Segment Overview

Yokowoʼs Business Domain

VCCS Segment
VCCS

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. We are branching out today
into three segments: VCCS (formerly Vehicle Communication Equipment), CTC (formerly Circuit Testing Connector),and FC/MD (formerly Personal Communication Equipment), and as of FY2023, have added an Incubation Center
segment focusing around the promotion of new businesses.

▼ Business Domain MapVCCS(formerly Vehicle Communication Equipment)

Sales: ¥46,520 million(+16.1% YOY)
Vehicle Antennas

Shark Fin Antennas

GNSS Antennas

CTCFC/MD(formerly Circuit Testing Connector)(formerly Wireless Communication Equipment)

Sales: ¥22,374 million(+26.9% YOY)

Sales: ¥9,067 million(-0.8% YOY)
Connectors forElectronic Devices(Fine Connectors)

Semiconductor
Testing Tools▼ VCCS segment - Consolidated Sales(million yen)

FY2018FY2019FY2020

FY2021

FY2022

38,18339,26437,29240,081

46,520SPRING CONNECTOR™

Hi-Giga-Socket

Segment Policy

In the VCCS (Vehicle Communication Comfort & Safety) segment,
Yokowo manufactures vehicle antennas, including Shark Fin andGPS antennas for all areas from low to high frequency, mainly inChina, Vietnam, and the Philippines with over 90% of production
taking place overseas. Regarding sales, we mainly provide ourvehicle antennas to Japanese automobile manufacturers, not onlyin Japan but also globally in the United States and ASEAN markets.
Overseas sales account for over 70% of all sales in this segment.
As a leading company of antenna systems that support
next-generation 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.

Looking ahead, Yokowo will continue to approach newmarkets including the rapidly expanding Indian market, using
this as an opportunity to take advantage of major shifts inthe business environment—these include the development of
new business fields such as CASE*, rapid growth in EVs, andreductions in greenhouse gas emissions. While working on
the development of more advanced strategic products withhigher levels of added value, Yokowo will work toward stableprofitability as a business through comprehensive and thoroughreforms in everything from product costs to business structure.
In addition to carefully selecting investment projects aimed
at improving capital efficiency, Yokowo will forge ahead
in rebuilding its profit strategy and creating a multilayered
development and production system by stably expanding laborsaving, automatic assembly lines, moving more production
from its Chinese plant to its plant in Vietnam, rapidly achieving
full production at the Philippines plant as a third production
base (began operations in April 2022), and making the most ofstrategic alliances.

MedicalDevices

VCCS

CTC

Coils for Guide Wires
and Catheter Shafts

FC/MD（Vehicle Communication Comfort & Safety）（Circuit Testing Connector）（Fine Connector/Medical Device）

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

Yokowo manufactures probe cards for frontend testing and sockets for backend testing
mainly for the semiconductor and electroniccomponent testing market.
By making full use of its micro precision
processing and microwave technologies, theCompany provides solutions for all processes
in the area of testing for electronic devices,such as semiconductors and electroniccomponents, so as to meet the demands forsmaller size and greater speeds.

〈Fine Connector (FC) Business〉
Yokowo is globally developing and providingminute SPRING CONNECTOR™ that meet theneeds for miniaturization and space saving
in various electronic devices, mainly for themobile communications terminal market.

Incubation Center(Segment added in FY2023)

27

Yokowo 2023 Integrated Report〈Medical Device (MD) Business〉
Yokowo provides a complete service from thedesign to the development and manufacturingof OEM guide wires, catheters and othermicro precision parts and assembly products,
mainly for the minimally invasive medicalequipment market.

This segment comprises a Platform Business in response to new markets such asadvanced driver-assistance systems (ADAS), automated driving, and connected cars,
and an Advanced Device Business that promotes the development of high-speedtransmission device products for the optical communication market.

FC/MDSegment Overview

Segment Review (Fiscal 2022)
Probe Cards

CTC

In the automobile market, the main market for this segment,
the global shortage of semiconductors and the delays in partsprocurement and other impacts persisted in part, but from thesecond quarter onward, the semiconductor shortage graduallyeased, with sales trending upward. A breakdown by region
shows that new vehicle sales decreased year on year in China,
but increased in the US, ASEAN, and Japan markets.
In these circumstances, overseas sales of antennas forautomobile manufacturers such as Yokowoʼs mainstay Shark Fin
and GPS antenna products increased year on year due to theweaker yen and the rebound in automobile production from thesecond quarter onward.
As a result, net sales in this segment grew year on year to￥46,520 million (up 16.1% on previous year). In regard tosegment profit and loss, the segment reported a loss of ¥2,094
million (a loss of ¥1,443 million in the previous year). This was
as a result of cost increases resulting from ongoing higher raw
material prices and ocean freight rates, in addition to higher
raw material and labor costs at production sites in China andVietnam resulting from currency appreciation, and a one-timeinventory write-down resulting from the application of thelower-of-cost-or-market method in the fourth quarter, in spite ofa partial recovery from cost increases.

*CASE: Connectivity / Autonomous / Shared / Electric, new trends in automobiles.

Shark Fin Antennas

GNSS Antennas (supports multiplesatellite positioning systems, including
GPS, GLONASS, and Galileo, etc.)

Yokowo 2023 Integrated Report28Segment Overview

CTC Segment

FC/MD Segment
VCCS▼ CTC Segment - Consolidated Sales

FY20189,138

FY201912,832

FY202013,242In the CTC (Circuit Testing Connector) 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 for back-end testingin semiconductor manufacturing processes, both of which
use contact probes. Yokowo has production bases in Japan,Malaysia, and Vietnam with overseas production accounting forover 60% in this segment. Products are supplied worldwide,
mainly to semiconductor manufacturers and foundries, withover 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 forthe testing of high-frequency electronic components (YPX) thatmake use of MEMS technology.

Segment Review (Fiscal 2022)
In the semiconductor testing market, the main market for thissegment, there was strong demand the first half of the year
due to firm demand in servers and automobiles combined withexpanded supply capacity from semiconductor manufacturers
in order to eliminate semiconductor shortages, but this slowed
sharply from the second half onward due to declining demand in
PCs and smartphones.
In these circumstances, sales of semiconductor back-end
testing tools, the main product of the Group, increased year on
year because of higher orders for logic semiconductor testingsockets and depreciation in the yen, despite a decline from thesecond half of the year. Sales of semiconductor front-end testing
tools increased year on year due to the launch of new models
in the turnkey business that offers one-stop solutions services
including peripheral devices, and sales of MEMS probe cards (YPX)
for high-frequency electronics components testing also exceeded
the previous year on the back of increased orders.
As a result, net sales in this segment grew year on year to￥22,374 million (up 26.9% on previous year). In regard tosegment profit and loss, the segment reported a profit of ￥6,169million (up 26.6% on previous year) due to increased profits

Yokowo 2023 Integrated Report▼ FC/MD Segment - Consolidated Sales(million yen)Segment Overview

29VCCSFY2021

FY2022

22,374

17,625CTC

FC/MDfrom higher net sales and the impact of the weaker yen in thefirst half of the year, despite a deterioration in profits due to a
sharp drop in orders in the fourth quarter.

Segment Policy
Going forward, Yokowoʼs policy is to steadily capture theincrease in demand for semiconductor testing in fields suchas 5G, IoT, in-vehicle, and AI. To this end, Yokowo willstrongly 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 domesticand Malaysian plants as well as achieve stable operation atdomestic branch plants and the Vietnam plant established in
the second half of fiscal 2022, and invest in improved efficiency
and streamlining such as by building automatic assembly lines
and introducing automatic testing systems. Further, as wellas promoting fundamental structural maintenance toward
expanding our turnkey business in the area of semiconductor
front-end testing and strengthening our production and business
continuity planning (BCP) systems in anticipation of a recovery of
demand in the semiconductor testing market, Yokowo will also
strive to build a more profitable business structure and maintainstable business operations.

Contact
ProbesYPXProbe HeadSockets(million yen)

FY2018FY2019FY2020

FY2021

FY2022

7,429

8,498

9,441

9,141

9,067

Segment Overview
This segment consists of two businesses; FC (Fine Connector)
and MD (Medical Device).
In the FC business, Yokowo manufactures SPRING
CONNECTOR™ which allow for easy attachment anddetachment 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 MD business, in addition to micro precision parts suchas OEM guide wires and catheters, Yokowo designs, develops,
and manufactures assembly products at its Tomioka plantin Japan. Yokowo mainly supplies domestic medical device
manufacturers, with approximately 10% of sales going overseas.

Segment Review (Fiscal 2022)
In the market for mobile communication terminals, a main market
for this segment, sales of smartphones were sluggish due to theimpact of the global shortage of semiconductors and of a business
downturn. 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, however demand issoftening due to the global economic slowdown.
In these circumstances, net sales for the FC business, for whichfine SPRING CONNECTOR™ act as core products decreased year
on year due to lower sales in wearable devices such as wirelessearbuds because of customers production adjustments, along witha decrease in orders for POS terminals.
In the MD business, which is included in the segment, sales
increased year on year, reflecting sales of products to majorcustomers.
As a result, net sales in this segment decreased year on yearto ￥9,067 million (down 0.8% on the previous year). In regard
to segment profit and loss, in addition to a drop in profits fromreduced income in the FC business, an increase in the labor-CTC

FC/MD

cost ratio at production bases in China caused in part by theappreciation of the Chinese yuan together with changes in thebusiness composition meant that profit decreased to ￥664 million(down 47.1% on previous year).

Segment Policy
In the FC business, Yokowo aims to establish a competitive
advantage by honing our core competencies, and to evolve into
a connectors solution provider by creating new customer value
through leveraging our unique strengths as a company. The
Group will redefine the wide variety of markets, and provide anadvanced user experience (UX) by using product planning andsales strategies tailored to our target markets.
In the MD business, Yokowo aims to further grow thebusiness by increasing the production capacity of micro precisionparts with the installation of cutting-edge production equipment
and by expanding sales of guide wire and catheter assembly
products in Japan and overseas, and by shifting over to a global
quality control system covering the entire product life-cycle.
Yokowo will strengthen our efforts in the venture ecosystem
as a manufacturing partner that brings product ideas fromventure companies in Japan to reality, and as a planning productdevelopment and development-type OEM supplier in theadvanced medical field, will achieve active business expansion.

SPRING CONNECTOR™

Coils for guide wires

Yokowo 2023 Integrated Report30