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Business Results for the First Quarter of FY2026 August 5 , 2026 Hirose Electric Co. , Ltd. ( 6806 )
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Cautionary StatementIn 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.*Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “may” or “might” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. These statements are based on management’s assumptions and beliefs in light of the information currently available to it.
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3 Sales increased YoY and QoQ across all market segments, marking a strong start to FY2026. While the impact of higher material costs persisted, profitability improved slightly as a result of higher shipment volumes. In the industrial segment, sales reached a new record high, driven by strong demand from Factory Automation (FA) applications. Sales to smartphone and consumer/mobile markets remained solid overall despite variations across regions and applications. In addition, sales to automotive/mobility-related applications continued to grow. As a result, net sales increased 26.8% year-on-year, operating profit rose 35.7%, and the operating profit ratio improved to 21.5%. Orders received totaled JPY 71.06 billion, up 36.6% from the same period of the previous year.Summary of the business results (FY2026.1Q From April, 2026 to June, 2026)QoQ（2026.1Q/2025.4Q）YoY（2026.1Q/2025.1Q）FY2026.1Q2026.Apr-JunFY2025.4Q2026.Jan-MarFY2025.1Q2025.Apr-Jun+12.4%+36.6%710.6 632.4520.1Orders+13.5%+26.8%620.8 547.2489.7Sales+27.1%+35.6%133.4104.998.3Operatingprofit+2.3pt+1.4pt21.5%19.2%20.1%Operatingprofit ratio(Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 4 Changes in sales and operating profit (FY2025.1Q - FY2026.1Q / Consolidated basis)489.7530.5545.2547.2620.898.3106.3120.4104.9133.420.1%20.0%22.1%19.2%21.5%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0% 0100200300400500600700 25.1Q 25.2Q 25.3Q 25.4Q 26.1Q SalesOperating profitOperating profit ratio(Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. Business Results for FY2026.1QIncrease/Decrease ratio(YoY)Increase/Decrease(YoY)FY2026.1Q（FY ended June 30, 2026)FY2025.1Q(FY ended June 30, 2025)+26.8%+131.1620.8489.7Sales+0.558.1%57.6%COGS Ratio-2.419.9%22.3%SGA Ratio+35.6%+35.1133.498.3Operating profit+1.4pt21.5%20.1%(%)+41.3%+42.3144.7102.4Profit before tax+2.4pt23.3%20.9%(%)+1.4%+1.073.372.3Net profit-3.0pt11.8%14.8%(%)86.4%89.0%Shareholder’s Equity Ratio224.03円213.58円Earnings Per Share5FY2026.1QFY2025.1Q159.49 yen144.59 yen1US$185.39 yen163.80 yen１€10.63 yen10.34 yen100 won (Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 131.1 hundred millions yen Increased（489.7 → 620.8）0.5 pt Deteriorated（57.6% → 58.1%）Variable Expense Ratio :40.8% → 43.5% Depreciation Ratio :7.9％ → 6.7％Labor Cost Ratio :7.8% → 7.3% 2.4 pt Improved（22.3% → 19.9%）7.2 hundred millions yen Increased（+4.0 → +11.2） SalesCOGS RatioSGA RatioFinancial income / costsForeign exchange gain/loss: -6.5 → ＋2.5 General Industrial:＋65Automotive/Mobility-related:＋28Telecommunications :＋12Hirose SER:＋11 6 FY2026.1Q Major Changes year-on-year 109.3 → 123.8 (+14.6）(Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 985518-14-3-3-257133Analysis of Operating Profit for FY2026 Compared to the Same Period Last Year(Yen in hundred millions) 7Increase in volumeExchange rate impactIncrease in depreciation expensesIncrease in labor costsIncrease in material and procurement costsOthersPrice OptimizationFY25 1Q Operating ProfitFY26 1Q Operating Profit
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 8 RemarkIncrease/DecreaseJun 30, 2026Mar 31, 2026AccountProfit before tax +144Transfer from Time Deposit +266Dividend payment -85Capital Investment (including buildings, etc.) -47+229.71,103.0873.3Cash and Cash equivalentsSales Growth+70.1568.8498.7Trade and otherreceivablesSecuring inventory due to increased production+35.4337.3301.9InventoriesTime deposit reduction -266-226.41,217.61,444.0Other financial assets-1.1902.5903.6Property, plant andequipment+5.264.359.1Right-of-use assetUnpaid consumption tax refund -36-31.9199.2231.1Others+80.94,392.74,311.8Total Assets Consolidated Balance Sheet （１）Assets Total of cash in bank1,370.9 1,334.6 -36.3(Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. RemarkIncrease/DecreaseJun 30, 2026Mar 31, 2026AccountIncreased in accounts payable due to purchases Increase +21+37.9205.4167.5Payables and other debt+5.267.462.2Lease liabilitiesSurcharges for Transfer Pricing+16.280.964.7Income taxes payable+7.9244.5236.6Others+67.2598.2531.0Total+1.0209.7208.7Capital stock and Capital surplusNet Income for the period ＋76Dividend Payment -85Cancellation of treasury shares -187-199.53,449.83,649.3Retained EarningsCancellation of treasury shares+187+187.8- 289.9- 477.7Treasury SharesExchange Rate Conversion Adjustment (Due to Yen Depreciation) +14+24.4424.9400.5Others+13.73,794.53,780.8Total+80.94,392.74,311.8Total Liabilities andShareholder’s Equity Consolidated Balance Sheet （２） 9(Yen in hundred millions) LiabilitiesShareholder’s Equity
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 10 Changes in Capital Investment and Depreciation (Consolidated basis)(Yen in hundred millions) （*Excluded: Investment in land, building, software） 188 212 199 25046140 149 161 1804111.4%11.2%9.4%10.0%7.4%8.5%7.9%7.6%7.2%6.6%0.0%020406080100120140160180200220240260280300 FY2023 FY2024 FY2025 FY2026 Forecast FY2026.1Q Capital InvestmentDepreciation Capital Investment RatioDepreciation Ratio170
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. Distribution of Shareholders 1129.10%31.78%33.99%35.46%37.67%1.97%2.25%3.07%2.29%0.48%14.87%15.20%15.59%15.39%15.72%42.62%39.90%38.41%34.93%37.24%3.94%4.22%3.97%3.83%3.89%7.49%6.65%4.97%8.10%5.00% 0%10%20%30%40%50%60%70%80%90%100% Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Jun. 2026Treasury StocksIndividual and OthersForeign CorporationOther CorporationSecurities FirmFinancial Institution
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 12 Sales by Application _ General IndustrialQoQYoYFY2026FY20251Q4Q1Q+19%+46%206173141Sales33%1411441621732061Q 2Q 3Q 4Q 1QFY2025 FY2026 (Yen in hundred millions) Driven by strong growth in FA-related applications, quarterly sales significantly surpassed the previous record high of JPY18 billion.FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 13 Sales by Application _ Smartphone Although sales to the China market were soft, solid performance in other markets supported a steady start overall.17% QoQYoYFY2026FY20251Q4Q1Q+6%+4%108102104Sales1041221151021081Q 2Q 3Q 4Q 1QFY2025 FY2026 (Yen in hundred millions)FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 14 Sales by Application _ Consumer/Mobile Equipment Although its sales contribution remains limited, growth in edge AI-related applications, together with expanding customer and application coverage, helped drive overall growth.15%86908784951Q 2Q 3Q 4Q 1QFY2025 FY2026 QoQYoYFY2026FY20251Q4Q1Q+13%+10%958486Sales(Yen in hundred millions)FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 15 Sales by Application _ Automotive/Mobility-related Supported by a diversified customer base and broad product lineup, growth continued, with quarterly sales entering the JPY 15 billion range for the first time.25%QoQYoYFY2026FY20251Q4Q1Q+11%+22%156140128Sales1281371381401561Q 2Q 3Q 4Q 1QFY2025 FY2026 (Yen in hundred millions)FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 13151722251Q 2Q 3Q 4Q 1QFY2025 FY2026164%Although the AI server sales mix remained largely flat, overall sales continued to grow steadily. Sales by Application _ Telecommunications infrastructureQoQYoYFY2026FY20251Q4Q1Q+14%+92%252213Sales(Yen in hundred millions)FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 17 (Yen in hundred millions) While continuing capital investments to support the FY2026 sales target of JPY 6.0 billion, production ramp-up is progressing as planned. Non-connector business: "Hirose SER"QoQYoYFY2026FY20251Q4Q1Q+57%-117-Sales487111Q 2Q 3Q 4Q 1QFY2025 FY20262%Consolidated from August 2025FY2026.1Q Composition RatioChanges in Quarterly Sales
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. For the Year Over the Previous Actual AmountFirst Half Over the Previous Actual Amount FY2026 Forecast in Aug.(FY ending March 31, 2027)FY2026 Forecast in May(FY ending March 31, 2027)FY2025 Actual(FY ended March 31,2026%Amount Change%Amount ChangeFor the YearFirst HalfFor the YearFirst HalfFor the YearFirst Half+18.3%+387.4+22.5%+229.82,5001,2502,3001,1502,112.61,020.2Sales59.8%59.8%60.0%60.0%57.9%57.9%COGS Ratio+16.3%+70.1+24.6%+50.4500.0255.0460.0230.0429.9204.6Operating Profit20.0%20.4%20.0%20.0%20.4%20.1%（%）+13.7%+63.7+24.4%+54.0530.0275.0480.0240.0466.3221.0Profit before tax21.2%22.0%20.9%20.9%22.1%21.7%（%）+5.6%+18.6+6.3%+9.8350.0165.0340.0170.0331.4155.2Net Profit14.0%13.2%14.8%14.8%15.7%15.2%（%）1,069.63yen―1,039.08yen―991.91yen―Earnings per share520yen260円520yen260yen505yen245yenDividend per share9.4%9.0%8.9%ROE48.6%―50.0%―50.9%―Consolidated Dividend Payout Ratio Business Forecast for the Year Ending March 31, 2027 (Consolidated) 18FY2026ForecastFY2025Actual155.00yen150.77yen1US$180.00yen174.79yen１€10.50yen10.59yen100won Guidance revised upward, primarily reflecting strength in the industrial market segment. [Exchange rate](Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 67901001860 60 FY25 実績 FY26 予測(5月) FY26 予測(8月) FY25 実績 FY26 予測(5月) FY26 予測(8月) 19 Annual Sales Forecast by Connector Segment / Non-Connectors (Hirose SER) (round of number)General IndustrialSmartphoneAutomotive/Mobility-relatedConsumer/MobileEquipment YoY in May+15%-3%-2%+10%+34%+233%Telecommunications infrastructureHirose SERYoY in Aug. +34%±0%+4%+16%+49%+233% 620710830443430445347340360543600630FY25ActualFY26Forecast(May)FY26Forecast(Aug)FY25ActualFY26Forecast(May)FY26Forecast(Aug)FY25ActualFY26Forecast(May)FY26Forecast(Aug)FY25ActualFY26Forecast(May)FY26Forecast(Aug)679010018 60 60FY25ActualFY26Forecast(May)FY26Forecast(Aug)FY25ActualFY26Forecast(May)FY26Forecast(Aug)General IndustrialSmartphoneConsumer/Mobile EquipmentAutomotive/Mobility-relatedTelecommunicationsHirose SERFY2026 Forecast for the previous year(Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 20Common StockClass of sharesUp to 700,000 shares(2.14% of total shares outstanding, excluding treasury stock)Total number of shares to be repurchasedUp to 15,000,000,000 yenTotal amount to be paid for repurchaseFrom Aug. 10, 2026 to Nov. 30, 2026Period of repurchasePurchase on the Tokyo Stock ExchangeMethod of repurchase Shareholder Returns: Share Buyback ProgramHIROSE ELECTRIC CO., LTD. will execute the Share Buyback to increase the level ofshareholder returns and to improve capital efficiency as well as to enable a flexiblecapital policy in response to changes in the business environment.Announced in May 2025Decided on a policy to acquire treasury shares up to a total of 60 billion yen over the four-year period from FY2025 to FY2028.
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. 2121 Strengthening the supply system for the automotive marketTo address growing demand for automotive products, Hirose Korea will establish the AMC Logistics Center (construction scheduled to commence in Sep 2026, with completion planned for Dec 2027). By strengthening its logistics and warehousing capabilities, the company will further enhance its global supply chain and expand its worldwide supply framework.Role of the AMC Logistics Center1. Responding to the growing demand for automotive connectors2. Efficiency of inbound and outbound operations through the introduction of automated transport3. Achieving stable supply through improved storage capacityBuilding OverviewSite area: 6,404.7㎡Building area: 3,781.8 m² Structure: 8-storyStrengthening global supply systems by flexibly responding to market conditions and demand fluctuations ＜Appearance＞ Topic: Establishment of Hirose Korea 'AMC Logistics Center'
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved. FY2026 1Q CompositionratioFY2026FY20251Q4Q3Q2Q1Q33%206173162144141‘General Industrial17%108102115122104‘Smartphone15%9584879086‘Consumer/MobileEquipment25%156140138137128‘Automotive/Mobility-related4%2522171513‘Telecommunications Infrastructure Equipment1%55455‘OA Equipment95%594526523513478Total of Connector Sales2%11Hirose SER*3%1621221712‘Others100%621547545530490Total Appendix.Sales by Applications round number (quarterly basis) 22* Included in “Others” in FY2025 (Yen in hundred millions)
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© 2026 HIROSE ELECTRIC CO., LTD. All rights reserved.