Kaga Electronics : Consolidated Financial Results for the First Quarter of the Fiscal Year ending March 2024

Consolidated Financial Results for the First Quarter of the Fiscal 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 business segments achieved sales growth.
• Operating income decreased by 2.8 billion yen or 28.8% year on year to 7.0 billion yen.

FY2024/3	Excluding a decrease in gross profit due to the disappearance of spot
demand and provision for loss associated with a business partner's filing
1Q Results
for 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 in connection with sale of shares held for investment purposes.
• Year-on-yeardecrease in net sales and income notwithstanding, 1Q got off to a good start, with performance exceeding the internal plan.

	 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.
FY2024/3	Earnings revisions to be determined appropriately with due consideration
earnings	to progress in 2Q.
Forecasts		Net Sales	Operating Income	Net Income
	Previous forecasts	550.0 billion yen	25.0 billion yen	18.0 billion yen
	Progress rate	25.0％	28.0％	32.0％

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Financial Highlights for FY2024/3 1Q

					（million yen）
	FY2023/3	FY2024/3		FY2024/3	Progress
	YoY	Forecasts
	1Q Results	1Q Results	rate
		(Announced on May11, 2023)
Net sales	149,302	137,694	-7.8%	550,000	25.0%

Gross Profit

19,838 13.3%

17,553 12.7%

-11.5%－ －

－

SG&A

10,018 6.7%

10,559 7.7%

5.4% － －

－

Operatiing Income

9,820 6.6%

6,994 5.1%

-28.8%25,000 4.5%

28.0%

Ordinary income	9,858	6.6%	6,909		-29.9%	25,000	4.5%	27.6%
Profit attributable to	6,984	4.7%	5,767		-17.4%	18,000	3.3%	32.0%
owners of parent
EPS (yen)	266.10	－	219.63	－	－	685.42	－	－

Exchange Rate yen/USD

129.57 －

137.37 －

－ 135.00 －

－

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		FY2024/3			FY2024/3		Progress
				YoY	Forecasts
		1Q Results	1Q Results		rate
			(Announced on May11, 2023)
Electronic	Net sales	133,477		120,015		-10.1%	471,500		25.5%
Component	Segment income	9,018	6.8%	5,922	4.9%	-34.3%	20,700	4.4%	28.6%
Information	Net sales	11,147		12,050		8.1%	45,000		26.8%
Equipment	Segment income	564	5.1%	746	6.2%	32.2%	2,500	5.6%	29.9%
Software	Net sales	498		577		15.8%	4,500		12.8%
	-33		-4			300
	Segment income	-6.7%	-0.8%	－	6.7%	－
Others	Net sales	4,178		5,050		20.9%	29,000		17.4%
	249		291			1,500
	Segment income	6.0%	5.8%	17.0%	5.2%	19.4%
Total	Net sales	149,302		137,694		-7.8%	550,000		25.0%
	9,820		6,994			25,000
	Segment income	6.6%	5.1%	-28.8%	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	FY2023/3	FY2024/3	YoY
		1Q Results	1Q Results	1Q Results
	Net sales	60,115		84,339		78,615		-6.8%
Kaga	Gross Profit	9,588	16.0%	13,040	15.5%	12,146	15.5%	-6.9%
Electronics
	Operating income	3,719	6.2%	6,251	7.4%	5,663	7.2%	-9.4%
	Net sales	32,145		47,752		48,135		0.8%
Kaga FEI	Gross Profit	3,009	9.4%	5,784	12.1%	4,379	9.1%	-24.3%
	Operating income	346	1.1%	3,040	6.4%	797	1.7%	-73.8%
	Net sales	13,688		17,209		10,943		-36.4%
Excel	Gross Profit	1,079	7.9%	986	5.7%	1,014	9.3%	2.8%
	Operating income	507	3.7%	462	2.7%	485	4.4%	5.0%
	Net sales	105,949		149,302		137,694		-7.8%
Total	Gross Profit	13,550	12.8%	19,838	13.3%	17,553	12.7%	-11.5%
	Operating income	4,452	4.2%	9,820	6.6%	6,994	5.1%	-28.8%

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