“Constantly on the cutting edge” President Takayuki Tokuma
We have always strived to remain constantly at the cutting edge ever since the Yokowo Group was first established. Drawing on our core competencies in the rapidly evolving communications and electronic component industry, as a specialist in antennas, fine connectors, microwaves and advanced devices, we have continued to harness our uniquely advanced technical capabilities to offer revolutionary products in each of our core markets, in the automotive, semiconductor testing systems, mobile communication terminals and advanced medical device sectors.
We have set out the following Basic Management Policy in an effort to further improve the Group's corporate value.
Basic Management Policy
- We are dedicated to quality and aim to establish Yokowo as a quality brand by offering the highest quality and eliminating environmentally harmful substances.
- As a technology-based enterprise, we aim to continually upgrade and refine our antenna, microwave, surface modification material and micro precision processing technologies and actively introduce new technologies to enable us to offer products with improved added value and provide customers with the wide-ranging product capabilities and applied technologies they need.
- We aim to accelerate taking our business to new levels by pursuing innovation strongly in three key areas: product innovation (to enhance business and product structures), process innovation (to enhance business processes and systems) and personnel innovation (to enhance human resources), and by promoting management innovation (to enhance management and business operation) with a view to future growth in addition.
- We aim to establish a business framework that is able to respond to the global paradigm shift, the severe business environment and rapid changes in the competitive environment by creating a multi-layered business structure in industry segments, customers, technologies and supply chains.
Medium-term Management Targets
Business model reforms to achieve high quality, full-scale growth and the Minimum 8 [The Minimum 8: Secure a sales growth rate, a minimum operating profit margin, and a return on equity of 8%]
Medium-term Management Strategy
The Group's target markets, namely vehicles, semiconductor testing systems, mobile communication terminals and advanced medical devices, are basically growing. They are expected to expand over the medium to long term through the development and spread of 5G, automatic driving and other technologies and products that will constitute the new social infrastructure. For securing and solidifying a more advantageous position in these major markets, the Group will carry out intensive measures for the four innovations stated in the Basic Management Policy and seek to attain stable Group-wide growth and a robust, highly profitable structure through business model changes.
Based on this think, we have prepared a medium-term management plan for the fiscal year ended March 31, 2021 to the fiscal year ending March 31, 2023. Its priority measures are as follows.
Priority measures in the new medium-term management plan
Press ahead with management innovation:
The development, manufacturing and sales teams will be united to implement business operation that will appeal to customer needs
and boost production management capabilities
- Clearly demonstrate the determination of business divisions in roadmaps for business, products and process capacity
- Concentrate responsibility and authority for business revenues and expenditures
- Increase the ability to generate cash
Advance process innovation
- Expand application of the new 5S concept(*2) to the whole business process
*2 New 5S: Simple, Slim (i.e. elimination of waste), Small (in lots and in size), Short (in lead time) and Smooth (i.e. leveling)
- Quicken the cycle of improvement using AI and IoT and apply it to the whole business process
- Entrench the work-from-home system and fundamentally change the IT environment to improve the productivity of back office operations
- Properly institute internal production and outsourcing on the basis of competitive advantage
- Expand application of the new 5S concept(*2) to the whole business process
Carry out product innovation to turn industrial and market changes into opportunities
- Develop products and business models for CASE and MaaS
- Build up high frequency inspection technologies and achieve evaluation as a solutions provider
- Construct a venture eco-system in medical devices and other areas
Move forward with personnel innovation
- Make more effective use of global personnel with the use of Tomioka International Specialist Park (TISP)
- Develop a personnel skill improvement program and a job-based employment system and continue to move forward with work style reform
The Group will carry out the priority measures mentioned above with the aim of consistently fulfilling its medium-term management targets, or the Minimum 8, within the period of the medium-term management plan.
Issues to be Addressed
The world economy is expected to remain sluggish given the threat of COVID-19. The Company's business circumstances are quite uncertain, with a shortage of semiconductors, soaring physical distribution costs and rising raw material prices. Under these circumstances, we will focus on the following.
Vehicle communication equipment segment：
Restructuring the earnings structure
-Carry out streamlining by thoroughly revising and improving business operation systems and work processes, strive to reduce loss costs to zero
-Fundamentally change the supply chain (strengthen the development functions of plants in China, accelerate the shift of production to plants in Vietnam and launch a production base in the Philippines)
Circuit testing connector segment：
Evolve into a business that provides solutions
-Fully commit to expanding the turnkey business in the domain of inspections for the pre-process of semiconductors
-Invest in increasing the capacity of plants in Japan and in Malaysia, increase the ratio of production in Japan to enhance the production backup structure
-Invest in streamlining and rationalization, including the construction of automated assembly lines and automated inspection systems
Personal communication equipment segment
Fine connector business：
-Enhance product development and accelerate production speed by changing the supply chain and expanding standard products
-Expand unique, high-speed transmission connectors
Medical device business：
-Expand business and contributing to the development of society by evolving into a development-oriented OEM in the advanced medical field and building a venture ecosystem
New business domains
-Capitalize on antenna technologies to expand its business domains to MaaS and others and to build closer strategic alliances
As long-term measures beyond the period of the new medium-term management plan, the Group will take actions in the three areas described below.
Mainly in micro precision processing technologies and microwave (high frequency) technologies, which constitute the core strengths of the Yokowo Group, we will use funds raised by increasing capital to enhance the system for, and to boost investment in, fundamental research as a key driver of long-term growth.
By improving productivity and efficiency at each site for development, procurement, production and marketing, we will promptly provide value to customers. Moreover, we aim to continue to improve the speed of management decision-making and our responsiveness to change by reinforcing real-time cooperation between these sites and the headquarters.
By steadily and vigorously pushing ahead toward these goals, we will establish overwhelming strength that does not waver during upheaval and that enables precise and prompt responses to successive and drastic changes. We will strive to collaborate with our stakeholders in our efforts to create new value.