Report on Financial Result
First Quarter of Fiscal Year 2013
2013
April to Jun 2012

August.9,2012
KAGA ELECTRONICS CO., LTD. (TSE 1st section, 8154)
3-12-8 Sotokannda, Chiyoda-ku, Tokyo 101-8629
Tel: (03) 4455-3131 Fax: (03) 3254-7132
URL：http://www.taxan.co.jp

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Financial Highlights
First Quarter of Fiscal Year 2013
April to Jun 2012
(Consolidated First Quarter)2© 20102012 KAGAKAGA ELECTRONICS
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■ Financial Highlights of First Quarter Ended December 2013
Consolidated Statement of Income
1Q FY3/2012
AmountPct.
Net Sales
55,001
Cost of sales
47,954
平成18年3月期
Gross profit
7,046
SG&A expenses
6,799
Operating income
247
Non-operating income
200
Non-operating expenses
75
Ordinary income
372
Extraordinary items-61
Income before income taxaes

Income taxes
Income taxes-beferred
Minority interests
Net income

311
223
-33
6
114

（ million yen ）1Q FY3/2013
AmountPct.

100.0%
49,68687.2%
43,545平成19年3月期（予）
12.8%
6,141
12.4%
6,431
0.4%
-289
0.4%
185
0.1%
177
0.7%
-282
-0.1%
-83
0.6%
-365
0.4%
195
-0.06%
-178
0.01%
-32
0.2%
-350

100.0%
87.6%
12.4%
12.9%
-0.6%
0.4%
0.4%
-0.6%
-0.2%
-0.7%
0.4%
-0.36%-0.06%-0.7%

Changes
AmonutPct.
-5,315-4,409
-905
-368
-536
-15
102
-654
-22
-676
-28
-145
-38
-464

-9.7%
-9.2%
-12.8%-5.4%-217.0%-7.5%
136.0%-175.8%36.1%-217.4%-12.6%
439.4%-633.3%-407.0%3© 20102012 KAGAKAGA ELECTRONICS
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Comparison of Consolidated Sales by Business Category（ million yen ）1Q FY3/2012
Net sales
Segment income

1Q FY3/2013
Net sales

Pct.

Segment income

55,001
Pct.

AmountPct.

39,42971.7%

37,36675.2%-2,063

-5.2%

184

74.5%

101

-34.9%-83-45.1%

Informationequipment

12,546

22.8%

9,180

18.5%

-3,366-26.8%

54

21.9%

-193

66.8%

-247 -457.4%

717

1.3%

636

1.3%

-81

35

14.2%

-169

58.5%

-204 -582.9%

2,308

4.2%

2,503

5.0%

195

13
55,001247

5.3%
100.0%
100.0%-21
49,686-289

7.3%
100.0%
100.0%

Other
Total

Segment income

Changes

Electtronic
components

Software（ million yen ）Net sales

49,686247▲289-11.3%
8.4%-34 -261.5%-5,315-9.7%-536 -217.0%* 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 otherproducts, electronic manufacturing service (EMS), and other activities)
Orders were higher for in-vehicle electronic components and semiconductors as well as in the EMS business overseas for air conditioning equipment andother applications. But orders for electronic components and semiconductors decreased in Japan for amusement equipment and overseas for digitalconsumer electronics products made by Japanese companies. The result was segment sales of 37,366 million yen.
■Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, and other products)
Although there were activities to increase sales of PCs, PC peripherals and other existing products, segment sales were held down by the negative effects ofchanges to sales and distribution channels for sales of memory-card products to consumer electronics and appliance chain stores and specialty stores. The
result was segment sales of 9,180 million yen.

4
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【Reference】Comparison of Consolidated Sales by Business Category（ million yen ）（ million yen ）55,001

Changes

1Q FY3/2012

1Q FY3/2013

AmountPct.

AmountInformation equipment

12,200

22.2%

8,101

16.3%

-4,099-33.6%

EMS

13,35524.3%

14,897

30.0%

1,541

11.5%

Semiconductors

15,24427.7%

12,26324.7%-2,981-19.6%

Generalelectronic
components

7,254

13.2%

6,067

12.2%

-1,186-16.4%

Others

6,945

12.6%

8,356

16.8%

1,411

20.3%

Total

55,001100.0%

49,686100.0%-5,314

-9.7%

Pct.

Amount49,686

Pct.

Summary■「Information equipment sales: Down 4,099 million yen (-33.6%)
Sales decreased to 8,101 million yen mainly because of changes to memory-card product sales and distribution channels for large andsmall stores and lower demand for terrestrial digital tuners, compact digital cameras and other products.
■EMS sales: Up 1,541 million yen (+11.5%)
Sales increased to 14,897 million yen because of growth in EMS orders, including higher orders overseas from Japanese manufacturers of
air conditioning equipment.
■Semiconductor sales: Down 2,981 million yen (-19.6%)
Sales decreased to 12,263 million yen mainly because of a downturn in orders in Japan for semiconductors used in amusement equipment.
■General electronic components sales: Down 1,186 million yen (-16.4%)
Sales decreased to 6,067 million yen because of lower orders for electronic components used by the overseas factories of Japanese manufacturers ofdigital consumer electronics products.

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Selling, General and Administrative Expenses（ million yen ）（ million yen ）1Q FY3/2012
AmountPacking and freight
631
R&D
132
Others224
Total selling expenses
987
Depreciations
162
Rent
492
Personnel expenses
3,734
Others1,423
Total administrative
5,811
Total SG&A expenses
6,799

1Q FY3/2013

Pct.
Amount
9.3%
546
1.9%
70
3.3%
205
14.5%
821
2.4%
148
7.2%
516
54.9%
3,596
20.9%
1,343
85.5%
5,603
100.0%
6,426

Changes

Pct.
Amount
8.5%
-85
1.1%
-62
3.2%
-19
12.8%
-166
2.3%
-14
8.0%
24
56.0%
-138
20.9%
-80
87.2%
-208
100.0%
-373

6,799

6,426

Pct.
-13.5%-47.0%-8.5%-16.8%
-8.6%
4.9%
-3.7%
-5.6%
-3.6%
-5.5%

主な増減のポイント■Selling, general and administrative expenses
Personnel expenses: Down 138 million yen
Group workforce: Down 528 (from 5,770 to 5,242)
Reason for the workforce decline: Decrease of 531 at overseas EMS factories (China, Thailand, Malaysia, Czech Republic)*Down 215 at DONGGUAN POWERTEK, 156 at KAGA ELECTRONICS (THAILAND), 97 at KAGA (SHENZHEN),
50 at KAGA COMPONENTS (MALAYSIA), 13 at KD TEC, etc.

6
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Financial Highlights
Consolidated Balance Sheets

Current assets
Cash and cash equivalents
Notes and account receivable-trade

Merchandize and f inished goods

Goods in progress
Raw materials and other supplies

OthersFixed assets
Property , plant and equipment

Intangible assets
Investments and other assets

Total assets（ million yen ）End of
End ofChangeFY3/2012 FY3/2012
59,47454,489-4,98541,74835,989-5,75911,084
12,860
1,776
6,642
5,640
-1,002
7,303
6,631
-672
2,833
2,384
-449
4,470
4,247
-223
66,777
61,120-5,6570
Paid-in capital
12,133
12,1330Capital surplus
13,912
13,9120489
Retained earnings
25,03824,274-764
318
Treasury stock-1,333-1,3330-73
Valuation and translation adjustment-3,341-3,828-487
243
Minority interests
1,526
1,448
-78
Total net assets
47,936
46,607-1,329Total liabilities and net assets
114,714
107,727-6,987-6,987

End of
End ofChangeFY3/2012 FY6/2012
94,37486,898-7,476 Current liabilities
9,775
9,437
-338 Notes and accounts payable-trade
Short-term bank loans
55,97948,296-7,683
Others17,104
17,335231334
788
454 Long-term liabilities
Long-term bank loans
4,115
4,462
347
Others
7,067
6,580
-487
Total liabilities
Shareholders' equity
20,340
9,487
2,245
8,607

20,829
9,805
2,172
8,850

114,714

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Forecast for FY3/20138© 20102012 KAGAKAGA ELECTRONICS
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■Forecast for FY3/2013
Consolidated Statement of income（ million yen ）Net sales
Cost of sales
Gross profit
SG&A expenses
Operating income
Non-operating income
Ordiary income
Net income

FY3/2012(actual)

FY3/2013(plan)

AmountAmount

平成18年3月期

229,856

Pct.

平成19年3月期（予）Pct.

ChangeChangePct.change

100.0%

230,000

100.0%

144

0.1%

201,35087.6%

201,500

87.6%

150

0.1%

28,50612.4%

28,500

12.4%

-6

0.0%

26,43811.5%

27,000

11.7%

562

2.1%

2,067

0.9%

1,500

0.7%

-567

-27.4%

502

0.2%

300

0.1%

-202

-40.2%

2,569

1.1%

1,800

0.8%

-769

-29.9%

914

0.5%

1,000

0.5%

86

9.4%

9
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Forecast for FY3/2013(Consolidated Forecast by Segment)（ million yen ）FY3/2012
Net sales
Segment income

FY3/2013(F)Net sales

Pct.

Segment income

230,000
Pct.

AmountPct.

166,46872.4%

168,400

73.2%

1,932

1.2%

2,021

97.8%

1,500

100.0%-521-25.8%

Informationequipment

49,36021.5%

47,10020.5%-2,260

-4.6%

-533

-25.8%-250-16.7%

283-53.1%

3,854

1.7%

3,900

1.7%

46

1.2%

402

19.4%

200

13.3%

-202

-50.2%

10,173

4.4%

10,600

4.6%

427

4.2%

319
229,856
2,067

15.4%
100.0%
100.0%

50
230,000
1,500

3.3%
100.0%
100.0%

-269
144
-567

-84.3%
0.1%-27.4%

Other
Total

Segment income

Changes

Electtronic
components

Software（ million yen ）Net sales

229,856

2,067

1,500

Summary■Electronic components (Development, manufacture and sale of semiconductors, general electronic components and otherproducts, electronic manufacturing service (EMS), and other activities)
Although the EMS business is growing, sales are expected to fall below the initial forecast because of declines in orders for electronic
components and semiconductors used in amusement equipment in Japan and by Japanese manufacturers of digital consumer
electronics products overseas.
■Information equipment (Sales of PCs, PC peripherals, photograph and imaging products, original-brand products, and other products)
Sales are expected to be less than the initial forecast due to a decline in the volume of PCs, compact digital cameras and other existing products
handled.

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【Reference】Forecast for FY3/2013(Net Sales by Product)（ million yen ）FY3/2012
Net sales

FY3/2013(F)Pct.

Net sales

ChangesPct.

（ million yen ）229,856

ChangePct.

Informationequipment

44,276

19.3%

49,100

21.3%

4,824

10.9%

EMS

62,65527.3%

75,80033.0% 13,145

21.0%

Semiconductors

59,30325.8%

57,80025.1%-1,503-2.5%

General electronic
components

30,35613.2%

21,3009.3%-9,056-29.8%

Others33,26414.5%

26,00011.3%-7,264-21.8%

Total

229,856

100.0%

230,000

100.0%

144

0.1%

230,000

Summary■Information equipment：Sales up 4,824 million yen (+10.9%) due to higher sales of computers and peripherals■「ＥＭＳ」：Sales up 13,145 million yen (+21%) due to higher overseas EMS sales■Semiconductors： Sales down 1,503 million yen mainly due to a decline in orders for devices used in digital consumer electronics and amusement equipment■ General electronic components ： Sales down 9,056 million yen (-29.8%) mainly due to a decline in orders for components used in digital consumer
electronics and amusement equipment■ Others ： Sales down 7,264 million yen (-21.8%) mainly due to lower sales from the production of computer graphics and application software

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Forecast for FY3/2013
Selling,General and Administrative Expenses（ million yen ）FY3/2012(actual)
AmountPct.
Packing and freight

R&D
OthersTotal selling expenses

Depreciations
Rent
Personnel expenses

OthersTotal administrative expenses

Total SG&A expenses

2,450
576
1,159
4,185
731
2,025
14,2495,247
22,252
26,438

9.3%
2.2%
4.4%
15.8%
2.8%
7.7%
53.9%
19.8%
84.2%
100.0%

FY3/2013(plan)
Amount
Pct.
2,500
477
1,370
4,347
580
2,098
14,725
5,249
22,65227,000

9.3%
1.8%
5.1%
16.1%
2.1%
7.8%
54.5%
19.4%
83.9%
100.0%

Changes（ million yen ）26,43827,000

50
-99
211
162
-151
73
476
2
400
562

Summary■Selling, general and administrative expenses
Forecast year-on-year increase of 476 million yen in personnel expenses primarily because of workforce growth and higher base salaries(Number of employees up by 59 from 5,239 at end of FY3/12 to 5,298 at start of FY3/13)

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Topics

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Topics (1) Growth of the Semiconductor BusinessToshiba semiconductor sales agent AD DEVICE
absorbs AS Device
AD DEVICE, a KAGA ELECTRONICS Group member that is sales agent for Toshibasemiconductors, has absorbed AS Device. AS Device handles semiconductor, liquid
crystal and storage products made by Toshiba and has much expertise in the in-vehicle
electronics market.

By seamlessly integrating workforces, functions and sales channels of the twocompanies, AD DEVICE aims to use this merger to strengthen its activities in the invehicle electronics market. The goal is to raise total sales to 25 billion yen by 2015.
Name
CEO
Head office
設立年月日
Activities

Capital
Employee

AD DEVICE CORPORATION
Osamu Ishida
Chiyoda-ku, Tokyo
April 1997
Sale of Toshiba semiconductor
and storage products andelectronic components
301 million yen
66

AS Device Co., Ltd.
Takeaki Fukuyama
Kawasaki, Kanagawa
April 2007
Sale of Toshiba semiconductor, liquid
crystal and storage products to theautomobile industry
100 million yen
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Topics (2) A New Initiative in the Environmental Sector
KAGA ELECTRONICS participates in next-generation energy business of theJapanese Ministry of Economy, Trade and Industry (METI)KAGA ELECTRONICS was selected as one of 15 companies to participate in a fiscal 2012next-generation energy technology demonstration project overseen by METI.
➢The project will take place in Sasebo, Nagasaki prefecture and entail expenditures of about¥1.5 billion over a three-year period. The site is a theme park called Huis Ten Bosch.
➢KAGA ELECTRONICS is responsible for tests for (1) an “electricity use visualization” system in the
hotel area that uses a variety of sensors and (2) the provision of people tracking data by combining
motion sensors, door sensors and other devices.
Huis Ten Bosch is a theme parkand resort that recreates the
Netherlands

The systems handled by KAGA ELECTRONICS

The objective is to build anelectricity use visualization
system and then use thatknow-how in other businesses
to achieve more growth in theenvironmental business.

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Topics (3) Sales Activities and Studies at New Overseas Bases
Many activities under way for new business activities in the ASEAN region
KAGA DEVICES INDIA
Established July 2011
Conducting sales promotion
activities and building relationships
based on trust to prepare for the
full-scale use of Mitsubishi Electric
power semiconductor devices by air
conditioner manufacturers in India

KAGA AMUSEMENT MALAYSIA
Established December 2011
Preparing for joint operations associatedwith opening in Thailand of amusement
facilities by Japanese companies that are
major customers of KAGA ELECTRONICS;
this company is also considering theoperation of amusement facilities in
Malaysia on its own

KAGA (SINGAPORE)
Philippines Office (Manila)
Opened March 2012
Marketing activities for kitting services
for parts used by Japanesemanufacturers of automotive devices andother products; contacting Japanesecompanies in the Philippines; marketing
activities for establishing supply chain
management extending from the sale ofparts through EMS

KAGA (SINGAPORE)
Indonesia Office (Jakarta)
Opened February 2012
Marketing activities for kitting
services for Japanese manufacturersof electronic musical instruments,
audio devices and other products;
marketing activities to establish
relationships with new customers,
both Japanese companies inIndonesia and Indonesian companies

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Contact: Public Relations Department〒101-8629
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