Creativity and Ambition
A solution design company
that is creating the future through advanced electronics

Financial Results Presentation Material
for the Nine Months Ended December 31, 2023
HAGIWARA ELECTRIC HOLDINGS CO., LTD.
(TSE Prime Market & NSE Premier Market: 7467)

March 1, 2024
FY24/3 Q3 Financial Results Presentation Material

Highlight
FY2024/3 Q3 recorded increases in both net sales
and profit for three consecutive periods

・Net sales reached at ¥165.4 billion, up 23.2% YoY.
Financialresultssummary for
FY2024/3 Q3Earnings
forecasts for
FY2024/3Sales increased due to increased demand as a result of therecovery of automobile production volume, use in additional
vehicle models and other factors, as well as due to capturing IT
investment, capital investment, etc. of customers.
・Operating profit exceeded the increase in selling, general andadministrative expenses, and reached at ¥6.4 billion, a YoY
increase of 52.5%, due to an increase in gross profit. Ordinary
profit increased 47.6% YoY to ¥6.1 billion.
・Despite the disappearance of recording a gain on bargain
purchase of ¥670 million on M&A as an extraordinary income inthe same period of the previous fiscal year, profit attributable toowners of parent increased 16.8% YoY to ¥3.9 billion.

Earnings forecasts have not been changed fromthe figures announced on November 10.

FY24/3 Q3 Financial Results Presentation Material

1Financial results summary for FY2024/3 Q3

Earnings forecasts for FY2024/3

FY24/3 Q3 Financial Results Presentation Material

2Financial results for FY2024/3 Q3■ Net sales, operating profit, ordinary profit and profit saw increases inboth net sales and profit for three consecutive periods.

(Unit: Millions of yen)

FY2023/3 Q3FY2024/3 Q3AmountRatio

AmountRatio

Net sales

134,233

100%

165,437100%+31,203+23.2%

Gross profit

12,545

9.3%

15,334

9.3%+2,789+22.2%

Selling, general andadministrative expenses

8,320

6.2%

8,893

5.4%

+572

+6.9%

Operating profit

4,224

3.1%

6,441

3.9%

+2,216+52.5%

Ordinary profit

4,163

3.1%

6,146

3.7%

+1,982+47.6%

Profit attributable toowners of parent

3,372

2.5%

3,939

2.4%

+566

+16.8%ー413.33

ー+32.46

ー

*1

YoY

*2Earnings per share (Yen)

380.87*1 As of FY2023/3 Q3, provisional accounting treatment had been applied to the gain on bargain purchase associated with M&A,
however since it was finalized at the end of the previous fiscal year, the figures presented in this material reflect the finalized
value of gain on bargain purchase of ¥670 million.
*2 The number of issued shares increased YoY due to the exercise of rights to subscribe for new shares. The average number ofshares during the period was 8,855,885 shares in FY2023/3 Q3 and 9,530,106 shares in FY2024/3 Q3.
FY24/3 Q3 Financial Results Presentation Material

3

Positive factors for net sales■ Net sales increased by ¥31.2 billion, or 23.2% YoY.
■ Sales in the Electronic Devices Business were encouraging mainly inJapan due to the recovery of automobile production volume, use ofadopted products in additional vehicle models and other factors, inaddition to robust sales in the Technology Solutions Business due tocapturing IT investment, capital investment, etc. of customers.
Net sales(Billions of yen)

＋25.7

134.2Increase indevice sales(Japan)・Increased
demandFY24/3 Q3 Financial Results Presentation Material+3.6
Increase indevice sales(overseas)・ Differenceby area・Weak yen

＋1.7

165.4

Increase insolutionsales
・ Increased
demand4

Changing factors for operating profit■ Operating profit increased by ¥2.2 billion, or 52.5% YoY.
■ While gross profit significantly increased mainly due to increased net
sales and weak yen, an increase in selling, general and administrative
expenses was curbed, leading to increased operating profit. Operating
profit margin increased by 0.8 points.
Operating profit(Billions of yen)

＋2.4

＋0.3

6.4
Increase ingross profit
due to otherfactors

4.2
Increase ingross profit
accompanied
by increased
sales

FY24/3 Q3 Financial Results Presentation Material(0.5)

・Foreign exchange
fluctuations
・Spot projects, etc.

Decrease in
selling,
general andadministrativeexpenses
・Personnelexpenses
・R&D expenses,
System
Implementation, etc.

5

Electronic Devices Business: Financial results summary■ Sales were encouraging due to factors such as the recovery of
automobile production volume and use of adopted products in additional
vehicle models and weak yen.
■ Segment profit increased by 1.1 points mainly due to curbing selling,general and administrative expenses.
(Unit: Millions of yen)
FY23/3 Q3AmountNet sales
Segment profit

FY2024/3 Q3
Ratio

AmountRatio

YoY

115,756100%

145,178

100%+29,421+25.4%

2,728

2.4%

5,114

3.5%

+2,385+87.4％Net sales

Segment profit and segment profit margin

Millions of yen%

Millions of yen
145,178

150,000

6,000

15.0
5,114

120,000

5,000

115,756
96,22490,00076,8094,00073,672

9.0
2,728

3,000

60,0002,000
30,000
0

12.0

2,136
2.8

1,762
2.4

20/3/3Q

21/3/3Q

1,000
20/3/3Q

21/3/3Q

22/3/3Q

FY24/3 Q3 Financial Results Presentation Material

23/3/3Q

24/3/3Q

0

1,871
1.9

22/3/3Q

3.5
2.4

23/3/3Q

6.0
3.0

24/3/3Q

0.0

6

Electronic Devices Business: Net sales by client (YoY)■ Sales were encouraging, mainly with respect to major customers, due
to new applications and use in additional vehicle models, together withthe increase in activity of customers’ production due to the easing of
the semiconductor shortage and expansion in the field of vehicle(Unit: Millions of yen)electrification.
(Unit: Millions of yen)

FY2023/3 Q3FY2024/3 Q3

145,178

AmountRatio

Amount

Ratio

YoY

DENSO
CORPORATION

59,72051.6％

77,121

53.1％＋17,400＋29.1％

TOKAI
RIKA CO.,
LTD.

3,772

3.3％

4,372

3.0％

＋599

＋15.9％

Others

17,481

15.1％

25,26917.4％+7,788 ＋44.6％

34,78130.0％

38,416

26.5％+3,634

115,756ー

145,178

ー

115,756
77,121

59,720

4,372
3,772

25,26917,481

Overseasclients
34,781*1+10.4％

38,416

Total
23/3/3Q 24/3/3Q＋29,421 ＋25.4％*1 Sales to the overseas offices of major customers, including DENSO CORPORATION, have been
included in Overseas clients.
FY24/3 Q3 Financial Results Presentation Material

7

Electronic Devices Business: Net sales by region (YoY)■ Sales, mainly sales in Japan, increased as automobile production
volume was encouraging. Overseas sales were uneven by region.
(Unit: Millions of yen)

FY2023/3 Q3(Unit: Millions of yen)

FY2024/3 Q338,416AmountRatio

AmountRatio

Japan

80,97470.0%

106,761

73.5% +25,787＋31.8％

Asia

18,19715.7%

17,477

12.0%

(719)

(4.0)%

UnitedStates

13,718

11.9%

17,60312.1%+3,885＋28.3％

Europe

2,865

2.5%

3,334

2.3%

+469

+16.4%

Overseas(total)34,78130.0%

38,416

26.5%+3,634＋10.4％

Total

115,756ー

145,178

ー +29,421+25.4%*1

YoY

34,781

17,477
18,197

17,603
13,718

2,865

3,334

23/3/3Q 24/3/3Q*1 Region names represent the Group’s business locations (excluding intragroup transactions).
Financial results included in FY2024/3 Q3 are figures from January 2023 to September 2023 as
the fiscal year-end for the Group’s bases in Singapore, China and the United States is December.

FY24/3 Q3 Financial Results Presentation Material

8Technology Solutions Business: Financial results summary■ Sales increased by capturing demand for IT investment aimed atautomation and efficiency improvement.
■ The segment profit margin declined 1.6 points due to changes in sales
composition by business.
(Unit: Millions of yen)
FY2023/3 Q3AmountNet sales
Segment profit

FY2024/3 Q3Ratio

AmountRatio

YoY

18,477100%

20,259100%+1,782

+9.6%

1,495

8.1%

1,326

6.5%

(168)

(11.3)%Net sales

Segment profit and segment profit margin

Millions of yen%

Millions of yen

25,000

1,495

1,500

1,326

20,25920,00018,477

16,825

1,200

16,217
14,51815,000900

10,000

12.0

1,045

10.0

868
737

8.0
8.1

600
5.2
300

6.0
6.5

6.4
5,000

14.0

4.0

5.1

2.0

0

20/3/3Q

21/3/3Q

22/3/3Q

FY24/3 Q3 Financial Results Presentation Material

23/3/3Q

24/3/3Q020/3/3Q

21/3/3Q

22/3/3Q

23/3/3Q

24/3/3Q

0.09

Technology Solutions Business: Net sales by business (YoY)■ Although there was a move to inventory adjustment of industrial
equipment companies, the Technology Solutions Business captured
demand for IT investment aimed at automation and efficiency (Unit: Millions of yen)
improvement, etc.
FY2023/3 Q3FY2024/3 Q3(Unit: Millions of yen)

20,25918,477

*1
6,567

5,134

10,432

AmountRatio

AmountRatio

YoYSystemSolutions

5,134

27.8%

6,567

32.4%

+1,432＋27.9％

Embedded

10,432

56.4%10,166

50.2%

(265)

(2.5)％

FASolutions

2,911

15.8%

3,526

17.4%

＋615

＋21.1％

18,477ー

20,259ー+1,782＋9.6％

10,166

2,911

3,526

23/3/3Q

24/3/3QTotal*1 The names of the previous IT, Embedded, and Measurement & FA were changed to the System
Solutions, Embedded and the FA Solutions from FY2024/3. The details of each business are as follows.

System: Sale of IT devices, development of apps, development of IoT systems, security measures, etc.
Embedded: Development and manufacturing of industrial computers, sale of industrial embedded computers for machinery, etc.
FA: Sale of measurement devices, inspection equipment and FA devices, development, manufacturing and sale of various automated and labor-saving manufacturing equipment.

FY24/3 Q3 Financial Results Presentation Material

10Technology Solutions Business: Net sales by industry (YoY)■ Aggressively working to capture IT investment and capital investment ofautomobile-related companies. Sales increased by capturing demandfor IT investment aimed at automation and efficiency improvement.
(Unit: Millions of yen)

(Unit: Millions of yen)

20,259FY2023/3 Q3

18,477
6,829

FY2024/3 Q3AmountRatio

AmountRatio

YoY

Automotive

5,435

29.4%

6,829

33.7%

+1,394+25.7%

FA &Industrial
equipment

9,979

54.0%

10,197

50.3%

+218

+2.2%

Others

3,062

16.6%

3,232

16.0%

＋169

＋5.5%

Total

18,477

ー20,259

ー+1,782

+9.6%

5,435

9,979

10,197

3,062

3,232

23/3/3Q

24/3/3Q

FY24/3 Q3 Financial Results Presentation Material

11

Financial results summary for FY2024/3 Q3

Earnings forecasts for FY2024/3

FY24/3 Q3 Financial Results Presentation Material

12Earnings forecasts for FY2024/3■ Earnings forecasts have not been changed from the figures announced
on November 10.
(Unit: Millions of yen)

FY2023/3

FY2024/3

AmountRatio

AmountRatio

186,001100%

227,500

100%+41,498+22.3%

Operating profit

6,725

3.6%

8,350

3.7%

+1,624+24.2％

Ordinary profit

6,417

3.5%

8,200

3.6%

+1,782+27.8%

Profit attributableto owners ofparent

4,912

2.6%

5,300

2.3%

+387

+7.9%

554.71－549.93－(4.78)－Net sales

YoY*1Earnings per share (Yen)*1 The number of issued shares has increased compared to the same period of the previous fiscal year due to the exercise ofshare acquisition rights, and earnings per share is calculated taking into account the increase in the number of issued sharesat the time of each announcement. The exercise of all share acquisition rights was completed on October 6, 2023, bringing theCompany’s total number of issued shares to 10,118,000 shares as of the release of this document.
FY24/3 Q3 Financial Results Presentation Material

13

Return to shareholder■ Setting a basic policy of stable payment aiming at a dividend payout
ratio of around 30%.
■ The company plans to pay an annual dividend of ¥185, which includes
a commemorative dividend of ¥10 at the end of the fiscal year.
Interimdividend

Trends in dividends and dividend ratio

Yen300
250

30.4
27.2

29.7

30.6

32.8

Dividend
payout ratio

Year-end
dividend％

33.6

34.2
30.6

30.8

(Forecast)

27.9 Inc. anniversary 30
dividend of ¥10200
Inc. anniversary
dividend of ¥5Inc. anniversary
dividend of ¥5150

100
50

090
95

Inc. anniversary
dividend of ¥535
2515/035555

354535354050

16/03

17/03

18/03

19/03

FY24/3 Q3 Financial Results Presentation Material

5550
20/035060

3040

21/03

22/03

20(Forecast)

109560(Actual)

0
23/03

24/03
14Creativity and Ambition
A solution design company
that is creating the future through advanced electronics

We sincerely ask for your continued
support and encouragement
Earnings forecasts in this material are decided based on the information currently available.
Forecasts include various uncertain factors, and actual business results may differ significantly from these forecasted figures.