Kaga Electronics : Earnings Presentation FY2026/3 Q3

About this update from Kaga Electronics Co., Ltd.

FY2026/March Q3 (April-December) Earnings Presentation KAGA ELECTRONICS CO., LTD. 2023 - 2025 2021 - 2025 TSE Prime Market 8154 February 12, 2026 FY2026/3 Q3（９months） P- 2～ Summary/Financial Highlights/Results by Segment・Company FY2026/3 Q3（３months） P- 10～ Financial Highlights/Results by Segment・Company Balance Sheet P- 13～ Summary/Balance Sheet Main Items 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（９months , ３months）/ Latest 5 years Financial Trends/Exchange Rate/FOREX Sensitivity (billion yen) Net Sales Operating income Net income Q3 Results 445.4 19.4 24.3 YoY +49.2 （＋12.4%） +1.3 （＋7.7%） +11.5 （＋91.2%） Results for FY2026/3 Q3 （Apr. - Dec.） Net sales and income at all levels of profit, through profit attributable to owners of parent, increased year on year. Net sales : Electronic components (EMS business), information equipment (PC and software product sales), and others (amusement equipment sales) businesses all delivered robust performance. The consolidation of Kyoei Sangyo commenced from Q2 (Jul.-Sep.). Operating income : Higher gross profit , driven by increased net sales and an improved gross profit margin from a better sales mix , led to year-on-year growth. FY2026/3 earnings forecasts Net income : Around 7.6 billion yen gain on bargain purchase was recognized upon the consolidation of Kyoei Sangyo. (billion yen) Net Sales Operating income Net income Revised forecasts 620.0 27.0 28.5 vs. previous forecasts YoY +25.0 （ +4.2%） +72.2 （＋13.2%） +1.5 （ +5.9％） +3.3 （＋14.4%） ＋2.5 （ ＋9.6%） ＋11.4 （＋66.8%） Reflecting steady progress through Q3 and recent spot demand, we have revised the forecast upward for the third time this fiscal year We have begun responding to the tight supply-demand situation for some semiconductor products, and this revision reflects only the figures finalized in January sales Shareholder Return Following the earnings revision, the year-end dividend has been increased by 10 yen to 70 yen, bringing the annual dividend to 130 yen per share (up 20 yen from the dividend paid in the previous fiscal year) *A two-for-one stock split was executed in Oct. 2024. Up 20 yen from the previous fiscal year is calculated after adjustment for the stock split. Q3 Results （Apr. - Dec.） Forecasts （Announced on Nov. 6, 2025） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio YoY 12.4% FY2026/3 Composition Progress rate Ratio 595,000 100.0% 74.9% Net Sales 396,243 100.0% 445,475 100.0% Gross Profit 52,190 13.2% 59,961 13.5% 14.9% ー ー ー SG&A 34,134 8.6% 40,511 9.1% 18.7% ー ー ー Operating income 18,056 4.6% 19,449 4.4% 7.7% 25,500 4.3% 76.3% Ordinary income 18,379 4.6% 20,766 4.7% 13.0% 25,500 4.3% 81.4% Profit attibutable to owners of parent 12,714 3.2% 24,308 5.5% 91.2% 26,000 4.4% 93.5% EPS（yen） 241.97 ー 485.11 ー 100.5% 524.78 ー ー Exchange rate yen / US$ 152.57 ー 148.74 ー ー 140.00 ー ー Note: 1. The effect of exchange rates on the conversion into yen is approximately -4,046 million yen on net sales and -74 million yen on operating income. 2. The Company conducted a two-for-one stock split of its common stock effective Oct. 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. Q3 Results （million yen） FY2025/3 profit margin FY2026/3 profit margin YoY Electronic Component Net sales 346,212 383,892 10.9% Segment income 13,568 3.9% 13,768 3.6% 1.5% Information Equipment Net sales 26,953 33,652 24.9% Segment income 1,953 7.2% 2,499 7.4% 28.0% Software Net sales 2,070 2,525 22.0% Segment income 308 14.9% 233 9.3% -24.2% Others Net sales 21,006 25,404 20.9% Segment income 2,097 10.0% 2,747 10.8% 31.0% Total Net sales 396,243 445,475 12.4% Segment income 18,056 4.6% 19,449 4.4% 7.7% （Apr. - Dec.） Forecasts （Announced on Nov. 6, 2025） FY2026/3 profit Progress rate margin 516,500 74.3% 18,500 3.6% 74.4% 45,000 74.8% 3,500 7.8% 71.4% 3,500 72.2% 500 14.3% 46.8% 30,000 84.7% 3,000 10.0% 91.6% 595,000 74.9% 25,500 4.3% 76.3% Note: Figures of each segment income are not inter-segment adjusted. Total amount is inter-segment adjusted (operating income). Q3 Results （Apr. - Dec.） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio YoY Kaga Electronics Net sales 228,980 100.0% 254,117 100.0% 11.0% Gross Profit 36,362 15.9% 40,194 15.8% 10.5% Operating income 15,295 6.7% 16,517 6.5% 8.0% Kaga FEI Net sales 145,563 100.0% 146,722 100.0% 0.8% Gross Profit 13,118 9.0% 13,532 9.2% 3.2% Operating income 1,473 1.0% 1,880 1.3% 27.6% Excel Net sales 21,699 100.0% 19,108 100.0% -11.9% Gross Profit 2,677 12.3% 2,483 13.0% -7.2% Operating income 1,120 5.2% 977 5.1% -12.7% Kyoei Sangyo Net sales ー ー 25,526 100.0% ー Gross Profit ー ー 3,811 14.9% ー Operating income ー ー 18 0.1% ー Total Net sales 396,243 100.0% 445,475 100.0% 12.4% Gross Profit 52,190 13.2% 59,961 13.5% 14.9% Operating income 18,056 4.6% 19,449 4.4% 7.7% 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 Jul. 18, 2025. N 売 et 上 sa 高 les Operating income Components +37.7 Equipment +6.7 +0.4 +4.4 445.4 396.2 Kyoei Sangyo +25.5 amusement equipment +6.3 Sales Increase JPY 49.2 bn （of which, impact of exchange rates - 4.0 bn ） Electric Information Software Others （billion yen） Gross Profit +7.8 （billion yen） Kyoei Sangyo (Excluding Kyoei Sangyo) Personnel expenses Packing and freightage Expenses Promotion expenses Others -3.8 -0.8 -0.4 -0.5 -0.9 18.0 +6.5 +1.3 -6.4 Sales mix 19.4 （Improvement in gross profit margin） SG&A Sales Volume （"-" figures for SG&A expenses indicate increase in expenses ） Income Increase JPY 1.4 bn （of which, impact of exchange rates - 0.07 bn ） FY25/3 Q3 Result FY26/3 Q3 Result FY25/3 Q3 Result FY26/3 Q3 Result N 売 et 上 sa 高 les Oper 営 at 業 ing 利 in 益 come （billion yen） （billion yen） Electronics Kaga FEI Kaga Sangyo +25.5 445.4 +25.1 +1.1 Excel -2.5 419.9 396.2 Sales Increase JPY 23.7 bn Sales Increase JPY 49.2 bn Kyoei 18.0 Kaga Electronics +1.2 Kaga FEI Excel +0.4 -0.1 1 9.3 Kyoei Sangyo +0.02 1 9.4 Income Increase JPY 1.3 bn Income Increase JPY 1.4 bn FY25/3 Q3 Result Excluding Kyoei Sangyo FY26/3 Q3 Result FY25/3 Q3 Result Excluding Kyoei Sangyo FY26/3 Q3 Result Note : With respect to gross profit and operating income, figures presented above are before consolidation adjustments between the four companies. FY2026/3 Net Sales 346,212 +37,679 10.9% Segment income 13,568 +199 1.5% Profit margin 3.9% -0.3pt 3.6% 13,768 383,892 （million yen） FY2025/3 YoY （billion yen） 115.2 114.7 111.3 114.5 120.3 126.6 116.4 131.3 136.1 FY24/3 Q3 Q4 FY25/3 Q1 Q2 Q3 Q4 FY26/3 Q1 Q2 Q3 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.) （+）Sign of easing in inventory adjustments 383,892 sales business （ー）Tight supply-demand balance and soaring prices in certain semiconductor products 346,212 13,568 13,768 3.6% 3.9% As a result, net sales and income both increased year-on-year FY25/3 Q3 Results FY26/3 Q3 Results EMS Business （+）Robust sales to medical and air-conditioning equipment sectors （+）Sign of recovery in office equipment sector （ー）Demand decrease at some customers in the automotive sector As a result, net sales and income both increased year-on-year 8 FY2026/3 Net Sales 26,953 +6,698 24.9% Segment income 1,953 +546 28.0% Profit margin 7.2% +0.2pt 7.4% 2,499 33,652 （million yen） FY2025/3 YoY 12.1 12.0 9.5 10.6 8.0 8.3 9.4 14.0 15.6 （billion yen） FY24/3 Q3 Q4 FY25/3 Q1 Q2 Q3 Q4 FY26/3 Q1 Q2 Q3 Net sales/Segment income Main factors behind increase/decrease 26,953 1,953 2,499 7.2% 7.4% （million yen） FY25/3 Q3 Results Net Sales Segment income Profit margin 33,652 FY26/3 Q3 Results PC sales business Electrical and telecommunication equipment installation business （+）Strong sales of PCs for educational institutions for the GIGA School program （+）Strong performance in new AI PCs for mass retailers （+）Strong sales of new security software for mobile devices As a result, net sales and income both increased year-on-year （+）Strong LED installation and sales to major convenience stores and financial institutions （+）Increased orders received for electric facility (electricity substations, solar panels) work As a result, net sales and income both increased year-on-year 9 Q3 Results （Oct. - Dec.） Q2 Results （Jul. - Sep.） Q3 Results （Oct. - Dec.） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio FY2026/3 Composition Ratio YoY QoQ Net Sales 137,178 100.0% 150,872 100.0% 156,516 100.0% 14.1% 3.7% Gross Profit 18,056 13.2% 21,104 14.0% 20,416 13.0% 13.1% -3.3% SG&A 11,502 8.4% 14,539 9.6% 14,016 9.0% 21.9% -3.6% Operating income 6,554 4.8% 6,564 4.4% 6,400 4.1% -2.4% -2.5% Ordinary income 7,101 5.2% 7,200 4.8% 7,323 4.7% 3.1% 1.7% Profit attibutable to owners of parent 4,773 3.5% 10,419 6.9% 9,275 5.9% 94.3% -11.0% EPS（yen） 90.82 ー 207.91 ー 194.61 ー ー ー Exchange rate yen / US$ 152.57 ー 146.04 ー 148.74 ー ー ー Note: 1. The effect of exchange rates on the conversion into yen is approximately -1,636 million yen on net sales and -37 million yen on operating income. 2. The Company conducted a two-for-one stock split of its common stock effective Oct. 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. Q3 Results （Oct. - Dec.） Q2 Results （Jul. - Sep.） Q3 Results （Oct. - Dec.） （million yen） FY2025/3 profit FY2026/3 profit FY2026/3 profit margin YoY QoQ margin margin Electronic Net sales 120,345 131,332 136,103 13.1% 3.6% Component Segment income 4,888 4.1% 4,740 3.6% 4,800 3.5% -1.8% 1.3% Information Net sales 8,320 9,454 12,080 45.2% 27.8% Equipment Segment income 561 6.7% 795 8.4% 883 7.3% 57.3% 11.0% Software Net sales 599 1,087 846 41.4% -22.1% Segment income 52 8.7% 207 19.1% 68 8.1% 31.8% -67.0% Others Net sales 7,913 8,997 7,485 -5.4% -16.8% Segment income 1,002 12.7% 760 8.5% 624 8.3% -37.7% -17.9% Total Net sales 137,178 150,872 156,516 14.1% 3.7% Segment income 6,554 4.8% 6,564 4.4% 6,400 4.1% -2.4% -2.5% Note: Figures of each segment income are not inter-segment adjusted. Total amount is inter-segment adjusted (operating income). Q3 Results （Oct. - Dec.） Q2 Results （Jul. - Sep.） Q3 Results （Oct. - Dec.） （million yen） FY2025/3 Composition Ratio FY2026/3 Composition Ratio FY2026/3 Composition Ratio YoY QoQ Kaga Electronics Net sales 80,826 100.0% 82,227 100.0% 89,259 100.0% 10.4% 8.6% Gross Profit 12,676 15.7% 13,652 16.6% 13,247 14.8% 4.5% -3.0% Operating income 5,605 6.9% 5,322 6.5% 5,396 6.0% -3.7% 1.4% Kaga FEI Net sales 48,779 100.0% 49,108 100.0% 48,779 100.0% -0.0% -0.7% Gross Profit 4,439 9.1% 4,546 9.3% 4,658 9.5% 4.9% 2.5% Operating income 481 1.0% 655 1.3% 857 1.8% 78.1% 30.9% Excel Net sales 7,572 100.0% 6,408 100.0% 6,079 100.0% -19.7% -5.1% Gross Profit 941 12.4% 857 13.4% 812 13.4% -13.8% -5.3% Operating income 427 5.6% 369 5.8% 330 5.4% -22.6% -10.5% Kyoei Sangyo Net sales ー ー 13,128 100.0% 12,398 100.0% ー -5.6% Gross Profit ー ー 2,058 15.7% 1,753 14.1% ー -14.8% Operating income ー ー 187 1.4% -169 ー ー ー Total Net sales 137,178 100.0% 150,872 100.0% 156,516 100.0% 14.1% 3.7% Gross Profit 18,056 13.2% 21,104 14.0% 20,416 13.0% 13.1% -3.3% Operating income 6,554 4.8% 6,564 4.4% 6,400 4.1% -2.4% -2.5% 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 Jul. 18, 2025. LIABILITIES Current liabilities 117,704 142,428 +24,723 Notes and accounts payable -trade 73,340 84,313 +10,973 Short-term loans payable 14,890 29,583 +14,692 Current portion of bonds payable 5,000 200 -4,800 Other 24,473 28,331 +3,857 Non-current liabilities 21,587 26,043 +4,455 Bonds payable 5,000 5,300 +300 Long-term loans payable 5,500 6,887 +1,387 Other 11,087 13,855 +2,768 Total liabilities 139,292 168,472 +29,179 Summary of Balance Sheet (million yen) 2025/3 2025/12 Change from end of FY2025/3 (million yen) 2025/3 2025/12 Change from end of FY2025/3 ASSETS Current assets 257,164 286,963 +29,798 Cash and deposits 80,188 82,068 +1,879 Notes and accounts receivable -trade 114,139 118,417 +4,278 Inventories 51,774 74,852 +23,077 Other 11,061 11,624 +562 Non-current assets 48,507 56,208 +7,700 Property, plant and equipment 28,445 31,082 +2,636 Buildings and structures 9,839 11,843 +2,003 Machinery, equipment and vehicles 11,034 11,439 +404 Tools, furniture and fixtures 1,217 1,273 +55 Land 5,940 6,167 +226 Construction in progress 413 359 -53 NET ASSETS Intangible assets 1,738 1,956 +217 Shareholders' equity 142,993 147,158 +4,165 Software 1,694 1,915 +221 Capital stock 12,133 12,133 - Other 44 40 -3 Capital surplus 14,885 14,767 -118 Total investments and other assets 18,323 23,169 +4,845 Retained earnings 121,553 130,165 +8,611 Investment securities 12,556 15,562 +3,006 Treasury shares -5,579 -9,908 -4,328 Distressed receivables 4,815 4,846 +31 Total accumulated other comprehensive income 23,225 27,545 +4,319 Allowance for doubtful accounts -4,873 -4,969 -95 Non-controlling interests 160 △ 3 -164 Other 5,825 7,730 +1,904 Total net assets 166,379 174,699 +8,320 Total assets 305,671 343,171 +37,499 Total liabilities and net assets 305,671 343,171 +37,499 Total assets Total liabilities and net assets Current assets Non-current assets Current ratio 214.3% 218.5% （million yen） 201.5% Total liabilities Total net assets Debt ratio 8.5% 83.8% 8 （million yen） Main balance sheet changes Current assets (＋) 19,579 million yen increase in merchandise and finished goods Non-current assets (＋) 2,636 million yen increase in property, plant and equipment (＋) 3,006 million yen increase in investment securities Liabilities (＋) 10,973 million yen increase in notes and accounts payable -trade (＋) 14,692 million yen increase in short-term loans payable Net assets (＋) 8,611 million yen increase in retained earnings (＋) 3,053 million yen increase in foreign currency translation adjustment (ー) 4,328 million yen decrease in treasury shares 96.4% 343,171 307,898 305,671 260,801 257,164 286,963 +29,798 +37,499 343,171 307,898 305,671 144,469 139,292 168,472 +29,179 163,428 166,379 174,699 +8,320 +37,499 47,096 48,507 56,208 +7,700 2024/12 2025/3 2025/12 2024/12 2025/3 2025/12 Note: Current ratio ＝ Current asset ÷ current liabilities × 100 Note: Debt ratio = Total liabilities ÷ Equity capital × 100 Inventories Accounts receivable/Accounts payable Inventories（manufacturing biz) Inventories（trading biz） Inventory turnover (Consolidated） （million yen） Notes and A/R Notes and A/P A/P turnover （million yen） Inventory turnover（manufacturing biz) Inventory turnover（trading biz） A/R turnover 77.5days 72.3days 60.7days 62.5days 45.4days 34.5days 46.2days 40.6days 36.4days 25.6days 74,852 65.1days 76.1days 73.1days 58.0days 58.5days 111,734 114,139 118,417 +4,278 80,882 73,340 84,313 +10,973 +23,077 65,348 26,081 +2,950 25,973 51,774 23,130 39,374 48,770 +20,127 28,643 Inventories Consolidated vs end of FY2025/3： ＋23.0bn, ＋11.7days Trading business vs end of FY2025/3： ＋20.1bn, +15.0days of which, Kyoei Sangyo +7.3bn Manufacturing business vs end of FY2025/3： ＋2.9bn, +1.8days Inventory value increased slightly along with higher net sales in the EMS business 2024/12 2025/3 2025/12 Note：Inventory turnover＝Inventories ÷ Net Sales × 275 2024/12 2025/3 2025/12 Notes:1. A/R turnover＝Notes and A/R ÷ Net sales × 275 A/P turnover＝Notes and A/P ÷ Total purchase of goods × 275 Notes and A/Rare amounts including Electronically recorded monetary claims-operating 15 Notes and A/Pare amounts including Electronically recorded obligations -operating Cash and Deposits/Interest Bearing Debt Cash and deposits Interest bearing debts D/E ratio Net D/E ratio （million yen） 0.21times 0.20times 0.26times 80,188 82,068 +1,879 72,493 45,528 +12,032 34,302 33,496 -0.23times -0.28times -0.21times 2024/12 2025/3 2025/12 Main balance sheet changes Interest bearing debts (＋) 14,692 million yen increase in short-term loans payable (＋) 1,387 million yen increase in long-term loans payable (＋) 4,800 million yen decrease in current portion of bonds payable Note:1. D/E ratio＝Interest bearing debts ÷ Shareholder's equity 2. Net D/E ratio＝（Interest bearing debts -Cash and deposits） ÷Shareholder's equity Forecasts for FY2026/3 Previous Forecasts （Announced on Nov. 6, 2025） Revised Forecasts （Announced on Feb. 12, 2026） Composition Ratio 595,000 620,000 100.0% 25,500 27,000 4.4% 25,500 28,000 4.5% 26,000 28,500 4.6% 524.78 575.24 ー 15.0% 16.5% ー 120 130 ー 60 60 ー 60 70 ー 140.00 140.00 ー FY2025/3 FY2026/3 (million yen) Results Composition Ratio vs. previous YoY forecasts Net Sales 547,779 100.0% 4.2% 13.2% Operating income 23,601 4.3% 5.9% 14.4% Ordinary income 22,593 4.1% 9.8% 23.9% Profit attibutable to owners of parent 17,083 3.1% 9.6% 66.8% EPS（yen） (*) 325.08 ー 50.46 250.16 ROE 10.8% ー 1.5pt 5.7pt Annual dividend (*) Total 110 ー 10 20 （yen） interim 55 ー 0 5 year-end 55 ー 10 15 Exchange rate yen / US$ 152.58 ー ー ー Note: While a two-for-one stock split of the Company's common stock is planned effective Oct. 1,2024, The amounts indicated for EPS and annual dividend take account of the impact of the said stock split even prior to the split date. Previous Forecasts （Announced on Nov. 6, 2025） Revised Forecasts （Announced on Feb. 12, 2026） Profit margin 516,500 541,500 18,500 20,000 3.7% 45,000 45,000 3,500 3,500 7.8% 3,500 3,500 500 500 14.3% 30,000 30,000 3,000 3,000 10.0% 595,000 620,000 25,500 27,000 4.4% FY2025/3 FY2026/3 (million yen) Results Profit margin vs. previous forecasts YoY Electronic Component Information Equipment Software Others Total Net sales 472,910 Segment income 16,927 3.6% Net sales 42,652 Segment income 3,307 7.8% Net sales 3,387 Segment income 509 15.1% Net sales 28,829 Segment income 2,707 9.4% Net sales 547,779 Segment income 23,601 4.3% Note: Figures of each segment income are not inter-segment adjusted. Total amount is inter-segment adjusted (operating income). 4.8% 14.5% 8.1% 18.2% 0.0% 5.5% 0.0% 5.8% 0.0% 3.3% 0.0% -1.9% 0.0% 4.1% 0.0% 10.8% 4.2% 13.2% 5.9% 14.4% 1

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