Yamaichi Electronics : Full Year Financial Results Presentation (Apr2023 – Mar2024)

Financial Results for FY2023

May 14, 2024

Contents

【1】 FY2023 Results

【2】 FY2024 Forecast

【3】 Initiatives to Increase Corporate Value

1. Strengthening Production Bases for Growth
2. Introduction of New Factories
3. Approach to Sustainability
4. Strengthening the Corporate Governance System
5. Efforts to Implement Management Conscious of Cost of Capital and Stock Price
6. Progress Status of Medium-Term Management Plan

7. Shareholder Returns
Abbreviations Used in This Presentation
	Business Segment	Abbreviation
	Test Solution Business	TS Business
	Connector Solution Business	CS Business
	Optical-Related Business	OPT Business	2/26

【1】 FY2023 Results

Results

Profit was negatively impacted despite ongoing cost containment efforts implemented in response to cost growth caused by soaring raw material and energy prices and a temporary increase in overhead expenses related to the launching of new plants in Japan and the Philippines.

	FY2022	FY2023	YoY	YoY
（Billions of JPY）	Full-year	Forecast	Full-year	increase	increase
	results	(as of	results	(amount)	(％)
	Nov.7,2023)
Net sales	46.9	38.4	36.4	(10.5)	-22.5%
Operating income	9.1	2.9	2.9	(6.2)	-67.9%
Ordinary income	9.4	2.8	2.9	(6.5)	-69.2%
Net profit	7.2	2.0	2.0	(5.1)	-71.4%
EPS（JPY）	346.08	97.50	100.43	(245.65)	----
BPS（JPY）	1770.47	----	1862.43	91.96	----

3/26

【1】 FY2023 Results

Results by Business

			FY2022	FY2023	YoY	YoY
	（Billions of JPY）	Full-year	Forecast	Full-year	increase	increase
			results	(as of	results	(amount)	(％)
			Nov.7,2023)
	TS	Sales	24.2	17.1	15.8	(8.3)	-34.6%
	Business	Operating income	7.0	1.7	1.8	(5.2)	-74.0%
	CS	Sales	21.0	20.0	19.2	(1.8)	-8.8%
	Business	Operating income	1.6	1.0	0.9	(0.7)	-43.0%
	OPT	Sales	1.7	1.3	1.3	(0.3)	-20.4%
	Business	Operating income	0.1	(0.0)	(0.0)	(0.2)	----
	Others	Operating income	0.2	0.2	0.1	(0.0)	----
		（consolidated adjustment）
	Total	Sales	46.9	38.4	36.4	(10.5)	-22.5%
	Operating income	9.1	2.9	2.9	(6.2)	-67.9%

4/26

【1】 FY2023 Results

TS Business Results

• With regard to the test socket product category, performance from our mainstay products with smartphone-related applications incurred impact from sluggish conditions, especially in the Chinese market, while results also took a hit from circumstances in the PC market, which slowed down due to the absence of previously observed COVID-19-related demand.
• In the sockets for logic semiconductors category, performance from products with automotive applications remained strong, but sales generated through products with applications in other fields declined.
• Despite a slight resumption of investment related to DRAM during 2H, performance from memory semiconductor products was lackluster overall due to ongoing sluggishness in sales generated through memory semiconductor products with NAND-related applications.
• Expenses increased due to soaring costs for raw materials and energy, as well as outlays associated with new plant startups. However, we made productivity and quality improvements to keep the impact to a

minimum.	Sales by Product Type as Percentages of Average
	Quarterly Sales Reported in FY2018

Net sales

Operating income

5/26

【1】 FY2023 Results

CS Business Results

CS	YoY increase	YoY increase
Business	（Billions of JPY）	(%)
Sales	(1.8)	-8.8%
Operating income	(0.7)	-43.0%

• Products for the automotive market performed well, partly due to increased production volumes among major customers and positive impact from new product shipments.
• Products for the FA/industrial market were affected by inventory adjustments performed by customers in Europe, which is a key market.
• Products for the telecom/datacom market remained strong in Europe due to increased demand for high-speed,large-capacity transmission amid the continued impact of economic friction between the US and China, but were affected by protracted inventory adjustments among North American customers.
• Expenses increased due to soaring costs for raw materials and energy, as well as outlays associated with new plant startups. However, we made productivity and quality improvements to keep the impact to a minimum.

Net sales

Operating income

6/26

【1】 FY2023 Results

Forex Impact on Results

Forex rate	FY2022	FY2023	YoY change
USD (JPY)	135.47	144.64	＋ 9.17
EUR (JPY)	140.97	156.81	＋15.84

YoY Forex Impact
Net sales	JPY 2.4 billion
Operating income	JPY 0.7 billion
Forex sensitivity	Impact on	Impact on
operating
(JPY1/year)	net sales
income
USD	JPY 0.13 billion	JPY 0.06 billion
EUR	JPY 0.07 billion	JPY 0.01 billion	7/26

【1】 FY2023 Results

Cash Flows

（Billions of JPY）	FY2021	FY2022		FY2023		YoY increase
		(amount)
Cash flows from operating activities	7.6	10.8		3.2	(7.6)
Cash flows from investing activities	(2.2)	(4.8)		(4.2)	0.6
Free cash flows	5.3	5.9		(0.9)	(6.9)
Cash flows from financing activities	(1.7)	(3.3)		(3.4)		(0.0)
Cash and cash equivalents at the end of period	13.5	16.7		13.0	(3.6)

15

10

5

Cash flows from

operating activities Cash flows from

investing activities Cash flows from

0								financing activities
(5)								Free cash flows
FY2021	FY2022	FY2023

8/26

【1】 FY2023 Results

Balance Sheet

	Billions of JPY	End of	End of	Increase /	Notes
	Mar. 2022	Mar. 2024	decrease
	Total current				Cash and deposits: JPY4.12bn decrease
	32.6	29.7	(2.9)	(Decrease in sales, expenditures for the construction of a new
	assets	building at our Sakura Factory and a new factory in the
					Philippines)
	Total Non-current	17.6	21.3	3.6	Buildings and structures: JPY2.79bn increase due to the
	assets	construction of production factories
	Total assets	50.3	51.0	0.6
	Total current	10.4	9.2	(1.1)	Income taxes payable: JPY580mn decrease
	liabilities	Provision for bonuses: JPY730mn decrease
	Total non-current	2.9	3.5	0.6
	liabilities

Total liabilities	13.3	12.7	(0.5)
Total net assets	37.0	38.2	1.2
Total liabilities and	50.3	51.0	0.6
net assets
		9/26

【1】 FY2023 Results

Capex and Depreciation

Capital Investment

7

6

(Billions of JPY)

FY projection

6.0

5

4

3

2

1

0

4.5

2.7

5.5

4.6

2.8

FY2021	FY2022	FY2023
result	result	Q3 result

10/26