Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — Q3 FY2019 Earnings Presentation
20 slides from Hirose Electric's earnings presentation, Feb 6, 2020
Slide 1: Business Results for FY2019 3Q
Hirose Electric Business Results for FY2019 Third Quarter Business Results for FY2019 3Q Feb 6th, 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: Business Situation of FY2019 3Q (Apr 2019 - Dec 2019)
Business Situation of FY2019 3Q (Apr,2019 — Dec,2019) HS (— » (~ order 934.3 hundred million yen >» FY2019 ( Year-on-Year -4.1%) Third t Sales 915.3 hundred million yen Le ROTTS (Year-on-Year -4.6%) (Apr - Dec) Operating profit 162.1 hundred million yen 2XProfit Ratio 17.7 % Ne yy Ne (Year-on-year -
Slide 4: FY2018 1Q - FY2019 3Q Orders and Sales (Consolidated Basis, Index Number)
HS FY2018 1Q — FY2019 3Q Orders and Sales (Consolidated Basis, Index Number) -©Order -™ Sales 120 | Both of order and sales have been leveling off 111 109 110 |} 105 \\ 108 103 ‘enone — 96 99 99 95 90 |} 91 91 88 80 | | | | | 12 | 2a 1a qf 3a FY2018 FY2019
Slide 5: FY2018 1Q - FY2019 3Q Sales by Markets (Consolidated Basis, Index Number)
HS FY2018 1Q — FY2019 3Q Sales by Markets (Consolidated Basis, Index Number) 123 -® Sales 120 119 120 /\ it ~ /| 80 84 Maintain high level 76 60 | | | | | FY2018 FY2019
Slide 6: FY2018 1Q - FY2019 3Q Sales by Markets (Consolidated Basis, Index Number)
HS FY2018 1Q — FY2019 3Q Sales by Markets (Consolidated Basis, Index Number) 120 Automotive Weak recovery because of the decrease in automobile unit sales NI 105 105 102 102 101 95 92 -®Sales 80 | | | | | | mm | a) a) a) om | FY2018 FY2019
Slide 7: FY2018 1Q - FY2019 3Q Sales by Markets (Consolidated Basis, Index Number)
HS FY2018 1Q — FY2019 3Q Sales by Markets (Consolidated Basis, Index Number) 110 f Sales have bottomed out, but still flat. \ 92 90 86 84 -®Sales 78 70 | | | | | | a |) sa | a | | 2 [x0 FY2018 FY2019
Slide 8: Business Results for FY2019 Third Quarter
HS Business Results for FY2019 Third Quarter (Unit : hundred millions of yen) Sales 959.9 915.3 seseeseseees ae Ee ON =e ee a vier = cs See Operating Profit 199.9 162.1 eseeveseseaeees orn a seseecesesescesesescsucsesensdpesescesessseeeseseavenseees Earnings before income tax 212.4 169.2 22.1% 18.5%
Slide 9: Major Changes over prior same period FY2019 Third Quarter
HS Major Changes over prior same period FY2019 Third Quarter (Unit : hundred millions of yen) 44.6 hundred million yen Decreased (959.9 > 915.3) Sales Non consolidated Hirose : -43.9 Subsidiaries : -0.7 i COGS Ratio 2.1 point Deteriorated (55.1% > 57.2%) Purchase Cost Ratio : 38.5% 439.1% Depreciati
Slide 10: FY2019 Third Quarter YoY Variation analysis
FY2019 Third Quarter YoY Variation analysis ( Unit : hundred millions of yen ) Operating Earnings before Sales （％） income tax （％） profit FY2018 3Q Actual 959.9 199.9 20.8% 212.4 22.1% Exchange rate ‐29.3 ‐12.1 ‐18.6 Depreciation cost increase ‐16.2 ‐16.2 Labor cost increase ‐1.0 ‐1.0 Decrease in the
Slide 11: Currency Effect for FY2019 Third Quarter
Currency Effect for FY2019 Third Quarter Currency rate: USS 111.14 yen 108.67 yen Currency rate: € 129.49 yen 121.05 yen Currency rate: 100won 10.04 yen 9.23 yen ( Unit: Hundred millions of Yen ) Sales -29.3 Operating Profit -12.1 Earnings before income tax -18.6 11
Slide 12: FY2018.1Q - FY2019.3Q Quarterly Sales and Profit History
FY2018.1Q - FY2019.3Q Quarterly Sales and Profit History (hundred millions of yen) 400 20.9% 17.6% 23.4% 18.9% 19.3% 15.0% 350 334.9 340.2 320.3 312.6 300 284.7 286.1 282.3 250 200 150 100 vo. | 727 50.1 534 | a6. 50 31.7 0 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 19.2Q 19.3Q 12
Slide 13: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet HS Unit: hundred millions of yen Payment for dividend, purchase of investment in securities and others. Trade receivables +18.7 Acquisition of second building of Kikuna office Adopted IFRS16 and lease transaction has been appropriated as assets Cash and Cash equ
Slide 14: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet HS Increase / Unit: hundred millions of yen Account Mar 31, 2019 Dec 31, 2019 Decrease Remark Accounts payable-property facilities 9.8 Payables and other debt 193.1 177.2 -15.9 Accounts payable A7.6 opt tte ete e teen teen eeben neta ee eeeeeeeaeeaneeaneesanessa
Slide 15: Sales Changes by Application (round number) [Consolidated Basis]
Sales Changes by Application (round number) [Consolidated Basis} 19% > FY2018.3Q @ FY2019.3Q 5% UP 1% UP _ | | / i i is General Smartphone/ jytomotive Digital Tablet Communication Computer Office Industrial | Mobile Phone Consumer /Notebook PC *1 Related Machinery Electronics Equipment *2 difference
Slide 16: Sales by Application (round number) (Consolidated Basis)
Sales by Application (round number) (Consolidated Basis) *2 *2 *1 Computer Related Equipment *1 Office Machinery Tablet / Tablet / Notebook Notebook PC Computer Related Office Machinery Equipment Communication General Digital Industrial General Consumer . Electronics Consumer Industrial 7 1 1% FY201
Slide 17: Overseas Production and Sales Ratio
Overseas Production and Sales Ratio (%) 80 70 60 50 40 30 20 10 74 73 71 71 72 ‘ = ~~» o— === 44 45 43 46 — = 42 —a —— ——— ~*-Overseas Sales Ratio -™-Overseas Production Ratio T T FY2015 FY2016 FY2017 FY2018 FY2019.3Q 17
Slide 18: Capital Investment and Depreciation Change (Consolidated Basis)
Capital Investment and Depreciation Change (Consolidated Basis) - |! Capital Investment Ml Depreciation (hundred millions of Yen) -&- Capital Investment Ratio -@- Depreciation Ratio (%) 200 ; 186 , 40.0 180 - 175 I 160 - tia ' 140 - 30.0 140 - L mii I 120 - ' I 100 - - 20.0 14.0 80 - ' | 1 60 -~ I B
Slide 19: Business Forecast for the Year Ending March 31, 2020 (Consolidated)
Business Forecast for the Year Ending March 31,2020 (Consolidated) There is no change from previous figures (Nov, 2019) 3Q cumulative total (Unit: FY2018 (FY ended Mar31, 2019) FY2019 (FY ended Mar31, 2020) Crennaprenets Granites Hundred millions of yen ) Actual Actual Amount Actual Amount For the Y
Slide 20: News: CES2020 Innovation Awards 'Double prize'
〔News〕 CES2020 Innovation Awards ʻDouble prizeʼ In this fiscal year, Hirose’s connectors have selected as Innovation Award Honoree’s for CES 2020 in two categories. CES︓The world’s largest trade fair in consumer electronics sector held annually in Las Vegas, USA every January. “CES Innovation Awards