Quarterly Financial Report
Second Quarter of 74th Fiscal Term
From July 1, 2020 to September 30, 2020

Table of Contents of Attachment
Company Information
1. Overview of the Company .............................................................................................................................. 3
1. Changes in major management indicators ...................................................................................................... 3
2. Description of Business .................................................................................................................................. 4
2. Business Overview ......................................................................................................................................... 4
1. Risk Factors .................................................................................................................................................. 4
2. Management Analysis of Financial Position, Operating Results and Cash Flows.......................................... 4
3. Material Agreements, etc .............................................................................................................................. 5
3. Information on the Company ........................................................................................................................... 6
1. Information on the Company’s Shares .......................................................................................................... 6(1) Total number of shares, etc. ...................................................................................................................... 6(2) Information on the share acquisition rights, etc. ......................................................................................... 6(3) Information on Moving Strike Convertible Bonds ..................................................................................... 6(4) Changes in the total number of shares issued, common stocks, etc. ........................................................... 6(5) Information on voting rights ...................................................................................................................... 7
2. Information of the board members ................................................................................................................ 7
4. Financial Information ...................................................................................................................................... 8
1. Condensed Quarterly Consolidated Financial Statements .............................................................................. 8(1) Condensed Quarterly Consolidated Statements of Financial Position ........................................................ 8(2) Condensed Quarterly Consolidated Statement of Profit or Loss................................................................. 10(3) Condensed Quarterly Consolidated Statement of Comprehensive Income................................................. 12(4) Condensed Quarterly Consolidated Statement of Changes in Equity ......................................................... 14(5) Condensed Quarterly Consolidated Statement of Cash Flows .................................................................... 15
2. Others ................................................ .......................................................................................................... 251

【Document to be filed】Quarterly Financial Report【Provisions to base upon】Article 24-4-7, paragraph 1 of the Financial Instruments and Exchange Act【Filing to】Director-General of the Kanto Local Finance Bureau【Date of filing】November 11, 2020
【Fiscal Period】2nd quarter of 74th term (from July 1, 2020 to September 30, 2020)【Company name】HIROSE ELECTRIC CO., LTD.
【Title and name of representative】Kazunori Ishii, President and Representative Director【Location of head office】2-6-3 Nakagawa Chuoh, Tsuzuki-Ku, Yokohama, Kanagawa, Japan【Telephone number】+81-45-620-7410【Contact person】Keiji Hara, General Manager of Accounting Department【Place of contact】2-6-3 Nakagawa Chuoh, Tsuzuki-Ku, Yokohama, Kanagawa, Japan【Telephone number】+81-45-620-7410【Contact person】Keiji Hara, General Manager of Accounting Department【Place where the document to be filed is available for public inspection】Tokyo Stock Exchange, Inc.
(2-1, Nihonbashi-kabutocho, Chuo-ku, Tokyo, Japan)

2【Company Information】
1. Overview of the Company
1. Changes in major management indicators(Yen in millions)

73rd Fiscal Term
Consolidated First Half

74th Fiscal Term
Consolidated First Half

73rd Fiscal Term

From April 1, 2019
to September 30, 2019

From April 1, 2020
to September 30, 2020

From April 1, 2019
to March 31, 2020

60,265(32,031)61,036(33,636)

121,765(second quarter from Jul 1 to Sep 30)

Income before income taxes

12,087

12,887

21,205

8,573(4,506)

9,338(4,921)

15,305

Quarterly comprehensive income
attributable to owners of theparent

3,379

9,918

10,291Equity attributable to owners of
the parent

306,332

311,706

306,141

Total Assets

343,447

348,072

342,644235.12(123.57)

257.48(135.70)420.39235.12257.48420.37

Ratio of total equity attributable toowners of the parent (%)

89.2

89.6

89.3

Net cash provided by operating
activities

14,721

15,30028,584

Net cash used in investing
activities(5,979)(8,472)(17,164)

Net cash used in financing
activities(4,708)(4,754)(12,205)

Balance of cash and cash
equivalents at end of the period

55,09552,89250,561

Fiscal period
Sales

Quarterly profit attributable toowners of the parent(second quarter from Jul 1 to Sep 30)

Quarterly earnings per share-basic (Yen)(second quarter from Jul 1 to Sep 30)

Quarterly earnings per share-diluted (Yen)(Notes) 1. We prepare the condensed quarterly consolidated financial statements, and the transition of the major management indicators
are not included.
2. “Sales” do not include consumption taxes.
3. The financial data above are based on the condensed quarterly consolidated financial statements and consolidated financial statements
prepared in accordance with International Financial Reporting Standards (IFRS).
4. “Diluted quarterly earnings per share” is listed at the same price as “Basic quarterly earnings per share”, because there were no potential
shares with dilutive effect in the first half of the 73rd fiscal term and 74th fiscal term..

3

2. Description of Business
There were no significant changes in our business during the first half of the fiscal year ending March 31, 2021.
There were also no changes in major subsidiaries.
2. Business Overview
1. Risk Factors
Regarding the business and financial situation stated in this report, there were no matters that may have significant impact
on the investment decision and no significant changes in the risk factors stated in the annual securities report for the previous
fiscal year during the six months ended September 30, 2020.
There were no material events.
2. Management Analysis of Financial Position, Operating Results and Cash Flows
Forward-looking statements below were determined as of September 30, 2020.
(1) Overview of Operating Results
In the first half of the fiscal year ending March 31, 2021, the consumption spending has been sluggish and corporate profits
deteriorated affected by the impact of COVID-19 and Japanese economy has been in extremely difficult situation.
In overseas market, economic activity has been restarted after lockdown for COVID-19. However, the number of infected
person are growing again and the future outlook has been still unclear.
Under this situation, Hirose group has been expanding global business mainly for smartphone market, automotive market
and industrial market, and promoting reinforcement of development, sales and production system for new products withhighly added value to respond advanced market needs quickly. Business for smartphone and consumer market has remained
strong, and it made up for sluggish sales of business for automotive. As a result, sales revenue in the first half increased by
1.3% to JPY 61,036 million compared to the same period of the previous fiscal year. Operating profit increased by 11.8% to
JPY 12,893 million, and quarterly income attributable to owners of the parent company increased by 8.9% to JPY 9,338
million as compared with the first half of the fiscal 2019.
The business results by segments 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 for printed circuit boards, connectors used for FPCs (flexible printed circuits
boards) and nylon connectors. This kind of connectors are used widely, such as for smartphones, tablet PC, communicationequipment, automotive electronics, measuring and control equipment, FA equipment, and medical electronics equipment,
as well as other industrial equipment. We expect that demands for this connectors will grow associated with progress ofadvanced information and telecommunications network society, and energy saving society considering environment in the
future. Segment sales for the first half of the fiscal year ending March 31, 2021 increased by 2.2% to JPY 54,475 million,
operating profit increased by 11.9% to JPY 12,161 million compared with the first half of the fiscal 2019.
[Coaxial connectors]
Coaxial connectors are a special type of high-performance connector used primarily for microwave and other highfrequency signals. This is used mainly for microwave communications devices, satellite communications equipment,
electronic measuring instruments, smartphones, 4K and 8K broadcasting equipment, and other electronic equipment. Opticalfiber connectors and coaxial switches are also included in this segment. Segment sales for the first half of the fiscal 2020
decreased by 7.6% to JPY 4,601 million. Operating profit increased by 32.3% to JPY 703 million.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the first half of the fiscal 2020
decreased by 0.5% to JPY 1,960 million, operating profit decreased by 77.3% to JPY 29 million compared with the previous
first half.
4(2) Overview of Cash Flows
Cash and cash equivalents at the first half of the fiscal year ending March 31, 2021 increased by JPY 2,331 million to JPY
52,892 million compared to the end of the fiscal year ended March 31, 2020.
a. Cash flows from operating activities
Net cash provided by operating activities increased by JPY 15,300 million (In the first half of the fiscal 2019, it increasedby JPY 14,721 million.) This increase was mainly due to a rise in capital by appropriating quarterly income before tax, JPY
12,887 million, and depreciation and amortization, JPY 8,236 million.
b. Cash flows from investing activities
Net cash used in investing activities decreased by JPY 8,472 million (In the first half of the fiscal 2019, it decreased by JPY
5,979 million.) This is mainly due to proceeds from sale and redemption of investment, JPY 4,679 million, payments forpurchase of investment, JPY 5,188 million, and payments for purchase of tangible fixed assets, JPY 7,141 million.
c. Cash flows from financing activities
Net cash used in financing activities decreased by JPY 4,754 million (In the first half of the fiscal 2019, it decreased by JPY
4,708 million.) This is because of decrease in capital by the dividend payment, JPY 4,352 million.
(3) Analysis of financial condition
Total assets of FY2020.2Q increased by JPY 5,428 million to JPY 348,072 million compared to the end of the previous
consolidated fiscal year because cash and cash equivalents, trade receivables and other receivables increased. Total liabilities
decreased by JPY 137 million to JPY 36,366 million due to the decrease in lease liabilities. Additionally, retained earnings
increased and other components of equity grew by exchange differences on transition of foreign operation, and total equity
increased by JPY 5,565 million to JPY 311,706 million. As a result, total equity attributable to owners of the parent increased
by 0.3% to 89.6% compared to the end of the previous fiscal year.
(4) Assumptions used for accounting estimates
There are no significant changes in the accounting estimated from “Management Analysis of Financial Position, Operating
Results and Cash Flows” stated in the annual securities report of FY 2019 and assumptions used for the estimates.
(5) Research and development
Our research and development expenses for the six months ended September 30, 2020 were JPY 3,563 million. As theachievement of research and development activities, fixed assets including tools appropriated to JPY 1,229 million. Whenthese amount are added up, the total of R&D investment amount was JPY 4,792 million. There were no significant changes
in research and development activities for the period.
3. Material Agreements, etc
There were no decision or conclusion of significant business agreement during the three months ended September 30, 2020.

5

3. Information on the Company
1. Information on the Company’s Shares(1) Total number of shares, etc.
①Total Number of Shares
Class

Total number of shares authorized to be issued (Shares)

Ordinary share

80,000,000

Total

80,000,000②Issued Shares
Number of shares issued as ofthe end of the second quarter(Shares)(September 30, 2020)

Number of shares issued
as of the filing date
(Shares)(November 11, 2020)

Stock exchange on which theCompany is listed or authorized
financial instruments firms
association where the Company
is registered

Description

Ordinary
share

38,175,942

38,175,942

Tokyo Stock Exchange, Inc.
(the first section)

The number of shares
per unit of shares is
100 shares

Total

38,175,942

38,175,942

−

−

Class

(Note) The number of shares issued as of the filing date do not include the share issued by share acquisition rights from
November 1, 2020 to the filing date of this report.
(2) Information on the share acquisition rights, etc.
① Details of share option plans
Not applicable.
② Other information about share acquisition rights
Not applicable.
(3) Information on Moving Strike Convertible Bonds
Not applicable.
(4) Changes in the total number of shares issued, common stock, etc.
Date

From July 1,2020
to September 30,
2020

Change in the
total number ofissued shares

Balance of thetotal number ofissued shares(Thousand Shares)(Thousand Shares)−

38,175

Change incommon stock

Balance ofcommon stock

Change incapital reserve

Balance ofcapital reserve(Yen in millions)(Yen in millions)(Yen in millions)(Yen in millions)

−

6

9,404

−

12,007

(5) Information on voting rights① Issued shares(As of September 30, 2020)

Classification

Number of shares (Shares)

Number of voting rights

Description

Shares without voting rights

-

-

-

Shares with restricted voting
rights (treasury stock, etc)

-

-

-

Shares with restricted voting
rights (others)

-

-

-

Shares with full voting rights(treasury stock, etc.)(treasury stock)
Ordinary share

Shares with full voting rights(others)

Ordinary share 36,189,600

Shares less than one unit

Ordinary shareStandard stocks which there- is no restriction on contentsof the right of the stock

1,908,900

361,896

Same as above

77,442-Same as above

Number of issued shares

38,175,942--

Total number of voting
rights-361,896-(Notes) 1. The ordinary shares in “Shares less than one unit” includes 59 shares registered in the name of Japan Securities
Depository Center.
2. The ordinary shares in “Shares less than one unit” includes 82 treasury shares held by HIROSE group.
② Treasury Stock and Others(As of September 30, 2020)
Number of shares
held under own
name(Shares)Number of shares
held under thename of others(Shares)

Total number ofshares held
(Shares)

Ownership
percentage to thetotal number ofissued shares (%)

Name of shareholder

Address(Treasury shares)
HIROSE ELECTRIC

2-6-3 Nakagawa
Chuoh, Tsuzuki-Ku,
Yokohama, Kanagawa

1,908,900-

1,908,900

5.00

Total

-

1,908,900-

1,908,900

5.00

2. Information of the board members
Not applicable.

74. Financial Information
1. Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statements of Financial Position(Yen in millions)

Note

As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and cash equivalents

10

50,561

52,892

Trade and other receivables

10

30,44433,547

14,512

15,774

120,541

122,956

Other current assets

4,614

3,241

Total current assets

220,672

228,410

Tangible fixed assets

61,54160,743Right of use assets

4,478

4,235

Intangible assets

2,519

2,630

50,141

48,580

2,272

2,494

Retirement benefit assets

563

541

Other non-current assets

458

439

Total non-current assets

121,972

119,662

342,644

348,072

Inventories
Other financial assets

10

Non-current assets

Other financial assets

10

Deferred tax assets

Total assets

8

(Yen in millions)

Note

As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Trade and other payables

10

16,747

16,680

728

729

25

−

Accrued tax payables

2,964

3,233

Other current liabilities

4,377

4,416

Total current liabilities

24,841

25,058

3,764

3,527

－

73

230

235

Deferred tax liabilities

6,573

6,721

Other non-current liabilities

1,095

752

Total non-current liabilities

11,662

11,30836,50336,366

Common stock

9,404

9,404

Common surplus

11,293

11,285Retained earnings

308,343

310,957(24,456)(22,077)

1,557

2,137

306,141

311,706

Total equity

306,141

311,706

Total liabilities and equity

342,644

348,072

Lease liabilities
Other financial liabilities

10

Non-current liabilities
Lease liabilities
Other financial liabilities

10

Retirement benefit liabilities

Total liabilities
EquityTreasury stocks

6

Other components of equity
Total equity attributable to owners of the parent

9(2) Condensed Quarterly Consolidated Statement of Profit or Loss
(For the six months ended September 30, 2019 and 2020)(Yen in millions)

For the first half of the year
ended March 31, 2020

For the first half of the year
ending March 31, 2021

(From April 1, 2019 to September 30, 2019)(From April 1, 2020 to September 30, 2020)

60,26561,036

Cost of sales

34,41135,172Gross profit

25,85425,864

Selling, general and administrative
expenses

15,072

14,499Other income

1,030

1,732

Other expenses

278

204

Operating profit

11,534

12,893Financial income

623

518

Financial expenses

70

524

Quarterly income before tax

12,087

12,887

Corporate income tax expenses

3,514

3,549

Quarterly income

8,573

9,338

8,573

9,338

Note

Sales revenue

8

Quarterly income attributable to:
Owners of the parent
Quarterly Earnings per share:
Basic (yen)9235.12257.48

Diluted (yen)9235.12257.4810

(For the three months ended September 30, 2019 and 2020)(Yen in millions)Note

For the second quarter of the year
ended March 31, 2020

For the second quarter of the year
ending March 31, 2021

(From July 1, 2019 to September 30, 2019)(From July 1, 2020 to September 30, 2020)

Sales revenue

32,031

33,636

Cost of sales

18,17819,272Gross profit

13,85314,364

Selling, general and administrative
expenses

7,522

7,372

Other income

83

142

Other expenses

218

137

Operating profit

6,196

6,997

Financial income

224

182

Financial expenses

6384

Quarterly income before tax

6,414

6,795

Corporate income tax expenses

1,908

1,874

Quarterly income

4,506

4,921

4,506

4,921

Quarterly income attributable to:
Owners of the parent
Quarterly Earnings per share:
Basic (yen)9123.57135.70

Diluted (yen)9123.57135.7011

(3) Condensed Quarterly Consolidated Statement of Comprehensive Income(For the six months ended September 30, 2019 and 2020)(Yen in millions)

Note

Quarterly income

For the first half of theyear ended March 31,
2020

For the first half of theyear ending March 31,
2021(From April 1, 2019 to
September 30, 2019)(From April 1, 2020 to
September 30, 2020)

8,573

9.338

715

(298)

715

(298)

(5,929)

854

20

24

Total items that may be reclassified to profit or loss

(5,909)878

Total other comprehensive income after tax(5,194)

580

3,379

9,918

3,379

9,918

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
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 quarterly comprehensive income
Total amount of quarterly comprehensive income attributable to:
Owners of the parent

12

(For the three months ended September 30, 2019 and 2020)(Yen in millions)

Note

Quarterly income

For the second quarterof the year ended
March 31, 2020

For the second quarterof the year ending
March 31, 2021

(From July 1, 2019 to
September 30, 2019)(From July 1, 2020 to
September 30, 2020)

4,506

4,921

386

(777)

386

(777)

(2,259)

300

7

12

Total items that may be reclassified to profit or loss

(2,252)

312

Total other comprehensive income after tax(1,866)

(465)

2,640

4,456

2,640

4,456

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
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 quarterly comprehensive income
Total amount of quarterly comprehensive income attributable to:
Owners of the parent

13

(4) Condensed Quarterly Consolidated Statement of Changes in Equity
Note
Balance as of April 1,
2019（Yen in millions）

CommonStockCapitalsurplusRetainedearnings

Treasury
stock

Other
componentsof equity

Total equity
attributable toowners of theparent9,404

11,314

303,349(23,213)6,476

307,330

307,330

8,573

8,573

(5,194)(5,194)(5,194)(5,194)

3,379

3,379

(4,376)(4,376)

(1)

(1)

―

―

―

―

―

―

8,573

Quarterly income
Other comprehensive
incomeTotal of quarterlycomprehensive income
Dividend of surplus

―

―

7

8,573

―

(4,376)

Purchase of treasury
stock

(0)

(1)

Disposition of treasury
stock
Cancellation oftreasury stock6(1,487)

Transfer to retained
earnings

6

1,481(1,481)

1,487

Total
equityTotal transaction withowners―(6)(5,857)

1,486―(4,377)(4,377)

Balance as of
September 30, 2019

9,404

11,308306,066(21,727)

1,281

306,332

306,332

CommonStockCapitalsurplusRetainedearnings

Treasury
stock

Other
componentsof equity

Total equity
attributable toowners of theparent9,404

11,293308,343(24,456)

1,557

306,141

306,141

9,338

9,338

580

580

580

580

9,918

9,918

(4,352)(4,352)

Note
Balance as of April 1,
2020

9,338

Quarterly income
Other comprehensive
incomeTotal of quarterlycomprehensive income
Dividend of surplus

―

―

7

9,338

―

(4,352)Total
equityPurchase of treasury
stock

(0)

(3)

(3)

(3)

Disposition of treasury
stock

0

1

1

1

2,381

―

―

―

―

Cancellation oftreasury stock

6(2,381)

Transfer to retained
earnings

6

2,373(2,373)

Total transaction withowners―(8)(6,724)2,379―(4,354)(4,354)

Balance as of
September 30, 2020

9,404

11,285

310,957(22,077)

2,137

311,706

311,706

14

(5) Condensed Quarterly Consolidated Statement of Cash Flows(Yen in millions)Note

For the first half of the FY2019

For the first half of the FY2020(From April 1, 2019 to(From April 1, 2020 to

September 30, 2019)

September 30, 2020)

Cash flows from operating activities:
Quarterly income before tax

12,087

12,887

Depreciation and amortization

7,623

8,236

Financial income

(623)

(518)

Financial expenses

70

524

(2,027)(2,960)(Increase) decrease in inventories(333)(1,188)

Increase (decrease) in trade and other payables

(998)

466

Others

1,254(1,294)

17,053

16,153

Insurance income

−

1,496

Interests received

362

296

Dividends received

166

183

Income taxes paid

(2,859)(2,828)Net cash provided by operating activities

14,721

15,300(Increase) decrease in term deposit

4,150

(354)

Proceeds from sales and redemption of investment

9,189

4,679

Payments for purchase of investment(8,904)(5,188)

Payments for purchase of tangible fixed assets(10,536)(7,141)

122

(468)

(5,979)(8,472)(1)(3)(4,376)(4,352)

(332)

(400)

−

1

(4,708)(4,754)(1,261)

257

Increase (decrease) in cash and cash equivalents

2,773

2,331

Cash and cash equivalents at the beginning of the year

52,32250,561

Cash and cash equivalents at the end of the period

55,09552,892(Increase) decrease in trade and other receivables

Subtotal

Cash flows from investing activities

OthersNet cash used in investing activities
Cash flows from financing activities
Purchase of treasury stock
Dividends paid
Payment of lease liabilities
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents

15

【Notes to Condensed Quarterly Consolidated Financial Statements】
1. Reporting Entity
HIROSE ELECTORIC is a corporation located in Japan. Our subsidiaries and we manufacture and sell mainly multi-pin
connectors, coaxial connectors and other electronic components.
2. The Basis for preparation of the statements(1) Compliance with IFRS
Our condensed quarterly consolidated financial statements are prepared in accordance with IAS 34 “Interim Financial
Reporting” pursuant to the provision of Article 93 of the Regulations for Quarterly Consolidated Financial Statements, as thecompany meets the criteria of a “Designated IFRS Specified Company” defined in Article 1-2 of the Regulations.
The condensed quarterly consolidated financial statements do not include all the information that must be disclosed in theannual consolidated financial statements, and therefore should be used in conjunction with the consolidated financial
statements for the year ended March 31, 2020.
Condensed quarterly consolidated financial statements of the company were authorized by our president and representative
director, Kazunori Ishii, on November 2, 2020.
(2) Basis of measurement
The condensed quarterly consolidated financial statements have been prepared based on acquisition cost, except for financial
instruments measured at fair value, and liabilities and assets for retirement benefits.
(3) Functional currency and presentation currency
The condensed quarterly consolidated financial statements of the company are presented in Japanese yen, which is thefunctional currency of us, and the amounts are described in unites of JPY 1 million. The amounts are also rounded to thenearest million yen.
3. Significant Accounting Policies
Significant accounting policies applied in the condensed quarterly consolidated financial statements is the same as thepolicies applied in the consolidated financial statements for the year ended March 31, 2020. Corporate income tax expenses
for the six months ended September 30, 2020 was calculated based on estimated annual effective tax rate.

16

4. Significant accounting estimates and judgements
In preparing condensed quarterly consolidated financial statements, adoption of accounting policies, judgement affects thereporting amount of assets, liabilities, income and expenses, accounting quotation and assumptions are used. The company
collects past experiences and available information and considered various factors thought as rational at the closing date, andthese estimates and assumptions are based on the best judgement of executive. However, the figures based on these estimation
and assumptions might be different from the actual result judging from the nature.
We maintain the revision of estimates and the assumptions which could be the basis. We recognize the impact by this revisionin the period for revised the estimates and future period.
(1) Significant judgement in application of accounting policies
・Revenue recognition(2) Issues could be factors of uncertainty of estimates
The assumptions about the future having remarkable risks which may be a factor of significant revision on book value of
assets and liabilities after the three months ended September 30, 2020, and the main information regarding uncertainty ofother estimates as of the end of the period are included into the following note.
・Matters relating to financial instruments (Notes: 10. Fair values of financial instruments).
5. 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 ofour group. It is also an object being examined on a regular basis to evaluate our decision of resource allocation and businessresults 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 “Multipin 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 for printed circuit boards,
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.

17

(2) Information of reporting segment
The revenue stated in reporting segment is operating profit basis.
For the first half of the fiscal year ended March 31, 2020 (from April 1, 2019 to September 30, 2019)(Yen in millions)

Amount ofcondensed quarterly
consolidated
financial statements

Reporting segments
Multi-pin
connectors

Others*Coaxialconnectors

Total

Sales revenue
Sales revenue from externalcustomers

53,313

4,982

58,295

1,970

60,265

Total revenue

53,313

4,982

58,295

1,970

60,265

Operating profit

10,872531

11,403

131

11,534

Financial income

―

―

―

―

623

Financial expenses

―

―

―

―

70

Quarterly income before tax

―

―

―

―

12,087*”Others” category is not included into reporting segments. “Others” includes micro switches and instruments for connectors.

For the first half of the fiscal year ending March 31, 2021 (from April 1, 2020 to September 30, 2020)(Yen in millions)

Reporting segments
Multi-pin
connectors

Coaxialconnectors

Amount ofcondensed quarterly
consolidated
financial statements

Others *Total

Sales revenue
Sales revenue from externalcustomers

54,475

4,601

59,076

1,960

61,036

Total revenue

54,475

4,601

59,076

1,960

61,036

Operating profit

12,161703

12,86429

12,893Financial income

―

―

―

―

518

Financial expenses

―

―

―

―

524

Quarterly income before tax

―

―

―

―

12,887*”Others” category is not included into reporting segments. “Others” includes micro switches and instruments for connectors.

18

6. Paid-in capital and other equity
Following the resolution of director’s board meeting held on May 8, 2019, we cancelled 131,000 treasury shares as of May
31, 2019.
Moreover, following the resolution of director’s board meeting held on May 28, 2020, we cancelled 205,000 treasury shares
as of June 2, 2020. The amount of the cancellation was reduced from other capital surplus in “Capital surplus”, but the amountexceeding other capital surplus was reduced from “Retained earnings”.

7. Dividends(1) Dividends paid
For the six months ended September 30, 2019 (From April 1, 2019 to September 30, 2019)

The resolution of theOrdinary General
Meeting of Shareholders
held on June 27, 2019

Total amount ofdividends(Yen in millions)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective date

4,376

Retainedearnings

120.00March 31,2019

June 28, 2019

For the six months ended September 30, 2020 (From April 1, 2020 to September 30, 2020)

The resolution of theOrdinary General
Meeting of Shareholders
held on June 26, 2020

Total amount ofdividends(Yen in millions)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective date

4,352

Retainedearnings

120.00March 31,2020

June 29, 2020

(2) The dividend whose record date falls in the six months ended September 30, 2020 and the effective date falls in the next
periodFor the six months ended September 30, 2019 (From April 1, 2019 to September 30, 2019)

The resolution of theboard of directors held
on November 1, 2019

Total amount ofdividends(Yen in millions)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective date

4,376

Retainedearnings

120.00

September 30,
2019

December 2,
2019

For the six months ended September 30, 2020 (From April 1, 2020 to September 30, 2020)

The resolution of theboard of directors held
on November 2, 2020

Total amount ofdividends(Yen in millions)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective date

4,352

Retainedearnings

120.00

September 30,
2020

December 1,
2020

19

8. Breakdown of Revenue
The organization of our group is composed based on the types of connectors and the location of our customers. Based onthese classification, the board of directors decides the allocation of resources and evaluate business performance.
The relationship between the sales revenue analyzed by the customer’s location and the sales revenue in each reporting
segments is as below.
For the first half of the fiscal year ended March 31, 2020 (from April 1, 2019 to September 30, 2019)(Yen in millions)

Reporting Segment

Others

Total

Multi-pin connectors

Coaxial connectors

Japan

14,2701,066

350

15,686

Customer

China

18,9261,701

306

20,933location

South Korea

7,910

467

1,223

9,600

Others

12,207

1,748

91

14,04653,313

4,982

1,970

60.265Total

For the first half of the fiscal year ending March 31, 2021 (from April 1, 2020 to September 30, 2020)(Yen in millions)

Reporting Segment

Others

Total

Multi-pin connectors

Coaxial connectors

Japan

13,090993

282

14,365

Customer

China

21,357

1,258

165

22,780location

South Korea

6,732

431

1,413

8,576

Others13,296

1,919

100

15,31554,475

4,601

1,960

61,036Total

In Japan, we sell circular and rectangular connectors, connectors for printed circuit boards and connectors for automotive,
and major customers are in mainly general industrial and automotive market.
In China, our main products are connectors for printed circuit boards and coaxial connectors, and the main customers are
smartphone and consumer manufacturers.
In South Korea, our main products are connectors for printed circuit boards, rectangular connectors, connectors forautomotive, coaxial connectors and other electronic equipment. The main customers are in smartphone, consumer andautomotive market.
Regarding other area, we sell various connectors including connectors for printed circuit boards to the customers located inEurope, North America and other Asian countries.

209. Earnings per Share
For the six months ended
September 30, 2019

For the six months ended
September 30, 2020

(From Apr 1, 2019 to Sep 30, 2019)(From Apr 1, 2020 to Sep 30, 2020)

The basis of calculation for quarterly earnings per share -basic(Yen in millions)

Quarterly profit attributable to owners of the parent(Yen in millions)

8,573

9,338

(Yen in millions)(Yen in millions)

8,573

9,338

(Thousand Shares)(Thousand Shares)

36,46336,267

(Yen)

(Yen)

235.12257.48

Quarterly profit used for the calculation of basic quarterly
earnings per share(Yen in millions)(Yen in millions)

8,573

9,338

Quarterly profit used for the calculation of diluted quarterly
earnings per share(Yen in millions)(Yen in millions)

Quarterly profit used for calculation of basic quarterly earnings
per share
Weighted average shares during the period
Quarterly earnings per share – basic
The basis of calculation for quarterly earnings per share -diluted

Weighted average shares during the period
Number of shares increased by stock acquisition right
Weighted average shares-Diluted
Diluted quarterly earnings per share

8,573

9,338

(Thousand Shares)(Thousand Shares)

36,46336,267(Thousand Shares)(Thousand Shares)−−(Thousand Shares)(Thousand Shares)

36,46336,267

(Yen)

(Yen)

235.12257.48(Note) Diluted quarterly earnings per share for the six months ended September 30, 2019 and September 30, 2020 is statedat the same amount as basic quarterly earnings per share, since there are no potential shares with dilutive effect.

21

For the three months
ended September 30, 2019

For the three months
ended September 30, 2020

(From Jul 1, 2019 to Sep 30, 2019)(From Jul 1, 2020 to Sep 30, 2020)

The basis of calculation for quarterly earnings per share -basic
Quarterly profit attributable to owners of the parent
Quarterly profit used for calculation of basic quarterly earnings
per share
Weighted average shares during the period(Yen in millions)(Yen in millions)

4,506

4,921

(Yen in millions)(Yen in millions)

4,506

4,921

(Thousand Shares)(Thousand Shares)

36,46336,267

(Yen)

(Yen)

123.57135.70Quarterly profit used for the calculation of basic quarterly
earnings per share(Yen in millions)(Yen in millions)

4,506

4,921

Quarterly profit used for the calculation of diluted quarterly
earnings per share(Yen in millions)(Yen in millions)

Quarterly earnings per share – basic
The basis of calculation for quarterly earnings per share -diluted

Weighted average shares during the period
Number of shares increased by stock acquisition right
Weighted average shares-Diluted
Diluted quarterly earnings per share

4,506

4,921

(Thousand Shares)(Thousand Shares)

36,46336,267(Thousand Shares)(Thousand Shares)−−(Thousand Shares)(Thousand Shares)

36,46336,267

(Yen)

(Yen)

123.57135.70(Note) Diluted quarterly earnings per share for the three months ended September 30, 2019 and September 30, 2020 is statedat the same amount as basic quarterly earnings per share, since there are no potential shares with dilutive effect.

10. Fair Values of Financial Instruments(1) Method of measuring fair values(Cash and cash equivalents, trade and other receivables, trade and other payables)
Since these subjects are settled in a short term, book value is rational approximate value of fair values.
(Other financial assets, other financial liabilities)
In other financial assets, fixed deposit which term exceeds three months are usually settled within a year, and the book value
is rational approximate value of fair values.
When there is an active market, the equity instruments are measured using published market price. If there is no active market,
it is mainly measured by Net Asset Approach.
Regarding debt instruments, if there is an active market, it is measured using published market price. If there is no active
market, it is measured using observable postulate including credit rating or discount rate.
Derivatives are assessed based on forward exchange rate, etc.

22(2) Financial instruments measured by amortized cost
Fair values of financial instruments measured by amortized cost are as below.
Financial instruments which book value is a rational approximate value of fair value are not included below table.
(Yen in millions)

As of March 31, 2020
Book Value

As of September 30, 2020

Fair ValueBook Value

Fair Value

Other Financial Assets
Debt Instruments

6,659

6,659

7,267

7.267

(3) Financial instruments measured at fair value① The fair value hierarchy
Financial instruments measured at fair values are classified into 3 levels.
Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets
Level 2: Fair values calculated using observable value directly or indirectly except for Level 1.
Level 3: Fair values calculated by measurement including unobservable inputs.
The levels of the fair value of financial instruments measured at fair value are as follows.
In the fiscal year ended March 31, 2020 (As of March 31, 2020)(Yen in millions)Level1

Level2

Level3

Total

Other financial assets
Financial assets measured at fair value throughprofit or loss
Debt instruments

−

3,475

−

3,475

Debt instruments

30,938−−30,938Equity instruments

12,535−180

12,71543,4733,475

180

47,128

－

25

−

25

−

25

−

25

Financial assets measured at fair value throughother comprehensive income

Total of assets
Other financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivatives
Total of liabilities

23

For three months ended September 30, 2020 (As of September 30, 2020)(Yen in millions)Level1

Level2

Level3

Total

Other financial assets
Financial assets measured at fair value throughprofit or loss
Debt instruments

−

4,904

−

4,904

Derivatives

−

6

−

6

Debt instruments

29,667−−

29,667

Equity instruments

12,107−179

12,286

41,7744,910

179

46,863

－

73

−

73

−

73

−

73

Financial assets measured at fair value throughother comprehensive income

Total of assets
Other financial liabilities
Financial liabilities measured at fair value
through profit or loss
Derivatives
Total of liabilities

Transfer between levels of the fair value hierarchy are recognized on the day when the event or change in circumstancesthat the transfer occurred. There were no transfer between level 1 and level 2 for the year ended March 31, 2020 and for thethree months ended September 30, 2020.
② Information on fair value measurement classified into level2 and level3
Debt instruments classified into level2 of the fair value hierarchy are measured using observable postulate including credit
rating or discount rate in the market. Derivatives are assessed based on forward exchange rate.
Fair value of equity instruments classified into level3 are mainly assessed by Net Asset Approach. Fair values increase(decrease) along with the rise (decline) in net asset value. Significant changes in fair value are not expected when
unobservable inputs are changed to reasonably possible alternative assumptions.
Financial instruments classified into Level3 is measured based on accounting policies of Hirose group and the result of themeasurement is approved by a responsible person of administration group.
There are no significant changes in financial assets classified Level3 for the seconf quarter of the fiscal 2019 and 2020.
11. Subsequent events
Not applicable24

12. Additional information
The situation affected by COVID-19 has been unclear. In Japan, after the state of emergency has been lifted, the economic
activities are recovering gradually. In other hand, the impact of COVID-19 has been expanding in some overseas area.
Under this situation, Hirose group are able to operate production and sales activities at almost normal level in each area ofall Hirose group as of filing date of this report. Although the market situation will continue being unclear, it is expected thatthe impact of the infection will decrease gradually on the assumption that the second-wave and third-wave will not occur.
Based on the forecast stated above, we conducted accounting estimation during the first half of the fiscal 2020. In the fiscal
2020, there may be a negative impact on our business continuously, but we consider that the impact will not be significant
influence to the consolidated financial statements.

2. Others
The interim dividend for the current period was resolved at the board of directors held on November 2, 2020 as follows.
(1) Total amount of dividends(2) Amount per share(3) Effective date of claim of payment and start date of payment

25

JPY 4,352 million
JPY 120.00
December 1, 2020