Progress of Medium-term Growth Strategy
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1 Material for financial results briefing 1 Progress of Medium-term Growth Strategy t (Previous title [May 10 th (Tue)] ) : Direction of Medium-term Growth Strategy) 2016, Nov 1 st Hirose Electric Co.,Ltd. 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 1 Hirose : Growth image (re-post <plus>) 3 Maintain high profit management and grow sales in the medium-term (hundred million yen / fiscal year) Actual Forec ast Future Direction 1,250 ( ) es Sale 2016 decrease but bottom out for continuous added-value growth <plus> Currency effect, unclear global economy etc. Several unexpected events
4 2 Hirose : Application strategy image (re-post) 4 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!
5 2 Hirose : Application strategy image Rev -Ⅱ 5 Medium-term plan Rev-Ⅱ G-WING 3 Key Trend Cloud (Energy- saving) Build 3 strong pillars and accomplish medium-term G-WING
6 3 Topics (trend) [1] Eti Estimated td number of automotives ti owned (hundred millions of units) Estimated number of IoT/IoE device 6 USA JPN FRA GER GBR BRA RUS CHN IND Others Increase sensitivity towards Big changes = New business opportunities (source: HRS estimate).
7 3 Topics (trend) [2] 7 More competition due to technology fusion Image of technology fusion of 3 main areas Previous Future Crossing area Consumer Consumer USB expands VR AI IoT Auto Motive Industry Auto Motive GPS Industry Evolvement & expansion of each area technology fusion and more evolution Industrial barrier become lower More active entrance to each other s area More expectation towards expansion of connection business By using HRS s advantage of able to link each areas, HRS will build strong pillars in each area and aim stable growth
8 3 Topics (trend) [3] 8 Approach towards standardization (Cooperation with HARTING) Market background [Connector changes related to IoT] Currently conventional standard such as RJ-45 is used. However, with the trend to connect various things, connection point will increase, and increasing mounting density is essential. Therefore, miniaturized I/O connectors are demanded. New Standard d for Ethernet t connectors for Industrial equipments Next-generation highspeed connector for Industrial equipment HARTING and Hirose focus on a new standard Agreement of joint development, product standardization and marketing for a new small, robust and high-speed 10Gbit Ethernet interface that will set a new standard for Industry-4.0 applications HIROSE-President Kazunori Ishii (left) and CEO Philip Harting are looking forward to their future cooperation (source: HARTING HP)
9 4 Hirose : Strategic investment for the future(re-post) 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 4 HRS: Strategic investment for the future (this FY) 10 HIROSE KOREA (New) Precision Connector Center ICHINOSEKI Extension of Testing center Image Scheduled to operate on Jan 2017 Scheduled to operate within FY2017
11 5 C-16 HIROSE Technology Exhibition (1) 11 C 16 TOKYO visitors increased by C-16 TOKYO visitors increased by 38% from previous exhibition(2013) and Automotive-related increased by 83%
12 5 C-16 HIROSE Technology Exhibition (2) TOKYO: Sep 15 th -16 th OSAKA: Nov 16 th 17 th 12 With C-16, Catch the customer s voice Accelerate pace to future product
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