Hirose Electric Co., Ltd. · TSE:6806

Hirose Electric — Q1 FY2019 Earnings Presentation

20 slides from Hirose Electric's earnings presentation, Aug 5, 2019

  1. Slide 1: Business Results for FY2019 First Quarter

    Hirose Electric Business Results for FY2019 First Quarter Business Results for FY2019 First Quarter Aug 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 FY2019.1Q (Apr 2019 - Jun 2019)

    Business Situation of FY2019.1Q (Apr,2019 — Jun, 2019) (— ) Order 300.8 hundred million yen ( Year-on-Year -8.5%) FY2019.1Q Sales 282.3 hundred million yen (Apr - Jun) (Year-on-Year -0.8% ) Operating profit 53.4 hundred million yen 2XProfit Ratio 18.9 % Ne yy (Year-on-Year +6.5% ) The performance re

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

    FY2018 1Q — FY2019 1Q Orders and Sales (Consolidated Basis, Index Number) 110 |} mM 109 105 108 The sales remain stagnant, but the orders bottomed out \ N 96 95 92 91 90 } 91 88 —Order -=-Sales 80 | | | 1Q 2Q 3Q 4Q 1Q FY2018 FY2019

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

    FY2018 1Q — FY2019 1Q Sales by Markets (Consolidated Basis, Index Number) 120 80 60 120 119 The sales for mainly Chinese market has grown 76 1Q 2Q FY2018 3Q 4Q

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

    FY2018 1Q — FY2019 1Q Sales by Markets (Consolidated Basis, Index Number) Declined due to the number of car selling decreased 105 101 102 \ oS 95 92 —-Sales 80 | | | i i] 1Q 2Q 3Q 4Q 1Q FY2018 FY2019

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

    FY2018 1Q — FY2019 1Q Sales by Markets (Consolidated Basis, Index Number) 110 104 103 90 Dropped because of the deterioration of business confidence 78 Sales 70 | | | 1Q 2Q 3Q 4Q 1Q FY2018 FY2019

  8. Slide 8: Business Results for FY2019.1Q [IFRS]

    HS Business Results for FY2019.1Q [IFRS] (Unit : hundred millions of yen) Sales 284.7 282.3 in er li i ee iii ceceseeeens cs porn [SE cecesceaeeaeeeceseeseeattardbeseeeeeesaetaeseeserseateas Operating Profit 50.1 53.4 rere rernnncs 5 os thecaceceeceeaeeaeeaeeeeeeaeeapbeseeeeeeesaeseseseeeeaey erence

  9. Slide 9: Major Changes over prior same period FY2019.1Q

    HS Major Changes over prior same period FY2019.1Q (Unit : hundred millions of yen) 2.4 hundred million yen Decreased W@ Sales (284.7 > 282.3) Non consolidated Hirose : -10.7 Subsidiaries : +8.3 ll COGS Ratio 1.7 point Increased (55.8% > 57.5%) Purchase Cost Ratio : 38.1% > 38.4% Depreciation Ratio :

  10. Slide 10: FY2019.1Q Year-on-Year Variation analysis

    FY2019.1Q Year‐on‐Year Variation analysis ( Unit : hundred millions of yen ) Operating Earnings before Sales （％） income tax （％） profit FY2018.1Q Actual 284.7 50.1 17.6% 57.0 20.0% Exchange rate ‐5.0 0.9 ‐3.7 Depreciation cost increase ‐6.3 ‐6.3 Labor cost increase ‐1.6 ‐1.6 Increase in the product 2

  11. Slide 11: Currency Effect for FY2019.1Q

    Currency Effect for FY2019.1Q Currency rate: USS 109.07 yen 109.90 yen Currency rate: € 130.06 yen 123.49 yen Currency rate: 100won 10.12 yen 9.43 yen ( Unit: Hundred millions of Yen ) Sales -5.0 Operating Profit +0.9 Earnings before income tax -3.7 11

  12. Slide 12: FY2017.1Q - FY2019.1Q Quarterly Sales and Profit History

    HS FY2017.1Q - FY2019.1Q Quarterly Sales and Profit History M@mSales mmOperating Profit -®-Operating Profit Ratio (hundred millions of yen) (%) - 23. 5% 25. 25.0% 24.3% 20.9% 23.4% 18.9% _ 450 “16.5% 17.6% 17.6% “| 11.1% — 20.0% 400 350 0.0% 17.1Q 17.2Q 17.3Q 174Q 181Q 182Q 183Q 184Q UMLLUALL,

  13. Slide 13: Changes in Consolidated Balance Sheet

    HS Changes in Consolidated Balance Sheet Unit: hundred millions of yen Cash and Cash Time deposit matured and others equivalents > Trade receivables and other claim Qn port r Dt rrrrierererret errs Inventories Ue peter eeeeees peteeeeeeeeees Other financial Consumption taxes receivable refund assets

  14. Slide 14: Changes in Consolidated Balance Sheet

    Changes in Consolidated Balance Sheet HS Unit: hundred millions of yen Account Mar 31, 2019 Jun 31,2019 | crease / Remark Payables and other — | act 193.1 199.8 6.8 —. debt 2 ween eect eee e nab eee n nese e ene e eens penne eee e ness e neat e reese enna pe cen nec enneeeenneeeenneseeeneeetens = Le

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

    HS Sales Changes by Application (round number) [Consolidated Basis} 22% DOWN FY2018.1Q m FY2019.1Q 29% UP 3% UP | ; i U a — General Smartphone/ jytomotive Digital Tablet Communication Computer Office Industrial Mobile Phone Consumer /Notebook PC *1 Related Machinery Electronics Equipment *2 differen

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

    Sales by Application (round number) (Consolidated Basis) *2 * *1 Computer Related Equipment Computer Related Office Machinery * == “ve Communication | Communication | Tablet / Tablet / - Notebook Notebook PC Digital — General Consumer CnenG Industrial Electronics Electronics General Industrial 10% 3

  17. Slide 17: Overseas Production and Sales Ratio

    Overseas Production and Sales Ratio (%) CB 71 71 72 3B —~ o— nam 45 a “ 43 42 44 —i— —- —s ~»-Overseas Sales Ratio -™-Overseas Production Ratio FY2015 FY2016 FY2017 FY2018 FY2019.1Q 17

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

    HS Capital Investment and Depreciation Change (Consolidated Basis) (hundred millions of Yen) ! Capital Investment M@ll Depreciation (%) -&-Capital Investment Ratio <@=Depreciation Ratio 200 + 186 - 30.0 159 160 - 140 + - 20.0 120 - pL eee eee 100 + - 10.0 0.0 FY2019 Forecast FY2019.1Q (*Excluded: In

  19. Slide 19: Business Forecast for the Year Ending March 31, 2020 (Consolidated) [IFRS]

    HS Business Forecast for the Year Ending March 31,2020 (Consolidated) [IFRS] FY2018 (FY ended Mar31, 2019) Actual FY2019 (FY ended Mar31, 2020) Forecast ( Unit: Hundred millions of yen ) First Half For the Year Over the Previous Over the Previous Actual Amount Actual Amount Amount First Half For the

  20. Slide 20: Hirose Electric Co., Ltd.

    HIROSE ELECTRIC Co.,LTD.

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