Yokowo

2022
Integrated Report

CONTENTS
Yokowo 2022 Integrated Report

Corporate Philosophy

03

100th Anniversary Topics

05

Value Creation – Our Track Record

09

Yokowo Global Network / Company Profile

11

Segment Overview

Yokowoʼs Value Creation

ESG Report

Appendix

01

Yokowo 2022 Integrated Report

Yokowoʼs Business Domain

13

Vehicle Communication
Equipment Segment

14

Circuit Testing Connectors Segment

15

Personal Communication
Equipment Segment

16

Top Message

17

Yokowoʼs Value Creation Process

21

Yokowoʼs Materiality

23

Yokowoʼs Manufacturing

27

Research and Development

29

Product Technology

31

Corporate Governance33

Directors, Auditors andExecutive Officers

37

Sustainability Promotion Framework

38

Compliance and Risk Management

39

Information Security

40

Environment

41

Employees

43

Diversity

45

Occupational Health & Safety: OH & S

47

Procurement48

Local Communities

49

Financial Highlight51

Non-financial Highlight52

Financial Information

53

Independent Practitionerʼs
Assurance Report62

Editorial Policy
Covered Organization: YOKOWO CO., LTD.
4 Domestic Group Companies
19 Overseas Group Companies
Period: Fiscal Year 2021 (April 1, 2021 - March 31, 2022)
Some of these activities include those from before
and after this period.
Published: November 29, 2022
Publishing Cycle: Annually
Information Disclosure:
The Yokowo Group discloses information accurately,
promptly and proactively in order to build long-term
relationships of trust with its shareholders, investors andother stakeholders.

Forward-looking Statements:
Certain statements in this report such as “plan,” “forecast”
and “strategy” constitute forward-looking statements
and are based upon reasonable assumptions given theinformation available at the time of publication. Please
note that due to various factors, actual results may differ
significantly from those anticipated in such statements.
Department Responsible for the Report:
Public Relations & Equity Department,
SCI (Sustainability & Corporate Integrity) Promotion H.Q.
Tel: +81-3-3916-3111 (main number)
Inquiry Form:
https://www.yokowo.co.jp/english/inquiry/

Yokowo 2022 Integrated Report02Renewing the Corporate Philosophy
on our 100th Anniversary
In September 2022, we celebrated the 100th anniversary of our founding.
On our 100th anniversary, as well as reforming our corporate philosophy of Purpose, Vision, and Values, we decided upon
Yokowo's first brand slogan and statement as a short message that condenses the message contained in our corporate
philosophy, and that can be mainly used to clearly communicate with external parties.
The new corporate philosophy comprises three components. As well as Purpose and Vision, this adds Values which serveas action guidelines as shared values important to employees.

Corporate Philosophy

PurposeBe a good company by employing people
and technologies that work for the benefit
of society today and tomorrow.
How can we contribute more to society and make Yokowo an evenbetter company?
By listening to the diverse voices of our colleagues and looking to
the world for inspiration, we will create a better company that issincerely committed to the evolution of society and the resolutionof issues, leading to a safe and secure future.
We will promote quality people and technologies and work
together with our stakeholders toward the realization of a better
company and a better, more sustainable society.

VisionAs an ever-evolving company, we seek todevelop new ideas that challenge our people
and our technologies while anticipating andaddressing the changing needs of society.
With a strong desire to not only meet the demands of ourcustomers and society but also to exceed their expectations, wehave been training our people to take the initiative and evolve ourtechnologies and processes to address the needs of today.
In the future, we will continue to evolve through the developmentof new technologies, the reformation of our business model and incollaboration with our partners.
We aim to be an evolving and enduring company that continues tochallenge our people and technologies—developing new ideas that
anticipate the ever-changing needs of society.

03

Yokowo 2022 Integrated ReportFormerly, Mission took priority in our corporate philosophy, however this has been changed to Purpose, as this term feels
more relevant to society.
Purpose prescribes our purpose and posture towards achieving not only growth, but the attainment of a truly sustainable
society as one of its members, as well as the values that will act as specific guidelines.
So that we can become a company needed over the next 100 years, using this new corporate philosophy and slogan wewill not only pursue profits as is our role as a for-profit company, but also directly address a range of social issues and thus
strive to continue to raise our corporate value.

Value

Respect

Respect human diversity, keep an open mind and treat otherswith sincerity.

Fairness
Ownership
Challenge
Innovation

Act with fairness and transparency.
Take the initiative and be personally responsible for all your actions.
Be fearless, try new things and make the most of any situation.
Be flexible and consistently apply your skills to encourage
innovative change.

Brand Slogan
Developing, Delighting
Brand Statement
What makes us happy? It's not an easy question to answer.
It may be impossible to develop solutions to the difficulties and demands of this world.
Solutions that will allow all people to enjoy prosperous lives. Even so, we want to take on
this challenge. We believe in the power of people and technology. We want to be a goodcompany, connected to a vibrant society, developing new ways to delight people.
Since our founding in 1922, Yokowo has continuously refined its core technologies,
developed innovative products, and consistently met the expectations of society. Throughour shared passions, we have overcome many difficulties and persevered.
In the future, we will continue listening to the diverse voices of our colleagues, seeking
guidance from around the world. We will work together with our stakeholders, which
include our employees and their families, our customers and business partners, and local
communities.
Most importantly, we will always envision a better and more prosperous future, and always
be ready to take on the challenge of creating something new to achieve our goals.
Developing, Delighting
YOKOWO

Yokowo 2022 Integrated Report04

100th Anniversary Topics

History of its TechnicalFounding - 1960s

1970s

VehicleCommunication
Equipment
Business 1957〜
Car Antenna(Pillar Type）

Rod Antenna

The rod antenna for transistor
radios, hit products at that time,
was what propelled Yokowo
Manufacturing Co., Ltd. to theforefront. Yokowoʼs high-quality
antennas with their smooth
extendibility based upon precisionpipe processing technologies
garnered recognition fromelectronics manufacturers. In thisway, antenna technologies becamea core business for the Company.

AM/FM
Motor Antenna

1956〜2003

Rod Antenna

Personal
Communication
Antenna

Sporting Goods
1959〜1995

Golf Goods

Pipe
Drawing
Technology
Spring Bar,
Founderʼs
Invention

Antenna Technology
Micro Precision Processing Technology

Precision
Pipe
Processing
Technology

As the founder of Yokowo Manufacturing Co., Ltd., the predecessor of YOKOWO CO.,LTD., Chutaro Yokoo (1894 to 1977) refined his skills as a craftsman producing precisionpipes used in pocket watch hinges. When wristwatches entered the mainstream, heinvented the spring bar. This is a belt-attachment component comprising a spring
inserted into an ultra-thin pipe, so it can expand at both ends. This landmark invention
became widely adopted overseas, capturing the worldʼs largest market share. This was
the starting point of “technical Yokowo” that exists to this day.

Spring bar craftsmanship transformed
into advanced, world-classtechnologies. These advanced, micro
precision processing technologies bringunique, original products that only
Yokowo can provide, and these arebearing fruit in diverse fields such as
semiconductor inspection, connectors
for electronic devices, and advanced
medical equipment.

Everything Started with Pipes
After having finished his apprenticeship in 1922, Chutaro Yokoo decided to go out on
his own and start a business, opening the Seirinsha bicycle shop the next year. This wasdestroyed on the day of opening by the Great Kanto Earthquake, but reopened just one
month later.
In 1926, using the skills he had acquired over 15 years as a craftsman, he opened aprecision pipe processing factory in Mukojima, Tokyo.
Thus was born Yokowo Manufacturing Co., Ltd., the predecessor of YOKOWO CO., LTD.

05

Yokowo 2022 Integrated Report100years

Evolution and Business/Product Development
1980s

Extension
Cable A'ssy

Motor Operated Conner Pole

Microwave Components
1983〜

Outdoor Unit
for BS

Metal Bats for
SoftballIn the midst of the leisure boom
during the period of high economic
growth, Yokowo took advantage
of our pipe technologies to begin
manufacturing and selling golf
clubs and shafts. The Company has
also expanded into metal bats andshafts for rackets.

Metal Bats

Microwave Technology

Low Noise Block Down Converter

Full-scale introduction of
microwave technologies at thelaunch of satellite broadcast
services. Since then, Yokowo has
deployed microwave equipment
for satellite broadcasting
and VSAT, and it is now animportant core technology
in the Companyʼs VCCS andCTC business, with significant
contributions to supporting 5G
throughout its product line-up.

Golf Shafts

Circuit Testing
Connector Business
1979〜

Specifications required for probes
and sockets for semiconductor
testing are becoming more
and more exacting, due to theminiaturization and increased
performance of semiconductors.
Yokowo started its circuit
testing connector businessin 1979, providing the world
with semiconductor testing jigs
developed using microwave
technology, in addition to its
world-class micro precision
processing technologies.

Contact Probe

Interface
Connector

IC TestSocketFine Connectors
Business 1986〜
SPRING CONNECTOR™

Board to Board
Coaxial Connector

Yokowo 2022 Integrated Report06Until now, and from now on.
Using technology, Yokowo will continue to pioneer
1990s
VehicleCommunication
Equipment
Business

2000s
Amplifier for
Glass Mounted
Automobile
Antenna

Microwave
Components

GPS Antenna

Diversity
Antenna for
Automobile TV

AM/FMMicro Antenna

Transmitter
for VSAT

Antenna for
SDARS

Tollgate Antenna
for ERP

Laminated Antenna for
Digital Terrestrial Wave
(Front Type)

Yokowo provides the worldʼs leading
automotive manufacturers with high-sensitivity,
high-quality, and durable vehicle antennas
supporting wide frequency bands. The
world-leading micro antennas developedby Yokowo have transformed vehicle
radio antennas from being mechanical toelectrical components.

Rod Antenna
Cellular Antenna

Multiband Internal Antenna
for Cellular Phone

Wire Coupled Antenna

Ceramics &Electronic Devices

Sporting Goods
Golf Shafts
Prelude Pro

1996〜

Patch Antenna
for GPS

Chip Antennafor Bluetooth

Microwave Technology
Antenna Technology
Micro Precision Processing Technology
Ceramic Technology

Circuit Testing
Connector Business
LCD Panel
Test Head

Fine Connectors
Business

BGA Test
SocketCoaxial Connector
for Antenna

Low Profile
Contact Probe

High Giga
SocketMulti-Contact
Coil Connector

2-Piece Blade
Connector

Test Tools for
FPC/FFC, Connectors
1993〜

Clip Connector

Microwave Module
Test HeadMicrowave
Function Probe

Probe Connector /Giga Holder

Medical Devices
Business 2006〜

07

Yokowo 2022 Integrated Reportthe next generation.

Yokowo — towards a new 100 years

2010s
Combined Roof
Antenna (Hex Band)

Tollgate Antenna
for ETC
Yokowoʼs LTCC business,based upon ceramics
technologies, has been incommercialization since
the early 2000s. In 2019,
Yokowo establisheda joint corporation as
LTCC Materials Co., Ltd.,
achieving an integrated
production system frommaterials development
through to productmanufacturing.

AM/FM
Shark Fin Antenna

2020s

GNSS
Antenna

Combined Roof Shark Fin
Antenna (Cellular/GPS/SDARS)

These days, the communications environment continues its
dramatic evolution, with 5G, IoT, etc. Yokowo will continue toleverage its world-leading technology and originality to offer
the unique antennas demanded by society.

Tire Pressure
Monitoring System

LTCC Interposer
Substrate

12inch Interposer
Substrate

Ultra Thin
LTCC-CSP
Substrate for LED

Ultraminiature
LED Ring Lightof LTCC

Substrate for
VehicleSurface Modication Material Technology

Vertical Probe
Card

Micrograph of
Mechanics Parts

Board to FPC/Micro
Wire Connector

Penprobe

MEMS Probe
Card (YPX)

Micro Precision
Tip Terminal
Processing Devices for Catheter
for Medical(Radiopaque Marker)

Core WireHigh Giga Full Shield
Coax Socket

Waterproof
I/O Connector
Lead Socket Connector

Clip Connector for Board
to Board Connector

Special surface processing of materials
adds value to products, including interms of abrasion resistance, heat
resistance, adhesive capabilities,
and appearance. This is a promisingtechnology that promotes productdifferentiation and high functionality.

Board to Board Stamp

Coil for
Guidewire

Assembly of Atrial
Septal Needle

OpticalConnector

Waterproof 2-Piece
Blade Connector

Inspection Tools forInterface Connector
Yokowo has been commercializing medical devices as its
fourth pillar since 2006, taking advantage of its micro
precision processing technology. In 2012, Yokowo acquired
ISO 13485 (medical equipment quality management
system) certification, and through a startup ecosystem incollaboration with academia, industry, and government, isaiming to provide innovative medical equipment.

Yokowo 2022 Integrated Report08Value Creation – Our Track Record
Yokowo started with precision metal pipe processing developed by its founder, Chutaro Yokoo, at the time when he was acraftsman in the industry. From these beginnings, Yokowo introduced various new technologies centered on micro
precision processing, expanding the business to a wide range of fields.
With Tomioka Town within Kanra District, Gunma Prefecture (now Tomioka City), where the founder was born andraised, as the center of development and production, Yokowo is developing and providing cutting-edge products for the
global market while expanding its bases overseas.

1920
'22

●

1960

F ounded YOKOWO MFG. '61
CO., LTD. in Sumida, Tokyo.

1980

Established Tomioka plant '83
in Kanohara, Tomioka.

●

Around 1930
Developed a Spring Bar for
watches that, at that time,
captured the largest share of
the global market.

●●

Spring Bar

●

'56

●

S tarted PersonalCommunication Antennabusiness.
(withdrew in 2014)

'62

● 	

'67

● 	

Established YOKOWOELECTRONICS (M) SDN.
BHD. in Malaysia.

●Began OEM supply ofvarious satellite broadcast
reception devices in tandem with NHK’s launch ofsatellite broadcast services.

Tomioka Plant●

Listed on the second
section of the Tokyo
Stock Exchange.

Cellular Phone Antenna

Established YOKOWO
MFG. CO., (TAIWAN) Ltd.
(now YOKOWO MICROTECH CO., LTD.)

1950
'51

'87

Personal Communication Antenna
Outdoor Unit for BS

Incorporated.
Started Rod Antennabusiness. (withdrew in 2003)

'89

1970
'73

●

Established YOKOWO(HONG KONG) LTD.

● 	

Completed new head
office in Tokyo.

● 	S tarted Microwave
Component business.
(transferred to the Vehicle
Communication Equipment
business in 2002)

Rod Antenna'57

Started Vehicle Communication Equipment
business.

●Pillar Antenna

Microwave Components

'78

●

'79

● 	

	Established YOKOWO(SINGAPORE) PTE. LTD.
Started Circuit Testing
Connector business.

'84

'86

Established YOKOWOAMERICA CORPORATION
in Chicago, U.S.A.

●

S tarted Fine Connectorbusiness.

AM/FM Motor
Antenna'59

Started Sporting Goods
business. (withdrew in
1995)

1990

● 	

'90

●

'92

●

Changed company
name to YOKOWO
CO., LTD.

Developed asmall-sized ceramic
patch GPS Antenna.

●Contact ProbeSPRING CONNECTOR™
GPS Antenna

Golf Goods

09

Yokowo 2022 Integrated Report'94

Established DONGGUANYOKOWO ELECTRONICS
CO., LTD. in China.
(merged with DONGGUAN YOKOWO CARCOMPONENTS CO., LTD.
in 2017)

2000

●

'01

●

'02

●

Listed on the first sectionof the Tokyo Stock
Exchange.

2010
'11

2020

Established YOKOWOVIETNAM CO., LTD. in
Vietnam.

●'20

Established Lumax
Yokowo Technologies
Private Limited inIndia.

Established YOKOWO
MANUFACTURING OF
AMERICA LLC in Hilliard,
Ohio, U.S.A.

●

Began OEM supply of
Guide Wire for medical
treatment.

E stablished YOKOWO
MANUFACTURING OF
THE PHILIPPINES, INC. in
Philippines.

●

'95

●

'96

●

Established DONGGUANYOKOWO CARCOMPONENTS CO., LTD.
in China.

Established YOKOWO
KOREA CO., LTD. in
Korea.
Developed the industry’s
first socket for highfrequency testing.

Guide Wire for Medical Treatment

●

'05

●

'13

●

Established YOKOWO CORP.
(H.K.) LTD. in Hong Kong.

●●

Acquired ISO 13485
certificate.

YPX Series

'14

●

'16

●

Acquired ISO 27001 certificate.

2 Piece
Connector●D eveloped a BGA Test
Socket to make a fullentry into the semiconductor inspection market.

'06

Started Medical Device
business.

●Components
for Medical
Devices(Tip Terminalof Catheter)

BGA Test Socket

'07

'18

'21

Acquired OHSAS 18001
certificate.(Transferred to
ISO 45001 in 2020)

Established Advanced
Measurement Technology
Center in Tomioka plant.

●

Established YOKOWO
Advanced Device Center.
(reorganized into a joint
corporation in 2019)●●H
 eadquarters

relocated to JR Kanda
Manseibashi Building

Commercialized the YPXprobe card series for thetesting of high frequency
devices using MEMS
technology.

D eveloped a 2 Piece
connector to make a fullentry into the rugged
handheld device market.

Ceramic Antenna

'97

'12

Hi-Giga
Sockets

Micro Antenna

Started Microwave
Ceramics business.

●●Developed the world’s
first Micro Antenna for
automotive AM/FM radio.

●Established YOKOWOEUROPE GmbH inGermany.

●'22Transitioned tothe prime marketof Tokyo Stock
Exchange, in
accordance withthe restructuring ofmarket segments●

Established
YOKOWO FUTUREORIENTEDSUPPORT CO., LTD.

●Installed aphotovoltaic power
generation system atVietnam Plant●

AMT Center'99

Established
DONGGUAN YOKOWOCOMMUNICATIONCOMPONENTS CO., LTD.
in China.

●●E stablished YOKOWO
Europe Ltd. in London,U.K.

YOKOWO
Advanced
DeviceCenter'08

Took over probe cardbusiness from Genesis
Technology Inc.

●

Established YOKOWOMEMS development center.

●

'19

Registered the Smart®
Weld trademark for its
original technology forbonding different metallic
materials.

●

Established a joint
corporation as LTCC
Materials Co., Ltd.

●

Yokowo 2022 Integrated Report10YOKOWO GLOBAL NETWORK
Since establishing its Taiwan Plant in 1967, the Yokowo Group has been actively shifting production bases to overseas
locations so that it can build an optimal global production system. It currently operates mass production plants primarily in
Malaysia, China, Vietnam, and the Philippines. Overseas production now accounts for more than 80% of Yokowo’s total
production.
In terms of sales, Yokowo has opened overseas offices in countries and regions worldwide with offices in five cities in theAmericas, in Germany in Europe, and in nine Asian countries to provide local-based sales services closely matched to market
needs around the world.

Korea
YOKOWO KOREA CO., LTD.

China
YOKOWO CORP. (H.K.) LTD.
YOKOWO (HONG KONG) LTD.
DONGGUAN YOKOWO CAR COMPONENTS CO., LTD.
DONGGUAN YOKOWO COMMUNICATIONCOMPONENTS CO., LTD.

Germany
YOKOWO EUROPE GmbH
YOKOWO EUROPE GmbH

VietnamDüsseldorf office

YOKOWO VIETNAM CO., LTD.

TaiwanDongguanHong Kong

India

Philippines

Lumax YOKOWO Technologies Pvt. Ltd.

ThailandYOKOWO (THAILAND) CO., LTD.

Malaysia

Production

YOKOWO ELECTRONICS (M) SDN.BHD.

Sales

 OKOWOYMICRO TECH
CO., LTD.

Production & Sales

 OKOWOY
MANUFACTURING OF
THE PHILIPPINES, INC.
 OKOWO (SINGAPORE)Y
PTE.LTD.
Philippine office

Singapore
YOKOWO (SINGAPORE) PTE.LTD.

Company Profile (As of March 31, 2022)
Company Name

Head Office
Location

YOKOWO CO., LTD.
5-11, Takinogawa 7-Chome,
Kita-ku, Tokyo 114-8515
Japan▼ Major Shareholders (As of March 31, 2022)
Shareholder

Number ofPercentage ofshares held
shares held
(in thousands)

The Master Trust Bank of Japan, Ltd.

4,088

17.5

September 1, 1922

Custody Bank of Japan, Ltd.

3,279

14.0

Incorporated

June 14, 1951

BNP Paribas Securities Services Luxembourg/JASDEC/
FIM/Luxembourg Funds/Ucits Assets

1,020

4.3

Capital¥7,819 million

The Gunma Bank, Ltd.

990

4.2

Yokowo Business Partners Shareholders’ Association

779

3.3

Mitsubishi UFJ Trust and Banking Corporation

595

2.5

JP MORGAN CHASE BANK 380684

534

2.2

The Dai-ichi Life Insurance Company, Limited

450

1.9

MUFG Bank, Ltd.

446

1.9

The Resona Bank, Limited

445

1.9

FoundedNumber ofshares issuable
Number ofshares issued
Number ofshareholders

40,000,000 shares
23,849,878 shares, including
538,808 treasury stock shares
5,778* The Company holds 538 thousands of its treasury stocks, but not counted as a major shareholder.
* The number of shares is rounded to the nearest thousand.
* Percentage of shares held is calculated without 538 thousands of treasury stocks and is rounded to
the nearest third decimal with numbers of less than one-hundredth of one percent omitted.

11

Yokowo 2022 Integrated Report

USA
YOKOWO AMERICA CORPORATIONYOKOWO AMERICA CORPORATION
Silicon valley office

YOKOWO AMERICA CORPORATION
Tempe office

YOKOWO MANUFACTURING OF AMERICA LLC
YOKOWO MANUFACTURING OF AMERICA LLC
Detroit office

ChicagoSilicon Valley

DetroitColumbus

Tempe

Japan
Tokyo head office

Utsunomiya
Tomioka
Tokorozawa
TokyoItabashi officeOsaka branch

Chubu

Osaka

Chubu branch
Utsunomiya branch
MEMS development center
Tomioka plant
LTCC Materials Co., Ltd.

▼ Net Sales by Region (FY2021)▼ Net Sales / Share of Total Overseas Sales
19,466

18,5790

10,000Japan

20,00028,801

30,00040,000Europe and America

50,000Net sales (million yen)

60,000(million yen)Asia

70,00060,00050,000▼ Number of Employees by Region (FY2021)
2,750
0

1,000
China*

1

3,607

2,000

3,000

Vietnam*

1

4,000

592

5,000

Malaysia*

1

6,000

Japan**1 Major Production Bases *2 YOKOWO CO., LTD.

2

960

7,000

590
8,000

(Unit: person)

Other

Share of total overseas sales (%)

80,000
64.3

63.2

66.4

67.3

72.2

80
70
60

51,91954,75260,59559,976

66,84850

40,00040

30,00030

20,00020

10,00010

02017■ Net sales

2018
2019
2020
2021
Share of total overseas sales (FY)

Yokowo 2022 Integrated Report

012Segment Overview

Yokowoʼs Business Domain
The Yokowo Group has implemented and refined a number of technologies such as antenna and microwave
technologies, while further deepening the technologies in micro precision processing. The Companyʼs businessdomain has continually expanded from antennas, connectors and advanced devices, branching out today into threesegments: Vehicle Communication Equipment, Circuit Testing Connector, and Personal Communication Equipment.

▼ Business Domain Map

Vehicle Communication
Equipment

Sales: ¥40,081 million(+7.5% YOY)
Vehicle Antennas

Shark Fin Antennas

GNSS Antennas

Circuit Testing Connectors

Personal Communication
Equipment

Sales: 17,625 million(+33.1% YOY)

Sales: ¥9,141 million(-3.2% YOY)
Connectors forElectronic Devices(Fine Connectors)

Semiconductor
Testing Tools

Probe Cards

13

SPRING CONNECTOR™

Hi-Giga-Socket

Vehicle Communication
Equipment

Circuit Testing Connector

Yokowo manufactures antennas for cars
(vehicle antennas), such as the SharkFin antenna, mainly for the automotive
market.
By continuing to develop and propose
antenna systems to the customers
that support next-generation vehiclecommunication which meet the basic
needs required for smaller, multi-use,lower profile and smart vehicle antennas,
Yokowo is helping to create safe andcomfortable mobility services.

Yokowo manufactures probe cards forfront-end testing and sockets for backend testing mainly for the semiconductor
and electronic component testing market.
By making full use of its micro
precision processing and microwave
technologies, the Company provides
solutions for all processes in the areaof testing for electronic devices, suchas semiconductors and electronic
components, so as to meet the demands
for smaller size and greater speeds.

Yokowo 2022 Integrated Report

Medical
Devices

Coils for Guide Wires
and Catheter Shafts

Personal Communication
Equipment
Fine Connector Business
Yokowo is globally developing andproviding minute SPRING CONNECTOR™
that meet the needs for miniaturization andspace saving in various electronic devices,
mainly for the mobile communications
terminal market.

Medical Device Business
Yokowo provides a complete service
from the design to the development
and manufacturing of OEM guide wires,
catheters and other micro precision parts andassembly products, mainly for the minimallyinvasive medical equipment market.

Vehicle Communication Equipment Segment▼ Vehicle Communication Equipment - Consolidated Sales(million yen)

FY2017FY2018FY2019FY2020

FY2021

36,25638,18339,26437,29240,081

Segment Overview
In this segment, Yokowo manufactures vehicle antennas,
including Shark Fin and GPS antennas for all areas from low
to high frequency, mainly in China and Vietnam with over
90% of production taking place overseas. Regarding sales, we
mainly provide our vehicle antennas to Japanese automobile
manufacturers, not only in Japan but also globally in the UnitedStates and ASEAN markets. Overseas sales account for over 60%
of all sales in this segment.
As a leading company of antenna systems that support nextgeneration vehicle communications, Yokowo will continue
to strengthen its core technologies including antennas, andpromote drastic reforms to its profit structure to continue togenerate long-term profits.

Segment Review (Fiscal 2021)
In the automobile market, the main market for this segment,
the global shortage of semiconductors and the delays in partsprocurement and other impacts by outbreaks of COVID-19
variants persisted throughout the fiscal year, preventing a fullscale recovery in production. A breakdown by region shows thatnew vehicle sales increased year on year in the US and China but
decreased in Europe and Japan.
In these circumstances, mainstay products for car
manufactures that are sold in Japan and overseas, such as
shark fin antennas and GPS antennas, ETC antennas, andother products mainly marketed in Japan, achieved net sales
substantially exceeding the levels year on year due to thereaction to the production cutbacks from the first quarter
despite a decrease in orders by the production adjustments at
automobile manufacturers from the second quarter.
As a result, sales for this segment increased year on year,to ¥40,081 million (up 7.5% year on year). The segment
reported a loss of ¥1,443 million (a gain of ¥443 million in theprevious fiscal year), reflecting higher physical distribution cost
attributable chiefly to a surge in ocean freight, higher laborcosts at production sites in China and Vietnam associated withappreciation of the local currencies, cost increases caused byrising materials prices, and the maintenance of the production
system in anticipation of a recovery in production at automobile

VehicleCommunication
Equipment

CircuitTesting
Connectors

Personal
Communication
Equipment

manufacturers.

Segment Policy
Looking ahead, Yokowo will continue to promote further
business expansion and a more layered business model bygaining a full market presence in mobility service fields, such
as MaaS. The Company will do so while working on thedevelopment of more advanced strategic products with higher
levels of added value in new fields such as ADAS, automateddriving, and connected cars.
In addition to investment to increase capacity at its
production bases, Yokowo will forge ahead in rebuilding its
profit structure by stably expanding the automatic assembly lines
and automatic testing systems introduced in fiscal 2019, shifting
more production from its Chinese plant to its plant in Vietnam,
achieving stable operation of the Philippines plant as a third
production base (began operations in April 2022), and making
the most of strategic alliances.

Shark Fin Antennas

GNSS Antennas

Yokowo 2022 Integrated Report

14Segment Overview

Circuit Testing Connectors Segment▼ Circuit Testing Connectors - Consolidated Sales

FY2017FY2018FY2019FY2020

FY2021

9,503

9,138

12,832

13,242

17,625

Segment Overview
In this segment, Yokowo manufactures contact probes making
full use of its micro precision processing technology, and also
manufactures probe cards for front-end testing and sockets forback-end testing in semiconductor manufacturing processes,
which both use contact probes. Yokowo has production basesin Japan and Malaysia with overseas production accounting forover 60％ in this segment. Products are supplied worldwide,
mainly to semiconductor manufacturers and foundries, with over
80% of sales going overseas.
In recent years, Yokowo has expanded its product lineup in
cutting-edge fields, such as testing sockets for testing 5G devices
that use microwave technology, and probe cards for the testingof high-frequency electronic components (YPX) that make use of
MEMS technology. In fiscal 2021, monthly production capacity
for contact probes was approximately 6.2 million units.

Segment Review (Fiscal 2021)
In the semiconductor testing market, the main market forthis segment, demand related to testing remains very strong,reflecting strong demand for high-end personal computers
associated with the expansion of telework and online learningand tight supply of semiconductors for electronics equipment
including cloud services and smartphones.
In these circumstances, sales of jigs for semiconductor backend testing, the main product of the Group, were higher year
on year, due to an increase in strong orders and launchingon mass production of new products for logic semiconductor
testing sockets and sockets for high-frequency testing. Sales ofjigs for semiconductor front-end testing increased year on year
due to a steady expansion in the turnkey business that offers
one-stop solutions services including peripheral devices. Demandfor MEMS probe cards (YPX) for high-frequency electronics
components testing rose significantly, reflecting the penetrationof 5G smartphones, and sales of the probe cards exceeded theyear-ago level.
As a result, sales for this segment increased year on year, to¥17,625 million (up 33.1% year on year). The segment reported
a profit of ¥4,871 million (up 81.6% year on year) largely due toincreased sales and higher profit associated with a weaker yen

15(million yen)

Yokowo 2022 Integrated Report

VehicleCommunication
Equipment

CircuitTesting
Connectors

Personal
Communication
Equipment

as well as an increase in the ratio of products with comparatively
high profit margins, despite cost increases caused by rising raw
materials prices.

Segment Policy
Going forward, Yokowoʼs policy is to steadily capture theincrease in demand for semiconductor testing in fields such as
5G, IoT, in-vehicle, and AI. To this end, Yokowo will strongly
promote the strengthening of full-scale systems to; develop
and launch strategic products that target the market for
high-frequency and high-speed signal testing related to 5G
communications, invest in capacity increases at domestic andMalaysian plants as well as establish domestic branch plants andVietnam plant, invest in improved efficiency and streamlining
such as by building automatic assembly lines and introducing
automatic testing systems, and expand its turnkey business inthe area of semiconductor front-end testing. Yokowo will also
strive to build a more profitable business structure and maintainstable business operations.

Contact
ProbesYPXProbe Head

Sockets

Personal Communication Equipment Segment▼ Personal Communication Equipment - Consolidated Sales(million yen)

FY2017FY2018FY2019FY2020

FY2021

6,158

7,429

8,498

9,441

9,141

Segment Overview
This segment consists of two businesses; Fine Connectors andMedical Devices.
In the Fine Connector business, Yokowo manufactures
SPRING CONNECTOR™ which allow for easy attachment
and detachment to electronic devices. These connectors are
manufactured in Japan, Malaysia, and China, with over 80%
being produced overseas. Yokowo supplies a wide range ofelectronic device manufacturers in Japan and overseas, with over
80% of sales going outside Japan.
In the Medical Device business, in addition to micro precisionparts such as OEM guide wires and catheters, Yokowo designs,
develops, and manufactures assembly products at its Tomioka
plant in Japan. Yokowo mainly supplies domestic medical device
manufacturers, with approximately 10% of sales going overseas.

Segment Review (Fiscal 2021)
In the market for mobile communication terminals, a key market
for this segment, sales of smartphones were on a downward
trend. However, sales of wearable terminals are expected to
grow given their diversification and greater sophistication.
The POS terminal market has been growing steadily in a wide
range of industries, including those engaging in logistics andmanufacturing, with a view toward improvements in operational
efficiency through information management. In addition, othermarkets including the market for industrial equipment are also
expected to grow.
In these circumstances, net sales for the fine connectorbusiness, for which fine SPRING CONNECTOR™ act as coreproducts, decreased year-on-year, reflecting a decrease in salesof products for POS terminals and products for wearable devices,such as wireless earbuds, from the second quarter on due to theglobal shortage of semiconductors and production adjustments
at customers caused by a resurgence of COVID-19 in ASEAN.
In the medical device business, which is included in thesegment, sales increased year on year, reflecting sales of newunit-based devices and growth in sales to Venture Ecosystemfrom the second half, which offset weaker orders in the first half
due to the impact of the COVID-19 pandemic.

VehicleCommunication
Equipment

CircuitTesting
Connectors

Personal
Communication
Equipment

As a result, sales for this segment decreased year on year,to ¥9,141 million (down 3.2% year on year). The segment
posted a profit of ¥1,256 million (down 39.1% year on year)
chiefly owing to lower profit on the back of lower sales in thefine connector business as well as a higher labor cost ratio at
production sites in China mainly due to a strong yuan, andchanges in the business structure.

Segment Policy
In the Fine Connector business, Yokowo plans to continue
working to expand its business and carry on with the multilayer structuring of its products, markets, and customers.
The Company will do this by accelerating the introduction ofcustom-type connectors such as high-performance, high-speed,large-capacity connectors that meet the product needs of adifferentiated market, and by expanding its standard productlineup to capture new demand.
In the Medical Device business, Yokowo aims to further
grow the business by increasing the production capacity of
micro precision parts with the installation of cutting-edge
production equipment and by expanding sales of guide wireand catheter assembly products in Japan and overseas. Yokowo
will strengthen our efforts in the venture ecosystem as amanufacturing partner that brings product ideas from venturecompanies in Japan to reality, and will also promote a multilayered structure to the supply chain in anticipation of businessexpansion in the cutting-edge medical field which is seeing
worldwide expansion, particularly in the United States.

SPRING CONNECTOR™

Coils for guide wires

Yokowo 2022 Integrated Report

16

Yokowoʼs Value Creation

Top Message

On this occasion of our100th anniversary,challenge the next stage
GO BEYOND~Challenge the Next Stage~
Takayuki Tokuma

Representative Director,
President and Executive Officer
YOKOWO CO., LTD.

Yokowo will work towards achieving its new medium-term management
plan, to ensure that it is a constantly evolving company.
The new medium-term management plan begun in fiscal year 2020 has now entered its final year.
Performance and earnings forecasts, along with our vision for the future are presented below.

Celebrating the 100th anniversary of
our founding
September 1 this year marked the 100th anniversary of thecompanyʼs founding. We would like to extend our sincere
gratitude to our customers for their patronage, our shareholders
for their understanding and support, senior management andemployees for their extraordinary efforts, and the families fortheir cooperation. It is thanks to all of you that we have beenable to reach this centennial milestone.
Aspiring since our founding to remain constantly on the
cutting edge, we operate in the rapidly advancing worlds
of information, communication and electronic components.
A specialist in antennas, fine connectors, microwave andadvanced device technology, we utilize our core technologies
to offer revolutionary products, principally to the automotive,
semiconductor testing, mobile communication terminals and17

Yokowo 2022 Integrated Reportadvanced medical device markets.
As we look back over our history from our earliest days as
a manufacturer of Spring Bars for watches to where we aretoday, our path has been one of launching new businesses
and withdrawing from businesses, all the while leveraging ourstrengths. 1979 was a particularly significant year in which weembarked on a major restructuring of our business, transforming
ourselves into an electronics company. This was the year of our“second founding.” Since then, we have boldly entered newmarkets and introduced new technologies, while strategicallyretreating from markets where we no longer enjoy a competitive
advantage.
This management principle, now in our very DNA, continues
to this day, as we promote a multi-layered business structure
by continually developing new markets and introducing
new technologies in line with the evolution of our business,
technology, and products.

Basic Management Policy
On this occasion of our 100th anniversary, we have set forth
Purpose, Vision, and Values as our new corporate philosophy
looking towards the next 100 years (see the page on p. 3).
Yokowo has instituted two management policies to realize thiscorporate philosophy. One is the sustainable evolution of business
management, and the other is a multi-layered business structure.
The sustainable evolution of business management isconstant evolution and moving forward as Yokowo has
advocated in the slogan it has out forward since its inception,“Constantly on the cutting edge.” The measures for realizing
the sustainable evolution of business management are productinnovation (including business model, product and businessstructure innovation), process innovation (the innovation ofbusiness processes) and personnel innovation (human resources
innovation). In other words, these measures aim to substantiallychange the business structure, including products, technology
and markets, and business operating process through the optimal
placement of business sites and the proactive introduction of
new production processes, processing technologies and IT. The
diversity of the human resources who operate the above will
expand to ensure the development of highly professional teams.
In line with management innovation (the innovation of
corporate management and business operations), substantialchanges will be made to how the elements and systems involvedin the above three innovation measures and these measures

themselves are managed, in order to accelerate the evolutionof business management. The other management policy of themulti-layered business structure aims to enhance the stabilityof our corporate management and our companywide earnings
structure.
In other words, we aim to improve sustainability. As the
management environment surrounding Yokowo is changing
drastically, this management policy aims to establish a businesssystem capable of responding to these changes by creating
a multi-layered business structure (industry, customers,
technologies, supply chains and other layers).
By promoting the sustainable evolution of business
management and a multi-layered business structure, we hopeto achieve Minimum 8 (secure at least 8% in sales growth rate,
operating profit margin, and return on equity) in a consistentand stable way.

Towards Achieving a
New Medium-term Management Plan
Performance in the Fiscal Year Ended March 31,
2022, Current Status and Forecasts
The main markets for the Yokowo Group include theautomotive, semiconductor testing, mobile communications
device and advanced medical equipment markets. These
markets are experiencing a dramatic transformation due toCorporate Vision

Evolution of Business Management

Multi-layered Business Structure● Multi-layered business structure (industry, customers,● Product innovation

technologies, supply chains and other layers)● Process innovation● Personnel innovation

Global paradigm shift/Establishing a business systemcapable of responding to drastic changes in businessenvironment and competitive environment● Management innovation

Realization of Minimum 8● Sales growth rate
● Operating profit margin● Return on equity

8%
Yokowo 2022 Integrated Report

18

Yokowoʼs Value Creation

the widespread adoption of CASE*, MaaS, 5G, AI and IoTtechnologies, and this presents major business opportunities for
Yokowo.
However, the spread of the global COVID-19 pandemic has
had a major impact on our Company.
Negative impacts included a drop in the number oforders received from customers, a reduction in the capacity
utilization rate of our Companyʼs production bases, andincreased production and distribution costs due to lockdowns,
semiconductor shortages, and continued high costs of rawmaterials and ocean freight. On the other hand, positives
included higher demand for semiconductor inspection resulting
from people staying at home more and working from homealong with a steady demand for testing of high-performancelogic semiconductors even after this demand faded, thus
providing a significant boost to the Company. Further, theforeign exchange market saw rapid depreciation in the yen
towards the end of March 2022, due in part to rising interest
rates in the United States.
As a result, examination of the Companyʼs consolidated
performance in the fiscal year ended March 31, 2022 showsthat sales increased significantly year-on-year (by 11.5%) to
66,848 million yen. While operating income fell 9.6% year-onyear to 4,684 million yen due to worsening profits in the Vehicle
Communication Equipment segment, ordinary income rose by
22.7% year-on-year to 6,529 million yen because of profits fromforeign exchange rates in line with the weakening of yen, andprofit attributable to owners of the parent company rose by
22.1% year-on-year to 4,663 million yen. All of these with the
exception of operating profit represented record highs for theCompany.
In the current fiscal year ending March 31, 2023, the
COVID-19 pandemic is in general calming, but coupled withthe situation in Russia and Ukraine and the deepening friction
between the United States and China, rapidly rising prices in

Net Sales
Operatingincome¥¥■Full-year
forecast

72 billion¥

7.0 billion

Profit attributableto owners of parent¥

5.5 billion

My Desire to“Make Yokowo a Good Company”
Since being appointed as President in 2007, I have constantly
conveyed my desire to make Yokowo a good company to ouremployees. I think that a better company is:■ A company about which customers say, “It was good that wehave conducted business with Yokowo. We will expand ourbusiness relationship with Yokowo.”■ A company about which contractors say, “It was good that

we performed business operations for Yokowo. We will work
harder to contribute more.”■ A company about which local communities say, “Iʼm glad

Yokowo is in our town. Iʼd be very happy for my children tojoin Yokowo.”¥¥¥

Net sales (million yen)

8,000

80,0007,000

80 billion

7.4 billion

40,000

9.6 billion

10,0006.25 billion

6,000

60,0005,000

50,000

4,000
3,000

30,0002,000

20,0000

1,000
FY ended
March 2020
Performance

FY ended
March 2021
Forecast at
start of term/
Performance

Personal Communication Equipment
Circuit Testing Connectors
Vehicle Communication Equipment

19

Yokowo 2022 Integrated Report

Operating income (million yen)

90,00070,000¥

7.2 billion

Ordinary
income* CASE: An acronym for the new trend in automobiles: Connectivity,
Autonomous, Shared, Electric▼ Earnings trends during the period of the
new medium-term management plan

<Fiscal year ending March 31, 2023>■New medium-term
management plancountries around the world are causing a slowdown in the global
economy. Even in Japan, the corporate goods price index rose
sharply due to the weakening of yen and high resource prices,and this also began to spread to consumer prices.
Under such circumstances, each segment is expected toachieve record whole-year highs for both sales and profits asof November 2022. The Circuit Testing Connector segment
has seen a dramatic increase in both sales and profits due toincreased orders and the weakening of yen and is driving overall
company performance, offsetting a slowdown in the Vehicle
Communication Equipment and Personal Communication
Equipment segments. Although a lull in the second half of the
fiscal year is expected due to the impact of reduced demand in
the semiconductor market, this is still expected to exceed theperformance targets of the new medium-term management plan.

FY ended
March 2022
Forecast at
start of term/
Performance

FY endingMarch 2023
Medium-term
objectives/
Full-year forecast

Operating income
Operating income forecast at startof term/Targets

0■ And most importantly, a company where the employeesof the Yokowo Group think, “I am very satisfied with to beworking for this company. I will work harder to make it aneven better company.”
I think that a company such as that is truly a good company.
To make Yokowo a good company, we should ensure that all
employees of the Yokowo Group, regardless of nationality,
gender and other differences, are content and fulfilled in theirwork, and have a foundation of reliability and trust. Through theevolution of our technology, we will continue to offer quality
products and services to improve customer satisfaction. We willcontribute to local communities which we rely on to ensurethat we are welcomed by these communities, and to bringsatisfaction to our neighbors. As a resident of this world, we willcontribute to solving climate change and other issues to preserve
the natural environment that sustains lives of people around theworld. Based on the above, we have the three top-priority issues:
the environment, local communities and diversity and inclusion.
So that we can accelerate our efforts to address these issues,
we established the SCI (Sustainability & Corporate Integrity)
Promotion H.Q. in April 2022 for integrated promotion, andthis engages in planning through to disclosure and dialog on
performance and other factors. Additionally, the Board of
Directors decided in October to establish the Sustainability
Committee. This committee has me, the President, as its chair,
together with a senior managing executive officer and managing
executive officers as members, and we also have independent

outside directors as observers. The progress of discussions aswell as decisions and conclusions are reported to the Boardof Directors on a regular basis and on demand, and whenapproval is required (see the Sustainability Promotion System
page on p. 38).
Additionally, in our efforts towards diversity and inclusion,
we have collected the opinions gathered at focused roundtable discussion meetings that provide a venue for a wide rangeof employees — including female, foreign, veteran and new
employees — and these are reflected in the Companyʼs humanresources system and employee welfare measures. In parallel,
we will continue to conduct employee engagement surveys
and evaluations, aiming to improve the effectiveness of ourmeasures.
The Yokowo Group will continue to enhance our governancesystem, a foundational, basic part of our corporate activities, inorder to achieve Purpose, Vision, and Values in our actions.
Further, so that we can be a Company needed over the next
100 years, we will confront sustainability issues such as climatechange through our business activities, and contribute to thesustainable development of our global society.
In the years to come, we look forward to the ongoingsupport, guidance, and encouragement of our shareholders andother stakeholders.

Yokowo 2022 Integrated Report20

Yokowoʼs Value Creation

Yokowoʼs Value Creation Process
While utilizing our “six types of capital,” the Yokowo Group provides value to society through a multi-layered
combination of our core competencies (micro-precision processing, microwaves (high-frequency), and advanced
devices). Looking forward, our aim is to achieve a sustainable society through our business activities that are based
upon the four pillars of our basic management policies, and to strive to continue to create value unique to Yokowo.

Key Inputs

Yokowoʼs Business Activities(FY2021)◦Production capital

VehicleCommunication
Equipment

・Non-current assets:¥22.33 billion
・Capital investment:¥5.09 billion

Details→p.14

1. Development◦Intellectual capital

Proposing products needed by
future generations, utilizing ourcore technologies
Details→ p.29

949

・Patents held:
・R&D expenses:¥3.4 billion

2. Procurement

Carrying out green procurement◦Human capital

3. Production

8,499

・Employees:◦Financial capital・Total assets:¥66.87 billion
・Cash & cash equiv.:¥13.81 billion◦Social capital・Domestic group companies: 4・Overseas group companies: 19

Building the worldʼs preeminent
local production system

4. SalesCircuit Testing
Connector
Details→ p.15

Expanding sales to five cities in
the Americas, and ten countries
and regions in Europe, Asia, andaround the world
Details→p.11

Basic Management Policy
Quality first・Electricity
・Water

35,020 MWh
260,179 m3

Promotion of evolutionary
management(four innovations)Technology-based enterpriseMulti-layered businessstructure

Global business base

21

Yokowo 2022 Integrated Report

Details→ p.16

Details: https://www.yokowo.co.jp/english/ir/message/(establish the “Yokowo Quality Brand”)◦Natural capital

Personal
Communication
EquipmentKey Outputs

Value Provided to Society(FY2021)

Reduction in environmental
impact◦Sales
¥66.84 billion

Addressing social issues
Related SDGs*

Innovations in information andcommunication technology

Providing minimally invasive
medical equipment◦Representative
products

Improvements in daily safety
and comfort

Vehicle Communication
Equipment

Improved traffic and transport

・Shark Fin Antennas
・GNSS Antennas

Improved, more resilient social
infrastructure

Circuit Testing
Connectors
・Probe Cards
・Hi-Giga Sockets

Personal Communication
Equipment
・SPRING CONNECTOR™

Human resource training
making the most of diversity

Building of a fair working
environment

・Guide Wires / Catheters
Assembly Products* SDGs: Abbreviation of Sustainable Development
Goals. These were adopted by the United Nationsin 2015 as common goals for 2030, to confront
issues such as poverty and climate change

Vision to be an ever-evolving company◦Reduction in
CO2 emissions▶VisionYear-on-year+1,097 t-CO

2

As an ever-evolving company, we seek to develop new ideas thatchallenge our people and our technologies while anticipating andaddressing the changing needs of society.

Yokowo 2022 Integrated Report

22

Yokowoʼs Value Creation

Yokowoʼs Materiality
In 2020, Yokowo identified our materiality as a Group. This clearly states the contribution to society made throughour business activities, and incorporates the desire of our management to “make Yokowo a good company.” Throughthe promotion of innovation and reforms to business models, we are both sustainably growing our business, andcontributing to the environment, society, and diversity.

① Be a company that customers and theircustomers feel comfortable working with“Make Yokowo a good company”
̶ Three Wills❶ Be a company that customers and theircustomers feel comfortable working with

❷ Be a company that society (including local
communities) and its business partners
feel comfortable interacting with

● Establishing the “Yokowo Quality Brand” focusing on thehighest quality, and on zero hazardous chemical substances■High quality, high productivity, and reduced environmental impact resulting
from reforms in production processes through the New 5S (Simple, Slim, Small,
Short, Smooth) Concept, and through AI■

Enhancing a research and development system that promotes more in-depth
and advanced world-class micro precision processing and microwave (highfrequency) technologies, as well as reducing our environmental impact throughthe development of ultra-compact, energy-saving products■

Utilizing our antenna and software technologies to break into the field of MaaS■

Promoting the F0 Conference and other quality improvement activities■

Integrated management of technologies using PLM, and improvements toquality pre-verification functions using Digital Twins■

Reducing environmental impact through our business activities
Promotion of recycled materials in plastic molding, and reductions in waste
Moving to plastic-free packaging and transport pallets, and conversion to biodegradable
plastics
Recycling of cutting oils, etc. (joint research with universities and technical colleges)
Establishment and operation of Green Procurement Guidelines❸ Be a company where employees feel

comfortable being employed, and which
ensures that employeesʼ families are
happy for them to work there

Process to Identify Materiality
Specific processes are as follows:① List themes considered by the Company
or its stakeholders to be important basedon management policies, medium-term
management plans, specific materiality by
SASB industry, etc.
② Refine themes and set targets throughworkshops with General Managers ofbusiness divisions and Chief Officers ofbusiness strategy divisions.
③ After reviews by the Board of Directors
including outside directors and outside
Audit & Supervisory Board Members,
approval of items and KPIs.
④ Organize the relationship with CSR issues,and clearly detail the specified results in
the integrated report and on the website.

● Contributions to treatment of illnesses and rare diseases■

Development of innovative medical devices through the use of our world-classmicro precision processing and microwave (high frequency) technologies■

Industry-academia open innovation (Gunma University, University of Tsukuba,
Tokai University, Kobe City Medical Center General Hospital, UCLA, etc.)■

Construction of an ecosystem with universities, hospitals, and startup businesses(startup ecosystem)● Promoting measures in response to climate change
Formulating and promoting concrete measures in response to climate change inorder to realize carbon neutrality by 2050.
■

Responding to climate change
Formulating concrete measures that conform to the recommendations of the
FSB Task Force on Climate-related Financial Disclosures (TCFD)
Disclosure using the Carbon Disclosure Project (CDP) framework■

Water resource management (reductions in water usage, improved wastewater
treatment)■

Resource recycling (reductions in waste quantities, promotion of zero emissions)● Strengthened compliance and governanceThree Priority Issues (Materiality)

Related SDGs

From the candidate issues that wereextracted and analyzed using the process
outlined above, we identified the following
three priority issues:● The environment● Local communities● Diversity and inclusion

23

Yokowo 2022 Integrated ReportMore advanced

② Be a company that society (including local
communities) and its business partners feel
comfortable interacting with

③ Be a company where employees feel comfortablebeing employed, and which ensures that employeesʼ
families are happy for them to work there● Dialog with local communities and contributions to theirdevelopment● Promotion and development of workforce diversity andinclusion■

Employment of local residents■

Donations to local governments, and sponsorship of local events■Entering into a naming rights partnership agreement with Tomioka City■

Trash cleanup activities around the Tomioka plant■

Tomioka City Educational Fund, Tomioka World Heritage Exhibition
Maintenance and Management■

Agreement on Gunma University Industry-academia Collaboration■

Donations to the Rotary Yoneyama Memorial Foundation and Disaster Relief
Funds through the Tomioka Rotary Club■Work through Tomioka City and the Tomioka Chamber of Commerce &Industry to promote solutions to local issues■

Education assistance for elementary, junior high, and high schools■

Participate in Gunma Tech Planter as a regional development partner■

Contribution to local revitalization through expanded hiring of foreign staff
in the Tomioka area (utilizing TISP)■

Promoting activities to provide support for SMEs and for the cultivation ofyoung people who will play important roles in the future, as a sponsoring
member of the Certified Management Support NPO Club, a Specified Nonprofit Corporation registered with Tokyo Metropolitan Government● Fulfilling social responsibility throughout the supply chain■

Promotion of the TISP (Tomioka International Specialist Park) concept
Employing around 100 specialists from overseas and establishing business
management processes in which collaboration with overseas staff is considered
normal will stimulate business activities that make the most of this diversity, andthrough improved living environments we will contribute to regional interaction andrevitalization.

■

Expansion and development of womenʼs careers
Revising and promoting the action plan in accordance with the Revision of the Act
on Promotion of Womenʼs Participation and Advancement in the Workplace, andexpanding and reinforcing this throughout the PDCA cycle
Revising and promoting the action plan in accordance with the Act on Advancementof Measures to Support Raising Next-Generation Children, and expanding andreinforcing this throughout the PDCA cycle
Improving work-life balance by establishing on-site company nurseries■

Creating a workplace environment allowing all employees to play an activerole regardless of age■

Establishing a special subsidiary to provide employment for persons withdisabilities and expand their opportunities for participation● Achieving an appealing, rewarding work environment■

Improving work-life balance by establishing a teleworking system■

Improving work-life balance by encouraging employees to take annual paid
leave

■

Improving employee satisfaction by expanded support for illness prevention
and treatment■

Fair and equitable selection, and compliance with the Subcontracting Law■

Building relationships as an equal partner■

Building a checking system to eliminate unethically mined resources, etc.
(conflict minerals monitoring system)■

Establishment of awards system, including for social contributions■

Multi-layered production bases (Vehicle Communication Equipment segment:
establishment of a third production base)■Get-together Interactive meetings (product technologies, production
technologies, QC)■

Construction of a fault-tolerant supply network (duplicated lines and networking)■Establishment of global employee promotion and HR treatment system■

Strengthened support system with Tier 2 and Tier 3 suppliers■

Establishment of an Advanced Technical Research and Development Center toprovide an appealing working environment for technical personnel■

Offering advanced technical training opportunities (AI and other graduate
education, business school, external research organizations)● Establishment of a global BCP system, and constant testing to
improve its effectiveness● Building of a human rights check system in cooperation withlocal governments and NPOs to eliminate child labor andunethically mined resources, etc.

● Expanding long-term training and apprenticeship programsin Japan for employees in locations overseas thus improving
their abilities, and establishing a human resources systemwith global applicability■

Strengthened risk management (establishment of Business Risk Management Committee, disclosure of major risks)■

Achieving fair market competition (setting of Group rules, and monitoring of compliance)

Related SDGs■

Avoidance of corruption, bribery, and anti-competitive behavior

Related SDGs

business activities and social contribution
GO BEYOND〜Challenge the Next Stage〜
Yokowo 2022 Integrated Report24

Yokowoʼs Value Creation▼ Materiality targets and progress status
Materiality

Establish Yokowo as a quality brand by using the highest
quality, and by a move to zero hazardous chemical
substances

Targets for 2030
Performance Indicator

Target Value

Number of innovative medical devices created backed up
by IP (annual)5①

Be a company that customers and their customers
feel comfortable working with

Establishment of micro precision and microwave
laboratories

EstablishedContributions to treatment of illnesses and rare diseases

Number of treatments provided to the field of rarediseases with low patient numbers and without establishedtreatment methods (annual)

Response to climate change

GHG emissions
Compared to FY2014
Target for 2030

Scope 1 and 2
35% reduction

Water use (basic units)
Target for 2030

10% reduction compared to
FY2020Waste generation
Target for 2030

10% reduction compared to
FY2020

Formulating concrete strategies that conform to TCFD
recommendations
Disclosure using the CDP framework
Planning and progress management by the Board of
Directors

Number of major compliance violations (annual)Strengthened compliance and governanceTraining participation rate (annual)

3

0
100%

Be a company that society(including local communities)
and its business partners feel
comfortable interacting with②

Be a company where employees feel comfortable being
employed, and which ensures that employeesʼ families are
happy for them to work there

Dialog with local communities and contributions to theirdevelopment

Number of community service projects undertaken (annual)10

Fulfilling social responsibility throughout the supply
chain

Violations of the Subcontracting Law

0

Establishment of a global BCP system, and constanttesting to improve its effectiveness

BCP strategy-based best mix of overseas and domestic
production

BCP certification

In-house checks, and actively contributing to thepromotion of fair labor practices through collaboration
with NPOs in each country

NPO cooperation activities
5 (annual)

Ratio of female leaders (overall ratio of female employees
who are section heads or higher)

Comparable with levels for
males

Create a workplace environment allowing all employees toplay an active role regardless of age

Employment age limit
70 and above

Concern for human rights
Building of a check system in cooperation with local
governments and NPOs to eliminate child labor andunethically mined resources, etc.

③

25

Promotion and development of workforce diversity andinclusion

Number of TISP hires

Ratio of employees with disabilities

Percentage of annual paid leave taken

Achieving an appealing, rewarding work environment

Expanding long-term training and apprenticeshipprograms in Japan for employees in locations overseas
thus improving their abilities, and strengthening thebusiness mindset of Japanese employees throughinteraction with these employees

Yokowo 2022 Integrated Report

120

150% of legally stipulated
ratio

90%

Number of on-site company nurseries established (including
contracted service provision)

3

Number of workplace accidents (annual)0

Number of overseas long-term trainees accepted (annual)

20

VOICE
Achievement Level by FY2021
2 devices under development(specification finalized)
Promoted the construction of the Micro Process
R&D Center(Construction due to be completed in 2022)
1 treatment under development(prototyping stage)
Promoted the adoption of photovoltaic power
generating facilities at the Tomioka Plant andVietnam Plant, which are the Company's core
plantsPromoted discussions into Scope 3 reduction
methods
17.6% reduction compared to FY2020
5.2% increase compared to FY2020
0
Information security e-learning: 98%
Compliance e-learning: 98%
Active as a naming rights partner at the Tomioka
Plant
Made preparations for the establishment of a
Social Activity Promotion Section
For more details, please see the Local
Communities section (p.49)
0Promoted the establishment of a new business
continuity planning (BCP) system in Fine
Connector business in Personal Communication
Equipment segment
Complying with all customer human rights
status checks and exploring possibilities forcollaboration with NPOs to strengthen our own
internal checking function
Male 38.0% Female 7.2%
Currently implementing roundtable discussions
For more details, please see the Employees
section (p.44)
Completed adoption of a framework thatenables persons aged 65 or over to continue
working as contract employees underoutsourcing agreements
Number of TISP hires at the Company 61
1.51%
Promoted preparations for the establishmentof YOKOWO FUTURE-ORIENTED SUPPORT CO.,LTD.
For more details, please see at right.
65.2%
Preparations are underway as part of the
Tomioka Plant renewal plan.
We are also planning to introduce a childcare
and nursing care plan as part of the new
personnel system.
90
Although recruitment at overseas facilities
went ahead as normal, the acceptance ofoverseas long-term trainees in Japan was put
on hold because of the spread of the COVID-19
pandemic.

Aiming for Diverse Human Resources

Measures towards
employment for persons withdisabilities ~ Establishing
YOKOWO FUTURE-ORIENTEDSUPPORT
Koichi Fukagawa
Director, Senior Managing Executive Officer
YOKOWO FUTURE-ORIENTED SUPPORT CO., LTD.
Representative Director

Year by year, it is becoming increasingly difficult to hire high-caliber staff, and so
we are promoting the hiring and training of a diverse range of human resources
under our basic policy of promoting diversity and inclusion.
One of our efforts to utilize diverse human resources is to promote theemployment of people with disabilities. When people with disabilities can leverage
their specific characteristics and strengths to take on certain tasks within aworkplace, this increases the productivity of the workplace as a whole, and leads
to a sense of fulfillment and job motivation for these people. We also feel thathaving our employees work alongside people with disabilities will drive home thefact that we are serious about promoting diversity and inclusion.
Many of our employees with disabilities have left the company mid-career, andas a result we have failed to meet the legally mandated employment rate. Upon
analysis of this low retention rate, we found the main reasons to be insufficienttraining in each workplace to accommodate people with disabilities, and a lack ofsupport systems in terms of business and lifestyle for these employees.
Accordingly, we determined that it was necessary to establish a subsidiary
dedicated to the employment of people with disabilities. The subsidiary would
cover education on the characteristics of people with disabilities and the creationof opportunities in which they can play an active role, through to assigning publichealth nurses and mental health and welfare professionals to provide healthand lifestyle support. Accordingly, we established YOKOWO FUTURE-ORIENTEDSUPPORT CO., LTD. in April 2022.
At present, the work undertaken by people with disabilities through YOKOWO
FUTURE-ORIENTED SUPPORT includes cleaning and disinfecting the factory,
parts inspections and packaging at production sites, and data entry in the design
department. Management and key personnel at YOKOWO FUTURE-ORIENTEDSUPPORT are veteran employees with a deep knowledge of Yokowo operations,
including design and manufacturing. Therefore, the creation of work for people
with disabilities is proceeding smoothly.
In the future, the company plans to expand its cleaning and disinfecting
business beyond the Yokowo Group's own operations to include cleaning,
disinfecting and planting business at local community centers, gymnasiums,
and other sports facilities. Through such measures, it aims to become a special
subsidiary well-loved by local communities, and to further improve job satisfaction
and motivation of people with disabilities.

Yokowo 2022 Integrated Report26

Yokowoʼs Value Creation

Yokowoʼs Manufacturing
The Yokowo Group actively incorporates cutting-edge technologies while reaching greater heights with its coretechnologies, such as micro precision processing technology, antenna technology, and microwave technology,
providing a wide variety of original products for the worldʼs leading companies.
Furthermore, Yokowo is promoting innovation each and every day in the production process and enhancing oursoftware development capabilities in order to evolve our business model from "things" to "services" — this is so that
we can achieve high levels in terms of quality, cost, delivery, and safety (QCDS).

Cutting-Edge Research and Development

Basic Research

Microwave
Technology

Amid the development of automated driving and 5th generation mobile communications systems (5G),
microwave technology is becoming increasingly more important in the fields of vehicle communicationand semiconductors. Yokowo is progressing with the establishment of the worldʼs highest-level
microwave technology in terms of both wireless communication and semiconductor testing.

In addition to the worldʼs highest-level micro precision processing
technology, Yokowo is strengthening its competitiveness in precision
plating and MEMS processing.

Micro Precision
Process

Process
Development

All major elemental technologies are developed within Yokowoʼsproduction engineering department, which also promotes AI
applications in production and quality control.

Production
Process

Yokowo is establishing an integrated system from design tomaintenance that utilizes multiple uses of 3D computer-assisted design
information.

Design Process

Commercialization
Research

Yokowo has established a system in which the R&D department, the process technology department
and the department responsible for new product development and commercialization can work
together closely. By incorporating cutting-edge technologies in collaboration with other companies anduniversities, Yokowo is also promoting product evolution and a multi-layered business structure.

Applied Research●●System
proposals related to building social platforms that utilize wireless technology and software development capabilities
無線技術・ソフトウェア開発力を活用した社会プラットフォーム構築に関わるシステム提案●●Developmentof high-speed optical communication devices and connectors, and automatic testing technology for wireless antennas
自動運転・5Gの進化に不可欠な半導体デバイスに組み込まれた無線アンテナ機能自動検査技術と高速光通信デバイス・

incorporated
in semiconductor devices essential for the evolution in automated driving and 5G
コネクタの開発● Turnkey system proposals for semiconductor testing tools● ターンキー型半導体検査用治具システム提案

27

Yokowo 2022 Integrated ReportMulti-Layer Building
Products

Fields for Product Roll-Out

Vehicle Antennas

Semiconductor testing

Expanding and Strengthening

Software applications● Automated driving systems

Semiconductor Testing Tools● 5G● Turnkey

Connectors forElectronic Devices●S mall, low profile,waterproof, high current

Medical Devices● Precision parts● Assembly productsHigh frequency
device testing

Social Platforms● Car sharing

Medical devices

Strategic Development

Connectors forelectronic devices● Drones

High Frequency Device
Testing● Amps● Filters

Optical Communications● Connectors● Photoelectric conversion

Precision Plating● Wet

The worldʼs number one manufacturer for high-frequency,
wireless applications, and precision parts

Vehicle antennas● Dry

Yokowo 2022 Integrated Report28

Yokowoʼs Value Creation

Research and Development
The Yokowo Group has set the five fields of micro precision processing technology, microwave technology,
antenna technology, surface modification materials technology (surface processing/modification of material), andsemiconductor application technology as the Companyʼs core technologies supporting its competitiveness in themarketplace. Through greater sophistication and wider use of all its technologies, Yokowo is building a multi-layered
business structure to create innovative, high-tech products.

Research and Development Policy
Basic & Applied ResearchBusiness Development in Growth Fields

Product design R&D

Production R&D

Microwave
technology

Micro precision
processing
technology

Advanced ProductCreation

Stable Supply of
Advanced Products

Semiconductor
application
technology

Antennatechnology
Wireless
communication
technology

Surfacemodificationmaterials
technology

Automotive

Social infrastructure(MaaS/ETC)

SoftwarePackagingTechnology

Material
evaluation
technology*1
Ceramic
technology*1

CASE*2

Semiconductor
testing

Mobile communication
terminals

5G

Medical devices*1 Material evaluation technology and ceramic technology promote evolution through alliance*2 An acronym for the new trend in automobiles: Connectivity, Autonomous, Shared, Electric

Ceramic devices(joint venture with
Nippon Electric Glass)

Decliningbirthrate
and aging
population

Product design R&D and production R&D are essential and inseparable elements of Yokowoʼs research and development. With the two
running in sync Yokowo is able to create advanced products at the cutting edge, providing a stable supply to the Companyʼs customers.

Research and Development System

Technical H.Q.

Each Business Division’sTechnology Development Group

Production Engineering
Research Department

Core Technology
Development H.Q.

Manufacturing
Engineering
Research Department

New Technology &New Business Incubation

Innovation Promotion
Division(Product Development Supervision,
Intellectual Property)

Production Process
Innovation H.Q.
(Basic technologies and research
related to
production process technology)

Management Planning H.Q.
(Business Strategy, M&A)

The Core Technology Development H.Q. is in charge of the research and development of technologies, such as microwave technology,
micro precision processing, and MEMS technologies, needed to give our products a competitive advantage. Whereas the engineering
departments in each business division are in charge of developing applications for new products with the Technical H.Q. overseeing thewhole product development process. Likewise, the Production Process Innovation H.Q. is in charge of research related to the production of
products, and the Management Planning H.Q. is in charge of new technology and new business incubation.

29

Yokowo 2022 Integrated Report

R&D Investment

Main R&D Themes

Based on the Yokowo Groupʼs company-wide growth strategy,
the R&D department, the business divisionʼs technology
department, and local development centers work together topromote research and development centered on the Companyʼscore technologies. In particular, Yokowo is focusing on the
research and development of new technologies and new
products with an emphasis on developing products with a higher
degree of technological integration and increased added value.

Over the medium to long term, Yokowoʼs main markets, namely
the automotive, semiconductor testing, mobile communication
terminals, and medical device markets, are expected to grow insize due to: advances in new eco-friendly vehicles such as plug-in
hybrids and electric vehicles as well as advanced driver-assistancesystems (ADAS) and automated driving; the actualization of new
semiconductor demand for next-generation high-speed, largecapacity communications typified by 5G and Beyond 5G (6G);
the rise of next-generation products such as wearable devices;and the spread of minimally invasive treatment and advances ingenetic testing technology.
The main R&D themes for each segment related to the above
markets are as follows:▼ R&D Expenses(million yen)
4,000
3,500
3,000

3,592

3,260

3,405

3,201

2,636

2,500

Vehicle Communication Equipment

2,000■ Antenna system for V2X essential for ADAS and automateddriving■ Technology development for communication systems,
equipment and devices for the CASE era

1,500
1,000
500
0

2017

2018

2019

2020

2021
(FY)

Circuit Testing Connector

Intellectual Property Rights
With its sights set squarely on target business fields and businessdevelopment for intellectual property, Yokowo is strengthening
the foundations of its intellectual property, the cornerstone of its
business strategy, by steadily increasing the number of patents
it holds in Japan and overseas and by making use of licensing
agreements, etc.
▼ Patents held(case)
1,000
900
800
700
600
500
400
300
200
100
0

949
844
737

658
526

495

586

349

363

453

411
320

2017

284

247

206
2018

2019

2020

■ Development of test sockets for high-current, high-speed andhigh-frequency devices■ Research and development aimed at improving performance,
durability, and functionality, e.g. probe surface modification
technology■ Development of probe cards that keep pace with thesemiconductor device technology roadmaps (narrower pitch,
more pins, and higher frequencies)

Personal Communication Equipment
Fine Connector Business■ Development of high rated connectors■ Development of optical connectors for high-speed opticalcommunication
Medical Device Business■ Joint development of new minimally invasive medical
equipment and testing systems with universities and medical
institutions in Japan and the United States that utilize micro
precision processing technology and microwave technology

2021
(FY)

Overseas patents (including actual plans, designs and trademarks)
Domestic patents (including actual plans, designs and trademarks)

Yokowo 2022 Integrated Report30

Yokowoʼs Value Creation

Product Technology
The Yokowo Group develops a whole range of innovative products based on its unique technological capabilities
built up over many years, supplying electronic, electrical and automotive manufacturers around the world.

Innovative Product Development through the Fusion of Yokowoʼs Technologies

Antenna
Technology

Surface Modification
Materials
Technology

Microwave
Technology

Micro Precision
Processing
Technology

Product
Development

Production
Engineering

・MEMS Technology

New Core
Technology

・Ultra Fine Pitch Microwave
Contactor
・Advanced Millimeter-Wave
Module Technology/Measurement
Technology

Technology
Research &Development

By combining Yokowoʼs production engineering
for increased production efficiency with its
core technologies of micro precision processing
technology, microwave technology, antenna
technology, and surface modification materials
technology, the Company is able to develop
products with innovation and creativity. Amassing
technical expertise with greater sophistication,
Yokowo remains committed to the fundamental
research and development of new coretechnologies.
Through these unique technologies, Yokowo
manufactures a whole range of innovative
products such as: vehicle antennas; testing tools
for semiconductors and electronic components;
connectors for electronic devices; and medical
devices. Yokowo continues to supply these products
and more to the automotive, semiconductor
testing, mobile communication terminals andmedical device markets.

▼ Vehicle Communication Equipment Business Domain

Automotive Market
Multimedia

SystemProducts Developed

To meet the needs required for smaller, multi-use,lower profile, smart vehicle antennas, Yokowo isdeveloping antenna systems that support nextgeneration vehicle communication by making fulluse of modular technologies as well as the antenna
and microwave technologies Yokowo has built up
over many years.
Along with Yokowoʼs state-of-the-art facilities,
including an electromagnetic field simulator and an
anechoic chamber for measuring millimeter-wave
frequencies (up to 40GHz) in 5G communications,
Yokowo makes full use of its world-leading
technological prowess to manufacture innovative,
industry-leading products.

Connected

AM/FM

Navigation

DigitalBroadcasting

Telematics

Electronic Toll
Collection/
Dedicated
Short Range
Communications

Solutions

Shark Fin
Antennawithbuilt-incameraHigh
precision
GNSS
Antenna

Laminated
Antenna

5G/V2X
compatible
Shark Fin
Antenna

GNSS/DSRC
HybridAntenna

MaaS
compatible
In-Vehicle
Control
Solution

Shark Fin Antenna with built-in camera

31

Yokowo 2022 Integrated Report

5G compatible anechoic chamber▼ Circuit Testing Connector Business Domain

Semiconductor Testing Market
MEMS Technology

More than ever before semiconductors andelectronic components are required to have faster
speeds, higher frequencies, and better integration,with similar expectations also for the testingprocess. By making full use of MEMS technology,
in addition to Yokowoʼs micro precision processing
and microwave technologies developed over many
years, Yokowo develops and supplies products
globally in all areas of high-speed, high-frequency
as well as front- and back-end testing processes.

Contact Bumps

Core Connector
Technologies for
Semiconductor
Testing

Micro Precision
Processing
Technology

Microwave
Technology

Ceramic
Technology

Microfabricated Parts

Evaluation Systems▼ Features and Main Uses of the SPRING CONNECTOR™

Mobile Communication
Terminal Market
In the rapidly expanding mobile communications
terminal market, there is an increasing need for
detachable, low profile space-saving connectors
with detachable durability and environmental
worthiness becoming even more importantin commercial information devices. Yokowoʼsproprietary SPRING CONNECTOR™ accurately
capture these market needs, becoming used more
widely in a variety of applications.

4 features

High Reliability

Space Saving

Design FreedomHigh Durability

Main Uses
Video equipment

Informationequipment

Automotive
equipment

Mobile phone

Point of Sales

Health equipment

Wireless device

Medical Device Market
Yokowo is making full use of technologies such as
micro precision processing, coating, assembly, as
well as product design and evaluation to develop
such products as OEM guide wires, catheters andother items in the field of minimally invasive medical
equipment. Yokowo possesses its own equipment
and manufacturing lines to provide a complete
service from product processing and finishedproduct assembly to hydrophilic coating, packaging
and sterilization. In the assembly process, various
connections methods can be selected depending on
the productʼs use.

Enlarged Figure of Hydrophilic
Coating

Assembly of Esophageal Temperature Probe

Tip Terminal of Catheter

Radiopaque Marker

Coil for Guide Wire

Yokowo 2022 Integrated Report32

ESG Report

Corporate Governance
The Yokowo Group aims to achieve its management goals by ensuring management efficiency, transparency andcompliance through the continuous strengthening of its corporate governance, positioned as one of the Groupʼsimportant management challenges.

Board of Directors

Basic Principles Concerning Corporate
GovernanceTo speed up the decision-making process, the Board of Directors
consists of only a limited number of directors (four internal
and two outside directors). The Company has appointed two
independent outside directors (with a high level of independence)
to further strengthen the management supervisory function, andthese include a female outside director.

Recognizing that Yokowo exists today through the supportof its various stakeholders, the Group positions strengthening
corporate governance as one of its important management
challenges. As well as building smooth relations with its
stakeholders, the Group aims to maximize corporate value
through further enhancing its corporate governance.

Audit & Supervisory Board
In addition to one full-time internal Audit & Supervisory Board
Member with sufficient knowledge in finance and accounting,
the Company has appointed two highly independent outside
Audit & Supervisory Board Members to further strengthen the
management audit function.

Corporate Governance System

Executive Officers

Yokowo is a company with auditors and has a system ofcorporate governance consisting of: a Board of Directors
responsible for management strategy and supervisory functions,an Executive Officer system that fulfills business execution, andan Audit & Supervisory Board that performs management audit
functions.

By adopting the Executive Officer system, the strategic decisionmaking and operational supervisory functions are clearly
separate from the executive function, in order to create a systemfor prompt and appropriate execution of operations. In addition
to four internal directors, the Company has appointed eleven▼ Corporate Governance System (As of October 1, 2022)
General Meeting of Shareholders
Elect

Consultation
Supervise

Elect

Audit

Board of Directors outside

Elect

Cooperate

Audit & Supervisory Board

Independent Auditors

Management/Supervision

Reporting

Nomination andCompensation
Advisory
Committee

Cooperate

Audit

Audit

Business Execution

President and Executive Officer
Business Risk Management Committee
Internal Audit Dept.
Administration
Management H.Q.

Management Planning H.Q.
SCI (Sustainability & Corporate Integrity)
Promotion H.Q.

Sales H.Q.
Technical H.Q.

VCCS
Business Div.

CTC
Business Div.

FC
Business Div.

Core Technology Development H.Q.

MD
Business Div. Production Process Innovation H.Q.
Purchasing H.Q.
Quality Assurance H.Q.

Business Organization

33

Yokowo 2022 Integrated Report

Functional
Organization

executive officers in the positions of Chief Officer, General
Manager, and General Manager at Tomioka plant, etc.

Initiatives to Improve GovernanceNomination and Compensation Advisory
Committee
The Company established the Nomination and Compensation
Advisory Committee as an advisory body for the Board of
Directors, with the aim of enhancing the transparency of thedecision-making process for matters relating to corporate
governance, such as directors' nomination and compensation.
The Committee has three members, composed of the Company's
two independent outside directors Ms. Kuniko Muramatsu andMr. Makoto Tobari, and the Representative Director, President
and Executive Officer Mr. Takayuki Tokuma, with Ms. Kuniko
Muramatsu serving as chairperson.
The Committee receives requests for consultation fromthe Board of Directors, deliberates and decides on proposals,
and then submits reports to the Board of Directors. The rules
governing the operation of the Board of Directors specify that,in its decision-making, the Board must respect the content of
the reports received from the Committee to the utmost possible
extent.
A summary of the meetings held from April 2021 throughSeptember 2022 and the main agenda items is as follows.
May 2021: Deliberated and decided upon a draft proposal
regarding the payment of bonuses to executive directors andexecutive officers for the fiscal year ended March 31, 2021.
September 2021: Discussed the direction of the Board of
Directors, and the succession plan.
October 2021: Deliberated and decided upon a draft proposal
regarding the direction of the Board of Directors, and thesuccession plan.
December 2021: Deliberated and decided upon a draft proposal
regarding the executive structure (directors, auditors, executive
officers) and their compensation for the fiscal year ending March
31, 2023.
February 2022: Deliberated and decided upon a draft proposal
regarding the executive structure (additional) for the fiscal year
ending March 31, 2023.

April 2022: Deliberated and decided upon a draft proposal
regarding the payment of bonuses to executive directors andexecutive officers for the fiscal year ended March 31, 2022.
June 2022: Chairperson appointed under the new committee
structure (Ms. Kuniko Muramatsu is reappointed).
September 2022: Discussed the direction of the Board of
Directors and operational methods.

Measures to Enhance Auditing and Supervisory
Functions
As well as sharing information and exchanging ideas in advanceof the Board of Directorsʼ agenda, the Companyʼs outside
directors share matters of deliberation and reports from the
Audit & Supervisory Board to the extent necessary.
Full-time internal auditors ensure compliance andappropriateness by attending important monthly meetings toregularly monitor how business is conducted.

Business Risk Management Committee
Furthermore, the Company has established the Business Risk
Management Committee as an organization under the directcontrol of the President. Its aim is to strengthen the Companyʼscompetitiveness and ability to manage risk, such as by forming
alliances through joint ventures, mergers and acquisitions tofurther advance business, and by verifying the profitability oflarge-scale investments. In addition to regular reports to theBoard of Directors, the Committee conducts activities in close
cooperation with the outside directors.

Analysis and Evaluation of theEffectiveness of the Board of Directors
Since 2016 Yokowo has been conducting self-evaluation
surveys and, when necessary, interviews with all its directors andauditors, collecting the results and analyzing them.
This year (2022), the survey was conducted in May, and items
classed as either favorable or issues/requests were as follows.
<Favorable>■ The Board of Directors has atmosphere that actively listens to
the opinions of outside directors, and that emphasizes active
discussions.

Yokowo 2022 Integrated Report34

ESG Report<Issues/requests>■ The Company should ensure more diversity in the compositionof the Board of Directors in terms of gender, nationality, age,and other backgrounds.
■ The Company should ensure a sufficient number of
independent outside directors who are qualified to contributeto enhancing corporate value over the medium to long term.
■ Agenda items have increased at Board of Directors meetings,
but require more in-depth discussion.
In general, the effectiveness of the Company's Board of
Directors was determined to be sufficient, but we will work tofurther improve effectiveness by addressing issues, including
those above.

Director and Executive Officer
Compensation
Policy on Determining Director and Executive
Officer Compensation
With regards to compensation for the directors of the Company,
an upper limit for the total compensation in each fiscal year
is set by resolution at the General Meeting of Shareholders.
Compensation for individual directors is then determined by aprocess whereby the Nomination and Compensation Advisory
Committee receives a request for consultation from the Boardof Directors, and then deliberates and decides on proposals
regarding the amount to be paid to individual directors before
reporting to the Board of Directors, which then makes the
final decision, while respecting the reports received from theCommittee to the utmost possible extent.
In the same way, with regards to compensation for theauditors, an upper limit for the total compensation in each fiscal
year is set by resolution at the General Meeting of Shareholders.
Individual compensation is then determined within the boundsof the upper limit through consultation with auditors.

Compensation for Directors
Compensation for the Companyʼs directors consists of fixedmonthly compensation, a monetary executive bonus, and a sharebonus in the form of stock options, etc.
Based on guidelines that take into account individualsʼ roles
and responsibilities, the Representative Director, President and35

Yokowo 2022 Integrated Report

Executive Officer draws up a proposal regarding the amount of
fixed compensation after taking into consideration the businessresults of the previous fiscal year, the management plan of
the current fiscal year, and the roles of each director, etc. A
request for consultation is submitted to the Nomination andCompensation Advisory Committee, and then reported to theBoard of Directors, which deliberates on the matter and makes
the final decision.
Executive bonuses are paid based on their extent to whichinternal Executive Directors' performance targets have been
met to enhance their motivation for improving the Companyʼs
performance in each (consolidated) fiscal year. The three indicesof consolidated sales, consolidated net sales, and profit (loss)
attributable to owners of parent ("three indices") are used as
performance targets.
Regarding the question of whether executive bonuses arepaid, and the total amount paid, the Representative Director,
President and Executive Officer draws up a proposal based on theextent to which the relevant three indices have been achieved ineach (consolidated) fiscal year. If it is determined that executive
bonuses will be paid that year, the Representative Director,
President and Executive Officer draws up a proposal regarding
the amount to be paid to each individual based on the roles
and results of each individual executive director (including theircontributions to solving sustainability issues). The proposal for
consultation is submitted to the Nomination and Compensation
Advisory Committee, and then reported to the Board of Directors,
which deliberates on the matter and makes the final decision.
With the aim of sharing value with shareholders whileproviding increased incentive to build corporate value overthe medium to long term and enhance shareholder value,stock options are granted to executive directors. However, thedecision as to whether to grant stock options, and the period,is determined after comparing the impact of the necessary
expenses on performance with the anticipated incentive effect.
The Representative Director, President and Executive Officer
draws up a proposal regarding the amount of stock options tobe granted to each individual executive director based on theroles and results of each individual executive director, within theupper limit (in terms of the value of shares or number of shares)
set by the Shareholders Meeting. A request for consultation
is submitted to the Nomination and Compensation Advisory
Committee, and then reported to the Board of Directors, which
deliberates on the matter and makes the final decision.

As a general rule, internal directors are obliged to contributea certain amount or more of their basic compensation to the
Executive Shareholdersʼ Association every month as stipulated
by internal rules. Yokowo shares accumulated by the Executive
Shareholdersʼ Association shall be transferred under the nameof the individual executive directors every six months (in late
September and late March).
In principle, Directors shall hold their shares and not sell themwhile holding their position of director.
Regarding the ratio of executive directorsʼ overall
compensation to be held by each category of compensation, thisshall be determined based on the roles and responsibilities ofeach executive director and on trends in compensation at othercompanies with a similar scale of operation to Yokowo. In thecase where stock options are granted up to the specified upper
limit, the target ratios for each of the categories of compensation
are: basic compensation: 60%; performance-linked compensation:
20%; compensation in the form of shares: 20%.

of each auditor and based on guidelines stipulated in advance.
In the event of bonuses to auditors, these are paid after
approval at the General Meeting of Shareholders.
▼ Compensation Figures(million yen)

Fiscal 2021
Upper Limit(annual)Basic
compensation

Executive
bonus

Compensationin the form ofshares

Total

Directors(outside)

280
(20)

165
(15)

48
(―)

―
(―)

213
(15)

Auditors(outside)

40

37
(15)

―
(―)

―
(―)

37
(15)

Total
(outside)

320

202
(31)

48
(―)

―
(―)

250
(31)

Company Officers Skill Matrix
Among the various areas of expertise and experience possessedby each current Director and Member of the Audit & Supervisory
Board, up to three items are listed for which there are particularly
strong expectations regarding that individualʼs ability to utilize
these items effectively in the performance of their duties. The tablebelow thus does not show the entirety of the specialist experienceand experience of each individual.

Compensation for Auditors
Compensation for auditors is limited to basic compensation,
which comprises monthly compensation in monetary terms.
The amount of basic compensation is determined bydiscussion among the auditors at the Audit & Supervisory Board
meeting taking into consideration the roles and responsibilities▼ Company Officers Skill Matrix
Specialist Expertise and Experience
Name

Takayuki Tokuma
Koichi Fukagawa
Kenji Yokoo
Naohito Odani

Corporate
management

ESG andsustainability

Representative Director,
President and Executive Officer
Director, Senior Managing
Executive Officer
Director, Managing Executive
Officer
Director, Managing Executive
Officer

〇

〇

〇

〇

〇

〇

〇

〇

Kuniko Muramatsu Outside Director
Makoto Tobari
Kenji Kamachi
Toshiaki Tochigi
Hisao Tsunoda
Emi Yoneda

Legal affairs
and riskmanagement

Position

Outside Director
Audit & Supervisory Board
MemberOutside Audit & Supervisory
Board Member
Outside Audit & Supervisory
Board Member
Outside Audit & Supervisory
Board Member

Finance and
M&A

Human
resources andlabor affairs

〇

〇

〇

〇
〇

〇

〇

〇

〇

〇
〇

〇

〇

〇

〇
〇

Internationality〇〇〇

Technologicalstrategy

〇
〇

〇
〇
〇

〇
〇

〇

Yokowo 2022 Integrated Report36

ESG Report

Directors, Auditors and Executive Officers(As of June 28, 2022)

Board of Directors

Takayuki
TokumaKoichi
Fukagawa

Kenji
Yokoo

Naohito
Odani

KunikoMuramatsu

MakotoTobari

Representative Director,
President and Executive
Officer

Director,
Senior Managing Executive
Officer

Director,
Managing Executive
Officer

Director,
Managing Executive
Officer

Outside Director

Outside Director

Attendance rate at Boardof Directors Meetings:
18/18 times (100％)
Number of Company
shares held:
288,178 shares

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
51,668 shares

Attendance rate at Boardof Directors Meetings:
18/18 times (100%)
Number of Company
shares held:
90,128 shares

Attendance rate at Boardof Directors Meetings:－ (New appointment)

Attendance rate at Boardof Directors Meetings:
17/18 times (94%)
Number of Company
shares held:
0 shareAttendance rate at Boardof Directors Meetings:－ (New appointment)

Number of Company
shares held:
7,600 shares

Number of Company
shares held:
0 shareAudit & Supervisory Board Members

Kenji
KamachiToshiakiTochigi

Hisao
TsunodaEmi
YonedaAudit &
Supervisory Board Member

Outside Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Attendance rate at Boardof Directors Meetings:－ (New appointment)

Attendance rate at Boardof Directors Meetings:
17/18 times (94%)

Attendance rate at Boardof Directors Meetings:－ (New appointment)

Attendance rate at Boardof Directors Meetings:－ (New appointment)

Attendance rate at Audit& Supervisory Board
Meetings:－ (New appointment)

Attendance rate at Audit& Supervisory Board
Meetings:
16/17 times (94%)

Attendance rate at Audit& Supervisory Board
Meetings:－ (New appointment)

Attendance rate at Audit& Supervisory Board
Meetings:－ (New appointment)

Number of Company
shares held:
1,251 share

Number of Company
shares held:
0 shareNumber of Company
shares held:
0 shareNumber of Company
shares held:
0 shareExecutive Officers
President and Executive Officer

Takayuki Tokuma

Executive Officer cum Deputy Chief Officer,
Technical H.Q. cum General Manager,
VCCS Engineering Management Division

Senior Managing Executive Officer

Tsuyoshi Sakata

Koichi Fukagawa
Managing Executive Officer

Kenji Yokoo

Executive Officer cum Chief Officer,
Quality Assurance H.Q.

Masaki Shimizu

Managing Executive Officer cum General Manager,
Technical H.Q.

Executive Officer cum Chief Officer,
Purchasing H.Q. cum General Manager,
VCCS Manufacturing Department

Naohito Odani

Yoshiro Furumi

Managing Executive Officer cum General Manager,
VCCS Overseas Plant

Executive Officer cum General Manager,
FC Business Division

Katsuhei Yanagisawa

Motoaki Matsuura

Managing Executive Officer cum General Manager,
Tomioka Plant

Executive Officer cum General Manager,
CTC Business Division

Mitsuaki Okazaki

Naoki Kawata

Executive Officer cum Chief Officer,
Management Planning H.Q.

Tatsuo Tsunoda
Executive Officer cum Chief Officer,
Core Technology Development H.Q.

Tomohisa Hoshino
Executive Officer cum General Manager,
MD Business Division

Koichi Tachikawa
Executive Officer cum Chief Officer,
SCI (Sustainability & Corporate Integrity) Promotion
H.Q. cum General Manager, Sustainability Promotion
Department cum General Manager,
Corporate Secretary Department cum General Manager,
Public Relations & Equity Department

Toshihisa Tagaya* For details regarding the reasons for appointment of individual Directors and Audit & Supervisory Board
Members, please visit our official corporate website.
https://www.yokowo.co.jp/english/company/csr/governance.html

37

Yokowo 2022 Integrated Report

Sustainability Promotion Framework
We are conscious of our corporate social responsibility. As such, Yokowo is constantly striving to improve ourcorporate value as well as establish a sustainability promotion framework, and we will expand our corporate activities
to both meet the expectations of all stakeholders and to earn their trust.

Establishment of Sustainability
Committee
In October 2022, we decided to establish a Sustainability
Committee to act as a body to comprehensively address thethree materialities identified by the Group — Environment,
Community, and Diversity and Inclusion.
This Sustainability Committee is tasked with formulating
policies aimed at achieving the goals of these materialities andissues with implementation, and with reporting and sharing
information regarding the status of Group initiatives towards
sustainability to the Board of Directors.

and suggestions from the Board of Directors to relatedorganizations → further improve initiatives” in 2 above, alongwith decisions made by the Board of Directors.

Themes handled by the Sustainability
Committee, and Outline
Theme

OutlineEnvironment

Deliberation, planning, and progress
management of measures towards achieving
the targets of the Group GHG emissions
reduction, water resource, waste recycling, andbiodiversity

Human Rights
Protections

Formulation of draft policies, deliberation, andprogress management for the protection ofhuman rights in the Groupʼs supply chain

Local Communities

Deliberation and progress management of2030 targets (numbers of projects contributing
to local communities, etc.), and support forreviewing of action plans

Diversity andInclusion

Deliberation and progress management of2030 targets (increasing ratio of female leaders,
number of TISP hires, etc.), and support forreviewing of action plans▼ Sustainability Committee Framework
Board of Directors
Reporting of ESG themes, etc.

Opinions anddecisions on reports

Sustainability Committee
Chairperson
President and Executive Ofﬁcer
Secretariat

Committee Members(Senior Managing Executive Ofﬁcer,
Managing Executive Ofﬁcer)

Observer

Information Security

Collaboration with the Information Security
Committee regarding information security
activities based upon ISO 27001

Occupational Healthand Safety

Collaboration with the Health and Safety
Promotion Committee regarding occupational
health and safety activities based upon ISO
45001

Treatment of
Employees

Issues related to reforms in the personnel
system (transition to a job-based personnel
system, improved treatment, etc.) and thewelfare system in general

Fair Trade

Issues related to status of compliance with laws,
regulations, and internal rules concerning fairtrade practices, and to the status of internal andexternal education in order to ensure thoroughcompliance

Risk Management

Collaboration with the Business Risk
Management Committee and each ISO Division
regarding progress and changes in measures tohandle each risk assessment item

Business Continuity
Planning (BCP)

Collaboration with each business division
regarding construction of BCP and its updates(Audit & Supervisory Board
Member, Outside Director)

Role of Sustainability Committee
1. To prepare and review draft sustainability policies andmateriality policies in light of factors such as the Group
Corporate Philosophy structure and business environment.
(Decisions are made by the Board of Directors)
2. To receive reports from relevant internal organizations onmateriality and ESG-related themes, and to report and assist inreporting to the Board of Directors.
3. To disseminate information accumulated from the cycleof “report to Board of Directors → disseminate opinions

Yokowo 2022 Integrated Report38

ESG ReportCompliance and Risk Management
In accordance with the CSR Code of Conduct, the Yokowo Group will comply with laws and regulations in good faithand engage in fair corporate activities on a daily basis, and will also fulfill the social responsibilities of a corporation
by responding appropriately to risks through our Risk Management System and efforts to continuously improve ourrisk management performance.

Approaches to Compliance
The Yokowo Group will contribute to the development of asustainable society by engaging in activities that impact on theeconomy, the environment, and society in a transparent andhighly ethical manner in order to earn the trust of stakeholders
with the constant aim of enhancing corporate value.

Initiatives to Improve ComplianceTo ensure compliance, the Yokowo Group works to firmly
establish the CSR Code of Conduct, which sets out the actions to
be taken by the Groupʼs officers and employees, and distributes
it as a leaflet in Japanese, English, or Chinese that can be carriedaround easily, to make all officers and employees familiar with its
content. Additionally, to further raise awareness of compliance,along with conducting e-learning programs for managers inJapan, China, Hong Kong, Vietnam, and Malaysia, we havealso equipped an internal reporting system at Yokowo and at
subsidiaries in Japan and overseas. We are also using an external
hotline to promptly detect and correct any violations of laws andregulations. Furthermore, under the CSR Code of Conduct, wehave established and started utilization of regulations compliant
with anti-bribery regulations in each country.
Furthermore, the Internal Audit Department audits businessprocesses in each department at Yokowo and at subsidiaries
in Japan and overseas, providing guidance on detecting andpreventing misconduct and improving processes.
In FY2021, there are no compliance violations.

Aware of the potential impact of risk on our business activities,
besides complying with relevant laws and regulations, theYokowo Group also strives to fulfill our social responsibility andput organizational operation on a stable footing by responding
appropriately to risk, through measures to continually
improve our risk management systems and risk management
performance.

39

Yokowo 2022 Integrated Report

The Yokowo Group has established and maintains the Risk
Management System (RMS), which conducts identification,
analysis, planning, implementation, evaluation, improvement,
and review for diversifying loss risks in order to ensure morestable and smoother business activities. Under the Risk
Management Rules, we have established risk management
policies and risk management guidelines, and we are striving tocontinually enhance the RMS.
We are also working to identify risks at an early stage,
share and analyze them and to formulate and implement
countermeasures, with the establishment of the Business Risk
Management Committee (see the Corporate Governance pageon p. 34).

▼ Schematic diagram showing the internal whistleblowing
systemContact points for reports andrequests for consultation

External consultation window

Responsible department within
the Company

Demonstrating concern for
the feelings of the reporting party

Clarifying the reporting
party’s intent

Collating the issues
Support for exploring solutions

Investigations and interviews

Consultation
with external
experts

Clarifying the reporting
party’s intent(1) Handling the matter outside the Company(2) Submitting a non-anonymous report to
the Company(3) Submitting an anonymous report to theCompany
Where the reporting
party does not wish
to have the matterhandled by theCompany

Selection of a strategy for resolving
the issue based on the reporting
party’s own insights

Where thereportingparty wishes
to have thematterhandled by theCompany

Examination to resolve the issue
and/or decision on disposition by
the Rewards and Penalties Committee

Resolving the issue

Approaches to Risk Management

Initiatives to Improve Risk
Management

Reoccurrence prevention
and follow-up

Information Security
In our current networked era, we are seeing increasing worldwide demand for strengthened information security.
The Yokowo Group constantly recognizes the importance of all the information assets and we promote information
security activities globally to meet these requirements.

Approaches to Information Security
The Yokowo Group aims to ensure that it always recognizes
the importance of all information assets handled thereby,
including information provided by its customers and business
partners, in order that the Group may continue to be a trusted
member of society. To this end, the Group has stipulated andimplemented its Information Security Policy in order to prevent
all improper disclosure, divulgence, and unauthorized use ofsuch information assets.

Information Security Policy (Overview)
1. Compliance
2. Framework
3. Management of Information Assets
4. Training
5. Preventing and Responding to Incidents

and is working together with the entire Group to advance its
information security activities.

Information Security Education
The Group considers the basis for information security to be foreach employee to have a high level of awareness with regard
to information management, and works to keep all officers andemployees (including temporary staff) well informed regarding
laws and regulations as well as corporate policy and rules, etc.
governing information security.
Furthermore, Yokowo implements various activities in order
to increase awareness of information management, such as
carrying out yearly e-learning sessions on information security,and issuing all employees with an Information Security Handbookthat details practices which should be followed during the courseof everyday duties.

Enacted: April 1, 2013

* The full text of the Information Security Policy can be viewed on the
Yokowo website.
https://www.yokowo.co.jp/english/company/csr/security.html▼ Information Security Management Framework
Chief Information Security Officer, as CISO

▼ ISO 27001 Certification Status
2014

YOKOWO CO., LTD., 3 Japanese subsidiaries

2016

Chinese subsidiaries (3 locations)

2017

Malaysia subsidiary

2021

German subsidiary2021

Vietnamese subsidiary

Chairman, Information Security Committee

Information Security Officer
Secretary General, Information Security Committee

Information Security Manager

Information Security Committee Office

General Managers, Chief Officers,
Managing Directors

Assigned by CISO

Information Security Administrator

Yokowo CSIRT

Assigned by General Managers, Chief Officers,
Managing Directors

Assigned by CSIO

By Business Div., Headquarters, Department, Section

Assigned by all companies

Enhancement of Information Security
Under the Groupʼs Information Security Policy, Yokowo
recognizes the management of information security as oneof the most important issues in business management. In
order to manage the information assets appropriately, it hasconstructed an information security management system (ISMS),

Protection of Confidential Information
Under its Information Security Policy, the Group has establishedconfidentiality rules for the protection of confidential information,and disseminated these to the Group and all suppliers, etc. engaged
in Yokowoʼs business. Through compliance with these rules,
Yokowo handles and protects, both strictly and appropriately, allinformation assets possessed by Yokowo, and information disclosed
to it by its customers. In addition, it is our social responsibility topromote cyber security measures not only within our group but
throughout the supply chain as a whole, and as such we areworking to confirm and enhance the status of security measuresat our suppliers and sub-suppliers. As of April 2022, Yokowo has
decided to prohibit the use of password-protected compressed
files. In FY2021, there were no specific complaints regarding either
violations of customer privacy, or losses of customer data.

Yokowo 2022 Integrated Report40

ESG Report

Environment
The Yokowo Group recognizes that conducting business activities in harmony with the global environment isan essential responsibility for a corporation. The Yokowo Group continues to implement a range of Group-wide
environmental preservation activities and address climate change based upon defined environmental policies in orderthat we can pass on our irreplaceable global environment to future generations.

Approaches to the Environment

Environmental Policy

Action Guidelines

Today, when Japan and the rest of the world
are starting to make a serious effort torealize carbon neutrality by 2050, Yokowo
is also responding to the demands of our
stakeholders and society by formulating
more concrete measures to address climatechange, and working actively to implement
them. Reflecting this stance, we support therecommendations of the FSB Task Force on
Climate-related Financial Disclosures (TCFD),
and we are implementing specific initiatives
to achieve the target of reducing greenhousegas emissions from our plants (Scope 1 and 2)
by 35% by FY2030, compared to FY2014, andpromote specific climate-related information
disclosure.
Yokowo is also committed to helping
to create a rich natural environment. We
seek to do this through our environmental
management system and through activities
designed to achieve continuous improvements
in environmental performance. As part of ourcommitment, we take into consideration theenvironmental impact of our business activities
and comply with all relevant environmental
laws, regulations, and guidelines, as well aswith each customerʼs specific guidelines.

1. Yokowo supports the TCFD recommendations, and besides formulating
and implementing concrete measures to achieve the target of reducing
greenhouse gas emissions at our plants (Scope 1 and 2) by 35% by
FY2030, compared to FY2014, we will also be disclosing details of
the measures taken, through the Carbon Disclosure Project (CDP)
framework.
2. Yokowo will continuously and actively promote energy saving, resource
conservation, and recycling to contribute to the protection of the
global environment.
3. In respect of chemical substances which are harmful to both theenvironment and human body, Yokowo will prevent environmental
pollution by implementing preventive measures and action plan, which
include those for the case of abnormal and emergency operation, andwill minimize the use of hazardous chemical substances.
4. Yokowo will comply with all relevant environmental laws, regulations,and each customerʼs specific requirements, and intend to enhance ourenvironmental management by our original internal standards.
5. Yokowo will set objectives and goals for our environmental activities
and also improve our environmental management system continuously
by periodically reviewing the objectives and goals.
6. Through in-house education and publicity, Yokowo will promote all theemployeesʼ recognition of involvement in environmental preservation
and will make these activities take root as daily duties.
7. Yokowo ensures that all the employees including those of affiliatedcompanies are fully aware of the environmental policies, and will
disclose them to the public on request.
8. Yokowo will contribute to the development of a sustainable society byconsidering the impact on biodiversity in all its business activities.
Enacted: June 1, 2005 Revised: October 15, 2021

Environmental Management Systems

Issues and Results of Activities

ISO 14001 Certification

The Yokowo Group identified four issues that need effort—
addressing climate change, management of water resources,
resource recycling, and zero hazardous chemical substances usage.
For these issues, Yokowo sets annual goals and activities to beachieved. At a meeting of the Board of Directors held in October
2021, it was decided that Yokowo would express its support for
the recommendations of the TCFD, and revisions were made to theCompanyʼs Environmental Policy and Action Guidelines.
In July 2022, the status of these efforts was disclosed through
CDP.

Since its individual production bases received ISO 14001
certification starting in 1998, the Yokowo Group has continued
to work in environmental activities. In FY2021, indicated by an
external audit, the Group has taken appropriate measures suchas upgrading to septic tanks with higher performance.
* Please see our website for more details on the status of ISO14001
Certification Acquisitions.
https://www.yokowo.co.jp/english/company/csr/environment.html

41

Yokowo 2022 Integrated ReportAddressing Climate ChangeWith the aim of reducing direct greenhouse gas emissions(Scope 1 and 2), Yokowo is drawing up plans for the adoptionof renewable energy at our plants in Japan (in Tomioka City,
Gunma Prefecture), China, Vietnam, and Malaysia, which are ourCompanyʼs main sources of greenhouse gas emissions. In October
2022, we installed a photovoltaic power generation system at ourVietnam Plant using a bilateral credit system.
Regarding the reduction of Scope 3 greenhouse gas emissions,as most of the employees at the Tomioka Plant currently commute
to work by car, we are implementing a plan to persuade a local
railway company to establish a station near the plant, so that
employees will be able to commute to work by train, and weare also planning to establish charging points for electric vehicles
at the plant. Through the implementation of these concrete
strategies, we are aiming, initially, to secure a “B” evaluationfrom the CDP. We will be steadily disclosing details of theimplementation status of these concrete measures through the
CDP platform, and also on our Company website.
As of 2020, the Yokowo Group had implemented a variety ofactivities directed towards meeting the goal of a year-on-year 1%
reduction in the greenhouse gas (GHG) emission factor.
We are currently still in the process of collecting data regarding
greenhouse gas emissions in 2014—the base year for determining
greenhouse gas emissions reduction—and will disclose thisinformation once the calculations have been completed.

galvanization processes, and have achieved zero emissions into
public waterways.
▼ Water usage and usage rates
Water usage (m3)

Usage rate (water usage / sales)

350,000
6.389

337,500

335,868

344,6328

331,726

312,500
300,000

4

283,178

287,500
275,000
250,0002017■ Water usage

2018

2019
Usage rate

2020

1,400

20,0000.334

21,104

20,156
20,361

20,22220,007

0.316

0.3
0.2

18,000

1,200

1,052

1,150

Recycling rate (%)*2
87.1
85.2
90

1,249
1,056

1,111

1,000

0.1

14,000

0.0

56.4

600

2017
2018
2019
2020
Emission factor■ CO2 emissions

2021
(FY)

*1 Electricity CO2 conversion factor is calculated using the following:
Domestic: TEPCO Energy Partner, Inc Basic Emission Factor
Overseas: IEA Official Factor

70
50

59.4

53.8

40
30
20

200
0

80
60

800

400
16,00002021

The Yokowo Groupʼs main products are electronic components,
and the main types of waste that we generate are metal andplastic waste, and waste cutting oil, that are generated during the
production processes. With regard to these main types of waste,
we are working to conserve resources. As well as promoting a
reduction in the quantities of waste generated by our businessactivities, we have also set a recycling rate of at least 80% as atarget. The inclusion of Yokowo Vietnam in the data aggregationfrom FY2020 onwards has led to a substantial increase in therecycling rate.

0.5
0.4

1

Resource Recycling

Waste (t)

0.334

2

(FY)

Emission factor (CO2 emissions/sales)

22,0003

260,179

262,500

CO2 emissions (t)*1

0.372

5

3.892

▼ Quantity of waste and recycling rate

0.388

6

4.722

6.134

▼ CO2 emissions and emission factor
24,0007

5.687

325,000

102017■ Waste2018
2019
Recycling rate

2020

2021

0

(FY)

*2 The recycling rate is the share of waste handed over to recycling firms.
We are experimenting with the use of recycled plastic in plastic molding
processes. We are also working on the development of original recycling
technology for cutting oil, in collaboration with a local vocational college.

Management of Water Resources
Of the water used within the Yokowo Group, the majority is fordomestic-type uses; because of the characteristics of our products,
hardly any water is used in the production processes. We areworking to achieve our goal of a year-on-year 1% reduction inwater consumption, measured by per unit of sales.
Additionally, we are monitoring the quality of plant
wastewater using our internal standards, which are more rigorous
than legal requirements. At the Tomioka plant, we are recovering
all hazardous chemical substances in discharge from our

TopicsIn July 2022, we received third-party certification (scope
1 and 2) for greenhouse gas emissions. In the future, wewill expand the scope of monitoring of our greenhousegas emissions, and ensure this information is disclosed tothe public.

Yokowo 2022 Integrated Report

42

ESG Report

Employees
The Yokowo Group aims to promote and advance diversity and inclusion among our employees and strives to create arewarding and attractive workplace environment with the aim to “Be a company where employees feel comfortablebeing employed, and which ensures that employeesʼ families are happy for them to work there.”

Basic Data on Employees▼ Number of Employees
Yokowo total

Asia

8,499

1,322

79

7,098

Vehicle Communication Equipment

6484

253

51

6180

Circuit Testing Connectors

816

322

15

479

Personal Communication Equipment—Fine Connectors

446

77

11

358

Personal Communication Equipment—Medical Devices

273

272

1

0

Other employees

480

398

1

81

Total employees (persons)

Breakdownbybusiness segment

Europe andthe U.S.

Japan

Composition of Employees
The main production bases in each segment are China andVietnam for the Vehicle Communication Equipment segment,
Malaysia and Japan for the Circuit Testing Connectors segment,
Malaysia and China for the Fine Connector business in the
Personal Communication Equipment segment, and Japan for
the Medical Device business in the Personal Communication
Equipment segment. Our production bases are concentrated
in Asia. In particular, there are a large number of employees in
China and Vietnam, which are production bases for the Vehicle
Communication Equipment segment.

▼ Recruitment and Turnover
YOKOWO CO., LTD.

88

New recruitment
Male

Total

74

Female

Total

14
20

Number of job leavers
Male

Total

20

FemaleTotal

0Work-Life Balance
Percentage of annual paid leave taken

Use of nursing care leave

We promote the use of annual paid leave aiming for an annual
paid leave utilization rate* of 70%, which is the target for
FY2020. In FY2020, the annual paid leave utilization rate was
65.2%.

Yokowo has established a nursing care leave system to support
employees in balancing work with nursing care. In FY2020, twoemployees took nursing care leave.

* Number of annual paid leave days taken ÷ number of annual paid leavedays newly granted each fiscal year

Other work-life balance measures

Use of childcare leave
Yokowo has established a childcare leave system to support
employees in balancing work with childcare. In FY2020, four
female employees took childcare leave.

43

Yokowo 2022 Integrated Report■ Hourly paid leave■ Special COVID-19 vaccination leaveHolding Roundtable Meetings to Further
Improve the Workplace Environment

Performance Evaluation

Yokowo is holding roundtable meetings to clarify issues in ourorganizational culture and systems, to build and strengthen
specific improvement measures and systems, and to share themamong employees in order to realize a rewarding and attractive
workplace environment. The roundtable meetings are held with
employees divided according to eight attributes to stimulate
discussion within each attribute and ensure the identification ofareas for improvement in the current situation at Yokowo. We
intend to use the identified areas when we revise the personnel
system and other systems in the future.
In FY2021, a list of employee opinions was made available
throughout Yokowo, and necessary improvements are being
made as needed. Looking forward, Yokowo will continue tohold round tables to take on board multiple opinions, aiming tobetter create a "good company."

Human Resources Development▼ Roundtable Meeting Attributes
1

Female62

Non-Japanese

7

3
4
5

Young employees in their first
three years at the Company
Mid-career employees intheir 30s
Employees raising children

89

At the beginning of each fiscal year, every employee preparesa job description in consultation with their superiors which
includes their duties and goals, and carries out their duties.
Superiors evaluate employee performance every six months andhold interviews to provide feedback on the results to employees.

Specialists (employees withspecific qualifications)
Production line employees andsupervisors
Veteran employees aged 55 andolder

We have established an “integrated human resource
development system starting with new employees” in order tocultivate “globally-minded human resources” who will support
the full-scale globalization of our business and to actively
promote the strengthening of management at all levels. In
addition to training that is common to all employees, we provide
diverse position-specific and specialty training to encourage
employee growth.
In the future, Yokowo will create a “new training system” tobetter support employeesʼ independence in their skill and careerdevelopment, and aim to become a company that can provide
more specialized training opportunities to employees.

Roundtable suggestion box*

* We have set the “Roundtable suggestion box” on the Company intranet
as an opportunity to enable employees with opinions to speak out freely.
The opinions we collect will be used to initiate new roundtable meetings
depending on the content.

▼ Conceptual Diagram of Training System
Position-specific training

Manager

New manager training

Non-management
position

Assistant Manager

Mid-career employee (leader) training

MemberYoung employee training

Induction

Self-education

Next-generation leader
selective training

Sales
department
training

Technology
department
training

Production
department
training

Administration
department
training

Tentative assignment/basic training

Self-education
Online education (position-specific) andlanguage training

New deputy general manager training

Training on current affairs

New general manager training

Deputy General
Manager

Common training
Global adaptation training(cross-cultural adaptation, etc.)

Management
position

General manager

Specialty training

Online education (support for occupational training and acquisition of qualifications)

Yokowo 2022 Integrated Report

44

ESG Report

Diversity
Through the promotion of diversity and inclusion, the Yokowo Group is promoting the recruitment and developmentof human resources without regard to nationality, gender, or age, with the aim of becoming Team Yokowo, a“sustainably evolving company.”

Approaches to Diversity
The Yokowo Group hires and trains diverse human resources,
irrespective of nationality, gender, or age, and strives to create
an employee-friendly workplace where there is respect forindividuality and fair and equitable treatment to enable each andevery employee to achieve their full potential.

our organizational culture are hindering active participation
by women, and how to make improvements. Results of thisgathering of information showed that tasks such as greeting
visitors have traditionally remained the role of female employees,
and so we are reviewing the nature of this work and considering
remedial measures, and also working to bring about a genderneutral work style and culture.
▼ Percentage of female employees★
(persons)

906

1,000

Concrete Measures Relating toDiversity
The Yokowo Group treats “diversity and inclusion” as one of ourmanagement strategies. We are striving to become a company
where employees with the diverse values of global Yokowo areable to come together and work together on a global basis toachieve their full potential. In terms of diversity, we are steadily
promoting measures based on the TISP Project to expand thefield of activities of non-Japanese employees. However, there arestill many issues to be addressed in increasing the ratio of female
leaders and the ratio of employees with disabilities.
In 2021, the revised Child Care and Family Care Leave Act
was enacted, requiring companies to encourage male employees
to take childcare leave. However, it is necessary clarify the issues
involved for this measure to become established at Yokowo.
In order to clarify these issues in our organizational culture andsystems, and to share the direction for improvement and reform,
Yokowo is holding “roundtable meetings” (see the Employees
page on p. 44) where the employees concerned can frankly
exchange opinions and reflect them in changes to the humanresources system and in management.

Promoting Active Participation by Women
Due to the fact that Yokowo is a manufacturing company, thenumber of permanent female employees hired is small, andthe ratio of female leaders is currently lower than that of male
employees due to the small pool of female employees. However,our goal is to increase the ratio of female leaders to at least thesame as that of male leaders. To achieve this goals, we havestarted to appoint women as outside directors and promoting
them to management positions. At the same time, Yokowo
has held a roundtable meeting on womenʼs active participation(with female employees) as a place to discuss what aspects of45

Yokowo 2022 Integrated Report

800

769

600

839

817

15.1

（％）

960

16
12

11.3

11.1

10.7

10.5

8

400
200
0

2017

3.1

2.6

1.3
2018

2019

Number of YOKOWO CO., LTD. employees

3.1

2020

2.2

2021

4
0

(FY)
Percentage of female managers*1

Percentage of permanent female employees*2*1 Female managers at end of fiscal year ÷ executive and management positions
at end of fiscal year (includes assistant managers, excludes specialists)*2 Number of female employees at end of fiscal year ÷ number of full-timepermanent employees at end of fiscal year★: YOKOWO CO., LTD.

Employment of People with Disabilities
Yokowo is a manufacturing company focusing on microprecision processing. As such, we have not made progresson hiring people with disabilities, and we have not met thelegally mandated employment rate. Nevertheless, from theperspective of the SDGs, we have set a goal to at least double
the employment rate of people with disabilities compared to
the legally mandated rate. In order to achieve this goal, we
determined the need to develop both tangible and intangible
company-wide infrastructure and development of jobs thatwould enable people with disabilities to play active roles, andset up the “Project Team for Establishing a Special Subsidiary.”
The immediate goal is to establish a special subsidiary in FY2022
and build a system that will stably meet the legally mandated
employment rate for people with disabilities.

Promoting Active Participation by Senior Human
Resources▼ Changes in new graduate hires and mid-career hires★

In addition to the existing system of re-employment (reemployment after transfer to an affiliated company), we
established a new system to extend employment after retirement
at the age of 60 as permanent employees at our Head Officein 2020 in order to promote the active participation by seniorhuman resources. This is subject to approval by the Personnel
Committee if the Company deems it necessary and the employee
agrees to do so for the purpose of transferring technology toyounger employees or utilizing proprietary technology andknow-how.
This system also allows those who are 65 years old or older tocontinue to playing an active role under an outsourcing contract
or consultant contract if the Company deems it necessary andagrees with the individual.
Furthermore, we hold roundtable meetings for senior humanresources to further improve the system while incorporating theopinions of the people concerned.

(Person)▼ Number of older employees re-employed★
(persons)

40

34
30

30

19

20
10
0

22

11

2017

2018

2019

2020

2021

（FY）

★: YOKOWO CO., LTD.

Strengthened Mid-career Hiring
The Yokowo Group corporate vision incorporates the message
that “as Team Yokowo, by creating new products thatincorporate cutting-edge advancements based upon the Groupʼs
proprietary technology, we want to be a company that while
evolving, achieves persistent growth.”
The Yokowo Group in principle enhances our workforce
by hiring new graduates, however recent years have seen an
increase in the ratio of mid-career hires supported by strong
business performance. We are bringing together all employees
who sympathize with this message, regardless of new graduate
or mid-career hires, irrespective of gender, age, or nationality.

60

60
50

49

45

40

20

30

29

30

18

20

18

2018

2019

28

22

10
0

2017

New graduate hires

2020

Mid-career hires

2021

（FY）

★: YOKOWO CO., LTD.

TISP ProjectAt the Yokowo Group, we are promoting the “TISP (Tomioka
International Specialist Park) Project” as a central part of ourdiversity and inclusion initiatives.
This project brings together specialists from around theworld (in product design, production engineering, elemental
technologies, quality assurance, production control, etc.)
to our main plant—the Tomioka plant (Gunma Prefecture).
Hiring criteria place no particular requirements as regards
Japanese conversational ability, and have a focus on expertisefor midcareer hires, and potential for new graduates. Looking
forward, we aim to bring together 120 foreign specialists
centered around the Tomioka plant.
With this project, we are actively recruiting foreign employees
living in Japan, and those living overseas. In particular at our
main production bases in China, Vietnam, and Malaysia, we havein place a multi-year training program in Japan for new graduate
hires who have graduated from local universities in thosecountries. For these trainees, we create an individualized CDP(Career Development Plan) with which we provide systematic
human resource training, and many of the trainees who havecompleted their training in Japan return to work in their own
countries.
▼ Changes in TISP human resources★
(Person)

66

70
60

61

61

54

50
40
30

31

20
10
0

2017

2018

2019

2020

2021

（FY）

★: YOKOWO CO., LTD.

Yokowo 2022 Integrated Report46

ESG Report

Occupational Health & Safety: OH & S
The Yokowo Group positions the management of health and safety of its employees as well as stakeholders in theGroupʼs activities as the top priority issue for its management, and will pursue a workplace where they are able to workwithout undue concern by always securing their safety, and that will strive to promote their mental and physical health.

Approaches to Occupational Healthand Safety
The Yokowo Group positions proper management of the safety,
peace of mind, and health of employees and other stakeholders
as a number one priority. In order to safeguard every individual
employee—each of whom is vital to the Groupʼs business
continuity and growth—we have formulated the Occupational
Health and Safety Policy, and we promote occupational healthand safety activities on the basis of this policy.
* Please see our website for more details on the Occupational Health and
Safety Policy of the Yokowo Group.
https://www.yokowo.co.jp/english/company/csr/safety.html

Occupational Health and Safety Framework
Yokowoʼs Health and Safety Promotion Committee meets on amonthly basis. The Committee is headed by senior management
and consisting of the OH&S managers and promoters of eachdepartment, who play a central role in practical health and safety
activities. The Committee strives to realize continued improvementof OH&S activities by sharing the progress made in individual
departmentsʼ OH&S action plans, the results of monthly OH&S
inspections, and details of occupational accidents and the remedial
measures taken. In addition, the Committee holds monthly meetings
to provide a venue for talks between its members, both from laborand management, with the participation of occupational physicians,
etc., as required by law. The Risk Assessment Committee evaluates
remedial measures when responding to unexpected occupational
accidents. It discusses and confirms whether the measures proposedby the department where the accident occurred are effective froman objective viewpoint, and whether there are any oversights inpreventing reoccurrence. In April 2021, the Occupational Health &Safety Section was established within the General Affairs Department(in April 2022, Environmental issues were added, and this was thus
reorganized to the Occupational Health, Safety, and Environment
Section). This new department aims to further expand measures that
contribute towards OH&S, with a particular focus on promoting theactivities of the various committees.
▼ Occupational Health and Safety Management Framework
Chief Occupational Health and Safety Management Officer
President & Executive Officer / General Manager, Tomioka Plant▼ Occurrence of Occupational Accidents Over the Past Three Years
FY2019FY2020

FY2021

Accidents withlost work days

0

2

3

Accidents without
lost work days

1

4

6

Total accidents

1

6

9

To Realize a Continued Improvementof Occupational Health and Safety
Yokowo has constructed an occupational health and safety
management system (OHSMS), and is working to advanceits OH&S efforts as the entire Group under the OH&S Policy.
YOKOWO CO., LTD., including the following subsidiaries, has
acquired “ISO 45001” certification, the international standard
for occupational health and safety management systems.
▼ ISO 45001 Certification Status

2020

YOKOWO CO., LTD., domestic subsidiaries(3 companies)
Chinese subsidiaries (2 locations)* OHSAS 18001 certification was obtained in 2016 in Japan and in 2017 in
China, however this was transferred to ISO 45001 certification in August
2020.

The Key Pillars of the Promotion of
Occupational Health and Safety Activities
The Yokowo Group has designated safety, health and workstyle as the three key pillars of the annual plan for promotionof occupational health and safety. Based on these three key
pillars, each department carries out occupational health andsafety activities systematically after setting its own targets andperforming risk assessment.
Ideal Form

An energetic
workplace
Work
style

Healthy mind
and body
A healthy
Health workplace

SafetyGeneral Managers, Health and Safety Management /Senior Health and Safety Management Officer
Occupational Health, Safety,
and Environment Section

Health and Safety Committee
Health and Safety
Promotion Committee

A safe and secure workplace
Eliminate unsafe conditions
Eliminate unsafe behaviors

Risk Assessment
Committee

Follow rules / Self-management / Compliance
Head Office, Tomioka Plant,
Domestic Offices

47

Domestic Subsidiaries

Yokowo 2022 Integrated Report

Cooperative Company
in Tomioka Plant

Procurement
The Yokowo Group strives to engage in fair and equitable transactions with suppliers, and we are focused onbuilding equal partner relationships. We are working to transform our system away from a passive procurement
function towards more dynamic procurement.

Approach to Procurement

Measures Relating to Procurement

Besides striving to ensure fair and equitable transactions
with our suppliers, the Yokowo Group also aims to realize a
procurement function to purchase high-quality, reasonablypriced items from all over the world at the right time and in
the right quantities, while promoting proactive procurement
activities that contribute towards the Companyʼs profitability.
We not only comply with all relevant laws and regulations, suchas the Act against Delay in Payment of Subcontract Proceeds,
Etc. to Subcontractors, but also strive to fulfill our social
responsibility within the supply chain in order to build multilayered production bases and a reliable supply network when
undertaking day-to-day purchasing activities.

Compliance with the Act against Delay inPayment of Subcontract Proceeds, Etc. to
Subcontractors (Subcontract Act)

Policies
Yokowoʼs Purchasing H.Q. conducts its operationsin accordance with the following basic policies:
Cost Reduction, BCP Strategies, and Strengthening
Procurement Capability.
Date of formulation: April 1, 2020

Details of the basic policies

Cost Reduction■ Striving to reduce costs■ Ensuring that costs are set early■ Thorough implementation of theprinciple of Sangenshugi—theThree Actuals (the actual place,the actual part, and the actual
situation)

BCP Strategies■ Stable procurement■ Supplier quality enhancement■ Fair and equitable selection of
suppliers

Strengthening
Procurement
Capability■ Training and developing humanresources■ Compliance with relevant laws,
ordinances, and specifications■ Consideration for the environment
and for society■ Having employees attend external seminars■ Implementation of internal education■ Responding to Japan Fair Trade Commission (JFTC)
questionnaire surveys■ Checks performed in day-to-day operations (with rigorous
verification of negotiations, unit price setting, acceptanceinspection, and payment)

Elimination of child labor, use of prohibitedchemical substances, and use of conflict minerals■ The requirement to eliminate child labor, use of prohibitedchemical substances, and use of conflict minerals is clearlystipulated in the Code of Conduct for Business Transactions(and Agreement), which was compiled as an annex when
Yokowo revised its master agreements pursuant to therevision of Japanʼs Civil Code.
■ Surveys of the substances contained in mass-produced
products are being implemented at all Yokowo Group plants■ When launching production of a new model, suppliers are
required to provide data on the substances contained at thetime of the first sample inspection■ The prohibition on conflict minerals applies to materials thathave cobalt, cassiterite, tungsten or gold as a raw material

Implementing Green Procurement
The Yokowo Group holds presentations for our suppliers on
chemical substances contained in products, and we implement
environmental assessment that includes constituent analysisof the items that suppliers deliver. In addition, the masteragreement that we sign with suppliers includes provisions
relating to not using harmful chemical substances, ourprocurement activities prioritize purchasing items that havea smaller environmental footprint, and product verification is
performed in collaboration with our Quality Assurance H.Q.

Yokowo 2022 Integrated Report48

ESG Report

Local Communities
Operating in a range of locales both within Japan and overseas, the Yokowo Group values our relationships withlocal communities, and is promoting multifaceted social action programs. As a company rooted in local communities,
we will contribute to their development, and towards achieving a sustainable society.

On Contributing to Local Communities
As a member of local communities, the Yokowo Group is
promoting a range of social action programs. Our aim is todevelop alongside local communities, through activities that
support their development, and initiatives that contribute tosolving societal issues.
▼ Three Areas of Activities
Activities groundedin the community

Activities towards
achievinga sustainable society

Policy for Community Social Contribution
Activities
We will listen to the voices of local residents, andimplement genuine initiatives and contribute to thehappiness of the community and society regarding
diverse issues so that we can be recognized as apartner.

Yokowo 2022 Integrated Report

Sports Classes (Tomioka Plant)
In September 2022, Yokowo held a baseball event for the children of local residents and employees at the Yokowo Silk Stadium Tomioka, a civic baseball field in Tomioka City with which wehave a naming rights agreement.
Yokowo is working together with local government on activities to increase the number of people playing sport, and tointeract with the local community through sport such as Tee-ball,which is enjoyed by beginners up to early elementary school age.

Activities that
contribute tocommunity development

Also, in order that we can make steady contributions to dialogue
and development with local communities, In April 2022,
the Social Activity Promotion Section was established within
the General Affairs Department. At the same time we haveformulated a policy for community social contribution activities,
and have started by promoting activities in cooperation withmunicipal governments, mainly in Tomioka City and Gunma
Prefecture.

49

Community-based Activities

YUKA Volunteer Team(DONGGUAN YOKOWO CAR COMPONENTS
CO., LTD. [China])
In 2016, DONGGUAN YOKOWO CAR COMPONENTS CO., LTD.
formed the YUKA Volunteer Team, which promotes activities tosupport the elderly and people with disabilities in the community.
These activities include holding volunteer events, environmental
conservation activities, and PCR testing for COVID-19, and thesesee many employees volunteering to participate.

155

Employees who have participatedin volunteer activities (2016 to present)      Participation in blood donation event(DONGGUAN YOKOWO CAR COMPONENTS
CO., LTD. [China])
Yokowo participated in a blood donation event at DONGGUAN YOKOWO CAR COMPONENTS CO., LTD., at the request of
Dongguan City. A blood collection bus came to the plant, where
133 employees donated.

Support for an Orphanage(YOKOWO VIETNAM CO., LTD.)
In January and June 2022, in collaboration with other like-minded Japanese companies located in the same industrial park,
YOKOWO VIETNAM provided a local orphanage with material
support such as clothing, food, and beverages, including milk.

Activities towards Achieving a
Sustainable Society
Volunteer tree planting activities (YOKOWO
MANUFACTURING OF THE PHILIPPINES, INC.)
Having begun operations in May 2022, YOKOWO
MANUFACTURING OF THE PHILIPPINES, INC, volunteered toplant 500 saplings in cooperation with local industrial parks andauthorities, aimed at protecting and preserving the environment.

Activities that Contribute toCommunity Development
Naming Rights Partnership Activities(Tomioka Plant)
Wishing to contribute to the development of Tomioka City,
Yokowoʼs hometown, the Tomioka Plant participated in the
open bidding for the naming rights for three local sports facilities
and was chosen as a partner enterprise by Tomioka City. As of
August 2022, the facilities have used new sobriquets with theaddition of "silk" — this is representative of Tomioka's uniquenature. Tomioka Plant will encourage its employees and theirfamily members to use these facilities, which will improve theirhealth and foster the building of closer connections throughsports, while at the same time this will also support the joint
development of both the local community and Yokowo.
The naming rights agreement
covers the three-year period
between February 2021 andMarch 2024.

Total cost of naming rights:

4.5

million yen

Vocational Training Activities with Universities(YOKOWO VIETNAM))
YOKOWO VIETNAM works in tandem with local universities to
accept new students and graduates for internships and plant
tours. The Company also engages in activities to deepen exchanges with local communities as well as to contribute to local
development. These include support activities to familiarize students with Japanese language and culture.

Yokowo 2022 Integrated Report50Appendix

Financial Highlight▼ Net sales▼ Operating income
Sales growth rate (％）

Net sales (million yen)
70,00066,84817.8

60,00054,75250,00060,59515.0
10.0

30,0005.0
5.5

10,0002017■ Net sales

-1.0

2018
2019
Sales growth rate

2020

2021

4,916

0

5,179
8.6

8.1

4,000

3,135

3,000

12.0

4,684
7.0

3,028
6.0

10.0

0

4.0
2.0

2017
2018
■ Operating income

2019
2020
2021
Operating income margin (FY)▼ Profit attributable to owners of parent(million yen）

(million yen）

6,529

7,000
6,000

5,320

4,000

2,911

5,000

4,663

4,000

4,583

5,000

3,000

3,286

3,818

3,440
2,337

2,209

2017

2018

2,000

2,000
1,000

1,000
0

2017

2018

2019

2020

2021

0

(FY)

▼ Basic earnings per share▼ Net assets per share

(yen)

(yen)

250

2,000

200

169.85150

115.82184.55202.28

1,200

50

400

2017

2020

1,899.19

1,150.65

1,209.36

1,306.58

2018

2019

2020

2021

0

（FY）

2017

2018

2019

▼ Research and development expenses(million yen)(million yen)

12,0004,000

10,435

10,000

6,000

(FY)

1,640.21▼ Interest bearing debt*

3,260

9,155
7,773

7,589

8,000

2021

109.18
800

0

2019

1,600

100

3,000

2020

3,592
3,201

2021
(FY)

3,405

2,636

2,000

4,561

4,000

1,000

2,000
0

2017

2018

* Borrowing + lease liabilities

51

Yokowo 2022 Integrated Report

2019

2020

2021

（FY）

0

8.0
6.0

5.5

1,000

(FY)

▼ Ordinary income (full year)

3,000

Operating income margin (％)

6,000

2,000

20,0000Operating income (million yen）

5,000
11.5

10.7

51,91940,00059,976

20.0

2017

2018

2019

2020

2021

（FY）

0.0

Non-financial Highlight▼ Percentage of female employees★

▼ Employee turnover rate★

(persons)

906

1,000

11.3

600

15.1

839

817

769

800

11.1

（％）

960

10.7

10.5

5.0

12

4.0

8

400
200

2.6

1.3

0

2017

3.1

2018

3.8

3.4

3.6

3.2

3.0

2.0
2.0

3.1

2019

(％)

16

2.2

2020

2021

4
1.0
0

0.0

2017

(FY)

2018

2019

2020

2021

67.2

65.2

63.6

65.2

2018

2019

2020

2021

(FY)

Number of YOKOWO CO., LTD. employees
Percentage of female managers*1
Percentage of permanent female employees*2*1 Female managers at end of fiscal year ÷ executive and management positions at
end of fiscal year (includes assistant managers, excludes specialists)*2 Number of female employees at end of fiscal year ÷ number of full-time permanent
employees at end of fiscal year

▼ Employment rate of people with disabilities★

▼ Uptake of paid leave★

(%)

(%)

2.0

1.35

1.65

1.51

1.58

80

1.51

59.3

60

1.0

40
20

0.0

2017

2018

2019

2020

0

2021

2017

(FY)

▼ Number of older employees re-employed★

▼ CO2 emissions and emission factor(persons)

CO2 emissions (t)40

22,00022

19

20,000

11
10
0

2017

2018

2019

2020

0.5
0.388

30

20

Emission factor (CO2 emissions/sales)

24,000

34

30

(FY)

0.334

0.334

20,22220,007

21,104

20,156
20,361

0.316

0.4
0.3

18,0000.2

16,0000.1

14,000

2021

0.372

(FY)

2017
2018
■ CO2 emissions

2019
2020
Emission factor

0.0

2021*
(FY)

* Electricity CO2 conversion factor is calculated using the following:
Domestic: TEPCO Energy Partner, Inc Basic Emission Factor
Overseas: IEA Official Factor▼ Water usage and usage rates▼ Quantity of waste and recycling rate

Water usage (m )3350,000
337,500
325,000
312,500

6.389

335,868

Usage rate (water usage/sales)

Waste (t)

8

1,400

7

1,200

6

1,000

344,6325.687

331,726

6.134

4.722
3.892

4

300,000

283,178

287,500
275,000

3

260,179

262,500
250,000

52017■ Water usage

2018

2019
Usage rate

2020

2021
(FY)

2

Recycling rate (%)

1,052

1,150

87.1

1,249
1,056

85.2

1,111

56.4

600

0

0

70
50

59.4

53.8

40
30

400
200

80
60

800

1

90

20
10
2017
■ Waste2018
2019
Recycling rate

2020

2021

0

(FY)

★: YOKOWO CO., LTD.
Yokowo 2022 Integrated Report52

Appendix

Financial Information
Analysis of Operating Results and Financial Position in Fiscal 2021

Business Environment and Operating Results▼ Minimum 8

During the consolidated fiscal year under review (April 1, 2021 to（%）

March 31, 2022), the global economy continued to be impacted by

20

17.8

the spread of the global COVID-19 pandemic as with the previous
year, but restrictions on economic activities were relaxed along withthe advancements in vaccination. In Japan also, there was a sluggish
recovery in personal consumption, but we saw signs of a pickup
together with improvements in the global economy.
The Groupʼs main markets — automotive, semiconductor testing,mobile communication terminals, and advanced medical equipment
markets — have become more competitive in product and technology

13.5

15

10.6
10

9.3

8.1

5

6.0

5.5

2017

2018

12.2

11.6

10.7

11.5
8.6

7.0

-1.0
0

development with the widespread adoption of advanced applications

Sales growth rate

2019

2020

Operating income margin

2021
(FY)

ROE

including 5G that will likely dramatically change industry structure
and business.
In these circumstances, the Group continued working to advancethe four forms of innovation (innovation in products, processes,
personnel, and management) specified in the Basic Management

Financial Position

Policy to achieve high-quality and full-scale growth.

(Assets)

In the Vehicle Communication Equipment segment, in the midst of

Current assets stood at ¥44,540 million at the end of the consolidated

constrained supply chains due to global shortages in semiconductors

fiscal year under review (a gain of ¥6,123 million in the end of theand materials coupled with disrupted logistics, the Group has worked

previous fiscal year). This was due primarily to increases of ¥2,031

to significantly strengthen systems in order to fulfill our responsibility

million in notes and accounts receivable-trade, and ¥5,368 million

to supply customers with products.

in inventories. The increase in notes and accounts receivable-trade

In the Circuit Testing Connector segment as well, the Groupis mainly attributable to a surge of orders resulting in higher sales instrengthened technology and manufacturing systems in order tothe Circuit Testing Connector segment. Meanwhile, the sharp risegrasp business growth opportunities arising from 5G and boosted

in inventories reflects an increase in inventories in transit caused bycapacity by expanding new production lines in Japan and Malaysia toextension of ocean freight and air freight lead times on a global scale

respond to a sudden increase in orders. As well as strengthening theand hikes in production and inventory levels to maintain supply in

production backup system through a review of the ratio of production

view of longer lead times in the Vehicle Communication Equipment

in Japan and Malaysia was conducted.

segment.

As a result, net sales in the consolidated fiscal year under review

Non-current assets stood at ¥22,330 million at the end of the fiscal

increased year on year due to a decrease in year-on-year sales ofyear under review (a gain of ¥3,878 million in the end of the previous

the Personal Communication Equipment segment, which were

fiscal year), due to an increase in property plant and equipment of

more than offset by increased year-on-year sales in both the Vehicle¥2,635 million and an increase in investments and other assets ofCommunication Equipment and Circuit Testing Connector segments.

¥1,083 million. This was mainly due to vigorous investment in mass

Operating profit was decreased year on year largely because theproduction and development in each business segment.

Personal Communication Equipment segment posted lower profit

As a result, total assets stood at ¥66,870 million at the end of thedue to cost increases and changes in the business structure, and theconsolidated fiscal year under review (a gain of ¥10,001 million in the

Vehicle Communication Equipment segment showed a loss due to

end of the previous fiscal year).

higher physical distribution cost, and cost increases associated withrising raw materials prices and a weaker yen, despite substantial year-(Liabilities)

on-year profit growth in the Circuit Testing Connector segment as aCurrent liabilities stood at ¥20,184 million at the end of theresult of increased sales.

consolidated fiscal year under review (a gain of ¥303 million from

Ordinary profit was increased reflecting an exchange gain

the end of the previous fiscal year) largely due to increases of ¥1,499

attributable to the weakening of the yen. Whilst operating profit fellmillion in notes and accounts payable-trade, and ¥751 million inyear on year as explained above, net sales, ordinary profit and profit

income taxes payable, which offset outflows such as a decrease

attributable to owners of parent all reached record highs.

of ¥3,400 million in the current portion of long-term borrowings.

53

Yokowo 2022 Integrated Report

The rise in notes and accounts payable-trade is chiefly attributable

In addition, capital investment funds are expended on

to increased purchases of parts and materials on expectation of

establishing and strengthening production systems, such as thesignificant expansion in production next fiscal year in both the Vehicleacquisition of production equipment, and the maintenance ofCommunication Equipment and Circuit Testing Connector segments.

information systems. The Companyʼs basic policy is to provide for the

Non-current assets stood at ¥2,357 million at the end of thenecessary funding through internal funds generated by the recorded

fiscal year under review (a gain of ¥1,572 million from the end of theprevious fiscal year) due to an increase of ¥1,600 million in long-termloans payable.

profit and depreciation.
In the consolidated fiscal year under review, the Group
actively invested in expanding mass production facilities including

As a result, total liabilities stood at ¥22,541 million at the end ofresearch and development as well as product development, suchthe consolidated fiscal year under review (a gain of ¥1,875 million inas constructing a production plant at the Philippines subsidiary,

the end of the previous fiscal year).

expansion of production facilities at the production subsidiary in
Vietnam, and the expansion of processing facilities at the production(Net Assets)
Net assets amounted to ¥44,328 million at the end of the consolidated

subsidiary in Malaysia.
In and after the consolidated fiscal year ending March 31, 2023,

fiscal year under review (a gain of ¥8,125 million from the end of thethe Group plans to construct plants within Japan and in Vietnam

previous fiscal year). This primarily reflects increases of ¥1,431 million

for the Circuit Testing Connector segment as well as further boost

in capital stock and ¥1,431 million in capital surplus, the recording ofproduction capacity at the production subsidiary in Malaysia. To fundprofit attributable to owners of parent of ¥4,663 million, an increase

this capital investment, in addition to operating cash flow, the Groupof ¥1,789 million in foreign currency translation adjustment, a gain

has refinanced long-term borrowing, but has reduced the amountfrom depreciation of yen against US dollar and other currencies atthrough partial repayment.

the end of the consolidated fiscal year under review, and dividends ofsurplus of ¥860 million.

On the other hand, under the new Medium-Term Management
Plan, in order to break through the limitations of existing businesses
and technologies and acquire new growth potential from a medium-

Cash Flows

to long-term perspective, the Group plans to invest in basic research
to further deepen its core technologies and in capital investment(1) Cash and Cash Equivalents

to enter new fields, such as the construction of new MEMS probe

Cash and cash equivalents came to ¥13,816 million at the end of thecard production lines. To raise funds for these plans, the company

consolidated fiscal year under review, down ¥1,478 million year on

issued 3 million new shares thus raising approximately ¥7.6 billion

year.

from the issuance of share acquisition rights through a third-party(2) Cash Flows from Operating Activities

allotment that they resolved the issuance of in November 2020, andNet cash provided by operating activities was ¥3,677 million (athe exercise of these rights. However, funds have been allocated todecrease in net cash provided of ¥1,461 million year on year),product and parts inventories that have ballooned due to the supply

attributable to inflows such as profit before income taxes of ¥6,459

chain disruptions and longer lead times for ocean freight in the

million and depreciation of ¥3,302 million, which offset outflows

Vehicle Communication Equipment segment. As a result, the Groupʼssuch as an increase in inventories of ¥4,190 million, reflecting

cash and cash equivalents stood at ¥13,816 million (a loss of ¥1,478

increased inventories in transit and hikes in production and inventory

million in the end of the previous fiscal year).

levels to maintain supply in the Vehicle Communication Equipment
segment.
(3) Cash Flows from Investing Activities
Net cash used in investing activities was ¥5,967 million (an increasein net cash used of ¥1,348 million year on year), primarily due tooutflows such as purchase of property, plant and equipment of▼ Net Assets / Capital Adequacy Ratio
Capital adequacy ratio (％)
66.2
63.6
70

Net assets (million yen)
50,000

62.9

57.2

55.1

40,00036,202¥4,739 million, mainly attributable to the construction of a plant in
the Philippines, and purchase of intangible assets of ¥530 million.
(4) Cash Flows from Financing Activities

30,00023,28424,48644,32850

26,53240
30

20,000Net cash provided by financing activities was ¥171 million (a decreasein net cash provided of ¥1,734 million year on year), chiefly owing
to inflows such as proceeds from the issuance of shares of ¥2,853
million and proceeds from long-term loans payable of ¥1,600 million,
versus outflows such as decrease in long-term loans payable of ¥3,400

60

20
10,0000

10
2017■ Net assets

2018

2019
2020
Capital adequacy ratio

2021

0

(FY)

million and payments of dividends of surplus of ¥858 million.
(5) Information on Liquidity and Capital Resources
The Companyʼs working capital is mainly spent on procurement of raw
materials and parts used in the manufacture of products and is alsosimilarly expended on goods and services recorded in manufacturing
expenses and selling, general and administrative expenses.

Yokowo 2022 Integrated Report54Appendix

Capital Investment

Basic Policy for Dividends

In the consolidated fiscal year under review, the Group continued to

The Company views the strengthening of returns to shareholders as

make capital investment, primarily in the expansion of production

an important task for management. The basic policy for dividends infacilities. Investment in intangible assets is included in addition toeach fiscal year defines stable and continuous distribution of dividends

investment in property, plant and equipment.

with due consideration for retained earnings, for the purposes

Total capital investment in the consolidated fiscal year underof investments in production facilities in growing business fields,

review was ¥5,092 million, and an overview of capital investment isdevelopment of technology in new businesses, and in tapping new

as follows.

markets.
The Company's basic policy for dividends from surplus is to pay a
dividend twice a year: an interim dividend and a year-end dividend.

(1. Property, plant and equipment)

The decision-making bodies for dividends are the Board of Directors(1) Vehicle Communication Equipment segment
The Group implemented total capital investment of ¥2,857 million.
This included expansion of the Vietnamese plant to strengthen
production capacity aimed at increasing work volume, strengtheningof development functions at the China plant, and construction of the
production plant in the Philippines.

for the interim dividend and the General Meeting of Shareholders forthe year-end dividend.
In business performance for the fiscal year under review, net sales,
ordinary profit and profit attributable to owners of parent all reachedrecord highs reflecting substantial year-on-year profit growth in the
Circuit Testing Connector segment and foreign exchange gains by(2) Circuit Testing Connector segment
The Group implemented total capital investment of ¥1,086 million.
This included expansion of mass production facilities and image
measuring equipment and more at production bases in Japan and
the Malaysian plant to accommodate order growth and shorter
delivery times for semiconductor test tools.

the weakening of the yen, although there was a loss in the Vehicle
Communication Equipment segment impacted by the spread of
COVID-19 pandemic.
In Yokowoʼs "Minimum 8" medium-term management targets(ensure at least 8% growth in sales growth rate, operating profit
margin, and return on equity (ROE)), the company has achieved a sales(3) Personal Communication Equipment segment
The Group implemented total capital investment of ¥659 million.
The Group conducted updates and expansion at both the Chineseand Malaysian plants, including mass production facilities in the Fine
Connector business. In the Medical Device business, the group also
expanded mass production and other facilities at production basesin Japan.

growth rate of 11.5% and a ROE of 11.6%, both above the 8% level.
Based on the circumstances outlined above, and comprehensively
taking into account the return of record high profit to shareholders,demand for funds in the next fiscal year onward and the securing offinancial stability, the Company submitted the proposal for a yearend
dividend for the fiscal year under review of 22 yen per share to the84th General Meeting of Shareholders, and it was approved. With aninterim dividend of 18 yen per share for the fiscal year under review(2. Intangible assets)
The Group implemented total capital investment of ¥489 million.
This included improving and updating facilities for core information
systems and strengthening and renewing CAD systems in order torealize group-wide business streamlining.

already paid, the Companyʼs annual dividend is 40 yen per share(consolidated payout ratio of 19.8％).
Furthermore, the Companyʼs Articles of Incorporation stipulate thatan interim dividend can be paid.

▼ Capital expenditures▼ Dividend per share(million yen)

Dividend per share (yen)

6,000

5,092

5,000

3,000

4,430

4,231

4,000

25
20
15

30

30

26
22

20

23.8
19.0

19.8

19.5

17.7

10

10

1,000

55

40

40

36

30

2,000

0

40
35

3,625

3,073

Consolidated payout ratio (％)

45

5
2017

2018

Yokowo 2022 Integrated Report

2019

2020

2021
(FY)

0

2017

2018

■ Dividend per share

2019

2020

2021
(FY)

Consolidated payout ratio

0CONSOLIDATED BALANCE SHEETS(millions of yen)

Fiscal 2020
(As of March 31,
2021)

Fiscal 2021
(As of March 31,
2022)

Cash and deposits

15,463

13,816

Notes and accounts receivable-trade

11,026

13,057

Merchandise and finished goods

6,062

8,900

ASSETS
Current assets

Inventories

441

742

Raw materials and supplies

3,808

6,037

Other

1,618

1,992

Allowance for doubtful accounts
Total current assets

(3)

(8)

38,41744,540Non-current assets
Net property, plant and equipment
Buildings and structures

7,546

8,085

Accumulated depreciation(4,009)(4,341)

Buildings and structures, net

3,537

3,744

Machinery, equipment and vehicles

13,073

14,626

Accumulated depreciation(8,210)(9,651)

Machinery, equipment and vehicles, net

4,862

4,975

Tools, furniture and fixtures

9,728

11,331

Accumulated depreciation(7,236)(8,479)Tools, furniture and fixtures, net

2,491

2,852

Land
Leased assets

761

761

2,440

2,552

Accumulated depreciation(1,140)(1,310)

Leased assets, net

1,300

1,241

Construction in progress

956

2,970

13,90916,544

Total property, plant and equipment
Intangible assets
Leased assets

14

5

Other

988

1,156

1,003

1,162

Total intangible assets
Investments and other assets
Investment securities

1,730

1,587

Retirement benefit asset

726

680

Deferred tax assets

344

678

Other

738

1,676

3,539

4,623

18,451

22,33056,86866,870Total investments and other assets
Total non-current assets
Total assets

Yokowo 2022 Integrated Report56

Appendix(millions of yen)

Fiscal 2020
(As of March 31,
2021)

Fiscal 2021
(As of March 31,
2022)

Notes and accounts payable-trade

6,491

7,991

Short-term loans payable

5,024

5,570

Current portion of long-term loans payable

LIABILITIESCurrent liabilities

3,400

－

Lease obligations

310

343

Income taxes payable

725

1,476

673

871

Other

3,255

3,930

Total current liabilities

19,88020,184－

1,600

Provision for bonuses

Non-current liabilities
Long-term loans payable
Lease obligations

420

259

Deferred tax liabilities

154

123

Net defined benefit liability

202

368

Long-term accounts payable

86

Total non-current liabilities

785

2,357

20,66622,541

Capital stock

6,387

7,819

Capital surplus

6,373

7,804

Retained earnings

22,19925,950Total liabilities
NET ASSETS
Shareholdersʼ equity

Treasury stock
Total shareholdersʼ equity

(633)

(634)

34,32640,939

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

543

430

Foreign currency translation adjustment

845

2,635

Remeasurements of defined benefit plans

437

267

Total valuation and translation adjustments

1,825

3,332

8

－

Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets

57

Yokowo 2022 Integrated Report

41

56

36,202

44,32856,86866,870CONSOLIDATED STATEMENTS OF INCOME(millions of yen)

Fiscal 2020
Fiscal 2021
(From April 1, 2020 (From April 1, 2021
to March 31, 2021) to March 31, 2022)
Net sales

59,976

66,848

Cost of sales

47,08053,638Gross profit

12,895

13,209Selling, general and administrative expenses

7,715

8,525

Operating income

5,179

4,684

Interest income

16

24

Dividend income

41

44

Capital return using equity method

－

42

192

1,763

Non-operating income

Foreign exchange gains (losses)
Other

65

73

Total non-operating income

316

1,948

Interest expenses

70

51

Share of loss of entities accounted for using equity method24－

Non-operating expenses

Commission expenses

13

16

Share acquisition rights issuance costs

26

18

Compensation expenses

30

－

Other
Total non-operating expenses
Ordinary income

9

16

175

103

5,320

6,529

5

2

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

28

2

Total extraordinary income

34

4

Loss on retirement of non-current assets

73

73

Loss on sales of non-current assets

01

Extraordinary losses－

0

Loss on valuation of investment securities

139－

Total extraordinary losses

213

74

Profit before income taxes

5,140

6,459

Income taxes - current

1,236

2,027

Income taxes - deferred

70

(240)

Total income taxes

1,306

1,786

Profit

3,834

4,673

15

9

3,818

4,663

Loss on sales of investment securities

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Yokowo 2022 Integrated Report58Appendix

CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME(millions of yen)

Fiscal 2020
Fiscal 2021
(From April 1, 2020 (From April 1, 2021
to March 31, 2021) to March 31, 2022)
Profit

3,834

4,673

Other comprehensive income
Valuation difference on available-for-sale securities

459

(112)

Foreign currency translation adjustment

910

1,795

Remeasurements of defined benefit plans

312

(170)

Total other comprehensive income
Comprehensive income

1,682

1,512

5,516

6,185

5,499

6,170

17

14

(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

59

Yokowo 2022 Integrated ReportCONSOLIDATED STATEMENT OFCHANGES IN EQUITY
Fiscal 2020 (From April 1, 2020 to March 31, 2021)(millions of yen)

Shareholdersʼ equity

Balance at beginningof period

Capital stock

CapitalsurplusRetainedearnings

3,996

3,981

19,045

Accumulated other comprehensive income

Treasury
stock

(664)

Valuation
Total
difference onshareholdersʼ available-forequity
sale securities

26,35984

Foreigncurrencytranslation
adjustment

(64)

Share
RemeasureTotal
acquisition
ments ofvaluation andrightsdefinedtranslation
benefit plans adjustments

124

144

3

Noncontrollinginterests

Total net
assets24

26,532

Changes during
periodDividends ofsurplusIssuance of newshares (exercise ofshare acquisitionrights)

(649)
2,391

(649)

(649)

4,782

4,782

3,818

3,818

(1)

(1)

(1)

31

17

17

2,391

Profit (loss)
attributable toowners of parent

3,818

Purchase oftreasury shares
Disposal of treasury
shares(14)

Net changes of
items other thanshareholdersʼ equity

459

909

312

1,681

5

17

1,703

Total changes of items
during period

2,391

2,391

3,154

30

7,967

459

909

312

1,681

5

17

9,670

Balance at end of
period

6,387

6,373

22,199(633)

34,326

543

845

437

1,825

8

41

36,202

Fiscal 2020 (From April 1, 2020 to March 31, 2021)(millions of yen)

Shareholdersʼ equity

Balance at beginningof period

Capital stock

CapitalsurplusRetainedearnings

6,387

6,373

22,199Cumulative effectof change inaccounting policy
Balance at
beginning of period,
reflecting change inaccounting policy

Accumulated other comprehensive income

Treasury
stock

(633)

(51)

6,387

6,373

22,147

Valuation
Total
difference onshareholdersʼ available-forequity
sale securities

34,326543

Foreigncurrencytranslation
adjustment

845

Share
Total
Remeasureacquisition
ments ofvaluation andrightsdefinedtranslation
benefit plans adjustments

437

1,825

8

Noncontrollinginterests

Total net
assets41

36,202

(51)

(633)

34,274

(51)

543

845

437

1,825

8

41

36,150Changes during
periodDividends ofsurplusIssuance of newshares (exercise ofshare acquisitionrights)

(860)
1,431

1,431

Profit (loss)
attributable toowners of parent

4,663

Purchase oftreasury shares(1)

Disposal of treasury
shares

(860)

(860)

2,862

2,862

4,663

4,663

(1)

(1)

－

－

Net changes of
items other thanshareholdersʼ equity

(112)

1,789

(170)

1,507

(8)

14

1,513

Total changes of items
during period

1,431

1,431

3,802

(1)

6,664

(112)

1,789

(170)

1,507

(8)

14

8,177

Balance at end of
period

7,819

7,804

25,950(634)

40,939

430

2,635

267

3,332

－

56

44,328

Yokowo 2022 Integrated Report60Appendix

CONSOLIDATED STATEMENT OF CASH FLOWS(millions of yen)

Fiscal 2020
Fiscal 2021
(From April 1, 2020 (From April 1, 2021
to March 31, 2021) to March 31, 2022)
Cash flows from operating activities
Profit before income taxes

5,140

6,459

Depreciation

2,987

3,302

Increase (decrease) in allowance for doubtful accounts(0)4Increase (decrease) in provision for bonuses

64

181

Increase (decrease) in net defined benefit asset and liability

(176)

(33)

Interest income and dividend income

(58)

(69)

Interest expenses

70

51

(328)

(320)

Share of loss (profit) of entities accounted for using equity method

24

(42)

Loss (gain) on sales of non-current assets

(5)

(0)

Loss on retirement of non-current assets

73

73

Foreign exchange losses (gains)

Loss (gain) on sales of investment securities

(28)

(2)

Loss (gain) on valuation of investment securities

139－

Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
Subtotal

300

(612)

(1,263)(4,190)

(471)

(100)

39

338

6,509

5,039

Interest and dividends received

58

69

Interest paid

(71)

(52)

Income taxes paid

(1,357)(1,378)Net cash provided by (used in) operating activities

5,139

3,677

(3,958)(4,739)Net cash provided by (used in) investing activities
Purchase of property, plant and equipment

7

19

Purchase of intangible assets

(410)

(530)

Purchase of investment securities

(38)

(20)

Proceeds from sales of investment securities

46

2

(156)

－

Proceeds from sales of property, plant and equipment

Payments into time deposits
Proceeds from withdrawal of time deposits－

175

Purchase of shares of subsidiaries and associates

－

(287)
(500)

Payment for outgoings for capital investments－

Long-term loan advances

(60)

－

Other

(48)

(86)

(4,619)(5,967)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term loans payable(1,504)

300

－

1,600

－

(3,400)

Proceeds from issuance of shares

4,770

2,853

Repayments of lease obligations

(747)

(322)

Dividends paid

(647)

(858)

Proceeds from exercise of employee share options

15－

Purchase of treasury shares

(1)

(1)

Proceeds from issuance of exercise of share acquisition rights

20

－

1,905

171

Repayments of long-term loans payable

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

516

640

2,942

(1,478)Cash and cash equivalents at beginning of period

12,352

15,295

Cash and cash equivalents at end of period

15,295

13,816

61

Yokowo 2022 Integrated ReportIndependent Practitionerʼs Assurance Report

Yokowo 2022 Integrated Report62

YOKOWO CO., LTD.
JR Kanda Manseibashi Bldg. 14F, 1-25, Kandasuda-cho, Chiyoda-ku,
Tokyo 101-0041, Japan
Inquiry form:
https://www.yokowo.co.jp/english/inquiry/