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

HAGIWARA ELECTRIC HOLDINGS CO., LTD.
For the fiscal year ended on March 31, 2020

Contents
Corporate Profile

1-2

Consolidated Balance Sheet

3-4

Consolidated Statement of Income

5

Consolidated Statement of Cash Flows6

Net Sales Breakdown by Business Segment
and Major Client

7

Consolidated Profitability Indicators

8

Consolidated Profitability/Efficiency Indicators

9

Consolidated Efficiency/Stability Indicators

10

Stock Information

11-12

Corporate Vision

13

Our BusinessCorporate Profile (Operating companies in Japan)

14-16
17

Corporate Profile
Corporate Outline (as of March 31, 2020)
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: 585*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 April 30, 2020

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.

2019 The India local subsidiary 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.
Hagiwara Electronics
India Private Limited

Hagiwara Electric Korea Co., Ltd.

Singapore Hagiwara Pte. Ltd.

Trend of Business Performance(¥ million)

Net sales

150,000

Operating profit margin

5.0%
128,206
112,249

120,000

90,00063,07660,0002.3%

78,87985,247
2.4%

89,014

93,261

3.2%

3.2%

87,632
2.9%

101,755

3.2%

119,021
3.6%

4.0%
3.3%

3.0%

3.0%

2.0%

2.2%

30,000

1.0%

0

0.0%
FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Note: 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）
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
Deferred tax assets
Other
Allowance for doubtful accounts
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts

FY3/16

FY3/17

FY3/18

FY3/19FY3/2048,81544,124
5,613
25,423
1,082
100
10,903
176
134
262
431
(3)
4,691
2,681
1,472
(984)
487
59
(34)
24
1,970
158
(69)
88

52,37047,7695,445
27,801
2,127

57,68852,8606,610
30,557
1,594

63,17958,017
7,508
33,007
1,629

68,29362,971
7,753
32,623
1,629－
10,977
349
176
373
523
(5)
4,600
2,645
1,308
(838)
470
53
(34)
18
1,917
141
(62)
79

－
12,860341
276－
14,170524
259－
16,866
349
247

－
668
(508)
159
107
1,847
1,470
4
372
(0)

－
921
(3)
5,162
2,677
1,384
(913)
470
54
(40)
13
1,917
155
(65)
90
7
774
(596)
177
218
2,266
1,317
396
553

－
3,504
(2)
5,321
2,772
1,429
(953)
476
54
(42)
11
1,917
253
(106)
147

－
588
(477)
110
147
1,862
940
96
840
(16)

－
622
(2)
4,828
2,629
1,344
(874)
469
52
(39)
12
1,917
131
(60)
70
3
707
(553)
154
108
2,089
1,448
289
352
(0)

－

－

－
853
(633)
219
199
2,349
1,250
468
630

Note: The Company applied the "Partial Amendments to Accounting Standards for Tax Effect Accounting" (Accounting Standards Board of Japan (ASBJ) Statement
No. 28 issued on February 16, 2018) from FY3/19. The figures for FY3/18 are after retrospective application for comparability.

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

3

Consolidated Balance Sheet（ \ million）
Liabilities
Total liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - other
Income taxes payable
Provision for bonuses for directors (and other officers)
Provision for loss on order received
Other
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Net assets
Total net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share acquisition rights
Non-controlling interests
Total liabilities and net assets

FY3/16

FY3/17

FY3/18

FY3/19FY3/2024,494
21,11911,536
974
4,519
2,195
27

26,68823,002
12,884
1,731
4,508
1,320
23

28,80824,536
11,585
2,914
6,582
918
21

29,73025,23011,727
3,159
5,536
925
26

－
539
53

－
526
48
11
1,927
4,272
3,925
44
0
119
80
102

－
1,536
93

－
1,273
3,374
2,613
58
1
286
69
344

－
639
52
0
1,841
3,686
3,243
51
0
191
79
119

33,17827,462
13,738
2,252
5,148
600
62
3,538
671
77

－
2,225
4,499
4,025
59
0
224
86
104

－
1,373
5,715
5,175
83
0
279
97
79

24,32023,985
3,301
3,792
16,904
(12)
334
152
306
(124)

25,681
25,267
3,301
3,792
18,527
(354)
413
282
242
(110)

33,44931,1544,361
4,861
22,274
(343)
263
296
181
(214)

35,11432,9594,361
4,867
24,063
(332)
69
225
128
(284)

－
－
48,815－－52,37028,88028,347
3,916
4,407
20,378
(354)
528
388
239
(98)
3

－
2,032
63,179－2,085
68,293－
57,688

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

4

Consolidated Statement of Income（ \ million）

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Net sales

93,261

101,755

112,249

119,021

128,206

Cost of sales

83,75992,011

101,365

106,825

115,491
12,714Gross profit

9,502

9,744

10,883

12,196

Selling, general and administrative expenses

6,486

6,643

7,251

7,876

8,541

Operating profit

3,015

3,100

3,631

4,319

4,173

Non-operating income

87

66

96

82

105

Interest income

8

7

6

9

2

Dividend income

13

13

15

19

18

Insurance claim income

－

－

－

－

27

Operations consignment fee

5

3

－

－

－

Subsidy income

35

0

－

－

－

Refunded import duty

－

15

－

－

－
0

－

Surrender value of insurance policies－
30

Gain on valuation of investment securities

－

－

17

24

－

Other

24

27

26

30

58

182

112

140

126

184

Non-operating expenses－

Interest expenses

49

39

39

43

50

Foreign exchange losses

100

26

9

27

72

Loss on sales of trade receivables

21

31

49

32

17

Commission expenses

－

－

23

6

12

Loss on valuation of investment securities

－

－

－
12

18

Share issuance costs

－

－

－
10

Other

11

14

8

4

13

Ordinary profit

2,921

3,055

3,587

4,275

4,093

8

126

7

3

1

Gain on sales of non-current assets

－

120

0

－

0

Gain on sales of investment securities

8

2

0

3

1

Gain on reversal of asset retirement obligations

－

4

－

－

－

Gain on liquidation of subsidiaries and associates

－
2

－
15

7

－
22

－
7
0

Extraordinary income

Extraordinary losses

3－

Loss on disposal of non-current assets

2

6

2

1

Loss on valuation of investment securities

－

－

－

20

0

Loss on sales of investment securities

0

－

－

－

4

Loss on liquidation of investment securities

－

－

0

－

Impairment loss

－

－
9

－

－

－

Loss on sales of membership

－

－

1

－

－

Loss on valuation of membership

－

－

－

－

2

2,926

3,166

3,591

4,256

4,087

970

1,050

1,012

1,445

1,320

Profit before income taxes
Income taxes - current
Income taxes - deferred

42

(83)

37

(11)

(8)

Total income taxes

1,012

967

1,050

1,433

1,311

Profit

1,913

2,198

2,540

2,823

2,775

Profit attributable to non-controlling interests

－
1,913

－
2,198

－
2,540

17

59

2,806

2,716

Profit attributable to owners of parent

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

5

Consolidated Statement of Cash Flows（ \ million）

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Cash flows from operating activities
Net cash provided by (used in) operating activities

793

1,003

(1,829)

419

1,092

2,926

3,166

3,591

4,256

4,087

195

193

172

186

215

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

－
2

9
(114)

－
2

－
1

－
0

Increase (decrease) in allowance for doubtful accounts

(5)

(13)

(2)

0

(0)

Increase (decrease) in provision for bonuses for directors(and other officers)

(1)

(1)

(3)

44

(16)

Increase (decrease) in retirement benefit liability

(63)

(74)

(56)

(61)

(44)

Increase (decrease) in provision for loss on order received

－

－

10

(11)

－

Interest and dividend income

(22)

(20)

(22)

(28)

(20)

Interest expenses

49

39

39

43

50

Surrender value of insurance policies

－

－

(30)

(0)

Loss (gain) on valuation of investment securities

－

(17)

(9)

－
18

Gain on reversal of asset retirement obligations

－
(8)

－
(4)
(2)

－
(0)

(3)

－
3
－

Profit before income taxes
Depreciation
Impairment loss

Loss (gain) on sales of investment securities

0

Loss (gain) on liquidation of subsidiaries and associates

－

－

(7)

－

Loss (gain) on sales of membership

－

－

1

－

－

(310)

(3,424)(2,222)(2,576)315

Decrease (increase) in trade receivables(1,383)(287)(1,975)(1,475)(2,509)

Increase (decrease) in trade payables

Decrease (increase) in inventories

582

2,104

(115)

386

1,104

Other, net

(177)

445

(65)

613

(341)

Subtotal

1,783

2,015

(703)

1,366

2,862

Interest and dividends received

23

21

23

29

21

Interest paid

(49)

(38)

(38)

(42)

(50)

Income taxes paid

(963)

(994)

(1,110)(933)(1,740)Cash flows from investing activities
Net cash provided by (used in) investing activities

(295)

93

125

(430)

(274)

Proceeds from withdrawal of time deposits

－

300

－

70

－

－
(153)

－
(348)

－
(25)

(200)
(19)

－
(78)

Payments into time deposits
Purchase of investment securities
Proceeds from sales of investment securities

15

10

0

30

21

Proceeds from redemption of investment securities

－
(61)

100

200

0

(157)

(72)

(157)

－
(123)

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

231

0

0

1

(41)

(40)

(147)

(42)

(68)

－
－
0

－
86

－
2

－

－
(1)

(22)

(8)

－
(51)
(519)

Purchase of intangible assets－(25)

Payments for lease and guarantee deposits
Proceeds from cancellation of insurance funds
Other, net
Cash flows from financing activities
Net cash provided by (used in) financing activities(112)(1,200)

2,871

1,037

Net increase (decrease) in short-term borrowings

494

(10)

2,084

(1,046)(388)

Proceeds from long-term borrowings

800

1,950

1,600

1,100

1,750

Repayments of long-term borrowings(794)(2,195)(1,320)

(993)

(925)

Purchase of treasury shares

(0)

(341)

(0)

－

－

Proceeds from issuance of shares resulting from exerciseof share acquisition rights

－

－

1,219

879

－

－
(582)

－
(575)

－
(691)

19

16

(907)

(929)

Proceeds from share issuance to non-controlling shareholders

－

－

－

2,009

－

Repayments to non-controlling shareholders

－
(29)

－
(28)

－
(21)

－
(24)

(5)
(37)

(36)

(64)

(2)

(57)

(52)

Proceeds from sales of treasury shares
Dividends paid

Other, net
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

350

(168)

1,164

968

245

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

5,543

5,375

6,540

7,508

7,753

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

6

Net Sales Breakdown by Business Segment
and Major Client
Net Sales Breakdown by Business Segment(\ million)

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Net sales

93,261

101,755

112,249

119,021

128,206

Electronic Devices Business

76,081

83,87891,971

95,692

103,700

Technology Solutions Business

17,18017,877

20,27823,32824,505

Segment profit

3,015

3,100

3,631

4,319

4,173

Electronic Devices Business

3,299

3,539

4,061

2,870

2,674

Technology Solutions Business

1,039

1,052

1,242

1,449

1,498

Reconciling items(1,323)(1,491)(1,672)－－

Note: The Company changed the calculation method of segment profit in FY3/19.
Along with this, unattributable costs and income related to the Company (the holding company) are allocated to each segment.

Net Sales Breakdown by Major Client(\ million)

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Net sales

93,261

101,755

112,249

119,021

128,206

DENSO CORPORATION

51,657

58,20963,38866,95470,427

Toyota Motor Corporation

8,416

8,541

9,020

9,329

9,703

TOKAI RIKA CO., LTD.

5,458

4,960

4,940

4,502

4,533

Others27,72930,04434,89938,23543,541

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.

7

Consolidated Profitability Indicators(% )FY3/16

FY3/17

FY3/18

FY3/19FY3/20Gross profit on Net sales

10.2

9.6

9.7

10.2

9.9

Operating profit margin

3.2

3.0

3.2

3.6

3.3

Ordinary profit margin

3.1

3.0

3.2

3.6

3.2

Net profit margin

2.1

2.2

2.3

2.4

2.1

ROA

6.1

6.0

6.5

7.1

6.2

ROE

8.0

8.8

9.3

9.3

8.4

DOE

2.4

2.6

2.9

3.0

2.9

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
ROA=Ordinary profit/Average total assets
ROE=Profit attributable to owners of parent/Average equity
DOE=Total dividend/Average net assets

Ordinary profit margin

Operating profit margin（¥ million）

Operating profit

Operating profit margin（％） （¥ million）

Ordinary profit

Ordinary profit margin

（％）

5,000

5.0

5,000

5.0

4,000

4.0

4,000

4.0

3,000

3.0

3,000

3.0

2,000

2.0

2,000

2.0

1,000

1.0

1,000

1.0

0.0

0

0
FY3/16

FY3/17

FY3/18

FY3/190.0
FY3/16

FY3/20FY3/17

ROA

FY3/18

FY3/19FY3/20FY3/19FY3/20

ROE

（％）

（％）

10.0

10.0

8.0

8.0

6.0

6.0

4.0

4.0

2.0

2.0
0.0

0.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/16

FY3/17

FY3/18

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

8

Consolidated Profitability/Efficiency Indicators(times)FY3/16

FY3/17

FY3/18

FY3/19FY3/20Total assets turnover

2.0

2.0

2.0

2.0

2.0

Equity turnover

3.9

4.1

4.1

3.9

4.0

Property, plant and equipment turnover

34.6

38.2

42.6

44.9

47.1

Interest coverage ratio

62.0

80.0

93.6

101.1

83.9

FY3/16

FY3/17

FY3/18

FY3/19FY3/20

Number of employees at end of period

470

499

523

544

585

Number of temporary employees at end of period

38

43

47

51

59

Net sales per employee (\ thousand)

183,585

187,740

196,928200,035

199,078

Ordinary profit per employee (\ thousand)

5,750

5,637

6,293

7,185

6,356

Net profit per employee (\ thousand)

3,766

4,055

4,456

4,716

4,217

Total assets turnover=Net sales/Average total assets
Equity turnover＝Net sales/Average equity
Property, plant and equipment turnover=Net sales/Average property, plant and equipment
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 attributalde to owners of parent/(No. of employees at end of period+No. of temp. employees at end of period)

Property, plant and equipment turnover

Equity turnover（times）（times）

6.0

50.0

5.0

40.0

4.0

30.0

3.0

20.0

2.0

10.0

1.0
0.0

0.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/16

Interest coverage ratio

FY3/17

FY3/18

FY3/19FY3/20Net sales/Ordinary profit per employee（times）（¥ thousand）

120.0

250,000

100.0
80.0

Net sales per employee (LHS)
Ordinary profit per employee (RHS)（¥ thousand）

10,000200,000

8,000

150,000

6,000

100,000

4,000

50,000

2,000

60.0
40.0
20.0

0

0.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/200FY3/16

FY3/17

FY3/18

FY3/19Copyright(c) HAGIWARA
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CO., LTD.
RightsReserved.
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FY3/209

Consolidated Efficiency/Stability Indicators(%)

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Equity ratio

49.8

49.0

50.1

49.7

48.4

Interest-bearing debt ratio

19.1

17.3

19.8

16.6

16.0

Acid-test ratio

152.1

153.8

158.0

167.0

153.0

Current ratio

208.9

207.7

215.4

230.0

229.3

Non-current ratio

19.3

17.9

16.7

16.4

16.1

Non-current assets to Non-current liability ratio

16.9

15.7

14.6

14.4

13.7

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)

Interest-bearing debt ratio

Equity ratio
（％）

（％）

80.0

25.0
20.0

60.0

15.0
40.0

10.0
20.0

5.0
0.0

0.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/16

FY3/20Current ratio

FY3/17

FY3/18

FY3/19FY3/20Non-current ratio

（％）

（％）

300.0

40.0

30.0
200.0

20.0
100.0

10.0

0.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/200.0
FY3/16

FY3/17

FY3/18

FY3/19Copyright(c) HAGIWARA
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CO., LTD.
RightsReserved.
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CO.,AllLTD.
All Rights
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FY3/2010

Stock Information
Per Share Indicators(\)

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Share price at end of period

1,947

2,158

3,225

3,080

2,197

Closing stock price range for the last 12 months

1,667-2,337

1,736-2,201

2,092-3,990

2,589-3,405

1,934-3,135

Earnings per share (EPS)

230.45269.12310.45319.72307.45Book-value per share (BPS)

2,928.30

3,160.68

3,393.75

3,557.48

3,737.88

Dividend per share (DPS)

70.00

80.00

95.00

105.00105.00FY3/16

FY3/17

FY3/18

FY3/19FY3/20

581

650

792

927

927

Other Indicators(\ million)

Total amount of dividends
Dividend payout ratio

(%)

30.4

29.7

30.6

32.8

34.2

Price earnings ratio (PER)(times)

8.45

8.02

10.39

9.63

7.15

Price book-value ratio (PBR)(times)

0.66

0.68

0.95

0.87

0.59

Term-average number of shares outstanding (thousand shares)

8,305

8,168

8,184

8,777

8,834

Number of shareholders

3,329

3,118

2,864

2,753

3,143

(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/EPSPBR=Share price at end of period/BPS

PER=Share price at end of period/EPS

Total amount of dividends/Dividend payout ratio

Dividend per share（¥）（¥ million）

120.001,000

100.0080.00

Total amount of dividends
Dividend payout ratio

（％）

50.0

800

40.0

600

30.0

400

20.0

200

10.0

60.00
40.00
20.00

0

0.00
FY3/16

FY3/17

FY3/18

FY3/190.0
FY3/16

FY3/20FY3/17PER

FY3/18

FY3/19FY3/20FY3/19FY3/20

PBR（times）（times）

12.00

1.20

10.00

1.00

8.00

0.80

6.00

0.60

4.00

0.40

2.00

0.20
0.00

0.00
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/16

FY3/17

FY3/18

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CO., LTD.
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11

Stock Information
Status of Major Shareholders
as of March 31, 2020

Top 10 Shareholders

Number of shares

Shareholding ratio (%)

Japan Trustee Services Bank, Ltd. (trust account)

809,000

9.16

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

567,700

6.42

STANY Co., Ltd.

495,250

5.60

BBH FOR FIDELITY PURITAN TR: FIDELITY SR INTRINSIC OPPORTUNITIES FUND

350,000

3.96

Tomoaki Hagiwara

336,400

3.81

Yoshiaki Hagiwara

248,175

2.81

Employees' Stockholding

236,474

2.68

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)

218,500

2.47

Note: Shareholding ratio is calculated excluding treasury shares (181,576 shares).

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

Foreign institutions and others
Financial institutions
Treasury shares

11.26%
FY3/2042.32%

12.21%

45.83%

2.01%

3,000

0.75%
31.03%

9.40%
FY3/184,000

31.29%

12.45%

42.74%

Number of shareholders

0.91%

10.96%
FY3/19(Persons)

2.07%

1,000

2.05%
12.79%

27.72%

2,000

2.21%
0

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

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
3/20163/20173/20183/2019Copyright(c) HAGIWARA
ELECTRIC
CO., LTD.
RightsReserved.
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3/202012

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.

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ELECTRIC
CO., LTD.
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ELECTRICHOLDINGS
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All Rights
Reserved.

13

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.

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14

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.

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15

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

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16

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
Takeshi Soejima, 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

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17

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/