Always respond to customer needs with the spirit of “We Care”.

SIIX Corporation

2023

Integrated Report
Global Business Organizer

SIIX is globally developing one-stop services from procurement to logistics and manufacturing,
centered on the functions of an electronic parts trading company.

1

Knowing SIIX

SIIX Principles (Corporate Philosophy)

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

Navigation buttons:
Link to a related pagein the report

Link to an external
website

SIIX Principles (Corporate Philosophy)
Corporate

Theme

Corporate

INDEX

Mission

The Corporate Theme is the SIIX
business concept.

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

Provide the best merit for businessthrough the best business organizing.

We contribute to the activation of thesocial system and the progress ofhumankind by pursuit of the effective useof the world’s resources.

Key Points in Each Section

Knowing SIIX
SIIX Principles (Corporate Philosophy)
History of Value Creation
Global network
SIIX in Numbers [financial and non-financial highlights]

Target
The Corporate Target is the vision of an
extremely high-level corporation which
we strive to be.
We will become a company that organizes
customer needs in all fields around theworld to give all stakeholders a sense ofaffinity and charm as a global businessorganizer that creates business.

Message from the Chairman
Value Creation Process
Message from the President

9
13
15

Explanation of the medium- tolong-term vision of the SIIX
Group, featuring interviews with
top management

Reflection of 2022, the 2nd Year of the Medium-Term

19
21

Business Plan (2021-2023)

Corporate

Style

Business Overview

The Corporate Style is what ourcompany should always consider very
important as to how we should be as acorporation.

ESG

1st filter:
Challenging, Speedy and Fair

Financial Information

23

Value Chain
Automotive-related equipment / Industrial equipment /Home appliances / Information devices / Others

Business forecasts, outlooks, strategies and targets stated in this report,

easy-to-understand way the financial and non-financial aspects of SIIX’s

except for those relating to the past or present facts, are forward-looking

business strategy and management foundation to our stakeholders.

statements and based on information currently available to the company

Period：FY2022(January 2022 - December
2022)

Please refer to our official website for detailed information.

and plans, expectations and judgments based on certain assumptions
may differ from the disclosed business forecasts, etc. due to variable

sustainable and global co-creation society through our main business.

factors with various uncertainties such as economic conditions.

Basic information about the SIIX
Group, including corporate data
and financial information

Corporate Data

54

Consolidated Financial Summary

We have issued the 2023 Integrated Report to explain in an

Going forward, we will continue to work toward the realization of a47
49

Society

Period and scope

deemed reasonable. Accordingly, please understand that actual results

Consolidated Financial Statements

Environmental Conservation

Disclaimer

Some sections of this report
include information during andafter December 2022.

Scope：SIIX and its subsidiaries andaffiliates

25

Explanation of the SIIX Group’s
initiatives related to sustainability

Message from Director

Editorial policy

Explanation of the current businessoverview

29
35
39
43

Corporate Governance2nd filter:
Sophisticated, Creative and Simple

https://www.siix.co.jp/en/

Explanation of the overview of
the SIIX Group, including its
Corporate Philosophy, history,
and global network

Value Creation Story

Message from the Chief Accounting Officer

Corporate

1
3
5
7

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 pagehttps://www.siix.co.jp/en/

IR information (Investor Relations)
https://www.siix.co.jp/en/ir/

Sustainability
https://www.siix.co.jp/en/sustainability/2Knowing SIIX

History of Value Creation

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

History of Value Creation
History of SIIX

History of SIIX

From

The company was founded on July 1, 1992, when major ink-maker Sakata Inx Corporation’s Overseas Business Department, in charge of trading, became independent. We marked the 30th anniversary in 2022. As a “global business organizer” that connects various needs and seeds in the world, we have created andoffered different types of new value without being bound by industry or field boundaries. The company has the willingness to take on new challenges under the slogan of “Make an !mpact,” as well as to work closely with all stakeholders under the spirit of “We care.” We will thus respond swiftly to our customers’ needs.

1957

From

1979

From

1992

From

2010

Commenced trading activities overseas

Commenced EMS business

Expanded business mainly in Asia

Expansion of global network

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), theink-maker that was the company’s predecessor, and exports of electronic
components to the Philippines began. The company has constructed its businessmodel with a focus on “overseas business” since the initial stages of its founding.

In 1979, when the term EMS (electronics manufacturing services) did
not exist, SIIX started this business overseas (Singapore) and becamea pioneer in the Japanese EMS industry.

The company spun off from Sakata Inx and changed its name to SIIX
Corporation. Supported by the increasing global demand for electronics
manufacturing services, SIIX established production and sales bases in
China, ASEAN countries, and Europe, thereby expanding its business.

SIIX further expanded its network of bases to respond to the needs of alarger number of customers. The company also focuses on Joint Design
Manufacturing (JDM) to connect needs and seeds around the world asa global business organizer.

1957

1979

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

1992

2010

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

1982

Became a sales distributor of
PANAFACOM and started sales ofcomputers overseas, mainly inEuropeCommenced overseas sales of CRT
monitors under the Sakata brand2012

Marked the 20th anniversary of its establishment
Established a manufacturing subsidiary in Shanghai
Established a sales subsidiary in Indonesia

2013

Established a manufacturing subsidiary in the Philippines
Established a manufacturing subsidiary in Mexico
Achieved sales of 200 billion yen

2014

Established the company’s first joint venture company for plastic 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 Midea Heating &Ventilating Equipment Co., Ltd.
Established a joint venture company with a medical device development
company in Singapore and entered the robotics field2016

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

2019

Established a sales subsidiary in Kuala Lumpur, Malaysia

2021

Integrated management of a sales subsidiary and a manufacturingsubsidiary in Thailand

2022

Listed in the Prime Market of the Tokyo Stock Exchange
Marked the 65th anniversary of its founding, and the 30th anniversary of
its establishment

2023

Integrated management of a sales subsidiary, a manufacturingsubsidiary, and a die molding subsidiary in the Philippines

2011

Great East Japan Earthquake

2018

U.S.-China trade friction

The company’s founder Murai who was in charge of export 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 in Japan to the Philippines (founding of the company)

1988
1960s

1970

1974

1977

Social changes
and issues

3

Invested in an electronic musical instruments manufacturer andbecame an exporter of its products
Commenced the export of motorcycles, chemical products,
transport machinery, etc. to the Philippines
Established the company’s first joint-venture company in thePhilippines to strengthen sales of motorcycles and chemical
products

Commenced circuit board
mounting business in Thailand(became our current mainstay factory)

Commenced full-fledged OEM production and export ofelectronic organs
Established Hammond International Japan Inc jointly with
Hammond Inc in the U.S.
Commenced assembly and production of motorcycles with
Kawasaki Heavy Industries, Ltd. using local capital

1990

Period of high economic growth in Japan

1970s

Two oil crises

Late
1980s
Late
1990s

1993

Commenced circuit board mounting 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)

1996

Commenced sales of components to major Japanesemanufacturers of automotive-related equipment
After making a full-fledged entry into the field of automotive-related
equipment, the company started receiving outsourcing contracts
for materials procurement, circuit board mounting, assembly, andother processes from a variety of customers around the world,allowing it to expand and grow the automotive-related equipment
sector into the main business area of the company

1997

Commenced production of LCD modules for European mobile
phone manufacturers

1998

Company name changed to SIIX Corporation

Established a joint venture company in the Philippines andcommenced production of wire harnesses for automobiles

Started trilateral trade in Singapore which was groundbreaking in
its time

1960s

Spun off from Sakata Inx andestablished Sakata Inx International

Trade friction

Burst of the bubble economy

2000

Established a semiconductor design and development company
and commenced development and manufacture of LCD driver ICs
for mobile phones (sold in March 2005)
Achieved sales of 100 billion yen
Listed in the Second Section of the Tokyo Stock Exchange

2001

Established a joint venture company in Shanghai, China andcommenced the EMS business
Established a joint venture company in Slovakia and commenced
the EMS business
Commenced VMI service for major Japanese manufacturers ofautomotive-related electronic components

2002

Commenced EMS business for automotive-related equipment at
the Thai Factory

2005

Listed in the First Section of the Tokyo Stock Exchange and the
Osaka Securities Exchange

2007

Opened a logistics center in Thailand

2009

Patented a new method of circuit board mounting

1995

Great Hanshin-Awaji Earthquake

2020

Spread of COVID-19

2008

Collapse of Lehman Brothers

2021

Semiconductor chip shortages

4

5

Knowing SIIX

Global network

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

Global network
Global deployment with 50 bases in
15 countries worldwide

Meeting domestic demand in
China in the future

The ability to provide a variety of outsourcing options toChina

our customers through our extensive and organic
network of overseas bases is one of the strengths of SIIX.

Sales and distribution of electronic
components, etc.
Sales of electronic components, etc.
Circuit board mounting, assembly andprocessing of devices and components(million yen)

75,03960,806● Composition of sales by segment

Main businesses

Branch office / representative office
FY2021

FY2022*★ indicates a non-consolidated subsidiarybusiness development of our customers, from materials
12 SIIX (Shanghai) Co., Ltd.

(As of the end of December 2022)

13 SIIX EMS (Shanghai) Co., Ltd.
14 SIIX HUBEI Co., Ltd.
15 SIIX EMS (DONG GUAN) Co., Ltd.

Preparations to expand
domestic production in Japan

16 SIIX H.K. Ltd.
1011

17 SIIX TWN Co., Ltd.

1

Europe15,822

FY2021

48,915million yen

50,626million yen

EuropeNet sales

5.7％

276,825 million yen

ASEAN

China

86,420million yen

75,039million yen

31.2％

27.1％

Japan

Contact for major European
corporations

14,67318.3 ％

17.7％

15,822million yen

procurement to manufacturing and distribution.

9

Japan

Plastic molding and die manufacturing

We have established bases in approximately 50 locationsin 15 countries worldwide that can assist in the global

Americas14(million yen)

19

15

20

9 SIIX Europe GmbH23

48,74850,62617

FY2021

FY2022*Other than the above, consolidated net sales of 277,031 million
yen include 206 million yen that does not belong to any
reportable segment.

5

13 12

21
22

18

FY202216

2

3(million yen)

4

6
7

1 SIIX Corporation
2 SIIX Electronics Co., Ltd.

24

10 SIIX EMS Slovakia s.r.o.
11 SIIX Hungary kft.

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

26 25

ASEAN
64,95386,420

FY2021

FY2022(million yen)

18 Thai SIIX Co., Ltd.

24 PT SIIX Electronics Indonesia

19 SIIX Vietnam Company Limited
20 SIIX Malaysia Sdn.Bhd★

★

25 PT. SIIX EMS INDONESIA

Solar panels in operation
around the world
We have been working on the installationof solar panels on the roof of ourfactories since FY2021 in order to supply
a part of the electric power used in ourbusiness activities. By the end of
FY2022, solar panels were installed at
our factories in China (Shanghai and
Dongguan), Mexico, and Indonesia(Karawang) and began operation. We willproceed with the installation at otherfactories in sequence to further reducegreenhouse gas emissions.

26 PT. SIIX Trading Indonesia

8

Enhanced support for western
corporations in Mexico
Americas37,613
FY2021

48,915(million yen)

FY202221 SIIX Phils., Inc.
22 SIIX EMS PHILIPPINES, INC.

3 SIIX U.S.A. Corp.

23 SIIX Singapore Pte. Ltd.

4 SIIX U.S.A. Corp. Detroit Branch
5 SIIX U.S.A. Corp. Irvine Branch
6 SIIX MEXICO, S.A DE C.V.

★

7 SIIX EMS MEXICO, S. de R.L de C.V.
Solar panels at Indonesia Factory

8 SIIX do Brasil Ltda.

★

6

7

Knowing SIIX

SIIX in Numbers [financial and non-financial high-lights]

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

SIIX in Numbers [financial and non-financial high-lights]
Financial data
Net sales / Operating income /Operating income margin

Profit attributable to owners of parent /Net income per share (EPS)

Capital-to-asset ratio

D/E ratio■ Net sales (million yen) ■ Operating income (million yen)

■ Profit attributable to owners of parent (million yen)

● Operating income margin (%)● Net income per share (yen)● Capital-to-asset ratio (%)● D/E ratio

Operating income margin

3.2%

Profitattributable toowners of parent

4,733

million yen

37.5%

Capital-to-asset ratio

277,031242,804

226,833

223,037

6,414

181,598

8,625
5,506

3.6

2.5

2018

2019

8,929

4,452

4,954

2.5

2.2

2020

D/E ratio

0.8

0.8

0.8

0.8

2020

2021

2022

0.7

131.45

4,561
3,695
78.21

3.2

96.53

4,733
100.11

40.5

40.3

38.8

38.8

37.5

0.6

2022

2018

2019

2020

2021

2022

2018

1,724
36.48

2021

2022

2018

2019

2020

2021

2019

Operating cash flow / Investing cash flow /Financing cash flow

EBITDA / Capital investment

Rate of ordinary income to total assets /Return on equity

Dividend per share / Payout ratio■ Operating CF (million yen) ■ Investing CF (million yen)

■ EBITDA (million yen)

● Rate of ordinary income to total assets (%)■ Dividend per share (yen) ● Payout ratio (%)■ Capital investment (million yen)

● Financing CF (million yen)

Operatingcash flow

5,567

million yen

E B I T DA

16,643

13,28016,643

8,945

7,991

5,567 6,676
2,923

966

1,291

869

(6,515)(9,602)20182019(6,034)2020

12,861
7,483(7,765)(8,106)2021

10,983
9,082

10,49811,084
9,515

Total CO 2 emissions (Scope1, 2, 3)

605,901t(653,434t in 2021)

79.5

6.5

6.5

5,573

4.0

2019

2020

2021

2022

2018

2019

6.6
4.4

3.1

2020

Please refer to the Society section (Actual solar panel power generation

2022

2,837MWh

3.8(2,010MWh in 2021)*Operation at factories in China (Shanghai and Dongguan),
Mexico, and Indonesia (Karawang).

2021

2022

30.0

29.0

28.0

31.0

35.8

2018

31.0

31.1

20.5
2019

2020

2021

2022

p.43) for detailed information on our initiatives in social issues.

Ratio of women in management
positions*
2022

27.0

7.5

3.0
2018

31.0%

Payout ratio

11.4(8,892)
2022

6.6 %

10,845

Non-financial data

2022

Return on equity

million yen● Return on equity (%)

32.2%(32.4% in 2021)

Ratio of local employees in management
positions*
2022

77.3%
(77.3% in 2021)*Management position: job level above the rank of a manager ineach consolidated company

8

9

Value Creation Story

Message from the Chairman

Knowing SIIX

Message from the Chairman

Value Creation Story

With printing ink as our starting point, we
opened the path to the EMS businessBusiness Overview

ESG

Financial Information

shrunk to just 1.4 trillion yen. When I was younger, myown thinking was that, even if we were able tomonopolize the entire printing ink market, the size of

SIIX’s starting point as a “global business organizer”

that business would still be limited to 2 trillion yen. I

lies in my beginning the business of exporting printing

thought that it would not be worth the challenge when

ink alone a few years after I joined Sakata Shokai Co.,the market size is so limited, and that it would be

Ltd. (now Sakata Inx Corporation) in 1952. This led the

difficult for management to share their dreams withcompany to boldly enter into other business areas. For

employees.

over 60 years since then, we have developed our

The spirit ofWith that thinking, I requested a transfer to thebusiness in the spirit of “The Benefits of Zero.” This isexport business and flew out into the world, even withthe belief that being empty-handed does not mean

my poor English abilities. At first, I spent dozens ofbeing incapable of action, rather, that it is a strengthdays traveling around Southeast Asia, calling onthat allows us to aim for the highest goal by thebusinesses without an appointment to sell them ourshortest route. During that time, we have overcome

printing ink. As I traveled through various countries, thevarious challenges, including fluctuations in the global

booming television manufacturing industry in theeconomy, and continued to grow, even as we were

Philippines caught my eye. At that time, there werebuffeted by the rough waves of intense competition.

already many TV production plants in the Philippines,

Something that I realized when I started sellingwhere televisions were manufactured using electronic

printing ink was that while printing something on paper

components brought in from the United States. This is“The Benefits of Zero”

may seem easy, it actually is not. The condition ofwhen I was inspired to export electronic components

printing ink varies subtly depending on temperaturefrom Japan. This is the starting point of SIIX as athat has underpinned

and humidity, requiring adjustments according to those“global business organizer” of today.

our development
Shiro Murai Chairman

conditions to ensure consistency of the finished printed

Sensing a business opportunity, I obtained approvalmaterials. The skill of the printing firm lies on how wellfrom my company to go to night school for six

they are able to handle this variable, namely themonths to learn about electric products, after which I

printing ink.

launched exports of electric components. As I threw

Having to sell such troublesome products was themyself into the new business with the same passion I

beginning of my life in business. Even before the term

engaged in ink sales, it gradually grew larger.

“EMS (Electronics Manufacturing Services)” existed,

Subsequently, in addition to electronic components,

we had been single-mindedly pursuing the value ofour product offerings expanded to include electronic

services that contributed to the development of themusical instruments, motorcycles, wire harnesses,

manufacturing business, from the perspectives ofand CFC gas.

meeting customer needs and increasing satisfaction.
While at a glance, printing ink and EMS may seem tohave nothing to do with each other, in my view, they
are similar in that they are processed with high quality

My mission is to instill the SIIX Principles
throughout the Groupthrough meticulous adjustment to suit the conditions,so they are by no means unconnected.

Among the various product areas that we have
explored, one area that has left an impression on me isthat of electronic musical instruments. Together with

Discovering business opportunities in thePhilippines during an overseas business trip

Mr. Ikutaro Kakehashi, the founder of Roland
Corporation, I participated in the establishment of anelectronic musical instruments manufacturing

When I started working, the global market for inks wascompany, Ace Electronic Industries, Inc. (a forerunnerabout 2 trillion yen. Today, however, that market hasof Roland Corporation). We grew this company to

10

11

Value Creation Story

Message from the Chairman

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

become, for a time, the world leader in the area of

casting the spotlight on the world’s key resources andelectronic musical instruments. Since our foundation,

pursuing their effective use” and set forth “Challenging,

we have grown our business significantly, with two

Speedy and Fair” as our corporate style. I believe it isprinciples as our unwavering driving forces. One is “Themy mission as chairman to share the same values andAbout ten years after it was founded, SIIX became

our steady development of these kinds of fields, we

Benefits of Zero,” which represents our spirit ofinstill the SIIX Principles throughout the entire Group.

fully engaged in EMS (Electronics Manufacturing

will strive to achieve the target of “Winning trust with

Services) in the field of automotive-related

the world’s number one quality and service,” as set

equipmentt. This was the golden age of mobile

forth in the medium-term business plan.

challenge and belief that being empty-handed actually
allows us to create something that has never been
existed before without restrictions. The other is thesense of relationship with the many people who havesupported SIIX until now. The electronic musicalEstablishing management foundations in
the Philippines while valuing relationships oftrust with people

Steady expansion of transactions with major
global companies

addition, new revenue opportunities are emerging at
SIIX, such as efforts to create a business inrechargeable batteries for power tools. In addition tophones, and the business was expanding rapidly. On

Without resting on our laurels, we will continue tothe other hand, global competition had intensified, so

take on the challenge of new possibilities by

we decided that we should not stay in the mobile

demonstrating the spirit of “The Benefits of Zero” andinstruments business conducted at Ace Electronic

I have always said that if you have a relationship thatphone business and decided to shift to other“We Care.” We will continue to evolve as a “global

Industries, Inc. was also born from such a relationshipis based on trust, you can break through almost

businesses. At the time, EMS was not the mainstream

business organizer,” with the aim of enhancing ourwith Mr. Ikutaro Kakehashi. Although he was prone toanything. I believe that the true reason for ourenterprise in the automotive-related equipment sector,

corporate value by “contributing to all stakeholders

illness, he is famous for developing the Musicalexistence is to build relationships of trust not only with

but we focused on the possibility that the shift ofand giving them a sense of affinity,” as stated in our

Instrument Digital Interface (MIDI), a common standard

our customers but also with all our stakeholders.

client companies to overseas production would be a

corporate philosophy.

for electronic music. Moreover, he expanded theIt was one such relationship of trust with people

tailwind for EMS, and we developed a production

Today, with SIIX employees actively working around

potential of electronic music by making MIDI publiclythat led me to engage in the motorcycle business inframework by making our production base in Thailand

the world, we will plant firm roots in various parts ofavailable, instead of monopolizing it. Such an attitude

the Philippines. Focusing on the potential ofa wholly-owned subsidiary. Today, the Thai factory,

the world and contribute to the development ofof coexistence and co-prosperity mirrors precisely the

motorcycles as a means of daily life, I set up awhich has more than 2,000 employees, has become

various regions as well as Japan. To this end, we will

management policy of “We Care” that is still cherishedmotorcycle business in the Philippines with myour company’s flagship factory, and business withestablish business foundations for the next

by SIIX. Embodied in this policy is the hope thatbusiness partner, Mr. Jesus V. del Rosario (“Mr. J”), a

major global companies in the automotive-related

generation, on which we will continue to maintaineveryone involved in our business will be happy.

leading entrepreneur in the Philippines who laterequipment sector is steadily expanding in other parts

stable business performance and return profits toSomething that I have held dear alongside this policy

became a lifelong friend, and we started exportingof the world, as well as Thailand.

shareholders and investors. We look forward to youris the idea that true management means removing andquality Japanese motorcycles to the Philippines.

Given that cars need to be able to drive in a varietyof environments, there are numerous restrictions ontranscending constraints. What I mean by this is thatAt the time, motorcycle taxis and motorcycles withthe job of management is none other than to remove

sidecars were a common mode of transportation in

the components used in them, making manufacturing

all impediments to business growth. I have held thisthe Philippines. We helped people who wanted to buy

those components no easy task. However, the moreidea as our unchanged policy since I established SIIX.

motorcycles to start their own business, by providing

constraints there are, the more opportunities we have

For example, transcending product boundaries andthem with loans to buy them. I remember devoting

to exercise our spirit of “We Care,” so I believe thatstepping forward into new fields. Transcending national

myself to the motorcycle business in the belief that

this is exactly the kind of business we should be in. In

borders and opening up new markets and production

our “We Care” spirit entails not simply selling athis respect, it is similar to the point I made at theregions. Recruiting new people, growing them, andmotorcycle, but also making the person who bought

beginning that printing on paper with ink requires

putting them to use. I have always believed that theseand uses it happy.

subtle adjustments.

are the jobs of management, and that is what I have

Later, SIIX, Mr. J, and a Japanese company

In addition to EMS in the automotive-related

practiced to date. Now that SIIX is operating

established a joint venture company in the motorcycle

equipment sector, one area that SIIX needs tobusinesses around the world, this is precisely the timebusiness. This company is still our business partner indevelop is EMS in the medical devices sector. We

for us to detect the issues of our current situation and

the Philippines. Mr. J and I built a solid relationship ofhope to draw on the experience, technology andpursue our goal of being a corporate group that shares

trust through our involvement in various otherknow-how that we have acquired in the field ofa spirit of effecting change with our own hands.

businesses besides the motorcycle business. Today,

automotive-related equipment and enter this sector.

The SIIX Principles, our corporate philosophy, is a

his son has taken over the operating company, but

SIIX currently ranks among the top in Japan and 17th

compilation of the universal beliefs held at SIIX. It is ourthat relationship of trust extends to the entire family

in the global rankings in the EMS sector. If we look atbasic philosophy for the conduct of corporate activities

and remains unchanged, creating the foundations forthe businesses of the top 10 companies, medical-

by all officers and employees. In the SIIX Principles, we

our management today.

related business accounts for a certain portion of theirdeclare that “We contribute to the activation of thebusiness portfolios. This also points to our need tosocial system and the progress of humankind by

develop EMS in the medical sector no matter what. In

continued support for SIIX Corporation, and we
sincerely appreciate your ongoing support,

12

13

Value Creation Story

Value Creation Process

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

Value Creation Process
Social issues
Geopolitical risks

Abnormal weather

Measures against
climate change

Loss ofbiodiversity
Environmental
destruction
by humans
Natural resources
crisisMateriality

Managerial resources (INPUT)

1

Human capital

Adapt products andservices to socialchangesGlobal and diverse
human capital who
can engage in businessacross the world

Organization

2
Achieve a sustainableglobal environment(decarbonized society,recycle-oriented society)

Strong governance

Production systemthat can respond to
all types of needs

Finance

Decrease inworking population

Financial foundationand investment toachieve value creation

Social division

Manage talented
and diverse humancapitalLivelihood crisis

Spread ofinfectious diseases

4

Changes in customer
needs due tosocial changes

Build a strong
governance system

Supply chain
management

Information
Customer and sales
networks established
as a trading
company “Trust”

Intellectual property
New plans andtechnologies based oncooperation withtechnology partners

Social value (OUTCOME)

OUTPUT

Social issues being
addressed throughbusiness activities

1

Contribution toeconomicdevelopment throughbusiness activities

2

Environmental
conservation inbusiness activities

3

Creation of aworkplace withhigh levels ofjob satisfaction

4

Creation ofsustainablecorporate value

Medium-term businessplan goals, initiatives,and progress

Businessorganizing

Medium-Term Business Plan
P.19

Producing the best
added value by
understandingneeds andcombiningseeds aroundthe world

SpiritWe care.

Manufacturing

Human rights
issues3Competence

SIIX Principles
Guidelines for action

Make an !mpact

Active use of
globalnetwork
EMS, trading,design anddevelopment,
procurement,
assembly andproduction,
logistics

Product andservice fields
Automotive-related
equipment;
industrial equipment;
home appliances;
information devices; others
Business Overview

Discovery,
creation, and active
use of new
resources

Shedding light onunknown resourcesand expanding new
possibilities

Strengthen managementfoundation and governanceCorporate philosophy “Corporate Ideals”

P.25

Social issues being
addressed throughoverall corporate activities
・Measures against climatechange・Human rights, occupational
health and safety
・Diversity management
・Risk management
Environmental (E), Social (S),and Governance (G)
P.29

14

15

Value Creation Story

Message from the President

Knowing SIIX

Message from the President

Value Creation Story

Business Overview

ESG

Financial Information

operating gradually increased, until ultimately, over 500

wave caused by the United States’ preferential policy.

staff, about half of the Shanghai Factory’s total

In China as well, in consideration of their requirements

workforce, were sleeping at the factory and engaging

and the cost, many customers want China-madein the manufacture of components. When I

xEVs. I am somewhat concerned that suchencountered this vision of our employees during thedevelopments are taking place in the world’s largest

pandemic, as well as feeling great appreciation for theirmarkets.

passion and sense of responsibility toward their own

Looking beyond thecurrent times, we will strive
to enhance corporate value
through the creation ofbusiness opportunities
worldwide.

work, I gained a real sense of the strength of the SIIX
Group. There are many aspects concerning how to
fulfill our mission of stable supply of components thatcannot be conveyed in a manual. In that respect, I was

I will now move onto the future growth area of battery-struck anew by how truly strong our organization is inrelated businesses. Currently, we procure components

having overcome such an emergency.

from Japanese and Chinese battery manufacturers,
which we assemble in the Philippines for supply all

Business performance growth receives astrong boost from the tailwind of the “xEV
shift”

With our organizational structure that isable to respond agilely to any situation as
our strength

battery module production line in Batam, Indonesia.
There, our Indonesian automation development teamis playing the central role in automating the battery
module production line to enable cost-effective mass

has trended in line with our initial forecasts. Having

production.
Going forward, we will take the automation know-

economic conditions, with Asia and North America

how introduced in Indonesia and incorporate it in ourdoing well, while the situation in China remains

production lines in the Philippines. Then, once we haveunfavorable.

raised in-house proficiency levels for the use of that

If we look at market developments by sector, ourgoods in the required quantities at the required time.

over the world. In addition, in 2022, we started up a

In the first quarter of FY2023 as well, our performance
said that, there are some regional variations in

Koji Yanase President

Launch of a battery module production line
in a SIIX-original global response

know-how in mass production, we plan to introduce it

perception is that the “xEV (a collective term for electricin Mexico as well. At that time, our Indonesianvehicles) shift” will progress even further. Even just inengineers will also come along to Mexico to help iron

Europe, xEV-related orders are on the rise and arrivingout any defects, while the responsible staff from theat the same time, and we are having trouble dealing

Philippines will be in charge of operations. This kind ofwith all demand instantaneously. In addition,

arrangement is unique to our company. Ourtransactions with European manufacturers are starting

outstanding Filipino staff will spend one to two years in

one after the other, and the need for EMS (Electronics

Mexico as teachers to get the production line at the

Manufacturing Services) is only increasing. Global

Mexico Factory up and running.

In March 2023, when the senior manager of thedemand for ECU (electronic control units) alone, whichpurchasing department of one of our customers was

was 14-15 trillion yen in 2022, is forecast to reach the2023, we integrated the management of our threeabout to retire, he actually took the trouble to call on

vicinity of 35 trillion yen in 2035. As demand for motors

companies in the Philippines, namely the EMS plant,

Firstly, in terms of the status of our endeavors during

us personally. During that visit, he kindly praised SIIX

and batteries is also expected to increase in

SIIX EMS PHILIPPINES, the electronic components

FY2022, although we faced various headwinds in thefor being the only one of their suppliers not to stop its

conjunction with ECUs, we expect net sales to growsales company, SIIX Logistics PHILIPPINES, and theexternal environment, such as the COVID-19

production lines during the Shanghai lockdown, saying,by close to 20% per year.

plastic molding plant, SIIX COXON PRECISION PHILS.

lockdowns in Shanghai, China and the situation in“That’s an incredible thing!” In fact, during theOn the other hand, in the United States, there has

By removing any areas of duplication while retaining

Ukraine, we were able to exceed our published targets

lockdown, with strict movement restrictions in place,

been a change in policy in favor of xEV, which means

the respective functions of the three companies, wein our business performance. As the businessonly a limited number of people were permitted tothat we need to identify what will happen withhave laid the groundwork for further growth. The

environment changes at a bewildering pace, the stableenter the Shanghai Factory. These few employees,

Japanese automobiles. The Japanese manufacturers

merged company has a human capital development

supply of components worldwide has become an

including a woman with a child who volunteered

are, of course, ambitious about xEVs, and a growing

department, and in addition to dispatching engineers

increasingly important mission for the SIIX Group. I

herself, took emergency action to ensure that the

number of our orders from them are being brought

who have been trained there to Mexico and Hungary,believe that strengthening our organizational structure

factory would not stop operating. During theforward. While it seems as though we have been

we also plan to dispatch other workers in future.

that is able to respond agilely to any situation over theapproximately two-month period of the lockdown, theissued with a great command, the reality is that they

past three years has enabled us to deliver the required

number of staff who slept at the factory to keep it

have not necessarily been able to stay on top of the

To promote this kind of global expansion, in January

16

17

Value Creation Story

Message from the President

Steadily expanding business with major
global companies steadily expanding

Knowing SIIX

Value Creation Story

billion yen. Things have progressed smoothly in the firstbases by 2022. We also expect to achieve the samequarter of FY2023, so we believe that these figures are

milestone at all our Japanese bases from 2023

reasonably achievable. One factor of uncertainty is

onward. We are also considering a variety of actions in

In terms of the expansion of business with major global

automobile sales trends in China. While the Asian andother regions, such as installing solar panels andcompanies, which is one of the major goals in the

the United States markets are performing well overall,promoting the use of renewable energy.

medium-term business plan, my sense is that customers

monetary tightening policies in the United States areare choosing the SIIX Group for the value that having

another cause for concern.

In addition to reducing CO2 emissions throughBusiness Overview

ESG

Financial Information

Sowing the seeds for businesses that willbring further growth in our medium-termbusiness plan
Over the past three years, the SIIX Group has weathered
adversity, including the COVID-19 pandemic. From 2023

renewable energy use, we will also offset our emissions

onward, as the pandemic subsides, I believe that we will

locations around the world offers. As such, the volume

Our biggest challenge in terms of securing profits iswith the use of non-fossil certificates, beginning withhave more opportunities to talk business with customersof business is steadily expanding. Within that trend,

the operational efficiency of our production lines. It willthose purchased for FY2022. In recent years, we haveface-to-face, and our operational efficiency will increase.

there are increasing moves among customers in Tier 1

all depend on how much we can raise the efficiency of

been receiving many requests from customers about

Overseas, these kinds of interactions have alreadyof the automotive industry to abandon in-houseall 190 lines. After falling into situations of frequent

ascertaining CO2 emissions and promoting reduction

increased sharply, including with customers, suppliers, andproduction of components, which is resulting in a rise instoppages of lines due to component shortages overactivities. In particular, we have had cases in which

our own bases. I am hoping that, in Japan as well, we will

the number of orders received by SIIX. In addition, there

the past three years, things are finally starting to return

European customers have asked us to submit data on

be able to take our organization, which had become rigid

is also a trend that could be described as Tier 1.5,

to normal, leading to improvements in operation rates,

how many grams of CO2 per product is emitted in ourwhile we were unable to have face-to-face meetings, andwhich involves manufacturing components that thewhich I view as a positive.

product manufacturing processes at the quotation

unite Tokyo, Osaka and Nagoya to reinvigorate thestage. By using the aforementioned non-fossilorganization as “ONE JAPAN.” We will also hold our Group-delivering them directly to those customers. In fact, in

namely xEV onboard chargers, battery sensors, andcertificates to offset our CO2 emissions, we arewide strategic conference overseas in the Philippines in

our transactions with a certain complete automotive

inverters, in FY2023, and we expect these to contributescheduled to reduce our Scope 2 emissions by at least

July, after being unable to hold it during the pandemic. As

manufacturer, the SIIX Group has received awards fromto our business performance. In addition, after the

95% compared with the previous year and to achieve

the senior managers from our different bases, boththe customer for our initiatives and quality, which has

recent shortages of batteries and semiconductors, wezero emissions after 2023. This is undoubtedly

Japanese and local staff, come together under one roof togiven us a further boost in morale.

now have prospects for their production, so we believe

something that distinguishes us from our competitors.

hold strategic meetings, individual meetings, and social

We believe that we will see an increase in transactions

that these sectors will also perform well in FY2023.

This point is a major advantage in the expansion of ourgatherings, we will be able to strengthen our bonds of unity.

with Tier 1 customers in China, with whom transactions

In terms of the situation at our global production

complete automotive manufacturers have designed andWe will have multiple launches of core components,

business.
Regarding the “S” (social) part of ESG, to redress ourIf we look out over the global market, while there areconcerns about an economic downturn, the fundamentals

have previously been limited. The area of CAV

bases, the first stage of construction to extend the Thai(connected and autonomous driving)-related parts looks

Factory was completed in May 2023, and we expect

failure to approach human capital management in aof the electronics sector in which we operate will remain

particularly promising. Some advanced initiatives arethat it will become a receptacle for new business. In

systematic way so far, the entire company will startstrong in the long term. While a sudden, dramatic leap may

already underway, which should turn into new businessIndonesia, extension works were completed in 2021,

studying the issues again from scratch. Also, in

be difficult, we will work hard to ensure that our figures rise

opportunities.

and demand for automotive components is robust.

response to the lack of sufficient progress in Japan

steadily and surely. Also, given the fact that many new

Furthermore, in addition to plans to proceed with theregarding the active involvement of women in thebusinesses have emerged as extensions of our existing

expecting growth in the HVAC sector, which includes air

extension of the Mexico factory, we have also alreadyworkplace, we have welcomed one female directorbusinesses, we will respond to your expectations byconditioners, given the increased emphasis on

secured land in Europe to extend our factory there. In

and one female external audit & supervisory board

sowing the seeds of businesses that will bring further

countermeasures to global warming. We have dealings

China, meanwhile, we have secured floor space totaling

member to our executive management team. We will

growth during the period of our next medium-term businesswith HVAC manufacturers in China, Thailand, and other

70,000 m2 in Hubei, and discussions are proceeding

use this as momentum to create an environment inplan. We look forward to the support of our stakeholders

countries, primarily Japanese companies. With the shift

with customers with a view to the future. Just as thewhich women will be able to work for a long time. As

for SIIX Corporation.

to inverters for HVAC equipment against a backgrounddescription of automotive parts manufacture as apart of this initiative, we have introduced a hybridof decarbonization needs and soaring power bills, wespace-intensive industry implies, it means everything forworking style that combines remote work andhave determined that this sector will grow into a large

our customers that we have room to expand ourcommuting to the workplace, to enable employees

market.

premises, and this aspect is a strength of SIIX, in thatwith children to work in a manner that suits their life

we are well able to expand our business.

stage and home environment.

As production lines start to return to normal,
contribution to improved earnings isanticipatedAchievement of carbon neutrality will
distinguish SIIX from its competitors

ESG, we are pursuing initiatives in line with the

In terms of projections as we moved into the final year of

Next, I will discuss the current status of ESG and ourrisks in each country and make the issues visible. We

our medium-term business plan, we decided to upgrade

initiatives in this area. Firstly, regarding “E”

plan to hold meetings once every quarter to discuss

our consolidated net sales target from the initial 250.0(environment), by promoting the use of natural

the current status of initiatives and identify issues, withbillion yen to 300.0 billion yen and our consolidated

renewable energies at each location, we achieved

the intention of taking appropriate action.

operating income target from 10.5 billion yen to 11.3

100% use of renewable energy at our three European

Further, beyond the automotive sector, we are

In terms of the “G” (Corporate Governance) part ofCorporate Governance Code. Meanwhile, with theprogress of globalization, we are working to identify the

18

19

Value Creation Story

Reflection of 2022, the 2nd Year of the Medium-Term Business Plan (2021-2023)

Knowing SIIX

Our Vision

Value Creation Story

Business Overview

Financial Information

Results in FY2022 and progress of the Medium-Term Business Plan

Continue to provide merit to the world as a Business Organizer

Goals

KPIs

Pursue the effective use of the world’s resources
Effective use of existing resources
Global network
One-stop solutions＋

Expandingbusiness withmajor global
companies

Discovery, creation, and active
use of new resources(collaboration with technology partners)

Reflection of 2022, the 2nd Year of the Medium-Term Business Plan (2021-2023)

Numerical Targets (2023)

Results/performance and future initiatives

Expansion oftransactions with
non-Japanesecustomers

25% of consolidated
net sales

Sales to non-Japanese customers as a percentage ofconsolidated net sales: 15.3% (as of FY2022)
Steady progress in mass production in business with
non-Japanese customers, primarily in Europe.
Progress in roll-out of business with non-Japanesecustomers in multiple regions and increase in businesstalks with new customers for future transactions

Strengthening
alliances withtechnology partners

Consolidated net
sales 5.0 billion yen

While targets were met in 2021, orders for
Singapore government have subsided, falling
below the previous year’s level.

Businessdevelopment in the
medical field

Consolidated net
sales 5.0 billion yen

Results only slightly up on previous year due toimpact of COVID-19 pandemic. Aim for expansionof transactions on a global scale by focusing efforts
on development of new products going forward.

Strengthening of
non-commodity sector(automotive + industrial
equipment)

85% of consolidated
net sales

Ratio of sales in non-commodity sector: 79.0%(as of FY2022)
Low sales to some customers due to impact of
COVID-19 pandemic, but sales were up on theprevious year overall. Increasing steadily toward
85% target.

Expansion of
CASE-relatedtransactions

Consolidated net
sales 35.0 billion yen

Business with European customers in particularexpanding steadily in all parts of the world. In addition
to progressing roll-out in multiple areas, responding toincreased EV-related orders in China area.

Expansion ofbattery-relatedtransactions

Consolidated net
sales 10.0 billion yen

Steady increase in business of assembly of battery
packs for power tools. Circuit board mounting
business for battery peripherals also increasing in
automotive-related equipment sector. Businesstalks also ongoing in areas of portable equipment,
medical devices, and mobility.

Improving the ratio of
local employees inmanagement positions

Local employees inmanagement positions
as a percentage of
all managers: 80%

Local employees in management positions as apercentage of all managers: 77.3% (as of FY2022)
Progress being made in active participation in
management by local executives, particularly inSoutheast Asia and China areas.

Improving the ratio of
women in management
positions

Women in management
positions as apercentage of all
managers: 50%

Women in management positions as a percentage of all
managers: 32.2% (as of FY2022)
Progress being made in promotion of women to
management, with three women in management positions
appointed as executive officers, including one director and
one factory manager of the local production base.

In February 2021, the SIIX Group announced a three-year Medium-Term Business Plan (2021-2023) ending FY2023.
These pages present the policies and goals of this medium-term business plan and the outcomes and progress made in
the plan’s second year (FY2022).

Performance targets for the final year (FY2023)
Consolidated
net sales

ESG

250.0 billion yen

Consolidated
operating income

10.5 billion yen(operating income margin 4.2%)

Contribution toa decarbonizedsociety throughbusinesses

Exchange rate
USD: 103 yen

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

Business performance trends■ Net sales (million yen)

Consolidated
operating income● Operating income (million yen)

11,300 million yen

300,000

Consolidated
operating income

10,500 million yen

9,705

250,000

8,913

9,134

12,00010,000

8,929
8,625

200,000

Promotion ofdiversity
management

8,000

6,233
150,000

6,000

Consolidated
net sales

5,506
100,000

4,452

50,000181,598

Non-commodity ratio

300,000 million yen

4,954

Consolidated
net sales

4,000

250,000 million yen
209,755

235,035

212,768

233,153

242,804

223,037

226,833■ Automotive-related equipment ■ Industrial equipment■ Information devices ■ Other (billion yen)
300.0

2,000

277,031

250.0
0

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Financial forecasts(Announced in Feb. 2023)
Assumed exchange rate2023
Medium-TermBusiness
Plan's target

USD: 127yen●

Net sales in 2022 exceeded the Medium-Term Business Plan target●

Net sales and operating income in 2023 are both planned to exceed the Medium-Term Business Plan target

200.0

14.3
（6.3％）
20.5（9.1％）
22.7（10.0％）

150.0

41.8
（18.5％）

226.8

0

277.0

6.6
（2.2％）
24.8（8.3％）
27.9（9.3％）

Non-commodity sector:
Automotive-related equipment
and industrial equipment sectors

300.0

54.2
（18.1％）

56.2（20.3％）

Non-commodity
sector

100.0
50.0

3.8
（1.4％）
27.0（9.8％）
27.4（9.9％）■ Home appliances

186.5（62.2％）

162.5（58.7％）

127.3（56.1％）

2021

2022

2023 (forecast)

85％

As these products’ characteristics
call for extremely high productquality, the barriers to entry tothese sectors are relatively high,and they are not easily exposed toenvironments dominated by costcompetition. Leveraging theexperience, global networks, andhigh product quality we havecultivated over the years to build
relationships of trust with ourcustomers, we will focus our efforts
on expanding our business in
non-commodity sectors.

20

21

Value Creation Story

Message from the Chief Accounting Officer

Knowing SIIX

Message from the Chief Accounting Officer

We will further strengthen our financial strategy to achieve
record-high profit for the first time in six years.
Seiji Ono

Director & Executive Officer
General Manager, Finance & Accounting Department

operating rates due to shortages of semiconductors
and other electric components caused by turmoil inthe supply chain.
In terms of the impact of the pandemic, werecorded extraordinary losses, primarily due to thesuspension of factory operations during the
lockdown in Shanghai, China. We estimate the lossof sales opportunity caused by this impact to beapproximately 1 billion yen in marginal profit. For
these reasons, in our final business results in Greater
China and Europe, profit was down compared withthe previous fiscal year.
In the Americas, meanwhile, as a result of a steady
expansion in production scale at the Mexico Factory,
focusing on the automotive-related business, bothsales and operating income increased. Steady
performances in both southeast Asia and Japan also
contributed to the results. Although there was somevariation in results by region, our upfront investment

Mexico Factory’s performance expands
after completion of upfront investment
In FY2022, our business costs, such as energyrelated costs and logistics costs, rose significantly
globally, including Europe and China, due to thestrategy over the past several years has paid off,
leading to increases in both revenue and profit.

Reducing inventories to appropriate levels
is a priority

prolonged impact of the COVID-19 pandemic andAs our financial strategy in FY2022, we worked togeopolitical risks caused by the protraction offurther strengthen our financing capabilities to

Russia’s invasion of Ukraine. In the United States, thesecure funds for future growth.

economic slowdown has become apparent due to

Our immediate tasks in terms of finance are tohigh inflation and policy interest rate hikes. In thisreduce the accumulated inventories in theeconomic environment, our net sales increased

automotive-related business to appropriate levels

steadily, partly supported by the impact of revenue

and to strengthen cash flow generation fromincreases resulting from the depreciation of Japanese

operating activities in preparation for futureyen. On the cost front, on the other hand, labor,

investment. In this regard, there are strong demands

utilities, logistics, and other costs increased by afrom customers to secure safety stock andgreater extent than we had envisaged. Many othermaintenance parts, something that is unique to thenegative factors also adversely affected revenue,

automotive industry. Another major factor is the

such as the significant deterioration of factory

continued downswing in the volume of firm orders

Value Creation Storyfor finished products from customers compared withinitially planned order volumes amid the severe

Business Overview

ESG

Financial Information

Acceleration of initiatives to reduce total
assets and improve earning capacity

procurement environment caused by shortages ofsemiconductors and other components. In light ofRegarding business performance in FY2023, boththe additional working capital and storage costs

the automotive-related and industrial equipment

related to these increases in inventories, we aresectors performed strongly in the first quarter, andtaking various measures through negotiations with

we anticipate that figures for both net sales andcustomers, such as asking for payments in advance,

operating income for the year will be according topassing inventory costs on to transaction prices,plan. In particular, in the industrial equipment sector,

and charging for interest that has actually accrued.

the stronger than expected performance of theWe also integrated three local subsidiaries in thebattery business in the Philippines is cause for hope.

Philippines into one company that will serve as a

Through these kinds of initiatives, we forecast thatsingle stock point. This will enable us to make

operating income in the fiscal year ending December

significant reductions in inventories that had

31, 2023 will reach a new record high for the firstpreviously been held by these companies

time in six years.

individually. Further, in terms of future initiatives inOn the other hand, given the significant increase inGreater China, we will consider having a single

interest rates, we believe that there are many issues

company conduct centralized purchasing ofthat we need to address to reduce total assets andcomponents used in production at all three factories.

finance costs. One challenge in the new medium-

This will reduce the number of stock points, resulting

term business plan that will start next fiscal year willin the reduction of inventories, and allow us to

be to consider and act on the state of financing andpursue volume discounts. In this regard, having

optimal investment with an emphasis on capital

introduced an ERP package at our base incosts.

Dongguan, China, we are now able to ascertain

For the fiscal year ending December 31, 2023, weinventory volumes in real time, which we believe will

expect consolidated net sales of 300.0 billion yen

make it possible to manage inventories to keep themand consolidated operating income of 11.3 billion

at appropriate levels.

yen. While we will need to pay attention to exchange

Our capital investments in FY2022 amounted torate trends, as a mid-way point, net sales andapproximately 10.8 billion yen, and we are planning

operating income are both epoch-making figures,investments of approximately 12.5 billion yen in

and we will work hard, united as a Group, to ensure

FY2023. Most of these investments are forthat we achieve these figures this fiscal year, the final

manufacturing facilities. As orders from customers

year of the current medium-term business plan.

continue to increase, we will strive to enhance

Finally, in terms of shareholder returns, we forecast a

production capacity by strengthening production

consolidated payout ratio of 19.7% and a dividend

capabilities and updating our machinery.

per share of 32 yen. This will be our 17th dividend

If I may briefly mention environmentall investments,
we will work to reduce CO2 emissions by various

increase in as many years.
Going forward, here in the SIIX Group, businesses

initiatives, such as the installation of solar panels onthat serve as growth drivers will emerge one after

the premises of individual manufacturing bases toanother. I believe that it is crucial that we allocate

cover a portion of electricity consumption, themanagement resources efficiently to these

improvement of the ratio of renewable energy use,businesses. At the same time, we will also proceed

and the purchase of carbon credits. From thewith the further strengthening of our financial

financial aspect, I believe that investment in labor-

structure. In this regard, I would like to express mysaving equipment is important for the enhancement

sincere gratitude for your continued support from allof earning capacity.

of our stakeholders in the future.

22

23

Business Overview

Value Chain

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

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

Stock control and logistics (Trading)Planning and proposal

We support customers’ inventory management with alogistics menu that includes kitting, which delivers kitsof necessary components specific to eachmanufacturing lot; Vendor Managed Inventory (VMI);
and Just In Time (JIT).

When customers request for or consult with us
about materials procurement or manufacturingcontracts, we propose services with high added
value, such as replacement with cost-competitive
components.

Materials procurement

Strengths

Global production and sales systems● Strong relationships of trust with major electronic
components manufacturers●

JDM（Joint Design Manufacturing)
Development and design
By cooperating with technology partnercompanies that have cutting-edge development
and design capabilities, we, as a “global businessorganizer,” propose new plans and technologies
and support our customers’ product creationneeds.

ReceiveordersFinalize
specifications

Strengths

Collaboration with technology partners in various
countries around the world● Coverage of various fields including opticalcomponents and sensors, communications and
IoT, robotics, raw materials and other materials,
energy management● New technology using conductive inks and IH
reflow technology, which makes it possible tomount electronic components on a range ofmaterials previously unfeasible (Chemitronics)●

IssuesTaking advantage of theexperience and networks of a
trading company handlingelectronic components for morethan 60 years, we procure allnecessary electronic components
on behalf of our customers’purchasing departments.

Strengths●

Long years of experience inhandling electronic
components● Strong relationships of trustwith major electronic
components manufacturers● Strong purchasing power forJapanese components● Materials procurement function
for circuit board mounting
instead of just procurement asa trading company (factory
procurement)

TRADING
Approx.

15%

EMS
Approx.

85%

Circuit board mounting and assembly (EMS)
Based on our mounting experience in diverse
business fields, we offer high-quality circuit board
mounted products to our customers.

Strengths●

Materials management service in various
countries around the world

Value provision

Strengths

High-quality, high precision mounting capabilities at
global bases● Factory area with adequate room for expansion (canbe expanded from the current 190 lines to 300 lines)● Provision of services to customers in diverse
business fields by focusing on versatility●

Plastic molding (Molding)

Breakdown of
net sales(at the end of FY2022)

We provide a one-stop
service including materials
procurement and logistics.

We have added plastic molding functions to existing
EMS plants, so that we can deliver more complex andmodularized products to reduce logistics costs borneby customers.
Strengths●

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

Responses●

Enhancement of handling of European and Americancomponents, cultivation of customers in the medical field

We have been advancing relevant activities in relation to “expanding business with major global companies,” one of the goals in the medium-term business plan. As we work toward
identical quality worldwide and strengthen BCP response, we have expanded transactions with both Japanese and non-Japanese customers, especially major Tier 1 (primary) suppliers in
Europe. In the medical field, we collaborate with technology partners to develop solutions that are useful on the frontline of medical practice.

●

Further improvement in mounting quality and precision,
expansion of the scope of information shared between bases

Since 2020, all bases across the world have been using a company-wide cloud system called the Siix Manufacturing Platform System (SMAPS). SMAPS enables us to share in real time,with all bases, not only information on quality, manufacturing technologies, and facilities but also human resource development and other materials. Sharing various kinds of information witha company-wide support system has contributed to the promotion of BCP response, and we will continue to operate and develop the system.

●

Work reform to reduce inventory, enhancement of stock
management in real time

To reduce inventories to an optimal level, we ask for our suppliers’ cooperation in adopting the consignment inventory method to manage inventories. Other measures taken include having
our customers guarantee the collection of products that cannot be shipped due to circumstances on their side. Meanwhile, we have introduced SAP’s ERP system, which allows us to grasp
real-time trends of inventories and capital worldwide. We will optimize inventories through visualization of financial status and prediction of demand.

●

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

We also focus on Joint Design Manufacturing (JDM) to achieve our vision of becoming a “global business organizer,” who continues to provide new value by connecting the various needs
and seeds that exist around the world. By cooperating with technology partners that have cutting-edge development and design capabilities, we propose new plans and technologies andsupport our customers’ product creation needs.

24

25

Business Overview

Automotive equipment / Industrial equipment

Knowing SIIX

Business Overview
31st term

Value Creation Story

Business Overview

ESG

Financial Information

Other

Information devices

27,018 million yen 9.8 %

3,841 million yen 1.4 %Home appliances

December 2022

27,411 million yen 9.9 %Composition of sales

Net sales

277,031million yen

Net sales

277,031

million yen

Industrial equipment

56,240 million yen 20.3 %Operating income

8,929 million yen

Automotive-related equipment

162,522 million yen 58.7%

Automotive-related
equipment

Profit attributable to owners of parent

4,733 million yen(million yen)

162,522
127,317

98,359Overview
The lingering impact of the COVID-19 pandemic fromthe previous fiscal year affected our businessperformance significantly. For example, we wereforced to suspend factory operations for one and ahalf months due to the Shanghai lockdown. In
addition, the prolonged supply shortage of electronic
components has affected our customers’ productionplans, expediting a rise in our inventory levels. We

maintained strong performance mainly in theautomotive-related equipment business in the ASEAN
and Americas areas. As a result, our consolidated net
sales amounted to 277.0 billion yen, a year-on-yearincrease of 50.1 billion yen, and consolidated
operating income amounted to 8.9 billion yen, a
year-on-year increase of 2.4 billion yen.

Issues and countermeasures
As we trade with customers from various businessfields in different areas of the world, the number ofcustomers trading in multiple areas at the same timeis increasing. Products and services provided arethus required to have the same quality even if thearea or factory is different. We will support the global
development needs of our customers promptly andprecisely by making use of cloud services to shareproduction know-how, quality information, etc. in realtime within the SIIX Group. In addition, we will
endeavor to expand our business from customers
based on our abundant capacity at global sites andour local response capabilities.
Our medium-term business plan aims for the
expansion of business with non-Japanesecustomers, the expansion of the EMS business,
which is our current mainstay business, and thecollaboration with our technology partners to supply
customers with products from around the world.
We will also actively expand our participation inbusinesses in the fields of IoT and CASE, based on
the perspective of contributing to decarbonizedsociety through our businesses.
In addition, we intend to promote “local production
for local consumption” to rein in the costs, while wewill fully and globally leverage the BCP know-howthat we have cultivated so far and offer services thatmeet our customers’ needs, such as proposing
diversification of production sites as part of ourcustomers’ BCPs to cope with contingencies.

2020

2021

2022

Automotive electronic components(automotive exteriors, meters, ECU,
switches, quasi-millimeter wave
radars, ABS, cameras, battery
sensors, etc.), car multimedia, etc.

Sales of most products increased from the previous fiscal
year, recovering from the COVID-19 pandemic. Sales of someproducts, however, decreased year on year due to the
production adjustment caused by electronic component
shortages taking place since the end of the previous fiscal
year. As a result, overall sales of automotive-related
equipment increased by 35.2 billion yen to 162.5 billion yen
compared to the previous fiscal year.

Industrial equipment
56,240(million yen)

34,533

2020

41,8502021

2022

Engine ignition device for power
tools, battery packs, Inflightentertainments, inverters, medical
devices, smart meters, industrial
sewing machines, etc.

Although production and sales of IoT equipment for governmentorganizations declined as the COVID-19 pandemic subsided,
sales of components for inflight entertainment increased from theprevious fiscal year due to a recovery in demand for aircraft. In
addition, sales of power tools, industrial sewing machines, Coin
acceptor, etc. remained robust. As a result, overall sales ofindustrial equipment increased by 14.4 billion yen 56.2 billion yen
compared to the previous fiscal year.

26

27

Business Overview

Home appliances / Information devices / Other

Knowing SIIX

Home appliances

Value Creation Story

Business Overview

ESG

Financial Information

Composition ratio of business fields in each segment(million yen)

22,93022,782

Industrial
equipment

27,411

Information
devices

Others

2%

22%

2021

2022

Digital appliances, air conditioners,
refrigerators, educational toys,
healthcare equipment, electronic
musical instruments, etc.

Homeappliances

15,815 million yen

Industrial
equipment

China

11%

Net sales

Sales of kitchen appliances, electronic locks, educational toys,
and air conditioners were strong compared to the previous
fiscal year. As a result, overall sales of home appliances
increased by 4.6 billion yen to 27.4 billion yen compared to theprevious fiscal year.

1%

7%

Europe2020

OthersIndustrial
equipment

Americas
Automotive-related
equipment

23%

76%

2%

3%

Net sales

74,937 million yen
Automotive-related
equipment

Others

Net sales

48,915 million yen

58%

Automotive-related
equipment

95%

Information
devices1%

25%

Information devices

15%(million yen)

16,318Home
appliances

ASEAN

2021

12%
Automotive-related
equipment

10%
2020

Home
appliances

Net sales

Industrial
equipment

Others1%

1%86,397 million yen

27,01820,565

Information
devices

OthersJapan
Net sales

50,559 million yen

Industrial
equipment

Automotive-related
equipment

50%

49%

36%

2022

Office equipment, OA equipment,
projectors, etc.

Shipments of office equipment were strong. As a result, overallsales of information devices increased by 6.5 billion yen to
27.0 billion yen compared to the previous fiscal year.

Net sales trends by business field(billion yen)
300.0

■ Automotive-related equipment■ Industrial equipment■ Home appliances ■ Information devices■ Communication equipment ■ General electronic components
250.0

235.0

Other

207.0
190.6

200.0
(million yen)

166.4

14,320
150.0

9,457

3,841
100.0
2020

2021

2022

Other electronic components,
automobile wire harnesses,
motorcycles, ink, etc.

143.4
6.8%
2.6%
5.9%
13.7%

125.4
6.1%
2.3%
3.9%
14.5%

6.5%
2.6%
5.0%
15.1%

167.8
6.4%
1.7%
2.8%

7.5%
1.4%
0.9%
10.4%

12.3%

0

2008

17.5%

2009

11.3%

12.0%

34.4%

4.8%
1.1%
2.2%
11.5%

23.3%

36.4%
38.7%

277.0
1.4%

233.1
212.7
4.3%
0.8%
0.8%
10.8%

4.1%
2.7%
8.9%

242.8
4.0%
1.4%
8.8%

223.0

226.8

5.9%

6.3%

10.1%

16.6%

16.4%
15.7%

16.5%
15.2%

9.8%

16.2%

22.2%

26.2%

5.2%

10.0%

15.7%

15.6%

22.3%

22.2%

21.5%

2010

2011

2012

Accelerated
electrification of
automotive-related
equipment

26.7%

36.4%

2013

2014

20.3%

9.0%
12.6%

18.5%

17.3%
19.0%

15.4%

58.7%

15.5%
14.1%

9.9%

9.1%

181.5

16.3%

14.9%
23.8%

5.4%
2.7%
1.1%

42.6%

40.8%

50.0

209.7

7.2%
2.2%
0.8%

12.6%

34.9%

Due to the change in the revenue recognition standards,
overall sales decreased by 10.5 billion yen to 3.8 billion yen
compared to the previous fiscal year.

■ Others

51.2%

41.9%

45.8%

2015

2016

2017

54.0%
50.3%

2018

2019

56.1%
54.2%

2020

2021

2022

28

ESG

Corporate Governance

Knowing SIIX

Corporate GovernanceValue Creation Story

Business Overview

ESG

Financial Information

Corporate governance system
Annual General Shareholder’s Meeting

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 and experience required isreflected 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, capital policies, CSR, sustainability, etc. are nominated. External directors are nominatedmainly for the purpose of strengthening financial and capital policies, M&A, and compliance. Regarding the size of theBoard of Directors, we believe this is the minimum level required to achieve such an objective.

〈Nomination and Remuneration Advisory Committee〉〈Management Committee〉〈Sustainability Committee〉

Basic policy on corporate governanceAppointment &Dismissal

Appointment & Dismissal
Report &Consultation〈Board of Directors〉
Consultation〈Audit & Supervisory Board〉

Audit

Audit & Supervisory
Board Member

ReportChairman

Recommendation

President

Cooperation
Audit

Established the SIIX Principles (Values, philosophy)

2005

●

Introduced an executive officer system

2006

●

Established the SIIX Group Code of Conduct

2015

●

Nominated one external director

2016

●

Started to assess the effectiveness of the Board of Directors●●

Opened the CSR activities page (currently Sustainability) on the corporate website
Nominated two external directors●

Changed the term of office of directors to one year●●

Issued stock options (share acquisition rights)
Established the Nomination and Remuneration Advisory Committee●

Nominated three external directors, constituting more than one-third of all directors●

Introduced a restricted stock compensation system
Established the Sustainability Committee

2021
2022

●

Transition of the number of officers

40%

38%

38%

33%

25%

9

29%

2017
Appointed two
external directors

88Proportion of
external directors

7

5
4
3

3

2

2006

3

3

0%

2

1

2015

2

3

3
2

2017

2

2

2020

〈GENPO Meeting〉

Direction

2

Audit

Being a company with audit & supervisory board members, SIIX has built a system to monitor and supervise thebusiness from an objective and neutral position by nominating two external audit & supervisory board members
besides the internal audit & supervisory board members in the composition of the Audit & Supervisory Board. The
Board of Directors is composed of nine directors. Three out of the nine directors are external directors and monthly
meetings are conducted with the three audit & supervisory board members (out of which two are external audit &supervisory board members). During the meetings, issues on human resources, investments, capital policies, budgetingand planning, 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
and audit & supervisory board members.

2021
External directors came
to constitute more than
one-third of all directors

2015
Nominated one
external director〈Executive Officer
Committee〉

Departments & Subsidiaries

●

2019

Direction

Guidance & Supervision

2002

2018

〈Environmental
Management Committee〉

Cooperation

Executive Officer

History of our corporate governance system

2017

Internal Audit Office

Management & Supervision〈Compliance
Committee〉

Cooperation

Appointment &Dismissal

Report

The company has developed the SIIX Principles as its corporate philosophy for the conduct of corporate activities by allits 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 that strengthening 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.

Appointment &Dismissal

Auditor

29

3
3

2021

2

3
3

2022

2

3

2023

(Present)■ Management Committee■ GENPO Meeting

The company has established the Management Committee,
which is composed of internal and external directors, executive
officers, full-time audit & supervisory board members, andothers. The committee operates an advisory body with which
the Board of Directors consult before important decision
making. Matters deliberated by the committee include matterssubject to Board of Directors resolutions and prior deliberation,
important company policies, and important topics such aslarge-scale new transactions and investments.

Each subsidiary holds monthly meetings of GENPO
Meeting to ensure the appropriateness of business
operations at subsidiaries and work toward thoroughrisk management. Officers from the headquarters,
executive officers, officers of local subsidiaries, andothers attend the meetings to keep track of the state ofmanagement of subsidiaries and discuss specifictopics.

Director■ Sustainability Committee

External Director

The company has established the Sustainability Committee to drive forward sustainability management, thereby
contributing to social issues through business activities and achieving a sustainable corporate growth. Chaired by the
President, the committee consists of all directors and executive officers. It formulates the Group’s sustainability policies,
discusses important issues, sets indicators and other targets, and monitors activities. What is discussed will bereported to the Board of Directors regularly and reflected in the committee’s recommendations.

Audit & Supervisory
Board Member
External audit &supervisory board
member

30

31

ESG

Corporate Governance

Knowing SIIX

Corporate Governance

Name

Introduction of Directors
Shiro Murai
4

8

7

9

Seiji Ono

Toru Maruyama

6

1

2

Directors’ skill matrix

Director

1

2

Chairman

Shiro Murai
President

Koji Yanase

Sales
strategyMarketing

●

●

●

●

3

Director &Executive Officer●

4Director &Executive Officer●

5

Director &Executive Officer●

6

Director &Executive Officer

7

8

9

Seiji Ono

Toru Maruyama
Hiroaki Takagi
Fukiko Iguchi
External Director

Shinsuke Takatani
External Director

Susumu Omori
External Director

Nao Yoshizawa

Finance,
capitalpolicyM&A

Manufacturing

●

●

●

●

●

●

●

Compliance, Personnel
Globalinternalaffairs, HR
experience
controldevelopment
●

●

●

●

●

●

●

●

●

●

ICT, DX

●

●

●

●

●

●

●

●

●

●

●

Culturaland social
contribution

100%(17/17 meetings)

100%(17/17 meetings)

Since joining the Company, Mr. Koji Yanase has produced great results in terms of developing good
relationships with major customers of the Company and closing transactions with its new customers, at theforefront of sales. Having years of experience working overseas, he provided appropriate direction on theoccasion of commencing transaction with a large new customer in Europe. He is also well-versed in the
management infrastructure such as business practices, logistics and IT at factories, and he is expected tofurther grow the Company in the future.
Accordingly, the Company believes that he is well qualified for the position of Director, and therefore
appointed him.

100%
(17/17 meetings)

Since joining the Company, Mr. Seiji Ono has consistently served key positions in finance and accounting
divisions at overseas group companies. Currently, he is in charge of the global finance and accounting
division. He has extensive knowledge of accounting and tax affairs and is experienced in overseas
business practices. These knowledge and experience are utilized in such a way that he plays a part inmanagement decision-making by applying his deep insights to the credit assessment of investments andloans.
Accordingly, the Company believes that he is well qualified for the position of Director, and therefore
appointed him.

100%
(17/17 meetings)

Mr. Toru Maruyama worked for a corporate planning division and a corporate sales division at a financial
institution and was once seconded to the Ministry of Foreign Affairs. Since joining the Company, he has
managed the corporate planning division and the general affairs & human resources division. He has
extensive knowledge of IR, public relations strategy, response to capital markets, corporate governance,compliance, credit assessment and other areas, and he plays an appropriate role in increasing theGroup’s corporate value.
Accordingly, the Company believes that he is well qualified for the position of Director, and therefore
appointed him.

82%
(14/17 meetings)

Mr. Hiroaki Takagi has management experience at overseas factories of a major electronics manufacturer
and a global manufacturer. Since joining the Company, he has expanded both factories in Thailand
and Shanghai in his capacity as a MD and made them major manufacturing bases by increasing theirproduction capacity, etc., contributing to the expansion of the ever-growing EMS business. In particular,
he has a wide range of knowledge and experience with regard to the manufacturing, technology andquality of the substrate manufacturing process.
Accordingly, the Company believes that he is well qualified for the position of Director, and therefore
appointed him.

ーSince joining the Company, Ms. Fukiko Iguchi has worked in the Secretariat Office as a secretary to the
top executives and performed a full spectrum of administrative duties. Going far beyond the boundaries
of secretarial work, she has provided relevant opinions from a compliance perspective and contributed
to the sustainable growth of the Company. Since assuming the office of Executive Officer, she has beenplaying a significant role in ESG and CSR related initiatives and activities with economic organizations, aswell as activities of the Honorary Consulate of the Slovak Republic, of which the Company takes charge.
Accordingly, the Company believes that she is well qualified for the position of Director, and therefore
appointed her.

100%
(17/17 meetings)

Mr. Shinsuke Takatani possesses knowledge of accounting and tax affairs acquired through yearsof experience as a certified public accountant. He offers suggestions on the Company’s overallmanagement from a global perspective. In particular, he provides accurate, extremely effective advice
on its important investment projects, risk management and tax matters from the certified public
accountant’s viewpoint, exerting himself to promote the sound growth of the Company.
Accordingly, the Company believes that he is well qualified for the position of External Director, andtherefore appointed him.

100%
(17/17 meetings)

Mr. Susumu Omori served as the leadership at a foreign securities firm for a long period of time and has
gained excellent experience in the stock and capital markets. He is also well-versed in the management
strategy formulation and other business practices thanks to the experience as the leadership. His advice
is essential to bring the Company’s corporate governance, ESG initiatives and engagement to a higher
level so as to meet the demand of institutional investors.
Accordingly, the Company believes that he is well qualified for the position of External Director, andtherefore appointed him.

100%
(17/17 meetings)

Mr. Nao Yoshizawa possesses legal knowledge acquired through years of experience as an attorney. He
has remarkably deep insights into corporate legal affairs, M&A, capital markets, etc., and his professional
expertise in a wide range of areas, including medical innovation, health care business, advanced elderly
research, and data science, is tremendously beneficial for the Company’s sustainable growth and new
business development. He belongs to a wide range of academic societies and groups in advanced fields
and is licensed as a patent attorney, certified fraud examiner, information technology strategist, andregistered information security specialist. We believe he can contribute to the Company’s governancefrom a new perspective.
Accordingly, the Company believes that he is well qualified for the position of External Director, andtherefore appointed him.

Diversity

Fukiko Iguchi●

Shinsuke Takatani●●

Susumu Omori
●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

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

●

●

●

●

Nao Yoshizawa

Financial Information

As the founder of the Company, Mr. Shiro Murai has long exercised his strong leadership in steering themanagement of the Company, and he has established its strong business model as it is today. With his
excellent analytical skills in understanding international conditions of politics and macroeconomics, hedemonstrates his managerial ability underpinned by the exceptionally deep insights, directing and leading
the Group at a high standard towards the Company’s sustained growth.
Accordingly, the Company believes that he is well qualified for the position of Director, and therefore
appointed him.

Areas in which the company has particular expectations for directors
Corporate
management,
management
strategy

ESG

Reason for appointment

3

Hiroaki Takagi

Business Overview

Attendance at Board of
Directors meeting

5

Koji Yanase

Value Creation Story

32

33

ESG

Corporate Governance

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

Corporate Governance

Implementation of officer training

Policy for nomination of directors

This year, we invited experts to provide officer training on “corporate transformation” and “leadership” for full-time
Directors (excluding the Chairman and the President) and domestic executive officers. We will continue to use suchopportunities to deepen our officers’ knowledge.

Directors are nominated based on international perspective necessary for global business, career in business,character, and other factors.

Remuneration of officers (Nomination and Remuneration Advisory Committee)
For improving the transparency of the decision-making process with regard to the nomination and remuneration of thedirectors, we have established the Nomination and Remuneration Advisory Committee to deliberate on the nomination
and remuneration of the directors. The said committee is composed of three or more members nominated by the Boardof Directors, with the majority of them being independent external directors to ensure its independence as an advisory
body to the Board of Directors.

Analysis and assessment of the effectiveness of the Board of Directors[1] Composition and operation of the Board of Directors
The majority opinion holds that the composition and operation of the Board of Directors is generally appropriate andthat as shown in the skill matrix, each member is fulfilling the duty of care with his or her backgrounds and expertiseconnected organically.
[2] Roles of external officers
All directors have stated that external officers play their roles effectively.
[3] Risk assessment
Although risk assessment is considered and discussed for resolution, there is an opinion that further risk analysis andassessment may be necessary depending on the project, and we will improve the risk assessment process.
[4] Governance and whistle-blowing system
An opinion was expressed that the whistleblowing system was functioning with no problems because the company
regulations were established and disseminated, but it was necessary to regularly review its effectiveness.
[5] Quality of the decision-making process of the Board of Directors
There was an opinion that in some cases, last- minute distribution of deliberation materials resulted in insufficient
analysis of the content of the agenda, as was the case with the Management Committee, which conducts preliminary
deliberations on important matters prior to deliberations by the Board of Directors. We will thoroughly analyze thecontent to be discussed and improve the timing of distribution of the materials, and thus reduce the number of issues
pointed out by the Board of Directors and the Management Committee.
[6] Interaction with investors and shareholders
There was an opinion that due to the measures to prevent the spread of COVID-19, we have not been able to haveface-to-face meetings with institutional investors, while we have been able to have enough online meetings with them.
There was another opinion that for the past three
years we have not had the social gathering we used
■ Process for effectiveness assessment
to have after the general meeting of shareholders,
and that we have fewer opportunities now to listen
to the voices of general shareholders. While utilizing(February 24, 2023)(December 2022)(January 26, 2023)
Reported the results
the hybrid meetings during the COVID-19
Distributed theCollected theat the Board ofpandemic, we will consider conducting face-to-facesurveyresults
Directors meeting
meetings effectively by resuming overseas IR, andwe will enhance communication.

Risk management
A number of external factors have considerably affected
the company’s business activities in recent years. Those
factors include the US-China trade conflict, restrictions
on activities such as city lockdowns in various countries
due to the spread of COVID-19, and supply shortages ofsemiconductors and other electronic components. The
company, however, has responded promptly to such
emergencies for early recovery and accumulated BCP
know-how. We will continue to work on BCP initiatives
and develop a strong corporate system resistant to allkinds of emergencies.

■ BCP Examples● Transfer production sites from China to Southeast

Asia and Mexico for products delivered to North
America● Encourage internal web meetings with basesaround the world● Promote automation of factories (Smart Factory)● Operate a company-wide system that supports
manufacturing, technology, and quality (Siix
Manufacturing Platform System (SMAPS))

Information security
As a “global business organizer,” we are working on the following three initiatives to pursue the effective use of theworld’s resources and contribute to the invigoration of the social system and the progress of humankind.
1. W
 e have set up “security goals” for the entire company and each department, with the following items as key
themes and will work for these goals.
● Organizational reinforcement of internal security measures● Technological enhancement of internal security measures● Strengthening of external security measures● Promote the use of information with security in mind
2. W
 e educate our employees on the relevant laws, regulations and contracts (especially confidentiality agreementswith customers), and make it their duty to comply with these regulations.
3. We have established and are operating a management system that complies with ISO 27001. We are working tocontinuously improve the effectiveness of this system.

Compliance
The company has established the Compliance Committee as an organization that reports, deliberates, and decides onmatters concerning compliance. The committee sets the Group activity policy once a year, makes the policy known andraises awareness at a company-wide meeting, and regularly monitors and follows up on all bases. In addition, thecommittee sets out and implements rules on whistle-blowing methods and whistle-blower protection to find misconduct
and violation of laws and regulations early and take appropriate action.

34

35

ESG

Message from Director

Knowing SIIX

Message from Director

We will pursue human capital management, while cherishingthe intentions instilled in the corporate philosophy.
Toru Maruyama

Director & Executive Officer
General Manager, General Affairs Department & General Manager, Tokyo General Affairs Department

analogy, the most important thing is to “hit straight
down the middle of the fairway.”’In this way, our company continues to grow with anemphasis on building relationships of trust with all our
stakeholders. Needless to say, relationships of trust
between a company and its employees are also
crucial. At SIIX, we recognize that a key challenge ofmanagement is to firm up our human capitalfoundations for the new era, while also cherishing thecorporate philosophy that we have held since thecompany’s beginning.
While we have undertaken various initiatives todate, in respect of the further pursuit of humancapital management, it is also a fact that there arestill many issues to be addressed. Every company
says that it cares about their employees, but I do notbelieve that they can necessarily say with certainty
that they truly care about every person. From theperspective of human capital management, unless

The principle of “trust” is our driving force
for growththey clearly show how much they are investing in

Since our foundation, we have grown our businessbelieve that it is only when a company prepareswith two principles as our unwavering driving forces.

human capital, I do not believe that companies aremeeting the demands of society and the market. I

Value Creation Story

Business Overview

ESG

Financial Informationin their work on an equal footing, you might say. It isbased on the belief that social issues and their own

also important that we firmly take on board the feelings

work are directly linked. Their achievement of resultsof our employees working overseas. As we develop

on those themes will receive the best evaluations. They

one employee-centric policy after another, we will

include, for example, removing unneeded items fromaccelerate the kinds of initiatives that will make all

the Company’s headquarters building, thoroughly

employees feel proud to work at SIIX and that willcleaning the offices, or establishing new spaces where

promote staff retention (securing human capital andemployees can enjoy meals and drinks in comfort. I

preventing turnover).

believe that, ultimately, the job of personnel andUnder the harsh circumstances of the COVID-19

administration is to create a workplace environment inpandemic, many employees made their best efforts towhich all employees can work comfortably andensure that operations did not stop, despite the various

energetically every day.

restrictions on operations at locations both in Japanand overseas. During the approximately two-month
period of the lockdown in Shanghai, our local staff

Our employees are also our stakeholders

slept at the factory to keep it running. Each employee

For the future growth of the SIIX Group, recruitment,

decided to do so on his or her own initiative, rather

development, and promotion of diverse talent will bethan being instructed by their superiors. The

crucial. Personally, I believe that it is better to havepenetration of the Company’s corporate philosophy

employees who break the mold. Such initiatives arethat I mentioned at the beginning was behind their

exactly what diversity is all about, and I believe that

actions, which emerged from the trust between thethey will ultimately lead to the finalization of ourCompany and the employees.

succession plans. Our efforts in this regard could not“Yes, but...” is one of the mottos of our chairman,
the founder of SIIX. This is a lesson that teaches the

be described as adequate, and we will further boost
these initiatives going forward.

importance of thinking positively, of first saying yes to a

We are currently in the process of conducting one-

request from a customer, no matter how difficult it may

on-one interview with all head office employees. We

be, rather than saying no and rejecting the request

are endeavoring to draw out from individual employees

from the outset. This approach can pave the way for all

what they are thinking and what kinds of concerns they

manner of operations, and I believe that the efforts athave. Based on the results of this initiative, we will start

our locations around the world during the pandemic

building a framework for future human capitalcame about because of this spirit of “Yes, but...”management.
Also, to create an opportunity for employees who
are working hard at various locations both in Japan

appropriate career paths for every one of its

Activities that benefit employees will be
included in personnel evaluations

One is “Trust,” and the other is “The Benefits of Zero,”

employees and makes appropriate growth-directed

gather at the venue of company-wide strategy

which represents our spirit of challenge and belief thatinvestments in human capital and when top

If I may indulge in a play on words, the word “resource”

management and employees are able to share thein “human resource” has connotations of something

conference in the Philippines in the summer of 2023.

being empty-handed actually allows us to create

With the accumulation of these kinds of small efforts, I

something that has never been existed before. In

same values that it can make forward progressthat is used up or consumed. On the other hand,

toward human capital management.

“human capital” gives the impression that investingfeel sure that our local personnel will grow at ourreference to what is today referred to as human capital

capital will result in future returns and convert to a

individual locations around the world. From the

management, Shiro Murai, the founder of SIIX, has

financial value. This is what I believe that human capital

perspective that our employees are also ourlong said the following.

means. Stakeholders expect human capitalstakeholders, we will pursue activities for long-term,

management that will bring quantitative financial value

sustainable value creation.

‘As companions sailing in the same boat, wemust have high ideals, but if our superiors andsubordinates are not facing the same direction, theBuilding personnel policies that speak to thehearts and minds of each individual
employeeboat will not move forward. To achieve this, weAs one of our initiatives, this year, we abolished themust always remember to be fair. we would neverpractice of management and employees calling eachconsider promotion based on race or gender, andother by their titles. Under our new policies, employees

we would never do anything illegal. To use an

can address even directors as “XXX-san” and engage

and overseas to exchange opinions with each other,
we are planning to set up a separate forum for them toin the future as well, and we understand it is essential

We will continue our efforts so that we may share thethat all employees recognize this point correctly andprogress of these activities with shareholders from time

pursue it firmly.

to time.

In FY2023, the mission that we have assigned to ourpeople in charge of personnel and administration is totake on their own personal challenges of new themes,

36

37

ESG

Message from Director

Knowing SIIX

Message from Director(Scope 2 only) compared with FY2021. In FY2022, forWe will strive to contribute to a decarbonized society byfurther promoting carbon neutrality through business.
Hiroaki Takagi

Value Creation Story

Director & Executive Officer
Global Engineering & SIIX Electronics Co., Ltd.

At present, in light of our endorsement of therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), we are concentrating inparticular on initiatives focused on Scope 1 (direct CO2
emissions from the use of fuels and other materials in
the company’s business activities) and Scope 2(indirect CO2 emissions from the use of purchased
electricity and other sources in the company’s businessactivities). We disclose information on the contents of
our activities within the framework of the TCFD. With
FY2021 as the base year, we have set targets for CO2
emission reduction by 2030, and we are working to
reduce CO2 emissions in Scope 1, Scope 2 and Scope
3 (CO2 emissions in the supply chain). CO2 emissions
from category 1, which account for about 90% of
SIIX’s Scope 3 emissions, are calculated based on CO2emissions information obtained from each supplier. At
the moment, we obtain information for calculation
purposes from over 30% of our suppliers, but we aim

Accelerate activities based on support for
TCFD recommendations

to increase this to approximately 60%. Going forward,

Here in the SIIX Group, we recognize that

information.

we will work to raise this percentage even further in aneffort to increase the degree of precision of ourthrough businesses” as one of the three goals of ourFinancial Information

supported by reductions in CO2 emissions.

the reduction of CO2 emissions, we focused primarily

For example, the shift to EVs in the automotive
equipment business will lead to decarbonization, so

energy. In addition, by implementing CO2 emissions

manufacturing of circuit boards that are related to thisoffsets through the purchase of non-fossil certificatestrend is also expected to grow. In Europe, there is aat the same time, it is expected that we will achieve

growing demand for heat pump air conditioners, whichzero CO2 emissions in Scope 2 from 2023 and beyond.

have lower environmental impact, so responding to thisGoing forward, I believe that these initiatives willkind of need can be also promising as a part of theaccelerate even further as awareness of environmental

decarbonization business. We are also expanding theinitiatives among employees all over the world

manufacturing of battery modules in the Philippines toincreases, along with awareness of the costs ofinclude other areas, such as Mexico. We believe thatswitching to renewable energy, various activities forthis expansion will contribute to our goal of creating a

reduction of CO2 emissions, and the purchase of

decarbonized society.

non-fossil certificates.
Regarding specific initiatives for renewable energy, in

The SIIX Group will utilize solar power by installing
solar panels on the vast roofs of our factory buildings.

addition to the installation of solar panels at theWe will also accelerate energy-saving activities even

Shanghai Factory in 2021, we completed thefurther. We have set up a trial system in a Japanese

installation of similar equipment at the Dongguan

factory that uses sensors to adjust the air conditioners

Factory in China, our Mexico Factory, and the Jakarta

based on whether people are there or not. Depending

Factory in Indonesia in 2022. Going forward, we planon the results of this trial, we will roll out this system

to install solar panels at our factories in Thailand,

worldwide.

Indonesia, and the Philippines to promote effective useof renewable energy.

While pursuing carbon neutrality in Scope 1 and 2,
our immediate goal regarding Scope 3 is to improve

Having said that, renewable energy alone will not

the precision of the numbers for visualization purposes.

meet 100% of our electricity demand, so we are also

All three bases in Europe and all bases in Japan haveasking equipment manufacturers to develop energy-

already switched to 100% renewable energy without

saving equipment from the perspective of power-

purchasing emission credits.

saving by production facilities. In particular, as ourcuring furnaces, which consume huge amounts ofelectricity, need to be constantly supplied with heateven when there is no production, we are trying to cut

Deal with issues seriously, including thepurchase of CO2 emission credits

off power consumption by interrupting the supply ofRegarding carbon neutrality issues going forward, forheat and nitrogen during idling time.

various reasons, including restrictions on in-house
power generation equipment by government

Promote the use of renewable energy in our
locations around the world

medium-term business plan. Going forward, thisshould be put at the top of the list of our KPIs

For disclosures based on TCFD recommendations,regarding our goals.

while CO2 emissions (Scope 1 + 2) in FY2021 was

In terms of our internal framework for environmental

ESG

on energy-saving activities and switching to renewableenvironmental initiatives are an absolute condition, andwe have set “contribution to a decarbonized society

Business Overview

amounted to approximately 70,000 tons, we have set

initiatives, the Sustainability Committee at headquarters

an initial target of reducing CO2 emissions by

and the Environmental Management Committee underapproximately 42% by 2030. On the other hand, as

the Sustainability Committee take the lead in deploying

reducing CO2 emissions is a matter of urgency, we

eco-leaders to manage environmental problems andhave been internally exploring ways for carbon

eco-officers to manage environment-related policies inneutrality since the beginning of 2023. As a result, we

our individual locations around the world, promoting

decided to offset CO2 emissions (Scope 2) in FY2022

activities as a group to resolve issues related to thethrough the purchase of non-fossil certificates, which

environment.

enabled us to reduce emissions by more than 95%

Strong demands for environmental
responses boost our businessregulations, a 100% worldwide switch to renewable

In the development of our business on a global scale,continue our proactive efforts in this regard. Another

we have received strong demands for environmental

issue that concerns us is the increasing costs of

responses, particularly to increase our ratio ofpurchasing non-fossil certificates every year to offset

renewable energy use, etc., from our customers in

CO2 emissions from non-renewable energy used in theEurope. As we are positioned as Scope 3 for our

previous year.

energy is not currently possible. Having said that, as
deregulation is expected as a global trend, we will

customers, if we can prove that we achieve reduction

Here in the SIIX Group, with the understanding ofof CO2 emissions, we can build better relationships

management, we will pursue initiatives toward carbon

with our customers, which will enable us to gain moreneutrality, including the purchase of non-fossil

business opportunities. We will work on carbon

certificates, earlier than anyone else. In doing so, we

neutrality and business expansion simultaneously

will build our competitive advantage in EMS on a global

toward 2030 in our effort to boost our business,scale and aim for further growth.

38

39

ESG

Environmental Conservation

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information■ Strategy

Environmental Conservation

We conducted a scenario analysis related to climate, with reference to the 1.5°C and 4°C scenarios. The analysis
The SIIX Group conducts business activities in 15 countries worldwide and works to reduce GHG emissions at each base.
From FY2021, in addition to CO2 emitted indirectly from energy use (Scope 2), we started to measure direct CO2 emissions
from fuel burning and other activities (Scope 1) and indirect supply chain CO2 emissions from material procurement
to manufacturing, logistics, and sales (Scope 3). In FY2022, the total CO2 emissions increased due to a year-on-year
production increase, however, we actively worked on reducing CO2 emissions with a focus on Scope 2. Going forward, we
will take various measures in all Scopes to proactively reduce CO2 emissions from our business activities.

resulted in an assessment that the manifestation of impacts of transition to a decarbonized society (policy and regulation/market/reputation) and physical impacts (acute/chronic) of sharp temperature rises could pose climate-related risks andopportunities in the future. To address such risks and opportunities, we will review our business plans and position
response to climate change as a priority.

■ Scenario analysis
In identifying and assessing risks and opportunities related to climate change, we set the following scenarios.
The scenarios referred to the following materials:● 1.5°C scenario: A scenario in which the world

Information disclosure based on TCFD

(1) S cenario in which physical impacts manifest: Intergovernmental
Panel on Climate Change (IPCC) Fifth Assessment Report, IPCC
Special Report “Global Warming of 1.5°C”(2) S cenario in which the world rapidly achieves a decarbonizedsociety: International Energy Agency (IEA) World Energy Outlook
2018 Sustainable Development Scenario (SDS), IEA Energy
Technology Perspectives 2017 Beyond 2°C Scenario (B2DS)

makes a transition into a decarbonized society(transition scenario)

SIIX recognizes the importance of addressing climate issues and declared its● 4°C scenario: A scenario in which physical impacts

support for the TCFD recommendations* in July 2022. Based on the TCFD

manifest

recommendations, we will appropriately disclose information on climatechange risks and opportunities that affect the Group’s businesses.
* Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) released in June 2017 by the TCFD, a task force established by the Financial Stability
Board (FSB) in 2015 following a request from the G20. The report recommends companies to disclose information around four core elements of how organizations operate(governance, strategy, risk management, and metrics and targets), so that their response to climate change risks and opportunities can be assessed appropriately.

Scenario analysis Step (1): Major environmental changes caused by average temperature increase

1.5°C increase

A successfully decarbonized society where
temperature increase has been limited

Average temperature increase causes more frequent andintense natural disasters● New technologies with low GHG emissions are developed
and adopted● Stricter regulations on GHG emissions make large fossil fuelconsumers stranded assets●■ Governance
SIIX strives to protect natural resources and maintain and conserve the

Corporate governance system

global environment. To this end, we comply with environment-related laws
and regulations, international agreements, and other rules, in accordance

Board of Directors

with the corporate philosophy, CSR policy, and SIIX Group Code of Conduct.
In April 2022, we established the Sustainability Committee chaired by the
President. The committee meets at least twice a year to resolve suchmatters as the formulation of company-wide policies and strategies and thesetting of targets and metrics concerning climate change and othersustainability issues for the SIIX Group, which has approximately 50 bases in
15 countries around the world. The committee also supervises action plans
reported by the Environmental Management Committee, a subordinate bodyof the Sustainability Committee and headed by a management member, andmonitors the results and progress of activities. The status of target
achievement and important climate-related matters that are deemed relevantto the Group’s management are reported to the Board of Directors.

ChairmanPresident
ReportGuidance & Supervision

Executive Officer
Direction

Departments & Subsidiaries

Average temperature increase causes even more frequent andintense natural disasters than the 1.5°C increase scenario● Sea
level rise causes more frequent flood damage, etc. incoastal areas● Changes
in precipitation patterns and typhoon routes cause
more frequent and intense damage from river flooding, etc. andalter which areas are affected● Morefrequent and intense natural disasters damage corporate
assets and lower corporate value●Impact of mainly 1.5°C to 2°C increase

Scenario in which the world rapidly achieves
a decarbonized society

Identified risks

Possible opportunities

Impact due to transition to a low-carbon or decarbonized society

Sustainability Committee

Environmental Management Committee

An insufficiently decarbonized society where
temperature increase has taken place

Scenario analysis Step (2)-1: Impacts of transition to a low-carbon or decarbonized society on SIIX

Recommendation

Management & Supervision

4°C increase

Taxation on carbon increases material and fuel procurementcosts● Shift to electricity derived from renewable energy increases
fuel costs● Insufficient environmental initiatives result in the following
consequences:• Decrease in new orders• Cancellation of existing contracts• Loss of customers due to increased reputation risks●Demand for energy-saving products increases
Needs for shift to energy-saving products increase● IoT use facilitates more efficient electricity use●●■ Risk management

Scenario analysis Step (2)-2: Physical impacts of average temperature increase on SIIX

The Sustainability Committee goes over potential risks and opportunities arising from changes in the internal and external

Physical impacts of average temperature increase
Relatively larger impacts of 4°C increase

environments caused by climate change, and comprehensively assesses and analyzes the impact on the Group’s businesses

Identified risks

and value chain from the perspective of financial impact and probability of occurrence along the timeline. Climate-relatedrisks and opportunities that are determined to have high degrees of impact are reported to the Board of Directors (orManagement Committee), and identified as material risks and opportunities after a company-wide integrated assessment of
the financial and non-financial impacts. In FY2022, climate-related issues were identified as one of the material risks, and in
response, the Sustainability Committee has set GHG reduction targets for FY2030 to avoid or reduce such risks.

Scenario in which physical impacts manifest

Torrential rains, typhoons, etc. damage facilities and increase
recovery costs● Value chain disruption suspends products and services● Fuel costs increase● Avoiding extremely hot hours lowers productivity●Possible opportunities
Abnormal weather increases needs for new products
Facilities are upgraded to high-efficiency equipment● Digital transformation is facilitated and remote work becomes
more commonplace
●
●

40

41

ESG

Environmental Conservation

Knowing SIIX

Environmental Conservation

Value Creation Story

Business Overview

ESG

Initiatives to reduce GHG emissions■ S cope1：■ Metrics and targets

CO2 emissions at SIIX are mainly from the combustion of gasoline in company vehicles, which is primarily fuel burningfor in-house power generators at production bases. Currently, we only keep track of emissions at each base, but we

In May 2022, SIIX set GHG reduction targets for FY2030. They have been set as science-based targets (SBTs). To
achieve the GHG reduction targets, we will continue advancing various initiatives and assess the achievement status.
We will accelerate initiatives to address global warming by considering them as opportunities for growth, instead ofwill start initiatives to reduce emissions.
■ S cope2：

restrictions on or costs for growth.

We are working on reducing CO2 emissions mainly through the following activities.

SIIX’s GHG reduction targets

Installation of solar panels

CO₂ emissions ( t )FY2030 (from FY2021 baseline)

924

Scope 1 & 2

42% reduction

Scope 325% reduction

69,484■ Scope1 ■ Scope2 ■ Scope3
583,026

1,658

operation of solar panels at our factories in China (Shanghai and Dongguan),

601,6902022

Mexico, and Indonesia (Karawang). We also plan to install solar panels at our2,553

Use of renewable energy(Proportion of renewable energy intotal electricity usage)factories in the Philippines, China (Hubei), Thailand, and Indonesia (Batam).

2030
536 40,301

Solar panels are installed on the roof of our large factory buildings to supply apart of the electricity used. By the end of 2022, we installed and started

2021

FY2021 3.6%

437,270

Shift to electricity derived from renewable energy*Scope 2 figures for FY2022 are after offset by non-fossil certificates.

We purchase a significant portion of our electricity from conventional power

Achievements(t-CO2)

Scope and method of calculation

FY2021GHG
emissions

FY2022GHG
emissions

Scope 3breakdown(%)

FY2022 6.6%

utilities, but we are gradually transitioning towards sourcing our electricity fromrenewable energy sources. All three bases in Europe and Japan (Sagamihara)
Factory have already switched to 100% renewable energy. From 2023 onward,

Scope1924

1,658

these bases are expected to produce zero CO2 emissions.

Scope2

69,4842,553*

Offsetting CO2 emissions through purchase of non-fossil certificates

Scope1+2

70,4084,211

Of the 71,035 tons of Scope 2 CO2 emissions from our business activities in FY2022, we have decided to offset

Scope3

68,482 tons through the purchase of non-fossil certificates. For the bases that emitted the remaining 2,553 tons of

Category 1

Purchased goods andservices

For major suppliers, calculated the intensity based on
figures disclosed by each company. Applied the weighted
average to other suppliers.

525,157

540,358

90%

Category 2

Capital goods

Calculated by multiplying the amount of capital expenditureby the coefficient set by the Ministry of the Environment.

28,64032,6435%

Fuel- and energy-related
activities not included in
Scope 1 or Scope 2

Estimated from the annual consumption of each type ofenergy.

7,970

8,445

1%

Category 4

Upstream transportation anddistribution

Calculated based on the ton-kilometer method.

10,563

7,924

1%

Category 5

Waste generated in operations(Not applicable)－－

Category 6

Business travel

Calculated by multiplying the number of employees by thecoefficient set by the Ministry of the Environment.

1,606

1,655

0%

Category 7

Employee commuting

Calculated by multiplying the number of employees by thecoefficient set by the Ministry of the Environment.

5,137

5,295

1%

Category 8

Upstream leased assets(Not applicable)－－

Category 9

Downstream transportationand distribution(Not applicable)－－

Category 10

Processing of sold products(Not applicable)－－

Category 11

Use of sold products

Estimated GHG emissions from the use of scanner
products (for five years).

2,275

2,723

Category 12

End-of-life treatment of soldproducts(Not applicable)－－

Category 13

Downstream leased assets(Not applicable)－－

Category 14

Franchises(Not applicable)－－

Investments

Included equity method affiliates, investments in which areconsidered important.

1,678

2,647

583,026

601,690

Scope 3 total*The figures are after offset by non-fossil certificates.

CO2, starting from 2023, we will switch all electricity we purchase from power utilities to renewable energy sources insequence to achieve zero CO2 emissions in Scope 2.
We are committed to environmental protection and sustainability and are working actively to reduce CO2 emissions
and achieve carbon neutrality. Purchasing non-fossil certificates is an important way to support the development of

Category 3

Category 15

Financial Information

renewable energy and mitigate the impact on the global environment, through which we aim to reduce environmental
impact and promote sustainable business practices.
FY2022 emissions
Scope2

71,035t

Offset through purchase ofnon-fossil certificates

FY2022 emissions
Scope 2 (after offsetting)

2,553t(96.4% reduction from 2021)

 cope3：■S

Approximately 90% of the Scope 3 CO2 emissions are from suppliers. Currently, we collect information from the top
130 suppliers in terms of purchase volume and keep track of their emissions. Going forward, we will improve the0%0%accuracy of figures and increase engagement with them to reduce emissions across the supply chain.

42

43

ESG

Society

Knowing SIIX

Society

Value Creation Story

Business Overview

ESG

Financial Information

Diversity and inclusion
We believe that creating an environment where human resources with diverse backgrounds can demonstrate theirAs initiatives for the development of a sustainable society are spreading around the world, we will contribute to solving social
issues through our business activities, and as a company with a global business presence, we will firmly root ourselves ineach region and be involved in the development of local communities. Moreover, in order to actively accept diverse humanresources for the realization of a society in which everyone can participate, we will promote initiatives related to new work

individualities and abilities invigorates and develops the entire organization.
By also developing systems that support employees’ work-life balance to allow all of them to work energetically, we
will strive to contribute to the realization of a society where everyone can play an active role.

styles and create an environment in which human resources can grow and play an active role. In the supply chain, we will

■ Promoting the active involvement of local human resources in the workplace

fulfill our social responsibility to ensure that we are not involved in human rights abuses through our procurement activities.

In order to expand our business globally, we have established offices around the world and many local staff members

Respect for human rights
The SIIX Group has established ten codes of conduct to be observed by all employees of SIIX, and in particular, respectfor human rights is an important issue for SIIX to fulfill its social responsibility as a public entity of society.
Standard 5

Fostering a Healthy Workplace Environment

We (people working for SIIX Group) will well understand and observe all applicable laws and regulations of each country or
region where we do business, as well as internal company rules such as the articles of association, internal policies and so on.
Standard 5
5-3 Respect for human rights⃝We will respect the fundamental human rights and the dignity of the individual, and will avoid speech or conducts such as harassment, defamation,
insults, verbal abuse or unreasonable coercion that take advantage of our official or business position.
⃝We will not discriminate any personnel according to nationality, race, ethnic origin, belief, religion, sex, age, physical or mental disability or any
other legally protected status.
⃝We will not engage in actions that may constitute sexual harassment.
⃝We will take no part in, nor sanction, child labor or forced labor.

The SIIX Group prohibits child employment and forced labor at all locations in its Code of Conduct, and regularly
inspects all locations to control and prevent such occurrences.
In addition, working hours and wages are appropriately managed at each site, and all sites are regularly surveyed.
With regard to harassment, we have established harassment prevention rules separate from the Code of Conduct,

support our business in each region. By training many local executives in management at each location, we aim toincrease each executive’s loyalty to the company, which will lead to improved business performance and corporate
value for each company.
Local executives accounted for 77.3% of all executives in FY2022.
From the perspective of further delegation of authority, we will identify outstanding local employees and actively
promote them to the executive level.
We already have non-Japanese employees in management and other key positions at our local subsidiaries.

■ Promoting the active involvement of women in the workplace
We are promoting diversity so that employees with diverse backgrounds can play an active role, and increasing the ratio of
women in management positions is one of the issues we need to address. We support the Japan Business Federation's(Keidanren's) “Challenge Initiatives for 30% of Executives to be Women by 2030,” which aims to “increase the ratio of
female executives to at least 30% by 2030,” and have been promoting the appointment of female employees who areplaying an active role. Our medium-term business plan by 2023 aims for a 50% ratio of women in management positions.
SIIX was certified as an “Osaka city female employees leading company” (certification level★★) on March 1 of 2018.

Number of employees in management positions & gender ratio by area
●Male

●Femaleand are working to prevent not only gender-based harassment but also sexual harassment, power harassment, and12.1%

harassment related to pregnancy, childbirth, childcare leave, and nursing care leave.
Lectures on power harassment, sexual harassment, and trends in regulations and risks are given by external directors

53.6%

38.7%

24.1%

Japan

Asia

Americas

Europe58 people

282 people

28 people

29 people

to all executives, managers, and assistant managers.
87.9%

61.3%

46.4%

75.9%

Safety and health

Ratio of local
employees inmanagement
positions for FY2022

77.3%

Target ratio of
local employees inmanagement
positions for FY2023

80.0%

Ratio of women in
management
positions for FY2022

32.2%

Target ratio of womenin management
positions for FY2023

50.0%

Ratio of women in management positions■ Safety and health policy

At the Annual General Shareholder’s Meeting held in March 2023, a female internal

At SIIX, in accordance with Standards 5 and 6 of our Code of Conduct, we take appropriate measures to ensure that all

director was appointed. Additionally, three female executive officers were appointed

employees can work safely regardless of nationality, race, ethnicity, creed, religion, gender, age, disability, medical

including the aforementioned female director. We already have female employees inhistory, etc., in accordance with the ordinances and culture of each country and region where we operate.

management and other key positions at our local subsidiaries, and the percentage ofStandard 5

Fostering a Healthy Workplace Environment

We will respect the personality and individuality of each employee. Based on this mutual respect and understanding,we will strive to maintain a safe and satisfying workplace environment.
Standard 6

Harmony with the Community

female executives in all management positions is 32.2% for FY2022. This falls short of
the target set in the medium-term business plan and we will continue to promote theactive involvement of women from the perspective of diversity.

■ Systems to support diverse work styles

We will mutually respect the culture and practices of different countries or regions, and will engage in contributions to the

SIIX has introduced a range of support systems to help employees demonstrate their abilities while balancing work

development of the local community through corporate activities rooted in our respective regional area of operations.

and personal life.

Examples of
initiatives

Countermeasures against infectious diseases (distribution of masks, installation of disinfectant and acrylic panels, etc.), implementation ofhealth checkups, stress checks, vaccinations, collaboration with industrial physicians, implementation of health and safety education, etc.

Examples of
support systems

Program for childcare/nursing care leave, promotion of shortened working hours, welcome back program, program
for working from home, vaccine leave, etc.

44

45

ESG

Society

Knowing SIIX

Society

Value Creation Story

Business Overview

ESG

Financial Information(3) Measures to strengthen manufacturing technology and quality
To be able to respond to future requests for Digital Transformation (DX), SIIX has been focusing on mounting andSocial initiatives in the supply chain

manufacturing technology and factory environment creation.

■ Supply chain management

In particular, we have established a cloud system called the Siix Manufacturing Platform System (SMAPS) to share andIn addition, we have been strengthening quality governance and developing group-wide information sharing systems.

With the globalization of corporate activities and the complexity of the supply chain, SIIX respects human rights andcomplies with laws and regulations throughout the supply chain. We thus actively work on CSR, “Corporate Social
Responsibility,” to realize a sustainable society.

use all kinds of information in real time across the world. Furthermore, the Global Engineering Department, key
members of each base, and staff in the Philippines support each other to strengthen the technology and quality
support system between bases around the world. Going forward, we will further strengthen the support system.
Standardization and sharing information of manufacturing, technology, quality

Establishment of the SIIX Group CSR Procurement Guidelines
We have established the SIIX Group CSR Procurement Guidelines

SMAPS (Siix Manufacturing Platform System)

as one of the means to promote our activities in the supply chain.

Sharing manufacturing, technical, and quality information with factories aroundthe world through a horizontal support system

Major suppliers have agreed with the guidelines, which are posted

2022 -

on our website.
Going forward, we will inspect our suppliers regularly to monitor
compliance and keep track of the status.

In operation

https://www.siix.co.jp/en/sustainability/social/

In operation

In order to ensure identical quality worldwide, we will develop more efficient and high-quality production systems byStandard manual/
Procedure manual

In operation

advancing information sharing, automation, and labor-saving. As a company engaged in manufacturing, we are

SMAPS
D/B
-Cloud-In operation

Know-how for
improvement

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.

⃝ We will establish quality and environmental management
systems on a global basis with ISO 9001, IATF 16949
and ISO 14001, and implement their operations basedon the corporate 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 our business activities, environmental
activities, and business continuity activities.

⃝A iming to contribute to sustainable economic
development, we will promote environmental
conservation by preventing environmental pollution
and promoting energy and resource conservation forcontinuous environmental impact reduction.

Equipment information

In operation

Instruction material
Check sites online
Facilitate improvement
checks(1) Quality and environmental policy⃝ As a global company with a primary focus on customer,
we will strive to exceed customers’ expectations byfulfilling customer satisfaction, capturing future needs
and meeting their requirements.

BCP utilization

Manufacturing
technology information

Quality information

Qualitycommitted to complying with environmental laws and regulations to conduct production activities in an environmentally

New technology
information

SMAPS enables us to utilize the real-time data of manufacturing technology on site

■ Responsible sourcing of minerals“Responsible Sourcing of Minerals” is defined as “striving to avoid the use of minerals that have possibility of
involvement in human rights abuses from a CSR perspective.” In accordance with the Dodd-Frank Wall Street Reformand Consumer Protection Act and EU regulations, we conduct annual surveys on conflict minerals to ensuretransparency in our supply chain. We will continue to promote the elimination of conflict minerals by proactively(2) Quality assurance system

conducting surveys in order to fulfill our social responsibility with our business partners.

Global network & management
Realization of a manufacturing, technology, and quality platform that connects 11 manufacturing bases

Minerals subject to the policy

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

Global Engineering Department (Sagamihara, Japan)
Quality control andimprovement

Standardization
promotion

Mounting andmanufacturing technology

Factory support

Automation promotion

Certifications, standards, etc.
We advance initiatives in accordance with international certifications and guidelines on sustainability.
ISO 9001: International standards for quality management systems

Strengthen cooperation among SIIX manufacturing bases
SEI
Indonesia

SEK
Indonesia

SET
Thailand

SHU
HungarySES
Slovakia

SED
Dongguan, China

SJC
Shanghai, China

SHB
Hubei, China

SEM
MexicoSEP
Philippines

SEJ
Japan

ISO 14001: International standards for environmental management systems
ISO 27001: International standards for information security management systems (ISMS)ICTI (International Council of Toy Industries)

46

47

Financial Information

Consolidated Financial Summary

Knowing SIIX

Value Creation Story

Business Overview

ESG

Financial Information

Consolidated Financial Summary
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022Financial Information
Net sales

Million yen

190,692

207,009

209,755

235,035

212,768

233,153

242,804

223,037

181,598

226,833

277,031

Operating income

Million yen

4,647

5,011

6,233

8,913

9,134

9,705

8,625

5,506

4,452

4,954

8,929

Ordinary income

Million yen

4,973

5,427

6,460

9,002

9,146

10,513

8,717

5,634

4,444

5,934

8,337

Profit attributable to owners of parent

Million yen

3,076

3,321

4,131

6,717

6,698

7,093

6,414

3,695

1,724

4,561

4,733

Selling, general and administrative expenses

Million yen

6,671

8,072

8,889

10,802

11,067

12,922

12,01012,155

11,697

15,165

16,862

Depreciation

Million yen

2,404

2,916

3,166

3,805

3,271

3,465

4,235

5,477

6,046

6,129

7,714

Total assets

Million yen

74,70389,204103,429

109,957

109,695

130,526

137,350

143,391

144,436

169,921205,170

Net assets

Million yen

25,45333,18541,49749,73951,57357,60956,01658,24956,49866,36977,389Equity capitalMillion yen

25,27732,98541,31049,58551,33257,25255,65557,84656,08465,87976,891

Interest-bearing debt

Million yen

16,511

18,546

19,128

12,614

11,45819,55332,96938,66747,471

51,35063,150Net cash provided by (used in) operating activities

Million yen

7,546

3,438

2,374

7,996

6,333

4,536

966

8,945

13,280(8,106)

5,567

Net cash provided by (used in) investment activities

Million yen(4,598)(3,216)(2,827)(5,113)(5,450)(9,211)(6,515)(9,602)(6,034)(7,765)(8,892)

Net cash provided by (used in) financing activities

Million yen(1,932)(105)(1,286)

3,352(4,171)

6,410

7,991

2,923

1,291

869

6,676

Cash and cash equivalents at end of period

Million yen

6,263

7,518

6,497

12,473

8,776

10,574

12,813

15,03522,9689,315

13,652

Free cash flow

Million yen

2,947

222

(453)

2,883

882

(4,674)(5,549)

(656)

7,246

(15,872)(3,325)

Capital expenditure

Million yen

3,463

1,134

2,857

3,764

4,528

6,167

7,483

9,082

5,573

9,515

10,845

Net income per share (EPS)

Yen

65.19

70.37

87.53

137.94133.81144.01131.45

78.21

36.48

96.53

100.11

Net assets per share (BPS)

Yen

535.55698.87875.24986.35

1,042.20

1,162.33

1,178.04

1,224.26

1,186.71

1,393.92

1,625.55

Dividends per share

Yen

15.0

16.0

17.0

21.0

25.0

26.0

27.0

28.0

29.0

30.0

31.0

Million yen

7,051

7,927

9,399

12,71912,406

13,17012,861

10,983

10,49811,084

16,643

%

33.8

37.0

39.9

45.1

46.8

43.9

40.5

40.3

38.8

38.8

37.5

Times

0.7

0.6

0.5

0.3

0.2

0.3

0.6

0.7

0.8

0.8

0.8

%

13.7

11.4

11.1

14.8

13.3

13.1

11.4

6.5

3.0

7.5

6.6

%

7.4

6.6

6.7

8.4

8.3

8.8

6.5

4.0

3.1

3.8

4.4

%

23.0

22.7

19.4

15.2

18.7

18.1

20.5

35.8

79.5

31.1

31.0

Number of
employees

9,029

8,641

9,545

10,352

10,82011,65913,632

12,721

11,257

12,354

12,734Per-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)

Rate of ordinary income to total assets (Ordinary income / Average total assets during the period)
Payout ratio((Interim dividends + Year-end dividends) / Profit attributable to owners of parent)

Employees

48

49

Financial Information

Consolidated Financial Statements

Knowing SIIX

Consolidated Financial Statements

Value Creation Story

Business Overview

ESG

Financial Information

SIIX Corporation and its consolidated subsidiaries
Fiscal years ended December 31, 2021 and 2022

Consolidated Balance Sheets
Assets(Million yen)

As of December 31, 2021

As of December 31, 2022

Current assets
9,484

13,793

Notes and accounts receivable - trade47,278－－55,091

22,261

27,738Merchandise and finished goods
Work in process

1,903

2,264

Raw materials and supplies

34,07543,425

Other

7,845

8,027

(50)

(64)

122,797

150,275

Allowance for doubtful accounts
Total current assets(Million yen)

As of December 31, 2021

As of December 31, 2022

Current liabilities

Cash and deposits
Notes and accounts receivable - trade, and contract assets

Liabilities

Noncurrent assets
Property, plant and equipment

Accounts payable - trade37,29841,733

Short-term loans payable

31,561

36,136

Income taxes payable

1,667

2,065

－

3,631

9,306

13,031

79,83396,598

Bonds payable

10,00010,000Long-term loans payable

8,446

15,125668

642

Contract liabilities
Other
Total current liabilities
Noncurrent liabilities

Liabilities for retirement benefits

Buildings and structures

27,67331,471

Accumulated depreciation(10,286)(12,957)

Deferred tax liabilities

2,848

3,247

Buildings and structures, net

17,386

18,513

Other

1,754

2,167

Machinery, equipment and vehicles

45,85856,083

Total noncurrent liabilities

23,71831,182

Accumulated depreciation(33,427)(40,343)

Total liabilities

103,551

127,780

Machinery, equipment and vehicles, net

12,431

15,739Tools, furniture and fixtures

3,977

4,632

Accumulated depreciation(3,079)(3,588)Tools, furniture and fixtures, net

897

1,043

3,893

4,644

981

2,867

Other

3,322

4,154

Accumulated depreciation(1,149)(1,605)

Other, net

2,173

2,549

37,76445,358Land
Construction in progress

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

2,075

2,178

514

342

Net assets
As of December 31, 2021

As of December 31, 2022

Shareholders’ equity
Share capital

2,144

2,144

Capital surplus

5,630

5,594

Retained earnings

57,07460,389Treasury stock
Total shareholders’ equity

2,590

2,520

Investment securities

2,385

2,227

Valuation difference on available-for-sale securities

Investments in capital

957

1,015

Foreign currency translation adjustment(5,945)(5,866)58,90262,261

Accumulated other comprehensive income

Investments and other assets

Long-term loans receivable

63

65

Assets for retirement benefits

430

322

2,058

2,189

Other

976

1,298

Allowance for doubtful accounts

(102)

(103)

Deferred tax assets(Million yen)

Adjustment for retirement benefits
Total accumulated other comprehensive income

528

347

6,404

14,276

44

6

6,976

14,630Share acquisition rights

77

67

Non-controlling interests

412

430

Total investments and other assets

6,768

7,015

Total noncurrent assets

47,12354,894

Total net assets

66,36977,389Total assets

169,921205,170

Total liabilities and net assets

169,921205,170

50

51

Financial Information

Consolidated Financial Statements

Knowing SIIX

Consolidated Statements of Income

Net sales(Million yen)

For the year ended
December 31, 2021

For the year ended
December 31, 2022

226,833

277,031

Cost of sales

206,712251,239

Gross profit

20,12025,791

Selling, general and administrative expenses

15,165

16,862

Operating income

4,954

8,929

Interest income

26

35

191

46

Foreign exchange gains

286

Subsidy income

201

Gain on sales of goods
Gain on sales of scraps
Other
Total non-operating income

52

Financial Information(Million yen)

Shareholders’ equity

Balance at beginning of
periodCapitalsurplus2,144

Retainedearnings

5,631

Treasurystock

53,980Total(5,949)55,806

Accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

277

59

354

Total net
assets56,498Changes of items during
the period
Dividends from surplus(1,417)(1,417)(1,417)－
195

Profit attributable toowners of parent

4,561

4,561

4,561

328

323

172

203

Purchase of treasury
stock

(0)

(0)

(0)

3

2

2

373

298

1,579

1,103

Interest expenses

284

823

Share of loss of entities accounted for using equity method

33

7Foreign exchange losses

483

Purchase of goods

－
148

Other

133

207

Total non-operating expenses

ESG

Consolidated Statements of Changes in Net Assets

SharecapitalDisposal of treasury stock

599

1,695
8,337

0

0

0

0

(50)

(50)

Net changes in items otherthan shareholders’ equity
Total changes of items
during the period

172

5,934

(1)

Change of scope of
consolidation

Non-operating expenses

Ordinary income

Business Overview

For the year ended December 31, 2021

Non-operating income
Dividends income

Value Creation Story

Balance at end of period

(5)

(55)

6,704

17

57

6,780

－

(1)

3,093

3

3,095

6,699

17

57

9,870

2,144

5,630

57,074(5,945)58,902

6,976

77

412

66,369Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income

For the year ended December 31, 2022

Extraordinary losses
Losses related to novel coronavirus infections－

Income before income taxes

7,960

Income taxes - current

2,273

2,751

Income taxes - deferred

(908)

478

Total income taxes

1,364

3,229

Net income

4,570

4,730

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

377

8

(3)

4,561

4,733

Consolidated Statements of Comprehensive Income

Net income

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
Comprehensive income attributable to owners of parent

Balance at beginning of
periodCapitalsurplus

2,144

5,630

Retainedearnings

Treasurystock

57,074(5,945)

Total

58,902

Accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

6,976

77

412

Total net
assets

66,369Changes of items during
the period
Dividends from surplus(1,418)(1,418)(1,418)

Profit attributable toowners of parent

4,733

4,733

4,733

43

43

Disposal of treasury stock

For the year ended

For the year ended

December 31, 2021

December 31, 2022

4,570

4,730

439

(181)

6,060

7,823

167

(52)

87

85

6,754

7,675

11,324

12,405

11,266

12,38757

18

Comprehensive income attributable to:Comprehensive income attributable to non-controlling interests

Sharecapital(35)

79(Million yen)

Other comprehensive income
Valuation difference on available-for-sale securities

Shareholders’ equity

377

－
5,935

Total extraordinary losses(Million yen)

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

0

0

7,653

(10)

18

7,661

－

(35)

3,315

79

3,358

7,653

(10)

18

11,020

2,144

5,594

60,389(5,866)62,261

14,63067

430

77,38953

Financial Information

Consolidated Financial Statements/Corporate Data

Knowing SIIX

Consolidated Statements of Cash Flows(Million yen)

For the year ended

For the year ended

December 31, 2021

December 31, 2022

Net cash provided by (used in) operating activities

Value Creation Story

Business Overview

ESG

Financial Information

Corporate Data
Corporate Outline

Income before income taxes

5,935

7,960

Company name

SIIX Corporation

Depreciation and amortization

6,129

7,714

Established

July 1, 1992

Paid-up capital

2,144 million yen (as of December 31, 2022)

Location

Osaka Headquarters:

SIIX BLDG, 1-4-9, Bingo-machi, Chuo-ku, Osaka 541-0051 JAPANTokyo Headquarters:

SIIX BLDG, 2-3-25, Kudanminami, Chiyoda-ku, Tokyo 102-0074 JAPAN

Increase (decrease) in allowance for doubtful accounts

(420)

9

Interest and dividends income

(217)

(81)

Interest expenses

284

823

Foreign exchange losses (gains)

(904)

(895)

33

7

(7,428)－－(3,859)

Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables
Decrease (increase) in trade receivables and contract assets(18,110)(9,213)

Decrease (increase) in consumption taxes refund receivable

Decrease (increase) in inventories

(109)

(145)

Increase (decrease) in trade payables

7,794

2,111

Increase (decrease) in advances received

(137)

－

Increase (decrease) in contract liabilities

－

2,833

Other

1,597

1,451

Subtotal(5,554)

8,717

238

82

Interest and dividends income received

(294)

(735)

Income taxes paid

Interest expenses paid

(2,496)(2,495)

Net cash provided by (used in) operating activities(8,106)

5,567

Nagoya Sales Department: 2F SIIX BLDG, 3-2-11, Meieki, Nakamura-ku, Nagoya, Aichi 450-0002 JAPANNet sales

277,031 million yen (FY2022: consolidated)

Number of employees

Non-consolidated: 208, consolidated: 12,734 (as of December 31, 2022)

Stock and Shareholder Information (as of December 31, 2022)
Stock information

Shareholding by typeof shareholder

Total number ofauthorized shares

160,000,000 shares

Total number ofshares issued

50,400,000 shares

Number of shareholders 29,573 shareholders
at fiscal year-end

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment(7,443)(8,671)40

8Purchase of intangible assets

(688)

(434)

Proceeds from sale of investment securities

119－

Payments of loans receivable

(31)

(40)

Proceeds from collection of loans receivable

30

37

Proceeds from divestments－

50

Purchase of shares of subsidiaries and associates(1)－

Subsidies received

163

120

Other

45

35

(7,765)(8,892)

Net increase (decrease) in short-term loans payable

5,732

2,136

Proceeds from long-term borrowings

2,591

12,728

Repayments of long-term borrowings(5,584)(6,257)(0)－(1,417)(1,418)Proceeds from sales of property, plant and equipment

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

Purchase of treasury shares
Dividends paid
Other

(452)

(512)

Net cash provided by (used in) financing activities

869

6,676

1,309

985

Net increase (decrease) in cash and cash equivalents(13,693)

4,336

Cash and cash equivalents at beginning of period

22,968

9,315

40

－

9,315

13,652

Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period

Major shareholders

Treasury stock
6.15%

Number of shareholders
by type of shareholder

Securities
companies
1.95%

Individuals
and others
20.74%

Financial
institutions
26.23%

Foreigncorporations, etc.
17.58%

Other
corporations
27.34%

Financial institutions
0.06%

Securities companies
0.08%

Other corporations
0.70%

Treasury stock
0.00%

Foreigncorporations,
etc.
0.88%
Individuals andothers
98.27%

Number of shares held
(in thousands)

Shareholding ratio (%)

Sakata Inx Corporation

10,812

22.86

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

5,565

11.76

Forty Six Ltd.

2,200

4.65

Resona Bank, Limited

2,170

4.59

Sumitomo Mitsui Banking Corporation

2,160

4.57

Custody Bank of Japan, Ltd. (trust account)

1,597

3.38

Shiro Murai

1,405

2.97

THE BANK OF NEW YORK 133652

755

1.60

NORTHERN TRUST CO. (AVFC) RE LF WALES PENSIONPARTNERSHIP(WALES PP)ASSET POOLING ACS UMBRELLA(TTF)

720

1.52

MUFG Bank, Ltd.

720

1.52

Shareholder name* Aside from the above, SIIX owns 3,097,775 shares of treasury stock.

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

Search54

h t t p s : / / w w w. s i i x . c o . j p / e n /