Yamaichi Electronics : 5th Medium-Term Management Plan

YAMAICHI ELECTRONICS CO., LTD.

Stock listing: Tokyo Stock Exchange - Prime Market Code: 6941 President: Junichi Kameya

Managing Director: Kazuhiro Matsuda Tel: [phone]

May 13, 2026

Yamaichi Electronics Group's 5th Medium-Term Management Plan

We have formulated the Yamaichi Electric Group's 5th Medium-Term Management Plan (FY2026-FY2028, The first year is fiscal year 2026.). This medium-term management plan is positioned as a three-year period to solidify the foundation for achieving profit growth towards 2030 and 2035. We will strengthen our growth base from both business and organizational perspectives, while also working to enhance human capital, sustainability, and governance. Through the execution of growth investments and improvements in capital efficiency, we aim to enhance corporate value.

1. Regarding the results of the previous medium-term management plan

   In our Fourth Medium-Term Management Plan, we focused on strengthening our production system and expanding our supply capacity to meet growing demand in growth markets. In addition to the operation of the Sakura Plant Building 2 and our Philippines Plant 3, we intensively invested in equipment to increase capacity. In FY2025, the final year of the Medium-Term Management Plan, we achieved sales of 52.6 billion yen and operating profit of 11.5 billion yen, meeting our targets of 50 billion yen in sales and 10 billion yen in operating profit. Furthermore, the TS business maintained high profitability, the CS business improved profitability and growth, and the OPT business became profitable. However, for the three-year cumulative period, sales were 134.4 billion yen, operating profit was 22.7 billion yen, and net profit was 16.3 billion yen, falling short of our plans for cumulative sales and cumulative operating profit. Going forward, we will focus on evolving our business portfolio, strengthening competitive products, technologies, and supply systems in growth markets, enhancing human capital, addressing environmental concerns, and strengthening governance.

   【Cumulative results of the 4th Medium-Term Management Plan】

   	3-year cumulative target	3-year cumulative results
   Consolidated Net Sales	139.0 billion yen	134.4 billion yen
   Consolidated operating income	25.0 billion yen	22.7 billion yen
   Profit attributable to owners of parent	17.2 billion yen	16.3 billion yen
   Operating income ratio	17.9％	16.9％
   ROE	10％ or higher	21.1％

2. Initiatives under the new medium-term management plan

The business environment surrounding our company is changing dramatically, driven by factors such as increased investment in AI and data centers, the increasing sophistication and diversification of mobile devices, the electrification and intelligence of automobiles, and the advancement of industrial equipment and medical fields. To capitalize on these environmental changes as growth opportunities, we will prioritize strengthening our business and organization as key initiatives.

1. Performance targets

   In this medium-term management plan, we aim for cumulative sales of 195 billion yen, operating profit of 42 billion yen, an operating profit margin of 21.5%, and net profit of 29.5 billion yen over the three-year period. We plan for an 85% increase in operating profit compared to the previous medium-term plan.

   【New Medium-Term Management Plan Performance Targets】

   	Results of the previous mid-term management plan	Performance targets of the new med-term management plan	Difference from the previous med-term management plan
   Consolidated Net Sales	134.4 billion yen	195.0 billion yen	+45％
   Consolidated operating income	22.7 billion yen	42.0 billion yen	+85％
   Profit attributable to owners of parent	16.3 billion yen	29.5 billion yen	+80%
   Operating income ratio	16.9％	21.5％	+4.6%

   ＊Assumed exchange rates: 1 US dollar = 150.00 yen, 1 euro = 175.00 yen

2. Basic Strategy ① Business reinforcement

   【Test Solution Business】

   Our test solutions business will expand the application area of our main SLT sockets beyond smartphones and PCs to include automotive, wearable, and network fields. We will also strengthen our technological development and manufacturing capabilities to meet the demands of high frequency, multi-pin, miniaturization, and high durability. In addition, we will strengthen the product development and sales of burn-in sockets for growth areas such as automotive ADAS/ADS, AI servers, and data centers, aiming to cultivate new fields and customers, expand our product lineup, and strengthen our integrated in-house production system.

   【Connector Solution Business】

   Our connector solutions business will strengthen its solutions for hyperscale data centers and expand its internal connectivity solutions that support next-generation high-speed transmission.

   In addition, we will expand the introduction of global niche products for semiconductor inspection and manufacturing equipment, develop new applications in the European market with next-generation I/O standard products, and in the automotive sector, expand next-generation camera module products for ADAS sensing, strengthen high-speed transmission standard products, and support charging solutions for EVs and high-current powertrain products.

   【Optics-Related Business】

   In our optical-related business, we will expand production capacity for BlueGlass UVIR cut products for smartphones, strengthen the development and sales of medical blood analyzers, and enhance sales of AR coated products for data centers and polyimide filter products for optical fiber lines.

   ② Strengthening the organization

   We will strengthen our organizational and execution capabilities to support business growth, while also investing in human capital, sustainability activities, and governance.

3. Investment Plan

   In this medium-term management plan, we will make capital investments of 18 billion yen over three years. In addition to investments in the development of new products for AI servers, data centers, automotive, and semiconductor manufacturing equipment, we will also strengthen our production bases, increase supply capacity, and improve production efficiency.

4. Capital policy aimed at enhancing corporate value

   Our company prioritizes enhancing corporate value through both "capital efficiency" and "expectations for future earnings," and we consider improving ROE and PBR as key management indicators. To achieve our target of ROE of 18% or higher, we will accelerate strengthening the profitability of existing businesses and making proactive investments in growth areas. At the same time, by stabilizing earnings, we will improve the predictability of future cash flows, gain market confidence, and ultimately improve our PBR.

5. Shareholder return policy

Our shareholder return policy for fiscal years 2026-2028 will be based on a consolidated dividend payout ratio of 30%, with the introduction of a progressive dividend system. In addition, if we have surplus funds, we will implement flexible share buybacks or special dividends to aim for a high total return ratio.

The Japanese version of the explanatory materials for the 5th Medium-Term Management Plan was published on May 13, 2026. The English version is currently being prepared and is scheduled to be published around May 21, 2026, from the perspective of ensuring accuracy and quality.