Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — FY2019 Earnings Presentation
26 slides from Hirose Electric's earnings presentation, May 29, 2020
Slide 1: Business Results for FY2019
Hirose Electric Business Results for FY2019 Business Results for FY2019 May 29, 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 (Apr 2019 – Mar 2020)
Business Situation of FY2019 (Apr,2019 — Mar,2020) 7 X FY2019 (Apr - Mar) ~ 7 (— Order 1,253.6 hundred million yen (YoY +0.3%) Sales 1,217.6 hundred million yen (YoY -2.3%) Operating profit 203.6 hundred million yen 2XProfit Ratio 16.7 % Ne (YoY -12.1%) SJ The result was decreased sales and decrease
Slide 4: FY2018 1Q — FY2019 4Q Orders and Sales
FY2018 1Q — FY2019 4Q Orders and Sales (Consolidated Basis, Index Number) The sales dropped slightly 111 from 3Q 110 |} 105 108 90; 691 91 88 —Order -=-Sales 80 4 4 1 4 J i atats«t«a,ualmat«fa FY2018 FY2019 4
Slide 5: FY2018 1Q — FY2019 4Q Sales by Markets
FY2018 1Q — FY2019 4Q Sales by Markets (Consolidated Basis, Index Number) 120 80 60 120 123 109 104 98 84 Maintain high level due to bulk orders in 4Q compared to other years. 76 —-Sales 1 | | | a | ia) | a] a FY2018 FY2019
Slide 6: FY2018 1Q — FY2019 4Q Sales by Markets
FY2018 1Q — FY2019 4Q Sales by Markets (Consolidated Basis, Index Number) 120 —-Sales 105 105 102 101 102 02 —\ decline of sales volume of automobile 80 ! ! ! ! ! ! 12 (2a Qs a 2a 3a | aa FY2018 FY2019 92 The sales in 4Q decreased due toa
Slide 7: FY2018 1Q — FY2019 4Q Sales by Markets
FY2018 1Q — FY2019 4Q Sales by Markets (Consolidated Basis, Index Number) 110 Increased temporarily mainly due to bulk orders NO 95 92 90 36 84 —~—Sales 78 70 | i i i i it fm) mm) a) ma) apa FY2018 FY2019
Slide 8: Business Results for FY2019
Business Results for FY2019 HS (Yen in hundred millions) Sales 1,245.9 1,250.0 1,217.6 vecenseess sec sore nae ores veseusseeseveneveneeanee SGA Ratio 24.8% 24.5% 25.0% Operating Profit 231.6 220.0 203.6 (%) 18.6% 17.6% 16.7% Earnings before 246.7 230.0 212.1 income tax (%) 19.8% 18.4% 17.4% Net Pro
Slide 9: Major Changes over prior same period FY2019
HS Major Changes over prior same period FY2019 Sales Hi COGS Ratio i SGA Ratio @ Financial revenue / expense (Yen in hundred millions) 28.3 hundred million yen Decreased (1,245.9 > 1,217.6) Non consolidated Hirose : -27.8 Subsidiaries : -0.5 1.6 point Deteriorated (56.2% > 57.8%) Purchase Cost Ratio
Slide 10: FY2019 YoY Variation analysis
FY2019 YoY Variation analysis (Yen in hundred millions) Operating Earnings before Sales （％） income tax （％） profit FY2018 Actual 1,245.9 231.4 18.6% 246.5 19.8% Exchange rate ‐35.1 ‐14.8 ‐21.8 Depreciation cost increase ‐27.2 ‐27.2 Labor cost increase ‐2.2 ‐2.2 Increase in the product 6.9 4.0 4.0 Gai
Slide 11: Currency Effect for FY2019
Currency Effect for FY2019 Currency rate: USS Currency rate: 100won 110.91 yen 108.74 yen 128.41 yen 120.82 yen 9.98 yen 9.21 yen (Yen in hundred millions) Sales -35.1 Operating Profit -14.8 Earnings before income tax -21.8 11
Slide 12: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet HS (Yen in hundred millions) Cash and Cash Mainly payment for dividend and equivalents 523.2 505.6 -17.6 corporate tax > Tord other ee eee Ce ee oe eceiveblee vate eee eee eee receivables 295.4 304.4 9.0 Accounts receivable: -2.3, others (7, ns ee ee Inventories
Slide 13: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet HS (Yen in hundred millions) Account Mar 31, 2019 Mar 31, 2020 | Increase / Remark Accounts payable-facilities: -16.0 - Payables and other debt 193.1 167.5 -25.6 Payables: -7.3 FTW eee COCOeOR EEE EOEOen® CO Ce COL OE OCLC S OOS COC CCE Oooo) Ete ee een one ooo
Slide 14: Sales Changes by Application
Sales Changes by Application (round number) [Consolidated Basis} 14% DOWN FY2018 m FY2019 9% U 1% DOWN | / Li om —- General Smartphone/ Automotive Digital Tablet Communication Computer Office Industrial Mobile Phone Consumer _/Notebook P #1 Related Machinery Electronics Equipment *2 difference may o
Slide 15: Sales by Application
Sales by Application (round number) (Consolidated Basis) *2 * *1 Computer Related Equipment \ Office Machinery 3% Computer Related Office Machinery Equipment *1 Communication Tablet / Notebook WARY) Notebook PC General Digital Industrial Consumer Electroni Digital General jectronics 1% CoeSEMIEH Ind
Slide 16: Overseas Production and Sales Ratio
Overseas Production and Sales Ratio (%) 80 70 60 50 40 30 20 10 74 eB 71 71 72 _ —? o ——— 44 45 43 42 46 [== = —y— ee ~ Overseas Sales Ratio -@-Overseas Production Ratio FY2015 FY2016 FY2017 FY2018 FY2019 16
Slide 17: Capital Investment and Depreciation Change
Capital Investment and Depreciation Change (Consolidated Basis) ©! Capital Investment mam Depreciation —=-Capital Investment Ratio —e—Depreciation Ratio (Yen in hundred millions) (175) (%) 200 ~ r 40.0 186 } (140) 180 - 168 160 160 - 30.0 140 - 120 + 100 - 20.0 80 + 60 - 10.0 40 - 20 + 0 - 0.0 FY201
Slide 18: Number of Employees
Number of Employees ( Financial Report Basis ) (Number of ™ Overseas mg Domestic employees) 5000 4597 —— 4836 ——_. 4737 4000 3000 - ol 2000 1000 Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 18
Slide 19: Distribution of Shareholders
Distribution of Shareholders Number of arena 3,182 —_, 2,904 > 3,150 7 3,369 —_. | 3,215 100% 12.62 5.32 Behl Cc 13.05 12.92 90% 4.70 4Aa 4.520 (4.15— 4,09 80% Treasury Stocks ue 46.08 43.18 . 60% 42.57 43.04 41.30 @ Individual and Others ly C ” Foreign Corporation 50% @ Other Corporation 40% Securi
Slide 20: FY2020 Attitude by applications (Forecast)
FY2020 Attitude by applications (Forecast) General Industrial ee 7 - 7 FY2019 FY2020 (Forecast) prolonged sense of stagnation FY2019 FY2020 (Forecast) Demand for smartphone will decrease. The situation is expected to be tough. oo A20% FY2019 FY2020 (Forecast) Affected by worldwide sales sluggish in
Slide 21: Business Forecast for the Year Ending March 31, 2021
HS Business Forecast for the Year Ending March 31,2021 (Consolidated) [IFRS] (Yen in hundred millions) FY2019 (FY ended Mar31, 2020) FY2020 (FY ending Mar31, 2021) pisos Rares Over the Previous Over the Previous Actual Forecast Actual Amount Actual Amount First Half For the Year First Half For the Y
Slide 22: Our measures to prevent the spread of COVID-19 and production status
HS Our measures to prevent the spread of COVID-19 and production status We are thoroughly implementing the preventive measures including temperature measurement every morning, wearing a mask, using alcohol based hand sanitizer, hand washing and gargling, and ensure that all employees have a common v
Slide 23: Koriyama Hirose Electric acquired land
Koriyama Hirose Electric acquired land Koriyama Hirose Electric made a contract with Koriyama‐Shi, Fukushima to acquire the land in “Koriyama Seibu No.1 Industrial Park” on April 30, 2020. Taking the production results and continuous business development of Koriyama factory into consideration, we ha
Slide 24: Changes in Personnel (On and After June 26, 2020)
Changes in Personnel (On and After June 26, 2020) HS President and Representative Director Kazunori Ishii (Reappointed) Mitsuo Nakamura (Reappointed) Hiroshi Fukumoto (Reappointed) Director, Group President, Sales & Marketing Group Hiroshi Satoh and Division General Manager, International Business D
Slide 25: Direction of mid-term business development and capital policy
The direction of mid‐term business development and mid‐term capital policy under the influence of COVID‐19 1. The direction of mid‐term business development It is quiet difficult to predict the medium term impact on our business by COVID‐19 at the moment. (1)Employees (2)Customers (3)Partners (4)Com
Slide 26: Hirose Electric Co., Ltd.
HIROSE ELECTRIC Co.,LTD.