Segment Overview

Yokowoʼs Business Domain

Vehicle Communication Equipment Segment

The Yokowo Group has implemented and refined a number of technologies such as antenna and microwave
technologies, while further deepening the technologies in micro precision processing. The Companyʼs businessdomain has continually expanded from antennas, connectors and advanced devices, branching out today into threesegments: Vehicle Communication Equipment, Circuit Testing Connector, and Wireless Communication Equipment.

▼Business Domain Map

Vehicle Communication
Equipment

Vehicle Antennas

GNSS Antennas

Circuit Testing Connectors

Wireless CommunicationEquipment

Sales: 13,242 million(+3.2% YOY)

Sales: ¥9,441 million(+11.1% YOY)
Connectors forElectronic Devices(Fine Connectors)

Semiconductor
Testing Tools

Probe Cards

07

Spring connectors

Hi-Giga-Socket

Vehicle Communication
Equipment

Circuit Testing Connector

Yokowo manufactures antennas for cars
(vehicle antennas), such as the SharkFin antenna, mainly for the automotivemarket.
By continuing to develop and propose
antenna systems to the customers
that support next-generation vehiclecommunication which meet the basic
needs required for smaller, multi-use,lower profile and smart vehicle antennas,
Yokowo is helping to create safe andcomfortable mobility services.

Yokowo manufactures probe cards forfront-end testing and sockets for backend testing mainly for the semiconductor
and electronic component testing market.
By making full use of its micro
precision processing and microwave
technologies, the Company provides
solutions for all processes in the areaof testing for electronic devices, suchas semiconductors and electroniccomponents, so as to meet the demands
for smaller size and greater speeds.

Yokowo 2021 Integrated ReportMedicalDevices

Coils for Guide Wires
and Catheter Shafts

Wireless Communication
Equipment
Fine Connector Business
Yokowo is globally developing andproviding minute spring connectors thatmeet the needs for miniaturization andspace saving in various electronic devices,
mainly for the mobile communications
terminal market.

Medical Device Business
Yokowo provides a complete service
from the design to the development
and manufacturing of OEM guide wires,
catheters and other micro precision parts andassembly products, mainly for the minimallyinvasive medical equipment market.

(million yen)

FY2016FY2017FY2018FY2019FY202032,02936,25638,18339,26437,292

Segment Overview

Sales: ¥37,292 million(-5.0% YOY)

Shark Fin Antennas▼Vehicle Communication Equipment - Consolidated Sales

In this segment, Yokowo manufactures vehicle antennas,including Shark Fin and GPS antennas for all areas from low
to high frequency, mainly in China and Vietnam with over
90% of production taking place overseas. Regarding sales, we
mainly provide our vehicle antennas to Japanese automobile
manufacturers, not only in Japan but also globally in the UnitedStates and ASEAN markets. Overseas sales account for over 60%of all sales in this segment.
As a leading company of antenna systems that support nextgeneration vehicle communications, Yokowo will continue
to strengthen its core technologies including antennas, andpromote drastic reforms to its profit structure to continue togenerate long-term profits.

Segment Review (Fiscal 2020)
In the automotive market, this segmentʼs main market,
automobile manufacturers were forced to reduce production in
the first quarter due to the spread of the COVID-19 pandemic. In
the second quarter onward, although the scale of this reduction
shrank as demand began to recover, the overall automotive
industry was impacted by global semiconductor and resinmaterial shortages, so both production and sales declined year
on year. By region, new vehicle sales in the Chinese market
improved greatly from the previous fiscal year. However, in the
United States, ASEAN, and Japanese markets, there was a year
on year decrease due to a fall in demand and the shrinking
and suspension of production in the first half of the fiscal
year. Under these circumstances, from the second quarter
onward, sales of antennas for automobile manufacturers inJapan and overseas, such as Yokowoʼs mainstay Shark Fin andGPS antennas, and sales of products mainly for the domestic
market, such as the ETC antenna, surpassed levels for thesame period of the previous fiscal year due to the recovery ofproduction by automobile manufacturers. However, this was
not enough to offset the decline in sales during the first quarterand overall sales decreased year on year. As a result, net sales inthis segment decreased from the previous fiscal year to 37,292
million yen (down 5.0% on previous year). In regard to segment

VehicleCommunication
Equipment

CircuitTesting
Connectors

Wireless
Communication
Equipment

profit and loss, we not only recorded a loss in the first quarterbut also had a surge in ocean freight charges and an increase inlogistics costs attributable to the increased use of air shipments
due to parts procurement difficulties and production delays,
as well as a temporary decrease in inventory valuation in thesecond half of the fiscal year. Despite this, from the second
quarter onward, factors such as an increase in the proportionof product sales with relatively high profit margins, a decreasein manufacturing costs resulting from cost management
initiatives, and higher yields from manufacturing processes led
to a significant improvement in profit. As a result, we recorded aprofit of 433 million yen (compared to a profit of 30 million yen
in the previous fiscal year).

Segment Policy
Looking ahead, Yokowo will continue to promote further
business expansion and a more layered business model bygaining a full market presence in mobility service fields, such
as MaaS. The Company will do so while working on thedevelopment of more advanced strategic products with higher
levels of added value in new fields such as ADAS, automateddriving, and connected cars.
In addition to investment to increase capacity at its production
bases, Yokowo will forge ahead rebuilding its profit structure
by moving more production from its Chinese plant to its plantin Vietnam. The Company will also overhaul its profit profile
by establishing a plant in the Philippines as a third production
base (due to begin operations in April 2022), and by making themost of strategic alliances while seeking steady expansion of its
automatic assembly lines and automatic testing systems broughtin this fiscal year.

Shark Fin Antennas

GNSS Antennas

Yokowo 2021 Integrated Report08

Segment Overview

Circuit Testing Connectors Segment

Wireless Communication Equipment Segment▼Circuit Testing Connectors - Consolidated Sales

FY2016FY2017FY2018FY2019FY2020

6,883

9,503

9,138

12,832

13,242

Segment Overview
In this segment, Yokowo manufactures contact probes making
full use of its micro precision processing technology, and also
manufactures probe cards for front-end testing and sockets forback-end testing in semiconductor manufacturing processes,
which both use contact probes. Yokowo has production basesin Japan and Malaysia with overseas production accounting forover 60％ in this segment. Products are supplied worldwide,
mainly to semiconductor manufacturers and foundries, with over
80% of sales going overseas.
In recent years, Yokowo has expanded its product lineup in
cutting-edge fields, such as testing sockets for testing 5G devices
that use microwave technology, and probe cards for the testingof high-frequency electronic components (YPX) that make useof MEMS technology. As of March 2021, monthly production
capacity for contact probes was approximately 5.8 million units.

Segment Review (Fiscal 2020)
In the semiconductor testing market, this segmentʼs mainmarket, the COVID-19 pandemic drove an increase in demandfor personal computers due to an increase in people working
remotely and an increase in demand for servers accompanying asudden rise in internet use as people refrained or were restrictedfrom going out. Also, although there was a temporary decline
in demand related to 5G as investment stalled, this recoveredfrom the second half of the fiscal year onward. Under thesecircumstances, sales of the Groupʼs mainstay semiconductor
back-end testing tools remained level with the previous fiscalyear. This was mainly due to sales from major customers
declining across the board from the second quarter onward asa result of the COVID-19 pandemic and trade friction between
the United States and China, despite an increase in orders in
the first quarter. Sales of semiconductor front-end testing toolsrose significantly compared to the previous year as overall sales
grew against the backdrop of a global increase in sales of 5Gsmartphones in the turnkey business, which provides a one-stop
service solution to include peripheral equipment. As a result, net

09(million yen)

Yokowo 2021 Integrated Report

VehicleCommunication
Equipment

CircuitTesting
Connectors

Wireless
Communication
Equipment

sales in this segment grew year on year to 13,242 million yen(up 3.2% on previous year). In terms of profit and loss for thesegment, profit decreased to 2,682 million yen (down 14.4%
on previous year), due to factors such as an increase in fixed
expenses accompanying the enhancement of production systems
in anticipation of recovery and increase in orders, as well as anincrease in fixed expenses for back-office departments following
increased sales.

Segment Policy
Going forward, Yokowoʼs policy is to steadily capture theincrease in demand for semiconductor testing in fields such as
5G, IoT, in-vehicle, and AI. To this end, Yokowo will strongly
promote the strengthening of full-scale systems to; develop
and launch strategic products that target the market for
high-frequency and high speed signal testing related to 5G
communications, invest in capacity increases at domestic andMalaysian plants, invest in improved efficiency and streamlining
such as by building automatic assembly lines and introducing
automatic testing systems, and expand its turnkey business inthe area of semiconductor front-end testing. Yokowo will also
strive to build a more profitable business structure and maintainstable business operations.

Contact
ProbesYPXProbe HeadSockets▼Wireless Communication Equipment - Consolidated Sales(million yen)

FY2016FY2017FY2018FY2019FY2020

5,164

6,158

7,429

8,498

9,441

Segment Overview
This segment consists of two businesses; Fine Connectors andMedical Devices.
In the Fine Connector business, Yokowo manufactures spring
connectors which allow for easy attachment and detachment
to electronic devices. These connectors are manufactured inJapan, Malaysia, and China, with over 80% being produced
overseas. Yokowo supplies a wide range of electronic device
manufacturers in Japan and overseas, with over 80% of sales
going outside Japan.
In the Medical Device business, in addition to micro precisionparts such as OEM guide wires and catheters, Yokowo designs,
develops, and manufactures assembly products at its Tomioka
plant in Japan. Yokowo mainly supplies domestic medical device
manufacturers, with approximately 10% of sales going overseas.

Segment Review (Fiscal 2020)
Although sales of smartphones have been declining in themobile communications terminal market, this segmentʼsmain market, future growth is expected on the back ofmore diversification and functionality with wearable devices.
Moreover, the point of sales (POS) market continues to growsteadily from the perspective of improved operational efficiency
through information management in a wide range of industries,
including logistics and manufacturing. Growth is also expected
in other markets such as industrial equipment. Under thesecircumstances, with fine spring connectors as the businessʼ coreproduct in the Fine Connector business, net sales increased year
on year as sales of POS terminals remained strong and orders
increased for other products, such as mobile terminals for use
in educational facilities. In the Medical Device business, whichis also included in this segment, sales remained roughly levelwith the previous year. The impact of the COVID-19 pandemic
led to a decrease in orders for parts, but sales of new products
sold as complete units were strong. As a result, net sales in thissegment increased from the previous fiscal year to 9,441 million
yen (up 11.1% on previous year). In terms of profit and loss,

VehicleCommunication
Equipment

CircuitTesting
Connectors

Wireless
Communication
Equipment

profit increased to 2,062 million yen (up 17.5% on previousyear) due to factors such as increased revenue from the Fine
Connector business.

Segment Policy
In the Fine Connector business, Yokowo plans to continue
working to expand its business and carry on with the multilayer structuring of its products, markets, and customers.
The Company will do this by accelerating the introduction ofcustom-type connectors such as high-performance, high-speed,large-capacity connectors that meet the product needs of adifferentiated market, and by expanding its standard productlineup to capture new demand.
In the Medical Device business, Yokowo aims to further growthe business by increasing the production capacity of micro
precision parts with the installation of cutting-edge production
equipment and by expanding sales of guide wire and catheterassembly products in Japan and overseas. The Company will
also promote a multi-layered structure to the supply chain in
anticipation of business expansion in the cutting-edge medical
field which is seeing worldwide expansion particularly in theUnited States.

Spring Connectors

Coils for guide wires

Yokowo 2021 Integrated Report10