IR Information

73rd Term Business Report
Notes

Accounting period
From January 1 to December 31
Record date for year-end dividends
December 31

January 1, 2023

December 31, 2023

1. With the computerization of stock trading, in principle,
account managing agencies (securities companies andother parties) where shareholders maintain accounts
perform various procedures, including procedures for

Record date for interim dividends

changing shareholder addresses and requesting share

June 30

purchases. Please ask the securities company where you

Annual meeting of shareholders
March each year

maintain an account about these procedures. Please notethat the holder of the list of shareholders (Mitsubishi UFJ
Trust and Banking Corporation) does not offer any of these

Holder of list of shareholders and managing agency

services.
2. Mitsubishi UFJ Trust and Banking Corporation has been

for designated accounts
Mitsubishi UFJ Trust and Banking Corporation

appointed as the account managing agency for theprocedures associated with shares recorded in special

Contact

accounts. Please ask the account managing agency for

Stock Transfer Agency Department, Mitsubishi UFJ

special accounts stated above (Mitsubishi UFJ Trust andTrust and Banking Corporation

Banking Corporation) about such procedures. Mitsubishi

1-1 Nikko-cho, Fuchu-shi, Tokyo 183-0044

UFJ Trust and Banking Corporation branches across Japan

Tel: 0120-232-711 (toll free)serve as intermediaries for these procedures.
3. The main and branch offices of Mitsubishi UFJ Trust andListed stock exchangeStandard Market, Tokyo Securities Exchange

Banking Corporation pay dividends receivable.

Public notice method
On-line public notice.

PALLETCHER

Publication at URL https://convum.co.jp· Hand unit for palletizing with robots, etc.
· Variations for cardboard boxes and bags

(Public notices shall be published in the Nihon Keizai
Shimbun newspaper when accidents and other causes
prevent on-line public notice.)
PALLETCHER SGP-H2 series for bags

2-6-18, Shimomaruko, Ota-ku, Tokyo 146-0092
TEL: +81-3-3759-1491

TSE: 6265

To Our Shareholders

As a pioneering manufacturer of vacuum
absorption equipment, we will aim to be acompany that is trusted by society, andstrive for continuous corporate growth,through manufacturing attractive products.

Looking to the Next Generation

Top Interview

Q 1 — Please describe the business results of the 73rd term.

In the transition period from living with
COVID -19 to the post-COVID -19 era, the

The Group’s consolidated net sales for the 73rd term
amounted to 1,924 million yen, a decrease of 19.2% year on
year. In the Japanese market, after a favorable performance inthe previous year, there was a marked decline in demand forsemiconductor production equipment and maintenance, andorders received for vacuum equipment and vacuum pads
declined. Demand for products related to the Robot Hand was
brisk amid the trends toward labor reduction and automationin production facilities, and we expanded sales activities
centering on capturing new customers. The Company’s net
sales amounted to 1,566 million yen, a decrease of 15.1% year
on year.
Overseas, in the South Korean market, the special demand in
the semiconductor sector that had continued until the first halfof last year settled down, so we expanded sales activities
centering on products related to solar panels, camera lenses,
and secondar y batteries, and expanded second-brandproducts through local production, responding to user needs
amid price competition. With this, sales in the South Koreanmarket decreased 15.0% year on year to 369 million yen. In the
Chinese market, after the lifting of the zero-COVID policy, aninternal demand-led recovery of the economy did not eventuate,
and with recovery of production kept low by the tightening ofsemiconductor export restrictions by the U.S., sales in the
Chinese market decreased 23.5% year on year to 88 million
yen. In Thailand, we continued to promote sales expansion
activities for automation equipment, including in neighboring
countries, and actively launched products for automobile-related

environment surrounding us has transformed
dramatically. Not only the market, but also
manufacturing technology, sales techniques
and product marketing methods are undergoing

We are pleased to present our results for the 73rd term from January 1,
2023 to December 31, 2023.

significant change. Our 74th term has begun.
We are facing the challenges of the next 10 or
20 years with new ideas and strategies at hand

We also take this opportunity to express our sincere appreciation to

to increase CONVUM’s brand value andexpand our market. With all of our employees

our shareholders for their support.
March 2024

constantly working together in solidarity aroundthe meaning of “greater value” as expressed in
our management philosophy, we are committed
to working with our customers and shareholders

President and Representative Director

to build the next generation of CONVUM. We
look forward to your continued patronage in theManagement Philosophy
Caring about people and making great efforts to weave together
our creative ideas with the requirements of our customers,
while contributing greater value to society.

Corporate Mission■ Caring about our customers.
■ Of fering each of our employees optimum working
conditions and working environment.
■ Carrying out development by the integration of individual
ideas and customers requirements.
■ Promoting alliances with other companies, and sharing
the benefits obtained from it.
■ Transparency of management.
■ Giving a high level of importance to internal communicationsuch as reporting, informing and consulting.
■ Promoting a professional relationship in which everyone
can trust and rely on each other.
1

Consolidated Financial Highlights■ Net sales (million yen)

2,469
2,183

years to come.

■ Sales distribution by region■ Operating income (million yen)

4.6%
1,924

647

614

2.8%

2,380

■ Ordinary income (million yen)

576

546

18.0%
Net sales

340

319

1,924 million yen

365

357

74.6%

70th term

71st term

72nd term 73rd term

■Japan ■South Korea ■China ■Other

70th term

71st term

72nd term 73rd term

70th term

71st term

72nd term 73rd term

2

The CONVUM GroupTop Interview

and food-related equipment. Sales in these other markets
decreased by 33.6% year on year to 45 million yen.
In terms of profitability, although we pursued the reformof overall expenses through efforts to reduce manufacturingcosts and optimize inventory levels, consolidated operating
income fell 47.9% year on year to 319 million yen, andconsolidated ordinary income fell 43.6% to 365 million yen,while profit attributable to owners of parent decreased
48.2% year on year to 237 million yen.
CONVUM USA, INC., which had been a consolidated
subsidiary of the Company, declined in importance with theprogress in winding-up procedures, and MYOTOKUCONVUM CHINA CO., LTD. was sold. As a result, these twocompanies were removed from the scope of consolidationfrom the fiscal year under review.

production processes, improve production efficiencies, andwork to ensure stable quality and reduced costs.
Furthermore, in response to the growing demand for
robots in recent years, we will continue working on
initiatives aimed at the future, such as the development of
the Robot Hand, which utilizes the Company’s vacuum
absorption technology, the development of environmentallyfriendly electric products, and the development of products
for the food sector.

Q 3 — Finally, please provide your message to shareholders.
To fulfill the expectations of our shareholders and otherstakeholders, the Group will continue to seek sustainablegrowth and enhance its corporate value. As a developmento r i e n t e d c o m p a n y, w e w i l l a c t i v e l y p r o m o t e t h edevelopment and commercial launch of attractive new
products and contribute as a company that is trusted by
local communities through manufacturing.
Regarding the distribution of profits to shareholders, we
make it a basic policy to ensure returns to shareholders
based on business results and consideration of the need tosecure resources to fund investment for the future.
Pursuant to this policy, regarding dividends for the 73rdterm, we propose an annual dividend of 50.00 yen per
share, consisting of an interim dividend of 25.00 yen per
share and a year-end dividend of 25.00 yen per share.
We will devote our full energies to achieving management
objectives to meet the expectations of all of our shareholders,
and therefore sincerely ask for the continued and unwavering
support and cooperation of our shareholders.

describe your performance forecasts and major
Q 2 — Please
initiatives for the fiscal year ending December 31, 2024.
For the 74th term, we expect to record consolidated net salesof 1,814 million yen, consolidated ordinary income of 305
million yen, and profit attributable to owners of parent of 220
million yen. To achieve these targets, we will execute thefollowing initiatives.
We will forge ahead with fundamental research and new
product development specifically focusing on our unique
vacuum absorption equipment. Demand is forecast tocontinue to rise for vacuum pads, our main product.
Therefore, with respect to these vacuum pads and against
the backdrop of demand for automation in all types of
production facilities, we will promote the automation of■ Profit attributable to owners of parent (million yen)

■ Total assets / Total net assets (million yen)

■ Dividends (yen)■ Total assets ■ Total net assets

458
402

5,241

5,693
4,772

5,140

70th term

50

372nd term 73rd term

CHEONAN Office
BUSAN Office
CONVUM (THAILAND) CO., LTD.
818/46 Udomsuk Road, Bangna-Nuea,
Bangna, Bangkok, 10260
TEL 66-2-769-5851 FAX 66-2-769-5853

TopicsDevelopment of our own rubber press machines

To handle high-mix low-volume production, we developed our own small rubberpress machines to be installed at our No. 5 Plant. It has a pressing capacity of 8 tons
and accommodates small dies of up to 60 mm x 60 mm. For ease of handling andspeedy tooling changes, the press was developed to suit CONVUM’s own production
processes. With the development and manufacture of production equipment by our
production engineering division, we will build flexible production systems.

Iwate Office50

Head Office237

71st term

SUWON Office

60

6,100
5,959
5,786
5,527
40

244

CONVUM KOREA CO., LTD.
1204, KCC WELLTZ VALLEY, 205 GASAN DIGITAL 1RO,GEUMCHOEN-GU, SEOUL, KOREA<1204, KCC WELLTZ VALLEY, GASANDONG>TEL 82-2-6111-8007 FAX 82-2-6111-8006

Osaka Office70th term

71st term 72nd term 73rd term

70th term

71st term

72nd term 73rd term

4

Results by Product LineCONVUM ejectors
Net sales

Pressure sensors

611 million yen

Net sales

170 million yen

Ejectors are vacuum generators that use compressed air to generate suction.
They are so named because compressed air is released (ejected) from the nozzle.

Sales distribution ratio

31.8%

Sales distribution ratio

8.9%

Pressure sensors measure the pressure displacement with an internal pressuresensitive element, then convert and output an electrical signal. Our company’s pressure
sensors, which focus on air pressure, are used for a variety of applications including
suction confirmation, seating confirmation, and source pressure management.

CONVUM is a coined word, created byConsolidated net sales of this product segment for theyear under review were 611 million yen due to a
reduction in new equipment stemming from the global
shortage of semiconductors and electrical components,
as well as the weakened demand for maintenanceresulting from production adjustments forsemiconductor production equipment and various types
of automation machinery. The sales distribution ratio of
this product segment was 31.8% of overall productsales, down 17 percentage points year on year.

using the imagery of generating vacuum
using compressed air from a compressor
as well as of a device that can “control
vacuum”. CONVUM is a registeredtrademark of the Company.

Vacuum pads
Net sales

Sales distribution ratio

Although demand for capital investment has decreased,
there has been large-scale demand especially forsemiconductor production equipment, as production
activity at existing installations increased. Consolidated
net sales for the year under review were 998 million yen,partly due to growth in demand for new products
targeting robot-related industries. The sales distribution
ratio of this product segment was 51.9% of overall
product sales, down 19.8 percentage points year on year.

5

FA equipment and others

998 million yen
51.9%

Demand weakened due to the reduction indemand for semiconductor production
equipment. As a result, consolidated net sales
for the year under review amounted to 170
million yen. The sales distribution ratio of thisproduct segment was 8.9% of overall productsales, down 23.4 percentage points year on year.

Net sales

The vacuum pad is a product that utilizes the suction (negative pressure) obtained
from a vacuum generator to adsorb and lift workpieces (adsorbate).
Other than the “vacuum pad,” it is also called “suction pad,” “suction cup,” or“cup.” The pad acts as that of a human “hand” or “finger.”

142 million yen
Robot Hand can be fitted to various types of robots. Customers can use Robot
Hand right away without any special designs, as we have prepared a wide rangeof flanges to fit many types of robots made by various robot manufacturers.

Sales distribution ratio

7.4%

Demand weakened due to a decrease indemand for new equipment in various
automation equipment. As a result, consolidated
net sales for the year under review amounted to
142 million yen. The sales distribution ratio of
this product segment was 7.4% of overall
product sales, down 18.3 percentage points
year on year.

6

Examples of Product Applications

Topics

As factory automation equipment, our products are incorporated into various manufacturing processes andequipment for various industries.

Conveyance of food with COP(Bernoulli Type End-Effector)

Adsorption of food (naked products)
with vacuum pad designed toaccommodate Food Sanitation Act (FSA)

Adsorption of aluminumwith PK2 high-durability pad

Participation in the INTERNATIONAL ROBOT EXHIBITION 2023

Conveyance ofshrink-wrapping with SGP-H2

The CONVUM Group’s products and technologies
are deployed in an extensive range ofindustrial applications on production sites,
contributing to the automation of production
processes and enhancing the quality of products.
Key Point!
We have expanded our product range
beyond the semiconductor and automotive
component sector to cater to theautomation of food processing plants.
These efforts began with the adoption ofhygienic materials (FSA-compliant,antimicrobial materials) for our vacuum
pads, and we now have an expanded lineup of products for different industries.
This includes the MVE series of vacuum
devices, the main body of which is madeentirely of SUS304, and which can becompletely disassembled for washing.

7

Topic 1

We participated in the INTERNATIONAL ROBOT EXHIBITION at the end of November 2023. As a specialist manufacturerof hands (parts that grip objects) for robot manufacturers in Japan and overseas, in addition to our vacuum generator
ejectors and vacuum pads, we exhibited connectors for attaching them to robots, and received recognition as the
manufacturer of Robot Hand.

Topic 2

April 2023 – Participation in the Niconico Chokaigi
We par ticipated in Niconico Chokaigi,
hosted by DWANGO Co. Ltd. using it as anopportunity to raise our corporate profile,including IR, among young people and to
give the general public the chance to see
robots with their own eyes. We also intend toparticipate in April 2024.

8

Consolidated Financial Statements (Summary)

Consolidated Statement of Income (Unit: Thousand yen)

Consolidated Balance Sheet (Unit: Thousand yen)Accounts

72nd term

73rd term

As of December 31, 2022

As of December 31, 2023

AssetsCurrent assets

3,367,611

3,452,678

Accounts

72nd term

73rd term

January 1, 2022 to
December 31, 2022

January 1, 2023 to
December 31, 2023

Net sales

2,380,655

1,924,052

Gross profit

1,325,685

983,637(As of December 31, 2023)

Corporate Information
Company name

Status of Shares

CONVUM Ltd.

Establishment

April 16, 1951

Capital stock¥748,125,000

Number of authorized shares Number of issued shares

6,600,000

2-6-18 Shimomaruko, Ota-ku, Tokyo

Major Shareholders
Ise Kosan Co., Ltd.

282,760

Sugako Ise

126,020

8.10

Koji Ise

82,4105.29

Selling, general andadministrative expenses

711,553

663,807

Total assets

5,959,846

6,100,375

Operating income

614,132

319,829

Consolidated
subsidiaries

CONVUM KOREA CO., LTD.
CONVUM (THAILAND) CO., LTD.

Ordinary income

647,888

365,489

Number of employees

86 (Consolidated number of employees)

159,649

Income before income taxes
and minority interests

651,931349,544

Long-term liabilities

128,247

153,815

Profit462,816

236,824

Total liabilities

432,748

313,464

Net Assets
Shareholders’ equity

5,327,722

5,471,811

Accumulated othercomprehensive income

159,306

269,350

Non-controlling interests

40,06945,749Total net assets

5,527,097

5,786,911

Total liabilities and net
assets5,959,846

6,100,375

Consolidated Statement of Cash Flows (Unit: Thousand yen)Accounts

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Effects of exchange rate changes
on cash and cash equivalents
Increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at
beginning of fiscal year
Cash and cash equivalents at
end of fiscal year

Profit attributable tonon-controlling interests
Profit attributable to ownersof parent

4,024

(657)

458,791

237,481Highlights of the results for the 73rd term

(A decrease of 17 fromthe previous term-end)

Iwate, Tokyo, Osaka

2,647,696

304,500

1,033(Of which treasury stock:100,448 shares)

Address of head office2,592,235

Current liabilities

Number of shareholders

1,657,000

Domestic offices

Fixed assets

Liabilities

9

Corporate and Shareholders Information

Shareholder

Officers (As of March 22, 2024)

Number of shares held Ratio of shareholding

18.18

Izumo Sangyou Corporation

53,3003.42

HIKARI TSUSHIN, INC.

45,1002.90

President and Representative Director

Koji Ise

Director

Yutaka Sato

MTAsia Corporation

36,0002.31

Director

Takayuki Kunimatsu

Shinichi Kamiya

35,1002.25

Director

Tatsuo Sugiyama

Full-Time Corporate Auditor

Shinichi Sato

Corporate Auditor

Tsutomu Tomoda

Corporate Auditor

Hirokazu Makimura ***Note: The persons with asterisks are outside directors or outside corporate auditors.

 	 Consolidated net sales decreased by 19.2%

NICHIDEN Corporation

28,0001.80

Atsushi Ogawa

26,7001.71

Saburo Ise

25,325

1.62(Notes) 1. Although the Company holds treasury stock, it is excluded from the list of“Major Shareholders” above.
2. The number of treasury stock is deducted from the number of issued shares incalculating the ratio of shareholding.

year on year to 1,924 million yen while
consolidated ordinary income decreased by
43.6% to 365 million yen as a result of focusing
on sales of products for semiconductorrelated equipment and robot-related products
for the logistics and food industries

72nd term

73rd term

January 1, 2022 to
December 31, 2022

January 1, 2023 to
December 31, 2023

676,894

460,566(224,229)(185,614)(77,594)(92,763)

16,41718,285from the end of the previous consolidated
fiscal year to 2,647 million yen, mainly due toan increase of 163 million yen in investments
and other assets, despite decreases of 82
million yen in property, plant and equipment
and 25 million yen in intangible assets

391,487

200,474 	Total net assets amounted to 5,786 million

1,841,278

2,232,765

2,232,765

2,433,239

 	Fixed assets increased by 55 million yen
OurwebsiteWe update our investor relations and other corporate informationon the website as needed, and invite you to check back regularly.

https://convum.co.jp

yen, mainly due to a 144 million yen increase
in retained earnings, and the shareholders’equity ratio was 94.1%

10