English translation
Financial Statements Summary for the Year Ended March 31, 2021 [IFRS] (Consolidated)
May 6, 2021
Company name:

HIROSE ELECTRIC CO., LTD.

URL:

https://www.hirose.com/corporate/en/

Stock listing:Tokyo Stock Exchange – First Section

Code:

6806

Representative:

Kazunori Ishii, President and Representative Director

Information on contact:

Keiji Hara, General Manager of Accounting Department, Administration Group
Department Tel: +81-45-620-7410

Scheduled date of Regular General Meeting of Shareholders:June 25, 2021

Scheduled date of filing of Japanese annual securities report:

June 25, 2021

Scheduled date of dividend payable:

June 28, 2021

Supplemental materials:

Yes

Earnings presentation held:

Yes (For institutional investors and analysts)(Amount Unit: Yen in Millions)(Amounts are rounded to nearest million yen)

1. Consolidated Financial Results for the Year Ended March 31, 2021
(1) Consolidated Operating Results
Sales revenue(Percentage represents year-on-year changes)

Profit before
income taxes

Operating profit%%

Profit attributableto owners of theparent

Net income%%

Comprehensive
income for the year%%

FY2020133,538

9.7

27,88537.0

28,332

33.6

19,91630.1

19,91630.1

28,431

176.3

FY2019

121,765(2.3)

20,358(12.1)

21,205(14.0)

15,305(14.5)

15,305(14.5)

10,291(39.1)

Basic earnings
per share

Diluted earnings
per share

Profit ratio to equity
attributable to owners of
the parent

The ratio of profit
before tax to total
assetsOperating profit
ratio

Yen

Yen

%

%

%

FY2020549.10549.04

6.3

7.9

20.9

FY2019420.39420.37

5.0

6.2

16.7

(Reference) Share of profit (loss) of investments accounted for using the equity method:
Fiscal year ended March 31, 2021: ―Fiscal year ended March 31, 2020: ―1

(Yen in millions)(2) Consolidated financial position
Total assets

Total equity

Total equity attributableto owners of the parent

Ratio of total equity
attributable to owners of
the parent

Total equity attributableto owners of the parent
per share%Yen

FY2020370,504

326,092

326,092

88.0

8,987.05

FY2019342,644306,141

306,14189.3

8,436.41(Yen in millions)(3) Consolidated Cash FlowsNet cash provided byoperating activities

Net cash used in investing
activities

Net cash used in financing
activities

Cash and cash equivalents
at end of year

FY202035,818(20,702)(9,278)57,837FY201928,584(17,164)(12,205)

50,561

2. Dividends

Dividends forthe year (Total)

Dividend
payout ratio(consolidated)

Ratio of total
dividends to total
equityattributable toowners of theparent(consolidated)

Yen

Yen in millions%%

120.00240.00

8,728

57.1

2.8

―

120.00240.00

8,706

43.7

2.8

―

130.00260.00

Annual dividend per share (Yen)
1st quarterend

2nd quarterend

3rd quarter
end

Fiscal year
end

Yen

Yen

Yen

Yen

FY2019―120.00―

FY2020―120.00

FY2021(Forecast)―

130.00

Total

49.7

3. Forecast of Consolidated Business Performance for the Year ending March 31, 2022 (April 1, 2021 to March 31, 2022)(Yen in millions)(Percentage represents year-on-year changes)

Sales revenue

Operating profit%

Profit before income
taxes

Profit attributable toowners of the parent

Basic earnings per
share

%

%

Yen

%

2nd quarter end(cumulative total)

70,00014.7

13,5004.7

13,500

4.8

9,500

1.7

261.82

Fiscal year end

138,000

3.3

26,500(5.0)

26,500(6.5)

19,000(4.6)

523.642

*Notes(1) Changes in Significant Subsidiaries during This Period(changes in specified subsidiaries resulting in the change in scope of consolidation): None(2) Changes in Accounting Policies and Changes in Accounting Estimates:
1. Changes in accounting policies required by IFRS

: None2. Changes in accounting policies due to other reasons: None3. Changes in accounting estimates: None(3) Number of Shares Issued (Ordinary Shares)
1. Number of shares issued at the end of the period (including treasury stock)
As of March 31, 2021: 38,175,942

As of March 31, 2020: 38,381,820

2. Number of treasury stock at the end of the period:
As of March 31, 2021: 1,891,247

As of March 31, 2020: 2,114,675

3. Weighted-average number of shares outstanding during the period:
Year ended March 31, 2021: 36,269,861

Year ended March 31, 2020: 36,407,123*This consolidated report is not subject to audit by certified public accountants or audit firms.
*Explanation for appropriate use of forecast and other notes(Cautionary statements with respect to forward-looking statements)
Forward-looking statements, such as forecast of business performance, stated in this document are based on information
currently possessed by Hirose or certain assumption that Hirose has deemed as rational. We cannot make any assurances that thecontents mentioned in these forward-looking statements will ever materialize. Actual financial performance could be significantly
different from our expectations as a result of various factors. For the assumptions used and other notes, please refer to “1. Overview
of Operating Results and Financial Condition (4) Future Outlook” on page 6.
(Method of obtaining supplementary materials on the financial results)
We are planning to hold a financial results briefing for institutional investors and analysts on Friday, May 7, 2021. The
presentation materials distributed in this briefing will be published on our website soon after the briefing.
(English translation)
This is the statement translated into English from the Japanese original of "Consolidated Financial Results for the Year Ended
March 31, 2021." In the event of any discrepancy between this English translation and the Japanese original, the later shall prevail.

3

Table of Contents of Attachment
1. Overview of Operating Results and Financial Condition ····················································· 5(1) Overview of Operating Results ················································································ 5(2) Overview of Financial Condition ·············································································· 6(3) Overview of Cash Flows ······················································································· 6(4) Future Outlook·········································································· 6(5) Basic Profit Distribution Policy and Dividends for fiscal 2020 and fiscal 2021 ························ 7
2. Basic Approach to the Selection of Accounting Standards···················································· 7
3. Consolidated Financial Statements and Primary Notes ······················································· 8(1) Consolidated Statement of Financial Position ······························································· 8(2) Consolidated Statement of Profit or Loss and Comprehensive Income ································ 10(3) Consolidated Statement of Changes in Equity ····························································· 12(4) Consolidated Statement of Cash Flows ····································································· 13(5) Notes on Consolidated Financial Statements ······························································ 14(Segment information)········································································ 1441. Overview of Operating Results and Financial Condition(1) Overview of Operating Results for the year ended March, 2021
In the fiscal year ended March 31, 2021, the consumption spending has been sluggish and corporate profits deteriorated affectedby the impact of COVID-19 and Japanese economy has been in extremely difficult situation.
In overseas market, Europe and the United States have been affected by COVID-19. However, we can see some bright signs. For
example, in China, the production activity has been returning to normal level quickly and the activity level exceeds the level before
the spread of COVID-19.
Under this situation, Hirose group has been expanding global business mainly for smartphone market, automotive market andindustrial market, and promoting reinforcement of development, sales and production system for new products with highly added
value to respond advanced market needs quickly. Business for consumer electronics and general industrial has remained strong.
As a result, sales revenue in the fiscal year ended March 31, 2021 increased by 9.7% to JPY 133,538 million compared to theprevious fiscal year. Operating profit increased by 37.0% to JPY 27,885 million, income before tax increased by 33.6% to JPY
28,332 million and net income attributable to owners of the parent company increased by 30.1% to JPY 19,916 million as comparedwith the fiscal 2019.
The business results by segment are as stated below.
[Multi-pin connectors]
Our flagship multi-pin connectors include a variety of connector types such as circular connectors, rectangular connectors,
connectors for ribbon cables, connectors used for FPCs (flexible printed circuits boards) and nylon connectors. This kind ofconnectors are used widely, such as for smartphones, communication equipment, automotive electronics, measuring and control
equipment, FA equipment, and medical electronics equipment, as well as other industrial equipment. We expect that demands forthis connectors will grow associated with progress of advanced information and telecommunications network society, and energy
saving society considering environment in the future. Segment sales for the year ended March 31, 2021 increased by 10.9% to
JPY 119,752 million, operating profit increased by 35.5% to JPY 26,295 million compared with the fiscal year ended March 31,
2020.
[Coaxial connectors]
Coaxial connectors are a special type of high-performance connector used primarily for microwave and other high-frequency
signals. This is used mainly for antenna connection for Wi-Fi and Bluetooth communication in smartphones and PCs, GPS antennaconnection for automobiles and high frequency signal connection for wireless communication devices and electronic measuring
instruments. Optical fiber connectors and coaxial switches are also included in this segment. Segment sales for the year underreview decreased by 3.0% to JPY 9,492 million. Operating profit increased by 68.7% to JPY 1,412 million.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the fiscal year ended March 31, 2021
increased by 8.3% to JPY 4,294 million, operating profit increased by 54.5% to JPY 178 million.

5(2) Overview of Financial Condition for the Year ended March 31, 2021
Total assets increased by JPY 27,860 million to JPY 370,504 million compared to the consolidated fiscal year ended March
31, 2020 because cash and cash equivalents, and other financial assets increased. Because of the increase in trade payables, otherdebt and accrued tax payable, total liabilities increased by JPY 7,909 million to JPY 44,412 million. Total equity increased by
19,951 million to JPY 326,092 million, because retained earnings and exchange differences on translation of foreign operations
increased. As a result, ratio of equity attributable to owners of the parent company to total assets decreased by 1.3% to 88.0%
compared to the fiscal year ended March 31, 2020.
(3) Overview of Cash Flows
Cash and cash equivalents at the fiscal year under review increased by JPY 7,276 million to JPY 57,837 million compared to
the fiscal year ended March 31, 2020.
a. Cash flows from operating activities
Net cash provided by operating activities for fiscal 2020 increased by JPY 35,818 million. (In the fiscal 2019, it increased by
JPY 28,584 million) This increase was mainly due to a rise in capital by appropriating income before tax, JPY 28,332 million, anddepreciation and amortization, JPY 16,769 million. On the other hand, there were decrease in capital because the amount of tradeand other receivables increased by JPY 4,983 million, and the payment of corporate income tax, JPY 4,427 million was incurred.
b. Cash flows from investing activities
Net cash used in investing activities for fiscal 2020 decreased by JPY 20,702 million. (In the fiscal 2019, it decreased by JPY
17,164 million.)

This is mainly due to decrease in capital by payments for purchase of tangible fixed assets, JPY 13,895 million.

c. Cash flows from financing activities
Net cash used in financing activities for fiscal 2020 decreased by 9,278 million. (In the fiscal 2019, it decreased by JPY
12,205 million.)

This is because of decrease in capital by the dividend payment, JPY 8,704 million.

(4) Future Outlook
Regarding the outlook for the year ending March 31, 2022, it is expected that Japanese economy will be unclear because
covid-19 has still have an impact on Japanese economic activities.
Although some region in overseas have started vaccination drives, the impact of covid-19 is still significant. As well as there arevarious geopolitical risks including the US-China trade friction. The overseas situation is expected to be unpredictable.
Under this circumstances, it is expected to have an impact to electronics industry which we belong. However, the demand forelectronic components in automotive and general industrial market has been still strong. We do not include the expected damages
to global economic activities, our production activities, raw material procurement and supply chain by further expansion of
COVID-19.
Based on the premise mentioned above, our forecast for the consolidated financial results in the fiscal 2021 is that sales revenue:
JPY 138 billion (increased by 3.3% over the fiscal 2020), operating profit: JPY 26.5 billion (decreased by 5.0%), income before
tax: JPY 26.5 billion (decreased by 6.5%), profit attributable to owners of the parent company: JPY 19 billion (decreased by 4.6%)
as of March 31, 2021.
Assumed exchange rates for fiscal 2021 are JPY 104 to the U.S. dollar, JPY 129 to the Euro, and JPY 0.097 to the Korean won.

6

(5) Basic Profit Distribution Policy and Dividends for fiscal 2020 and for fiscal 2021
Regarding profit distribution, we believe that profit distribution should be carried out by comprehensively taking business results
and business environment into consideration. To realize this, we reinforce our management base, establish the route to growth andenhance our financial structure further based on basic management policy. We also keep the stable dividend to be a company which
can gives a sense of securities and expectations.
Based on this policy, new return policies were resolved at the board of directors held on May 6, 2021.
1.

From April, 2016, our basic target of dividend payout ratio had been 40%. From FY2021, we decided that our new target of
dividend payout ratio will be 50% in the next 4 years.

2.

To improve shareholder return and capital efficiency, we consider stock price level and keep purchasing treasury shares. From
FY2021 to FY2024, we will carry out share buyback up to a total maximum of JPY 40 billion.

The dividends per share for the fiscal 2020 comprises year-ended dividend of ¥120 per share and annual dividend of ¥240. Basedon above policies, our dividend forecast for the year ending March 31, 2022 is expected to be an interim and annual dividend of¥130 per share, and as a result, annual dividends will be ¥260 per share.
Regarding the details of share buyback in the Fiscal 2021, we will inform you as soon as it is decided.
We are planning to prepare retained earnings for our new shareholder return policy, research and development investment for the
future technological innovation, capital investment associated with globalization and M&A to deal with changes in businessenvironment from the medium and long term perspective.
2. Basic approach to the selection of accounting standards
Since the first quarter of the fiscal year ended March 31, 2019, Hirose group has adopted the International Financial ReportingStandards (“IFRS”) to improve international comparability of financial information in capital market and to promote global
management by unifying the financial standards inside our group.

73. Consolidated Financial Statements and Primary Notes(1) Consolidated Statement of Financial Position(Yen in millions)

As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and cash equivalents

50,561

57,837

Trade and other receivables

30,44436,620Inventories

14,512

16,915

Other financial assets

120,541

131,274

Other current assets

4,614

5,401

Total current assets

220,672

248,047

Tangible fixed assets

61,541

61,182Right of use assets

4,478

4,357

Intangible assets

2,519

3,295

Other financial assets

50,141

48,918Deferred tax assets

2,272

2,515

Retirement benefit assets

563

1,780

Other non-current assets

458

410

Total non-current assets

121,972

122,457

342,644

370,504

Non-current assets

Total assets

8

(Yen in millions)

As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Trade and other payables

16,747

19,511

Lease liabilities

728

821

Other financial liabilities

25

102

Accrued tax payables

2,964

6,532

Other current liabilities

4,377

5,046

Total current liabilities

24,84132,012

3,764

3,581

-

134

230

320

Deferred tax liabilities

6,573

7,616

Other non-current liabilities

1,095

749

Total non-current liabilities

11,662

12,40036,50344,412

Common stock

9,404

9,404

Common surplus

11,293

11,230Retained earnings

308,343

317,265

Treasury stocks(24,456)(21,874)

1,557

10,067306,141

326,092

Total equity

306,141

326,092

Total liabilities and equity

342,644

370,504

Non-current liabilities
Lease liabilities
Other financial liabilities
Retirement benefit liabilities

Total liabilities
EquityOther components of equity
Total equity attributable to owners to the parent

9(2) Consolidated Statement of Profit or Loss and Comprehensive Income(Consolidated Statement of Profit or Loss)(Yen in millions)

For the year ended March 31, 2020

For the year ended March 31, 2021

Sales revenue

121,765

133,538

Cost of sales

70,38376,869Gross profit

51,382

56,669Selling, general and administrative expenses

30,46830,190

Other income

1,305

1,935

Other expenses

1,861

529

Operating profit

20,35827,885

Financial income

1,192

1,051

Financial expenses

345

604

Profit before income taxes

21,20528,332

Corporate income tax expenses

5,900

8,416

Profit for the year

15,305

19,91615,305

19,916

Basic (yen)420.39549.10

Diluted (yen)420.37549.04

Profit attributable to:
Owners of the parent
Earnings per share:10

(Consolidated Statement of Comprehensive Income)(Yen in millions)

Profit for the year

For the year ended

For the year ended

March 31, 2020

March 31, 2021
15,305

19,916

Re-measurement of defined benefit plans

(96)

10

Financial assets measured at fair value
through other comprehensive income

1,198

969

1,102

979

(6,057)

7,502

(59)

34

Total items that may be reclassified to profit or loss

(6,116)

7,536

Total other comprehensive income after tax(5,014)

8,515

10,291

28,431

10,291

28,431Other comprehensive income
Items that will not be reclassified to profit or loss

Total items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
Debt instruments measured at fair value
through other comprehensive income

Total comprehensive income for the year
Total amount of comprehensive income attributable to:
Owners of the parent

11

(3) Consolidated Statement of Changes in Equity(Yen in millions)

CommonStock
Balance as of April 1,
2019

9,404

Capitalsurplus11,314

Profit for the year

Retainedearnings

Treasury
stock

Other
componentsof equity

Total equity
attributable toowners of theparentTotal equity

303,349(23,213)6,476

307,330

307,330

15,30515,305(5,014)(5,014)(5,014)(5,014)

10,291

10,291(8,751)(8,751)

15,305

Other comprehensive
incomeTotal comprehensive
income for the year――

Dividend of surplus

15,305―(8,751)

Purchase of treasury stock(0)(2,758)(2,758)(2,758)

Disposition of treasury
stock

2

28

30

30

Cancellation of treasury
stock(1,487)

1,487

―

―

Transfer to retained
earnings

1,464(1,560)96――

Total transaction withowners―(21)(10,311)(1,244)96(11,479)(11,479)

Balance as of March 31,
2020

9,404

11,293308,343(24,456)

1,557

306,141

306,141

Retainedearnings

Treasury
stock

Other
componentsof equity

Total equity
attributable toowners of theparentTotal equity

308,343(24,456)

1,557

306,141

306,141

19,916

19,916

8,515

8,515

8,515

8,515

28,431

28,431(8,704)(8,704)

CommonStock
Balance as of April 1,
2020

9,404

Capitalsurplus11,293

Profit for the year

19,916

Other comprehensive
incomeTotal comprehensive
income for the year――

Dividend of surplus

19,916―(8,704)Purchase of treasury stock

(0)

(8)

(8)

(8)

Disposition of treasury
stock

23

209

232

232

Cancellation of treasurystock(2,381)

2,381

―

―

Transfer to retained
earnings

2,295(2,290)(5)――

Total transaction withowners―(63)(10,994)

2,582

(5)

(8,480)(8,480)

Balance as of March 31,
2021

9,404

11,230317,265(21,874)

10,067

326,092

326,09212

(4) Consolidated Statement of Cash Flows(Yen in millions)

For the year ended

For the year ended

March 31, 2020

March 31, 2021

Cash flows from operating activities:
Income before tax

21,20528,332

Depreciation and amortization

15,81916,769Financial income(1,192)(1,051)

Financial expenses

345

604

(Increase) decrease in trade and other receivables(1,535)(4,983)(Increase) decrease in inventories(1,069)(1,717)

Increase (decrease) in trade and other payables

(774)

3,059

Others654(3,185)

Subtotal

33,45337,828Insurance received

―

1,496

Interests received

833

560

Dividends received

333

361

Income taxes paid

(6,035)(4,427)

Net cash provided by operating activities

28,58435,818(Increase) decrease in term deposit

2,477(1,622)

Proceeds from sales and redemption of investment

13,332

9,516

Payments for purchase of investment(14,056)(13,309)

Payments for purchase of tangible fixed assets(18,689)(13,895)(228)(1,392)(17,164)(20,702)

Purchase of treasury stock(2,758)(8)

Dividends paid

(8,751)(8,704)

(725)

(798)

29

232

(12,205)(9,278)

(976)

1,438

Increase (decrease) in cash and cash equivalents(1,761)

7,276

Cash and cash equivalents at the beginning of the year

52,32250,561

Cash and cash equivalents at the end of the year

50,561

57,837

Cash flows from investing activities

OthersNet cash used in investing activities
Cash flows from financing activities

Payment of lease liabilities
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents13(5) Notes on Consolidated Financial Statements(Segment information)
1. Business segment(1) Overview of reporting segment
In the reporting segment of Hirose group, it is possible to acquire isolated financial information among constituent unit of ourgroup. It is also an object being examined on a regular basis to evaluate our decision of resource allocation and business results by
the board of directors.
Our business is manufacturing and selling mainly connectors and other products, and we formulate a domestic and global
comprehensive strategy for our products and service.
Therefore, Hirose group consists of segments by products based on the shape of connectors. Our reporting segment is “Multi-pin
connectors” and “Coaxial connectors”.
“Multi-pin connectors” include circular and rectangular connectors implemented to the outside of devices. They also include
connectors implemented internal of the devices, such as connectors for ribbon cables, connectors used for FPCs (flexible printed
circuit boards) and nylon connectors.
“Coaxial connectors” are a special type of high-performance connectors connecting high-frequency signals such as microwave,
and this segment includes optical fiber connectors.
(2) Information of reporting segment
For the year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Yen in millions)

Reporting segments
Multi-pin
connectors

Coaxialconnectors

Amount of consolidated
financial statement

Others*

Total

Sales revenue
Sales revenue from externalcustomers

108,014

9,784

117,798

3,967

121,765

Total revenue

108,014

9,784

117,798

3,967

121,765

Operating profit

19,406837

20,243

115

20,358Financial income

―

―

―

―

1,192

Financial expenses

―

―

―

―

345

Income before tax

―

―

―

―

21,205

13,9991,440

15,439380

15,819Other items
Depreciation and amortization*”Others” category is not included into reporting segment. “Others” includes micro switches and instruments for connectors.

14

2. Geographic information
Japan
Sales revenue

China

Korea

OthersTotal

31,68942,335

18,38529,356

121,765

26.0

34.8

15.1

24.1

100.0

Percentage of consolidated sales revenue(%)

For the year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Yen in millions)
Reporting segments
Multi-pin
connectors

Coaxialconnectors

Amount of consolidated
financial statement

Others *Total

Sales revenue
Sales revenue from externalcustomers

119,752

9,492

129,244

4,294

133,538

Total revenue

119,752

9,492

129,244

4,294

133,538

Operating profit

26,295

1,412

27,707178

27,885

Financial income

―

―

―

―

1,051

Financial expenses

―

―

―

―

604

Income before tax

―

―

―

―

28,332

15,228

1,166

16,394375

16,769Other items
Depreciation and amortization*”Others” category is not included into reporting segment. “Others” includes micro switches and instruments for connectors.
2. Geographic information
Japan
Sales revenue
Percentage of consolidated sales revenue
(%)

China

Korea

OthersTotal

31,93349,76019,11032,735133,538

23.9

37.3

14.3

24.5

100.0

15