Quarterly Financial Results
for the Three-month Period
Ended June 30, 2018

I. Financial Results and Outlook
The Fiscal Year ended on March 31, 2019（April 1, 2018 through June 30, 2018）

1

I. Summary of Financial Results
Overview
The number of orders for organic EL vapor deposition equipment in semiconductor sector and home appliances
related business decreased while that of orders for automotive related business increased. Some of the firstquarter sales moved back to July or later.

In consequence, the sales and profit decreased.
(Units in millions of Yen)

49,239(Units in millions of Yen)

Apr. 2017 –Jun. 2017
(Actual)Sales

25,931

Apr. 2018 –Jun. 2018(Actual)14,621

Apr. 2017 - Jun. 2017
YoY Change△43.6%
25,931

Operating
Income

3,181

1,471

43,534

Apr. 2018 - Jun. 2018△53.7%

23,912
19,378

14,621
Ordinary
Income

3,095

1,691

△45.4%

Profit attributable toowners of the parentcompany

2,064

1,123

△45.6%
Sales

Orders Received

Orders Outstanding2

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%

3.1%

18.8%

18.7%

21.2%

40.1%

39.6%

30.1%

26.6%

27.7%

3.5%

52.1%

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

37.6%

37.1%
23.6%

0%
12／03

13／03

Automotive Production
Semiconductor Production
Others

14／03

17／03

18／03

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.

19／03
1Q3

I. Factor Analysis on Changing Operating Income

Decreasein sales△1.7bn+3.18bn△2.43bn+150mil+570mil
Decreasein SG&A
Decreasein rateof COGS

Apr. 2017 – Jun. 2017
Operating Income+1.47bn

Apr. 2018 – Jun. 2018
Operating Income4I. Balance Sheet
Balance Sheet
Please note that the figures of FY2018 and FY2019 Q1 are changed based on accounting standards for tax effect accounting.
(Units in millions of Yen)

Asset

Apr. 2017 –Mar. 2018

Current Assets

71,467

Apr. 2018 –Jun. 2018

72,671YoY Change+1,204Apr. 2017 –Mar. 2018

Apr. 2018 –Jun. 2018

Current Liabilities

37,48538,696+1,210

Fixed Liabilities

11,262

12,259+996

Total Liabilities

48,74850,956+2,207

Liabilities

YoY Change

Fixed Assets

23,86324,468+604

Tangible
Fixed Assets
Intangible FixedAssets
Investments
and other assets

17,376

18,211+834

814

775

△385,672

5,482

△190

Total Net Assets

46,582

46,183△398

Total Assets

95,33097,139+1,809

Capital Ratio

48.3%

47.0%

△1.3Point

Net Assets

Main impact factors
AssetsLiabilities/Net Assets

Inventories＋3,523

Debt with interest＋3,106

Cash/deposit with banks＋1,532

Accrued expense△875

Trade receivables△3,972

Income taxes payable△8155

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

Assumed exchange rate

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

From Jul. 1, 2018
(Applied assumption rate)

Exchange rate（against USD）

106.30100.00Transition of our stock prices(Units in Yen)

Transition ofour stock prices

Apr. 1, 2016 toMar. 31, 2017

Apr. 1, 2017 toMar. 31, 2018

Highs

9,560

Lows
End of period

Apr. 1, 2018 to Mar. 31, 2019
AprilMay

June

14,720

10,58010,530

8,270

2,275

8,030

9,070

7,650

7,230

9,010

9,780

10,380

7,970

7,950

PER／PBR／ROE
PER／PBR／ROE

Apr. 1, 2016
to Mar. 31, 2017

Apr. 1, 2017
to Mar. 31, 2018

Apr. 1, 2018
to Jun. 30, 2018

PER（x）

14.43

15.26

－※

PBR（x）

3.12

2.26

1.86

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

OrdersOutstanding

YoY
Change3,456△67.8%

Semiconductor

9,879

7,617

△22.9%

Home Appliances & others

4,058

3,097

△23.7%

Others1,261

450△64.3%

TOTAL

25,931

14,621△43.6%

5,026

11,488＋128.5%

12,5424,424△64.7%

5,688

3,156

△44.5%

Others655310△52.6%

TOTAL

23,912

19,378△19.0%

Automotive

19,68025,489＋29.5%

Semiconductor

15,575

12,703△18.4%

Home Appliances & others

6,507

10,840＋66.6%

Others1,771

206△88.4%

TOTAL

43,534

49,239＋13.1%AutomotiveOrders
Received

Apr 2018- Jun 2018

10,731

AutomotiveSales

Apr 2017– Jun 2017

Semiconductor
Home Appliances & others

7

I. Global Business Overview
Sales by region

China/Taiwan
EuropeNorth America
HCA（U.S.A）

HAS, HME（Shanghai, China）

Business maintained
strong mainly in theautomotive segment

Revenue growth in the automotive segment

South-east Asia

HEE（Germany）
Business in recovering
process as market
environment improves

HET（Thailand）

HCT（Taiwan）

HFM（Malaysia）

Business on track for both LCD
and semiconductor businesses

HSL（Singapore）

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

Focus on receiving continuation
order mainly in the home
appliance segment(Units in millions of Yen)

JapanAsia

North America
18/3
1Q

19/3
1Q

Europe

18/3
1Q

19/3
1Q

18/3
1Q

19/3
1Q

18/3
1Q

Sales

22,964

12,387

2,217

1,162

557

942

191

Operating
Income3,424

1,378262

44△40463△2TOTAL

19/3
1Q

18/3
1Q

19/3
1Q

128

25,931

14,621△203,279

1,466

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

8I. Topics – Receiving order for EV related business
Hirata received order for EV related equipment from a European auto manufacturer

In April 2018, Hirata received an order for battery packaging
equipment for Electric vehicle from an automotive manufacturer inEurope with about 2 billion yen in sales.
It was 2 years ago Hirata first received an order for Electric vehicle
related business. This order means not only Hirata’s anotherproven record of its technology but also opening the way toEuropean market and exploring new business opportunities.

9I. Topics – Client AccoladesClient Accolades

Hirata is honored to announce that it was recognized by U.S.
automaker General Motors Company (GM) as a “2017 Supplier of theYear” for transmission assembly equipment. This marks the third time
Hirata received the award. GM recognized 125 of its best suppliers
from 17 countries who have exceeded GM’s expectations, createdoutstanding value, and supplied innovations to GM.
Hirata received a plaque at ceremony held at Florida on April 20, 2018.

10

I. Topics – New building for Taihei Technos
Taihei Technos, one of Hirata’s domestic subsidiaries, constructed a new building

In May 2018, Taihei Technos, one of Hirata’s domestic subsidiaries,
newly established a building, which is two-story and 1,737.95m2 total
floor space.
This new building provides enough space for integrated manufacturing
such as harness, board wiring assembly, instrumentation work and soon. Hirata group works for its future business expansion.
This is how the new building looks like

We held a dedication ceremony on May 28

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

II. Forecasts for FYE March 2019: Earnings Forecast(Units in millions of Yen)FY2018/3(Actual)

FY2019/3(Forecast)

94,16395,000Automotive

34,95540,000

Semiconductor

37,33830,000Home Appliances & others

17,56922,000

4,299

3,000

Sales

OthersOperating Income（margin）

9,371(10.0%)

6,500（6.8％）

Ordinary Income (margin)

9,247(9.8%)

6,400（6.7％）

Profit attributable to owners of
the parent company (margin)

6,666(7.1%)

4,400（4.6％）

Reasons for the full-year sales estimate and 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 decreased. Hirata projects growth on its semiconductor
related business of IoT and silicon wafer transfer equipment for self-driving technology.

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

13II. Forecasts for FYE March 2019: Business Environment

Automotive-related business
The number of automobile global sales tends to increase in the medium to long term. Plus, it is predicted that you
see sales expansion in North America, China, India, and Thailand. The number of electric vehicle also tends toincrease. A forecast says domestic demand will recover and continue strong. Hirata predicts that its business mainly
power train such as transmission and EV related production equipment will continue strong.

Semiconductor-related business
Semiconductor market continues to expand since semiconductor products have been used in various fields such as
automotive, home appliances, and so on. As to OLED panel, it is predicted that the market demand may slow down
and the future is still unclear even though smartphones lead the market and the markets for television and in-car

display are predicted to grow.

Home appliances and other facilities businessYou see slowing growth due to round of demand in Chinese market. On the other hand, China market has the potential for
expansion in terms of monetary amounts with high-spec home appliances’ demand for a wealthy class. Under thecircumstances, Hirata tries to receive orders for high-spec home appliances equipment especially for vacuum cleaner from aprincipal customer continuously. Orders for tire related business are also expected.

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Ⅲ. Reference Data
The three-month period ended June 30, 2018（April 1, 2018 - June 30, 2018）15

III. Quarterly Trends of Sales by Business Unit
Sales by Business Unit
28,424

Automotive586

Semiconductor
Home Appliances & others
Others(Units in millions of Yen)

5,420

25,931

447

4,194

19,594

4,016

9,700

1,140
3,297

9,879

3,653

6,196

21,41997989617,004

918

1,261
4,058

20,614

27,218

8,627

14,621450
3,097

10,478

8,763

8,353

7,111
12,716
5,791

6,759

2Q

3Q
2017/3

4Q

7,617
11,475

10,731

1Q

5,944

6,803

2Q

3Q
2018/3

3,456

4Q

1Q
2019/316

III. Quarterly Trends of Received Orders by Business Unit
Received Orders by Business Unit
27,227576
3,512

19,393
8,417(Units in millions of Yen)

Automotive

Semiconductor

Home Appliances & others

Others24,28823,912

604

655

4,546

5,688

505
2,531

22,623

22,913624

549

43819,378

3,433
5,340

9,011

8,533

9,116
7,989

23,643

12,542

310

3,156
4,424

10,773
8,472

14,721
8,367

2Q

3Q
2017/3

4Q

11,488

10,396

10,019
5,026

5,885

1Q

2Q

5,720

3Q
2018/3

4Q

1Q
2019/317

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

50,90949,689

2,750

2,359

45,553

7,414

5,751

2,377
4,877

14,270(Units in millions of Yen)

Automotive

Semiconductor

Home Appliances & others

Others43,534
1,771
6,507

2Q

44,738825

44,481

2061,416

7,966

346

10,8407,830

10,781

13,496
12,912

28,081

3Q
2017/3

15,87025,385

4Q

12,703

16,051
15,57526,47349,23948,056

19,68019,620

1Q

2Q

15,89625,48923,213
17,4583Q
2018/3

4Q

1Q
2019/318

III. R&D, CAPEX, Depreciation and Amortization

1,224(Units in millions of Yen)

Apr. - Jun., 2017

Apr. - Jun., 2018

279

214

242

246

152

R&D Expenses

Captial Expenditures

Depreciation & Amortization
19

III. Key Financial KPIs/Indicators
Account Receivables/Turnover period

Inventory/Turnover period(Days)(Units in millions of Yen)

51,23849,61548,588210(Units in millions of Yen)

200

194

189

45,64244,260178

9,355

10,666

12,699
9,175

190
180

182

14,445220
210(Days)

170

3538484846160

Mar18 1Q Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q
A/R

Turnover Period

Inventory

Debt with interest/Debt equity ratio/Net debt equity ratio(X)(Units in millions of Yen)

29,78524,081
24,139 23,352
20,974

0.76
0.36

0.52

0.46

0.53

0.16

0.20

0.22

0.25

Mar18 1Q Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q
D/E ratio

Net D/E ratio

Turnover Period

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

38,95038.80.56

Debt with interest

Mar18 1Q Mar18 2Q Mar18 3Q Mar18 4Q Mar19 1Q(%)

43,43543.0

45,09745.7

46,091 45,660

48.3

47.0

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

Equity ratio

Note 1) Accounts receivable turnover period and Inventory turnover period list its average number of each quarter.
Note 2) The figures of FY2018 and FY2019 Q1 are changed based on accounting standards for tax effect accounting.

20

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.

21