Hirose Electric : Transcript of Financial Results Briefing for the Fiscal Year Ending March 2023

HIROSE ELECTRIC CO., LTD.

Financial Results Briefing for the FY ended March 2023

May 9, 2023

Event Summary

[Company Name]	HIROSE ELECTRIC CO., LTD.
[Company ID]	6806‐QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Financial Results Briefing for the FY ended March 2023
[Fiscal Period]	FY2023 Q4
[Date]	May 9, 2023
[Venue]	Webcast
[Number of Speakers]	4
	Kazunori Ishii	President and Representative Director
	Shin Kamagata	Corporate Board Director, Group President,
		Administration Group
	Rie Yamada	Manager, Corporate Communication &
		Investor Relations Office
	Satoshi Ashida	Corporate Communication & Investor
		Relations Office

1

Presentation

Yamada: Now that the time has come, we would like to begin the financial results briefing of HIROSE ELECTRIC CO., LTD. Thank you for joining us today.

On our side, we have Mr. Ishii, President; Mr. Kamagata, Group President of Administration Group;; Mr. Ashida; and I, Yamada, of Corporate Communication & Investor Relations Office, and I will be facilitating today's briefing.

Please note that this event will be held online.

Let me begin by explaining the briefing. These are the financial results presentation materials and FY2023 medium to long‐term growth strategy. Please download the PDF file from the link on the screen and read it at your hand.

Similarly, there is a link to the earning digest disclosed on the TSE yesterday, May 8. Other disclosure materials, such as the Notice of Change of Directors and Executive Officers, can be viewed on the IR page of our website.

We will tell the page numbers when we explain, and we ask to flip the pages as we go.

Next, the question & answer session will be held in an interactive manner similar to face‐to‐face meeting, with participants speaking via a telephone line and we responding to their questions. If you have any questions, please call the phone number provided in the invitation email for during the questions & answer session. We will inform you in the order in which questions are received, and we would appreciate your cooperation in asking questions in turn.

I would like to begin with a greeting from President Ishii, followed by an explanation of the financial results for FY2023 based on the materials provided.

In the second half of the presentation, the business forecast will be given by Mr. Kamagata, Group President of Administration Group, followed by President Ishii's explanation of the medium to long‐term growth strategy, which has been updated for FY2023.

In the time remaining, we will take your questions as previously announced. We plan to end at 11:30 AM.

Now, Mr. Ishii would like to explain.

Ishii: Good morning, everyone. Once again, this is Ishii of HIROSE ELECTRIC. Thank you very much for your attendance today.

A month has passed since the start of the new fiscal year, and there is a feeling that the recovery trend at hand is a bit weak. We feel that we need to keep closer eyes on the market and customer trends, and keep a close watch on the current situation and the future.

So, it will be short time but I would appreciate your attention to the financial briefing of HIROSE ELECTRIC, including any advice and questions you may have. That's all from me.

2

Yamada: Next, I, Yamada will explain the financial results based on today's materials.

Please look at page three. This is the summary of the business results. Sales were JPY94.7 billion in H1 and JPY88.52 billion in H2, for a total of JPY183.22 billion, due to growth in sales to the general industrial equipment market and the automotive market. Operating profit was JPY27.17 billion in H1, approximately JPY19.58 billion in H2, and JPY46.75 billion for the full year, a record high for both sales and profit.

Compared to the previous year, sales increased 11.9%, operating profit increased 14.7%, and the operating margin was 25.5% for the full year.

However, as reported earlier, orders received declined especially in H2, down 18.5% from the previous year.

3

Continued on page four. A graph is showing quarterly sales and profit trends. In Q4 of FY2022, sales were JPY41.06 billion, operating profit was JPY7.08 billion, and operating margin was 17.3%.

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