Quarterly Financial Results
for the Nine-month Period
Ended December 31, 2018

I. Financial Results and Outlook
The nine-month period ended December 31, 2018（April 1, 2018 - December 31, 2018）

1

I. Summary of Financial Results
Overview
Hirata worked harder for receiving new orders on electric vehicle business and also developing new customers.
The situation, however, was a sharp downturn in organic EL related business investment which used to be at a highlevel and automotive manufacturers also have slowed down investments. In consequence, the sales and profit
decreased.

Apr. 2017 - Dec. 2017
(Units in millions of Yen)

Apr-Dec
2017

Apr-Dec
2018

Apr. 2018 - Dec. 2018

66,944(Units in millions of Yen)

69,448YoY Change
55,107

Sales

66,944

55,10745,668△17.7%

48,05635,042

Operating
Income

7,859

4,974

△36.7%

Ordinary
Income

7,717

5,084

△34.1%

Profit attributable toowners of the parent
company

5,347

3,630

△32.1%
Sleas

Orders Received

Orders Outstanding

2I. Breakdown of Sales by Business Unit
100%

8.8%

21.9%

10.9%

9.0%
16.9%

26.3%

13.2%

11.4%

19.2%

28.8%
31.4%

13.8%

17.7%

13.6%

24.8%

9.4%

31.5%

4.6%

2.3%

18.8%

18.7%

23.9%

40.1%

39.6%

34.6%

37.6%

37.1%

39.2%

17／03

18／03

19／03

30.1%

26.6%

27.7%

3.5%

30.2%

20.4%

43.4%
21.1%

38.0%

41.9%

24.9%
12.7%

14.0%

10／03

11／03

30.1%

30.3%

15／03

16／03

0%
12／03

Automotive Production
Semiconductor Production
Others

13／03

14／03

FPD(Flat Panel Display) Production
Home Appliances Assembly and Other Facilities*The figure of FPD related business was integrated into semiconductor related business since April 2012.

3Q3I. Factor Analysis on Changing Operating Income

Decreasein sales△2.88bn△2.5bn+7.85bn+70mil
Improvement
in COGS margin△450mil

Increasein SG&A+4.97bn

Apr. 2017 – Dec. 2017
Operating Income

Apr. 2018 – Dec. 2018
Operating Income
4I. Balance Sheet
Balance Sheet
Please note that the figures of FY2018 and FY2019 Q3 are changed based on accounting standards for tax effect accounting.

AssetsCurrent Assets

Apr. 2017 –Mar. 2018

71,467

Apr. 2018 –Dec. 2018

66,777

YoY Change△4,689Fixed Assets

23,86325,018＋1,154

Tangible
Fixed Assets
Intangible
Fixed Assets
Investments
and other assets

17,376

19,263＋1,886814

650△1645,672

5,104

△568

Total Assets

95,33091,795△3,535

Liabilities(Units in millions of Yen)

Apr. 2017 –Mar. 2018

Apr. 2018 –Dec. 2018

Y to Y Change

Current Liabilities

37,48539,436＋1,950

Fixed Liabilities

11,262

6,373△4,889Total Liabilities

48,74845,809△2,939Total Net Assets

46,582

45,986△595

Capital Ratio

48.3%

49.5%

＋1.2Point

Net Assets

Main impact factors
Liabilities/Net Assets

AssetsCash/deposit with banks△3,581

Treasury stock△2,438Trade receivables△3,145

Accrued expenses payable△966

Buildings and structures＋2,577

Advances received△9005

I. Assumed exchange rate, etc.
Assumed exchange rate
(Units in Yen)

Assumed exchange rate

From Apr. 1, 2018 to Dec. 31, 2018
(Actual rate)

From Oct. 1, 2018
(Applied assumption rate)

Exchange rate（against USD)

107.84100.00Transition of our stock prices(Units in Yen)

Transition ofour stock prices

Apr. 1, 2018 to Mar. 31, 2019

Apr. 1, 2016 toMar. 31, 2017Apr. 1, 2017 toMar. 31, 2018

Highs

9,560

14,720

8,930

7,670

6,390

Lows

2,275

8,030

6,300

5,430

4,285

End of period

9,010

9,780

6,970

6,040

4,905

OctoberNovember

December

PER／PBR／ROE
PER／PBR／ROE

Apr. 1, 2016
to Mar. 31, 2017

Apr. 1, 2017
to Mar. 31, 2018

Apr. 1, 2018
to Dec. 31, 2018

PER（x）

14.43

15.26

－※

PBR（x）

3.12

2.26

1.12

ROE（％）

24.30

18.18

－※

Please note that there is no information on PER & ROE due to incomparable numbers on the basis of quarterly profit.

6I. Sales, Orders Received and Outstanding by Business Unit
(Units in millions of Yen)

Business Unit

Sales

Orders
Received

OrdersOutstanding

Apr 2017– Dec 2017

Apr 2018– Dec 2018

YoY
ChangeAutomotive

23,47921,579△8.1%

Semiconductor

28,71019,047△33.7%

Home appliances & others

11,373

13,191＋16.0%

Others

3,381

1,288

△61.9%

TOTAL

66,944

55,107△17.7%

Automotive

21,30721,994＋3.2%

Semiconductor

31,84813,383△58.0%

Home appliances & others

14,462

8,649△40.2%

Others

1,829

1,641

△10.3%

TOTAL

69,44845,668△34.2%

Automotive

23,213

17,872△23.0%

Semiconductor

16,051

10,231△36.3%

7,966

6,238

△21.7%

Others825699△15.3%

TOTAL

48,05635,042△27.1%

Home appliances & others

7I. Global Business Overview
Sales by region

China/TaiwanEurope
South-east Asia

HEE（Germany）

North America

HAS, HME（Shanghai, China）
Concerns about effects
caused by economic slowdown
Meanwhile automotive and home
appliances business going well

Sales growth inHET（Thailand）
EV related business
HFM（Malaysia）

HCA(U.S.A）
Automotive businessgoing well as planned
while having a roughtime on profits
HEM（Mexico）
Covering automotive
business collaboratingwith HCA

HCT（Taiwan）
LCD business performing strong

HSL（Singapore）
Flat sales inhome appliances business(Units in millions of Yen)

Japan

Asia

North America

18/3
3Q

19/3
3Q

18/3
3Q

19/3
3Q

18/3
3Q

19/3
3Q

Sales

56,48742,191

5,523

5,929

4,445

4,743

Operating
Income

7,184

4,113

354

1,099

562

△341

Europe
18/3
3Q

TOTAL

19/3
3Q

18/3
3Q

19/3
3Q

489

2,243

66,944

55,107

△1831

8,082

4,902

Please note that total figure of operating income is before consolidation adjustments between regional segments.

8I. Topics – Business update on Organic EL/EV
Business update on Organic EL/EV(Units in millions of Yen)Apr–Dec 2017
Amount oforders received

Sales

Apr–Dec 2018
Amount oforders received

Sales

Organic EL related business

18,027

17,161

2,071

5,583

Electric vehicle related business

2,078

5,926

4,598

3,867

●Organic EL related business
The sales of organic EL related business accounted for about 29% of its total
semiconductor sales, which was the decrease of 68% over the previous year. The
incoming orders was decreased by 89% over the previous year.
●Electric Vehicle related business
The sales of EV related business accounted for 18% of its total automobile sales, which
was the decrease of 35% over the previous year. The incoming orders was increased by

121% over the previous year.
9I. Topics – Client Accolade
Hirata/IIJ won the grand prize for application and service category
Hirata is honored to announce that we won the grand prize in application and service category atImpress DX Awards 2018. This award is for a solution called Cognitive Factory Hirata Corporation
and Internet Initiative Japan Inc. have co-developed. The reason behind we receiving the award is

we have operations across the globe and the Cognitive Factory is expected to merge Japanesemanufacturing and overseas latest vision and framework.
Hirata continues to collaborate with IIJ and focus on providing high-value-added production
equipment making use of the Cognitive Factory.

The ceremony was held on January 31.
10Ⅱ Market Trend andForecast for FYE March 2019
The nine-month period ended December 31, 2018（April 1, 2018 - December 31, 2018）11II. Forecasts for FYE March 2019: Earnings Forecast
Hirata announced the revised sales estimate on November 13, 2018.

(Units in millions of Yen)

The figures announced on

The figures announced on

2018/5/10

2018/11/13

FY2019/3(Forecast)

FY2019/3(Forecast)

94,16395,00083,000Automotive

34,95540,00035,000

Semiconductor

37,33830,00027,000Home appliances &others

17,56922,00019,000

4,299

3,000

2,000

FY2018/3(Actual)
Sales

OthersOperating Income(margin)

9,371(10.0%)

6,500（6.8％）

5,200（6.3％）

Ordinary Income (margin)9,247(9.8%)

6,400（6.7％）

5,300（6.4％）

Profit attributable to ownersof the parent company(margin)

6,666(7.1%)

4,400（4.6％）

3,800（4.6％）

Measures for achieving our business targets


For automotive related business, Hirata tries harder to receive further orders in electric vehicle sector in addition to power train
business such as transmission.

The orders for vacuum equipment used for OLED will decrease. Hirata projects business of IoT and silicon wafer transfer
equipment for self-driving technology will grow.

Hirata participates into growing markets aggressively, structures its production system more efficiently, and strengthens its
revenue base.

12II. Forecasts for FYE March 2019: Amendment of dividend Forecast
Dividends and dividend ratio per share

Dividends per share(YEN)

FYE Mar 2015

FYE Mar 2016

FYE Mar 2017

FYE Mar2018

15.00

30.00

100.00Including memorial

125.00FYE Mar 2019
(Estimate)125.00dividend of 25.00

Dividend ratio（％）

16.4

17.5

16.0

19.5

35.0

Note : Dividend ratio is on a consolidated basis.

Dividend forecast
At Hirata, we consider various factors when making dividends payments, such as business performance,management and financial environments. With our basic principle of making stable and continuous dividends toour shareholders, while at the same time preserving internal reserves to prepare funds for business expansions
and maintain solid business foundation, we recognize that it is important that dividend payments and policies
need to be at times flexible and consistent with business performances.
Hirata plans to distribute JPY125.00, which is the same as the last year, for the fiscal year ending March 31, 2019.

13

II. Forecasts for FYE March 2019: Business Environment
Automotive-related businessIn terms of automobile sales, the US market remains flat and the Chinese market has slowed down a bit.
Under the situation, developing countries have been leading the global automobile sales. Consumers’
incentive to purchase automobiles before consumption tax increase are expected in Japan. We havereceived orders for electric vehicle especially from Japanese and European manufacturers and work harder
to receive orders in this category continuously.

Semiconductor-related businessWe see a slowdown in the semiconductor market and business investment for organic EL for display also
became weak while demands from automobiles and industries have been growing. The delays in sales planwith organic EL resulted in decrease in our sales and profits. We expect the organic EL market will expand

again while working harder to receive more orders for wafer transfer and LCD related business.

Home appliances and other facilities business
Our primary customers, the high-performance home appliance producers, have temporarily slowed down
investments. We are working closely with our clients to ensure future orders once the investment activities
come back. We also expect new orders from tire producers.

14

Ⅲ. Reference Data
The nine-month period ended December 31, 2018（April 1, 2018 - December 31, 2018）15

III. Quarterly Trends of Sales by Business Unit
Sales by Business Unit

(Units in millions of Yen)

28,424586
5,420

Automotive
Semiconductor
Home appliances & others
Others27,21825,931

918

1,261
4,058

19,594

979
4,016

9,700

6,196

21,419
1,140
3,297

9,879

8,627

14,621

10,4784Q
2017/3

20,2513924444,467

5,626

450
3,097

12,716

20,234

8,353

6,710

4,720

8,663

9,459

2Q

3Q

7,617
11,475

10,731

1Q

5,944

6,803

2Q

3Q
2018/3

3,456

4Q

1Q

2019/316

III. Quarterly Trends of Received Orders by Business Unit
Received Orders by Business Unit

24,288604
4,546

23,912655
5,688(Units in millions of Yen)

22,623

22,913624

549

23,643438

19,378

3,433
5,340

9,011

8,533

9,116
12,542

Automotive
Semiconductor
Home appliances & others
Others

310
3,156
4,424

10,773
8,472

13,14813,141809

521

2,713

2,779

3,339

4Q

2017/3

11,488

10,396

10,019
5,026

5,885

1Q

2Q
2018/3

6,286

5,720

3Q

5,620

4Q

1Q

2Q

4,220

3Q

2019/317

III. Quarterly Trends of Orders Outstanding by Business Unit
Outstanding Orders by Business Unit

45,5532,377
4,877

43,534
1,771
6,507

44,738

825

1,416

7,966

7,830

44,481

206

346

10,84015,87025,385
19,68019,620

1Q

2Q

622
9,085

12,703

6,238

23,112
17,872

17,458

3Q

4Q

699

10,231

25,48923,21335,042

9,332

15,8962018/3

Automotive
Semiconductor
Home appliances & others
Others42,152

10,781
16,051

15,5752017/349,23948,056

12,912

4Q(Units in millions of Yen)

1Q

2Q

3Q

2019/318

III. R&D, CAPEX, Depreciation and Amortization(Units in millions of Yen)

2,501

Apr. - Dec., 2017
Apr. - Dec., 2018

1,140
808

789

879

585

R&D Expenses

Capital Expenditures

Depreciation & Amortization
19

III. Key Financial KPIs/Indicators
Account Receivables/Turnover period(Units in millions of Yen)

49,615(Days)

45,64244,26043,573

210
178

182

18/3 3Q18/3 4Q

Inventory/Turnover period

19/3 1Q

A/R Turnover Period

199

19/3 2Q

12,69912,076

9,175
200

48

464855

19/3 3Q

18/3 3Q

18/3 4Q

19/3 1Q

19/3 2Q

Turnover Period

Inventory

10,38650

19/3 3Q

Turnonver Period

Total shareholder’s equity/Equity ratio(X)(Units in millions of Yen)

0.52

(Days)

14,44546,469Debt with interest/Debt equity ratio/Net debt equity ratio

23,352(Units in millions of Yen)

20,9740.46

24,081

20,707 21,463

0.53

0.45

0.47
0.31

0.20

0.22

0.25

0.23

18/3 3Q

18/3 4Q

19/3 1Q

19/3 2Q

Debt with interest

D/E ratio

19/3 3Q
Net D/E ratio(%)

45,097 46,091 45,660 45,662 45,448

45.7

18/3 3Q

48.3

47.0

18/3 4Q

19/3 1Q

Total shareholder's equity

49.3

49.5

19/3 2Q

19/3 3Q

Equity ratio

Please note that accounts receivable turnover period and Inventory turnover period list its average number of each quarter.

20

Cautionary statement with this document

Forecasts and other forward-looking statements presented here
represent judgment we made based on information available at thetime this presentation was prepared, and involve risks oruncertainties, such as economic conditions, competition with rival
companies, and exchange rate. Readers should understand,therefore, that actual results may be significantly different fromforecasts referred to or stated here due to changes in businessenvironments and other factors.

21