In 1968, Kaga Electronics was established as an independent trading company which specializes in electronics. The company has continued to expand its operations to keep in line with the development of the electronics industry. The Kaga Electronics Group, as of March 31, 2025, consists of 73 group companies (25 domestic and 48 overseas entities), has 8,560 employees globally. Our capital stock, as of March 31, 2025 stood at 12.1 billion yen. And, in the fiscal year ended March 31, 2025 we posted consolidated sales of 547.7 billion yen. Today, Kaga Electronics continues to grow globally as a general trading company specializing in electronics.

The Medium-Term Management Plan 2027 for fiscal years 2025–2027 (MTP 2027) identifies two growth drivers—the trading company business for the sale of electronic equipment and components, and the EMS business for circuit board mounting and manufacturing—driven by organic growth and new M&As. For fiscal year 2027, ending March 2028, which is the final year of MTP 2027, we have set minimum operating targets of 800 billion yen in net sales, 36 billion yen in operating income, and 12% ROE. Beyond that, we envision a scenario where, by fiscal year 2028, which marks the 60th anniversary of our founding, we will join the ranks of companies with net sales of 1 trillion yen, and fulfilling our vision as Japan’s No. 1 corporate group in the industry, as well as becoming a competitive, world-class company. Following the grand design outlined in the previous medium-term management plan, we have now defined an approach to capital policy aimed at enhancing our commitment to growth investments. We have also further evolved our shareholder return policy, including raising the consolidated dividend payout ratio and introducing a dividend on equity ratio (DOE).
At the beginning of May, in the current fiscal year ending March 2026 (the first year of MTP 2027), we announced the acquisition of Kyoei Sangyo Co., Ltd., a mid-sized trading company in the same industry, through a takeover bid. This takeover was implemented in July, with Kyoei Sangyo being incorporated as our consolidated subsidiary.
The financial results for the first quarter, announced in August, exceeded our internal plan for both net sales and profit, which resulted in higher sales and profit. We have also revised the full-year earnings forecast upward by incorporating Kyoei Sangyo’s business outlook for the second quarter and beyond into our plans. This changed the earnings forecast from a decline in net sales and profit, which was projected at the beginning of the fiscal year, to a rise. In light of this revision, we have also increased the annual dividend forecast by 10 yen over the forecast at the beginning of the fiscal year.

Driven by our management philosophy, “Everything we do is for our customers,” while also maintaining accelerated efforts to address the key issues outlined in MTP 2027, we will strive to achieve the plan’s goals. In this endeavor, we will work to increase corporate and shareholder value even further.