〈1〉Material for financial results briefing

Progress ofM diMedium-termtGrowthGth Strategy
St t(Previous title [May 10th (Tue)] ) :Direction of Medium-term Growth Strategy）

2016, Nov 1stHirose Electric Co.,Ltd.
President
Kazunori Ishii

〈2〉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 fromf
those discussed in the forward-looking
fstatements. Thank you for your understanding.

１ Hirose : Growth image (re-post <plus>)〈3〉

Maintain high profit management and grow sales in the medium
medium-term
term
ActualForec
astFuture Direction(hundred million yen / fiscal year)

1,250(959Salees948)

2016 decrease but bottom out for continuous added
added-value
value growth<plus>

Currency effect, unclear global economy etc.

Several unexpected events

２ Hirose : Application strategy image (re-post)■ Basic direction《Synergy effect》

Smart Network

High spec & quality capabilities

dustriallInd
infrasttructure
e&Autoomotivve

Connsumerr
marketCost & Speed capabilities

G-WING(Hirose Medium-term vision)[Consumer] & [Automotive, Industrial infrastructure]
Double-wheels of continuous growth!

〈4〉

２ Hirose : Application strategy image Rev -Ⅱ〈5〉

Medium-term
Mediumterm plan Rev
Rev-Ⅱ
Ⅱ

G-WING
3 Key
Trend

Cloud(Energysaving)

Build 3 strong pillars and accomplish medium-term G-WING

３ Topics (trend) [1]

〈6〉

E ti
Estimatedt d numberb off automotives
ttiowneddUSA

JPN

FRAGER

GBR

BRA

RUS

CHNIND

Others(hundred millions of units)
Estimated number of IoT/IoE device

24.5500

15.7250
10.7
75
7.5

2000

125

2010

2020

2030

2010
2010

2015
2015

2020
2020

(source: HRS estimate).

Increase sensitivity towards “Big changes = New business opportunities”

３ Topics (trend) [2]More competition due to technology fusion〈7〉※ Image of technology fusion of 3 main areas
FuturePrevious
Consumer

Consumer
USBVR

Auto
MotiveIndustry

Crossing area
expands

AutoMotiveAIGPS

IoT

Industry

Evolvement & expansion of each area 〜 technology fusion 〜 and more evolution

Industrial barrier become lower

More active entrance to each other’s area

More expectation towards expansion of connection business
By using HRS’s advantage of able to link each areas, HRS will build strong
pillars in each area and aim stable growth３ Topics (trend) [3]〈8〉Approach towards standardization (Cooperation with HARTING)□ Market background [Connector changes related to IoT]

Currently conventional standard such as RJ-45 is used. However, withtheh trend
d to connect various
ithings,hi
connection
i point
i willill iincrease, anddincreasing mounting density is essential. Therefore, miniaturized I/Oconnectors are demanded.

Next-generation highspeed connector for
Industrial equipment

NStStandardd d forf Ethernet
Etht connectorstforf Industrial
I d t i l equipmentsit□ New
HARTING and Hirose focus on a newstandard

Agreement of joint development,development
product standardization andmarketing for a new small, robust
and highhigh-speed
speed 10Gbit Ethernet
interface that will set a new standardfor ‘Industry-4.0’ applications

HIROSE-President Kazunori Ishii (left) and CEO Philip Harting are looking
forward to their future cooperation(source: HARTING HP)

４ Hirose : Strategic investment for the future(re-post)〈9〉“Key trend” : “IoT (Connecting to everything)” “Cloud” “ECO”“Key technology” : Enhance “High speed”, “High-frequency”, “High-power”, “Smaller”
Strategicg investment
Technology development◆High speed, high-frequency
transmission technology◆Large current, environment resistanttechnology◆Mold processing, plating technology

Factory / Equipment

IT infrastructure◆Reinforce domestic/overseas factory◆Reinforce each main system◆Ultraprecise process equipment◆Enrich communication system◆Testing/assessment facility forautomotive / industrial◆Equip decision-making support
system４ HRS: Strategic investment for the future (this FY)
HIROSE KOREA(New) Precision Connector Center〈10〉

ICHINOSEKI
Extension of Testing center

Image

Scheduled to operate
on Jan 2017

Scheduled to operate
withinithi FY2017

５ C-16 HIROSE Technology Exhibition (1)

〈11〉

C-16
C
16 TOKYO visitors increased by
38% from previous exhibition(2013) andAutomotive-related increased by 83%

５ C-16 HIROSE Technology Exhibition (2)TOKYO: Sep 15th -16
16th OSAKA: Nov 16th – 17th

With C-16, “Catch the customer’s voice

Accelerate pace to future product”〈12〉