Relocation following construction of MPIB's new headquarters and plant

「Under our future strategy for the ASEAN region, we will transfer an 80.2% stake in TLM to SCIENTEX, headquartered in Malaysia, to adapt further to the rapidly changing external environment and local needs, and shift from local production to local procurement.」

「Taisei Lamick Malaysia Sdn. Bhd., a consolidated subsidiary, applies International Financial Reporting Standards (IFRS). Because impairment indicators were identified for its operating assets as a result of recording an operating loss, the company assessed their future recoverability and reduced the carrying amount of the cash-generating unit containing those operating assets to its recoverable amount, recording an impairment loss of ¥667.182 million as an extraordinary loss.」

「Although full-scale operations commenced during the fiscal year, the slower-than-expected recovery in orders was also a factor contributing to the decline in profit.」

「The site owned by TLM was acquired compulsorily under the Malaysian government's Mass Rapid Transit project, and construction of the new plant undertaken in connection with the relocation was completed in March 2018. Full-scale operations commenced during the fiscal year. Although there was some delay versus the plan, profitability and productivity are being improved.」

「The site owned by TLM was acquired compulsorily under the Malaysian government's Mass Rapid Transit project. Construction of the new plant, which had been undertaken in connection with the relocation, was completed, and full-scale operations commenced.」

「The site owned by TLM was acquired compulsorily under the Malaysian government's Mass Rapid Transit project. Construction of the new plant, which had been undertaken in connection with the relocation, was completed, and the company recorded ¥637 million in expropriation compensation for the relocation costs of plant equipment and other assets as extraordinary income, and ¥232 million in relocation costs as an extraordinary loss.」

「The site owned by TLM was acquired compulsorily under the Malaysian government's Mass Rapid Transit project. In connection with the relocation and as construction of the new plant proceeded, the company recorded ¥340 million in expropriation compensation for the relocation costs of plant equipment and other assets as extraordinary income, and ¥108 million in relocation costs as an extraordinary loss.」

「In overseas markets, sales increased on a net basis following the acquisition in September of Taisei Lamick Malaysia SDN.BHD., a Malaysian manufacturer and seller of flexible packaging materials. As the site owned by TLM had been designated for compulsory acquisition under the Malaysian government's Mass Rapid Transit project, the company recorded ¥184 million in expropriation compensation for the relocation costs of plant equipment and other assets as extraordinary income, and ¥49 million in plant relocation costs as an extraordinary loss.」

「At a meeting of the Board of Directors held on 13 February 2017, the company decided to make the following capital investment at its consolidated subsidiary Malaysia Packaging Industry Berhad (hereinafter, “MPIB”). The investment is intended to construct a new headquarters and plant because the site where MPIB is located has been designated for compulsory acquisition under the Malaysian government's Mass Rapid Transit project. Total planned investment: approximately ¥3 billion. Scheduled for completion in 2017.」