Hirose Electric business results briefing for FY2018“2019” Medium and long‐term Growth Strategy

9th May, 2019

Hirose Electric Co., Ltd.
President and Representative Director
Kazunori Ishii

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‐lookingstatements. Thank you for your understanding.

HRS：Growing Image (re‐post +)Maintain high profit management and make strong growth in the medium and long term
ActualFuture Direction

Forecast(hundred million yen / fiscal year)

2000

1,250

1,257

1,203

1,253
1,151

1,246

1,300

959

∥

0'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

The result of FY2018： “Recession”
After FY2019： Recover from FY2019 (Re‐challenge)

'22

'30

3Application image for medium‐term
OthersCommunication
5%
4%

New mobile

3%

17%

4%

35%

Smartphone growth had beenslowing down clearly.
Then we strived to expand newmobile and increase efforts fornext generation (5G)

23%

Industrial

31%

2018

Inner：FY2018Outer：FY2022

Consumer, PC

14%

14%

2022
20%

Automotive

We will grow by three pillars;“Smartphone, Consumer”

30%“Automotive”“Industrial, Infrastructure”

4Action Plan for FY2019➢ Increase power to achieve “G‐WING (medium‐term plan) “and show results〈1〉 ability to manufacture 23%〈2〉 ability to develop technology〈3〉 ability to execute global operationand localization in each area (glocalization)“Evolution”➢ We accelerate execution powerfully for this year
based on “Actual Recognition” and “Foreseeing” even more.
5Enhance functions and ability to manufacture（1/2） 〈repost＋〉[Opened in April, 2017][started operation in January, 2017]

EMC test room in Yokohama Center

Hirose Korea Precision
Connector Center

Anechoicchamber

Shielded room

23%

≫Strengthen the ability to develop and manufacture
micro connector

Analysis[started operation in March, 2018]

Ichinoseki (New) testing center
DesignEMC
assessment≫Lead to theimprovement of“design quality” and“development speed”✔ Enhance the testing ability (shorten the lead timefor tests)✔ Increase testing facilities for automotive✔ Acquire international certification for testing andcalibration laboratories.
≫Testing equipment area increased by three times

ISO/IEC 17025、ISO/IATF 16949、ISO 9001、ISO 14001

6

Enhance functions and ability to manufacture（2/2） 〈repost＋〉[started operation in May, 2018]

Miyako: Precise mold block[started operation in Sep, 2018]

Malaysia Plant : extension〈１〉 モノづくり力
23%〈２〉 技術開発力“進化”〈３〉 Global対応力・現地力≫enhance ability to manufacture micro connector[planning to start operation in FY2019]

Kikuna Office: mold center≫Enhance production for industrial and完成イメージ
high‐speedconnector[planning to be completed in June, 2019]

China Suzhou Plant : extension

Image≫strengthen efforts for automotive and industrial≫Increase production for automotive connector

7

TOPICS
New collaboration with Harting, Germany for Ethernet solution
In 2016, we developed new standard of small connector “ix Industrial” for industrial equipment
Solution for FA network to replace RJ45 (small, strong, high‐speed)<existing product> RJ45

<new standard> ix Industrial
23%

FA
ネットワーク

Implementation space was reduced by 70% compared to RJ45
完成イメージ
Hirose and Harting agreed to develop “SinglePair Ethernet connector”
for industrial equipment together in 2019
完成イメジ

Solution for industrial IoT (this allows transmission distance longer than before up to 1km.)
Single Pair Ethernet connector

8

HRS : Application strategy image <re‐post +>G-WING
4 KeyTrends(Labor‐saving)

Cloud(AI)“Three strong pillars” + “4 Key Tech”⇒ Strengthen our cross‐cutting proposal（Energy‐saving）

9

Hirose Technology Exhibition〈 CONNECTION

2016 ⇒ 2019 〉

2016

2019

〔Tokyo〕 Tokyo Prince Hotel 17th Oct（Thu）‐ 18th（Fri）〔Osaka〕 Grand Cube Osaka 28th Nov（Thu）‐ 29th （Fri）
We will reflect your opinion to our future products.
We truly appreciate your continuous cooperation and support.

In 2016
Over 6,500 visitors10