KAGA ELECTRONICS CO.,LTD.

I am Ryoichi Kado, President of KAGA ELECTRONICS.

Fiscal 2024 marks the third year of Medium-term Management Plan 2024 (2022–2024) and the Medium- to Long-Term Sustainability Management Plan, which we announced in November 2021.

In Medium-term Management Plan 2024, we designated the trading company business for electronic components and the EMS business for circuit board mounting as our two growth drivers under the basic policy of “organic growth + new M&As.” We identified mobility, communications, the environment, industrial equipment, and medical/health care as our focus fields. We laid out a scenario aimed at achieving our ambition of becoming “Japan’s No. 1 corporate group in the industry” with net sales of 750 billion yen in fiscal 2024 (the fiscal year ending in March 2025), the last year of this plan, and beyond this, of becoming a competitive world-class company with net sales of 1 trillion yen.

In the Medium- to Long-Term Sustainability Management Plan, we respect dialogue with all stakeholders, including customers, business partners, shareholders, investors, and employees as we address important environmental, social and governance (ESG) issues, seeking to achieve both a sustainable society and sustainable growth for the Group. In terms of the environment, we are promoting the active utilization of renewable energy at our business locations in Japan and overseas to contribute to achieving a decarbonized society. To address social issues, we are engaging in the promotion of diversity, work-style reforms, and health management to improve the quality of life of our employees and contribute to the creation of a sustainable society. Regarding governance, we are working to enhance the quality of our management so that we can remain a valuable company for our shareholders and all our other stakeholders.

This year, the culmination of Medium-term Management Plan 2024, while of course continuing to strive to the end to achieve the plan’s goals, we will also move forward seamlessly to formulate our next medium-term management plan, with an eye further to the future. We intend to shift our growth up a gear, designating these four years, including this year and the three years of the upcoming plan, as the period when we move to the offensive. I would like to make this year the start of our four-year creation of a new, upgraded version of KAGA ELECTRONICS.

Driven by our corporate philosophy, “Everything we do is for our customers.” we will continue to implement corporate activities that contribute to the realization of a sustainable society and further improve the Group’s corporate value through initiatives to address our priority issues in line with these management plans.

April 2024

Ryoichi Kado

_{Representative Director, President & COO}