English translation
Financial Results for the First Quarter of Year Ending March 31, 2021 [IFRS] (Consolidated)
August 3, 2020

Company name:

HIROSE ELECTRIC CO., LTD.

URL:

https://www.hirose.com/corporate/en/

Stock listing:Tokyo Stock Exchange – First Section

Code:

6806

Representative:

Kazunori Ishii, President and Representative Director

Information on contact:

Keiji Hara, General Manager of Accounting Department, Administration Group
Department Tel: +81-45-620-7410

Scheduled date of filing of Japanese quarterly securities report:

August 11, 2020

Scheduled date of dividend payable:―

Supplemental materials:

Yes

Earnings presentation held:

Yes (For institutional investors and analysts)(Amount Unit: Yen in Millions)(Amounts are rounded to nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2021
(1) Consolidated Operating Results
Sales revenue

Operating profit%

Income before tax%

Quarterly income%(Percentage represents year-on-year changes)
Quarterly income
attributable to ownersof the parent company

Total amount ofquarterlycomprehensive income

%

%

%

FY20201Q

27,400

(3.0)

5,896

10.4

6,092

7.4

4,417

8.6

4,417

8.6

5,462

639.1

FY20191Q

28,235

(0.8)

5,338

6.5

5,674

(0.4)

4,068

(1.6)

4,068

(1.6)

739

(83.9)

Basic quarterly earnings per share

Diluted quarterly earnings per share

Yen

Yen

FY2020.1Q

121.78121.78FY2019.1Q

111.56111.56(Yen in millions)(2) Consolidated financial position
Total assets

Total equity attributable toowners of the parent

Total equity

Ratio of total equity attributableto owners of the parent%

FY2020.1Q

343,636

307,251

307,25189.4

FY2019342,644306,141

306,14189.3

1

2. Dividends
Annual dividend per share (Yen)
1st quarter end

2nd quarter end

3rd quarter end

Total

Fiscal year end

Yen

Yen

Yen

Yen

Yen

FY2019―120.00―120.00240.00

FY2020―120.00―120.00240.00

FY2020 (Forecast)(Note) Revision of previously announced dividend targets during this reporting period: None

3. Forecast of Consolidated Business Performance for the Year ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Yen in millions)(Percentage represents year-on-year changes)

Sales revenue

Operating profit%

Profit before income
taxes

Profit attributable toowners of the parent

Basic earnings per
share

%

%

Yen

%

2nd quarter end(cumulative total)

50,000(17.0)

8,500(26.3)

9,000(25.5)

6,000(30.0)

165.44

Fiscal year end

115,000(5.6)

17,200(15.5)

18,000(15.1)

13,000(15.1)

358.45(Note) Revision of previously announced business forecast during this reporting period: None

*Notes(1) Changes in Significant Subsidiaries during This Period(changes in specified subsidiaries resulting in the change in scope of consolidation): None(2) Changes in Accounting Policies and Changes in Accounting Estimates:
1. Changes in accounting policies required by IFRS
: None2. Changes in accounting policies due to other reasons: None3. Changes in accounting estimates: None(3) Number of Shares Issued (Ordinary Shares)
1. Number of shares issued at the end of the period (including treasury stock)
As of June 30, 2020: 38,175,942
As of March 31, 2020: 38,381,820
2. Number of treasury stock at the end of the period:
As of June 30, 2020: 1,908,828
As of March 31, 2020: 2,114,675
3. Weighted-average number of shares outstanding during the period:
For the three months ended June 30, 2020: 36,267,146
For the three months ended June 30, 2019: 36,462,721

2

*This financial results report is not subject to audit by certified public accountants or audit firms.
*Explanation for appropriate use of forecast and other notes(Cautionary statements with respect to forward-looking statements)
Forward-looking statements, such as forecast of business performance, stated in this document are based on information
currently possessed by Hirose or certain assumption that Hirose has deemed as rational. We cannot make any assurances that thecontents mentioned in these forward-looking statements will ever materialize. Actual financial performance could be significantly
different from our expectations as a result of various factors. For the assumptions used and other notes, please refer to “1. Overview
of Operating Results and Financial Condition (3) Future Outlook” on page 5.
(Method of obtaining supplementary materials on the financial results)
We are planning to hold a financial results briefing for institutional investors and analysts on Tuesday, August 4, 2020 online.
The presentation materials distributed in this briefing will be published on our website soon after the briefing.
(English translation)
This is the statement translated into English from the Japanese original of "Financial Results for the First Quarter of the YearEnding March 31, 2021." In the event of any discrepancy between this English translation and the Japanese original, the later shallprevail.

3

Table of Contents of Attachment
1. Overview of Operating Results and Financial Condition ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(1) Overview of Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(2) Overview of Financial Condition ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(3) Future Outlook including consolidated business forecast ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5
2. Quarterly Consolidated Financial Statements and Primary Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(1) Quarterly Consolidated Statement of Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(2) Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(3) Quarterly Consolidated Statement of Changes in Equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(4) Notes on Quarterly Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Segment information)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 114

1. Overview of Operating Results and Financial Condition(1) Overview of Operating Results
In the first quarter of the fiscal year ending March 31, 2021, the economic situation deteriorated sharply affected by the impact
of COVID-19 and Japanese economy has been in extremely difficult situation. Regarding the future, we are raising the level ofsocial economic activity gradually with taking preventive measures for spread of the infection.
In overseas market, economic activity has been restarted after lockdown for COVID-19. However, the number of infected person
are growing again and the future outlook has been still unclear.
Under this situation, Hirose group has been expanding global business mainly for smartphone market, automotive market andindustrial market, and promoting reinforcement of development, sales and production system for new products with highly added
value to respond advanced market needs quickly. Business for smartphone and consumer market has remained strong, but the salesof automotive has been slow down. As a result, sales revenue in the first quarter decreased by 3.0% to 27,400 million yen comparedto the same period of the previous fiscal year. Operating profit increased by 10.4% to 5,896 million yen, and quarterly income
attributable to owners of the parent company increased by 8.6% to 4,417 million yen as compared with the first quarter of fiscal
2019.
The business results by segments are as stated below.
[Multi-pin connectors]
Our flagship multi-pin connectors include a variety of connector types such as circular connectors, rectangular connectors,
connectors for ribbon cables, connectors for printed circuit boards, connectors used for FPCs (flexible printed circuits boards)
and nylon connectors. This kind of connectors are used widely, such as for smartphones, tablet PC, communication equipment,
automotive electronics, measuring and control equipment, FA equipment, and medical electronics equipment, as well as otherindustrial equipment. We expect that demands for this connectors will grow associated with progress of advanced informationand telecommunications network society, and energy saving society considering environment in the future. Segment sales for the
first quarter of the fiscal year ending March 31, 2021 decreased by 2.1% to 24,314 million yen, operating profit increased by
13.3% to 5,648 million yen compared with the first quarter of the fiscal 2019.
[Coaxial connectors]
Coaxial connectors are a special type of high-performance connector used primarily for microwave and other high-frequency
signals. This is used mainly for microwave communications devices, satellite communications equipment, electronic measuring
instruments, smartphones, 4K and 8K broadcasting equipment, and other electronic equipment. Optical fiber connectors andcoaxial switches are also included in this segment. Segment sales for the first quarter of the fiscal 2020 decreased by 4.7% to 2,231
million yen. Operating profit increased by 4.9% to 263 million yen.
[Other products]
This segment includes micro switches and instruments for connectors. Segment sales for the first quarter of the fiscal 2020
decreased by 18.7% to 855 million yen, operating loss resulted 15 million yen (FY2019.1Q: operating profit 104 million yen.)(2) Overview of Financial Condition
Total assets of FY2020.1Q increased by 992 million yen to 343,636 million yen compared to the end of the previous
consolidated fiscal year because cash and cash equivalents, and inventories increased. Total liabilities decreased by 118 million
yen to 36,385 million yen due to the decrease in income tax payable. Although retained earnings declined due to the dividend of
surplus, other components of equity including quarterly income and translation adjustment increased, and total equity increased
by 1,110 million yen to 307,251 million yen. As a result, total equity attributable to owners of the parent increased by 0.1% to89.4% compared to the end of the previous fiscal year.
(3) Future Outlook
There is no revision of business forecasts for the second quarter and full year which was announced on May 28, 2020.
There is also no changes in the dividends forecast.

5

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Statement of Financial Position(Yen in millions)

As of March 31, 2020

As of June 30, 2020

AssetsCurrent assets
Cash and cash equivalents

50,56152,543

Trade and other receivables

30,44429,456Inventories

14,512

16,349Other financial assets

120,541

118,051

Other current assets

4,614

3,053

Total current assets

220,672

219,452

Tangible fixed assets

61,541

61,539Right of use assets

4,478

4,326

Intangible assets

2,519

2,557

Other financial assets

50,141

52,288Deferred tax assets

2,272

2,477

Retirement benefit assets

563

554

Other non-current assets

458

443

Total non-current assets

121,972

124,184

342,644

343,636

Non-current assets

Total assets

6

(Yen in millions)

As of March 31, 2020

As of June 30, 2020

Liabilities
Current liabilities
Trade and other payables

16,747

17,755

Lease liabilities

728

730

Other financial liabilities

25−

Accrued tax payables

2,964

2,418

Other current liabilities

4,377

3,635

Total current liabilities

24,841

24,538

3,764

3,615

230

251

Deferred tax liabilities

6,573

6,887

Other non-current liabilities

1,095

1,094

Total non-current liabilities

11,662

11,84736,50336,385

Common stock

9,404

9,404

Common surplus

11,293

11,288Retained earnings

308,343

306,032

Treasury stocks(24,456)(22,075)

1,557

2,602

306,141

307,251

Total equity

306,141

307,251

Total liabilities and equity

342,644

343,636

Non-current liabilities
Lease liabilities
Retirement benefit liabilities

Total liabilities
EquityOther components of equity
Total equity attributable to owners of the parent

7

(2) Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income(Quarterly Consolidated Statement of Profit or Loss)(Yen in millions)

For the first quarter of the year
ended March 31, 2020

For the first quarter of the year
ending March 31, 2021

(From April 1, 2019 to June 30, 2019)(From April 1, 2020 to June 30, 2020)

Sales revenue

28,23527,400

Cost of sales

16,234

15,900Gross profit

12,001

11,500

Selling, general and administrative expenses

7,550

7,128

Other income

947

1,590

Other expenses

60

66

Operating profit

5,338

5,896

Financial income

412

336

Financial expenses

76

140

Profit before income taxes

5,674

6,092

Corporate income tax expenses

1,606

1,675

Quarterly income

4,068

4,417

4,068

4,417

Basic (yen)111.56

121.78

Diluted (yen)111.56

121.78

Quarterly income attributable to:
Owners of the parent
Quarterly Earnings per share:

8(Quarterly Consolidated Statement of Comprehensive Income)(Yen in millions)

Quarterly income

For the first quarter of the year
ended March 31, 2020

For the first quarter of theyear ending March 31, 2021

(From April 1, 2019 to June 30, 2019)(From April 1, 2020 to June 30, 2020)

4,068

4,417

329

479

329

479

(3,671)

554

13

12

Total items that may be reclassified to profit or loss

(3,658)566

Total other comprehensive income after tax(3,329)

1,045

739

5,462

739

5,462

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Total items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
Debt instruments measured at fair value
through other comprehensive income

Total quarterly comprehensive income
Total amount of quarterly comprehensive income attributable to:
Owners of the parent

9

(3) Quarterly Consolidated Statement of Changes in Equity(Yen in millions)

CommonStock
Balance as of April 1,
2019

9,404

Capitalsurplus11,314

Quarterly income

Retainedearnings

Treasury
stock

Other
componentsof equity

303,349(23,213)

6,476

Total of quarterlycomprehensive income――

Dividend of surplus

4,068

―

307,330

307,330

4,068

4,068

(3,329)(3,329)(3,329)(3,329)739

739(4,376)(4,376)(4,376)

Purchase of treasury stock

Total equity

attributable to owners

4,068

Other comprehensive
incomeTotal equityof the parent

(0)

(0)

(0)

(0)

Cancellation of treasury
stock(1,487)

1,487

―

―

Transfer to retained
earnings

1,486(1,486)――

Total transaction withowners―(1)(5,862)

1,487―(4,376)(4,376)

Balance as of June 30,
2019

9,404

11,313

301,555(21,726)

3,147

303,693

303,693

Retainedearnings

Treasury
stock

Other
componentsof equity

attributable to owners

308,343(24,456)

1,557

306,141

306,141

4,417

4,417

1,045

1,045

1,045

1,045

5,462

5,462

(4,352)(4,352)

CommonStock
Balance as of April 1,
2020

9,404

Capitalsurplus11,293

Quarterly income

4,417

Other comprehensive
incomeTotal of quarterlycomprehensive income――

Dividend of surplus

4,417

―

(4,352)

Purchase of treasury stock

Total equity

Total equityof the parent

(0)

(0)

(0)

(0)

Cancellation of treasurystock(2,381)

2,381

―

―

Transfer to retained
earnings

2,376(2,376)――

Total transaction withowners―(5)(6,728)2,381―(4,352)(4,352)

Balance as of June 30,
2020

9,404

11,288306,032(22,075)

2,602

307,251

307,25110

(4) Notes on Quarterly Consolidated Financial Statements(Segment information)
1. Business segment(1) Overview of reporting segment
In the reporting segment of Hirose group, it is possible to acquire isolated financial information among constituent unit of ourgroup. It is also an object being examined on a regular basis to evaluate our decision of resource allocation and business results by
the board of directors.
Our business is manufacturing and selling mainly connectors and other products, and we formulate a domestic and global
comprehensive strategy for our products and service.
Therefore, Hirose group consists of segments by products based on the shape of connectors. Our reporting segment is “Multi-pin
connectors” and “Coaxial connectors”.
“Multi-pin connectors” include circular and rectangular connectors implemented to the outside of devices. They also include
connectors implemented internal of the devices, such as connectors for ribbon cables, connectors for printed circuit boards,
connectors used for FPCs (flexible printed circuit boards) and nylon connectors.
“Coaxial connectors” are a special type of high-performance connectors connecting high-frequency signals such as microwave,
and this segment includes optical fiber connectors.
(2) Information of reporting segment
For the first quarter of the fiscal year ended March 31, 2020 (from April 1, 2019 to June 30, 2019)(Yen in millions)

Reporting segments
Multi-pin
connectors

Amount of condensed
quarterly consolidated
financial statements

Others*Coaxialconnectors

Total

Sales revenue
Sales revenue from externalcustomers

24,842

2,341

27,183

1,052

28,235

Total revenue

24,842

2,341

27,183

1,052

28,235

Operating profit

4,984

250

5,234

104

5,338

Financial income

―

―

―

―

412

Financial expenses

―

―

―

―

76

Quarterly income before tax

―

―

―

―

5,674

*”Others” category is not included into reporting segments. “Others” includes micro switches and instruments for connectors.
2. Geographic information
Japan

China

Korea

Others

Total

Sales revenue

7,667

9,360

4,413

6,795

28,235Percentage of consolidated sales revenue (%)

27.2

33.1

15.6

24.1

100.0

11

For the first quarter of the fiscal year ending March 31, 2021 (from April 1, 2020 to June 30, 2020)(Yen in millions)
Reporting segments
Multi-pin
connectors

Coaxialconnectors

Amount of condensed
quarterly consolidated
financial statements

Others *Total

Sales revenue
Sales revenue from externalcustomers

24,3142,231

26,545855

27,400Total revenue

24,3142,231

26,545855

27,400Operating profit or (loss)

5,648

263

5,911

(15)

5,896

Financial income

―

―

―

―

336

Financial expenses

―

―

―

―

140

Quarterly income before tax

―

―

―

―

6,092

*”Others” category is not included into reporting segments. “Others” includes micro switches and instruments for connectors.
2. Geographic information
Japan

China

Korea

Others

Total

Sales revenue

7,290

9,789

3,526

6,795

27,400Percentage of consolidated sales revenue (%)

26.6

35.7

12.9

24.8

100.0

12