I am Ryoichi Kado, President of KAGA ELECTRONICS.

Medium-Term Management Plan 2027 for fiscal years 2025–2027 (MTP 2027), announced in November 2024, has now entered its second year.

MTP 2027 centers on a growth strategy combining organic growth and new M&A initiatives, with the trading company business for the sale of electronic equipment and components and the EMS business for circuit board mounting and manufacturing as its two growth drivers. Our minimum targets for the final year of MTP 2027—the fiscal year ending March 31, 2028—are 800 billion yen in net sales, 36 billion yen in operating income, and 12% ROE. Looking further ahead to fiscal year 2028, our 60th anniversary year, we envision reaching 1 trillion yen in net sales and becoming Japan’s No. 1 corporate group in the industry and a competitive world-class company. Under MTP 2027, we have now clarified our approach to capital policy, reinforcing our commitment to growth investments. We have also taken our shareholder return policy a step further by raising the consolidated dividend payout ratio and introducing a dividend on equity ratio (DOE),

During the first year of MTP 2027—the fiscal year ended March 31, 2026—Kyoei Sangyo Co., Ltd., a mid-sized trading company in the same industry, joined the Group as a consolidated subsidiary in July 2025. The electronic components, information equipment, and others businesses performed strongly, driving double-digit year-on-year growth in net sales and profits at all levels. Net sales and profit attributable to owners of parent both reached record highs for the first time in three fiscal years.
In line with the new targets for the consolidated dividend payout ratio and DOE established under MTP 2027, we paid an annual dividend of 140 yen per share. We also repurchased 4.92 million shares for a total of 14.4 billion yen—our largest-ever share repurchase—and canceled all of the shares acquired. Alongside our strong business performance, we delivered on our commitment to proactive shareholder returns while investing for growth and improving capital efficiency—another major achievement in the first year of MTP 2027.

Now in its second year—the fiscal year ending March 31, 2027—MTP 2027 remains on track as we pursue our growth strategy. Our recently announced first-quarter results showed double-digit year-on-year growth in both sales and profits, driven by the electronic components business. We also announced our first upward revision to the full-year earnings forecast for the current fiscal year. This month, Shinko Shoji Co., Ltd., another electronics trading company, joined the Group as a consolidated subsidiary. Its broad portfolio—spanning semiconductor and electronic component sales, design and development support, EMS, and other businesses—aligns closely with our Group’s businesses. Going forward, we will bring together our respective strengths to create synergies.

Guided by our management philosophy, “Everything we do is for our customers,” we will maintain momentum in addressing the key priorities set out in MTP 2027 and, by steadily executing them, strive to further enhance corporate and shareholder value.

August 2026

Ryoichi Kado

_{Representative Director, President & COO}