76th Fiscal Term Annual Report
From April 1, 2022 to March 31, 2023
To Our Shareholders
In the first half of FY2022, orders remained favorable due to supply chain disruptions and COVID- 19-related lockdown demand. However, monetary tightening prompted an economic downturn in the second half, and there has been a mounting sense of uncertainty looking forward.
Meanwhile, new electronic devices that address changing lifestyles and labor shortages have been emerging, and moves toward digitization and automation have been persisting unabated.
Given Hirose Group's mission of creating value-based products, we will sustain our future-oriented investment without letting up in seeking to swiftly address such changes.
We will engage in business operations enlisting a medium- to long-term perspective with the aim of achieving consistent and continuous growth.
Kazunori Ishii, President and Representative Director
■ Results and business environment in FY2022
In FY2022, we achieved sales of ¥183.2 billion and an operating profit ratio of 25.5%.
This constitutes growth to the tune of 1.5 times the ¥121.8 billion in sales of FY2019 recorded amid the onset of component shortages due to the COVID-19 pandemic.
Whereas sales remained steady in the mature smartphone market, Hirose Group's sales growth has been driven by increases over the last three years of 85% in industrial equipment, 55% in consumer equipment, and 55% in automotive.
Electronic devices in each of the fields continue to evolve amid steadily progressing labor shortages and lifestyle changes. As such, we are convinced that opportunities are expanding when it comes to connectors that link electronic devices.
On the other hand, we are well aware that this growth is not solely attributable to our own efforts. Given the inclusion of orders exceeding actual demand due to supply chain disruptions, we encountered a slowdown in orders starting from the second half of FY2022.
However, despite a temporary phase of inventory adjustment, development of new devices by customers has been in full swing amid a scenario where the megatrends remain unchanged.
Hirose Group is an enterprise that engages in value-based product development in response to such customer expectations.
Despite the prospect of a downturn in demand with respect to the near-term of FY2023, we see this as a pivotal year in terms of unwaveringly laying the groundwork for full-fledged growth.
■ Investment from a medium- to long-term perspective
Over the past three years, we have been contending with shortages of materials and supply chain disruptions, thereby causing us to become acutely aware of the importance of stable product delivery.
With Hirose Group encountering growing sales volume, we believe that it has become necessary for us to take our efforts to the next level. As such, this calls for two major areas of significant investment.
1
① Strengthening manufacturing expertise
- Construction of new factory in Koriyama Japan primarily for automotive and industrial equipment connectors (slated for completion in 2024)
- Expansion of HIROSE KOREA manufacturing of automotive connectors and smartphone and consumer equipment connectors (slated for completion in 2024)
- Establishmentof Tohoku Advanced Technology Center in Morioka Japan to serve as production facility and development site (slated for
completion in 2023)
②Developing a next-generation supply chain management system
- Establishment of a new system capable of ensuring flexible and timely response from a BCP perspective, while extending supplier partnerships worldwide
Uncertain economic times particularly give rise to opportunities for Hirose Group, given its robust financial structure.
We will continue to engage in business with our sights set on achieving sustained growth without letting up on investment enlisting a medium- to long-term perspective.
We look forward to the continual support and guidance of our shareholders.
TOPICCONNECTION 2022 Hirose Technology Exhibition
Held once every three years, the Hirose Technology Exhibition was most recently held in two locations in Yokohama and Osaka.
This technology exhibition, which is an event exclusively for our customers, is distinctive given that it mainly showcases new products and future concept items and also given that all of the exhibition guides are our engineers.
For Hirose Group, which seeks to offer high added value through differentiated products, this exhibition provides valuable opportunities for its customers and our engineers to exchange ideas about future electronic devices and connectors.
The CONNECTION 2022 event, which marked the 15th time we have held the technology exhibition, welcomed approximately 7,000 visitors from both Japan and overseas, despite travel restrictions imposed due to the COVID-19 pandemic.
At the venue, we showcased a diverse range of exhibits displaying products such as wearable devices as well as automotive and industrial equipment in a disassembled format. This generated ample feedback from customers who drew new inspiration from design philosophies of different industries.
We are pleased to have been able to provide our customers with value distinctive to Hirose Group, which handles an extensive range of applications enlisting its three-pillar strategy.
HIROSE ELECTRIC will keep striving to serve as a company that addresses and exceeds customer expectations.
2
Financial Highlights
- Sales
Millions of yen | Interim | Full year | ||
200,000 |
183,224 | ||
163,671 | ||
150,000 | ||
133,538 | ||
100,000 | 94,704 | |
79,188 | ||
61,036 | ||
50,000 | ||
0 | ||
74th | 75th | 76th |
- Operating profit
Millions of yen | Interim | Full year | ||
50,000 |
46,751 | |||
40,765 | |||
40,000 | |||
30,000 | 27,885 | 27,170 | |
20,000 | 19,792 | ||
12,893 | |||
10,000 | |||
0 | |||
74th | 75th | 76th |
- Profit attributable to owners of parent
Millions of yen | Interim | Full year | |
36,000 | |||
34,648 | |||
31,437 | |||
30,000 | |||
24,000 | |||
19,916 | 20,636 | ||
18,000 | |||
14,797 | |||
12,000 | |||
9,338 | |||
6,000 | |||
0 | |||
74th | 75th | 76th |
- Basic earnings per share
Yen | Interim | Full year | |
1,200 | |||
1,000 | 1,002.04 | ||
885.39 | |||
800 | |||
600 | 549.10 | 594.23 | |
414.96 | |||
400 | |||
257.48 | |||
200 | |||
0 | |||
74th | 75th | 76th |
- Equity attributable to owners of parent to total assets ratio & Operating profit to sales ratio
Equity attributable to owners of parent to total assets ratio
-
Operating prot to sales ratio
100
90 | ||
88.0 | 86.6 | 87.2 |
80 | ||
70 | ||
60 | ||
50 | ||
40 | ||
30 | ||
20 | 24.9 | 25.5 |
20.9 |
10
0
74th75th76th
- Dividends per share
Yen | Interim | Full year | 500 |
500 | |||
440 | |||
400 | |||
300 | |||
240 | 220 | ||
200 | |||
160 | |||
120 | |||
100 | |||
0 | |||
74th | 75th | 76th |
3
Overview of Consolidated Statements of Financial Position
(Millions of yen)
Previous scal year
As of March 31, 2022
Current scal year
As of March 31, 2023
Previous scal year
As of March 31, 2022
Total liabilities
Current scal year
As of March 31, 2023
Total liabilities
Cash and cash equivalents 68,394
Trade and other receivables 43,427
Property, plant and equipment 61,148
Intangible assets 3,704
Other nancial assets 38,504
Total assets
394,783
Current
assets
280,823
Non-current
assets
113,960
Total assets
401,357
Current
assets
256,658
Non-current
assets
144,699
Cash and
cash equivalents 88,029
Trade and
other receivables 41,931
Property, plant and equipment 63,795
Intangible assets 4,212
Other nancial assets 63,466
Equity
attributable to owners of parent to total assets ratio 86.6%
and equity
394,783
Liabilities
52,714
Equity
342,069
and equity
401,357
Liabilities
51,504
Equity
349,853
Equity
attributable to owners of parent to total assets ratio 87.2%
Overview of Consolidated Statements of Income
(Millions of yen)
Previous scal year
From April 1, 2021 to March 31, 2022
Sales |
163,671 |
Operating | Prot attributable |
prot to | |
to owners of parent | |
sales ratio | |
24.9% | 31,437 |
Operating prot
40,765
Current scal year
From April 1, 2022 to March 31, 2023
Sales | ||
183,224 | Income tax expense | |
Finance income | 13,943 | |
46,751 | 2,188 | |
Operating | Finance costs | |||
prot to | ||||
348 | Prot attributable | |||
sales ratio | ||||
25.5% | Operating prot | Prot before tax | to owners of parent | |
34,648 | ||||
48,591 | ||||
4
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
HRS - Hirose Electric Co. Ltd. published this content on 23 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2023 05:26:08 UTC.