Sustained Growth and Enhanced Corporate Value in the Automotive Parts Business Through the Subsidiarization of 日本ラインツ㈱

「During the consolidated fiscal year, the carrying amount of the asset group relating to ㈱ＡＰＪ's business assets was reduced to the recoverable amount because the investment was no longer expected to be recovered due to declining profitability. The resulting reduction of ¥679 million was recorded as an impairment loss under extraordinary losses.」

「For automotive parts, overseas demand, particularly in North America and Europe, remained firm, and sales contributed by ㈱ＡＰＪ, which became a consolidated subsidiary at the end of December 2016, resulted in net sales increasing 20.9% year on year to ¥32,855 million.」

「For automotive parts, overseas demand, particularly in North America, remained firm, and sales contributed by ㈱ＡＰＪ, which became a consolidated subsidiary at the end of December 2016, resulted in net sales increasing 19.4% year on year to ¥21,440 million.」

「For automotive parts, overseas demand, particularly in North America, remained firm, and sales contributed by ㈱ＡＰＪ, which became a consolidated subsidiary at the end of December 2016, resulted in net sales increasing 23.0% year on year to ¥10,960 million. The order backlog for automotive parts also increased 39.2% from the end of the previous corresponding quarter to ¥1,508 million. This was due to ㈱ＡＰＪ becoming a consolidated subsidiary at the end of December 2016.」

「Date of business combination: 30 November 2016 (share acquisition date) Voting rights acquired: 100% Consideration for acquisition: ¥2,680 million in cash」

「Under its medium-term management plan, the Group has set the management objectives of “pursuing further business growth and profitability” and “promoting management focused on improvement and efficiency,” and is working to build “a company with sustainable competitiveness.” 日本ラインツ㈱, which is being acquired as a subsidiary, manufactures automotive parts and has strong technical capabilities. In addition to sealing materials for engines, including cylinder-head gaskets for high-load engines and large-displacement diesel engines, it develops, manufactures and sells heat-resistant and heat-shielding components, exhaust-system components and other automotive parts. Its business areas are closely related to ours, and we expect significant synergies by combining and making maximum use of the proprietary technologies and networks held by both companies, enabling us to meet customer needs. Accordingly, we determined that the acquisition would contribute to the sustained growth of the Group and our automotive-parts business and enhance corporate value, and decided to acquire the shares.」