SIIX : Mid-term Management Plan for 2021-2023

Medium-term Management Plan (2021-2023)

SIIX Corporation

February 2021

Review of the Previous Medium-term Management Plan (2018-2020) on Performance

The results largely underachieved its targets for the final year of the medium-term management plan, which were consolidated net sales of 300 billion yen and consolidated operating income of 14 billion yen.

[Main reasons for the underachievement]

2018: Cost increase due to response to rapid demand growth at Mexico Plant

2019: Temporary increase in tariffs due to US-China trade friction and relocation of production bases to avoid them; China recession

2020: Lower utilization ratio due to COVID-19 pandemic and lower demand worldwide

Review of Business Strategy and KPI of Medium-term Management Plan

4 Topics

Review

Responding to the diversification of business fields (building the next pillar of automotive field)

Improvement of ProfitabilityEnhancement of ReadinessInnovation of

SIIXʼs Manufacturing

・Addressed the various digitization needs of customers in the automotive equipment field.

・Support for electrical parts has progressed such as for igniter of power tool in the industrial equipment field, however, net sales remained at 2.0 billion yen in the medical-nursing device field.

Sales ratio for non-Japanese company

・SIIXʼs share of consolidated net sales increased from about 9% to 14%. Customer account opening status has been improved but fell short of its target of 20%.

Rechargeable battery business and molding business

・Rechargeable battery business for igniter of power tool made progress. The number of plants for the molding business increased, however, its business segment failed to generate stable revenue in the Philippines.

Strengthen technology of multi-process manufacturing

・Introduced a fully automated assembly line and established SIIX's first mass production line for battery packs.

Establishment of a knowledge-intensive manufacturing platform and global development

・SMAPS, a cloud database for manufacturing technology and quality information, has been established and is now in operation.

Improving quality and fostering QCD technical experts

・Quality has improved by about 25%, and local human resource have grown to a level where they can train personnel from other plants.

Reinforcement ESG ⇒ The target has yet to be reached, but will remain a long-term objective.

of Organization

(S) Local executives ratio: Target 80% ⇒ About 78.9%

Female executives ratio: Target 50% ⇒ About 31.1%

KPI for achieving the Medium-term Management Plan

*Non-commodity field: Automotive and Industrial

Number of new companies Sales ratio for non-Japanese company

20％ 13.6%

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