Enomoto : Published Annual report 2023

A N N U A L R E P O R T

Contents

Management Strategy

President's Message		01
Officer Matrix		03
Our Ways		05
1st STEP of Vision 2030	06
GHG emission reduction plan	08
ESG - Solar Power Generation Equipment	07

Financial Review

Summary of Selected Financial Data
(consolidated)	09
Highlights			10
Business Composition by Segment	11
Consolidated Financial Statements	13

Corporate Information
Company History	17
Corporate Data	18

President's Message

President

Nobuyuki Takeuchi

武内 延公

Management Philosophy

The ENOMOTO Group has been contributing to Japanese manufacturing since its founding in 1962, underpinned by its Management Philosophy of "recognizing that people are at the heart of business management, ENOMOTO is committed to healthy manufacturing as its contribution to the development of an affluent society." Achievements in this regard have involved developing numerous new technologies related to press processing, establishing die technologies encompassing a wide range of processes such as blanking, bending, drawing and resin molding, and coming up with ultrafine composite machining technologies for metal and plastic geared to addressing fast-evolving market needs for miniaturization, higher performance and more functions.

Our products in particular include lead frames for opto-electronic devices typified by light- emitting diodes (LEDs) which constitute an energy-saving product that helps combat global warming, components for micro pitch connectors installed in smartphones and other IT devices and various types of semiconductor lead frames essential for facilitating the spread of self-driving vehicles and IoT. We take pride in these products, which are key technological elements poised to help bring about advances in society going forward. Also, we believe that supplying these products to major manufacturers worldwide will enable the Group to continue playing an indispensable role with respect to helping in bringing about a prosperous society in the future.

2022 Economic Condition

In the previous fiscal year, Although Japan's economy has seen a noticeable normalization of economic activity as restrictions on overseas travel and other activities have been eased, the impact of soaring commodity and energy prices and rapid exchange rate fluctuations due to overseas situations such as the situation in Russia and Ukraine was strongly felt throughout the economy.

In the electronic components industry to which the Group belongs, continues to be unstable due to inventory adjustments caused by the stagnation of the Chinese economy, and demand for parts related to consumer devices such as smartphones has fallen significantly, especially since the end of the year.

Under these circumstances, our group has developed production technology for lead frames for power semiconductors which demand is increasing worldwide, and parts for ultra- fine connectors which can take full advantage of our advanced metal and resin composite processing technology. In the plating process, we have worked to improve profitability by focusing particularly on strengthening our technological capabilities and production capacity. At the same time, with the aim of further strengthening profitability, we are actively investing in building systems for smart factories and automating and improving the efficiency of work and management.

2022 Our Financial Performance

In the fiscal year ended 31 March 2023, the Company consequently generated net sales of 29,265 million yen((Increased 7.4% YoY), operating profit of 1,561 million yen (Decreased 22.4% YoY) due to an increase in depreciation and labor costs associated with production capacity expansion, an increase in expenses due to a rise in energy prices, and a temporary change in the product mix due to adjustments in the smartphone market. Ordinary profit of 1,805 million yen (Decreased 12.1% YoY), and profit attributable to owners of parent of 1,269 million yen (Decreased 17.9% YoY) .

We will continue to work as one to improve our business performance and strengthen our management base, and we look forward to your continued support.

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Officer Matrix

Inside

Directors

		Nobuyuki	Homare	Nobuo	Mitsuhiro	Hideo
		Takeuchi	Shiratori	Sakurai	Kushima	Ogawa
		Representative	Representative	Director	Director	Director
		director	director
			Senior Managing
Roles and		Director /
Responsibilities	President /	Chief Operating	Chief Officer of	Chief	Chief Officer of
		Chief Executive	Officer/	Headquarters	Sustainability	Overseas
		Officer	Chief Officer of	Production	Officer	Business
			Domestic
			Business
Gender	●Male	●	●	●	●	●
○Female
Independent Officer
	Management	★	★		★	★
	Strategy
	Technology	★	★	★		★
	and Quality
	Control
	Marketing	★	★	★		★
	and Sales
	Global	★	★			★
	Business
	Human		★
Skills	Resource
	Development
	Environment			★	★
	and Society
	Finance and				★
	Accounting
	Legal and	★			★
	Governance
	IT and DX				★

Outside

Directors

		Tadashi	Sachiko	Michiyo	Hiroshi
		Kato	Yamaki	Ujiie	Muto
		Director	Director	Director	Director
Roles and Responsibilities
Audit and	Audit and	Audit and	Audit and
		Supervisory	Supervisory	Supervisory	Supervisory
		Committee Member Committee Member Committee Member Committee Member
Gender	●Male	●	○	○	●
○Female
Independent Officer		★	★	★
	Management	★			★
	Strategy
	Technology
	and Quality
	Control
	Marketing and				★
	Sales
	Global				★
	Business
	Human		★	★	★
Skills	Resource
	Development
	Environment		★	★
	and Society
	Finance and	★		★
	Accounting
	Legal and	★	★

Governance

IT and DX

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Our Ways

Motto

SHINGI	ITTAI
Shingi ittai :	manufacturing and
we can't make	start in small lab,

we have cherished the spirit of craft workers and their technique.

Management Philosophy

People are at the heart of business.

Through sound manufacturing, we contribute to the

realization of prosperous society.

Vision 2030

Creating the Future with Precision Die Technology

Finer and faster with leading-edge technology,

We aim to be your best partner for living and business.

Target

We continue to speedily provide high-quality products to

the cutting-edge market with the evolution of die technology.

We create innovation by building a work environment that takes on challenges without fear of failure.

We contribute to the realization of carbon-free society by putting fuel cell parts to practical use.

1st STEP of Vision 2030

Original Goals For 1st STEP (Apr 2021～Mar 2024)

Net	Operating
Sales	Profit	ROE

29	2.4	9％
billion	billion

Revised targets For 1st STEP (Apr 2021～Mar 2024)

Net	Operating
Sales	Profit	ROE

29	1.7	6％
billion	billion

Net Sales ・ Operating Profit

			Net Sales			Operating Profit		(Billion yen)
31.0							2.0
							29.2	29.0
				1.5		2.00
29.0	1.3		27.2
									1.7	1.50
27.0								1.5
25.0										1.00
			22.9
23.0	22.6					0.50
21.0											0.00
19.0												(0.50)
2020/3	2021/3	2022/3	2023/3	2024/3

How We Achieve Our Goals: Investment in Growing Fields

ICT	Strengthen production	Focus on	Increase orders in
(Wearable	capacity in Tsugaru	EV and
Philippine Factory
devices,	Factory	Autonomous
etc.)	driving field

How We Increase Our Marginal Profit

Automation of	Digitalization of	Strengthening
manufacturing process	die making	factories overseas

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GHG emission reduction plan

Target for 2030

Total GHG Emissions 11,080t-CO2

GHG Emission Reduction 6,732t-CO2

Action Plan

1

Use of Renewable Energy

• Installation of solar power generation equipment at the Tsugaru Factory (scheduled for completion in January 2023), etc.
• Purchasing carbon-free electricity

GHG Emission Reduction	4,488 t-CO2
Compared to FY2021 25％ down
Amount of electricity purchase	8,160,000 kwh
reduction from fossil fuels

2

Energy Saving Measures

Compressor	Air Conditioner
Lighting	Others, Equipment

GHG Emission Reduction	2,244 t-CO2
Compared to FY2021 13％ down
Electricity usage reduction	4,080,000 kwh

ESG - Solar Power Generation Equipment

Our Action

Past Action

・Installed 6 solar power generation equipment. On-GoingAction

・Under construction for installing additional solar power generation equipment in Enzan Factory and ZHONG SHAN ENOMOTO (China).

China	Generate
a total of
	3.3MW
Philippines
	Japan
Tsugaru	Uenohara
Enzan	Enzan

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