Annual Report 2015 - Zuken · Engineering data management is becoming a critical need in the manufacturing sector, increasing demand for the DS-2 and E3.EDM for CR-8000 and the E3.series,

Annual Report 2015CORPORATE PROFILE

CONTENTS

01 Annual Report 2015CORPORATE PROFILE

About Us Our Business Financial InformationCEO & COO Messages

02Review of Operations

05Topics from Press Releases

07 11 16 18

CORPORATE PROFILE Annual Report 201502

CEO & COO Messages

Makoto KanekoPresident and Representative Director

UNITING TO ACHIEVE BUSINESS EXPANSION

Ready to detect and respond to changesManufacturers are using digital solutions in ever more sophisticated ways that will dramatically boost productivity – a trend that is spreading globally. In the past few years, Zuken has established new development bases in North America and Europe, and implemented policies to strengthen its domestic and overseas marketing operations. This new infrastructure allows us to respond quickly to changes in the global marketplace, and offer optimum solutions and services to clients anywhere in the world. We are gradually seeing the results of this new system, and we will follow it up with a united effort to further expand our business.

Development and marketing with the global market in mindAll employees of the Zuken Group are working to deepen their relationships with clients. Understanding the clients’ needs will allow us to continually improve the values of our products and services, while offering better solutions. The automobile-related field with its technological innovation and market expansion, and the industrial machinery field – a hub of innovation for all manufacturing, are two important business domains where Zuken will raise its presence in global manufacturing. To do this, we will strengthen both product development and marketing operations.

Sales and income growth achieved in two consecutive fiscal years; increased dividend distributionIn the lead-up to the fiscal year ending March 2016, which marks Zuken’s 40th business term, Zuken put in place a range of clearly-defined measures to strengthen product development, sales and marketing. As a result, we achieved two consecutive periods of earnings growth while reinforcing our ability to generate a stable stream of sales and profits. Against this backdrop, Zuken has positioned the return of profits to shareholders as an important management policy. Our fundamental policy is therefore to ensure the payment of stable and continuous dividends. Based on this policy, we declared a period-end dividend of 10 yen per share, an increase of 3 yen per share bringing the annual dividend to 17 yen per share. In the current fiscal year ending March 2016, we intend to pay an annual dividend of 30 yen per share. This will include an ordinary dividend of 20 yen per share and a commemorative dividend of 10 yen per share.

As we work toward achieving our established goals, we hope we have your continued support and understanding.

CEO MESSAGE

Uniting to achieve business expansion


CEO & COO Messages


COO MESSAGE

We will expand our position as a trusted partner of the global manufacturing industry by providing solutions for the success of our customersThe Zuken Group provides leading digital solutions that take full advantage of the latest and most advanced technologies available to a variety of manufacturing fields. Our mission is to become a trusted partner that helps to optimize the product development process from design to manufacturing. Entering our 40th business term, we will work diligently to further expand our role and to promote the following four initiatives.

Since its simultaneous global release in October 2011, Zuken’s CR-8000 electronic design platform has undergone consistent upgrades. Over the past several years, we have made every effort to enhance the functions of the platform to reflect and address the needs of customers, who lead their respective industries worldwide. As a result, there are clear indications that the CR-8000 design platform is held in the highest regard globally and recognized as a major contributing factor to the development of advanced electronic products. Looking ahead, we will endeavor to strengthen our sales and support structures around the world to deliver this state-of-the-art system as a global standard design platform.

Recently, the global automotive market is experiencing volatile changes especially with respect to technologies and business models. In order to respond to these changes in a timely and flexible manner, in April 2014 we established an Automotive and Machinery business section in Japan. At the same time, we set up a new development base in Germany. Moving forward, we will strongly promote global collaboration and place considerable emphasis on the speedy development and commercial release of new wiring design system products, which are expected to grow in importance.

Overseas, we are making every effort to expand our business in Asia, which is experiencing remarkable growth as a base for the development and manufacture of electronics products. As a part of these efforts we are promoting collaboration with the Zuken SOZO Center located in North America. In addition, we established Zuken India Private Limited in the promising market of India. Looking ahead, Zuken India Private Limited will undertake activities in earnest and work to address the needs of leading companies and research institutions in the aerospace, automotive and other-related fields. Meanwhile, we are initiating sales of the CR-8000 in Europe and the United States. Gaining the acclaim of a number of advanced companies that require cutting-edge design environments, we will endeavor to expand our business through the fully-fledged roll-out of this and other related systems.

The pace of change within our operating markets will continue to accelerate. The Zuken Group will adapt to rapid changes in the market from both the development and marketing perspectives. Going forward, we will continue to develop optimal solutions in a timely manner and help to realize the ideal engineering infrastructure to which customers around the world aspire. Our goals are to increase design efficiency as well as productivity. Taking each of the aforementioned into consideration, we maintain an unwavering commitment to becoming a true global company and a best partner to manufacturing companies.

Jinya KatsubeCOO and Representative Director

CEO & COO Messages


2015

21,297.83Millions of yen

Others 0.2%Americas5.3%

Europe20.4%

Asia6.3%

Japan67.8%

2014

19,772.85Millions of yen

Others 0.1%Americas5.4%

NET SALES

Europe20.3%

Asia6.6%

Japan67.6%

(Years ended March 31)


BUILDING ON OUR SUCCESS AROUND THE WORLD

Review of Operations

JapanIn the fiscal year under review the EDA (Electronic Design Automation) business, with CR-8000 at its core, was successful in addressing growing needs in a variety of fields including in-vehicle devices, industrial automation and infrastructure systems, expanding its operations and winning new customers. Looking ahead, we will put forward innovative processing proposals that optimally combine design infrastructure and various CAE (Computer-aided Engineering) solutions with design support and other services in a bid to further increase our share of the market.

In the global automotive market, we continued to strengthen our support of wire harness suppliers and to build up a solid track record of results. We will continue to pursue the development of new solutions that support our customers from the planning to design phases, and work to create a development environment for next-generation automobiles by reinforcing collaboration with our development base in Germany.

We are actively expanding sales of the E3.series in the civil infrastructure sector, as well as promoting the increased application of digital solutions for electrical design in the machinery sector. In the manufacturing field, energies are being directed toward the application of our unique concept for BOM, a “bill of materials” solution, and we are receiving a steady stream of new orders for PreSight/visual BOM across a broad cross-section of industries.

AsiaAsia has experienced an uncertain business environment. This was largely based on the withdrawal of key Japanese companies from China owing mainly to the slowdown in China’s economy growth and rising labor costs. Despite this anxiety, the Company’s results in the period under review were up 12% year-on-year as overall trends remained firm on the back of sound business conditions in areas such as Southeast Asia and Korea.

Expectations are that sales will expand. This reflects the growing trend by major consumer electronics companies and automotive-related companies to take up CR-8000 in Korea, and the successful conclusion of negotiations with large semiconductor manufacturers in Taiwan. In India, which continues to experience robust growth, Zuken established a local company against the backdrop of the Modi Administration’s “Make in India” policy. In the future, we will work diligently to expand our business by upgrading our support structure targeting the electronics manufacturing industry, and aggressively pursuing new business opportunities in India.

Europe and AmericasOur business continues to expand in Europe and the United States. In Germany, we established a new R&D operation to focus on the global automotive and transportation sector. We have successfully recruited experienced individuals with a proven record in automotive development processes, and acquired automotive IP to strengthen our competitive position. By promoting collaboration between this new group and business operations in Japan, we have opened discussions with automotive manufacturers in Europe as well as automotive-related markets in the United States and Japan. Meanwhile, sales of CR-8000 are projected to grow as manufacturers, including major automotive component companies, shift from CR-5000 to CR-8000. Engineering data management is becoming a critical need in the manufacturing sector, increasing demand for the DS-2 and E3.EDM for CR-8000 and the E3.series, respectively.

In the United States, Zuken USA continues to strengthen its position with a growing customer base and strong partner relationships. Zuken USA and the Zuken SOZO Center continue to collaborate reinforcing relationships with existing key customers and potential new customers. Through these endeavors, and by focusing on our core CR-8000, DS-2 and E3.series products, we will promote sales growth across an increasingly broad spectrum of markets.

Review of Operations

Joint exhibition with Zuken and Toyo Business Engineering

Zuken India's Office in Bengaluru, India

EM4EM team during final project review - with Audi R8 e-tron car


Topics from Press Releases

JAPAN

Toward a Seamless Collaboration Platform for Manufacturing IndustriesZuken and Toyo Business Engineering Conclude an Alliance Agreement

Companies in all industries are looking for new opportunities in an environment of increasing competition, as business fields become more global. The manufacturing sector is, of course, experiencing significant change under these circumstances, so the timely and accurate response to local customers’ needs is vital when managing a complex, and sometimes globally dispersed, supply chain. To optimize this process, tight collaboration between the design and production functions, each core operations of the manufacturing industry, is becoming an increasingly important issue.

Addressing this challenge in the manufacturing industry, Zuken concluded a capital and business alliance agreement with Toyo Business Engineering Corporation (B-EN-G), which boasts an illustrious track record in production management systems. Under this agreement, the two companies established the joint venture company DiverSync Corporation. By linking Zuken’s PreSight/visual BOM enterprise PLM system with B-EN-G’s MCFrame production management system, positive steps are being taken to realize the unique digital solutions through which both design and production functions can seamlessly exchange various data as a common platform.

Zuken and B-EN-G will share their knowledge and expertise through the activities of the joint venture company. Every effort will be made to provide a one-stop, comprehensive service that creates digital solutions to help bolster the competitiveness of the manufacturing industry.

Goals in Establishing a Joint Venture

Zuken [visual BOM]

DiverSyncToyo Business Engineering [MCFrame]

Digitalization of the connection between design and production

Toward the development of new solutions that facilitate comprehensive optimization from an operating perspective

Toyo Business Engineering Corporation

DiverSync Corporation

Corporate Profile

EstablishedFebruary 10, 2015

Address1-1 Shin-Yokohama 3-chome, Kohoku-ku, Yokohama City, Kanagawa Prefecture

Paid-in Capital100 million yen

ShareholdingZuken Inc.: 51%Toyo Business Engineering Corporation: 49%

Main businessesPlanning and development of solutions that help optimize ef�ciencies in the design and production functions in the manufacturing industry

EstablishedDecember 20, 1980

Address8-1 Otemachi 1-chome, Chiyoda-ku, Tokyo

President and representative directorMasanori Osawa

Paid-in Capital697 million yen

Net sales12,235 million yen on a consolidated basis (results for the �scal year ended March 31, 2015)

Main businessesConsultation on business administration and telecommunications systems, planning and development of computer networks, and planning, development, sales and leasing of telecommunications systems

Number of employees526 employees on a consolidated basis (as of March 31, 2015)


JAPAN

Strengthening Product and Service Strategies That Address B2B Corporate NeedsPDM System Up-and-Running in Three Months with Zuken’s DS-2 Expresso

Launched as a pre-configured solution in 2014, the DS-2 Expresso product data management (PDM) system for electronics draws on years of development and collaboration with customers. DS-2 Expresso minimizes the need for system customization through its wealth of system functions provided via a wide variety of templates. The system also enables the implementation of functions required by the customer in a short period of time.

In 2014, Zuken delivered the DS-2 Expresso system to Hitachi Industry & Control Solutions, Inc. in support of the company’s efforts to unify component data management, design deliverables management and utilization, and bill of materials (BOM) creation rules in the electrical and mechanical design fields. In addition to building the system and ensuring the startup of operations in three months, a procedure that normally takes from six months to a year to achieve, Zuken was also successful in helping Hitachi Industry & Control Solutions enhance its design efficiency and improve its quality in the electrical and mechanism fields.

Moving forward, Zuken will further strengthen the functionality of its products and expand services for its PDM systems in order to reduce the operating burden on users, provide electrical design environments that can generate returns on investment as quickly as possible, and address the increasingly diverse needs of B2B companies.




TAIWAN

Fully-Fledged Rollout of CR-8000 Design Force in AsiaPegatron Commences CR-8000 Design Force Contracted Design and Manufacturing Services

Taiwan-based Pegatron Corporation, a company that has received high global praise for its diverse product portfolio and advanced design technologies, adopted Zuken’s CR-8000 in 2012. Since then through technical cooperation with Zuken, Pegatron integrated its advanced automated design function into CR-8000 Design Force drawing on their design, verification, and manufacturing know-how cultivated through many years of experience. As a result, and with the additional contribution of coordination with the Zuken SOZO Center located in Silicon Valley in the U.S, remarkable achievements have been made in terms of shortened project lead times and quality improvements. Building on this achievement, and its adoption of CR-8000, Pegatron is attaining even higher quality as well as faster contracted design and manufacturing services. This improves their competitiveness as they work on increasing orders from major electronics companies who use CR-8000 in Asia, Japan, the United States and Europe.

Zuken will continue to serve as a technical partner to Pegatron. In addition to supporting Pegatron’s efforts to expand its contracted design and manufacturing service operations by putting in place a high quality and efficient design environment, Zuken will also work to increase sales of CR-8000 Design Force in Asia.



The CATRENE Innovation Award

GERMANY

Zuken Plays a Key Role in Winning an Innovation Award for Electric Vehicle Research CollaborationEM4EM Selected as the Most Innovative CATRENE Project in 2014

Electric vehicles and their electronic systems pose new issues that are not encountered in the development of conventional automobiles. This includes the problem of electromagnetic compatibility (EMC), which can become critical due to the need for the high currents and voltages required by electric vehicle engines to co-exist in close proximity to electronic control units (ECUs), which are noise-sensitive electronic devices.

The EM4EM (ElectroMagnetic Reliability and Electronic Systems for Electric Mobility) project was an important electric vehicle research initiative in Europe dedicated to tackling EMC problems in electrically-driven cars. The project brought together 17 partners from three countries. With its EMC technology team in Germany taking the lead EDA and analysis-related part of the project, Zuken played an important role in the research activities by advancing technology concepts for the EMC-related modelling of power and ground systems for ECUs, as well as the signal integrity field.

The project was presented with the CATRENE Innovation Award for the Most Innovative Project in 2014 at the European Nanoelectronics Forum held in Cannes, France, in December 2014.

By incorporating the results of this project into Zuken’s electronic design and wiring systems solutions, Zuken will provide optimal solutions to customers who are engaging in next generation automobile development worldwide.


Company Name

Foundation

Head Office

Paid-in Capital

Number of Employees

Stock Listing

Directors & Auditors (As of June 26, 2015)Zuken Inc.

December 17, 1976

2-25-1, Eda-higashi, Tsuzuki-ku, Yokohama, Kanagawa 224-8585 Japan

JPY 10,117,065,000

448 (Consolidated: 1,200) (as of the end of March 2015)

Tokyo Stock Exchange, First Section

* Outside director and outside audit & supervisory board members.


Yasuo UenoManaging Director

Gerhard LipskiDirector

Jinya KatsubeCOO and Representative Director

Kazuhiro KariyaManaging Director

Takeo OsawaDirector

Toshihiro ShimauchiSenior Managing Director

Yoshikazu SomaDirector

Takashi Sano Director*

Fusao WadaFull-time Audit & Supervisory Board Member

Takashi HandaAudit & Supervisory Board Member*

Yoichi AraiAudit & Supervisory Board Member*

Yasushi OzakiAudit & Supervisory Board Member*


CORPORATE PHILOSOPHY

"Healthy" refers to the maintenance of sophisticated and advanced technologies, and keeping a sound financial base.

Healthy"Vigorous" refers to youthfulness, which opens the way to the future, and the challenging mindset which flows from it.

Vigorous"Dignified" refers to sound judgment and exemplary behavior, as a corporation, a corporate employee and a member of society.

Dignified

To establish a healthy,vigorous and dignified corporate culture.

COMPANY PROFILE

About Us

Zuken SOZO Center

Zuken USA Inc.Americas HeadquartersWestford, Massachusetts

Zuken Inc.Worldwide HeadquartersYokohama, Japan

Zuken GmbH

GLOBAL NETWORK

European HeadquartersMunich, Germany

Business locations in JapanYokohama, Osaka and Nagoya

Overseas business locationsAsia (5 countries),

Europe and Americas (8 countries)

Group Companies in Japan

Zuken Elmic, Inc. Zsas Inc.

Business locationHeadquarter Main R&D of�ce

Zuken NetWave Inc. CADLAB. Inc. DiverSync Corporation

Milpitas,CA, USA

GLOBAL NETWORK

About Us


Zuken Elmic, Inc.

Zuken Elmic develops middleware libraries, which are vital in the development of embedded systems, and performs software development and support, as well as developing and marketing hardware.

Founded: April 30, 1977 Paid-in Capital: JPY1,202,036,093 URL: www.elwsc.co.jp

Zuken Shin-Yokohama Building 2F, 3-1-1 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa, 222-8505 Tel: +81 (0)45-624-8111

Zuken NetWave Inc.

Zuken NetWave carries out consulting on IT systems network construction, in addition to sales and support of related hardware and software. It also provides information processing services using state-of-the-art technologies.

Founded: April 9, 2001 Paid-in Capital: JPY150,000,000 URL: www.znw.co.jp

Zuken Shin-Yokohama Building 7F, 3-1-1 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa, 222-8505 Tel: +81 (0)45-473-6821

DiverSync Corporation

DiverSync Corporation is devoted to solutions' planning and development to realize an efficient and optimized approach in the manufacturers' design and manufacturing processes.

Founded: February 10, 2015 Paid-in Capital: JPY100,000,000 URL: www.diversync.jp

3-1-1 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa 222-8505Tel: +81-(0)45-330-8533

Zsas Inc.

Zsas meets customers' outsourcing needs in a variety of ways, such as by consulting related to the introduction, startup and operation of EDA and IT systems; dispatching of onsite managers and engineers; and customized software development.

Founded: May 15, 1997 Paid-in Capital: JPY147,700,000 URL: www.zsas.co.jp

Zuken Shin-Yokohama Building 5F, 3-1-1 Shin-Yokohama, Kohoku-ku Yokohama, Kanagawa, 222-8505 Tel: +81 (0)45-471-2334

CADLAB. Inc.

CADLAB specializes in providing 3D CAD operation support, CAE training and consulting services from its skilled experts.

Founded: May 1, 2007 Paid-in Capital: JPY50,000,000 URL: www.cadlab.co.jp

Zuken Center Minami Building 6F, 32-11 Chigasaki-Chuo, Tsuzuki-ku, Yokohama, Kanagawa, 224-8580 Tel: +81 (0)45-948-5806

Business locations in Japan

Group Companies in Japan

Center Minami Building

32-11 Chigasaki-chuo, Tsuzuki-ku, Yokohama, Kanagawa 224-8580Tel: +81 (0)45-942-1300Fax: +81 (0)45-942-7350

Kansai Branch

Dojima Axis, 2-2-28 Dojimahama, Kita-ku, Osaka 530-0004Tel: +81 (0)6-6343-1141Fax: +81 (0)6-6343-1144

Headquarters Office/Central Research Center

2-25-1 Eda-higashi, Tsuzuki-ku, Yokohama, Kanagawa 224-8585Tel: +81 (0)45-942-1511Fax: +81 (0)45-942-1599

Zuken Shin-Yokohama Building

3-1-1 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa 222-8505Tel: +81 (0)45-473-6868

Nagoya Branch

HF Sakura Dori Building, 3-23-20 Marunouchi, Naka-ku, Nagoya, Aichi 460-0002Tel: +81 (0)52-950-3671Fax: +81 (0)52-950-3675

About Us

Headquarter Business location Main R&D office


United Kingdom

Zuken Ltd. (Zuken Technology Center)

Zuken Group Ltd.

Zuken UK Ltd.

Zuken Technology Center1500 Aztec West, Almondsbury, Bristol, BS32 4RF, United KingdomTel: +44 (0)1454-207800

Germany

Zuken GmbH (European Headquarters)

Am Söldnermoos 17, 85399 Hallbergmoos, GermanyTel: +49 (0)89-607696-00

Zuken E3 GmbH

Lämmerweg 55, 89079 Ulm, GermanyTel: +49 (0)7305-93090

Zuken E3 GmbH

Sedanstrasse 124, 89077 Ulm, GermanyTel: +49 (0)7305-93090

Zuken GmbH (EMC Technology Center)

Am Hoppenhof 32a, 33104 Paderborn, GermanyTel: +49 (0)5251-150600

Zuken E3 GmbH Office Nord

Podbielskistrasse 333, 30659 Hannover, GermanyTel: +49 (0)511-85959489

Zuken E3 GmbH (Global Automotive and Transportation Competence Center)

Am Weichselgarten 7, 91058 Erlangen, GermanyTel: +49 (0)89-60769600

Poland

Zuken E3 GmbH Sp.z o.o

ul. Opolska 100, 31-323 Kraków, Poland

Switzerland

Zuken E3 GmbH, Vertriebsbüro Schweiz

Hintermättlistrasse 1-5, 5506 Mägenwil, SwitzerlandTel: +41 (0)56-437-0890

France

Zuken S.A.

3 avenue du Canada, ZA de Courtaboeuf, Bâtiment Thêta 2, Les Ulis, 91940, FranceTel: +33 (0)1-69-29-48-00

Italy

Zuken Srl

Strada 2-Palazzo C4, 20090 Milanofiori Assago, Milan, ItalyTel: +39 (0)2-57592100

Netherlands

Zuken GmbH, Sales Office Benelux

Kerkplein 1, 6075 HA Herkenbosch, NetherlandsTel: +31 (0)475-520998

Europe Americas

Asia

U.S.A.

Zuken USA Inc. (American Headquarters)

238 Littleton Road, Suite 100, Westford, MA 01886-3551, U.S.A.Tel: +1 978-692-4900

South Korea

Zuken Korea Inc.

3F Dongnam Yuhaw Building, (Daechi-dong)12, Yeongdongdaero 86-gil, Gangnam-gu, Seoul, 135-502, South KoreaTel: +82 (0)2-564-8031

Singapore

Zuken Singapore Pte. Ltd.

152 Beach Road #22-05, Gateway East, Singapore 189721Tel: +65 6392-5855

Taiwan

Zuken Taiwan Inc.

11F., No.6, Sec.2, Nanjing East Road, Taipei 104, TaiwanTel: +886 (0)2-2562-7227

China

Zuken Shanghai Technical Center

Room 1106, No.555 Nanjing West Road, Shanghai 200041, ChinaTel: +86 (0)21-3218-1784

Zuken Inc. Shenzhen Representative Office

Room 705, International Culture Building, No.3039, Shennanzhong Road, Shenzhen, Guangdong 518033, ChinaTel: +86 (0)755-8329-7510

Zuken Inc. Beijing Representative Office

Room1310, Air China Plaza, No.36, Xiao Yun Road, Chao Yang District, Beijing 100027, ChinaTel: +86 (0)10-8447-5076

India

Zuken India Private Limited

Salarpuria Cambridge Mall, Ground Floor-"A", No.9, Cambridge Road, Ulsoor, Bengaluru-560008, Karnataka, IndiaTel: +91-80-4662-1100

Overseas Locations

Zuken SOZO Center (Zuken Inc., US branch)

1900 McCarthy Boulevard, Suite 400, Milpitas, CA 95035-7457, U.S.A.Tel: +1 408-890-2831

About Us

Headquarter Business location Main R&D office


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Zuken acquires 14% share in Lattice Technology Co., Ltd., becoming its second-largest shareholder.

Release of Visual BOM, a next-generation engineering platform that merges bill of materials technology with ultra-lightweight 3D format XVL.

Worldwide release of CR-8000, a next-generation electronic device design platform. Start of sales of the new Design Force product completes Zuken's system level electronics design environment.

Zuken transfers its share in Inventure Inc. to Synopsys, Inc.

Zuken SOZO Center established in Silicon Valley, U.S.A.

Automotive and Machinery Division established.

Global Automotive and Transportation Competence Center established in Germany.

Zuken and Toyo Business Engineering concluded an agreement on their capital and business alliance.

DiverSync Corporation was established.

Zuken India Private Limited established in India.

Zuken took over YDC's CADVANCE operations.

Zuken SOZO Center

Headquarters/Central Research Center

Zuken's first home, the Kanagawaken Tosou Kaikan Building in Isogo

Minicomputer-based Create 2000

Corporate Logo

CR-3000(PWS)

Zuken GmbH (Germany)

Zuken GmbH/EMC Technology Center (formerly INCASES) in Paderborn, Germany

Zuken acquires all shares of INCASES Engineering GmbH.

Zuken NetWave Inc. established.

Zuken Shanghai Technical Center Co. Ltd. established In China.

ePLM DS-2, a PLM solution specially designed for electrical and electronics makers, announced.

Zuken Taiwan Inc. established.

Zuken acquires Germany's CIM-TEAM (now Zuken E3 GmbH).

CADLAB. Inc. established.

Release of V54EE, a mechanical CAD system specially designed for the electronics industry, based on Catia V5.

Zuken acquires 27% share in Elmic Wescom, Inc., makes it an associated company accounted for by equity method.

SOC division split up and integrated with Elmic Wescom, Inc., which gives Zuken a share allotment bringing the ratio of voting rights to 40.4%. This makes Elmic Wescom a consolidated subsidiary of Zuken, based on effective control standards.

Enterprise PLM Presight released.

Company becomes first EDA corporation to register on Second Section of Tokyo Stock Exchange.

Zuken Europe GmbH (now Zuken GmbH) established in Germany.

Zuken Korea Inc. established in Seoul.

Zuken Singapore Pte. Ltd. established in Singapore.

Zuken Inc. Beijing Representative Office opens.

EDA vertical integration solution CR-5000 developed.

Zuken acquires all shares of Racal-Redac Ltd. of U.K.

Listing moved up to First Section of Tokyo Stock Exchange.

Zuken Process Design Kenkyusho Inc. (now Zsas Inc.) established.

Zuken America Inc. (now Zuken USA Inc.) established in California, U.S.A.

Company name changed from Zukei Shori Gijutsu Kenkyusho Inc. to Zuken Inc.

Shares registered with Japan Securities Dealers Association as over-the-counter registered stock.

CR-3000(PWS), a printed circuit board CAE/CAD/CAM network workstation, developed.

December

June

Zukei Shori Gijutsu Kenkyusho Inc. established in Isogo-ku, Yokohama.

Company develops Japan's first full-scale CAD/CAM system, Create 2000, for design of printed circuit boards.

1976

1978

HISTORY

About Us



Electronic Design Automation (EDA)

ZUKEN PROVIDES TO CUSTOMERS A "POWER TO CREATE"

Our Business

Network Security

EmbeddedSW/IP

Service and Support

Enterprise PLMSolutions

Automotive and Machinery Design

Solutions

Electronic Design Automation (EDA)Electronics technology pervades every aspect of our lives in our digital world, and Zuken is at the forefront of the vital field of electronic design automation. Our software plays an important role in the development of new products with leading edge technologies for various industries all over the world. Zuken’s electronic design automation software covers the electronics design workflow from planning to design for manufacturing. Our data management system supports efficient processes that help our customers stay competitive in the global market.

Zuken’s electronics design software is evolving to address today’s ever more complex design challenges. In addition to state-of-the-art features such as 3D viewing, our open architecture is the most suitable design platform for use in tight integration with other engineering and design software or environments.

Wire Harness and Mechanical/Mechatronics Design SolutionsIn recent years, automobiles and other transportation machinery have begun to provide increasingly advanced functions by linking software, electronics and mechanical elements. The development of these products has required ever more advanced design environments to realize design processes from a higher level perspective. Zuken has a long history of providing design environments centered on wire harness design to the world's leading automotive suppliers.

We have begun to see progress in Internet technologies expanding from linking people to linking things. Industrial machinery is another field undergoing an epoch-making evolutionary process in step with the advance of sensing and communications technologies. We maintain a customer-centric point of view to promote the evolution of solutions that are only possible for Zuken with its base of knowledge and past accomplishments in electronics and mechanical design.

Enterprise PLM SolutionsManufacturers depend on a steady stream of new products in their pipeline — and their very survival depends on timely product releases and strictly controlled costs. At Zuken, we pride ourselves on our ability to offer ever more advanced and efficient IT solutions based on profound knowledge and experience obtained in many projects with leading technology companies. We continually expand our range of business activities beyond electronics design — optimizing design, manufacturing, sourcing and maintenance services throughout the supply chain, from design to delivery and after-sales services. One of the challenges in this field is addressed through our unique BOM concept, a “bill of materials” solution that provides much broader usability than legacy BOM solutions. By tightly integrating 3D visualized design data, our BOM solution becomes an enterprise IT platform throughout the design, engineering and supply chain.

Our Business


20152014201320122011

225355

630

1,010883

20152014201320122011

17,969

21,29819,773

17,88818,255

Millions of yen

NET SALESMillions of yen

OPERATING INCOME

(Years ended March 31)


A STRONG YEAR FOR PROFIT AND SALES IN 2015

Financial Information

Millions of yen

20152014201320122011

17,969

Net sales

21,29819,773

17,88818,255

20152014201320122011

Millions of yen

Operating income

225355

630

1,010883

20152014201320122011

Millions of yen

2,000

1,500

1,000

500

0

30,000

20,000

10,000

0

25

20

15

10

5

0

50,000

40,000

30,000

20,000

10,000

0

1,200

1,000

800

600

400

200

0

25,000

20,000

15,000

10,000

5,000

0

Net income

291 304510467

1,769

Millions of yen

20152014201320122011

35,780

Total assets

40,46438,84637,09938,270

20152014201320122011

Millions of yen

Total shareholders’ equity

26,480 27,885 27,295 27,93927,934

20152014201320122011

yen

Trends in dividends1

14 14 1417

24

CONSOLIDATED FINANCIAL HIGHLIGHTSYears ended March 31, 2011, 2012, 2013, 2014 and 2015

1. The extra dividend of ¥10 is included in cash dividends applicable to the period for the year ended March 31, 2012.Note



For the year Millions of yen Thousands of dollars2

Net sales 17,969 18,255 17,888 19,773 21,298 177,231

Operating income 225 883 355 630 1,010 8,402

Net income 291 1,769 304 467 510 4,242

2011 2012 2013 2014 2015 2015

Per Share of Common Stock Yen U.S. dollars2

Net income 4 11.63 76.07 13.08 20.08 21.92 0.182

Total net assets 1,138.74 1,201.29 1,199.22 1,173.84 1,201.59 9.999

Cash dividends applicable to the period 1 14 24 14 14 17 0.141

At Year-End

Total assets 35,780 38,270 37,099 38,846 40,464 336,720

Total shareholders’ equity 3 26,480 27,934 27,885 27,295 27,939 232,492

Financial Ratio %

Operating income ratio 1.3 4.8 2.0 3.2 4.7

Price earnings ratio 55.5 8.8 53.3 40.9 47.6

Shareholders' equity ratio 74.0 73.0 75.2 70.3 69.0

Current ratio 426.4 401.8 455.6 427.8 382.6

1. The extra dividend of ¥10 is included in cash dividends applicable to the period for the year ended March 31, 2012.2. For the convenience of the reader, the financial highlights described above have been presented in Japanese yen and also in U.S. dollars by arithmetically translating all Japanese yen amounts at ¥120.17 to US$1,

the exchange rate in effect at March 31, 2015.3. Total shareholders’ equity in the above table represents the total of shareholders’ equity and valuation and translation adjustments in the consolidated balance sheets.4. Net income per share is computed based upon the weighted-average number of shares of common stock outstanding during each fiscal year.

Notes



2-25-1, Edahigashi Tsuzuki-ku,

Yokohama, Kanagawa 224-8585 Japan

Tel: +81-(0)45-942-1511

Fax: +81-(0)45-942-1599

www.zuken.co.jp/en/

Zuken Inc.

Documents

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