Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — FY2021 Earnings Presentation
23 slides from Hirose Electric's earnings presentation, May 9, 2022
Slide 1: Business Results for FY2021
Hirose Electric Business Results for FY2021 Business Results for FY2021 May 9, 2022 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 (FY2021)
Summary of the business results (FY2021 From April, 2021 to March, 2022) HS @ In FY2021, the sales for general industrial, automotive, consumer and mobile equipment increased. As a result, orders, sales and operating profit of FY2021 was record high. Sales increased by 22.6% compared with the previo
Slide 4: Changes in sales and operating profit
HS Changes in sales and operating profit (FY2020.1Q-FY2021.4Q / Consolidated basis) Mam Sales Operating profit -O-Operating profit ratio —_ (Yen in hundred millions) 428.2 407.5 416.7 384.4 274.0 , 23.3% 20.1Q 20.2Q 20.3Q 20.4Q 21.1Q 21.2Q 21.3Q 21.4Q
Slide 5: Business Results for FY2021
Business Results for FY2021 Increase Increase FY2020 FY2021 / Decrease / Decrease Ratio (FY ended Mar 31, 2021) (FY ended Mar 31, 2022) (Yen in hundred millions) (YoY) (YoY) Sales 1,335.4 1,636.7 +301.3 22.6% COGS Ratio 57.6% 54.2% ‐3.4% SGA Ratio 22.6% 20.9% ‐1.7% Operating Profit 278.8 407.7 +128.
Slide 6: FY2021 Major Changes
FY2021 Major Changes HS (Yen in hundred millions) Sales 301.3 hundred million yen INCreased Non consolidated Hirose: +236.8 (1,335.4 > 1,636.7) Subsidiaries: +64.6 COGS Ratio Depreciation Ratio: 9.9% > 8.0% 3.4pt Improved (57.6% -> 54.2%) Variable Expense Ratio: 40.5% —> 39.7% Labor-cost Ratio: 6.8%
Slide 7: FY2021 YoY Variation Analysis
FY2021 YoY Variation Analysis Operating Profit before (Yen in hundred millions) Sales Profit (%) tax (%) FY2020 Actual 1,335.4 278.8 20.9% 283.3 21.2% Exchange rate 64.9 31.2 45.2 Labor cost increase ‐39.6 ‐39.6 Depreciation cost decrease 4.2 4.2 Increase in freightage and packing expenses ‐13.3 ‐13
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet HS Account Mar 31, 2021 : Cash and cash 578.4 " equivalents : Trade and other : receivables 366.2 = Inventories 169.2 >: ws ® : Other financial ors Hi assets 1,801.9 : Property, plant : and equipment 611.8 : Right-of-use asset 43.6 = Others 134.0 %.. Total Assets 3,705.0 T
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet HS Account a . Payables and other debt Lease liabilities Income Taxes Payable Others Total samiqer Mar 31, 2021 195.1 44.0 65.3 139.7 444.1 Mar 31,2022 238.1 49.7 80.3 159.0 527.1 Increase / Decrease (Yen in hundred millions) Remark Increase in the production and secure ra
Slide 10: Changes in Capital Investment and Depreciation
HS Changes in Capital Investment and Depreciation ' Capital Investment M™iDepreciation _(Yenin hundred millions) -O-Capital Investment Ratio -O-Depreciation Ratio () 186 168 170 FY2018 FY2019 FY2020 FY2021 FY2022 Forecast (*Excluded: Investment in land, building, software) 10
Slide 11: Overseas production and sales ratio
Overseas production and sales ratio 76% 9 71% 712% 74% —o— pe few -O— 9 48% 47% 43% 42% 46% —O- -O o- oT -O- Overseas Sales Ratio ~O-Overseas Production Ratio FY2017 FY2018 FY2019 FY2020 FY2021 11
Slide 12: Number of Employees (Financial Report Basis)
Number of Employees ( Financial Report Basis ) (Number of employees) || Overseas i Domestic +239 -99 Mar, 2018 Mar, 2019 Mar, 2020 +122 4836 ——. 4737 > 4859 Mar, 2021 +211 _» 5070 Mar, 2022 12
Slide 13: Distribution of Shareholders
Distribution of Shareholders 12.92% Treasury Stocks Individual and Others ™ Foreign Corporation ™ Other Corporation © Securities Firm ™ Financial Institution Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021 Mar, 2022 13
Slide 14: Sales by Application_General Industrial
a Sales by Application_General Industrial (Yen in hundred millions) 198 97 109 404 4265 147 152 # 564 Sales +40% @ FY2021 Composition ratio @ Changes in quarterly sales 147-152 131 134 109 103 95 97 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 @ The demand for FA related has been increasing and inventory h
Slide 15: Sales by Application_Smartphone
a Sales by Application_Smartphone (Yen in hundred millions) 146 100 71 317 158 93 88 339 Sales +7% @ FY2021 Composition ratio @ Changes in quarterly sales 100 93 89 86 88 71 72 57 21% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 M™@ The sales are remaining firm because of the increase in demand for high en
Slide 16: Sales by Application_Automotive/Mobility-related
a Sales by Application_Automotive/Mobility-related (Yen in hundred millions) 91 75 72 238 143 72 at. 292 +23% Sales @ FY2021 Composition ratio @ Changes in quarterly sales 72 73 yw 72 77 52 39 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 H While the automotive business has been influenced by the shortage o
Slide 17: Sales by Application_Consumer/Mobile Equipment
HS (Yen in hundred millions) FY2020 FY2021 FY2021 / \ yak \ A Sales by Application_Consumer/Mobile Equipment |, H 3Q 4Q FY20 H 3Q Sales 123 72 68 263 160 82 i @ FY2021 Composition ratio @ Changes in quarterly sales 85 82 75 72 72 68 71 51 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2020 FY2021 @ Even though the busin
Slide 18: Sales by Application_Telecommunications infrastructure equipment / OA equipment
Fr: Sales by Application_Telecommunications infrastructure equipment / OA equipment (Yen in hundred millions) FY2020 FY2021 | vor | FY2021 / FY20 FY21 FY2020 Telecommunications infrastructure +19% equipment OA equipment 10 5 6 21 12 6 5 23 +10% @ FY2021 Composition ratio @ Changes in quarterly sales
Slide 19: Annual sales forecast by applications
HS Annual sales forecast by applications (round number) (Yen in hundred millions) as oo lu iat FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 Actual Forecast Actual Forecast Actual Forecast Actual Forecast Aut ti General Smartphone . wie ive / Consumer / Taisen Mobility related Mobile equip
Slide 20: Business Forecast for the Year Ending March 31, 2023
HS Business Forecast for the Year Ending March 31, 2023 (Consolidated) (Yen in hundred millions) First Half Over the For the Year Over the FY2021 (FY ended March 31, FY2022 (FY ending March 31, . P 2022) Actual 2023) Forecast Previous Actual Previous Aetual First Half For the Year First Half For the
Slide 21: Updated capital policy for medium term
HS Updated capital policy for medium term We will enhance capital efficiency and carry out active investment [Target from FY2022 to FY2025) for growth and continuous shareholder return as well as maintaining high profitability management by realizing sustainable growth for ROE: 10% medium to long te
Slide 22: Appendix
Appendix
Slide 23: Sales by Applications round number (quarterly basis)
HS Sales by Applications round number (quarterly basis) (Yen in hundred millions) P20 = pe 12 22 3Q2 4Q + # 1Q~« 2a [ee General Industrial 103 95 97 109 131 134 Smartphone 57 89 100 71 #42972 ~« 86 Automotive / 39 52 75 72 73 70 Mobility-related Consumer / 51 72 #72 #268 #75 ~~ 85 Mobile Device Tele