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

November 6, 2025

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)

1. Financial results for the H1 of the fiscal year ending March 2026 (April 1, 2025 - September 30, 2025)

   1. 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.

   2. 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.

2. 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.

3. Forecast for the fiscal year ending March 2026 (Consolidated, April 1, 2025 - March 31, 2026)

(Percentage figures represent year on year changes)

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

  1. Significant changes in the scope of consolidation during the period: Yes New: 7 (Company Name): Kyoei Sangyo Co., Ltd. and six other companies

  2. Use of accounting methods specifically for the preparation of the interim consolidated financial statements : None

  3. Changes in accounting policies, estimates, and retrospective restatement

     1. Changes due to revision of accounting standards : None

     2. Changes other than (a) : None

     3. Changes in accounting estimates : None

     4. Retrospective restatement : None

  4. Number of shares outstanding (common stock)

     1. Shares outstanding (including treasury shares)

        As of September 30, 2025: 52,486,836 As of March 31, 2025 57,404,236

     2. Treasury shares

        As of September 30, 2025: 4,827,647 As of March 31, 2025 4,847,842

     3. 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

1. Results of Operations 2

   1. Overview of consolidated business performance 2

   2. Overview of financial condition 5

   3. Explanation of the consolidated earnings forecast and other forward-looking statements 6

2. Interim Consolidated Financial Statements and Major Notes 7

   1. Interim consolidated balance sheet 7

   2. Interim consolidated statements of income and comprehensive income 9

   3. Interim consolidated statement of cash flows 11

   4. 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. ‌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.

   1. 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.

   2. 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.