加賀電子（8154） – Notice regarding upward revision to full-year earnings and dividends forecasts

May 9, 2022 Name of Company K A G A E L E C T R O N I C S C O ., LT D . Representative Ryoichi Kado, Representative Director, President & COO (Stock Code: 8154 Tokyo Stock Exchange, Prime Market) Contact Eiji Kawamura, Director, Managing Executive Officer Head of Administration Headquarters Tel: 03-5657-0111 Notice regarding upward revision to full-year earnings and dividends forecasts In light of recent earnings trends, Kaga Electronics Co., Ltd. (hereinafter, “the Company”) has revised its forecasts announced on February 3, 2022, with respect to consolidated full-year earnings and dividends for the fiscal year ended March 31, 2022. Details are as follows. １．Revision of earnings forecast Revision to consolidated earnings forecast for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022) Net sales Operating income Ordinary income Profit attributable to owners of parent Net income per share Previous forecast (A) (Announced on February 3, 2022) Million yen Million yen Million yen Million yen yen 475,000 17,500 18,000 12,000 449.13 Revised forecast (B) 495,000 20,900 21,400 15,300 572.65 Difference (B) – (A) 20,000 3,400 3,400 3,300 Percent change (%) 4.2 19.4 18.9 27.5 (Reference) Results for the fiscal year ended March 31, 2021 422,365 11,467 11,241 11,399 415.07 < Reasons for revision > In the consolidated fiscal year ended March 31, 2022, despite facing various issues, including the resurgence of the spread of COVID-19 as a result of variants, stagnation in international distribution networks, and rising raw materials prices, there was a notable recovery in production activities in the electronics industry, to which the Company belongs. Amid these trends, strong demand continued for semiconductors and electronic components in various product fields, although there were supply chain disruptions caused by supply shortages of some materials. In the electronic components business, which is the Group’s core business, strong sales ‐ 1 ‐ continued throughout the year, particularly for automotive, medical, and industrial equipment applications, as a result of the Company’s early efforts to capture the requests of customers from a broad range of industries. Furthermore, the Company utilized the strengths of its procurement network as an independent trading company to enable it to maintain widespread sales quantities, which supported performance in the consolidated fiscal year under review. In addition, performance was also positively affected by the fact that foreign exchange rates trended more toward a weaker yen than was initially expected, and accordingly, the Company now expects net sales as well as all profit items, including operating income, ordinary income, and profit attributable to owners of parent, to exceed the previous forecasts and reach new record highs. Taking into consideration the aforementioned circumstances, the earnings forecasts announced on February 3, 2022, have been revised upward as presented above. 2．Revision of dividend forecast End of 1st half Annual dividends Year-end Total Previous forecast (Announced on February 3, 2022) Revised forecast 65 yen (Ordinary dividend 40 yen) (Extraordinary dividend 25 yen) 110 yen (Ordinary dividend 80 yen) (Extraordinary dividend 30 yen) 75 yen (Ordinary dividend 40 yen) (Extraordinary dividend 35 yen) 120 yen (Ordinary dividend 80 yen) (Extraordinary dividend 40 yen) Dividends for the current fiscal year 45 yen (Ordinary dividend 40 yen) (Extraordinary dividend 5 yen) (Reference) Dividends for the previous fiscal year (Fiscal year ended March 31, 2021） 30 yen (Ordinary dividend 30 yen) 50 yen (Ordinary dividend 30 yen) (Extraordinary dividend 20 yen) 80 yen (Ordinary dividend 60 yen) (Extraordinary dividend 20 yen) ＜Reasons for revision＞ The Company positions the return of profits to shareholders as one of its most important management policies, and in addition to endeavoring to strengthen its financial position and management foundation with a long-term perspective, has a basic policy of maintaining stable and ongoing dividends commensurate with the consolidated results. To date, the Company has twice made upward revisions to consolidated earnings forecasts and increased the year-end dividend for the fiscal year ended March 31, 2022, but based on the new revisions to earnings forecasts, as described above, the Company will increase the forecast for the year-end dividend to 75 yen per share (40 yen of ordinary dividend and 35 yen of extraordinary dividend), an increase of 10 yen to the extraordinary dividend, from the previous forecast of 65 yen per share. As a result, the annual dividend will be 120 yen per share, an increase of 40 yen from the dividend paid in the previous fiscal year. (Note) The above forecasts are based on the information currently available to the Company on the date of the release and certain assumptions deemed reasonable. Actual results may vary from the forecast for a variety of reasons. ‐ 2 ‐