Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — FY2017 Earnings Presentation
24 slides from Hirose Electric's earnings presentation, May 9, 2018
Slide 1: For FY2017 Business Results
For FY2017 Busines Results ‐ CONNECTING THE FUTURE ‐ May 9th , 2018 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 FY2017 (Apr 2017 – Mar 2018)
Business Situation of FY2017 (Apr,2017 – Mar,2018) Order 1,267.5 hundred million yen （ YoY +8.7%） FY2017 Sales 1,252.8 hundred million yen Results settled on （YoY +8.8%、 Over estimate ‐0.6%） (Apr – Mar) Recurring Profit 292.3 hundred million yen ※Profit Ratio 23.3％ （YoY ‐1.9%、 Over estimate ‐3.5%） S
Slide 4: FY2016 1Q – FY2017 4Q Orders and Sales
FY2016 1Q – FY2017 4Q Orders and Sales (Consolidated Basis, Index Number) Total Order 130 Sales 120 120 114 111 110 113 106 104 103 103 107 Average of 99 102 100 FY2016 = 100 100 96 97 98 The sales in Feb had stagnated, 96 90 but the sales in Mar resulted high level (Index Number：116) 80 1Q 2Q 3Q 4Q
Slide 5: Sales by Markets: Smartphone / Mobile
FY2016 1Q – FY2017 4Q Sales by Markets (Consolidated Basis, Index Number) Smartphone / Mobile 119 116 120 115 Average of FY2016100 =100 96 96 93 92 87 80 Sharply decreased because of the inventory adjustment for Chinese market. Sales 60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2016 FY2017 5
Slide 6: Sales by Markets: Automotive
FY2016 1Q – FY2017 4Q Sales by Markets (Consolidated Basis, Index Number) Automotive 120 Steadily growing up 110 106 103 109 Average of FY2016100 = 100 98 99 98 97 Sales 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 FY2016 6
Slide 7: Sales by Markets: FA Controlling Device and Others
FY2016 1Q – FY2017 4Q Sales by Markets (Consolidated Basis, Index Number) Associated Electric Equipment, FA Controlling Device, and Others 134 126 123 123 120 Keep high level due to good trend 106 in FA related equipment Average of 99 101 2016 =100 100 95 Sales 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY20
Slide 8: Business Results for FY2017
Business Results for FY2017 Increase / Increase / FY2016 FY2017 FY2017 ( Unit：Hundred millions of yen ) Decrease Decrease Ratio (FY ended Mar31, 2017) Estimate (FY ended Mar31, 2018) (YoY) (YoY) Sales 1,151.0 1,260.0 1,252.8 101.8 8.8% COGS Ratio 53.1% ― 53.9% +0.8% SGA Ratio 22.2% ― 23.2% +1.0% Ope
Slide 9: Major Changes over prior same period FY2017
Major Changes over prior same period FY2017 Unit：hundred millions of Yen ■ Sales 101.8 hundred million yen increase Hirose ： + 100.4 Subsidiaries ： + 1.4 ■ COGS Ratio 0.8 point decrease Purchase Cost Ratio ： 38.5％ → 38.0％ Depreciation Ratio ： 5.0％ → 6.1％ Labor Cost Ratio ： 5.5% → 5.8% ■ SGA Ratio 1.
Slide 10: Currency Effect for FY2017
Currency Effect for FY2017 FY2016 FY2017 Currency rate：US$ 108.38 Yen 110.85 Yen Currency rate：€ 118.79 Yen 129.70 Yen Currency rate：100won 9.45 Yen 10.0 Yen Unit：hundred millions of Yen YoY Currency effect amount Sales +39.4 Operating Profit +16.0 Recurring Profit +8.9 10
Slide 11: FY2017 Variation analysis
FY2017 Variation analysis 【FY2017 YoY Variation analysis】 ( Unit：Hundred millions of yen ) Sales Operating profit Operating profit ratio Recurring profit Recurring profit ratio FY2016 Actual 1,151.0 284,.8 24.7% 298.0 25.9% Currency effect 39.4 16.0 8.9 Depreciation cost increase ‐26.2 ‐26.2 Labor c
Slide 12: Quarterly Sales and Profits
Quarterly Sales and Profits Over First Half Sales Recurring Profit Recurring Profit Ratio ・depreciation cost：+7.2 hundred million yen (Hundred millions of Yen) ・exchange loss：+6.0 hundred million yen（%） → recurring profit decreased 900 28.4% 27.2% 27.3% 30.0% 26.7% 25.4% 25.1% 800 23.3% 21.3% 700 20
Slide 13: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2017 Mar 31, 2018 Decrease Remark Cash and Cash in Increase due to government bond Bank 1,852.5 1,865.7 13.2 redemption, etc A Trade Receivables 284.9 300.0 15.1 Increase in Sales of Mar, 2018 S Decrease du
Slide 14: Changes in Consolidated Balance Sheet: Shareholder's Equity
Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2017 Mar 31, 2018 Decrease Remark Notes Payable and Account Payable 113.9 131.7 17.8 Liabilities Income Taxes Correction estimated amount by Payable 37.6 49.5 11.9 investigation of transfer pricing taxation
Slide 15: Sales Changes by Application
Sales Changes by Application (round number) 【Consolidated Basis】 Demand for mainly FA 450 related increased 27％ UP FY2016 400 Demand is steadily growing up due to FY2017 the high functionality 350 4％ UP 300 Steadily growing up 250 5％ UP 200 Because of the increase in VR / AI related equipment 150 10
Slide 16: Sales by Application
Sales by Application (round number) (Consolidated Basis) Others FA Controlling Others FA Controlling Equipment 28％ Equipment 23％ General 25％ General 27％ Industrial Industrial 31％ 36％ FY2017 3％ FY2016 5％ 4％ 3％ Associated 3％ 4％ 18％ Electric Equipment 2％ 19％ Associated 2％ 3％ 6％ Electric 2％ Cable 6％ Equ
Slide 17: Overseas Production and Sales Ratio
Overseas Production and Sales Ratio （％） 80 72 72 73 71 71 70 60 48 50 45 44 45 43 40 30 20 Overseas Sales Ratio 10 Overseas Production Ratio 0 FY2013 FY2014 FY2015 FY2016 FY2017 17
Slide 18: Capital Investment and Depreciation Change
Capital Investment and Depreciation Change (Consolidated Basis) (hundred millions of Yen) （％） Capital Investment Depreciation 180 40.0 Capital Investment Ratio Depreciation Ratio 159 160 160 140 132 30.0 118 118 115 120 110 111 103 100 20.0 80 77 60 11.5 12.7 12.3 9.4 9.8 10.0 40 8.7 9.2 8.2 8.8 20
Slide 19: Number of Employees
Number of Employees ( Financial Report Basis ) （Employees） Overseas Domestic 5000 + 278 4597 + 129 4319 4044 4190 4000 3966 3000 + 212 + 85 3425 3128 3213 2972 3035 2000 + 66 1000 + 44 994 1009 1062 1106 1172 0 Mar, 2014 Mar, 2015 Mar, 2016 Mar, 2017 Mar, 2018 19
Slide 20: Distribution of Shareholders
Distribution of Shareholders Number of Shareholders （People） 3,464 3,185 3,182 2,904 3,150 100% 14.77 15.26 12.62 13.05 12.92 90% 4.61 4.52 4.15 4.09 80% 4.36 Treasury Stocks 70% Individual and Others 60% 40.55 42.57 43.04 41.30 41.15 Foreign Corporation 50% Other Corporation Securities Firm 40% 13.
Slide 21: FY2018 Attitude to each applications (Forecast)
FY2018 Attitude to each applications (Forecast) Expect the sales growth in Automotive and steadily growing in General Industrial General Industrial Smartphone / Mobile 450 5%up 450 1%up 0 0 FY2017 H29 FY2018 H30(予想) H29 FY2018 H30(予想) FY2017 (Forecast) (Forecast) The strong demand for various genera
Slide 22: Business Forecast for the Year Ending March 31, 2019 (Recasting IFRS)
Business Forecast for the Year Ending March 31,2019 (Consolidated)【Recasting IFRS】 【JGAAP】 【IFRS】 (Unit：hundred millions of yen FY2017 FY2018 IFRS FY2018 (FY ended (FY ended (FY ended Sales Interest Currency Fixed assets Mar31,2019) Mar 31,2018) Mar 31,2019) Commission dividends Exchange retirement
Slide 23: Business Forecast for the Year Ending March 31, 2019
Business Forecast for the Year Ending March 31,2019 (Consolidated) 【JGAAP】 【IFRS】 (Unit：hundred millions of yen FY2017 FY2018 (FY ended Mar 31,2018) (FY ended Mar 31,2019) Actual Forecast First Half For the Year First Half For the Year Sales 619.8 1,252.8 630.0 1,300.0 COGS 52.5% 53.9% 55.6％ 55.4％ O
Slide 24: Change in Personnel (On and After Jun 27th, 2018)
Change in Personnel （On and After Jun 27th, 2018） Directors President and Representative Director Kazunori Ishii (Reappointed) Managing Director, General Manager, Engineering Div. and in charge of Production Div. Mitsuo Nakamura （Reappointed） Managing Director, General Manager, Sales & Marketing Div