Securities code: 6524

World-class manufacturing

We have led the industry of lead terminals foraluminum electrolytic capacitors and componentsof submarine optical communication components

Kohoku Kogyo Co., Ltd.
Nov. 2022

About Us

Company NameKOHOKU KOGYO Co., Ltd.

Head Office1623 Takatsuki, Takatsuki Town, Nagahama City, Shiga Prefecture

representative

President & CEO Futoshi Ishii

Established

August 1959

Capital

350 million yen
 Manufacture and sale of lead terminals for aluminum electrolytic capacitors

Business contents

 Manufacture and sale of optical components and devices for fiber opticcommunication networks
Consolidated
subsidiaries

5 companies (Overseas)

Number of Employees

Consolidated:

1,670*As of the end of June 2022

1Subsidiaries and Offices
Worldwide operations from 7 locations in 5 countries

Kohoku Kogyo Co.,Ltd.

Manufacturing / Sales (established in 2002)

Suzhou Kohoku OptoElectronics Co.,Ltd.
Lead Terminal Business

Lead Terminal Business

Optical Components & Devices
Business

Optical Components & Devices
BusinesssalesTokyo Branch

Manufacturing / Sales (established in 2000)

Dongguan Kohoku
Electronics Co.,Ltd.

R&D / Manufacturing / Sales
Headquarters andMain Plant

Lead Terminal Business

Manufacturing / Sales (established in 1994)

KOHOKU ELECTRONICS (M)SDN. BHD.
Lead Terminal Business

Manufacturing (acquired in 2015)

KOHOKU LANKA (PVT) LTD.
Optical Components & Devices
BusinessSales (established in 1987)

KOHOKU ELECTRONICS(S) PTE. LTD.
Lead Terminal Business

Optical Components & Devices
Business2

Management Philosophy

Management Philosophy

Practice all-participating-type management
respecting rich originality to aim for an “onlyone” company through creation of new values

3History
Since our establishment in 1959, the company's business foundation has been supported bycontinuous technological innovation.
AugustSeptember

DecemberEstablished Kohoku Kogyo Co., Ltd.

Full-scale launch of opticalcomponent businessconsolidated net sales
First to exceed 10 billion yen

1959

1987

2000

2015

2020

DecemberFebruaryFirst overseas expansion (Singapore)

Acquired optical device business(FDK Corporation)

2021

Listed on the Second Section of
the Tokyo Stock Exchange⇒Standard4

Trend of Business Performance
Thousands of Yen

千円

4,500,000
4,004,183

3,950,680

4,000,000

3,943,341

3,954,207
3,670,957
3,499,411

3,498,970

3,500,000
2,877,815

3,000,000

3,102,4113,000,318

2,712,698
2,541,649

2,500,000

2,532,535

2,268,339
2,121,107

2,000,000
1,500,000
802,127
565,441

500,000
0132,279
54,734

225,545
116,826

336,948

1Q

2Q

3Q

557,323

526,300

860,790
500,459

575,423

304,665

1Q

2Q

FY2019

売上高/Net Sales

629,687

738,963

3Q

4Q

1Q

934,613292,372
156,017

16,175

4Q

730,769

970,225

982,924

1,000,000

1,062,766 979,553
1,072,967
930,909875,893
886,425

1,119,184

1,102,081

3Q

4Q

FY2020

営業利益/Operating profit

1Q

2Q
FY2021

2Q3Q

FY2022

当期純利益/Net Income

Notice：Figures prior to the fiscal year ended December 31, 2010 are unaudited.

5Business contents
World leader in two areas: components for aluminum electrolytic capacitors and submarine optical fiber communications

52%
Lead Terminal Business
Lead terminals for aluminumelectrolytic capacitors

48%
FY12/2021
consolidated
net sales
14,620
million yen

Optical Components & Devices BusinessSubmarine fiber optic communication devices

Main Products

Global market share: 60% or moremarket shareInnovation in the Automotive & NetworkingIndustry

Global market share: 50% or more
Increased communication capacity

Applications andContributing Fields

in-vehicle

base station

5GIoT

6

Competitive Advantage
Kohoku has established three barriers to entry around its core technology

Top market shares
Long-term stable business relationships

Protected by patents
Core technologies in eachprocess are protected

Know-how difficult to imitate
Competitors

Customers

Mass production technology using
proprietary technologies

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Lead Terminal Business

Our Strengths and Barriers to Entry
Core technology is preserved by patents, while mass production technology is black boxed (in-housedeveloped manufacturing equipment)
Establishment of an integrated production line by combining coretechnologies

core technology

manufacturing
process

welding dissimilar metal

welding

patentpress

cleaning

chemicalformation

 burr-free Vibration-resistantAlkali cleaning

 oxide insulating film

structure Ribrounding

overwhelming competitive
advantage

CP wire tip
roundingCore technology is protected by patents

Core Technology Topics
Differentiation through in-house developed
manufacturing equipment core technology
Welding of dissimilar metals
Shape and short-circuit measures

Monthly production volume of mass-produced
lead terminals is 4 billion units, equivalent to
the length of 3.6 times the Earth or 20 million
vehicles.

Self-developed power source Welding
temperature is 2,000°C, realizing 5 welds persecond at high speed
Ultra-high speed production 5 lead terminals
per second

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Lead Terminal Business

Growth driverIn the automotive and telecommunications markets, where we are focusing our efforts, there is astrong tailwind from the shift to EVs, the spread of 5G, and other factors.
2022

2023

in-vehicle

2024

2025

base station

Electric Vehicles, Automated Driving,Mobility
Metaverse, VR, AI Robots
Communication base station (6G)

automotivemarket
Communication
Base Station

2030

Automotive (in-vehicle): EV (electric vehicle), automated driving / mobility/ communication base station (5G) / AI/
Renewable Energy / Carbon Neutral

Hybrid capacitor
Aluminum ElectrolyticCapacitors

Hybrid capacitor
Electric double layer capacitor

Lithium IonCapacitor

Electric Double Layer Capacitor
Lithium Ion Capacitor

supercapacitor

Meeting technological innovation and quality requirements throughnew product development
9Optical Components & Devices
BusinessOur Strengths and Barriers to Entry
High reliability spun by our one and only integrated production, patent-backed material technology
and precision processing technology
patentpatentMaterials Technology ①｜ Compositional Design

Precision Machining ①｜ Precision Assembly•

Product design based on field experience•

In-house designed jigs and tools and skilled personnel•

Technology for blending the main raw material iron withadditive materials•

Unique assembly technology with an accuracy of lessthan 1 micron

Head office factory
Compositional Design

Element making

Sri Lanka Factory
precision assembly

inspection

Optical Isolators

Screening test
Lot Assurance Testing
Whole number test

Manufacturing
Process

raw materials

Functional material: Faraday rotator

patentMaterial technology ②｜ Device manufacturing

Precision Machining②｜ Inspection•Process technology for crystal growth and processing• Screening to prevent initial failure•

Creation of elements in accordance with productspecifications• Lot Assurance Testing Know-How

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Optical Components & Devices
Business

R & D Stories
Product deployment of compact and composite optical devices for multi-core submarine cables

2015

2020

2025

2030

Trends in Multi-Core High-Speed, High-Capacity Submarine Cables from a Technology Trend Perspective
Driven by video
distribution

trend

telecommunications
carrierDriven by VR

Metaverse Worlds

Rise of G.A.F.A. and others

multicoresubmarine
optical cable

Number ofPairs

8FPBusiness Strategy (from 2022)

1

Product Enhancements

2

Strengthening production
capacity

16FP

24 FP

Start of production
Miniature OpticalDevices

multicore fiber

32 FP

development Optical
Composite
Devices

XX FP

2022 - Development

MCF optical isolator

Investment in Sri Lanka Plant
Promotion of semi-automation (from 2022)11

To a new business pillar - Expansion into cutting-edge niche markets
Unlocking the Potential of Quartz and Aiming to Develop New Applications
Quartz glass preform

Slurry casting method

Extremely high degree of
freedom of shapeQuartz

Excellent UV transmittance
OtherApplication Development

Example of Deployment
Development of quartz molded parts, which had been
considered difficult to put to practical use

Semiconductor Equipment

Medical Equipment

Laser Processing
12Image of Business Growth
Growth curve while maintaining high profitability, backed by the high potential of the market

Next Generation
Business

FY12/2021

2015

Net sales (billions yen)

Acquisition of submarine cablebusiness (FDK Corporation)

15010050

Optical Components & Devices
Business

2000
August 1959
EstablishedStarted full-scale OpticalComponents & Devices Business
Lead Terminal Business0
Lead Terminal
Business

Driven by consumer electronics and PCs
Optical Components &Devices Business

Automotive electrification
Internet
Smartphones

5G/IoTEV
metaverse

13Topics - ESG Activities
Through our business activities, we will contribute to efforts to reduce global warming gas emissions,such as the generation of electricity from renewable energy sources, and the conversion of automobiles
to electric vehicles, and we will also contribute to the maintenance and development of the optical fiber
high-speed, large capacity communications network, which consists of the information andcommunications infrastructure that supports the reduction of such emissions.

E•

Introduction of solar power generation, purchaseof electricity derived from renewable energy
sources•

Support for conservation activities of wetlands

SG• Support for agricultural highschools through scholarshipprograms• Strengthening of complianceeducation and training(Forest of Yamakado Water Source north of Lake Biwa)•Received the highest rating (3 stars) in the "Shiga
Biodiversity Action Certification Program

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This document contains our current plans and forecasts. Such future plans andforecasts are based on the information available to us and our plans andforecasts. Actual results may differ from these plans and forecasts due to various
conditions and factors. This material is not a commitment or guarantee of its
realization.

IR Team, Kohoku Kogyo Co., Ltd.

E-mail: ir@kohokukogyo.co.jp
Phone: +81-749-85-3211 FAX: +81-749-85-3217

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