SAKAE ELECTRONICS CORPORATION

The Group’s core business is the sale of general-purpose industrial electronic components and electronic equipment. It operates as a single business segment. Its consolidated subsidiaries are Toei Denshi Co., Ltd. (Chiyoda-ku, Tokyo; capital: ¥16 million; principal business: electronic component sales; ownership: 100.0%) and Taiei Electronics Co., Ltd. (Taipei, Taiwan; capital: NT$5 million; principal business: electronic component sales; ownership: 100.0%). Taiei Electronics Co., Ltd. was established in March 2026 as a wholly owned subsidiary. For the fiscal year ended March 2026, consolidated net sales were ¥7,330 million, operating income was ¥139 million, ordinary income was ¥154 million, and net income attributable to owners of the parent was ¥113 million. Total assets were ¥7,361 million and net assets were ¥4,818 million. Cash and cash equivalents at the end of the period were ¥1,091 million. The Company had 81 employees; the figure for temporary employees includes unclear disclosures. Average age was 41, average length of service was 11 years, and average annual salary was ¥5,066,831. Looking ahead, the Company has formulated a medium-term management plan for the fiscal years ending March 2026 through March 2028 and aims to enhance corporate value through management conscious of the cost of capital. Its principal numerical targets are consolidated net sales of ¥15 billion by the fiscal year ending March 2028, ROIC and ROE of at least 8%, and a price-to-book ratio (PBR) of at least 1x. Key initiatives include enhancing profitability by developing new customers and fields, expanding into social infrastructure and heavy electrical equipment, expanding overseas with a focus on East Asia, and reviewing the domestic sales structure; improving management efficiency through DX-driven operational efficiency and productivity gains, human-resource development, and health management; improving capital efficiency through management conscious of the cost of capital, establishing a dividend policy, and enhancing shareholder returns; and strengthening IR activities. Sustainability initiatives include strengthening human capital, promoting environmental management, and introducing and operating environmental management based on ISO 14001.