SIIX Corporation

Integrated
ReportGlobal Business Organizer

1

Philosophy of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information2

Corporate Philosophy
Corporate

Corporate

Corporate

Corporate

Theme

MissionTarget

Style

INDEX

The Corporate Theme is the
SIIX business concept.

The Corporate Mission is themission SIIX should try to achieve
in terms of society.

The Corporate Target is the vision ofan extremely high level corporation
which we strive to be.

The Corporate Style is what our company
should always consider very important as
to how we should be as a corporation.

Provide the best merit forbusiness through the best
business organizing.

We contribute to the activationof the social system and theprogress of humankind by
pursuit of the effective use of
the world’s resources.

We will become a company
that organizes customer needs
in all fields around the world togive all stakeholders a senseof affinity and charm as a“global business organizer”
that creates business.

1st filter:
Challenging, Speedy and Fair

Philosophy of SIIX
Corporate Philosophy

1

Knowing SIIX
SIIX in Numbers [financial and non-financial highlights]
History of Value Creation
Value Creation Process
Value Chain
Global Network

3
5
7
9
11

Value Creation Story of SIIX
Message from the Chairman
Message from the President
Feature Article “Measures and Progress of Medium-Term Business
Plan and New Medium-Term Business Plan (2021-2023)”
Message from the Chief Accounting Officer

2nd filter:
Sophisticated, Creative and Simple

13
17
21
23

Business Overview of SIIX
Automotive equipment / Industrial equipment / Electric home appliances /Information devices / Machines, others, general electronics
25

2n

d

1s

t

Editorial policy

Disclaimer

Period and scope

We have issued the 2021 Integrated Report to explain in aneasy-to-understand way the financial and non-financial aspectsof SIIX’s business strategy and management foundation to ourstakeholders. Please refer to our official website for detailed
information.
http://www.siix.co.jp/eg/index.html
Going forward, we will continue to work toward the realizationof a sustainable and global co-creation society through our
main business.

Business forecasts, outlooks, strategies and targets stated inthis report, except for those relating to the past or present
facts, are forward-looking statements and based on information
currently available to the company and plans, expectations
and judgments based on certain assumptions deemed
reasonable. Accordingly, please understand that actual results
may differ from the disclosed business forecasts, etc. due tovariable factors with various uncertainties such as economic
conditions.

Period: FY2020(January 2020 to December
2020)*Some sections of this report
include information during
and after December 2020.
Scope: SIIX and its subsidiaries andaffiliates

ESG of SIIX
Corporate Governance
Message from External Director
Message from Director
Environmental Conservation
Society

29
31
33
35
37

Financial Information
Consolidated Financial Summary
Consolidated Financial Statements

39
41

Corporate Data

46

Information disclosure and communication
Financial information

Non-financial information
Integrated report

Annual securities report Consolidated Financial Results Financial results briefing materials

Shareholder report

Corporate governance report

WebsiteTop page

IR information (Investor Relations)

http://www.siix.co.jp/eg/index.html

http://www.siix.co.jp/eg/ir/index.html

3

Knowing SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

SIIX in Numbers [financial and non-financial highlights]

Financial data
Net sales / Operating income /Operating income margin

Profit attributable to owners of parent /Net income per share (EPS)■ Net sales (million yen) ■ Operating income (million yen)
● Operating income margin (%)■ Profit attributable to owners of parent (million yen)
● Net income per share (yen)Operating income margin
242,804

233,153

212,768
9,134

9,705

4.3

4.2

2016

2.5%
223,037

181,598

8,625

2017

2018

2020

Operating cash flow / Investing cash flow /Financing cash flow
■ Operating CF (million yen)
● Financing CF (million yen)

Operatingcash flow■ Investing CF (million yen)

13,280

6,333

6,410
4,536

△4,171△5,4502016△9,211

2017

7,991

million yen

2018△ 6,034

2019

2020

Non-financial data
Total CO2 emissions (SCOPE2) (FY2020)
Total CO 2 emissions

61,549t● Capital-to-asset ratio (%)● D/E ratio

Capital-to-asset ratio

38.8%

D/E ratio

131.45

2018

46.8
3,695
78.21

2019

43.9

40.5

40.3

1,724
36.48
2020

0.3

0.2

2016

2017

2018

2019

2020

0.8

0.7

0.6

38.8

0.8

2016

2017

2018

2019

EBITDA / Capital investment

Rate of ordinary income to total assets /Return on equity

Dividend per share / Payout ratio■ EBITDA (million yen) ■ Capital investment (million yen)

● Rate of ordinary income to total assets (%)■ Dividend per share (yen)

EBITDA

10,4981,291△9,602

million yen

D/E ratio

6,414

144.01

2017

12,4062,923△6,5152016

13,280

8,945

966

7,093

6,698

4,452
2.5

2.5

2019

1,724

133.81

5,506

3.6

Profitattributableto ownersof parent

Capital-to-asset ratio

4,528

2016

13,170

6,167

2017

Return on equity

million yen
13.3

12,861
7,483

2018

10,983
9,082

10,498

8.3

13.1

2020

CO2 emissions that may be reduced bysolar panel power generation(FY2020 full year conversion)

1,817.5t* Solar panels have been installed at Shanghai Factory.
The above figure is the CO 2 emissions that may be reduced,
converted into the full year amount.

3.0%

6.5

2017

Payout ratio

79.5%

79.5

2018

25.0

6.5
4.0

2016

● Payout ratio (%)

11.4

8.8

5,573
2019

● Return on equity (%)

2019

3.1
3.0
2020

Ratio of women in
management positions*

2020

26.0

27.0

29.0

28.0
35.8

18.7

2016

18.1

2017

20.5

2018

2019

2020

Ratio of local employees inmanagement positions*

31.1%

78.9%

*Management position: job level above the rank of a manager in each consolidated company

45

Knowing SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

The foundation of the company traces back to when an
export section was created in the trading division of
Sakata Shokai Co., Ltd (currently Sakata Inx Corporation),
the ink-maker that was the company’s predecessor, andexports of electronic components to the Philippines began.
The company’s business model, constructed with a focus
on “overseas business” since the initial stages of its
founding, is now standing right on the verge of a “global
age,” which will provide a stage for even greater activities.

From 1979
1979

Established a joint venture company in Singapore to
start the circuit board mounting business
Became a pioneer of SIIX’s EMS business

1982

Became a sales distributor of
Panafacom and started sales ofcomputers overseas, mainly inEuropeCommenced overseas sales of
CRT monitors under the Sakata
brand

From 1957
1957

The company’s founder Murai who was in charge ofexport in the trading division of Sakata Shokai(currently Sakata Inx Corporation) set his eyes on the
future prospects of the electronic components market
and started exporting electronic components made inJapan to the Philippines (founding of the company)

1977

pa
nd
ma e d b
inl y u s
in in e sAs sia

Commenced circuit board mounting business inThailand

From 2010

1990

Established a joint venture company in the Philippinesand commenced production of wire harnesses forautomobiles

2010 Established the company’s first domestic manufacturingsubsidiary in Sagamihara City, Kanagawa Prefecture
Established a manufacturing subsidiary in Jakarta,
Indonesia

2012 Established a manufacturing subsidiary in Shanghai

Co
m
EM me
S b nc e
us d
in e
ss

manufacturer and became an exporter of its products
Commenced the export of motorcycles, chemical
products, transport machinery, etc. to the Philippines
Established the company’s first joint-venturecompany in the Philippines to strengthen sales ofmotorcycles and chemical products

1974

Ex

1988

1960s Invested in an electronic musicalinstruments

1970

Established a sales subsidiary in Indonesia

1996 Commenced sales of components

to major Japanese manufacturers ofautomotive equipment
After making a full-fledged entry into thefield of automotive equipment, the company
started receiving outsourcing contracts formaterials procurement, circuit board
mounting, assembly, and other processes
from a variety of customers around theworld, allowing it to expand and grow the
automotive equipment sector into themain business area of the company

Commenced full-fledged OEM production and exportof electronic organs
Established Hammond International Japan Inc jointlywith Hammond Inc in the U.S.
Commenced assembly and production of motorcycles
with Kawasaki Heavy Industries, Ltd. using local
capitalStarted trilateral trade in
Singapore which was
groundbreaking in its time

Financial Information

Exp
gl o a n s
ba ionln
e t w ofork

History of Value Creation

History of SIIX

ESG of SIIX

1997 Commenced production of LCD
Com
ac t me nc
ivit e di e s tr aove dinr se gas

From 1992
1992 Spun off from Sakata Inx andestablished Sakata Inx International

modules for European mobile
phone manufacturers

1998 Company name changed to SIIX
Corporation

2000 Established a semiconductor design anddevelopment company and commenced
development and manufacture of LCD driver
ICs for mobile phones (sold in March 2005)

2001 Established a joint venture company in Shanghai,
1993 Commenced circuit board mounting
Pioneer of EMS
In recent years, the term EMS (electronics manufacturing services) isfrequently seen in newspapers and other media. However, in 1979,
when the term did not exist, SIIX started this business overseas(Singapore) and became a pioneer in the Japanese EMS industry.

business with a joint venture in
Guangdong Province, China (leading
to the current Dongguan Factory)

1994 Commenced circuit board mounting

business in Batam, Indonesia (leading
to the current Batam Factory)

China and commenced the EMS business
Established a joint venture company in Slovakia
and commenced the EMS business
Commenced VMI service for major
Japanese manufacturers of automotive
electronic components

2013 Established a manufacturing subsidiary in the Philippines
Established a manufacturing subsidiary in Mexico

2014 Established the company’s first joint venture company forplastic molding and die manufacturing in the Philippines
Established Nagoya Sales Department in Sakae,
Naka-ku, Nagoya City

2015 Established a joint venture company with GD MIDEAHEATING & VENTILATING EQUIPMENT CO., LTD.
Established a joint venture company with a medical
device development company in Singapore andentered the robotics field

2016 Established the Detroit Branch in the U.S.

Established a manufacturing subsidiary in Hungary

2017 Established a second joint venture company with GD

MIDEA HEATING & VENTILATING EQUIPMENT CO., LTD.
Established a manufacturing subsidiary in Hubei
Province, China
Established a sales subsidiary in Hanoi, Vietnam

2002 Commenced EMS business forautomotive equipment at the Thai Factory

2007 Opened a logistics center in Thailand

2019 Established a sales subsidiary in Kuala Lumpur,
Malaysia67

Knowing SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

* What is a global business organizer?

Value Creation Process

Business Overview of SIIX

ESG of SIIX

Financial Information

Producing the best added value by knowing and combining resources around the world.
Through such methods, the global business organizer will provide greater satisfaction.

Business modelSocial issues

Managerial
resources/capitalusiness plan KPI
term bm
diu
MeElectronic
components
procurement
capability
E

21

OUTCOME

Automotive

Value provided to society
Reduction of environmental impact

p. 35

Climate change
Lower carbon
Automation

Broad range ofbusiness
sectors

Value

Global bases

INPUT
High-quality
mounting
technologies
Sp.

Focus areas

Global businessorganizer*“Trust”

p. 9

Industrial

Stable supply
Convenience

Creation of employment,
job satisfaction and economic
development in markets we enter

OUTPUT

High quality
Speed

Information

p. 37

Diversity
Lower birthrate
and aging population
GenderQuality

Women inmanagement
positions
Automation
One-stop
solution

Electric home
appliances

Local
management

G

p. 29

Corporate
governance
BCP

Promptresponse
capability

Collaboration
with technology
partners

Governancep. 29

Customer satisfaction
IoT services89Knowing SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Value Chain
Breakdown of net sales
Gather electronic components overseas
EMS
and mount them on circuit boards on

Provide materials procurement, manufacturing, and logistics services as a
one-stop service

80%

Approx.

behalf of the customer, and deliver thosecircuit boards to the customer

Trading company

20%

Approx.

Gather electronic components
overseas on behalf of thecustomer, and deliver them tothe customer

Stock control
and logistics
Corporate
customers

Materials
manufacturer

Materials
procurement

Circuit board mounting
and assembly atcompany-owned
factories

Value
provision

Molding

Strengths

Issues●Strong purchasing power for Japanese components

●

●

●

Materials procurement function for circuit board
mounting instead of just procurement as a trading
company (factory procurement)

High-quality, high-precision mounting capabilities at
global bases

Enhancement of handling of European andAmerican components●

Factory area with adequate room for expansion (canbe expanded from the current 150 lines to 300 lines)●

Search for merchandise over a wide range without
being restricted to just electronic components

Deployment of molding operations in the areaadjacent to the circuit board mounting area●

Work reform to reduce inventory●

Enhancement of stock management in real time

Capability in proposing alternative components thatare cost-competitive●●

Collaboration with technology partners on a global basis●●

Materials management service in various countries
around the world●

Provision of services to customers in diverse
business fields by focusing on versatility●

Further improvement in mounting quality andprecision, expansion of the scope of information
shared between bases●

Optimization of molding function for global
deployment●

Expansion of customers in the medical device field

10

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Knowing SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Global Network

Global deployment with 50 basesin 14 countries worldwide
The ability to provide a variety of outsourcing options
to our customers through our extensive and organic
network of overseas bases is one of the strengths of SIIX.
We have established bases in approximately 50 locationsin 14 countries worldwide that can assist in the global
business development of our customers, from materials
procurement to manufacturing and distribution.
(As of the end of December 2020)

Composition of sales by segment

Meeting domestic demand in
China in the future

Main businesses
Sales and distribution of electronic
components, etc.

China

Sales of electronic components, etc.

(million yen)

Circuit board mounting, assembly andprocessing of devices and components

48,31854,209

Plastic molding and die manufacturing
FY2019FY2020Net sales
Japan

China

42,106 million yen

48,318 million yen

23.2%

26.6%

Branch office / representative office*★indicates a non-consolidated subsidiary

Europe● SIIX (Shanghai) Co., Ltd.

ASEAN

5.4%

● SIIX EMS (Shanghai) Co., Ltd.

28.6%

Americas9,749 million yen● SIIX HUBEI Co., Ltd.

16.2%

● SIIX EMS (DONG GUAN) Co., Ltd.
● SIIX (Dongguan) Co., Ltd.

181,553million yen

51,865 million yen

29,513 million yen★

● SIIX H.K. Ltd.

● SIIX TWN Co., Ltd.

❾

*Other than the above, consolidated net sales of 181,598 million yen
include 45 million yen that does not belong to any reportable segment.

●

Contact for major European
corporations❶❷

EuropePreparations to expand domestic
production in JapanJapan(million yen)

10,9099,749

FY2019FY2020❾ SIIX Europe GmbH❾
SIIX EMS Slovakia s.r.o.
SIIX Hungary kft.

Support for decentralized
production needs, coordination
with cutting-edge technologies

ASEAN

42,106FY2019FY2020❺❻(million yen)

50,632❸ ❹❼● SIIX Corporation❶● SIIX Electronics Co., Ltd.
❷(million yen)

67,32651,865FY2019FY2020❽● SIIX Bangkok Co., Ltd.

● SIIX EMS (THAILAND) CO., LTD.
● SIIX Vietnam Company Limited*★

● SIIX Malaysia Sdn.Bhd● SIIX Phils., Inc.

● SIIX Logistics Phils, Inc.

● SIIX EMS PHILIPPINES, INC.

● SIIX COXON PRECISION PHILS., INC.

Indonesia
Construction of the second buildingof Karawang Factory
In order to address strong demand fromautomotive related companies in Indonesia,
we are constructing the second building of
the Karawang Factory in West Java, withcompletion planned in September. We willcontinue to support manufacturing forcustomers in Indonesia where growing
demand is expected.

● SIIX Singapore Pte. Ltd.

● PT SIIX Electronics Indonesia● PT. SIIX EMS INDONESIA● PT. SIIX Trading Indonesia★

*⑲ transferred its business to ⑳ in January 2021 and was liquidated.
⑳ changed the company name to Thai SIIX Co., Ltd. in February 2021.

Second building of Karawang Factory inIndonesia under construction

Enhanced support for western
corporations in Mexico

Americas(million yen)

39,90729,513

FY2019FY2020● SIIX U.S.A. Corp.
❸● SIIX U.S.A. Corp. Detroit Branch❹● SIIX U.S.A. Corp. Irvine Branch❺● SIIX MEXICO, S.A DE C.V. ★
❻● SIIX EMS MEXICO, S. de R.L de C.V.
❼
● SIIX do Brasil Ltda. ★
❽

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Value Creation Story of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Message from the Chairman

We will sincerely address managerial
issues as we aim to become a
top regional company at all our basesaround the world.
Shiro Murai, Chairman

Business opportunities in
the automotive industry which
we have continued to seek since
founding the company
At SIIX Corporation, we have operated our businesses forover 60 years under the spirit of “We Care.” During thisperiod, we have overcome various challenges such aschanges in the global economy and achieved growththrough facing fierce competition. The origin of SIIX goesback to my younger days when I went overseas alone withan insatiable desire and constant readiness to take up
challenges under the concept of “zero,” which means that
because of being empty-handed, we can produce
something completely new before anyone else. In parallel,in various overseas regions, I, having no personalconnections there, had built a true relationship of trust witheach and every customer. This emphasis on relationships
has been our business foundation up to today.
In addition, we have earnestly pursued value in services
that contribute to the development of the manufacturingindustry in terms of how to address customers’ needs
and increase their satisfaction, since the days in which theassembly, manufacturing, and logistics. At that time, we

term EMS (electronics manufacturing services) did not exist.

thought that “with respect to time, conditions are equal

Today, the company is establishing a world leading

for large companies and SMEs” and pursued the value of

position in the automotive EMS market. This is the result

time. Still, we aim to offer suggestions for customers’of our efforts that have been continuing for 60 years, notissues faster than any competitors and this is a driving

just a few years, under which we have developed ourforce for gaining trust from customers.

target market and improved the company’s strength.
When starting up the current SIIX business, we were
engaged in ink sales that were the main business ofthe parent company. However, considering future
marketability, we focused on finding fields with durable
growth potential. This was the reason we started to

Making the automotive EMS
business robust, looking ahead tofuture changes in the automobile
industryhandle electronic components. As the proverb “first

Currently, the environment surrounding the automobile

come, first served” says, we started to engage in the fieldindustry has been greatly changing. As the industry isof electronic components before any other companies

rapidly shifting to electric vehicles with electrification andunder a long-term perspective. This is a foundation of ourautomation, the structure of the industry is going tocurrent success and constitutes the company’s strength.

experience drastic changes. Taking into account the

Looking back into history, when we initially focused on

future conditions, it is expected that with the spread of

the automotive field, we started to deepen ties with theelectric vehicles, finished vehicle manufacturers or Tier 1

automobile industry including dealers of large-sized

car manufacturers (primary suppliers) will be newly

motorcycles in the Philippines and automobiles in thefounded around the world. In this situation, automotive

ASEAN countries. After that, looking at the company’s

EMS companies will be needed for supporting

capabilities objectively, we considered that competing as amanufacturing by customers in each region. The company

sales dealer was not the best plan and shifted our businesshas strength in materials procurement, assembly,

to more realistic ones including material procurement,

manufacturing, and logistics that match needs in each

14

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Value Creation Story of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

region and intends to support drastic changes in thethe policy since the company’s foundation that theincluding mounting of printed circuit boards, and made aworldwide automobile market by deploying assembly

persistent pursuit of no defects makes businessgreat achievement for building a foundation of the current

bases and establishing a global service structure. The

expansion possible, we, as an entire company, will strive

EMS business. The company believes that it shall further

three years from now, I believe, are a critical period. The

to improve quality. Recently, from the aspects of the costs

reinforce the foundation of human resources who cancompany has been steadily strengthening its structure toand business continuity plan (BCP), customers’ needs formake sustainable growth possible, including managerial

respond to those changes and will solidly executeautomated and unattended manufacturing processes

talent following President Yanase. In past years, we

strategies as new growth opportunities.

have been growing, which will be addressed as anotherfocused on developing mainly Japanese human resources.

important managerial issue.

However, going forward, we will nurture human resources

In particular, as the China and US automobile markets

at each base worldwide and develop talented individuals,

are important, we have worked to expand bases in

Going forward in the middle of the
fairway and building relationships oftrust with all stakeholders

regardless of their gender and nationality, as candidates

we plan to receive full-scale orders. Also, regarding the

In recent years, it is essential for companies to address

regional company means not only achieving the top in

US market, we have a base in Mexico in addition to

ESG management and SDGs in corporate management.

terms of net sales or business scale but also relationships

China, and established a structure to respond to local

In this regard, the company has forced itself to “goof trust with our customers, employees, business partners

needs flexibly. Furthermore, also in Europe, we expect toforward in the middle of the fairway” since its foundationand persons in local communities. For realizing this goal,

improve business results in future, as businessand stressed this to officers and employees. Needless tothe company needs to pursue social value, in addition totransactions with Tier 1 car manufacturers suppliers havesay, as golf is said to be a gentleman’s sport, importanceeconomic value. During the course of such process,been rapidly increasing. Meanwhile, regarding the ASEAN

is attached on players’ manners. Winning is not everything,building strong relationships of trust with all stakeholders

countries that are expected as future markets, we haveand it is required for players to play a game fair andhas been my wish for over 60 years.

been expanding factories mainly in Indonesia.

square in the fairway.

Shanghai and Wuhan in China. Under long-standing
relationships of trust with local customers, we have madevarious initiatives looking into the future spread of electricvehicles, while making prior investments. From FY2021,

for managerial positions.
In the years ahead, SIIX will aim to become a top
regional company in all bases around the world. A top

As mentioned above, in three years from now, theThrough these efforts worldwide, we are deeply

Consequently, we may be placed in a disadvantageous

automotive EMS business will rapidly expand. We will

confident that our services matching local needs will beposition in some games. However, a fair and honest

aggressively focus on the steady execution of our businessmore extensively provided. While in the automobile

attitude is indispensable for winning the trust of people.

strategies, while defensively strengthening our management

Even in business, we shall never be involved in misconduct

foundations in relation to ESG management and SDGs.

business with solid confidence in the potential of theseeking immediate benefit, which constitutes theBy balancing aggressive and defensive approaches, we

proactive investments looking further ahead. In thisautomotive EMS business. We sincerely thank all

fundamentals of SIIX’s business. On the basis of thewill achieve sustainable growth without being affected byrespect, we are highly evaluated by finished car

investors who understood the company’s management

above, we aim to sincerely tackle and solve various issues

the economic environment. Through these efforts, we are

manufacturers and Tier 1 car manufacturers, giving us

and provided support during this period.

concerning ESG management and SDGs.

determined to keep trust of all investors. Accordingly, we

industry, it is essential to take measures looking ahead
more than a few years, the company has been making

competitive advantages in receiving orders. In future, we

As we look toward the future sustainable growth of theParticularly, environmental issues including reduction inwill produce results higher than expected by investors

company, there are multiple growth opportunities, besides

greenhouse gas emissions are an important issue in thethrough expanding our business performance.

our core automotive EMS business. We are carefully

automobile industry and the company is tackling these

responding to customers’ demand in fields ranging widely

issues in a faster manner. For example, our bases in

Developing new markets satisfying
customers’ needs, by utilizing our
network around the worldfrom the procurement of components embedded into

Indonesia and Mexico are utilizing recyclable energy suchproducts to production of modules, circuit board mounted

as solar power generation to make steady progressproducts and finished products, for industrial equipment,

toward decarbonization. In future, we plan to make similarelectric home appliances, information devices and generalefforts at our bases in other regions. Through theseIn addition to the automobile market, the company turned

electronic components. Furthermore, in recent years, weefforts, we will progress toward building a structure where

its eyes to the mobile fields including cell phones earlier

are seeking an opportunity in the medical device field andour customers in the automobile and other industries willthan other companies and has developed markets. This

the specific project may begin in FY2021.

enthusiastically ask us to produce their materials at

led to our current EMS business in the electronics

We will also focus on developing new markets in otherindustry. However, amid globally intensifying competition

fields, by continuing to respond to customers’ needs

Also, it is important to develop human resources whoin the mobile fields, we changed our policy in 2001 to

through the utilization of networks in our bases worldwide

will address various issues concerning ESG management

invest our managerial resources intensively into theas our advantage. Though existing customers are mainly

and SDGs. In 2020, Koji Yanase was appointed as

automotive field. At that time, members of the Board ofJapanese companies, we will strengthen our proposition

President and for one year since then, he has been

Directors had heatedly argued for and against this policy.

to non-Japanese customers in our regions.

vigorously addressing various managerial issues amid harshfactories of SIIX.

However, based on long-year experience of careful

Moreover, as our business scale expands globally,

conditions due to COVID-19 pandemic. After joining theexamination of the automobile markets in various regions

further improvement in service quality is also an importantcompany in 1990, starting from the sales of electronic

around the world, we resolutely made a shift in theissue, along with the cultivation of new customers. Under

components, he worked hard to provide services

look forward to your continued support.

16

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Value Creation Story of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Message from the President

In the midst of the rapid expansion of theautomotive EMS business, we will strive tomeet the challenges of our customers andsteadily improve our business performance.
Koji Yanase President
We will promote responses to the issues thatmaterialized during the COVID-19 pandemic,
and prepare to face the next issues
I would like to offer my sincerest sympathies to all thoseaffected by COVID-19 and their friends and families. At
the same time, I would like to express my deep gratitude
toward all the medical professionals and other persons
endeavoring to prevent the further spread of COVID-19.
As the impact of COVID-19 was felt around the world,
the SIIX Group was also forced to halt operations, albeit
temporarily, at sites in various regions during the second
quarter of 2020. During this time, I was concerned as amanager about the risk of the situation worsening, but I
also focused my efforts on executing Business Continuity
Planning (BCP) across the Group as a whole, based on
the belief that, “our mission is to support the businessesof our customers by demonstrating the true capabilities of
the SIIX Group, precisely in crises such as this.” We wereable to respond flexibly to rapidly changing circumstances
by fully utilizing the advantages of operating a global
business across numerous sites, such as immediatelytransferring production to different regions when
operations were suspended in agiven region.
Under a difficult management
environment, the SIIX Group
worked together to respond tovarious issues. As a result, I believe
we succeeded in minimizing theimpact of the COVID-19 pandemic,
and fulfilling the demands of ourcustomers to keep manufacturinglines operating.
Additionally, in terms of investments
for medium- to long-term growth,
we are steadily developing oursites in locations around theworld without interference fromthe COVID-19 pandemic. For example, we are building a
new factory in Indonesia, and it seemed at one time that
we may need to revise our plans owing to the impact of
COVID-19. After repeated discussions by the board of
directors, however, we decided to press ahead with ourplans, with the intention of completing construction in
September 2021 and beginning full-fledged operation in
November. On this point, I firmly believe that we will beable to ensure that the factory construction is in line withour customer’s production plans.
While these events were unexpected, we havemanaged the SIIX Group under the firm belief that even if
our businesses temporarily receded, we would definitely
be able to revive these businesses, based on our
experience of overcoming frequent difficulties in the past,
such as the Global Financial Crisis of 2008 and the Great
East Japan Earthquake. At the same time, I have been
reminded of the strength of our group capabilities by thecooperation and support between our sites around theworld and other factors. On the other hand, it is also truethat various issues have come to the surface. Looking
ahead, we aim to build a stronger supply chain by solving
various issues, while taking into our consideration our
experience during the COVID-19 pandemic.
Going forward, it is expected that the COVID-19
pandemic will begin to recede as progress is made on
vaccinations. However, it is important that we do notallow ourselves to be satisfied with that alone, and instead
analyze the impact and issues caused by thesecircumstances in a level-headed manner. As we do so,
we intend to use these circumstances as a benchmark
for forecasting the impact of risks based on, e.g.,
infectious diseases similar to COVID-19 and other factors
related to climate change, geopolitics, etc., while also
analyzing our potential responses to these risks.

We will steadily enhance our businessfoundations at different sites around the world
as we target medium- to long-term growth
In terms of business performance in FY2020 and theresults of our medium-term business plan, I would like toapologize sincerely for the fact that we were unable tomeet shareholders’ expectations with regard to either net
sales or profit. In particular, regarding businessperformance in FY2020, we recorded losses in thesecond quarter as a result of the COVID-19 pandemic.
Although performance recovered rapidly from thesecond half onward, it made me aware of the importanceof further enhancing our resistance to adverse
circumstances. On this point, we have been developing
business opportunities in the medical sector as a new

portfolio business, in addition to our existing businesssectors. On the other hand, we have also established aservice business in Singapore centered on utilizing theInternet of Things (IoT) for social infrastructure. Looking
ahead, we intend to build a portfolio of businesses that is
highly resistant to risks such as the current COVID-19
pandemic by strengthening our businesses in new
segments.
Additionally, in our medium-term business plan, while
we were unable to achieve our numerical targets, weachieved results from the perspective of enhancing ourbusiness foundations for medium- to long-term growth.
For example, we have continuously made priorinvestments in Mexico and Hungary over the past several
years in anticipation of demand in the automobile industry.
During this period, we have overcome numerous difficult
issues, namely the enhancement of manufacturing
facilities in an unfamiliar region and the training of humanresources. I am sure that investors have concerns about
when our investments in these regions will turn profitable,
but I am very hopeful that these businesses will be able tocontribute to results from FY2021 onward, as we are
expecting significant growth in orders received.
Furthermore, we are the only company with a large-scale
production system for automotive EMS in both Mexicoand Hungary. As such, I believe we are in a very strong
competitive position compared with our industry peers. In
future, we will ensure that we fulfill shareholders’expectations by improving our business performance.

We will work to ensure that we capture
demand with a strong response to
CASE in the automobile industry
Turning to the market environment in FY2021, the COVID-19
pandemic and semiconductor shortages affected production
at automobile manufacturers. The company is continuing tostrengthen its initiatives at sites around the world, under ourpolicy of never halting our customers’ operations.
At the same time, we are also advancing our initiatives
in response to CASE, the move toward electric vehicles,
self-driving cars, etc., at a rapid pace. Based on theassumption that 2025 will mark a turning point for the
spread of electric vehicles, automobile manufacturers
have launched initiatives in this area, and the company has
also created a complete system for related manufacturing.
In the automobile industry in general, orders generally
have a timeline of three years, and as such, the company
is now responding to demand related to models set to bereleased in 2023. From 2022 onward, demand related toelectric vehicles is expected to increase rapidly, and we
intend to ensure we capture this demand.

18

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Value Creation Story of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Message from the President

Additionally, in our new medium-term business plan,board mounting, in addition to existing solder-based

future changes in the times. A good example is provided

we have also set forth our target of “winning trust with thetechnologies, we are also developing new technologies

by CASE-related trends in the automobile industry, an

Additionally, in terms of “governance,” we will further

world’s number one quality and service.” This is based on

through joint initiatives with our top shareholder, Sakata

area where initiatives are currently accelerating. Looking

promote initiatives aimed at stimulating discussion at

the belief that establishing a leading position in terms of

Inx Corporation, and partner companies. In ourahead, I believe it is important that we maintain a keenmeetings of the board of directors and strengthening thequality will result in more orders received.

development with Sakata Inx Corporation, we are at theawareness of changes in the times, which will contributefunctions of external directors, two areas about which

Chairman Murai has said many times that “we always

stage where we are pursuing possibilities for revolutionary

to sustainable growth over the medium- to long-term.

we receive many questions from investors. Currently, we

go forward in the middle of the fairway.” Accordingly, in

new printed electronics through the development ofAmid such changes, as interest increases toward

hold active discussions at meetings of the board of

the company’s EMS, we “target the center inelectronic chemical materials. Specifically, we are utilizing

management and investment from an ESG (Environment,

directors, based on the knowledge held by eachmanufacturing.” This means we target the “center” of thea groundbreaking new manufacturing process called IHSociety, and Governance) perspective, we are focusing

director, including external directors. Resolutions do notrange of permissible errors, without compromising on

reflow technology, owned by Wonder Future Corporation,

on shifts in energy policies aimed at achieving aoverly reflect the intentions of the Chairman or President,

quality management. Through such means, we pursue

a startup that Sakata Inx Corporation has invested in.

decarbonized society. Lowering greenhouse gas (GHG)

and instead each board member’s opinion is respected.

manufacturing with the minimum possible irregularities.

Using this technology, we aim to commercialize mounting

emissions means increasing electric power usage by a

In fact, proposals for investments and M&A may be

Naturally, our strengths are not limited to quality, and wetechnologies for mounting circuit boards on PET films,

corresponding amount. This also means an increase inrejected after deliberation. On this point, I believe theenjoy competitive superiority in relation to all aspects ofresin molded products, fabric, paper, and other low heat-

demand for electronic devices and other devices andboard of directors exhibits the spirit of Chairman Murai’s

Quality, Cost, and Delivery (QCD), such as offering a quick

resistant base materials, mounting on glass, ceramics,

machines that use electricity, which will result inmotto, “we always go forward in the middle of the

response tailored to customers’ demands, ensuring thatand other high heat-dissipating base materials, andincreased sales of electronic components and further

fairway.”

we meet deadlines without fail, and demonstrating cost

mounting on batteries, connectors, and other low heat-increases in demand in the EMS business. I believe that,

Finally, in FY2021, our businesses may still be affectedcompetitiveness. In 2019, the company became a strategic

resistant components. We are working with customers to

as a company, our core business strategy going forward

by the COVID-19 pandemic. However, the company will

global supplier of Robert Bosch GmbH, the world’s largest

create prototypes and assess the reliability of thiswill be to actively focus on sectors where electric power

pursue the steady execution of our medium-term

global Tier 1 car manufacturers (primary suppliers). As

technology in each of the above cases. It is likely that it

consumption is high, based on the major trend toward abusiness plan and advance toward the achievement oforders received steadily increase, I believe that our efforts

will require several years until we can mass produce

decarbonized society.

our targets, without being swayed by thesein all aspects of QCD are rated highly by our customers.

products utilizing this technology, but there is a significant

While decarbonization will result in new businesscircumstances. Additionally, over the medium- to long-

Furthermore, our customers also have strong demands

possibility that it will become a new mass production

opportunities, it also presents issues for the company. In

term, we will endeavor day by day to move with therelated to improving quality and productivity, and as such,technology for mounting electronic circuit boards, and weparticular, reflow furnaces, which we use for mounting

times, while also listening earnestly to the issues faced

we intend to promote automation and unattended

are making steady progress toward commercializing thiselectronic circuit boards, require large amounts of heatby our customers and offering solutions. Through suchprocesses at EMS production factories. We are generating

technology.

to melt solder. Therefore, we are introducing furnaces

means, we will create new business opportunities, which

be assured of achieving results.

results from such initiatives, having already established fully

Furthermore, in addition to electronic circuit board

designed to save energy, and have begun using

we intend to utilize for the next stage of growth. Failure

automated production lines at some sites in China. In

mounting, we are increasingly focusing on Joint Design

renewable energy, mainly from solar power generation

is an inevitable risk of taking on new challenges.

future, we will work to establish the use of automation

Manufacturing (JDM), an upstream manufacturing process,systems. We also intend to analyze opportunities to

However, we must continuously create new chances intechnology while also promoting its global deployment.

as we look to expand the scope of our business domains.

reduce energy consumption by making soldering

line with our ambitious corporate culture, without fear of

In the JDM business, we work with various partners aroundprocesses more efficient.

failure. We must also be prepared to exert our maximum

Looking toward times ahead while
accelerating technical innovation in
manufacturing

the world to offer the optimal resources and services, while

Furthermore, the company has also establishedefforts to create business foundations able to meet thealso mounting circuit boards. We have already received

targets for mounting a response by 2023 to SCOPE3, a

expectations of investors over the long term. I therefore

many inquiries from within Japan and overseas, and haveglobal standard for calculating and reporting GHG

earnestly ask for your continued support in future.

created products using a JDM framework.

emissions across the supply chain.

For example, in the field of edge computing for facial

In terms of “society” as an aspect of ESG-oriented

As CASE-related trends accelerate in the automobile

recognition devices, we have created a business systemmanagement, I believe that it is particularly important

industry toward 2030, resulting in further increases inbased on JDM through collaboration with the company’sthat we strengthen our foundations with regard to

demand for electronic components and circuit boards,

technology partners, whereby they design products andhuman resources that will promote future sustainable

the company will further increase its production lines to athe company produces them as an OEM. Going forward,

growth. In that regard, we have trained many superior

total of 300 across the SIIX Group with a total amount of

we intend to actively engage in the full range ofhuman resources who are now active at our sites aroundapproximately 30.0 billion yen in capital investments. For

operations, from proposals of optical components,

the world. At our sites in the U.S., Slovakia, China,

the time being, the expansion of the automotive EMS

sensors, telecommunications components, etc., throughIndonesia, and the Philippines, local staff serve as thebusiness will be a priority issue, but circuit board

to mounting.

top management at our local subsidiaries. Looking
ahead, specially selected personnel from different Group

mounting, an area where the company is particularly
strong, will be essential in numerous future growth
sectors, including medical devices, the IoT, and robotics.
Additionally, the company is also focusing on the battery
sector, a key technology for the society of tomorrow, andWe will focus on implementing the
medium-term business plan without fail,and advance toward achieving our targets.

companies will be assigned to operations within SIIX
itself, and our eventual aim is to develop humanresources that will take on operations as members of
the officer class. Our basic policy for strengthening thehuman resources foundations of the company is to hire,

aims to expand its businesses in this area.
I also believe that the pursuit of new elemental

From our founding to the present day, the company has

develop, and utilize human resources, which will require

technologies is important in manufacturing. In circuit

capitalized on growth opportunities while anticipatingtime, but I believe this personnel strategy means we can

20

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Value Creation Story of SIIX

Philosophy of SIIX

Review of the Results of the Previous Medium-Term Business Plan (2018 - 2020)

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Medium-Term Business Plan (2021- 2023)

Business performance trends from 2018 to 2020

FLEXIBLE TO CHANGE■ Net sales (million yen) ● Operating income (million yen)

300,000

12,000250,000

242,804

200,000

8,625

Business performance fell far short of performance targets forthe final year, which were consolidated net sales of 300.0 billion
yen and consolidated operating income of 14.0 billion yen.

10,000223,037
181,598

150,000

8,000

Main reasons for the shortfall

6,000

2018 Cost increase due to the response to the rapid growthin demand at the Mexico base

5,506
100,0002019 Temporary increase in tariffs due to US-China trade
friction, the transfer of production sites to avoid tariffs,
and the economic recession in China

4,000

4,452

50,000

2,000

0

2018

2019

2020 Lower utilization ratio and decline in global demand
due to COVID-19

0

2020

Winning trust with the world’s number one quality and service

Performance targets
Performance targets for the final year of 2023
Consolidated net sales

300,000

250.0billion yen■ Net sales (million yen)

Consolidated operating income

Exchange rate

10.5billion yen

USD: 103 yen(Operating income margin 4.2%)●Operating income (million yen)

Consolidated
operating income

12,00010,500 million yen
250,000

Review

Four Themes

10,000
8,625

5,506

150,000
100,000

0

Consolidated
net sales

209,755

235,035

212,768

233,153

242,804

223,037

181,598

2014

2015

2016

2017

2018

2019

2020

1

Strengthening
manufacturing
capability

We established a manufacturing platform for consolidating knowledge and rolled it out across the Group.
● We built and began operating SMAPS, a cloud database for manufacturing, technical, and quality information.

●

●

●

●

Strengtheningorganizational
capability

ESG ⇒ Although we did not reach the target, we will continue to set this as a long-term goal.
(S) Ratio of local employees in management positions 80％ (Target) ⇒ 78.9％
Ratio of women in management positions
50％ (Target) ⇒ 31.1％

Expansion of transactions
with major global companies

Expansion of non-Japanese ratio
Ensuring identical quality worldwide
and strengthening BCP response● Cultivating customers in the medical field

We strengthened quality and trained QCD technical experts.
● We achieved an improvement of approximately 25% in quality, and developed local human resources to the level where
they could educate other sites.

2

Contribution to a decarbonizedsociety through businesses

Expansion of the CASE-related business
Expansion of business in the industrial
equipment sector such as IoT, laborsaving, and energy saving

KPI

Non-Japanese ratio
25%● Strengthening allianceswith technology partners Net sales 5.0 billion yen● Medical device field
Net sales 5.0 billion yen●

Numerical Targets

Results for 2020

100 companies

104 companies

Ratio of sales to non-Japanese customers

20％

13.6%

Ratio of sales to non-commodity sector*

80％

73.2%

85%
Non-commodity ratio
35.0 billion yen
CASE-related● Battery-related
10.0 billion yen●●

Non-commodity ratio■ Automotive equipment ■ Industrial equipment ■ Electric home appliance ■ Information devices■ General electronics, machines, others (Billion yen)
300.0
5.7 (2.3%)
15.0 (6.0%)
16.9 (6.8%)

250.0

Cumulative total of CAPEX and profit of each segment in the previous medium-term business plan period (2018 - 2020)

200.0

Regional Segment

Japan

China

ASEAN

EuropeAmericas

Total

CAPEX

1,713

6,085

9,538

2,220

5,991

25,547150.0

Segment profit (loss)

1,823

7,314

9,751

(555)

(308)

18,025100.0
50.0

The Europe segment and the Americas segment are both expected to return to profitability in 2021.

2,000

2023

0.0

9.5 (5.2%)
16.3 (9.0%)
22.9 (12.6%)

Promotion of diversity
management

3

Improving the ratio of local
employees in management positions● Improving the ratio of women in
management positions●

KPI* Non-commodity sector: Automotive equipment and industrial equipment sectors

KPI Details

2021

KPI

Strengthening the ability to provide new fields andnew products by leveraging the existing network

Number of new customers acquired

210,000 250,000 million yen

4,000

Three goals and KPIs of the medium-term business plan

Strengthening manufacturing technological capabilities in response to multiple processes● We introduced fully automated assembly lines and established SIIX’s first mass production line for battery packs.

KPIs for achieving the medium-term business plan

6,000
4,452

50,000Rechargeable battery business and molding business● Although we moved forward with initiatives related to the rechargeable batteries for power tools business, and increased
the number of sites with molding business capabilities, we did not achieve stable income in the Philippines.

8,000

6,800

6,233

For non-Japanese customers (ratio of sales to non-Japanese customers)● The share of consolidated net sales rose from approximately 9% to approximately 14%. We succeeded in opening
many customer accounts, but did not achieve our target of 20%.

Strengthening
responsiveness

9,705

9,134

200,000

Responding to diversification in our business sectors (creating the next pillar for automotive equipment)● In automotive equipment, we were able to respond to our clients’ various needs related to digitalization.
● In the industrial equipment sector we also responded to digitalization through power tool applications, etc., but net sales
in the medical care and nursing devices sector amounted to just 2.0 billion yen.

Strengthening
profitability

8,913

181.5

250.0

35.3 (14.1%)

34.5 (19.0%)

Non-commodity field

177.1 (70.8%)

85%98.4 (54.2%)

2020

2023

Ratio of local employees inmanagement positions
80%● Ratio of women in
management positions
50%
●

0

22

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Value Creation Story of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Message from the Chief Accounting Officer

As sales increase, we will work to enhance profitability bythrough optimizing inventories, etc.

endeavoring to cut costs& Executive Officer
Seiji Ono Director
General Manager, Finance & Accounting Department

Reduced inventories, an issue for thecompany, to a level close to our target
In FY2020, the spread of COVID-19 significantly impacted
our businesses through the first and second quarters. In
response, we implemented initiatives aimed atstrengthening our financial structure, which we had
previously been implementing continuously, and rapidly
moved to secure further liquidity to prepare for unforeseen
events. Specifically, we endeavored to maintain financial
soundness by ensuring that we could respond flexibly
with the formation of a syndicated loan, the creation of afactoring limit in the U.S., and other methods.
On the other hand, inventories temporarily increased asa result of suspension of operations at customers’
factories caused by COVID-19. Since it has been one ofour management issues to reduce inventories, we havebeen implementing initiatives aimed at streamlining
inventories even before the COVID-19 pandemic. We now
strengthened these initiatives in view of the circumstances.
In some business sectors, we endeavored to cut inventories
by adopting the consignment inventory method withcertain suppliers, meaning we only received the amountof supplies we needed. On the other hand, in theautomotive sector, we endeavored to maintain safe levels
of inventories in order to prevent shortages. As a result ofsuch initiatives, I believe we succeeded in our efforts to
reduce inventories to a level close to our target in FY2020.
Furthermore, going into FY2021, the issue ofsemiconductor shortages in the automotive sector has
become more apparent. In this regard, we areendeavoring to maintain safe levels of inventories from theperspective of preventing any suspension of ourcustomers’ production lines.

Moving toward the time forrecovering investments in sites thatreceived prior investment
Regarding the status of our investment plans, we havecontinuously made prior investments in areas such as
Mexico, Hungary, and Hubei Province, China, as part ofour aim to expand our business in the automotive sector.
In the automobile industry, there is a tendency for fixed
costs such as depreciation from prior capital investment

to significantly impact business results, because many
years are required to go from prototyping stage to mass
production. However, from FY2021 onward, we plan toabsorb prior fixed costs and enter a phase of investment
recovery, as we begin full-fledged mass production at
various projects. Furthermore, while we made capital
investments of 7.5 billion yen and 9.0 billion yen in
FY2018 and FY2019, respectively, in FY2020 we revised
our plans based on an expected fall in demand due to
COVID-19, and only invested 5.5 billion yen.
In terms of future capital investments, the acquisition ofland, structures, etc., and other prior investments arecompleted at multiple sites around the world. Accordingly,
investment will be centered on the renewal of machinery.
In FY2021, we expect capital investments to amount toapproximately 8.0 billion yen, on par with an average year.
Looking at the previous medium-term business planfrom a financial perspective, we faced the issue of costs
associated with the transfer of manufacturing from sites in
China to those in ASEAN countries such as Thailand andthe Philippines, as a result of issues related to trade
friction between the US and China in 2019.
Additionally, we have conventionally procured electronic
components in Japan and transported them to sites indifferent countries, but we have been switching to local
procurement of generic parts as necessary. Furthermore, we
also succeeded in achieving a better working capitalsituation by utilizing the consignment inventory method to
reduce inventories. We have also utilized the consignment
inventory method in Singapore to increase inventory turnoverby paying only for components used. In future, we plan to
deploy the consignment inventory method on a global basis.

Toward achieving our publicly
announced forecasts for businessperformance in FY2021
In FY2021, we forecast strong business performance aselectrification and automation in the automotive sector
have advanced faster than we expected, providing a
tailwind for the company. At present, we do not expect
any significant risks in terms of interest rates and foreignexchange rates. Additionally, although the semiconductor
shortage is likely to affect performance in the first half ofthe fiscal year, we think the situation will improve from thesecond half onward.

Regarding the sites where we have made priorinvestments, mass production has expanded in Mexico,
and we aim to return to profitability during FY2021 thanks
to the expansion of. Additionally, despite the lingering
impact of the COVID-19 pandemic, we are making steadyprogress toward achieving profitability at our European sites
such as Slovakia and Hungary. Based on these factors, weare making steady progress toward achieving our publicly
announced forecasts for business results in FY2021.
We will continue our efforts to reduce inventories, oneof the issues highlighted in the new medium-term businessplan, by utilizing the consignment inventory method, as
described above. On the other hand, in terms of working
capital, we will continue taking steps to maintain andstrengthen systems for ensuring that we have the capacity
to appropriately raise any required funds, by forming a
syndicated loan and utilizing our factoring limit.
In order to enhance profitability, we plan to increase theproportion of the non-commodity sector, combining theautomotive sector and industrial equipment sector, to
85% by 2023. Additionally, we also plan to limit
expenditure by investing in core systems and cutting
logistics costs, and we are therefore targeting an
operating income margin of 4.2% by FY2023, the final
year of the medium-term business plan.
On the other hand, as described, capital investments
responding to customers’ demands for fully automatedproduction lines is trending upward, but we expect that
this will contribute positively toward business results overthe medium term as labor saving at production sites willcontribute to limiting personnel expenses.
In addition, investments aimed at decarbonization will
be particularly important as the company’s ESG-oriented
management initiatives accelerate. We are alreadyoperating a solar power generation facility at our factoryin Shanghai, China. In future, we plan to introduce similar
facilities in Mexico, Indonesia, Thailand, etc. At the sametime, when expanding production lines, we will alsoendeavor to reduce electric power usage by introducing
power-saving facilities.

Steady progress on enhancing
investment efficiency and reducing costs
The key to future financial risks will be when the
COVID-19 pandemic is contained. In the event that the
pandemic is prolonged because of the impact of mutatedstrains, there may be a negative impact on the future
value of assets held by prior investments. There may be arisk of impairment in such cases. From a financial
perspective, we will cautiously identify any such risks,
while continuing to improve asset efficiency. Furthermore,
we will also endeavor to improve cash flows and enhance
the Cash Conversion Cycle (CCC).
As described above, demand for electronic circuitboard mounting is rapidly increasing amid electrification
and automation in the automotive sector and theindustrial sector. The company will take steps to ensurethat we capture demand and increase sales.
On the other hand, we will work to enhance investment
efficiency in capital investments, while also endeavoring
to cut costs by steadily focusing on financial issues suchas optimizing inventories and reducing interest-bearing
debt. In this way, we will fulfill stakeholders’ expectations
by achieving an enhancement in business performance. I
therefore look forward to your continued support in future.

24

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Business Overview of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Business Overview of SIIX
Machines, others, general electronics

9,457 million yen 5.2%

29th term December 2020

Information devices

16,318 million yen 9.0%

Net sales

Automotive equipment

98,359 million yen 54.2%

181,598 million yen

Electric home appliances

Composition of sales

22,930 million yen 12.6%

Net sales

181,598

Operating income

4,452 million yen

million yen

Industrial equipment

34,533 million yen 19.0%

Profit attributable to owners of parent

1,724 million yen
Overview
Demand slowed in each of ourbusiness sectors and businessperformance was significantly affectedby the COVID-19 pandemic, which
spread to various locations aroundthe world starting from the beginningof the year. Some economies,
centered on China, began to show
signs of improvement from April
onward, while Japan, the ASEAN
region, Europe, and the Americas
all began trending toward recovery
from the second half of the fiscal
year. Despite some contribution fromcar multimedia and the establishmentof new projects for the Singapore
government, industrial devices suchas aircraft-borne AV devices, home
appliance devices, etc., remained
weak. As a result, consolidated net
sales amounted to 181.5 billion
yen, a year-on-year decrease of
41.4 billion yen, while consolidated
operating income amounted to 4.4
billion yen, a year-on-year decreaseof 1.0 billion yen.

Automotive equipment

Issues and countermeasures
We trade with customers in avariety of business sectors in eacharea around the world. Customers
trading in multiple areas at thesame time are also increasing, andproducts and services provided
are required to have the same
quality even if the area or factory isdifferent. We will support the global
development needs of our customers
promptly and precisely by making
use of cloud services to shareproduction know-how and quality
information, etc. in real time within
the SIIX Group.
As a KPI in the medium-termbusiness plan, the expansion ofsales to non-Japanese customers
is one of our themes. We will
endeavor to expand our businessfrom customers based on ourabundant capacity at global sites
and our local response capabilities.
In terms of business sectors,
we will focus mainly on actively
expanding the medicinal device

sector, while tackling the developmento f n e w p ro d u c t s a n d t h eenhancement of mounting quality
as future issues. Additionally, we
will also aim not only to expand
the EMS business, our current
mainstay business, but also leverage
our functions as a trading company
and collaborate with our technology
partners to deliver products tolocations around the world.
We will also actively expand ourparticipation in businesses in thefields of automation, labor-saving,
IoT, and CASE, based on theperspective of contributing todecarbonized society through ourbusinesses.

Automotive electronic components (automotive

Although results benefited from the car multimedia EMS business for aexteriors, meters, ECU, switches, submillimeter

major Tier 1 car manufacturers with which we started trading in FY2020,

wave radars, ABS, cameras, battery sensors,

demand fell across most existing businesses because of the COVID-19etc.), car multimedia, etc.

pandemic. As a result, overall sales of automotive equipment decreased by
12.1 billion yen to 98.3 billion yen compared to the previous fiscal year.

Industrial equipment

Although we concluded new business negotiations with theEngine ignition device for power tools, battery

Singapore government, performance in the trading business forpacks, aircraft-borne electronic devices, inverters,

aircraft-borne AV devices remained sluggish owing to the impact

medical devices, smart meters, industrialof the COVID-19 pandemic. As a result of such factors, overall

sewing machines, etc.

sales of industrial equipment decreased by 3.6 billion yen to 34.5
billion yen compared to the previous fiscal year.

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Business Overview of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

New initiatives with Sakata Inx Corporation

Electric home
appliances

Collaboration with Sakata Inx Corporation and Wonder Future Corporation
Digitalsignagedisplay

Digital appliances, air conditioners, refrigerators,

As in automotive equipment, demand in many existing businesses

educational toys, fitness equipment, electronic

was sluggish owing to the impact of the COVID-19 pandemic. As a

musical instruments, etc.

result, overall sales of electric home appliances decreased by 13.3

Sakata Inx Corporation

SIIX Corporation

Development of power distribution
materials and joining materials

Development, manufacturing, andsales of mass production technology

IoT sensor
5G antenna
Connected Car
Resin weight
reduction

billion yen to 22.9 billion yen compared to the previous fiscal year.

Miniaturization and weight
reduction of products

Information devices

The use of IH reflow technology andconductive inks makes it possible tomount electronic components on low
heat resistance base materials such as
paper and cloth, as well as on high heatdissipation base materials such as glass,and is expected to be applied in avariety of fields.

Wonder Future
Corporation
Damage-free component
mounting using IH reflow
technology

Although the company established a new model for office equipment
Office equipment, OA equipment,
projectors, etc.

in the second half of the year, shipments under the existing model
were sluggish. As a result, overall sales of information devices
decreased by 6.0 billion yen to 16.3 billion yen compared to theprevious fiscal year.

and other electronic components, etc.

Materials for printed
electronics

Mounting on low heat resistancebase materials

Mounting on high heatdissipation base materials

Conclusion of business negotiations with the Singapore government

Machines, others,
general electronics

Automobile wire harness, motorcycles, ink,

Establishing mass production technologies by incorporating new technologies
into high reliability production technologies

Contracted development and manufacturing of COVID-19 tracking tokens
A consortium consisting of the company and its technology partner iWOW Technology Pte Ltd. (hereinafter “iWOW”) won a contractfrom the Singapore government for the development and manufacturing of “Trace Together,” a tracking token aimed at preventing
the spread of COVID-19. In the event that a person is confirmed to be infected, this device tracks the person’s past movements andspecifies and identifies people who have had close contact with the individual. The company utilized IoT-related technology held by
iWOW, our technology partner, to win the contract following business negotiations with the Singapore government.
Shipments of wire harnesses and motorcycles have decreased,

Contracted development and manufacturing of emergency call systems to be installed in public housing for the elderly

and the trading business for general electronic components was

A consortium consisting of the company and its technology partner iWOW won a contract from the Singapore government forthe development and manufacturing of a wireless alert system to be installed in public housing for the elderly. The device isinstalled in senior residences, and it has a system for sending emergency notifications to senior activity centers. Conventional
wired systems entailed costs and time for installation, but these issues have been resolved with the shift to a wireless system.
We also added features for wireless communication and audio recording.

sluggish. As a result, overall sales decreased by 3.6 billion yen to
9.4 billion yen compared to the previous fiscal year.

*The difference in net sales with the previous year excludes the effect of foreign exchange rates.

28

ESG of SIIX

Philosophy of SIIX

Corporate Governance

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Introduction of Directors

We believe that our directors need to possess knowledge and experience on a global basis to conduct diverse
businesses in various countries around the world, and we ensure that a sufficient balance of the knowledge andexperience required is reflected in the composition of our board of directors. Specifically, besides experience
related to corporate management, directors having practical skills in sales strategy, manufacturing knowledge,high level of awareness of compliance issues, knowledge of financial strategy and capital policies, etc. arenominated. External directors are nominated mainly for the purpose of strengthening financial and capital policies,
M&A, and compliance. Regarding the size of the board of directors, we believe this is the minimum level required
to achieve such an objective.

5

4

3

1

2 President

3 Director &Executive Officer

Seiji Ono

Appointment& Dismissal〈Nominating & Compensation
Advisory Committee〉〈Management Committee〉

Audit〈the Board of
Directors〉

Audit & Supervisory
Board Member

ReportSusumu Omori

Executive Officer

6 External Director

Shinsuke Takatani
8 External Director

Nao Yoshizawa

Cooperation

Directors’ skill matrix
Director

Cooperation

Chairman

Audit

President

Corporate
management,
management
strategy

Salesstrategy

Finance,
capitalpolicyM&A

Manufacturing

Compliance,internal
control●

Shiro Murai

●

●

●

●

Koji Yanase

●

●

●

●

Globalexperience●●

Seiji Ono

●

●

●

●

●

Toru Maruyama

●

●

●

●

●

Tatsuo Fujita●〈Executive Officer
Committee〉

Shinsuke Takatani●

Susumu Omori●〈GENPO Meeting〉

Nao Yoshizawa●

ReportInternal Audit Office
ReportGuidance &Supervision

4 Director &Areas in which the company has particular expectations for directors

Guidance &Supervision〈Environmental Management
Committee〉

7 External Director

Consultation
Appointment& Dismissal〈Compliance Committee〉

Tatsuo Fujita

Appointment& Dismissal〈Audit & Supervisory Board〉

Consultation
ReportExecutive Officer

Appointment& Dismissal

Koji Yanase

Toru Maruyama

5 Director &Annual General Shareholders’ Meeting82

1 Chairman

Corporate governance system

76

Shiro Murai

Auditor29

Direction

Cooperation

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

* The above table does not show all of the knowledge and experience that the Directors have.

Executive Officer
Direction

Departments &Subsidiaries

Audit

Basic policy of corporate governance Management and execution system
The company has developed the SIIX Principles as its
corporate philosophy for the conduct of corporate activitiesby all its officers and employees, and also established the SIIX
Group Code of Conduct based on this. Based on the principleof being “fair” under the SIIX Principles, we are aware thatstrengthening corporate governance to govern our corporate
activities is an important management duty, and so we work
to build and establish an appropriate and effective corporate
governance system for this purpose.
Being a company with audit & supervisory board members,
SIIX has built a system to monitor and supervise the businessfrom an objective and neutral position by nominating two
external audit & supervisory board members besides
the internal audit & supervisory board members in thecomposition of the Audit & Supervisory Board. The Boardof Directors is composed of eight directors. Three out of theeight directors are external directors and monthly meetings
are conducted with the three audit & supervisory board
members (out of which two are external audit & supervisoryboard members). During the meetings, issues on humanresources, investments, capital policies, budgeting andplanning, etc. that are important for management purposes
are deliberated and resolutions are adopted from theperspective of improving corporate value and managing risk.
Based on the standards for independence of independent
directors/auditors as stipulated by Tokyo Stock Exchange,
Inc., we have designated all external directors and audit &supervisory board members who fulfill the qualifications of an
independent director/auditor as independent directors andaudit & supervisory board members.

Nomination of directors andremuneration of officers
Eight directors having expertise and experience in the various
fields have been appointed for the purpose of raising thediversity of the directors, improving decision making based on
more thorough discussions, further growing the company andstrengthening the management system. Three out of the eight
directors are external directors.
For the purpose of improving the transparency of thedecision-making process with regard to the nomination
and remuneration of the directors, we have establishedthe Nomination and Remuneration Advisory Committee todeliberate on the nomination and remuneration of the directors.
The said committee is composed of three or more members
nominated by the Board of Directors, with the majority ofthem being independent external directors to ensure its
independence as an advisory body to the Board of Directors.

Assessment of the effectiveness of theBoard of Directors
Once a year, the company conducts a survey on thecomposition, functions and deliberation materials of theBoard of Directors as well as an extensive range of themes,

analyzing and evaluating their effectiveness and reporting asummary of the results to the Board of Directors. Views are
expressed on a variety of themes, so we will make use of
these views as a guide in improving management in future.
A summary of the survey results is given in the corporate
governance report.

Audit system
The Audit & Supervisory Board is composed of three audit& supervisory board members including two external audit &supervisory board members, and meetings are held once amonth as a general rule. In addition to attending the Boardof Directors meeting and other important meetings, audit &supervisory board members play a role in auditing management
by hearing reports from the directors and employees, viewing
important documents, and examining the work and financial
situation of the subsidiaries, etc. The three external directors
and one of the external audit & supervisory board members
have been designated as independent directors/auditors basedon the rules of Tokyo Stock Exchange, Inc.
In addition, meetings with external directors are held
regularly, and their opinions from an objective and neutral
position are reflected in the management.

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Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Corporate Governance Message from External Director

I have high expectations for further progress as SIIX
strives to achieve both social and economic value as a
global business organizer.
Nao Yoshizawa External Director
I will utilize my professional expertisein corporate legal affairs, M&A, etc.,
at Board of Directors meetings.

I think it is important to further conduct
a careful examination of the impact ofeach proposal on our supply chain.

I am Nao Yoshizawa, an attorney and patent attorney. I
was appointed External Director of SIIX Corporation via aresolution at the Annual General Shareholder’s Meeting. I
have served as an External Audit & Supervisory Board
Member since July 2020, and have attended the Board of
Directors meetings eight times to express my views oneach proposal while performing audits. Based on myexperience, I will further contribute to strengthening
corporate governance in SIIX as an External Director.
Throughout my career, I have executed my duties as
an attorney mainly in corporate legal affairs and M&A. I
also have a strong background in areas, including medicalcare, health care business, and data science. On that
account, I believe that I can contribute to the creation of
new businesses for SIIX. In addition to the positions ofExternal Director and External Audit & Supervisory Board
Member at several companies, I was appointed Advisory
Committee Member of “Bio-Strategy,” an advisory council
to promote the strengthening of innovation policy in the
Cabinet Secretariat, and have worked actively both inJapan and overseas. In future, I will focus my efforts oncontributing to the sustainable growth of SIIX that hascontinued to develop as a “global business organizer,”
based on my professional knowledge acquired over theyears.

In terms of the state of corporate governance in SIIX,
judged from my experience of attending the Board of
Directors meetings as an External Audit & Supervisory
Board Member, I think what is commendable is the factthat sufficient materials for each proposal have been
submitted to the Board of Directors since 2020. When
external directors fulfill their responsibility of invigorating
the Board of Directors and strengthening governance, thefirst thing they need is accurate information. In addition, it
is essential to communicate closely with employees who
execute business on site. I think it is favorable thatnecessary information is followed up by not only the
Board of Directors but also the sites as needed. I believethat further refinement of these efforts will lead to thestrengthening of our governance.
Furthermore, what impressed me when I attended theBoard of Directors meetings was that candid opinions
were expressed in in-depth discussions by all of thedirectors regardless of whether they are internal or external.
I would like to take the same attitude in the meetings andmake every effort to further invigorate the Board of Directors.
On the other hand, when it comes to issues ofcorporate governance, I recognize the importance ofcarefully examining how proposals presented at the Boardof Directors meetings could have an impact on the SIIX
group, as organizations in the entire group have been on
an expansion trend on a worldwide scale. If I point out
something strict, I’m concerned that presentation of
proposals could turn into just a routine work due to busy
day-to-day operations. While the company’s function as a“global business organizer” is its advantage and strength,
it is essential to carefully consider how one proposal could
affect our worldwide supply chain. In that sense, I think thatthe directors and the employees who execute business onsite need to have discussions more closely to exchange theirviews, with an eye toward the future of the SIIX Group.
Regarding business risks for the company, while I havehigh expectations for the growth of the company as a“global business organizer,” we should pay attention torecent international situations showing that geopoliticalrisks such as trade issues have increased. However,
because risks are closely related to opportunities, weneed to build a balanced relationship with other countries

according to each country’s situation without taking one
side or another in the case of trade friction. In future, I would
like to share my knowledge as an expert regarding this point.

We need to deepen our discussions
on a new market that lies beyond
automotive EMS.
Looking at the advantages and strengths of SIIX from aviewpoint of intellectual property, one of my areas ofexpertise, I am attracted by the fact that the company’s
customers are global companies that own many excellent
patents. Focusing on customers’ patent strategies andexpanding business in line with those strategies will leadto sustainable growth of SIIX. Smart cities evolved from
IoT are good examples.
When we think about the growing automotive EMS
area, we should not stick to fixed ideas of conventional
automobiles, but should have a broader point of view sothat we can consider it as the creation of a new social
infrastructure called a smart city. In other words, it isessential for us to discuss a new market that lies beyond
the automotive EMS market. In terms of implementing the
new medium-term business plan, we are also required to
not only achieve the goals by the end of the period of theplan but also take initiatives looking ahead to future
growth after the end of the plan.
At the same time, since plans don’t always go assmoothly as expected, we need to strengthen monitoring
systems for the plan and develop another backup plan incase of any deviations from the original one. In thisregard, I think we should consider strengthening thefunctions of the corporate planning division.

We are facing an era requiring
management strategies that have an
insight into the essence of ESG and SDGs.
In order to achieve sustainable growth from a mid-to-longterm outlook, it is essential to reinforce ESG management
and contribute to SDGs. In Japan, initiatives for ESG and
SDGs are still often considered from a context of social
contributions. However, what is important is to establish avalue chain framework as part of our management
strategy. For this purpose, I believe that we need to havediscussions to grasp the essence of ESG and SDGs.
The trends toward establishment of smart cities need
to be considered from the perspective of creating boththe social value of contributing to a decarbonized society
and the economic value of infrastructure investment inglobal companies. Especially in the case of SIIX, I think
the company will have more and more opportunities toachieve sustainable growth together with its customers
by accelerating its efforts to correspond to global
customers’ management strategies. In any case, seeing
through the essence of ESG and SDGs and reading
trends toward social change properly will become more
important in the decision-making process in the future. I
intend to make use of my knowledge gained through myexperience in Japan and overseas in the growth of SIIX.
Lastly, as a future issue related to ESG management, I
would like to refer to the reinforcement of the humanresource foundation based on diversity. As described in
the “Corporate Governance Report,” I believe that further
promotion of women in management positions and local
management personnel should be considered. Even on
this issue, we also need to capture the essence ofdiversity in our judgment. Needless to say, we should not
address diversity superficially, but should use it from theperspective of appointing human resources who candevelop and execute strategies after figuring out
requirements necessary for the growth of SIIX.
Now, SIIX is moving forward powerfully toward new
business stages, including the automotive EMS. It is mygreat pleasure to strive to generate both social andeconomic value as an external director for such achallenging company. I will do everything in my power asa member of the Board of Directors.

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ESG of SIIX

Philosophy of SIIX

Corporate Governance Message from Director

We will sincerely address the issues of ESG
management one by one based on the SIIX Principles.
Toru Maruyama Director & Executive Officer

Aiming at the coexistence ofsustainable business growth and
ESG management.
As the SIIX Group has continued to expand its businesson a global scale, we have strengthened our initiatives toaddress ESG (Environment, Society, and Governance),
which is essential as a foundation for sustainable growth.
In particular, as automotive EMS has currently been ourcore business, people, including our customers in Europe
and North America, and investors, have increasingly highexpectations of our Group. Their expectations have beenraised not only for our business and performance but also
for the social responsibility we should fulfill as a front
runner in the automotive EMS market.
While the COVID-19 pandemic had a massive impact
on the world in 2020, our awareness concerning theimportance of ESG in SIIX has been raised higher thanever. As the person responsible for ESG in general, I
intend to accelerate our ESG activities during the periodof the medium-term business plan in order to ensure thata system for ESG is put firmly in place. Along with theestablishment of the system, I will strive to develop a
structure that allows us to present Key Performance
Indicators (KPIs) for our ESG initiatives and report on theirchanges over time to our stakeholders.
In the area of “environment” in ESG, while we haveincreased capital investments as our business is on an
expansionary trend, we are facing a difficult phase of

reducing CO2 emissions. However, we intend to advanceour efforts to steadily reduce CO2 emissions by thinking
outside the box. The most recent initiative is theintroduction of a large-scale solar power generation
facility at our manufacturing base in Shanghai, China. As
a result, about 15% of the electricity consumed at the site
is now covered by renewable energy. In the future, weplan to introduce similar systems in our bases in Indonesia
and Mexico. We will carry out the plan according tomilestones to be set in the medium-term business plan.
Moreover, our global bases have been working
together to promote initiatives led by the Environmental
Management Committee with the aim of contributing to a
decarbonized society. Our top priority is to reduce CO2
emissions, but we will also continue to focus our efforts
on environmental conservation issues related to ourbusiness such as water and forest resources.
In addition, we are scheduled to establish a framework
for the Task Force on Climate-related Financial
Disclosures (TCFD) during the fiscal year ending
December 31, 2021. We intend to develop a governancesystem and strategy for TCFD and advance risk
management and goal setting based on the system. At
the same time, we will continue to make every effort topromote better understanding of our initiatives for TCFD
throughout the Group, as President Yanase emphasized
the importance of the initiatives at the strategy meeting
which was held in July 2021 for the purpose of explaining
our policy to employees in management positions in thegroup.

Knowing SIIX

Value Creation Story of SIIX

We will strive to further promote
diversity and work style reform.
In the area of “society” in ESG, there are a diverse range ofissues, but in particular, we recognize that we need to further
work on diversity in our organization first. We have received
some comments from people outside the company that we
don’t have any female board members at this point.
Therefore, I think this situation has to be improved.
However, our diversity initiatives should not be asuperficial effort just to make up the numbers. We intend
to entrust appropriate positions to talented people not
only who are capable of outstanding performance but
also who deeply understand our management philosophy,
regardless of their gender and nationality.
In this regard, looking at our global bases, we have afemale director at a factory in Hubei, China, who is from thatcountry and a female representative at a factory in Jakarta,
Indonesia. Albeit gradually, we have made progress towards
what we should be like. Furthermore, we have recently seen
a rapid increase in the number of female staff stationed
overseas. They are now working actively in the Philippines,
Mexico, Singapore, and other countries. We expect them togrow to become staff in management positions in future. I
may add that female executive officers have been playing
leading roles in the activities of the Kansai Economic
Federation (Kankeiren), in which we participated before
joining the Japan Business Federation (Keidanren) in
December 2020. In consideration of this situation, we
intend to further enhance our diversity initiatives.
At the same time, I feel the need to drastically review
our initiatives toward work style reform as the COVID-19
pandemic has been forcing us to think how ouroperations should be. Concerning telecommuting, wehave adopted it as much as possible according to thecircumstances of individual employees over the past year.
On this point, I think we should discuss how we can
improve systems with the aim of advancing in the right
direction. Going forward, we would like to develop a
program that allows employees to work from home when
they have difficulty in commuting to their office due to not
only the COVID-19 pandemic but also their healthproblems or family reasons.
As part of our efforts to reform work styles, we also
launched a task force on work reform in April 2020. With
the aim of equalizing and optimizing operations by using
IT, we have started to identify operations which can be
expected to improve. Not only the aforementioned
program for working from home, but also employees’
awareness of work styles in the company are also
drastically changing. We expect that work optimization by
the use of IT and digitalization will reduce employees’
burdens and promote work style reform.

External directors’ check functions
contribute significantly to theeffectiveness of corporate governance.
In the area of “governance” in ESG, what lies at the rootof SIIX’s philosophy is the “SIIX Principles” established by
Chairman Murai. These principles are based on theimportance of relationships of trust with people. These
principles, which new employees learn before anything

Business Overview of SIIX

ESG of SIIX

Financial Informationelse during their on-boarding training, help them foster
the spirit of “being fair in everything” shortly after joining
the company. With this corporate culture being cultivated,the basis of our corporate governance is a strong senseof morals in management members. Moreover, we adopt
a flat organization to promote smooth communication byminimizing the number of necessary directors. I think thiseffort also contributes to the effectiveness of our governance.

In addition, a strong check function by the external
directors is a major advantage of our corporate
governance. At present, we have three external directors.
As a matter of course, this number meets the standards of
the Japan’s Corporate Governance Code which requires
us to appoint at least one-third of directors as independent
directors. On top of that, we appointed a certified public
accountant with profound knowledge of corporate
management, a specialist in finance and IR who served as
the leadership at a securities firm, and an attorney with athorough knowledge of investment management and M&A,
as external directors of the company. All of the external
directors always examine each proposal rigorously andoffer advice from their professional perspective at theBoard of Directors meetings. They also provide appropriate
views on various risks the company may face at the time ofdeveloping its business on a global bases. We are proudthat they are the best members for the company.
Since the company established the Nomination andRemuneration Advisory Committee two years ago, we
have held meetings 13 times in total. We are proud that
this is a fairly large number for Japanese companies.
When Mr. Koji Yanase took office as President in 2020 via
a resolution at both the Board of Directors meeting and
the General Shareholder’s Meeting after a nomination by
the Nomination and Remuneration Advisory Committee,
the external directors asked us to “reassess the
President’s duties in a year.” In response to their request,
we held a meeting for the reassessment process in March
2021. As just described, I believe that both checks by theexternal directors and the management members’ sincere
attitude towards the checks are working properly in termsof the effectiveness of our governance.
As already explained, the company’s basic policy is toaddress various issues of ESG in a sincere manner. We
understand that we still have many issues to tackle as acorporate group in the process of growth. By steadily
working on each of the issues, we aim to create anorganization that is trusted by all of our stakeholders.

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Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Environmental Conservation
The Environmental Management Committee in the SIIX Group takes the lead in deploying eco-leaders to manage
environmental problems and eco-officers to manage environment-related policies in the bases of each countryaround the world, promoting activities as a group to resolve issues related to the environment. As environmental
problems such as climate change and exhaustion of resources become more severe, the SIIX Group will fulfill its
responsibility as a corporation and actively contribute to the conservation of the global environment by conducting
its business activities in an environmentally-friendly manner. The SIIX Group is currently involved in the following
initiatives.

Initiatives to reduce GHG emissions

Initiatives for TCFD
In terms of response to the TCFD, we will also promote

started activities to measure and reduce the amount of water

activities to calculate and reduce our supply chain emissions

used at each production base since 2021. We will consider(SCOPE3) from FY2021. With regard to GHG reduction

specific measures, including strengthening the use of recycled

activities, which used to be led mainly by the Environmental

water. On the business front, we will also contribute to theManagement Committee, as they will become more importantmeasures to reduce carbon emissions and address global

from the perspective of supply chain and governance, we

warming in countries around the world, as the electrification ofwill implement company-wide measures by renaming theautomobile devices and the increase in demand for EV-related

Environmental Management Committee “the Sustainability

parts to meet the needs for reducing carbon emissions

Committee” and making it a cross-sectional organization.

represent a major business opportunity for us.

With regard to the depletion of water resources, we have
The SIIX Group conducts business activities in 14 countries

production bases around the world with renewable energy.

worldwide, and as a first step, we are working to reduce

As a first step, we installed solar panels on the roof of the

CO 2 emitted indirectly from energy use (SCOPE2). The

Shanghai Factory, which began operation in January 2021.

total SCOPE2 CO 2 emissions in FY2020 was 61,549 tons,

We estimate that this installation will be able to cover about

which translates into an intensity of 0.34 tons per million yen

15% of the daily electricity consumption of the Shanghai

Installation of solar panels at manufacturing base in Shanghai, Chinaof net sales. Although the total amount of CO 2 emissions

Factory and is expected to reduce CO2 emissions by 1,817.5

decreased, the CO 2 emissions per million yen of net sales

tons per year. We are planning to continue to install solar

increased, mainly due to the significant decrease in net sales

panels at the second building of the Karawang Factory in

In order to further reduce GHG emissions, we installed

caused by COVID-19.

Indonesia and at the Mexico Factory, and will continue tosolar panels at our Shanghai manufacturing base, “SIIX

accelerate the use of renewable energy.

EMS (Shanghai) Co., Ltd.,” which began operations in

As part of the measures to reduce SCOPE2 CO2 emissions,January 2021. This is expected to cover a portion of

we aim to replace a portion of the electricity used at our

the electricity used for business activities and reduce
daily electricity consumption by approximately 15%. In
terms of CO2 emissions, we can expect a reduction of
approximately 1,817.5 tons per year. We will continue
to promote activities that reduce CO2 emissions inorder to contribute to the prevention of global warming.

Solar panel specifications

Karawang Factory, Indonesia

Shanghai Factory

Mexico Factory

Power substation capacity

1,841 kVA

Number of solar panels

3,960

Annual power generation (25-year average)

1,823,000 kVA

Roof area for installation

Approx. 15,000 ㎡

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ESG of SIIX

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Society
As initiatives for the development of a sustainable society are spreading around the world, we will contribute tosolving social issues through our business activities, and as a company with a global business presence, we will firmly
root ourselves in each region and be involved in the development of local communities. Moreover, in order to actively
accept diverse human resources for the realization of a society in which everyone can participate, we will promote
initiatives related to new work styles and create an environment in which human resources can grow and play anactive role. In the supply chain, we will fulfill our social responsibility to ensure that we are not involved in human rights
abuses through our procurement activities.

4. Responsible sourcing of minerals“Responsible Sourcing of Minerals” is defined as “striving toannual surveys on conflict minerals to ensure transparency in

avoid the use of minerals that have possibility of involvement inour supply chain. We will continue to promote the elimination

human rights abuses from a CSR perspective.” In accordanceof conflict minerals by proactively conducting surveys in orderwith the U.S. Dodd-Frank Act and EU regulations, we conduct

to fulfill our social responsibility with our business partners.

Minerals subject to the policy

Tantalum, tin, tungsten, and gold (3TG)

1. Active use of global human resources
Diverse human resources working actively at global bases

being active at global bases have been employed by our local

are one of our managerial resources that enable SIIX to

subsidiaries while the proportion of Japanese staff members

achieve sustainable growth. Local staff members support

transferred to overseas among those at the bases is less thanthe business activities of the company, and have been the

1%. We will strive to improve performance and corporate

source of the competitive power for the company conducting

value by developing many local staff members in managementbusiness activities in 14 countries. Most of the staff members

positions to instill a sense of loyalty toward the company.

Ratio of local
employees inmanagement
positions for FY2020

78.9 %

Target for the
medium-termbusiness plan
(2023)

80.0 %

2. Promoting the active involvement of women in the workplace
We are promoting diversity so that employees with diverse

which aims to “increase the ratio of female executives

backgrounds can play an active role, and increasing theto at least 30% by 2030,” and have been promoting theratio of women in management positions is one of the issues

appointment of female employees who are playing an active

we need to address. We support Keidanren’s “Challengerole. Our medium-term business plan by 2023 aims for a 50%

Initiatives for 30% of Executives to be Women by 2030,”

ratio of women in management positions.

Ratio of womenin management
positions for
FY202031.1 %

Target for the
medium-termbusiness plan
(2023)

50.0 %

5. Quality
In order to ensure identical quality worldwide, we will develop more efficient and high-quality production systems
by advancing information sharing, automation, and labor-saving. As a company engaged in manufacturing,
we are committed to complying with environmental laws and regulations to conduct production activities inan environmentally-friendly manner. In our activities for materials procurement, we will strive to fulfill our social
responsibility, emphasizing the perspective of ensuring transparency in our supply chain.

(1) Quality and environmental policy⃝As a global company with a primary focus on customer, we
will strive to exceed customers’ expectations by fulfilling
customer satisfaction, capturing future needs and meeting
their requirements.

⃝We will establish quality and environmental management
systems on a global basis with ISO9001, IATF 16949 andISO 14001, and implement their operations based on thecorporate philosophy of the SIIX Group.

⃝In addition to strictly complying with relevant laws andregulations, as well as regulatory requirements, we aim
to be a company that contributes to society through ourbusiness activities, environmental activities, and business
continuity activities.

⃝Aiming to contribute to sustainable economic development,
we will promote environmental conservation by preventing
environmental pollution and promoting energy and resource
conservation for continuous environmental impact reduction.

(2) Quality assurance system
Global network & management
Realization of a manufacturing, technology, and quality platform that connects 12 manufacturing bases

Global Engineering Department (Sagamihara, Japan)

Quality control andimprovement

Standardization
promotion

Mounting andmanufacturing technology

Factory support

Automation promotion

3. Creating a comfortable working environment
Strengthen cooperation among SIIX manufacturing bases

In order to enable employees to choose various work styles,

due to childbirth or other reasons but want to return to work.

we have encouraged them to use the program for working

We have also introduced programs for childcare/nursing

Indonesia

Indonesia

ThailandHungary

Slovakia

Japan

from home after developing a teleworking environment.

care leave and shortened working hours for childcare. By

Dongguan, China

Shanghai, China

Hubei, China

MexicoPhilippines

Philippines

This program has also been used effectively to guarantee

developing systems that support employees’ work-life

employees’ safety amid the COVID-19 pandemic and tobalance to allow all of them to work energetically, we will strive

continue our business activities.

to contribute to the realization of a society where everyone

In addition, we have adopted a welcome back program
to re-employ former employees who once left the company

can play an active role.

38

39

Financial Information

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Consolidated Financial Summary

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY 2020

Financial Information
Net sales

Million yen

166,481

167,825

190,692

207,009

209,755

235,035

212,768

233,153

242,804

223,037

181,598

Operating income

Million yen

5,331

4,027

4,647

5,011

6,233

8,913

9,134

9,705

8,625

5,506

4,452

Ordinary income

Million yen

5,645

4,582

4,973

5,427

6,460

9,002

9,146

10,513

8,717

5,634

4,444

Profit attributable to owners of parent

Million yen

3,270

2,723

3,076

3,321

4,131

6,717

6,698

7,093

6,414

3,695

1,724

Selling, general and administrative expenses

Million yen

5,947

6,113

6,671

8,072

8,889

10,802

11,067

12,922

12,01012,155

11,697

Depreciation and amortization

Million yen

1,735

1,972

2,404

2,916

3,166

3,805

3,271

3,465

4,235

5,477

6,046

Total assets

Million yen

62,78759,471

74,70389,204103,429

109,957

109,695

130,526

137,350

143,391

144,436

Net assets

Million yen

19,77020,12625,45333,18541,49749,73951,57357,60956,01658,24956,498Equity capitalMillion yen

19,34819,70025,27732,98541,31049,58551,33257,25255,65557,84656,084

Interest-bearing debt

Million yen

13,637

16,865

16,511

18,546

19,128

12,614

11,45819,55332,96938,66747,471

Net cash provided by (used in) operating activities

Million yen(1,068)

163

7,546

3,438

2,374

7,996

6,333

4,536

966

8,945

13,280Net cash provided by (used in) investment activities

Million yen(3,043)(3,851)(4,598)(3,216)(2,827)(5,113)(5,450)(9,211)(6,515)(9,602)(6,034)

Net cash provided by (used in) financing activities

Million yen

716

2,608

(1,932)(105)(1,286)

3,352(4,171)

6,410

7,991

2,923

1,291

Cash and cash equivalents at end of period

Million yen

5,526

4,450

6,263

7,518

6,497

12,473

8,776

10,574

12,813

15,03522,968

Free cash flow

Million yen(4,111)(3,687)

2,947

222

(453)

2,883

882

(4,674)(5,549)

(656)

7,246

Capital expenditure

Million yen

3,090

4,085

3,463

1,134

2,857

3,764

4,528

6,167

7,483

9,082

5,573

Net income per share (EPS)

Yen

69.30

57.71

65.19

70.37

87.53

137.94133.81144.01131.45

78.21

36.48

Net assets per share (BPS)

Yen

409.94417.39535.55698.87875.24986.35

1,042.20

1,162.33

1,178.04

1,224.26

1,186.71

Dividends per share

Yen

11.0

14.0

15.0

16.0

17.0

21.0

25.0

26.0

27.0

28.0

29.0

Million yen

7,066

5,999

7,051

7,927

9,399

12,71912,406

13,17012,861

10,983

10,498

％

30.8

33.1

33.8

37.0

39.9

45.1

46.8

43.9

40.5

40.3

38.8

times

0.7

0.9

0.7

0.6

0.5

0.3

0.2

0.3

0.6

0.7

0.8

％

17.9

13.9

13.7

11.4

11.1

14.8

13.3

13.1

11.4

6.5

3.0

Rate of ordinary income(Ordinary income / Average total assets during the period)
to total assets

％

9.5

7.5

7.4

6.6

6.7

8.4

8.3

8.8

6.5

4.0

3.1

Payout ratio

％

15.9

24.3

23.0

22.7

19.4

15.2

18.7

18.1

20.5

35.8

79.5

Number of
employees

7,609

8,301

9,029

8,641

9,545

10,352

10,82011,65913,632

12,721

11,257Per-share Data** A two-for-one stock split was conducted on April 1, 2018. The above per-share data have been adjusted retroactively to reflect the effect of this stock split.

Key Indicators
EBITDA(Operating income + depreciation and amortization)

Capital-to-asset ratio(Equity capital / Total assets (fiscal year-end))

Debt-to-equity ratio(Interest-bearing debt / Equity capital (fiscal year-end))

Return on equity(Profit attributable to owners of parent / Average equity capital during the period)((Interim dividends + Year-end dividends) / Profit attributable to owners of parent)

Employees:

40

41

Financial Information

Philosophy of SIIX

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information[Consolidated Financial Statements]
SIIX Corporation and its consolidated subsidiaries Fiscal years ended December 31, 2019 and 2020

Consolidated Balance Sheets
Liabilities

Assets(Million yen)

(Million yen)

As of December 31, 2019

As of December 31, 2019

As of December 31, 2020

As of December 31, 2020

Current liabilities
Current assets

Accounts payable-trade27,16327,481

Cash and deposits

15,134

23,130

Short-term loans payable

26,58523,810Notes and accounts receivable - trade

36,34937,057

Current portion of bonds with share acquisition rights

5,948

25,501

19,274－Merchandise and finished goods

Accrued expenses

2,948

3,230

Work in process

1,377

1,376

Income taxes payable

1,806

1,710

Raw materials and supplies

15,253

15,880

Other

4,420

3,621

Other

8,414

7,574

68,87259,855(39)(39)

101,990104,254－

10,00010,417

12,061

723

751

Allowance for doubtful accounts
Total current assets

Total current liabilities
Noncurrent liabilities
Bonds with share acquisition rights

Noncurrent assets

Long-term loans payable

Property, plant and equipment

Liabilities for retirement benefits

Buildings and structures

21,396

21,939Deferred tax liabilities

3,350

3,265

Accumulated depreciation(7,532)(8,387)

Other

1,777

2,004

Buildings and structures, net

13,864

13,551

Total noncurrent liabilities

16,26828,082

Machinery, equipment and vehicles

38,20539,095

Total liabilities

85,14187,937

Accumulated depreciation(26,669)(28,520)

Machinery, equipment and vehicles, net

11,536

10,575Tools, furniture and fixtures

3,370

3,508

Accumulated depreciation(2,367)(2,667)

Tools, furniture and fixtures, net

1,003

840

Land

3,244

3,815

Construction in progress

1,228

1,021

Other

3,218

3,398

Accumulated depreciation(747)(1,135)

Other, net

2,470

2,262

33,34732,066

Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets

624

1,581

1,483

839

2,108

2,421

Net assets(Million yen)

As of December 31, 2019

As of December 31, 2020

Shareholders’ equity
Capital stock

2,144

2,144

Capital surplus

5,630

5,631

Retained earnings

53,57953,980Treasury stock(5,968)(5,949)55,38655,806

(65)

90

3

－

Total shareholders' equity
Accumulated other comprehensive income

Investments and other assets
Investment securities

2,050

2,101

Investments in capital

963

958

Long-term loans receivable

61

62

Assets for retirement benefits

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

2,623

323

Adjustment for retirement benefits

(100)

(136)

2,460

277

311

360

Deferred tax assets

2,015

1,554

Other

1,087

1,178

Share acquisition rights

60

59

Allowance for doubtful accounts

(544)

(523)

Non-controlling interests

342

354

Total accumulated other comprehensive income

Total investments and other assets

5,945

5,693

Total net assets

58,24956,498

Total noncurrent assets

41,40040,181

Total liabilities and net assets

143,391

144,436

Total assets

143,391

144,43642

43

Financial Information

Philosophy of SIIX

Consolidated Statements of Income

Knowing SIIX

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Consolidated Statements of Changes in Net Assets(Million yen)

For the year ended
December 31, 2019

For the year ended
December 31, 2020

223,037
205,375
17,662
12,155
5,506

181,598
165,448
16,15011,697
4,452

Non-operating income
Interest income
Dividends income
Real estate rent
Share of profit of entities accounted for using equity method
Subsidy income
Gain on sales of goods
Gain on sales of scraps
Other
Total non-operating income

79
86
97
118
130
296
215
286
1,309

142
49
－
－
221
205
167
254
1,041

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Purchase of goods
Other
Total non-operating expenses
Ordinary income

468
－
164
165
382
1,181
5,634

373
63
25
153
433
1,049
4,444

－
－

2
2

Extraordinary losses
Losses related to novel coronavirus infections
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income

－
－
5,634
2,312
(340)
1,971
3,663

1,683
1,683
2,763
690
342
1,032
1,730

Profit (loss) attributable to non-controlling interests

(32)

6

3,695

1,724

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income

Profit attributable to owners of parent

For the year ended December 31, 2019

(Million yen)

Shareholders' equity
Capitalstock

Balance at beginning of
period2,144

CapitalsurplusRetainedearnings

5,629

Treasurystock

51,183(5,980)

1,730

(137)
(20)
(111)
33

156
(3)
(2,302)
6

9

(35)

(226)
3,436

(2,178)
(447)

3,477
(40)

(458)
11

308

56,016(1,299)Profit attributable to ownersof parent

3,695

3,695

3,695

(0)

(0)

(0)

12

14

14

1

Disposal of treasury stock
Net changes in items otherthan shareholders’ equity
Total changes of items
during the period
Balance at end of period

(218)

7

33

(176)

－

1

2,396

12

2,410

(218)

7

33

2,233

2,144

5,630

53,579(5,968)55,386

2,460

60

342

58,249For the year ended December 31, 2020
Capitastock

Balance at beginning of
period(Million yen)

Capitalsurplus2,144

Retainedearnings

5,630

53,579Treasurystock(5,968)

Total

55,386

Accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

2,460

60

342

Total net
assets58,249Changes of items during
the period(Million yen)

3,663

52

(1,299)Dividends from surplus(1,323)(1,323)(1,323)

Profit attributable to ownersof parent

1,724

1,724

1,724

－

－

19

19

0

Disposal of treasury stock

For the year ended
December 31, 2020

2,678

Total net
assets(1,299)

Shareholders' equity

For the year ended
December 31, 2019

Noncontrollinginterests

Dividends from surplus

Purchase of treasury stock

Consolidated Statements of Comprehensive Income

Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

52,976

ShareacquisitionrightsChanges of items during
the period

Purchase of treasury stock

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income

Total

Accumulate
othercomprehensive
income18

Net changes in items otherthan shareholders’ equity
Total changes of items
during the period
Balance at end of period(2,182)(0)

11(2,171)

－

0

401

18

420

(2,182)(0)

11(1,751)

2,144

5,631

53,980(5,949)55,806

277

59

354

56,49844

45

Financial Information

Philosophy of SIIX

Consolidated Statements of Cash Flows
For the year ended
December 31, 2019

For the year ended
December 31, 2020

Net cash provided by (used in) operating activities
Income before income taxes

5,634

2,763

Depreciation and amortization

5,477

6,046

(2)

(18)

Interest and dividends income

(165)

(192)

Interest expenses

468

373

Foreign exchange losses (gains)

140

67

Share of loss (profit) of entities accounted for using equity method

(118)

63

Decrease (increase) in trade receivables

2,389

(553)

Decrease (increase) in inventories

2,390

4,385

Decrease (increase) in consumption taxes refund receivable

(970)

(269)

(1,860)824

Increase (decrease) in advances received

(125)

(738)

Decrease (increase) in accounts receivable - other

(97)

327

Increase (decrease) in accounts payable - other

(8)

544

Increase (decrease) in accrued expenses

(95)

273

Other

(2,287)

1,021

Subtotal

10,76914,919

Increase (decrease) in trade payables

Interest and dividends income received

259

208

Interest expenses paid

(487)

(380)

Income taxes paid

(1,595)(1,467)

Net cash provided by (used in) operating activities

8,945

13,280(8,797)(5,394)

41

94

(743)

(742)

－

110

Purchase of investment securities

(115)

－

Payments of loans receivable

(24)

(49)

Collection of loans receivable

23

23

Purchase of shares of subsidiaries and affiliates

－

(213)

Payments for investments in capital of subsidiaries and affiliates

(27)

－

Proceeds from subsidy income

70

200

Other

(30)

(62)

(9,602)(6,034)

Net increase (decrease) in short-term loans payable

1,279(4,863)

Proceeds from long-term loans payable

6,798

10,211

Repayment of long-term loans payable(3,462)(6,270)－9,949

Redemption of bonds with share acquisition rights－(5,948)Purchase of treasury stock(0)－(1,298)(1,324)74

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities

Proceeds from issuance of bonds

Cash dividends paid
Other

(468)

－
(463)

Net cash provided by (used in) financing activities

2,923

1,291

Proceeds from share issuance to non-controlling shareholders

(44)

(605)

Net increase (decrease) in cash and cash equivalents

2,222

7,932

Cash and cash equivalents at beginning of period

12,813

15,035

Cash and cash equivalents at end of period

15,03522,968

Effect of exchange rate change on cash and cash equivalents

Value Creation Story of SIIX

Business Overview of SIIX

ESG of SIIX

Financial Information

Corporate Data
(Million yen)

Increase (decrease) in allowance for doubtful accounts

Knowing SIIX

Corporate Outline
Company name

SIIX Corporation

Established

July 1, 1992

Paid-up capital

2,144 million yen (as of December 31,2020)

Location

Osaka
SIIX BLDG, 1-4-9, Bingo-machi, Chuo-ku,
Headquarters: Osaka 541-0051 JAPANTokyo
SIIX BLDG, 2-3-25, Kudanminami, Chiyoda-ku,
Headquarters: Tokyo 102-0074 JAPAN
Nagoya Sales
Department:

2F SIIX BLDG, 3-2-11, Meieki, Nakamura-ku, Nagoya, Aichi 450-0002,
JAPAN

Net sales

181,598 million yen (FY2020: consolidated)

Number of employees

Non-consolidated: 203, consolidated: 11,257 (as of December 31, 2020)

Stock and Shareholder Information (as of December 31, 2020)
Shareholding by typeof shareholder

Stock information
Total number of
160,000,000 sharesauthorized shares
Total number of shares 50,400,000 sharesissuedNumber of shareholders 17,633 shareholders
at fiscal year-end

Treasury stock
6.23%
Individuals
and others
16.08%

Foreigncorporations, etc.
18.82%

Major shareholders

Number of shareholders
by type of shareholder

Securities
companies
2.70%
Financial
institutions
29.11%

Financial institutions
0.13%

Securities companies
0.15%

Other corporations
0.87%

Treasury stock
0.01%

Foreigncorporations,
etc.
1.24%

Other
corporations
27.06%

Individuals andothers
97.60%

Number of shares held
(in thousands)

Shareholding ratio (%)

Sakata Inx Corporation

10,812

22.88

The Master Trust Bank of Japan, Ltd. (trust account)

4,136

8.75

Forty Six Ltd.

2,200

4.66

Resona Bank, Limited

2,170

4.59

Sumitomo Mitsui Banking Corporation

2,160

4.57

Shiro Murai

1,400

2.96

Custody Bank of Japan, Ltd. (trust account 9)

1,398

2.96

Custody Bank of Japan, Ltd. (trust account)

1,139

2.41

BBH/SUMITOMO MITSUI TRUST BANK, LIMITED (LONDONBRANCH)/
SMTTIL/JAPAN SMALL CAP FUND CLT AC

755

1.60

MUFG Bank, Ltd.

720

1.52

Shareholder name

*Aside from the above, SIIX owns 3,139,729 shares of treasury stock.

Website of SIIX

Refer to the website of SIIX for the latest company, IR, and CSR information.
SIIX Corporation

Search46

http://www.siix.co.jp/

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