Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — Q2 FY2020 Earnings Presentation
24 slides from Hirose Electric's earnings presentation, Nov 4, 2020
Slide 1: Business Results for the Second Quarter of FY2020
Hirose Electric Business Results for the Second Quarter of FY2020 Business Results for the Second Quarter of FY2020 November 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 (FY2020.1H April to September 2020)
HS Summary of the business results (FY2020.1H From April, 2020 to September, 2020) @ Inthe second quarter of FY2020, the sales for smartphone and consumer market grew and the sales for automotive recovered. As a result, the sales of 1H increased by 1.3%, operating profit increased by 11.8% compared
Slide 4: Changes in sales and operating profit (FY2019.1Q-FY2020.2Q)
HS Changes in sales and operating profit (FY2019.1Q-FY2020.2Q / Consolidated basis) mig Sales Operating profit -O-Operating profit ratio (Yen in hundred millions) 336.4 19.1Q 19.2Q 19.3Q 19.4Q 20.1Q 20.2Q
Slide 5: Business Results for FY2020.2Q
Business Results for FY2020.2Q Increase Increase FY2019.1H FY2020.1H / Decrease / Decrease Ratio (Yen in hundred millions) (FY ended Sep 30, 2019) (FY ended Sep 30, 2020) (YoY) (YoY) Sales 602.7 610.4 +7.7 1.3% COGS Ratio 57.1% 57.6% +0.5% SGA Ratio 25.0% 23.8% ‐1.3% Operating Profit 115.3 128.9 +13
Slide 6: FY2020 2Q Major Changes
FY2020 2Q Major Changes HS Sales 7.7 hundred million yen Increased (602.7 > 610.4) (Yen in hundred millions) Non consolidated Hirose: +14.5 Subsidiaries: -6.8 COGS Ratio 0.5pt Deteriorated (57.1% > 57.6%) Depreciation Ratio: 10.2% > 10.8% Labor-cost Ratio: 6.8% > 7.0% SGA Ratio 1.2pt Improved (25.0%
Slide 7: FY2020.2Q YoY Variation Analysis
FY2020.2Q YoY Variation Analysis (Yen in hundred millions) Operating Earnings before Sales Profit (%) income tax (%) FY2019.1H Actual 602.7 115.3 19.1% 120.9 20.1% Exchange rate ‐7.0 ‐5.2 ‐9.0 Depreciation cost increase ‐5.9 ‐5.9 Labor cost increase ‐1.2 ‐1.2 Increase in freightage and packing expen
Slide 8: Changes in operating profit excluding temporary factors
HS Changes in operating profit excluding temporary factors (FY2019.1Q-FY2020.2Q) Operating profit -O-Operating profit ratio —_(Yen in hundred millions) 70.0 62.0 56.8 45.0 20.8% ' 16.19 15.9% 14.8% i 19.1Q 19.2Q 19.3Q 19.4Q 20.1Q 20.2Q (Yen in hundred millions) Operating Profit (Financial Settlement
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet HS sjassy (Yen in hundred millions) Increase / Account Mar 31, 2020 Sep 30, 2020 D Remark ecrease **" Cash and cash Maturity of fixed deposit, equivalents 505.6 528.9 others Trade and other Increase in accounts receivable receivables 304.4 335.5 +2.77 billion yen, others I
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet HS Account Payables and other debt : Lease liabilities Income Taxes Payable saniqer Others : Total Mar 31, 2020 167.5 44.9 29.6 123.0 365.0 Sep 30, 2020 (Yen in hundred millions) Remark Capital stock and wn: i Y: Capital surplus 9: pal . we : Retained Earnings Qo: ae @: Tr
Slide 11: Changes in Capital Investment and Depreciation
HS Changes in Capital Investment and Depreciation ' Capital Investment M™iDepreciation (Yen in hundred millions) -O-Capital Investment Ratio -O-Depreciation Ratio (%) 186 168 FY2017 FY2018 FY2019 FY2020 Forecast FY20201H (*Excluded: Investment in land, building, software) 11
Slide 12: Overseas production and sales ratio
Overseas production and sales ratio 71% 71% 712% ms ° o- —o— _ 46% 40% 43% 42% : —o— ~O- Overseas Sales Ratio -O-Overseas Production Ratio T T FY2016 FY2017 FY2018 FY2019 FY2020.1H 12
Slide 13: Number of Employees (Financial Report Basis)
Number of Employees ( Financial Report Basis ) (Number of employees) | Overseas Domestic +77 4737 —__ 4814 Mar, 2017 Mar, 2018 Mar, 2019 -101 Mar, 2020 +57 +20 Sep, 2020 13
Slide 14: Distribution of Shareholders
Distribution of Shareholders Number of Shareholders (People) 43.04% Mar, 2017 5.32% 5.51% 5.00% 12.92% 4.70% 4.44% 4.39% 4.09% Treasury Stocks a 43.18% 41.10% Individual and Others 41.30% Foreign Corporation ™ Other Corporation ® Securities Firm 1.00% @ Financial Institution 27.18% Mar, 2018 Mar, 20
Slide 15: Sales by Application_General Industrial
HS Sales by Application_General Industrial (Yen in hundred millions) FY2020.1H / 103 95 198 1Q 2Q 1H Sales 86 93 179 +11% @ FY2020.1H Composition ratio @ Changes in quarterly sales 103-103 93 86 94 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q 2020.2Q ™@ There is some action in the market, but overall bus
Slide 16: Sales by Application_Smartphone
HS Sales by Application_Smartphone (Yen in hundred millions) 2020.1H/ Sales 68 85 153 57 89 146 -5% @ FY2020.1H Composition ratio @ Changes in quarterly sales 85 89 75 68 72 57 25% 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q 2020.2Q Hf Initially we expected the sales would increase because of seasonal r
Slide 17: Sales by Application_Automotive/Mobility-related
HS Sales by Application_Automotive/Mobility-related (Yen in hundred millions) 2020.1H / Sales 56 60 116 39 52 91 -22% 52 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q 2020.2Q @ FY2020.1H Composition ratio @ Changes in quarterly sales 60 61 56 54 @ The sales for automotive bottomed out in FY2020.1Q and is
Slide 18: Sales by Application_Consumer/Mobile Equipment
HS Sales by Application_Consumer/Mobile Equipment (Yen in hundred millions) 2020.1H / ‘ le Sales 45 52 97 +27% @ FY2020.1H Composition ratio @ Changes in quarterly sales 72 52 51 51 45 45 2019.1Q 2019.2Q 2019.3Q 2019.4Q 2020.1Q 2020.2Q ™@ Remote working became more popular as a preventive measure of
Slide 19: Sales by Application_Telecommunications infrastructure equipment / OA equipment
Sales by Application_Telecommunications infrastructure equipment / OA equipment (Yen in hundred millions) FY2019 FY2020 2020.1H / 11 13 24 1Q 2Q 1H Telecommunications 11 14 25 [) infrastructure 4% OA equipment 6 7 13 5 5 10 -23% @ FY2020.1H Composition ratio @ Changes in quarterly sales Telecommunic
Slide 20: Annual sales forecast by applications [Updated]
HS Annual sales forecast by applications [Updated] (Yen in hundred millions) 375 260 189 213 FY19 = Forecast FY20 FY19 = Forecast + FY20 FY19 Forecast Fy20 FY19 Forecast FY20 Actual AsofAug Forecast Actual AsofAug Forecast Actual AsofAug Forecast Actual AsofAug Forecast General Industrial Smartphone
Slide 21: Summary of the revision of business forecast for the year ending March, 2021
HS Summary of the revision of business forecast for the year ending March, 2021 Following the Annual sales forecast [Updated], we revise up our full year business forecast (Yen in hundred millions) ® Forecast @ Updated Forecast —— damount as of May, 2020 as of November, 2020 Sales 1,150 1,200 +50 Op
Slide 22: Business Forecast for the Year Ending March 31, 2021 (Consolidated)
HS Business Forecast for the Year Ending March 31, 2021 (Consolidated) The business for smartphone, automotive and consumer is expected to exceed our initial estimates, and revise the forecast published on May, 2020. First Half Over the For the Year Over the FY2019 (FY ended March 31, FY2020 (FY end
Slide 23: Appendix
Appendix
Slide 24: Sales by Applications round number (quarterly basis)
HS Sales by Applications round number (quarterly basis) (Yen in hundred millions) FY2019 FY2020 FY2020 1H Composition ratio 1Q 2Q 3Q 4Q by 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 Telecommunicati