English translation
【Document to be filed】Quarterly Financial Report
【Provisions to base upon】Article 24-4-7, paragraph 1 of the Financial Instruments and Exchange Act 【Filing to】Director-General of the Kanto Local Finance Bureau
【Date of filing】November 14, 2022
【Fiscal Period】2nd quarter of 76th term (from July 1, 2022 to September 30, 2022) 【Company name】HIROSE ELECTRIC CO., LTD.
【Title and name of representative】Kazunori Ishii, President
【Location of head office】2-6-3 Nakagawa Chuoh, Tsuzuki-Ku, Yokohama, Kanagawa, Japan 【Telephone number】+81-45-620-7410
【Contact person】Keiji Hara, General Manager of Accounting Department
【Place of contact】2-6-3 Nakagawa Chuoh, Tsuzuki-Ku, Yokohama, Kanagawa, Japan 【Telephone number】+81-45-620-7410
【Contact person】Keiji Hara, General Manager of Accounting Department
【Place where the document to be filed is available for public inspection】Tokyo Stock Exchange, Inc. (2-1,Nihonbashi-kabutocho,Chuo-ku, Tokyo, Japan)
【Company Information】
1. Overview of the Company
1. Changes in major management indicators
(Yen in millions) | ||||
75th Fiscal Term | 76th Fiscal Term | 75th Fiscal Term | ||
Consolidated First Half | Consolidated First Half | |||
Fiscal period | From April 1, 2021 | From April 1, 2022 | From April 1, 2021 | |
to September 30, 2021 | to September 30, 2022 | to March 31, 2022 | ||
Revenue | 79,188 | 94,704 | 163,671 | |
(Second quarter from July 1 to Sep 30) | (40,745) | (48,130) | ||
Quarterly profit before tax or | 20,384 | 29,247 | 43,081 | |
profit before tax | ||||
Quarterly profit attributable to | 14,797 | 20,636 | ||
owners of parent | 31,437 | |||
(8,111) | (10,584) | |||
(Second quarter from July 1 to Sep 30) | ||||
Quarterly comprehensive income | 14,132 | 28,409 | 40,390 | |
attributable to owners of parent | ||||
Equity attributable to owners of | 321,338 | 344,789 | 342,069 | |
parent | ||||
Total Assets | 365,731 | 401,282 | 394,783 | |
Quarterly earnings per share | 414.96 | 594.23 | ||
-basic (Yen) | 885.39 | |||
(229.48) | (307.49) | |||
(Second quarter from July 1 to Sep 30) | ||||
Quarterly earnings per share | 414.85 | 594.12 | 885.16 | |
-diluted (Yen) | ||||
Ratio of total equity attributable to | 87.9 | 85.9 | 86.6 | |
owners of parent (%) | ||||
Cash flows from operating | 20,116 | 24,793 | 44,323 | |
activities | ||||
Cash flows from investing | 13,649 | 4,725 | (10,875) | |
activities | ||||
Cash flows from financing | (19,277) | (26,210) | (25,249) | |
activities | ||||
Balance of cash and cash | 72,415 | 74,318 | 68,394 | |
equivalents at end of the quarter | ||||
(Notes) 1. We prepare the condensed quarterly consolidated financial statements, and the transition of the major management indicators are not included.
2. The financial data above are based on the condensed quarterly consolidated financial statements and consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS).
2. Description of Business
There were no significant changes in our business during the first half of the fiscal year ending March 31, 2023. There were also no changes in major subsidiaries.
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- Business Overview
-
Risk Factors
Regarding the business and financial situation stated in this report, there were no matters that may have significant impact on the investment decision and no significant changes in the risk factors stated in the annual securities report for the previous fiscal year during the six months ended September 30, 2022.
There were no material events.
2. Management Analysis of Financial Position, Operating Results and Cash Flows Forward-looking statements below were determined as of September 30, 2022.
(1) Overview of Operating Results
Regarding Japanese economy in the first half of the fiscal year ending March 31, 2023, even though capital investment and export remained strong, domestic demand has been stagnant due to the spread of COVID-19 occurred in this summer and the increase in material cost affected by resource price increase and weak yen. As a result, the business sentiment has been polarized further depends on the industry.
In overseas market, the business conditions of American and European countries have been on a declining trend because of the concerns about inflation and economic restraint. In China, zero-COVID policy has been continued and export decreased due to the economic slowdown in America and Europe. Slowdown of the world economy has been deepening.
Under this situation, Hirose group has been expanding global business mainly for smartphone market, automotive market and industrial market, and promoting reinforcement of development, sales and production system for new products with highly added value to respond advanced market needs quickly. As a result, the sales for mainly industrial, automotive and consumer electronics has been grown, and the revenue in the first half increased by 19.6% to JPY 94,704 million compared to the same period of the previous fiscal year. Operating profit increased by 37.3% to JPY 27,170 million, and quarterly profit attributable to owners of parent increased by 39.5% to JPY 20,636 million as compared with the first half of fiscal 2021.
The business results by reportable segments are as stated below. [Multi-pin connectors]
Our flagship multi-pin connectors include a variety of connector types such as circular connectors, rectangular connectors, connectors for ribbon cables, connectors for printed circuit boards, connectors used for FPCs (flexible printed circuits boards) and nylon connectors. This kind of connectors are used widely, such as for smartphones, tablet PC, communication equipment, automotive electronics, measuring and control equipment, FA equipment, and medical electronics equipment, as well as other industrial equipment. We expect that demands for this connectors will grow associated with progress of advanced information and telecommunications network society, and energy saving society considering environment in the future. Segment sales for the first half of the fiscal year ending March 31, 2023 increased by 20.6% to JPY 85,668 million, operating profit increased by 37.2% to JPY 25,142 million compared with the first half of the fiscal 2021.
[Coaxial connectors]
Coaxial connectors are a special type of high-performance connector used primarily for microwave and other high- frequency signals. This is used mainly for antenna connection of Wi-Fi and Bluetooth for smartphone and PC, GPS antenna connection for automobile and high-frequency signal connection for wireless communication device and electronic measuring instruments. Optical fiber connectors and coaxial switches are also included in this segment. Segment sales for the first half of the fiscal 2022 increased by 7.7% to JPY 6,100 million. Operating profit increased by 20.2% to JPY 1,719 million.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the first half of the fiscal 2022 increased by 18.1% to JPY 2,936 million, operating profit increased by 619.1% to JPY 309 million.
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(2) Overview of Cash Flows
Cash and cash equivalents at the first half of the fiscal year ending March 31, 2023 increased by JPY 5,924 million to JPY 74,318 million compared to the end of the fiscal year ended March 31, 2022.
a. Cash flows from operating activities
Cash flows from operating activities increased by JPY 24,793 million. (In the fiscal 2021.1H, it increased by JPY 20,116 million.) This increase was mainly due to a rise in capital by appropriating quarterly profit before tax, JPY 29,247 million, and depreciation and amortization, JPY 8,344 million.
b. Cash flows from investing activities
Cash flows from investing activities increased by JPY 4,725 million. (In the fiscal 2021.1H, it increased by JPY 13,649 million.) This is mainly due to proceeds from net decrease in time deposit, JPY 11,555 million and proceeds from sale and redemption of investments, JPY 8,773 million.
c. Cash flows from financing activities
Cash flows from financing activities decreased by JPY 26,210 million. (In the fiscal 2021.1H, it decreased by JPY 19,277 million.) This is because of decrease in capital by payment for share buy-back, JPY 15,890 million and dividends paid, JPY 9,900 million.
(3) Analysis of financial condition
Total assets of FY2022.2Q increased by JPY 6,499 million to JPY 401,282 million compared to the end of the previous consolidated fiscal year mainly because cash and cash equivalents, and inventory increased. Total liabilities increased by JPY 3,780 million to JPY 56,493 million due to the increase in income taxes payables and other financial liabilities. Quarterly profit was recorded and other components of equity including translation adjustment increased. As a result, total equity increased by JPY 2,719 million to JPY 344,789 million. The ratio of total equity attributable to owners of parent resulted 85.9%, decreased by 0.7% compared with the previous consolidated fiscal year end.
(4) Assumptions used for accounting estimates
There are no significant changes in the accounting estimates from "Management Analysis of Financial Position, Operating Results and Cash Flows" stated in the annual securities report of FY2021 and assumptions used for the estimates.
(5) Research and development
Our research and development expenses for the six months ended September 30, 2022 were JPY 4,211 million. As the achievement of research and development activities, fixed assets including tools appropriated to JPY 1,214 million. When these amount are added up, the total of R&D investment amount was JPY 5,425 million. There were no significant changes in research and development activities for the period.
3. Material Agreements, etc
There were no decision or conclusion of significant business agreement during the three months ended September 30, 2022.
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3. Information on the Company
1. Information on the Company's Shares
(1) Total number of shares, etc.
① Total Number of Shares
Class | Total number of shares authorized to be issued (Shares) | |||||
Ordinary share | 80,000,000 | |||||
Total | 80,000,000 | |||||
②Issued Shares | ||||||
Number of shares issued as | Number of shares | Stock exchange on which | ||||
the Company is listed or | ||||||
Class | of the end of second quarter | issued as of the filing | authorized financial | Description | ||
(Shares) | date (Shares) | instruments firms | ||||
(September 30, 2022) | (November 14, 2022) | association where the | ||||
Company is registered | ||||||
Ordinary | Tokyo Stock Exchange, Inc. | The number of shares | ||||
37,227,089 | 37,227,089 | per unit of shares is | ||||
share | (prime market) | |||||
100 shares | ||||||
Total | 37,227,089 | 37,227,089 | − | − | ||
(Note) The number of shares issued as of the filing date do not include the share issued by share acquisition rights from November 1, 2022 to the filing date of this report.
- Information on the share acquisition rights, etc.
- Details of share option plans
Not applicable.
- Other information about share acquisition rights Not applicable.
- Information on Moving Strike Convertible Bonds Not applicable.
- Changes in the total number of shares issued, common stock, etc.
Change in the | Balance of the | Change in | Balance of | Change in capital | Balance of | ||
Date | total number of | total number of | |||||
common stock | common stock | reserve | capital reserve | ||||
issued shares | issued shares | ||||||
(Yen in millions) | (Yen in millions) | (Yen in millions) | (Yen in millions) | ||||
(Shares) | (Shares) | ||||||
From July 1, 2022 | |||||||
to September 30, | − | 37,227,089 | − | 9,404 | − | 12,007 | |
2022 |
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HRS - Hirose Electric Co. Ltd. published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 02:31:05 UTC.