YUSHIN Report

2021

Year Ended March, 2021

The impossible is the starting point for innovation.

Susumu Kotani, YUSHIN’s Founder01

INDEX

Editorial policy

About us

03

Business Philosophy and Motto

04

History of Value-Creation

05

YUSHIN’s Strength07

Risk Management

08

Message from the President

09

Financial Highlights

11

Non-financial Highlights

12

Sales by Product Category

13

Sales by Region

14

Sales by End-user Industry

15

Segment Information

16

Global Network

17

ESG

19

ESG – Environmental

20

ESG – Social

20

ESG – Governance21

Directors and Auditors

23

Directors’ and Auditors’ Skills Matrix

27

Data Collection

28

Stock Information

35

General Information

37

YUSHIN Report is intended to help our shareholders, investors and other stakeholders better understand how weare creating social and economic value and achieving sustainable growth. We hope that this report will contributeto your dialogue with us.

Reporting period

The main period covered in this report is the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021).

Scope of report

This report covers YUSHIN PRECISION EQUIPMENT CO., LTD. and its 13 consolidated subsidiaries.

Notes on the forecast and

The forecasts and outlooks contained in this YUSHIN Report 2021 are based on information available at the time

outlookSome of the contents include information outside of this period.

of preparation and are judged to be reasonable by the Company, and include potential risks, uncertainties andother factors. Therefore, actual results may differ from the forecasts and outlooks due to changes in various
factors.

02

About us
Our company was established in 1973 to design and manufacture automatic machinery, and five years later in 1978, ourfirst "take-out robot for plastic products" was released into the world. Ever since, we have grown and developed alongside theindustrial progress.
Our company's founder, with his background in engineering, would say that "The impossible is the starting point for
innovation.” and without being restricted by the rationalities of the industry, we were able to push the limits of newtechnologies to meet the needs of our customers. Now in the world manufacturing scene, an increase in automation is being
considered to counteract labor shortages and curb the spread of infectious disease. And amongst the global push forenvironmental protection, it seems that a focus on energy conservation has become more important than ever. We eagerly
take on the challenge to continue developing new technologies that raise occupational safety and productivity while
supporting energy-saving manufacturing. Furthermore, it is our goal to bolster global society for many years to come throughthe constant creation of new value.

Our technology supports production automation
for manufacturers all over the world.

03

Business Philosophy and Motto

Business Philosophy
Act fairly and judiciously with all of our "strength, wisdomand courage" in order to earn the trust of our customers
and shareholders.

Look outward far and wide, constantly seek technologicalinnovation and give back to society for all it has given us.

Work cooperatively with our stakeholders in order for us
to grow as a company and make the world a better place
both physically and spiritually.

Motto
Today and every day,Devote yourself to even better service
And build even more faith in our company.

04

History of Value-Creation
Founder’s saying
The impossible is the starting point for innovation.
Quality determines our future.

Starting-up

Forming the basis

1973

YUSHIN PRECISION EQUIPMENT
CO., LTD. established at
Higashiyama-ku Kyoto, Japan

Expanding business globally

1985

1988

Relocated the headquarters toFushimi-ku

YUSHIN AMERICA, INC. established

2000

YUSHIN KOREA CO., LTD. establishedNon-consolidated sales<Net sales>(Millions of Yen)

Consolidated domestic sales
Consolidated overseas sales

30,00025,00020,00015,00010,000
5,000
0
1974

1978

A sprue picker released as
the YUSHIN’s first robot

1980~

1990~

1989

1996

(First in the Industry)
Servo liner, all servo driven
take-out robot, released(First in the Industry)YUSHIN robot equippedwith colored touch-panel
controller

05

2002

(The fastest in Industry)
DRDIII, disc take-out robot,
released with the take-out
time of 0.069 seconds

Since its establishment, YUSHIN PRECISION EQUIPMENT CO., LTD. has made take-out robots for plastic molding as main

products, and has moved forward with the development of the industry. We have actively expanded its business overseas,
and despite being the last entrant into take-out robot industry in Japan, has grown to hold the largest share of the global

market in the 2000s. Based on our founder's philosophy of "The impossible is the starting point for innovation." we willcontinue to challenge new technologies and contribute to global society as a leading company of take-out robots.

Challenging new areas

2013

Technical Center opened

Strengthen the foundation of growth strategy

Executing growth strategy

2016

New Headquarters openedin Minami-ku Kyoto, Japan

Medium-Term Business Goal

2000~

2010

(Optimum Design)
HSA take-out robot, jointly developedwith Kyoto University, released

2010~

2020~

2017

2020

(Active Vibration Control) (IoT)
FRA, high-end take-out robot, released
INTU LINE, IoT service, released

06(Venture into New Business)
PA, palletizing robot released

YUSHIN’s Strength
Technology●

Industry-first technologies●

Challenges for new fields●

Collaboration with universities

Customers●

Major companies, small facilities
and any size of business●

Develop energy saving products●

Ready for IoT●

Vibration suppression control (PAT.)●

Award-winning products●

World-wide network●

Borderless ofindustries

Topmarketshare
Reliability

Financial●

No down-time●

No loan payables in long years●

Quick response●High equity ratio●

Customer service with AI technology●

Operation with minimum facility●

On-time delivery●

Customer support by manpower-saving,and equipment

automation, and effectiveness07●

Quick decision-making●

Disaster resistantRisk Management
YUSHIN management team identifies following risks as the key factors. Those risks may have significant impacts onfinancial statements, business performances and cash flows around YUSHIN Group.

Financial risk

External factor(market trend)

External factor(purchasing)External factor(natural disaster)Internal factor(accident)

Related risk

●Capital expenditure in plastic injection moulding

Our efforts

industry●Our business runs in multi-industry markets toyen equivalent of the overseas subsidiaries’
business results●We keep going on developing new models and●Impact from exchange rate fluctuations on the●Low-priced competition●Price fluctuations in raw materials●Parts supply restrictions from suppliers anddiscontinued parts●Parts shortage due to demand rise in market.
●Natural disasters ( such as earthquake and storm
damage)●Urban lockdown and stay-at-home order due topandemic diseases around the world●Warranty costs due to quality issue●Labour accidents●Cyber accidents such as information leaks, lossof important data, and operating system outage
caused by information security issue (cyberattack, computer virus and unauthorised access)●Operating system outage due to information
technology system failure.

prevent impacts from economic fluctuations in aparticular industry.

reducing manufacturing cost and SGA expenses.

●We attempt to manage minimizing purchaseprice fluctuation by setting up multiple andreliable supply routes.

●We have prepared “Disaster prevention plan”

and “Business continuity plan.” And we havedisseminated the plans to our employees andconduct emergency exercise on regular basis.
We have also set-up “Safety confirmation
system.”●In the event of emergency, we can keep operation effectively with preventing spread of
infectious diseases, strict health check program,staggered commuting, work-at-home, andusing web meeting system.

●We have a strict quality management structure
which complies with an international quality
standard by setting up quality control standard,thorough quality management, and suitablemeasures.

●We purchase Contractors’ liability insurance andProduct liability insurance.

●We always pay attention for the employee’s
health and safety to prevent in-house accidents
and injuries.

●We strictly maintain IT security status andstrengthen IT security. We also train andenlighten management and employees●We make efforts to improve working conditions●Weakness in securing human resources forInternal factor(human resources)

rapid business development.

●Insufficient human resource development●Resignations and leaves of absence in the areaof specialty

to keep employees and personnel system tosupport motivated employees. With this efforts,
we recruit and develop necessary humanresources to facilitate the development of the
global business expansion.

●We improve working efficiency by IT technology.

●We maintain work environment to support
women’s active role.

Others●Sales and costs of goods sold are recorded in the following consolidated fiscal year due to the acceptancestatus of the goods delivered at the end of fiscal year.

08

Message from the President

We aim to provide molding factories around the world

with our robots to bring them more safety and security,and to support them to increase productivity

and realize energy-saving in their production.

We believe this idea can help our society to become more affluent,and we will continue to make our efforts to create new value.

Summary of business

Furthermore, we have introduced a new series oftake-out robots to the Chinese and Asian markets. Orders

In fiscal year ended March 2021, corporate activities wereare steadily increasing, and although price competition isgreatly restricted due to COVID-19 pandemic. Under thesevere in this market, we will continue to contribute to thecircumstances, we continued to expand our business

improvement

globally while exercising adequate care for the safety of ourofproductivity

andenvironmental

friendliness of our customers.

customers, business partners, and our employees toprevent infection.
In particular, while demand for capital investment
declined in many industries, we significantly increased sales

Research and development

to the medical industry in fiscal year ended March 2021. In

In order to develop products that meet the needs of a

the US, where we have been actively involved in thewide range of industries around the world, our group is

medical industry, we shipped more robots due to increased

conducting multiple research and development themes in

production of medical-related parts, including new test kitsparallel in the stages of "basic research," "element

for COVID-19. In China, as a result of actively developing

development," and "application development. As a result,the medical industry market from the first half of fiscal year

in fiscal year ended March 2021, we released LA robots for

2020, orders increased from the second half of the fiscal

large molding machines and PA robots for palletizing. In

year. In Europe, we have sold a certain number ofJuly 2021, we launched the RC-SE robots, which iscustom-ordered equipment to medical industry.

equipped with functions that reduce environmental impact

In June, we launched a new palletizing (loading) robot,

by significantly reducing air consumption, and the SX-41, a

PA, which was developed to stack cardboard boxes onhigh-speed take-out robot for cleanliness that is in demandpallets in factory shipping processes, by utilizing thein the medical equipment and electronic device fields. In

mechanism of our Cartesian take-out robot. Our customers

the future, we plan to further improve our productwere mainly in the plastic injection molding industry, butplanning process and develop robots that meet the needs

with this PA, we are beginning to develop new markets

of various customer industries and markets around thesuch as the food industry.

09

world.
We have been the first in the industry to introduce servo

How we create value

motors, color touch panels, and other new technologies.
We will continue to keep our eyes open to newtechnologicaltrends

and

use

AI,

IoT,

and

A world where products with high quality and reasonable

other

prices are supplied. A world in which all people can leadtechnologies to improve the safety and productivity of ourhygienic lives. These are the goals of the SDGs, a world incustomers' factories. We will also continue to develop

which all people can enjoy prosperity. One of the means to

products that reduce environmental impact and increase

make such a world possible is the plastic injection molding

the added value of the robots we provide.

technology we are involved in. In injection molding
factories that operate 24 hours a day for mass production,
robots with speed and precision are required. We haveboth as strengths and are proud to say that we are theOrganization and human resource development

leading global company in the field of take-out robots for

While developing our strength which we have built up

injection molding machine. We support the factories allover the years, we are also working to develop organization

around the world, which make products that contribute toand human resources for creating a new generations.

enrich the world, with top-level technology in a safe andIn the CI Culture Book issued in April 2020 we laid out

secure manner. We believe that this is the way we create

the ideas and action guidelines which we would like every

value.

employee to cherish and the type of people who we wantas colleagues, based on the concept "Above all, reachpeople's hearts.” We are working on penetrating deeply
into YUSHIN Group, including dissemination messages bymanagement team and managers dialog in the workspace
and the sharing good practices. In fiscal year ended March
2021, we have started a project to develop brandambassadors who come up with the ideas to promote CI
and implement that ideas.
Along with CI activities, we designed new personnel
system in February 2021. The main idea of the system is toencourage employees' efforts, evaluate their achievement
properly, and put them in the right position. We are
improving education system, which is the layer programand fostering new leaders, to support our employees
according to their phase of growth. We are also making ourworkplace better for our employees to work in and help
them find jobs worth doing. As a port of that efforts, we are
introducing "Innovation Project System" to foster humanresources who have creativity and independence. We
review our existing personnel system to ensure that theright people are appointed and assigned to the rightpositions, and to aim for well-modulated personnel

October 2021

treatment.

Representative Director
and President

10

Takayo Kotani, Dr.Eng.

Financial Highlights
Net Sales, Operating Profit

Profit Attributable to Owners of Parent, ROE
Net sales

Millions of Yen

25,00020,87819,34620,00021,83320,011

Profit attributable toowners of parent

Millions of Yen

Operating profit

3,000

10
1,903

2,000

0

FY2017

2,760

2,358

FY2018FY2019FY2020

8

6.5

6

5.7

4
2

500

2,522

2,309

1,827
1,532

7.2

6.3

5.6

1,000
2,112

1,626

1,380

1,500

10,000

%

12

2,500

18,47315,000

5,000

ROE

0

FY2021FY2017FY2018FY2019FY20200

FY2021

Net sales for the fiscal year ended March 2021 decreased by 7.7% from theprevious fiscal year. Net sales in China and Korea increased but net sales inJapan slowed down. Operating profit increased by 9.2% compared to theprevious fiscal year with efforts for improving gross margin and reducing
operating expenses

Profit attributable to owners of parent for the fiscal year ended March 2021
increased by 19.2% over the previous year, exceeding the 9.2% increase inoperating profit. This was mainly due to foreign exchange gains.
ROE was 6.5%, up 0.8 point from the previous fiscal year.

EPS, Dividends

Capital Investment, Depreciation, R&D Expenditures
EPS

Yen

Cash dividends per share

1,000

100

700
46.5

39.5
18

20
0

778

800

60

16.5

54.5
45.0

17

18

600

53.7

500

Depreciation

652

619

546
474

703

643

598
413

400
300

18

R&D expenditures

924

900

80

40

Capital investment

Millions of Yen

256

369

347

198

200

125

100
FY2017FY2018FY2019FY20200

FY2021FY2017FY2018FY2019FY2020

FY2021

In order to realize stable and continuous shareholder returns, we aretargeting a consolidated dividends pay-out ratio of 30% or more. We
intend to raise the level of ordinary dividends as we improve ourconsolidated performance.
Please note that the values for FY2017 and FY2018 have been adjusted dueto the 1:2 stock split implemented on April 1, 2018.

Depreciation of the new headquarters and factory built in 2016 has been
decreasing every year. YUSHIN keeps spending a certain of Research anddevelopment expenses under any economic situation.

Overseas Sales Ratio

Cash and Bank Deposit, Interest-bearing Debt
Overseas

%

70
60
50
40

58.9

41.1

60.1

39.9

57.4

42.6

59.2

Japan

40.8

10,000

37.5

4,000

10

2,000

0

0

FY2020

8,646

8,000

20

FY2019

11,69012,0006,000

FY2018Interest-bearing debt

14,00030

FY2017

Cash and bank deposit

Millions of Yen

62.5

FY2021The overseas sales ratio has been around 60% in recent years.
In the fiscal year ended March 2021, the ratio was at a high level in the last
five years due to the sluggish domestic market and large projects ofcustom-ordered equipment for overseas markets.

5,734

6,362

5,655

0

0

0

0

0

FY2017FY2018FY2019FY2020

FY2021

Cash and deposits decreased mainly due to the relocation of the newheadquarters and factory in 2016, the ratio of cash and deposits has been
increasing in the last three years without any major expenditure. We will be
prepared to make flexible investments at the appropriate time, such as for
future demand increases.

11Non-financial Highlights
Number of Full-time Employees

The Number and Rate of Female Full-time Employee (Non-consolidated)

Non-consolidated

People

800
700

683

663

Consolidated

689

683

414

412

403

388

400

The rate

%

50

100

681

80

600
500

The number

People

69

71

72

72

40

69

30

60

407

17.8

40

300
200

17.6

17.5

17.4

20

17.0

10

20

100
0

FY2017FY2018FY2019FY20200

FY2021FY2017FY2018FY2019FY20200

FY2021

The number of employees has remained almost the same for the past few
years.

The number of full-time female employees has remained almost
unchanged for the past several years. We have established a system forchildcare leave and shorter working hours that exceeds legal requirements,
and the return rate of employees who took childcare leave in the last five
years was 100%. We will further promote reforms in the way we work andcreate a pleasant working environment.

The Number of Employees in Childcare Leave, Rate of Taking Childcare Leave

The Number of Employees who take Shortened Working Hours System

Female employees
in the leave

People

10

100%

9

Rate of female employees
in the leave

Male employees
in the leave
100%

100%

Rate of male employees
in the leave%

People

90

18

100

100%

8

16

70

6
5
4

0

2

3

1

0%

0

FY20172

0%

FY201820%

00FY20190%

4FY2020830
6%FY202100

8

8FY2017FY2018

6

20

4

10

2

0

2

1

10

40

4

2

12

50

1

0

3

14

60

2

Male

20

80

7

Female0910FY2019FY202011

FY2021

In order to promote female employees to take childcare leave and return
to work, as well as male employees to take the leave, we are preparing anddistributing booklets to deepen their understanding of the leave. We willcontinue our efforts to raise awareness of the need to achieve a diversified
work-life balance.

Shortened working hours can be used until the eligible child is in the third
grade of elementary school while legal requirement is until the child isunder three years old. Most of the eligible female employees are using thissystem to balance work and childcare. We will continue to make efforts toimprove the workplace environment in accordance with the life stages ofour employees.

Paid Vacation Utilisation Rate of Full-time Employees

Power Usage(Non-consolidated)%

1,000kWh

100

3,000

90

2,500

80
70
60
50

49%

56%

57%

57%

62%

2,547

2,304

2,000

2,086

2,054

FY2020

FY2021

1,500

40

1,000

30
20

500

10
0

2,562

FY2017FY2018FY2019FY20200

FY2021In the fiscal year ended March 2021, the paid leave utilization rate was 62%, up
5 points from the previous year. We are working to create a pleasant working
environment through operational efficiency improvement and work stylereform. We believe that an increase in the number of paid vacations taken willcontribute to higher employee satisfaction and a better work-life balance. We
will continue to promote the creation of a pleasant working environment.

FY2017FY2018FY2019The new headquarters and factory have been in operation since December
2016. As operations are transferred from the old headquarters, the effectsof the energy-saving equipment in the new factory are becoming apparent.

12

Sales by Product Category
The Three Pillars that Support YUSHINYUSHIN's core business is take-out robots, which are essential to the manufacturing process of plastic injection molded
products. The company also offers custom-ordered equipment that support the automated processes before and after thework of take-out robots, as well as parts and maintenance service.

Take-out Robots
16,000(Millions of Yen)

15,512
12,7708,000

Overseas sales

9,256

0

FY2019Future Growth Strategy

Sales ratio
Take-out Robots

11,904FY202164%●Take-out robots decreased by 865
Overseas sales

7,256

FY2020

million yen (6.8%) from the previous
FY to 11,904 million yen.

Overseas sales●Sales did not increase mainly in

7,718Japan due to low capital investment.
In the second half of the fiscal year,
however, there was a recovery in
China and other countries.

FY2021

We will continue to develop products that meet regional and industry characteristics. In addition, we will make further
efforts to develop products that reduce the environmental impact and increase the added value of take-out robots.

Custom-ordered Equipment
4,056
3,422

2,880

2,500

●Custom-ordered equipment decreasedby 634 million yen (15.6%) from theprevious FY to 3,422 million yen.

Overseas sales

2,866
Overseas sales

0

Sales ratio
Custom-ordered 19% FY2021
Equipment(Millions of Yen)

5,000

Overseas sales●Sales did not increase for medical

2,034

ﬁelds.

1,375

FY2019Future Growth Strategy

FY2020

FY2021

In response to the growing need for automation in Japan and overseas, we will focus on businesses that have synergy with take-out
robots. In addition, through the palletizing robot launched in 2020, we will work to expand our products beyond the plastics industry.

Parts and Maintenance Service

17%(Millions of Yen)

5,000
3,440

3,185

Sales ratio
Parts and Maintenance
Service

3,147●Parts and Maintenance Service

2,500
Overseas sales

1,810

0

FY2021FY2019Future Growth Strategy

Overseas sales

1,728

FY2020decreased by 38 million yen (1.2%)
from the previous FY to 3,147 million
yen.

Overseas sales

1,784●Sales were steady in spite of COVID19 situation.

FY2021

One of our competitive advantages over other companies is our network, which is the best in the industry. We will continue tofocus on securing and training human resources to support our global expansion and develop high quality services worldwide.

13

Sales by Region
Network in Japan

Subsidiaries, Branches and Representative officeJapan
10,0009,304(Millions of Yen)

8,159

NaganoToyama5,000
Hiroshima

0

Niigata

FY2020

FY2021

Iwate

Fukushima
Saitama
IbarakiKanagawa

Kyoto

Fukuoka

FY2019Shizuoka
Aichi
Mie

Oita

Asia
(Millions of Yen)

10,000China <Tianjin>

7,692
5,900

5,786

5,000

China <Guangzhou>
Vietnam <Hanoi>
Thailand <Bankok>
India <Chennai>
Malaysia <Kuala Lumpur>

0

FY2019FY2020

FY2021

38%

Sales ratio

6,936South Korea <Seoul>
China <Shanghai>Japan

FY2021●Sales decreased by 1,223 million yen(15.0%) from the previous FY to
6,936 million yen.

●Sales were weak throughout the year
due to lowered investment caused
by COVID-19.

Sales ratio

Asia

FY202131%

Taiwan <Taipei>

China <Shenzhen>
Phillippines <Manila>
Vietnam <Ho Chi Minh>

Indonesia <Jakarta>

Sole Agents●Sales decreased by 113 million yen (1.9%)
from the previous FY to 5,786 million yen.
●The first half of the year was generally
sluggish, but there was a rapid recovery indemand in China in the second half.

North America(Millions of Yen)

5,000
3,233

3,343

Sales ratio
Canada <Toront>

3,375

2,500

0

U.S.A. <Rhode Island>

FY2019FY2020(Millions of Yen)

2,079

1,500

0

1,782

EuropeUK <Birmingham>

FY2021(Millions of Yen)

663

500

0

527

Mexico <Gunajuato>593

New Zealand <Auckland>

FY2020●Sales decreased by 297 million yen (14.3%)
from the previous FY to 1,782 million yen.
●Sales were lower than the previous

Sales ratio

Other Regions

3%

FY2021●Sales increased by 65 million yen

Australia <Melbourne>

FY2019FY2021

fiscal year due to a delay in sales forcustom-ordered equipment for medical
applications.

Other Regions
1,000

10%

Germany <Munich>Turkey <Istanbul>

FY2020

FY2021●Sales increased by 31 million yen (0.9%)
from the previous FY to 3,375 million yen.
●There was a decline in automobile sales,

Sales ratio

939

FY201918%

but overall sales maintained the same level
as the previous year due to demand for
medical-related products such as test kits.

FY2021

Europe3,000

NorthAmerica

FY202114(12.4%) from the previous FY to 593
million yen.

Sales by End-User Industry
YUSHIN Robots are used in a Wide Range of Industries
Our robots operate in platns where plastic products are made by injection molding machines, and we expand our businessin wide range of industries where plastic are used. Our sales in medical and automotive industry is growing recently. We haveincreased sales in automotive as many parts have been replaced by plastic, and the industry needs lightweight parts. In
medical area, they have replaced glass materials with disposable plastic from the aspect of good hygiene andmass-production. These are the good areas for us as our robots excel at high-speed and high-accuracy.
In the year ended March, 2021, the sales ratio for medical area ranked top for the first time. It was due to a large-scale
medical project and the demand for Covid-19 test kit. The downturn in domestic automotive market gave negative impact on
the sales, but the sales ratio for that area was the top on the list for the past few years. We expect higher sales in this area
when the market recovers. The sales in electronic parts industry increased in the second half of the year as Chinese market
recovered.

Others3%Disc and
opticalinstruments
Containers 3%
8%Electricalappliance
9%

Medicalproducts
26%

Sundryproducts
10%
Automotive
products
23%Electronic
parts
18%

FY2021Net Sales
18,473 million yen

Future Growth Strategy

By expanding our business into a variety of industries, we can disperse risk posed by the decline in a specificindustry. We will try to keep existing sales mix so that a specific area does not account for a large portion of thesales. In the meantime, we expect the demand for plastic increases for the automotive and medical much more thannow; the former for lightweight, the latter good hygiene. We expect these industries will be the main driver for thebusiness growth in the areas. We will also put in a good amount of effort to develop products which satisfy themarket needs.

15

Segment Information
Net sales, Operating profit, and Order by Segment
YUSHIN carries out the development, production, sales and after-sales maintenance of take-out robots for injection-molded
products and peripheral equipment, including labor-saving systems. In the domestic market, these operations are handled by
the Company; overseas markets - North America, Asia (South Korea, Taiwan, China, Indonesia, Vietnam, Malaysia, Thailand andIndia) and Europe (UK and Germany) - are serviced by local subsidiaries, including YUSHIN AMERICA INC. (US), YUSHIN KOREA
CO., LTD. (South Korea), YUSHIN AUTOMATION LTD. (Europe) and other local ones. The local subsidiaries are independently
managed units, with separately drafted strategies and activities.
Accordingly, YUSHIN's operations, based on its production, sales and after-sales maintenance setups, are geographicallygrouped into four reportable segments: Japan, North America, Asia and Europe.
Operating Profit by Segment

Sales to External Customers by Segment
Japan(Millions of Yen)

25,00020,000

3,274

3,159

11,163

11,736

12,581FY2017FY2018FY201910,000

0

914

5,286

15,000

5,000

696

395
4,512

4,924
3,412

US

Asia

EuropeJapan(Millions of Yen)

3,500
3,000

2,636
3,718
2,899

1,910

2,500

4,334

2,000

3,451

1,500
1,000

10,7578,777

FY2020500
0FY2021

6
469

130

607

348

260

1,279

1,409

FY2017FY2018

US

Asia

81
533
307

2,045

FY2019Europe

375
230
287
269

406

1,276

1,286

FY2020

FY2021

468

Orders by Segment
Japan(Millions of Yen)

25,00020,00015,000

1,886

1,778

5,319

4,741

3,275

3,132

3,543

11,597

12,41012,583

FY2017FY2018FY2019715

4,644

10,000
5,000
0

US

Asia

1,704

Europe

1,124

3,714

4,778

2,949

3,486

9,682

9,325

FY2020

FY2021

Operating result per segment in fiscal year 2021

<Japan: > Sales decreased by 9.6% year-on-year to 13,337 million yen due to the weak sales caused by lower investment
due to the ongoing Covid-19 situation. Operating profit increased by 0.8% year-on-year to 1.286 million yen.

<U

S: > Sales increased by 18.8% year-on-year to 3.460 million yen due to the sales increase in medical products such as
test kits. Operating profit increased 74.1% year-on-year to 468 million yen.

< A s i a :> Sales increased by 14.5% year-on-year to 4.582 million yen due to the sales increase caused by higher investment
in China in the second half of the year. Operating profit increased 41.4% year-on-year to 406 million yen.

<Europe: > Sales decreased by 27.4% year-on-year to 1,914 million yen due to the sales decrease of custom-ordered
equipment for medical products. Operating profit increased 62.8% year-on-year to 375 million yen.

16

17

18

ESG
RelatedSDGs Items< Environmental load reduction >- Development of energy-saving products(Won the JMF’s Energy-Efficient Machinery Award)
Uses

26%

25.5%

less electricity
than conventional
model

E

weight reduction
than conventional
model

GOOD HEALTH
AND WELL-BEINGGENDEREQUALITY(Environmental)
AFFORDABLE AND
CLEAN ENERGYStandard Take-out Robot - YC

- Promotion of environmental management system (ISO14001)< Working style reform of customer factories >DECENT WORK AND
ECONOMIC GROWTH

INDUSTRY, INNOVATION
AND INFRASTRUCTURE- Providing factory automation system

S(Social)< Safety and security>- Sale of the world's highest safety standard equipped robot< Improvement of working environment >- Working style support team- System of maternity leave and shorter working hours (more than statutory)- Working support for mothers “YUSHIN Mama’s Meeting”

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTIONG(Governance)< Strengthen the governance system >- Of the 8 Directors, 3 are External Directors- Improvement of Board of Directors by effectiveness evaluation< Diversity>- Of the 8 Directors, 2 are women19

ESG – Environmental
Constant Effort to Develop Energy Saving Products

such as design optimization, are highly evaluated.
In July 2021, we have rolled out a new robot RC-SE which

We constantly develop energy saving products working

has Smart ECO Vacuum (PAT.P) evolved from ECO Vacuum

24/7 at customers’ site.
In 2019, FRA robots, our flagship model, received the– our unique technology to save air consumption. This

JMF’s President Award at the Energy-Efficient Machineryfeature can reduce up to 78% of air consumption maximum,

and System Awards of the Japan Machinery Federation. Thisand can lower electricity consumption of the compressor.

Awards was formerly called Energy-Efficient Machine Award
which our YC robots had received. We are confident that
our continuous efforts to develop energy saving products

Reductionsof up toAir
consumption

SuctionWorkpiece

With ECO Vacuum

Close

Without ECO Vacuum

TM

Open

Suction pad

Close

Workpiece

Open

Take-out robot RC-SE

Air
consumption

Air
consumption
Vacuum pressure
auto monitoring
ECO valve

Suction78 %SuctionAuto

Workpiece
TM

With Smart ECO Vacuum

YUSHIN measurements

ESG – Social
Improving Working Environment

childbearing

employee-friendly environment as we believe we can only

in 2021 – “That’s great we have learned a lot fromandreinstatement.

We

have

receivedcomments from the participants in the third gathering held

We are deeply engaged in an effort to create anexperienced mothers who are caring for children. We havegrow with people working there are rich in mind.

heard them actually saying, which is far better than any

To support our employees to balance work and family

information from a verbal communication site or SNS on

including childcare and nursing care, we improved andthe web.

evolved our “childcare support system” in 2009, andenacted nursing care system in 2010.

We worked out “General Employers Action Plan” basedon “The Act on Advancement of Measures to Support
Raising Next-Generation Children” in 2015 and 2020, andwe worked out “General Employers Action Plan” based on“The Act on Promotion of Women’s Participation andAdvancement in the Workplace” in 2016 and 2020. We

have offered a platform to exchange information for

YUSHIN Mama’s Meeting– regularly held to support working mothers since 2019.

employees on childcare leave to ease their anxiety of20

ESG – Governance
Basic Views on Corporate Governance
The Company aims at achieving sustainable growth and maximizing the enterprise value for medium- and long-term underthe management philosophy with obtaining credibility from all stakeholders surrounding us including shareholders.
We strive to strengthen corporate governance with the basic policy of following five items.

1. The Company respects the rights of shareholders and ensures equality, as well as strives to improve the environment for
executing rights appropriately and protect rights.

2. The Company strives to sincerely cooperate with stakeholders excluding our shareholders with good sense.

3. The Company strives to ensure the transparency by appropriately making disclosure according to laws and regulations andvoluntarily providing information excluding the disclosure.

4. The Board of Directors strives to execute its roles and duties appropriately for transparent/fair and flexible decision-making.

5. The Company strives to positively communicate with shareholders after sharing the direction of its stable growth forlong-term.

Ensuring Effectiveness of Board of Directors
and Board of Corporate Auditors

Corporate Auditor does not concurrently serve as an officer
of other companies, and the system is established that they
can be devoted to their work at all times.

Under rapidly changing business environment andExternal Directors now analyze and evaluate whole of theadvancement of globalization, the Company appoints

candidates of Directors with a focus on balance among

Board of Directors. To further improve the functions of the

viewpoints. Now 8 Directors, including External Directors,of the whole Board including their methods are currently

Board of Directors, analysis and evaluation of effectivenessknowledge, experience and expertise, diversity and global

examined after conducting a questionnaire.

take office. The Company will keep the number of the board

members that immediate decision-making is conducted witheach member providing his or her expertise and exchanging
opinions each other.

Concurrent holding of positions of other companies by

Board of Directors
8 Directers

Board ofCorporate Auditors
3 Auditors

3 Independent
Directors

2 Independent
Auditors

External Directors and Corporate Auditors is annually

disclosed at “the Notice of Convocation for the General

Meeting of Shareholders,” “Securities Report” and “Corporate

Governance Report.” No Executive Directors concurrently

serve as an officer of other listed companies, excluding thoseof our group, and the system is established that Executive

Directors can be devoted on works of Directors. Full-timeNomination and Compensation Committee
In February 2020, the Nomination and Compensation Committee was established as an advisory body to the Board of

Directors in order to enhance the fairness, transparency and objectivity of procedures related to the nomination andcompensation of the Company's officers and to enhance the Company's corporate governance. As of June 23, 2021, thecommittee was chaired by External Director Yasuo Nishiguchi and comprised five members: Representative Director andPresident Takayo Kotani, External Director Hiroshi Matsuhisa, External Director Reiko Nakayama, External Corporate Auditor
Hiroho Kamakura, and External Corporate Auditor Naohiro Tsuda. During the fiscal year ended March 31, 2021, the committee
met four times and deliberated on matters related to the appointment of officers and the review of the compensation systemfor officers.

21

Corporate Governance StructureInternal Director / Auditor
External Director / Auditor
General Meeting of Shareholders

Appointment
Dismissal

Appointment
Dismissal

Appointment
Dismissal

Nomination andRemuneration Committee

Board of Corporate
Auditors

Consultation / Report

Board of Directors

AuiditAppointment / Dismissal /Supervision

Proposal / Report
Representative Director

Cooperation

Cooperation

Proposal / ReportSupervision
Instruction

ReportSupervision
Instruction

Executive Meeting
Management Supervision

Cooperation
Accounting
AuditorInternal
Audit OfficeInternal
Audit

AuiditCommittee ofInternal Control

Sales Division

R&D Division

Manufacturing
Division

Purchasing
Division

Administrative Dept.

Dept. under the
Direct control of
President

Training
Supervision

Subsidiaries

Our Board of Directors, whose members have high level of expertise and vast amount of experience, makes decisions to

execute all of our operation properly and smoothly. The current administrative system enables us swift decision-making andflexible execution of operation by the Board of Directors which is made of a small group. This system is reasonable as we
operate single and medium scale business. In addition, the Board of Corporate Auditors, which includes External Auditors
who have a great deal of expertise, audits us strictly to monitor the management.

22

Directors and Auditors

8

7<Date of Birth>

1

3

5

4

1

2

6

9

10

11

Career summary, position, areas of responsibility, and representation of other organizations

Representative Director and President

Takayo Kotani(Name on family register: Takayo Oda)
<August 26, 1977>

April 2008

Joined the Company

April 2009

General Manager of R&D Department

October 2008
April 2019
June 2019
June 2020

October 2020
Number of shares held:

1,968,532 shares

June 2021

Manager of R&D Section

Executive Officer and General Manager of R&D Department
Executive Officer and General Manager of R&D Division

Managing Director and General Manager of R&D Division

Director, Executive Vice President and General Manager of R&D Division

Representative Director and President (to present)

23

<Date of Birth>

2Career summary, position, areas of responsibility, and representation of other organizations

Executive Managing Director and General
Manager of Manufacturing Division

Yasushi Kitagawa<August 12, 1958>

September 2007
November 2007
April 2008
April 2009
August 2009
June 2010
June 2013
June 2017

Number of shares held:

4,800 shares

3

July 2020
June 2021

Joined the Company
Deputy General Manager of Manufacturing Division
Deputy General Manager of Manufacturing Division and Quality Assurance Department
Executive Officer, Deputy General Manager of Manufacturing Division
and Quality Assurance Department
Executive Officer, General Manager of Manufacturing Division
and Quality Assurance Department
Director and General Manager of Manufacturing Division and Quality Assurance Department
Managing Director and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director and General Manager of Manufacturing Division
Executive Managing Director and General Manager of Manufacturing Division
and General Manager of Purchase Division (to present)

Managing Director and General Manager ofGeneral Affairs Department

Kota Oda<June 10, 1978>

October 2015
April 2019
June 2020
June 2021

Joined the Company as General Manager of General Affairs Department

Executive Officer and General Manager of General Affairs Department

Director and General Manager of General Affairs Department
Managing Director and General Manager of General Affairs
Department (to present)

Number of shares held:

10,000 shares4

Director and General Manager of Sales Division

Tomohiro Inano<December 13, 1962>

Number of shares held:

3,400 shares

5

June 1989
August 2005

Joined the Company
General Manager of YUSHIN PRECISION EQUIPMENT TRADING(SHENZHEN) CO., LTD.
April 2008
General Manager of Chinese Area and YUSHIN PRECISIONEQUIPMENT TRADING (SHENZHEN) CO., LTD.
July 2009
Assistant to General Manager of Sales Division
February 2010 Deputy General Manager of Sales Division
March 2011
General Manager of Sales Division
March 2014
Executive Officer and General Manager of Sales Division
June 2017
Director and General Manager of Sales Division (to present)

Director and General Manager of Corporate
Management Department

Masahito Fukui<June 30, 1960>

October 2013

Joined the Company as General Manager of Internal Audit Office

April 2017

Executive Officer and General Manager of Corporate Management

July 2015

April 2020
June 2020
Number of shares held:

2,200 shares

General Manager of Accounting Department

Department and General Manager of Accounting Department

Executive Officer and General Manager of Corporate Management
Department

Director and General Manager of Corporate Management
Department (to present)24

<Date of Birth>

6Career summary, position, areas of responsibility, and representation of other organizations

External Director

Yasuo Nishiguchi<October 9, 1943>

External Independent
March 1975

Joined Kyoto Ceramic Co., Ltd. (currently Kyocera Corporation)

June 1992

Senior Managing Director and Representative Director

June 1987
June 1997
June 1999
June 2003
June 2005
Number of shares held:

41,000 shares

President and Representative Director

President and Representative Director and President and Executive Officer
Chairman of the Board and Representative Director, and Chief Executive Officer

Advisor and Director

June 2014

External Director of the Company (to present)

June 2009

June 2016

March 2018
April 2020

Retired from the office of Director

Chairman and CEO of Socionext Inc.

Outside Director of YAMADA Consulting Group Co., Ltd.
Retired from Chairman and CEO of Socionext Inc.

Chairman of YAMADA Consulting Group Co., Ltd. (to present)

External Director

Hiroshi Matsuhisa<August 5, 1947>

External Independent
June 1976

Research Assistant of school of precision engineering

October 1987

Assistant professor

April 1994

Number of shares held:

15,000 sharesin Faculty of Engineering at Kyoto University

Professor (transferred to graduate school of department of MechanicalEngineering and Science by a reorganization in 1995)

April 2012

Professor emeritus at Kyoto University (to present)

June 2016

Outside Corporate Auditor of Technology Seed Incubation Co., Ltd.

June 2014

8

Executive Vice president and Representative Director

April 2006

March 20157

Director

June 2018

External Director of the Company (to present)

Retired from Outside Corporate Auditor of Technology Seed Incubation Co., Ltd.

External Director

Reiko Nakayama<April 2, 1959>

External Independent
April 1983

Joined Japan Associated Finance Co., Ltd. (currently JAFCO Co., Ltd)

January 1997

Joined Marusan Securities Co., Ltd.

October 2004

General Manager of Underwriting

March 2000

October 2008

General Manager of Investment information
Part-time Director of LivTech, Inc.

February 2009 Director and Head of Administrative H.Q. of LivTech, Inc.
Number of shares held:

15,062 shares

March 2013

Retired from the office of Director of LivTech, Inc.

March 2016

Director of LUCKLAND CO.,LTD (Audits Committee) (to present)

March 2015
June 2018
June 2019

Outside Director of LUCKLAND CO.,LTD

External Director of the Company (to present)

Outside Director of Mandom Corporation (to present)25

<Date of Birth>

9Career summary, position, areas of responsibility, and representation of other organizations

Full-time Corporate Auditor

Katsumi Noda

<August 19, 1959>

April 1982

March 1999

Joined the Company

Manager of Manufacturing Section 3

December 2001 Manager of Sales Engineering Department
April 2005

Manager of System Engineering Department

October 2010

General Manager of System Engineering Department

June 2020

Full-time Corporate Auditor of the Company (to present)

October 2019

Mandatory Retired

Number of shares held:

9,014 shares

10

External Corporate Auditor

Hiroho Kamakura<January 27, 1947>

External Independent
November 1971 Joined Tohmatsu Aoki & Co. (currently “Deloitte Touche
May 1973
July 2012
July 2012
March 2013

Number of shares held:

8,000 shares

11

February 2018

Tohmatsu LLC”)

Registered as CPA

External Corporate Auditor of the Company (to present)

Outside Corporate Auditor of Trusco Nakayama Corporation(to present)

Outside Corporate Auditor of FUJIO FOOD SYSTEM CO., LTD.

(currently “FUJIO FOOD GROUP INC.”) (to present)

Outside Corporate Auditor of SymEnergy Inc. (to present)

External Corporate Auditor

Naohiro Tsuda<August 14, 1956>

New
April 1990

Registered as attorney

October 1995

Joined Naniwabashi Law Office (currently “Naniwabashi Law

April 1990

June 2003
June 2009
Number of shares held:- shares

External Independent

June 2021

Joined Honda Mutsushi Law Office.
Office LPC”)

Outside Corporate Auditor of TOYO SHUTTER CO., LTD.
(to present)

Senior Partner of Naniwabashi Law Office LPC (to present)
External Corporate Auditor of the Company (to present)

A message from a newly appointed Corporate Auditor:
Corporations are being called upon to fulfill their social responsibilities interms of compliance, and today they are expected to take a proactive

approach to the SDGs and ESG. YUSHIN is committed to making further
progress and development as a company that contributes to such a society.

26

Directors’ and Auditors’ Skills Matrix
We have identified skills (knowledge, experience, and ability) necessary for our Board of Directors to exercise their abilities
for decision making and management auditing to proceed towards the realization of persistent grows from now onwards inthe context of YUSHIN’s business environment and characteristic.
Our Board of Directors is composed of members with diverse experience, knowledge and abilities, and makes decisions
quickly and appropriately. Our Board of Directors fulfills its roles and responsibilities as a Board of Directors by realizing highly

Male

Tomohiro
Inano

Director

Male

Masahito
Fukui

Director

Male

Yasuo
Nishiguchi

External
Director

Male

HiroshiMatsuhisa

External
Director

Male

Reiko
Nakayama

External
DirectorFemaleKatsumiNoda

Full-time
Corporate
Auditor

Male

HirohoKamakura

External
Corporate
AuditorMale

Naohiro
Tsuda

External
Corporate
Auditor

Male

This table shows the three primary skills of each personnel excluding Management.
This table does not show all knowledge or experience of each personnel.

27

Governance,risk management
and complianceManaging
Director

IT and DX

Kota
Oda

Finance andaccounting

Male

GlobalExecutive
Managing
Director

Sales andMarketing

Yasushi
Kitagawa

Human resource
development
and sustainability

FemaleDevelopment,
Engineering,and quality

Representative
Directorand PresidentManagement

GenderTakayoKotaniName

Position

effective supervisory functions.

Data Collection

Financial Information
Key Indicators
FY2013

FY2012FY2014FY2015Net sales

14,240,008

14,721,643

17,909,292

17,799,020

Gross proft

5,429,937

5,770,806

7,640,276

7,277,594

38.1%

39.2%

42.7%

40.9%

1,272,895

1,498,722

2,792,058

2,304,276

8.9%

10.2%

15.6%

12.9%

1,265,740

1,746,573

3,095,258

2,542,871

8.9%

11.9%

17.3%

14.3%

778,283

1,114,801

1,893,027

1,683,479

5.5%

7.6%

10.6%

9.5%

22,641,673

23,744,465

26,252,009

29,463,773

3.52%

4.81%

7.57%

6.04%

-

-

-

-

Net assets

18,787,344

19,865,622

21,875,926

23,970,142

Equity ratio

82.8%

83.4%

82.9%

80.6%

Return on equity

4.18%

5.78%

9.11%

7.40%

Gross profit to net sales
Operating profit
Operating profit to net sales
Ordinary profit
Ordinary profit to net sales
Profit attributable to owners of parent
Profit attributable to owners of parent to net sales

Total assets
Return on assets
Interest-bearing debt

FY2015FY2014FY2013

FY2012
Cash flows from operating activities

584

520

2,575

2,104

Cash flows from investing activities(1,920)(781)(2,389)(256)

Cash flows from financing activities

(409)

(351)

(569)

(560)

Cash and cash equivalents at end of period

8,013

7,564

7,506

9,089

Capital investment

2,009

1,225

1,924

682

Depreciation

166

170

282

277

R&D expenses

565

591

448

472

No. of shares issued (Shares)

17,819,033

17,819,033

17,819,033

17,819,033

No. of treasury shares (Shares)

328,960

329,376

330,197

330,904

Earnings per share (Yen)

44.50

63.74

108.24

96.26

Book value per share (Yen)

1,072.24

1,131.63

1,243.88

1,357.36

Dividends par share (Yen)

20

30

30

30

Dividend payout ratio

44.9%

47.1%

27.7%

31.2%

Employees (Persons)

571

588

589

601

29

(Thousands of Yen)FY2021

FY2020FY2017FY2018FY201921,148,591

19,346,399

20,878,651

21,833,399

20,011,700

18,473,964

8,442,768

7,666,369

8,461,348

8,741,219

8,020,037

7,875,173

39.9%

39.6%

40.5%

40.0%

40.1%

42.6%

3,086,063

2,112,643

2,358,732

2,760,802

2,309,496

2,522,141

14.6%

10.9%

11.3%

12.6%

11.5%

13.7%

2,921,754

2,058,192

2,432,690

2,791,364

2,205,033

2,608,925

13.8%

10.6%

11.7%

12.8%

11.0%

14.1%

1,908,626

1,380,273

1,626,768

1,903,435

1,532,851

1,827,868

9.0%

7.1%

7.8%

8.7%

7.7%

9.9%

29,409,602

30,761,736

32,572,888

33,197,260

31,933,368

34,688,675

6.48%

4.59%

5.14%

5.79%

4.71%

5.49%

-

-

-

-

-

-

24,715,668

25,451,718

26,472,034

27,117,484

27,471,961

29,199,402

83.3%

82.1%

80.6%

80.9%

85.3%

83.5%

7.91%

5.55%

6.32%

7.17%

5.67%

6.51%

FY2016(Millions of Yen)FY2021

FY2020FY2019FY2018FY2017FY2016
2,218

1,626

1,223

2,291

3,558

3,487

(5,105)(471)(2,511)(61)(1,475)(1,987)

(677)

(678)

(659)

(1,316)

(946)

(561)

5,297

5,690

3,763

4,669

5,652

6,846

4,754

546

652

256

198

125

268

474

924

778

703

643

510

619

598

413

369

347

17,819,033

17,819,033

17,819,033

35,638,066

35,638,066

35,638,066

331,208

331,715331,982

1,333,548

1,602,454

1,602,518

109.14

78.93

93.03

54.54

45.01

53.70

1,401.54

1,444.38

1,500.75

783.03800.04850.95

36

36

33

17

18

18

33.0%

45.6%

35.5%

30.9%

40.0%

33.5%

636

663

683

683

689

681

30

Financial Information
Consolidated Balance Sheets (Fiscal Year-end)(Thousands of Yen)FY2017FY2018FY2019FY2020

FY2021

Cash and deposits

5,734,493

5,655,106

6,362,933

8,646,219

11,690,730

Notes and accounts receivable - trade

6,479,748

7,042,925

6,844,705

5,410,654

5,563,680

Merchandise and finished goods

769,815825,365

717,394

772,690

1,007,401

Work in process

884,830

1,117,029

1,696,139

1,120,628

987,869

Raw materials and supplies

2,179,141

3,542,893

3,619,833

3,165,533

2,987,777

Consumption taxes receivable

515,608

197,063

34,295

19,143

71,912

Other374,476

567,362

707,880

276,266

236,954

Allowance for doubtful accounts(21,298)(20,151)(18,327)(19,247)(36,825)

16,916,816

18,927,595

19,964,853

19,391,889

22,509,500

6,041,212

5,424,201

4,995,284

4,554,294

4,166,174

193,037

162,285

147,766

137,466

116,036

5,784,160

6,133,446

6,130,716

6,107,772

6,129,718

5,749

4,855

8,549

10,19922,001

231,654

158,631

126,148

96,244

97,627

12,255,813

11,883,420

11,408,464

10,905,97810,531,559

Other473,285

494,152

429,392

358,333

254,601

Total intangible assets

473,285

494,152

429,392

358,333

254,601

Investment securities

220,783

276,387

218,062

159,973285,724

Retirement benefit asset

292,959274,331

294,037

285,556

296,727

Deferred tax assets

452,334

574,606

705,335

658,373

621,419

Other

149,999

162,895

196,910

193,669

209,365

Allowance for doubtful accounts(251)(20,501)(19,795)(20,403)(20,224)

Total investments and other assets

1,115,821

1,267,720

1,394,549

1,277,168

1,393,012

Total non-current assets

13,844,920

13,645,293

13,232,406

12,541,479

12,179,174

Total assets

30,761,736

32,572,888

33,197,260

31,933,368

34,688,675

ASSETS
Current assets

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

31

(Thousands of Yen)FY2017FY2018FY2019Notes and accounts payable - trade

1,686,219

1,764,363

1,331,229

895,133

1,933,977

Electronically recorded obligations - operating

1,306,059

1,140,929

1,035,982

803,258

839,221

Accounts payable - other

750,992

505,356

492,256

418,287

542,158

Income taxes payable

100,112608,628

523,827

137,914400,497

Advances received

604,929

1,175,887

1,755,449

1,270,310

789,464

Provision for bonuses

252,861

256,847

273,647

267,606

282,429

Provision for bonuses for directors

22,71029,84037,52023,41042,800

Provision for product warranties

122,870

145,325

147,609

178,399

162,715

Other

245,736

270,318

262,543

256,484

328,688

5,092,491

5,897,496

5,860,064

4,250,803

5,321,953

Provision for retirement benefits for directors

66,78066,78066,78066,780-Retirement benefit liability

53,85351,48665,72362,91987,948Deferred tax liabilities

37,46132,85537,32434,43835,955

Other59,431

52,23649,882

46,46643,415

Total noncurrent liabilities

217,526

203,358

219,710

210,603

167,319

5,310,018

6,100,854

6,079,775

4,461,407

5,489,273

Share capital

1,985,666

1,985,666

1,985,666

1,985,666

1,985,666

Capital surplus

2,023,903

2,023,903

2,023,903

2,023,903

2,024,597

Retained earnings

21,273,290

22,270,517

23,579,393

24,531,217

25,848,552

Treasury shares(353,994)(354,848)(1,039,026)(1,355,167)(1,355,222)

24,928,866

25,925,238

26,549,936

27,185,619

28,503,594

Valuation difference on available-for-sale securities

58,545

97,10356,815

16,443103,840

Foreign currency translation adjustment

203,291

164,323

184,923(34,487)

290,333

Remeasurements of defined benefit plans

67,69956,982

69,74362,16964,753

Total accumulated other comprehensive income

329,536

318,409311,482

44,125458,927

193,315228,385

256,066

242,216

236,879

Total net assets

25,451,718

26,472,034

27,117,484

27,471,961

29,199,402

Total liabilities and net assets

30,761,736

32,572,888

33,197,260

31,933,368

34,688,675

FY2020

FY2021

LIABILITIESCurrent liabilities

Total current liabilities
Non-current liabilities

Total liabilities
NET ASSETS
Shareholders' equity

Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests

32

Financial Information
Consolidated Statements of Income(Thousands of Yen)FY2017FY2018FY2019FY2020

FY2021

Net sales

19,346,399

20,878,651

21,833,399

20,011,700

18,473,964

Cost of sales

11,680,029

12,417,302

13,092,179

11,991,662

10,598,790

60.4%

59.5%

60.0%

59.9%

57.4%

7,666,369

8,461,348

8,741,219

8,020,037

7,875,173

39.6%

40.5%

40.0%

40.1%

42.6%

Selling, general and administrative expenses

5,553,726

6,102,616

5,980,416

5,710,541

5,353,032

Operating profit

2,112,643

2,358,732

2,760,802

2,309,496

2,522,141

10.9%

11.3%

12.6%

11.5%

13.7%

Interest income

6,072

5,900

5,316

6,782

6,139

Dividend income

4,683

4,697

5,162

6,646

5,743

Purchase discounts

12,556

14,657

13,41010,126

6,846

-

-

-

-

34,653

Subsidy income

22,942

89,26849,499-15,552

Other

35,651

14,90836,55522,92819,384

Total non-operating income

81,905

129,431

109,943

46,48488,319

1,209

647

1,105

1,170

606

129,316

54,302

77,406

147,975

-

5,830

523

869

1,801

928

136,356

55,47379,381150,947

1,535

2,058,192

2,432,690

2,791,364

2,205,033

2,608,925

10.6%

11.7%

12.8%

11.0%

14.1%

Gain on sales of non-current assets

1,755

7,268

2,423

5,669

1,964

Gain on sales of investment securities

574

-

-

-

-

2,329

7,268

2,423

5,669

1,964

50,881

1,682

9,924

1,185

74

-

92

214

1,000

-

50,881

1,775

10,1382,185

742,009,640

2,438,183

2,783,649

2,208,516

2,610,815

598,005755,337

819,799629,267

752,971

1,411,635

1,682,846

1,963,849

1,579,248

1,857,844

Profit attributable to non-controlling interests

31,361

56,07760,414

46,397

29,975

Profit attributable to owners of parent

1,380,273

1,626,768

1,903,435

1,532,851

1,827,868

Profit attrivutable to owners of parent to net sales

7.1%

7.8%

8.7%

7.7%

9.9%

Cost to net sales
Gross profit
Gross profit to net sales

Operating profit to net sales
Non-operating income

Foreign exchange gains

Non-operating expenses
Sales discounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Ordinary profit to net sales
Extraordinary income

Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Total income taxes
Profit33

Order, Backlog and Sales(Millions of Yen)FY2017FY2018FY2019FY2020

FY2021

Order received by productTake-out robots

13,91015,996

15,54911,885

12,785

Custom-ordered equipment

3,207

3,486

3,679

2,997

2,784

Parts & maintenance service

3,114

3,264

3,418

3,168

3,145

Total

20,232

22,74722,647

18,051

18,715Take-out robots

2,420

2,967

3,004

2,120

3,000

Custom-ordered equipment

1,039

2,321

3,120

2,061

1,423

Parts & maintenance service

206

247

225

208

207

3,667

5,536

6,350

4,390

4,631

Take-out robots

13,41015,44915,512

12,77011,904

Custom-ordered equipment

2,832

2,204

2,880

4,056

3,422

Parts & maintenance service

3,103

3,223

3,440

3,185

3,147

Total

19,346

20,87821,83320,011

18,473

Japan

7,955

8,335

9,304

8,159

6,936

China & Taiwan

2,477

3,468

2,816

2,395

2,753

Other Asia

4,200

4,594

4,876

3,504

3,032

693

687

939

2,079

1,782

3,573

3,172

3,233

3,343

3,375

Others

445

620

663

527

593

Total

19,346

20,87821,83320,011

18,473

5,511

6,106

6,724

5,792

4,247

Medical Products

902

1,087

2,705

4,303

4,878

Electronic parts

3,992

4,807

3,698

3,617

3,305

Electrical appliance

2,862

3,187

3,195

2,110

1,653

Sundry products

1,741

1,981

2,229

1,966

1,764

Containers

1,715

1,799

1,916

1,276

1,496

Discs and optical instruments

2,072

1,342

704

465

624

Others

549

565

657

478

501

Total

19,346

20,87821,83320,011

18,473

Backlog of orders by product

Total

Sales by product

Sales by region

EuropeNorth America

Sales by end-user categories
Automotive products

34

Stock Information
Stock Information
FY2017FY2018FY2019FY2020

FY2021

No. of shares issued (Shares)

17,819,033

17,819,033

35,638,066

35,638,066

35,638,066

No. of treasury shares (Shares)

331,715331,982

1,333,548

1,602,454

1,602,518

No. of shareholders (Persons)

3,483

3,370

4,307

4,348

4,320

Cash dividends (Yen)

36

33

17

18

18

Dividend payout ratio

45.6%

35.5%

30.9%

40.0%

33.5%

Stock Price and Volume Trends *1<Stock price>(Yen)

1:2 Sprits

2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600

7
1/

4

'2

1

1/
'2

'2

'2

1/

10

7

0/

4

0/
'2

0/

1

'2

0/

10

'1

'2

9/

7

4

9/
'1

1

9/
'1

'1

'1

9/

10

7

8/

8/

4

'1

1

8/
'1

8/

'1

10

7

'1

7/

4

7/

7/

'1

1

'1

7/

10
6/

'1

'1

7
6/

'1

'1

6/

4

500

<Cumulative stock trading volume>(Thousands of Shares)

40,00030,00020,00010,000*1

FY20187
1/

4

FY2020

'2

1/
'2

1
1/

10

'2

'2

7
0/

0/

4
0/

FY2019

'2

1
0/

'2

'2

10

7

9/
'1

4

9/
'1

9/

1

'1

9/

10

'1

8/

7

FY2017

'1

'1

8/

4
8/

1
8/

'1

'1

10

7

7/
'1

4

7/
'1

7/

1

'1

7/

10

'1

'1

6/

7
6/

'1

'1

6/

4

0

FY2021Highest price (yen)

1,700

1,940

1,734

1,258

1,037

Lowest price (yen)

795

1,295

774

645

593

Closing price (yen)

1,459

1,727

1,005

673

891

Total Market Value of shares (millions of yen) 51,996

61,54735,81623,98431,754

Cumulative stock trading volume (shares) 18,807,800

30,204,800

19,684,100

11,242,100

14,810,300

Dividend yield

1.2%

1.0%

1.7%

2.7%

2.0%

Price earnings ratio

36.97

37.13

18.43

14.95

16.59

Price book-value ratio

2.02

2.30

1.28

0.84

1.05

Trading values prior to the stock split date have been revised to take into account the stock split.

35

Dividends per Share *2
(Yen)

(%)

50

40

30

20

36
30

44.9%

30

47.1%
10

20
10

10

20
27.7%

31.2%
20

*2

21

21

Commemorate dividend
60

36

35.5%

33.0%

10

10

10

FY2012FY2013

FY2014FY2015151515FY2016FY2017FY2018

33.5%

30.9%

18

17

18
10

13

8

FY2019FY2020

Dividend payout ratio
30

18

8

Interim dividend

45

40.0%

9

10

Year-end dividend

33

45.6%

30

10

0

75

1:2 Sprits

15

5

FY2021

0

The figures in the table show the actual dividend amount.

Distribution of Stockholders
(%)

100

11.60

75

20.17

50

34.80

25

0

0.50

0.78

1.86

FY2019

0.85

1.32

21.95

21.88

10.39

12.56

Securities firms
Individuals
Foreign corp. and others

34.60

35.12

FY2018

0.50

34.85

34.77

1.86

12.79
13.52

16.26

31.07

FY2017

11.21

3.74

34.86

34.78

27.45

24.95

FY20204.50

FY2021Other corporations
Financial institutions
Treasury stock

4.50

Major Shareholders *3, *4
No. of shares held (Thousands)

Shareholder's name

Percentage of shares Held (%)

Yushin Industry Co., Ltd.

11,992

35.2

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,238

6.6

Takayo Kotani

1,968

5.8

Miki Murata

1,847

5.4

Custody Bank of Japan, Ltd. (Trust Accounts)

1,725

5.1

The Kyoto Chuo Shinkin Bank, Ltd.

1,088

3.2

Mayumi Kotani

1,040

3.1

Custody Bank of Japan, Ltd. (Trust Accounts9)

955

2.8

RBC IST 15 PCT NON LENDING ACCOUNT - CLIENT ACCOUNT

860

2.5

MUFG Bank, Ltd.

849

2.5

*3

As of September 30, 2021

*4

Excluding 1,602,646 of treasury shares from the above table.

36General Information
Corporate Information

Company nameYUSHIN PRECISION EQUIPMENT CO., LTD.

President

Takayo Kotani

Address

555 Kuzetonoshiro-cho, Minami-ku, Kyoto, 601-8205 JAPAN

Established

October, 1973

Capital1,985 million yen

No. of employees

689 persons <as of September 30, 2021>

Fiscal year

From April 1 to March 31 of the following year

Business description

Manufacturer of robots and automated stock machines for automatedpart extraction and storage from molding
machines. Total system designs of flexible manufacturing systems (FMS) for plastic injection molding plants.

Main products

Take-out robots of injection molded plastic products automated stock systems and labor-saving automationequipment.

Directors &Auditors, etc.

<as of Sep. 30, 2021>

Honorary Chairman

Mayumi Kotani

Representative Director and President

Takayo Kotani

Executive Managing Director

Yasushi Kitagawa

Managing Director

Kota Oda

Director

Tomohiro Inano

Director

Masahito Fukui

External Director

Yasuo Nishiguchi

External Director

Hiroshi Matsuhisa

External Director

Reiko Nakayama

Corporate Auditor

Katsumi Noda

External Corporate Auditor

Hiroho Kamakura

External Corporate Auditor

Naohiro Tsuda

37

555 Kuzetonoshiro-cho, Minami-ku, Kyoto
601-8205 JAPANwww.yushin.com

2021.12