Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — Q1 FY2020 Earnings Presentation
26 slides from Hirose Electric's earnings presentation, Aug 4, 2020
Slide 1: Business Results for the First Quarter of FY2020
Hirose Electric Business Results for the First Quarter of FY2020 Business Results for the First Quarter of FY2020 August 4, 2020 Hirose Electric Co., Ltd. 〔6806〕
Slide 2: Cautionary Statement
Cautionary Statement In this material, there are descriptions based on current estimation by Hirose Electric. Hirose cautions you that a number of important risks, uncertainties and others could cause actual results to differ materially from those discussed in the *forward-looking statements. Thank
Slide 3: Summary of the business results (FY2020.1Q)
HS Summary of the business results (FY2020.1Q From April, 2020 to June, 2020) H In the first quarter of FY2020, economic activities has remained stagnant due to the global impact of COVID-19. As a result, the sales decreased by 3.0% year-on-year. HM Operating profit includes insurance money for Kori
Slide 4: Changes in sales and operating profit (FY2019.1Q-FY2020.1Q)
HS Changes in sales and operating profit (FY2019.1Q-FY2020.1Q / Consolidated basis) mmm Sales Operating profit -O-Operating profit ratio (Yen in hundred millions) 320.3 312.6 302.3 21.5% 59.0 19.1Q 19.2Q 19.3Q 19.4Q 20.1Q
Slide 5: Business Results for FY2020.1Q
Business Results for FY2020.1Q (Yen in hundred millions) Increase Increase FY2019.1Q FY2020.1Q / Decrease / Decrease Ratio (FY ended June 30, 2019) (FY ended June 30, 2020) (YoY) (YoY) Sales 282.3 274.0 ‐8.3 ‐3.0% COGS Ratio 57.5% 58.0% +0.5 SGA Ratio 26.7% 26.0% ‐0.7 Operating Profit 53.4 59.0 +5.6
Slide 6: Major Changes over 1Q of FY2019
HS Major Changes over 1Q of FY2019 (Yen in hundred millions) Sales 8.3hundred million yen Decreased Non consolidated Hirose: +11.2 (282.3 > 274.0) Subsidiaries: -19.5 COGS Ratio 0.5pt Deteriorated Purchase Cost Ratio: 38.4% —> 39.2% (57.5% > 58.0%) Depreciation Ratio: 10.7% 11.9% SGA Ratio 0.7pt Imp
Slide 7: FY2020.1Q YoY Variation Analysis
FY2020.1Q YoY Variation Analysis (Yen in hundred millions) Operating Earnings before Sales Profit (%) income tax (%) FY2019.1Q Actual 282.3 53.4 18.9% 56.7 20.1% Exchange rate ‐6.3 ‐3.6 ‐4.2 Depreciation cost increase ‐2.9 ‐2.9 Labor cost decrease 2.8 2.8 Decrease in the product ‐2.１ ‐0.8 ‐0.8 Gain
Slide 8: Changes in operating profit excluding temporary factors
HS Changes in operating profit excluding temporary factors (FY2019.1Q-FY2020.1Q) Operating profit -O-Operating profit ratio (Yen in hundred millions) 62.0 56.8 45.0 44.7 44.0 PY 18.2% —O 15.9% 14.8% 16.1% 19.1Q 19.2Q 19.3Q 19.4Q 20.1Q (Yen in hundred millions) Operating Profit (Financial Settlement)
Slide 9: Consolidated Balance Sheet
HS Consolidated Balance Sheet (Yen in hundred millions) Increase / Decrease Account Mar 31, 2020 June 30, 2020 Remark **" Cash and cash Maturity of fixed deposit, 505.6 : equivalents others = Trade and other : . 304.4 : receivables : . Increase in inventories of Inventories 145.1 overseas sales offi
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet HS (Yen in hundred millions) Increase / Account Mar 31, 2020 June 30, 2020 D Remark ecrease * Payables and other debt 167.5 m 9 : Lease liabilities 44.9 oc: + : Income Taxes Payable 29.6 B : = Others 123.0 "= Total 365.0 wn * Capital stock and 207.0 a : Capital surplus So:
Slide 11: Changes in Capital Investment and Depreciation
HS Changes in Capital Investment and Depreciation ' Capital Investment mm Depreciation (Yen in hundred millions) -~O-Capital Investment Ratio -O-Depreciation Ratio (%) 186 FY2017 FY2018 FY2019 FY2020 Forecast) FY2020.1Q 11
Slide 12: Overseas production and sales ratio
Overseas production and sales ratio 71% 71% 72% ei ° o- —o— ~ 45% 46% ~O- Overseas Sales Ratio -OQ-Overseas Production Ratio T T T FY2016 FY2017 FY2018 FY2019 FY2020.1Q, 12
Slide 13: Sales by Application reconsideration of the category and change of name
Sales by Application reconsideration of the category and change of name Previous @ General Industrial @ Smartphone / Mobile @ Automotive ®@ Digital Consumer Electronics @ Tablet / Notebook PC @ Communication ®@ Office Machinery New category @ General Industrial @ Smartphone ® Automotive / Mobility-r
Slide 14: Sales composition ratio by application (round number)
Sales compotision ratio by application (round number) 2019.1Q Computer Related ~~ Office Machinery Equipment Communication Tablet/Not Telecommunications infrastructure device OA (Office Automation) ipment 114
Slide 15: Sales by Application_General Industrial
HS Sales by Application_General Industrial (Yen in hundred millions) YoY QoQ FY2019.1Q FY2019.4Q FY2020.1Q (F¥20.10/F¥19.10) (FY20.10/FY19.4Q) Sales 86 103 103 20% 0% @ Composition ratio @ Changes in quarterly sales 103 103 93 86 91 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q H@ Following the previous t
Slide 16: Sales by Application_Smartphone
Sales by Application_Smartphone HS (Yen in hundred millions) YoY QoQ FY2019.1Q eee PU (FY20.1Q/FY19.1Q) (FY20.1Q/FY19.4Q) Sales 68 72 57 -16% -21% @ Composition ratio @ Changes in quarterly sales 85 75 68 72 57 22% 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.10 @ The sales for smartphone declined in FY2020
Slide 17: Sales by Application_Automotive/Mobility-related
HS Sales by Application_Automotive/Mobility-related (Yen in hundred millions) FY2019.1Q FY2019.4Q PAUSE INS) ee ae Sales 56 54 39 -30% -28% @ Composition ratio @ Changes in quarterly sales 56 °° ° 54 39 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q @ The sales for automotive has been in downward trend fol
Slide 18: Sales by Application_Consumer/Mobile Equipment
HS Sales by Application_Consumer/Mobile Equipment (Yen in hundred millions) YoY QoQ FY2019.1Q eee PU (FY20.1Q/FY19.1Q) (FY20.1Q/FY19.4Q) Sales 45 +13% +13% @ Composition ratio @ Changes in quarterly sales 52 51 51 45 45 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q @ As one of the preventive measures agai
Slide 19: Sales by Application_Telecommunications infrastructure equipment / OA equipment
HS Sales by Application_Telecommunications infrastructure equipment / OA equipment (Yen in hundred millions) YoY QoQ FY2019.1Q oe Poste (FY20.10/FY19.1Q) — (FY20.10Q/FY19.4Q) Telecommunications 9, 719 infrastructure equipment 11 14 11 0% 21% OA (Office Automation) fe) te) equipment 6 6 5 -17% -17% @
Slide 20: Annual sales forecast by applications [Updated]
HS Annual sales forecast by applications [Updated] (Yen in hundred millions) 362 286 185 202 FY19 = Forecast FY20 FY19 = Forecast + FY20 FY19 Forecast Fy20 FY19 Forecast FY20 Actual AsofMay Forecast Actual AsofMay Forecast Actual AsofMay Forecast Actual AsofMay Forecast General Industrial Smartphone
Slide 21: Business Forecast for the Year Ending March 31, 2021 (Consolidated)
Business Forecast for the Year Ending March 31, 2021 (Consolidated) | There is no change from the forecast announced in May, 2020. | (Yen in hundred millions) FY2019 (FY ended March 31, 2020) Mapeylel tego Ty-aVElcaises p07 8) First Half Over the For the Year Over the Actual Forecast Previous Actual
Slide 22: COVID-19 (1) Efforts and Impacts related to production and development
HS COVID-19 (1) Efforts and Impacts related to production and development H Situation of production activity (Production index S Jan @ Feb © Mar © Apr @ May @ Jun January’s results are as basic level, 100) 100 f. Japan Korea Malaysia China Indonesia @ Due to the movement control order, the factory o
Slide 23: COVID-19 (2) Efforts to continue safety business
HS COVID-19 (2) Efforts to continue safety business From February to May: To prevent the spread of COVID-19 in all Hirose Promoted working group, our business activity has been shifted to mainly working from home. from home We has been proceeding with cloud migration of our system. We could shifted
Slide 24: The 16th JPCA Award: FX26 Series
<News> The 16th JPCA Award Our “FX26 Series” received JPCA Incentive Award at the 16th JPCA Show Award. *JPCA: Japan Printed Circuit Association FX26 Series FX26 Series is a floating board to board connector having 140℃ heat resistance and high vibration resistance. This series was developed for i
Slide 25: Appendix
Appendix
Slide 26: Sales by Applications round number (quarterly basis)
Sales by Applications round number (quarterly basis) HS Yen in hundred millions) FY2019 FY2020 Composition ratio by 1Q 20 3a 4Q application General Industrial 86 93 91 103 Smartphone 68 85 75 72 Automotive/Mobility-related 56 60 61 54 Consumer / Mobile Device 45 52 51 45 Telecommunications 11 14 15