Hirose Electric Co., Ltd. · TSE:6806

Hirose Electric — H1 FY2017 Earnings Presentation

22 slides from Hirose Electric's earnings presentation, Nov 2, 2017

  1. Slide 1: Business Results For First Half, FY 2017

    For First Half, FY 2017 Business Results ‐ CONNECTING THE FUTURE ‐ 2nd Novemver, 2017 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 First Half FY2017 (Apr-Sep)

    Business Situation of First Half FY2017 (Apr‐Sep) Order 675.7 hundred million yen （ YoY +15.6%） FY2017 First Half Sales 619.8 hundred million yen Results settled on （YoY +8.4%、 Over estimate +3.3%） (Apr – Sep) Recuring Profit 157.7 hundred million yen ※Profit Ratio 25.4％ （YoY +9.8%、 Over estimate +8

  4. Slide 4: FY2016 1Q – FY2017 2Q Orders and Sales

    FY2016 1Q – FY2017 2Q Orders and Sales (Consolidated Basis, Index Number) Total 120 120 The Sales has been increasing. But it hasn’t caught up to the Order strongly increasing mainly 113 111 led by smartphone demand. 104 103 103 102 Average of 100 FY2016 = 100 97 99 100 98 96 Order Sales 80 1Q 2Q 3Q

  5. Slide 5: Sales by Markets: Smartphone / Mobile

    FY2016 1Q – FY2017 2Q Sales by Markets (Consolidated Basis, Index Number) Smartphone / Mobile 119 120 115 Mainly Sales for Chinese and Korean Market had been increased Average of FY2016 100 =100 96 92 93 96 80 60 1Q 2Q 3Q 4Q 1Q 2Q FY2016 FY2017 5

  6. Slide 6: Sales by Markets: Automotive

    FY2016 1Q – FY2017 2Q Sales by Markets (Consolidated Basis, Index Number) 120 Automotive Steadily growing up 110 106 103 Average 100of FY2016 = 100 99 98 98 97 90 80 1Q 2Q 3Q 4Q 1Q 2Q FY2016 FY2017 6

  7. Slide 7: Sales by Markets: Associated Electric Equipment, FA Controlling Device, Others

    FY2016 1Q – FY2017 2Q Sales by Markets (Consolidated Basis, Index Number) Associated Electric Equipment, FA Controlling Device, and Others 123 123 120 Keep high level 106 owing to good trend in FA related equipment Average of 2016 =100 100 101 99 95 Sales 80 1Q 2Q 3Q 4Q 1Q 2Q FY2016 FY2017 7

  8. Slide 8: Business Results for First Half, FY2017

    Business Results for First Half, FY2017 Hundred millions of yen FY2016 FY2017 1H FY2017 Increase / Increase / First Half Estimate First Half Decrease Decrease Ratio Sales 571.8 600.0 619.8 48.0 8.4% COGS Ratio 53.4% ― 52.5% ‐0.9% SGA Ratio 21.6% ― 23.1% +1.5% Operating Profit 142.9 142.0 151.4 8.5 6

  9. Slide 9: Major Changes over prior same period for First Half, FY2017

    Major Changes over prior same period for First Half, FY2017 Unit：hundred milions of Yen ■ Sales 48.0 hundred million yen Increase Hirose ： + 51.0 Subsidiaries ： ‐ 3.0 ■ COGS Ratio 0.9 point Increase 電子応用 Cost Ratio ： 39.3％ → 37.6％ Purchase Depreciation Ratio ： 4.4％ → 5.3％ ■ SGA Ratio 1.5 point decre

  10. Slide 10: Currency Effect for First Half, FY2017

    Currency Effect for First Half, FY2017 FY2016 FY2017 First Half First Half Currency rate：US$ 105.29 Yen 111.06 Yen Currency rate：€ 118.15 Yen 126.29 Yen Currency rate：100won 9.23 Yen 9.84 Yen Unit：hundred millions of Yen YoY Currency effect amount Sales +25.5 Operating Profit +11.2 Recurring Profit

  11. Slide 11: Quarterly Sales and Profits

    Quarterly Sales and Profits (Hundred millions of Yen) （%） Sales Recurring Profit Recurring Profit Ratio 900.0 29.6% 28.4% 27.2% 27.3% 26.7% 30.0% 800.0 26.0% 25.1% 25.4% 23.3% 700.0 617.0 633.0 624.0 633.0 612.0 620.0 20.0% 600.0 591.0 572.0 579.0 500.0 10.0% 400.0 0.0% 300.0 200.0 183.0 165.0 178.0

  12. Slide 12: Changes in Consolidated Balance Sheet

    Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2017 Sep 30, 2017 Decrease Remark Cash and Cash in Increase due to government bond Bank 1,852.5 1,929.0 76.5 redemption, etc A Trade Receivables 284.9 313.1 28.2 Increase in Sales S Decrease due to governme

  13. Slide 13: Shareholder's Equity

    Changes in Consolidated Balance Sheet Unit：hundred millions of yen Increase / Account Mar 31, 2017 Sep 30, 2017 Decrease Remark Liabilities Notes Payable and Account Payable 113.9 133.9 20.0 Increase in domestic plant Income Taxes Payable 37.6 42.6 5.0 Others 152.5 166.6 14.1 Increase in account pay

  14. Slide 14: Sales Changes by Application

    Sales Changes by Application (round number) 【Consolidated Basis】 250 FY2016 First Half FY2016.2Q FY2017.2Q 27％ UP ■ FY2017 First Half 200 ±0 150 3％ UP 100 8％ UP 12％ UP 50 0 General Industrial Smartphone/Mobile Phone Automotive Tablet/Notebook PC Digital Consumer Communication Computer Related Office

  15. Slide 15: Sales by Application

    Sales by Application (round number) (Consolidated Basis) Others FA Controlling Equipment Others FA Controlling Equipment 27％ 23％ General 26％ General 29％ Industrial Industrial 30％ 35％ FY2017 3％ FY2016 First Half First Half 4％ 4％ 3％ 4％ Associated Electric 3％ 18％ 2％ 18％ Equipment 2％ Associated 2％ 3％ El

  16. Slide 16: Overseas Production and Sales Ratio

    Overseas Production and Sales Ratio （％） 80 72 72 73 71 71 70 60 48 50 45 44 45 45 40 30 20 Overseas Sales Ratio 10 Overseas Production Ratio 0 FY2013 FY2014 FY2015 FY2016 FY2017.2Q 16

  17. Slide 17: Capital Investment and Depreciation Change

    Capital Investment and Depreciation Change (Consolidated Basis) (hundred millions of Yen) （％） 180 Capital Investment 170 40.0 Depreciation Estimate at Apr, 17 160 160 Capital Investment Ratio Depreciation Ratio 140 132 30.0 118 118 120 110 111 110 Estimate at Apr, 17 105 100 80.7 20.0 80 77 13.5 13.

  18. Slide 18: Number of Employees

    Number of Employees ( Financial Report Basis ) （Employees） Overseas 5000 Domestic + 149 4468 + 129 4319 4044 4190 4000 3966 3000 + 90 + 85 3303 3128 3213 2972 3035 2000 + 44 + 59 1000 994 1009 1062 1106 1165 0 Mar, 2014 Mar, 2015 Mar, 2016 Mar, 2017 Sep, 2017 18

  19. Slide 19: Distribution of Shareholders

    Distribution of Shareholders Number of Shareholders 3,464 3,185 3,182 2,904 2,975 （People） 100% 14.77 15.26 12.62 13.05 13.02 90% 4.61 4.52 4.15 4.11 Treasury Stocks 80% 4.36 Individual and 70% Others 60% 40.55 41.15 42.57 43.04 42.14 Foreign Corporation 50% Other Corporation 40% Securities Firm 13.

  20. Slide 20: FY2017 Attitude to each applications (Forecast)

    FY2017 Attitude to each applications (Forecast) Expect the increase of demand by economic recovery, etc. General Industrial Smartphone / Mobile 410 410 20%up 8%up 0 0 H28 FY2016 FY2017 H29(予想) FY2016 H28 FY2017 H29(予想) (Forecast) (Forecast) The demand would be steadily received. The demand would be

  21. Slide 21: Business Forecast for the Year Ending March 31, 2018

    Business Forecast for the Year Ending March 31,2018 (Consolidated) We have revised up our financial estimate Apr, FY2017 ⇒ The best sales amount ever Unit：hundred millions of Yen FY2017(FY ended Mar 31, 2018) First Half For the Year FY2016(FY ended Mar 31, 2017) Over the Previous Over the Previous A

  22. Slide 22: Connecting the Future

    CONNECTING THE FUTURE anniversary since1937 B ecoming a corporate group that contributes to realize an affluent society... By connecting wisdom and producing high value-added products. Corporate Website : https://www.-hirose.com/jp/ InvestorRelations : https://www-hirose.com/jp/ir/

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