FACTBOOK
7467/TSE 1st Section, NSE 1st Section

HAGIWARA ELECTRIC HOLDINGS CO., LTD.
For the six months of the fiscal year
ending on March 31, 2020

Contents
Corporate Profile

1-2

Consolidated Balance Sheet

3

Consolidated Statement of Income/Information by Segment

4

Consolidated Statement of Cash Flows

5

Consolidated Profitability Indicators

6

Consolidated Profitability/Efficiency Indicators

7

Consolidated Efficiency/Stability Indicators

8

Stock Information

9-10

Corporate Vision

11

Our BusinessCorporate Profile (Operating companies in Japan)

12-14
15

Corporate Profile
Corporate Outline (as of September 30, 2019)
Name of Company

HAGIWARA ELECTRIC HOLDINGS CO., LTD.

Head Office2-2-1 Higashisakura, Higashi-ku, Nagoya City, Aichi Pref. 461-8520 Japan

Representative

Mitsuo Iwai, President and Representative Director

EstablishedMarch 31, 1948

Share Capital

4,361,243,696 yen

Number of Employees

Consolidated: 581*Excluding temporary employees

Major Business

Formulation and management of business strategies for group companies selling electronic
devices and electronic equipment and manufacturing and selling FA equipment

Subsidiaries

HAGIWARA ELECTRONICS CO., LTD.
HAGIWARA TECHNO SOLUTIONS CO., LTD.

Organizational structure of the GroupAs of September 30, 2019

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

1

Corporate Profile
Corporate History Timeline
1948

Hagiwara Denki Kogyo was founded.

1956

Partnership with NEC Corporation initiated and wholesale
division selling electronic components established.

1965

Company name changed to HAGIWARA ELECTRIC CO., LTD.

1981

The Nisshin Office (production factory) was established.

1995

Initial public offering of shares

1998

The Miyoshi Distribution Center was established.

2011

The Korea local subsidiary was established.
The China (Free Trade Zone, Shanghai) local subsidiary wasestablished.

2014

Listed to the 1st Section of Tokyo Stock Exchange
Listed to the 1st Section of Nagoya Stock Exchange
The Thailand local subsidiary was established.

2018

Company name changed to HAGIWARA ELECTRICHOLDINGS CO., LTD., and status changed to holding
company.
HAGIWARA HOKUTO TECHNO CO., LTD. was established.
X-Base Co., Ltd. was established.

1958 Hagiwara Denki Kogyo Co., Ltd. was founded.
1966 The Tokyo Branch Office was established.
1993 The Kyushu Office was established.
1996 The Singapore local subsidiary was established.
2006 The US local subsidiary was established.
The China (Shanghai) local subsidiary was established.
2012 The Germany local subsidiary was established.
The Data Center was opened.
2016 The Kansai Branch was established.

Group Network
Hagiwara Electric Europe GmbHHagiwara Electric (Thailand) Co., Ltd.
Hagiwara America, Inc.

Hagiwara (Shanghai) Co., Ltd.

<Japan>HAGIWARA ELECTRIC HOLDINGS CO., LTD.
HAGIWARA ELECTRONICS CO., LTD.
HAGIWARA TECHNO SOLUTIONS CO., LTD.
HAGIWARA HOKUTO TECHNO CO., LTD.
X-Base Co., Ltd.
India Liaison OfficeHagiwara Electric Korea Co., Ltd.

(Singapore Hagiwara Pte. Ltd.)Singapore Hagiwara Pte. Ltd.

Trend of Business Performance(¥ million)

Net sales

70,000Operating profit margin
62,33657,07760,00044,70440,00029,70041,926

42,661

44,2743.0%

3.2%

48,046
4.0%

33,58930,00020,0005.0%

52,37650,000

2.7%
2.6%

3.2%

3.5%

3.3%

2.7%

3.0%
2.0%

2.3%
1.7%

10,000

6.0%

1.0%

0

0.0%
FY3/11
1H

FY3/12
1H

FY3/131H

FY3/141H

FY3/151H

FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Note: The Company transitioned to a holding company system on April 1, 2018.
The business performance up to FY3/18 in this FACTBOOK refers to the figures of the former HAGIWARA ELECTRIC CO., LTD. before the transition.

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

2

Consolidated Balance Sheet(￥ million)

FY3/16
1H EndFY3/17
1H EndFY3/18
1H EndFY3/191H EndFY3/20
1H End46,99442,476
5,821
24,667
951
100
9,897
277
153
610

47,511
43,1705,535
24,8791,597

53,98149,286
5,424
26,2242,159

59,31654,194
7,013
29,7501,980

62,21057,126
8,389
31,636
1,512－
10,047
312
153
646

－
13,861
422
228
968

－
14,154
460
274
564

－
14,250420
286
633

AssetsTotal assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

(3)

(1)

(3)

(2)

(3)

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts

4,518
2,687
165
1,665
1,686
(21)

4,340
2,629
117
1,593
1,614
(21)

4,695
2,608
105
1,980
1,981
(0)

5,122
2,664
121
2,336
2,336
(0)

5,084
2,677
202
2,204

(￥ million)

FY3/16
1H EndFY3/17
1H EndFY3/18
1H EndFY3/191H EndFY3/20
1H End23,12019,661
11,636
－
4,302
2,095
477

23,16818,815
9,834
1,804
4,322
1,080
439

28,69524,576
11,482
2,769
6,835
850
783

27,986
22,418
11,591
2,161
5,770
225
724

－
1,150

－
1,334

27,42024,086
11,286
2,413
6,590
1,756
488
56
1,494

－
1,856

－
1,945

3,458
2,961
30

4,353
3,631
249

3,333
2,875
156

4,118
3,800
79

5,568
5,175
181

－
－

Liabilities
Total liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for loss on order received
Other
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Net assets
Total net assets
Shareholders' equity

466

472

301

239

212

23,87423,23824,342
24,227

26,561
26,04430,62030,12634,22331,992

Share capital
Capital surplus
Retained earnings
Treasury shares

3,301
3,792
16,156
(12)

3,301
3,792
17,487
(354)

3,301
3,792
19,305
(354)

4,361
4,861
21,246
(343)

4,361
4,867
23,096
(332)

636
202
359
73

115
180
58
(124)

516
396
225
(105)

－
46,994－47,511－
53,981

475
361
206
(92)
18

176
268
107
(199)
2,054

59,316

62,210

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Non-controlling interests
Total liabilities and net assets

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

3

Consolidated Statement of Income/Information by Segment
Consolidated Statement of Income(￥ million)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim income
Surrender value of insurance policies
Refunded import duty
Outsourcing service income
Other
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of investment securities
Loss on sales of trade receivables
Other
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on reversal of asset retirement obligations
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of membership
Impairment loss
Loss on valuation of investment securities
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H44,27439,794
4,480
3,069
1,411
31
4
7

48,046
43,620
4,426
3,143
1,283
45
4
7
－
－
－
15

57,07751,283
5,794
3,820
1,974
53
1
10
17

62,33656,179
6,157
4,114
2,043
60
2
9

－
－
－
－
7
11
71
23
33

52,37647,326
5,050
3,398
1,651
72
3
8
11
－
30
－
－
18
43
18

－
0
－
－
23
51
20

－
－
23
1
1,680

－
－
17
13
1,975

－
－
－
－
1
1

－
－
－
－
1
1

－
1
1,998
663
1,335
28
1,307

－
18
112
21
58

－
10
4
1,370
0
－
0

－
－
32
1,216
124
120
－
4
9
0

－
0
0

－
9

－
25
－
－
－
22
101
24
38
28
7
2
2,001
－
－
－
－
3
0
2

－
－
－
1,370
494
875

－
1,331
457
874

－
－
－
1,678
535
1,142

－
875

－
874

－
1,142

－
－
0
1,974
634
1,340
3
1,336

(￥million)

FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Net sales
Electronic Devices BusinessTechnology Solutions Business
Segment profit
Electronic Devices BusinessTechnology Solutions Business
Reconciling items

44,27436,501
7,772
1,411
1,562
470
(621)

48,04640,490
7,555
1,283
1,628
335
(681)

52,37643,910
8,466
1,651
2,008
412
(769)

57,077
46,687
10,390
1,974
1,420
553

62,33650,824
11,512
2,043
1,406
636

－

－

Information by Segment
Net Sales Breakdown by Business Segment

Note: The Company changed the calculation method of segment profit from the first half of FY3/19.
Along with this, corporate expenses and income related to the Company (the holding company) are allocated to each segment.

Net Sales Breakdown by Major Client(￥million)

FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Net sales
DENSO CORPORATION
Toyota Motor Corporation
TOKAI RIKA CO., LTD.
Others44,274
24,696
3,554
2,774
13,24848,04627,9603,752
2,452
13,881

52,37630,422
3,581
2,603
15,77057,077
32,7734,262
2,150
17,89262,33635,333
4,425
2,262
20,315

Note: Net sales to overseas subsidiaries of DENSO CORPORATION, etc. are included in "Others."

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

4

Consolidated Statement of Cash Flows
FY3/16
1H(￥ million)

FY3/171H

FY3/181H

FY3/191H

FY3/20
1H

Cash flows from operating activities
Net cash provided by (used in) operating activities

394

604

(1,768)

324

908

1,370

1,331

1,678

1,974

1,998

Depreciation

98

94

84

86

96

Impairment loss

－

9

－

－

－

Loss (gain) on sales and retirement of non-current assets

0

(120)

1

1

0

Increase (decrease) in allowance for doubtful accounts

(0)

3

(1)

0

(0)

Increase (decrease) in retirement benefit liability

(31)

(36)

(28)

(30)

(21)

Increase (decrease) in provision for loss on order received

－

－

55

(11)

－

Interest and dividend income

(11)

(11)

(11)

(12)

(11)

Profit before income taxes

Interest expenses

23

21

18

20

24

Surrender value of insurance policies

－

－

(30)

－

－

Gain on reversal of asset retirement obligations

－

(4)

－

－

－

Loss (gain) on sales of investment securities

(0)

－

－

－

－

Decrease (increase) in trade receivables

575

28

1,545

365

1,455

Decrease (increase) in inventories

(496)

701

(3,010)(1,409)(3)

Increase (decrease) in trade payables

(292)

(872)

(916)

(248)

(1,133)

Other, net

(327)

(15)

(567)

76

(481)

Subtotal

907

1,128

(1,181)

813

1,922

Interest and dividends received

12

12

11

12

12

Interest paid

(24)

(20)

(17)

(20)

(24)

Income taxes paid

(501)

(515)

(580)

(480)

(1,001)

Net cash provided by (used in) investing activities

(77)

506

(6)

(292)

(133)

Proceeds from withdrawal of time deposits

－

300

－

70

－

Payments into time deposits

－

－

－

(200)

－

Purchase of investment securities

(26)

(36)

(21)

(15)

(5)

Cash flows from investing activities

Proceeds from sales of investment securities

0

－

－

－

－

Proceeds from redemption of investment securities

－

100

－

－

－

Proceeds from sales of property, plant and equipment

－

234

－

－

－

Purchase of property, plant and equipment

(35)

(96)

(43)

(111)

(80)
(29)

Purchase of intangible assets

(13)

(13)

(24)

(39)

Proceeds from cancellation of insurance funds

－

－

86

－

－

Other, net

(2)

17

(2)

4

(17)

Cash flows from financing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings

223

(940)

1,770

474

179

278

(196)

2,081

252

233

Proceeds from long-term borrowings

500

1,450

500

700

1,250

Repayments of long-term borrowings(247)(1,547)

(432)

(893)

(800)

Purchase of treasury shares

(0)

(341)

(0)

－

－

Proceeds from issuance of shares

－

－

－

879

－
(485)

Dividends paid

(291)

(290)

(366)

(467)

Proceeds from share issuance to non-controlling shareholders

－

－

－

15

－

Dividends paid to non-controlling interests

－

－

－

－

(5)

Other, net

(13)

(15)

(15)

(12)

(11)

Effect of exchange rate change on cash and cash equivalents

16

(248)

(16)

(32)

(73)

Net increase (decrease) in cash and cash equivalents

557

(78)

(20)

473

881

Cash and cash equivalents at beginning of period

5,193

5,543

5,375

6,540

7,508

Cash and cash equivalents at end of period

5,751

5,465

5,354

7,013

8,389

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

5

Consolidated Profitability Indicators
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Gross profit on Net sales

10.1

9.2

9.6

10.2

9.9

Operating profit margin

3.2

2.7

3.2

3.5

3.3

Ordinary profit margin

3.1

2.5

3.2

3.5

3.2

Net profit margin

2.0

1.8

2.2

2.3

2.1

Operating profit margin

(%)

(%)

Gross profit on Net sales＝Gross profit/Net sales
Operating profit margin＝Operating profit/Net sales
Ordinary profit margin＝Ordinary profit/Net sales
Net profit margin＝Profit attributable to owners of parent/Net sales

Gross profit on Net sales
Gross profit(¥ million)

Operating profit margin

Gross profit on Net sales

Operating profit(%)(¥ million)

8,000

12.0

2,500

5.0

6,000

9.0

2,000

4.0

1,500

3.0

4,000

6.0
1,000

2.0

500

1.0

2,000

3.0

0

0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

0

FY3/201H

0.0
FY3/161H

FY3/181H

FY3/191H

FY3/201H

Net profit margin

Ordinary profit margin
Ordinary profit

FY3/17
1H

Ordinary profit margin

Profit attributable to owners of parent
Net profit margin

(%)

(%)

(¥ million)

2,500

5.0

1,500

2,000

4.0

1,200

4.0

1,500

3.0

900

3.0

1,000

2.0

600

2.0

500

1.0

300

1.0

0.0

0

(¥ million)0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

5.0

0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

FY3/201H

6

Consolidated Profitability/Efficiency Indicators
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/20
1HInterest coverage ratio(times)

61.8

61.6

92.3

99.3

85.6

Number of employees at end of period(persons)

470

496

517

547

581

39

42

42

49

56

Net sales per employee(\ thousand)

86,98289,305

93,696

95,767

97,859Ordinary profit per employee(\ thousand)

2,692

2,260

3,005

3,314

3,141

Net profit per employee(\ thousand)

1,719

1,625

2,043

2,242

2,052

Number of temporary employees at end of period (persons)Interest coverage ratio＝(Operating profit+Interest income+Dividend income)/Interest expenses
Net sales per employee＝Net sales/(No. of employees at end of period+No. of temp. employees at end of period)
Ordinary profit per employee＝Ordinary profit/(No. of employees at end of period+No. of temp. employees at end of period)
Net profit per employee＝Profit attributable to owners of parent/(No. of employees at end of period+No. of temp. employees at end of period)

Net sales per employee

Interest coverage ratio(times)(¥ thousand)

120.0

120,000

100.0

100,000

80.0

80,00060.0

60,00040.0

40,00020.0

20,0000.0

0FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

FY3/16
1H

Ordinary profit per employee

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Net profit per employee(¥ thousand)(¥ thousand)

4,000

2,500
2,000

3,000

1,500

2,000
1,000

1,000

500
0

0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

FY3/161H

FY3/171H

FY3/181H

FY3/191H

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

FY3/201H

7

Consolidated Efficiency/Stability Indicators
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Equity ratio

50.8

51.2

49.2

51.6

51.7

Interest-bearing debt ratio

19.9

19.0

20.8

19.4

18.0

Acid-test ratio

159.9

170.1

140.4

157.6

185.3

Current ratio

216.0

229.4

204.6

220.5

254.8

Non-current ratio

18.9

17.8

17.7

16.7

15.8

Non-current assets to Non-current liability ratio

16.5

15.1

15.7

14.8

13.5

(%)

Equity ratio＝Equity/Total assets
Interest-bearing debt ratio＝Interest-bearing debt/Total assets
Acid-test ratio＝Liquid assets/Current liabilities
Current ratio＝Current assets/Current liabilities
Non-current ratio＝Non-current assets/Equity
Non-current assets to Non-current liability ratio＝Non-current assets/(Equity+Non-current liabilities)

Equity ratio

Interest-bearing debt ratio

(%)

(%)

60.0

25.0

50.0

20.0

40.0

15.0

30.0

10.0

20.0

5.0

10.0
0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

Non-current ratio

Current ratio
(%)

(%)

300.0

40.0

250.0

30.0
200.0
150.0

20.0

100.0

10.0
50.0
0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

0.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

FY3/201H

8

Stock Information
Per Share Indicators(\)
Share price at end of period
Closing stock price range for the last 12 months
Earnings per share (EPS)Dividend per share (DPS)FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

1,742
1,406-2,110

1,839
1,667-2,337

3,275
1,843-3,275

3,390
2,892-3,990

2,680
2,557-3,385

105.4035.00

106.4335.00

140.6640.00

153.2550.00

147.9850.00

FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/20
1H

290
33.2
8.26

284
32.9
8.64

325
28.4
11.64

441
32.6
11.06

441
33.8
9.06

8,305
3,171

8,212
3,359

8,125
2,840

8,722
2,794

8,833
2,825

Other Indicators(\ million)

Total amount of dividends
Dividend payout ratio
Price earnings ratio (PER)(%)(times)Term-average number of shares outstanding (thousand shares)
Number of shareholders(persons)

Notes: The Company conducted acquisition of treasury shares through market purchases during the first half of FY3/17.
: The Company issued the share acquisition rights during the second half of FY3/18.
Dividend payout ratio＝DPS/EPSPER＝Share price at end of period/EPS*2

Dividend per share

Total amount of dividends/Dividend payout ratio(¥)(¥ million)

60.00

500

50.0

400

40.0

300

30.0

200

20.0

100

10.0

50.00

Total amount of dividends

Dividend payout ratio

(%)

40.00
30.00
20.00
10.00
0.00
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H00.0
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/20
1H

Number of shareholders

PER(times)(persons)

12.00

4,000

10.00
3,000

8.00
2,000

6.00
4.00

1,000

2.00
0

0.00
FY3/161H

FY3/171H

FY3/181H

FY3/191H

FY3/201H

FY3/161H

FY3/171H

FY3/181H

FY3/191H

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

FY3/201H

9

Stock Information
Status of Major Shareholders
as of September 30, 2019

Top 10 Shareholders

Number of shares

Shareholding ratio (%)

Japan Trustee Services Bank, Ltd. (trust account)909,800

10.29

STANY Co., Ltd.

495,250

5.60

The Master Trust Bank of Japan, Ltd. (trust account)

426,800

4.83

BBH FOR FIDELITY PURITAN TR: FIDELITY SR INTRINSICOPPORTUNITIES FUND

350,000

3.96

Tomoaki Hagiwara

336,400

3.81

Yoshiaki Hagiwara

248,175

2.81

Employees' Stockholding

240,074

2.72

MUFG Bank, Ltd.

232,500

2.63

Nagoya Small and Medium Business Investment & Consultation Co., Ltd.

230,000

2.60

Trust & Custody Services Bank, Ltd. (securities investment trust account)

221,200

2.50

Note: Shareholding ratio is calculated excluding treasury shares (180,644 shares).

Breakdown of Type of Shareholders
Individuals and others
Other Japanese companies
Financial instruments business operators

Foreign institutions and others
Financial institutions
Treasury shares
11.03%

FY3/201H

42.44%

1.04%
12.33%

31.16%

2.00%

9.41%
FY3/191H

44.35%

1.23%
12.34%

30.60%

2.07%

8.10%
FY3/181H

49.13%

0%

10%

20%

1.97%
13.43%

30%

40%

50%

60%

25.05%

70%

80%

2.32%

90%

100%

Share Price and Trading Volume
(¥)

4,000

3,000
Share price (Month-end)

2,000

1,000

0
1,500
Monthly trading volume (thousand shares)

1,000
500
0
9/20159/20169/20179/2018

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

9/201910

Corporate Vision
Our vision is to be a global supplierof one-stop solutions providing our customers
with the best practices from devices to systems.
The foundation of our corporate activities is to prioritize ourcustomers' perspective. We not only meet our customers’ needs,
but we exceed their expectations by using our knowledge as a
trading company to make proposals and leverage our proventechnologies to deliver the best solution.
The Hagiwara Electric Group works as one to fulfill its role andElectronic Devices
Business

Supporting the Automotive
Society of Tomorrow

mission as a technology-related trading company. We contribute to
the achievement of a prosperous society by creating technologicalbases to support our electronic devices business, technology
solutions business, and overseas business expansion, throughwhich we create solutions that add new value and create greater
opportunities for success in all fields.

Technology
Solutions BusinessSupporting the IoT Society
for Tomorrow

Crafting the automobile of tomorrow as a universal device
specialist

Expanding tomorrow's potential with IoT to realize a society
where data and information are connected

The automotive industry has entered a period of rapid change. As the
speed of development has accelerated, there have been
revolutionary innovations in automotive technologies, from electricvehicles (EV) to advanced driver-assistance systems (ADAS).
Hagiwara Electric Holdings strives to further these advancements, byproviding state-of-the-art device solutions to the automotive society of
tomorrow, which transcend conventional concepts.

We provide one-stop IoT solutions to realize a "connected society" byfusing and growing factory automation (FA) and other technologies
for measurement and IT cultivated on the factory floor.

Overseas Business
Expansion

Supporting Your Global
Expansion

Technological
Base

Supporting Hagiwara
Electric Technologies

One-stop solutions to connect manufacturing across the globe

Creating new value in society with the power of technology

The Hagiwara Electric Group supports the globalization of
manufacturing by actively promoting overseas expansion. We
currently have a worldwide network originating in Japan and covering
North America, Asia and Europe. By utilizing the group know-how
and resources of our local bases, we are able to provide the samelevel of support for customers engaged in overseas manufacturing
operations as for customers operating in Japan.

From development of original component technologies to applied
technology and cutting-edge technology, we actively pursue newpotential and functional diversity in addition to seeking newtechnologies. We create new value in society by being responsive tothe expanding markets of many different industries, while at the sametime, using our strengths to support the business of Hagiwara ElectricGroup.

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

11

Our BusinessElectronic Devices Business

Crafting the automobile of tomorrowas a universal device specialist
The automotive industry has entered a period of rapid change.
As the speed of development has accelerated, there have been revolutionary innovations in automotive technologies,
from electric vehicles (EV) to advanced driver-assistance systems (ADAS).
Hagiwara Electric Holdings strives to further these advancements, by providing state-of-the-art device solutions to theautomotive society of tomorrow, which transcend conventional concepts.

Business Domains
Contributing to the automotive society of tomorrow,transitioning beyond conventional concepts, by providing the cutting edge solutions
Supporting the Latest Innovations
Internal vehicle devices
The safety and comfort of one’s car is paramount to a relaxed and enjoyable driving experience.
We handle a diverse selection of electronic devices that support these developments.
What’s more, our team is equipped to provide a personalized experience with advanced device
solutions. Our specialists are experienced in developing new cutting edge products that are
customized and tailored to suit your company’s needs.
Embedded software development
With the increasing usage of electronics in vehicles, the demand for microcontrollers has
increased.
To meet this ever increasing demand, we are developing improved software to advance thequality and performance of automotive microcontrollers.
Supporting the Evolution of Industry
Devices for industry and social infrastructure
As automation and motorization expand, so too does the technology used in our daily lives. The
electronic devices we supply support these developments and allow us to respond quickly to
our customers’ needs in a variety of fields even as the global demand outgrows production.

Features of Electronic Devices Business1. The Hagiwara of Cars

3. The Hagiwara of Technological Strengths

A wealth of achievements in the automotive industry especiallyin the Chubu region

Our efforts in the field of hardware development and EMS/ODM

The Hagiwara Electric Group is based in Nagoya, where the world’s
top automobile and auto parts manufacturers are located. When the
Hagiwara Electric Group was founded, we put down roots in the
Chubu region, where we have been able to create and foster close
relationships with our customers. These relationships have beencultivated over many years and at their cores are built on trust. This
has allowed us to gather the latest knowledge about industry trends
as well as accumulate the latest and most advanced technology
available with which the cars of the future will be fashioned.

In recent years, semiconductors such as LSIs with integratedfunctionality have become mainstream. The Hagiwara Electric Grouputilizes its technological strengths to support the functional
development of semiconductors as well as the incorporation of “plusalpha” functions into general purpose products. Due to ouradvancements in software creation and design, we are able toprovide electronics manufacturing services (EMS) and original design
manufacturing (ODM).

2. The Hagiwara of Solutions

4. The Hagiwara That Is Everywhere in Society

Established partnerships with global leaders and drivers ofgrowthA presence in multiple fields including industry, robots, housing
equipment, and nursing care

The partnerships we promote are those that will benefit ourcustomers and provide us the tools to resolve any issues they mightface. With a focus on long-established global brands, we are always
in pursuit of manufacturers who will be the leaders of the next
generation. This commitment to coordinating and selecting only thebest assists us in providing our customers with most innovative
solutions available.

Device solutions from the Hagiwara Electric Group are utilized infactories to accelerate factory automation (FA). Additionally, oursolutions are used in both the housing equipment field and thenursing care field. Our cutting-edge inventory of electronic
components and ability to propose solutions support automation andmotorization, bringing more convenience to our lives.

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

12

Our BusinessTechnology Solutions Business

Expanding tomorrow's potential with IoT
to realize a society where data and information are connected
We provide one-stop IoT solutions to realize a "connected society"by fusing and growing factory automation (FA) and other technologies
for measurement and IT cultivated on the factory floor.

Solutions for Every Area

Features of Technology Solutions Business1. Trading Company with Manufacturing Functions

3. Looking Ahead and Being a Pioneer

Partnerships with a variety of manufacturers and our own
manufacturing function

Using our technological strengths stay new and on trend

In addition to the major manufacturers we have been working with formany years, we also actively collaborate with leading manufacturers
across the globe. We assist our customers in finding state-of-the-art
technologies and products that suit them. We also have amanufacturing arm where we develop and manufacture our own
original products. We resolve the issues faced by our customers
through our commitment to quality and meticulous support.

From selling computers and servers to building networks and IT
platforms, we have always used state-of-the-art and trending
technologies such as measurement solutions that support modelbased development. We will continue to use our proven, extensive
technological resources to seek new technologies that will form thefoundation of the next generation.

2. Achievements in Industry

4. Widely Connected IoT

A wealth of achievements at auto factories and other production
sites especially in the Chubu region

Achieving a connected IoT where data is gathered frommachines and objects and then analyzed

The Chubu region is where many world-class automobile
manufacturers and automobile parts manufacturers have theirproduction bases. The region is also playing host to an increasing
number of companies engaged in manufacturing equipment for
production facilities such as machine tools. Headquartered in Nagoya—the heart of the Chubu—the Hagiwara Electric Group has a proventrack record in production site-related business. We are also
leveraging these achievements to develop a wide range of solutions
in various other fields such as IT and security.

We can capture data from various machines and objects by utilizing
our achievements in IT, embedded devices, measurement and otherareas of factory automation (FA). The Internet of Things (IoT) willtransform accumulated data into meaningful information that will
create new value. With data collection and analysis based IoT, we
can provide a one-stop solution encompassing the entire processfrom beginning to end. This is our strength.

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

13

Our Business
Overseas Business Expansion

One-stop solutions
to connect manufacturing across the globe
The Hagiwara Electric Group supports the globalization of manufacturing by actively promoting overseas expansion.
We currently have a worldwide network originating in Japan and covering North America, Asia and Europe.
By utilizing the group know-how and resources of our local bases, we are able to provide the same level of support
for customers engaged in overseas manufacturing operations as for customers operating in Japan.
Our goal is to strengthen the development support system of local subsidiaries by implementing measures such as
stationing engineers at each location.
This allows us to contribute to the creation and expansion of global markets with our customers while at the sametime developing new products and new businesses.

Approach to Overseas Business■Meeting the global needs of Japanese companies■Proposing Solutions That Correspond with Local Needs■Expanding Our Overseas Network■Business localization■Enhancing development and design■Creating new markets

Technological BaseCreating new value in society with the power of technology
From development of original component technologies to applied technology and cutting-edge technology,
we actively pursue new potential and functional diversity in addition to seeking new technologies.
We create new value in society by being responsive to the expanding markets of many different industries,
while at the same time, using our strengths to support the business of Hagiwara Electric Group.

Hagiwara Electric's Strengths
The Hagiwara Electric Group's strength lies in the ability to use our technological advantages toprovide solutions for issues and challenges faced by our customers. Our technologies are largely
divided into support technology and development technology, and at the heart of both of these is
our component technology and experience. Electronic products are becoming increasingly
sophisticated and complex. What is needed now is not only product lineup, but also the ability tosupport all the technical aspects of a customer's project by utilizing expertise in each field of thecustomer's business. Utilizing our proven track record and the experience we have accrued, we
serve the role of a bridge between suppliers and customers. Our competencies translate into an
ability to support our customers' product development and to help their business succeed. At theheart of our ability to provide solutions is the technological strength of the Hagiwara ElectricGroup and we will further enhance it as a horizontally interconnected foundation that supports
the entire Group.

Our Technologies
Examples of Support Technologies
Support for Component Selection■Introduction of new products frommanufacturing partners■Provision of the latest product informationand technical trends■Assistance in new product evaluation andcomparative evaluation of parts

Development Support for
Customers■Support for advance development of embedded
systems■Support for development of embedded softwareand hardware mass production■Support for constructing IT and other systems(system integrator)■Introduction of partner companies that canperform development and evaluation

Examples of Development Technologies
Contracted Development ofEmbedded Systems■Embedded software development andevaluation■Development of embedded system hardware■Circuit design and evaluation of system
LSIs and ICs

Contracted Development
Related to IT Solutions■IoT-related system development■System development for production
management systems, etc.
■Construction of various FA and measurement
systems

Support for Failure Analysis■Cooperation in failure classification, reproduction
testing and analysis■Follow up on failure analysis in collaboration with
manufacturing partners

Establishment of Evaluation
Environments and Contracted
Development of Component
Technologies for Automated Driving
and Other Systems■Acquisition of car driving video and data tagging■Image processing that can be applied to electronic
mirrors and peripheral monitoring■Implementation of new algorithms in embedded systems

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

14

Corporate Profile(Operating companies in Japan)
HAGIWARA ELECTRONICS CO., LTD.

Hagiwara Electronics' mission is
to continually pursue new areas of businesswhile supporting this period of innovationin the automotive society.

Name of Company
Location
Representative

HAGIWARA ELECTRONICS CO., LTD.
Takaoka Park Building, 2-2-1 Higashi Sakura, Higashi-ku, Nagoya-shi, Aichi
Takehiko Mori, President and Representative Director

EstablishedMay 1, 2017 (Business operation commenced on April 1, 2018)

Share Capital

1,310 million yen

Major Business

Sale of integrated circuits, semiconductors and electron devices

HAGIWARA TECHNO SOLUTIONS CO., LTD.

Hagiwara Techno Solutions' mission is
to contribute to factories
that enable more efficient manufacturing
by realizing traceability using factory IoT.

Name of Company
Location
Representative

HAGIWARA TECHNO SOLUTIONS CO., LTD.
Takaoka KANAME Building, 2-28-23 Izumi, Higashi-ku, Nagoya-shi, Aichi
Kazunari Shiraki, President and Representative Director

EstablishedMay 1, 2017 (Business operation commenced on April 1, 2018)

Share Capital

310 million yen

Major Business

Sale of electronic equipment and manufacture and sale of FA equipment

HAGIWARA HOKUTO TECHNO CO., LTD.

X-Base Co., Ltd.

Name of Company

HAGIWARA HOKUTO TECHNO CO., LTD.

Name of Company

Location

Takaoka Park Building, 2-2-1 Higashi Sakura,
Higashi-ku, Nagoya-shi, Aichi

Location

Representative

Koji Fujita,
President and Representative Director

Representative

X-Base Co., Ltd.
Takaoka Park Building, 2-2-1 Higashi Sakura,
Higashi-ku, Nagoya-shi, Aichi
Yozo Terano,
President and Representative Director

Established

April 2, 2018

Established

August 1, 2018

Share Capital

45 million yen

Share Capital

70 million yen

Equity ownership
ratio

HAGIWARA ELECTRONICS CO., LTD.: 66.56%
Hokuto System Co., Ltd.: 33.44%

Major Business

Major Business

Consignment and services related toin-vehicle software verification and development

Planning, development and operation of
applied service of cutting-edge technology
centering on block chains

Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
Copyright(c) HAGIWARA
ELECTRICHOLDINGS
CO.,AllLTD.
All Rights
Reserved.

15

Contact
HAGIWARA ELECTRIC HOLDINGS CO., LTD.
General Affairs Department
Phone: +81-52-931-3511
FAX: +81-52-931-9414
E-mail: ir@hagiwara.co.jp
https://www.hagiwara.co.jp/english/