The impossible is the starting point for innovation.

Susumu Kotani, YUSHIN’s Founder01

YUSHIN Report 2023

02

Foreword

INDEX

We sincerely thank you for reading the YUSHIN Report 2023.

Vision and Strategy

We publish the YUSHIN Report (Integrated Report), a compilation of financial and non-financial information, toForeword, Business Philosophy and Motto

04

Message from the President

07

History of Value-Creation

Vision and Medium-Term Management Targets
Value Creation Process

Human Capital - Interview with the Director in Charge

Business Results

13
15
19

Financial Highlights

21

YUSHIN’s Strength

Sales by Product Category
Sales by Region

Sales by End-User Industry

22
23
24
25
26

ESG / SDGs

28

Risk Management

ESG・Social

External Directors Tripartite Talks
ESG・Governance
Skills Matrix

Directors, Auditors and Executive Officers

help all of our stakeholders better understand the YUSHIN Group. The "YUSHIN Report 2023" newly includes a
growth story for the next 50 years, an interview with the Director in charge of human resources strategy, and atripartite talks of the External Directors on future issues.
We will continue to utilize this report as a communication tool to continuously improve our corporate value.
YUSHIN PRECISION EQUIPMENT CO., LTD.

20

Sustainability

ESG・Environmental

27
29

Business Philosophy and Motto
Business Philosophy

33

Act fairly and judiciously with all of our “strength, wisdom and courage” in47order to earn the trust of our customers and shareholders.

43
50
51
53

Look outward far and wide, constantly seek technological innovation and

Financial Information

55

give back to society for all it has given us.

Global Network

63

Dialogue and Engagement with Stakeholders

Data Collection

12

The Three Pillars of YUSHIN

Non-Financial Highlights

Sustainable Management

05

Stock Information

Corporate Information

61
65

Work cooperatively with our stakeholders in order for us to grow as acompany and make the world a better place both physically and spiritually.

Editorial policy

We have prepared this YUSHIN Report to help all of our stakeholders better understand how we create social andeconomic value and strive for sustainable growth. In preparing this report, we referred to the "International

Integrated Reporting Framework" of the IFRS Foundation and the "Guidance for Collaborative Value Creation 2.0"of the Ministry of Economy, Trade and Industry.
Reporting period

The main period covered in this report is the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023).

Motto
Today and every day,Some of the contents include information outside of this period.

devote yourself to even better service

Scope of report

This report covers YUSHIN PRECISION EQUIPMENT CO., LTD. and its 13 consolidated subsidiaries.

and build even more faith in our company.

Notes on the forecast and

The forecasts and outlooks contained in this YUSHIN Report 2023 are based on information available at the time

outlookof preparation and are judged to be reasonable by the Company, and include potential risks, uncertainties andother factors. Therefore, actual results may differ from the forecasts and outlooks due to changes in various
factors.

03

YUSHIN Report 2023

04

History of Value-Creation
50th Anniversar y Commemorative Logo

Since its establishment, YUSHIN PRECISION EQUIPMENT CO., LTD. has made take-out robots for plastic molding as main products,
and has moved forward with the development of the industry. We have actively expanded its business overseas, and despite being

YUSHIN PRECISION EQUIPMENT CO., LTD. celebrates its 50th anniversary in October 2023. We have created a 50th anniversarycommemorative logo that expresses our desire to continue to positively challenge new frontiers for the next half century. The

the last entrant into take-out robot industry in Japan, has grown to hold the largest share of the global market in the 2000s.

unusual design of the isosceles triangle with the corner pointing down, which is also used for the YUSHIN Precision Equipment

Based on our founder's philosophy of "The impossible is the starting point for innovation." we will continue to challenge

company pin, represents our "unconventional and free thinking". The triangle points to the future, and the sides surrounding

the Y symbolize people's determination to fly high in the future. In addition, the bright color expresses the gathering andnew technologies and contribute to global society as a leading company of take-out robots.

Starting-up

Boosting existing businessand expanding overseas

Forming the basis

1978

A swing type take-out robot
released as the YUSHIN’s
first robot

1989(First in the Industry)
SERVOLINER, all servo driven
take-out robot, released

development of individuals with many hidden possibilities.

1996(First in the Industry)YUSHIN robot equippedwith colored touch-panel
controller

Accelerating overseas expansion
and challenging new areas

2002

2010

(The Fastest in Industry)
DRDIII, disc take-out robot,
released with the take-out
time of 0.069 seconds

Executinggrowth strategy

Building the foundation
for growth strategy

2020

2017

(First in the Industry)
HSA, a take-out robot
with an optimum design
technology, released(Venture into New Businesses)
A palletizing robot, released(First in the Industry)
FRA, a high-end take-out robot with
Active Vibration Control, released
INTU LINE, IoT service, released<Net sales>
Millions of yen

Non-consolidated sales

30,000Consolidated domestic sales

Japan Society of MechanicalEngineers Technology Award

Consolidated overseas sales

Japan Society of MechanicalEngineers Technology AwardRed Dot
Design Award

Machinery Industrial
Design Award

JMF’s Energy-Efficient
Machinery Award

25,000Medium-Term
Management Targets

20,00015,00010,000
5,000
0
1974

1973

YUSHIN PRECISION EQUIPMENT
CO., LTD. established at
Higashiyama-ku Kyoto, Japan

1980

1990

1985

Relocated the headquarters toFushimi-ku Kyoto, Japan

1988

YUSHIN AMERICA, INC. established

2000

2010

2020

2000

2013

2023

2004

2016

YUSHIN KOREA CO., LTD.
establishedYUSHIN AUTOMATION LTD.
(UK) establishedOrigins of
the Company name05

YUSHIN Report 2023

Technical Center openedin Minami-ku Kyoto, Japan

Acquisition of all shares in WEMO
AUTOMATION AB (Sweden)

Current Headquarters openedin Minami-ku Kyoto, JapanYUSHIN's name comes from the founder's desire to “be a trustworthy
company”. 'Yu' means to exist and 'shin' means to trust.

06

Message from the President
We aim to achieve growth throughsocial contribution by providing

We Will Continue to Take on New Challenges
Based on the Principle That "The Impossible
Is the Starting Point for Innovation".
At present, there are a variety of issues and growth"products and services that delight

topics surrounding our company that need to be resolved,

our customers" while improving

efforts to improve the working environment (businessour organizational structure tomeet customers' needs and solve
their problems.

such as labor shortages in manufacturing locations,and human rights), the improvement of living standards

especially in emerging countries, the rise of new industries

such as electric vehicles (EVs), and climate change issues.
In response to these challenges and changes in theenvironment, our company aims to provide unique andhigh value-added automation equipment centered on

Cartesian coordinate robots and their after-sales services.

As expressed in the words of our founder, "The Impossible
is the starting point for innovation," we have boldly takenon the challenge of new technologies. In the future, we

We Are Committed to Growing Our Global
Market Share Over the Next 50 Years.
YUSHIN celebrates its 50th anniversary in October 2023.

will continue to support factory automation by taking on
the challenge of solving problems with an ever-increasingawareness of issues such as safety, productivity
improvement, and energy conservation in the workplace.

We would like to take this opportunity to express our

sincere gratitude to our customers, business partners, andtheir patronage and support.

We Aim to Return to a Growth Trajectory
after 2025.

technological capabilities and worked to increase ourY U S H I N ' s b u s i n e s s m o d e l i s Fa b - l i t e ( m i n i m u mall other stakeholders who have supported YUSHIN with
We h a v e p i o n e e r e d t h e m a r k e t w i t h o u r u n i q u e

global market share through attentive sales, service, andproduction facilities) Management. We recognize thatYUSHIN brand products to the world, we have challenged

achieving this goal. First, we have formulated a corporate

quality improvement efforts. In the course of providing

ourselves to meet the specifications and deadlines requiredby our customers by developing various work methods andother means.

For the next 50 years, we aim to be a company that"provides the best proposals and services around theworld to satisfy and reassure our customers" in various

automation equipment, centering on Cartesian coordinate
robots including take-out robots, which we have cultivatedin our own company. We will continue to provide newautomation equipment that helps solve the demands ofthe times and social issues through all our employees, who
are highly regarded by customers for their "diligence andsincerity," and promote the creation of a company where

employees can work with a sense of fulfillment and peaceof mind. We hope to move forward in the next 50 years bybuilding a team that can create high value.

07

YUSHIN Report 2023

strengthening our human capital is an important theme for

Representative Director and President,
Ph.D. in Engineering

Takayo Kotani

identity (CI) that will serve as a compass for our employees,
and we are reviewing our personnel and education

systems. Human capital development is not somethingthat can be achieved overnight. We are stepping up efforts

to build an organization capable of steadily implementing
h u man re s ou rce d e v e lop me n t from a me dium- tolong-term perspective. In line with our roadmap forstrengthening human capital, we will strengthen ourhuman capital investment and organizational development
over the next two to three years, and after 2025, byreturning to a growth trajectory through focused humancapital investment, product development, and M&A effects,
we will achieve our medium-term management goals of

consolidated Net sales of 30 billion yen and consolidated
Ordinary profit of 5 billion yen or more. We will steadilytake steps toward achieving these goals.

08

Strengthening Value Creation through the
Resolution of Social Issues

We Aim to Strengthen Our Management
Base for Sustainable Growth.

in response to rising raw material prices, it was aservices that delight our customers," and the addition

In August 2022, we established Sustainability

Under "Strengthening the management base for theto increase 2.8% year on year to 23.0 billion yen,supported by strong demand for medical products inachieving our goal of delivering high-quality products

Committee, which I chair, and in February 2023,

sustainable growth of YUSHIN Group," we have set

to increase YUSHIN's economic and social value

capital and (2) Strengthening corporate governance.

we identified five materiality issues. We will workby addressing these issues, while contributing to asustainable society and environment.

For the newly identified materialities, a list of

candidates was compiled from the perspective of
stakeholders and the YUSHIN Group. Based on

discussions by members selected from each divisionand management meetings, these candidates wereranked according to their level of importance, and fivethe following materialities: (1) Strengthening humanWith regard to strengthening human capital, we will

foster a culture in which all employees work together
to develop human resources capable of sustainablegrowth and innovation in order to achieve numericalmanagement targets. We have concretized a long-term

roadmap, measures, and targets, and are enhancing theireffectiveness through PDCA (Plan-Do-Check-Act) cycles.

With respect to strengthening corporate governance,

items of high importance were identified.

more than one-third of the Board of Directors is"Solving social issues through business": (1) Promotion

External Directors is a woman from the capital market.

First, we have set the following materialities inof occupational safety, (2) Productivity improvementof the customers’ factory, and (3) Tackling climatec h a n g e . To i m p r o v e o c c u p a t i o n a l s a f e t y , w e w i l lcontribute to factory safety by replacing manual laborwith high-safety robots to perform hazardous tasks.
In addition, we will provide industrial robot safety
training to our customers. For ourselves and ourcomposed of External Directors, and one of the three

The Nomination and Remuneration Committee, chaired

very difficult year. For FY2024, we expect Net sales

addition to our mainstay take-out robots, although

uncertainty remains in the Chinese market. In terms

of profit, we expect a 9.1% year on year decline to 2.4
billion yen due to continued high material prices andcontinued aggressive investment in human resources.
Although the trend of declining profits is expected
to continue in the current fiscal year, the effects

of product price revisions are expected to be felt

from the second half of the fiscal year. The need forautomation against the backdrop of labor shortages in
the manufacturing industry is strong worldwide, andreinforcement of supply and service systems, including
expansion of production capacity, will be required.

establishing target KPIs, monitoring functions, and othercustomer base in the Nordic countries. In addition

In the future, we aim to increasing effectiveness,to the YUSHIN Group. WEMO is a take-out robot

increase the corporate value of the YUSHIN Group by

in 1987. The company has a high market share andrelated policies.

to take-out robots, the company also manufactures

A well-developed service system and rapid recovery
support capability are required.

With regard to responding to climate change, we

automation equipment and palletizing robots. We aim
to be "a trusted company that provides products andcustomers can rely on us. If one of our robots

impact on our customers' daily production volume.

we work together to build the future, we believe thatthese shared values will become our group's strength,
enabling us to deliver a higher level of "peace ofmind" and "progress" to our customers around theworld.

Through the Penetration of Corporate
Identity (CI) Activities, Employee AwarenessIs Being Raised.

society." Through CI activities, we engage in "activities

high-precision robots to improve our customers'

stops due to a malfunction, it will have a significant

use. WEMO and YUSHIN's goals are aligned, and as

On May 30, 2023, we acquired 100% of the shares

manufacturer in Värnamo, southern Sweden, founded

our sales and service network to ensure that ourcreation, such as innovation, productivity, and ease ofProtection of Personal Information), and improved data

training for employees (Subcontract Act and Act on thecontribute to a sustainable society and environment, andproductivity, we are also working to strengthen

developing its business by focusing on value-added

important for employees to feel that "their daily work

Rights Due Diligence, including suppliers.

In addition to developing high-speed,

their productivity. For many years, WEMO has beenreporting system, conducted various types of complianceof WEMO AUTOMATION AB, adding a new member

through the Health and Safety Committee and Humancan use our robots with confidence and increase

Together with WEMO, We Aim to Maximize
Synergies.

we have established and disseminated an internal

security.

own supply chain, we will implement ongoing efforts

with attentive service in Europe, so that our customers

demand continues to grow faster than expected. Rapid

by an External Director, ensures fair and appropriate
discussions from an objective standpoint. In addition,of WEMO as a group company is a major step toward

As for "employee job satisfaction," we believe it isis useful to customers" and "our work contributes toto put ourselves in the customer's shoes and think

about what will benefit the customer" and "activities

to engage in communication and information sharingthat transcends departmental boundaries." One of theactivities proposed by CI ambassadors (employees

who propose and implement CI penetration measureson their own), who were selected from young andmid-career employees, was to "deliver customers'

Review of FY2023 Results and FY2024
OutlookIn FY2023, Net sales increased 7.2% year on year

will reduce CO2 emissions generated in the production

to 22.3 billion yen, a record high, due to increased

Town hall meeting at WEMO

energy-saving products. For example, our mainstay

the large scale custom-ordered medical equipment.

At the end of May 2023, a town hall meeting waswith our proprietary Smart ECO Vacuum technology

to 2.6 billion yen due to rising material and sea

explained to WEMO employees that the values that

thereby contributing to energy conservation andassociated with aggressive investment in humanprocess at our customers' factories by developing

demand for our mainstay take-out robots as well as

RC-SE and YD series take-out robots are equipped

However, Operating profit fell 8.7% year on year

(PAT.P), which cuts air consumption by up to 78%,transportation costs and increased labor costs

decarbonization at customers' factories.

resources, despite improvements in operating

efficiency and the effect of the yen's depreciation.

held at WEMO AUTOMATION AB. President Kotani
the YUSHIN Group holds dear and the values that
WEMO has cherished are similar, and that she
expects the group to grow together.

Although we took steps to revise product prices

09

YUSHIN Report 2023

10

Vision and Medium-Term Management Targets
voices." By sharing information widely within theshareholder returns with a dividend payout ratio

would like to make the Company a rewarding placeincrease internal reserves so that we can make

Company about what customers say in the field, we
to work, where all employees are aware of customers,

think about what they can do for customers, and share
their evaluations. We also believe that it is importantto have a good working environment. We will always
consider whether our company's organization andenvironment are good from the perspective ofcreating a comfortable workplace, and strive to make
improvements.

We Will Strengthen Our Engagement with All
Stakeholders
We w i l l c o n t i n u e t o d e v e l o p h i g hvalue-added products and strengthenof 30% or more . We als o con s id e r it imp or tant toflexible investments and provide products andVision
A company that provides products and services that delight customers and earn their trust.
A company that contributes to society through its business activities.

services on an ongoing basis as needed. We hope

A company that provides rewarding and safe work.

that our company-wide focus on investment in humanresources, product development for the future, andthe effects of M&A will bear fruit and put us on a

growth trajectory, thereby improving ROE and PBR

through profit growth and strengthening shareholder
returns.

Medium-Term Management Targets

FY2023

Based on the founder's idea of "The impossible isMedium-Term Management Targets

the starting point for innovation", we will continue

Consolidated Net Sales: 22.3 billion yen

Consolidated Net Sales: 30 billion yen or more

forward to your continued support for YUSHIN.

Consolidated Ordinary Profit: 2.7 billion yen

Consolidated Ordinary Profit: 5 billion yen or more

Consolidated Ordinary Profit Ratio: 12.5 %Consolidated Ordinary Profit Ratio: 15 % or more

EPS: 56 yen

EPS: 75 yen or more

to take on challenges for the next 50 years. We look

our proposal capabilities to contribute to

our customers' productivity improvement
and provide the best services to satisfy

and reassure them. Together with WEMO,
we hope to expand our presence in theEuropean market and accelerate ourStrategy 1

Increase Product Attractiveness● Develop environmentally-friendly robots-Contribute to energy savings with Smart ECO Vacuum (PAT.P)

global expansion.

● Expanded high-speed robot product line

cooperative relationships with our● Achieved the clean room standards required by the medical,
electronics and container industries

YUSHIN's business is built on

suppliers. We value the relationship oftrust we have with our suppliers andStrategy 3

Cultivate a New Generation of Pioneers● Build the brand and human resources development policy on theconcept of "Above all, reach people's hearts“● Provide challenging jobs and a good working environment
Establish "Innovation Project Suggestion System" to develop
creative and independent human capital● Improve the education system to support employees as they growwill continue to work with them on

Technical training (including e-learning), next generation
leadership training, and manager training

to provide better value to society in the● Leverage mid-career recruits and foreign nationals to ensure
global diversity

With regard to our employees, we will

● Achieved 4.7% of female managers by promoting female power(industry average 3.6%*)

issues such as our human rights policy
future.

FRA series

work to create a "rewarding and safe

*Average in “Manufacture of production machinery” from "Basic Survey on Wage Structure"by Ministry of Health, Labor and Welfare (released in May, 2022)

work environment" where each employee
can maximize his or her potential andfeel happy to work for this company andJapan Society of MechanicalEngineers Technology AwardRed Dot
Design Award

Machinery Industrial
Design Award

JMF’s Energy-Efficient
Machinery Awardwith this group of people. We believethat if each and every employee can use
the Company as a vessel to work forsociety and lead a more fulfilling life, theCompany itself will become stronger.

We consider the return of profits toshareholders to be one of the mostimportant management issues, and we
aim to achieve stable and continuous

11

YUSHIN Report 2023

Strategy 2Strengthen Global Competitiveness● Develop products that meet regional needs

Strategy 4

Develop New Business● Launched palletizing robot in June, 2020

● Expand sales in Europe- Attract new customers, especially in the food industry● Target the world’s leading companies / Attract more local
customers- Appeal small-footprint and easy-access● Enhance brand image – showroom opened

12

Value Creation Process[ Outcome ]Social issues and changing environment
surrounding YUSHIN and the customers● Labor shortage inmanufacturing industry● Improvement in working

environment in manufacturingindustry, especially indeveloping countries● Plastic recycling● Growth opportunity in
new industries(e.g. Electric vehicle, metaverse)● Preventing global warming
and energy conservation● Improvement of living standard
in countries around the world● Growing geopolitical risks● Serious natural disaster

P26

Materiality(Solving social issues)- Promotion of occupational safety- Productivity improvement of thecustomers’ factory- Tackling climate change

Social value[ Business activities ]Develop take-out
robot business tosystem business

Development
Fab-light company

Technology

Financial
capitalStrong financial strength

Manufacturing
capitalFab-light management

Intellectual
capitalHumancapitalSocial andrelationshipcapitalNaturalcapital13

YUSHIN Report 2023

Equity ratio: 79.0%

Capital investment: 319 million yen● Raising the standard of living of people aroundthe world by supporting the delivery of high-quality,
low-cost products worldwide (Contributing to lighten
products and to improve sanitation standards throughthe use of plastics)● Responding to environmental conservation(climate change, chemical substance control measures)

Trust● Supporting production of biomass and biodegradable
plastic moldings as effort to address plastic issues● Contributing to demand for labor saving due to labor[ Input ]Management capital (FY2023)

Contributing to the creation of sustainable societiesin which people around the world
can lead safe and prosperous lives

shortage● Contributing to the safety and security of factories
Continuous user
support for partsand maintenanceserviceNew businesses
Global expansion

Economic value● Helping client companies generate profits● Helping client factories improve the productivity
and the quality of their products

Human Resource● Enhancing shareholder value

FinancePursuit of take-out speed and green
engineering

Research and development expenses:
399 million yen

Corporate Culture

Sustainable Management

The impossible is the starting point for innovation.

Materiality(Strengthening the management base)Multinational workforce structure

Number of employees (consolidated): 715(including foreign employees: 276)
Broad customer base

Number of sales and service base: 57
Purchase of electricity from renewableenergy sources (JAPAN)

Power usage: 2.195 million kWh (non-consolidated)
Water intake: 4,336m� (HQ and factory)

Susumu Kotani, YUSHIN’s Founder

Corporate Identity (CI)- Strengthening human capital- Strengthening corporate governance“Above all, reach people’s hearts.”

Management[ Output ]P26

Philosophy

RobotsCustom-Ordered
Equipment

Parts and
Maintenance
Services● Improving customer● Improving employee● Increasing the corporate
brand value● Cash generation

satisfaction

job satisfaction

14

Human Capital - Interviews with the Director in Charge
All We Do Must on Behalf of Reaching People's Hearts.

We are committed to creating a company where a diverse workforce can maximize their abilities andwork with a sense of fulfillment and peace of mind.

QA

I would like to hear about your plansand progress in strengthening humancapital.

We have begun formulating anddisseminating the CI in FY2021. Currently, We
are working on strengthening human capitalin three stages for the period thereafter.

During the period from FY2021 to FY2023, we focused onbuilding an organizational foundation for sustainablegrowth, and concentrated on creating a system andenvironment to formulate a CI, a new personnel system,

Director and Executive Vice President
General Manager of Administration Divisionand to improve employee job satisfaction. We have

Kota Oda

positioned FY2024 as a period for strengthening ourhuman capital for further growth, and we will strengthen

Q
A

The role required of the human resources

Director is to participate in management froma human resources perspective andcontribute to increasing corporate value andachieving sustainable growth. The following
three points are important tasks.
■ Human Resources Director's tasks(1) Contribute to improving management capabilities bystrengthening human capital(2) O v e r s e e a n d m a n a g e t h e p e r s o n n e l s y s t e m(recruitment and training system, evaluation system,
wage system, etc.)(2) Promote the recruitment and training of human resources

15

YUSHIN Report 2023

action guidelines; (3) to encourage the development ofeach individual's capabilities and sustainable employee

growth; and (4) to develop a fair and open system. Our
personnel system emphasizes the perspective of"s t re n g t h e n i n g t h e m a n a g e m e n t f o u n d a t i o n f o rsustainable growth".

In order to promote the key strategies set forth in our

new businesses), it is important to create an environment

can continue to work actively and vigorously, demonstrating

creation of innovation and expand the growth of thecreate an environment in which each and every employee

system. From FY2026 onward, we intend to accelerate thehis or her characteristics and abilities to the fullest.

organization on a global scale, while leveraging the effortsof the "period for building organizational foundations"

As specific measures, we are working on the following

environmental improvements: (1) promotion of corporate

and the "period for investing in human resources andstrengthening organizational development".

competitiveness, global competitiveness, and developingin which each and every employee can maximize his or

her abilities. Strengthening the respective foundations ofhuman resources, systems, and corporate culture will

increase productivity as an organization and lead to theachievement of these goals and strategies, which in turnwill lead to future financial value.

identity (CI) activities, (2) development of a personnel systemand human resources development policy that permeates ourphilosophy, (3) ensuring diversity of human resources, (4)Roadmap for Strengthening Human Capital

Roadmap

enhancement of education system according to career stages,and (5) improvement of job satisfaction and work comfort.

We will aggressively invest in human resources and develop ourorganization across the Company to make a leap into the future.
YUSHIN's Human Resource Development Policy
We Provide Products and Services
That Reach People's Hearts and Contribute to Society[Human Capital Enhancement]

2.Establish a personnel system and a human resources
development policy that instill YUSHIN ideals.

perspectives of its diverse human resources.

results; (2) to recognize those who put into practice ourbased on the penetration of our business philosophy, andWe strengthen our human capital to:organization that leverages the values andchallenge and recognize those who achieve

recruitment policy, and further strengthen our education

1. Promote corporate identity (CI) activities

medium- to long-term corporate value by creating an

f o u r p i l l a r s : ( 1 ) to e n c o u r a g e e f f o r t a n d

mid-term management goals (strengthening product(3) Instill within the organization the philosophy andpolicies that the Company emphasizes.

(1) Achieve YUSHIN's sustainable growth and increase its

A

The philosophy of our personnel system has

our organizational development through theimplementation of an employee sur vey, enhance ourWhat is your mission as the Director in
charge of human resources and how
do you think about strengthening
YUSHIN's human capital?

Q

You have defined the basic concept ofyour personnel system. How will thisapproach and its operation lead to
YUSHIN's future financial value?

PDCA

3.Ensure diversity in human resources(Diversity Management)
4.Develop an education system that meets each career
step
5.Create an Environment That Makes Work More
Rewarding and Comfortable

Strengthen
measuresMedium-Term Management Targets

Building the foundation■ Consolidated Net Sales : 30 billion yen or more

FY2021 ~ of the organization■ Consolidated Ordinary Profit : 5 billion yen or more

Strengthen human capital investment

FY2024 ~ and organizational development
Development oforganizational
infrastructure
for sustainablegrowth●Formulation ofCI●New
personnel
system●Creation ofvarioussystems andenvironments

FY2026 ~ Growth and expansion
Strengthening humancapital for further growth●Reinforcement oforganizational
development throughorganizational
diagnosis survey●Strengthen
recruitment policy●Enhancement ofeducation systemand programs●Develop global
human resources■ Consolidated Ordinary Profit Ratio : 15 % or more
■ EPS : 75 yen or more

Strategy: Increase Product Attractiveness
Strategy: Strengthening of Global Expansion
Strategy: Develop New Businesses

Utilize diverse
human resources
to expand growth
Create innovation
on a global scale

Human
Resources

Recruiting and developing excellent human resources
and improving their professional and management skills

Systems

Establish a system to properly evaluate results andmaximize each individual's strengths

CultureSpread the CI guidelines and foster a corporate
culture that encourages effort and challenge.

16

Q
A

How is CI penetration linked to theachievement of management
objectives? And how do you drive
behavioral change through CI
penetration?

Another perspective that our personnel systememphasizes is to "disseminate within theo rg a n i z a t i o n t h e p h i l o s o p h y a n d a c t i o nguidelines that the Company emphasizes". In April 2020, we
formulated a CI (Culture Book) and shared it within theGroup in order to define the corporate philosophy anddirection we should aim for, which we will continue toemphasize in the future, and to realize further growth andleaps forward. Based on the concept of "Above all, reachpeople's hearts", we have clarified our important ideas andaction guidelines, and are working to disseminate themthroughout the Group.

I have positioned the CI guidelines as the link between ourmanagement philosophy and our business activities andwork style. By ensuring that these awareness and actions arethoroughly implemented in our daily work, we will be able toalign our vectors with the direction the Company should takeand build a human resource base.

We are developing the following specific activities to spreadthe concept: communications by top management andexecutive branding training and workshops, enhanced
workplace dialog, employee-led ambassador project
activities, and sharing of best practices.

We believe it is necessar y to look at the effect of CI

penetration on behavioral change from two aspects: (1)organizationalchange and (2)individual behavioral
change.

Q

We measure thei m p a c to forganizationalchange throughsurveys of CI

A

penetration. The CI

penetration survey,

conducted about 1.5
year s af ter the CI
was formulated,showed that it isdesirable topromote penetration by proactively implementing thefollowing activities as necessary for penetration: (1) initiatives
that make the CI more familiar (such as the development ofbest practices and internal postings) and (2) initiatives thatare linked to daily work (such as evaluations and awards
based on the degree of CI implementation).

We also aim to incorporate and improve individual behavior

into our personnel evaluation system. We have implemented
a new personnel system based on our CI formulation. In it,

we defined what is expected of employees in their respective
jobs in terms of performance responsibility, human resource

development and growth, and culture development, and set
out the responsibilities and expectations of employees withrespect to CI. In addition, performance and behavior

evaluations are conducted as personnel evaluations tomotivate employees to be aware of the CI guidelines in theirwork.

CI Penetration Map

education system and training programs.

We have established Human ResourceQefforts through collaboration between eachdepartment and Human Resources Department.
YUSHIN's Human Resource Development PolicyA(a) Develop human resources who can embody and practice thecorporate identity (CI) based behavioral guidelines(b) Encourage continued learning and growth as career progresses

How do you approach employee
surveys?

As a new initiative this fiscal year, we

conducted an organizational diagnosis survey.
The purpose of the survey was to understand(c) Define role expectations and promote achievement of results
through job performancethe actual status and issues of the organization in order to(d) Encouraging effort and challenge, and providing various
opportunities and venues for advancement

motivation," and "organizational engagement," which will

i m p ro v e " o rg a n i z a t i o n a l p ro d u c t i v i t y, " " e m p l o y e e(e) Supporting the realization of individual "career design"

lead to the consideration of future human resource policies.

As for employee education, we are engaged in theitems: (1) penetration of philosophy and policies, (2)of employees' key talents, while focusing on career andthe organization, (4) status of personnel system, (5)The survey was conducted with the following diagnostic

programs shown in the figure. Regarding the development

leadership and management, (3) human relations withinprofessional development in each workplace, we provide

business execution mechanism, and (6) employee

education to enhance the abilities and skills necessary toc h a r a c t e r i s t i c s . A s a r e s u l t , 9 9 % of a l l e m p l o y e e s

perform their jobs and support them to aim for

responded, indicating a high participation rate.

autonomous growth. We also offer programs to develop

After the survey, we will plan to implement necessary

leaders who can drive growth and challenge, as well as

measures in areas that need to be improved andAs a recent initiative, we have introduced the "Innovation

the verification of the organizational diagnosis results. We

training to improve the management skills of managers.

strengthened, while developing our strengths obtained from

Project Activity Proposal System" to strengthen thehope to form a virtuous cycle of organizational and humandevelopment of human resources with "creativity" andresource management that will continue to provide new"initiative" and to create opportunities for them to take on

value to our customers through the growth of our employees

new challenges.

Before joining
the company

Development of CI penetration measures in the departments

CI action award system

Training incommonCreation and presentation of CI senryu poems by employees

CI-penetrating personnel evaluation system

Career support

Formation of cognition
and understanding

Building empathy

CI Culture Book distribution

Internal development of customer feedback

Promoting action

Professional
education
Departmental
education
Thematic educationand the enhancement of their job satisfaction.

Pre-enrollment
education

Younger employees
Entry training

Middle-level employees
Business skill improvement training
Follow-up training for new graduates

Leaders

Managers

Management
development education

Management training

Counselor system
Elder system

Career design training

Technical and administrative training
Departmental education, OJT
Compliance education
External training, seminars, internal study sessions
Leader development program

Selective
education

Overseas trainee system
Overseas pre-appointment education
Elder training

Penetration through in-house newsletters

CI penetration poster production and display

YUSHIN Report 2023

the business environment, we will work to enhance our

YUSHIN's Educational Programs

CI playing card production and communication

17

resources that can create value in response to changes in

Development Policy and are strengthening ourCI penetration workshop, training

Building a special CI website

To strengthen the foundation for creating human

Please tell us about your humancapital development efforts toachieve your management goals.

Self-development

Counselor training

Incentive program for correspondence education, Online English conversation education system
Incentive program for the acquisition of qualifications
e-learning

18

The Three Pillars of YUSHINYUSHIN’s Strength
Technology

Broad Customer Base

High-speed take-out

Customers in wide range ofindustries P25

RobotsTake-out robots

Approximately two-thirds of plastic molded products are
made by a process called injection molding. Plastic melted
at high temperature is injected into the mold and thencooled to form molded products. Dedicated robots forremoving plastic products from molds are called "take-out
robots," which are installed on many injection molding
machines and used in the production of a wide variety of
products.
Take-out robot is playing an active role in manufacturing

Palletizing robots

a variety of plastic molded products, ranging from small
parts inside smartphones to large parts such as automotive
bumpers. Until now, YUSHIN has actively introduced avariety of industry-first technologies in pursuit of the speedof robots (Ref. p5, p6). In addition, palletizing robots thatconvert the mechanism of take-out robots are being soldto new users outside the plastics industry, such as the foodindustry, contributing to the automation of the work ofloading cardboard boxes and other materials on pallets.

Optimum lightweight design(first in the industry)■ Low-vibration by vibration control(PAT)■ Vibration-damping by CFRP■

Energy saving■

Globalization

57 sales and service bases in the world(the best in the industry)■ New base in Sweden (May 2023)

Power saving by Smart ECO Vacuum(PAT.P.)■ Power saving by Ecology Mode■

Branch out into new businesses■

System proposal■ High safety level■

Custom-Ordered
Equipment

We offer custom-ordered equipment that supports theautomation of each process before and after plastic
products are taken-out. The stock system temporarily
stores products taken out by take-out robots and supports
continuous molding for long periods of time during the

Reliability

Financial Strength

Top market share

Strong balance sheet■■

Pursuit of take-out speed■ Strict observance of delivery dates

Occupational safety

Compliance with internationalsafety regulations■ 53 safety assessors(as of the end of March, 2023)

Support capability

Fast troubleshooting■ Worldwide service bases■ Trouble-free products■

We have established a comprehensive maintenance andsupport system throughout Japan and around the world sothat users can confidently operate our robots andcustom-ordered equipment after they are introduced. We

19

YUSHIN Report 2023

P35■

Parts and
Maintenance
Services

provide high-quality service to keep customers'
production running by responding quickly to thereplacement of robots' consumable parts.

Expansion into food industry with
Palletizing robots

Human
CapitalManagement

Gate cut stock system

day and night. The gate cut system solves the gate cutting
problem of injection molding automation with high speed
a n d h i g h p r e c i s i o n . We a l s o o f f e r v a r i o u s o t h e r
custom-ordered equipment, such as insert molding
automation systems and automated packaging systems.

P63 64■

P29

Power to propose solutions

High-capacity stocker

Mobility, electronics, medical andothersNon-debt management

High equity ratio■

79.0% (FY2023)

Fab-lite(Minimum production facility)

Flexibility to respond to the market
Low fixed cost
■ Strong supply chains■■

20Financial Highlights
Profit Attributable to Owners of Parent, ROE

Net Sales, Operating Profit, Operating Profit Ratio
Net sales

Millions of yen

25,00021,83320,011

20,00015,000Operating profit

12.6%

Operating profit ratio

18,473

11.5%

20

13.8%

13.7%

15

11.8%

10,000

10

5,000
0

%

25

22,373

20,8742,760

FY2019FY2020

2,639

2,890

2,522

2,309

FY2021

FY2022

FY2023

Profit attributable toowners of parent

Millions of yen

3,000
2,500
2,000

1,903

1,500

7.2%

1,532

1,000

5

500

0

0

10
1,922

7.1%

6.5%

5.7%

%

12

2,112

1,827

Number of Employees / Rate of Female Employees
ROE

8
6

6.1%

4
2

FY2019FY2020

FY2021

FY2022

800

689

683

700

692

681

Rate
715

100

70

80

80
60

500

50

400

40

300

30

17%

200

17%

17%

16%

17%

100

%

%

600

0

FY2023

NumberPeopleAnnual Paid Leave Acquisition Rate (Employees in Japan)

FY2019FY2020

FY2021

FY2022

FY202357%

FY2019FY2020

62%

59%

61%

FY2021

FY2022

FY2023

40

20

20

10

0

57%

60

0

0

In FY2023, Net sales reached a record 22,373 million yen (up 7.2% year onyear). Despite the impact of the China lockdown, sales growth in theJapanese and North American markets, as well as large scale custom-ordered
medical equipment in Europe, contributed to the increase. Operating profit
was 2,639 million yen (down 8.7% year on year) due to higher labor costs
and soaring raw material prices and ocean transportation costs.

Profit attributable to owners of parent for FY2023 decreased by 9.0% fromthe previous year due to the significant impact of increased labor costs andrising raw material and ocean transportation costs, despite the foreignexchange gains resulting from the weaker yen. ROE was 6.1%, down 1.0
point from the previous year.

We are growing our workforce by aggressively investing in humanresources around the world.

Since 2021, we have been working to create an environment that makes it
easier for employees to take paid holidays, such as by establishing days on
which employees are encouraged to take paid holidays.

EPS, Dividends, Dividend Ratio

Capital Investment, Depreciation, R&D Expenditures

The Number of Employees in Childcare Leave, Rate of Taking Childcare Leave

The Number of Employees Who Take Shortened Working Hours System

People%People

90

18

EPS

Yen

Cash dividends per share

Dividend ratio

100

50th anniversarycommemorative
dividend

80
60

54.5

40

30.9%

45.0
40.0%
18

17

20
0

FY2019FY2020

62.1

53.7

30.6%

33.5%

53.1%
30

19

18

FY202156.5

FY2022

FY2023%100
80

Capital investment

Millions of yen

Depreciation

R&D expenditures

1,000

60

600

40

400

703

413
256

20

200

0

0

10

846

778

800

198

FY2019

100%

100%

367

347

319

5

399

1

4
3

0

FY202320%

00

1
FY2022

70
60

2

2

FY2021

80

4

6

521

100

100%

7

585

125

FY2020100%

9Rate of female employees in the leave
Rate of male employees in the leave

8

643

369

Female employees in the leave
Male employees in the leave

FY2019

0%

4

40%
0

4
6%

FY2020

FY20212

5
0%

FY2022

50
40
30
20
10

FY20230

In order to provide stable and continuous shareholder returns, we aim fora consolidated dividend payout ratio of 30% or higher. We intend toincrease the level of ordinary dividends by improving our consolidated
performance. In FY2023, we paid a total dividend of 30 yen per share,
consisting of an ordinary dividend of 20 yen and a commemorative
dividend of 10 yen for the 50th anniversary of our establishment.

Recent capital investments include the opening of a showroom in FY2023
and the purchase of land near the headquarters in FY2022. Depreciation
has decreased each year since the construction of the new headquarters
facility in 2016. We have traditionally prioritized certain R&D expendituresin all economic conditions and continue to invest for our growth strategy.

In addition to helping female employees take childcare leave and return towork, we are proactively taking measures to support all employees who areraising children, such as publicizing the contents of the system throughlectures and roundtable discussions, sharing experiences with employees
who have taken the leave, and preparing and distributing pamphlets todeepen the understanding of the system. In FY2023, both of male
employees in the leave and rate of male employees in the leave increased.

Overseas Sales Ratio

Cash and Bank Deposit, Interest-bearing Debt, Equity Ratio

CO₂ Emissions in Japan

Overseas sales ratio

%

100
80
60

9,304

57.4%

8,159
59.2%

Overseas sales

Sales in Japan Millions of yen
25,000

8,262

8,851

6,936
62.5%

60.4%

60.4%

20
0

20,00012,528FY201911,851

FY202011,537

FY2021

12,612

FY202220,00015,0005,000
0Interest-bearing
debt

83.5%

Equity ratio

%

100

83.5%

79.0%

75

1,308

1,267

1,200

1,197

25

400
200

0

0

0

0

0

0

FY2019FY2020

FY2021

FY2022

FY20230With no major expenditures in the past few years, cash and deposits havebeen increasing, and in FY2023, the increase was due in part to Advances
received from the custom-ordered equipment business. We will continue
to prepare for future increases in demand and flexible investments at theappropriate time.

0

14
12
10

2

1

8
6
4

FY2019FY2020

FY2021

FY2022

FY2023In FY2023, we will switch to electricity derived from renewable energy
sources, resulting in a significant reduction in CO ₂ emissions fromelectricity use. In addition, solar panels have been installed on the roof ofthe headquarters plant to reduce CO ₂ emissions through in-house
consumption of solar-generated electricity.

1

2

2
13

11

9

10

FY2019FY202010

2
0

FY2021

FY2022

FY2023

Shortened working hours is available for our employees until their children move
up to the fourth grade in the elementary school while it is up to three years old in
legal requirement. In recent years, the number of male employees using the system
has increased. Over the past few years, all eligible female employees have used thissystem and attained to balance work and childcare, and they are getting
understanding and support of the other employees. We will continue to strive toimprove the workplace environment according to the life stages of our employees.

Electricity Usage (in Japan), Water Intake Quantity(the Headquarters and Technical Center)
Electricity usage

1,000kWh

3,000

2,375

2,304
5,932

6,176

2,222

Water intake quantity

m³

9,000
7,500

2,195

2,141

6,000

5,613
4,499

1,500
494

Male

16

2,000

800

Female

20

2,500

1,130

600

6,362

5,000

Gasoline

1,000
50

8,646

Electricity

t-CO₂

1,600
1,400

16,16912,404

11,69010,000Overseas sales ratio has been around 60% in recent years. Currently, the
YUSHIN Group has a global network of 57 offices, providing sales andafter-sales services in countries and regions around the world.

YUSHIN Report 2023

80.9%

85.3%

15,00013,521

FY2023

Cash and bankdepositMillions of yen

10,00040

21Non-Financial Highlights

4,336

4,500

1,000

3,000

500

1,500

0

FY2019FY2020

FY2021

FY2022

FY20230

We use electricity as the main energy source at our headquarters plant,
and although electricity consumption increased in FY2023 due to higher
production output, we are continuing efforts to reduce energy
consumption by implementing rational production plans, setting light-off
times, and reducing power consumption through the use of LED lighting
installed at the headquarters.

22

Sales by Region

Sales by Product Category

Japan

Robots
16,000(Millions of yen)

15,512
12,7708,000

14,282

14,154

11,904●Decreased 128 million yen (0.9%)

Sales ratio(Millions of yen)

9,304

8,159

6,936

8,262

Overseas sales

FY20197,256

FY20207,718

FY20218,911

FY2022

8,887●While sales in North America,
Korea, and Thailand were strong,
China was affected by the market
slowdown due to the lockdown.

FY2023

FY2023
Robots63%

Future Growth Strategy

We will continue to develop products that meet regional and industry characteristics. In addition, we will make further
efforts to develop products that reduce the environmental impact and increase the added value of take-out robots.
Through the palletizing robot launched in 2020, we also plan to expand our product line outside of the plastics industry.

0

4,406
3,422

2,880
2,500

2,866
2,034
Overseas sales●Increased 1,281 million yen

3,124

2,408

Future Growth Strategy

FY2020

FY2021

FY2022●Sales to the medical market grewin Europe, and sales were alsostrong in Japan and North America.

1,729

1,375

FY2019(41.0%) year on year to 4,406
million yen.

Sales ratio

FY2019FY2020

FY2021

FY2022

7,692

5,000

The others in Asia

4,876

5,900

6,940

6,860

3,622

4,060

3,504

3,032

2,816

2,395

2,753

3,318

FY2019FY2020

FY2021

FY2022●Decreased 80 million yen (1.2%)
year on year to 6,860 million yen.

●While sales in Korea and Southeast

Due to the shortage of human resources, the need for automation is becoming even greater both in Japanand overseas. We will continue to focus on custom-ordered equipment (system projects) that havesynergy with take-out robots and provide solutions that benefit our customers.

Parts and Maintenance Services

FY2023

4,674

3,343

3,375

China & Taiwan 13%
The others in Asia 18%

3,185

3,147

3,467

3,812

year on year to 3,812 million yen.

2,500
Overseas sales

1,810

FY2019Future Growth Strategy

YUSHIN Report 2023

1,728

FY20201,784

FY2021●Increased 345 million yen (10.0%)

Sales ratio

1,971

FY20222,225

FY2023●Sales increased due to an increasein the number of robots inoperation worldwide.

FY2023
Parts and Maintenance
Services17%

One of our competitive advantages over other companies is our service network, which is the best in theindustry. We will continue to focus on attracting and training the people who will support our global
expansion and develop high-quality services around the world.

●Increased 571 million yen (13.9%)
year on year to 4,674 million yen.

●Sales of take-out robots and2,500

custom-ordered equipment werestrong, especially for mobility andmedical applications.

FY2019FY2020

FY2021

FY2022

Sales ratio
North America

21%

FY2023

FY2023

Europe(Millions of yen)

3,000
1,782
1,075

939

1,333

0

FY2019FY2020

FY2021

FY2022

Sales ratio●Increased 257 million yen (23.9%) Europe 6%
year on year to 1,333 million yen.

●Sales increased due to large scalecustom-ordered medical equipment.

(Millions of yen)

3,440

Asia

31%

(Millions of yen)

3,233

1,500

5,000

FY2023

Asian countries remained strong,sales in China were sluggish due tolockdowns.

2,799

4,103

2,079

23

5,786

Sales ratio

North America

0

FY202340%

FY2023(Millions of yen)

5,000

Custom-Ordered
Equipment
FY202320%

FY2023

Asia

0

4,056

Japan

capital investment, mainly in theelectronics industry.

(Millions of yen)

5,000

0

●Increased 589 million yen (7.1%)●Sales grew due to demand for

China/Taiwan

Custom-Ordered Equipment

Sales ratio

year on year to 8,851 million yen.

5,000

10,00008,851

year on year to 14,154 million yen.

9,256

0

10,000

FY2023

FY2023

Other Regions(Millions of yen)

3,000

1,500
663

0

FY2019

527

593

492

FY2020

FY2021

FY2022

653●Increased 161 million yen (32.7%)
year on year to 653 million yen.
●Sales were strong mainly in Mexico.

Sales ratio

FY2023

Other
Regions 3%

FY202324

Sales by End-User Industry

Sustainability

YUSHIN Robots Are Used in a Wide Range of Industries
YUSHIN's robots are used in factories that manufacture plastic injection molded products. As a result, YUSHIN's business is
expanding into various industries that use plastics. The mobility industry, centered on automobiles, is expected to continue togrow due to the fact that many of its parts are being replaced with plastics and the need for further weight reduction due tothe shift to electric vehicles. The medical industry, where plastic products are mass-produced for hygienic reasons, is anindustry with which we have a strong affinity, given our strength in the speed and accuracy of robotic operations. We also
expect hardware growth in new areas, including virtual reality.
In FY2023, in the mobility field, sales of take-out robots to the Japanese, North American, and Thai markets remained strong.
In terms of sales to the electronics sector, there was growth in the domestic and North American markets. There were also
many sales in the Chinese market, mainly to electronics, and although sales decreased from the previous year, electronics stillaccounted for the largest percentage of sales in the Chinese market.
Sales to the medical sector were strong, thanks to the sale of large scale custom-ordered equipment for the European
market. Sales in North America have also been strong in recent years, and medical is YUSHIN America's top sales category. In
the medical field, the YUSHIN brand is gaining recognition for its speed and accuracy, and the medical sales in China andother markets have been increasing in recent years.

In February 2023, YUSHIN has decided on Sustainability Basic Policy and identified materialities to realize asustainable society and increase corporate value over the medium to long term.

Sustainability Basic Policy
We contribute to the creation of a sustainable society and environment, and aim to increase our corporate value bycontinuously developing our business, through our business activities centered on providing labor-saving solutions.

Materiality Identification Process
YUSHIN has identified the following five materiality issues of YUSHIN Group to realize a sustainable society and increase

corporate value over the medium to long term. In identifying these issues, YUSHIN listed candidates for materiality from theviewpoints of stakeholders and our group-wide management. The members selected from the Board of Directors and thedepartments discussed the candidates and identified those that were of particular importance by mapping them according totheir level of importance.

Going forward, YUSHIN will establish policies for addressing identified materiality, and through the implementation of these

Sales (Millions of yen)policies, will strive to contribute to the creation of a sustainable society and environment and to increase corporate value.

25,00021,833657

20,000

1,916
3,195

15,000

2,229
2,705
704

10,0003,698

20,011

18,473

2,110

501
1,496

1,966

1,653
1,764

4,303
465
3,617

1,291 Others
1,314 Containers

657

1,350

Electrical
1,782 appliance

1,873

Sundry2,298 products

2,471

4,366 Medical *1

3,633

4,878

650

624

4,653

Disc and
opticalinstruments*2

5,444 Electronics *1 *2

3,305

5,000
6,724

0

20,874478

1,276

22,373

FY20195,792

FY20204,247

FY2021

5,582

FY2022

5,875 Mobility *1

FY2023*1 "Automotive", "Electronic parts", and "Medical products" have been renamed “Mobility”, “Electronics”, and “Medical” respectively.
*2 "Discs and optical instruments" has been merged with "Electronics."

Future Growth Strategy

25

YUSHIN Report 2023

We believe that the need for plastics will be stronger than ever in the mobility industry, where lighter weight isrequired, and in the medical industry, where hygiene is often a consideration, and we expect these industries tobe the drivers of our business development in the future. In addition, we will focus on product development thatmeets the needs of each industry.
Currently, we are diversifying our risks by expanding into a wide range of industries in the event that a specificindustry goes into recession. In the future, we will aim to further diversify target industries by meeting the needsof new industries (such as the food industry).

YUSHIN Group's Materiality
DECENT WORK AND
ECONOMIC GROWTH

Solving social issues through business
Materialities

Why we think it is important?

Promotion ofoccupationalsafetyBecause occupational safety is an important factor
for us as a manufacturer of production equipment,
and it leads to fundamental respect for humanrights.

Productivity
improvement of
the customers’
factory

Because productivity improvement can bringhigh-value-added products to people and the
products can improve living standards of people
around the world including healthcare and education.

Tackling climatechangeBecause climate change is a major problem thatthreatens the living environment for many people
around the world. Corporations should address the
problems as members of the world.

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTIONPARTNERSHIPSFOR THE GOALS

Examples of initiatives
Development of products with enhanced safety performance
Providing customers with trainings for occupational safety● Continuous efforts of the Health and Safety Committee● Thorough implementation of human rights policies andimplementation of due diligence●●

Development and sales of high-speed andhigh-precision robots● Functions to improve productivity● Enhanced maintenance and service system●

Goals to achievewith customers
GOOD HEALTH
AND WELL-BEINGQUALITYEDUCATION

CLEAN WATER
AND SANITATION

Development and sales of energy-saving products
Switching electricity usage of our business sites to renewable energy● Switching from gasoline-powered vehicles to environmentally friendly vehicles● Identifying climate-change risks at our sites and supply chains, and formulating BCP●●

Strengthening the management base for thesustainable growth of YUSHIN Group
Materialities

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

GOOD HEALTH
AND WELL-BEING

Why we think it is important?

QUALITYEDUCATIONDECENT WORK AND
ECONOMIC GROWTH

Examples of initiatives
Thorough implementation of human rights policies and implementation of due diligence
Creating a culture and environment that makes innovation happen● System to allow long-serving in accordance with respective life stages● Effective training● Instilling Corporate Identity (CI)●

Strengthening
human capital

Because people are the source of added value.

Strengthening
corporate
governanceBecause lack of trust of stakeholders make business
operations difficult.
Penalties associated with compliance violations,decline in brand value, and data leaks due tosecurity failures also can be threats against theoperations.

●

More than one-third of Directors are External Directors
Establishment of Nomination and Remuneration Committee (chaired by an External Director)● Evaluating effectiveness of the Board of Directors● Whistleblower system● Compliance training for employees● Improving data security●●

26

ESG / SDGs

Risk Management
YUSHIN management team identifies following risks which may have significant impacts on financial statements, business

Financial risk

External factor(market trend)

Related risk

●Capital expenditure in plastic injection molding
industry●Impact from exchange rate fluctuations (strong

External factor(purchasing)●Our business runs in multi-industry markets to●Price fluctuations in raw materials●Parts supply restrictions from suppliers and●We attempt to manage minimizing purchasediscontinued parts●Parts shortage due to demand rise in market

Without optimization

prevent impacts from economic fluctuations in aparticular industry●We keep on developing new models and reducing●• Won the JMF’s Energy-Efficient Machinery Award• Continuous development of energy-saving products(e.g. Design optimization)

Our effortsyen) on the yen equivalent of the overseas
subsidiaries’ business results

Low-priced competition

manufacturing cost and SGA expenses

price fluctuation by setting up multiple andreliable supply routes

133.6 kgInternal factor(accident)●Earthquake and storm damage●Urban lockdown and stay-at-home order due topandemic diseases around the world●Warranty costs due to quality issue●Labor accidents●Cyber accidents such as information leaks, lossof important data, and operating system outage
caused by information security issue (cyberattack, computer virus and unauthorized access)●Operating system outage due to information
technology system failure

Others27

YUSHIN Report 2023

●Weakness in securing human resources for
rapid business development●Resignations and leaves of absence in the areaof specialty●We maintain system that enables flexible design• Reduction of CO2 emissions (target: 70% reduction from FY2021
levels by the end of FY2031)• Switched to the power generated by renewable energy source• Information disclosure based on TCFD recommendations●In the event of an emergency, we maintain

resilient and efficient business operations
through thorough infection control and hygiene
management, staggered work hours, telecommuting, and web conferencing.

Product liability insurance●We pay careful attention to the safety measuresof machinery and equipment, as well as thehealth and safety of our executives and employees, in order to prevent industrial accidents.

• YUSHIN Group Human Rights Policy and risk identification• Human rights training and education< Working Style Reform for Customer Factories >S(Social)

CLIMATEACTIONPARTNERSHIPSFOR THE GOALS< Safety and Security>• Supply of robots with the highest safety standard of the world< Improvement of Working Environment >• Health management (certified as the 2023 Certified Health &Productivity Management Outstanding Organizations)• Maternity leave and shorter working hours (better than required by law)
• Promotion of health and safety< Social Engagement >strengthen IT security. We also train and enlighten management and employees●We improve working efficiency by IT technology●We empower women

RESPONSIBLE
CONSUMPTION
AND PRODUCTION• Supply of automation system for entire plant●We strictly maintain IT security status andto keep employees and personnel system tosupport motivated employees. With this efforts,
we recruit and develop necessary humanresources to facilitate the development of the
global business expansion

INDUSTRY, INNOVATION
AND INFRASTRUCTURE< Human Rights >●We have a strict quality management structure which●We purchase Contractors’ liability insurance andWeight comparison ofdrive component in
YD2-1025D< Efforts to Fight Climate Change and Decarbonize >“Business continuity plan.” And we have disseminated the plans to our employees and conduct
emergency exercise on regular basis. We havealso set-up “Safety confirmation system.”complies with an international quality standard
by setting up quality control standard, thoroughquality management, and suitable measures

WeightReduction

Take-out robot YD serieschanges●Sales and costs of goods sold are recorded in the following consolidated fiscal year due to the acceptancestatus of the goods delivered at the end of fiscal year

99.5 kg

25.5%

DECENT WORK AND
ECONOMIC GROWTH(Environmental)• Contribution to Japan Super Science Fair (JSSF)• Participation in manufacturing workshops for high school students●We make efforts to improve working conditions
Internal factor(human resources)

With optimization

E●We have prepared “Disaster prevention plan” andExternal factor(natural disasterand others)

SDGs YUSHIN
Focuses on< Environmentally-Friendly Products >performances and cash flows around YUSHIN Group.

< Governance Enhancement >G(Governance)• 3 of 8 Directors are External Directors• Board of Directors improvement by effectiveness evaluation• The Nomination and Remuneration Committee chaired by an External Director• Establishment of Sustainability Committee< Diversity >• 2 of 8 members are women

GOOD HEALTH
AND WELL-BEINGQUALITYEDUCATION

CLEAN WATER
AND SANITATIONSDGs YUSHIN willaccomplish with customers

28E: Environmental - Policy and Products

E: Environmental - Efforts to Fight Climate Change and Decarbonization

Environmental Action Policy

Reduction of CO₂ Emissions

YUSHIN will contribute to the environment in product development
andwork to reduce environmental impact as a common initiative for all employees
Product Development Initiatives

1

Scope 1 and 2 in Japan by 70% at

the end of FY2031 compared to
FY2021 levels. Scope 1 emissions

Company-Wide Initiatives

Continuous development of energy-saving products

2

arePaperless promotion

efficient operations

environmental impact, and that are compatible withenvironmental conservation by using technologies that are

3friendly to people and the environment.
<Recent Examples>• Awarded at the Energy-Efficient Machinery and System• YUSHIN

Awards of the Japan Machinery Federation (FRA series)

will

take

the

optionofreducing

theenvironmental impact when constructing and expanding• Developed new products that are environmentally conscious

fromlighting, purchase of electricity from renewable energy

Series, YD Series)

sources, purchase of environmentally conscious vehicles)• YUSHIN will cut down the use of company vehicle byworking-at-home and video meeting.

FY2019FY2020

FY2021

FY2022

FY2023

Scope1 (gasoline)

538

511

455

479

492

Scope2 (electricity)

769

755

742

650

2

t-CO ₂

Electricity

1,500
1,308

from electric power we buy and
heat.

1,267

1,197

70

494

500

• Electricity: All domestic bases use
the renewably generated powers.

• Vehicles: All vehicles in thedomestic bases are hybrid.

0

19

20

FY

20

20

FY

21

20

FY

22

20

FY

Gasoline%
reduction

1,130

1,000

the plants or purchasing company vehicles. (use of LED

and contribute to Carbon Neutral (Smart ECO Vacuum: RC-SE(t-CO₂)

Figures for overseas offices are currently being calculated<*Calculated based on the following
assumptions>

Reduction of CO₂ emissions

Details

emissionsemissions are indirect emissions

Reduction in paper consumption by promoting more

YUSHIN will endeavor to develop products that have low

directin-house fuel use. Scope 2

Details

Details■ CO2 emissions in Japan• We aim at reducing the total of

23

20

FY

416

398

24
20 d)
FY anne25
20 d)
FY anne

l

(p

l

(p

350

31
20 t)
FY arge(t

Switching to Electricity Derived from Renewable Energies
YUSHIN has switched all of power consumption at the headquarters/TechnicalCenter and the regional sales offices directly contracted with power supply

companies, to renewably generated powers since April 2022. This is achieved bypurchasing the renewable powers and using the solar power generated on site.
The facilities consume about 2 million kWh electricity per year. The switch

Reduction of Environmental Impact

reduces CO2 emissions by about 740 tons per year.

Constant Effort to Develop Energy Saving Products

Solar panels on the roof of the headquarters
The panels generate as much power as thebranch office requires where the renewableenergy is not available.

Facilities using Renewable Energies

We constantly develop energy saving products working

Facilities using Private Solar Power Generation Systemsuch as design optimization, are highly evaluated.

24/7 at customers’ site.

Chubu General Sales Office

In July 2021, we have rolled out a new robot RC-SE which

In 2019, FRA robots, our flagship model, received the

Nagoya-Nishi Sales Office

has Smart ECO Vacuum (PAT.P) evolved from ECO Vacuum®

JMF’s President Award at the Energy-Efficient Machinery– our unique technology to save air consumption. Thisand System Awards of the Japan Machinery Federation. Thisfeature can reduce up to 78% of air consumption maximum,Awards was formerly called Energy-Efficient Machine Awardand can lower electricity consumption of the compressor.

which our YC robots had received. We are confident that
our continuous efforts to develop energy saving products

Reductions
up to

78 %

Headquarters & Factory

Toyama Sales Office
Nagano Sales Office

Technical Center

Niigata Satellite Office

Nishi-Nihon General Sales Office
Hiroshima Sales Office

Iwate Satellite Office

Fukuoka Sales Office

Tohoku Sales Office
Higashi-Nihon General Sales Office

Oita Satellite Office

Tsukuba Sales Office
Shizuoka Sales Office

Nishi-Kanto Sales OfficeAir
consumption

YUSHIN Report 2023

Without ECO Vacuum®

SuctionWorkpiece

With ECO Vacuum®

Close

29

Suction pad

Gradual Transition to Environmentally Friendly Vehicle (hybrid vehicles)
Open

Take-out robot RC-SE series

Vacuum pressure
auto monitoring
ECO valve

Close

Workpiece

Air
consumption
Open

SuctionAir
consumption• In March 2022, we have decided to gradually switch to
SuctionAuto

Workpiece

With Smart ECO Vacuum(PAT.P)

YUSHIN measurements

environmentally friendly vehicles (hybrid vehicles). We will

promote further environmental friendliness through theactive introduction of hybrid vehicles and our existing

Percentage of hybrid vehicles among company cars

6%(FY2022, actual) → 77%(FY2031, target)

efforts to promote eco-driving.

30

E: Environmental - Disclosure Based on TCFD Recommendations■ Climate change-related opportunitiesType

In April, 2022, YUSHIN has declared to support for the recommendations of Task Force on Climate-related

Financial Disclosures which is created by Financial Stability Board (FSB.) YUSHIN will further promote its
effort against climate change to date, and enhance its disclosure based on the recommendations of TCFD.

Resource
efficiency

Governance
YUSHIN takes climate change as an issue to be addressed

the committee, all inside Directors discuss the progress of

The management meeting is the supreme decision-making

and assessment of risks and opportunities. The basic policy

Energy source

Committee, and the result of the enforcement are to be

Products&
Servicesin the governance and management system for sustainability.

body for business execution. The meeting and theSustainability Committee are both chaired by the

Representative Director and President. At the meeting andtheir commitments on climate change and the identification
resolved at the management meeting and Sustainability
reported to the Board of Directors.

Strategy and Scenario Analysis
YUSHIN’s “Environmental Action Policy” is that all

employees are committed to contributing to theclimate change and assess the impact on business.

YUSHIN clarifies the impact of climate change on

environment in product development and reducing

procurement risks on energy and raw materials, risk in

The worldwide movement for environment is changing

temperature rise, and sea level rise. YUSHIN will reduce theseenvironmental impact.

drastically from day to day, which has to be addressed

properly. YUSHIN identifies risks and opportunities related to■ Climate change-related risks
Risks Related to "Physical" Changes
Risks related to the transition to a low-carbon economy
due to Climate Change

Type

Policies andregulations

Technology

Marketrisks and turn them to opportunities.

Frequency of occurrence*

Carbon tax Introduction
and its hike by
governments• Rise in raw material procurement costs

YES

YES

YES Low• Rise in renewable energy procurement costs• Rise in cost of switching company car from gas
vehicle to environmentally friendly vehicles

YES

YES

YES Medium

YES

YES

The development cost of robots with
low-carbon technologies cannot be • Rise in investment costs
recovered at an early stage.
The material shortagedue to the spread of lowcarbon technologies

Stricter environmental
policy by customers

Reputation

Changes in stakeholder
behavior

Acute

Occurrence of extreme
weather (typhoon, flood,
tornado, heavy snow)• Cost rise due to higher procurement prices• Impact on the production due to the parts
unavailability• Loss of sales opportunities due to delay inaddressing environment issues in YUSHIN Group• Decline in corporate evaluation due to delays in
responding to environmental considerations anda lack of disclosure of environmental information• Decrease in sales and increase in expenses due tothe shutdown of the headquarters and TechnicalCenter, which are responsible for production

Average temperature rise

• Electricity consumption rise and cost increase
for measures against heat stroke in order tomaintain a comfortable working environment
for factory workers and service workers

Sea level rise

• Need to relocate production sites wherewater-related disaster risk exceeds
acceptable levels

Chronic

Short Medium Long Evaluation

YES
YES
YES

YES

*Short-term means it happens within 3 years, medium-term by 2030, and long-term by 2050.

31

Risk

Impact on business

YUSHIN Report 2023

How YUSHIN responses to the risk

View the costs should be borne by the entire supply
chain for the benefit of a sustainable society

Medium View this as future growth investments

YES

MediumYES

Promote information disclosure with the support ofMedium Task Force on Climate-related Financial Disclosures(TCFD)

Actively develop environmentally friendly products
such as improved energy-saving functions

Low to • Implement Business Continuity Plan (BCP)
YES
Medium • Take measures against typhoons and floods
YES Low

YES

Promote recycling• Cost reductions through efforts to increase reuse opportunities

Realize efficient transportation• Reducing costs by pursuing efficient transportation by promoting product weight reduction
and reduction of materials used for transportation

Decrease transportation use• Reducing sea transport costs by promoting local production

Utilize low-carbon energy sources• Reducing the impact of possible cost increase in fossil fuel and GHG emission regulations
by promoting renewable energy, and GHG emission regulations

Expanse development and salesof energy-saving and low-carbon
products• Sales increase due to increased demand for environmentally friendly robots• Sales increase by increasing product value, including ECO Vacuum®, Smart ECO Vacuum(PAT.P), and Ecology mode
• Increase in service revenues due to the demand for long-life robots to reduce environmental impact

Cope with to average temperaturerise• Increased need for automation as work environment worsens for workers• Demand increase for the development of the products that can run in harsh environments

Sales increase due to market demand
increase for heat stroke control
products or medical-related products• Demand increase for YUSHIN products as capital expenditures increase for those products• Demand increase for YUSHIN products due to production increase for plastic-related partsdue to weight reduction and the newcomers to plastic related parts

Worldwide shift fromgasoline-powered vehicles toenvironmentally conscious vehicles

Establishment of multiple assembly
partners and parts suppliers to
observe delivery deadline strictly.

Assumed time of occurrence* Opportunity
Short Medium Long evaluation
YES

YES

YES LowYES

YES LowYES

YES LowYES

YES LowYES

YES

YES LowYES

YES

YES HighYES

YES LowYES

YES

YES Medium

YES

YES

MediumYES• Demand increase for YUSHIN products due to expansion of capital expenditures• Improve capability to meet demand increase of the products

YES Medium
YES

YES

YES Low*Short-term means it is assumed to happen within 3 years, medium-term by 2030, and long-term by 2050.

Risk Management
YUSHIN sees what hampers business management as

information is compiled in a timely manner and shared byrisk, and analyzes and assesses the urgent risks of climate

the Board of Directors and the executive meetings. Underchange and the risks that may occur in the future.

the leadership of Representative Director and President,

evaluates the risks in all aspects of the businesses. SuchYUSHIN takes prompt and appropriate measures to reduce
the risks.

Purchase from multiple companies by cultivating
suppliers

YES Medium

YES

Utilize energy-efficient building

To manage such risks, YUSHIN identifies, analyzes and

YES

YES

Resilience

Impact on business• Improvement of employee satisfaction through utilization of head office factories, suchas promoting comfortable temperature control and CO� concentration control, andimproving workplace environments for employees• Cost reductions associated with improved safety levels

Relocation of customers’
production sites due to climatechangecustomer needs change, risk of extreme weather, average

DetailPolitical interventions such as GHG
emission regulations and energy
efficiency improvement targets

Markets

Climate-related opportunities

Prioritize the improvement of the work environment
for employees (Costs are absorbable and have a small
impact.)

Low toConduct risk assessment continually
MediumIndicators and Targets
The end of FY2031: Reduce CO₂ emissions by 70% compared to FY2021
Following the adoption of the Paris Agreement in 2015,
the Japanese government announced that it would aim to
reduce greenhouse gas by 46% compared to 2013 by 2030.

compared to FY2021 by the end of FY2031.

YUSHIN is promoting to purchase renewable-energy-based
electricity and introduce environmentally friendly vehicles.
YUSHIN will review its targets from a medium- andlong-term perspective.

YUSHIN aims to reduce the sum of Scope1 and 2 (direct

YUSHIN will set the reduction goal for Scope3 as well,emissions from in-house fuel use and indirect emissions

and work to reduce CO₂ throughout the supply chain andfrom electric power YUSHIN buy and heat) in Japan by 70%

disclose the goal.

32

S: Social - Human Rights
YUSHIN Group Human Rights Policy(2) Compliance with Applicable Laws and Regulations
YUSHIN complies with the laws and regulations of thecountries and regions where YUSHIN conducts businessactivities. When the local laws of the regions in which we
operate conflict with internationally agreed human rights
standards, YUSHIN will pursue ways to adhere to theinternational standards to the fullest possible extent.
(3) Performing Due Diligence for Human Rights Matters
YUSHIN works to identify, prevent, or mitigate adverse
impacts on human rights through the establishment andapplication of company rules founded on “The UN Guiding
Principles on Business and Human Rights.”(5) Information Disclosure
YUSHIN discloses the progress and results of our respect forhuman dignity initiatives publicly, via our website or other means.
(6) Education and Training
YUSHIN provides adequate training and education to all
Group board members and employees so that the Policy
takes root across the entire organization, is fully understood,
and is effectively implemented in corporate objectives.
(7) Relief
YUSHIN affirms we will never knowingly violate thehuman rights of others. Should we learn of any instancesof our business activities causing or fomenting negative
impacts to others, YUSHIN will take appropriate corrective
measures consistent with the Policy.
If business partners of YUSHIN are linked directly withadverse effects on human rights, YUSHIN will cooperatewith stakeholders to take improvement steps in accordancewith our commitment to respecting human rights.
When prioritization is required, YUSHIN will prioritize andaddress the most serious impacts on human rights inconsideration of the scale, scope, and degree of difficulty
for correction and redress.
This Policy has been reviewed and approved by YUSHIN’s
Board of Directors.

Classification of Risks
This table shows how the Company classifies specific risks forhuman rights.
Stakeholders

Human Rights Abuse Risks

Business partners

Labor conditions, interns’ human rights, children’s
human rights, sexual discrimination, freedom of association

Customers, Business Partners

Safety of life and limb

Group employees
Affiliated companies
Group employees and society

Safety and health, labor hours and wages, sexual
discrimination, power harassment
Intellectual property rights, personal information,
trade secrets, confidential information
Anti-bribing, environment

The following chart is an analysis of the risks listed above.
Through this analysis, YUSHIN Group has identified the challenges
on which it should focus, as follows.

33

YUSHIN Report 2023

Date of enactment July 7, 2022
YUSHIN PRECISION EQUIPMENT CO., LTD.
Representative Director and President
Takayo Kotani

High

Impact on human rights(1) Basic Thinking
The YUSHIN's ongoing mission is to contribute to global
society by producing innovative technologies, based on ourbusiness philosophy of “Respect for People.”
YUSHIN respects international standards on humanrights including the “International Bill of Human Rights”
and the UN International Labor Organization’s “Declarationof Fundamental Principles and Rights at Work.” YUSHIN
expects all our Group board members and employees, aswell as all 3rd party business partners involved in our
products and services, to understand, support, andimplement the Policy.

(4) Dialog and Deliberation
YUSHIN consults with relevant stakeholders on any
potential or actual impacts on human rights.

(Severity, number affected and repairability)

In July 2022, YUSHIN has established a "YUSHIN Group
Human Rights Policy" (hereinafter referred to as the Policy)
based on the "UN Guiding Principles on Business andHuman Rights" as a guide for the entire YUSHIN Group topromote respect for human rights and fulfill theobligations.

The Challenges YUSHIN Group Should Focus On
Basic Thought on Our Business
YUSHIN Group develops, manufactures, and sells
Cartesian robots and other industrial equipment andsystems for factory automation globally.
At the core of YUSHIN’s business activities is the desire
to reduce the number of people working in hazardous
conditions and thereby improve worker safety.
Challenges in Procurement and Manufacturing
YUSHIN does not tolerate human rights abuses such as
excessive or unfair labor conditions, child labor, violating
the rights of foreign laborers including technical interns orChild labor(Business partner)

Safety and health(Employee)

Labor safety(Business partner)

Power harassment
Sexism(Business partner) (Business partner)
Labor condition(Business partner)

Power harassment Sexism(Employee)(Employee)
Religious Freedom(Employee)Intellectual
property right(Affiliated company)
Trade secret(Employee)

Bribery(Employee and community)

Low
Low

Connection to company and businessHigh

Challenges in YUSHIN’s Work Environment
YUSHIN strives to promote worker health and safety, anddevelop a comfortable, optimized workplace.
YUSHIN makes best efforts to prohibit all forms of
discrimination and prevent harassment.
YUSHIN reviews all important issues as needed throughdialog and cooperation with the stakeholders.

Initiative for the Respect of Human Rights
Executive and Manager Training ( February 9, 2023)
To deepen the understanding of human rights, theCompany invited outside lecturers to participate in the training.
Participants:
Executives / procurement and manufacturing managers inPurchasing and Manufacturing Divisions / managers inGeneral Affairs Division, Human Resources Division andInternal Audit Office
Programs:(1) Presentations on "Why We Need to Know about Human
Rights" and "What Business Should Do about Human Rights"(2) Case study in workshop"

Support for the Ministry of Justice's "My Declaration of
Human Rights" Initiatives
In August 2023, the Company endorsed the "My Declarationof Human Rights" promoted by the Ministry of Justice.
"My Declaration of Human Rights" is an effort to realize asociety in which everyone respects human rights by declaringthat companies, organizations, and individuals will take actions
that respect human rights.
The Company will continue topromote human rights initiatives
based on the "YUSHIN Group
Human Rights Policy"."YUSHIN has established the YUSHIN Group Human Rights
Policy in July 2022 as the Company has Respect for People asits business philosophy.

Environment Life and limb Product and service safety(Community) (Customer) (Business partner, customer)
Intern/Trainee
Exploitation(Business partner)trainees, or discrimination on the grounds of race, religion,
gender, nationality, disability, age, and sexual orientation. This
standard extends to our suppliers and subcontractors who
provide components or help manufacture YUSHIN products.

Purchasing Staff Training (June 6 and 14, 2023)
The Company provided human rights training to thepurchasing staff who purchase materials and parts for the
products and often deal with suppliers
Programs:(1) Presentations on "Why We Need to Work on Human Rights"(2) Case study in workshop
The Company will continue to provide training andeducation on human rights to the employees by expanding
the scope of target departments and employees, and promote
efforts so that they understand that "Every executive andemployee are promoters of DD and human rights holders
themselves."

YUSHIN respects international standards on human rights
including the International Bill of Human Rights and the ILO
Declaration on Fundamental Principles and Rights at Work,and will conduct its business activities through dialogue andcooperation with its stakeholders.
YUSHIN will continue to contribute to building a sustainable
society and environment through its business development.
YUSHIN PRECISION EQUIPMENT CO., LTD.
Representative Director and President
Takayo Kotani

34

S: Social - Quality and Safety
This came from the founder, Susumu Kotani. YUSHIN
cherishes this as the basic philosophy.
Quality determines our future.

S: Social - Employees
Human Capital Enhancement

YUSHIN is committed to sustainable growth andmedium- to long-term enhancement of corporate value
through the creation of an organization that makes the

Quality Policy

most of the values and perspectives of its diverse human
Guided by the principle that "Quality determines our future,"
YUSHIN earns customer satisfaction

by ensuring safety and promoting continuous improvement of manufacturing
through higher productivity and lower environmental impact

Robot Compliant with the Most Stringent
International Safety Regulations■ Safety Assessors

YUSHIN has been training qualified Safety Assessors,

who certify knowledge and competence in machine safety
based on international safety standards.

■ Safety Circuit

The robot's safety circuits are redundant, so that if one of

the circuits fails, it will not lose its function. This is a basic
idea to prevent accidents caused by robots.

As of March 31, 2023, the number of certified employees

is 53. They are not limited to designers, but are spread

across all departments involved with products, from sales
to manufacturing, and apply their knowledge as Safety

Assessors in a variety of situations, from product planningand development to making safety suggestions tocustomers.

YUSHIN provides customers with products with a highlevel of safety through the development of these human

Safety monitoring monitors whether the motor speed

exceeds a defined limit. This ensures that robot motion
does not exceed the safety speed during teaching,providing safety and peace of mind.

■ Compliant with International Safety Standards

Our robots qualify as Safety Category 3 devices under

EN/ISO 12100, EN 60204 and EN/ISO 10218, and comply
with safety requirements under CE, GB and KCs.

and abilities and continue to work with vigor and vitality byrecruiting and training diverse human resources based on
the dissemination of the corporate philosophy.

Promote corporate identity (CI) activities
Establish a personnel system and a humanresources development policy that instill YUSHIN ideals.

PDCA

Ensure diversity in human resources(Diversity Management)
Develop an education system that meets
each career step
Create an Environment That Makes Work More
Rewarding and Comfortable

Strengthen
measures

Human Capital Enhancement
We Provide Products and Services
That Reach People's Hearts and Contribute to Society■ YUSHIN Schoolorder to define its corporate philosophy and direction thatbusiness operators are required to provide special training

its important ideas and action guidelines based on thefor employees who work with industrial robots.

YUSHIN provides this special training, YUSHIN School,

both internally and externally to improve the safetyknowledge and operating techniques of all people whowork with YUSHIN robots. A certificate of completion isissued to those who complete the school, which serves as
proof of participation.

people are appointed and assigned to the right positions,and that the personnel evaluation is well-balanced.

Under this personnel system, YUSHIN encourages

employees to make efforts and take on new challenges,
and provides appropriate evaluation and treatment of
results. YUSHIN also promotes the enhancement ofeducational systems to support employees according totheir stage of growth, and the creation of an environmentthat makes work more rewarding and comfortable.

YUSHIN's Human Resource Development Policy

YUSHIN's Human Capital Enhancement

Promote Corporate Identity (CI) Activities

Under the Industrial Safety and Health Act in Japan,■ Speed Monitoring

YUSHIN aims to create an environment in which eachand every employee can maximize his or her characteristics

resources, and delivers safety and security to workers at
industrial sites.

FRA series

resources.

growth, and culture development, to ensure that the rightYUSHIN promotes corporate identity (CI) activities in

YUSHIN will continue to focus on in the future, and toachieve further growth and development. YUSHIN clarifies
concept of "Above all, reach people's hearts."

The entire group is involved in CI penetration activities,

including communication by top management andexecutives, dialog in the workplace, branding activities
mainly by young employees, and sharing of best practices.

a

Develop human resources who can embody and practice thecorporate identity (CI) based behavioral guidelinesb

Encourage continued learning and growth as career progressescDefine role expectations and promote achievement of results
through job performancedEncouraging effort and challenge, and providing various
opportunities and venues for advancementeSupporting the realization of individual "career design""

Ensure Diversity in Human Resources(Diversity Management)

From the perspective of ensuring diversity in humanresources and diversity management, YUSHIN placesemphasis on respecting diverse attributes and values andmaking the most of its human resources, without beingbound by conventional standards within society or theCompany.

Specific efforts include "creating a working environment

in which men and women can play equally active roles,""employment without regard to gender or nationality,""recruitment of career (mid-career) personnel in priority
positions," "creation of systems and environments thatdraw out the efforts and challenges of diverse members,"
and "support for balancing work and family life."

Establish a Personnel System

and a Human Resources Development Policy
That Instill YUSHIN Ideals

In the personnel system developed in conjunction with CI

activities, YUSHIN has clarified the expected image ofhuman resources, including core human resources.

The expectations of each position are defined in terms of

YUSHIN Childcare
System Book

responsibility for results, human resource development and

35

YUSHIN Report 2023

36

■ Encourage Work Improvement and Work Reform

In terms of promoting women's empowerment, in

addition to appointing women to management positions,

Building an Organization for Sustainable Growth

YUSHIN supports employee-led activities to makeYUSHIN has established an action plan based on "The Act

suggestions and take on challenges, and has established aon Promotion of Women’s Participation and Advancement

system to encourage such activities.

Indicator/Item
Goals

strengthen the recruitment of women in the hiring of new● Improvement Suggestion System to promote business
improvement

100% participation rate of those eligible
for the program in FY2024

employees".

● Innovation Project Activity Proposal System to foster
human resources with creativity and initiative

Results/
Activities● Senior management and each workplace instilled
and implemented the corporate philosophy● Conducted an employee survey on CI dissemination● Branding activities were carried out mainly by
younger employees

in the Workplace", and is working to "maintain andgraduates" and "enhance the use of childcare leave by maleAs specific initiatives, YUSHIN distributes the YUSHINChildcare System Book to employees who are working

parents, and holds lectures to promote childcare leave formen. YUSHIN also holds information exchange events for
employees on childcare leave in an effort to alleviate
concerns about childbirth and returning to work.

From the perspective of ensuring diversity on a global

level, YUSHIN has many overseas offices and promotelocalization, and YUSHIN is actively working to utilize
mid-career hires and foreign nationals.

As a cornerstone of these efforts, YUSHIN has formulated

the "YUSHIN Group Human Rights Policy" as a guideline forpromoting respect for human rights and fulfilling

responsibilities throughout the group, and is working todisseminate this policy to all stakeholders.

■ Career and Professional Development

YUSHIN provides training to enhance the knowledge andskills required for the employees to perform their jobs, andsupports them to aim to improve their abilities and skills on
their own. YUSHIN also provides systematic training to

improve professional skills, practical training opportunities,
and an e-learning environment.

■ Leadership Development[Management Training]e.g. Office Casual Wear Project P39
Project for the establishment of standards for theapproval of side/secondary jobs

■ Improve Job Satisfaction and Work-Life Balance

Indicator/Item

Survey participation rate of 90% in FY2024

and works to improve work-life balance and enhance

Results/
Activities● Conducted employee surveys to improve
work styles (three times).

YUSHIN also emphasizes the creation of office and plant

Securing and Developing Diverse Human Resources
and Strengthening Diversity Management

employee benefits by reforming the way they work.
environments that encourage teamwork andcommunication.

YUSHIN provides training on various topics such as goal

management and evaluation, employee development, diversity,and harassment to enhance managers' leadership skills.
[Leadership Training]

Indicator/Item

3. Strengthen strategies and measures to secureand develop a diverse workforce

Goals● Reinforce human resource recruitment policies● Reinforce ongoing policies on human resource
development● Develop and disseminate a human rights policy

Results/
Activities● Implemented measures related to therecruitment and training of human resources● Formulated human rights policies and conducted training

Indicator/Item

4. Women's Empowerment
1. Percentage of female Directors and Managers
2. Percentage of female graduates hired (*)

strengthen the problem-solving and decision-making skills
necessary for management to produce human resourcesthat can drive growth and take on new challenges.

Create an Environment That Makes Work
More Rewarding and Comfortable

Training with employees of Indian subsidiary■ Create a System to Strengthen Organizational Power■ Occupational Safety and Healthorganizational diagnosis survey. The purpose is for YUSHIN to

employees can work in good health and vigor, and

YUSHIN is conducting an employee survey and an

identify issues and consider actions to further improve

Develop an Education System
That Meets Every Career StepYUSHIN focuses on training its employees to develop

and retain the necessary skills according to their careerorganizational capabilities while being aware of the PDCA cycle.

■

Help Design Career PathT h r o u g h i t s E l d e r C o u n s e l o r Sy s t e m , Y U S H I N i scommitted to providing targeted support to younger

stage.

employees and conducting career surveys of its employees.

■that can contribute to the sustainable growth of the

Basic Business Skill Development

The "Business Skill Upgrade Training Program" has been

set up to help the employees acquire basic business skills.

YUSHIN Report 2023

YUSHIN's goal is to increase the level of "human capital"

Company by utilizing the strengths and abilities that eachindividual possesses.

2. Conduct employee-participatory surveys tostrengthen organizational capabilities(identify issues and consider measures)

Goals

YUSHIN proactively listens to its employees' "aspirations"

YUSHIN provides leadership development training to37

1. Implementation of programs to instill andimplement the corporate philosophy

Goals

YUSHIN aims to create a work environment where

promotes the development of an occupational health caresystem, the implementation of necessary safety and healthResults/
Activities

education and training, and efforts to strengthen
occupational safety in each department.

■ Goals and Achievements in Enhancing Human Capital

For the time being, YUSHIN will work on the following

items to build a foundation for strengthening humancapital.

Indicator/Item

1. Percentage of female Directors and Managers
1) 15% of Directors,
2) 5% of Managers by March 2028
2. Percentage of female graduates hired
30% by March 2025
1. Percentage of female Directors and Managers
1) 18.2% of directors (March 2023),
2) 4.7% of managers (March 2023)
2. Percentage of female graduates hired
50% (April 2022)

5. Percentage of Male Employees
Taking Childcare Leave*

Goals

20% by March 2025

Results/
Activities

40% (April 2022 - March 2023)*Disclosed targets in the General Business Owner's Action Plan basedon The Act on Promotion of Women’s Participation and Advancementin the Workplace (Japanese law).

38

S: Social - Health and Safety
Introduction of Office Casual Wear
The Office Casual Wear Project was initiated as part of the "Innovation Project Proposal Activity," which invites

Health Promoting Actions

employees to submit proposals that will bring innovation to the Company, and office casual wear was introduced in■ Goal and Systemcreate a lively work environment, secure diverse human resources, and further enhance the YUSHIN brand by

are involved in various activities and building

May 2023. The goal of the project is to improve the work environment to promote independence and creativity,
wearing clothes that fit the work environment."

Organization chart

The departments at YUSHIN work together andBoard of Directors

environments to ensure that the employees work

Executive Meetingin good physical and mental condition. In addition,

regular meetings are held for the top
Office casual is not mandatory. You can dress casually, or you can continue to wear your uniform orof Health Support Center). Health Support Center

H / Project leader / General affairs department

and General Affairs Department, working on

various companies around the time our HQ building was being constructed. At that time, I had theopportunity to visit the office of a large stationery manufacturer. This company had adopted a casual

works together with Health and Safety Committee,

office dress code, and everyone worked in their own clothes. I felt that it was very free and bright. The

memory of that time stayed with me, so when I heard about the Innovation Project Proposal Activity, I
thought about implementing casual dress at our company.

M / Project member / Accounting department
I work in the manufacturing department, so of course I wear work clothes in the field. Recently, due toInvestment Effects
Effect Indicators

Behavior Change
Indicators
Percentage of
employees withfitness habits

Stress check

Use of health apps

App usage rate

Health seminars

Hosting a walking
event

Event
attendance rate

Percentage of
employees with abalanced life

climate change, we have experienced more and more extremely hot days, but the current work clothes

Healthcare system
implementation

Anti-smoking
initiatives

Workplacesmoking rate

Percentage of
employees withproper sleep/rest hours

Under such circumstances, I have been working on activities to improve work uniforms and ordered

Regular check-ups /Medical expert occupational
health activities

Paid leavepromotion

Paid leave
usage rate

Decrease of
employees withpoor physical/mental healthhave not been redesigned for more than 10 years and lack breathability and stretchability in some areas.
some pants and conducted trials, but changing only the pants would make them unbalanced with thejacket, so it was necessary to reconsider the situation. I heard that the office casual project was startingat a time when I thought it would be quite difficult, and I was invited to participate in the project.
K / Project member / Manufacturing department

Through dressing, I was able to learn anew that there are different departments, different jobs, anddifferent people in different positions. My understanding of each job has deepened, and my awarenessof respecting positions and individuality has also increased. And of course, I think I have a better

understanding of the Company.

O / Project member / General affairs department

Industrial Physician
Public Health Nurse

External Agencies,
Services■ Support Map
Health Investments

Health Support
Center

Employees

various activities and building the support system.

The idea for the Office Casual project came to me while I was researching office environments at

Cooperation

General Affairs
Department

management and the industrial physician (Director

work clothes. The important thing is that you can choose the clothes that allow you to work in yourown way. This is what we tried to achieve.

Health and Safety
Committee

Goal Indicators
Lower
absenteeism rate

Lower
presenteeism rate

Higher work
engagement

Social Value

Corporate Value

Employee and Family Well-Being/Contribution to Society

Employee Productivity■ The 2023 Certified Health & Productivity

Management Outstanding Organizations
We have been certified as the 2023 Certified Health &Productivity Management Outstanding Organizations by the
Ministry of Economy, Trade and Industry.

Challenges

Productivity
decline due toillness

Employee job
satisfaction
Employeeretention rate

■ Health Manifesto
YUSHIN has

received Health

Manifesto from Kyoto
branch of Japan

Health Insurance
Association. The

manifesto is provided
to business facilities
that make concrete
What is certified health & productivity management

outstanding organizations?

The certification is awarded to companies that consider

efforts for safety andhealth of theemployees.

the health management of their employees from amanagerial perspective and implement it strategically.

39

YUSHIN Report 2023

40

S: Social - Social Engagement
Initiative to Promote the Health and Productivity Management■

Health Support by ICT

To improve the quality of life of the employees, YUSHIN■

Mental HealthYUSHIN has set up Health Support Center to encourage

provides them with health checkups. Based on the results,

employees to consult with public health nurse or industrialof lifestyle-related diseases. YUSHIN recommends them to

In addition, YUSHIN has set up a consultation desk

YUSHIN gives health guidance to the ones who have a risk
have the re-examination if necessary to raise theconsultation rate.

The employees who is posted abroad or returned fromoverseas assignment are required to undergo periodic

medical checkups once a year to manage their health sothat they can work in a healthy manner.

YUSHIN is also working to enhance health support incollaboration with the industrial physician using ICT system.

■ Health Seminars

Seminars are conducted on the following four themes inorder to improve health literacy:

1) Women's Specific Diseases, 2) Cancer Prevention,3) Smoking Cessation, 4) Mental Health.

"Promotion of Smoking Cessation" seminar was held by

the industrial physician. The participants were briefed on
the risks of cancer due to smoking, health risks such ascerebral and cardiovascular infarction, and the effects ofsmoking cessation aids. The seminars were practical andended successfully.

physician at any time if they are worried about something.

operated by external resources as a welfare program, whichenables employees to resolve their problems without
disclosing their personal information.

■ Walking Event

Support to Develop Next Generation■ YUSHIN's contribution to Japan Super Science Fair (JSSF)
Ritsumeikan Senior High School, which has been

designated as "Super Science High School (SSH)" (astate-backed high school providing advanced science andmathematics education) by the Ministry of Education,

Culture, Sports, Science and Technology, has been holding
Japan Super Science Fair (JSSF) as part of SSH projects
since FY2004.

JSSF is an international student conference whereparticipating students from all over the world exchange

scientific ideas on the international stage with the purpose

Every year, YUSHIN holds a walking event called “Walk,of obtaining "a sense of mission to contribute with theemployee health and improving communication among

success," and "big dreams for the future." Students learn

teams from Japan and overseas who compete for theand global thinking, such as science workshops and science

YUSHIN has accepted high school students from

Talk and Work together!” with the aim of promoting

power of science for the world," "networks for future

employees. In FY2023, there were 84 participants in 21

together through various activities that stimulate scientificaverage number of steps per day using a smartphone

lectures, focusing on research presentations.

■ BLS (Basic Life Support) Training■ Participation in Manufacturing Workshops for High School Students

walking app.

For emergency procedures, YUSHIN conducts annual

Ritsumeikan Senior High School and other countries

around the world nine times since 2012. Through plant
tours and technical presentations, YUSHIN hopes thatparticipants will improve their global perspective and their
willingness to learn about science.

We s e n t t h r e e o f o u r e n g i n e e r s t o a n e g g d r o p

training programs once a year to develop human resources

workshop* held at a nearby high school. They discussed

who can operate AED and perform cardiopulmonary

ideas with the high school students and provided technicalresuscitation.

advice to the students. The event was an opportunity forhigh school students to work with manufacturers they are■ Health Apps

not normally familiar with and to get a closer look at

YUSHIN introduced health app for the employees that

manufacturing.

enables them to manage their health. The app can show

*Workshop to make a protector to protect an egg from the falling impact using

them calorie of what they eat by photo shot and thespecified materials.

number of steps they took.

■ U.S. Subsidiary Participation in Manufacturing Day

YUSHIN AMERICA, INC. participates in "Manufacturing

Day" in the United States. This event is held annually on the

Safety and Health: YUSHIN promotes safety and health in workplace based on the Safety and Health Policy.
<<Safety and Health Policy>>● Promote occupational safety through the activities of the Health and Safety Committee (Materiality).
● Develop a workplace where employees can work actively and stay healthy● Conduct necessary safety and health education and training, and foster people who put safety before everything else
● Comply with safety and health-related laws and plant rules.

41

YUSHIN Report 2023

first Friday of October in various locations across the U.S. topromote the value of manufacturing in the U.S. economy.

Local companies, universities, and high schools visit the

YUSHIN AMERICA factory, where they receive an

explanation of how take-out robots are used in the

manufacturing process and design techniques, and tour the
production area. This event is not only a good opportunity
for the people to learn about our company, but also achance for us to communicate with the local community,and many people said they found the event very interesting.

42External Directors Tripartite Talks
Reiko Nakayama

Yasuo Nishiguchi

Hiroshi Matsuhisa

2021年ユーシン精機は新体制へと変わりました。
新たな組織について経営者と各部門の若手社員が語り合う場を設けました。
One of the original outstanding features of our company

それぞれの率直な想いをご覧ください。

Strengthen Internal Structure and Human Capital and Move to the Next Stage of Growth
Reiko Nakayama

External Director
A member of Nomination andRemuneration Committee

Yasuo Nishiguchi

External Director
The chairperson of Nomination andRemuneration Committee

Hiroshi Matsuhisa
External Director
A member of Nomination andRemuneration Committee

Three External Directors exchanged opinions on recent changes and initiatives at YUSHIN
and future challenges for sustainable growth.

is that it is a comfortable place for women to work, partly

Nakayama: The showroom is a wonderful facility that

because the former president was also a woman. For

contains not only our technology but also our charm. I

example, employees can adjust their working hours forwant to make the most of it. We have conducted M&A. It

childcare and other reasons, and of course, there are small

seems that the Company has placed importance on the fact

ingenuity everywhere in employee health management andthat there is an affinity in the philosophy of the products

the livability of the offices, washrooms, and cafeteria.

and technology. This is a very important perspective forToday, the number of women in management-level

expanding sales in Europe in the future.

positions is increasing, and in terms of diversity andNishiguchi: I believe that the M&A of WEMO AUTOMATION

inclusion, we are ahead of the time.

AB is a good strategy from a long-term perspective. I

Each department has always worked to create positive

expect that we will analyze our past efforts, formulate oursystems and frameworks. Looking back over the past two

next strategy, and more than adequately link this M&A toyears, how do you both see the Company?

the growth of our company. To achieve this, we need to

Nishiguchi: The president is young and has been involved

remove barriers between departments, promotein product development as a member of the development

organizational coordination and work with a sense of speed

team. Compared to the previous president, who was aon what we need to do next.

founding member, she has the advantage of being familiar

Matsuhisa: I suggested at the Board of Directors thatto younger employees and easy to talk to. She also has theshowrooms can be used in a variety of ways, including

ability to see things logically and decide on a directionsocial and community contributions, recruitment activities,

quickly. She will play a leading role in future reforms. As an

and shareholder relations, in addition to sales activities thatengineer, she is expected to challenge new technologies

allow customers to see our products.

and products for the future. The Company should not get

For example, we could hold a plastics seminar and invite

caught up in precedents, but rather take a broad view of

speakers from the industry and academic societies to talkwhat the Company can do and aim higher along with its

about upcoming industry trends and new technologies.

current strengths. I also see good cooperation among the

Since Kyoto has a geographical advantage, if we combine

The major changes that have been visible to the outside

management team in the discussions at the board

the seminar with sightseeing, it is possible that many

world over the past two years are the opening of themeetings. I hope she will instill this culture in all employees.

people will attend the seminar. As for recruitment, the first

showroom in February 2023 and the M&A in May 2023.

Matsuhisa: Indeed, since the president is an engineer,

step is to make students aware of the name YUSHIN. One

Less visible changes include the CI penetration project,

employees in the development and engineering

way to do this would be to sponsor an idea contest for

Nakayama: It has been more than two years since Takayo

which was started immediately after the president took

departments must feel secure in the knowledge that the

robot applications and a new robot hand mechanism

Kotani, Representative Director and President, took office.

office, and the establishment of Basic Sustainability Policy,

president understands what they are doing and how they

contest. Holding robotics classes for elementary school

Today, from the perspective of an External Director, I would

which was announced in February 2023. In these projects,

are doing it. In addition, the level of cooperation between

students would also be a social contribution. Another idea

like to discuss the changes that have taken place in theyoung employees are taking the initiative and actively

departments, which has been a management policy foris to do this in cooperation with outside organizations such

Company during this time and the issues that need to beworking across departments, which is having a positive

several years, seems to have improved. Another recent

as academic societies. There would be realistic sensation toaddressed for the future.

effect on human resource development.

initiative is that administrative staff now dress more freely,

do these things in the showroom.

Changes Following the Transition
to the New Structure

43

which I think is a good thing.

YUSHIN Report 2023

44

Reiko Nakayama

External Directors' Perspective on
YUSHIN's Challenges

Matsuhisa: We need to think in terms of creating our own
thinking in terms of "good things sell themselves". In thisregard, hiring and compensation are also urgent issues. We
need to further strengthen our efforts to invest in humancustomer asks for something new today, we cannot

capital and actively recruit and train talented people.

produce a product immediately. We have to think about

Nakayama: In terms of long-term technology development,

our strategy over a period of several years. On the otherhow should we conduct joint research with universities andhand, if we are complacent, we might miss something. How

other companies?

do we think about that?

Matsuhisa: We have been conducting joint research with

Nishiguchi: It is important to separate what should beuniversities on a variety of topics. It is important toconsidered long-term from what should be consideredstrengthen our development team to actively promote this.

short-term. Sales and production are short-term tasks, but

We have also recently started an internship program. I

technological development is often done from a long-termhope we can improve such a system and build a good

perspective. On the other hand, even in sales, if you areteam.

thinking about sales methods that are different from the

Nakayama: I n r e c e n t y e a r s , w i t h t h e c h a n g e i n t o pcurrent ones, or about developing new customers, that is

management and many major events involving the entire

from a long-term perspective. If we do that, we can createcompany, we have been able to promote active discussion

a whole new market that we never thought of before.

and exchange of opinions among all Directors at our Board

Hiroshi Matsuhisa

We need to remove barriers between departments,
promote organizational coordination
and work with a sense of speed on what we need to do next.

market by demonstrating a challenging spirit, rather than

Nakayama: Due to the nature of our business, even if a

Yasuo Nishiguchi

of Directors meetings. We recognize that management

enhanced if the Company clearly presents its medium- to

must be mindful of the cost of capital and the share price,

long-term business plan and future image of the Company,

but we believe that long-term sustainable management issuch as "what the Company will do by when, how much,

more important than anything else in our business, which is

and when". I have experience as an analyst, so I am giving

subject to long cycles of boom and bust. I hope to address

my opinion that our company should promote a dialogue

to enable our customers andthe current issues by implementing our business plan andwith investors about our aggressive strategy, such as thestrategy and explaining them to investors in a concrete and

M&A we have done this year. With our new groupexperience our corporate attitude anddetailed manner, with the goal of achieving tangible resultscompany in Europe, our reputation in the market will also

on a three-year cycle.

change if we successfully explain how we are going toWe have opened a

Showroom
Opening

showroom at the TechnicalCenter near the headquarters
other stakeholders tocomprehensive technological capabilities throughthe display of our products.

By communicating with customers while seeing

our products in action, we will be able to makesuggestions that better meet customer needs.

It does not appear that our company has been

pursue our European market expansion strategy, how much

sufficiently appreciated by investors in the stock market forof the market we expect in the coming years, and what weseveral years. There may be various reasons for this, such as

need to do to achieve this goal.

size, volume, and shareholder composition, but I believethat the Company's reputation in the stock market will be

45

YUSHIN Report 2023

46

G: Governance
The Board Members’ Compensation System

Basic Views on Corporate Governance
The Company aims at achieving sustainable growth and maximizing the enterprise value for medium- and long- term underthe management philosophy with obtaining credibility from all stakeholders surrounding us including shareholders.
We strive to strengthen corporate governance with the basic policy of following five items.

YUSHIN board members’ compensation system is aimed at improving motivation for improving performance and securing
and retaining excellent human resources, for the sustainable growth and enhancement of competitiveness of YUSHIN. YUSHIN
has decided a new policy for the board members’ compensation at the board meeting held on March 7th, 2022. Nomination

1. The Company respects the rights of shareholders and ensures equality, as well as strives to improve the environment for
executing rights appropriately and protect rights.

2. The Company strives to sincerely cooperate with good sense with stakeholders excluding our shareholders.

3. The Company strives to ensure the transparency by appropriately making disclosure according to laws and regulations andvoluntarily providing information excluding the disclosure.

4. The Board of Directors strives to execute its roles and duties appropriately for transparent/fair and flexible decision-making.

5. The Company strives to positively communicate with shareholders after sharing the direction of its stable growth forlong-term.

and Remuneration Committee accepted the consultations and approved the decision.

The outline• Setting compensation standard in reference to industry standards.
• Strengthening efforts to improve mid-term performance and to drive up the stock price• Improving objectivity and fairness in compensation deciding process.
The board members’ compensation consists of monthly compensation (basic compensation), short-term performancebonuses, and mid-term performance bonuses and stock-price-linked bonuses.
Monthly compensation (basic compensation) is determined by the Representative Director and President, who is

Ensuring Effectiveness of the Board of Directors
and Board of Corporate Auditors

delegated by the Board of Directors, based on the evaluation of Directors determined through deliberation by the Nomination

Under rapidly changing business environment andBoard of Directors as a whole, the results of which werecandidates of Directors with a focus on balance among

made. The questionnaire conducted in January 2023

advancement of globalization, the Company appoints

knowledge, experience and expertise, diversity and global
viewpoints. There are 8 Directors in the Board including

External Directors at the moment. The Company will keep

the Board in appropriate number to enable them to makeanalyzed and evaluated, and improvements are being

identified areas for improvement with regard to agenda

setting and administrative structure, and improvements arebeing made sequentially.

External Directors and External Corporate Auditors who

also serves for other companies are annually disclosed atGovernance Report.”

In addition, in order to further improve the functions ofBoard of Directors(8 members)

Board of Auditors(3 members)

3 Independent
Directors

reflecting two coefficients - mid-term performance coefficient based on the growing rate of earning per share (EPS), andthe same industry and of the same size as the Company (the total of short-term performance bonus and medium-term
performance/stock-price-linked bonus is approximately 30%).
The compensation for External Directors and Auditors consists of fixed compensation (basic compensation). It is our policy

2 Independent
Auditors

conducted to analyze and evaluate the effectiveness of the

The Nomination and Remuneration Committee
YUSHIN has the Nomination and Remuneration Committee as the advisory body for the Board of Directors to reinforce

fairness, transparency, and objectivity of the procedure to nominate the board members, set the remunerations, and others.

Yasuo Nishiguchi (External Director) chairs the committee where four members sit as of September 2023: Takayo Kotani(Representative Director and President), Hiroshi Matsuhisa (External Director), Reiko Nakayama (External Director), and Hiroho
Kamakura (External Corporate Auditor), which makes five in total. The committee was held three times during FY2023 in which
executive appointment and management personnel development plans were discussed.

YUSHIN Report 2023

management and qualitative assessment. The mid-term performance bonuses and stock-price-linked bonuses are decided by

not to pay performance-linked compensations in order to maintain independence in the conduct of business.

the Board of Directors, an internal questionnaire was47

achievement of the consolidated Ordinary profit, and by reflecting the overall contribution of the Directors based on target

The makeup of the compensation is determined by position with reference to the external standards of the companies in“the Notice of Convocation for the General Meeting of
Shareholders,” “Securities Report” and “Corporate

performance bonuses are determined by multiplying the base salary of the position by a performance coefficient based on thestock-price-linked coefficient based on the growing rate of the stock price.

quick-decision making with each of them providing theirexpertise and exchanging ideas.

and Remuneration Committee within the monthly remuneration range (upper and lower limits) for each position. Short-term

Internal

Basic Compensation

Directors
External

Auditors

Short-Term Performance Bonus
Mid-Term Performance Bonus
Stock-Price-Linked Bonus

Basic Compensation
Basic Compensation

Sustainability Committee
In August 2022, YUSHIN established Sustainability Committee chaired by Representative Director and President. The
purpose of this committee is to contribute to building a sustainable society and environment through our business activities
and to enhance our corporate value through sustainable business development. In February 2023, YUSHIN decided on
Sustainability Basic Policy and also announced the materiality we have identified.

48

Skills Matrix
The Committee of Internal Control

In light of YUSHIN's management environment and business characteristics, and in order to achieve sustainable growth incommittee meets monthly to review the status and effectiveness of the Group's internal controls, and to discuss theorder for the Board of Directors to make prompt and appropriate decisions and to realize a highly effective supervisory
function, each Director and each Corporate Auditor will appropriately fulfill their roles and responsibilities.

Position

GenderManagement

Development,
Engineering,and Quality

Human resource
Development
and Sustainability

establishment or revision of policies and rules and the effectiveness of risk controls. The committee also provides education

TakayoKotani

Representative
Directorand President

Female

✓

✓

✓

Kota
Oda

Director andExecutive
Vice President

Male

✓

Yasushi
Kitagawa

Executive
Managing
Director

Male✓

Tomohiro
Inano

Managing
Director

Male✓

Masahito
Fukui

Director

Male

✓

Yasuo
Nishiguchi

External
Director

Male✓

HiroshiMatsuhisa

External
Director

Male

Reiko
Nakayama

External
DirectorFemale✓KatsumiNoda

Full-time
Corporate
Auditor

Male✓

HirohoKamakura

External
Corporate
Auditor

Male✓

TetsuyaNonakaExternal
Corporate
AuditorMale✓and guidance on compliance, risk management, and information management to each division, department, and group
Name

company in cooperation with the Internal Audit Office and related departments.

Corporate Governance Structure(as of the end of September, 2023)

Internal Director / Auditor

External Director / Auditor

General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Appointment /Dismissal

Nomination and Remuneration Committee
Board ofCorporate
Auditors

Advisory
ReportChairperson

Audit

Board of Directors
Appointment / Dismissal /Supervision

Proposal / ReportSupervision

Representative Director
Cooperation
Supervision /Instruction

Proposal /ReportReportInternal
Audit Office

Accounting
Auditor
Audit

Executive Meeting
Supervision /Instruction

Supervision /Instruction

Advisory

ReportCommittee ofInternal Control
Training /Guidance

Interna
Audit

Departments / Subsidiaries

Proposal /ReportSustainability
Committee
Supervision

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Governance,
Risk management
and Compliancefrom each of the sales, purchasing, manufacturing, and administration divisions, who are appointed by the chairperson. The

The Company's Board of Directors is composed of members who ensure diversity in knowledge, experience, and skills. In

IT and DX

The committee is chaired by Director Masahito Fukui. Department managers with extensive business experience are selected

content of the experience and skills required for the Company's Board of Directors through dialogue with stakeholders.

Finance andAccounting

Operation of Internal Control".

to properly perform its decision-making and management oversight functions. The Company will continue to review the

Globaland sophisticated internal control of the YUSHIN Group in accordance with the "Basic Policy for the Establishment andthe future, we have identified the skills (knowledge, experience, and ability) that our Board of Directors should possess in order

Sales andMarketingIn terms of internal control, the Committee of Internal Control plays a central role as an organization that promotes smooth

✓

✓

✓

✓

✓

✓

This table shows the four primary skills of each personnel excluding “Management.”
This table does not show all knowledge or experience of each director and auditor.

49

YUSHIN Report 2023

50

Directors, Auditors and Executive Officers
External Independent

Nomination and Remuneration Committee
Representative Director and President

Takayo Kotani
Date of birthAugust 26, 1977

April 2008
October 2008
April 2009
April 2019
June 2019
June 2020
October 2020
June 2021

Joined the Company
Manager of R&D Section
General Manager of R&D Department
Executive Officer and General
Manager of R&D Department
Executive Officer and General
Manager of R&D Division
Managing Director and General
Manager of R&D Division
Director, Executive Vice President andGeneral Manager of R&D Division
Representative Director andPresident (to present)

Number of shares held:

Yasushi Kitagawa
Date of birthAugust 12, 1958

Number of shares held:

11,000 shares

Kota Oda
Date of birthJune 10, 1978

October 2015 Joined the Company as General
Manager of General Affairs
Department
April 2019
Executive Officer and General
Manager of General Affairs
Department
June 2020
Director and General Manager ofGeneral Affairs Department
June 2021
Managing Director and General
Manager of General Affairs
Department
June 2022
Director and Executive Vice
President and General Manager of
Administration Division(to present)

September 2007 Joined the Company
November 2007 Deputy General Manager of Manufacturing
Division
April 2008
Deputy General Manager of Manufacturing
Division and Quality Assurance Department
April 2009
Executive Officer, Deputy General Manager
of Manufacturing Division and Quality
Assurance Department
August 2009
Executive Officer, General Manager of
Manufacturing Division and Quality
Assurance Department
June 2010
Director and General Manager of
Manufacturing Division and Quality
Assurance Department
June 2013
Managing Director and General Manager of
Manufacturing Division and Quality
Assurance Department
June 2017
Executive Managing Director and General
Manager of Manufacturing Division andQuality Assurance Department
July 2020
Executive Managing Director and General
Manager of Manufacturing Division
June 2021
Executive Managing Director and General
Manager of Manufacturing Division andGeneral Manager of Purchase Division (topresent)

51

Tomohiro Inano
Date of birth
December 13, 1962

Number of shares held:

10,400 shares

Date of birthJune 30, 1960

Date of birth
October 9, 1943YUSHIN Report 2023

Research Assistant of School ofPrecision Engineering in Faculty ofEngineering at Kyoto University
October 1987 Assistant Professor
April 1994
Professor (transferred to graduate
school of department of MechanicalEngineering and Science by areorganization in 1995)
April 2012
Professor Emeritus at Kyoto
University (to present)
June 2014
External Director of the Company(to present)
June 2016
Outside Corporate Auditor ofTechnology Seed Incubation Co.,Ltd.
June 2018
Retired from Outside Corporate
Auditor of Technology Seed
Incubation Co., Ltd.

15,000 shares

Managing Director
General Manager of Sales Division

External Director

5,000 shares

Date of birthAugust 5, 1947

June 1976

External Independent
External Director
Date of birth
April 2, 1959

Number of shares held:

20,062 shares

Joined Japan Associated Finance Co.,
Ltd. (currently JAFCO Group Co., Ltd)
January 1997 Joined Marusan Securities Co., Ltd.
March 2000 General Manager of Investment
Information
October 2004 General Manager of Underwriting
October 2008 Part-Time Director of LivTech, Inc.
February 2009 Director and Head of Administrative
H.Q. of LivTech, Inc.
March 2013
Retired from the Office of Directorof LivTech, Inc.
March 2015
Outside Director of LUCKLAND
CO.,LTD
March 2016
Outside Director of LUCKLAND
CO.,LTD (Audits Committee) (topresent)
June 2018
External Director of the Company(to present)
June 2019
Outside Director of Mandom
Corporation

June 1989
August 2005

Joined the Company
General Manager of YUSHINPRECISION EQUIPMENT TRADING(SHENZHEN) CO., LTD.
General Manager of Chinese Area
April 2008
and YUSHIN PRECISION EQUIPMENTTRADING (SHENZHEN) CO., LTD.
July 2009
Assistant to General Manager ofSales Division
February 2010 Deputy General Manager of Sales
Division
March 2011
General Manager of Sales Division
March 2014
Executive Officer and General
Manager of Sales Division
June 2017
Director and General Manager ofSales Division
June 2022
Managing Director and General
Manager of Sales Division (topresent)

October 2013 Joined the Company as General
Manager of Internal Audit Office
July 2015
General Manager of Accounting
Department
April 2017
Executive Officer and General
Manager of Corporate Management
Department and General Manager
of Accounting Department
April 2020
Executive Officer and General
Manager of Corporate Management
Department
June 2020
Director and General Manager ofCorporate Management
Department
June 2022
Director and Corporate Management (to present)

Yasuo Nishiguchi June 1987

March 1975
June 1992
June 1997
June 1999
June 2003
June 2005
April 2006
June 2009
June 2014
March 2015
June 2016

Number of shares held:

56,000 shares

March 2018
April 2020

Full-time Corporate Auditor

External Corporate Auditor

Date of birth
October 19, 1959

Date of birthJanuary 27, 1947

Katsumi Noda

April 1982
Joined the Company
Manager of Manufacturing Section 3
March 1999
December 2001 Manager of Sales Engineering
Department
April 2005
Manager of System Engineering
Department
October 2010 General Manager of System
Engineering Department
October 2019 Mandatory Retired
June 2020
Full-time Corporate Auditor of theCompany (to present)

Number of shares held:

Tohmatsu Aoki & Co. (currently
Hiroho Kamakura November 1971 Joined“Deloitte Touche Tohmatsu LLC”)

External Corporate Auditor
Date of birth
September 25, 1976

October 2004
October 2004
June 2022
April 2023
June 2023

Number of shares held:- shares

May 1973
June 2012

Registered as CPA
Resigned from Deloitte Touche
Tohmatsu LLC
July 2012
External Corporate Auditor of theCompany (to present)
Outside Corporate Auditor of Trusco
Nakayama Corporation (to present)
March 2013
Outside Corporate Auditor of FUJIO
FOOD SYSTEM CO., LTD. (currently“FUJIO FOOD GROUP INC.”) (topresent)
February 2018 Outside Corporate Auditor of
SymEnergy Inc. (to present)

10,500 shares

NOTE: The number of shares is as of March 31, 2023

External Independent

Tetsuya Nonaka

Nomination andRemuneration Committee

Number of shares held:

9,014 shares

Chairperson of Nomination andRemuneration Committee

Joined Kyoto Ceramic Co., Ltd.
(currently KYOCERA Corporation)
Director
Senior Managing Director andRepresentative Director
Executive Vice president andRepresentative Director
President and Representative Director
President and Representative Director
and President and Executive Officer
Chairman of the Board andRepresentative Director, and Chief
Executive Officer
Advisor and Director
Retired from the office of Director
External Director of the Company (topresent)
Chairman and CEO of Socionext Inc.
Outside Director of YAMADA
Consulting Group Co., Ltd.
Retired from Chairman and CEO of
Socionext Inc.
Chairman of YAMADA Consulting
Group Co., Ltd. (to present)

Nomination andRemuneration Committee

Reiko Nakayama April 1983

External Independent

Director and Corporate Management

Number of shares held:

Hiroshi Matsuhisa

Number of shares held:

15,000 shares

External Independent

Masahito Fukui

External Director

Number of shares held:

1,968,532 shares

Executive Managing Director
General Manager of
Manufacturing Division andGeneral Manager ofPurchasing Division

Director and Executive Vice President
General Manager of Administration Division

Nomination andRemuneration Committee

Registered as attorney
Joined Naniwabashi Law Office(currently “Naniwabashi Law Office
LPC”)
Outside Corporate Auditor of TOYOSHUTTER CO., LTD. (to present)
External Corporate Auditor of theCompany (to present)
Senior Partner of Naniwabashi Law
Office LPC (to present)

Miki Murata

Executive Officer
General Manager of Corporate Planning
OfficeNaoki Tsuji

Executive Officer
General Manager of Palletizing Robot
Sales Dept.,
and Public Relations Office

Mitsuharu
Hamahata

Executive Officer
General Manager of R&D Division,
Electric & Program Dept.,
and Technical Documentation Sec.

52

Dialogue and Engagement with Stakeholders
Customers
Initiatives● Enhancement of proposal capabilities● Improvement of technical capabilities● Maintenance and development of support capabilities● Opening of the showroom● Utilization of technical Center

Concerns● Solving problems (achieving manpower saving,productivity improvement, energy saving)● Reliable safety● Reliable support that does not stop production

Initiatives● CI (corporate identity) development● Enhancement of human resource development system● Strengthen hierarchical education and training system according to career stage● Conduct organizational diagnosis survey● Enhancement of employment support systems in accordance with life stages● Establish systems for diverse work styles● Establishment of human rights policy, and implementation,
training and education of human rights DD

Concerns● Fair evaluation● Securing opportunities for growth and self-fulfillment● Diversity in the workplace● Achieving diversity in the work environment

Sales activities
Catalog / Web
Exhibitions

Message from the president / company intranet
In-house bulletin boards / In-house newsletters
Goal management and evaluation feedback
Various training and seminars

Daily operations
Visits to suppliers and subcontractors
Various training and seminars

General Meeting of Shareholders/ Financial Results Briefing
Individual Engagement
Web

Suppliers/Business partners
Initiatives● Declaration of Partnership Building● Implementation of visits to suppliers and subcontractors● Conduct training on laws and regulations such as Subcontract Act● Formulation of human rights policy and implementation of DD● Formulation of procurement guideline

Concerns● Interactive communication● Establishing appropriate business terms and conditions● Clarification of requirements in quality

53

Employees

YUSHIN Report 2023

Data Collection

Shareholders and investors
Initiatives● General Meeting of Shareholders● Engagement with institutional investors(financial results briefings and individual meetings)● Company information session for individual investors● Individual inquiries● Web-based information disclosure● Publication of integrated reports (YUSHIN Report)
and shareholder newsletters

Concerns● Outline of measures for sustainable enhancement of corporate value● Timing of achievement of medium-term management targets● Timely and appropriate information disclosure

54

Financial Information
Key Indicators(Millions of yen)

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Net sales

17,90917,79921,14819,346

20,87821,83320,011

18,473

20,874

22,373Gross profit

7,640

7,277

8,442

7,666

8,461

8,741

8,020

7,875

8,991

9,573

42.7%

40.9%

39.9%

39.6%

40.5%

40.0%

40.1%

42.6%

43.1%

42.8%

2,792

2,304

3,086

2,112

2,358

2,760

2,309

2,522

2,890

2,639

15.6%

12.9%

14.6%

10.9%

11.3%

12.6%

11.5%

13.7%

13.8%

11.8%

3,095

2,542

2,921

2,058

2,432

2,791

2,205

2,608

3,085

2,787

17.3%

14.3%

13.8%

10.6%

11.7%

12.8%

11.0%

14.1%

14.8%

12.5%

1,893

1,683

1,908

1,380

1,626

1,903

1,532

1,827

2,112

1,922

10.6%

9.5%

9.0%

7.1%

7.8%

8.7%

7.7%

9.9%

10.1%

8.6%

26,252

29,46329,40930,761

32,57233,19731,93334,64936,892

40,843

7.6%

6.0%

6.5%

4.6%

5.1%

5.8%

4.7%

5.5%

5.9%

4.9%

-

-

-

-

-

-

-

-

-

-

Net assets

21,87523,97024,71525,451

26,472

27,11727,471

29,171

31,04732,586Equity ratio

82.9%

80.6%

83.3%

82.1%

80.6%

80.9%

85.3%

83.5%

83.5%

79.0%

9.1%

7.4%

7.9%

5.5%

6.3%

7.2%

5.7%

6.5%

7.1%

6.1%

Gross profit to net sales
Operating profit
Operating profit to net sales
Ordinary profit
Ordinary profit to net sales
Profit attributable to owners of parent
Profit attributable to owners of parent to net sales

Total assets
Return on assets
Interest-bearing debt

Return on equity(Millions of yen)

55

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Cash flows from operating activities

2,575

2,104

2,218

1,626

1,223

2,291

3,558

3,487

2,083

4,605

Cash flows from investing activities(2,389)(256)(5,105)(471)(2,511)(61)(1,475)(1,987)(1,341)(299)

Cash flows from financing activities

(569)

(560)

(677)

(678)

(659)

(1,316)

(946)

(561)

(763)

(695)

Cash and cash equivalents at end of period

7,506

9,089

5,297

5,690

3,763

4,669

5,652

6,846

7,055

10,815

Capital investment

1,924

682

4,754

546

652

256

198

125

846

319

Depreciation

282

277

268

474

924

778

703

643

585

521

R&D expenses

448

472

510

619

598

413

369

347

367

399

No. of shares issued (1,000 shares)

17,81917,81917,81917,81917,81935,63835,63835,63835,63835,638

No. of treasury shares (1,000 shares)

330

330

331

331

331

1,333

1,602

1,602

1,602

1,603

Earnings per share (yen)108.2496.26

109.14

78.93

93.03

54.54

45.01

53.70

62.06

56.50

Book value per share (yen)1,243.88

1,357.36

1,401.54

1,444.38

1,500.75

783.03800.04850.14904.77948.36

Dividends per share (yen)

30

30

36

36

33

17

18

18

19

30

Dividend payout ratio

27.7%

31.2%

33.0%

45.6%

35.5%

30.9%

40.0%

33.5%

30.6%

53.1%

Employees (persons)

589

601

636

663

683

683

689

681

692

715

YUSHIN Report 2023

56

Financial Information
Consolidated Balance Sheets (Fiscal Year-End)(Millions of yen)

FY2019FY2020

FY2021

FY2022(Millions of yen)

FY2023ASSETSLIABILITIESCurrent assets

Current liabilities

FY2020

FY2021

FY2022

FY2023

Cash and deposits

6,362

8,646

11,69012,404

16,169Notes and accounts payable - trade

1,331

895

1,933

1,710

1,733

Notes and accounts receivable - trade

6,844

5,410

5,563

5,905

5,471

Electronically recorded obligations - operating

1,035

803

839

935

890

Merchandise and finished goods

717

772

1,007

1,074

1,288

Accounts payable - other

492

418

542

519

586

Work in process

1,696

1,120

987

1,203

1,338

Income taxes payable

523

137

400

560

275

Raw materials and supplies

3,619

3,165

2,987

3,571

3,760

Advances received

1,755

1,270

789

1,162

3,721

Consumption taxes receivable

34

19

71

87

87

Provision for bonuses

273

267

282

300

310

Other

707

276

236

261

533

Provision for bonuses for directors

37

23

42

32

29

Allowance for doubtful accounts

(18)

(19)

(36)

(7)

(10)

Provision for product warranties

147

178

162

137

256

19,964

19,391

22,50924,50028,638

Other

262

256

328

310

210

5,860

4,250

5,321

5,668

8,012

Provision for retirement benefits for directors

66

66

-

-

-

Retirement benefit liability

65

62

87

100

164

Deferred tax liabilities

37

34

23

24

6

Total current assets

Total current liabilities

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment

Non-current liabilities
4,995

4,554

4,166

3,849

3,609

147

137

116

119

150

6,130

6,107

6,129

6,812

6,821

8

10

22

12

34

Other

49

46

43

51

73

126

96

97

132

130

Total noncurrent liabilities

219

210

155

176

244

11,408

10,905

10,531

10,926

10,746

6,079

4,461

5,477

5,845

8,256

Share capital

1,985

1,985

1,985

1,985

1,985

Capital surplus

2,023

2,023

2,024

2,024

2,024

Total liabilities
NET ASSETS

Intangible assets
Other

429

358

254

186

192

Total intangible assets

429

358

254

186

192

Investments and other assets

Shareholders' equity

Investment securities

218

159

285

263

307

Retained earnings

23,57924,531

25,84827,21228,454Retirement benefit asset

294

285

257

264

215

Treasury shares(1,039)(1,355)(1,355)(1,355)(1,355)

Deferred tax assets

705

658

621

647

649

Total shareholders’ equity

26,54927,18528,50329,866

31,108

Other

196

193

209

181

141

Accumulated other comprehensive income

Allowance for doubtful accounts

(19)

(20)

(20)

(78)

(49)

Valuation difference on available-for-sale securities

56

16

103

88

118

Total investments and other assets

1,394

1,277

1,353

1,279

1,265

Foreign currency translation adjustment

184

(34)

290

796

1,043

Total non-current assets

13,232

12,541

12,13912,392

12,204Remeasurements of defined benefit plans

69

62

37

41

5

Total assets

33,19731,93334,64936,892

40,843

Total accumulated other comprehensive income

311

44

431

927

1,168

256

242

236

253

309

Total net assets

27,11727,471

29,171

31,04732,586

Total liabilities and net assets

33,19731,93334,64936,892

40,843

Non-controlling interests

57

FY2019YUSHIN Report 2023

58

Financial Information
Consolidated Statements of Income

Order, Backlog and Sales(Millions of yen)

(Millions of yen)

FY2019FY2020

FY2021

FY2022

FY2023

Net sales

21,83320,011

18,473

20,874

22,373

Order received by product

Cost of sales

13,092

11,991

10,598

11,883

12,799

60.0%

59.9%

57.4%

56.9%

8,741

8,020

7,875

40.0%

40.1%

Selling, general and administrative expenses

5,980

Operating profit

FY2019FY2020

FY2021

FY2022

FY2023Take-out robots

15,54911,885

12,785

14,402

14,51957.2%

Custom-ordered equipment

3,679

2,997

2,784

3,910

8,444

8,991

9,573

Parts & maintenance services

3,418

3,168

3,145

43.1%

42.8%

3,519

3,806

42.6%

Total

22,647

18,051

18,715

5,353

6,100

6,934

21,832

26,770

5,710

2,760

2,309

2,522

2,890

2,639

12.6%

11.5%

13.7%

13.8%

11.8%

Take-out robots

3,004

2,120

3,000

3,120

3,485

Interest income

5

6

6

6

6

Custom-ordered equipment

3,120

2,061

1,423

2,209

6,247

Dividend income

5

6

5

6

8

Parts & maintenance services

225

208

207

259

253

Purchase discounts

13

10

6

7

8

6,350

4,390

4,631

5,589

9,986

-

-

34

96

99

Subsidy income

49

-

15

-

-

Other

36

22

19

78

27

Take-out robots

15,512

12,77011,904

14,282

14,154

Total non-operating income

109

46

88

195

150

Custom-ordered equipment

2,880

4,056

3,422

3,124

4,406

Parts & maintenance services

3,440

3,185

3,147

3,467

3,812

Sales discounts

1

1

0

-

-

Total

21,83320,011

18,473

20,874

22,373Foreign exchange losses

77

147

-

-

-

Other

0

1

0

1

3

Total non-operating expenses

79

150

1

1

3

Japan

9,304

8,159

6,936

8,262

8,851

2,791

2,205

2,608

3,085

2,787

China & Taiwan

2,816

2,395

2,753

3,318

2,799

12.8%

11.0%

14.1%

14.8%

12.5%

Other Asia

4,876

3,504

3,032

3,622

4,060

939

2,079

1,782

1,075

1,333

Gain on sales of non-current assets

2

5

1

1

7

3,233

3,343

3,375

4,103

4,674

Gain on sales of investment securities

-

-

-

-

-

Others

663

527

593

492

653

Total extraordinary income

2

5

1

1

7

Total

21,83320,011

18,473

20,874

22,373

Loss on sales and retirement of non-current assets

9

1

0

0

25

Other

0

1

-

-

-

6,724

5,792

4,247

5,582

5,875

Total extraordinary losses

10

2

0

0

25

2,705

4,303

4,878

3,633

4,366

3,698

3,617

3,305

4,653

5,444

Electrical appliance

3,195

2,110

1,653

1,873

1,782

Sundry products

2,229

1,966

1,764

2,471

2,298

1,916

1,276

1,496

1,350

1,314

704

465

624

650

-

Cost to net sales
Gross profit
Gross profit to net sales

Operating profit to net sales
Non-operating income

Foreign exchange gains

Non-operating expenses

Ordinary profit
Ordinary profit to net sales
Extraordinary income

Extraordinary losses

Profit before income taxes
Total income taxes
ProfitProfit attributable to non-controlling interests

2,783

2,208

2,610

3,086

2,769

819

629

752

952

790

1,963

1,579

1,857

2,133

1,978

60

46

29

21

55

Backlog of orders by product

Total

Sales by product

Sales by region

EuropeNorth America

Sales by end-user categories
Mobility *1
Medical *1
Electronics*1

Containers

Profit attributable to owners of parent

1,903

1,532

1,827

2,112

1,922

Discs and optical instruments

Profit attributable to owners of parent to net sales

8.7%

7.7%

9.9%

10.1%

8.6%

Others

657

478

501

657

1,291

Total

21,83320,011

18,473

20,874

22,373*2*1 "Automotive", "Electronic parts", and "Medical products" have been renamed “Mobility”, “Electronics”, and “Medical” respectively.
*2 "Discs and optical instruments" has been merged with "Electronics."

59

YUSHIN Report 2023

60

Stock Information
Stock Information

Dividends per Share *1
FY2022

FY2021

FY2020FY2019FY2023

Yen

%

50

75

No. of shares issued (Shares)

35,638,066

35,638,066

35,638,066

35,638,066

35,638,066

No. of treasury shares (Shares)

1,333,548

1,602,454

1,602,518

1,602,804

1,603,076

No. of shareholders (Persons)

4,307

4,348

4,320

5,316

6,624

Cash dividends (Yen)

17

18

18

19

30

Dividend payout ratio

30.9%

40.0%

33.5%

30.6%

53.1%

1:2 Split

40

36
30

30

Stock Price and Volume Trends

Yen<Stock price>

1,800

0

1,400

*1

21

15

10

FY2014FY2015

33.5%

30.9%
18

20

10

30
40.0%

35.5%

33.0%
21

20

10

1,600

31.2%

53.1%

33

45.6%

30

27.7%

20

36

15

FY2016

18

17
9

10

8

8

FY2019FY2020

18

30.6%
19

10

10

10

13

FY2018Interim dividend
Dividend payout ratio

30

9

10

FY2022

FY2023

5

FY202145

Year-end dividend

15

15

FY2017

60

Commemorate dividend0

The figures in the table show the actual dividend amount.

1,200
1,000
800

Distribution of Stockholders
%

100

600
400
200

30,00010,000

7
3/

'2

4

1

3/
'2

3/

'2

10

'2

2/

7
2/

'2

4

1

2/
'2

2/

'2

10

'2

1/

7
1/

'2

4
1/

'2

1
1/

'2

10

'2

0/

7
0/

'2

4
0/

'2

1
0/

'2

10

'1

9/

7

'1

9/

4
9/

'1

1
9/

'1

10
8/

'1

8/

7

8/

4

0

'1

0.85

1.22

1.32

21.95

21.88

24.89

26.67

10.39

12.56

10.90

11.22

34.47

34.43

34.86

34.60

34.78

Securities firms
Individuals
Foreign corp. and others
Other corporations

FY2019FY2020

FY2021

FY2022

FY2023Highest price (Yen)

1,734

1,258

1,037

933

768

Lowest price (Yen)

774

645

593

641

623

Closing price (Yen)

1,005

673

891

672

759

Total market value of shares (Millions of yen)

35,81623,98431,75423,94927,049Cumulative stock trading volume (1,000 shares)

19,684

11,242

14,81010,683

9,048

Dividend yield

1.7%

2.7%

2.0%

2.8%

4.0%

Price earnings ratio<PER>

18.43

14.95

16.59

10.83

13.43

Price book-value ratio<PBR>

1.28

0.84

1.05

0.74

0.80

0

FY2019Financial institutions

27.45

Thousands of shares

20,000

'1

34.85

50

0.85

7

4

3/

3/

<Cumulative stock trading volume>

13.52

75

25

'2

1

'2

3/

10

'2

2/

7

'2

4

2/

2/

'2

1

'2

2/

'2

1/

10

7

'2

4

1/

1/

'2

1

'2

1/

10

'2

7

0/

'2

4

0/

0/

'2

1

'2

0/

10

'2

7

9/

'1

'1

9/

9/

4

1

'1

9/

10

'1

7

8/

'1

8/

'1

'1

8/

4

0

0.50

12.79

3.74

FY202024.95
4.50

FY202124.02
4.50

FY202222.33
4.50

FY2023

4.50

Treasury stock

Major Shareholders*2, *3
No. of shares held (Thousands)

Percentage of shares held (%)

Yushin Industry Co., Ltd.

11,992

35.2"The Master Trust Bank of Japan, Ltd.(Trust Account)"

2,592

7.6

Takayo Kotani

1,968

5.8

Miki Murata

1,847

5.4

Custody Bank of Japan, Ltd. (Trust Accounts)

1,253

3.7

The Kyoto Chuo Shinkin Bank, Ltd.

1,088

3.2

Mayumi Kotani

968

2.8

RBC IST 15 PCT NON LENDING ACCOUNT - CLIENT ACCOUNT

862

2.5

MUFG Bank, Ltd.

849

2.5

STATE STREET BANK AND TRUST COMPANY 505001

832

2.4

Shareholder's name

*2 As of March 31, 2023
*3 Excluding 1,603,076 of treasury stock from the above table.

61

YUSHIN Report 2023

62

Global Network(as of September 30, 2023)

With the widest global network in theindustry, we deliver the best service to thecustomers’ plant in the world.

USA

UK

Korea

SwedenNiigata Satellite Office
Nagano Sales OfficeToyama Sales Office

Headquarters& Factory■ Sweden■■■Subsidiaries■Branch offices, etc.
<Korea>■YUSHIN KOREA CO., LTD.

■
■

■
■ ■
■
India
■■
Thailand■ Mexico■DAEGU BRANCHYUSHIN Report 2023

■

China

■

<China/Taiwan>■YUSHIN PRECISION EQUIPMENT TRADING(SHANGHAI) CO., LTD.
■TIANJIN BRANCH■YUSHIN PRECISION EQUIPMENT TRADING(SHENZHEN) CO., LTD.
■GUANGZHOU YUSHIN PRECISION EQUIPMENT CO., LTD.
■YUSHIN PRECISION EQUIPMENT (TAIWAN) CO., LTD.
■TAICHUNG BRANCH■PT. YUSHIN PRECISION EQUIPMENT INDONESIA<Indonesia>■YUSHIN PRECISION EQUIPMENT (VIETNAM) CO., LTD.
<Vietnam>■HO CHI MINH REPRESENTATIVE OFFICE■YUSHIN PRECISION EQUIPMENT SDN. BHD.
<Malaysia>■JOHOR BAHRU OFFICE■YUSHIN PRECISION EQUIPMENT (THAILAND) CO., LTD.
<Thailand>■YUSHIN PRECISION EQUIPMENT (INDIA) PVT. LTD.
<India>■GURGAON BRANCH■BENGALURU OFFICE■PUNE OFFICE■GUJARAT OFFICE■HARIDWAR OFFICE■YUSHIN EUROPE GMBH
<Germany>■YUSHIN AUTOMATION LTD.
<UK>
■YUSHIN AMERICA, INC.
<USA>
■NORTH CAROLINA OFFICE■GEORGIA OFFICE■OHIO OFFICE■TEXAS NORTH OFFICE■TEXAS OFFICE■CALIFORNIA OFFICE■MEXICO BRANCH<Mexico>63■Turkey

■

■

■
■
■
■

■
■

■
■

Korea
■
■

Japan

Malaysia<Sweden>■WEMO

Tsukuba Sales Office

Shizuoka Sales OfficeVietnam■ Philippines

Chubu General Sales Office
Oita Satellite Office

Nagoya-Nishi Sales Office■
Indonesia

New Zealand■

PHILIPPINES REPRESENTATIVE OFFICEAUTOMATION AB■Sole Agent<New Zealand><Australia><Turkey><Canada>Fukuoka Sales OfficeTaiwan■Australia■YUSHIN PRECISION EQUIPMENT CO., LTD.

Higashi-Nihon General
Sales Office

Hiroshima Sales Office

Nishi-Kanto Sales Office■<Philippines>

Tohoku Sales Office

Nishi-Nihon General
Sales Office■ Germany

Canada■■ USA

Iwate Satellite Office

Technical Center

UK ■■TASMAN MACHINERY LTD.

■TASMAN MACHINERY PTY LTD.

■TEKKAN PLASTIK SAN. ve TIC. A.S.
■EN-PLAS, INC.

● Headquarters & Factory

555 Kuzetonoshiro-cho, Minami-ku, Kyoto,
Japan 612-8205● Technical Center

487 Kuzetsukiyama-cho, Minami-ku, Kyoto,
Japan 601-8203

Headquarters & Factory

Technical Center

64

Corporate Information

Company nameYUSHIN PRECISION EQUIPMENT CO., LTD.

President

Takayo Kotani

Address

555 Kuzetonoshiro-cho, Minami-ku, Kyoto, 601-8205 JAPAN

Established

October, 1973

Capital1,985.66 million yen

No. of employees

715 persons <as of March 31, 2023>

No. of shares issued

35,638 thousand shares

Securities code

TSE Standard 6482

Fiscal year

From April 1 to March 31 of the following year

AGM

June

Business description

Development, manufacture and sale of Cartesian robots and other industrial equipment and systems for factory automation.

Main products

Take-out robots for injection-molded plastic products, automated stock systems and labor-saving automation equipment.

Directors & Auditors

Representative Director and President

Takayo Kotani

Director and Executive Vice President

Kota Oda

Executive Managing Director

Yasushi Kitagawa

Managing Director

Tomohiro Inano

Director

Masahito Fukui

External Director

Yasuo Nishiguchi

External Director

Hiroshi Matsuhisa

External Director

Reiko Nakayama

Full-time Corporate Auditor

Katsumi Noda

External Corporate Auditor

Hiroho Kamakura

External Corporate Auditor

Tetsuya Nonaka<as of September 30, 2023>

65

YUSHIN Report 2023