Segment Overview

Yokowoʼs Business Domain

Vehicle Communication Equipment Segment

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.

▼ Vehicle Communication Equipment - Consolidated Sales(million yen)

FY2015FY2016FY2017FY2018FY2019

28,761

32,02936,25638,18339,264▼ Business domain map

VehicleCommunicationEquipment

CircuitTesting
Connector

WirelessCommunicationEquipment

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

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 automobilemanufacturers, not only in Japan but also globally in the UnitedStates and ASEAN markets. Overseas sales account for over60% 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.

Medical Devices

Segment Review (Fiscal 2019)

Probe Cards

Vehicle Communication Equipment

Coils for Guide Wires
and Catheter Shafts

Circuit Testing Connector

Wireless Communication Equipment

Yokowo manufactures antennas for carsYokowo 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

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.

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 ofproducts mainly for the domestic market, such as the ETC
antenna, increased from the previous fiscal year due to strongcar 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

Wireless Communication Equipment Segment
VehicleCommunication
Equipment

CircuitTestingConnector

WirelessCommunication
Equipment▼ Wireless Communication Equipment - Consolidated Sales

FY2015FY2016FY2017FY2018FY2019

4,622

5,164

6,158

7,429

8,498

Segment Overview

Segment Policy

Segment Overview

In this segment, Yokowo manufactures contact probes making
full use of its micro precision processing technology, and also
manufactures probe cards for front-end testing and sockets forback-end testing 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 ofMEMS 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-endtesting. Yokowo will also strive to build a more profitablebusiness structure and maintain stable business operations.

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 aremanufactured 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 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 onyear 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.

10Yokowo 2020 Integrated Report

Segment Review (Fiscal 2019)
Contact Probes

Probe Cards

Hi-Giga Sockets(million yen)

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

CircuitTestingConnector

WirelessCommunication
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 theUnited States.

Spring Connectors

Coils for Guide Wires

Yokowo 2020 Integrated Report11