Hirose Electric : Transcript of Financial Results Briefing for the 1st Quarter of the Fiscal Year Ending March 2024

HIROSE ELECTRIC CO., LTD.

Q1 Financial Results Briefing for the Fiscal Year Ending March 2024

August 2, 2023

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 2024
[Fiscal Period]	FY2023 Q1
[Venue]	Webcast
[Number of Speakers]	4
	Shin Kamagata	Corporate Board Director, Group President,
		Administration Group
	Rie Yamada	Manager, Corporate Communication &
		Investor Relations Office
	Satoshi Ashida	Corporate Communication & Investor
		Relations Office
	Hideo Suzaki	Corporate Communication & Investor
		Relations Office

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Presentation

Yamada: Now that the time has arrived, HIROSE ELECTRIC CO., LTD. will now begin the financial results briefing. Thank you for joining us today.

On our side, Mr. Kamagata, Corporate Board Director, Group President, Administration Group, and I, Yamada, Suzaki, and Ashida of the Corporate Communication & Investor Relations Office, will be the facilitators. Please note that this event will be held online again this time.

Let me begin by explaining this financial briefing as usual. Please download the PDF file of today's financial results presentation from the link on the screen and have it at your hand. Similarly, there is a link to the earnings report disclosed on the TSE yesterday, August 1. Other disclosure materials, such as the Notice of Revision of Earnings Forecasts, can be viewed on the IR page of our website. We will say the page numbers when we explain the materials, so please scroll through the pages on your own.

Next, the Question & Answer session will be held in an interactive manner similar to a face-to-face meeting, with participants speaking via a telephone line and our company responding to their questions. We will inform you of your turn in the order of receipt, so please ask questions in order.

I will begin by explaining the financial results for Q1 of the fiscal year ending March 31, 2024 based on the materials. The update on H2 of the forecast will be provided by Mr. Kamagata, the Corporate Board Director, and Group President, Administration Group. We will take your questions in the remaining time, as mentioned earlier. We plan to end the briefing at 11:30 am. We appreciate the cooperation of all participants.

I will now explain based on the materials.

Please take a look at page three. Here is the summary of the business results.

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Demand recovery in general industrial and consumer/mobile equipment was particularly weak, resulting in sales of JPY40.45 billion, a slight decrease of minus 1.5% from the previous quarter. Compared to the same period last year, this is minus 13.1%. Operating profit was JPY9.06 billion, up 27.9% from the previous quarter.

Orders received increased 16% over the previous quarter, giving the impression that the bottom has been reached and the market has turned around. Nevertheless, it is not a strong recovery still, and we feel that it is weaker than our assumption at the beginning of the period.

Continued on page four, this is a graph showing quarterly sales and profit trends.

In Q1 of FY2023, sales were JPY40.45 billion, operating profit was JPY9.06 billion, and operating margin was 22.4%.

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On page five. This is a summary of the business results.

In Q1 of FY2023, sales were JPY40.45 billion, down 13.1% YoY. Operating profit was JPY9.06 billion, minus 30.2% YoY, and operating margin was 22.4%. Income before income taxes was JPY10.65 billion, net profit was JPY6.02 billion, total assets were JPY403.86 billion, equity ratio was 88.3%, and net income per share was JPY174.89. Actual exchange rates were JPY137.37 to USD1, JPY149.47 to EUR1, and JPY10.46 to KRW100.

The next page, page six, summarizes the major changes from the previous year.

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