Kaga Electronics : Earnings Presentation FY2026/3 H1

About this update from Kaga Electronics Co., Ltd.

FY2026/March H1 (April-September) Earnings Presentation KAGA ELECTRONICS CO., LTD. 2023 - 2025 2021 - 2025 TSE Prime Market 8154 November 6, 2025 FY2026/3 H1 P- 2～ Summary/Financial Highlights/Results by Segment・Company FY2026/3 Q2 (3 months) P- 10～ Financial Highlights/Results by Segment・Company Balance Sheet/ Cash flows P- 13～ Summary/Balance Sheet Main Items/ Cash flows Forecasts for FY2026/3 P- 18～ Forecasts/Forecasts by Segment/Shareholder Returns Reference P- 22～ Quarterly trends (Net Sales・Income by segment, Net Sales by Region）/ Results by MTMP Segment（H1, Q2）/ Latest 5 years Financial Trends/Exchange Rate/FOREX Sensitivity (billion yen) Net Sales Operating income Net income H1 Results 288.9 13.0 15.0 YoY +29.8 +1.5 +7.0 Results for FY2026/3 H1 （April - September） All items, from net sales to net income, increased year on year. The upward momentum continues . Net sales : Electronic components (EMS business), information equipment (PC and software product sales), and others (amusement equipment sales) business all maintained robust performance, contributing to a year-on-year increase in net sales. In addition, Kyoei Sangyo was consolidated from Q2 (Jul.-Sep.). Operating income : The increase in gross profit, attributable to higher net sales and improved income margin , exceeded the increase in SG&A expenses that resulted from increased sales and corporate acquisition, leading to a year-on-year increase in operating income FY2026/3 earnings forecast While corporate acquisition contributed to revenue growth, increase in both net sales and income were achieved even excluding the impact of the acquisition . (billion yen) Net Sales Operating income Net income Revised forecasts 595.0 25.5 26.0 vs. previous forecasts +21.0 +1.5 +1.8 YoY +47.2 +1.8 +8.9 In light of solid performance progress made through H1, an upward forecast revision was made for the second time this fiscal year, across all levels from net sales to net income. Net income incorporates 7.2 billion yen in gain on bargain purchase associated with the acquisition. Shareholder Return Maintaining the previous forecast of 120 yen per share in annual dividend, consisting of an interim and year-end dividend of 60 yen each (a 10 yen increase from the previous fiscal year) *A two-for-one stock split was executed in October 2024. Up 10 yen from the previous fiscal year is calculated after adjustment for the stock split. H1 Results （April - September） Forecasts （Announced on August 7, 2025） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio YoY Net Sales 259,064 100.0% 288,959 100.0% 11.5% Gross Profit 34,133 13.2% 39,544 13.7% 15.9% SG&A 22,631 8.7% 26,495 9.2% 17.1% Operating income 11,501 4.4% 13,049 4.5% 13.5% Ordinary income 11,278 4.4% 13,443 4.7% 19.2% Profit attibutable to owners of parent 7,941 3.1% 15,033 5.2% 89.3% EPS（yen） 151.15 ー 293.86 ー ー Exchange rate yen / US$ 152.63 ー 146.04 ー ー FY2026/3 Composition Ratio Progress rate 574,000 100.0% 50.3% ー ー ー ー ー ー 24,000 4.2% 54.4% 23,800 4.1% 56.5% 24,200 4.2% 62.1% 488.45 ー ー 140.00 ー ー Note: 1. The effect of exchange rates on the conversion into yen is approximately -4,606 million yen on net sales and -102 million yen on operating income. 2. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. EPS for the previous fiscal year is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. H1 Results （million yen） FY2025/3 profit margin FY2026/3 profit margin YoY Electronic Component Net sales 225,866 247,788 9.7% Segment income 8,679 3.8% 8,967 3.6% 3.3% Information Equipment Net sales 18,633 21,571 15.8% Segment income 1,392 7.5% 1,616 7.5% 16.1% Software Net sales 1,471 1,679 14.1% Segment income 256 17.4% 165 9.8% -35.6% Others Net sales 13,093 17,919 36.9% Segment income 1,094 8.4% 2,122 11.8% 94.0% Total Net sales 259,064 288,959 11.5% Segment income 11,501 4.4% 13,049 4.5% 13.5% （April - September） Forecasts （Announced on August 7, 2025） FY2026/3 profit Progress rate margin 501,000 49.5% 17,500 3.5% 51.2% 45,000 47.9% 3,500 7.8% 46.2% 3,000 56.0% 500 16.7% 33.1% 25,000 71.7% 2,500 10.0% 84.9% 574,000 50.3% 24,000 4.2% 54.4% Note: Figures of each segment income are not inter-segment adjusted. Total amount is inter-segment adjusted (operating income). H1 Results （April - September） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio YoY Kaga Electronics Net sales 148,154 100.0% 164,858 100.0% 11.3% Gross Profit 23,685 16.0% 26,947 16.3% 13.8% Operating income 9,689 6.5% 11,121 6.7% 14.8% Kaga FEI Net sales 96,783 100.0% 97,943 100.0% 1.2% Gross Profit 8,678 9.0% 8,873 9.1% 2.2% Operating income 991 1.0% 1,022 1.0% 3.1% Excel Net sales 14,127 100.0% 13,028 100.0% -7.8% Gross Profit 1,735 12.3% 1,670 12.8% -3.7% Operating income 693 4.9% 647 5.0% -6.7% Kyoei Sangyo Net sales ー ー 13,128 100.0% ー Gross Profit ー ー 2,058 15.7% ー Operating income ー ー 187 1.4% ー Total Net sales 259,064 100.0% 288,959 100.0% 11.5% Gross Profit 34,133 13.2% 39,544 13.7% 15.9% Operating income 11,501 4.4% 13,049 4.5% 13.5% Note : 1.With respect to gross profit and operating income, figures presented above are before consolidation adjustments between the four companies. 2. Kyoei Sangyo became a consolidated subsidiary effective July 18, 2025. N 売 et 上 sa 高 les Oper 営 at 業 ing 利 in 益 come Components +21.9 Equipment +2.9 +0.2 +4.8 288.9 259.0 EMS Around +11.8 Electric Components +10.4 amusement equipment around +3.5 Sales Increase JPY 29.9 bn （of which, impact of exchange rates - 4.6 bn ） Electric Information Software Others （billion yen） Gross Profit +5.4 （billion yen） +1.4 -0.2 -3.6 Personnel expenses -1.7 +3.9 Litigation expenses 11.5 Sales mix （Improvement in gross profit margin） 13.0 Others Sales Volume SG&A -3.8 （"-" figures for SG&A expenses indicate increase in expenses ） Income Increase JPY 1.5 bn （of which, impact of exchange rates - 0.1 bn ） Packing and freightage expenses -0.5 FY25/3 H1 Result FY26/3 H1 Result FY25/3 H1 Result FY26/3 H1 Result N 売 et 上 sa 高 les Oper 営 at 業 ing 利 in 益 come Electronics Kaga FEI Kaga Sangyo +13.1 288.9 +16.7 +1.1 259.0 Excel -1.0 275.8 Sales Increase: JPY 16.8 bn Sales Increase: JPY 29.9 bn （billion yen） Kyoei Kaga Kaga FEI Excel Kyoei （billion yen） +1.4 +0.03 -0.04 12.8 +0.2 13.0 11.5 Income Increase JPY 1.3 bn Income Increase JPY 1.5 bn Electronics Sangyo FY25/3 H1 Result Excluding Kyoei Sangyo FY26/3 H1 Result FY25/3 H1 Result Excluding Kyoei Sangyo FY26/3 H1 Result Note : With respect to gross profit and operating income, figures presented above are before consolidation adjustments between the four companies. （miliion yen） FY2025/3 FY2026/3 YoY Net Sales 225,866 247,788 21,922 9.7% Segment income 8,679 8,967 288 3.3% Profit margin 3.8% 3.6% -0.2pt 150,000 125,000 100,000 75,000 50,000 FY24/3 Q2 Q3 Q4 FY25/3 Q1 Q2 Q3 Q4 FY26/3 Q1 Q2 Net sales/Segment income Main factors behind increase/decrease （million yen） Net Sales Segment income Profit margin Components （+）Kyoei Sangyo was consolidated from Q2 (Jul.-Sep.) （+）Expand sales of new products 225,866 247,788 8,679 8,967 3.6% 3.8% sales business （ー）Prolonged inventory adjustment at some customers As a result, net sales and income both increased year-on-year （+）Robust sales to medical and industrial equipment sectors （+）Continued recovery trend in sales to air-conditioning FY25/3 H1 Results FY26/3 H1 Results EMS Business equipment sector （ー）Demand decrease at some customers of the automotive sector and office equipment As a result, net sales and income both increased year-on-year （miliion yen） FY2025/3 FY2026/3 YoY Net Sales 18,633 21,571 2,938 15.8% Segment income 1,392 1,616 224 16.1% Profit margin 7.5% 7.5% +0.0pt 20,000 15,000 10,000 5,000 0 FY24/3 Q2 Q3 Q4 FY25/3 Q1 Q2 Q3 Q4 FY26/3 Q1 Q2 Net sales/Segment income Main factors behind increase/decrease （million yen） Net Sales Segment income （+）Strong sales of PCs for educational institutions amid the season of high demand for newly enrolled students 18,633 1,392 7.5% 1,616 7.5% 21,571 Profit margin PC sales business Electrical and （+）Recovery of sales of PCs for mass retailers due to expansion of product lines by a major PC supplier （+）Strong sales of the comparatively high-margin security software products As a result, net sales and income both increased year-on-year （+）Strong performance of LED installation for major convenience store chain telecommunication（+）Increased orders received for electric facility (electricity FY25/3 H1 Results FY26/3 H1 Resulets equipment installation business substations, solar panels) work （ー）Increase in SG&A expenses due to bolstering of construction personnel as an advance investment As a result, net sales and income both increased year-on-year

View stock analysis, news, and events for Kaga Electronics Co., Ltd.