Business Results for First Quarter,
FY2010Creative Links to World Electronic
Aug 6th 2010
Hirose ElectricCo.,LTD1

Cautionary Statement
In this material, there are descriptions based on
current estimation by Hirose Electric.
Hirose cautions you that a number of important risks,
uncertainties and others could cause actual results
to differ materially from those discussed in the*forward-looking statements. Thank you for yourunderstanding.
*Forward-looking statements include, but are not limited to, those statements using words suchas “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,”“project,” “anticipate,” “aim,” “may” or “might” and words of similar meaning inconnection with a discussion of future operations, financial performance, events or conditions.
These statements are based on managementʼs assumptions and beliefs in light of the information
currently available to it.

2Business Situation of 1Q FY2010〔Business Situation of FY2009〕◎ On 1Q, orders for domestic digital consumer electronic and automotive haveincreased steadily◎ On 2Q, mobile sales have increased steadily. Digital consumer electronics andautomotive are basically recovering, and automotive especially have topped the previousyear level◎ On 3Q, adjustments in mobile and digital consumer electronics due to seasonalreason. At the same time, automotive relatively steady and signs of recovery in theindustrial area as well
◎ On 4Q, automotive and industrial continuously increasing steadily. Mobile alsoincreasing, especially connectors for China. Recorded an annual peak in March, both inorder and sales.

〔1Q FY2010〕◎Although partial adjustment for overseas mobile, orders and sales forautomotive and industrial area increased steadily◎1Q FY2010 settled on 32.1 % YoY in order level (5.1% over 4QFY2009), 30.0% YoY in sales level (5.5% over 4Q FY2009)3

FY2010 Orders and Sales Changes (Domestic Consolidation Basis, Index Number)
130

120
120115
111

118
110

101102113

112

10810090114

Average of FY2009 = 100

98

97
Order

80

Sales
70
JanFe bMarAprMayJu n2010

4

FY2010 Orders and Sales Changes by Markets (Domestic Consolidation Basis, Index Number)
Mobile携帯140120118

120

1099798

10080

113

Average of FY2009 = 1009196

112
102958860

40JanFe b

MarAprMayJu n2010
Orde rSale s5

FY2010 Orders and Sales Changes by Markets (Domestic Consolidation Basis, Index Number)
Digital Consumer Electronic
110
Average of FY2009 = 100

100898690808070747973727975727066

6050JanFeb

MarApr

May

Ju n

2010
OrderSale s

6

FY2010 Orders and Sales Changes by Markets (Domestic Consolidation Basis, Index Number)
Automotive
160

140
140

129
122115120105115

106114

104

105

Average of FY2009= 100

JanFe bMar

100

128105

Apr

8060
MayJu n2010
Orde rSale s7

FY2010 Orders and Sales Changes by Markets (Domestic Consolidation Basis, Index Number)
Associated Electric Equipment,
FA Controlling Device, and Others
一般産機
160

146

140

124

125

133
142
132120118

144142

122

145

130

Average of FY2009 = 100

1008060JanFebMar2010
Orde rAprSalesMayJun8

Business Results for First Quarter, FY2010(h un dred millions of Ye n ）（A)FY2009（B)FY2010

１Q

1Q(B)-(A)(B)/(A)

M ajo r C h an ge s o ve r pr io r sam epe r io d(u n it : h u n dr e d m illio n s o f Y e n )[Sales]54.0 in crease
ForeignSubsidiaries+1.8Sales

180.0

234.0

（COGS Ratio）（59.1％）（53.2％） （-5.9％）[Cogs Ratio] 5 . 9 po in t de c r e ase（ SGA Rat io ）（21.9％）（18.3％） （-3.6％）

Purchase Cost Ratio 42.4 % →4 1 . 1 %Depreciation Ratio 7.6% →4 . 5 %Labor Cost 4.7% →3 .9 %54.0 30.0%

OperatingProfit

34.3

66.6(%)

19.0%

28.5% （+9.5％）

Hirose+49.8

HST+2.4

32.3 94.4% [SGA Ratio] 3 .6 point de crease
Although 3.4 increase, sales increased as well

[Non -Ope ratin g Expen ses]

Recurring
Profit

39.3

68.1

(%)

21.8%

29.1% （+7.3％）

28.8

73.3% Equity Method Profit 1.3→1.7
Interest Received & Dividend 3.4→2.5
Foreign Exchange Gain or Loss 0.8→3.1

Net Profit

23.7

43.1

(%)

13.1%

18.4% （+5.3％）

Total Assets

2,485.2

2,529.1

Shareholders'Equity Ratio

93.2%

91.0%

Income Per Share

64.5Yen

120.9Yen

19.5 82.2%
43.9

1.8%

9

Sales and Profits by Quarter500（hundred millions of Yen）

50%
40%

400

300

28.8%

27.8%

30.5%
289.2

24.9%

221.8221.7

234.0

10%

2.4% 180.0

200145.010075.2

30%20%

221.2

203.3

29.1%

21.8%

20.1%

261.2

28.8%

0%

88.3
40.8

39.3

61.5

63.9

55.2

68.1

Sales

Recurring
ProfitRecurring
ProfitRatio-10%

3.5-20%0
FY2010FY2008 FY2008 FY2008 FY2008 FY2009 FY2009 FY2009 FY2009 FY2010
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q1Q

10

Changes in Consolidated Balance Sheet(hundred millions of Yen)
Account

Remark（A）Mar 31, 2010 （B）Jun 30, 2010 （B）−（A）

Cash andCash in Bank

1,095.7

1,086.0

Trade
Receivables

240.1244.1

4.0 234.0 +12.3)

Inventories

63.0

68.2

5.2 Increase in Sales and Production

Investment
Securities

652.6

649.7

currency translation difference in-2.9 Foreign
affiliated company, etc.

Others

477.6

481.1

3.5

2,529.0

2,529.1

0.1

Total Assets

and Tax payment, and Foreign-9.7 Dividend
currency translation difference
Increase in Sales（FY2009 4Q 221.7→FY2010 1Q

11Changes in Consolidated Balance Sheet(hundred millions of Yen）
Account（A）Mar 31, 2010 （B）Jun 30, 2010（B）−（A）

RemarkNotes Payable
and Accounts
Payable

120.1

133.3

Income Taxes
Payable, etc

48.9

29.0

Others

55.9

65.2

9.3 Increase in Accounts payables

Total Reliabilities

224.9

227.5

2.6

2,552.6

2,573.1

20.5 Net Income 43.1 - Dividend 21.4

Treasury
Stocks-465.4-465.40.0

Valuation
Variance

23.5

21.0

-2.5 Stock price fallen

Translation
Adjustment

-45.1

-65.5

-20.4 Due to strong Yen

Others

238.5

238.4

-0.1

2,304.1

2,301.6-2.5

2,529.0

2,529.1

0.1

Retained Earnings

Total Shareholders'Equity
Total Liabilities andShareholders' Equity

increase due to13.2 Purchaseproduction increase-19.9 Tax payment

12Cash Flow(hundred millions of Yen）
（A）FY2009 1Q

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Main Changes（B）FY2010 1Q

61.1

46.7 Pre-tax Net Income
Depreciation
Accounts Payable increase
Corporation tax-62.0

Refund of Time Deposit

4.1 over 3 months period

Acquisiton of Tansible Fixed Assets

Acquisition of Investment Securities

Refund of Securities

Cash Flows from
Financing Activities-17.9-20.9 Dividend Payment

2.4-10.0

I n c re ase in Cash an d Cash
Equ ivale n ts

-16.4

19.9

Cash an d Cash Equ ivale n ts,
be gin n in g B alan c e

537.6

568.3

B e gin n in g B alan c e
Adju stme n t du e to Ch an ge sin Crite ria o f Co n so lidatio n

4.1

Cash an d Cash Equ ivale n ts,
e n din g B alan c e

525.3

Effect of Excha nge Ra t e
C ha nge

69.7
13.6
15.5
-47.2
30.0
-13.4
-61.2
50.0
-20.9

0.3 Due to Newly consolidated Hirose Suzhou.
588.6
13

Sales Ratio (in round numbers)
OfficeMachinery3%

FA Controlling
Equipment 1%

Wireless
Communication3%

Others19%

OfficeMachinery 3%

Mobile Phone
36%

AssociatedElectricEquipment
3%

FY20091Q

AssociatedElectricEquipment 3%

Cable
Communication
4%

NotebookPC 4%

Automotive
8%
Computer
RelatedEquipment 5%

FA
Controllin
gEquipment
3%
DigitalConsumerElectronic
14%

Others25%

MobilePhone
31%

FY20101Q

NotebookPC
4%
ComputerWireless
Cable
Communicat Communicat Related
Equipment
ion
ion5%
※２
4%
4%

Automotive
10%
DigitalConsumerElectronic
8%※１※1 Computer Related Equipment ‒ Notebook PC not included.
※2 Wireless Communication - Mobile Phone not included.

Please be noted that as this is in round number, some ratio
difference may occur. Thank you for your understanding.

14

Sales Changes by Markets (in round numbers)

12%up

FY2009 1Q
FY2010 1Q
72%up

MobilePhone

Automotive

27%down

Notebook FA
Wireless
Digital
AssociatedComputer
Controlling
PC
Communication
ConsumerElectronic
Related
Cable
Equipment
Electronics Equipment
Equipment※２
Communication

OfficeMachinery※１※1 Computer Related Equipment ‒ Notebook PC not included.
※2 Wireless Communication - Mobile Phone not included.

Please be noted that as this is in round number, some ratio
difference may occur. Thank you for your understanding.

15

Overseas Production and Sales Ratio
（％）
5960

5956525047

Overseas
Sales Ratio

4036323034303020

Overseas
ProductionRatio

100FY2006

FY2007

FY2008FY2009FY20101Q
FY2010 1Q

16

Capital Investment and Depreciation Changes (Domestic Consolidated Basis)
100（hundred millions of Yen）
92

90

40.0 (%)

90

89

35.0

80

80
70

66

66

15.0
10.0
7.8

7.8

8.5
5.8

20
10

Depreciation

20.0

44403025.066

60
50

30.0

CapitalInvestment

7.5

147.3

7.0
5.2

4.20
FY2007

FY2008FY2009

10FY2010
FY2010(Forecast)

FY2010 1Q
FY20101Q

10.0

CapitalInvestment
Ratio
Depreciation
Ratio

5.00.0(※excluding the building
investment for Kohoku Center)17

Business Forecast of the Year Ended March 31, 2011note) First Half - 1Q & 2Q, Second Half - 3Q & 4Q

FY2009 (Actual)
First
Half

SecondHalf

For theYear(hundred millions of Yen）

FY2010 (Forecast)First Half

SecondHalf

For theYear

First Half
Over the previous Actual Amount

増減額

増減率

Second
下期
下期Half

For the年間Year

Over the previous Actual AmountOver the previous Actual Amount

増減額

増減率

増減額

増減率Sales401.2 443.5

844.7 465.0

475.0

940.0 63.8 15.9% 31.5 7.1% 95.3 11.3%（COGS Ratio）（57.2％） （56.2％）（56.7％）（54.3％）（55.1％）（54.7％）

Operating
Profit90.4 113.7

204.1 125.0

125.0

250.0 34.6 38.3% 11.3 9.9% 45.9 22.5%

22.5%

24.2%

26.9%

26.3%

26.6%

100.8 119.2

220.0 132.0

133.0

265.0 31.2 31.0% 13.8 11.6% 45.0 20.5%

(%)

25.1%

26.9%

26.0%

28.4%

28.0%

28.2%

Net Profit

61.5

71.2

132.7

80.0

80.0

160.0 18.5 30.1%(%)

15.3%16.1%

15.7%

17.2%

16.8%

17.0%

Income Per Share----(%)

Recurring
ProfitDividend Per
Share
Dividend
Payout Ratio

25.6%

363.15Yen

448.95Yen

60Yen 60Yen 120Yen 75Yen 75Yen 150Yen
--

33.0%

--

33.4%

8.8 12.4% 27.3 20.6%

No change from thepreviously announced
data on 2010 Mar.
18