Quarterly Financial Results
for the Six-month Period
Ended September 30, 2018

I. Financial Results and Outlook
The six-month period ended September 30, 2018（April 1, 2018 - September 30, 2018）

1

I. Summary of Financial Results
Overview
Hirata worked harder for receiving new orders on electric vehicle business and also developing new customers.
Some of the second quarter’s incoming orders and sales on automotive related business, however, were postponedand business investment on organic EL were rescheduled to a later date. In consequence, the sales and profit
decreased.
(Units in millions of Yen)

Apr–Sep2017

Sales

47,350Apr–Sep
2018

34,855(Units in millions of Yen)

Apr. 2017 - Sep. 2017
Apr. 2018 - Sep. 2018

YoY Change-26.4%

Operating
Income

5,807

3,525

-39.3%

Ordinary
Income

5,616

3,723

-33.7%

Profit attributable toowners of the parent
company

3,966

2,614

-34.1%

47,35034,855

Sales

46,53544,73842,15232,527

Orders Received

Orders Outstanding

2I. Breakdown of Sales by Business Unit
100%

8.8%

21.9%

10.9%

9.0%
16.9%

26.3%

13.2%

11.4%

19.2%

28.8%
31.4%

13.8%

17.7%

13.6%

24.8%

9.4%

31.5%

4.6%

2.4%

18.8%

18.7%

21.7%

40.1%

39.6%

41.1%

37.6%

37.1%

34.8%

17／03

18／03

19／03

30.1%

26.6%

27.7%

3.5%

30.2%

20.4%

43.4%
21.1%

38.0%

41.9%

24.9%
12.7%

14.0%

10／03

11／03

30.1%

30.3%

15／03

16／03

0%
12／03

Automotive Production
Semiconductor Production
Others

13／03

14／03

FPD(Flat Panel Display) Production
Home Appliances Assembly and Other Facilities*The figure of FPD related business was integrated into semiconductor related business since April 2012.

2Q

3

I. Factor Analysis on Changing Operating Income

Decreasein sales△2.28bn+700mil+5.8bn△340mil△2.64bn
Improvement
in COGS margin

Increasein SG&A+3.52bn

Apr. 2017 – Sep. 2017
Operating Income

Apr. 2018 – Sep. 2018
Operating Income4I. Balance Sheet
Balance Sheet
Please note that the figures of FY2018 and FY2019 Q2 are changed based on accounting standards for tax effect accounting.

AssetsApr. 2017 –Mar. 2018

Current Assets

71,467

Apr. 2018 –Sep. 2018

67,943

YoY Change△3,523Fixed Assets

23,86324,622+758

Tangible
Fixed Assets
Intangible
Fixed Assets
Investments
and other assets

17,376

18,347

+970

814

732

△815,672

5,542

△130

Total Assets

95,33092,566△2,764

Liabilities(Units in millions of Yen)

Apr. 2017 –Mar. 2018

Apr. 2018 –Sep. 2018

Y to Y Change

Current Liabilities

37,48539,448+1,962

Fixed Liabilities

11,262

6,929△4,333

Total Liabilities

48,74846,377△2,370Total Net Assets

46,582

46,188△393

Capital Ratio

48.3%

49.3%

＋1.0Point

Net Assets

Main impact factors
AssetsTrade receivables
Cash/deposit with banks
Inventories

Liabilities/Net Assets△6,041

Accrued expenses payable

△531

△773

Trade payables△505＋2,900Accounts payable△4305

I. Assumed exchange rate, etc.
Assumed exchange rate
(Units in Yen)

Assumed exchange rate

From Apr. 1, 2018 to Sep. 30, 2018
(Actual rate)

From Oct. 1, 2018
(Applied assumption rate)

Exchange rate（against USD）

107.56100.00Transition of our stock prices(Units in Yen)

Transition ofour stock prices

Apr. 1, 2018 to Mar. 31, 2019

Apr. 1, 2016 toMar. 31, 2017

Apr. 1, 2017 toMar. 31, 2018

Highs9,560

14,720

8,050

8,760

8,780

Lows

2,275

8,030

6,600

6,800

7,780

End of period

9,010

9,780

7,430

8,610

8,180

July

AugustSeptember

PER／PBR／ROE
PER／PBR／ROE

Apr. 1, 2016
to Mar. 31, 2017

Apr. 1, 2017
to Mar. 31, 2018

Apr. 1, 2018
to Sep. 30, 2018

PER（x）

14.43

15.26

－※

PBR（x）

3.12

2.26

1.88

ROE（％）

24.30

18.18

－※

Please note that there is no information on PER & ROE due to incomparable numbers on the basis of quarterly profit.

6I. Sales, Orders Received and Outstanding by Business Unit(Units in millions of Yen)

Business Unit

Sales

Orders
Received

OrdersOutstanding

Apr 2017– Sep 2017

Apr 2018– Sep 2018

YoY
ChangeAutomotive

16,676

12,120△27.3%

Semiconductor

20,357

14,327△29.6%

Home Appliances & others

8,075

7,564

△6.3%

Others2,240843△62.4%

TOTAL

47,35034,855△26.4%

Automotive

10,911

17,774＋62.9%

Semiconductor

23,315

7,763△66.7%

Home Appliances & others

11,0285,869△46.8%

Others

1,279

1,120

△12.5%

TOTAL

46,53532,527△30.1%

Automotive

19,62023,112＋17.8%

Semiconductor15,870

9,332△41.2%

Home Appliances & others

7,830

9,085

＋16.0%

Others1,416622△56.0%

TOTAL

44,73842,152△5.8%
7

I. Global Business Overview
Sales by region

China/TaiwanEurope
South-east Asia

HEE（Germany）
EV related contract
gainedAiming for market
expansion

HAS, HME（Shanghai, China）

HCA（U.S.A）

Chinese auto market in growth period
Aiming for business deployment basedon China’s growth path

Automotive projects
on the table
Wait-and-see
political movements

HET（Thailand）

HCT（Taiwan）

HFM（Malaysia）

LCD Business as plannedBusiness on track forsemiconductor business

HSL（Singapore）

North America

HEM（Mexico）
Automotive segment
performing strong
supported bycollaboration withHCA(U.S.A)

Dull capital investment inhome appliances business(Units in millions of Yen)

JapanAsia

North America

Europe

18/3
2Q

19/3
2Q

18/3
2Q

19/3
2Q

18/3
2Q

19/3
2Q

18/3
2Q

Sales

40,61528,386

4,045

3,044

2,383

3,175

305

Operating
Income

5,448

3,354

394

490

137

△344

△9TOTAL

19/3
2Q

18/3
2Q

19/3
2Q

249

47,35034,855△135,970

3,487

Please note that total figure of operating income is before consolidation adjustments between regional segments.

8I. Topics – Business update on Organic EL/EV
Business update on Organic EL/EV(Units in millions of Yen)

Apr–Sep 2017
Amount oforders received

Sales

Apr–Sep 2018
Amount oforders received

Sales

Organic EL related business

13,52812,781295

4,931

Electric vehicle related business

1,663

4,429

4,276

1,617

●Organic EL related business
The sales of organic EL related business accounted for about 34% of its total
semiconductor sales, which was the decrease of 61% over the previous year. The
incoming orders was decreased by 98% over the previous year.

●Electric Vehicle related business
The sales of EV related business accounted for 13% of its total automobile sales, which
was the decrease of 63% over the previous year. The incoming orders was increased by
57% over the previous year.
9I. Topics – Client Accolades
Client Accolades 1

Hirata is honored to announce that we received the best partner award from CanonTokki
Corporation in October. This marks the second time for the second consecutive year.
They highly evaluated Hirata’s technical and manufacturing capabilities on producing
vacuum deposition equipment, which is the heart of production equipment used fororganic EL panel.
Hirata aims to provide products with higher credibility to our customers now and forever.

Hirata’s CEO Yuichiro Hirata received a plaquefrom Chairman and CEO Teruhisa Tsugami,Canon Tokki Corporation

10I. Topics – Client Accolades
Client Accolades 2

Hirata Engineering (Thailand) Co., Ltd. (hereinafter “HET”), one of Hirata’s subsidiaries inThailand, received FY2017 regional best performance award from JATCO (Thailand) Co.,Ltd. (hereinafter “JTL”).
HET is highly evaluated in its technical strength and capabilities to cope with projects
including price for continuously variable transmission processing equipment HET orderedfrom JTL.

HET’s managing director Mitsuru
Mori(left) received a plaque.
11

Ⅱ Market Trend andForecast for FYE March 2019
The six-month period ended September 30, 2018（April 1, 2018 - September 30, 2018）12

II. Forecasts for FYE March 2019: Earnings Forecast
Hirata announced the revised sales estimate on November 13, 2018.

(Units in millions of Yen)

The figures announced on

The figures announced on

2018/5/10

2018/11/13

FY2019/3(Forecast)

FY2019/3(Forecast)

94,16395,00083,000Automotive

34,95540,00035,000

Semiconductor

37,33830,00027,000Home appliances &others

17,56922,00019,000

4,299

3,000

2,000

FY2018/3(Actual)
Sales

OthersOperating Income(margin)

9,371(10.0%)

6,500（6.8％）

5,200（6.3％）

Ordinary Income (margin)

9,247(9.8%)

6,400（6.7％）

5,300（6.4％）

Profit attributable to ownersof the parent company(margin)

6,666(7.1%)

4,400（4.6％）

3,800（4.6％）

Measures for achieving our business targets


For automotive related business, Hirata tries harder to receive further orders in electric vehicle sector in addition to power train
business such as transmission.

The orders for vacuum equipment used for OLED will decrease. Hirata projects business of IoT and silicon wafer transfer
equipment for self-driving technology will grow.

Hirata structures its production system more efficiently, strengthens its revenue base, and participates into growing markets
aggressively.

13II. Forecasts for FYE March 2019: Amendment of dividend Forecast
Dividends and dividend ratio per share

Dividends per share(JPY)

FYE Mar 2015

FYE Mar 2016

FYE Mar 2017

FYE Mar2018

15.00

30.00

100.00Including memorial

125.00FYE Mar 2019
(Estimate)125.00dividend of 25.00

Dividend ratio（％）

16.4

17.5

16.0

19.5

35.0

Note : Dividend ratio is not on a consolidated basis.

Dividend forecast
At Hirata, we consider various factors when making dividends payments, such as business performance,
management and financial environments. With our basic principle of making stable and continuous dividends toour shareholders, while at the same time preserving internal reserves to prepare funds for business expansions
and maintain solid business foundation, we recognize that it is important that dividend payments and policies
need to be at times flexible and consistent with business performances.
Hirata plans to distribute JPY125.00, which is the same as the last year, for the fiscal year ending March 31, 2019.

14

II. Forecasts for FYE March 2019: Business Environment
Automotive-related business
Developing countries have been leading the global automobile sales growth, which is estimated to slow
down. The Japanese domestic market remained flat. The automobile industry is facing structural changes
with advance in technologies such as Electric Technology, Information Technology and Artificial Intelligencebringing brand new business opportunities. For Electric Vehicle, many companies have been proactively
improving key factors such as infrastructure and battery life. The sales decreased due to delay in investment
activities in facilities such as an US auto manufacturer for fuel-cell vehicles.

Semiconductor-related businessIn terms of semiconductor market, the growth of the memory market and EL for display has slowed down
while demands from automobiles and industrials have been growing. The delays in sales plan for
smartphones with organic EL resulted in decrease in our sales and profits. We expect the market will expand
again because of the foreseeable growth of organic EL.

Home appliances and other facilities business
Our primary customers, the high-performance home appliance producers, have temporarily slowed down

investments. We are working closely with our clients to ensure future orders once the investment activities
come back. We also expect new orders from tire producers.
15

Ⅲ. Reference Data
The six-month period ended September 30, 2018（April 1, 2018 - September 30, 2018）16

III. Quarterly Trends of Sales by Business Unit
Sales by Business Unit

(Units in millions of Yen)

28,424586
5,420

27,21825,931
1,261
4,058

20,614

21,419
4,016

9,700

Semiconductor
Home Appliances & others
Others

979

896

4,194

918

Automotive

6,196

392

1,140
3,297

9,879

20,234

19,594

8,627

14,621450
3,097

10,478

8,763

12,7164Q
2017/3

8,353

6,710

7,617
11,475

10,731

6,7593Q

4,467

1Q

5,944

6,803

2Q

3Q
2018/3

8,663
3,456

4Q

1Q

2Q
2019/317

III. Quarterly Trends of Received Orders by Business Unit
Received Orders by Business Unit

19,39324,28823,912

604

655

4,546

5,688

505
2,531

(Units in millions of Yen)

22,623

22,913

624

549

438

19,378

3,433
5,340

9,011

8,533

9,116
7,989

23,643

12,542

Automotive
Semiconductor
Home Appliances & others
Others

310

3,156
4,424

10,773

13,148
809
2,713

8,472

3,339
8,367

3Q

4Q
2017/3

11,488

10,39610,019
5,026

5,885

1Q

2Q

6,286

5,720

3Q
2018/3

4Q

1Q

2Q
2019/318

III. Quarterly Trends of Orders Outstanding by Business Unit
Outstanding Orders by Business Unit

(Units in millions of Yen)

Automotive
Home Appliances & others

49,6892,359

45,553

5,751

2,377
4,877

Semiconductor
Others48,05643,534
1,771
6,507

825

44,738
1,416

7,966

7,830

49,23944,481

206

346

10,84010,781

28,081

15,87025,385

3Q

4Q
2017/3

12,703

16,051
15,575

19,68019,620

1Q

2Q

9,332

15,89625,48923,213

23,112

17,4583Q
2018/3622
9,085

13,496
12,91242,152

4Q

1Q

2Q
2019/319

III. R&D, CAPEX, Depreciation and Amortization(Units in millions of Yen)

1,646

Apr. - Sep., 2017
Apr. - Sep., 2018

847

388

515

458

R&D Expenses

Capital Expenditures

571

Depreciation & Amortization
20

III. Key Financial KPIs/Indicators
Account Receivables/Turnover period(Units in millions of Yen)

45,64244,260189(Days)

49,61548,58843,573210

178

Inventory/Turnover period

182

0.16

0.52
0.20

20,974

0.46
0.22

0.53
0.25

20,707

0.45D/E ratio

12,0764655

48

Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q Mar19 2Q
Turnonver Period

Total shareholder’s equity/Equity ratio(Units in millions of Yen)(%)

43,435 45,097 46,091 45,660 45,662

43.0

45.7

48.3

47.0

49.3

0.23

Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q Mar19 2Q
Debt with interest

12,699Inventory(X)

24,081(Days)

9,175
48

Turnover Period(Units in millions of Yen)

0.56

10,66638

Debt with interest/Debt equity ratio/Net debt equity ratio

24,139 23,352

14,445

199

Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q Mar19 2Q
A/R Turnover Period(Units in millions of Yen)Net D/E ratio

Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q Mar19 2Q
Total shareholder's equity

Equity ratio

Note 1) Accounts receivable turnover period and Inventory turnover period list its average number of each quarter.

21

Cautionary statement with this document

Forecasts and other forward-looking statements presented here
represent judgment we made based on information available at thetime this presentation was prepared, and involve risks or
uncertainties, such as economic conditions, competition with rival
companies, and exchange rate. Readers should understand,therefore, that actual results may be significantly different fromforecasts referred to or stated here due to changes in businessenvironments and other factors.

22