Enomoto : Published Annual report 2022.

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 203006

Medium-Term Environmental Plan (Initiatives for

SDGs) 07

GHG emission reduction plan08

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

I would like to express my sincere gratitude to you, our shareholders, for your continued support. I would also like to express my sincere condolences to those who have passed away due to the novel coronavirus disease (COVID-19), and I pray for a quick recovery of those who contracted the disease.

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.

2021 Economic Condition

In the previous fiscal year, Japan's economy was under the strong influence of COVID-19, and was repeatedly shaken by the infection situation and related policies in Japan and overseas. After the state of emergency was lifted at the end of September, consumer activity recovered sharply, and business sentiment showed signs of improvement but has recently leveled off due to the impact of the rapid increase in the number of infected people due to new mutant strains. In the electronic components industry to which the Group belongs, demand exceeded the actual level in some areas in the first half of the year, as companies moved forward to place orders as a countermeasure against the global supply shortage of semiconductors and resources. And products that were particularly affected by seasonal factors peaked out earlier than usual.

Under these circumstances, we have systematically promoted the reduction of manufacturing costs by further improving quality and automating and streamlining the manufacturing process, in an effort to improve sales and profitability.

2021 Our Financial Performance

In the fiscal year ended 31 March 2021, the Company consequently generated net sales of 27,250 million yen(up 18.4% YoY), operating profit of 2,012 million yen (up 28.7% YoY), ordinary profit of 2,054 million yen (up 31.5% YoY), and profit attributable to owners of parent of 1,545 million yen (up 3.7% YoY) due to the additional recording of deferred tax assets.

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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Annual Report 2022

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Officer Matrix

Inside

Directors

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

Governance

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
Skills
Human		★	★	★
	Resource
	Development
	Environment		★	★
	and Society
	Finance and	★		★
	Accounting
	Legal and	★	★

Governance

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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

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

Net	Operating
Sales	Profit	ROE

29	2.4	9％
billion	billion

Net Sales ・ Operating Profit

(Billion yen)

Net Sales	Operating Profit	2.4
31.0		2.0	29.0
	1.5	27.2	2.00
29.0
1.3				1.50
27.0
25.0	22.9			1.00
22.6
23.0
				0.50
21.0
19.0				0.00
2020/3	2021/3	2022/3	2024/3

How We Achieve Our Goals: Investment in Growing Fields

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

How We Increase Our Marginal Profit

Automation of	Digitalization of	Strengthening
manufacturing process	die making	factories overseas

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Medium-Term Environmental Plan (Initiatives for SDGs)

Stepping up the target towards carbon neutrality

- From basic unit to total volume -

POINT 1

Reducing GHG (Greenhouse Gas) Emissions in Production Processes −Use of renewable energy and energy saving measures

	GHG Emissions（t-CO2）	Reducing
	8,702	33.33%
8,311	compared to 2012
		5,541

FY2012 (Baseline)

FY2020 (Latest)

FY2030 (Goal)

POINT 2

Reduction of GHG emissions throughout the value chain

POINT 3

Technological development that contributes to reducing GHG emissions throughout society

−Realization of a hydrogen society

(Development and commercialization of fuel cell components) −Contribution to popularization of EV and energy saving

(Sales expansion of lead frames for power semiconductors)

POINT 4

Reduction of waste, water and plastic usage

GHG emission reduction plan

Target for 2030

Total GHG Emissions 5,541 t-CO2

GHG Emission Reduction 2,770t-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

クションプラン
GHG Emission Reduction	1,400 t-CO2
Compared to FY2012 16.85％ down
Amount of electricity purchase	3,400,000 kwh
reduction from fossil fuels

2

Energy Saving Measures

Compressor	Air Conditioner
Lighting	Others, Equipment

クションプラン
GHG Emission Reduction	1,370 t-CO2
Compared to FY2012 16.48％ down
Electricity usage reduction	3,161,713 kwh

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