English translation

Financial Statements Summary for the Year Ended March 31, 2020 [IFRS] (Consolidated)
May 28, 2020
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 26, 2020

Scheduled date of filing of Japanese annual securities report:

June 26, 2020

Scheduled date of dividend payable:

June 29, 2020

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, 2020
(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%%

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)FY2018

124,590(0.4)

23,157(17.5)

24,671(11.9)

17,891(6.4)

17,891(6.4)

16,910(11.1)

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

%

%

%

FY2019420.39420.37

5.0

6.2

16.7

FY2018489.46489.45

5.8

7.2

18.6

(Reference) Share of profit (loss) of investments accounted for using the equity method:
Fiscal year ended March 31, 2020: ―Fiscal year ended March 31, 2019: ―1

*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

: Yes

2. 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, 2020: 38,381,820

As of March 31, 2019: 38,513,152

2. Number of treasury stock at the end of the period:
As of March 31, 2020: 2,114,675

As of March 31, 2019: 2,050,423

3. Weighted-average number of shares outstanding during the period:
Year ended March 31, 2020: 36,407,123

Year ended March 31, 2019: 36,551,523*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 29, 2020. 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, 2020." 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 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(1) Overview of Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(2) Overview of Financial Condition ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(3) Overview of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(4) Future Outlookꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(5) Important events related to going concern assumption ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7
2. Basic Approach to the Selection of Accounting Standardsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7
3. Consolidated Financial Statements and Primary Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(1) Consolidated Statement of Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(2) Consolidated Statement of Profit or Loss and Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(3) Consolidated Statement of Changes in Equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12(4) Consolidated Statement of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 13(5) Notes on Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14(Segment information)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 144

1. Overview of Operating Results and Financial Condition(1) Overview of Operating Results for the year ended March, 2020
In the fiscal year ended March 31, 2020, employment situation in Japan remained strong. On the other hand, exports decreased
associated with slowdown of overseas economy, and consumer spending dropped affected by consumption tax increase and large
typhoon, and COVID-19 has expanded after the beginning of CY2020. As a result, Japanese economy is facing difficult situation.
In overseas market, both of the U.S. and Chinese economy has stagnated because of the U.S-China trade friction and the future isgetting more unclear due to the impact on world economy by 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 smartphone and consumer market has remained strong, but the salesof industrial has been slow down. As a result, sales revenue in the fiscal 2019 decreased by 2.3% to 121,765 million yen. Operating
profit decreased by 12.1% to 20,358 million yen, income before tax decreased by 14.0% to 21,205 million yen, net income
decreased by 14.5% to 15,305 million yen in fiscal 2019 as compared with fiscal 2018.
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, 2020 increased by 0.5% to108,014 million yen, operating profit decreased by 11.2% to 19,406 million yen compared with the fiscal year ended March 31,
2019.
[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 microwave communications devices, satellite communications equipment, electronic measuring
instruments, smartphones, switching and transmission equipment and other electronic equipment. Optical fiber connectors andcoaxial switches are also included in this segment. Segment sales for the year under review decreased by 20.5% to 9,784 million
yen. Operating profit decreased by 30.7% to 837 million yen.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the fiscal year ended March 31, 2020
decreased by 17.6% to 3,967 million yen, operating profit increased by 13.0% to 115 million yen.

5(2) Overview of Financial Condition for the Year ended March 31, 2020
Total assets increased by 1,209 million yen to 342,644 million yen compared to the consolidated fiscal year ended March 31,
2019 because inventories increased and we appropriated right of use asset by adopting IFRS16 “lease.” Although trade payables
decreased, total liabilities increased by 2,398 million yen to 36,503 million yen because of appropriating lease liabilities adopted
by IFRS16 “lease.” Regarding net assets, retained earnings increased, but dividend of surplus and foreign currency translation
adjustment decreased, and net assets decreased by 1,189 million yen to 306,141 million yen. As a result, total equity attributableto owners of the parent decreased by 0.7% to 89.3% compared to the fiscal year ended March 31, 2019.
(3) Overview of Cash Flows
Cash and cash equivalents at the fiscal year under review decreased by 1,761 million yen to 50,561 million yen compared to
the fiscal year ended March 31, 2019.
a. Cash flows from operating activities
Net cash provided by operating activities for fiscal 2019 increased by 28,584 million yen. (In the fiscal 2018, it increased by
28,182 million yen.) This increase was mainly due to a rise in capital by appropriating income before tax, 21,205 million yen, anddepreciation and amortization, 15,819 million yen. On the other hand, there were decrease in capital because of the payment ofcorporate income tax, 6,035 million yen.
b. Cash flows from investing activities
Net cash used in investing activities for fiscal 2019 decreased by 17,164 million yen. (In the fiscal 2018, it decreased by
31,154 million yen.) This is mainly due to decrease in capital by payments for purchase of tangible fixed assets, 18,689 million
yen.
c. Cash flows from financing activities
Net cash used in financing activities for fiscal 2019 decreased by 12,205 million yen. (In the fiscal 2018, it decreased by
14,298 million yen.)This is because of decrease in capital by the dividend payment, 8,751 million yen, and payments forpurchase of treasury stock, 2,758 million yen.
(4) Future Outlook
Regarding the outlook of the year ending March 31, 2021, it is expected that Japanese economy will be unclear because
economic activities are substantially restricted by state-of-emergency declaration to prevent COVID-19.
Moreover, overseas situation will be unpredictable due to the U.S.-China economic friction, the growth of geopolitical risk, as wellas the impact of COVID-19.
Under this circumstances, it is expected to have an impact to electronics industry which we belong. We predict that the production
volume of automobile and smartphone will drop compared to the fiscal 2019, and are also concerned that demand for electronic
components will decrease. However, at the moment, we expect that the demand will recover at some extent from the second halfof the fiscal 2020. We do not include the expected damages to global economic activities, our production activities, raw material
procurement and supply chain by the second wave of COVID-19.

6

Based on the premise mentioned above, our forecast for the consolidated financial results in the fiscal 2020 is that sales revenue:
115 billion yen (decreased by 5.6% over the fiscal 2019), operating profit: 17.2 billion yen (decreased by 15.5%), income before
tax: 18 billion yen (decreased by 15.1%), profit attributable to owners of the parent company: 13billion yen (decreased by 15.1%)
as of March 31, 2020.
Assumed exchange rates for fiscal 2020 are 107 yen to the U.S. dollar, 117 yen to the Euro, and 0.088 yen to the Korean won.
(5) Basic Profit Distribution Policy and Dividends for fiscal 2019 and for fiscal 2020
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, we firmly maintain that the dividends for the fiscal 2019 comprises year-ended dividend of ¥120 per shareand annual dividend of ¥240 even though our business results are tough due to the impact of COVID-19. Our dividend forecast
for the year ending March 31, 2021 is expected to be an interim and annual dividend of ¥120 per share, and as a result, annual
dividends will be ¥240 per share.
We are planning to prepare retained earnings for research and development investment for the future technological innovation,
capital investment associated with globalization and M&A to deal with changes in business environment.
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, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and cash equivalents

52,32250,561

Trade and other receivables

29,54030,444Inventories

13,935

14,512Other financial assets

134,295

120,541

Other current assets

4,996

4,614

Total current assets

235,088

220,672

62,74561,541

Right of use assets

―

4,478

Intangible assets

2,623

2,519

Other financial assets

38,59650,141

Deferred tax assets

1,987

2,272

Retirement benefit assets―

563

Other non-current assets

396

458

Total non-current assets

106,347

121,972

341,435

342,644

Non-current assets
Tangible fixed assets

Total assets

8

(Yen in millions)

As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Trade and other payables

19,307

16,747

Lease liabilities―

728

Other financial liabilities

17

25

Accrued tax payables

3,088

2,964

Other current liabilities

4,173

4,377

Total current liabilities

26,58524,841

Lease liabilities

―

3,764

Retirement benefit liabilities

379

230

Deferred tax liabilities

5,993

6,573

Other non-current liabilities

1,148

1,095

Total non-current liabilities

7,520

11,662

34,10536,503

Common stock

9,404

9,404

Common surplus

11,314

11,293Retained earnings

303,349

308,343

Treasury stocks(23,213)(24,456)

6,476

1,557

307,330

306,141

Total equity

307,330

306,141

Total liabilities and equity

341,435

342,644

Non-current 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, 2019

For the year ended March 31, 2020

Sales revenue

124,590

121,765

Cost of sales

69,97270,383Gross profit

54,61851,382

Selling, general and administrative expenses

30,91430,468Other income

496

1,305

Other expenses

1,043

1,861

Operating profit

23,157

20,358Financial income

1,527

1,192

Financial expenses

13

345

Profit before income taxes

24,671

21,205

Corporate income tax expenses

6,780

5,900

Profit for the year

17,891

15,305

17,891

15,305

Basic (yen)489.46420.39Diluted (yen)489.45420.37

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, 2019

March 31, 2020
17,891

15,305Re-measurement of defined benefit plans

(149)

(96)

Financial assets measured at fair value
through other comprehensive income

(13)

1,198

(162)

1,102

(842)

(6,057)23(59)

Total items that may be reclassified to profit or loss

(819)

(6,116)

Total other comprehensive income after tax(981)(5,014)

16,910

10,291

16,910

10,291Other 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,
2018

9,404

Capitalsurplus11,674

Profit for the year

Retainedearnings

Treasury
stock

Other
componentsof equity

Total equity
attributable toowners of theparentTotal equity

334,505(58,316)

7,452

304,719304,719

17,891

17,891

(981)

(981)

(981)

(981)

16,91016,910(12,754)(12,754)

17,891Other comprehensive
incomeTotal comprehensive
income for the year――

Dividend of surplus

17,891―(12,754)

Purchase of treasury stock(0)(1,572)(1,572)(1,572)

Disposition of treasury
stock(19,644)

19,67127

27

Cancellation of treasury
stock(17,004)

17,004――

Transfer to retained
earnings

36,288(36,293)5――

Total transaction withowners―(360)(49,047)

35,103

5(14,299)(14,299)

Balance as of March 31,
2019

9,404

11,314

303,349(23,213)6,476

307,330

307,330

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)

CommonStock
Balance as of April 1,
2019

9,404

Capitalsurplus11,314

Profit for the year

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

306,14112

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

For the year ended

For the year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities:
Income before tax

24,671

21,205

Depreciation and amortization

13,107

15,819Financial income(1,527)(1,192)Financial expenses

13

345

(Increase) decrease in trade and other receivables

2,051(1,535)(Increase) decrease in inventories(1,826)(1,069)

(757)

(774)

Others6654

Subtotal

35,73833,453

Interests received

924

833

Dividends received

298

333

Income taxes paid

(8,778)(6,035)

Net cash provided by operating activities

28,18228,584(Increase) decrease in term deposit(3,368)2,477

Proceeds from sales and redemption of investment

17,547

13,332

Payments for purchase of investment(24,545)(14,056)

Payments for purchase of tangible fixed assets(20,340)(18,689)

(448)

(228)

(31,154)(17,164)

Purchase of treasury stock(1,572)(2,758)Dividends paid

(12,754)(8,751)

Payment of lease liabilities

―

(725)

Others28

29(14,298)(12,205)

196

(976)

Increase (decrease) in cash and cash equivalents(17,074)(1,761)

Cash and cash equivalents at the beginning of the year

69,39652,322

Cash and cash equivalents at the end of the year

52,32250,561

Increase (decrease) in trade and other payables

Cash flows from investing activities

OthersNet cash used in investing activities
Cash flows from financing activities

Net 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
Accounting method for reporting business segment is the same as the statement in “important accounting policy”. The revenues
stated in reporting segment is the figures based on operating profit.
For the year ended March 31, 2019
(Yen in millions)

Reporting segments
Multi-pin
connectors

Coaxialconnectors

Others*1,2

Total

Amount of consolidated
financial statement

Sales revenue
Sales revenue from externalcustomers

107,475

12,303

119,778

4,812

124,590

Total revenue

107,475

12,303

119,778

4,812

124,590

Operating profit

21,848

1,207

23,055

102

23,157

Financial income

―

―

―

―

1,527

Financial expenses

―

―

―

―

13

Income before tax

―

―

―

―

24,671

11,3781,365

12,743364

13,107

Other items
Depreciation and amortization

14

Notes: *1 ”Others” category is not included into reporting segments. “Others” includes medical electronic devices such as
interference wave EMS, micro switches and instruments for connectors.
*2 Business of medical electronic devices such as interference wave EMS included in “Others” category was transferredon January 31, 2019.
2. Geographic information
Japan
Sales revenue

China

Korea

OthersTotal

34,75939,427

16,782

33,622

124,590

27.9

31.6

13.5

27.0

100.0

Percentage of consolidated sales revenue(%)

For the year ended 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.
2. Geographic information
Japan
Sales revenue
Percentage of consolidated sales revenue
(%)

China

Korea

OthersTotal

31,68942,335

18,38529,356

121,765

26.0

34.8

15.1

24.1

100.0

15

(Significant subsequent events)
1. Land acquisition
KORIYAMA HIROSE ELECTRIC CO., LTD., our consolidated subsidiary, made a contract with Koriyama-shi Fukushima
Prefecture, to acquire the land on April 30, 2020. The details of the land, reason for acquisition and future outlook are stated below.
・Property overview
Location : 16-1,19, 1-chome, Kamiizushima, Koriyama-Shi, Fukushima Prefecture
Area : 47,720.87 ㎡
Price : 735 million yen
・The reason for acquisition
Taking the production results and continuous business development of Koriyama factory into consideration, we have decided
to acquire this land to “progress and expand our ability to manufacture” for mid-and-long term, and “reinforce safety andconvenience” including unexpected natural disasters.
・Future outlook
The new building on the land is planning to be completed within FY2022. As soon as it’s completed, our factory will be moved
there. The details of the plan has not been decided at the moment.

2. Receipt of an insurance claim
Due to Typhoon Hagibis formed in October, 2019, the Abukuma River wad flooded. It caused flood damages to the factory of
Koriyama Hirose, our consolidated subsidiary, and part of our inventories and tangible fixed assets were damaged.
The receipt amount of the casualty insurance claim for this damages was finalized on April 20, 2020 as follows.
The Amount of the insurance claim: 1,496 million yen
This insurance claim will be factored into “other income” of FY ending March, 2021.
1,329 million yen as the costs for disposal of these damaged assets and for restoration was recorded to consolidated profit andloss statement of the current fiscal year, ended March 2020.

16