January 28, 2011

Summary of Consolidated Financial Results
For the Third Quarter Ended December 2010
Name of Company:
Stock Code:
Stock Exchange Listing:
URL:
Representative
Title:
Name:
Contact Person
Title:Name:
Phone:
Date of quarterly securities report:
Date of commencement of dividend payment (tentative):
Quarterly earnings supplementary explanatory documents:
Quarterly earnings presentation:

KAGA ELECTRONICS CO., LTD.
8154
Tokyo Stock Exchange, First Section
http://www.taxan.co.jp/
President & COO
Tomohisa Tsukamoto
Senior Managing Director, Finance & Administration Headquarters
Waichiro Shimoyama+81-(0)3-4455-3111
February10, 2011
NoneNone(Yen in millions, rounded down)

1. Financial results for the third quarter ended December 2010 (April 1, 2010 – December 31, 2010)(1) Result of operations (Consolidated, year-to-date)(Percentage figures represent year on year changes)

Third quarter ended December 2010
Third quarter ended December 2009

Net sales
Operating income
MillionYoY Million
YoY
yen Change %yen Change %177,535
1.5
3,208
263.2
174,926(17.2)
883(78.0)Net income per share

Net income
MillionYoY
yen Change %1,431(792)-Net income per share fully dilutedYen-Yen
51.86(28.71)

Third quarter ended December 2010
Third quarter ended December 2009

Ordinary income
MillionYoY
yen Change %
3,130
295.7
791
(77.5)(2) Financial Position (Consolidated)
Total assets
Third quarter ended December 2010

Fiscal year ended March 2010
Notes: Shareholders’ equity
As of December 31, 2010 46,282 million yen

2.

Net assets

Million yen
117,318

Equity ratio
%
39.5

Yen
1,677.04

48,55341.1

1,697.27

113,962

As of March 31, 2010

46,841 million yenDividends
End of 1Q
Yen-

End of 2Q
Yen
15.00
15.00

Dividend per share
End of 3Q
Yen-

Fiscal year ended March 2010
Fiscal year ending March 2011
Fiscal year ending March 2011 (est.)
Note: Change in the estimation of dividend for the fiscal year in this period: None3.

Net assets per share

Million yen
47,993End of FY
Yen
15.00

Full year
Yen
30.00

15.00

30.00

-

Forecast for the fiscal year ending March 2011 (Consolidated, April 1, 2010 to March 31, 2011)
Net sales

Operating income

Million yen% Million yen
Full year
230,000(3.9)
3,300Note: Change in the forecast made in this period: Yes

Ordinary income% Million yen
108.5
3,200

Net income% Million yen
149.9
1,800%-Net income
per shareYen
65.22

4.

Others (Please refer to page 1 “Others” for details)(1) Changes in significant subsidiaries: None
Note: This section shows whether or not there is a change in Specified Subsidiaries that led to the change of theconsolidation scope during the current quarter.
(2) Use of simple method in accounting procedures and application of accounting procedures specific to the quarterly
consolidated financial statements: None
Note: This section shows the use of any simplified accounting method, or the use of any peculiar accounting
method for consolidated financial statements.
(3) Changes in accounting principles and procedures, presentation methods and other items in the preparation of thequarterly consolidated financial statements(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None
Note: Note: Changes in accounting principles, procedures, presentation methods and other items for preparationof the quarterly consolidated financial statements that are listed in the section titled Changes to the Basisfor Presenting the Quarterly Consolidated Financial Statements.
(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury stock)
As of December 31, 2010:
28,702,118
As of March 31, 2010:(b) Treasury stock
As of December 31, 2010:
1,104,462
As of March 31, 2010:(c) Average number of shares (consolidated three quarters cumulative)
Period ended December 31, 2010:

27,598,022

Period ended December 31, 2009:

28,702,118
1,103,943
27,596,733*Description of quarterly review procedure implementation status
It is under the quarterly review procedure process based upon the Financial Instruments and Exchange Act at the timeof disclosure of this report.
*Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time thisreport was prepared and assumptions that management believes are reasonable. Actual results may differ significantly
from these statements for a number of reasons.

Index for Supplementary Information
1. Others·······································································································································································1(1) Outline of changes in Significant Accounting Policies, Procedures and Presentation ·······································1

2. Quarterly Consolidated Financial Statements ·········································································································2(1) Quarterly consolidated balance sheets················································································································2(2) Quarterly consolidated statements of income·····································································································4(April 1, 2010 - December 31, 2010) ·················································································································4(3) Notes to ongoing concern assumptions ··············································································································5(4) Notes on significant change in shareholders’ equity ··························································································51.

Others(1) Outline of changes in Significant Accounting Policies, Procedures and Presentation
・ Changes in accounting standard
From the first quarter of the fiscal year ending March 31, 2011, KAGA ELECTRONICS Group applies the”
Accounting Standard for Asset Removal Obligations”(ASBJ Statement No.18 of March 31, 2008) and the“Guidance on Accounting Standard for Asset Retirement Obligations”(ASBJ Guidance No.21 of March 31,2008).
As a result, the operating income and the ordinary income have decreased for 32 million yen, and the income
before income tax and minority interests has decreased for 70 million yen.

12. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheet(million yen)
Third quarter ended December 2010
(As of December 31, 2010)

Fiscal year ended March 2010
(As of March 31, 2010)

13,83553,669115
16,676
786
3,837
745
6,393
(173)

11,91759,21469
14,483
647
3,011
866
6,813
(184)

95,886

96,838Fixed assetsProperty, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, netTools, furniture and fixtures, net
LandConstruction in progress

2,506
1,637
1,075
4,099
469

2,584
1,489
944
1,297
119

Total property, plant and equipment

9,788

6,434

516
732
1,247

484
686
731

2,496

1,901

Investments and other assets
Investment securities
Deferred tax assets
OthersAllowance for doubtful receivables

4,490
282
5,885
(1,510)

4,607
249
5,490
(1,559)Total investments and other assets

9,148

8,786

21,43217,123

117,318

113,962ASSETS
Current assets
Cash and cash equivalents
Notes and accounts receivable-tradeMarketable securities
Merchandize and finished goods
Work in process
Raw materials and other supplies
Deferred tax assets
OthersAllowance for doubtful receivables
Total current assets

Intangible assets
Goodwill
Software
OthersTotal intangible assets

Total fixed assets
Total assets2

(million yen)
Third quarter ended December 2010 Fiscal year ended March 2010
(As of December 31, 2010)(As of March 31, 2010)
LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term bank loans
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term bank loans
Allowance for retirement benefits for employees
Allowance for retirement benefits for directors andcorporate auditors
Asset removal obligations
Others42,276
10,314
881
146
6,098

43,535
8,935
1,049
20
5,237

59,717

58,779

5,094
1,514

2,500
1,432

1,270
224
1,503

1,222
1,474

9,608

6,629

Total liabilities

69,32565,408NET ASSETSShareholder’s equity
Paid-in capital
Capital surplus
Retained earnings
Treasury stock

12,133
13,912
24,615(1,332)

12,133
13,91224,012(1,332)

49,32848,726(172)(27)(2,846)(195)
8(1,697)

Total long-term liabilities

Total shareholder’s equity
Valuation and translation adjustments
Valuation differences on available-for-sales securities
Deferred gains or losses on hedges
Foreign currency translation adjustments(3,046)(1,884)

Subscription rights to shares
Minority interests

0
1,710

1,711

Total net assets

47,99348,553117,318

113,962

Total valuation and translation adjustments

Total liabilities and net assets3(2) Quarterly consolidated statements of income
For the third quarter (April 1, 2010 – December 31, 2010)(million yen)
Third quarter ended December 2009 Third quarter ended December 2010
(April 1, 2009 – December 31, 2009) (April 1, 2010 – December 31, 2010)
Net sales
Cost of sales

174,926
154,235

177,535
154,293

Gross profit

20,69023,241

Selling, general and administrative expenses

19,807

20,033Operating income

883

3,208

Non-operating income
Interest incomeDividend income
Commission income
Others

4980
398

4963
1642795285571003581627946887

Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Compensation income
Gain on foreign currency translation adjustments
for liquidation of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on revaluation of investment securities
Loss on impairment of fixed assets
Others

620

635

791

3,130

16
69
40

17
12
140

126

101
272

5
196
106
24

12
383
-

332

101
497

Income before income taxes and minority interests

584

2,905

Income, inhabitants and enterprise taxes
Income tax adjustment

915
514

1,192
244

1,430
-

1,436
1,468

(53)
(792)

37
1,431

Total extraordinary losses

Total taxes
Income (loss) before minority interests
Minority interests in income (loss) of consolidated
subsidiaries
Net income (loss)4(3) Notes to ongoing concern assumptions
None(4) Notes on significant change in shareholders’ equity
None5