Kaga Electronics : Earnings Release FY2026/3 H1

About this update from Kaga Electronics Co., Ltd.

Summary of Consolidated Financial Results November 6, 2025 for the First Half Ended September 30, 2025 [Japan GAAP] Name of Company: KAGA ELECTRONICS CO., LTD. Stock Code: 8154 URL: https://www.taxan.co.jp/ Stock Exchange Listing: Tokyo Stock Exchange, Prime Market Representative Title: Representative Director, President & COO Name: Ryoichi Kado Contact Person Title: Director, Senior Executive Officer Head of Administration Headquarters Name: Yasuhiro Ishihara Phone: +81-(0)3-5657-0111 Date of filing of interim securities report (tentative): November 13, 2025 Date of commencement of dividend payment (tentative): December 5, 2025 Earnings explanatory documents: Yes Earnings presentation: Yes (For institutional investors and analysts) ( Yen in millions, rounded down ) Financial results for the H1 of the fiscal year ending March 2026 (April 1, 2025 – September 30, 2025) Result of operations (Consolidated, year-to-date) ( Percentage figures represent year on year changes ) Net sales Operating income Ordinary income Profit attributable to owners of parent million yen % million yen % million yen % million yen % H1 ended September 2025 288,959 11.5 13,049 13.5 13,443 19.2 15,033 89.3 H1 ended September 2024 259,064 (5.8) 11,501 (17.1) 11,278 (19.1) 7,941 (30.4) Note: Comprehensive income: H1 of FY3/2026: 15,311 million yen [43.0%] H1 of FY3/2025: 10,709 million yen [(36.9%)] Earnings per share Earnings per share (diluted) yen yen H1 ended September 2025 293.86 — H1 ended September 2024 151.15 — Note: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 2024. Note that diluted earnings per share is indicated as “-” because there are no diluted shares. Financial Position (Consolidated) Total assets Net assets Equity ratio million yen million yen % As of September 30, 2025 327,037 172,851 50.1 As of March 31, 2025 305,671 166,379 54.4 Reference: Shareholdersʼ equity︓As of September 30, 2025: 163,843 million yen As of March 31, 2025: 166,218 million yen. Dividends Dividend per share Dividend payout ratio (Consolidated) 1Q 2Q 3Q Year-end Full year yen yen yen yen yen % Fiscal year ended March 2025 — 110.00 — 55.00 — 33.8 Fiscal year ending March 2026 — 60.00 Fiscal year ending March 2026 — 60.00 120.00 22.9 (Forecast) Notes: 1. Change in the dividend forecast from the latest announcement: None Breakdown of interim dividend for 2026/3: Ordinary dividend: 55.00 yen; Extraordinary dividend: 5.00 yen Breakdown of year-end dividend for 2026/3(Forecast): Ordinary dividend: 55.00 yen; Extraordinary dividend: 5.00 yen 2. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The amount of the year-end dividend per share presented above for the fiscal year ended March 2025 takes into account the effect of the stock split, and the full-year dividend amount is indicated as “–”. Assuming that the stock split was conducted at the beginning of the previous fiscal year, the interim dividend would be 55.00 yen, and the full year dividend per share would be 110.00 yen. Forecast for the fiscal year ending March 2026 (Consolidated, April 1, 2025 – March 31, 2026) ( Percentage figures represent year on year changes ) Net sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Full year million yen % million yen % million yen % million yen % yen 595,000 8.6 25,500 8.0 25,500 12.9 26,000 52.2 524.78 Note: Change in the forecast from the latest announcement: Yes With respect to the revision of consolidated performance forecast, please refer to “Notice Regarding Upward Revision to Forecasts for Full-Year Earnings”, announced today (November 6, 2025). Notes Significant changes in the scope of consolidation during the period: Yes New: 7 (Company Name): Kyoei Sangyo Co., Ltd. and six other companies Use of accounting methods specifically for the preparation of the interim consolidated financial statements : None Changes in accounting policies, estimates, and retrospective restatement Changes due to revision of accounting standards : None Changes other than (a) : None Changes in accounting estimates : None Retrospective restatement : None Number of shares outstanding (common stock) (a) Shares outstanding (including treasury shares) As of September 30, 2025: 52,486,836 As of March 31, 2025 57,404,236 (b) Treasury shares As of September 30, 2025: 4,827,647 As of March 31, 2025 4,847,842 (c) Average number of shares (interim consolidated during the period) Period ended September 30, 2025: 51,160,138 Period ended September 30, 2024: 52,544,267 Notes: 1. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The average number of shares interim consolidated during the period was calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. 2. As a result of the cancellation of treasury shares on August 18, 2025, the number of shares issued at the end of the fiscal year decreased by 4,917,400 shares. The interim audit procedures by a certified public accountant or auditing firm are not applicable to this Financial Results report. Cautionary statement regarding forecasts of operating results and special notes (Caution regarding forward-looking statements) Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. For conditions as assumption for earnings forecast and cautionary statement regarding use of the forecast, please see “1. Results of Operations (3) Qualitative information on consolidated earnings forecast” on page 6. (Materials for financial results and how to obtain details of the financial results meeting) We plan to hold an earnings briefing for institutional investors and analysts on Thursday, November 27, 2025. Materials for the earnings presentation (Japanese and English) will be posted on TDnet and our website today (Thursday, November 6). We plan to post a video of the earnings briefing, together with the briefing materials used on that day, on our website on November 27. (A video of the earnings briefing in English will be posted at a later date.) （Japanese） https://www.taxan.co.jp/jp/ir/event/event_01.html （English） https://www.taxan.co.jp/en/ir/event/event_01.html Index for Supplementary Information Results of Operations 2 Overview of consolidated business performance 2 Overview of financial condition 5 Explanation of the consolidated earnings forecast and other forward-looking statements 6 Interim Consolidated Financial Statements and Major Notes 7 Interim consolidated balance sheet 7 Interim consolidated statements of income and comprehensive income 9 Interim consolidated statement of cash flows 11 Notes to the interim consolidated financial statements 13 (Notes to going concern assumptions) 13 (Notes to significant change in shareholdersʼ equity) 13 (Notes to segment information) 13 (Subsequent events) 14 ‌Results of Operations ‌Overview of consolidated business performance The following is an overview of consolidated business performance during the H1 of the consolidated fiscal period under review. FY 2025/3 H1 (April 1, 2024 - September 30, 2024) FY 2026/3 H1 (April 1, 2025 - September 30, 2025) YoY Net sales million yen 259,064 million yen 288,959 million yen 29,894 11.5％ Gross profit （Margin） 34,133 13.2％ 39,544 13.7％ 5,411 0.5pt 15.9％ — SG&A 22,631 26,495 3,863 17.1％ Operating income (Margin) 11,501 4.4% 13,049 4.5% 1,547 0.1pt 13.5% — Ordinary income 11,278 13,443 2,164 19.2% Profit before income taxes 11,244 19,719 8,475 75.4% Profit attributable to owners of parent 7,941 15,033 7,091 89.3% Exchange Rate (Average rate during the year period) Yen / US$ 152.63yen 146.04yen (6.59)yen — Net Sales In the electronic components business, net sales increased, driven by the EMS* business, with inventory adjustments showing signs of recovery in some supply chains. In the information equipment business, sales of PCs and security software performed well. In the others business, sales of amusement equipment were strong. Furthermore, Q2 saw the addition of Kyoei Sangyo Co., Ltd. as a consolidated subsidiary. As a result, net sales increased by 29,894 million yen year on year to 288,959 million yen. Note: Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis. Gross Profit Strong sales of relatively high-margin products, in addition to increased sales overall, resulted in an increase in gross profit by 5,411 million yen year on year to 39,544 million yen. Gross profit margin increased by 0.5 percentage points year on year to 13.7%. Operating income Although selling, general and administrative expenses increased due to increased sales and corporate acquisition, the increase in gross profit exceeded the increase in these expenses, resulting in operating income increasing by 1,547 million yen year on year to 13,049 million yen. Operating income margin increased by 0.1 percentage points year on year to 4.5%. Ordinary income With an improvement in non-operating income and expenses due partly to a decrease in foreign exchange losses, ordinary income increased by 2,164 million yen year on year to 13,443 million yen. Profit before income taxes Due to the recognition of extraordinary income including a gain on bargain purchase associated with a corporate acquisition and a gain on sales of investment securities, profit before income taxes increased by 8,475 million yen year on year to 19,719 million yen. Profit attributable to owners of parent Profit attributable to owners of parent increased by 7,091 million yen year on year to 15,033 million yen, mainly due to the recognition of income taxes – current. Thus, net sales and all types of income, from gross profit to profit attributable to owners of parent, recorded a year on year increase. Business segment performance The following is a summary of business results by segment for the H1 of the consolidated fiscal period under review. FY 2025/3 H1 (April 1, 2024 - September 30, 2024) FY 2026/3 H1 (April 1, 2025 - September 30, 2025) YoY Electronic components Net sales Segment income million yen 225,866 8,679 million yen 247,788 8,967 million yen 21,922 288 9.7% 3.3% Information equipment Net sales Segment income 18,633 1,392 21,571 1,616 2,938 224 15.8% 16.1% Software Net sales Segment income 1,471 256 1,679 165 207 (91) 14.1% (35.6%) Others Net sales Segment income 13,093 1,094 17,919 2,122 4,825 1,028 36.9% 94.0% Total Net sales Segment income 259,064 11,501 288,959 13,049 29,894 1,547 11.5% 13.5% Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total. (a) Electronic components In the components sales business, there were signs of recovery in the supply chainsʼ inventory adjustments, which had been a concern due to their potential prolonged process. Combined with the synergy effect of the acquisition of Kyoei Sangyo, the business recorded an increase in both net sales and income. In the EMS business, although demand from some customers declined, sales for medical equipment, air-conditioning equipment, and industrial equipment continued to be strong, resulting in increased net sales and income. As a result, net sales increased 9.7% year on year to 247,788 million yen and segment income increased 3.3% year on year to 8,967 million yen. (b) Information equipment In the PC sales business, sales to educational institutions were strong due partly to an increase in sales volume. Sales to mass retailers were solid due to the expansion of product lines by major PC suppliers, as well as replacement demand triggered by the end of Windows 10 support. As a result, net sales increased 15.8% year on year to 21,571 million yen and segment income increased 16.1% year on year to 1,616 million yen. (c) Software Sales recovered as a result of efforts to increase orders for computer graphics production for games and amusement equipment. However, profits were below the same period of the previous fiscal year, despite the elimination of the operating loss incurred in the first quarter. As a result, net sales increased 14.1% year on year to 1,679 million yen and segment income decreased 35.6% year on year to 165 million yen. (d) Others Sales of amusement equipment, which has been enjoying robust demand since the latter half of the previous consolidated fiscal year, maintained its strong performance both for the Japanese and U.S. markets. As a result, net sales increased 36.9% year on year to 17,919 million yen and segment income increased 94.0% year on year to 2,122 million yen. ‌ Financial results: Financial highlights(3months) FY 2025/3 Q2 FY 2026/3 Q2 (July 1, 2024 - September 30, (July 1, 2025 - September 30, YoY 2024) 2025) Net Sales million yen 130,426 million yen 150,872 million yen 20,446 15.7％ Gross profit 17,152 21,104 3,951 23.0％ (Margin) 13.2% 14.0% 0.8pt — Operating income 5,951 6,564 613 10.3％ （Margin） 4.6% 4.4% (0.2pt) — Ordinary income 5,232 7,200 1,968 37.6％ Profit before income taxes 5,198 13,307 8,108 156.0％ Profit attributable to owners of parent 3,814 10,419 6,604 173.1％ By segment FY 2025/3 Q2 FY 2026/3 Q2 (July 1, 2024 - September 30, (July 1, 2025 - September 30, YoY 2024) 2025) Electronic components Net sales Segment income million yen 114,545 4,348 million yen 131,332 4,740 million yen 16,786 391 14.7％ 9.0％ Information Net sales 8,026 9,454 1,428 17.8％ equipment Segment income 753 795 42 5.7％ Software Net sales 840 1,087 247 29.4％ Segment income 221 207 (13) (6.1％) Others Net sales 7,013 8,997 1,983 28.3％ Segment income 633 760 127 20.1％ Total Net sales 130,426 150,872 20,446 15.7％ Segment income 5,951 6,564 613 10.3％ Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total. Overview of financial condition Assets, liabilities and net assets Total assets as of September 30, 2025 increased by 21,365 million yen from March 31, 2025, to 327,037 million yen. Current assets increased by 12,775 million yen from March 31, 2025, to 269,939 million yen. This is primarily due to an increase of 13,392 million yen in merchandise and finished goods that partly reflected the consolidation of Kyoei Sangyo as a Group company. Non-current assets increased by 8,590 million yen from March 31, 2025, to 57,097 million yen. This is primarily due to an increase of 5,056 million yen in investment securities, and 1,641 million yen in Property, plant and equipment that partly reflected the consolidation of Kyoei Sangyo as a Group company. Liabilities increased by 14,894 million yen from March 31, 2025, to 154,186 million yen. This is primarily due to a 12,344 million yen increase in short-term loans payable. Net assets increased by 6,471 million yen from March 31, 2025, to 172,851 million yen. This is primarily due to an increase of 8,847 million yen in non-controlling interests partly as a result of the consolidation of Kyoei Sangyo as a Group company. Cash flows Cash and cash equivalents as of September 30, 2025, decreased by 1,722 million yen from March 31, 2025, to 70,958 million yen. (Operating activities) Net cash provided by operating activities was 9,676 million yen (14,929 million yen provided by the same period of the previous fiscal year), mainly due to the posting of profit before income taxes. (Investing activities) Net cash provided by investing activities was 3,979 million yen (10,174 million yen used in the same period of the previous fiscal year), mainly due to proceeds from the withdrawal of time deposits. (Financing activities) Net cash used in financing activities was 13,838 million yen (3,824 million yen used in the same period of the previous fiscal year), mainly due to expenses for the purchase of treasury shares. ‌Explanation of the consolidated earnings forecast and other forward-looking statements As announced today in the “Notice Regarding Upward Revision to Forecasts for Full-Year Earnings”, we have upwardly revised the consolidated earnings forecast for the fiscal year ending March 31, 2026, as follows. For details, please refer to this document. Revisions to consolidated earnings forecasts Revisions to consolidated earnings forecasts for the fiscal year ended March 31,2026 （from April 1, 2025 to March 31, 2026） Net Sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Previous forecast（A） (Announced on August 7, 2025) million yen million yen million yen million yen yen 574,000 24,000 23,800 24,200 488.45 Revised forecast（B） 595,000 25,500 25,500 26,000 524.78 Difference (B-A) 21,000 1,500 1,700 1,800 36.33 Percent change (%) 3.7％ 6.3％ 7.1％ 7.4％ 7.4% (Reference) Results for the fiscal year ended March 31, 2025 * 547,779 23,601 22,593 17,083 325.08 Note: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Earnings per share for the previous fiscal year is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. 【Reference: Revision of other related indicators】 Capital efficiency Shareholder Returns ROE Consolidated dividend payout ratio Total return ratio DOE Previous forecast (Announced on August 7, 2025) 14.6％ 24.6％ 83.3％ 4.2％ Revised forecast 15.0％ 22.9％ 77.6％ 3.9％ (Reference) Results for the fiscal year ended March 31,2025 10.8％ 33.8％ 33.8％ 4.2％ ‟Medium-Term Management Plan 2027” Targets (Announced on November 6, 2024) 12.0％ or higher 30％～40％ — 4.0％ The consolidated dividend payout ratio should read 31.6% and the DOE 4.0% in real terms excluding 7.2 billion yen in non-cash gain on bargain purchase. ‌Interim Consolidated Financial Statements and Major Notes ‌Interim consolidated balance sheet (million yen) Fiscal year ended March 2025 (As of March 31, 2025) H1 ended September 2025 (As of September 30, 2025) ASSETS Current assets Cash and deposits 80,188 73,217 Notes receivable – trade 892 1,017 Electronically recorded monetary claims -operating 7,155 10,288 Accounts receivable – trade 106,091 108,116 Securities 150 160 Merchandise and finished goods 35,906 49,298 Work in process 1,973 2,595 Raw materials and supplies 13,893 14,573 Other 11,148 10,880 Allowance for doubtful accounts (236) (209) Total current assets 257,164 269,939 Non-current assets Property, plant and equipment Buildings and structures, net 9,839 10,896 Machinery, equipment and vehicles, net 11,034 10,965 Tools, furniture and fixtures, net 1,217 1,266 Land 5,940 6,120 Construction in progress 413 837 Total property, plant and equipment 28,445 30,087 Intangible assets Software 1,694 1,839 Other 44 40 Total intangible assets 1,738 1,879 Investments and other assets Investment securities 12,556 17,612 Deferred tax assets 1,344 1,220 Distressed receivables 4,815 4,841 Other 4,481 6,420 Allowance for doubtful accounts (4,873) (4,963) Total investments and other assets 18,323 25,130 Total non-current assets 48,507 57,097 Total assets 305,671 327,037 (million yen) Fiscal year ended March 2025 (As of March 31, 2025) H1 ended September 2025 (As of September 30, 2025) LIABILITIES Current liabilities Notes and accounts payable - trade 73,340 74,584 Short-term loans payable 14,890 27,235 Current portion of bonds payable 5,000 200 Accrued expenses 8,145 9,207 Income taxes payable 4,018 3,812 Provision for directorsʼ bonuses 428 69 Other 11,881 12,348 Total current liabilities 117,704 127,457 Non-current liabilities Bonds payable 5,000 5,300 Long-term loans payable 5,500 8,508 Deferred tax liabilities 4,115 5,414 Provision for directorsʼ retirement benefits 99 99 Net defined benefit liability 2,572 2,620 Asset retirement obligations 698 849 Other 3,601 3,937 Total non-current liabilities 21,587 26,729 Total liabilities 139,292 154,186 NET ASSETS Shareholdersʼ equity Capital stock 12,133 12,133 Capital surplus 14,885 14,767 Retained earnings 121,553 123,749 Treasury shares (5,579) (9,907) Total shareholdersʼ equity 142,993 140,743 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,263 4,308 Deferred gains or losses on hedges (28) 4 Foreign currency translation adjustment 18,959 17,814 Remeasurements of defined benefit plans 1,031 973 Total accumulated other comprehensive income 23,225 23,100 Non-controlling interests 160 9,007 Total net assets 166,379 172,851 Total liabilities and net assets 305,671 327,037 (million yen) H1 ended September 2024 (April 1, 2024- September 30,2024) H1 ended September 2025 (April 1, 2025- September 30,2025) Net sales 259,064 288,959 Cost of sales 224,931 249,414 Gross profit 34,133 39,544 Selling, general and administrative expenses 22,631 26,495 Operating income 11,501 13,049 Non-operating income Interest income 648 569 Dividends income 139 244 Commission fee 66 56 Share of profit of entities accounted for using equity method — 55 Other 583 388 Total non-operating income 1,437 1,313 Non-operating expenses Interest expenses 403 381 Share of loss of entities accounted for using equity method 58 — Foreign exchange losses 995 319 loss on net monetary position 138 131 Other 64 88 Total non-operating expenses 1,660 919 Ordinary income 11,278 13,443 Extraordinary income Gain on sales of non-current assets 2 21 Gain on sales of investment securities 76 1,205 Gain on step acquisitions — 466 Gain on bargain purchase — 3,800 Other 3 881 Total extraordinary income 82 6,376 Extraordinary loss Loss on retirement of non-current assets 7 1 Loss on valuation of investment securities 101 79 Other 8 18 Total extraordinary loss 116 100 Profit before income taxes 11,244 19,719 Income taxes - current 2,615 4,394 Income taxes - deferred 879 93 Total income taxes 3,495 4,487 Profit 7,749 15,231 Profit attributable to owners of parent 7,941 15,033 Profit (loss) attributable to non-controlling interests (192) 197 ‌Interim consolidated statements of income and comprehensive income For the H1 (April 1, 2025 – September 30, 2025) Other comprehensive income Valuation difference on available-for-sale securities 579 1,256 Deferred gains or losses on hedges (62) 32 Foreign currency translation adjustment 1,689 (1,043) Remeasurements of defined benefit plans, net of tax 621 (58) Share of other comprehensive income of associates accounted for using equity method 131 (107) Total other comprehensive income 2,960 79 Comprehensive income 10,709 15,311 Comprehensive income attributable to owners of parent 10,901 14,908 Comprehensive income attributable to non-controlling interests (192) 402 Interim consolidated statement of cash flows (million yen) H1 ended September 2024 (April 1, 2024- September 30,2024) H1 ended September 2025 (April 1, 2025- September 30,2025) Cash flows from operating activities Profit before income taxes 11,244 19,719 Depreciation 2,094 2,485 Amortization of goodwill 16 — Increase (decrease) in allowance for doubtful accounts (26) (33) Interest and dividend income (787) (813) Interest expenses 403 381 Share of (profit) loss of entities accounted for using equity method 58 (55) Loss (gain) on sales of investment securities (72) (1,205) Loss (gain) on valuation of investment securities 101 79 Gain on bargain purchase — (466) Loss (gain) on step acquisitions — (3,800) Loss (gain) on liquidation of subsidiaries and associates — — Decrease (increase) in notes and accounts receivable - trade 12,295 10,983 Decrease (increase) in inventories (1,952) (7,305) Decrease (increase) in accounts receivable -other (931) 132 Decrease (increase) in advance payments (71) 119 Increase (decrease) in notes and accounts payable - trade (2,626) (6,225) Increase (decrease) in accrued expenses (683) 337 Decrease (increase) in consumption taxes refund receivable (902) 1,275 Decrease (increase) in other current assets (472) 49 Increase (decrease) in other current liabilities (1,702) (491) Other, net (833) (1,586) Subtotal 15,151 13,580 Interest and dividend income received 788 832 Interest expenses paid (419) (391) Income taxes paid (590) (4,344) Net cash provided by (used in) operating activities 14,929 9,676 Cash flows from investing activities Payments into time deposits (6,525) (5,833) Proceeds from withdrawal of time deposits — 11,942 Purchase of property, plant and equipment (2,500) (2,034) Proceeds from sales of property, plant and equipment 2 112 Purchase of intangible assets (195) (187) Proceeds from purchase of shares of Purchase of shares of subsidiaries resulting in change in scope of consolidation — (2,218) Purchase of investment securities (1,140) (838) (million yen) H1 ended September 2024 (April 1, 2024 - September 30, 2024) H1ended September 2025 (April 1, 2025 - September 30, 2025) Proceeds from sales of investment securities 103 2,989 Short-term loan advances (0) (0) Other payments (152) (80) Other proceeds 233 127 Net cash provided by (used in) investing activities (10,174) 3,979 Cash flows from financing activities Increase (decrease) in short-term loans payable (510) 9,171 Proceeds from long-term borrowings — 149 Repayments of long-term loans payable — (504) Redemption of bonds — (5,100) Purchase of treasury shares (1) (14,447) Cash dividends paid (2,885) (2,886) Other, net (426) (221) Net cash provided by (used in) financing activities (3,824) (13,838) Effect of exchange rate change on cash and cash equivalents 641 (1,539) Net increase (decrease) in cash and cash equivalents 1,571 (1,722) Cash and cash equivalents at beginning of period 62,417 72,681 Cash and cash equivalents at end of period 63,989 70,958 ‌Notes to the interim consolidated financial statements (Notes to going concern assumptions) Not applicable (Notes to significant change in shareholdersʼ equity) (Acquisition of own shares) The Company acquired 4,917,400 treasury shares based on the resolutions at the Board of Directors meeting held on August 7, 2025. Treasury shares increased by 14,447 million yen during this period due to the acquisition of treasury shares mentioned above. (Cancellation of treasury shares) The Company cancelled 4,917,400 shares on August 18, 2025, based on the resolution at the Board of Directors meeting held on August 7, 2025. This resulted in a decrease of 149 million yen in capital surplus, 9,947 million yen in retained earnings, and 10,096 million yen in treasury shares as of September 30, 2025. As a result of the foregoing factors, as of September 30, 2025, capital surplus stood at 14,767 million yen, retained earnings at 123,749 million yen, and treasury shares at 9,907 million yen. (Notes to segment information) For the H1 ended September 2024 (April 1, 2024 – September 30, 2024) Information about net sales and income (loss) by reportable segments (million yen) Reporta ble seg ments Adjustment (Note 1) Consolidated (Note 2) Electronic components Information equipment Software Others Total Net sales: Sales to external customers 225,866 18,633 1,471 13,093 259,064 — 259,064 Inter-segment sales or transfers 1,777 4,947 682 2,848 10,255 (10,255) — Total 227,644 23,580 2,154 15,941 269,320 (10,255) 259,064 Segment income (loss) 8,679 1,392 256 1,094 11,422 78 11,501 Notes: 1. Adjustment in segment income of 78 million yen includes 78 million yen for elimination of inter-segment trade. Segment income is adjusted for operating income on the interim consolidated statements of income and comprehensive income. 2. Information regarding impairment loss on non-current assets or on goodwill and other matters by reportable segment (Material impairment loss pertaining to non-current assets) Not applicable (Material change in goodwill amount) Not applicable (Material gain on bargain purchase) Not applicable For the H1 ended September 2025 (April 1, 2025 – September 30, 2025) Information about net sales and income (loss) by reportable segments (million yen) Reportable segments Adjustment (Note 1) Consolidated (Note 2) Electronic components Information equipment Software Others Total Net sales: Sales to external customers 247,788 21,571 1,679 17,919 288,959 — 288,959 Inter-segment sales or transfers 2,121 7,016 435 2,542 12,115 (12,115) — Total 249,910 28,588 2,114 20,461 301,074 (12,115) 288,959 Segment income 8,967 1,616 165 2,122 12,873 176 13,049 Notes: 1. Adjustment in segment income of 176 million yen includes 176 million yen for elimination of inter-segment trade. Segment income is adjusted for operating income on the interim consolidated statements of income and comprehensive income. ２. Information regarding impairment loss on non-current assets or on goodwill and other matters by reportable segment (Material impairment loss pertaining to non-current assets) Not applicable (Material change in goodwill amount) Not applicable (Material gain on bargain purchase) A 3,800 million yen gain on bargain purchase was recorded in the electronic components business. This gain arose from the Companyʼs acquisition of shares in Kyoei Sangyo on July 18, 2025. (Subsequent events) Not applicable

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