Yokowo 2020
Integrated Report

CONTENTS
Yokowo 2020 Integrated Report
Contents / Editorial Policy

02

Regarding the Publication of
the Yokowo 2020 Integrated Report

03

Yokowo Global Network / Company Profile

04

Value Creation ̶ Our Track Record

06

Segment Overview

Yokowoʼs Value Creation

Yokowoʼs Business Domain

08

Vehicle Communication
Equipment Segment

09

Circuit Testing
Connector Segment

10

Wireless Communication
Equipment Segment

11

Top Message

12

Yokowoʼs Value Creation Process 16

ESG Report

Appendix

02

Yokowoʼs Manufacturing

18

Yokowoʼs Materiality

20

Research and Development

24

Product Technology

26

CSR Foundation

28

Corporate Governance30

Directors, Auditors andExecutive Officers

32

Diversity

34

Information Security

36

Occupational Health and
Safety: OH&S

37

Local Communities

38

Environment

40

Financial Highlight42

Non-financial Highlight

43

Financial Information

44

Independent Practitionerʼs
Assurance Report

53

Yokowo 2020 Integrated Report

Editorial Policy
Covered Organization: YOKOWO CO., LTD.
4 Domestic Group Companies
17 Overseas Group Companies
Period: Fiscal Year 2019 (April 1, 2019 - March 31, 2020)
Published: November 10, 2020
Publishing Cycle: Annually
Information Disclosure:
The Yokowo Group discloses information accurately, promptly
and proactively in order to build long-term relationships of trustwith its shareholders, investors and other 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 the information available atthe time of publication. Please note that due to various factors,
actual results may differ significantly from those anticipated insuch statements.
Department Responsible for the Report:
Public Relations & Equity Department,
Administration Management H.Q.
Tel: +81-3-3916-3111 (main number)
Inquiry Form:
https://www.yokowo.co.jp/english/inquiry/

Regarding the Publication of
the Yokowo 2020 Integrated Report
Yokowo believes that in addition to the Groupʼs medium- to long-term growthstrategy, it is important to accurately, promptly and proactively disclose
information on the ESG initiatives and CSR activities the Group engages in within
its corporate activities.
In this regard, we have published the Yokowo 2020 Integrated Report, which
consistently summarizes financial and non-financial information from FY2020,
with the aim to disclose understandable information in more detail.
As well as clearly clarifying to shareholders, investors, and other stakeholders
the connection between the Groupʼs business activities and the Sustainable
Development Goals (SDGs), this report attempts to convey in an easy-to-understandway how the Group will achieve sustainable growth in the future by illustrating
what Yokowo will look like 10 years from now.
I truly hope this report will help you gain a better understanding of the
Yokowo Group.

Takayuki Tokuma
Representative Director,
President and Executive Officer

Yokowo 2020 Integrated Report

03

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, and Vietnam. Overseas production now accounts for more than 80% of Yokowoʼs total production.
In terms of sales, Yokowo has opened overseas offices in countries and regions worldwide with offices in seven cities in
the Americas, the U.K. and Germany in Europe, and eight Asian countries to provide local-based sales services closely
matched to market needs around the world.

YOKOWO EUROPE GmbH
[Germany]

YOKOWO KOREA CO., LTD.
[Korea]YOKOWO EUROPE GmbH
[Germany]
Düsseldorf office

DONGGUAN YOKOWO COMMUNICATIONCOMPONENTS CO., LTD. [China]
Dalian office

DONGGUAN YOKOWO COMMUNICATIONCOMPONENTS CO., LTD [China]

YOKOWO EUROPE LTD.
[U.K.]DONGGUAN YOKOWO CAR COMPONENTS CO., LTD. [China]
Vehicle antenna, Fine connector

YOKOWO VIETNAM CO., LTD. [Vietnam]

YOKOWO MICROTECH CO., LTD.
[Taiwan]

Vehicle antenna

YOKOWO (THAILAND) CO., LTD. [Thailand]

YOKOWO (SINGAPORE)
PTE. LTD. [Philippines]
Philippine office

YOKOWO ELECTRONICS (M) SDN. BHD. [Malaysia]

Production
R&D
Sales

Vehicle antenna, Circuit testing connector, Fine connector

YOKOWO (SINGAPORE) PTE. LTD. [Singapore]

YOKOWO (HONG KONG) LTD.
[Hong Kong]
YOKOWO CORP. (H.K.) LTD.
[Hong Kong]

Company Profile (As of March 31, 2020)
Company Name
Head Office
LocationFoundedIncorporated
Capital
Number ofshares issuable

YOKOWO CO., LTD.
5-11, Takinogawa 7-Chome,
Kita-ku, Tokyo 114-8515 Japan
September 1, 1922
June 14, 1951
¥3,996 million
40,000,000 shares

Number ofshares issued

20,849,878 shares, including
564,946 treasury stock shares

Number ofshareholders

9,055

04

Yokowo 2020 Integrated Report▼ Major Shareholders (As of March 31, 2020)

Shareholder

Number ofPercentage ofshares held
shares held
(in thousands)

Japan Trustee Services Bank, Ltd.

3,202

15.7

The Master Trust Bank of Japan, Ltd.

1,728

8.5

The Gunma Bank, Ltd.

990

4.8

Yokowo Business Partners Shareholdersʼ Association

776

3.8

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

650

3.2

Mitsubishi UFJ Trust and Banking Corporation

595

2.9

Trust & Custody Services Bank Ltd.

574

2.8

The Dai-ichi Life Insurance Company, Limited

450

2.2

MUFG Bank, Ltd.

446

2.2

The Resona Bank, Limited

445

2.2

* The Company holds 564 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 564 thousands of treasury stocks and is rounded to thenearest third decimal with numbers of less than one-hundredth of one percent omitted.

YOKOWO AMERICA CORPORATION [IL, USA]YOKOWO MANUFACTURING OF AMERICA LLC [MI, USA]
Detroit office

YOKOWO AMERICA CORPORATION[CA, USA]YOKOWO AMERICA CORPORATION [OH, USA]

Silicon Valley office

Cleveland office

YOKOWO MANUFACTURING OF AMERICA LLC [OH, USA]
Vehicle antenna

Tomioka plant

Utsunomiya
branchVehicle antenna,
Circuit testing connector,
Fine connector, Medical device

YOKOWO DE MEXICO S.A. DE C.V. [Mexico]
MEMS development
center

LTCC Materials Co., Ltd.
LTCC products

YOKOWO AMERICA CORPORATION [AZ, USA]

Circuit testing connector

Tempe office

Tokyo head officeCore technology center
Chubu branch
Osaka branch▼ Net Sales by Region (FY2019)

20,3660

10,000Japan

17,93420,00030,000Europe and America▼ Net Sales / Share of Total Overseas Sales

22,29340,000Net sales (million yen)

50,00060,000(million yen)

Asia

65.0
60,000▼ Number of Employees by Region (FY2019)

Share of total overseas sales (%)
66.4
70
63.2

64.3

60

50,00040,00063.4

39,99844,07751,91954,75260,59540

30,000

3,082
0

1,000
China*

1

2,000

3,314
3,000

Vietnam*1*1 Major Production Sites

4,000

825

5,000

Malaysia*

1

6,000

Japan**2 YOKOWO CO., LTD.

2

7,000

839 483
8,000(Unit: person)

Other

50

30

20,00020

10,00010

02015■ Net sales

2016
2017
2018
2019
Share of total overseas sales (FY)

Yokowo 2020 Integrated Report

005Value Creation ̶ Our Track Record
Yokowo started with precision metal pipe processing developed by its founder,
Chutaro Yokoo, at the time when he was a craftsman in the industry. Fromthese 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 TomiokaCity), where the founder was born and raised, as the center of development
and production, Yokowo is developing and providing cutting-edge products forthe global market while expanding its bases overseas.

1920
'22

1980
'83

1960

●

Founded YOKOWO MFG. CO., LTD. in
Sumida, Tokyo.

●

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

'61

●

●

Started Personal Communication
Antenna business. (withdrew in 2014)

Cellular Phone Antenna

Established Tomioka plant in Kanohara,
Tomioka.

●

Personal Communication
Antenna

Started Microwave Component business.
(transferred to the Vehicle Communication
Equipment business in 2002)

Tomioka Plant'62

Spring Bar

'67

●

●

1950
'51

●

Incorporated.

'56●

Started Rod Antenna business.
(withdrew in 2003)

Listed on the second section of theTokyo Stock Exchange.
Established YOKOWO MFG. CO.,(TAIWAN) Ltd.
(now YOKOWO MICRO TECH CO., LTD.)

Microwave Components'84●

Established YOKOWO AMERICACORPORATION in Chicago, U.S.A.

'86●

Started Fine Connector business.

Spring Connector

1970

'87

'73

●

Established YOKOWO (HONG KONG) LTD.

'78●

Established YOKOWO (SINGAPORE) PTE.
LTD.

'79

●

Started Circuit Testing Connector business.

●

Established YOKOWO ELECTRONICS (M)
SDN. BHD. in Malaysia.

●

Began OEM supply of various satellite
broadcast reception devices in tandem withNHKʼs launch of satellite broadcast services.

Rod Antenna'57●

Started Vehicle Communication
Equipment business.

Pillar Antenna

Outdoor Unit for BS
Contact Probe
AM/FM Motor Antenna'59●

Started Sporting Goods business.
(withdrew in 1995)

Golf Goods

06

Yokowo 2020 Integrated Report'89●Completed new head office in Tokyo.

1990

2000

2010

'90

●

Changed company name to YOKOWO
CO., LTD.

'01●

Listed on the first section of the Tokyo
Stock Exchange.

'92●

Developed a small-sized ceramic patch
GPS Antenna.

'02●

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

'11●

Established YOKOWO VIETNAM CO.,LTD. in Vietnam.

●

Began OEM supply of Guide Wire for
medical treatment.

GPS Antenna

'94

'95
'96

●

●

●

Established DONGGUAN YOKOWOELECTRONICS CO., LTD. in China.
(merged with DONGGUAN YOKOWOCAR COMPONENTS CO., LTD. in 2017)

Established DONGGUAN YOKOWOCAR COMPONENTS CO., LTD. in China.

●

Established YOKOWO KOREA CO., LTD.
in Korea.

●Developed the industryʼs first socket for
high-frequency testing.

'05

Developed the worldʼs first Micro
Antenna for automotive AM/FM radio.

Started Microwave Ceramics business.

'12●

Acquired ISO 13485 certificate.

'13●

Commercialized the YPX probe cardseries for the testing of high frequency
devices using MEMS technology.

Hi-Giga Sockets●

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

●

Developed a 2 Piece connector to makea full entry into the rugged handheld
device market.

YPX Series'14●

Acquired ISO 27001 certificate.

'16●

Acquired OHSAS 18001 certificate.
(Transferred to ISO 45001 in 2020)'18●

Established Advanced Measurement
Technology Center in Tomioka plant.

●

Registered the SmartWeld trademark
for its original technology for bonding
different metallic materials.

●

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

2 Piece Connector

Micro Antenna●

Guide Wire for
Medical Treatment'06●

Started Medical Device business.

Components for
Medical Devices(Tip Terminal of Catheter)
Ceramic Antenna'97●

Developed a BGA Test Socket to makea full entry into the semiconductor
inspection market.

BGA Test Socket

'99

●

●

Established DONGGUAN YOKOWOCOMMUNICATION COMPONENTS
CO., LTD. in China.
Established YOKOWO EUROPE LTD. in
London, U.K.

'07

'08

AMT Center●

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

Took over probe card business from
Genesis Technology Inc.

●

Established YOKOWO MEMS
development center.

'19

®

2020
'20

●

Established YOKOWO EUROPE GmbHin Germany.

●

Established Lumax Yokowo Technologies
Private Limited in India.

Yokowo 2020 Integrated Report

07Segment Overview

Yokowoʼs Business Domain
The Yokowo Group has implemented and refined a number of technologies such as antenna and microwave (highfrequency) 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 Wireless Communication Equipment.

▼ Business domain map

Vehicle Communication Equipment
Sales: ¥39,264 million(Up 2.8% on previous year)
Vehicle Antennas

Shark Fin Antennas

GNSS Antennas

Circuit Testing Connector

Wireless Communication Equipment

Sales: ¥12,832 million(Up 40.4% on previous year)

Sales: ¥8,498 million(Up 14.4% on previous year)
Connectors forElectronic Devices(Fine Connectors)

Semiconductor Testing Tools

Probe Cards

Vehicle Communication Equipment

Coils for Guide Wires
and Catheter Shafts

Circuit Testing Connector

Wireless Communication Equipment

Yokowo manufactures antennas for cars

Yokowo manufactures probe cards for(vehicle antennas), such as the Shark Fin

front-end testing and sockets for back-end

antenna, mainly for the automotive

testing mainly for the semiconductor andmarket.

electronic component testing market.

• Fine Connector Business
Yokowo is globally developing andproviding minute spring connectors thatmeet the needs for miniaturization andspace saving in various electronic devices,
mainly for the mobile communications
terminal market.

By continuing to develop and propose

By making full use of its micro precisionantenna systems to the customers thatprocessing and microwave technologies, thesupport next-generation vehicle

Company provides solutions for all processes

communication which meet the basicin the area of testing for electronic devices,

needs required for smaller, multi-use,such as semiconductors and electronic

lower profile and smart vehicle antennas,

components, so as to meet the demands for

Yokowo is helping to create safe andsmaller size and greater speeds.

comfortable mobility services.

08

Spring Connectors

Hi-Giga Sockets

Medical Devices

Yokowo 2020 Integrated Report• Medical Device Business
Yokowo provides a complete service fromthe design to the development andmanufacturing 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)

FY2015FY2016FY2017FY2018FY201928,761

32,02936,25638,18339,264

VehicleCommunication
Equipment

CircuitTesting
Connector

Wireless
Communication
Equipment

Segment Overview

Segment Policy

In this segment, Yokowo manufactures vehicle antennas,
including Shark Fin and GPS antennas for all areas from low tohigh 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
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 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 rebuilding its profit
structure by moving more production from its Chinese plant to
its plant in Vietnam. The Company will also overhaul its profit
profile by looking at a third production base, and by making
the most of strategic alliances while seeking steady expansionof its automatic assembly lines and automatic testing systems
brought in this fiscal year.

Segment Review (Fiscal 2019)
In the automotive market, this segmentʼs main market,
demand has been flat or declining in major countries such as
the United States and China due to a slowdown in the worldʼseconomy from prolonged trade friction between these two
global players. Moreover, the spread of COVID-19 pandemic in
the fourth quarter also forced car manufacturers to shut down
their plants.
In Japan, sales of new on-the-road cars and light vehicles
fell year on year due to a reactionary fall in demand following
the consumption tax hike in October 2019 and a drop in
demand because of COVID-19.
Under these circumstances however, sales of antennas for
car manufacturers, such as Yokowoʼs mainstay Shark Fin and
GPS antennas, remained firm to major customers in Japan andoverseas, surpassing previous yearly sales. And sales of
products mainly for the domestic market, such as the ETC
antenna, increased from the previous fiscal year due to strong
car sales for some of the automobile manufacturers.

Shark Fin Antennas

GNSS Antennas

Yokowo 2020 Integrated Report09Segment Overview

Circuit Testing Connector Segment▼ Circuit Testing Connector - Consolidated Sales(million yen)

FY2015FY2016FY2017FY2018FY2019

6,614

6,883

9,503

9,138

12,832

VehicleCommunication
Equipment

CircuitTesting
Connector

Wireless
Communication
Equipment

Segment Overview

Segment Policy

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 which both use contact probes. Yokowo has
production bases in Japan and Malaysia with overseas
production accounting for over 70% 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 5G devices, that
also use microwave technology, and probe cards for the testingof high-frequency electronic components that make use of
MEMS technology.

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, invest in capacity increases atdomestic and Malaysian plants, invest in improved efficiency
and streamlining such as by building automatic assembly lines
and introducing automatic testing systems, and expand its
turnkey business in the area of semiconductor front-end
testing. Yokowo will also strive to build a more profitablebusiness structure and maintain stable business operations.

Segment Review (Fiscal 2019)
Although IC products, especially in the memory market, havebeen sluggish because of a drop in demand for smartphones
due to the trade war between the United States and China,
growth is expected to continue over the medium to long termin the semiconductor testing market, this segmentʼs mainmarket, due to increased demand in growth fields such as 5G,
IoT, in-vehicle, AI, and big data.
Under these circumstances, sales of the Groupʼs mainstay
semiconductor back-end testing tools greatly exceeded those of
the previous year due to an increase in orders for high-frequency
compatible products, in contrast to the previous fiscal year when
demand slowed mainly in the memory field. Sales ofsemiconductor front-end testing tools also increased year on
year due to the steady expansion of the turnkey business,
which provides a one-stop service solution to include
peripheral equipment.
As a result, net sales in this segment were 12,832 million yen(up 40.4% on previous year), a significant increase from theprevious fiscal year. In terms of profit and loss for the segment,
profit increased due to increased revenue resulting in a profit of
3,132 million yen (up 236.7% on previous year), due to a higher
proportion of product sales with relatively high profit margins
and an increased operating rate for production equipment.

10

Yokowo 2020 Integrated Report

Contact Probes

Probe Cards

Hi-Giga Sockets

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

FY2015FY2016FY2017FY2018FY2019

4,622

5,164

6,158

7,429

8,498

Segment Overview
This segment consists of two businesses; Fine Connectors andMedical Devices.
In the Fine Connector business, Yokowo manufactures
spring connectors 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, withover 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 2019)
Although sales of smartphones have been declining in themobile communications terminal market, this segmentʼs mainmarket, future growth is expected on the back of morediversification and functionality with wearable devices.
Moreover, the point of sales (POS) market continues to growsteadily from the perspective of improved operational efficiency
through information management in a wide range ofindustries, including logistics and manufacturing. And growthis also expected in other markets such as industrial equipment.
In the Fine Connector business, with fine spring connectors
as the businessʼ key product, sales of products for thehealthcare market decreased sharply from the second half ofthe fiscal year ended March 31, 2020. However, sales for POS
terminals and wearable devices were strong, resulting in higher
sales exceeding those of the previous year.
In the Medical Device business, in addition to strong sales ofassembly products both in Japan and overseas, sales ofcomponents also increased, resulting in a significant upsurge insales from the previous fiscal year.
As a result, net sales in this segment increased from theprevious fiscal year to 8,498 million yen (up 14.4% on previous

VehicleCommunication
Equipment

CircuitTesting
Connector

Wireless
Communication
Equipmentyear). In terms of profit and loss, although productivity in theFine Connector business dropped due to COVID-19, thesegment saw a profit of 1,755 million yen (up 8.7% on
previous year) due to; increased profits from revenue gains,
a higher proportion of product sales with relatively high profit
margins, and improving yields in the Medical Device business.

Segment Policy
In the Fine Connector business, Yokowo plans to continue
working to expand its business and carry on with the multi-layer
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 terms of medical devices, Yokowo aims to further growthe business by increasing the production capacity of micro
precision parts with the installation of cutting-edge production
equipment and by expanding sales of guide wire and catheter
assembly products in Japan and overseas. The Company will
also promote a multi-layered structure to the supply chain in
anticipation of business expansion in the cutting-edge medical
field which is seeing worldwide expansion particularly in the
United States.

Spring Connectors

Coils for Guide Wires

Yokowo 2020 Integrated Report11

Yokowoʼs Value Creation

Top Message

Challenge the next stage
by promoting
the new medium-term
management plan
GO BEYOND~Challenge the Next Stage~

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

Yokowo will drive forward with
its new medium-term management plan,
to ensure that it is a constantly evolving company.
The new medium-term management plan began in fiscal year 2020.
An outline of the new medium-term management plan and the success stories for the next stage
Yokowo will take from here are described below.

Corporate Philosophy
Yokowoʼ s corporate vision is to be “a sustainably
evolving company that accumulates technology tocontribute to society and meet the trust of customers,
and challenges the creation of markets as a whole.
Yokowo is a company united in commitment todiscovering and creating new markets.”

Corporate Mission
To realize a sustainable society, Yokowo will contributeto the evolution of society by responding to the needsof leading companies that are promoting businessstructural innovation and providing high-quality
products based on our core technologies.

12

Yokowo 2020 Integrated Report

The corporate vision and mission were redefined in August
2009, one year after the collapse of Lehman Brothers, as a partof the “Make the Future of Yokowo” project.
Amid the chaos of a global paradigm shift, employees andthe management team brainstormed and distilled views of what
Yokowo and all of us at Yokowo should do and wish to be in
the future based on opinions collected from all employees.
We believe that the reason for Yokowoʼs existence is oursteady contribution to the evolution of society, based on
unwavering commitment even amid a drastically changing
environment, through the improvement of our technologies
and quality and our response to the needs of our world-classcustomers.

As the management environment surrounding Yokowo is

Basic Management Policy
Yokowo has instituted two management policies to realize its
corporate vision. One is the sustainable evolution of business
management and the other is a multi-layered businessstructure.
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 both product and business structure
innovation), process innovation (the innovation of business
operating systems) and personnel innovation (humanresources innovation).
In other words, these measures aim to substantially change
the business structure, including products, technology andmarkets, and business operating process through the optimal
placement of business sites and the positive introduction of 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
involved in the above three innovation measures and thesemeasures themselves are managed, in order to accelerate theevolution of business management.
The other management policy of the multi-layered businessstructure aims to enhance the stability of our corporate
management and our companywide earnings structure.
In other words, we aim to improve sustainability.

changing drastically, this management policy aims to establish
a business system capable of responding to these changes bycreating 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 hope toachieve Minimum 8 (secure at least 8% in sales growth rate,
operating profit margin, and return on equity) in a consistentand stable way.

Environmental Changes and Operating
Results over the most recent 10 Years
Looking back at the 10-year period from the fiscal year ended
March 31, 2011 until the fiscal year ended March 31, 2020,
consolidated net sales doubled from ¥27.9 billion to ¥60.5
billion and the total number of employees in the Yokowo Groupalso doubled, from approximately 4,000 to approximately 8,500.
Operating income increased almost four times its size, from
¥1.3 billion to ¥4.9 billion, and achieved a new record high.
Despite a series of large natural disasters, political andeconomic conflicts in world affairs, an increasingly competitiveenvironment and other severe environmental changes, we havemade dramatic strides as a result of steadily promoting theevolution of business management and a multi-layered
business structure, due to the support of our shareholders andother stakeholders. Just as we were thinking about ouradvance to the next stage, the COVID-19 pandemic occurred.
The spread of this novel COVID-19 starting at the end of2019 has caused economic activity to wither globally.

Corporate 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 2020 Integrated Report

13

Yokowoʼs Value Creation

Due to restrictions on peopleʼs movements and on theirgoing out of their homes that have been imposed bygovernments as well as reductions in demand from markets
and customers, the Yokowo Group faced significant declines
in the operating ratios of its overseas production sites fromFebruary until May 2020. We have been doing our best to
prevent the spread of the infection by leveraging collective
Group resources and we have weathered the worst momentsby relocating and setting up production facilities in Japan aswell as through the cooperation of our partner firms. In thismanner, we managed to achieve a recovery to our normal
business activity levels. Currently, we are maintaining stable
operations, while paying close attention to the prevention of
the spread of the infection. At the same time, we arepromoting the enhancement of our BCP framework.

New Medium-term Management Plan
The impact of the COVID-19 forced us to make large
modifications as we formulated the new medium-term
management plan for the three-year period covering from the83rd fiscal term (the fiscal year ending March 31, 2021) tothe 85th fiscal term (the fiscal year ending March 31, 2023).
Yokowoʼs main markets, namely the automotive,
semiconductor testing, mobile communication terminals, andadvanced medical device markets, were in the midst of thegreatest transformation with the growth and expansion of
CASE*, MaaS, 5G (5th generation mobile communication
systems), AI and IoT. However, these markets are greatly
affected by COVID-19.
It has impacted us in many ways, including steep declines andslumps in demand in some markets and special demand inothers, with demand changing both drastically in the short term
and gradually over the long term, but one thing is certain. The
best option is not simply following a trajectory by extrapolating
the trend before the spread of the infection. We will need strong
commitment to adapt to the “new normal” that is the with- andthe post-COVID-19 world.
In addition, to reach and continue to be at the global
forefront, we must identify change more effectively than
before and promptly respond to it. However, continuing toenhance our strengths and create new value while developing
greater harmony with all people, goods, the environment andothers related to the Group is also an essential part of theevolution of business management that is the goal of the
Yokowo Group. We have discussed the actions we should taketo achieve the above, and have collected this in the new
medium-term management plan.
* CASE: An acronym for the new trend in automobiles:
Connectivity, Autonomous, Shared, Electric

14

Yokowo 2020 Integrated Report

Toward the 100th anniversary of our founding in September
2022, the title of the new medium-term management plan is“Go Beyond: Challenge the Next Stage”, to evoke our belief
that our goal is to transcend the present situation and advanceto the next stage.
The outline of the plan is as follows.

1. Promote management innovation company-wide■ Realize business operations that are directly linked to theneeds of our customers■ Strengthen our capabilities to manage manufacturing

proficiencies and integrate responsibilities for businessincome and expenditures and the authorities for achieving
the income and expenditure plans■ Realize the visualization of profit performance by productand improve capital efficiency

2. Product innovatoin that transforms the risks ofchanges in industries and markets into opportunities
for business■ Revitalize our business structure through sustained effort todevelop new markets and introduce new technologies andthrough strategic withdrawals from unprofitable businesses

3. Strengthen systems that
support product innovation■ Intellectual property strategy■ Establish elemental technologies■ Strengthen cooperation between the business divisionʼs

technologies and research and development (including
external networks)

4. Evolve process innovation tomeet customer expectations■ Develop product innovation based on the new 5S* principle

using AI and other advanced technologies in all businessprocesses* Simple, Slim, Small, Short and Smooth

By steadily promoting the corporate priorities above, we aim toensure the achievement of the medium-term basic managerial
objectives and consolidated performance objectives.

Medium-term Basic Managerial Objectives
Stable realization of Minimum 8
Consolidated Performance Objectives
in the New Medium-term Management Plan
(Fiscal year ending March 31, 2023)

Consolidated net sales: ¥ 72 billion
Operating income:Ordinary income:¥ 7.2 billion (operating margin: 10%)
¥ 7 billion

Profit attributable to owners of parent: ¥ 5 billion

Moreover, we are determined to drive forward initiatives in thefollowing three areas as measures to be enacted over a period
longer than the period of the medium-term management plan.

1. Basic researchCentering on micro precision processing technology andmicrowave (high frequency) technology, the core strengths of
the Yokowo Group, we will work to invest in and enhance thesystem for basic research, a key driver of long-term growth.

2. Digital transformation (DX)By improving productivity and efficiency at each site fordevelopment, procurement, production and marketing, we willpromptly provide value to customers. Moreover, we aim tocontinue to improve the speed of management decision-making
and our responsiveness to change by reinforcing real-timecooperation between these sites and the headquarters.

3. The SDGs
We will work on the three top-priority issues of the environment,
local communities and diversity and inclusion, which have been
extracted through a materiality identification process and aim toachieve KPIs set for each measure (for details, please see P.20 toP.22 of this report.)
By steadily and vigorously pushing ahead toward these goals,
we will establish resilient strength that does not waver during
upheaval and that enables appropriate and prompt responses
to successive and drastic changes. We will strive to collaborate
with our stakeholders in our efforts to create new value.

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 in and outside Japan. As I wrote in the section
about materiality, I think that a better company is:■ A company about which customers say, “It was good that

we have conducted business with Yokowo. We will expand
our business 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.”■ And most importantly, a company where the employees of

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 thatthe officers and employees of the Yokowo Group in andoutside Japan, regardless of nationality, gender and other
differences, are content and fulfilled in their work, and have afoundation of reliability and trust.
Through the evolution of our technology, we will continue
to offer quality products and services to improve customer
satisfaction. We will contribute to local communities which werely on to ensure that we are welcomed by them and to bringsatisfactions to our neighbors. As a resident of this world, we
will contribute to solve climate change and other issues topreserve the natural environment that sustains lives of people
around the world, including our stakeholders. Based on theabove, we have the three top-priority issues: the environment,
local communities and diversity and inclusion.
One mission of the Yokowo Group is to operate our businessand make a profit as a group engaging in commercial
businesses. We recognize that now, it is not simply the volume
of profits generated from our growth potential and the
profitability of our business that is strongly demanded, but also
the quality of the profits that should reflect equal, fair andproper business operations, and together, the results of abusiness operated in this way should lead to social contribution.
While working to achieve the new medium-term management
plan and the long-term measures, we hope to become a goodcompany for our shareholders and investors by increasing boththe volume and quality of profits, expanding profit distribution
and by improving our quality and dignity as a company.
We offer our appreciation to all of our stakeholders and lookforward to your continued understanding and support in the future.

Yokowo 2020 Integrated Report15

Yokowoʼs Value Creation

Yokowoʼs Value Creation Process
While utilizing our “6 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(FY2019)◦Production capital

VehicleCommunication
Equipment

・Non-current assets:¥14.87 billion
・Capital investment:¥3.62 billion

Details → P.9◦Intellectual capital

Proposing products needed by
future generations, utilizing ourcore technologies
Details→P.24

666
45

・Patents held:
・Designs:
・R&D expenses:

1. Development¥3.59 billion

2. Procurement

Carrying out green procurement◦Human capital

3. Production

8,543

・Employees:

Building the worldʼs preeminent
local production system

4. Sales◦Financial capital・Total assets:¥48.13 billion

・Cash & cash equiv.:¥12.35 billion◦Social & related capital

4・Overseas group companies: 17
・Domestic group companies:

Circuit Testing
Connector
Details → P.10

Expanding sales to 7 cities in theAmericas, and 10 countries andregions in Europe, Asia, andaround the world
Details→P.4

Basic Management Policy
Quality first・Electricity:
・Water:35,592 MWh
430,093 m3

Promotion of evolutionary
business management(4 innovations)Technology-based enterpriseMulti-layered businessstructure

Global business base

16

Yokowo 2020 Integrated Report

Details → P.11

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

Wireless
Communication
EquipmentKey Outputs

Value Provided to Society(FY2019)

Reduction in environmental
impact◦Sales
¥60.59 billion

Addressing social issues
Related SDGs*

Innovations in information &communication technology

Providing minimally invasive
medical equipment◦Representative
products

Improvements in daily safety
and comfort

Vehicle Communication
Equipment
・Shark Fin Antennas

Improved traffic and transport

・GNSS Antennas

Circuit Testing
Connector

Improved, more resilient social
infrastructure

・Probe Cards
・Hi-Giga Sockets

Wireless Communication
Equipment
・Spring Connectors

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.

Achieving Our Mission◦Reduction in
CO2 emissions▶Corporate Mission

Year-on-year-139t-CO2

At Yokowo, we consider our corporate mission to be “to create asustainable society, Yokowo responds to the needs of advanced
companies that are undertaking structural reforms, and helps tocreate the future by offering high-quality products backed by its
core technologies.”

Yokowo 2020 Integrated Report17

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 (high frequency)
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 to achieve highlevels 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 5G (5th generation mobile communications systems),
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 communication and semiconductor testing.

Micro Precision
Process

Process
Development

Commercialization
Research

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

Production Process

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

Design Process

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

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
and universities, Yokowo is also promoting product evolution and a multi-layered business structure.

Applied Research

18●

System proposals related to building social platforms that utilize wireless technology and software development capabilities●

Development of high-speed optical communication devices and connectors, and automatic testing technology for wireless antennas
incorporated in semiconductor devices essential for the evolution in automated driving and 5G●

Turnkey system proposals for semiconductor testing tools

Yokowo 2020 Integrated ReportMulti-Layer
Building Products

Fields for Product Roll-Out

Vehicle Antennas●

Semiconductor testing

Expand and Strengthen

Software applications

Automated driving systems

Semiconductor Testing Tools
●

5G

●

Turnkey

Connectors forElectronic Devices●

Small, low profile, waterproof,
high current

Medical Devices●●

Precision parts
Assembly productsHigh frequency
device testing

Social Platforms●

Medical devices

Strategic Development

Connectors forelectronic devices

Car sharing●

DronesHigh Frequency Device Testing
●

Amps

●

Filters

Optical Communications●●

Connectors
Photoelectric conversion

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

Vehicle antennas

Precision Plating
●

Wet

●

Dry

Yokowo 2020 Integrated Report

19

Yokowoʼs Value Creation

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

Be a company that customers and theircustomers feel comfortable working with“Make Yokowo a good company” ̶ Three Wills● 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)
Establishment and operation of Green Procurement Guidelines■ Be a company that customers and theircustomers feel comfortable working with
■ Be a company that society (including local

communities) and its business partners feel
comfortable interacting with
■ Be a company where employees and theirfamilies feel comfortable being employed

Process to Identify Materiality
Specific processes are as follows:(1) List themes considered by the company or
its stakeholders to be important based on
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)● Contribution to the conservation of biodiversity■

Climate change (reductions in greenhouse gases)■

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

Resource recycling (reductions in waste quantities, promotion of zero emissions)● Strengthened compliance and governance■

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)■

Avoidance of corruption, bribery, and anti-competitive behavior[Related SDGs][Activity theme]

Environment

More

20

Yokowo 2020 Integrated ReportBe a company that society (including local communities)
and its business partners feel comfortable interacting with
● Dialog with local communities and contributions to

Be a company where employees and theirfamilies feel comfortable being employed● Promotion and development of workforce diversity

and inclusion

their development■

Employment of local residents■

Donations to local governments, and sponsorship of local events■

Donations to Tomioka City in Gunma Prefecture and Kita City in Tokyo tosupport medical facilities to treat COVID-19■

Trash cleanup activities around the Tomioka plant■Participation in Eco Cap activities■

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■

Through the Tomioka Chamber of Commerce & Industry, work in collaboration
with the municipal government to promote solutions to local issues■

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

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

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,and through improved living environments we will contribute to regional
interaction and revitalization.

■

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, and expanding and reinforcing this throughout the PDCA cycle
Revising and promoting the action plan in accordance with the Act on
Advancement of Measures to Support Raising Next-Generation Children,and expanding and reinforcing 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● Achieving an appealing, rewarding work environment● Fulfilling social responsibility throughout the supply chain■

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)■

Multi-layered product sites (Vehicle Communication Equipment segment:
establishment of a third production base)■Construction of a fault-tolerant supply network(duplicated lines and networking)■

Strengthened support system with Tier 2 and Tier 3 suppliers● Establishment of a global BCP system, and constant testing

to improve its effectiveness● Building of a check system in cooperation with local

governments and NPOs to eliminate child labor andunethically mined resources, etc.

[Related SDGs][Activity theme]■

Improving work-life balance by establishing a teleworking system■

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

Improve employee satisfaction by expanded support for injury and illness
prevention and treatment■

Establishment of awards system, including for social contributions■

Get-together Interactive meetings(product technologies, production technologies, QC)■

Establishment of a global employee promotion and HR treatment system■

Establishment of an Advanced Technical Research and Development Centerto provide an appealing working environment for technical personnel■

Offering advanced technical training opportunities (AI and other graduate
education, business school, external research organizations)● Expanding long-term training and apprenticeship programs inJapan for employees in locations overseas thus improving theirabilities, and strengthening the business mindset of Japaneseemployees through interaction with these employees[Related SDGs]

Local Communities[Activity theme]

Diversity and Inclusion

advanced business activities and social contribution
GO BEYOND〜Challenge the Next Stage〜

Yokowo 2020 Integrated Report

21

Yokowoʼs Value Creation▼ Targets and performance indicators for materiality

Targets for 2030
Materiality

Be a company that customers and theircustomers feel comfortable working with

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

Contributions to treatment of
illnesses and rare diseases

Contributing to the conservation of biodiversity

Performance Indicator

Target Value

Number of innovative medical devices createdbacked up by IP (annual)5

Establishment of micro precision and microwave
laboratories

Established

Number of treatments provided to the field of
rare diseases with low patient numbers andwithout established treatment methods (annual)

3

Greenhouse gas emissions (basic units)

10% reduction
over FY2020

Water usage (basic units)

10% reduction
over FY2020

Generated waste (basic units)

10% reduction
over FY2020

Number of major compliance violations (annual)0

Strengthened compliance and governanceBe a company that society(including local communities)
and its business partners feel
comfortable interacting with
Be a company where employees and theirfamilies feel comfortable being employed22

Training participation rate (annual)

100%

Dialog with local communities and contributions
to their development

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, andconstant testing to improve its effectiveness

BCP strategy-based best mix of overseas anddomestic production

BCP certification

Building of a check system in cooperation withlocal governments and NPOs to eliminate childlabor and unethically mined resources, etc.

In-house checks, and actively contributing to
the promotion of fair labor practices throughcollaboration 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 withlevels for males

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

Employment age limit
70 and above

Promotion and development of workforce
diversity and inclusion

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, andstrengthening the business mindset of Japaneseemployees through interaction with these
employees

Yokowo 2020 Integrated Report

120
150% of legally
stipulated ratio
90%

Number of on-site company nurseries established3

Number of workplace accidents (annual)2

Number of overseas long-term trainees
nominated (annual)

20

VOICE

Towards building a startup ecosystemthat solves the challenges facing thehealthcare industry, and contributes
to the achievement of SDGs

Hiroshi Igahara
Executive Officer cum General Manager,
MD Business Division“Make Yokowo a good company.” This phrase isalways being repeated by Yokowoʼs President
Takayuki Tokuma, and represents guiding principles
for officers and employees when making daily
management and business decisions.
At Yokowo, we started our Medical Devices
business in 2006. The key leader in starting up thisbusiness was President Tokuma, who was at the timeworking as an officer in charge at the Management
Planning H.Q. for new businesses. This includes astrong desire to link our core technologies directly to
making a contribution to society. In 2017, I was
appointed to the position of General Manager of the
MD Business Division. While contributing to society
through our business, I wanted every single employee
to feel a sense of fulfillment in playing their parts.
At the same time, I realized the difficulty of achieving
this on our own.
It was at this juncture that we met Kazuya
Shobayashi, the CEO of Biomedical Solutions Inc. In
exchanging opinions with Mr. Shobayashi about the
medical industry in Japan, we shared issues such as
Japan lagging behind in developing medical device
ventures, and Japanʼs medical industry being heavily
dependent on imports̶we agreed to work together
in order to resolve these issues.
During our discussions, in which I included stories
of my own experience in start-up business investment
and M&A, Mr. Shobayashi presented a proposal for astartup ecosystem as a framework for the domestic
development of medical devices at the Council for

Promotion of the Next-Generation Medical Equipment
Development sponsored by the Cabinet Secretariat in2018. In full agreement with this, Yokowo has
assumed a role as the manufacturing partner in thisventure in order to bring these innovative productideas to reality.
With Mr. Shobayashi, universities, and venture
capital developing the vision and concepts, they havecome up with plenty of product ideas, centeredaround innovative developments, with many related
to the treatment of rare diseases. For Yokowo, 2020
has already seen cooperation started with three
medical device startups (investment completed in two,and under consideration in one), and we plan to begin
cooperation with several more companies within theyear. At present, this initiative is situated as animportant part of our future strategy for our Medical
Device business.
Regarding this initiative, we have heard from anexternal director that “startup ecosystems arefundamental to SDGs,” and from many members ofbusiness divisions that they felt they were contributing
to society more than as in their daily business, and thatthese gave them a sense of fulfillment. For myself, I am
convinced that these initiatives will help bring aboutboth a better company, and a better society.
Looking forward, while working together withvarious parties in the medical industry, I am
determined to fulfill my responsibilities as the leaderof the business in contributing to bringing this startup
ecosystem to success.

Yokowo 2020 Integrated Report

23

Yokowoʼs Value Creation

Research and Development
The Yokowo Group has set the five fields of micro precision processing technology, microwave (high frequency)
technology, antenna technology, surface modification materials technology, and semiconductor application
technology as the Companyʼs core technologies supporting its competitiveness in the marketplace. Throughgreater sophistication and wider use of all its technologies, Yokowo is building a multi-layered businessstructure to create innovative, high-tech products.

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

Product Design Research

Production Engineering

Microwave
technology

Micro precision
processing
technology

Advanced Product Creation

Stable Supply of
Advanced Products

Semiconductor
application
technology

Antennatechnology
Wireless
communication
technology

Surfacemodificationmaterials
technology

Material evaluation
technology*1
Ceramic
technology*1

Automotive

Social infrastructure(MaaS/ETC)
SoftwarePackagingTechnology

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 form the wheels of a car in Yokowoʼs basic and applied research. With the two running insync 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.
(Product Development Supervision,
Intellectual Property)

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

Production Process
Innovation H.Q.
(Basic technologies andresearch 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 high-frequency,
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
the whole product development process. Likewise, the Production Process Innovation H.Q. is in charge of research related to the
production process, and the Management Planning H.Q. is in charge of new technology and new business incubation.

24

Yokowo 2020 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.
In the fiscal year ended March 31, 2020, Yokowo invested
3.59 billion yen in research and development, and plans towholeheartedly strengthen its R&D activities in the next fiscal
year and beyond.

Over the medium to long term, Yokowoʼs main markets,
namely the automotive, semiconductor testing, mobile
communication terminals, and medical device markets, areexpected to grow in size due to: advances in new eco-friendly
vehicles such as plug-in hybrids and electric vehicles as well as
advanced driver-assistance systems (ADAS) and automateddriving; the actualization of new semiconductor demand fornext-generation high-speed, large-capacity communications
typified by 5G; the rise of next-generation products such as
wearable devices; and the spread of minimally invasive
treatment and advances in genetic testing technology.
The main R&D themes for each segment related to the above
markets are as follows:▼ R&D expenses

Vehicle Communication Equipment(million yen)
4,000

3,260
3,000

3,592

■ Antenna system for V2X*3 essential for ADAS*4 andautomated driving*3 Vehicle-to-everything communication. E.g. Vehicle to vehicle, road, pedestrian

2,636*4 Advanced driver-assistance system2,105■ Technology development for communication systems,

2,000

equipment and devices for the CASE era

1,000

Circuit Testing Connector■ Development of test sockets for high current compatible ICs

0

2016

2017

2018

2019
(FY)

and high-speed, high-frequency ICs■ Research and development on better performance anddurability, e.g. probe surface modification technology■ Development of new probe cards to keep pace with narrowerIntellectual Property Rights

semiconductor pitch, more pins, and higher speeds andfrequencies

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.

■ Development of high rated connectors■ Development of optical connectors for high-speed opticalcommunication■ Joint development of new minimally invasive medical(case)
800

equipment and testing systems with universities and medical
institutions in Japan and the United States that utilize micro
precision processing technology and microwave technology

737
658

600

526

453

411

394
320
253

200

2016

2017

284

247

206

141
0

Fine Connector business

Medical Device business▼ Patents held

400

Vehicle Communication Equipment

2018

2019
(FY)

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

Yokowo 2020 Integrated Report25

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 throughthe 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

Technology
Research &Development

・Exclusive Analog RF Semiconductor
・Ultra Fine Pitch Microwave Contactor
・Advanced Millimeter-Wave Module
Technology/Measurement Technology

・Ferrite Material Technology

Automotive Market▼ Vehicle Communication Equipment Business Domain

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.

By combining Yokowoʼs production engineering
for increased production efficiency with its coretechnologies of micro precision processing
technology, microwave (high frequency)
technology, antenna technology, and surface
modification materials technology, the Company
is able to develop products with innovation andcreativity. Amassing technical expertise withgreater sophistication, Yokowo remains
committed to the fundamental research anddevelopment of new core technologies.
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 theseproducts and more to the automotive,
semiconductor testing, mobile communication
terminals and medical device markets.

Connected

AM/FM

Navigation

DigitalBroadcasting

Telematics

Electronic Toll
Collection/
Dedicated
Short Range
Communications

Solutions

Shark Fin
Antennawith built-in
cameraHigh 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

26

Yokowo 2020 Integrated Report

5G compatible anechoic chamberSemiconductor Testing Market
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.

▼ Circuit Testing Connector Business Domain

MEMS Technology
Contact Bumps

Core Connector
Technologies for
Semiconductor
Testing

Micro Precision
Processing
Technology

Ceramic Technology
Microfabricated Parts

Mobile Communication
Terminal Market

Microwave
Technology

Evaluation Systems▼ Features and Main Uses of the Spring Connector

4 Features

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 important incommercial information devices. Yokowoʼsproprietary spring connectors accurately capture
these market needs, becoming used more widelyin a variety of applications.

High Reliability

Space Saving

Design FreedomHigh Durability

Main Uses
Video equipment

Information equipment

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 acomplete service from product processing andfinished product assembly to hydrophilic coating,packaging and sterilization. In the assembly
process, various connections methods can beselected 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 2020 Integrated Report27

ESG Report

CSR Foundation
In recognition of its social responsibilities and constant aim to enhance corporate value, the Yokowo Group has
established a CSR promotion system so that it can meet the expectations of all its stakeholders and carry out
reliable corporate activities, as well as expand its business activities as a trusted company.

Approaches to CSR

Three Priority Issues

The Yokowo Group will aspire to increase corporate value, andto both fulfill our responsibilities towards employees and ourshareholders, and contribute to the development of asustainable society.
To achieve these goals, we have put forth its Policy on
Corporate Social Responsibility and its CSR Code of Conduct,
which together define the “Orientation of Activities” and“Guiding Principles.”Themes extracted and analyzed using our materiality
identification process (→ P.20) are broadly categorized into
what are considered the three priority issues of “environment,”“local communities,” and “diversity and inclusion.”

Details of CSR Activities
The Yokowo Group has its origin in the manufacture of micro
precision components, and we are currently developing avariety of products that utilize our micro precision processing
and wireless communication technologies. As such, we aredeveloping business activities centered around the
manufacturing industry, positioning energy consumption andCO2 emissions as issues of utmost concern, and are thus
promoting our global environmental preservation activities.
We have also been actively involved in activities that contributeto local communities, including supporting the development oflocal human resources and the development of local industries.
At the Yokowo Group, as well as clarifying the ideas thatwill serve as the foundation for the further promotion of our
CSR activities, we have carried out a materiality analysis withthe concept of “Yokowo in 10 Years” in mind, and identified
three priority issues. We feel that actively working to solvethese problems will lead to the making our corporate missionof “contributing to a sustainable society” to realize.
Looking forward, we hope that our stakeholders willcontinue to consider that “Yokowo is a good company.”
To this end, the Yokowo Group will strengthen our initiatives
in non-financial fields, aiming to constantly increase ourcorporate value, and striving to contribute to the developmentof a sustainable society.

28

Yokowo 2020 Integrated Report

Environment
To ensure that future generations inherit a healthyplanet, the Yokowo Group recognizes that
conducting business activities in harmony with theglobal environment is an essential responsibility for a
corporation, and all the Group companies implementa range of global environmental preservation
activities on an ongoing basis.

Local Communities
Given the trend towards the advanced informationsociety in which the Yokowo Group finds itself, it isessential that the Group maintains harmony withlocal communities in order to continuously carry out
its business activities. We feel that ongoing supportand development activities for local communities
including educational support for local humanresources, active participation in local events andactivities, and harmonious coexistence with business
partners is important to gain the appreciation of
the community, and to develop alongside it.

Diversity and Inclusion
The Yokowo Group believes that an environment inwhich all Group employees, without regard togender, ethnicity, or other factors, can actively
participate in their work is the driving force behind
our growth as a company. In this approach, as well
as working in hiring and training human resources,
we are also promoting diversity and inclusion.

expand the content of our activities by incorporating this into
our CSR framework.
Additionally, the Yokowo Group will position theseapproaches to CSR together with the three priority issues asbasic policies, and contribute to the development of asustainable society by engaging in activities having an impact
on the economy, environment, and society in a transparent
manner and with a high sense of ethics.

Basic Policy on Corporate Social
Responsibility (CSR)
In order to further clarify the orientation of its CSR activities,
the Yokowo Group has formulated basic policies for each of
the three priority issues. Additionally, we have positioned
governance as a “fundamental part of CSR,” and plan to▼ Basic policies for three priority issues, and expanded policies for governance

Environment

Local Communities● Coexistence with nature

Diversity and Inclusion● Community-based activities

Contributions to handling climate change,
effective use of water and other limited
resources, and the conservation of
biodiversity● Promotion of diversity and inclusion

Donations to local governments, participation
in local events, and the promotion ofneighborhood cleanup activities● Sustainable initiatives

Coexistence and mutual prosperity withour business partners and customers● Reducing environmental impact

through our business activities

New product development andmanufacturing innovations working
towards the highest quality as well aszero hazardous chemical substances● Achieving an appealing,

rewarding work environment● Activities that contribute tocommunity development

Contributions to education funds, cultural
heritage maintenance and incentive funds,
and disaster relief funds, etc., as well as
support for school education, university
industry-academia collaboration and local
employment● Protecting the global environment, andachieving a recycling-based society

Promote a move to zero waste throughreductions and recycling for waste

Establish business management processes
that facilitate cooperation with overseas
human resources and the employment andtraining of specialists

Based around our employee-first philosophy,
improve work-life balance, and expand theawards system and the global employee
promotion and handling system

Governance
CSR grounded in corporate governance
Strengthening Corporate Governance• Ensuring management transparency• Functional improvements to the Board of Directors• Enhanced compliance structure• Strengthened risk management

Improved Information Disclosure• Promotion of dialog with stakeholders• Fair and timely disclosure● Structure to improve governanceFurther strengthen the management audit function through the appointmentof two highly independent outside Audit & Supervisory Board Members, anduse the Board of Directors consisting of only a limited number of directors inorder to speed up the decision-making process● Analysis and evaluation of the effectiveness of the Board of Directors

Further improvements to the effectiveness of the Board of Directors throughself-evaluation surveys and interviews with all its directors and auditors, andthen collecting and analyzing the results

Yokowo 2020 Integrated Report29

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(3 internal and 2 outside directors). The Company has
appointed two highly independent outside directors tofurther strengthen the management supervisory function.

Recognizing that Yokowo exists today through the support ofits 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 businessexecution, and an Audit & Supervisory Board that performs
management audit functions.

By adopting the Executive Officer system, the strategic
decision-making and operational supervisory functions are clearly
separate from the executive function, creating a system forprompt and appropriate execution of operations. In addition to
three internal directors, the Company has appointed nine
executive officers in the positions of Chief Officer, General
Manager, and General Manager at Tomioka plant, etc.

▼ Corporate Governance Structure (As of October 1, 2020)
General Meeting of Shareholders
Elect
Board of Directors

Elect

Audit
outsideSuperviseElect

Audit & Supervisory Board
Cooperate

Audit

Independent Auditors
Cooperate

Management/Supervision

Audit

Business Execution

President and Executive Officer
Business Risk Management Committee
Internal Audit Dept.
CSR Promotion Dept.

Management Planning H.Q.
Administration Management H.Q.

Sales H.Q.
Technical H.Q.

VCCS
Business Div.

CTC
Business Div.

FC
Business Div.

Core Technology Development H.Q.

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

Business Organization

30

Yokowo 2020 Integrated ReportIn the same way, with regards to compensation for theInitiatives to Improve GovernanceWith a limited number on the Board of Directors, the board canmake quick decisions. Yokowo will continue to strive to further
improve the transparency of the decision-making process.
As well as sharing information and exchanging ideas inadvance of the Board of Directorsʼ agenda, the Companyʼsoutside directors share, to a necessary extent, matters ofdeliberation and reports from the Audit & Supervisory Board.
Full-time internal auditors ensure compliance andappropriateness by attending important monthly meetings
to regularly monitor how business is carried out.
Furthermore, the Company has established the Business
Risk Management Committee as an organization under the
direct control of the President. Its aim is to strengthen the
Companyʼs competitiveness and ability to manage risk, such as
by forming alliances through joint ventures, mergers andacquisitions to further advance business, and by verifying the
profitability of large-scale investments. In addition to regular
reports to the Board 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 interviews with all its directors and auditors,
collecting the results and analyzing them.
For the surveys and interviews carried out in June 2020,
the effectiveness of the Companyʼs Board of Directors wasdeemed to be, on the whole, sufficient. Nonetheless, Yokowo
will systematically work on improvements and measures on all
issues and demands to further improve the effectiveness of
the Board of Directors.

auditors, an upper limit for the total compensation in eachbusiness year is set by resolution at the General Meeting of
Shareholders. Individual compensation is then determined within
the bounds of the upper limit through consultation with auditors.

Compensation for Directors
Compensation for the Companyʼs directors consists of both afixed compensation and executive bonus in monetary terms.
Based on guidelines set in advance through internal
regulations, the amount of fixed compensation is prepared by the
President after taking into consideration the business results ofthe previous fiscal year, the management plan of the current
fiscal year, and the roles of each director, etc. Fixed compensationis then deliberated on and decided by the Board of Directors.
Executive bonuses are payable only to internal directors whoare executive directors. Bonuses, and the total bonus amount,are determined based on consolidated operating profit foreach consolidated fiscal year. The President initially decides
bonus amounts taking into consideration both the duties andresults of each internal director. Bonuses are then deliberated
on and decided by the Board of Directors.
As a general rule, internal directors are obliged to contributea certain amount or more of their fixed compensation to the
Executive Shareholdersʼ Association every month as stipulated
by internal rules. Directors shall, in principle, while in theirposition of director, hold their shares and not sell them.

Compensation for Auditors
Compensation for auditors is limited to a fixed compensationin monetary terms. The amount of fixed compensation isdetermined by discussion among the auditors at the Audit &Supervisory Board meeting held immediately after the General
Meeting of Shareholders, taking into consideration the duties
and roles of each auditor and based on guidelines stipulated ininternal rules.
In the event of bonuses to auditors, these are paid after
approval at the General Meeting of Shareholders.
▼ Compensation Figures(million yen)

Director and Executive Officer
Compensation
Policy on Determining Director andExecutive Officer Compensation
With regards to compensation for the directors of theCompany, an upper limit for the total compensation in eachbusiness year is set by resolution at the General Meeting of
Shareholders. Compensation for individual directors is thendetermined within the bounds of the upper limit by resolution
at the Board of Directors.

Upper Limit(annual)Directors(outside)

280
(20)

Fiscal 2019
Fixed
Compensation

130
(12)

Executive
Bonus

Total

34
(̶)

164
(12)

Auditors

40

30

̶

30

Total

320

160

34

194

Yokowo 2020 Integrated Report31

ESG Report

Directors, Auditors and Executive Officers(As of June 25, 2020)

Board of Directors
Takayuki Tokuma

Kouichi Fukagawa

Kenji Yokoo

Representative Director,
President and Executive Officer

Director,
Senior Managing Executive Officer

Director,
Managing Executive Officer

Attendance rate at Board of
Directors Meetings:
16/17 times (94％)

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Number ofCompany shares held:
255,595 shares

Number ofCompany shares held:
49,924 shares

Number ofCompany shares held:
87,807 shares

August 1988 Joined the Company

April 2005 Joined the Company

April 1985 Joined the Company

June 1995

Director

June 2006 Executive Officer

June 2007 Executive Officer

June 2003

Executive Officer

June 2013 Managing Executive Officer

April 2017 Managing Executive Officer

June 2004

Managing Director

June 2015 Director, Managing Executive Officer

June 2006

Director, Managing Executive Officer

June 2017 Director, Managing Executive Officer(to present)

April 2007

Representative Director, President andExecutive Officer (to present)

June 2016 Director, Senior Managing Executive Officer(to present)

Mr. Takayuki Tokuma has led the business expansion/
evolution of the Companyʼs primary businesses, including
the development/sales expansion of micro antennas asGeneral Manager/Company President for the Vehicle
Communication Equipment business, as well as
advancing into the BGA socket area in the Circuit Testing
Connector business, promoting overseas sales of the Fine
Connector business and overseeing the start-up of theMedical Device business, and thus has a thoroughunderstanding of all Group businesses.
Moreover, he supervises the whole Group as
President and Executive Officer, under the slogans of“multi-layered business” and “permanent evolution.”

October 1983

Mr. Kouichi Fukagawa has led business acquisitions,introduction of new technologies, and the acquisition of
new customers for the Circuit Testing Connectorbusiness. He has also contributed to the establishment/enhancement of the information security structure as
Chairman of the Information Security Committee, andpromoted the acquisition of ISO 27001 certification (theinternational standard for information security) for theCompany and its major subsidiaries.
He has been leading enhancement of the Groupʼsbase, including corporate governance, compliance andCSR (Corporate Social Responsibility) activities, as well as
prevention countermeasures against COVID-19, as the
Executive Officer in charge of Management Planning and
Administration Management H.Q. since February 1, 2020.

Kuniko Muramatsu

Hajime Shioiri

Outside Director

Outside Director

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Attendance rate at Board of
Directors Meetings:
13/13 times (100％)

Number ofCompany shares held:
0 shareNumber ofCompany shares held:
0 shareJoined Texas Instruments Japan Limited

September 2009 Resigned from Texas Instruments Japan Limited
January 2010

Representative Director, Wellness Systems Institute (to present)

June 2016

Outside Director of the Company (to present)<Concurrent positions in companies and organizations other than the above>
Outside Director, NEC Networks & System Integration Corporation (to present)
Outside Director, Kyushu Railway Company (to present)
Senior Counselor, Japan Professional Football League (J. League) (to present)
Senior Researcher, Business Ethics Research Center (to present)
Ms. Kuniko Muramatsu held various posts including General Manager of the Public
Relations Department, Member of the Business Strategy Team, General Manager of the
Corporate Ethics Office and the officer in charge of diversity promotion at a foreignaffiliated semiconductor maker and now runs her own company, which she establishedafter resigning from the semiconductor maker. Utilizing her extensive experience, she isengaged in supporting the improvement of corporate ethics and the promotion ofdiversity, and continues to conduct practical research on corporate ethics.
At the Board of Directorsʼ meetings, she actively speaks up about corporate ethics
and diversity promotion from the perspective of corporate infrastructure and mid- tolong-term issues.

32

Mr. Kenji Yokoo has successively held important posts inthe Vehicle Communication Equipment business and theCompanyʼs mainstay business, and has made asignificant contribution towards the Companyʼs businessexpansion by taking the initiative in developing new
accounts with customers who are now major clients.
As Chief Officer of Administration Management
H.Q. after the collapse of Lehman Brothers, he has
played a leading role in enhancing the Companyʼs
global framework by promoting measures forcompany-wide profit structure reform and personnel
innovation (Innovations in Human Resources).
Since February, 2020, he has been the Executive
Officer in charge of the Vehicle Communication
Equipment business, of which he has thoroughunderstanding, and is placing the highest importanceon rebuilding the profit structure of the business.

Yokowo 2020 Integrated Report

September 1970 Joined Japan Management Association
April 1980
Joined JMA Consultants, Inc.
Senior Consultant
July 1992
Resigned from JMA Consultants, Inc.
July 2016
Chairman and Representative Director, SENDAI MANAGEMENT Co., Ltd.
June 2019
Chairman and Executive Director, SENDAI MANAGEMENT Co., Ltd.
(to present)
Outside Director of the Company (to present)<Concurrent positions in companies and organizations other than the above>
Not applicable.
Mr. Hajime Shioiri has been engaged in business management consulting activities
over the years. In corporate management, he served as a representative director of amajor consulting firm and runs his own consulting firm. He has worked in a wide
range of industries from metal manufacturing to retailing, and has been involved in awide variety of important projects, including sales strategy planning, businessrestructuring support and M&A advice.
At the Board of Directorsʼ meetings, he actively speaks up about the direction ofbusiness strategies and technological evolution from the perspective of mid- tolong-term management issues.

Audit & Supervisory Board Members
Yasushi Mashimo

Tooru Furuta

Toshiaki Tochigi

Audit & Supervisory Board
MemberOutside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Attendance rate at Board of
Directors Meetings:
17/17 times (100%)

Attendance rate of the Audit& Supervisory Board Meetings:
17/17 times (100%)

Attendance rate at Audit &Supervisory Board Meetings:
17/17 times (100%)

Attendance rate at Audit &Supervisory Board Meetings:
17/17 times (100%)

Number ofCompany shares held:
31,153 shares

Number ofCompany shares held:
0 shareNumber ofCompany shares held:
0 shareJune 1989 Joined the Company
April 2005 General Manager,
Accounting Department
April 2006 General Manager,
Public Relations and Equity Department
April 2008 General Manager,
Internal Audit Department
June 2008 Audit & Supervisory Board Member(to present)
Since joining the Company, Mr. Yasushi Mashimo has
been consistently engaged in the operation of the
Accounting Department at H.Q. He oversaw control over
the Companyʼs management accounting and statutoryfinancial reporting on a consolidated and nonconsolidated
basis as Deputy Manager and General Manager of the
Accounting Department. He was also responsible for IR,
mainly for institutional investors, as General Manager of
Public Relations and Equity Department, and served as
General Manager of the Internal Audit Department. Basedon his long-term experience in the accounting field, he istaking a leadership role in the audit work for the Group(including subsidiaries) as a full-time Audit & Supervisory
Board Member who is familiar with the Companyʼsbusiness structure and flow and other related elements.

April 1970

Joined Toshiba Denki Kigu Co., Ltd.
(later renamed Toshiba Electric Appliances
Co., Ltd.)

April 1979 Registered as lawyer

June 2000

Director and Head of General Affairs
Department, Toshiba Electric Appliances
Co., Ltd.

April 2010 President, Daini Tokyo Bar Association
Vice President, Japan Federation of Bar
Associations

March 2005 Resigned from Toshiba Electric Appliances
Co., Ltd.
July 2005

Representative Director, Gunma Sougou
Staff Co., Ltd. (to present)

June 2009

Outside Audit & Supervisory Board Member(to present)<Concurrent positions in companies and organizations
other than the above>
Not applicable.
Mr. Tooru Furuta has a wealth of experience fromconsistently engaging in operations in the fields of
personnel and general affairs, such as personnel affairs,
recruitment, labor affairs, general affairs and complianceat a group company of a listed company, in addition toserving as a Labor Tribunal Commissioner from April
2007 through March 2016 while running the temporary
staffing firm he founded.

May 1995 Established Nozomi Sogo Attorneys at Law,
Partner Lawyer (to present)

May 2011 Deputy Director, Political Federation ofJapan Patent Attorney
June 2014 Outside Audit & Supervisory Board Member(to present)<Concurrent positions in companies and organizations
other than the above>
Outside Audit & Supervisory, Daikokuya Global Holding Co., Ltd.
Outside Audit & Supervisory, EPS Holdings, Inc.
Since admitted to the bar, Mr. Toshiaki Tochigi has
contributed to the development of the legal profession
over the years by establishing a law firm and serving on theboard of directors of industry associations. He has handled
a wide range of cases and has extensive experience incorporate law, including corporate governance, real estatetransactions and other civil matters.

Executive Officers
Takayuki Tokuma

Mitsuaki Okazaki

Masaki Shimizu

President and Executive Officer

Managing Executive Officer cum General Manager,
Tomioka Plant

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

Kouichi Fukagawa

Shinji Kusano

Naohito Odani

Senior Managing Executive Officer cum Chief Officer,
Administration Management H.Q.

Executive Officer cum Chief Officer,
Production Process Innovation H.Q.

Executive Officer cum Chief Officer, Technical H.Q. cum
General Manager, CTC Engineering Department

Kenji Yokoo

Tsuyoshi Sakata

Yoshiro Furumi

Managing Executive Officer cum General Manager,
VCCS Business Division

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

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

Katsuhei Yanagisawa

Hiroshi Igahara

Motoaki Matsuura

Managing Executive Officer cum General Manager,
VCCS Overseas Plant

Executive Officer cum General Manager,
MD Business Division

Executive Officer cum General Manager,
FC Business Division

Yokowo 2020 Integrated Report33

ESG Report

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

Approaches to Recruitment
The Yokowo Group carries out recruitment based upon its
corporate vision of “a sustainably evolving company that
accumulates technology to contribute to society and meet thetrust of customers, and challenges the creation of markets as awhole. Yokowo is a company united in commitment todiscovering and creating new markets.” So that we can continue
to be a sustainably evolving company, our goal is to build an
appropriate personnel organization from a long-term perspective.

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 theGroupʼs proprietary technology, we want to be a company
that while evolving, achieves persistent growth.”
The Yokowo Group in principle enhances our workforce byhiring 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.
In the fiscal year ended March 31, 2020, mid-career hires
comprised 57% of the total company-wide, meaning that weare a company at which both employees brought up with the
Yokowo culture and those who have experience in othercompanies participate.
Central to our companyʼs ethos is a culture of “openness” inwhich new graduates as well as mid-career employees can
succeed, and this is an environment in which they are evaluatedfairly. In this environment, the accumulated experiences of each
person can be utilized in the company, and these are being
sublimated through free and open-minded discussions, thus
leading to the business evolution and technical innovations
necessary for a sustainably evolving company.

Foreign employees active in Yokowo Group▼ Ratio of new graduate hires to mid-career hires*(As of end March 2020)

43％

57％

New graduate hires

Mid-career hires* Calculated as total registered with Yokowo▼ Changes in new graduate hires and mid-career hires*(FY2015 to FY2019)(Person)

50

49

45

40
30
20

29

25
13

17

16

20

18

18

10
0

2015

2016

New graduate hires

2017

2018

Mid-career hires

2019
(FY)

* Calculated per financial year as hires for Yokowo

34

Yokowo 2020 Integrated ReportGlobalization of Human Resources
Organization

The Yokowo Group will continue to promote theglobalization of our human resources organization,and through “Team Yokowo” that transcends nationality,
provide the world with cutting-edge technologies and products.

TISP Project

Employment and Living Support for Foreign Employees
Yokowo offers an environment within the company in orderthat new foreign employees can live and work in Japan withoutanxiety or concerns. Furthermore, in collaboration with the
Tomioka City, Yokowo is also at the same time providing
assistance so that foreign employees who may be unfamiliar
with Japanese culture can adjust to living in Japan.

Culture and Climate of Mutual Respect amongst a
Diverse Workforce▼ CDP (Career Development Plan) outline
友華汽車 指導官
総経理

個別育成計画シート

ＪＹＣ 指導官
担当役員

部門責任者

作成日 ：
氏名

所属部門

生年月日

※年齢・勤続は、（年齢

１． 10年後の期待する役割

）

部門責任者

現在

友華入社日

（勤続

）

ＪＹＣ来日

（勤続

）

専攻
分野

大学

２． 目指すべき将来像

・金型技術の責任者となり、改善を主導でき、部下に対する技術指導ができる。

・TOPマネージメントを目指し、経営に参画できる人材を目指す。

・金型技術部門における、部内の課題設定、目標設定、進捗管理を行い、確実に結果に結びつける推進力を持っている。

・新しい技術を導入できるように、日本の技術者と連携して常に新技術習得を図るとともに、将来のDYCにおける技術向上に向け必要なスキルや技術に関して、育成計画を立てられるようになる。

・JYCの金型技術者とのコミュニケーションを日々行い、自ら新しい技術の習得に励むとともに、部下に対する計画的な育成計画を作成し、将来の部門構成を考えることができる。

３．配置・役職・役割の今後の計画
年代

22歳

配属

画

23歳

2016
入社

計

2017
現地 日本語学習

At 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 ourmain plant̶the Tomioka plant (Gunma Prefecture). Hiring
criteria place no particular requirements as regards Japaneseconversational ability, and have a focus on expertise for midcareer hires, and potential for new graduates. Looking forward,
we aim to bring together 120 foreign specialists centeredaround the Tomioka plant.
With this project, we are actively recruiting foreign employees
living in Japan, and those living overseas. In particular at our
main manufacturing bases in China, Vietnam, and Malaysia, wehave in place a multi-year training program in Japan for new
graduate hires who have graduated from local universities inthose countries. 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 have completed their training in Japan return to work intheir own countries.

24歳

25歳

26歳

27歳

2018

2019

2020

2021

28歳

29歳

30歳

31歳

32歳

33歳

2022

2023

2024

2025

2026

2027

34歳

35歳

36歳

37歳

2028

2029

2030

2031

来日

日本（JYC）研修
技術本部
・生産技術
・製品技術

日本研修
生産技術
第2ステージ

海外拠点 生産技術部

生産技術研究室
生産技術２課

日本研修
生産技術
第3ステージ

海外拠点
生産技術部

Main Items in CDP● Expected role 10 years from now● Vision for the future● Future plans for assignments, positions, and roles● Checking progress of training plans

Etc.

▼ Changes in TISP human resources* (FY2015 to FY2019)(Person)

66

70
60

54

50
40

31

30
20

23
15

10
0

2015

2016

2017

2018

2019
(FY)

* Calculated per fiscal year as human resources for Yokowo

So that Yokowo can grow as a global company, in addition toensuring a corporate culture that allows contact with diverse
nationalities, cultures, ideas, and beliefs, we believe that anenvironment in which all Group employees can understandthese, and that fosters mutual improvement is necessary.
Furthermore, we would like to foster a culture and climate ofmutual trust and respect among our employees, who havediverse backgrounds.

Yokowo 2020 Integrated Report35

ESG Report

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
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 Management Officer
President & Executive Officer

constructed an information security management system(ISMS), and is working together with the entire Group toadvance its information security activities.
In December 2014, Yokowo head office and its three domestic
group companies acquired ISO 27001, the International
Organization for Standardization (ISO)ʼs information security
management system standard. Yokowo is also promoting theacquisition of this standard at its major sites.

Information Security Education
The Group considers the basis for information security to be foreach individual employee to have a high level of awarenesswith regard to information management, and works to keep all
officers and employees (including temporary staff) wellinformed 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
Handbook that details practices which should be followed
during the course of everyday duties.
▼ ISO 27001 Certification Status

2014

YOKOWO CO., LTD., 3 Japanese subsidiaries

2016

Chinese subsidiaries (3 locations)

2017

Malaysia subsidiary

Information Security Committee
Committee Chairman:
Senior Information Management Officer

Protection of Confidential Information
Committee Members:
General Managers,
Information Management

Committee Members:
General Manager,
Information Systems Dept.

Enhancement of Information Security
Under the Groupʼs Information Security Policy, Yokowo
recognizes the management of information security as one of
the most important issues in business management. In orderto manage the information assets appropriately, it has

36

Yokowo 2020 Integrated Report

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 Yokowo's business. Through compliance with theserules, Yokowo handles and protects, both strictly andappropriately, all information assets possessed by Yokowo,
and information disclosed to it by its customers.

Occupational Health and 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 towork without undue concern by always securing their safety, and that will strive to promote their mental andphysical health.

Approaches to Occupational Healthand Safety

Increasing Occupational Health and
Safety Levels

The Yokowo Group considers the internal and external issues
faced by health and safety-related organizations and the needsof workers and stakeholders, including employees, cooperating
firms, and visitors to the premises, then identifies risks andopportunities, establishes policies and targets, and promotes
occupational health and safety activities.

With a rise in interest of the Stakeholders in OH&S issues as a
backdrop, Yokowo has constructed an occupational health andsafety management system (OHSMS), and is working to advanceits OH&S efforts as the entire Group under the OH&S Policy.
In August 2020, YOKOWO CO., LTD. together with threedomestic subsidiaries and two Chinese subsidiary locationsacquired “ISO 45001” certification, the international standard

Occupational Health and Safety: OH&S
1. The Group shall give first priority to the health andsafety of Employees and Stakeholders and engage
in ongoing activities by complying with laws andother requirements related to occupational healthand safety.
2. The Group shall build, maintain and makecontinuous improvements of an occupational healthand safety management system.
3. The Group shall strive to improve OH&S and reduce
occupational health and safety risks by setting
objectives based on the identification of hazards andthe evaluation of the risks at the workplace.
4. The Group shall strive to increase the understanding
and awareness of employees about occupational
health and safety by providing the appropriate
training to create a healthy and safe workplaceenvironment.
5. The Group shall engage in continuous improvement
activities to achieve the objectives by documenting
the OH&S Policy as well as making it known to all
Employees and publishing it to Stakeholders.

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.

Promotion of Occupational Health and
Safety Activities
The Yokowo Group classifies its occupational health and safety
initiatives into the three categories of safety, health, and work
style, then conducts a risk assessment of each of these andcarries out occupational health and safety activities.

6. The Group shall strive to improve our OH&S
performance by participation and consultation with
our Employees.
Enacted: June 1, 2016

Ideal Form

Revised: October 14, 2019
An energetic
workplace▼ Occupational Health and Safety Management Framework

Work
style

Healthy mind and body
A healthy workplace

HealthChief Occupational Health and Safety Management Officer
President & Executive Officer

SafetyGeneral Managers, Health and Safety Management /Senior Health and Safety Management Officer

A safe and secure workplace
Eliminate unsafe conditions
Eliminate unsafe behaviors

Health and Safety Committee

Follow rules / Self-management / Compliance

Health and Safety Promotion Committee

Head Office, Tomioka Plant,
Domestic Offices

Domestic
Subsidiaries

Cooperative Company
in Tomioka Plant

Yokowo 2020 Integrated Report37

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.

Traffic Safety Instruction (Tomioka Plant)
In order to improve local traffic safety as well as the driving
manners of employees, the Tomioka plant is providing
instruction in traffic safety during commuting hours on theroads around the plant.
This initiative is carried out four times a year in accordancewith the Gunma Prefecture traffic safety action plan.

▼ Three Areas of Activities

Activities groundedin the community

Activities towards achievinga sustainable society

Activities that contribute tocommunity development

Support for Measures to Prevent COVID-19 Infections(Headquarters, Tomioka Plant)
In order to support medical locations that are struggling as aresult of the increase in COVID-19 infections, we have madedonations to Kita-ku in Tokyo, home to our headquarters, and to
Tomioka City in Gunma Prefecture, home to our Tomioka plant.

Community-based Activities
Tomioka Donto Festival (Tomioka Plant)
The Tomioka plant always participates in the “Tomioka Donto
Festival,” a two-day festival representative of the region held
every two years in the center of Tomioka City.
Many employees participated in the previous festival held in
October 2018, interacting with the local community in the
Odori Nagashi dance and the float and dance competition.

Employees who participated in the previous
Tomioka City Donto Festival (October 2018)

120

YUKA Volunteer Team(DONGGUAN YOKOWO CAR COMPONENTS
CO., LTD. [China])
In 2016, DONGGUAN YOKOWO CAR COMPONENTS CO., LTD.
(Hereinafter called Yokowo Car) formed the YUKA Volunteer
Team, which promotes activities to support the elderly andpeople with disabilities in the community.
These activities include holding volunteer events as well as
environmental conservation activities, and these see many
employees volunteering to participate.

Employees who have participated involunteer activities (2016 to present)

38

Yokowo 2020 Integrated Report154

Activities that Contribute toCommunity Development
Workplace Tours and Work Experience(Tomioka Plant)
Blood Drive (Yokowo Car)
In response to a request by the Dongguan city center blood bank,many Yokowo Car employees participated in a blood drive.
This initiative contributes towards constructing a systemcapable of providing safe treatment using blood transfusions.

Employees who participated in
the blood drive (July 2020)

150

The Tomioka plant conducts workplace tours and provides
work experience for high school students in Gunma
Prefecture ̶this is an opportunity for future leaders of thecommunity to choose a profession.
Employment support activities
for the next generation (August 2020)
Workplace tours

10

schools (8 days)

Work experience1school (5 days)

Tomioka City Invention Device Exhibition(Tomioka Plant)

Activities towards Achieving a
Sustainable Society
Cleanup Activities (Tomioka Plant)

In collaboration with the Tomioka Japan Institute of Invention
and Innovation and Tomioka City, the Tomioka plant is
supporting the Tomioka City Invention Device Exhibition. This
event has as its aim raising amongst children and the citizensof Tomioka City their awareness of ingenuity and inventiveness.

At the Tomioka plant, employees regularly carry out cleanupsof the surrounding neighborhood. This was carried out threetimes in 2019, in April, August, and December.

Yokowo 2020 Integrated Report

39

ESG Report

Environment
The Yokowo Group recognizes that conducting business activities in harmony with the global environment is an
essential responsibility for a corporation. The Yokowo Group continues to implement a range of Group-wide
environmental preservation activities based upon defined environmental policies in order that we can pass on ourirreplaceable global environment to future generations.

Approaches to the Environment

ISO 14001 Certification

Environmental Policy
Yokowo is committed to helping to create a richnatural environment. We seek to do this through ourenvironmental management system and throughactivities designed to achieve continuous
improvements in environmental performance. As partof our commitment, we take into consideration theenvironmental impact of our business activities andcomply with all relevant environmental laws,
regulations, and guidelines, as well as with eachcustomerʼs specific guidelines.

Action Guidelines

2. In respect of chemical substances which are harmful toboth the environment 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, and will minimize the use of hazardous
chemical substances.
3. Yokowo will comply with all relevant environmental
laws, regulations, and each customerʼs specificrequirements, and intend to enhance ourenvironmental management by our original internal
standards.
4. Yokowo will set objectives and goals for ourenvironmental activities and also improve ourenvironmental management system continuously
by periodically reviewing the objectives and goals.
5. Through in-house education and publicity, Yokowo
will promote all the employeesʼ recognition of
involvement in environmental preservation and will
make these activities take root as daily duties.
6. Yokowo ensures that all the employees including
those of affiliated companies are fully aware of theenvironmental policies, and will disclose them to the
public on request.
7. Yokowo will contribute to the development of asustainable society by considering the impact on
biodiversity in all its business activities.

40

Yokowo 2020 Integrated Report

Since its individual production bases receiving ISO 14001
certification in 1998, the Yokowo Group has continued with
its work in environmental activities.
▼ ISO 14001 certification acquisitions

1998

Tomioka plant
Domestic subsidiaries (2 companies)

2004

China subsidiary

2005

Malaysia subsidiary

2014

Vietnam subsidiary

Issues and Results of Activities

1. Yokowo will continuously and actively promoteenergy saving, resource conservation, and recycling
to contribute to the protection of the global
environment.

Enacted: June 1, 2005

Environmental Management Systems

Revised: April 1, 2014

The Yokowo Group reviewed its Medium-Term Environmental
Plan in 2014 and identified four issues that need attention̶
addressing climate change, management of water resources,
resource recycling, and working towards zero hazardous
chemical substances.
For this, Yokowo sets goals and activities to be achieved
each year.

Addressing Climate Change
The Yokowo Group is promoting a variety of activities towards
meeting the goal of a year-on-year 1% reduction in thegreenhouse gas (GHG) emission factor.
Through the promotion of employee awareness programs
as well as improvements to production efficiency and theintroduction of energy-saving facilities, we are seeing a yearly
reduction in GHG emission factor, however higher sales meanthat CO2 emissions are still increasing. Looking forward, we will
be working to reduce both GHG emission factor, as well as
overall GHG emissions.

Resource Recycling▼ CO2 emissions and emission factor
CO2 emissions (t)21,000Emission factor (CO2 emissions/sales)
0.480
0.428

0.405

20,50020,0000.5

20,361

20,1560.382

19,50019,00018,50020,2220.340

18,47818,754

0.3
0.2
0.1

18,00017,500

0.4

2015
2016
■ CO2 emissions

2017
2018
Emission factor

2019
(FY)

0.0

The Yokowo Group is working to conserve resources. As wellas promoting a reduction in the quantities of waste generated
by our business activities, we have also set an 80% recycling
rate as a target. Rapid increases in production in recent years
have seen quantities of waste trend upwards, and recycling
rates remaining steady, however we are planning further
reductions in waste generated through improvements at thedesign and production stages.
▼ Recycling rate
Waste (t)* FY2019 Electricity CO2 conversion factor is calculated using the following:
Domestic: TEPCO Energy Partner, Inc Basic Emission Factor
Overseas: IEA Official Factor

Recycling rate (%)

1,400

62.1

Of the water used within the Yokowo Group, the majority isfor domestic-type uses. We are working to achieve our goal ofa year-on-year 1% reduction in water consumption, measured
by consumption per employee.
Water savings and use of recycled water enable a certain
level of reduction, but the reductions have bottomed out overthe last three years, and new activities are being investigated.
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 arerecovering all hazardous chemical substances in discharge fromour galvanization processes, and have achieved zero emissions
into public waterways.
▼ Water usage and usage rates

5.220

430,000

415,408
417,187

410,000
390,000

4.999
4.426

420,000
400,000

Usage rate (water usage /employee)

430,093

5.0

421,329
4.432

6.0

4.338

4.0
3.0

388,077

2.0

53.8

59.4

828

1,052

1,150

70
60

956

800

Management of Water Resources

440,000

56.4

1,200
1,000

Water usage (m3)

63.0

1,249

50
40

600

30

400

20

200

10

0

2015
■ Waste2016
2017
Recycling rate

2018

2019

0

(FY)

Working towards Zero Hazardous Chemical Substances
Based upon the internal slogan “Quality, Cost, Delivery, andEnvironment̶An environmentally friendly manufacturing
process̶Living in perfect harmony with nature,” we comply
with relevant laws and regulations as well as customer
requirements, and are striving to manufacture products thatare not only friendly to the local environment but also to the
productsʼ environment.
This slogan implies that we should have a high awareness of
not only Q (Quality), C (Cost), and D (Delivery), all fundamental to
manufacturing, but also E (Environment)̶these are a constant,unchanging foundation for our manufacturing business.

Topics380,000
1.0

370,000
360,000

2015
2016
2017
Usage rate
■ Water usage

2018

2019
(FY)

0.0

In September 2020, we received third-party
certification (scope 1 & 2) for greenhouse gas
emissions. In the future, we will expand the scope ofmonitoring of our greenhouse gas emissions, andensure this information is disclosed to the public.

Yokowo 2020 Integrated Report41

Appendix

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

Net sales (million yen)
70,00017.8

16.2

60,00050,00039,99840,00054,75244,07730,00060,59515.0

51,919
10.7

10.2

2016
2017
Sales growth rate

4,916

2018

2019

0

0

3,135

2,516
5.7

1,057

1,000

(FY)

3,028

6.0

6.0
4.0
2.0

2.6
2015
2016
■ Operating income

2017
2018
2019
Operating income margin (FY)▼ Profit attributable to owners of parent(million yen）

(million yen）

4,583

8.1

5.5

▼ Ordinary income (full year)

5,000

3,440

3,500
3,000

4,000

2,911

2,608

3,000

3,286

2,500

2,381

2,337

2016

2017

2,209

2,000
1,500

2,000

1,000

822

1,000
0

2015

500
2016

2017

2018

2019

0

(FY)

412
2015

▼ Basic earnings per share▼ Net assets per share

(yen)

(yen)

200

1,400

169.85150

118.94115.82

1,200
1,000

109.18946.301,034.63

1,150.65

2018

1,209.36

2019
(FY)

1,306.58

800

100

600
400

50

20.61

0

2015

200
2016

2017

2018

2019

0

(FY)

2015

2016

2017

▼ Interest bearing debt*▼ Research and development expenses(million yen)(million yen)

12,00010,435

10,000

6,000
4,000

3,642

4,569

3,260

2,000

4,561

2018

4,000
3,000

7,589

8,000

2019
(FY)

3,592

2,636
1,898

2,105

1,000

2,000
0

2015

2016

* Borrowing + lease liabilities

42

Yokowo 2020 Integrated Report

2017

2018

2019

（FY）

0

10.0
8.0

4,000

2,000

5.5

10,000Operating income margin (％)

5,000

10.0
5.0

2015
■ Net sales

Operating income (million yen）

3,000

20,000

0

20.0

2015

2016

2017

2018

2019
(FY)

0.0

Non-financial Highlight▼ Percentage of female employees★
(persons)
1,000

（％）

12.5

800
600

▼ Employee turnover rate★

11.4

14

769

659

603

839

817
11.3

11.1

10.7

400

3.1

2.6
200
0

0.9
2015

1.3

0.9
2016

12

2017

2019

4.7

5.0

3.9

4.0

3.4

10
8

3.0

6

2.0

4
2

2018

（％）

0

2.6

1.9

1.0
0.0

2015

(FY)

Number of YOKOWO CO., LTD. employees
Percentage of female managers*1
Percentage of permanent female employees*2

2016

2017

2018

2019

（FY）

*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

▼ Employment rate of people with disabilities★

▼ Uptake of paid leave★

（％）

（％）

2.0

1.56

1.62
1.35

1.51

80

1.65

60

1.0

51.7

53.7

2015

2016

59.3

67.2

65.2

2018

2019

40
20

0.0

2015

2016

2017

2018

0

2019
(FY)

2017

▼ Number of older employees re-employed★

▼ CO2 emissions and emission factor(persons)

CO2 emissions (t)25

20,000

15
10

0

0.405

20,156

19,500

11

5

0.428

20,50019

20

Emission factor (CO2 emissions/sales)
0.480

21,00022

18,47818,50020,2220.382

18,75417,500
2016

2017

2018

2019

（FY）

0.4
0.3
0.2
0.1

18,000

2
2015

0.5

20,3610.340

19,000

8

(FY)

2015
2016
■ CO2 emissions

2017
2018
Emission factor

2019
(FY)

0.0

* FY2019 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
Water usage (m3)440,000

5.220

430,000

415,408
417,187

410,000
390,000

4.999
4.426

420,000
400,000▼ Recycling rate
Usage rate (water usage /employee)

430,093

5.0

421,329
4.432

6.0

4.338

4.0

2015
2016
2017
Usage rate
■ Water usage

2018

2019
(FY)

63.0
56.4

1,200
1,000

53.8

59.4

60

956
828

1,052

1,150

70

1,249

50
40
30

400

20

1.0

200

10

0.0

0

380,000
360,000

Recycling rate (%)
62.1

600

2.0

370,000

1,400

800
3.0

388,077

Waste (t)2015
■ Waste2016
2017
Recycling rate

2018

2019

0

(FY)

★: YOKOWO CO., LTD.
Yokowo 2020 Integrated Report43Appendix

Financial Information
Analysis of Operating Results and Financial Position in Fiscal 2019

Business Environment and Operating Results

Operating income was 4,916 million yen, up 62.3% year on year,

During the fiscal year under review (April 1, 2019 to March 31,

because of large increases in both the Circuit Testing Connector and2020), the global economy slowed overall due to destabilizing

Personal Communication Equipment segments despite a year-on-year

factors, including prolonged trade friction between the U.S. anddecline in operating income in the Vehicle Communication Equipment

China, rising geopolitical risk in the Middle East, and the problems

segment. As a result, the Group achieved all three targets in thesurrounding the U.K. withdrawal from the EU. The U.S. economy,

Minimum 8 (secure at least 8% in sales growth rate, operating profit

which had remained strong, witnessed stagnation due to lower

margin, and return on equity), including operating profit margin,

business confidence in the manufacturing industry. The Chinese

which are the medium-term management targets. Ordinary income

economy experienced a decline in exports to the U.S. in addition to aincreased 39.5% year on year to 4,583 million yen due to thedownturn in domestic demand, and there was a growing sense ofincrease in operating income despite recording foreign exchange

economic slowdown in some parts of Asia and Europe.

losses of 214 million yen due to the appreciation in the yen. Profit

In addition, due to the spread of COVID-19 from the fourth

attributable to owners of parent increased 55.8% year on year toquarter onward, the global economy is expected to fall into negative

3,440 million yen due to the increase in ordinary income in addition

growth, and the outlook is extremely uncertain.

to recording of 93 million yen in extraordinary income from sale of a

In Japan, while the employment environment continued toportion of cross-shareholdings.

improve moderately, there was a sense of economic standstill,
particularly in manufacturing industry with such factors as a slump in
personal consumption due to the increase in the rate of consumption▼ Operating Results in Fiscal 2019(million yen)tax and the effects of natural disasters such as big typhoons andNet sales

60,595weak exports and production given the slowdown in overseas

Operating income

4,916

economies. Moreover, due to the spread of COVID-19, conditions

Ordinary income

4,583

have continued to be unpredictable, including a decrease in inboundProfit attributable to owners of parent

3,440

tourism demand and further decline in exports as well as a drastic fallin personal consumption in Japan.
Market structure in the Groupʼs core markets, automotive,▼ Minimum 8

semiconductor testing, and mobile communication terminals, has（%）

continued to change rapidly with the commencement of partial

20

systems) and intensifying competition in the development of
products and technologies aimed at expanding use of advanced
applications such as CASE, MaaS, IoT, and AI.
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
Policy to achieve high quality, full-scale growth. In particular, during
the fiscal year under review, the Group promoted several promising
themes in the area of advanced applications, including 5G, asmeasures for product innovation. Moreover, as measures for process
innovation, in the Vehicle Communication Equipment segment, theGroup began building automated assembly lines and introducing
automatic testing systems and has also been working to rebuild the
profit structure, albeit only partly achieved. In addition, in the Circuit
Testing Connector segment, the Group strengthened technology andmanufacturing systems in order to grasp future business growth
opportunities, including 5G, with more certainty and continued
working to boost capacity and increase productivity by expanding
new production lines at plants in Japan and Malaysia.
As a result of these efforts, consolidated net sales in the fiscal
year under review increased year on year in all segments to 60,595
million yen and hit a record high for the sixth consecutive term.

44

Yokowo 2020 Integrated Report

17.8

16.2

commercialization of 5G (5th generation mobile communications

13.5

12.0

15

10.6
10
5

9.3

10.7

10.2
8.1

2.6

5.7

6.0

5.5

2017

2018

2.1
0

2015

2016

Sales growth rate

Operating income margin

2019
(FY)

ROE

Financial Position(4) Net Cash Provided by Financing Activities(Assets)

Net cash provided by financing activities stood at 2,143 million yen,

Current assets stood at 33,262 million yen as of March 31, 2020,

down 127 million yen from the previous fiscal year. The main factors

up 4,934 million yen from the end of the previous fiscal year.

for decrease included repayments of lease obligations of 312 million

The increase in current assets was mainly due to the increase in

yen and cash dividends paid of 564 million yen while the main

cash and deposits of 5,162 million yen, decrease in notes andfactors for increase included net increase in short-term loans payableaccounts receivable – trade of 807 million yen, and increase inof 2,995 million yen.

inventories of 508 million yen.

(5) Information on Liquidity and Capital Resources

Non-current assets stood at 14,872 million yen, up 418 million

The Companyʼs working capital is mainly spent on procurement of raw

yen from the end of the previous fiscal year. The increase in non-materials and parts used in the manufacture of products and is also

current assets was mainly due to the increase in property plant andsimilarly expended on goods and services recorded in manufacturing

equipment of 437 million yen.

expenses and selling, general and administrative expenses.

As a result, total assets stood at 48,134 million yen as of March 31,

In addition, capital investment funds are expended on establishing

2020, up 5,353 million yen from the end of the previous fiscal year.

and strengthening production systems, such as the acquisition of(Liabilities)

production equipment, and the maintenance of information systems.

Current liabilities stood at 17,580 million yen as of March 31, 2020,

The Companyʼs basic policy is to provide for the necessary funding

up 3,458 million yen from the end of the previous fiscal year. The

through internal funds generated by the recorded profit andincrease in current liabilities was mainly due to increases in notes anddepreciation.

accounts payable – trade of 409 million yen and in short-term loans

In the fiscal year under review, the Group actively invested inpayable of 2,950 million yen. Non-current liabilities stood at 4,021

research and development and product development, expansion of

million yen, down 150 million yen from the end of the previous fiscal

mass production facilities, including the establishment of newyear. The decrease in non-current liabilities was mainly due to theautomated assembly lines at plants in China and Vietnam, anddecrease in lease obligations of 163 million yen.

expansion of mass production facilities at the Malaysian plant andAs a result, total liabilities stood at 21,602 million yen as of Marchplans to continue to make active investments going forward.

31, 2020, up 3,307 million yen from the end of the previous fiscal year.

Therefore, in order to meet the demand for capital investment funds(Net Assets)

and working capital, we borrowed funds through short-term loans.

Net assets stood at 26,532 million yen as of March 31, 2020, up

As a result, the Groupʼs cash and cash equivalents stood at 12,352

2,045 million yen from the end of the previous fiscal year. This was

million yen as of March 31, 2020, up 5,162 million yen from the end

mainly due to profit attributable to owners of parent of 3,440 millionof the previous fiscal year.

yen, decrease in valuation difference on available-for-sale securitiesof 271 million yen, decrease in foreign currency translation
adjustment of 590 million yen, and dividends of surplus of 566
million yen.

▼ Net Assets / Capital Adequacy Ratio

30,000Cash Flows(1) Cash and Cash Equivalents
Cash and cash equivalents stood at 12,352 million yen in the fiscal

20,00015,000(2) Net Cash Provided by Operating Activities

10,000up 2,434 million yen from the previous fiscal year. The main factors
for increase included profit before income taxes of 4,616 million yen
and depreciation of 2,706 million yen while the main factors for

64.3

25,000year under review, up 5,162 million yen from the previous fiscal year.
Net cash provided by operating activities stood at 6,490 million yen,

Capital adequacy ratio (％)

Net assets (million yen)

18,95062.5

20,83662.9

23,28424,486

26,532

57.2

55.1

60
50
40
30
20

5,000
0

70

10
2015
■ Net assets

2016
2017
2018
Capital adequacy ratio

2019

0

(FY)

decrease included an increase in inventories of 868 million yen.
(3) Net Cash Used in Investing Activities
Net cash used in investing activities stood at 3,282 million yen,down 564 million yen from the previous fiscal year. The main
factors for decrease included purchase of property, plant andequipment of 3,066 million yen and purchase of intangible assetsof 475 million yen.

Yokowo 2020 Integrated Report45

Appendix

Capital Investment

Basic Policy for Dividends

In the fiscal year under review, the Group continued to make capital

The Company views the strengthening of returns to shareholders as

investment, primarily in the expansion of production facilities.

an important task for management. The basic policy for dividends

Investment in intangible assets is included in addition to investment

in each fiscal year lies in stable and continuous distribution of

in property, plant and equipment.

dividends taking retained earnings into consideration for the

Total capital investment in the fiscal year under review was 3,625
million yen, and an overview of capital investment is as follows.

purposes of investments in production facilities in growing businessfields, development of technology in new businesses, and intapping new markets.

(1. Property, plant and equipment)

The Companyʼs basic policy for dividends from surplus is to pay a(1) Vehicle Communication Equipment segment

dividend twice a year: an interim dividend and a year-end dividend.

The Group implemented total capital investment of 1,630 million

The decision-making bodies for dividends are the Board of Directors

yen. This included introduction of mass production facilities at bothfor the interim dividend and the General Meeting of Shareholders for

the Chinese and Vietnamese plants in order to establish automatedthe year-end dividend.

assembly lines and automatic testing systems in conjunction with

In business performance for the fiscal year under review,

expansion of capacity aimed at increasing work volume as well as

consolidated net sales hit a record high for the sixth consecutive term

expanding the transfer of production in order to shift the center ofwhile consolidated operating income, consolidated ordinary income,production functions from the Chinese plant to the Vietnamese plantand profit attributable to owners of parent also reached recordin parallel with the strengthening of development functions at thehighs. The Group achieved all three targets in the Minimum 8 (secure

China plant.

at least 8% in sales growth rate, operating profit margin, and return(2) Circuit Testing Connector segment

on equity), which are the medium-term management targets.

The Group implemented total capital investment of 1,021 million

Meanwhile, due to the effects of the spread of COVID-19 andyen. This included expansion of mass production facilities atother factors, supply and demand and competitive environment

production sites in Japan and the Malaysian plant to accommodate

trends in the Companyʼs core markets are extremely uncertain,order growth and shorter delivery times for semiconductor test tools.

and we consider it essential to put more emphasis on liquidity at(3) Personal Communication Equipment segment

hand and financial stability in business operations. In addition, while

The Group implemented total capital investment of 530 million yen.

the market overall is uncertain, inquiries in growth sectors such as

The Group carried out updates and expansion at both the Chinese

5G remain strong, and there is still high demand for funds for

and Malaysian plants, including mass production facilities in the Fine

investment in product development and capital investment. Based onConnector business. We also expanded mass production and otherthe circumstances outlined above, and comprehensively taking into

facilities at production sites in Japan with the aim of responding toaccount the return of record high profit to shareholders, demand forsales growth in the Medical Device business.

funds in the next fiscal year onward and the securing of financial
stability, the Company submitted the proposal for a year-end(2. Intangible assets)

dividend for the fiscal year under review of 16 yen per share to the

The Group implemented total capital investment of 442 million yen.

82nd General Meeting of Shareholders, and it was approved. With

This included improving and updating the environment for corean interim dividend of 14 yen per share for the fiscal year underinformation systems in order to realize Group-wide business

review already paid, the Companyʼs annual dividend is 30 yen perstreamlining.

share (consolidated payout ratio of 17.7%). With respect to thedividend for the next fiscal year, the Company currently expects to
pay an annual dividend of 30 yen per share (interim dividend of 15▼ Capital expenditures

yen and year-end dividend of 15 yen with a consolidated payout
ratio of 23.4%). The Companyʼs Articles of Incorporation stipulate(million yen)

4,231

4,500
4,000
3,500

3,073

3,000

▼ Dividend per share

2,189

2,500
2,000

that an interim dividend can be paid.
3,625

1,000

30

67.9

30

1,500

2015

2016

2017

2018

2019
(FY)

60

22

50

18

20
15

70

26

25

500
0

Consolidated payout ratio (％)

Dividend per share (yen)

1,606

40

14

30

10
5
0

15.1
2015

2016

■ Dividend per share

46

Yokowo 2020 Integrated Report

19.0
2017

20

23.8

2018

17.7
2019
(FY)

Consolidated payout ratio

10
0CONSOLIDATED BALANCE SHEETS(millions of yen)

Fiscal 2018
(As of March 31,
2019)

Fiscal 2019
(As of March 31,
2020)

ASSETS
Current assets
Cash and deposits

7,189

12,352

Notes and accounts receivable-trade

11,581

10,774Merchandise and finished goods

4,387

4,662

392

402

Inventories
Raw materials and supplies

3,392

3,616

Other

1,387

1,456

Allowance for doubtful accounts
Total current assets

(4)

(3)

28,32733,262

Non-current assets
Net property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

6,605

6,568

(3,714)(3,657)

2,890

2,911

Machinery, equipment and vehicles

10,632

11,306

Accumulated depreciation(6,907)(7,117)

Machinery, equipment and vehicles, net

3,724

4,189

Tools, furniture and fixtures

7,981

8,390

Accumulated depreciation(5,729)(6,171)Tools, furniture and fixtures, net

2,251

2,219

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment

761

761

1,660

1,730

(1,119)(1,105)

541

625

689

590

10,858

11,296

Intangible assets
Leased assets

41

26

Other

675

874

Total intangible assets

717

900

1,629

1,188

Investments and other assets
Investment securities
Retirement benefit assets

15

81

Deferred tax assets

591

737

Other
Total investments and other assets
Total non-current assets
Total assets

640

667

2,877

2,675

14,453

14,872

42,781

48,134

Yokowo 2020 Integrated Report47

Appendix(millions of yen)

Fiscal 2018
(As of March 31,
2019)

Fiscal 2019
(As of March 31,
2020)

Notes and accounts payable-trade

6,019

6,428

Short-term loans payable

3,539

6,489

Lease obligations

193

253

Provision for product warranties

364−

Income taxes payable

330

770

Provision for bonuses

540

600

Other

3,133

3,038

Total current liabilities

14,121

17,580

3,400

3,400

Lease obligations

455

292

Deferred tax liabilities

130

135

Net defined benefit liability

173

183

Long-term accounts payable

1210

Total non-current liabilities

4,172

4,021

18,294

21,602

LIABILITIESCurrent liabilities

Non-current liabilities
Long-term loans payable

Total liabilities
NET ASSETS
Shareholdersʼ equity
Capital stock

3,996

3,996

Capital surplus

3,981

3,981

Retained earnings

16,197

19,045

(719)

(664)

Treasury stock
Deposit for subscriptions of treasury shares
Total shareholdersʼ equity

0−23,456

26,359

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

355

84

Foreign currency translation adjustment

525

(64)

Remeasurements of defined benefit plans

135

124

Total valuation and translation adjustments

1,017

144

7

3

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

48

Yokowo 2020 Integrated Report

524

24,486

26,532

42,781

48,134

CONSOLIDATED STATEMENTS OF INCOME(millions of yen)

Fiscal 2018
Fiscal 2019
(From April 1, 2018 (From April 1, 2019
to March 31, 2019) to March 31, 2020)
Net sales

54,75260,595

Total cost of sales

44,37447,527Gross profit

10,37813,067

Selling, general and administrative expenses

7,349

8,150

Operating income

3,028

4,916

Non-operating income
Interest income

22

28

Dividend income

4339

Foreign exchange gains (losses)

258−

Rental income

11

17

Other

43

43

Total non-operating income

379

128

Interest expenses

96

104

Share of loss of entities accounted for using equity method−

24

Commission expenses

77Foreign exchange losses

−

214

Other

17

111

Non-operating expenses

Total non-operating expenses
Ordinary income

121

462

3,286

4,583

Extraordinary income
Gain on sales of non-current assets

11Gain on sales of investment securities−

93

Total extraordinary income

1

95

21

47

Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets

00

Product warranty expenses−

14

Provision for product warranties

364−

Total extraordinary losses

385

62

Profit before income taxes

2,902

4,616

Income taxes - current

668

1,164

Income taxes - deferred

18

(8)

Total income taxes

687

1,156

2,214

3,460

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

5

19

2,209

3,440

Yokowo 2020 Integrated Report49Appendix

CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME(millions of yen)

Fiscal 2018
Fiscal 2019
(From April 1, 2018 (From April 1, 2019
to March 31, 2019) to March 31, 2020)
Profit

2,214

3,460

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

(280)

(271)

Foreign currency translation adjustment

(38)

(590)

Remeasurements of defined benefit plans

(171)

(10)

Total other comprehensive income
Comprehensive income

(490)

(872)

1,724

2,587

1,719

2,568

5

19

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

50

Yokowo 2020 Integrated ReportCONSOLIDATED STATEMENT OFCHANGES IN EQUITY
Fiscal 2018 (From April 1, 2018 to March 31, 2019)(millions of yen)

Shareholdersʼ equity

Balance at
beginning of
periodCapitalstock

CapitalsurplusRetainedearnings

Treasury
stock

3,996

3,981

14,519(729)

Accumulated other comprehensive income
Share
NonDeposit for
Valuation
Foreign
RemeasureTotal
acquisition controlling
Total
subscriptions shareholdersʼ difference on currency
ments of valuation andrightsinterestsof treasury
available-for- translation
definedtranslation
equitysharessale securities adjustment benefit plans adjustments−

21,768

636

564

306

1,507

8

−

Total net
assets23,284

Changes during
periodDividends ofsurplus

(526)

(526)

(526)

Profit (loss)
attributable toowners of parent

2,209

2,209

2,209

(1)

(1)

(1)

10

5

5

0

0

Purchase oftreasury shares
Disposal oftreasury shares(4)

Deposits forsubscriptions oftreasury shares0

Net changes of
items other thanshareholdersʼ equity

(280)

(38)

(171)

(490)

(0)

5

(485)

Total changes of
items during
period

−

−

1,678

9

0

1,688

(280)

(38)

(171)

(490)

(0)

5

1,202

Balance at
end of period

3,996

3,981

16,197(719)

023,456

355

525

135

1,017

7

5

24,486

Fiscal 2019 (From April 1, 2019 to March 31, 2020)(millions of yen)

Shareholdersʼ equity

Balance at
beginning of
periodCapitalstock

CapitalsurplusRetainedearnings

Treasury
stock

3,996

3,981

16,197(719)

Accumulated other comprehensive income
Share
NonTotal
Deposit for
Valuation
Foreign
Remeasureacquisition controllingTotal
ments of valuation andsubscriptions shareholdersʼ difference on currency
rightsinterests
definedtranslationof treasury
available-for- translation
equitysharessale securities adjustment benefit plans adjustments

023,456

355

525

135

1,017

7

5

Total net
assets

24,486

Changes during
periodDividends ofsurplus

(566)

(566)

(566)

Profit (loss)
attributable toowners of parent

3,440

3,440

3,440

(1)

(1)

30

30

Purchase oftreasury shares(1)

Disposal oftreasury shares

(26)

57

(0)

Net changes of
items other thanshareholdersʼ equity
Total changes of
items during
periodBalance at
end of period

(271)

(590)

(10)

(872)

(3)

19

(857)

−

−

2,847

55

(0)

2,902

(271)

(590)

(10)

(872)

(3)

19

2,045

3,996

3,981

19,045(664)−

26,359

84

(64)

124

144

3

24

26,532

Yokowo 2020 Integrated Report51

Appendix

CONSOLIDATED STATEMENT OF CASH FLOWS(millions of yen)

Fiscal 2018
Fiscal 2019
(From April 1, 2018 (From April 1, 2019
to March 31, 2019) to March 31, 2020)
Cash flows from operating activities
Profit before income taxes

2,902

4,616

Depreciation

2,199

2,706

Increase (decrease) in allowance for doubtful accounts

(8)

(1)

Increase (decrease) in provision for bonuses

39

64

Increase (decrease) in provision for product warranties

364

(364)

Increase (decrease) in net defined benefit asset and liability

(116)

(71)

Interest income and dividend income

(66)

(67)

Interest expenses

96

104

(101)

75

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

Foreign exchange losses (gains)−

24

Loss (gain) on sales of non-current assets

(1)

(1)

Loss on retirement of non-current assets

21

47

Loss (gain) on sales of investment securities

−

(93)

Decrease (increase) in trade receivables

38

488

(769)

(868)

Decrease (increase) in inventories
Increase (decrease) in trade payables

92

750

Other

(30)

(133)

Subtotal

4,660

7,277

Interest and dividends received
Interest paid

66

67

(100)

(111)

Income taxes paid

(570)

(742)

Net cash provided by (used in) operating activities

4,055

6,490

(3,538)(3,066)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

21

2

(307)

(475)

Proceeds from sales of investment securities−

142

Purchase of shares of subsidiaries and associates

−

(99)

Proceeds from sales of shares of subsidiaries resulting in change in scopeof consolidation−

201

Purchase of intangible assets

Other

(22)

10

(3,847)(3,282)

1,200

2,995

Proceeds from long-term borrowings

3,400

−

Repayments of long-term borrowings(1,600)−

Repayments of lease obligations

(208)

(312)

Dividends paid

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings

(524)

(564)

Proceeds from exercise of employee share options

5

27

Proceeds from deposit for subscriptions to treasury shares

0−

Purchase of treasury shares

(1)

(1)

2,270

2,143

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

114

(188)

Net increase (decrease) in cash and cash equivalents

2,592

5,162

Cash and cash equivalents at beginning of period

4,596

7,189

Cash and cash equivalents at end of period

7,189

12,352

52

Yokowo 2020 Integrated ReportIndependent Practitionerʼs Assurance Report

Yokowo 2020 Integrated Report53

YOKOWO CO., LTD.
5-11, Takinogawa 7-Chome, Kita-ku, Tokyo 114-8515, Japan
Inquiry form:
https://www.yokowo.co.jp/english/inquiry/