Year-End Financial
Results for
Fiscal Year Ended
March 31, 2019

I. Financial Results and Outlook
The Fiscal Year ended on March 31, 2019（April 1, 2018 through March 31, 2019）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.
(Units in millions of Yen)

Apr. 2017 –Mar. 2018(Actual)Sales

Operating
Income94,1639,371

Apr. 2018 –Mar. 2019 YoY Change(Actual)77,302

6,249

94,163(Units in millions of Yen)

93,091

Apr.2017 - Mar.2018

77,302

Apr.2018 - Mar.2019

62,407△17.9%

44,481△33.3%

29,586
Ordinary
Income

9,247

6,306

△31.8%

Profit attributable toowners of the parent
company

6,666

4,637

△30.4%
Sales

Orders received

Orders outstanding2

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%

2.4%

18.8%

18.7%

21.7%

40.1%

39.6%

37.6%

37.1%

17／03

18／03

30.1%

26.6%

27.7%

3.5%

33.5%

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

42.4%

0%
12／03

13／03

14／03

Automotive production

FPD(Flat Panel Display) production

Semiconductor production

Home appliances assmebly and other facilities

19／03

Others*The figure of FPD related business was integrated into semiconductor related business since April 2012.

3

I. Factor Analysis on Changing Operating Income

Decreasein sales△3.29bn
9.37bn+440mil

Decreasein rateof COGS△270mil△3.12bn

Increasein SG&A

6.24bnApr. 2017 – Mar. 2018
Operating Income

Apr. 2018 – Mar. 2019
Operating Income4I. Balance Sheet
Balance Sheet(Units in millions of Yen)

Asset

Apr. 2017– Mar. 2018

Apr. 2018– Mar. 2019

YoY Change

Apr. 2017– Mar. 2018

Apr. 2018– Mar. 2019

Current Liabilities

37,48536,718△767

Fixed Liabilities

11,262

7,244△4,018

Total Liabilities

48,74843,963△4,785

Liabilities

YoY Change

Current Assets

71,46764,321△7,145

Fixed Assets

23,863

26,252+2,388

Tangible Fixed
AssetsIntangible
Fixed Assets

17,376

20,336+2,960

814

676

△137

Investments
and other assets

5,672

5,238

△433

Total Net Assets

46,582

46,610＋27

Total Assets

95,33090,573△4,757

Capital Ratio

48.3%

50.9%

＋2.6Point

Net Assets

Main impact factors
AssetsLiabilities/Net Assets

Trade accounts receivable△5,651

Treasury stock△2,422Inventories△1,423

Debt with interest△2,112

Buildings and structures＋2,434

Advance received△1,5385

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

Assumed exchange rate

From Apr 1, 2018 to Mar 31, 2019
(Actual rate)

From Apr 1, 2019
(Applied assumption rate)

Exchange rate（against USD）

108.18100.00Transition of our stock prices(Units in Yen)

Transition of
our stock prices

Apr. 1, 2018 to Mar. 31, 2019

Apr. 1, 2016 toMar. 31, 2017

Apr. 1, 2017 toMar. 31, 2018

Highs

9,560

14,720

6,780

7,050

7,650

Lows

2,275

8,030

4,460

6,010

6,040

End of period

9,010

9,780

6,690

6,270

7,640

Jan.

Feb.

Mar.

PER／PBR／ROE
PER／PBR／ROE

Apr. 1, 2016
to Mar. 31, 2017

Apr. 1, 2017
to Mar. 31, 2018

Apr. 1, 2018
to Mar. 31, 2019

PER（x）

14.43

15.26

17.33

PBR（x）

3.12

2.26

1.72

ROE（％）

24.30

18.18

10.06
6

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

Business Unit

Sales

Orders
Received

OrdersOutstanding

Apr 2017– Mar 2018

Apr 2018– Mar 2019

YoY
ChangeAutomotive

34,95532,760△6.3%

Semiconductor

37,33825,939△30.5%

Home appliances & others

17,56916,780△4.5%

Others

4,299

1,821

△57.6%

TOTAL

94,16377,302△17.9%

Automotive

27,02830,053＋11.2%

Semiconductor

40,321

18,143△55.0%

Home appliances & others

23,47312,120△48.4%

Others

2,268

2,089

△7.9%

TOTAL

93,091

62,407△33.0%

Automotive

17,45814,751△15.5%

Semiconductor

15,896

8,099△49.0%

Home appliances & others

10,7816,121△43.2%

Others346

613＋77.3%

TOTAL

44,481

29,586△33.5%
7

I. Global Business Overview
Sales by region

China/Taiwan
EuropeNorth America
HCA（U.S.A）

HAS, HME（Shanghai, China）
South-east Asia

HEE（Germany）

HET（Thailand）

Sales increasedin EV related
equipment

Had a hard time with
automotive sales due toless investments in plantand equipment

Concerns about effects
caused by economic slowdown
Meanwhile automotive and home
appliances business going well

HCT（Taiwan）

HFM（Malaysia）

HEM（Mexico）

LCD business performing strong

Had a hard time with
automotive sales

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

Japan

Asia

North America

18/3

19/3

18/3

19/3

18/3

19/3

Sales

73,94258,150

9,156

8,030

10,1897,790

Operatingincome

8,388

5,085

637

1,106

376

△169

Europe
18/3

TOTAL

19/3

18/3

19/3

874

3,331

94,16377,302

10

129

9,413

6,152

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

8

I. Business update on Organic EL/EV businesses
Business update on Organic EL/EV businesses●A massive decrease in the sales and incoming orders of organic EL
An order increase, on the other hand, in electric vehicle related business(Units in millions of Yen)

Apr. 2017 – Mar. 2018
Amount oforders received

Sales

Apr. 2018 – Mar. 2019
Amount oforders received

Sales

Organic EL-related business

20,00920,722

3,206

7,288

Electric vehicle related business

3,117

8,751

6,912

6,667

●Organic EL related business
The sales of organic EL related business accounted for about 28% of its total

semiconductor sales, which was the decrease of 65% over the previous year. The
incoming orders was decreased by 84% over the previous year.
●Electric Vehicle related business
The sales of EV related business accounted for about 20% of its total automobile sales,

which was the decrease of 24% over the previous year. The incoming orders wasincreased by 122% 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 at Impress
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 received the award is we have operations
across the globe and the Cognitive Factory is expected to merge Japanese manufacturing 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

I. Topics – regional contribution
Providing Hirata’s robots to our hometown, Kumamoto
Hirata provided its demo robots to NTT Corporation located in Kumamoto. This was for IoT’s transmission of
information project which Kumamoto prefecture, Kumamoto city, and NTT Corporation have been working on.

Hirata’s robots demonstrate remote management system, preventive maintenance, and so on using IoTtechnology. This space displayed four products including our robots and is useful for personnel training forengineers, student learning, public awareness activities, and so on.

Hirata explained how its

The opening ceremony

robots work to Mr.
Kabashima, the governor of
Kumamoto prefecture11

I. Topics – regional contribution
Regional contribution
Hirata is engaged in the post-quake reconstruction effort of our hometown, Kumamoto through regional
contribution as below:● Main sponsor of Kumamoto’s football team Roasso Kumamoto
Hirata has been an uniform sponsor of Roasso Kumamoto since Feb.1, 2018. Hirata empathizes with
Roasso Kumamoto’s philosophy “Cheers to residents, dreams to children, and energy to Kumamoto”, andhas backed up this football team.
● Sponsor for Kumamoto castle marathon
Hirata became a sponsor for the second consecutive year for Kumamoto castle marathon held on Feb 17,
2019 and supported the event.

Kumamoto castle
Roasso Kumamoto’s uniform withHirata’s namemarathon Hirata
sponsored

12

Ⅱ Market trend andForecast for FYE March 2020
The Fiscal Year ended on March 31, 2019（April 1, 2018 through March 31, 2019）13

II. Forecasts for FYE March 2020: Earnings Forecast(Units in millions of Yen)FYE March 2019 (Actual)FYE March 2020 (Forecast)

77,30270,000Automotive

32,76029,000

Semiconductor

25,93922,000Home Appliances & others

16,78017,000

1,821

2,000

Sales

OthersOperating Income (margin)

6,249(8.1%)

2,300（3.3％）

Ordinary Income (margin)

6,306(8.2%)

2,200（3.1％）

Profit attributable to owners of
the parent company (margin)

4,637(6.0%)

1,400（2.0％）

Reasons for the full-year sales estimate and measures for achieving our business targets
 We foresee both sales and profits would be lower than those of the previous year under the unclear situation ofincoming orders environment.
 We make use of our global capabilities and the know-how we developed in order to exploit new market andcustomers which can be expected to grow besides the existing business domains. We also review our cost

structure by introducing the latest processing machines for better production efficiency and investment for our
new plant, and strengthen our revenue base even under an explosive market.

14II. Forecasts for FYE March 2020: 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. In Japan,
consumers’ incentive to purchase automobiles before consumption tax increase are expecting even though
the domestic market is to slow down slightly. We received orders for electric vehicle related equipment
especially from Japanese and European manufacturers in the last fiscal year. We work harder to expand ourmarkets in global base continuously.

Semiconductor-related businessWe see a slowdown in the semiconductor market and also a bearish condition in business investment fororganic EL for display. We work harder to receive more orders for silicon wafer transfer related businessagainst the backdrop of extensive investment for 5G and demand increase of in-car device.

Home appliances and other facilities businessWe work closely with our clients, the high-performance home appliance producers, to ensure future orders
for their next models’ investments.

15II. Market trend & Forecasts for FYE March 2019: Automotive related business
Vehicle production forecast by region
JPN

N. America

EUR

CHN

ASEAN・E.Asia

Others

20,04020,990

5,560

5,670

（unit：thousand）

Automotive related business market■Industry trends

29,85026,20021,90023,550

5,790

6,020

6,390

37,3007,050

29,85030,60031,36032,63034,63018,51018,88019,26019,84020,75021,27019,59019,71019,71020,07020,66021,290

5,160

5,080

5,010

4,810

4,530

4,090

2018(EST)2019(FCST)

2020(FCST)

2022(FCST)

2025(FCST)

2030(FCST) Global demand・The market is soften in developed countries inyear 2019 and stays as flat as that of the lastyear.
・It is predicted that the market enters arecovery phase after year 2020, led by EV

industry development in China and developing
countries’ growth.

Market size estimate of environment-responsive vehicle e.g. EV
HybridPlug-in hybrid（unit：thousand）

EV●Hirata’s prospect
 Internal combustion locomotive business

2,720

1,979
1,007

1,249

658
320

417

521

1,828

2,089

2,201

2016

2017

2,326

 EV and part related business

1,576
613

761

927

We are concerned about less orders frommanufacturers in North America.

1,236

We predict business inquiries mainly fromJapanese and European manufacturers on acontinuing basis.

 We focus on receiving more orders from both
2,349

2,440

2,423

2,377

2018(EST) 2019(FCST) 2020(FCST) 2021(FCST) 2022(FCST)

existing customers and new customers.
Sources:Upper graph： HEV, EV related market analysis of the year 2018
Lower graph：EM Date Service Co.

16

II. Market trend & Forecasts for FYE March 2019: Semiconductor & FPD related business
Sales & growth rate of semiconductor manufacturing equipment

Semiconductor & FPD related business market（Growth rate）（Units: 100 million yen）

30,000

40.0%
Sales

25,00030.6%
22,696Growthrate

20,000

19.5%

7.0%

13,08911,278market adjustment temporarily.
• We expect the market expands at multi-layered way

10.0%

with IoT related business growth such as big data

11.1%

10,000and high-speed processing, usage of AI to industrial

0.0%
0.5%

1.3%

equipment, and sophistication of semiconductors’

5,000-10.0%

0-20.0%
2013

2014

2015

2016

2017

performance demand like self-driving system.
• Production trends tends to be high added value such

Sales & growth rate of FPD manufacturing equipment
6,000

4,000

4,857

Sales

5,000

80.0%

5,400
4,916
4,500

Growth
rate

3,485
2,717

3,000

4,800

62.3%

60.0%

2,993
9.8%

6.7%

1.2%

1,000

△16.7%△22.0%
0
2015

2016

Semiconductor related business
We try harder to secure orders once themarket grows again even though it isestimated to reach into a slow demand.



FPD related businessWe work for receiving more orders of coaters
for large panel.

-20.0%-40.0%

2014



20.0%
0.0%

10.2%

●Hirata’s prospect

40.0%

2,000

2013

as in-vehicle display.

（Growth rate）

66.8%

2017

FPD manufacturing equipment• Slow sales of smartphones may shrink the market.

2018(FCST) 2019(FCST) 2020(FCST)（Units: 100 million yen）

Semiconductor manufacturing equipment• The slowdown on memory investment may cause

20,436

15,642

9.7%
12,921


30.0%
20.0%

14.6%

15,00022,81024,407■Industry trends

2018(FCST) 2019(FCST) 2020(FCST)

Sources:
Semiconductor Equipment Association of Japanannounced on Jan. 2019.

17

II. Market trend & Forecasts for FYE March 2018: OLED & LCD related business

OLED and LCD related business market

Transition & Forecast of OLED, unit products of LCD & parts market
Large-sized LCD

Medium/Small-sized LCD

Organic EL（Unit : million）■Industry trends

1893
1765

1691

1649

1557

1471

 Large and medium/small-sized LCD
1407

1373
1087

1005
906

788

763

649

555

478

390

746

754

734

771

720

• Large-sized LCD market will shrink due toless demand of PC and tablet.
• Shifting to organic EL may cause

707

695

medium/small-sized LCD market to shrink.
 Organic EL
・The market for smart phones will continue

2016

2017

2018(EST)2019(EST)

2020(EST)

2021(EST)

2022(EST)

2023(EST)

Growth rate of OLED, unit product of LCD & parts (vs. Year2013)

Medium/small-sized
LCD
Organic EL

178.7%●Hirata’s prospect

157.5%
132.2%

 Organic EL related business

97.6%

Be prepared for the market revival ofsmart phones as well as dealing withthe demand for television.

66.4%
42.3%

2017

-4.2%

・The market for television and in-car display
is expected to grow.

Large-sized LCD

22.5%
-3.1%

to expand.

-5.3%

-6.8%

-8.6%

-10.2%-11.7%

2018年（EST） 2019年（EST） 2020年（EST） 2021年（EST） 2022年（EST） 2023年（EST）-6.8%-10.7%-12.9%-17.8%-22.3%-25.7%-27.5%

Source: Fuji Chimera Research Institute, Inc.

18

II. Market trend & Forecasts for FYE March 2018: Home Appliances & others related business

Home Appliances related business market

Forecast for home appliances market（unit：million）

Room-air conditioner
Washing machine■Industry trends

Refrigerator
Vacuum cleaner

 Overall home appliances market

・ You see slowing growth due to round of168

demand in China market.
135
118
108
107

74

110
111

73

・ The hot summer enlarged the room-air

144

142

112
113

72

132

115
115

71

137

133

118
118

71

121

124
122

127
127

120

70

conditioner market in 2017 and the sales may
shift to lower with its rebound.

●Hirata’s prospect

69

69

 Vacuum cleaner related business
Try harder to receive orders for new
products’ equipment investment

 All but home appliances related businessWork harder to receive orders in awide range of areas

2016

2017

2018(EST) 2019(FCST)2020(FCST)2021(FCST)2022(FCST)2023(FCST)

Source: Fuji Chimera Research Institute, Inc.

19

II. Forecasts for FYE March 2019: Dividend Forecast
Dividends and dividend ratio per share（Unit in Yen）

Dividends per share

Dividend ratio(%)

FYE Mar 2016

FYE Mar 2017

30.00

100.0017.5

16.0

FYE Mar 2018

125.00including memorial
dividend 25.00yen

19.5

FYE Mar 2019

FYE Mar 2020
(Estimate)125.00

40.00

28.4

30.1

Note: Dividend ratio is on a consolidated basis.

About dividend forecast
At Hirata, we consider various factors when making dividends payments, such as business performance, management andfinancial environments. With our basic principle of making stable and continuous dividends to our shareholders, while atthe same time preserving internal reserves to prepare funds for business expansions and maintain solid businessfoundation, we recognize that it is important that dividend payments and policies need to be at times flexible andconsistent with business performances.
Hirata decided to pay annual dividend per share of 125.00 yen for the fiscal year ended March 31 2019. This will be
discussed in Hirata’s annual general meetings to be held on June 25, 2019. For your information, the annual dividend pershare for the fiscal year ending March 31 2020 plans to be 40 yen in view of the circumstances in our business forecasts.
This will be discussed in Hirata’s annual general meetings to be held at the end of June 2020.

20

Ⅲ. Reference Data
The Fiscal Year ended on March 31, 2019（April 1, 2018 through March 31, 2019）21

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

(Units in millions of Yen)

27,21825,931

Automotive

Semiconuctor

Home alliancs & others

Others

918

1,261
4,058

21,419979

19,59422,195

6,196

1,140

4,016

3,297

9,879

8,627

14,621

20,234

20,251

533

392

444

3,588

4,467

5,626
6,891

450
3,097
10,478

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

11,1803,456

2018/3

4Q

1Q

4Q

2019/322

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

(Units in millions of Yen)

Automotive
Home appliances & others

23,912

22,623

22,913

624

549

655
5,688

23,643438

19,378

3,433
5,340

9,011

310

16,7383,156

13,148

8,533
12,542

Semiconductor
Others

4,424

10,773
8,472

13,141

809

521

2,713

2,779

3,339

5,885

1Q

2Q
2018/3

6,286

5,720

3Q

3,471

4,759

5,620

11,488

10,396
5,026

447

4Q

1Q

2Q

8,059
4,220

3Q

4Q

2019/323

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

(Units in millions of Yen)

Automotive
Home appliances & others

43,534
1,771
6,507

44,7381,416

49,23948,056825

44,481

206

7,966

346

10,8407,830

10,781

15,87045,152622
9,085

12,703

16,051
15,575

Semiconductor
Others35,042
699
6,238

9,332

15,896

29,586613
6,121

10,231
8,099

19,68019,620

1Q

2Q

25,48923,213

17,872

17,4583Q
2018/3

23,112

4Q

1Q

2Q

3Q

14,751

4Q

2019/324

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

6,000

5,481

Apr. 2017 - Mar. 2018
Apr. 2018 - Mar. 2019
5,000

Apr. 2019 - Mar. 2020(planning)

4,135
4,000

3,000

2,397

2,121

2,078
2,000

1,162
1,000

1,080

1,198

784

0

R&D Expenses

Capital Expenditures

Depreciation & Amortization25

III. Key Financial KPIs/Indicators
Account Receivables/Turnover period

Inventory/Turnover period(Units in millions of Yen)

(Units in millions of Yen)

49,615

182

45,642
210

43,573

46,469200

199

43,963

Debt with interest/Debt equity ratio/Net debt equity ratio(X)

20,9740.46

0.53

18/3 4Q

48

19/3 1Q

55

50

19/3 2Q

Inventory

19/3 3Q

43

19/3 4Q

Turnover period

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

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

46,107

20,707 21,463 18,862
0.47

0.45

0.22

0.25

0.23

18/3 4Q

19/3 1Q

19/3 2Q

Debt with interest

7,752

213

18/3 4Q 19/3 1Q 19/3 2Q 19/3 3Q 19/3 4Q
A/R Turnover period
Turnover period

24,081

10,386

9,175

46(Units in millions of Yen)

12,699 12,076

0.41

48.3

47.0

49.3

49.5

50.9

18/3 4Q

19/3 1Q

19/3 2Q

19/3 3Q

19/3 4Q

0.31
0.16
19/3 3Q

D/E ratio

19/3 4Q
Net D/E ratio

Total shareholder's equity

Equity ratio

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

26

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 or
uncertainties, 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.

27