Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 10, 2023
Company name:HAGIWARA ELECTRIC HOLDINGS CO., LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7467
URL https://www.hagiwara.co.jp/
President and Representative Director
Moritaka KimuraInquiries:
Senior Vice President
Scheduled date to file Quarterly Securities Report:

Yoshihiro Hirakawa
November 10, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 8, 2023
Yes

Holding of quarterly financial results meeting:

Yes

TEL

052-931-3511(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2023
Six months ended September 30, 2022

Millions of yen
108,013
86,412

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
25.0
4,589
71.8
4,623
58.9
3,036
16.5
20.7
2,671
52.2
2,909
68.9
2,606 127.5

Earnings per share

Diluted earnings per share

Yen
326.01
294.37Six months ended September 30, 2023
Six months ended September 30, 2022Yen
325.85–(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Millions of yen
115,328
106,577

Equity ratio

Millions of yen
49,51143,531

%
41.1
38.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
60.00
95.00

Yen–

Yen
95.00

Yen
155.00–90.00

185.00Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
227,500
22.3
8,350
24.2
8,200
27.8
5,300
7.9
549.931

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):

No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

10,065,200 shares As of March 31, 2023

9,018,000 shares

Number of treasury shares at the end of the period
As of September 30, 2023

155,471 shares As of March 31, 2023

158,474 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

9,313,675 shares Six months ended September 30, 2022

28,854,055 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

10,92032,735

14,35732,961

Electronically recorded monetary claims - operating
Securities

15,537–

17,347105

Merchandise and finished goods
Work in process

34,411
1,191

36,634
1,404

Raw materials and supplies
Other

1,813
2,704

2,119
2,841

(16)

(7)

99,297

107,763

Property, plant and equipment
Intangible assets

4,297
222

4,424
216

Investments and other assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets2,797

2,964

Allowance for doubtful accounts

(37)

(41)

Total investments and other assets

2,760

2,923

7,280

7,564

106,577

115,328

Notes and accounts payable - trade
Electronically recorded obligations - operating

17,408
3,823

19,196
5,311

Short-term borrowings
Current portion of long-term borrowings

6,084
4,152

6,930
3,602

Income taxes payable
Provision for product warranties

1,476
40

1,535
40

Provision for loss on orders received
Other

27
4,759

14
5,067

Total current liabilities

37,774

41,69810,00010,000Long-term borrowings
Other

14,844427

13,593525

Total non-current liabilities

25,271

24,11963,04665,817

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Bonds payable

Total liabilities

3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Net assets
Shareholders' equity
Share capital

4,361

6,006

Capital surplus
Retained earnings

4,874
31,5296,523
33,724

Treasury shares

(290)

(284)

40,47445,969Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

305–

399
(1)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

772
(152)

1,163
(140)

Total accumulated other comprehensive income

924

1,421

–
2,131

02,119Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

443,531

49,511

106,577

115,328

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

86,41278,325108,013
97,561Gross profit

8,087

10,452

Selling, general and administrative expenses

5,416

5,863

Operating profit

2,671

4,589

Interest income
Dividend income

8112
11

Foreign exchange gains
Other

194
92

127
41

Total non-operating income

306

183

Non-operating income

Non-operating expenses
Interest expenses

4195

Interest expenses on bonds
Loss on sale of trade receivables–18218Other823

Total non-operating expensesOrdinary profit
Extraordinary income
Gain on sale of investment securities

68148

2,909

4,623

14–

Gain on bargain purchase
Other670––
6

Total extraordinary income

685

600Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

500

3,595

4,629

967

1,570

2,627

3,058

21

22

2,606

3,036

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

2,627

3,058

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(27)
293
(1)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

501
(3)

391
12

Total other comprehensive income

473

496

3,101

3,554

3,080

3,532

2122

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Cash flows from operating activities
Profit before income taxes

3,595

4,629

Depreciation
Gain on bargain purchase

136
(670)

165
–

Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset

(1)
(50)

(5)
(30)

Increase (decrease) in provision for loss on orders received
Interest and dividend income–(19)

(12)
(13)

Interest expenses
Loss (gain) on sale of investment securities41(14)116–

Decrease (increase) in trade receivables
Decrease (increase) in inventories

2,179(10,883)(2,221)(2,741)

Increase (decrease) in trade payables
Other, net

68
511

3,275
312

(5,109)3,473

20(41)

14(117)

Income taxes paid

(1,049)(1,500)Net cash provided by (used in) operating activities(6,180)

1,869

Purchase of investment securities
Proceeds from sale of investment securities

(1)
20(2)
36

Purchase of property, plant and equipment
Purchase of intangible assets

(45)
(43)

(165)
(34)

(1,209)

–(1)

(40)

(1,280)(206)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

6,298
4,060

845
1,150

Repayments of long-term borrowings
Proceeds from issuance of shares resulting from exercise of(950)(2,951)

–

3,279

(0)

–

Dividends paid
Dividends paid to non-controlling interests

(529)
(34)

(837)
(34)

Proceeds from issuance of share acquisition rights
Other, net–
(37)

11(68)Net cash provided by (used in) financing activities

8,807

1,395

Effect of exchange rate change on cash and cash equivalents479

379

SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities

Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

share acquisition rights
Purchase of treasury shares

Net increase (decrease) in cash and cash equivalents

1,825

3,436

Cash and cash equivalents at beginning of period

8,506

10,920Cash and cash equivalents at end of period

10,332

14,357

7