)579

11135.00

19.34

78

7

19.50

3.77

3.99

79

5

3.80

HKD

16.51

17.52

46

1

17.00

EUR

138.12149.47

20140.00

FY2023/3
1Q Results（Yen）

FY2024/3
1Q Results（Yen）

Net sales

USD

129.57137.37

RMB

18.29

THB22

“Everything we do isfor our customers
20 Kandamatsunagacho, Chiyoda-ku, Tokyo 101-8629
Contact: Investor Relations & Public Relations Department
TEL:+81-3-5657-0106
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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.