Expanding the Electronic Equipment Business Through the Acquisition of 東電子工業株式会社

「In terms of earnings, although net sales increased, delayed expansion of production capacity in the printed wiring board business at the subsidiary limited the improvement in segment profit to ¥93 million, resulting in a loss of ¥441 million.」

「June 2024: 東電子工業株式会社 will make 株式会社モリヤマ茨城 a wholly owned subsidiary.」

「Net sales in the business declined 10.0% year on year to ¥2,404 million. Although sales of specified low-power wireless equipment and commercial-use wireless equipment remained solid, net sales declined because orders for amusement applications at 東電子工業㈱, the subsidiary engaged in printed wiring board manufacturing, reached a pause. At 東電子工業㈱, investment to expand production capacity was completed, and prototype orders increased as sales activities were strengthened using the facilities, advancing efforts to increase net sales going forward.」

「As investment to expand production capacity at 東電子工業㈱ has been completed, the company will use the facilities going forward and work to increase orders by strengthening its sales activities.」

「At 東電子工業㈱, which became a subsidiary in the previous consolidated fiscal year, orders for printed wiring boards for semiconductor manufacturing equipment power supplies and amusement applications increased, contributing to higher net sales in the electronic equipment-related business.」

「Net sales in the business increased 56.6% year on year to ¥2,725 million. In addition to sales of 東電子工業㈱, which became a subsidiary in the previous consolidated fiscal year, contributing from the beginning of the period, the company was able to keep the impact on the supply chain to a minimum despite tight supply and demand for electronic components, particularly semiconductors, and sales of specified low-power wireless equipment and commercial-use wireless equipment remained solid.」

「Net sales in the business increased 49.5% year on year to ¥1,321 million. Sales of 東電子工業㈱, which became a subsidiary in the previous fiscal year, contributed from the beginning of the period. In addition, although supply and demand for electronic components, particularly semiconductors, remained tight, the company was able to keep the impact on the supply chain to a minimum, and sales of specified low-power wireless equipment and commercial-use wireless equipment remained solid.」

「The acquisition of all shares of 東電子工業株式会社 and its inclusion in the scope of consolidation also contributed. Net sales in the electronic equipment-related business increased 16.1% from the previous fiscal year to ¥4,355 million. Segment profit increased 185.7% from the previous fiscal year to ¥153 million.」

「In connection with including 東電子工業株式会社 in the scope of consolidation using 31 July 2021 as the deemed acquisition date, the quarterly consolidated income statement for the cumulative third quarter includes the results of 東電子工業株式会社 for the 3 months from 1 August 2021 to 31 October 2021, and the reported segment is the electronic equipment-related business. Net sales in the electronic equipment-related business increased 9.6% year on year to ¥3,021 million. Segment profit increased 401.7% year on year to ¥68 million.」

「As the Company acquired all shares of 東電子工業株式会社 on 18 August 2021 and made it a subsidiary, the company has been included in the scope of consolidation from the second quarter of the current fiscal year. The company manufactures and sells printed circuit boards and has earned a strong reputation among customers over many years as a printed circuit board manufacturer. The Group expects to generate synergies and further enhance corporate value by using its management resources and business foundation in the electronic segment. Post-acquisition voting rights: 100%. Acquisition cost: ¥215 million. Goodwill recognized: ¥121.499 million.」