Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 15, 2023
Company name:HAGIWARA ELECTRIC HOLDINGS CO., LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
7467
URL
Representative:
Inquiries:

https://www.hagiwara.co.jp/President and Representative Director
Senior Vice PresidentMoritaka Kimura
Yoshihiro Hirakawa

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2023
June 29, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 8, 2023
Yes

Holding of financial results meeting:

Yes

TEL

052-931-3511(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
186,001
17.4
6,725
54.4
6,417
48.0
4,912
70.8
Year ended March 31, 2022
158,427
23.9
4,356
25.6
4,335
21.9
2,876
24.3
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–12.5
6.8
3.6
–
8.0
5.6
2.8

Diluted earnings pershare

Earnings per shareYen
554.71325.07

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
106,577
82,482Millions of yen
43,53139,369Cash flows fromoperating activities
Millions of yen(13,020)(4,905)

Cash flows frominvesting activities
Millions of yen(1,327)(171)

Net assets per share%
38.8
45.2

Yen
4,672.91
4,208.13(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
16,421
10,9203,564
8,506

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

YenYenMillions of yen%%––40.00
60.00

––

60.00
95.00

100.00155.00

885
1,373

30.8
27.9

2.5
3.5

–

60.00

–

85.00

145.00133.2

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
213,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
14.5
6,300(6.3)
6,000(6.5)
3,900 (20.6)
437.02

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

9,018,000 shares As of March 31, 2022

9,018,000 shares

158,474 shares As of March 31, 2022

167,113 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

8,856,783 shares Year ended March 31, 2022

28,848,590 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assetsCash and deposits
Notes receivable - trade

8,506
279

10,920168

Accounts receivable - trade
Contract assets

26,149141

32,377
189

Electronically recorded monetary claims - operating
Merchandise and finished goods

9,471
27,641

15,53734,411

603
861

1,191
1,813

Other
Allowance for doubtful accounts

3,090
(17)

2,704
(16)

Total current assets

76,72999,297

1,492(1,038)2,885(2,065)

Buildings and structures, net

454

819

Machinery, equipment and vehicles
Accumulated depreciation

48(40)

89(80)

79

1,903
383

3,055415

Accumulated depreciation

(214)

(290)

Leased assets, net

169

124

Construction in progress

1

1918
(741)

1,132(845)Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

176

286

2,713

4,297

243

222

1,444

1,315

Long-term loans receivable
Retirement benefit asset

449637113

Deferred tax assets
Other584
670

647
683

Allowance for doubtful accounts

(44)

(37)

Total investments and other assets

2,796

2,760

Total non-current assets
Total assets

3

5,753

7,280

82,482

106,577

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade17,376

17,408

Electronically recorded obligations - operating
Short-term borrowings

3,126
10,129

3,823
6,084

Current portion of long-term borrowings
Lease liabilities

1,02598

4,15298

Income taxes payable
Contract liabilities

992
1,106

1,476
1,659

–
109

40
129––

27
3

Other

2,567

2,868

Total current liabilities

36,531

37,774

Bonds payable
Long-term borrowings

–
6,250

10,00014,844

Lease liabilities
Deferred tax liabilities

78
79

118
172

Asset retirement obligations
Other

119
54

117
19

Total non-current liabilities

6,582

25,271

43,11363,046

Shareholders' equity
Share capital

4,361

4,361

Capital surplus
Retained earnings

4,872
27,6794,874
31,529Treasury shares

(305)

(290)

36,60740,474

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

325
(3)

305
–

Foreign currency translation adjustment
Remeasurements of defined benefit plans

413
(97)

772
(152)

Total accumulated other comprehensive income

638

924

Provision for product warranties
Provision for bonuses for directors (and other officers)
Provision for loss on orders received
Asset retirement obligations

Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests

2,123

2,131

Total net assets

39,36943,531

82,482

106,577

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

158,427

186,001

Cost of sales

143,814167,786

Gross profit

14,612

18,214

Selling, general and administrative expenses

10,255

11,489Operating profit

4,356

6,725

Non-operating income
Interest income

1510

Dividend income
Foreign exchange gains

1938

21–Insurance claim income
Compensation income

1102441Other

2967

Total non-operating income

114

165

Interest expenses
Interest expenses on bonds

36–

147
6

Bond issuance costs
Foreign exchange losses

––

76
156

Loss on sale of trade receivables
Loss on valuation of investment securities

18
1

29
33

Commission expenses
Provision of allowance for doubtful accounts

15
51

–
–

Other

1222

Non-operating expenses

Total non-operating expenses

135

473

4,335

6,4170–Gain on sale of investment securities
Gain on bargain purchase

77–

32670

Total extraordinary income

78703

980–

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

Extraordinary losses
Loss on disposal of non-current assets
Other108

Profit before income taxes

Total extraordinary losses

4,403

7,111

Income taxes - current

1,562

2,206

Income taxes - deferred

(89)

(50)

Total income taxes

1,473

2,155

Profit

2,930

4,955

Profit attributable to non-controlling interests
Profit attributable to owners of parent

554

42

2,876

4,912

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
2,930

4,955

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(89)
(3)

(20)
3

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

309
10358
(55)

Total other comprehensive income

227

286

3,158

5,242

3,104

5,199

5442

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital

CapitalsurplusRetainedearnings

Total
shareholders'

TreasurysharesequityBalance at
beginning of
period

4,361

4,868

25,626(319)

34,537

Cumulative
effects ofchanges in

(28)

(28)

accounting
policies
Restated balance

4,361

4,868

25,598(319)

34,509Changes during
periodDividends ofsurplus

(796)

(796)

2,876

2,876

Profitattributable toowners of parent
Purchase oftreasury shares
Disposal of

3treasury shares

(0)

(0)

1317

Net changes in
items other thanshareholders'–

equityTotal changes
during period
Balance at end ofperiod

–

3

2,080

13

2,097

4,361

4,872

27,679(305)

36,6077

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Foreigncurrencytranslation
adjustment

Total
Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincomeBalance at
beginning of
period414–

103(107)

410

2,103

37,052

Cumulative
effects ofchanges in–(28)

accounting
policies
Restated balance

414–103(107)

410

2,103

37,024

Changes duringperiod
Dividends ofsurplus(796)

Profitattributable toowners of parent

2,876

Purchase oftreasury shares(0)

Disposal of17

treasury shares
Net changes in
items other thanshareholders'

(89)

(3)

309

10227

19247

Total changes
during period

(89)

(3)

309

10227

19

2,344

Balance at end ofperiod

325

(3)

413

(97)

638

2,123

39,369equity8

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at
beginning of

4,361

CapitalRetainedTreasury

surplusearnings

shares

4,872

27,679Total
shareholders'equity(305)

36,607

periodCumulative
effects ofchanges inaccounting–

policies
Restated balance

4,361

4,872

27,679(305)

36,607

Changes during
periodDividends ofsurplusProfitattributable to(1,062)(1,062)

4,912

4,912

owners of parent
Purchase oftreasury shares
Disposal oftreasury shares

1(0)

(0)

15

17

Net changes in
items other than–shareholders'equityTotal changes
during period
Balance at end of
period–13,850

15

3,867

4,361

4,874

31,529(290)

40,4749

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Foreigncurrencytranslation
adjustment

Total
Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincomeBalance at
beginning of
period

325

(3)

413

(97)

638

2,123

39,369Cumulative
effects ofchanges in––accounting
policies
Restated balance

325

(3)

413

(97)

638

2,123

39,369Changes during
periodDividends ofsurplus–(1,062)–

4,912–(0)–17Profitattributable toowners of parent
Purchase oftreasury shares
Disposal oftreasury shares
Net changes in
items other thanshareholders'(20)3358(55)

286

8294

Total changes
during period(20)3358(55)

286

8

4,162

Balance at end ofperiod305–

772(152)

924

2,131

43,531equity10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on bargain purchase
Loss (gain) on sale and retirement of non-current assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses for directors (andother officers)
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for product warranties
Interest and dividend income
Interest expenses
Bond issuance costs
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
4,403
282
–
858

7,111
294(670)
8(7)3419(71)
––
(34)
36–
1(77)
4,219
(12,067)544(1,103)(97)
25
15(32)
154
76
33(32)(11,757)(7,856)371
1,309

Subtotal(3,765)(11,032)

Interest and dividends received
Interest paid
Income taxes paid

35(41)(1,134)32(144)(1,876)

Net cash provided by (used in) operating activities(4,905)(13,020)

(114)
118
(87)
10(90)

(3)
114
(129)
–
(104)

–

(1,209)(8)

4Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net
Net cash provided by (used in) investing activities(171)(1,327)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net

4,780
2,400(2,700)
–(0)
(796)
(34)
(84)

(4,044)
13,060(1,338)9,923(0)(1,061)(34)(83)

Net cash provided by (used in) financing activities

3,564

16,421

Effect of exchange rate change on cash and cash equivalents

304

340

Net increase (decrease) in cash and cash equivalents(1,207)

2,413

Cash and cash equivalents at beginning of period

9,713

8,506

Cash and cash equivalents at end of period

8,506

10,92011