Hirose Electric : Financial Results for FY2023 2nd Quarter (Apr 2023-Sep 2023)

Hirose Electric Business Results for the Second Quarter of FY2023

Business Results for the Second Quarter of FY2023

November 2, 2023

Hirose Electric Co., Ltd.

〔6806〕

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 you for your understanding.

*Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "may" or "might" and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. These statements are based on management's assumptions and beliefs in light of the information currently available to it.

Summary of the business results (FY2023.1H From April 2023 to September 2023)

• In FY2023.2Q, sales for Automotive/Mobility-related and Smartphone segments increased, however, demand of General Industrial and Consumer/Mobile Equipment segments were weak continuously. In FY2023.1H sales was -12.5% YoY and Operating profit was -36.7% YoY. Operating profit ratio was 20.7% in the 1H.

										(Yen in hundred millions)
			FY2022					FY2023				YoY
	1Q		2Q		1H	1Q		2Q		1H	FY2023.1H /
	（2022.Apr-		（2022.Jul-		（2022.Apr-	（2023.Apr-		（2023.Jul-		（2023.Apr-	FY2022.1H
	Jun）		Sep）		Sep）	Jun）		Sep）		Sep）
Orders	488.2	427.0	915.2	368.6	385.8	754.4		-17.6%
Sales	465.7	481.3	947.0	404.5	424.6	829.1		-12.5%
Operating	129.7	142.0	271.7	90.6	81.3	171.9		-36.7%
profit
Operating
27.9%	29.5%	28.7%	22.4%	19.2%	20.7%	-8.0pt
profit ratio

© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

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Changes in sales and operating profit （FY2022.1Q-FY2023.2Q / Consolidated basis）

© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

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Business Results for FY2023.1H

	FY2022.1H	FY2023.1H		Increase		Increase
(Yen in hundred millions)		/ Decrease		/ Decrease Ratio
(Sep 30, 2022)	(Sep 30, 2023)		(YoY)		(YoY)
Sales	947.0	829.1	-117.9			-12.5%
COGS Ratio	50.6%	55.6%	+5.0
SGA Ratio	20.9%	23.1%	+2.2
Operating Profit	271.7	171.9	-99.8			-36.7%
(%)	28.7%	20.7%	-8.0
Profit before tax	292.5	196.8	-95.7			-32.7%
(%)	30.9%	23.7%	-7.2
Net profit	206.4	126.0	-80.4			-39.0%
(%)	21.8%	15.2%	-6.6
Total Assets	4,012.8	4,115.0
		FY2022 2Q	FY2023 2Q
Shareholder's
85.9%	88.9%		1US$	133.97 yen	141.00 yen
Equity Ratio
	１€	138.73 yen	153.39 yen
	594.23 yen	365.87 yen
Earnings Per Share		100 won		10.32 yen	10.74 yen
								5
	© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

FY2023.1H Major Changes

Sales

	117.9 hundred million yen Decreased	General Industrial: - 65
	Consumer/Mobile Equipment: - 62
	（947.0 → 829.1）
	COGS Ratio	Variable Expense Ratio: 37.5% → 39.1%
	5.0 pt Deteriorated	Depreciation Ratio: 7.1％ → 8.1％
	Labor Cost Ratio: 6.6% → 7.6%
	（50.6% → 55.6%）
	SGA Ratio
	2.2 pt Deteriorated	197.8 → 191.7 (Decreased by 6.2）
	（20.9% → 23.1%）
	Financial income / costs	Exchange Gain or Loss :+13.2 → +8.8
	4.1 hundred million yen Improved
	Interest received and others :+5.6 → +12.4
	（+20.8 → +24.9）

© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

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FY2023.1H YoY Variation Analysis

(Yen in hundred millions)

FY2022. 1H Actual

Sales

947.0

Operating

Profit

271.7

1. Profit before
   tax

28.7%	292.5

(%)

30.9%

Exchange rate

Labor cost increase

Decrease in freightage and packing expenses

Increase in Loss on retirement of fixed assets

Deterioration of Cost rate

Decrease in the product

36.1

-154.0

24.6

-1.3

11.6

-5.5

-41.5

-87.8

20.4

-1.3

11.6

-5.5

-41.5

-79.5

Total amount of changes

-117.9

-99.8

-95.7

FY2023. 1H Actual

829.1

171.9

20.7%

196.8

23.7%

© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

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Assets

Consolidated Balance Sheet (1)

					(Yen in hundred millions)
Account	Mar 31, 2023	Sep 30, 2023	Increase/		Remark
Decrease
Cash and cash	880.3	903.8	+23.5		Transferred from time deposit +100
equivalents		Consumption tax refund +28
				Income tax paid -77
Trade and other
419.3	431.8	+12.5		Increased mainly by influence of weaker yen
receivables
					Influence of weaker yen +12
Inventories	277.3	268.4	-8.9
	Excluding the influence of weaker yen -21
Other financial					Cancelled time deposit for dividend and payment for
1,546.8	1,504.2	-42.6
assets		Koriyama new factory -100
Property, plant and					Koriyama new factory and Advanced Technology
638.0	772.5	+134.5
equipment		Center +71
				Korea factory expansion +29
Right-of-use asset	52.8	53.5	+0.7
Others	199.1	180.8	-18.3		Consumption tax refund -28
Total	4,013.6	4,115.0	+101.4
Total of cash in bank	1,854.0	1,821.4	-32.6		8
		© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

Liabilities Shareholder's Equity

Consolidated Balance Sheet (2)

						(Yen in hundred millions）
Account	Mar 31, 2023	Sep 30, 2023		Increase/		Remark
	Decrease
Payables and other debt	208.0	141.3		-66.7		Shortening terms of payment in Japan
Lease liabilities	54.8	55.9		+1.1
Income Taxes Payable	82.1	55.2		-26.9		Payment of corporate tax
						Increase of deferred tax liability +26,
Others	170.1	203.7		+33.6
		Increase of provision for bonuses
Total	515.0	456.1		-58.9
Capital stock and Capital	206.0	205.9		-0.1
surplus
						Net profit ＋126
Retained Earnings	3,452.0	3,342.7		-109.3
		Dividends paid -96
						Cancellation of treasury shares -139
Treasury Shares	-398.4	-258.5		+139.9		Cancellation of treasury shares ＋139
						Foreign currency translation adjustment
Others	239.0	368.8		+129.8
		+116
Total	3,498.5	3,658.9		+160.4
Total Liabilities and	4,013.6	4,115.0		+101.4
Shareholder's Equity
					9
	© 2023	HIROSE ELECTRIC CO., LTD. All rights reserved.

Changes in Capital Investment and Depreciation (Consolidated basis)

(Yen in hundred millions)

(*Excluded: Investment in land, building, software)

© 2023 HIROSE ELECTRIC CO., LTD. All rights reserved.

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