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】August 12, 2021
【Fiscal Period】1st quarter of 75th term (from April 1, 2021 to June 30, 2021) 【Company name】HIROSE ELECTRIC CO., LTD.
【Title and name of representative】Kazunori Ishii, President and Representative Director
【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) | ||||
74th Fiscal Term | 75th Fiscal Term | |||
Consolidated cumulative | Consolidated cumulative | 74th Fiscal Term | ||
first quarter | first quarter | |||
Fiscal period | From April 1, 2020 | From April 1, 2021 | From April 1, 2020 | |
to June 30, 2020 | to June 30, 2021 | to March 31, 2021 | ||
Sales | 27,400 | 38,442 | 133,538 | |
Quarterly profit before income | ||||
taxes or profit before income | 6,092 | 9,443 | 28,332 | |
taxes | ||||
Quarterly profit attributable to | 4,417 | 6,686 | 19,916 | |
owners of the parent | ||||
Quarterly comprehensive income | ||||
attributable to owners of the | 5,462 | 6,827 | 28,431 | |
parent | ||||
Equity attributable to owners of | 307,251 | 314,005 | 326,092 | |
the parent | ||||
Total Assets | 343,636 | 357,045 | 370,504 | |
Quarterly earnings per share | 121.78 | 185.84 | 549.10 | |
-basic (Yen) | ||||
Quarterly earnings per share | 121.78 | 185.80 | 549.04 | |
-diluted (Yen) | ||||
Ratio of total equity attributable to | 89.4 | 87.9 | 88.0 | |
owners of the parent (%) | ||||
Net cash provided by operating | 9,816 | 9,343 | 35,818 | |
activities | ||||
Net cash used in investing | (3,299) | 14,690 | (20,702) | |
activities | ||||
Net cash used in financing | (4,556) | (19,107) | (9,278) | |
activities | ||||
Balance of cash and cash | 52,543 | 62,725 | 57,837 | |
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.
- 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).
- "Diluted quarterly earnings per share" is listed at the same price as "Basic quarterly earnings per share", because there were no potential shares with dilutive effect in the first quarter of the 74th fiscal term.
2. Description of Business
There were no significant changes in our business during the first quarter of the fiscal year ending March 31, 2022. 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 three months ended June 30, 2021.
There were no material events.
2. Management Analysis of Financial Position, Operating Results and Cash Flows Forward-looking statements below were determined as of June 30, 2021.
(1) Overview of Operating Results
In the first quarter of the fiscal year ending March 31, 2022, the restriction of economic and social activity, and the stagnation of consumer spending has been prolonged due to repeated declaration of a state of emergency affected by the increased number of cases of COVID-19. On the other hand, exports recovered and business sentiment has been polarized depends on industry.
In overseas market, COVID-19 vaccination has been progressing. In Europe and the United States, the resume of economic activity is becoming remarkable. In China where the economic activity has recovered in advance, the activity level remained strong and the business condition is recovering clearly.
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. The sales for mainly consumer electronics, automotive and industrial business has grown. As a result, sales revenue in the first quarter increased by 40.3% to JPY 38,442 million compared to the same period of the previous fiscal year. Operating profit increased by 54.2% to JPY 9,094 million, and quarterly profit attributable to owners of the parent company increased by 51.4% to JPY 6,686 million as compared with the first quarter of fiscal 2020.
The business results by 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 quarter of the fiscal year ending March 31, 2022 increased by 41.6% to JPY 34,417 million, operating profit increased by 49.2% to JPY 8,426 million compared with the first quarter of the fiscal 2020.
[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 for Wi-Fi and Bluetooth communication in smartphones and PCs, GPS antenna connection for automobiles and high frequency signal connection for wireless communication devices and electronic measuring instruments. Optical fiber connectors and coaxial switches are also included in this segment. Segment sales for the first quarter of the fiscal 2021 increased by 23.2% to JPY 2,748 million. Operating profit increased by 137.2% to JPY 623 million.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the first quarter of the fiscal 2021 increased by 49.4% to JPY 1,277 million, operating profit resulted JPY 45 million (FY2020.1Q: operating loss JPY 15 million.)
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(2) Overview of Cash Flows
Cash and cash equivalents at the first quarter of the fiscal year ending March 31, 2022 increased by JPY 4,888 million to JPY 62,725 million compared to the end of the fiscal year ended March 31, 2021.
a. Cash flows from operating activities
Net cash provided by operating activities increased by JPY 9,343 million. (In the fiscal 2020.1Q, it increased by JPY 9,816 million.) This increase was mainly due to a rise in capital by appropriating quarterly income before tax, JPY 9,443 million, and depreciation and amortization, JPY 4,201 million.
b. Cash flows from investing activities
Net cash used in investing activities increased by JPY 14,690 million. (In the fiscal 2020.1Q, it decreased by JPY 3,299 million.) This is mainly due to income by net decrease in term deposit, JPY 18,158 million.
c. Cash flows from financing activities210816qfr1Q_e
Net cash used in financing activities decreased by JPY 19,107 million. (In the fiscal 2020.1Q, it decreased by JPY 4,556 million.) This is because of decrease in capital by payment for share buy-back, JPY 14,572 million and the dividend payment, JPY 4,354 million.
(3) Analysis of financial condition
Total assets of FY2021.1Q decreased by JPY 13,459 million to JPY 357,045 million compared to the end of the previous consolidated fiscal year mainly because other financial assets decreased. Total liabilities decreased by JPY 1,372 million to JPY 43,040 million due to the decrease in income tax payable. Although quarterly profit was recorded and other components of equity including foreign currency translation adjustment increased, treasury shares increased because of off-auction own share repurchase and retained earnings declined due to the dividend of surplus. As a result, total equity decreased by JPY 12,087 million to JPY 314,005 million. Total equity attributable to owners of the parent resulted 87.9%. (FY2021 88.0%)
(4) Assumptions used for accounting estimates
There are no significant changes in the accounting estimated from "Management Analysis of Financial Position, Operating Results and Cash Flows" stated in the annual securities report of FY 2020 and assumptions used for the estimates.
(5) Research and development
Our research and development expenses for the three months ended June 30, 2021 were JPY 1,990 million. As the achievement of research and development activities, fixed assets including tools appropriated to JPY 491 million. When these amount are added up, the total of R&D investment amount was JPY 2,481 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 June 30, 2021.
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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 first quarter | issued as of the filing | authorized financial | Description | ||
(Shares) | date (Shares) | instruments firms | ||||
(June 30, 2021) | (August 12, 2021) | association where the | ||||
Company is registered | ||||||
Ordinary | Tokyo Stock Exchange, Inc. | The number of shares | ||||
38,175,942 | 38,175,942 | per unit of shares is | ||||
share | (the first section) | |||||
100 shares | ||||||
Total | 38,175,942 | 38,175,942 | − | − | ||
(Note) The number of shares issued as of the filing date do not include the share issued by share acquisition rights from August 1, 2021 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 | ||||
(Yen in millions) | (Yen in millions) | (Yen in millions) | ||||
(Shares) | (Shares) | millions) | ||||
From April 1, 2021 | − | 38,175,942 | − | 9,404 | − | 12,007 |
to June 30, 2021 | ||||||
- Major Shareholders Not applicable.
- Information on voting rights
We cannot identify the description of shareholders registry as of June 30, 2021, and stated the information based on the shareholders registry as of March 31, 2021.
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HRS - Hirose Electric Co. Ltd. published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 September 2021 15:51:03 UTC.