Kaga Electronics Co., Ltd. · TSE:8154
Kaga Electronics — H1 FY3/2012 Earnings Presentation
20 slides from Kaga Electronics's earnings presentation, Nov 24, 2011
Slide 1: Information Meeting for The First Half of Fiscal Year ending March 2012
Information Meeting for The First Half of Fiscal Year ending March 2012 November 24, 2011 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
Slide 2: Financial Highlights First Half of FY3/2012
Financial Highlights First Half of FY3/2012 2 © 2010 © 2011 KAGA KAGA ELECTRONICS ELECTRONICS CO.,LTD CO.,LTDAll All Rights Rights Reserved. Reserved.
Slide 3: Consolidated Statement of Income
■ Consolidated Statement of Income (million yen) 1H FY3/2011 1H FY3/2012 Changes Amount Pct. Amount Pct. Amount Pct. Net Sales 平成18年3月期 120,470 平成19年3月期（予） 100.0% 116,271 100.0% -4,199 -3.5% Cost of sales 104,410 86.7% 101,913 87.7% -2,497 -2.4% Gross profit 16,060 13.3% 14,357 12.3% -1,703 -10.6% S
Slide 4: Segment information
Segment information (million yen) 1H FY3/2011 1H FY3/2012 Changes Net sales Net sales Pct. Pct. Amount Pct. Segment income Segment income Electronic 88,528 73.5% 83,411 71.7% -5,117 -5.8% components 2,042 78.7% 636 79.0% -1,406 -68.9% Information 24,384 20.2% 26,591 22.9% 2,207 9.1% equipment 139 5.
Slide 5: Net Sales by Product (Reference)
Net Sales by Product (Reference) (million yen) 140,000 (million yen) 1H FY3/2011 1H FY3/2012 Changes 120,471 1１6,271 120,000 Net sales Pct. Net sales Pct. Change Pct. 17,954 Others 16,831 Information 22,432 18.6% 23,087 19.9% 655 2.9% 100,000 13,425 equipment 15,633 General electronics EMS 35,312 31
Slide 6: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses (million yen) 1H FY3/2011 1H FY3/2012 Change Amount Pct, Amount Pct. Change Pct. 16,000 (million yen) Packing and 13,465 13,551 freight 1,161 8.6% 1,284 9.5% 123 10.6% 14,000 Others R&D 290 2.2% 258 1.9% -32 -11.0% 2,690 2,671 12,000 Others 669 5.0% 698 5
Slide 7: Consolidated Balance Sheets
■ Consolidated Balance Sheets (million yen) End of End of 1H End of End of 1H Change Change FY3/11 FY3/12 FY3/11 FY3/12 （ASSETS） 114,686 110,147 -4,539 (LIABILITIES) 66,087 63,049 -3,038 Current assets 92,876 89,827 -3,049 Current liabilities 56,987 54,875 -2,112 Cash and cash equivalents 11,926 10,
Slide 8: Consolidated Cash Flows
■ Consolidated Cash Flows (million yen) 1H FY3/2011 1H FY3/2012 Change Operating activities 4,591 -2,446 -7,037 Investing activities -1,563 -1,449 114 Financials activities -3,024 2,735 5,759 Net change in cash and cash equivalents -351 -383 -32 Increase (decrease) in cash and cash equivalents -348
Slide 9: Forecast for FY3/2012
■ Forecast for FY3/2012 Consolidated Statement of Income (million yen) FY3/2011(actual) FY3/2012 (plan) Change Amount 平成18年3月期 Pct. Amount 平成19年3月期（予） Pct. Change Pct.change Net sales 237,951 100.0% 238,000 100.0% 49 0.0% Cost of sales 207,298 87.1% 209,000 87.8% 1,702 0.8% Gross profit 30,653 12.9%
Slide 10: Forecast for FY3/2012 (Consolidated Forecast by Segment)
■ Forecast for FY3/2012 (Consolidated Forecast by Segment) (million yen) FY3/2011 FY3/2012 Changes (Actual) (Forcast) Net sales Net sales Pct. Pct. Amount Pct. Segment income Segment income Electronic 171,576 72.1% 162,500 68.3% -9,076 -5.3% components 2,901 81.4% 800 38.1% -2,101 -72.4% Information
Slide 11: Forecast for FY3/2012 (Net Sales by Product)
■ Forecast for FY3/2012 (Net Sales by Product ) (million yen) (million yen) 250,000 237,951 238,000 FY3/2011 FY3/2012 (F) Changes Net sales Pct. Net sales Pct. Change Pct. 33,898 28,900 Others 200,000 Information 24,800 47,336 19.9% 48,500 20.4% 1,164 2.5% 29,231 equipment General electronic com pon
Slide 12: Forecast for FY3/2012 (Selling, General and Administrative Expenses)
■ Forecast for FY3/2012 (Selling, General and Administrative Expenses) (million yen) FY3/2011 FY3/2012(F) (million yen) Changes Amount Pct. Amount Pct. 30,000 27,089 26,900 Packing and 2,340 8.6% 2,496 9.3% 156 freight 25,000 5,448 5,131 Administrative Others R&D 659 2.4% 547 2.0% -112 Personnel Oth
Slide 13: Key Issues at the KAGA Group
Key Issues at the KAGA Group 1. Cost cut 2. Rebuilding poorly performing subsidiaries 3. Create new businesses 13 © 2010 © 2011 KAGA KAGA ELECTRONICS ELECTRONICS CO.,LTD CO.,LTDAll All Rights Rights Reserved. Reserved.
Slide 14: Key Issues at the KAGA Group (1): Cost cut
Key Issues at the KAGA Group (1) 1. Cost cut Reduce selling, general and administrative expenses The KAGA Group’s problem ⇒ Drop in earnings (Causes) •Weak sales •Higher SG&A expenses Large administrative workforce is holding down profitability. 14 © 2010 © 2011 KAGA KAGA ELECTRONICS ELECTRONICS CO.
Slide 15: Key Issues at the KAGA Group (2)
Key Issues at the KAGA Group (2) Measures to downsize the administrative workforce Administrative departments ⇒ Lower the headcount (1) Standardize tasks performed by group company administrative departments (2) Downsize administrative staff by merging and liquidating subsidiaries Technical departme
Slide 16: Key Issues at the KAGA Group (3): Rebuilding poorly performing subsidiaries
Key Issues at the KAGA Group (3) 2. Rebuilding poorly performing subsidiaries KAGA COMPONENTS (1) Thorough reexamination of the (Manufacturer of power supplies) organizational structure (2) Reexamination of oversight of production processes (3) Development of highly profitable products CYBERFRONT Im
Slide 17: Key Issues at the KAGA Group (4): Create new businesses
Key Issues at the KAGA Group (4) 3. Create new businesses (1) Expand overseas operations • Enlarge the overseas network (Hollowing out of Japanese • Train overseas sales personnel manufacturing sector) • Shift sales personnel from Japan to other countries • Use M&A with companies in the same industr
Slide 18: Expand overseas operations (1)
Expand overseas operations (1) Aim is to expand overseas operations by establishing more business sites Strategies Strengthen operations in China (Beijing, Qingdao, Tianjin and cities in inland China) Start operations in emerging countries (Asia, South America, Europe and other areas) Develop relati
Slide 19: Expand overseas operations (2)
Expand overseas operations (2) Overseas operations of KAGA Group Europe (UK, Czech Republic, others) China (HK, Shenzhen, Shanghai, Suzhou and others) Russia liaison office Czech factory Shenzhen factory Suzhou factory USA India China Dalian Brazil (Conducting a field survey) Dubai Taiwan, Korea Tha
Slide 20: KAGA ELECTRONICS CO.,LTD.
KAGA ELECTRONICS CO.,LTD. 3-12-8 Sotokannda,Chiyoda-ku,Tokyo 101-8629 Contact: Public Relations Department TEL:03-4455-3131 FAX:03-3254-7132 E-mail： webmaster@taxan.co.jp http://www.taxan.co.jp For more information,please contact the public relations department. 20 © 2010 © 2011 KAGA KAGA ELECTRONIC