Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — Q2 FY2022 Earnings Presentation
26 slides from Hirose Electric's earnings presentation, Nov 4, 2022
Slide 1: Business Results for the Second Quarter of FY2022
Hirose Electric Business Results for the Second Quarter of FY2022 Business Results for the Second Quarter of FY2022 November 4, 2022 Hirose Electric Co., Ltd. 〔6806〕 1
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 (FY2022.1H)
HS Summary of the business results (FY2022.1H From April, 2022 to September, 2022) @ In FY2022.2Q, the sales for general industrial, smartphone, automotive and mobility-related increased. As a result, sales increased by 20.0% and operating profit plus 37.3% compared with the previous same period, an
Slide 4: Changes in sales and operating profit (FY2021.1Q-FY2022.2Q)
HS Changes in sales and operating profit (FY2021.1Q-FY2022.2Q / Consolidated basis) Mag Sales Operating profit -O-Operating profit ratio —_ (Yen in hundred millions) 481.3 465.7 21.1Q 21.2Q 21.3Q 21.4Q 22.1Q 22.2Q
Slide 5: Business Results for FY2022.1H
Business Results for FY2022.1H Increase Increase FY2021.1H FY2022.1H / Decrease / Decrease Ratio (FY ended Sep 30, 2021) (FY ended Sep 30, 2022) (Yen in hundred millions) (YoY) (YoY) Sales 791.9 947.0 +155.1 19.6% COGS Ratio 54.7% 50.6% ‐4.1% SGA Ratio 20.3% 20.9% +0.6% Operating Profit 197.9 271.7
Slide 6: FY2022.1H Major Changes
FY2022.1H Major Changes HS Sales 155.1 hundred million yen Increased (791.9 -> 947.0) (Yen in hundred millions) +130.2 +24.9 Non consolidated Hirose: Subsidiaries: COGS Ratio 4.1pt Improved (54.7% > 50.6%) Variable Expense Ratio: 39.6% > 37.5% Depreciation Ratio: 8.4% >7.1% SGA Ratio 0.6pt Deteriora
Slide 7: FY2022.1H YoY Variation Analysis
FY2022.1H YoY Variation Analysis Operating Profit before Sales Profit (%) tax (%) (Yen in hundred millions) FY2021.1H Actual 791.9 197.9 25.0% 203.8 25.7% Exchange rate 96.4 50.0 62.3 Labor cost increase ‐28.1 ‐28.1 Depreciation cost decrease 0.4 0.4 Increase in freightage and packing expenses ‐12.0
Slide 8: Consolidated Balance Sheet
HS Consolidated Balance Sheet (Yen in hundred millions) Increase / Decrease Account Mar 31, 2022 Sep 30, 2022 Remark As well as recorded profit, Transfer from time deposit +106 Consumption tax refund +41 Repurchase of treasury shares A159 Dividend A99 Cash and cash equivalents 683.9 Trade and other
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet HS saniqer Ayinb3 s,zapjoyaseys Account Payables and other debt Lease liabilities Income Taxes Payable Others Total Mar 31, 2022 238.1 49.7 80.3 159.0 527.1 Sep 30,2022 240.3 56.7 87.9 180.0 564.9 (Yen in hundred millions) Increase / Remark Decrease Capital stock and Capit
Slide 10: Changes in Capital Investment and Depreciation
HS Changes in Capital Investment and Depreciation "Capital Investment MeDepreciation (Yen in hundred millions) -O-Capital Investment Ratio -O-Depreciation Ratio (™) 168 170 FY2019 FY2020 FY2021 FY2022 Forecast FY2022.1H (*Excluded: Investment in land, building, software) 10
Slide 11: Overseas production and sales ratio
Overseas production and sales ratio 76% 75% 77% 72% 74% 46% 48% 47% 48% 42% Overseas Sales Ratio Overseas Production Ratio FY2018 FY2019 FY2020 FY2021 FY2022.1H 11
Slide 12: Number of Employees (Financial Report Basis)
Number of Employees ( Financial Report Basis ) (Number of employees) ~ Overseas M® Domestic - +122 4836 ——_, 4737 > 4859 Mar, 2019 Mar, 2020 Mar, 2021 +211 +3 _——» 5070 ———» 5073 Mar, 2022 Sep, 2022 12
Slide 13: Distribution of Shareholders
Distribution of Shareholders 7.50% Number of Shareholders 3,369 3,215 (People) Treasury Stocks Individual and Others © Foreign Corporation ™ Other Corporation © Securities Firm © Financial Institution Mar, 2019 Mar, 2020 Mar, 2021 Mar, 2022 Sep, 2022 13
Slide 14: Sales by Industry Segment_General Industrial
HS Sales by Industry Segment_General Industrial (Yen in hundred millions) FY2022.1H / FY2021.1H Sales +31% @ FY2022.1H Composition ratio @ Changes in quarterly sales 179 168 147 152 131 134 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 @ In order to clear back order, the production has been continuing at a high l
Slide 15: Sales by Industry Segment_Smartphone
HS Sales by Industry Segment_Smartphone (Yen in hundred millions) FY2022.1H / FY2021.1H Sales +4% @ FY2022.1H Composition ratio @ Changes in quarterly sales 86 93 88 89 72 75 18% 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 ™@ As expected, the sales have been growing from 1Q to 2Q. 15
Slide 16: Sales by Industry Segment_Consumer/Mobile Equipment
HS Sales by Industry Segment_Consumer/Mobile Equipment (Yen in hundred millions) FY2022.1H / FY2021.1H 1Q 2Q 1H 2Q 1H Sales 75 85 +16% @ FY2022.1H Composition ratio @ Changes in quarterly sales 98 85 32 88 | | 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 @ The sales decreased compared to 1Q because of customer’s
Slide 17: Sales by Industry Segment_Automotive/Mobility-related
HS Sales by Industry Segment_Automotive/Mobility-related (Yen in hundred millions) FY2022.1H / FY2021.1H 1Q 2Q 1H 1H Sales 73 70 +22% @ FY2022.1H Composition ratio @ Changes in quarterly sales 86 88 | | | | 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 ™@ The sales mainly for ADAS and power train is steadily stro
Slide 18: Sales by Industry Segment_Telecommunications infrastructure equipment / OA equipment
HS Sales by Industry Segment_Telecommunications infrastructure equipment / OA equipment (Yen in hundred millions) FY2022.1H / FY2021.1H Telecommunications ° infrastructure equipment +13% OA equipment 6 6 12 6 6 12 +0% @ FY2022.1H Composition ratio @ Changes in quarterly sales Telecommunications OA e
Slide 19: Business Forecast for the Year Ending March 31, 2023 (Consolidated)
Business Forecast for the Year Ending March 31, 2023 (Consolidated) HS Currency movement and business for general industrial and automotive is expected to exceed initial estimates, we revised the forecast announced in May, 2022. (Yen in hundred millions) For the Year Over ee ieee FY2022 (FY ending M
Slide 20: Annual sales forecast by industry segment [Updated]
Annual sales forecast by industry segment [Updated] HS » -. > = Th FY2021 Forecast FY2022 FY2021 Forecast FY2022 FY2021 Forecast Actual As of May Forecast Actual As of May Forecast Actual As of May FY2022 -orecas! C General Sneirhene onsumer / Industrial Mobile equipment @ General Industrial +15% @
Slide 21: Strengthen the foundation
Strengthen the foundation Measures to reinforce the foundations to make a further leap forward based on the sales increase in FY2021 (progress in FY2022) We set FY2022 as “the first year of deepening” human capital development, . and we reform the system and encourage employee’s challenges. Invest i
Slide 22: Please refer to the integrated report issued in Nov, 2022.
Please refer to the integrated report issued in Nov, 2022. Strengthen the foundation Investment in human capital *English version will be published in Jan, 2023. We set FY2022 as “the first year of deepening” human capital development, and we reform the system and encourage employee’s challenges. @
Slide 23: Appendix
Appendix 23
Slide 24: Sales by Industry Segment round number (quarterly basis)
HS Sales by Industry Segment round number (quarterly basis) (Yen in hundred millions) FY2021 FY2022 FY2022.1H Composition ratio 1Q 2Q 3Q 4Q by applications General Industrial 131 134 147 152 Smartphone 72 86 93 88 Consumer / Mobile Device 75 85 82 71 Automotive / Mobility-related 73 70 72 77 Telecom
Slide 25: Changes in orders and sales by industry segment (quarterly basis)
HS Changes in orders and sales by industry segment (quarterly basis) General Industrial Smartphone Order a Sales 200 200 150 150 100 100 : : | | 0 0 21.1Q 21.2Q 213Q 21.4Q 22.1 22. [220] 21.1 21.2Q 213Q 21.4Q 22.10 22. [229] Automotive / Mobility-related Consumer / Mobile Device 200 200 150 150 100
Slide 26: HIROSE
HIROSE Hes ELECTRIC Co.,LTD.