Medium-term Growth Strategy

Transcription

1 Financial Results Presentation Material 1 Direction of Medium-term Growth Strategy 2016, May 10 th Hirose Electric Co.,Ltd. P id President Kazunori Ishii

2 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 from those discussed in the forward-looking statements. Thank you for your understanding.

3 Hirose : Growth image 3 Maintain high profit management and grow sales in the medium-term (hundred million yen / fiscal year) Actual Forec ast Future Direction 1,250 ( ) Sales 2016 decrease but bottom out for continuous added-value growth

4 Hirose: Application image 4 Office machinery New market Automotive Inner: FY2015 Outer: FY2020 New mobile phone 2015 Slowdown in smartphone growth and expansion of new information terminal ( SeeP56formore) P.5,6 Accelerating preparation for next core business Communication Industrial Consumer Double-wheeled growth plan smartphone + consumer and automotive/industrial + infrastructure ( SeeP78foremore) P.7,8 Accelerate medium-term management and grow continuously

5 Production trend of smartphone 5 Smartphone which had continued double-digit digit growth will slow down to single-digit after 2016, but is still expected to increase by tens of millions unit per year. [Production trend forecast of smartphone/mobile phone] (hundred million yen / year) % 86% 88% 90% 91% 92% 84% 20 73% 80% % % 46% % 29% 44% % 39% 15% % 6.9 7% 6% 5% 4% 4.8 3% 15% 0 0% スマートフォン Smartphone フィーチャーフォン Feature phone スマートフォン対前年 成 率 Smartphone YoY growth ratio (right ( 右軸 ) スマートフォン 率 Smartphone ratio ( 右軸 (right) axis) axis) Source: HRS estimation Smartphone market will continue mild growth

6 Expansion of new information terminal market 6 Real cloud society will arrive, with each wearable device and IoT module connecting internet by communication function devices with smartphone, tablet etc. as host device Smart glass Head mounted display Activity tracker Smart watch Cloud *Wristband -type Drone Action camera Communication robot Information terminal connected to internet will become more various, and smaller and space-saving connectors will be needed (Smartphone market product use will enhance)

7 IoT to each market 7 New product, service, system utilizing IoT will spread to various market Consumer Smart House Information / Communication infrastructure Manufacturing/Factory Smart Factory (Industrie 4.0 etc) Automotive/Bicycle Smart Mobility Smart Network Medical equipment Smart Medical New connector needs will arise in many market

8 Hirose : Application strategy image 8 Basic direction Synergy effect Con nsumer m arket Cost & Speed capabilities Smart Network High spec & quality capabilities Ind infrast Auto omotiv tructure dustrial l e & ve G-WING (Hirose Medium-term vision) [Consumer] & [Automotive, Industrial infrastructure] Double-wheels of continuous growth!

9 Hirose : Strategic investment for the future 9 Key trend : IoT (Connecting to everything) Cloud ECO Key technology : Enhance High speed, High-frequency, High-power, Smaller Strategic investment Technology development High speed, high-frequency transmission technology Large current, environment resistant technology Mold processing, plating technology Factory / Equipment Reinforce domestic/overseas factory Ultraprecise process equipment Testing/assessment facility for automotive / industrial IT infrastructure Reinforce each main system Enrich communication system Equip decision-making support system

10 Hirose : Growth investment and Shareholder return 10 We will use cash prioritizing investment based on mediumterm growth strategy and then aim for better shareholder return Growth investment R&D investment (Technology for high-speed transmission, high current, etc) Factory / equipment investment (New factory of Hirose Korea, enhance testing facility, etc) IT investment (Backbone global expansion, strengthen informational communication etc) M&A / Partnership (Enhance existing business, commence new business, collaborate with other companies, etc) Utilized cash with good balance Shareholder return 1. More active dividend Raise dividend payout ratio to approximately 40% (Accumulated dividend payout ratio from FY2011 to FY2015 was 35.0%) 2. Continue share buyback Aim for better total shareholder return (Accumulated total shareholder return ratio fromfy2011 tofy2015 was 62.4%) By growing profit and improving to appropriate shareholders equity, we aim to return to over 8% ROE on and after FY2018!

11 [Appendix] Dividend per share/payout ratio/return ratio of last 5 years( ) 11 (Yen) 500 Accumulated 5 years total shareholder 77.1% return ratio: 62.4% % 41.9% 46.7% 85.6% 100.0% 50.0% % 35.9% Accumulated d5 years dividend id d payout ratio: 35.0% % 30.6% 34.2% % 0.0% -50.0% % (FY)

12 12 <<<New fiscal year: FY2016>>> Accomplish G-WING!! -This will be the starting year of Hirose s s forthcoming launch and jump -