Kaga Electronics : Summary of Consolidated Financial Results for the First Half Ended September 30, 2025

About this update from Kaga Electronics Co., Ltd.

November 6, 2025 Summary of Consolidated Financial Results 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 Contact Person Title: Director, Senior Executive Officer Head of Administration Headquarters Phone: +81-(0)3-5657-0111 Name: Ryoichi Kado Name: Yasuhiro Ishihara 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 288,959 259,064 % million yen 13,049 11,501 % million yen 13,443 11,278 % million yen 15,033 7,941 % H1 ended September 2025 11.5 13.5 19.2 89.3 H1 ended September 2024 (5.8) (17.1) (19.1) (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 Fiscal year ended March 2025 Fiscal year ending March 2026 yen - - yen 110.00 60.00 yen - yen 55.00 yen - % 33.8 Fiscal year ending March 2026 (Forecast) - 60.00 120.00 22.9 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 595,000 % 8.6 million yen 25,500 % 8.0 million yen 25,500 % 12.9 million yen 26,000 % 52.2 yen 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) Shares outstanding (including treasury shares) As of September 30, 2025: 52,486,836 As of March 31, 2025 57,404,236 Treasury shares As of September 30, 2025: 4,827,647 As of March 31, 2025 4,847,842 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 ‌1. 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. 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. 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.

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