Contents

Management Strategy

2021

President’s Message

01

Officer Matrix

03

Our Ways05

1st STEP of Vision 2030

06

Helping to Achieve the Sustainable Development
Goals (SDGs) through Our Business Activities
07
ESG - Solar Power Generation Equipment

08

Financial Review

A N N U A L
R E P O R T

Summary of Selected Financial Data
(consolidated)

09

Highlights

10

Business Composition by Segment

11

Consolidated Financial Statements

13

Corporate Information
Company History

17

Corporate Data

18

President’s Message
Management Philosophy

President
Nobuyuki Takeuchi

武内 延公

The ENOMOTO Group has been contributing to Japanese manufacturing since its
founding in 1962, underpinned by its Management Philosophy of “recognizing that people
are at the heart of business management, ENOMOTO is committed to healthy
manufacturing as its contribution to the development of an affluent society.” Achievements inthis regard have involved developing numerous new technologies related to press
processing, establishing die technologies encompassing a wide range of processes such asblanking, bending, drawing and resin molding, and coming up with ultrafine composite
machining technologies for metal and plastic geared to addressing fast-evolving market
needs for miniaturization, higher performance and more functions.
Our products in particular include lead frames for opto-electronic devices typified by lightemitting diodes (LEDs) which constitute an energy-saving product that helps combat global
warming, components for micro pitch connectors installed in smartphones and other IT
devices and various types of semiconductor lead frames essential for facilitating the spreadof self-driving vehicles and IoT. We take pride in these products, which are key technologicalelements poised to help bring about advances in society going forward. Also, we believe that
supplying these products to major manufacturers worldwide will enable the Group tocontinue playing an indispensable role with respect to helping in bringing about aprosperous society in the future.

2020 Economic Condition

I would like to express my sincere gratitude to you, ourshareholders, for your continued support. I would also
like to express my sincere condolences to those whohave passed away due to the novel coronavirus disease(COVID-19), and I pray for a quick recovery of those
who contracted the disease.

In the previous fiscal year, Japan’s economy was under the strong influence of COVID-19,
in which corporate activities and overall national life became prominent from the beginning of
2020. There are still risks that could lead to economic stagnation, such as the re-expansionof infections and the emergence and epidemics of new mutant strains domestically andinternationally, but some industries, mainly the manufacturing industry, are on a strong
recovery trend. In the electronic components industry to which the group belongs, although
the first half was generally sluggish due to regional or city-based lockdowns in othercountries and the confusion caused by policies with restrictions on corporate activities, thesecond half was on a sharp recovery trend due to global demand for automobiles andimprovements in consumer sentiment.
Under such circumstances, the Group has been endeavoring to increase its sales andearnings power through efforts that involve further improving quality and systematicallyreducing production costs by automating and streamlining manufacturing processes.

2020 Our Financial Performance
In the fiscal year ended 31 March 2021, the Company consequently generated net salesof 22,999 million yen(up 1.5% YoY), operating profit of 1,563 million yen (up 15.0% YoY),
ordinary profit of 1,561 million yen (up 12.0% YoY), and profit attributable to owners ofparent of 1,489 million yen (up 63.1% YoY) due to the additional recording of deferred tax
assets.
We will continue to work as one to improve our business performance and strengthen ourmanagement base, and we look forward to your continued support.

1

ENOMOTO Co., Ltd.

Annual Report 2021

2

Officer Matrix

OutsideDirectors

InsideDirectors

Roles and Responsibilities

Gender●Male○FemaleNobuyuki
Takeuchi

HomareShiratori

Mitsuhiro
KushimaNobuo
Sakurai

Representative
director

Managing
Director

Managing
Director

Director

President /Chief Executive
Officer●

Chief Officer ofChief Officer ofDomestic Business Overseas Business●●

Chief Officer of
Headquarters
Production●

Management
Strategy★

Technology
and Quality
Control★

Marketing and
Sales

★

★

GlobalBusiness

★

★

Human
Resource
Development★

★

Finance andAccounting★

ENOMOTO Co., Ltd.

●Male
○FemaleMichiyo
Ujiie

HiroshiMuto

Director

Director

Director

Director

Audit and
Audit and
Audit and
Audit andSupervisory
Supervisory
Supervisory
Supervisory
Committee Member Committee Member Committee Member Committee Member

●

★
★

★

○

○

●

★

★

★
★

Management
Strategy★

Technology
and Quality
Control★

Marketing and
Sales

★

GlobalBusiness★

★
★

Legal andGovernance3★

Environment
and Society

Risk
Management

Gender

Sachiko
YamakiIndependent Officer

Independent Officer

SkillsRoles and Responsibilities

Tadashi
Kato

Skills★

Human
Resource
Development★

★

Environment
and Society★

★

Finance andAccounting★

Legal andGovernance

★

★

Risk
Management

★

★

★

★

★

Annual Report 2021

4

Our Ways

1st STEP of Vision 2030

Our Goals For 1st STEP (Apr 2021～Mar 2024)
Motto
Operating
Profit

ROE

25

2

8％

billionbillionNet
Sales

SHINGI ITTAI
Shingi ittai : Heart and technique are both essential for our manufacturing andwe can’t make good products with either of them. Since our start in small lab,
we have cherished the spirit of craft workers and their technique.

Management Philosophy
People are at the heart of business.
Through sound manufacturing, we contribute to therealization of prosperous society.

Net Sales ・ Operating Profit
29.0

Net Sales

27.0

1.1

25.0

22.6

23.0

2.50

2.0

Operating Profit

2.00

1.5

25.0

22.9

1.50
1.00

21.0

21.0

Vision 2030

1.3(Billion yen)

0.50
0.00

19.0

2019/32020/32021/32024/3「BUILD the FUTURE with DIE TECHNOLOGY」
How We Achieve Our Goals: Investment in Growing Fields
Finer and faster with leading-edge technology,
We aim to be your best partner for living and business.

ICT（Wearable
devices,etc.）

TargetStrengthen production
capacity in Tsugaru
Factory

Focus on EV
andAutonomous
driving field

Increase orders in
Philippine Factory

We continue to speedily provide high-quality products tothe cutting-edge market with the evolution of die technology.

We create innovation by building a work environment thattakes on challenges without fear of failure.

How We Increase Our Marginal Profit
Automation of
manufacturing process

Digitalization ofdie making

Strengthening
factories overseas

We contribute to the realization of carbon-free society
by putting fuel cell parts to practical use.

5

ENOMOTO Co., Ltd.

Annual Report 2021

6

Helping to Achieve the Sustainable Development Goals (SDGs)
through Our Business Activities

ESG - Solar Power Generation Equipment

Our Action
Strengthen development and analysis of※１“GDL integrated flat separator”※２

To realize high efficiency, high output and high durability PEFC.

Past Action
・Installed 4 solar power generation equipment.
On-Going Action
・Under research for installing solar power
generation equipment in Tsugaru Factory,
Japan.

Generatea total of

1.4※ 1 GDL: Gas Diffusion Layer ※2 PEFC：Polymer Electrolyte Fuel Cell

ENOMOTO Co., Ltd. in collaboration with the University of Yamanashi and Osaka University,
applied for and has been selected as a “Collaborative Industry-Academia-Government R&D ProjectMWfor Solving Common Challenges Toward Dramatically Expanded Use of Fuel Cells and Related
Equipment" by the National Research and Development Corporation New Energy and Industrial
Technology Development Organization (NEDO).
This project is a research and development consignment project to solve common problems newly
revealed by the industry toward the realization of the performance values that fuel cell vehicles

Philippines

should aim for after 2030. It will be implemented from 2021 to 2024 as present schedule.
Newly
developed
structure

Conventional
structure
O2

Separator
with flow
path

O2

Flat
separator
GDL
with flow
path

GDL
CCM

CCM

H2

H2

Water stays under theribs and hinders gas
diffusion.

CCM
GDL
Separator
with flow
path

Japan

Create a flow path in
GDL to achieve highCCM

gas diffusivity.

GDL
with flowpath
Flatseparator（Source:） https://www.nedo.go.jp/news/press/AA5_101458.html〈Contact us〉
ENOMOTO Co., Ltd. Development Dept.
TEL:0553-34-8020 E-MAIL:enomoto-kaihatsu@enomoto.co.jp

7

ENOMOTO Co., Ltd.

Uenohara

Enzan

Enzan

Annual Report 2021

8

Summary of Selected Financial Data (consolidated)

51st term
Fiscal year
ended
31 Mar 2017
19,366

Net sales

52nd term
Fiscal year
ended
31 Mar 201822,10353rd term
Fiscal year
ended
31 Mar 2019
21,047Highlights

54th term
Fiscal year
ended
31 Mar 2020
22,64755th term
Fiscal year
ended
31 Mar 2021
22,999(Million yen)
Ordinary Profit(Million yen)
Profit (loss) attributable toowners of parent(Million yen)Comprehensive income(Million yen)
Net assets(Million yen)
Total assets(Million yen)
Net assets per share(Yen)
Basic earnings (loss) per
share
(Yen)
Diluted earnings per share(Yen)
Equity-to-asset ratio(%)
Rate of return on equity(%)
Price-earnings ratio(Times)Net cash provided by (usedin) operating activities(Million yen)
Net cash provided by (usedin) investing activities(Million yen)
Net cash provided by (usedin) financing activities(Million yen)
Cash and cash equivalents(Million yen)
Number of employees[Average number of
temporary employees](Number of persons)

9

ENOMOTO Co., Ltd.

22,10322,64722,9992020.032021.03

21,047

Sales
19,366(Million yen)

1,314

1,601

1,260

1,394

1,561

936

1,246

912

912

1,489

640

1,205

624

778

1,362

2017.032018.032019.03

1,561

1,601
1,314

12,377

14,761

15,06915,61016,73920,491

23,47923,497

24,211

25,5772,061.63

2,169.16

2,240.94

2,321.46

2,487.46

153.33199.29134.37135.86221.66152.86198.32133.98135.46221.01

60.4

62.7

64.0

64.4

65.3

7.6

9.1

6.1

5.9

9.2

Consumer/Industrial
Machinery/Others 31.0％

8.5

8.0

6.3

6.0

9.3

2,203

2,012

592

2,357

2,506

•Composition ratio decreased by
1.4pt from 32.4% in the previous
term.

1,260

1,394

Operating
Profit(Million yen)2017.032018.032019.032020.032021.03

Sales composition ratio of mass-produced products by application(769)(1,557)(1,238)(1,501)(2,402)

(901)

1,175

(536)

(333)

(113)

4,085

2,858

3,346

3,324

1,055

1,126

1,253

1,243

1,240

[633]

[586]

[637]

[457]

[468]

•Although it stagnated in thefirst half due to the impact ofthe decrease in automobile
production, it has been on arecovery trend since thesecond half.

•Demand for information andcommunications sector such asdata centers and servers is
expected to grow over the
medium to long term.

Wearable Device
2,422

Automobile 29.0％•Composition ratio decreasedby 2.0pt from 31.0% in theprevious term.

Smartphone 34.7％

5.3％•Composition ratio increased by
2.1pt from 3.2% in the previous
term.
•The market continues to growdue to healthcare demand andother factors.

Sales for wearable devices
increased by 70.6% YoY•Composition ratio increasedby 1.2pt from 33.5% in theprevious term.
•Steady transition as it is alsoa device that has the role ofcomplementing the stagnationof human movement.

Annual Report 2021

10

Business Composition by Segment
Net Sales

Lead frame for IC / Transistor

7,287
56.0%

Composition
ratio

7,256

Net Sales 7,287 million yen (Decreasing 2.6% - YoY)
This item group is mainly for automobiles and consumer equipment.
In the first half, parts for automobiles were affected by the decreasein demand for automobiles, mostly overseas. However, thedemand turned to recovery trend from the second half.

31.7%
44.0%
(Million yen)

2020
Consumer, industrial machinery, etc.

2021

Automobile

Lead frame for opto-electronic devices
Net Sales

Composition
ratio

2,639

78.0%
2,578

11.5%
22.0%

(Million yen)

2020
Consumer, industrial machinery, etc.

Net Sales 2,639 million yen ( Decreasing 7.5% - YoY)
This item group is mainly for LED.
The demand of automobiles and parts for large displays atcustomer attraction facilities has decreased.

2021

Automobile

Net Sales

9.3%
Composition
ratio

53.8%

12,424

12,384

Net Sales 12,384 million yen (Raised 7.2% - YoY)
This item group is mainly for automobiles and mobile terminals.
The demand for automobiles parts has recovered since half of theyear, and demand for smartphone parts and wearable terminalparts has remained at a high level.

60.9%

77.0%
22.1%

(Million yen)

2020
Smartphone
Others ：Net Sales

11

Wearable Device

Connector parts

Consumer, industrial machinery, etc.

2021
Automobile

688 million yen ( Decreasing 8.4% - YoY)This item group is mainly for relay parts.

ENOMOTO Co., Ltd.

Annual Report 2021

12

Consolidated Financial Statements
Status of Balance Sheets(Million yen)

Consolidated Balance Sheets(summary)

30000(Million yen)
As of
31 Mar 2020

25000

As of
31 Mar 2021
20000

AssetsCurrent assets

13,30314,143

Non-current assets

10,907

11,433

Property, plant, and equipment

9,831

10,222Intangible assets

177

189

Investments and other assets

898

1,021

Current liabilities,
7,277

Current liabilities,
7,226
Current assets,
13,303

15000

Current assets,
14,143
Non-current
liabilities, 1,373

Non-current
liabilities, 1,560

10000
Net assets, 16,739

Net assets, 15,610
Non-current assets,
5000
10,907

Non-current assets,
11,43324,211

25,577

Current liabilities

7,226

7,277

Non-current liabilities

1,373

1,560

Total liabilities

8,600

8,838

Shareholder’s equity

15,892

17,191

Share capital

4,749

4,749

Capital surplus

5,082

5,082

Retained earnings

6,213

7,508

Non-current assets

Treasury shares

(153)

(148)

Accumulated other comprehensive income

(297)

(467)

The amount of Non-current assets was 11,433 million yen due to an increase in Construction in
Progress related to the expansion of Tsugaru factory.(526 million yen more than the previous
fiscal year.)

Total assets
Liabilities

0

Net assets

15

15

Total net assets

15,61016,739Total liabilities and net assets

24,211

25,577

Share acquisition rights

Current assets
In the fiscal year ended 31 March 2021, the amount of Current assets was 14,143 million yen due
to an increase in Trade receivables and Inventories. (839 million yen more than the previous
fiscal year.)

Total liabilities
The amount of Total liabilities was 8,838 million yen due to an increase in Trade payables andLong-term borrowings related to the expansion of Tsugaru factory.(237 million yen more than theprevious fiscal year.)

Net assets
Net assets was 16,739 million yen due to an increase in Retained earnings. As a result, Capital
adequacy ratio was 65.4%.

13

ENOMOTO Co., Ltd.

Annual Report 202114

Consolidated Statement of Cash Flows(summary)

Consolidated Statements of Income(summary)(Million yen)
As of
31 Mar 2020

2,506

(2,402)As of
31 Mar 2021

(Million yen)

Net sales

22,64722,999

Cost of sales

19,053

19,183Gross profit

3,593

3,815

Selling, general and administrative expenses

2,234

2,252

Operating profit

1,358

1,563

Non-operating income

141

117

Non-operating expenses

106

118

1,394

1,561

Extraordinary income

102

13

Extraordinary losses

336

117

1,160

1,457

Income taxes - current

291

276

Income taxes - deferred

(43)

(308)

Total income taxes

247

(31)

Profit912

1,489

Cash flows from operating activities

Profit attributable to owners of parent

912

1,489

Obtained cash as a result of operating activities was 2,506 million yen. This was because of
an increase in cash due to accounting profit before income taxes and Depreciation.
On the other hand, the factor of a decrease in cash was an increase in Trade receivables.

Ordinary profit

Profit before income taxes

(113)

(11)

Cash flows
from financing
activities

Effect ofexchange ratechange on
cash and cash
equivalents

3,345
Cash flows
from operating
activities

Cash flows frominvestingactivities

Cash and cash
equivalents at the
beginning of period

3,324

Cash and cash
equivalents at theend of period

The status of Cash Flows
Cash and cash equivalents (hereinafter referred to as “Cash”) was
3,324 million yen at the end of the fiscal year ended 31 March 2021.
(21 million yen less than the previous fiscal year.)

Cash flows from investing activities
Used cash as a result of investing activities was 2,402 million yen. This was due to purchase of
Property, plant and equipment.

Cash flows from financing activities
Used cash as a result of financing activities was 113 million yen. This was because of anincrease in cash due to an increase in Long-term borrowing related to the expansion of
Tsugaru factory. On the other hand, the factor of a decrease in cash was the repayments ofshort-term borrowings and dividends paid.

15

ENOMOTO Co., Ltd.

Annual Report 2021

16

Company History
Date

Corporate Data
Event

April 1967

Enomoto Manufacturing Co., Ltd. is established in Sagamiko-machi, Tsukui-gun, Kanagawa
Prefecture (currently Midori-ku, Sagamihara City, Kanagawa Prefecture) for the purpose of
manufacturing precision molds and processing press parts using those molds for electronic
components.

December 1969

The Uenohara Factory is established in Uenohara-machi, Kitatsuru-gun, Yamanashi
Prefecture (currently Uenohara City, Yamanashi Prefecture) to expand the business.

Trade name

ENOMOTO Co., Ltd.

March 1973

The headquarters is relocated from Sagamiko-machi, Tsukui-gun, Kanagawa Prefecture to
Uenohara-machi, Kitatsuru-gun, Yamanashi Prefecture.

Establishment

April 1967 (Founded July 1962)

April 1987

The Enzan Factory is established in Enzan City, Yamanashi Prefecture (currently Koshu City,
Yamanashi Prefecture) with the aim of expanding the sales of LED lead frames andincreasing the efficiency of mold component processing.

Securities code

6928 (Tokyo Stock Exchange)

July 1990

The company changes its name from Enomoto Manufacturing Co., Ltd. to Enomoto Co., Ltd.

November 1990

Registers over-the-counter with the Japan Securities Dealers Association.

Headquarters
location

8154-19, Uenohara, Uenohara City,
Yamanashi, Japan

June 1991

Tsugaru Enomoto Co., Ltd. is established in Goshogawara City, Aomori Prefecture.

CapitalJPY 4,749 million

March 1995

The Iwate Factory is established in Otsuchi-cho, Kamihei-gun, Iwate Prefecture.

August 1995

The Uenohara Factory is relocated to the grounds of Uenohara Industrial Park.

Business
description

1.

October 1995

Enomoto Philippine Manufacturing Inc. is established in the Republic of the Philippines.
(Currently a consolidated subsidiary)

August 1997

Iwate Enomoto Co., Ltd. is established and the Iwate Factory's business is transferred.

November 2000

Enomoto Hong Kong Co., Ltd. is established in the Hong Kong Special Administrative Regionof the People's Republic of China. (Currently a consolidated subsidiary)

January 2001

Zhongshan Enomoto Co., Ltd. is established in Zhongshan, Guangdong Province, People's
Republic of China. (Currently a consolidated subsidiary)

Telephone number+81-554-62-5111

April 2003

The headquarters address is changed to 8154-19 Uenohara, Uenohara-machi (currently
8154-19 Uenohara, Uenohara City, Yamanashi Prefecture).

Consolidated
subsidiaries

ENOMOTO PHILIPPINEMANUFACTURING INC.

April 2004

Acquires the subsidiaries, Tsugaru Enomoto Co., Ltd. and Iwate Enomoto Co., Ltd., andestablishes the Tsugaru Factory and the Iwate Factory.

December 2004

Cancels registration as an over-the-counter company with the Japan Securities Dealers
Association and lists its shares on the JASDAQ Securities Exchange (currently the JASDAQ
Market of the Osaka Securities Exchange).

July 2013

The company is listed in the Tokyo Stock Exchange JASDAQ (Standard) following the mergerof the Tokyo Stock Exchange and the Osaka Securities Exchange.

December 2015

Constructs Cavite Factory No. 2 for Enomoto Philippine Manufacturing Inc., located in theProvince of Cavite in the Philippines, to increase production capacity.

December 2017

Changes the market listing from the Tokyo Stock Exchange JASDAQ (Standard) to theSecond Section of the Tokyo Stock Exchange.

November 2018

The company is listed in the First Section of the Tokyo Stock Exchange.

17

ENOMOTO Co., Ltd.

2.

Manufacture of various
semiconductor components andelectronic components
Development, design, andmanufacture of various precision molds,
automatic mechanical equipment, etc.

ENOMOTO HONG KONG Co., Ltd.
ZHONG SHAN ENOMOTO Co., Ltd.

Annual Report 2021

18