Quarterly Financial Results
for the Six-month Period
Ended September 30, 2019

I. Financial Results and Outlook
The six-month period ended September 30, 2019（April 1, 2019 - September 30, 2019）1

I. Summary of Financial Results
Overview
The downturn in the global economy led to our customers’ small capital investments. Under thesituation, our sales especially in automotive and semiconductor related business were below thesame period last year. In consequence, the sales and profit decreased.
(Units in millions of Yen)

Apr–Sep2018

Apr–Sep2019

YoY
ChangeApr. 2018 - Sep. 2018
Apr. 2019 - Sep. 201934,855
Sales

34,85528,415△18.5%
28,415

Operating
Income

3,525

1,104

△68.7%

Ordinary
Income

3,723

1,250

△66.4%

Profit attributableto owners of theparent company

2,614

765

△70.7%
Sles

32,527
31,674

Orders Received(Units in millions of Yen)

42,152

32,844

Orders Outstanding

2I. Breakdown of Sales by Business Unit
100%

10.9%

9.0%
16.9%

26.3%

11.4%

19.2%

28.8%
31.4%

13.8%

17.7%

13.6%

24.8%

31.5%

4.6%

2.4%

5.2%

18.8%

18.7%

21.7%

19.7%

40.1%

39.6%

37.6%

37.1%

17／03

18／03

30.1%

26.6%

27.7%

3.5%

9.4%

33.5%

39.1%

30.2%

20.4%
21.1%
38.0%

41.9%

24.9%

30.1%

30.3%

15／03

16／03

42.4%

36.0%

14.0%
0%
11／03

12／03

13／03

14／03

Automotive production

FPD(Flat Panel Display) production

Home appliances & others

Others*The figure of FPD related business was integrated into semiconductor related business since April 2012.

19／03

Semiconductor production

20／03
2Q

3I. Factor Analysis on Changing Operating Income△1.49bn

3.52bn△2.42bn

Decreasedin sales△1.08bn+150mil

Increasedin COGS margin

Decreasedin SG&A

1.1bn

Apr. 2018 – Sep. 2018
Operating Income

Apr. 2019 – Sep. 2019
Operating Income4I. Balance Sheet
Balance Sheet(Units in millions of Yen)

AssetsApr. 2018 –Mar. 2019

Current Assets

64,321

Apr. 2019 –Sep. 201955,247

YoY Change△9,073Fixed Assets

26,25225,993△259

Tangible
Fixed Assets
Intangible
Fixed Assets
Investments
and other assets

20,33620,009

△327

676

588

△885,238

5,395＋156

Total Assets

90,573

81,240△9,333Apr. 2018 –Mar. 2019

Apr. 2019 –Sep. 2019

Current Liabilities

36,71825,031△11,687

Fixed Liabilities

7,244

10,169＋2,924

Total Liabilities

43,96335,200△8,762

Total Net Assets

46,61046,040△570

Capital Ratio

50.9%

56.0%

＋5.1Point

Liabilities

YoY Change

Net Assets

Main impact factors
Liabilities/Net Assets

AssetsTrade receivables△10,918

Trade payables△4,550Inventories＋1,410Debt with interest△3,173＋428

Advances received＋606

Retirement benefit assets

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

From Apr. 1, 2019 to Sep. 30, 2019
(Actual rate)

From Oct. 1, 2019
(Applied assumption rate)

Exchange rate（against USD）

108.84100.00Transition of our stock prices(Units in Yen)

Transition ofour stock prices

Apr. 1, 2019 to Mar. 31, 2020

Apr. 1, 2017 toMar. 31, 2018

Apr. 1, 2018 toMar. 31, 2019

Highs

14,720

10,580

6,820

7,240

7,240

Lows

8,030

4,285

5,980

5,820

6,500

End of period

9,780

7,640

6,730

6,600

7,040

July

AugustSeptember

PER／PBR／ROE
PER／PBR／ROE

Apr. 1, 2017to Mar. 31, 2018

Apr. 1, 2018
to Mar. 31, 2019

Apr. 1, 2019
to Sep. 30, 2019

PER（x）

15.26

17.33

－※

PBR（x）

2.26

1.72

1.60

ROE（％）

18.18

10.06

－※

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

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

Business unit

Sales

Ordersreceived

Ordersoutstanding

Apr 2018– Sep 2018

Apr 2019– Sep 2019

YoY
ChangeAutomotive

12,120

10,224△15.6%

Semiconductor

14,327

11,102△22.5%

7,5645,610△25.8%

Others843

1,478＋75.3%

TOTAL

34,85528,415△18.5%

Automotive

17,774

11,232△36.8%

Semiconductor

7,763

13,323＋71.6%

Home appliances & others

5,869

5,522

△5.9%

Others

1,120

1,596

＋42.5%

TOTAL

32,527

31,674△2.6%

Automotive

23,112

15,759△31.8%

Semiconductor

9,332

10,321＋10.6%

Home appliances & others

9,085

6,032

△33.6%

Others622731＋17.4%

TOTAL

42,152

32,844△22.1%

Home appliances & others

7I. Global Business Overview
Sales by region

China/TaiwanEuropeNorth America
HCA（U.S.A）

HAS, HME（Shanghai, China）

Had a hard time with
automotive sales due to
auto manufacturers’
less investments onplant and equipment

Revenue growth in the automotive segment

South-east Asia

HEE（Germany）
Not strong sales
in the automotivesegment

HET（Thailand）

HCT（Taiwan）

HFM（Malaysia）

Sales of semiconductor related
business on a weak note

HSL（Singapore）

HEM（Mexico）

Had a hard time with
automotive sales due to
auto manufacturers’
less investments onplant and equipment

Focus on receiving orders
continuously mainly in thehome appliance segment(Units in millions of Yen)

JapanAsia

North America

Europe

19/3
2Q

20/3
2Q

19/3
2Q

20/3
2Q

19/3
2Q

20/3
2Q

19/3
2Q

Sales

28,38623,348

3,044

3,075

3,175

1,781

249

Operating
Income

3,354

1,052

490

668

△344

△467

△13TOTAL

20/3
2Q

19/3
2Q

20/3
2Q

210

34,85528,415

△83

3,487

1,170

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

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

Apr–Sep 2018
Amount oforders received

Apr–Sep 2019

Sales

Amount oforders received

Sales

Organic EL related business

295

4,931

6,179

3,793

Electric vehicle related business

4,276

1,617

684

1,048

●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 23% over the previous year. The incoming orders increased at a great rate.
●Electric vehicle related business
The sales of EV related business accounted for about 10% of its total automobile sales, which was thedecrease of 35% over the previous year. The incoming orders were decreased by 84% over theprevious year.

The reason why the amount of orders received decreased compared with that of the first quarter is acustomer cancelled its order due to a plan change in their plant. The total amount of orders received,
however, remains the same because of orders increased in other businesses.
9I. Topics – Client Accolades
Client accolade
Hirata is honored to announce that we received a regional special award from JATCO Ltd on July 17, 2019. Hirata
manufactured and sold a transmission assembly system to JATCO. We proposed and incorporated our designconcept called ACS(Assembly Cell System) into this assembly system and JATCO authorized this concept asJSL(JATCO Standard Line). The system unified simply and efficiently with the ACS concept and it led to on-time

delivery and quality early stabilization. JATCO honors parts manufacturers and equipment manufacturers for their
good development, quality improvement and manufacturing every year. JATCO selected 37 manufacturers for four
categories and Hirata was chosen as one of them this year.

This is the plaque Hirata received
10I. Topics – Participation in exhibition
Participation in China International Industry Fair 2019
Hirata’s robotics department, and HAS and HEM which are Hirata’s subsidiaries in China jointly with adomestic distributor participated in the China International Industry Fair 2019 held in Shanghai,
September 17 through 21. There were 2,610 exhibitors and 182,000 visitors. Hirata exhibited ademonstration device consisting of 6 stations including our new design robots. 1,600 visitors, whichwere over our expectations, came to our booth. Hirata works harder to explore new business
opportunities and bring in new customers.

Hirata booth with lots of visitors
11Ⅱ Market Trend andForecast for FYE March 2020
The six-month period ended September 30, 2019（April 1, 2019 - September 30, 2019）12

II. Forecasts for FYE March 2020: Earnings Forecast
Please note that there is no revision on our business forecasts.

(Units in millions of Yen)FY2019/3(Actual)Sales

FY2020/3(Forecast)

77,30270,000Automotive

32,76029,000

Semiconductor

25,93922,000Home appliances & others

16,78017,000

1,821

2,000

OthersOperating Income（margin）

6,249(8.1%)

2,300（3.3％）

Ordinary Income（margin）

6,306(8.2%)

2,200（3.1％）

Profit attributable to owners of
the parent company（margin）

4,637(6.0%)

1,400（2.0％）

Reasons for the full-year sales estimate and measures for achieving our business targets
 We foresee both sales and profits would be lower than those of the previous year under the unclear situation ofincoming orders environment.
 We make use of our global capabilities and the know-how we developed in order to exploit new market and customers

which can be expected to grow besides the existing business domains. We also review our cost structure byintroducing the latest processing machines for better production efficiency and investment for our new plant, andstrengthen our revenue base even under a changing market.

13II. Forecasts for FYE March 2020: Dividend Forecast
Dividends and dividend ratio per share

FYE Mar 2016

Dividends per share
(JPY)

30.00

Dividend ratio（％）

17.5

FYE Mar 2017100.00FYE Mar 2018

125.00Including memorial

FYE Mar 2019

FYE Mar 2020
(Estimate)125.00

40.00

28.4

30.1dividend of 25.00

16.0

19.5

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 JPY40.00 for the fiscal year ending March 31, 2020.

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II. Forecasts for FYE March 2020: Business Environment
Automotive-related businessIn terms of automobile sales, it is predicted that the US market remains flat and the Japan and China market
slows down a bit. Under the situation, developing countries have been leading the global automobile sales.
We received orders for electric vehicle related equipment especially from Japanese and European
manufacturers in the last fiscal year. We work harder to expand our markets continuously not only in North
America and Japan, but also in Europe and China.

Semiconductor-related business
The semiconductor market remained at a low level even though the market for deposition system of organic
EL for display was on a rising trend since the beginning of this term. It seems like the market is bottoming
out with extensive investment for 5G and demand increase of in-car device. Moreover, we work harder toreceive more orders for silicon wafer transfer related business.

Home appliances and other businessWe work closely with our clients, the high-performance home appliance producers, to ensure future orders
for their next models’ investments.

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Ⅲ. Reference Data
The six-month period ended September 30, 2019（April 1, 2019 - September 30, 2019）16

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

(Units in millions of Yen)

Automotive
Semiconductor
Home appliances & others
Others27,218918

22,195

6,196

19,594
1,140
3,297

8,627

14,621

20,234

20,251

533

392

444

3,588

4,467

5,626

6,710

8,353

4,720

8,663

9,459

2018/3

1Q

2Q

3Q
2019/3

6,380

11,180

3,456

4Q

678
2,3524,721

11,475

3Q

800
3,258

7,617

6,803

14,588

6,891

450
3,097

13,827

4Q

5,047

5,176

1Q

2Q
2020/317

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

22,913(Units in millions of Yen)

Automotive
Semiconductor
Home appliances & others
Others23,643438

549

19,37818,172

3,433
9,011

16,738310
3,156

13,148
8,533

4,424

13,141

809

521

2,713

2,779

3,339

812
4,759

8,452

5,620

3,243

4,871

11,488

10,396

4Q

8,059

6,286

5,720

2018/3

13,5013,471

8,472

3Q

447

783
2,279

6,657
4,575

4,220

1Q

2Q

3Q
2019/34Q

1Q

2Q
2020/318

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

48,056(Units in millions of Yen)

Automotive
Semiconductor
Home appliances & others
Others49,23944,481

206

346

10,840825
7,966

10,781

42,15235,042622

33,931

9,085
699
12,703

16,051

6,238
9,332

29,586
613

597
5,142

32,844
731
6,032

6,121

15,896
10,231

11,830

10,321

8,099
25,48923,213

23,112
17,87217,458

3Q

4Q
2018/3

1Q

2Q

3Q
2019/3

14,751

16,36015,7594Q

1Q

2Q
2020/319

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

Apr. - Sep. 2018
Apr. - Sep. 2019

458

1,646

571

531

600

217

R&D Expenses

Capital Expenditures

Depreciation & Amortization
20

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

43,573Inventory/Turnover period(Days)

46,469(Units in millions of Yen)

(Days)

12,07643,963

10,38637,9907,752

33,044199

200

Mar19 2Q

Mar19 3Q

213

195

Mar19 4Q

Mar20 1Q

A/R Turonver period

55

Mar20 2Q

20,707 21,463 18,862
17,635

0.23
Mar19 2Q

0.41

0.31
Mar19 3Q

Debt with interest

0.39

0.16

0.17

Mar19 4Q

Mar20 1Q

D/E ratio

Mar19 3Q

9,163

433946

Mar19 4Q

Mar20 1Q

Mar20 2Q

Inventory(X)(Units in millions of Yen)

0.47

Mar19 2Q

Turnover period

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

0.45

50

183

8,693

Turnover period

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

45,662 45,448

46,107(%)

45,312 45,519

15,688

0.34

49.3

49.5

Mar19 2Q

Mar19 3Q

50.9

53.8

56.0

0.09
Mar20 2Q

Net D/E ratio

Mar19 4Q

Total shareholder's equity

Mar20 1Q

Mar20 2Q

Equity ratioNote) Accounts receivable turnover period and Inventory turnover period list its average number of each quarter.

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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 oruncertainties, 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.

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