KAGA ELECTRONICS CO.,LTD.

As announced in the “Notice Concerning the Results of Tender Offer for the Common Share of Kyoei Sangyo Co., Ltd. and Change in Subsidiary (Change in Specified Subsidiary)" dated July 12, 2025, the Company concluded the tender offer for the common shares of Kyoei Sangyo Co., Ltd., (which commenced on June 2, 2025, Kyoei) on July 11, and incorporated Kyoei as a consolidated subsidiary of the Company from July 18 (the settlement commencement date of this tender offer).
Based on the above, the consolidated earnings forecasts for the fiscal year ending March 31, 2026, now include the outlook for the second quarter onward (net sales of 44.0 billion yen, operating income of 1.0 billion yen, ordinary income of 0.8 billion yen, and profit attributable to owners of parent of 0.5 billion yen) based on the forecast announced on May 13, 2025, on top of the full-year forecast previously announced on May 14, 2025. We also have incorporated a gain on bargain purchase of 7.2 billion yen as a result of this acquisition into these earnings forecasts.

Notes: 1. On August 7, 2025, the Company announced the acquisition and cancellation of up to 4.92 million treasury shares (9.4% of the total number of shares issued) or 15 billion yen. The revised forecast of earnings per share is calculated based on the assumption that the share acquisition and cancellation will take place as planned.
2. 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.

In the fiscal year ending March 2026, the global economic conditions surrounding the Group are likely to remain uncertain in view of such factors as concerns of an economic slowdown resulting from changes in fiscal, tariff, and other policies, exchange rate fluctuation risks, and geopolitical risks in Europe, the Middle East, and other regions.
In the electronics industry to which the Group belongs, demand in the medium to long term is projected to increase steadily amid drastic changes in the technology sector against the backdrop of advancement in ICT and digital technologies, including electrification of automobiles, evolution of autonomous driving, environmental actions on global warming, and labor-saving efforts to address the manpower shortage. In the short term, however, with inventory adjustment continuing at some customers, a full-scale demand recovery will not likely happen until the latter half of the fiscal year ending March 2026.
Based on these assumptions and in accordance with the basic policy of Medium-Term Management Plan 2027, which starts in the fiscal year ending March 2026, the Group will continue to work on new M&As and the creation of new businesses while pursuing expansion of the core businesses by reinforcing business portfolio management, with the aim of becoming a company with net sales of 1 trillion yen by the fiscal year ending March 2029, which marks the 60th anniversary of its founding. The Group will implement strategic cash allocation that focuses on growth investments and returning profits to shareholders, and will also maintain and strengthen investment in human capital. Additionally, the Group will accelerate actions to address the management issues of environmental, social, and governance factors, and aim for sustainable growth by achieving a balance between corporate value improvement and social value.
With respect to consolidated earnings for the fiscal year ending March 2026, the Company expects net sales to total 530.0 billion yen, operating income to amount to 23.0 billion yen, ordinary income to amount to 23.0 billion yen, and profit attributable to owners of parent to be 16.5 billion yen in the consolidated fiscal year ending March 2026, which incorporate risk factors including foreign currency translation difference resulting from revision of the assumed exchange rate against the US dollar to 140 yen, or approximately 12 yen stronger than the rate assumed in the previous fiscal year.
Note that while it is difficult to reasonably calculate the impact of the U.S. tariff policy on the Company’s performance, the earnings forecast reflects the impact that has been calculated under certain assumptions with respect to direct transactions with customers in the U.S. to the extent the Company is aware of at this time.

Forecasts for FY2026/3