Segment Overview

Yokowoʼs Business Domain

Vehicle Communication Equipment Segment

The Yokowo Group has implemented and refined a number of technologies such as antenna and microwave
technologies, while further deepening the technologies in micro precision processing. The Companyʼs businessdomain has continually expanded from antennas, connectors and advanced devices, branching out today into threesegments: Vehicle Communication Equipment, Circuit Testing Connector, and Personal Communication Equipment.

▼ Business Domain Map

Vehicle Communication
Equipment

Vehicle Antennas

GNSS Antennas

Circuit Testing Connectors

Personal CommunicationEquipment

Sales: 17,625 million(+33.1% YOY)

Sales: ¥9,141 million(-3.2% YOY)
Connectors forElectronic Devices(Fine Connectors)

Semiconductor
Testing Tools

Probe Cards

13SPRING CONNECTOR™

Hi-Giga-Socket

Vehicle Communication
Equipment

Circuit Testing Connector

Yokowo manufactures antennas for cars
(vehicle antennas), such as the SharkFin antenna, mainly for the automotivemarket.
By continuing to develop and propose
antenna systems to the customers
that support next-generation vehiclecommunication which meet the basic
needs required for smaller, multi-use,lower profile and smart vehicle antennas,
Yokowo is helping to create safe andcomfortable mobility services.

Yokowo manufactures probe cards forfront-end testing and sockets for backend testing mainly for the semiconductor
and electronic component testing market.
By making full use of its micro
precision processing and microwave
technologies, the Company provides
solutions for all processes in the areaof testing for electronic devices, suchas semiconductors and electroniccomponents, so as to meet the demands
for smaller size and greater speeds.

Yokowo 2022 Integrated ReportMedicalDevices

Coils for Guide Wires
and Catheter Shafts

Personal Communication
Equipment
Fine Connector Business
Yokowo is globally developing andproviding minute SPRING CONNECTOR™
that meet the needs for miniaturization andspace saving in various electronic devices,
mainly for the mobile communications
terminal market.

Medical Device Business
Yokowo provides a complete service
from the design to the development
and manufacturing of OEM guide wires,
catheters and other micro precision parts andassembly products, mainly for the minimallyinvasive medical equipment market.

(million yen)

FY2017FY2018FY2019FY2020

FY2021

36,25638,18339,26437,29240,081

Segment Overview

Sales: ¥40,081 million(+7.5% YOY)

Shark Fin Antennas▼ Vehicle Communication Equipment - Consolidated Sales

In this segment, Yokowo manufactures vehicle antennas,
including Shark Fin and GPS antennas for all areas from low
to high frequency, mainly in China and Vietnam with over
90% of production taking place overseas. Regarding sales, we
mainly provide our vehicle antennas to Japanese automobile
manufacturers, not only in Japan but also globally in the UnitedStates and ASEAN markets. Overseas sales account for over 60%
of all sales in this segment.
As a leading company of antenna systems that support nextgeneration vehicle communications, Yokowo will continue
to strengthen its core technologies including antennas, andpromote drastic reforms to its profit structure to continue togenerate long-term profits.

Segment Review (Fiscal 2021)
In the automobile market, the main market for this segment,
the global shortage of semiconductors and the delays in partsprocurement and other impacts by outbreaks of COVID-19
variants persisted throughout the fiscal year, preventing a fullscale recovery in production. A breakdown by region shows thatnew vehicle sales increased year on year in the US and China but
decreased in Europe and Japan.
In these circumstances, mainstay products for car
manufactures that are sold in Japan and overseas, such as
shark fin antennas and GPS antennas, ETC antennas, andother products mainly marketed in Japan, achieved net sales
substantially exceeding the levels year on year due to thereaction to the production cutbacks from the first quarter
despite a decrease in orders by the production adjustments at
automobile manufacturers from the second quarter.
As a result, sales for this segment increased year on year,to ¥40,081 million (up 7.5% year on year). The segment
reported a loss of ¥1,443 million (a gain of ¥443 million in theprevious fiscal year), reflecting higher physical distribution cost
attributable chiefly to a surge in ocean freight, higher laborcosts at production sites in China and Vietnam associated withappreciation of the local currencies, cost increases caused byrising materials prices, and the maintenance of the production
system in anticipation of a recovery in production at automobileVehicle
Communication
Equipment

CircuitTesting
Connectors

Personal
Communication
Equipment

manufacturers.

Segment Policy
Looking ahead, Yokowo will continue to promote further
business expansion and a more layered business model bygaining a full market presence in mobility service fields, suchas MaaS. The Company will do so while working on thedevelopment of more advanced strategic products with higher
levels of added value in new fields such as ADAS, automateddriving, and connected cars.
In addition to investment to increase capacity at its
production bases, Yokowo will forge ahead in rebuilding its
profit structure by stably expanding the automatic assembly lines
and automatic testing systems introduced in fiscal 2019, shifting
more production from its Chinese plant to its plant in Vietnam,
achieving stable operation of the Philippines plant as a thirdproduction base (began operations in April 2022), and making
the most of strategic alliances.

Shark Fin Antennas

GNSS Antennas

Yokowo 2022 Integrated Report

14Segment Overview

Circuit Testing Connectors Segment

Personal Communication Equipment Segment▼ Circuit Testing Connectors - Consolidated Sales

FY2017FY2018FY2019

FY2020

FY2021

9,503

9,138

12,832

13,242

17,625

Segment Overview
In this segment, Yokowo manufactures contact probes making
full use of its micro precision processing technology, and also
manufactures probe cards for front-end testing and sockets forback-end testing in semiconductor manufacturing processes,
which both use contact probes. Yokowo has production basesin Japan and Malaysia with overseas production accounting forover 60％ in this segment. Products are supplied worldwide,
mainly to semiconductor manufacturers and foundries, with over
80% of sales going overseas.
In recent years, Yokowo has expanded its product lineup in
cutting-edge fields, such as testing sockets for testing 5G devices
that use microwave technology, and probe cards for the testingof high-frequency electronic components (YPX) that make use of
MEMS technology. In fiscal 2021, monthly production capacity
for contact probes was approximately 6.2 million units.

Segment Review (Fiscal 2021)
In the semiconductor testing market, the main market forthis segment, demand related to testing remains very strong,reflecting strong demand for high-end personal computersassociated with the expansion of telework and online learningand tight supply of semiconductors for electronics equipment
including cloud services and smartphones.
In these circumstances, sales of jigs for semiconductor backend testing, the main product of the Group, were higher year
on year, due to an increase in strong orders and launchingon mass production of new products for logic semiconductor
testing sockets and sockets for high-frequency testing. Sales ofjigs for semiconductor front-end testing increased year on year
due to a steady expansion in the turnkey business that offersone-stop solutions services including peripheral devices. Demandfor MEMS probe cards (YPX) for high-frequency electronics
components testing rose significantly, reflecting the penetrationof 5G smartphones, and sales of the probe cards exceeded theyear-ago level.
As a result, sales for this segment increased year on year, to¥17,625 million (up 33.1% year on year). The segment reported
a profit of ¥4,871 million (up 81.6% year on year) largely due toincreased sales and higher profit associated with a weaker yen15(million yen)

Yokowo 2022 Integrated Report

VehicleCommunication
Equipment

CircuitTestingConnectors

PersonalCommunication
Equipment

as well as an increase in the ratio of products with comparatively
high profit margins, despite cost increases caused by rising raw
materials prices.

Segment Policy
Going forward, Yokowoʼs policy is to steadily capture theincrease in demand for semiconductor testing in fields such as
5G, IoT, in-vehicle, and AI. To this end, Yokowo will strongly
promote the strengthening of full-scale systems to; develop
and launch strategic products that target the market forhigh-frequency and high-speed signal testing related to 5G
communications, invest in capacity increases at domestic andMalaysian plants as well as establish domestic branch plants andVietnam plant, invest in improved efficiency and streamlining
such as by building automatic assembly lines and introducing
automatic testing systems, and expand its turnkey business inthe area of semiconductor front-end testing. Yokowo will also
strive to build a more profitable business structure and maintainstable business operations.

ContactProbes
YPX

Probe HeadSockets▼ Personal Communication Equipment - Consolidated Sales(million yen)

FY2017FY2018FY2019FY2020

FY2021

6,158

7,429

8,498

9,441

9,141

Segment Overview
This segment consists of two businesses; Fine Connectors andMedical Devices.
In the Fine Connector business, Yokowo manufactures
SPRING CONNECTOR™ which allow for easy attachment
and detachment to electronic devices. These connectors aremanufactured in Japan, Malaysia, and China, with over 80%
being produced overseas. Yokowo supplies a wide range ofelectronic device manufacturers in Japan and overseas, with over
80% of sales going outside Japan.
In the Medical Device business, in addition to micro precisionparts such as OEM guide wires and catheters, Yokowo designs,
develops, and manufactures assembly products at its Tomioka
plant in Japan. Yokowo mainly supplies domestic medical device
manufacturers, with approximately 10% of sales going overseas.

Segment Review (Fiscal 2021)
In the market for mobile communication terminals, a key market
for this segment, sales of smartphones were on a downward
trend. However, sales of wearable terminals are expected togrow given their diversification and greater sophistication.
The POS terminal market has been growing steadily in a wide
range of industries, including those engaging in logistics andmanufacturing, with a view toward improvements in operational
efficiency through information management. In addition, othermarkets including the market for industrial equipment are also
expected to grow.
In these circumstances, net sales for the fine connectorbusiness, for which fine SPRING CONNECTOR™ act as coreproducts, decreased year-on-year, reflecting a decrease in salesof products for POS terminals and products for wearable devices,such as wireless earbuds, from the second quarter on due to theglobal shortage of semiconductors and production adjustments
at customers caused by a resurgence of COVID-19 in ASEAN.
In the medical device business, which is included in thesegment, sales increased year on year, reflecting sales of newunit-based devices and growth in sales to Venture Ecosystemfrom the second half, which offset weaker orders in the first half
due to the impact of the COVID-19 pandemic.

VehicleCommunication
Equipment

CircuitTestingConnectors

PersonalCommunication
Equipment

As a result, sales for this segment decreased year on year,to ¥9,141 million (down 3.2% year on year). The segment
posted a profit of ¥1,256 million (down 39.1% year on year)
chiefly owing to lower profit on the back of lower sales in thefine connector business as well as a higher labor cost ratio at
production sites in China mainly due to a strong yuan, andchanges in the business structure.

Segment Policy
In the Fine Connector business, Yokowo plans to continue
working to expand its business and carry on with the multilayer structuring of its products, markets, and customers.
The Company will do this by accelerating the introduction ofcustom-type connectors such as high-performance, high-speed,large-capacity connectors that meet the product needs of adifferentiated market, and by expanding its standard productlineup to capture new demand.
In the Medical Device business, Yokowo aims to further
grow the business by increasing the production capacity of
micro precision parts with the installation of cutting-edge
production equipment and by expanding sales of guide wireand catheter assembly products in Japan and overseas. Yokowo
will strengthen our efforts in the venture ecosystem as amanufacturing partner that brings product ideas from venturecompanies in Japan to reality, and will also promote a multilayered structure to the supply chain in anticipation of businessexpansion in the cutting-edge medical field which is seeing
worldwide expansion, particularly in the United States.

SPRING CONNECTOR™

Coils for guide wires

Yokowo 2022 Integrated Report

16