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1 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. FY 2017 ending Dec. 2017 First Quarter Financial Results Security code: 6640 May 17, 2017 Dai-ichi Seiko Co., Ltd.
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FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

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Page 1: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

1 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

FY 2017 ending Dec. 2017

First Quarter

Financial Results

Security code: 6640

May 17, 2017

Dai-ichi Seiko Co., Ltd.

Page 2: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

2 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Trade Name Dai-ichi Seiko Co., Ltd.

Founded July 10, 1963 (Fiscal year end in December )

Stock Exchange

Listings The Tokyo Stock Exchange First section, stock code: 6640

Paid-in-capital 8,522 million yen

Issued Share 16,722,800 shares

Business

Ⅰ. Connectors & Electronics Components Business

Ⅱ. Automotive Electronics & Associated Components Business

Ⅲ. Semiconductor Mfg. Equipment and Other Business

Board President: KONISHI Hideki, 8 Other Directors (1 External Directors), 3 Audit and Supervisory Committee Member (3 External Statutory Auditors)

Stockholders Holding Company: 43.05%, Employee Holding Association: 4.17%, The Master Trust Bank of Japan, Ltd.: 3.82%, KONISHI Hideki: 2.97%, CBNY DFA INTL SMALL CAP VALUE PORTFOLIO 1.68% (As of Dec. 31, 2016)

Head Office Kyoto-City, JAPAN

Plants in Japan 6 places (3 in Fukuoka, 1 in Yamanashi, 1 in Kyoto , 1 in Shimane)

Overseas Plants 11 places (2 in Singapore, 1 in Indonesia, 2 in Malaysia, 1 in Philippines, 1 in Thailand,

2 in China, 1 in Vietnam and 1 in U.S.A.)

Subsidiaries

Matsue Dai-ichi Seiko Co., Ltd. (100% share),

DJ Precision Co., Ltd. (70% share, 30% shared by JAE Co., Ltd.), IGM TECH SDN. BHD. (51% share)

16 overseas companies (100% share),

No. of Employees 5,826 (1,930 in Japan and 3,896 in Overseas) Compared with Dec. 31, 2016, our employees increased 22 in Japan and decreased 128 in overseas.

■ Corporate Overview as of Mar. 2017

Page 3: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

3 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Million yen FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.) Amount Change

Sales 10,935 11,872 + 937 + 8.6%

Gross Profit 2,790 3,395 + 605 + 21.7%

Operating Income △ 240 419 + 659 -

Ordinary Income △ 726 48 +774 -

Net Income Attributable to

Owners of Parent △ 763 △ 89 + 674 -

✔ Sales grew in all business.

✔ All income items grew.

◆ Connector business: growth of newly developed connector, etc. increased sales. Especially, sales of newly developed

full shield connectors with noise countermeasure function significantly grew.

◆ Automotive business: in addition to continued steady market acceptance of automobiles, development of automotive

electronics contributed to a mostly steady growth in sensor sales, and more adoption by different types of vehicles

contributed to a continued growth in automobile connectors.

◆ Semiconductor equipment business: there were signs of recovery in demand for capital expenditures for automotive

semiconductors and power semiconductors used in consumer products, by major customers such as semiconductor manufacturers. Therefore, sales of molding machines and molds grew.

◆ All income items significantly grew YoY as gross profit rose and operating income significantly improved thanks to the

increase in sales, although foreign exchange losses were incurred.

■ FY2017 1Q Consolidated Financial Highlights

Page 4: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

4 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Million yen FY2016

(Jan.-Mar.) Ratio

FY2017

(Jan.-Mar.) Ratio

Change

(%)

Sales 10,935 100.0% 11,872 100.0% + 8.6%

Cost of Sales 8,145 74.5% 8,476 71.4%

Gross Profit 2,790 25.5% 3,395 28.6% + 21.7%

Selling

Administration

Exps 3,031 27.7% 2,976 25.1%

Operating

Income △ 240 △ 2.2% 419 3.5% -

Non-operating

Income 78 0.7% 16 0.1%

Non-operating

Expense 565 5.2% 387 3.3%

Ordinary

Income △ 726 △ 6.6% 48 0.4% -

Extraordinary

Income - - - -

Extraordinary

Expense - - - -

Net Income

before Tax △ 726 △6.6% 48 0.4% -

Taxation 34 0.3% 142 1.2%

Net Income

Attributable to Non-

controlling Interests 3 0.0% △ 4 0.0%

Net Income

Attributable to

Owners of Parent △ 763 △ 7.0% △ 89 △ 0.7% -

No. of Employees

5,702 5,826

✔ Higher connector division sales significantly improved gross

margin ratio and pushed up all income items.

✔ Especially, the impact of the growth in income due to

higher sales of newly developed full shield connectors

made a particularly large contribution to improving gross

profit.

✔ Overall gross margin ratio significantly improved by 3.1

points to 28.6% YoY.

✔ SG&A expenses were slightly reduced due to a decrease

in sales commissions, etc. As a result, the gross profit

increased, and operating income significantly increased. ✔ Ordinary income significantly improved YoY, although

foreign exchange losses of 368 million yen were incurred. ✔ Net income significantly improved YoY, although it was

negative due to the increase in tax accompanying the

increase in incomes.

Gross Margin Ratio: 28.6%

Operating Income: 419 million yen

< Depreciation > ( Million yen )

Growth in sales and incomes of connectors

largely impacted performance.

FY2016 1Q (Jan.-Mar.)

Actual

FY2017 1Q (Jan.-Mar.)

Actual

FY2016 (Jan.-Dec.)

Actual

FY2017 (Jan.-Dec.)

Plan

1,143 1,213 5,477 5,500

■ FY2017 1Q Consolidated Statements of Income

Page 5: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

5 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

324 344 488 467 557

4,714 4,248 4,502 4,510 4,733

5,897 6,556 6,759 7,025 6,582

1Q 2Q 3Q 4Q 1Q

Connectors and Electronics Components

Automotive Components

Semicon Equip. and others

11,872 (Million yen)

11,148 10,935

11,749 12,002 ✔ Connector & Electronics: showed recovery trend

compared with the previous 1Q when the sales

were sluggish, making a good start for the current fiscal year.

✔ Automotive Components: sensors and connectors

remained firm.

✔ Semiconductor Equipment & Others: equipment

orders are recovering due to the revitalization of the entire semiconductor market.

Sales grew YoY thanks to the

recovery in orders for connectors.

Million yen FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.)

Change

(%)

Connectors & Electronics

5,897 6,582 +11.6%

Automotive Components

4,714 4,733 +0.4%

Semicon Equip.

& others

324 557 +71.9%

Total 10,935 11,872 +8.6%

■ FY2017 1Q Sales per Segment

FY2016 FY2016 FY2016 FY2016 FY2017

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6 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

26.9% 26.4%

29.4% 31.1%

32.2%

24.3% 24.1%

24.3% 24.3% 24.6% 25.5% 25.3%

26.9% 27.9% 28.6%

1Q 2Q 3Q 4Q 1Q

Connectors and Electronics Components Automotive Components Total

Million yen

FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.) Change

(%) Amount Ratio Amount Ratio

Connectors & Electronics

1,589 26.9% 2,119 32.2% +530

Automotive Components

1,146 24.3% 1,164 24.6% +18

Semicon Equip. & others

55 17.0% 112 20.1% +57

Total 2,790 25.5% 3,395 28.6% +605

Gross margin ratio has recovered further as the factory

utilization rate increased because of increase in

connector sales due to a recovery in orders

particularly in March.

Sales remained steady due to strong automobile sales,

and the gross margin ratio was also improved slightly.

Connectors and Electronics Components

Automotive Components

Gross Margin Ratio / Two Main Businesses and Company Total

■ FY2017 1Q Gross Profit per Segment

FY2016 FY2016 FY2016 FY2016 FY2017

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7 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

314 402 313 284 263

1,007 991 944 998 1,126

620 846 1,096

1,457 1,283

1,590

1,769 1,814

1,740 1,695

2,366

2,548 2,592

2,546 2,215

1Q 2Q 3Q 4Q 1Q

Others HDD Components FPC/FFC etc

Micro-Coax Connectors RF Coax Connectors

【Sales by products】

Sales increased by 11% YoY thanks to growth of new items and recovery of

micro-coax connectors.

6,556

5,897

(Million yen)

✔ Sales of micro-coax connectors mainly for

PC panels were recovered. ✔ Sales of newly developed Board to Board

connectors significantly grew and doubled YoY. ✔ HDD components sales for servers and

game consoles were favorable.

Million yen FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.)

Change

(%)

RF Coax

Connectors 2,366 2,215 △6.4%

Micro-Coax

Connectors 1,590 1,695 +6.6%

FPC/FFC

Board to Board 620 1,283 +106.9%

HDD

Components 1,007 1,126 +11.8%

Others 314 263 △16.2%

Total 5,897 6,582 +11.6%

6,759 7,025

6,582

■ FY2017 1Q Connectors & Electronics Components

FY2016 FY2016 FY2016 FY2016 FY2017

Page 8: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

8 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

40%

27%

12%

17%

4%

221 303 313 284 263

1,007 991 944 998 1,126

728 1,007 1,010 984 874

1,575

1,707 1,900 2,213 2,104

2,366

2,548 2,592

2,546 2,215

1Q 2Q 3Q 4Q 1Q

Others HDD Components DA etc PC W/less Network

34%

32%

13%

17%

4%

FY2017 1Q

【 Component Ratio 】

W/less

Network

PC

HDD

DA & Smartphone

【 Sales by Applications 】

5,897

Million yen FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.)

Change

(%)

W/less Network 2,366 2,215 △6.4%

PC 1,575 2,104 +33.6%

DA, Smart

Phone 728 874 +20.1%

HDD

Components 1,007 1,126 +11.8%

Others 221 263 +19.0%

Total 5,897 6,582 +11.6%

(Million yen)

6,556 6,759

7,025 6,582

■ FY2017 1Q Connectors & Electronics Components

FY2016 1Q

FY2016 FY2016 FY2016 FY2016 FY2017

Page 9: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

9 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

606 555 430 403 452

820 895 1,118 1,072 1,278

3,288 2,798

2,954 3,035

3,003

1Q 2Q 3Q 4Q 1Q

Associated Components Electronics Automotive sensors

【Sales by products】

Sales of automotive components

business remained at a high level. (Million yen)

4,714 4,510

4,733

4,248 4,502

✔ Angle sensors and pressure sensors

remained in full production to fill orders from customers.

✔ Own brand connectors increased 1.7

times YoY. As for the electronics parts, internally-

developed SMT connectors for LED headlights grew.

Million yen FY2016

(Jan.-Mar.)

FY2017

(Jan.-Mar.)

Change

(%)

Automotive

Sensors 3,288 3,003 △8.7%

Electronics Parts

(Own Brand)

820 (411)

1,278 (704)

+55.9% (+71.3%)

Associated

Components 606 452 △25.4%

Total 4,714 4,733 +0.4%

(411) (477) (482) (461) (704)

( )Own brand connectors

■ FY2017 1Q Automotive Components

FY2016 FY2016 FY2016 FY2016 FY2017

Page 10: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

10 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Million yen FY2016

4Q FY2017

1Q Change

Current Assets 31,094 30,241 △ 853

Cash & Deposit 11,111 11,397 + 286

Notes & Accounts Receivable

10,665 9,615 △ 1,050

Inventories 8,131 8,233 + 102

Fixed Assets 28,081 28,161 + 80

Tangible Fixed Assets

26,710 26,829 + 119

Intangible Fixed Assets

378 357 △ 21

Investments and Other Assets

992 974 △ 18

Total Assets 59,175 58,403 △ 772

Million yen FY2016

4Q FY2017

1Q Change

Current Liabilities 9,112 8,095 △ 1,017

Notes & Accounts Payable

2,378 2,124 △ 254

Short-term Debt 3,250 2,491 △ 759

Long-term Liabilities

5,381 6,175 + 794

Long-term Debt 3,033 3,777 + 744

Total Liabilities 14,494 14,270 △ 224

Shareholders’ Equity

44,199 43,942 △ 257

Total Net Assets 44,681 44,133 △ 548

Total Liabilities & Net Assets

59,175 58,403 △ 772

Our interest-bearing debt & bonds decreased by 15

million yen versus FY2016 as planned.

Equity Ratio: 75.3% (FY2016) ⇒ 75.4%

Turnover

Period

(Unit:month)

FY2016 4Q

FY2017 1Q Change

Accounts

Receivable 2.29 2.43 +0.14

Inventories 2.88 2.91 +0.03

■ FY2017 1Q Consolidated Balance Sheet

Extremely healthy condition with over 70% equity ratio has been maintained!

Acquisition of fixed assets: 1,523 million yen

Favorable turnover periods of accounts receivable

and inventories have been continuously maintained.

【 Assets 】 【 Total Liabilities & Net Assets 】

Page 11: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

11 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Million yen

FY2016 FY2017

Full-year Actual

Ratio 1Q

Actual Ratio

1H Plan

Ratio Full-year

Plan Ratio

Sales 45,834 100.0% 11,872 100.0% 23,400 100.0% 50,000 100.0%

Connectors & Electronics Components

26,237 57.2% 6,582 55.4% 13,100 56.0% 28,800 57.6%

Automotive Components

17,974 39.2% 4,733 39.9% 9,300 39.7% 18,900 37.8%

Semiconductor Mfg equipment &

Others

1,623 3.5% 557 4.7% 1,000 4.3% 2,300 4.6%

Gross Profit 12,116 26.4% 3,395 28.6% 6,338 27.1% 14,293 28.6%

Overhead Expenses

11,715 25.6% 2,976 25.1% 5,988 25.6% 12,293 24.6%

Operating Income

401 0.9% 419 3.5% 350 1.5% 2,000 4.0%

Ordinary Income 800 1.7% 48 0.4% 550 2.4% 2,200 4.4%

Net Income Attributable to Owners of Parent

157 0.3% △ 89 △ 0.7% 320 1.4% 1,500 3.0%

Dividends per Share

15 5 15

■ FY2017 Plan Brief Overview of Consolidated Business Budget for FY2017

Page 12: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

12 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Business Strategies for FY2017

■ FY2017 Plan Business Strategies

① Connectors & Electronics

Pursue high-speed transmission technologies to

create highly value-added business.

② Automotive Electronics & Associated Components

Focus resources on this sector to expand

automotive business.

③ New Business

Catch new business opportunities and create more

“DANTOTSU” (Outstanding) products.

Page 13: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

13 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

✔ 1.7 times YoY. Increase the use of connectors that prevent high

frequency noises in PCs and mobile phones.

・ Used in new smartphone models made in Korea

and China. ・ Target new applications involving IoT.

・ Expand sales of full shield connectors for PCs.

・ Target new applications involving robots,

medical equipment and other products.

1,313 1,300

3,940 4,000

6,913 6,500

10,052 10,000

4,019 7,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

16/12期 17/12期

FY2017 Full-year plan

・ Start using a new business model.

Establish a company “IGM TECH”.

1,313

NOVASTACK®35-HDP

Micro-Coax Connectors

■ FY2017 Plan Connectors & Electronics Components

28,800

26,033

FY2016 Actual

4,019

6,913

10,052

3,940

26,237 Board to Board Connectors

High-frequency interference prevention connectors

CABLINE®-CAⅡ

✔ 新規ビジネス本格供給開始

エストルク/産業用ロボットに採用

Pursue high-speed transmission technologies to create highly value-added

business.

RF Coax Connectors

Micro-Coax Connectors

FPC/FFC

Board to Board etc.

HDD Components

(Million yen)

Page 14: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

14 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

✔ Focus on expanding sales of

connectors for PCs.

Increase sales of micro-coax connectors and full

shield Board to Board connectors as one of the

strategic products.

1,313 263 500 1,300

3,940

1,126 1,900

4,000

4,019

1,283

3,000

7,000

6,913

1,695

3,200

6,500

10,052

2,215

4,500

10,000

Full-year Actual 1Q Actual 1H Plan Full-year Plan

Others HDD Components

FPC/FFC etc Micro-Coax Connectors

RF Coax Connectors

Million yen 1Q

Actual

1H

Plan Progress rate

(%)

RF Coax

Connectors 2,215 4,500 49.2%

Micro-Coax Connectors 1,695 3,200 53.0%

FPC/FFC

Board to Board 1,283 3,000 42.8%

HDD

Components 1,126 1,900 59.3%

Other 263 500 52.6%

Total 6,582 13,100 50.2%

13,100

26,237

6,582

28,800

■ FY2017 Plan Connectors & Electronics Components

【 Sales by Products 】

✔ Create highly value-added business.

Promote a differentiation strategy by using high-speed

transmission technology.

(Million yen)

FY2016 FY2017 FY2017 FY2017

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15 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

39%

28%

14%

15%

4%

1,121 263 500 1,300

3,940

1,126 1,900

4,000

3,729

874

2,100

4,800

7,395

2,104

4,100

8,700

10,052

2,215

4,500

10,000

Full-year Actual 1Q Actual 1H Plan Full-year Plan

W/less Network PC

Digital Appliance, Smart Phone HDD Components

Other

Million yen 1Q

Actual

1H

Plan Progress

rate (%)

W/less Network 2,215 4,500 49.2%

PC 2,104 4,100 51.3%

DA, Smart Phone 874 2,100 41.6%

HDD

Components 1,126 1,900 59.3%

Others 263 500 52.6%

Total 6,582 13,100 50.2%

35%

30%

17%

14%

4%

FY2016 FY2017

28,800

26,237

6,582

13,100

HDD W/less

Network

PC

DA &Smartphone

【 Component Ratio 】

■ FY2017 Plan Connectors & Electronics Components

【 Sales by Applications 】

(Million yen)

FY2016 FY2017 FY2017 FY2017

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16 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

✔ Orders were received for all

next-model products!

✔ Target 30% YoY increase!

Urgent need to boost production capacity!

1,994 1,600

3,905 5,200

12,075 12,100

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

16/12期 17/12期

■ FY2017 Plan Automotive Components

(Million yen)

Increase sales of our own brand connectors

18,900 17,974

12,075

1,994

3,905

4,019

4,019

Focus resources on this sector for more growth of automotive business.

Existing products are being produced

at full capacity.

・Focus resources → Organizational restructuring

・Increase ability to produce equipment

→ Established the Shanghai Technical Center

・Boost production capacity

→ Planning to enlarge factories in Japan and other countries

FY2017 Full-year

plan FY2016 Actual

【SMT Connector】

【Angle Sensor】 【Pressure Sensor】

Automotive Sensors

Electronics

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17 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

・Initiatives for increasing production

capacity. Strengthen production system through

expansion of plants, etc.

・Expand sales of own brand connectors.

Continue to expand sales of connectors for

LED headlights, and continue preparation for

new items.

✔ Sales are expected to remain high in 2Q.

1,994 452 800

1,600

3,905

1,278

2,400

5,200

12,075

3,003

6,100

12,100

Full-year Actual 1Q Actual 1H Plan Full-year Plan

Associated Components Electronics Automotive sensors2

■ FY2017 Plan Automotive Components

(Million yen)

17,974 18,900

9,300

【Sales by Products】

4,733

Million yen 1Q

Actual

1H

Plan

Progress

rate

(%)

Automotive

Sensors 3,003 6,100 49.2%

Electronics Parts

(Own Brand)

1,278 (704)

2,400 (1,200)

53.3% (58.7%)

Associated

Components 452 800 56.5%

Total 4,733 9,300 50.9%

( )Own brand connectors

(1,831) (2,500)

Record-high

FY2016 FY2017 FY2017 FY2017

Page 18: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

18 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

1,623

557

1,000

2,300

Full-year Actual 1Q Actual 1H Plan Full-year Plan

■ FY 2017 Plan Semiconductor Mfg. Equipment & Others

【GP-PRO SP170】

【TS-PRO】

Promote sales activities using technology proposals that match customers’ requirements!

FY2016 FY2017 FY2017 FY2017

✔ Expand sales by leveraging strengths as the

market leader. Automatic taping machines for specialty packages.

✔ More progress with ultra-thin molding

technology. Increase sales of encapsulation machinery for thin

packages.

✔ Reinforce sales activities in Asia. Conduct sales activities closely linked with each region and

build stronger ties with agents.

No. 1 Market share Auto Taping System for MAP-QFN

Semiconductor Molding

Machine

Other Related

Equipment

(Million yen)

Page 19: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

19 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Full-scale production has started! “Electrostatic Capacitance Torque Sensor” That Realizes Human-Robot Coexistence.

Used in robots made by YASKAWA Electric Corporation.

Industrial robots and people can work in the

same location without safety fences.

ESTORQ will be installed in “Tree”, an assist

robot for walking rehabilitation made by “Reif Co., Ltd.”

To be installed in rehabilitation robots.

【HC10】

■ FY 2017 Plan New Business Introduction ①

Service Medical・Nursing Care

R T

Robot Technology

Manufacture

Key Parts Application Field

*The world’s first ”Electrostatic Capacitance Method”

This sensor is used for robots’ joints to detect and control force to rotate and twist things.

*Based on our survey

Page 20: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

20 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ FY 2017 Plan New Business Introduction ②

with 3-Axis Acceleration Sensors Using Piezoelectric Thin Films

First MEMS Device - “Seismic Wave Detectors”

MEMS sensors

“Seismic wave detectors” equipped with 3-Axis Acceleration

MEMS Sensors

Page 21: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

21 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ FY 2017 Plan New Business Introduction ③

Second MEMS Device – “The Mirror Device”

This MEMS mirror device reduces the size of the laser scanners that are needed for the

safe operation of self-driving vehicles. This device is also suitable for all other detection

units that use lasers (e.g., virtual keyboard input).

We are now working on using this device to create products for sale in the automobile,

information and communications, environmental, medical, and other industries.

【 Examples of how the MEMS mirror devices can be used 】 Virtual Keyboard Input Laser Scanner

*Image

The Industry’s Smallest Class MEMS Mirror (3.0 mm×4.6 mm) with Piezoelectric Thin Film

Page 22: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

22 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ FY 2017 Plan New Business Introduction ④

Third MEMS Device – "High Acceleration Sensor" New MEMS sensor with piezoelectric thin film for automobile crash test!

We have developed a sensor that can detect high acceleration of up to 2,000G. They

are attached to dummies to assess damages during automobile crash tests. Samples

are currently being evaluated by prospective users.

The 2000G Acceleration Sensor

MEMS Sensor

*Image

Acceleration Sensors

Page 23: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

23 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ 2017 Plan Capital Expenditures

Continue aggressive capital expenditures in new businesses, etc.

to build a powerful foundation for sustained growth.

1,819

-697 -1,234

1,246 2,355

157

1,500

3,689 5,042 5,208

4,944

5,119

5,477

5,500 4,568

6,490 6,382

5,017

8,826

6,910 7,500

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Hundred million yen

FY2013 Actual

FY2014 Actual

FY2015 Actual

FY2016 Actual

FY2017 Plan

Production M/C 60 43 62 56 60

Expansion of Plants - 4 10 2 5

New Businesses for MEMS, etc. - - 10 6 3

R & D 2 2 2 2 2

Others 1 1 4 3 5

Plan

< for 9 months >

(Million yen) Capital

Expenditures

Depreciation

Net Income

Page 24: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

24 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Reference

Page 25: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

25 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

(Sales Ratio 55.4%) Connectors & Electronics Components

GP-PRO SP170 TS-PRO GP-PRO sf40

(Sales Ratio 39.9%) Automotive Electronics & Associated Components

■Reference Main Products

MHF® MINIFLEX175-ST CABLINE

®-CAⅡ NOVASTACK

®35-HDP

Note: sales ratios are based on

financial results for 1Q of FY2017.

RAMP

【RF Coax Connectors】 【Micro-Coax Connectors】 【Board to Board Connectors】 【FPC/FFC Connectors】 【HDD Components】

【Sensor】 【 Connector for Automobile】 【Electronics】 【Associated Components】

Angle Sensor Pressure Sensor SMT Connector PCB Connector Control Unit Smart Entry Key Ignition Coil

(Sales Ratio 4.7%) Semiconductor Mfg. Equipment and Others

【Semiconductor Molding Machine】 【Other Related Equipment】 【Peripheral Device for Injection Molding】

Gate Cut Robot

Page 26: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

26 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

3,151 1,634 2,057 1,776 1,952 2,201 1,623 2,300

12,523

8,911

13,559 14,920 15,874 17,370 17,974

18,900

31,133

21,175

25,558 24,705

28,715 29,178

26,237 28,800 6,716

3,247

1,042 1,328

3,098 2,344

800

2,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

FY3/11 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Semicon Equip. and others Automotive Components

Connectors and Electronics components Ordinary Income

50,000 46,807

31,720

41,174 41,401

46,541 48,749

45,834

■Reference Transition of Business Performance

Plan

(Million yen)

<for 9 months>

Page 27: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

27 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ Reference Business Model ① -No overlap in business process-

● 2004 business integration with I-PEX

● 2006 listed on the JASDAQ securities exchange

● 2011 listed on the first section of the Tokyo Stock Exchange

● 2012 started new connector business organization

● 2012 set up our own automotive connector brand “I-PEX AUTOMOTIVE”

● 2014 started sensor business

Detect and control motions of human-like robots and

auto-assembling machines, etc.

Corporate history

● 1963 started as a precision tooling company

● 1976 started precision plastic molding

● 1979 started overseas operation

● 1980 started semicon mfg. equipment business

● 1982 started integrated production strategy

● 1994 started business with I-PEX

● 2000 started automotive business

Provides mold tooling &

assembly system technology

OEM Subcontractor

Fabless

Design & Sales

OEM

R&D plus Production

No overlap in business process

Fabless connector maker

<2004 ~Business integration>

New connector maker with a strong mold engineering origin.

Page 28: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

28 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ Reference Business Model ② -Integrated production system-

(In-house tooling and machinery) (Production of connectors)

(1)Fast R&D

capability

(2)Production system

design + tooling ability (3)Integrated Production Sites

(Design & development

of connectors)

R&D to create the world’s first products

Fast product design

Stamping Mold

Injection Mold

Machines for Injection, Assy., Inspection and Packing

Molding Raw material

Injection

Molding M/C

Mold for plastic parts

Stamping & Plating

Stamping Mold

Stamping Plant Plating Plant

Stamped metal terminals

Plated metal terminals

Molding Plant Plastic Parts Assembly

FAM for Assy.

Completion

Integrated in one company

Page 29: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

29 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ Reference Business Model ③ -Source of competitive edge: precision mold-

1.0mm

Super precise mold

Comparison with razor edge

Enlarged

0.25 mm thick

0.25 mm thick

0.3 mm or less fine process

1/1,000 mm precision

Connector mold

Around 200 parts assembled

1.DAI-ICHI SEIKO: ONE and ONLY connector company born as a Mold Origin company.

(1) Final product R&D capability

+ (2) Production system design and Tooling capability + (3) Integrated production sites in Multiple countries

【 Differentiates Dai-ichi Seiko from its competitors 】

● Speedy product supply on the market with our internally-developed products and production facilities.

2.Production Technology company born as a Mold Origin company.

(1) Production system design and Tooling capability + (2) Integrated production sites in multiple countries = Spreads widely across other industries

【 Providing various precision parts and devices targeting customers’ needs 】

● Produce precise molds for various industries by focusing our resources on high value-added products.

Diversified products of parts for automobile and hard disk drive, and equipments for semiconductors.

Page 30: FY 2017 ending Dec. 2017 First Quarter Financial Results · (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved. 4 Million yen FY2016 (Jan.-Mar.) Ratio FY2017 (Jan.-Mar.) Ratio

30 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

■ Reference Dai-ichi Seiko and its Group Companies

Production 19

Sales 12 YAMANASHI PLANT

FUKUOKA OFFICE Ogori Plant DJ Precision

FUKUOKA OFFICE Onojo Plant

FUKUOKA OFFICE Tachiarai Plant

TOKYO SHINAGAWA

OFFICE

OSAKA BRANCH

HEAD OFFICE KYOTO PLANT

SHIZUOKA OFFICE

Matsue Dai-ichi Seiko

TOKYO MACHIDA OFFICE

U.S.A. Alabama Plant

U.S.A. Texas

U.S.A. San Jose

U.S.A. Detroit

Philippines Laguna Plant

China Shanghai Plant 2

China Shanghai Plant 1

FRANCE

China Dong Guan Plant

Thai Plant

Vietnam Plant

KOREA

TAIWAN

SHANGHAI

SINGAPORE

HONG KONG

Singapore Yishun Plant

Indonesia Bintan Plant

Singapore Woodlands Plant

Malaysia Plant

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31 (C) Copyright DAI-ICHI SEIKO Co., Ltd. All rights reserved.

Corporate Planning

Phone: + 81.942.75.5264

E-mail: [email protected]

Web: http://www.daiichi-seiko.co.jp

Contact

--- NOTE ---

This is a document for corporate

presentation purposes only and not for

solicitation of investment.

Terms and conditions may change without

prior notice.