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 | ||
2nd 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
Homare Shiratori
白鳥 誉
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.
2023 Economic Condition
In the previous fiscal year, the global economy remained in an uncertain environment due to factors such as the sluggish Chinese economy, fluctuations in resource prices, and rising geopolitical risks.
In the electronic components industry to which the Group belongs, demand for automobiles remained strong due to the shift to xEV and the progress of electrification, but inventory adjustments continued for consumer devices, including smartphones and wearable devices, and industrial equipment, and a full recovery in the market is not expected to occur until the second half of the fiscal year ending March 2025 or later.
Under these circumstances, our group has striven to improve profitability by focusing particularly on our production technologies for power semiconductor lead frames, which are experiencing global demand expansion, and micro-connector parts, which require advanced composite processing technologies for metal and resin, as well as strengthening our technical capabilities and production capacity in plating processes. However, inventory adjustments for consumer and industrial equipment lasted longer than expected, which had a very strong impact on our business performance.
2023 Our Financial Performance
In the fiscal year ended 31 March 2024, the Company consequently generated net sales of 25,244 million yen(Decreased 13.7% YoY), operating profit of 160 million yen (Decreased 89.7% YoY) ,Ordinary profit of 291 million yen (Decreased 83.8% YoY), and profit attributable to owners of parent of 121 million yen (Decreased 90.4% 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.
1 | Annual Report 2024 | Annual Report 2024 | 2 |
Officer Matrix
Inside
Directors
Nobuyuki | Homare | Nobuo | Hideo | ||
Takeuchi | Shiratori | Sakurai | Ogawa | ||
Director | Representative | Director | Director | ||
Director | |||||
Roles and Responsibilities | |||||
President / | Chief Officer of | Chief Officer / | |||
Chairman of the | Chairman of | ||||
Chief Executive | Headquarters | ||||
Board of Directors | ZHONGSHAN | ||||
Officer | Production | ||||
ENOMOTO Co.,Ltd. | |||||
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 | |||||
Full-time 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
3 | Annual Report 2024 | Annual Report 2024 | 4 |
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.
2nd STEP of Vision 2030
Targets For 2nd STEP (Apr 2024～Mar 2027)
Net | Operating | |
Sales | Profit | ROE |
30 | 2.4 | 9％ |
billion | billion |
Net Sales ・ Operating Profit
Net Sales | Operating Profit (Billion yen) | 3.0 | ||||||||||||||
31.0 | 30.0 | |||||||||||||||
29.0 | 2.0 | 29.2 | 2.5 | |||||||||||||
27.0 | 1.5 | 2.4 | 2.0 | |||||||||||||
27.2 | 25.5 | |||||||||||||||
25.2 | 1.5 | |||||||||||||||
25.0 | 22.9 | 1.5 | 1.0 | |||||||||||||
23.0 | ||||||||||||||||
21.0 | 0.1 | 0.6 | 0.5 | |||||||||||||
19.0 | 0.0 | |||||||||||||||
Mar.2021 | Mar.2022 | Mar.2023 | Mar.2024 | Mar.2025 | Mar.2027 | |||||||||||
Estimate | Target |
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 |
5 | Annual Report 2024 | Annual Report 2024 | 6 |
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
- Solar power generation equipment
- Purchasing carbon-free electricity
2
Energy Saving Measures
Compressor | Air Conditioner | ||||||||
Lighting | Others, Equipment | ||||||||
Total GHG Emissions（t-CO2） | |||||||||
17,812 | ※Target | ||||||||
16,782 | |||||||||
16,316 | |||||||||
13,469 | |||||||||
11,080 | |||||||||
GHG | |||||||||
Emission Reduction | |||||||||
4,343t-CO2 | |||||||||
Compared to FY2021 | |||||||||
FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 |
Base | Target |
7 | Annual Report 2024 |
ESG - Solar Power Generation Equipment
Our Action
Past Action
・Installed 7 solar power generation equipment. On-GoingAction
・Under construction for installing additional solar power generation equipment in Enzan Factory.
China | Generate | |
a total of | ||
3.4MW | ||
Philippines | ||
Japan | ||
Uenohara | ||
Tsugaru | ||
Enzan | ||
Enzan | ||
Enzan | ||
Annual Report 2024 | 8 |
Summary of Selected Financial Data (consolidated)
54th term | 55th term | 56th term | 57th term | 58th term | |
Fiscal year | Fiscal year | Fiscal year | Fiscal year | Fiscal year | |
ended | ended | ended | ended | ended | |
31 Mar 2020 | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | |
Net sales | 22,647 | 22,999 | 27,250 | 29,265 | 25,244 |
(Million yen) | |||||
Ordinary Profit | 1,394 | 1,561 | 2,054 | 1,805 | 291 |
(Million yen) | |||||
Profit (loss) attributable to | 912 | 1,489 | 1,545 | 1,269 | 121 |
owners of parent | |||||
(Million yen) | |||||
Comprehensive income | 778 | 1,362 | 2,404 | 2,363 | 825 |
Highlights
27,250 29,265 25,244
22,647 22,999
Sales
(Million yen)
Mar.2020 Mar.2021 Mar.2022 Mar.2023 Mar.2024
(Million yen) | |||||
Net assets | 15,610 | 16,739 | 18,628 | 20,594 | 20,977 |
(Million yen) | |||||
Total assets | 24,211 | 25,577 | 30,174 | 34,039 | 32,371 |
(Million yen) | |||||
Net assets per share | 2,321.46 | 2,487.46 | 2,790.49 | 3,081.37 | 3,138.77 |
(Yen) | |||||
Basic earnings (loss) per | 135.86 | 221.66 | 230.49 | 190.02 | 18.16 |
1,358
Operating
Profit
(Million yen)
1,563
2,012
1,561
160
share | |||||
(Yen) | |||||
Diluted earnings per share | 135.46 | 221.01 | 229.80 | 189.45 | 18.10 |
(Yen) | |||||
Equity-to-asset ratio | 64.4 | 65.3 | 61.6 | 60.4 | 64.7 |
(%) |
Mar.2020 | Mar.2021 | Mar.2022 | Mar.2023 | Mar.2024 |
Sales composition ratio of mass-produced products by application
Rate of return on equity | 5.9 | 9.2 | 8.7 | 6.4 | 0.5 | |
(%) |
Consumer/Industrial Machinery/Others 28.4％
Automobile 44.5％
•Composition ratio increased by
Price-earnings ratio
(Times)
Net cash provided by (used in) operating activities
(Million yen)
Net cash provided by (used in) investing activities
(Million yen)
Net cash provided by (used in) financing activities
(Million yen)
6.0 | 9.3 | 6.9 | 9.2 | 90.6 |
2,357 | 2,506 | 3,331 | 1,810 | 3,096 |
(1,501) | (2,402) | (2,965) | (2,998) | (1,757) |
(333) | (113) | 386 | 535 | (511) |
•Composition ratio decreased by 6.7pt from 35.1% in the previous term.
•Lead frames for power semiconductors for data centers and industrial machinery production are facing adjustments.
•Sales of LED lead frames for displays decreased.
10.8pt from 33.7% in the previous term.
•Power semiconductor lead frames for xEV are selling well.
•Demand for airbag connectors has recovered.
Cash and cash equivalents | 3,346 | 3,324 | 4,365 | 4,041 | 5,032 |
(Million yen) | |||||
Number of employees | 1,243 | 1,240 | 1,272 | 1,274 | 1,264 |
[Average number of | [457] | [468] | [544] | [524] | [461] |
temporary employees] | |||||
(Number of persons) |
9 Annual Report 2024
Wearable Device 2.7％
•Composition ratio decreased by 1.8pt from 4.5% in the previous term.
•Impact of wireless earphones and watches production adjustments.
Smartphone 24.4％
•Composition ratio decreased by 2.3pt from 26.7% in the previous term.
•Impact of smartphone production adjustments.
Annual Report 2024 | 10 |
Business Composition by Segment | |||
Lead frame for Power semiconductors | Net Sales | ||
11,973 | 11,112 | ||
38.6% | |||
Composition | |||
ratio | |||
44.0% | 61.4% | ||
(Million yen) | |||
Mar 2023 | Mar 2024 | ||
Consumer, industrial machinery, etc. | Automobile |
Lead frame for opto-electronic devices
Lead frame for Power semiconductors
Net Sales 11,112 million yen (Decreased 7.1% - YoY)
This product group includes lead frames used in discrete semiconductors and modules mainly used in power systems. For automobiles, sales increased due to the progress of xEV conversion and the development and spread of ADAS technology. In other fields, Inventory adjustments for consumer and industrial equipment have had a strong impact, and demand recovery has been slow.
Lead frame for opto-electronic devices
Composition
ratio
10.5%
79.6%
20.4% |
Net Sales
3,719 2,647
(Million yen)
Mar 2023 Mar 2024
Net Sales 2,647 million yen (Decreased 28.8％ - YoY) This item group is mainly for LED.
Sales decreased due to inventory adjustments being made in overseas transportation infrastructure and large displays.
Consumer, industrial machinery, etc. | Automobile |
Connector parts
Composition
ratio
43.5%
6.0%
54.1%
6.7% |
33.2% |
Net Sales
12,912
10,989
(Million yen)
Mar 2023 Mar 2024
Connector parts
Net Sales 10,989 million yen (Decreased 14.8% - YoY)
Inventory adjustments for smartphones and wearable devices continued, and the business was heavily affected by a decline in demand for devices manufactured by American manufacturers, mainly in the Chinese market.
Wearable Device Smartphone Consumer, industrial machinery, etc. Automobile Others ：Net Sales 495 million yen ( Decreased 24.9% - YoY)This item group is mainly for relay parts.
11 Annual Report 2024
Annual Report 2024 | 12 |
Consolidated Financial Statements
Consolidated Balance Sheets(summary)
(Million yen) | ||
As of | As of | |
31 Mar 2023 | 31 Mar 2024 | |
Assets | ||
Current assets | 19,051 | 17,133 |
Non-current assets | 14,988 | 15,237 |
Property, plant, and equipment | 13,501 | 13,576 |
Intangible assets | 588 | 574 |
Investments and other assets | 898 | 1,087 |
Total assets | 34,039 | 32,371 |
Liabilities | ||
Current liabilities | 10,176 | 8,529 |
Non-current liabilities | 3,268 | 2,864 |
Total liabilities | 13,444 | 11,393 |
Net assets | ||
Shareholder's equity | 19,090 | 18,768 |
Share capital | 4,749 | 4,749 |
Capital surplus | 5,082 | 5,082 |
Retained earnings | 9,502 | 9,181 |
Treasury shares | (244) | (244) |
Accumulated other comprehensive income | 1,489 | 2,194 |
Share acquisition rights | 15 | 15 |
Total net assets | 20,594 | 20,977 |
Total liabilities and net assets | 34,039 | 32,371 |
Status of Balance Sheets
(Million yen)
40000 | |||||
35000 | |||||
30000 | |||||
Current liabilities, | |||||
Current liabilities, | |||||
10,176 | |||||
8,529 | |||||
25000 | Current assets, | Current assets, | |||
19,051 | |||||
Non-current | 17,133 | Non-current | |||
liabilities, 3,268 | liabilities, 2,864 | ||||
20000 | |||||
15000 | Net assets, 20,594 | Net assets, 20,977 | |||
10000 | Non-current assets, | Non-current assets, | |||
14,988 | 15,237 | ||||
5000 | |||||
0 | |||||
Mar.2023 | Mar.2024 | ||||
Current assets
In the fiscal year ended 31 March 2024, the amount of Current assets was 17,133 million yen due to an decrease in Accounts receivable and Inventories.
Non-current assets
The amount of Non-current assets was 15,237 million yen.
Total liabilities
The amount of Total liabilities was 11,393 million yen due to an decrease in Trade payables.
Net assets
Net assets was 20,977 million yen due to an increase in Foreign currency translation adjustment account. As a result, the capital adequacy ratio was 64.7%.
13 Annual Report 2024 | Annual Report 2024 | 14 |
Consolidated Statements of Income(summary)
(Million yen) | ||
As of | As of | |
31 Mar 2023 | 31 Mar 2024 | |
Net sales | 29,265 | 25,244 |
Cost of sales | 25,165 | 22,589 |
Gross profit | 4,100 | 2,654 |
Selling, general and administrative expenses | 2,538 | 2,494 |
Operating profit | 1,561 | 160 |
Non-operating income | 290 | 189 |
Non-operating expenses | 45 | 57 |
Ordinary profit | 1,805 | 291 |
Extraordinary income | 10 | 108 |
Extraordinary losses | 151 | 204 |
Profit before income taxes | 1,664 | 196 |
Income taxes - current | 191 | 219 |
Income taxes - deferred | 203 | -144 |
Total income taxes | 395 | 75 |
Profit | 1,269 | 121 |
Profit attributable to owners of parent | 1,269 | 121 |
Consolidated Statement of Cash Flows(summary)
(Million yen)
(1,757)
Cash flows | Cash flows from | Cash flows | Effect of |
from operating | investing | from financing | exchange rate |
activities | activities | activities | change on |
cash and cash | |||
equivalents |
Cash and cash | Cash and cash |
equivalents at the | |
equivalents at the | |
beginning of period | |
end of period | |
The status of Cash Flows
Cash and cash equivalents (hereinafter referred to as "Cash") was 5,032 million yen at the end of the fiscal year ended 31 March 2024. (It increased by 991 million yen from the previous fiscal year.)
Operating cash flow increased by 1,286 million yen from the previous fiscal year due to collection of accounts receivable and Increase in depreciation expenses .
15 Annual Report 2024 | Annual Report 2024 | 16 |
Company History
Date | Event |
April 1967 | ENOMOTO MANUFACTURING Co., Ltd. is established in Sagamiko-machi,Tsukui-gun, |
Kanagawa Prefecture (currently Midori-ku, Sagamihara City, Kanagawa Prefecture) for the | |
purpose of manufacturing precision molds and processing press parts using those molds for | |
electronic components. | |
December 1969 | The Uenohara Factory is established in Uenohara-machi,Kitatsuru-gun, Yamanashi |
Prefecture (currently Uenohara City, Yamanashi Prefecture) to expand the business. | |
March 1973 | The headquarters is relocated from Sagamiko-machi,Tsukui-gun, Kanagawa Prefecture to |
Uenohara-machi,Kitatsuru-gun, Yamanashi Prefecture. | |
April 1987 | The Enzan Factory is established in Enzan City, Yamanashi Prefecture (currently Koshu City, |
Yamanashi Prefecture) with the aim of expanding the sales of LED lead frames and | |
increasing the efficiency of mold component processing. | |
July 1990 | The company changes its name from ENOMOTO MANUFACTURING Co., Ltd. to |
ENOMOTO Co.,Ltd. | |
November 1990 | Registers over-the-counter with the Japan Securities Dealers Association. |
June 1991 | TSUGARU ENOMOTO Co.,Ltd. is established in Goshogawara City, Aomori Prefecture. |
March 1995 | The Iwate Factory is established in Otsuchi-cho,Kamihei-gun, Iwate Prefecture. |
August 1995 | The Uenohara Factory is relocated to the grounds of Uenohara Industrial Park. |
October 1995 | ENOMOTO PHILIPPINE MANUFACTURING Inc. is established in the Republic of the |
Philippines. (Currently a consolidated subsidiary) | |
August 1997 | IWATE ENOMOTO Co., Ltd. is established and the Iwate Factory's business is transferred. |
November 2000 | ENOMOTO HONG KONG Co.,Ltd. is established in the Hong Kong Special Administrative |
Region of the People's Republic of China. (Currently a consolidated subsidiary) | |
January 2001 | ZHONGSHAN ENOMOTOCo., Ltd. is established in Zhongshan, Guangdong Province, |
People's Republic of China. (Currently a consolidated subsidiary) | |
April 2003 | The headquarters address is changed to 8154-19 Uenohara, Uenohara-machi (currently |
8154-19 Uenohara, Uenohara City, Yamanashi Prefecture). | |
April 2004 | Acquires the subsidiaries TSUGARU ENOMOTO Co., Ltd. and IWATE ENOMOTO Co., Ltd., |
and establishes the Tsugaru Factory and the Iwate Factory. | |
December 2004 | Cancels registration as an over-the-counter company with the Japan Securities Dealers |
Association and lists its shares on the JASDAQ Securities Exchange (currently the JASDAQ | |
Market of the Osaka Securities Exchange). | |
July 2013 | The company is listed in the Tokyo Stock Exchange JASDAQ (Standard) following the merger |
of the Tokyo Stock Exchange and the Osaka Securities Exchange. | |
December 2015 | Constructs Cavite Factory No. 2 for ENOMOTO PHILIPPINE MANUFACTURING Inc. , |
located in the Province of Cavite in the Philippines, to increase production capacity. | |
December 2017 | Changes the market listing from the Tokyo Stock Exchange JASDAQ (Standard) to the |
Second Section of the Tokyo Stock Exchange. | |
November 2018 | The company is listed in the First Section of the Tokyo Stock Exchange. |
April 2022 | The company is listed in the Prime Market of the Tokyo Stock Exchange |
17 Annual Report 2024
Corporate Data
Trade name | ENOMOTO Co., Ltd. | |
Establishment | April 1967 (Founded July 1962) | |
Securities code | 6928 (Tokyo Stock Exchange) | |
Headquarters | 8154-19, Uenohara, Uenohara City, | |
location | Yamanashi, Japan | |
Capital | JPY 4,749 million | |
Number of | ||
employees | 1,264 | |
(Consolidated) | ||
Business | 1. | Manufacture of various |
description | semiconductor components and | |
electronic components | ||
2. | Development, design, and | |
manufacture of various precision molds, | ||
automatic mechanical equipment, etc. | ||
Telephone number | +81-554-62-5111 | |
Consolidated | ENOMOTO PHILIPPINE | |
subsidiaries | MANUFACTURING INC. |
ENOMOTO HONG KONG Co., Ltd.
ZHONG SHAN ENOMOTO Co., Ltd.
Annual Report 2024 | 18 |