Expansion into New Businesses Through M&A Centered on Capital Alliances and Business Acquisitions

「We will use the expertise developed across the Group to improve the profitability of existing investees, identify high-quality investment opportunities while taking account of risk diversification, and continue to invest proactively.」

「Although consumer purchasing appetite declined amid rising prices and retail sales through e-commerce struggled, the investment and consulting business recorded higher sales year on year, supported by sales contributed by 東北新和化学株式会社, which became a consolidated subsidiary in April 2024.」

「Although the operating environment is expected to remain challenging due to the established trend of yen depreciation and higher procurement costs, we will use the expertise developed across the Group to improve the profitability of existing investees, identify investment opportunities while taking account of risk diversification, and continue to invest proactively.」

「Although sales contributed by 株式会社ＭＡＳＣ, which became a consolidated subsidiary in March 2023, contributed to results, they were insufficient to offset the decline in sales at the New Drug Research Center.」

「The investment and consulting business comprises new-business M&A conducted by our subsidiary, 株式会社ＴＧビジネスサービス, together with advisory and support services in the broad fields of business succession and business revitalisation.」

「During the current second quarter, the number of consolidated subsidiaries increased by 1 following a share acquisition by 株式会社ＴＧビジネスサービス, which operates the business described above.」

「This business provides new businesses through M&A, as well as advisory and support services in the broad fields of business succession and business revitalisation.」

「During the current third quarter, we acquired all shares of 株式会社ルナパス毒性病理研究所 and made it a subsidiary, and therefore newly included it in the scope of consolidation. In addition, during the second quarter, the number of consolidated subsidiaries increased by 1 following a share acquisition by 株式会社ＴＧビジネスサービス, which operates the business described above.」

「During the current second quarter, the number of consolidated subsidiaries increased by 1 following a share acquisition by 株式会社ＴＧビジネスサービス, which operates the business described above.」

「In the TGBS business, we intend to invest more proactively than ever in opportunities that meet our investment criteria, with a view to further increasing investment returns.」

「During the three-month period ended in the second quarter, 株式会社ＴＧビジネスサービス, a subsidiary of the Company, acquired 60% of the shares in 株式会社キヅキ, and the company was newly included in the scope of consolidation. During the three-month period ended in the third quarter, an additional 40% of its shares were acquired.」

「During the current second quarter, 株式会社キヅキ has newly been included in the scope of consolidation following the acquisition of 60% of its shares by our subsidiary, 株式会社ＴＧビジネスサービス.」

「During the current first quarter, 医化学創薬株式会社, formerly an equity-method affiliate, became a subsidiary under the substantive control criterion and has therefore been included in the scope of consolidation.」

「In March 2020, the Company made ギャラックス貿易株式会社, which imports tableware and conducts retail and wholesale sales through online shopping sites, a consolidated subsidiary, thereby strengthening its earnings base.」

「The ＴＧＢＳ business is operated by the Company's subsidiary 株式会社ＴＧビジネスサービス and conducts M&A for new businesses, as well as providing advisory and support services relating to business succession and business revitalization across a broad range of fields.」

「Furthermore, on 1 April 2019, the Company's consolidated subsidiary 株式会社ＴＧビジネスサービス acquired all shares of 株式会社ＴＧＭ and made it a subsidiary. 株式会社ＴＧＭ imports and sells auxiliary materials for insulating glass and glass-processing equipment.」

「In April 2019, the Company's consolidated subsidiary 株式会社ＴＧビジネスサービス acquired all shares of 株式会社ＴＧＭ and made it a subsidiary. 株式会社ＴＧＭ imports and sells auxiliary materials for eco-glass, including spacers and sealants, and glass-processing equipment, with a major domestic glass manufacturer as its principal customer. The acquisition expanded the earnings base.」

「The ＴＧＢＳ business is operated by 株式会社ＴＧビジネスサービス, which was established in November 2017, and promotes new businesses through M&A while providing advisory and support services relating to business succession and business revitalization across a broad range of fields.」

「This business is operated by 株式会社ＴＧビジネスサービス, which was established in November of the previous year, and involves promoting new businesses through M&A and providing advisory and support services relating to business succession and business revitalization across a broad range of fields.」

「On 1 April of the current year, the Company's consolidated subsidiary 株式会社安評センター acquired the business of 公益財団法人食品農医薬品安全性評価センター. As a result, CRO business order backlog at the end of the first quarter of the current consolidated fiscal year increased substantially to ¥1,209 million, up 182.4% year on year, and its capacity to accept orders for nonclinical safety studies across a broad range of fields also expanded significantly.」

「Based on these considerations, the Company decided to use the business acquisition and revitalization expertise accumulated to date and, through its newly established ＴＧＢＳ社, provide advisory and support services relating to business succession and business revitalization across a broad range of fields, as well as conduct M&A, in order to more flexibly promote earnings diversification by establishing a business model not dependent on the business environment in the biotechnology industry. In accordance with this policy, ＴＧＢＳ社 acquired all shares of 株式会社ルーペックスジャパン, which develops and sells information and communications equipment, in November of the previous year, making it a subsidiary.」

「Use of funds: Future M&A and capital and business alliances」

「The Company will focus on M&A, including capital alliances and business acquisitions, in new businesses expected to generate synergies with its existing businesses.」

「As part of its initiatives in new businesses, on 20 April of the previous year the Company resolved to, and did, subscribe jointly with its capital and business alliance partner 株式会社免疫生物研究所 for a third-party allotment of new shares conducted by that company, with a payment date of 11 May, in order to promote the practical application as an antibody drug of the anti-HIV antibody owned by ㈱CURED (Yokohama; research and development of antibody drugs).」

「As part of its initiatives in new businesses, on 20 April of the current year the Company resolved to, and did, subscribe jointly with its capital and business alliance partner 株式会社免疫生物研究所 for a third-party allotment of new shares conducted by that company, with a payment date of 11 May, in order to promote the practical application as an antibody drug of the anti-HIV antibody owned by ㈱CURED (Yokohama; research and development of antibody drugs).」

「As part of its initiatives in new businesses, on 20 April of the current year the Company resolved to, and did, subscribe jointly with its capital and business alliance partner 株式会社免疫生物研究所 for a third-party allotment of new shares conducted by that company, with a payment date of 11 May, in order to promote the practical application as an antibody drug of the anti-HIV antibody owned by ㈱CURED (Yokohama; research and development of antibody drugs).」

「The Company will focus on M&A, including capital alliances and business acquisitions, in new businesses expected to generate synergies with its existing businesses.」