Area-specific strategy

12Unifying thinking

Business-specific strategies in major areas

Area-specificstrategy
Global expansion of theSansha Electric Manufacturing
GroupIn 1983, we established two subsidiaries:
SANREX CORPORATION in the US stateof New York and SANREX LIMITED inHong Kong. We then opened sales basesin Singapore in 1999 and in Shanghai,
China in 2001 to expand our overseas
sales operations. In 1994, we opened abase manufacturing power supplies in
Guangdong Province in China to pushahead with local production for local
consumption in China. To continue ouroverseas expansion, we set up branches in
Helsinki, Finland, Seoul, South Korea andTaipei, Taiwan in 2017. We are expanding
our business globally with the medium- tolong-term target of increasing the ratio ofoverseas sales to around 50%.

3Developing strengths(invisible assets)

North America

While its economy is slowing slightly at present, China remains
one of the world’s top economic powers. This market isexpected to continue growing sustainably. Above all, this is themarket leading the world in both the production and sale of
EV-related products, and the expansion of peripheral industries
is also remarkable. Therefore, we believe that our power
semiconductors and power supplies can contribute across awide area. At the Sansha Electric Manufacturing Group, we have
manufacturing and sales bases in China. We are leveraging thisadvantage to enhance local production for local consumption.

In Europe, there are many major manufacturers in industries towhich our products can contribute, including the inverter, welder
and induction heating industries. We plan to expand sales by
proposing products to these manufacturers.
Further, interest in environmental issues is high in Europe
compared with other regions of the world, so we will consider
our potential to contribute in areas such as decarbonization,renewable energy, and hydrogen.

Capital investment in the manufacturing industry has been
trending toward a slowdown at present. In addition, there
has been an impact from economic policy directed at China.
However, we believe that North America is the central market
that will lead the global economy. At the Sansha Electric
Manufacturing Group, we will take a niche strategy instead ofexpanding sales in all directions, aiming to increase our shares ofspecific markets.

Power semiconductor business

Power semiconductor businessTo expand sales of SiC semiconductors, we plan to expand
to new industries while also strengthening sales in existingindustries.

We will promote an industry-academia collaboration as a newinitiative. Working together with a university in the United States,
we will examine and horizontally expand example applications
for our semiconductors. We also plan to exhibit at US nationwide
trade shows to increase our visibility and acquire new customers.

Power semiconductor businessIn addition to selling discrete semiconductors and otherproducts, we will focus our efforts on expanding the adoptionof SiC semiconductors in the induction heating industry and inwireless chargers and other products.
Regarding Made in China 2025, we will continue to strive tocollect information from dealers and industries.

Power supply businessWe will expand sales focusing mainly on power supplies forsurface treatment and welders. We believe that this requires
the expansion of sales channels. In FY2023, we will expand ourdealer network by using various methods to approach dealers
and push forward with the development of new applications andnew customers.

We will consider our products’
potential to cater to customer
needs in Europe, the main market
related to hydrogen, which is a
new energy source attracting
attention globally.

Power supply businessWe will enhance our lineup of weldingrelated products and work to expand
sales channels. We also plan to activelyexhibit at US nationwide trade shows toincrease our visibility and acquire newcustomers.

At an exhibition
World hydrogen 2023 (Netherlands)

Welder forNorth America

Net sales trend (in million yen)

Net sales trend (in million yen)

3,598

4,402

2019

2020

2021

2022

30.7%
China

North
America

4,996

897

million yen

17.8%

million yen

3.2%

905

830

295

277

2019

2020

897

645

3,307(FY)

Our bases around the world and sales ratios (FY2022)

34.0%

857

411

407
4,996

2018

2018

30.7%

Power supply business674

Net sales trend (in million yen)

35.5%

Developing strategies, acting andrepeatedly evaluating and improving

EuropeRatio of overseas sales

30.5%

5
Evaluation analysis for achieving the vision

China

4,199

32.4%

4Picturing the desired future

Europeand others

674

2021

2022(FY)

2018

2019

2020

2021

2022

(FY)

Asia (excl. China)
While many Japanese companies have manufacturing bases inSoutheast Asia, we have established a certain market share of
the power supplies for surface treatment in Thailand in particular.
Moving forward, we will strengthen sales promotional activities
targeting local companies in our efforts increase our marketshare.
While India is still a developing market for the Group, webelieve that the cultivation of the Indian market will be key forour overseas business because India is among the world’s top
economic powers, just like China. In FY2023, we will continue
to promote and accelerate our existing activities to cultivate theIndian market.

Net sales trend (in million yen)
2,987
2,407

1,979

1,911

1,745

2018

2019

2020

2021

2022

(FY)

million yen

2017

2018

2019

2020

2021

2022
(FY)

2.4%

Asia

(excl. China)

2,987

million yen

10.6%

41

Power semiconductor business

Power supply businessWe will work to expand sales of SiC semiconductors for electricbuses and the induction heating industry by positioning theproducts as the second pillar following the Triac semiconductorsthat are our mainstay products.

It is expected that power supplies for surface treatment, mainly
power supplies related to automobiles, will continue to be indemand. We will promote measures to strengthen relationships
with existing customers and find new customers.

SanRex REPORT 2023

42