Interim report
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1 English translation Consolidated Financial Results for the Three Months Ended June 30, 2026 (IFRS) August 4, 2026 Company name: HIROSE ELECTRIC CO., LTD. URL: https://www.hirose.com/corporate/en/ Stock listing: Tokyo Stock Exchange – Prime Market Code: 6806 Representative: Shin Kamagata, President and Representative Director Information on contact: Masakazu Yamaoka, General Manager of Finance Department Department Tel: +81-45-620-7410 Scheduled date of dividend payable: - Supplemental materials: Yes Earnings presentation held: Yes (For institutional investors and analysts) (Amount Unit: Yen in Millions) (Amounts are rounded to nearest million yen) 1. Consolidated Financial Results for the Three Months Ended June 30, 2026 (From April 1, 2026 to June 30, 2026) (1) Consolidated Operating Results (Cumulative) (Percentage represents year-on-year changes) Revenue Operating profit Profit before tax Profit Profit attributable to owners of parent Total amount of comprehensive income Three months ended % % % % % % June 30, 2026 62,085 26.8 13,338 35.6 14,466 41.3 7,331 1.4 7,331 1.4 9,773 (20.1) June 30, 2025 48,972 9.1 9,833 (4.2) 10,238 (13.5) 7,227 (14.0) 7,227 (14.0) 12,233 (19.5) Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 224.03 224.03 June 30, 2025 213.58 213.58 (Yen in millions) (2) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent As of % June 30, 2026 439,267 379,449 379,449 86.4 March 31, 2026 431,177 378,075 378,075 87.7
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2 2. Dividends Annual dividends 1st quarter end 2nd quarter end 3rd quarter end Fiscal year end Total Yen Yen Yen Yen Yen Year ended March 31, 2026 ― 245.00 ― 260.00 505.00 Year ending March 31, 2027 ― Year ending March 31, 2027 (Forecast) 260.00 ― 260.00 520.00 (Note) Revision of previously announced dividend forecast: None 3. Consolidated Financial Forecasts for the Year ending March 31, 2027 (From April 1, 2026 to March 31, 2027) (Yen in millions) (Percentage represents year-on-year changes) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share % % % % Yen 2nd quarter end (cumulative total) 125,000 22.5 25,500 24.6 27,500 24.4 16,500 6.3 504.26 Fiscal year end 250,000 18.3 50,000 16.3 53,000 13.7 35,000 5.6 1,069.63 (Note) Revision of previously announced business forecast: Yes
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3 *Notes (1) Significant changes in the scope of consolidation during the period : None (2) Changes in Accounting Policies and Changes in Accounting Estimates: 1. Changes in accounting policies required by IFRS : None 2. Changes in accounting policies due to other reasons : None 3. Changes in accounting estimates : None (3) Number of Shares Issued (Ordinary Shares) 1. Number of shares issued at the end of the period (including treasury shares) As of June 30, 2026: 34,530,435 As of March 31, 2026: 35,693,969 2. Number of treasuries at the end of the period: As of June 30, 2026: 1,808,925 As of March 31, 2026: 2,972,750 3. Weighted-average number of shares outstanding during the period (quarterly cumulative): Three months ended June 30, 2026: 32,721,331 Three months ended June 30, 2025: 33,835,464 *This financial results report is not subject to audit by certified public accountants or audit firms. *Explanation for appropriate use of forecast and other notes (Cautionary statements with respect to forward-looking statements) Forward-looking statement s, such as forecast s of business performance, stated in this document are based on information currently possessed by Hirose or certain assumption that Hirose has deemed rational. We cannot make any assurances that the contents mentioned in these forward-looking statements will ever materialize. Actual financial performance could be significantly different from our expectations because of various factors. For the assumptions used and other notes, please refer to “1. Overview of Operating Results and Financial Condition (4) Future Outlook” on page 6. (Method of obtaining supplementary materials on the financial results) We are planning to hold a financial results briefing for institutional investors and analysts on Wednesday, August 5, 2026, online. The presentation materials distributed in this briefing will be published on our website on the day. (English translation) This is the statement translated into English from the Japanese original of "Financial Results for Year Ending March 31, 2027." In the event of any discrepancy between this English translation and the Japanese original, the later shall prevail.
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4 Table of Contents of Attachment 1. Overview of Operating Results and Financial Condition ································ ····················· 5 (1) Overview of Operating Results ································ ································ ················ 5 (2) Overview of Financial Condition ································ ································ ·············· 5 (3) Overview of Cash Flows ································ ································ ······················ 6 (4) Future Outlook ································ ································ ································ ··· 6 2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ····························· 8 (1) Condensed Quarterly Consolidated Statement of Financial Position ································ ····· 8 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income ······ 10 (3) Condensed Quarterly Consolidated Statement of Changes in Equity ································ ··· 12 (4) Condensed Quarterly Consolidated Statements of Cash Flows ································ ········· 13 (5) Notes on Condensed Quarterly Consolidated Financial Statements ································ ···· 14 (Note regarding the going concern assumption) ································ ··························· 14 (Segment information) ································ ································ ······················ 14 (Significant Subsequent Event) ································ ································ ·············· 15
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5 1. Overview of Operating Results and Financial Condition (1) Overview of Operating Results During the first quarter of the fiscal year, the business environment remained uncertain due to prolonged geopolitical risks, including tensions in the Middle East. Nevertheless, demand for electronic components remained solid, particularly in the industrial equipment market, supported by growing capital investment demand in semiconductors and data centers driven by robust AI - related investment. By region, in Japan, production and capital investment remained generally firm, supported by steady semiconductor demand. In the United States, strong AI -related demand continued to drive capital expenditures and support economic activity. In Europe, although the economy showed signs of gradual recovery, growth in consumption and production remained limited. In China, while exports remained strong, the recovery in domestic demand, including consumer spending and capital investment, was sluggish, resulting in a generally weak economic environment. Against this backdrop, our Group's business serving the industrial equipment market achieved increases in both orders and sal es across a broad range of applications and regions, driving overall performance. Sales to the automotive equipment market also grew steadily in all regions, while sales to the consumer electronics market remained stable . Meanwhile, one of the Company’s major subsidiaries has been undergoing a tax audit, including a review of transfer pricing matters, since April 2026. The subsidiary has received an assessment from the tax authorities, and the related amount has been recognized as income tax expense for the first quarter of the fiscal year. The Company and its subsidiaries maintain a position that differs from that of the tax authorities and are considering the use of the Mutual Agreement Procedure (MAP) between the relevant jurisdictions, as well as other remedies available under applicable laws and regulations. As a result, the revenue in fiscal 2026 increased by 26.8% to JPY 62,085 million compared to the same period of the previous fiscal year. Operating profit increased by 35.6% to JPY 13,338 million and profit attributable to owners of parent increased by 1.4% to JPY 7,331 million as compared with the three months of fiscal 2025. The business results by reportable segments are as stated below. [Multi-pin connectors] Our flagship multi -pin connectors include a variety of connector types such as circular conn ectors, rectangular connectors, connectors for ribbon cables , connectors for printed circuit boards, connectors used for FPCs (flexible printed circuits boards) and nylon connectors. Th ese types of connectors are used widely, such as for smartphones, communication equipment, automotive electronics, meas uring and control equipment, FA equipment, and medical electronics equipment, as well as other industrial equipment. We expect that demand for these connectors will grow associated with the progress of advanced information and telecommunications network society, and energy saving society considering environment in the future. Segment sales for the three months of fiscal 2026 increased by 24.6% to JPY 54,125 million, operating profit increased by 34.1% to JPY 11,532 million compared with the three months of fiscal 2025. [Coaxial connectors] Coaxial connectors are a special type of high -performance connectors used primarily for microwave and other high -frequency signals. This is used mainly for antenna connection of Wi-Fi and Bluetooth for smartphone and PC , GPS antenna connection for automobiles and high -frequency signal connection for wireless communication device and electronic measuring instruments. Optical fiber connectors and coaxial switches are also included in this segment. Segment sales for the three months of fiscal 2026 increased by 21.4% to JPY 5,246 million, operating profit increased by 15.3% to JPY 1,468 million compared with the three months of fiscal 2025. [Other products] This segment includes micro switches, semiconductor test products, and instruments for sensors and connectors. Segment sales for the three months of fiscal 2026 increased by 122.8% to JPY 2,714million. Operating loss amounted to JPY 338 million, compared with operating loss of JPY 42 million in the same period of the previous year. (2) Overview of Financial Condition Total assets for the three months of fiscal 2026 increased by JPY 8,090 million to JPY 439,267 million compared to the end of the previous consolidated fiscal year mainly because cash and cash equivalents, and trade and other receivables increased. Total liabilities increased by JPY 6,716million to JPY 59,818 million because of the increase in trade and other payables . Total
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6 shareholders' equity increased by JPY 1,373 million to JPY 379,449 million, mainly due to the increase in other components of equity, such as the recognition of quarterly income and foreign currency translation adjustments, etc. As a result, the ratio of total equity attributable to owners of parent resulte d in 86.4%, decreased by 1.3 points compared with the previous consolidated fiscal year end. (3) Overview of Cash Flows Cash and cash equivalents (funds) on a consolidated basis for the three months of fiscal 2026 increased by JPY 22,964 million to JPY 110,299 million compared to the end of the previous consolidated fiscal year a. Cash flows from operating activities Cash flows from operating activities for the three months of fiscal 2026 increased by JPY 12,197 million. (In the same period of the previous year , it increased by JPY 11,839 million.) This was mainly due to an increase in funds resulting from quarterly income before income taxes of JPY 14,466 million and depreciation and amortization of JPY4,949 million. b. Cash flows from investing activities Cash flows from investing activities for the three months of fiscal 2026 increased by JPY 19,196 million. (In the same period of the previous year , it decreased by JPY 7,181 million.) This was mainly due to a n increase in funds, mainly because of a net decrease of JPY26,876 million in time deposits. c. Cash flows from financing activities Cash flows from financing activities for the three months of fiscal 2026 decreased by JPY 8,940 million. (In the same period of the previous year, it decreased by JPY 8,539 million.) This is because of the decrease in capital by dividends paid, JPY 8,508million. (4) Future Outlook Based on recent business performance trends, we have revised our earnings forecast for the Second Quarter and the Full Fiscal Year ending March 2027, which was announced on May 11, 2026, as follows. Revision of Consolidated Earnings Forecast for the Second Quarter of FY202 6 (April 1, 2026 to September 30, 2026) (Yen in millions) Revenue Operating Profit Profit before tax Profit attributable to owners of the parent Basic earnings per share Previous Forecast (A) (May 11, 2026) 115,000 23,000 24,000 17,000 519.54 yen Revised Forecast (B) 125,000 25,500 27,500 16,500 504.26 yen Change (B-A) 10,000 2,500 3,500 (500) - Rate of change (%) 8.7 10.9 14.6 (2.9) - (Ref.) Results for the previous year's Q2 (FY2025 Q2) 102,025 20,461 22,101 15,523 459.37 yen
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7 Revision of Consolidated Earnings Forecast of FY 2026 (April 1, 2026 to March 31, 2027) (Yen in millions) Revenue Operating Profit Profit before tax Profit attributable to owners of the parent Basic earnings per share Previous Forecast (A) (May 11, 2026) 230,000 46,000 48,000 34,000 1,039.08 yen Revised Forecast (B) 250,000 50,000 53,000 35,000 1,069.63 yen Change (B-A) 20,000 4,000 5,000 1,000 - Rate of change (%) 8.7 8.7 10.4 2.9 - (Ref.) Results for the fiscal year ended Mar, 2026 211,264 42,995 46,626 33,142 991.91 yen Exchange rates for the full year are assumed to be 1US$ = JPY 155.00, 1€ = JPY180.00, and 1 South Korean won = JPY0.1050, respectively. There is no change in the dividends’ forecast.
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8 2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (1) Condensed Quarterly Consolidated Statement of Financial Position (Yen in millions) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 87,335 110,299 Trade and other receivables 49,871 56,881 Inventories 30,193 33,728 Other financial assets 57,594 32,488 Other current assets 8,800 5,333 Total current assets 233,793 238,729 Non-current assets Property, plant and equipment 90,360 90,251 Right-of-use assets 5,912 6,426 Intangible assets 7,730 8,043 Other financial assets 86,806 89,271 Deferred tax assets 2,788 2,833 Retirement benefit asset 2,779 2,703 Other non-current assets 1,009 1,011 Total non-current assets 197,384 200,538 Total assets 431,177 439,267
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9 (Yen in millions) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Trade and other payables 16,747 20,535 Lease liabilities 1,046 1,069 Other financial liabilities 1,181 1,049 Income taxes payable 6,473 8,091 Other current liabilities 7,354 7,882 Total current liabilities 32,801 38,626 Non-current liabilities Lease liabilities 5,179 5,670 Other financial liabilities 101 83 Retirement benefit liability 433 423 Deferred tax liabilities 13,445 13,861 Other non-current liabilities 1,143 1,155 Total non-current liabilities 20,301 21,192 Total liabilities 53,102 59,818 Equity Share capital 9,404 9,404 Capital surplus 11,462 11,562 Retained earnings 364,932 344,984 Treasury shares (47,774) (28,995) Other components of equity 40,051 42,494 Total equity attributable to owners of parent 378,075 379,449 Total equity 378,075 379,449 Total liabilities and equity 431,177 439,267
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10 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income (Condensed Quarterly Consolidated Statement of Profit or Loss) (Yen in millions) Three months ended June 30, 2025 (From Apr 1, 2025 to Jun 30, 2025) Three months ended June 30, 2026 (From Apr 1, 2026 to Jun 30, 2026) Revenue 48,972 62,085 Cost of sales 28,215 36,094 Gross profit 20,757 25,991 Selling, general and administrative expenses 10,926 12,384 Other income 227 110 Other expenses 225 379 Operating profit 9,833 13,338 Financial income 1,070 1,296 Finance costs 665 168 Profit before tax 10,238 14,466 Income tax expense 3,011 7,135 Net profit 7,227 7,331 Profit attributable to: Owners of parent 7,227 7,331 Earnings per share: Basic (yen) 213.58 224.03 Diluted (yen) 213.58 224.03
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11 (Condensed Quarterly Consolidated Statement of Comprehensive Income) (Yen in millions) Three months ended June 30, 2025 (From Apr 1, 2025 to Jun 30, 2025) Three months ended June 30, 2026 (From Apr 1, 2026 to Jun 30, 2026) Profit for the period 7,227 7,331 Other comprehensive income Items that will not be reclassified to profit or loss Equity instruments measured at fair value through other comprehensive income 557 997 Total items that will not be reclassified to profit or loss 557 997 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 4,392 1,406 Financial assets measured at fair value through other comprehensive income 57 39 Total items that may be reclassified to profit or loss 4,449 1,445 Total other comprehensive income after tax 5,006 2,442 Total comprehensive income for the period 12,233 9,773 Total amount of comprehensive income attributable to: Owners of parent 12,233 9,773
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12 (3) Condensed Quarterly Consolidated Statement of Changes in Equity (Yen in millions) Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of parent Total equity Balance as of April 1, 2025 9,404 11,224 348,972 (27,462) 28,009 370,147 370,147 Profit for the period 7,227 7,227 7,227 Other comprehensive income 5,006 5,006 5,006 Total comprehensive income for the period － － 7,227 － 5,006 12,233 12,233 Dividend of surplus (8,290) (8,290) (8,290) Purchase of treasury shares (2) (2) (2) Disposal of treasury shares 0 4 4 4 Cancellation of treasury shares － － Share-based payment transactions 59 59 59 Transfer to retained earnings － － Total transactions with owners － 59 (8,290) 1 － (8,229) (8,229) Balance as of June 30, 2025 9,404 11,284 347,909 (27,462) 33,015 374,150 374,150 (Yen in millions) Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of parent Total equity Balance as of April 1, 2026 9,404 11,462 364,932 (47,774) 40,051 378,075 378,075 Profit for the period 7,331 7,331 7,331 Other comprehensive income 2,442 2,442 2,442 Total comprehensive income for the period － － 7,331 － 2,442 9,773 9,773 Dividend of surplus (8,508) (8,508) (8,508) Purchase of treasury shares (1) (1) (1) Cancellation of treasury shares (18,774) 18,774 - - Share-based payment transactions 104 6 110 110 Transfer to retained earnings 18,770 (18,770) － － Total transactions with owners － 100 (27,278) 18,779 － (8,399) (8,399) Balance as of June 30, 2026 9,404 11,562 344,984 (28,995) 42,494 379,449 379,449
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13 (4) Condensed Quarterly Consolidated Statements of Cash Flows (Yen in millions) Three months ended June 30, 2025 (From Apr 1, 2025 to Jun 30, 2025) Three months ended June 30, 2026 (From Apr 1, 2026 to Jun 30, 2026) Cash flows from operating activities: Profit before tax 10,238 14,466 Depreciation and amortization 4,647 4,949 Impairment loss (or reversal) 111 163 Financial income (1,070) (1,296) Financial costs 665 168 Decrease (increase) in trade and other receivables (4,128) (6,527) Decrease (increase) in inventories (52) (3,396) Increase (decrease) in trade and other payables 2,463 3,804 Others 3,993 3,810 Subtotal 16,867 16,141 Interest received 613 733 Dividends received 205 211 Income taxes paid (5,846) (4,888) Cash flows from operating activities 11,839 12,197 Cash flows from investing activities Net increase (decrease) in time deposits (759) 26,876 Proceeds from sale and redemption of investments 2,312 656 Purchase of investments (3,085) (3,117) Purchase of property, plant and equipment (5,228) (4,668) Others (421) (551) Cash flows from investing activities (7,181) 19,196 Cash flows from financing activities Purchase of treasury shares (2) (1) Dividends paid (8,290) (8,508) Repayments of lease liabilities (250) (293) Others 3 (138) Cash flows from financing activities (8,539) (8,940) Effect of exchange rate changes on cash and cash equivalents (11) 511 Decrease (increase) in cash and cash equivalents (3,892) 22,964 Cash and cash equivalents at the beginning of the year 85,666 87,335 Cash and cash equivalents at the end of the year 81,774 110,299
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14 (5) Notes on Condensed Quarterly Consolidated Financial Statements (Note regarding the going concern assumption) Not applicable (Segment information) 1. Business segment (1) Overview of reportable segments In the reportable segments of Hirose group, it is possible to acquire isolated financial information among constituent units of our group. It is also an object being examined on a regular basis to evaluate our decision regarding resource allocation and business results by the board of directors. Our business is manufacturing and selling mainly connectors and other products, and we formul ate a domestic and global comprehensive strategy for our products and service. Therefore, Hirose group consists of segments by products based on the sh ape of connectors. Our reportable segments are “multi- pin connectors” and “Coaxial connectors”. “Multi-pin connectors” include circular and rectangular connectors implemented to the outside of devices. They also include connectors implemented internal of the devices, such as connectors for ribbon cables, connectors for printed circuit boards, connectors used for FPCs (flexible printed circuit boards) and nylon connectors. “Coaxial connectors” are a special type of high -performance connectors connecting high-frequency signals such as micro wave, and this segment includes optical fiber connectors. (2) Information on reportable segments The accounting method for reported business segments is generally the same as that applied in the consolidated financial statements for the previous fiscal year. Profits of reportable segments are based on operating income. Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) (Yen in millions) Reportable segments Others * Consolidated Multi-pin connectors Coaxial connectors Total Revenue Revenue from external customers 43,433 4,321 47,754 1,218 48,972 Total revenue 43,433 4,321 47,754 1,218 48,972 Operating profit 8,601 1,274 9,875 (42) 9,833 Financial income － － － － 1,070 Financial costs － － － － 665 Profit before tax － － － － 10,238 * “Others” category is not included into reportable segments. “Others” includes micro switches and instruments for connectors. Geographic information (Yen in millions) Japan China South Korea Others Total Revenue 8,224 18,020 8,702 14,026 48,972 Percentage of consolidated revenue (%) 16.8 36.8 17.8 28.6 100.0 Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026)
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15 (Yen in millions) Reportable segments Others * Consolidated Multi-pin connectors Coaxial connectors Total Revenue Revenue from external customers 54,125 5,246 59,371 2,714 62,085 Total revenue 54,125 5,246 59,371 2,714 62,085 Operating profit 11,532 1,468 13,000 338 13,338 Financial income － － － － 1,296 Financial costs － － － － 168 Profit before tax － － － － 14,466 * “Others” category is not included into reportable segment s. “Others” includes semiconductor test products, sensors, and instruments for connectors. Geographic information (Yen in millions) Japan China South Korea Others Total Revenue 12,026 20,926 9,839 19,294 62,085 Percentage of consolidated revenue (%) 19.4 33.7 15.8 31.1 100.0 (Significant Subsequent Event) (Share Buyback Program) The Company announced that its Board of Directors resolved at a meeting on August 4, 2026, to repurchase its own shares under Article 156 of the Companies Act as applied pursuant to Article 165, paragraph 3 of the same law, as described below. 1.Reason to Share Buyback The Company will execute Share Buyback to increase the level of shareholder returns and improve capital efficiency as well as to enable a flexible capital policy in response to changes in the business environment. 2.Details of Share Buyback Program (1) Class of shares Common stock (2) Total number of shares to be repurchased Up to 700,000 shares (2.14% of total shares outstanding, excluding treasury stock) (3) Total amount to be paid for repurchase Up to 15,000,000,000 yen (4) Period of repurchase From August 10, 2026 to November 30, 2026 (5) Method of repurchase Purchase on the Tokyo Stock Exchange