Hirose Electric Co., Ltd. · TSE:6806
Hirose Electric — FY2018 Earnings Presentation
27 slides from Hirose Electric's earnings presentation, May 9, 2019
Slide 1: Business Results for FY2018
Hirose Electric Business Results for FY2018 Business Results for FY2018 May 9th, 2019 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 FY2018 (Apr 2018 – Mar 2019)
Business Situation of FY2018 (Apr,2018 – Mar,2019) Order 1,250.4 hundred million yen （ YoY ‐1.3%） FY2018 Sales 1,245.9 hundred million yen （Apr ‐ Mar） （YoY ‐0.4%, Over estimate +0.5% ） Operating profit 231.6 hundred million yen ※Profit Ratio 18.6 ％ （YoY ‐17.5%, Over estimate ‐3.5%） Industrial market
Slide 4: Total Order Sales
FY2017 1Q – FY2018 4Q Orders and Sales (Consolidated Basis, Index Number) Order Total 130 Sales For Automotive : steadily growing up 120 For Smartphone and Industrial : decreased 111 110 110 109 104 104 102 104 107 Average of 100 FY2017 = 100 98 98 94 94 91 90 91 88 87 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2
Slide 5: Smartphone / Mobile Sales by Market
FY2017 1Q – FY2018 4Q Sales by Markets (Consolidated Basis, Index Number) Smartphone / Mobile 120 115 112 109 108 Average 100of FY2017 =100 89 84 80 76 Because of the decrease Sales 69 in sales for China 60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017 FY2018 5
Slide 6: Automotive Sales by Market
FY2017 1Q – FY2018 4Q Sales by Markets (Consolidated Basis, Index Number) Automotive 120 116 111 112 105 104 Steadily growing up 101 Average of 100 FY2017 = 100 98 93 Sales 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017 FY2018 6
Slide 7: FA Controlling Device and Others Sales by Market
FY2017 1Q – FY2018 4Q Sales by Markets (Consolidated Basis, Index Number) Associated Electric Equipment, FA Controlling Device, and Others 120 Monthly Transition of Index Jan 93、Feb 81、Mar 103 106 104 103 101 Average of 100 100 2017 = 100 97 97 92 Sales 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2017 FY2018 7
Slide 8: Business Results for FY2018 【IFRS】
Business Results for FY2018 【IFRS】 （Unit ： hundred millions of yen） Increase / Increase / FY2017 FY2018 FY2018 Decrease Decrease Ratio （FY ended Mar31, 2018） Forecast (2/6) （FY ended Mar31, 2019） （YoY） （YoY） Sales 1,251.4 1,240.0 1,245.9 ‐5.5 ‐0.4% COGS Ratio 53.8% 55.6% 56.2% +2.4 SGA Ratio 23.3% 2
Slide 9: Major Changes over prior same period FY2018
Major Changes over prior same period FY2018 （Unit ： hundred millions of yen） ■ Sales 5.5 hundred million yen Decreased (1,251.4 → 1,245.9) Non consolidated Hirose ： +10.2 Subsidiaries ： ‐15.7 ■ COGS Ratio 2.4 point Increased (53.8% → 56.2%) Purchase Cost Ratio ： 37.8％ → 38.8％ Depreciation Ratio ： 7.
Slide 10: FY2018 YoY Variation analysis
FY2018 YoY Variation analysis ( Unit : hundred millions of yen ) Operating Earnings before Sales （％） income tax （％） profit FY2017 Actual 1,251.4 280.6 22.4% 280.1 22.4% Exchange rate ‐3.9 ‐1.7 11.9 Depreciation cost increase ‐22.4 ‐22.4 Labor cost increase ‐7.6 ‐7.6 Delivery expense increase ‐5.0 ‐5
Slide 11: Currency Effect for FY2018
Currency Effect for FY2018 FY2017 FY2018 Currency rate：US$ 110.85 yen 110.91 yen Currency rate：€ 129.70 yen 128.41 yen Currency rate：100won 10.00 yen 9.98 yen ( Unit：Hundred millions of Yen ) YoY Currency effect amount Sales ‐3.9 Operating Profit ‐1.7 Earnings before income tax +11.9 11
Slide 12: Changes in Consolidated Balance Sheet
Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2018 Mar 31, 2019 Decrease Remark Cash and Cash Payment of dividend, equivalents 694.0 523.2 ‐170.7 Corporate tax,etc A Trade receivables and other claim 315.0 295.4 ‐19.6 S Inventories 121.9 139.4 17.4 S O
Slide 13: Changes in Consolidated Balance Sheet: Shareholder's Equity
Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2018 Mar 31, 2019 Decrease Remark Payables and other 195.3 193.1 ‐2.2 Liabilities debt Income Taxes Payable 49.5 30.9 ‐18.6 Others 119.8 117.1 ‐2.8 364.6 341.0 ‐23.6 Capital stock and Shareholder’s Equity C
Slide 14: Sales Changes by Application
Sales Changes by Application (round number) 【Consolidated Basis】 450.0 ±0 400.0 FY2017 FY2018 350.0 9% DOWN 300.0 10％ UP 250.0 200.0 150.0 100.0 50.0 0.0 General Industrial Smartphone/Mobile Phone Automotive Digital Consumer Tablet/Notebook PC Communication Computer Related Office Machinery General
Slide 15: Sales by Application
Sales by Application (round number) (Consolidated Basis) *2 *2 Computer Related Office Machinery 27 *1 ％ Computer Related Equipment *1 Equipment Communication Communication 2% Tablet / Office Machinery Tablet / 4% 3% Notebook Notebook PC 2% 6% PC 3% 4% Digital 5% Digital General Consumer Consumer El
Slide 16: Overseas Production and Sales Ratio
Overseas Production and Sales Ratio （％） 80 72 73 71 71 72 70 60 50 45 44 45 43 42 40 30 20 Overseas Sales Ratio 10 Overseas Production Ratio 0 FY2014 FY2015 FY2016 FY2017 FY2018 16
Slide 17: Capital Investment and Depreciation Change
Capital Investment and Depreciation Change (Consolidated Basis) (hundred millions of Yen) （％） 200 Capital Investment Depreciation 40.0 186 Capital Investment Ratio Depreciation Ratio 175 180 159 160 140 30.0 140 132 125 118 120 111 103 100 20.0 80 77 14.9 12.7 13.5 11.5 60 9.8 10.8 10.0 40 10.0 9.2
Slide 18: Number of Employees
Number of Employees ( Financial Report Basis ) （⼈） Overseas 5000 Domestic 4836 4597 4190 4319 + 239 4044 + 278 4000 + 129 3000 3594 3425 + 169 3128 3213 + 212 3035 + 85 2000 1000 + 70 + 44 + 66 1009 1062 1106 1172 1242 0 Mar, 2015 Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 18
Slide 19: Distribution of Shareholders
Distribution of Shareholders Number of Shareholders 3,185 3,182 2,904 3,150 3,369 （People） 100% 5.32 15.26 12.62 13.05 12.92 4.70 90% 4.52 4.15 4.09 80% 4.36 Treasury Stocks 70% Individual and 46.08 Others 42.57 43.04 41.30 Foreign 60% 41.15 Corporation Other Corporation 50% Securities Firm 40% 13.5
Slide 20: FY2019 Attitude to each applications (Forecast)
FY2019 Attitude to each applications (Forecast) Expect the sales growth in Automotive General Industrial Smartphone / Mobile ▲3% ±0% FY2018 2018実績 FY2019 2019予想 FY2018 2018実績 FY2019 2019予想 (Forecast) (Forecast) It is expected that sales from 2nd half of FY2019 We will continuously receive the demand
Slide 21: Business Forecast for the Year Ending March 31, 2020
Business Forecast for the Year Ending March 31,2020 (Consolidated) 【IFRS】 ( Unit：Hundred millions of yen ) First Half For the Year FY2018 (FY ended Mar31, 2019) FY2019 (FY ended Mar31, 2020) Over the Previous Over the Previous Actual Forecast Actual Amount Actual Amount Amount Amount First Half For
Slide 22: Change in Personnel
Change in Personnel （On and After Jun 27th, 2019） Directors President and Representative Director Kazunori Ishii (Reappointed) Senior Managing Director, Group President, Engineering Group and in charge of Production Group Mitsuo Nakamura （Promoted） Director, Group President, Production Group Yukio K
Slide 23: Shareholder return and ROE
Shareholder return and ROE
Slide 24: Historical performance of shareholder return
1. Historical performance of shareholder return （1）Dividend payout ratio ： has continuously exceeded 30% since FY2008 （2）Share buyback ： carried out a huge amount of share buyback in FY2007, FY2008, FY2009 and FY2015 （3）Special dividend ： paid in FY2017 to celebrate our 80th anniversary （4）The allot
Slide 25: The change in operating profit and ROE
2. The change in operating profit and ROE Because of our investment (labors, facilities) to expand ROE business related to Automotive and Industrial, 35.0 Operating Profit Ratio 32.9 operating profit ratio has declined → ROE also decreased 30.0 30.0 26.4 25.9 25.0 24.2 23.8 23.9 24.7 21.9 22.4 20.6
Slide 26: Future shareholder return policy
3. Future shareholder return policy Our top priority issue To improve our profitability (operating profit ratio) in FY2019 In FY2019, we will carry out both of our top priority issue and shareholder return policy. Shareholder Dividend payout ratio : 40% return policy To carry out share buyback and c
Slide 27: HIROSE
HIROSE HeG ceccrnic Co.,LTD.