Hirose Electric : Transcript of Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 2022

HIROSE ELECTRIC CO., LTD.

Q1 Financial Results Briefing for the Fiscal Year Ending March 2022

August 2, 2021

Event Summary

[Company Name]	HIROSE ELECTRIC CO., LTD.
[Company ID]	6806‐QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Q1 Financial Results Briefing for the Fiscal Year Ending March 2022
[Fiscal Period]	FY2021 Q1
[Date]	August 2, 2021
[Time]	10:30 - 11:25
	(Total: 55 minutes, Presentation: 21 minutes, Q&A: 34 minutes)
[Number of Speakers]	2
	Shin Kamagata	Corporate Board Director, Group President,
		Administration Group
	Hideo Suzaki	Manager, IR Office, Administration Group

1

Presentation

Suzaki: We will now begin the presentation of HIROSE ELECTRIC CO., LTD.'s financial results. Thank you very much for participating today.

My name is Suzaki of HIROSE'S ELECTRIC's IR Office, and I will serve as moderator today. We are holding this event online again, thank you very much.

First of all, I would like to give a brief explanation of this online meeting. You can download today's document as a PDF file from the link at the bottom of the screen. You also find the link for the financial results summary disclosed at the TSE on July 30.

You can also find the press release on HIROSE ELECTRIC's IR page.

I would like to add something about how to ask a question. If you have any questions, please type them in the participation screen. I will read them out and we will respond to each question. The Q&A session will be held after the financial results explanation.

Please note that if we receive similar questions from several people, we may answer them all at once.

First, Kamagata, Corporate Board Director, Group President of the Administration Group, will make a speech, and then I will explain the first quarter financial results based on the material. We will be taking questions in the remaining time. The meeting is scheduled to close at 11:30. Thank you for your cooperation.

First, Kamagata will say a few words.

Kamagata: My name is Kamagata, and I am participating in the briefing for the first time. As of today, August 2, Kanagawa Prefecture, where our company's head office is located, has declared a state of emergency following Tokyo. We regret that we are not able to meet with you in person as the event is held online. Thank you for your cooperation today.

2

Suzaki: Now, I will give an explanation based on today's material.

Please refer to page 3. This is a performance summary.

In the first quarter of FY2021, both orders and sales reached a record high for the quarter, due in part to increased demand for general industrial equipment and firm demand for automotive and consumer products. Sales were JPY38.4 billion and operating profit margin was 23.7%. Orders were exceptionally high at JPY49.8 billion. This was largely due to the strength of our industrial machinery business, as I will explain later on.

3

Please turn to page 4. This is the quarterly trend of sales and operating profit.

This quarter, we are seeing more growth in the first quarter compared to the same period last year, as last year's level was low due to COVID‐19.

4