Hirose Electric 2026 Fiscal Year End Financial Results Briefing

Overview of Medium- to Long-term Growth Strategy

Hirose Electric aims for sales of 290 billion yen, an operating profit margin of over 23%, and ROE over 12% by FY2029. The core growth areas include all consumer sectors (such as smartphones), automotive, and industrial equipment, with new domains like Hirose SER, AI-related products, and optical active connectors actively expanding. The company plans to strengthen product development capabilities, production technology, and global manufacturing capacity to achieve sustainable growth.

Investment for the Future and Strengthening of Production Bases

From FY2023 onwards, the company will invest actively in facilities, including an expansion of micro connectors (approximately less than 3 billion yen), construction and relocation of the new Koriyama plant (approximately more than 10 billion yen), expansion of functions at the Tohoku Advanced Technology Center (approximately 1.5 billion yen), and development and deployment costs for next-generation SCM (approximately 8 to 9 billion yen). Additionally, a manufacturing site will be established in Chennai, Tamil Nadu, India, aiming for operation in 2027, with a focus on the automotive sector to expand local operations. These investments are positioned as strategic initiatives to respond to growth in the automotive sector and simultaneously enhance supply chain capabilities.

Update on Medium-term Cash Allocation

In May 2026, the company updated its medium-term cash allocation plan, aiming to allocate 50–60% of generated cash to growth investments and 40–50% to shareholder returns. Strategic investments (e.g., M&A) are estimated at 10–20%, while business investments (production equipment and infrastructure) account for 50–60%. This approach aims to balance growth investments and shareholder returns while improving capital efficiency.