Hirose Electric Co., Ltd. · TSE:6806

Hirose Electric — H1 FY2019 Earnings Presentation

23 slides from Hirose Electric's earnings presentation, Nov 5, 2019

  1. Slide 1: Business Results for FY2019 First Half

    Hirose Electric Business Results for FY2019 First Half Business Results for FY2019 First Half Nov 5th, 2019 Hirose Electric Co., Ltd. 〔6806〕

  2. 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

  3. Slide 3: Business Situation of FY2019 First Half (Apr,2019 — Sep,2019)

    Business Situation of FY2019 First Half (Apr,2019 — Sep,2019) 7 X FY2019 First Half (Apr - Sep) ~ 7 (— Order 623.3 hundred million yen (YoY -7.8%) Sales 602.7 hundred million yen (YoY -2.7%) Operating profit 115.3 hundred million yen 2XProfit Ratio 19.1 % Ne (YoY -4.1%) SJ The result was decreased s

  4. Slide 4: FY2018 1Q — FY2019 2Q Orders and Sales (Consolidated Basis, Index Number)

    FY2018 1Q — FY2019 2Q Orders and Sales (Consolidated Basis, Index Number) 130 120 90 80 ——Order Sal Demand : recovery trend ales : Sales : bottoming out 111 109 105 108 ? 96 95 92 91 91 88 a | 2 | a | a | am | om FY2018 FY2019

  5. Slide 5: FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number)

    HS FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number) Good sales for mainly China Ls and Korea 120 120 119 98 80 84 76 —-Sales 60 | | | | | QQ at 10 FY2018 FY2019

  6. Slide 6: FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number)

    FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number) 120 Although poor sales of automobile —-Sales affects our sales, the index shows a sign of recovery. 105 NJ 101 102 102 95 92 80 | i | [ae to ta | « Lx FY2018 FY2019

  7. Slide 7: FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number)

    FY2018 1Q — FY2019 2Q Sales by Markets (Consolidated Basis, Index Number) 110 ( Sluggishness are still remaining, but bottoming out 78 70 | | i | aq FY2018 FY2019

  8. Slide 8: Business Results for FY2019 First Half [IFRS]

    Business Results for FY2019 First Half [IFRS] HS (Unit : hundred millions of yen) Sales 619.6 602.7 vecenseess sercne von Ls eeesseeeseeaseesseenseensees sore vesevasevaseeseeaseeasees SGA Ratio 25.0% 25.0% Operating Profit 120.2 115.3 (%) 19.4% 19.1% Earni bef arnings derore 130.4 120.9 income tax

  9. Slide 9: Major Changes over prior same period FY2019 First Half

    HS Major Changes over prior same period FY2019 First Half Sales Hi COGS Ratio i SGA Ratio @ Financial revenue / expense (Unit : hundred millions of yen) 17.0 hundred million yen Decreased (619.6 -> 602.7) Non consolidated Hirose : -21.8 Subsidiaries : +4.8 1.5 point Deteriorated (55.6% > 57.1%) Purc

  10. Slide 10: FY2019 First Half YoY Variation analysis

    FY2019 First Half YoY Variation analysis ( Unit : hundred millions of yen ) Operating Earnings before Sales （％） income tax （％） profit FY2018 First Half Actual 619.6 120.2 19.4% 130.4 21.0% Exchange rate ‐17.5 ‐4.7 ‐10.6 Depreciation cost increase ‐10.6 ‐10.6 Labor cost decrease 0.8 0.8 Increase in t

  11. Slide 11: Currency Effect for FY2019 First Half

    Currency Effect for FY2019 First Half Currency rate: USS 110.26 yen 108.63 yen Currency rate: € 129.85 yen 121.42 yen Currency rate: 100won 10.04 yen 9.22 yen ( Unit: Hundred millions of Yen ) Sales -17.5 Operating Profit -4.7 Earnings before income tax -10.6 11

  12. Slide 12: FY2018.1Q - FY2019.2Q Quarterly Sales and Profit History

    HS FY2018.1Q - FY2019.2Q Quarterly Sales and Profit History (hundred millions of yen) MmiSales M—Operating Profit -®-Operating Profit Ratio (0) (%) 400 20.9% 23.4% 0 9, 18.9% 19.3% 17.6% 20.0% 350 11.1% 10.0% 300 285 0.0% 250 200 150 100 50 (0) 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 12

  13. Slide 13: Changes in Consolidated Balance Sheet

    Changes in Consolidated Balance Sheet HS Unit: hundred millions of yen Cash and Cash Transfer from time deposit over equivalents 523.2 551.0 3month, etc > oe SAEEEEEEE GERAREERREEREEEE] VEEARTEEETERTTEEEELEREEREEEEEE TAREE Trade receivables and other claim 295.4 308.6 Pa Cee eee) Coe eee eee seneeee

  14. Slide 14: Changes in Consolidated Balance Sheet

    Changes in Consolidated Balance Sheet HS Unit: hundred millions of yen Shareholder’s Equity Account Mar 31, 2019 Sep 31, 2019 Remark - Payables and other debt 193.1 168.1 le 8 6) | ree roy Lease liabilities —_ 46.0 Application of IFRS16 = 7 - ee aa BRN (SANNA | 00 000000000000007 BERIRRENSSEE DERORS

  15. Slide 15: Sales Changes by Application (round number) [Consolidated Basis}

    Sales Changes by Application (round number) [Consolidated Basis} ] 20% DOWN | FY2018.1H m FY2019.1H 1 13% UP 2% UP General Smartphone/ jytomotive Digital Tablet Communication Computer Office Industrial | Mobile Phone Consumer /Notebook PC *1 Related Machinery Electronics Equipment *2 difference may

  16. Slide 16: Sales by Application (round number) (Consolidated Basis)

    Sales by Application (round number) (Consolidated Basis) *2 * . 2 Computer Related Office Machinery 1 Computer Related Equipment —_ Equipment *1 Communication \ Communication Tablet / Notebook PC Tablet / Office Machinery Notebook General Digital Industrial Consumer Consumer General Electronics 2 9

  17. 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 ") 44 — —i— = —i— —I— ~>- Overseas Sales Ratio -™-Overseas Production Ratio FY2015 FY2016 FY2017 FY2018 FY2019.2Q 17

  18. Slide 18: Capital Investment and Depreciation Change (Consolidated Basis)

    HS Capital Investment and Depreciation Change (Consolidated Basis) _ © Capital Investment mam Depreciation (hundred millions of Yen) i Capital Investment Ratio -@® Depreciation Ratio 180 | 175 - 40.0 I 160 - 140 132 140 / 125 | | - 30.0 120 - =| | I l 1 I ! I aan i 80 a | - 20.0 | 1 14.0 1 60 - We ;

  19. Slide 19: Number of Employees ( Financial Report Basis )

    Number of Employees ( Financial Report Basis ) (People) ® Overseas mw Domestic 5000 4836 ———. 4793 - 43 4000 eo 3000 - 80 2000 1000 —” Eerey ——_ BE +37 0 Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Sep, 2019 19

  20. Slide 20: Distribution of Shareholders

    Distribution of Shareholders Number of sfecnle) 3,182 ~~. 2,904 ——” 3,150 ——” 3,369 ~~| 3,234 100% 12.62 13.05 90% 80% 70% 60% 42.57 43.04 50% 40% 30% 20% 10% 0% Mar, 2016 Mar, 2017 12.92 41.30 Mar, 2018 Mar, 2019 5.32 5.00 Treasury Stocks @ Individual and Others 46.08 45.38 Foreign Corporation @ Ot

  21. Slide 21: FY2019 Attitude to each applications (Forecast Update)

    FY2019 Attitude to each applications (Forecast Update) A12% nd +7% FY2018 FY2019 FY2018 FY2019 (Forecast) (Forecast) The forecast was revised downward because of the Demand continues owing to high-performance delay for demand recovery. smartphone (5G) _ Newly adopted products are on +10% schedule. T

  22. Slide 22: Business Forecast for the Year Ending March 31,2020 (Consolidated) [IFRS]

    Business Forecast for the Year Ending March 31,2020 (Consolidated) [IFRS] We expect the business of General Industrial and Automotive will result under our initial expectation and we revised our forecast announced May, 2019 downward. ( Unit: Hundred millions of yen ) FY2018 (FY ended Mar31, 2019) Ac

  23. Slide 23: HIROSE ELECTRIC Co.,LTD.

    HIROSE ELECTRIC Co.,LTD.

Hirose Electric — H1 FY2019 Earnings Presentation on 6ix