Medium-term Management Plan (2021-2023)
SIIX Corporation
February 2021

©2021 SIIX Corporation

Medium-term Management Plan (2021-2023)©2021 SIIX Corporation1

Review of the Previous Medium-termManagement Plan (2018-2020) on Performance
Business Results
Performance Trends for 2018-2020
Net sales

Operating income

The results largely underachieved its targets for the
final year of the medium-term management plan,
which were consolidated net sales of 300 billion yen
and consolidated operating income of 14 billion yen.
[Main reasons for the underachievement]
2018: Cost increase due to response to rapid demand
growth at Mexico Plant
2019: Temporary increase in tariffs due to US-China
trade friction and relocation of production bases
to avoid them; China recession
2020: Lower utilization ratio due to COVID-19
pandemic and lower demand worldwide©2021 SIIX Corporation2

Review of Business Strategy and KPI of
Medium-term Management Plan
4 Topics

Review

Responding to the diversification of business fields (building the next pillar of automotive field)
Improvementof Profitability

・Addressed the various digitization needs of customers in the automotive equipment field.
・Support for electrical parts has progressed such as for igniter of power tool in the industrial equipment field, however, net sales remained at 2.0
billion yen in the medical-nursing device field.

Sales ratio for non-Japanese company
Enhancementof Readiness

・SIIXʼs share of consolidated net sales increased from about 9% to 14%. Customer account opening status has been improved but fell short of its
target of 20%.

Rechargeable battery business and molding business・Rechargeable battery business for igniter of power tool made progress. The number of plants for the molding business increased, however, its
business segment failed to generate stable revenue in the Philippines.

Strengthen technology of multi-process manufacturing
Innovation ofSIIXʼsManufacturing

・Introduced a fully automated assembly line and established SIIX's first mass production line for battery packs.

Establishment of a knowledge-intensive manufacturing platform and global development

・SMAPS, a cloud database for manufacturing technology and quality information, has been established and is now in operation.

Improving quality and fostering QCD technical experts

・Quality has improved by about 25%, and local human resource have grown to a level where they can train personnel from other plants.

Reinforcementof Organization

ESG ⇒ The target has yet to be reached, but will remain a long-term objective.
(S) Local executives ratio: Target 80% ⇒ About 78.9%
Female executives ratio: Target 50% ⇒ About 31.1%

KPI for achieving the Medium-term Management Plan

©2021 SIIX Corporation*Non-commodity field: Automotive and Industrial

KPI Activities

Target2020 Results

Number of new companies

100

104

Sales ratio for non-Japanese company

20％

13.6%

Net sales of non-commodity field

80％

73.2%

3

Review of Investment and Its Returns overthe Previous Medium-term Management Plan Period
Cumulative total of CAPEX and each segment income over the previous Medium-termManagement Plan Period (2018-2020)
Regionalsegment

Japan

Greater
China

ASEAN

EuropeAmericasTotalCAPEX

1,713

6,085

9,538

2,220

5,991

25,547

Segment income

1,823

7,314

9,751

555

308

18,025

 Europe and Americas segments are both expected to be profitable in 2021.

©2021 SIIX Corporation

4

Our Vision
Continue to provide benefits to the world as a
Global Business Organizer

Pursue the effective use of the worldʼsresources
Effective use of existing resources
Global network
One-stop solution©2021 SIIX Corporation

Identify, create and utilize newresources(Collaborate with technology partners)

5Value Creation of SIIX
E

Climate change
Low carbonization
Autonomous

ESG Issues

Management
Resource/Capital
Electronic
components
procurement

Business Model

KPI of MTMP

Wide range ofbusiness fields

Value

Field of Focus

Automotive

StablesupplyGlobal expansion
High quality
mounting
technology

outputFemaleexecutives

Convenience
input

Diversity
Low birthrate
and longevity
GenderS

IndustrialHighquality

One-stopsolution

Quality
BCPGLocal executives

Quick resolution
Collaborate withtechnology
partners©2021 SIIX Corporation

Governance

Speed
up

OutcomeReduction
ofenvironmental
impactEmployment
creation, job
satisfaction,and economic
developmentin the region

Information
AutonomousHome
appliance

IoT
Service

Customersatisfaction

6Performance Targets of the Medium-term Management Plan
Final Years’ Performance Targets for 2023
Consolidated net sales: 250 billion yen
Consolidated operating income: 10.5 billion yen(Operating income ratio: 4.2%)
Net sales

Exchangerate
USD: ¥103

Operating income

Consolidatednet sales
250 billion yen
Consolidated
operating income
10.5 billion yen©2021 SIIX Corporation

7

Three Targets and KPI of the Medium-term Management Plan❶

Expanding business withmajor global companies❷

Contributing to a
decarbonized society
through our business• Expansion of nonJapanese ratio• Strengthen global
quality and BCP support• Customer developmentin the medical field• Expansion of CASErelated business• Business expansion inthe industrial equipment
field, including IoT, laborand energy saving, etc.

KPI

KPI

Reinforce our ability to provide newfields and new products by utilizing ourexisting network.
• Non-Japanese ratio: 25%• Reinforce alliances with technology
partners: Net sales: 5 billion yen• Medical device field
Net sales: 5 billion yen©2021 SIIX Corporation❸ Diversity management• Improvement of local
executives ratio• Improvement of female
executives ratio

KPI• Non-commodity ratio: 85%• Local executives ratio: 80%• CASE: 35 billion yen• Female executives ratio: 50%• Battery: 10 billion yen8

SIIX GLOBAL NETWORKHeadquarters
Trading/Logistics subsidiary: 21
EMS factory (Subcontract): 11
Manufacturing plant: 6Injection molding factory: 2Others: Design and development: 4Component manufacturing: 3
Machinery and chemical goods: 4* Not included in above map©2021 SIIX Corporation

Respond to customer needs
by utilizing our global network
One-stop solution

9

Our Collaboration with Technology Partners
As a “Global Business Organizer,” we will propose the necessary resources andservices in collaboration with technology partner companies.

Optical and sensor
Optical lens, IR sensor, etc.

Communication network and IoT
Software, monitoring systems, etc.

Robotics
AGV, motor control, etc.

Raw materials and materials
Printing inks, functional materials, etc.

Energy management
Battery packs, etc.

Proposal for use in medical devices, automotiveequipments, smart buildings, security, vehicles,robotics, analytical equipment, etc.
Proposal for use in communication devices,
wireless, mobile, monitoring system, long-range
wireless, factory automation, robots, smart
houses, etc.
Proposal for use in medical equipment, varioustransport equipment, police vehicles, etc.

Proposal for use in electronics, chemicals, andother fields
Proposal for use in battery packs, chargers, DC toDC converters, etc.

Information on each partner company is available on our website.
http://www.siix.co.jp/eg/business/new_products_list/index.html©2021 SIIX Corporation

10

COVID-19 Tracking Token
Made a successful bid for Government Technology Agency of Singapore (GovTech)
As a measure against COVID-19, the application "Trace Together" is being used to enable
electronic contact tracking in Singapore.
In addition, Singapore Government has begun distributing tokens for people who, forvarious reasons, find it difficult to connect to their devices digitally.
A consortium of the Company’s Singapore subsidiary and our technology partner,
iWOW Technology, a wireless technology-focused IoT service provider, has been
awarded the second phase of token design and manufacturing by Government
Technology Agency of Singapore.
<Related Information>
Government Technology Agency of Singapore (GovTech)https://www.tech.gov.sg/media/media-releases/2020-08-21-tracetogether-token-media-statement-2

iWOW Technology Pte Ltd.
http://www.siix.co.jp/eg/business/new_products_list/iwow_technology/index.html©2021 SIIX Corporation

11

New Initiatives with SAKATA INX
・Three-company collaborative activities with SIIX, SAKATA INX, and Wonder Future
SIIX Corporation

Development, manufacturing, and sales of mass
production technology

Customer needs

SAKATA INX CORPORATION

ActionDevelopment of materials for electronics
chemical (Chemitronics)

New “Manufacturing”
・New method
・New material

Wonder Future Corporation
Damageless mounting technology by IH Reflow

We will establish mass production technology by incorporating new technology
into SIIX's highly reliable production technology.

Goals

Materials for printed electronics©2021 SIIX Corporation[Towards a prosperoussociety]Social Implementation
Program of new components
and devices by making
them smaller, thinner,
lighter, etc.

Digital signagedisplays

Mounting on low heatresistant materialConnected car
Resinization ofautomotive
material

Mounting on high heatdissipation material

IoT sensors
5G antenna

https://is.gd/A4sexa

12Net Sales/Non-commodity Ratio by Business
Automotive-related
equipment

Industrial
equipmentHomeappliance

Information
devices

General electronics,machines, others(JPY in 100 millions)

2,500

1,815

Non-commodity Field

85%©2021 SIIX Corporation

13

Business Expansion of Automotive Field and its Prospects
Expanding the electric area with CASE
Sensors, batteries, connections, and various control
boardsIncreasing trade size with non-Japanesecompany
European and American company

Net sales of nonJapanese company
Approx. 7.5 billion yen

Net sales of CASE
Approx. 10 billion yen

Net sales of CASE
Approx. 35 billion yen
Net sales of nonJapanese company
Approx. 45 billion yen

ExistingJapanesecompany©2021 SIIX Corporation

14

SIIXʼs Strategic Policy for High-Quality Manufacturing
・Enhancement of Manufacturing Management
Management
Leadership・Automation
・Manpower reduction・Speed ・Accuracy
・Smart factoryShareinformation

e-Manufacturing

AdvancedTechnology

SIIXʼsManufacturing
Innovation
・Global data
・Global network

・Enhancement of PCB mounting technology
・Enhancement of manufacturing technology
・Adoption of advanced technology©2021 SIIX Corporation

Globalstandard• Development of global
human resources• Development ofteamwork
HumanDevelopment

RobustGENBA• Rrealization of robust “GENBA”• Enhancement of manufacturing
efficiency, quality and training
15

Diversification of the SIIX Business andRequired Core Technologies
Automotive
Equipment

Consumer Equipment
High density and large-mixed mounting

IoT, 5G, AI

CASEHigh accuracy mount, COB and MID

High density mount,module mounting

Development of mounting andmanufacturing technologies
that can respond to future DX(Digital Transformation)requirements, from mounting
to assembly

Heat-labile materialmounting

Molding and battery

Information andCommunication Devices©2021 SIIX Corporation

Industrial Equipment and Others
16

Strengthening the Readiness of CASE
Automotive BusinessCＡ
AutonomousConnected

Ｓ

Shared & Services©2021 SIIX Corporation

ＥElectric17

Top-class EMS for Automotive
SMT 152 Line

Towards Best QCDS for CASE

69 Molding Machines(Next SMT Process Technology)(Automation)(Camera Module)(LED High Accuracy Mount, COB and MID)

(PCBA+Injection)(High Density Mount)Because we are SIIX, “Global Business Organizer”, we can realize;

Abundant technology of multi-process manufacturing and global
management of manufacturing, technology, and quality across 12 factories©2021 SIIX Corporation

18

Measures to Strengthen Manufacturing Technologyand Its Quality
 Strengthen manufacturing technology and its quality in response to DX(Digital Transformation)• Pursuing a development that anticipates elemental technologies (improve newbusinesses and new methods)• Increasing customer satisfaction by collaborating on core technologies with key devices
and key technology partners• Further enhancement of automation and its application to production systems (promotionof Smart Factory) Build Tier-1 quality system and strengthen corporate governance,
share and utilize information, and enhance BCP• Strengthening of quality governance, sharing of know-how for improvement, speeding up ofutilization, and expanding information globally• Establishing a global education system and reinforcing its training©2021 SIIX Corporation

19

Standardization and Sharing Information of Manufacturing,Technology, Quality, and Know-How Training
All SIIX global manufacturing meetingin Jan. & Jul. every year

Held quarterly
Speed upthe informationexpansion

Held in Osaka, Feb 1, 2020

Management staffs of manufacturing,
technology dept. of all SIIX plant(Participants are limited→ Share information later)(Mainly in Japanese)

Held in July and Oct 2020 and Jan 2021
Online conference

Local key staffs of manufacturing,technology, quality, etc.
(Unrestricted participation→ Share information immediately)(Mainly in English)

Free discussion and sharing of quality policy and its improvement, manufacturing technology,
manufacturing efficiency improvement, automation, educational training.
©2021 SIIX Corporation

20

Education Support System for
Manufacturing, Technology, Quality, etc.
SMAPS (Siix Manufacturing Platform System)
Under Planning (2021 2H)

In Operation

Manufacturing
Technology Information

Quality Information
In Operation

Standard Manual
Procedure Manual

SMAPSD/B-Cloud-Under Planning (2021 2H)

Facility Information
Partially in Operation

In Operation

Know-How for Improvement

Instruction Material
Use for Online Training

SMAPS enables us to utilize the real-time dataof manufacturing technology at GENBA©2021 SIIX Corporation

21

Global Education Reinforcement System
Molding, Die cast GP

Proactive use of Philippines humanresources and mutual global support
by Global Engineering Dept. and key
members of each factory

Philippines

SHB
China

SCP
SEI
Philippines

Indonesia

Track record
MexicoSEM

SEP
GlobalEngineering
Dept.

Battery GPSxx

Sxx
Track record

SHUSEJSxx

HungaryJapan©2021 SIIX Corporation

PCB mounting, Assembly GP
22

SIIX’s ESG Improvement andCO2 Reduction Activities

Building 2

Building 1

Indonesia Plant (2021)
Mexico Plant (2022)
Planning to install in sequence

SIIX Shanghai Plant (Began operation in January 2021)<Specifications of Solar Panel>
Substation capacity: 1,841KVA
Number of panels: 3,960
Annual power generation (25-year average): 1,823,000 KVA
Roof area covered: approx. 15,000 m2
Reduces daily power consumption by approx. 15%©2021 SIIX Corporation

23

ESG

EnvironmentInstallation of solar panels

Current

Target

0.34t/
million yen

Year-on-Yearreduction

Current

Target

78.9%

80%

31.1%

50%

• Installed at Shanghai plant (January 2021)

Reduce CO2 emission Reduction effect of 1,817.5 tons per year
intensity (basic units) • Planning to install at the Jakarta andMexico plants in sequence.

Social*Executives: Manager and above

Local executives ratio Ratio of local executives inmanagement of all SIIX Group plants
Female executives
Female executives ratio
ratio

Governance Strengthen compliance with the Corporate Governance CodeStrengthen thegovernance system©2021 SIIX Corporation

Addressing remaining issues as SIIX24

Shareholder Return
79.5
Dividends per share (JPY)(Left axis)
Dividends ratio (%)(Right axis)

¥25.0

¥26.0

¥27.0

¥28.0

¥29.0

¥30.0

¥21.0

¥14.0

1株当たり配当⾦（円）Dividends per share (JPY)(Leftaxis)(左軸)
連結配当性向（％）
Dividends ratio (%)(右軸)(Rightaxis)# of⾃treasury
⼰ 株stock
式 acquisition
取 得Amount of treasury stock
⾃⼰株式取得⾦額
acquisition (JPY)©2021 SIIX Corporation

¥15.0

¥16.0

¥17.0

'11/12'12/12'13/12'14/12'15/12'16/12'17/12'18/12'19/12'20/12'21/12(forecast)
(予想)

14.0

15.0

16.0

17.0

21.0

25.0

26.0

27.0

28.0

29.0

30.0

24.3

23.0

22.7

19.4

15.2

18.7

18.1

20.5

35.8

79.5

24.9

-

-------

508,900株
508,900

2,000 mil.
約20億円

-

203万株
2.03 mil.

4,000 mil..
約40億円※記念配当1円含* includes
commemorative dividend 1.00 yen

25Disclaimer• The information contained in this document is intended to provide financial information and performanceindicators of SIIX Corporation (hereinafter referred to as “the Company”), but no representation or warrantyis made regarding the content.
The document is not prepared for the purpose of soliciting investments. When actually investing, pleaserefrain from making investment decisions based entirely on the information on this website, and makeinvestment decisions based on your own judgment.
• The Company has taken the utmost care with regard to the information contained in this document. However,
the Company assumes no responsibility whatsoever for any errors in the information contained herein, or for
any damages resulting from the data falsification or the data downloading by third parties.
• Some information posted on the website contains statements regarding future performance. Such statements
are not guarantees of future performance and are subject to risks and uncertainties. Please note that futureperformance may differ from actual results due to changes in the environment and other factors.

©2021 SIIX Corporation26