Hirose Electric Co., Ltd. · TSE:6806

Hirose Electric — FY2023 Earnings Presentation

23 slides from Hirose Electric's earnings presentation, May 8, 2024

  1. Slide 1: Business Results for FY2023

    Hirose Electric Business Results for FY2023 Business Results for FY2023 May 8, 2024 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: Summary of the Business Results (FY2023 from April to March, 2024)

    Summary of the Business Results (FY2023 from April to March, 2024) ◼ Automotive and smartphone business showed steady growth in FY2023. On the other hand, the business for industrial and consumer market continued to be challenging, and the results throughout the fiscal year ended in minus growth com

  4. Slide 4: Changes in Sales and Operating Profit (FY2022.1Q–FY2023.4Q)

    Changes in Sales and Operating Profit （FY2022.1Q～FY2023.4Q / Consolidated basis） © 2024 HIROSE ELECTRIC CO., LTD. All rights reserved. 4

  5. Slide 5: Business Results for FY2023

    Business Results for FY2023 Increase/Decrease FY2022 FY2023 Increase/Decrease (FY ended Mar 31, 2023) (FY ended Mar 31, 2024) (YoY) ratio (Yen in hundred millions) (YoY) Sales 1,832.2 1,655.1 -177.1 -9.7% COGS Ratio 51.9% 56.2% +4.3pt SGA Ratio 22.3% 22.5% +0.2pt Operating Profit 467.5 340.2 -127.3

  6. Slide 6: FY2022 to FY2023 Major Changes

    FY2022 to FY2023 Major Changes Sales General Industrial ：-186 177.1 hundred millions yen Decreased (1,832.2 → 1,655.1) Consumer / Mobile Equipment ：-47 COGS Ratio Variable Expense Ratio ：38.1% → 39.4% Depreciation Ratio ：7.3％ → 8.2％ 4.3 pt Deteriorated (51.9% → 56.2%) Labor Cost Ratio ：6.7% → 7.8% S

  7. Slide 7: FY2023 YoY Variation Analysis

    FY2023 YoY Variation Analysis (Yen in hundred millions) Operating Profit Sales (%) (%) Profit before tax FY2022 Actual 1,832.2 467.5 25.5% 485.9 26.5% Exchange rate 91.6 48.7 59.6 Labor cost decrease 10.9 10.9 Decrease in freightage and 19.8 19.8 packing expenses Increase in Loss on -5.1 -5.1 retire

  8. Slide 8: Consolidated Balance Sheet (1)

    Consolidated Balance Sheet (1) (Yen in hundred millions) Increase/ Account Mar 31, 2023 Mar 31, 2024 Remarks Decrease Transfer from time deposit +187, Cash and cash equivalents 880.3 903.4 +23.1 Dividends paid -172, Buyback -100 Shortening terms of payment in Japan -91 Trade and other receivables 41

  9. Slide 9: Consolidated Balance Sheet (2)

    Consolidated Balance Sheet (2) (Yen in hundred millions) Increase/ Account Mar 31, 2023 Mar 31, 2024 Remarks Decrease Shortening terms of payment in Payable and other debt 208.0 117.3 -90.7 Japan Liabilities Lease liabilities 54.8 59.3 +4.5 Income Taxes Payable 82.1 25.0 -57.1 Profit decreased in Ja

  10. Slide 10: Changes in Capital Investment and Depreciation (Consolidated basis)

    Changes in Capital Investment and Depreciation (Consolidated basis) (Yen in hundred millions) (*Excluded: Investment in land, building and software © 2024 HIROSE ELECTRIC CO., LTD. All rights reserved. 10

  11. Slide 11: Overseas Production and Sales Ratio

    Overseas Production and Sales Ratio © 2024 HIROSE ELECTRIC CO., LTD. All rights reserved. 11

  12. Slide 12: Number of Employees (Financial Report Basis)

    Number of Employees (Financial Report Basis) (Number of employees) Domestic Overseas +211 5070 -126 +122 4859 4944 -290 4737 4654 3621 3834 3697 3493 -137 3365 +128 +213 -332 1244 -6 1238 -2 1236 +11 1247 +42 1289 Mar, 2020 Mar, 2021 Mar, 2022 Mar, 2023 Mar, 2024 © 2024 HIROSE ELECTRIC CO., LTD. All

  13. Slide 13: Distribution of Shareholders

    Distribution of Shareholders Number of Shareholders (People) 3,215 2,883 2,813 3,009 3,268 100% 5.51% 4.95% 7.36% 7.49% 6.65% 4.44% 3.94% 4.22% 90% 3.73% 3.94% 80% Treasury Stocks 70% 43.18% 41.26% 39.90% 42.04% 42.62% Individual and Others 60% Foreign Corporation 50% Other Corporation 14.60% 15.20%

  14. Slide 14: Sales by Application_General Industrial

    Sales by Application_General Industrial (Yen in hundred millions) FY2022 FY2023 YoY FY2023/ 1H 3Q 4Q FY22 1H 3Q 4Q FY23 FY2022 Sales 347 180 164 691 282 119 104 505 -27% ⚫ FY2023 Composition ratio ⚫ Changes in quarterly sales 179 180 168 164 152 130 31% 119 104 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023

  15. Slide 15: Sales by Application_Smartphone

    Sales by Application_Smartphone (Yen in hundred millions) FY2022 FY2023 YoY FY2023/ 1H 3Q 4Q FY22 1H 3Q 4Q FY23 FY2022 Sales 164 95 81 340 169 99 87 355 +4% ⚫ FY2023 Composition ratio ⚫ Changes in quarterly sales 95 97 99 89 87 81 75 72 22% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 ◼ Sales in 4Q decreas

  16. Slide 16: Sales by Application_Consumer/Mobile Equipment

    Sales by Application_Consumer/Mobile Equipment (Yen in hundred millions) FY2022 FY2023 YoY FY2023/ 1H 3Q 4Q FY22 1H 3Q 4Q FY23 FY2022 Sales 186 69 45 300 124 62 67 253 -16% ⚫ FY2023 Composition ratio ⚫ Changes in quarterly sales 98 88 69 68 67 62 56 45 16% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 ◼ Rec

  17. Slide 17: Sales by Application_Automotive/Mobility-related

    Sales by Application_Automotive/Mobility-related (Yen in hundred millions) FY2022 FY2023 YoY FY2023/ 1H 3Q 4Q FY22 1H 3Q 4Q FY23 FY2022 Sales 174 96 90 360 195 115 119 429 +19% ⚫ FY2023 Composition ratio ⚫ Changes in quarterly sales 115 119 120 102 96 93 100 86 88 90 80 27% 60 40 20 0 1Q 2Q 3Q 4Q 1Q

  18. Slide 18: Sales by Application_Telecommunications Infrastructure Equipment / OA Equipment

    Sales by Application_Telecommunications Infrastructure Equipment / OA Equipment (Yen in hundred millions) FY2022 FY2023 YoY FY2023/ 1H 3Q 4Q FY22 1H 3Q 4Q FY23 FY2022 Telecommunications infrastructure 34 13 13 60 23 10 12 45 -25% equipment OA equipment 12 7 5 24 9 4 4 17 -29% ⚫ FY2023 Composition ra

  19. Slide 19: Business Forecast for the Year Ending March 31, 2025 (Consolidated)

    Business Forecast for the Year Ending March 31, 2025 (Consolidated) First Half Over the For the Year Over FY2023 Actual FY2024 Forecast Previous Actual the Previous Actual (FY ended March 31, 2024) (FY ending March 31, 2025) Amount Amount Amount Amount First Half For the Year First Half For the Year

  20. Slide 20: Annual Sales Forecast by Segment

    Annual Sales Forecast by Segment (round of number) (Yen in hundred millions) 505 500 465 400 429 355 253 275 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Actual Forecast Actual Forecast Actual Forecast Actual Forecast General Consumer/Mobile Automotive/ Smartphone Industrial equipment Mobility related FY

  21. Slide 21: Changes in Board Members (On and After Jun. 21, 2024)

    Changes in Board Members (On and After Jun. 21, 2024) Directors (excluding directors who are audit and supervisory committee members) President Kazunori Ishii (Reappointed) Senior Managing Director Group President, Administration Group Shin Kamagata (Promoted) Director Group President, Sales & Marke

  22. Slide 22: Appendix. Sales by Industry Segments Round Number (Quarterly Basis)

    Appendix. Sales by Industry Segments Round Number (Quarterly Basis) (Yen in hundred millions) FY2022 FY2023 FY2023 Composition 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ratio General Industrial 168 179 180 164 152 130 119 104 31% Smartphone 75 89 95 81 72 97 99 87 22% Consumer / Mobile equipment 98 88 69 45 56 68 62

  23. Slide 23: HIROSE

    HIROSE He5 ELECTRIC Co.,LTD.

Hirose Electric — FY2023 Earnings Presentation on 6ix