Hirose Electric : Annual Report (Year ended March 31, 2025)

78th Fiscal Term Annual Report

From April 1, 2024 to March 31, 2025

Shin Kamagata,

President and Representative Director

Kazunori Ishii,

Chairman of the Board

▌On Becoming Chairman

On June 24 of this year, Shin Kamagata, who previously served as Senior Managing Director, took up the role of President and Representative Director of the Company.

I served as President for thirteen years from 2012, and I am delighted to have been able to hand the torch to the next generation.

The environment surrounding the Company is changing dramatically, and in an era of intensifying competition, I feel the following two issues are important.

The first is the ability to respond quickly to change.

The world is going through changes of such dizzying speed that they can no longer be fully addressed by existing business processes.

In this time of transformation, it is essential that the Company is led by management who are deeply familiar with DX and AI and their use, even in such areas as decision-making and value creation.

The second is that in our connecting business it is vital that we practice our inseparable principles of "A Small Company Connecting Wisdom." This requires top management who possess the empathetic ability to understand diversity, as well as the leadership ability to draw people in. It is because new President Shin Kamagata has accumulated experience through frequent involvement in formulating company-wide management strategy, improving operational processes, and introducing new systems that I concluded that he is the individual best suited to ensuring that the Company survives the coming era, and initiated the change in top management.

As Chairman without representative rights, I relinquished the helm of management to the new President on June 24 and will be one of his greatest supporters going forward.

The Company is a balance between the new and the existing.

We aim to build new businesses and technologies in order to enable Hirose Electric to maintain steady and continuous growth. In the future, my role will be to focus on setting the course towards the "new" of this cradle period.

I look forward to the continual support of our shareholders going forward.

Kazunori Ishii, Chairman of the Board

▌On Becoming President

My name is Shin Kamagata, and on June 24, 2025, I became President and Representative Director of Hirose Electric.

My predecessor, Kazunori Ishii, built a stable business foundation on the three pillars of consumer equipment, automotive, and general industrial equipment. Due to his success in expanding the business in the automotive market into which the Company was a late entrant, net sales achieved a record high in FY2024.

In terms of policy going forward, I have inherited a robust business foundation and a business model of creating products that provide high added-value by "Always Taking the Lead, Pursuing the Cutting Edge, Achieving Differentiation," which I intend to develop further.

Conversely, while we have enjoyed the benefits of globalization in the past, we are now facing a backlash triggered by United States tariffs and other problems. This is a major issue for the Company, which has a supply chain that is global in extent.

Nevertheless, for the Company, which has succeeded in maintaining its growth by taking advantage of change, this is at the same time an opportunity.

As a connector manufacturer on the cutting edge of the industry, customers set a variety of wishes and expectations upon us, and I feel that by demonstrating the ability to respond to change that is one of our strengths, we will be able to achieve further growth.

It is the role of management to address these risks appropriately in order to provide employees with an environment in which they can concentrate on forward-looking product development from a medium- to long-term perspective, without being emotionally affected by fluctuations in the external environment.

I am convinced that pursuing this commitment to creating distinctively Hirose Electric products that are unique in the world will lead to business growth.

While concentrating on creating new value, we must simultaneously establish lean processes and a lean organization to drive the business sufficiently to respond to change.

I will engage in constructive discussions from diverse viewpoints that include not only the use of AI but also DX and GX, and move forward together with employees to increase corporate value.

I look forward to the unwavering support and guidance of our shareholders.

Shin Kamagata, President and Representative Director

• Sales ■ Operating profit ■ Profit attributable to owners of parent

  183,224

  189,420

  165,509

  94,704

  82,910

  94,519

  
  
  

  Millions of yen 200,000

  Interim
  
  
  Full year
  
  

  Millions of yen 50,000

  Interim
  
  

  42,672

  27,170

  17,191

  22,216

  34,017

  
  
  

  46,751

  Full year
  
  

  Millions of yen 36,000

  34,648

  33,033

  20,636

  12,597

  17,531

  26,480

  
  
  
  Interim
  
  
  Full year
  
  

  150,000

  40,000

  30,000

  100,000

  30,000

  20,000

  24,000

  18,000

  12,000

  50,000

  10,000

  6,000

  0

  76th

  77th 78th

  0

  76th

  77th 78th

  0

  76th

  77th 78th

• Basic earnings per share ■ Equity attributable to owners of parent to total assets ratio & Operating profit to sales ratio

  Equity attributable to owners of parent to total assets ratio

• Dividends per share

Yen 1,200

Interim

Full year

% 100

Operating profit to sales ratio

Yen 600

Interim

Full year

1,000

800

600

90

1,002.04

976.33

594.23

365.87

518.17

772.38

87.2

90.3

88.8

80

70

400

60

50

500

440

220

245

220

490

400

200

40

200

25.5

20.6

22.5

30

20

10

0

76th

77th

78th

0

76th

77th

78th

0

76th

77th

78th

Overview of Consolidated Statements of Financial Position (Millions of yen)

Previous fiscal year

As of March 31, 2024

Current fiscal year

As of March 31, 2025

Total assets

Previous fiscal year

As of March 31, 2024

Total liabilities and equity

Current fiscal year

As of March 31, 2025

Total liabilities and equity

Cash and cash equivalents

90,341

Trade and other receivables

39,418

Property, plant and equipment

80,949

Intangible assets

5,141

Other financial

assets 69,133

Total assets

403,450

Non-current assets

168,990

Current assets

234,460

416,866

Cash and

Non-current assets

168,090

Current assets

248,776

cash equivalents 85,666

Trade and

other receivables 40,394

Property, plant and equipment 86,384

Intangible assets 6,615

Other financial assets

63,785

403,450

Liabilities

Equity

364,173

39,277

416,866

Liabilities

Equity

370,147

46,719

Overview of Consolidated Statements of Income (Millions of yen)

189,420

Previous fiscal year

From April 1, 2023

to March 31, 2024

Sales

165,509

Operating profit to sales ratio 20.6%

Profit attributable to owners of parent

26,480

Operating profit 34,017

Current fiscal year

From April 1, 2024

to March 31, 2025

Sales

Finance income

4,354

Income tax expense

13,185

Operating profit to sales ratio 22.5%

Finance costs

808

Profit attributable to owners of parent 33,033

Operating profit

42,672

Profit before tax

46,218

Working with Komazawa University Athletics Club to hold events for local residents

Since signing a sponsorship agreement with the Komazawa University Athletics Club in December 2023, we have held a variety of events with the cooperation of persons affiliated with the university.

Beginning with a running session held in May 2024 in which employees ran with competitors through the neighborhood surrounding the Yokohama headquarters, we have expanded our activities to include residents of the areas around our manufacturing plants in the Tohoku region.

In July and September, industry-academia-government cooperation enabled us to hold running clinics under the guidance of the Komazawa University Athletics Club for children and young persons in the areas around Koriyama City in Fukushima Prefecture and Ichinoseki City in Iwate Prefecture, where our manufacturing plants are located. Both were well attended.

These events used facilities for which we have obtained the naming rights, and presented an excellent opportunity to foster among local residents the sense that the Company is part of their daily lives.

In addition to running events, this initiative has led to enhanced health and productivity management within the Company, such as by inviting athletics advisers to lead zen mediation sessions and wellness seminars for employees with the aim of refreshing mind and body.

As a company that is co-creating our future society with the "power to connect," we will continue to give unstinting support to competitors of Komazawa University who are "energetically passing on a Tasuki sash." At the same time, through holding of events that involve local people in the regions where we have business sites, we will work on social contribution activities that open the way to developing the human resources of the future.

Running session for employees at headquarters

Running clinic held for Koriyama City high school students at Koriyama Hirose Kaiseizan Athletic Stadium

Running clinic held for elementary school children from the area around the Ichinoseki Hirose U-dome

Zen meditation session at the headquarters for employees

Ichinoseki Hirose Electric awarded the "Director-General's Prize For Factories, Etc. With Excellent Energy Management" by the Tohoku Bureau of Economy, Trade and Industry

Hirose Electric subsidiary Ichinoseki Hirose Electric (Ichinoseki City, Iwate Prefecture) was awarded the "Director-General's Prize For Factories, Etc. With Excellent Energy Management" by the Tohoku Bureau of Economy, Trade and Industry in recognition of its previous initiatives to promote energy management and energy savings.

The award ceremony was held in Sendai City on February 27.

Ichinoseki Hirose Electric's energy-saving and renewable-energy initiatives are supported by the three pillars of tangible aspects, intangible aspects and management aspects.

It has assigned a person responsible for energy management to the EMS Committee and made other adjustments to the organizational structure, as well as using demand systems to visualize electricity usage by power distribution board to analyze the state of electricity usage with the objective of promoting both energy-saving and renewable-energy initiatives.

The sharing of such information among all departments has also led to the formulation of energy-saving measures and heightened awareness of the need to save energy. The specific initiatives for which Ichinoseki Hirose Electric was highly rated on this occasion were as follows.

1. Significant reductions in electricity usage arising from measures to reduce electric power consumption that are planned and enhanced every fiscal year

2. The installation of a large solar carport (PPA) to expand the usage of renewable energy

3. Proactive communication of energy-saving and renewable energy initiatives to local communities through factory tours and lectures

The award ceremony taking place Award certificate

Multi-Pin Connectors

Sales ¥170,849million (up 15.0% year on year)

90.20%

Our flagship multi-pin connectors include a variety of connector types such as circular and rectangular connectors, connectors for ribbon cables, connectors used for printed circuit boards including FPCs (flexible printed circuit boards) and nylon connectors.

The major applications of these connectors include a wide range of fields such as smartphones, communications equipment and automotive electronics, as well as industrial fields such as measuring and control equipment, FA equipment and medical electronics equipment. Further expansion in demand is expected along with the further development of a sophisticated information and communications networked society and an eco-friendly, energy conservation-oriented society.

Segment sales for the year under review increased by 15.0% year on year to ¥170,849 million and operating profit increased by 31.4% year on year to ¥39,391 million.

Sales (Millions of yen) ■ Interim □ Full year

170,849

148,512

74,245

85,585

180,000

120,000

60,000

0

77th 78th

7.21%

Coaxial Connectors

Sales ¥13,668million (up 17.1% year on year)

Coaxial connectors are a special type of high-performance connector used primarily for microwave and other high-frequency signals. Their applications include antenna connections for wireless LAN and Bluetooth communication used in smartphones and PCs, and as GPS antenna connections for automobiles as well as for connecting high-frequency signals in wireless communication devices and electronic measuring equipment. Optical fiber connectors and coaxial switches are also included in this segment.

Segment sales for the year under review increased by 17.1% year on year to ¥13,668 million and operating profit increased by 2.3% year on year to ¥3,378 million.

Sales (Millions of yen) ■ Interim □ Full year

13,668

11,676

5,827

6,325

15,000

10,000

5,000

0

77th 78th

Other Products

Sales ¥4,903million (down 7.8% year on year)

2.59%

The other products segment includes micro switches and instruments for connectors.

Segment sales for the year under review decreased by 7.8% year on year to ¥4,903 million and an operating loss of ¥97 million was recorded, compared to an operating profit of ¥728 million in the previous fiscal year.

Sales (Millions of yen) ■ Interim □ Full year

5,321

4,903

2,609

2,838

6,000

4,000

2,000

0

77th

78th

FH81 Series

In order to address issues of size and usability and to respond to rising demand for connectors that can be automatically mated for automated set assembly, we have developed the one action FPC connector FH81 Series of connectors, which achieve high retention force despite their low profile.

Having the same size and upper and lower contacts of the back-flip FH34 Series, which has been a hit product for many years, this series increases the number of one-action options and enhances design flexibility.

While being of a size that makes it useful for downsizing and thinner applications, the one action design eliminates concerns about actuator detachment or breakage, and the automatic mating feature reduces human error during assembly.

The structure of the actuator also achieves high FPC retention force despite the low pin count.

Smartphone and Consumer Equipment

DF51B Series (compound branch adapter)

The insides of semiconductor production equipment, conveyer equipment, mounters, and other general industrial equipment that incorporates large numbers of sensor clusters are crammed with cabling, which has led to demand for reduced wiring.

To resolve this issue, as an addition to the DF51 Series of 2 mm pitch signal connectors, we developed a "compound branch adapter" whose structure combines a branch terminal (power) and a non-branch terminal (signal).

This enables the sharing of power lines to multiple sensors, and is effective in reducing wiring and cutting total cost.

In cases where branching boards are currently used to reduce wiring, they can be replaced by compound branch adapters, which contributes to significant reductions in both size and cost.

General Industrial Equipment

AU1 Series

We have developed the AU1 Series as connectors capable of dealing with high-speed, high-capacity communication that has come to be used in vehicles as a result of the evolution of automotive infotainment systems.

With the number of automotive applications making use of USB transmission mechanisms on the increase, we took the internal structure of our CX Series, which is widely used as a USB Type-C connector by many manufacturers in Japan and overseas, and made it capable of higher speed signal transmission.

In addition, we enhanced its robustness with the external structure of the shell and housing, enabling it to meet USCAR2/ USCAR-30 specifications for environmental and mechanical performance (resistance to vibration, heat, and so on), thus fulfilling automotive quality standards. It is also equipped with Connector Position Assurance (CPA), which means that it

achieves a high level of contact reliability.

Automotive

8

◎Domestic bases

TOHOKU HIROSE ELECTRIC CO., LTD.

Tohoku Advanced Technology Center

Kikuna Office

ICHINOSEKI HIROSE ELECTRIC CO., LTD.

KORIYAMA HIROSE ELECTRIC CO., LTD.

Gotanda Office

Head Office

Kansai Branch

Fukuoka Sales Office Kariya Sales Office

Hiroshima Sales Office Utsunomiya Sales Office

◎Overseas bases

HIROSE ELECTRIC EUROPE B.V.

Hirose Electric (China) Co., Ltd.

HIROSE ELECTRIC (SUZHOU) CO., LTD.

HIROSE KOREA CO., LTD.

HIROSE ELECTRIC INDIA. PVT. LTD.

HIROSE ELECTRIC (DONGGUAN) CO., LTD.

HIROSE ELECTRIC (U.S.A.), INC.

HIROSE ELECTRIC MALAYSIA SDN. BHD.

HIROSE ELECTRIC TAIWAN CO., LTD.

HIROSE ELECTRIC SINGAPORE PTE. LTD.

9 P.T. HIROSE ELECTRIC INDONESIA

HIROSE ELECTRIC HONG KONG CO., LTD.

HIROSE ELECTRIC HONG KONG TRADING CO., LTD.

Corporate Data

Company Profile (As of March 31, 2025)

Trade name HIROSE ELECTRIC CO., LTD.

Date of incorporation June 15, 1948

Number of employees Consolidated: 4,878 (excluding part-timers) Capital stock ¥9'404'379'401

Directors (As of June 24, 2025)

Chairman of the Board Kazunori Ishii

President and Representative Director

Stock Information (As of March 31, 2025)

Total number of shares issued 33,919,908 shares (Excluding 1,774,061 shares of treasury shares)

Number of shareholders 3,709

Major Shareholders (Top 10)

Note:

Shin Kamagata

Director Shu Obara

Director Hiroshi Satoh

Director Yoshihiro Gunji

Director Kosei Matsunaga

Director Sang-Yeob Lee

Outside Director Tetsuji Motonaga

Outside Director Masanori Nishimatsu

Outside Director Seiji Sakata

Outside Director Yoko Kagami

Director (Standing Audit & Supervisory Committee Member) Satoshi Mori Outside Director (Audit & Supervisory Committee Member) Kentaro Miura Outside Director (Audit & Supervisory Committee Member) Kenji Takashima Outside Director (Audit & Supervisory Committee Member) Harumi Ishida

Note: In addition to the 10 major shareholders above, the Company owns 17,740 hundred treasury shares .

Distribution of Shares

Distribution of Shares by Shareholder Type

Individuals, etc./ 3,096 persons 31,921 hundred shares (8.94%)

Financial institutions/51 persons 121,320 hundred shares (33.99%)

Outside Directors Tetsuji Motonaga, Masanori Nishimatsu, Seiji Sakata, Yoko Kagami, Kentaro Miura, Kenji Takashima, and Harumi Ishida are Independent Officers who are unlikely to have any conflicts of interest with general shareholders, and are required to be designated by the Tokyo Stock Exchange.

Accounting Auditor KPMG AZSA LLC

Foreign corporations, etc./368 persons 137,088 hundred shares (38.41%)

Securities companies/32 persons 10,949 hundred shares (3.07%)

Other corporations/162 persons 55,658 hundred shares (15.59%)

10

Recommended Contents of the HIROSE Website

1. Published the Integrated Report 2024

2. Awarded the "Director-General's Prize For Factories, Etc. With Excellent Energy Management" by the Tohoku Bureau of Economy, Trade and Industry

3. Released the CONNECTOR SELECTOR 2025

By scanning the QR code, you can access the website!

* "QR Code" is a registered trademark of DENSO WAVE INCORPORATED.

Shareholder information

Fiscal term From April 1 of a calendar year to March 31 of the next calendar year

Ordinary General Meeting of Shareholders

June every year

Record date Ordinary General Meeting of Shareholders: March 31 every year Year-end dividend: March 31 every year

Interim dividend: September 30 every year

(As required, another record date may be decided with prior public notice.)

[Share-related notifications and inquiries regarding change of address, etc.]

Shareholders who have accounts at securities companies are requested to direct their notifications and inquiries regarding change of address, etc., to their respective securities companies where shareholders have their accounts. Shareholders who do not have accounts at securities companies are requested to call the telephone number as stated below.

Number of shares in one voting unit

100

Method of public notices The Company's Web site below shall be used for its public notices.

〈https://www.hirose.com/corporate/ja/ir〉

If an electronic public notice should fail due to accident or any other unavoidable

circumstances, the Company shall post a public notice in the Nihon Keizai Shimbun.

Shareholders' register manager and account management institution for special accounts

Handling office of shareholders' registry administrator

(Mailing address)

Phone:

Sumitomo Mitsui Trust Bank, Limited

4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Securities Agency Department, Sumitomo Mitsui Trust Bank, Limited

4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Securities Agency Department, Sumitomo Mitsui Trust Bank, Limited

8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063 0120-782-031 (Toll free, available only in Japan)

URL: https://www.smtb.jp/personal/procedure/agency/

[Special accounts]

For shareholders who was yet to have used JASDEC (Japan Securities Depository Center, Inc.) by the share certificate dematerialization date, the Company opened a transfer account (hereinafter "special account") at Sumitomo Mitsui Trust Bank, Limited, as mentioned above, which serves as the shareholders' registry administrator. You are requested to use the above telephone number when making inquiries about the special account and notifications of matters such as change of address.