Expansion of Business Scale, Human Resources and Technology Platforms through M&A and Alliances

「To concentrate our business resources on the plant demolition business, we have been considering the transfer of the shares of both companies.」

「The company’s intention to concentrate its business resources on its core plant-dismantling market aligned with 水道機工’s need to secure design personnel. The company therefore determined that transferring the businesses of ヒロエンジ and ３ＤＶ would contribute to business expansion by both 水道機工 and the company, and entered into a memorandum of basic agreement for the transfer of all shares.」

「July 2024　Strategic partnership with ＤＥＮＺＡＩ株式会社 for expanding the demolition business into overseas plants」

「Believing that combining the two companies' business resources across various demolition and facility-renewal businesses, including plants, would contribute to their continued development and enhance corporate value, the company entered into a share transfer agreement for the acquisition of オダコーポレーション株式会社 and made it a subsidiary.」

「At a meeting of the Board of Directors held on 21 July 2023, the company resolved to acquire 100% of the shares of オダコーポレーション株式会社. Following completion of the share acquisition on 1 August 2023, the company made オダコーポレーション株式会社 and its subsidiary, 株式会社ＴＯＫＥＮ, subsidiaries.」

「At a meeting of the Board of Directors held on 21 July 2023, the company resolved to enter into a share transfer agreement to acquire 100% of the shares of オダコーポレーション株式会社 and make it a subsidiary. The company made it a subsidiary on 1 August 2023.」

「September 2022 Capital and business alliance with 株式会社クラッソーネ relating to demolition DX technology December 2022 Business partnership agreement with 三谷産業株式会社 relating to the demolition of gas holders and other facilities」

「Demand is expected to increase for specialised environmental works, including asbestos and dioxin countermeasures, in the company's core plant demolition business. Believing that combining the two companies' business resources across various demolition businesses, including plants, would contribute to their continued development and enhance corporate value, the company acquired the shares of 矢澤 and made it a subsidiary.」

「To achieve the Sustainable Development Goals (SDGs), the company, as a leading company in the plant demolition industry, states in its corporate philosophy, “We contribute to the global environment through flexible thinking and creativity, and the technical capabilities that leverage them.” It aims to enhance corporate value by continuing to provide safe, appropriate, and efficient demolition services for all plant facilities reaching the end of their service lives, including large-scale facilities for power generation, steelmaking, petroleum refining, and petrochemicals that were built one after another during the period of rapid economic growth and supported Japanese industry for many years, using multiple patented demolition methods such as the “Apple-Peeling Method,” which cuts spherical storage tanks (gas holders) as if peeling an apple, and proprietary know-how accumulated through many years of plant demolition, including the non-hot-work dismantling of PCB-containing transformers.」

「As a result of recognising equity-method investment income and losses associated with リバーホールディングス社 becoming an equity-method affiliate during the six-month period ended the current second quarter, ordinary income was ¥273.779 million, up 1,441.2% year on year, and net income attributable to owners of the parent was ¥220.088 million, up 3,394.8%.」

「Against this backdrop, the Group is focusing on capturing strong demand for plant demolition, led by the power industry, where the transition to more efficient facilities is progressing, while considering strengthening partnerships, including M&A, for the decommissioning-related business of nuclear power plants, which is expected to expand in the future.」

「The company had previously held between 15% and less than 20% of the voting rights of リバーホールディングス株式会社, but from the current third-quarter consolidated accounting period, リバーホールディングス株式会社 became an equity-method affiliate because Yoshino Yoshihide (吉野佳秀), the company's representative director and chairman, became an outside director of リバーホールディングス株式会社.」

「In connection with the appointment described above, the company holds shares representing 15.01% of the voting rights of リバーＨＤ社 and will dispatch its representative director and chairman as an officer. Accordingly, リバーＨＤ社 is scheduled to become an equity-method affiliate of the company subject to approval at its shareholders' meeting scheduled for September 2020.」

「During the cumulative first quarter, the company acquired the 3D scanning and modeling business from 株式会社インターアクション through a business transfer by its newly established subsidiary, ３Ｄビジュアル株式会社, and began full-scale business operations.」

「３Ｄビジュアル株式会社　　　　We established ３Ｄビジュアル株式会社, a wholly owned subsidiary providing 3D scanning, modelling, and design services, to enhance the sophistication of demolition projects. In connection with this business partnership, the company received 2,500,000 shares of リバーＨＤ社 held by ＩＮＣＪ社 (14.59% of total shares issued; acquisition cost: ¥2,480 million). As a result, the company holds 10% or more of リバーＨＤ社's voting rights and became a major shareholder of リバーＨＤ社.」

「In connection with this business partnership, the company received 2,500,000 shares of リバーＨＤ社 held by ＩＮＣＪ社 (14.59% of total shares issued; acquisition cost: ¥2,480 million). As a result, the company holds 10% or more of リバーＨＤ社's voting rights and became a major shareholder of リバーＨＤ社.」

「In connection with this business partnership, the company is to receive 2,500,000 shares of リバーＨＤ社 held by ＩＮＣＪ社 (14.59% of total shares issued; acquisition cost: ¥2,480 million). As the company is expected to hold 10% or more of リバーＨＤ社's voting rights, it is expected to qualify as a major shareholder of リバーＨＤ社.」

「The Other segment consists of staffing services. Following the acquisition of 株式会社ヒロ・エンジニアリング as a subsidiary from the same quarter of the previous year, sales from ancillary businesses totaled ¥52.225 million, up 83.8% year on year.」

「Particularly regarding the decommissioning of nuclear power plants, we will build a “Decommissioning Business Platform” through business partnerships.」

「In connection with making 株式会社ヒロ・エンジニアリング a subsidiary by subscribing to shares issued through its third-party allotment on 30 March 2018, the Group came to consist of the company and 1 subsidiary.」

「In connection with making 株式会社ヒロ・エンジニアリング a subsidiary by subscribing to shares issued through its third-party allotment on 30 March 2018, the Group came to consist of the company and 1 subsidiary.」

「We will actively pursue partnerships, including M&A, to maximise business scale and secure talented personnel, while adding companies providing services closely related to our existing businesses, such as design, cloud services, and robotics, to develop innovative new services. The shares were acquired on 30 March 2018. Voting rights held: 90%.」