62nd Fiscal Term

Annual Report

From April 1, 2008 to March 31, 2009

HIROSE ELECTRIC CO., LTD.

HIROSEELECTRICCO.,LTD.

To Our Shareholders

We are pleased to report the results of operations
for fiscal 2008, the year ended March 31, 2009 (the62nd fiscal term, from April 1, 2008, to March 31,2009).

President and Representative Director

Tatsuro Nakamura

Business Overview
During the year ended March 31, 2009, the Japanese
economy had leveled off by the summer of 2008 but
suddenly faced unprecedented circumstances with asharp deterioration in corporate profits against abackdrop of rapid yen appreciation and falling stock
prices. These developments were set in motion by
the simultaneous slowdown of the world economy
following the U.S. and European financial crises
triggered by the bankruptcy of Lehman Brothers in
the United States in September 2008.
Although there was a slight recovery of
demand overseas in the summer of 2 0 0 8, theelectronics industry experienced an extremely
severe operating environment from October 2008
until the end of the fiscal year, reflecting
reductions in exports and production due to a
sharp decline in demand worldwide.
In this adverse business environment, theHirose Electric Group reinforced its productExecutive Vice President andRepresentative Director

Sakae Kushida

Financial Highlight■ Net sales
Millions of yen
120,000
104,407
100,000
89,562

115,485

118,043
89,87280,000■ Net income

Millions of yen
45,00038,62740,000Millions of yen
25,00022,91335,00030,00040,19937,97620,00030,664

18,315
13,306

10,00015,00010,00020,00022,597

20,77620,00040,00024,17615,00025,00060,000

5,000

5,000

0020051■ Ordinary income

2006

20072008

2009

02005

2006

2007

2008

2009

2005

2006200720082009

development capability, developed new products
and enhanced product quality in response tosophisticated customer needs. The Group also
pushed forward with aggressive management
initiatives including cost-cutting measures such as
the promotion of manufacturing efficiency and anexpansion in overseas manufacturing, as well as
the exploitation of domestic and overseas sales
channels and the reinforcement of selling power.
As a result, consolidated net sales for the year
under review amounted to ¥89,872 million, a declineof 23.9% from a year earlier. Operating income,ordinary income and net income decreased 45.9%,
45.3% and 41.1%, respectively, year over year to¥19,169 million, ¥20,776 million and ¥13,306 million.
In the economic environment in which theGroup operates, the market is expected to recoverand grow through expansion in the fields ofinformation and communications networks, digital
information, consumer electronics and automotiveelectronics. Meanwhile, the situation will become
increasingly severe, affected by the diversificationof markets; shorter product cycles, which will pose
higher risks in collecting the fruits of ourinvestment; and further intensifying competition.

■ Net income per share
yen700589.03

600500621.08

In this tough business environment, theCompany intends to pursue leading-edge
technologies, conduct more efficient distribution
and concentration of resources and consistently
carry out reforms and innovations. Such aggressive
initiatives also include the reinforcement of productdevelopment capability to meet new needs, thedevelopment of high-value-added products and thepromotion of manufacturing efficiency and furtherimprovement of product quality, all of which wouldserve to improve our cost competitiveness. At thesame time, we are determined to strengthen ourmanagement foundations toward profitable growthand improve our corporate value through efforts topromote globalization and exploit domestic andoverseas sales channels.
We look forward to your continued support andencouragement.
June 2009

Tatsuro Nakamura

Executive Vice President and Representative Director

Sakae Kushida■ Equity ratio & Ordinary income ratio to sales■ Net assets per share%100yen
6,000

Equity ratio

Ordinary income ratio to sales

90

587.365,000

80468.4670

400

356.59300

5002006

2007

2008

2009

2007

2008

2009

5,017

1,000

102005

6,271

2,000

200

6,277

3,000

30

100

6,159
5,612

4,000

60
40200

President and Representative Director

02005

2006

2007

2008

2009

2005

2006

2

Overview by Product Segment

Multi-Pin Connectors

Our flagship multi-pin connectors include avariety of connector types such as circularand rectangular connectors, connectors forribbon cables, connectors used for printed
circuit boards including FPCs (flexible printed
circuit boards) and PC cards, as well as nylon
connectors.
Major applications of these connectors
include a wide range of industrial fields, suchas computers and peripheral terminals, PCs,
OA equipment, communications equipment,
telephone equipment, measuring and control
equipment, FA equipment, broadcasting
equipment and medical electronics equipment,
digital information consumer electronics andautomotive electronics. Further expansion indemand is expected along with the enhanced
use of electronics and the development of thecontemporary information and communications
society, which is heavily dependent on thesignificant use of computers andcommunications equipment.
However, consolidated segment sales forthe year under review decreased 25.7% year
over year to ¥72,382 million resulting fromrapidly falling demand, caused mainly by thesimultaneous slowdown of the world economy,in the information and communications fields,
particularly for advanced-function mobile
phones and digital consumer electronics.

3Coaxial Connectors

Coaxial connectors are a special type of highperformance connector used primarily for
microwave and other high-frequency signals.
Their applications include microwave
communications devices, satellite
communications equipment, electronic
measuring instruments, mobile
communications equipment such as mobile
phones and PHSs, and switching andtransmission equipment and other electronicequipment. Optical fiber connectors are also
included in this segment.
Consolidated segment sales for the year
under review decreased 14.2% to ¥13,433
million due to rapidly dwindling investments incommunications infrastructure and rapidly
falling demand for mobile communications
equipment.
Other Products

The other products segment includes highfrequency devices such as directional couplers,
fixed attenuators and coaxial switches, as well
as low-frequency equipment designed for
medical treatment applications and instruments
for connectors.
Consolidated segment sales for the year
under review decreased 18.2% to ¥4,056 million.

4Consolidated Financial Statements
Consolidated Balance Sheets
Account item

Consolidated Statements of Income(Millions of yen)

As of March 31, 2009 As of March 31, 2008

Current assets

167,516

188,891

Fixed assets

77,686

79,469Property, plant and equipment

18,85922,728Intangible assets

2,436

2,423

Investments and other assets
Total assets

56,39054,317245,203

268,360

13,574
1,419

3,597

Total liabilities

14,99331,090Shareholders’equity

233,289

236,098

Common stock

9,404

9,404Additional paid-in capital

14,371

14,372

89,872

118,043

Cost of sales

53,07364,018Gross profit

36,79954,025

17,62918,578Operating income

19,16935,446

Other income

2,086

2,595

Other expenses

478

65

20,77637,976

Ordinary income

27,492Long-term liabilities

Net sales

Selling, general and administrative expenses(Liabilities)
Current liabilities

From April 1, 2008 From April 1, 2007
to March 31, 2009 to March 31, 2008

Account item

(Assets)(Net assets)

Special gains―0Special losses

966

667

Income before income taxes

19,81037,309Provision for income taxes―Current

8,209

13,409Provision for income taxes―Deferred△1,706

1,302

Net income

13,306

22,597

Note: Amounts less than ¥1 million are truncated.

Consolidated Statements of Cash Flows (Millions of yen)
From April 1, 2008 From April 1, 2007
to March 31, 2009 to March 31, 2008

Account item

Retained earnings

246,039

238,826

Operating activities

23,41135,348Treasury stock, at cost

△36,526△26,504

Investing activities△12,369△77,524△3,1391,140△20,973

Valuation, translation adjustments and others
Stock acquisition rightsFinancing activities△16,032

Effect of exchange rate change on cash and cash equivalents△1,494△1,084

Net increase/decrease in cash and cash equivalents△6,485△64,234

59

30

Total net assets

230,209237,270

Cash and cash equivalents, beginning of the year

60,249124,483

Total liabilities and net assets

245,203

268,360

Cash and cash equivalents, end of the year

53,76360,249Note: Amounts less than ¥1 million are truncated.

Note: Amounts less than ¥1 million are truncated.

Consolidated Statements of Changes in Net Assets (From April 1, 2008 to March 31, 2009)	Balance at March 31, 2008
Effect of changes in accounting
policies applied to foreign subsidiaries
Amount of changes during the period
Dividends from surplus
Net income for the period
Acquisition of treasury stock
Disposition of treasury stock
Net amount of changes during theperiod other than shareholders’equity
Total amount of changes during the period
Balance at March 31, 2009

(Millions of yen)

Shareholders’equity
Valuation, translation adjustments and others
Stock
Total net
Additional
Retained
Treasury
Total shareholders’ Valuation difference Foreign currency Total valuation acquisitionCommon
assetson available-for-saletranslationand translationrightspaid-in capital earnings stock, at costequitystock
securities
adjustment
adjustments
9,404
14,372
238,826
236,098
2,564
1,140
30
237,270△26,504△ 1,424
△

△
―
9,404

00
△
14,371

△

86―

△

△10,0232△ 6,007
13,306△10,0231――――△ 6,007
13,306△10,023
1―

△

664

△ 3,615△ 4,27928△ 4,251△10,021△36,526△ 2,722
233,289

△

664
1,900

△ 3,615△ 5,039△ 4,279△ 3,13928
59△ 6,974
230,20986△ 6,007
13,306

Note: Amounts less than ¥1 million are truncated.

5(Millions of yen)

7,299
246,03986

Nonconsolidated Financial Statements
Nonconsolidated Balance Sheets
Account item

(Millions of yen)

As of March 31, 2009 As of March 31, 2008

(Assets)
Current assets

113,575

128,861

Fixed assets

43,23941,025

Property, plant and equipment

9,763

11,386

Intangible assets

1,563

1,442

Investments and other assets

31,912

28,195

156,814

169,887

8,945

14,137

381

1,112

9,327

15,249Total assets

Nonconsolidated Statements of Income (Millions of yen)
From April 1, 2008
to March 31, 2009

From April 1, 2007
to March 31, 2008

Net sales

86,206

112,037

Cost of sales

57,91573,982Gross profit

28,29038,055

14,49914,906

13,791

23,148Other income

5,191

5,300

Other expenses

2,413

2,449

16,56925,999Special gains━━

Special losses

742

346

Income before income taxes

15,82725,652

Provision for income taxes―Current

6,506

9,181

Provision for income taxes―Deferred

△213

1,270

Net income

9,534

15,201

Account item

Selling, general and administrative expenses

Operating income(Liabilities)
Current liabilities
Long-term liabilities
Total liabilities

Ordinary income(Net assets)
Shareholders’equity

145,609152,103

Common stock

9,404

9,404

Additional paid-in capital

14,371

14,372Retained earnings

158,359

154,831

Treasury stock, at cost

△36,526△26,504

1,818

2,502

59

30

Total net assets

147,486

154,637

Total liabilities and net assets

156,814

169,887

Valuation, translation adjustments and others
Stock acquisition rights

Note: Amounts less than ¥1 million are truncated.

Note: Amounts less than ¥1 million are truncated.

6

Introduction of Our New Products

Newproducts

The Company launches many new products every year into the market. The following product series are
typical of our recent introductions.
ＦＨ４１

ＤＦ５０

The FH41 Series connectors
were developed for use inhigh-speed transmissioncompliant FPCs, for which
need is rising in the flatscreen TV, office equipment
and industrial equipment
markets. The series
features a robust
configuration in view ofhigher operability andHirose’s original designknow-how on high-speedtransmission.

ＦＸ１８

D e s p i t e a 1- m m p i t c hconfiguration, the DF50
Series connectors areavailable in compliancewith ø0.9-mm cables. The
metal lock at the headerside functions to increase
operability and prevent
half-mating. The
connectors contribute tomore compactness ofapplications and areavailable for use inequipment and machinerythat require higher contactreliability. The adoption inindustrial equipment andTV markets is currently
increasing.

ＥＭ
The FX18 Series board-toboard connectors weredeveloped to allow highspeed transmission at therate of 5Gbps to comply
with the need of highspeed signal transmissions
for applications insideindustrial controllers, officeequipment and various
types of imaging equipment.

ＳＷ２０Ｘ．
ＦＬThe SW20 Series connectors
were developed aswaterproof connectors, inwhich a standard single
contact (SC) for connectors
is built-in, for use insidemobile phone stations.
They have an IP67-compliant
waterproof configuration
featuring a one-action
bayonet lock structure
plated with highly
corrosion-proof black
chromium. The adoption ofstandard SC connectors
allows optimum connection
with the SFP transceivers
used in the stations.

7The EM Series connectors
for the high current of50A/1 pins were developed
mainly for use in theindustrial machine market.
They have an IP67-compliant
waterproof composition
and feature a highly
operable bayonet lockstructure. In addition,
wiring is simple using
commercially available JIScompliant crimp tools.
C o m p a r e d w i t hconventional terminal
blocks, assembling
operability has much
improved.

Hirose has maintained theleading position with top
shares of radio frequency(RF) connectors bycontinuously launchingadvanced products in themobile phone and wireless
LAN markets. Ourconnectors with anultralow height of 0.94 mm
were the first RF
connectors developed tomeet the need for morecompactness and lower
height for assembly sets.

Group Network■ Overseas bases(Branches, manufacturing subsidiaries,sales subsidiaries and affiliates)■ Overseas agencies■ Major exporting destinations● HIROSE ELECTRIC
MALAYSIA Sdn.
Bhd. (Malaysia)● Head office● Yokohama
Engineering Center● Head office● Sales & Marketing
Division
Domestic Sales offices
Overseas offices● Sales & Marketing
Division

5-23, Osaki 5-chome, Shinagawa-ku, Tokyo●P .T. HIROSEELECTRIC INDONESIA(Indonesia)● Subsidiaries

1-11, Osaki 5-chome, Shinagawa-ku, Tokyo
Tachikawa Sales Office, OsakaBranch, Nagoya Sales OfficeHong Kong Branch, Singapore Branch,
Shenzhen Representative Office,Beijing Representative Office● Engineering Division
Yokohama
Engineering Center
Separate Office ofEngineering Center● Production Division
Separate Office of Yokohama
Engineering Center

3-13, Kikuna 7-chome, Kohokuku, Yokohama
8-11, Shin-Yokohama 3-chome,Kohoku-ku, Yokohama
15-10, Shin-Yokohama 2-chome,Kohoku-ku, Yokohama● Affiliates● H IROSE ELECTRIC(DONGGUAN) CO.,LTD. (China)(Domestic)
TOHOKU HIROSE ELECTRIC CO., LTD. (Miyako, Iwate)
KORIYAMA HIROSE ELECTRIC CO., LTD. (Koriyama, Fukushima)
ICHINOSEKI HIROSE ELECTRIC CO., LTD. (Ichinoseki, Iwate)
HST CO., LTD. (Yokohama, Kanagawa)(Overseas)
HIROSE ELECTRIC (U.S.A.), INC. (U.S.A.)HIROSE ELECTRIC GmbH (Germany)
HIROSE ELECTRIC UK LTD. (U.K.)
HIROSE ELECTRIC EUROPE B.V. (The Netherlands)
HIROSE ELECTRIC MALAYSIA Sdn. Bhd. (Malaysia)
HIROSE ELECTRIC (TAIWAN) CO., LTD. (Taiwan)
P.T. HIROSE ELECTRIC INDONESIA (Indonesia)
HIROSE ELECTRIC HONG KONG CO., LTD. (Hong Kong)
HIROSE ELECTRIC (DONGGUAN) CO., LTD. (Dongguan, China)
HIROSE ELECTRIC TRADING (SHANGHAI) CO., LTD. (Shanghai, China)
HIROSE ELECTRIC (SUZHOU) CO., LTD. (Suzhou, China)
HIROSE KOREA CO., LTD. (South Korea)
WEIHAI HIROSEKOREA ELECTRIC CO., LTD. (Weihai, China)
WEIHAI HIROSE TRADING CO., LTD. (Weihai, China)
8Corporate Data

Corporate Data (As of March 31, 2009)
Trade name

HIROSE ELECTRIC CO., LTD.

Date of incorporation

June 15, 1948Number of employees

810 (excluding part-timers)

Paid-in capital¥9,404,379,401

Directors and Corporate Auditors (As of June 26, 2009)
President and Representative Director
Executive Vice President and Representative Director
Managing Director
Director
Director
Outside Director
Full-time Corporate Auditor
Outside Corporate Auditor
Outside Corporate Auditor
Outside Corporate Auditor

Tatsuro Nakamura
Sakae Kushida
Mitsugu Sugino
Yoshikazu Yoshimura
Kazuhisa Nikaido
Masashi Kojima
Toshio Matsubara
Hidesato Sekine
Takashi HigaTerukazu Sugishima

Notes:
1.	Director Masashi Kojima is the outside director as
stipulated in Article 2, Item 15, of the Corporation Law.
2.	Corporate Auditor Hidesato Sekine, Takashi Higa, andTerukazu Sugishima are outside corporate auditors as
stipulated in Article 2, Item 16, of the Corporation Law.

Accounting auditor

9

KPMG AZSA & Co.

Stock Information (As of March 31, 2009)
Total number of shares issued
36,695,013 shares(Excluding 3,325,723 shares of treasury stock)
Number of shareholders

5,281

Major shareholders (Top 10)
Name

Number of shares held

State Street Bank and Trust Company
HIROSE INTERNATIONAL SCHOLARSHIP FOUNDATIONJPMorgan Chase Bank 380055
Japan Trustee Services Bank, Ltd. (Trust account No. 4)
Japan Trustee Services Bank, Ltd. (Trust account No. 4G)
Kosho Sangyo Co., Ltd.
Japan Trustee Services Bank, Ltd. (Trust account)

Hundred shares

60,241
28,55025,514
17,577
15,585
13,941
11,070Japan Trustee Services Bank, Ltd. (Re-trust account of The
Sumitomo Trust & Banking Co., Ltd., and the retirement
benefit trust account of Sumitomo Mitsui Banking Corporation)

8,162

Mizuho Trust & Banking Co., Ltd. 0700016
Mizuho Trust & Banking Co., Ltd. Trust account 0700017

7,898
7,847

Note: In addition to the 10 major shareholders above, the Company owns
33,257 hundred shares of treasury stock.

Distribution of shares by shareholder type
Individuals, etc.
63,542 hundred shares(15.88%)Foreign corporations, etc.
162,835 hundred shares(40.69%)Financial institutions
110,667 hundred shares (27.65%)
Securities companies
4,542 hundred shares(1.13%)
Other corporations
58,619 hundred shares (14.65%)

Shareholder information
Fiscal term

April 1 of a calendar year to March 31 of the next calendar year

Ordinary General
Meeting of Shareholders

June every year

Record dateOrdinary General Meeting of Shareholders: March 31 every year
Year-end dividend: March 31 every year
Interim dividend: September 30 every year
(As required, another record date may be
decided with prior public notice.)[Share-related notifications and inquiries regarding change of address, etc.]
Shareholders who have accounts at securities companies are requested todirect their notifications and inquiries regarding change of address, etc. totheir respective securities companies where shareholders have theiraccounts. Shareholders who do not have accounts at securities companies
are requested to call the telephone referral line as stated below.
Number of sharesin one voting unit

100 shares

Method of public notice

The Company’s Web site below shall be used for its public notices.
〈http://www.hirose.co.jp/investor/index.htm〉
If an electronic public notice should fail due to accident
or any other unavoidable circumstances, the Company
shall post a public notice in the Nihon Keizai Shimbun.

Shareholders’register manager andaccount management
institution for special
accounts

The Sumitomo Trust & Banking Co., Ltd.
5-33, Kitahama 4-chome, Chuo-ku, Osaka

Paperwork
processing officeof shareholders’register manager

The Sumitomo Trust & Banking Co., Ltd.
Securities Agency Department
3-1, Yaesu 2-chome, Chuo-ku, Tokyo(Mailing address)(Telephone referral)

The Sumitomo Trust & Banking Co., Ltd.
Securities Agency Department
1-10, Nikko-cho, Fuchu-shi, Tokyo 183-8701
Phone: 0120-176-417 (Toll-free)

Web site

URL: http://www.sumitomotrust.co.jp/STA/retail/service/daiko/index.html

Web site

http://www.hirose.co.jp[Special accounts]
The Company has opened accounts (special accounts) at The Sumitomo
Trust & Banking Co., Ltd., the shareholders’register manager stated above,for shareholders who did not use JASDEC (Japan Securities DepositoryCenter, Inc.) prior to the transition to the electronic share certificate
system. Shareholders who have inquiries about the special accounts andnotifications regarding change of address, etc. are requested to call thetelephone referral line as stated above.
10venictros

Creatiecs to World EnklLi