Business expansion from capital investment in specialty gas facilities through operations and maintenance

「In the initial division, which develops and manufactures specialty gas supply equipment and designs and installs supply piping, both revenue and segment profit increased as capital investment at major customers’ semiconductor plants expanded and continued.」

「The initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), performed strongly as capital investment at major customers’ semiconductor plants continued and the cost ratio improved from the previous interim period. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in facility management services and semiconductor manufacturing equipment maintenance, as operations at a new semiconductor plant began in FY2024 and high production levels continued at major customers’ semiconductor plants. Revenue was ¥24,811 million, up 12.4% year on year, and segment profit was ¥6,598 million, up 34.2%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), remained weak due to the slowdown in capital investment at major customers’ semiconductor plants and other factors. Meanwhile, the operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), performed strongly, mainly in specialty gas sales and management services and semiconductor manufacturing equipment maintenance, as utilization rates at major customers’ NAND flash memory plants improved. Revenue was ¥22,066 million, up 0.1% year on year, and segment profit was ¥4,916 million, up 34.0%.」

「In the initial division, which develops and manufactures specialty gas supply equipment and designs and installs supply piping, revenue remained firm compared with the previous consolidated fiscal year because investment at logic semiconductor plants continued, despite the impact of the slowdown in investment at NAND flash memory plants. However, segment profit declined due to deterioration in the cost ratio caused by soaring material prices and other factors. In the operations division, which provides specialty gas sales and management services, technical services and other services, revenue increased from the previous consolidated fiscal year due to the expansion of the Group’s strength, TFM, and the acquisition of shares in GBS (SINGAPORE) PTE. LTD. on 4 August 2023, making it a consolidated subsidiary. However, segment profit declined due to production cuts at NAND flash memory plants.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), saw revenue increase year on year because investment at logic plants continued, despite the continued slowdown in capital investment at NAND flash memory plants since the second half of the third quarter of the fiscal year ended March 2023. However, segment profit declined from the previous year’s quarter due to deterioration in the cost ratio caused by soaring material prices and other factors. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), saw both revenue and segment profit decline year on year due to production cuts at major customers’ NAND flash memory plants. Revenue was ¥34,955 million, up 1.7% year on year, and segment profit was ¥6,305 million, down 37.9%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), saw both revenue and segment profit decline year on year because the slowdown in capital investment at NAND flash memory plants since the second half of the third quarter of the fiscal year ended March 2023 continued, despite continued investment at logic plants. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), also saw both revenue and segment profit decline year on year due to production cuts at major customers’ NAND flash memory plants. Revenue was ¥22,045 million, down 4.3% year on year, and segment profit was ¥3,668 million, down 45.6%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), saw revenue increase year on year because investment at logic plants continued, despite the continued slowdown in capital investment at NAND flash memory plants since the second half of the third quarter of the fiscal year ended March 2023. However, segment profit declined due to soaring material costs and other factors. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), saw both revenue and segment profit decline due to production cuts at major customers’ NAND flash memory plants. As a result, revenue was ¥9,993 million, down 5.2% year on year, and segment profit was ¥1,633 million, down 40.2%.」

「Against a backdrop of expansion at customers’ semiconductor plants and steady production activity through the third quarter, sales of specialty gases and the manufacture and sale of parts for manufacturing equipment maintenance increased. The operations division, which provides specialty gas sales and management services, a stable source of earnings, and technical services, remained firm as the Group expanded its strength, TFM.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), performed strongly. Although some new capital investment at major customers’ semiconductor plants was pushed back, capital investment continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), was affected by partial production cuts at major customers’ semiconductor plants but remained firm, mainly in specialty gas sales and management services and semiconductor manufacturing equipment maintenance. Revenue was ¥34,360 million, up 30.6% year on year, and segment profit was ¥10,152 million, up 31.5%.」

「The initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), remained strong. Although some new capital investment at major customers’ semiconductor plants was pushed back beyond expectations, capital investment continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in specialty gas sales and management services and semiconductor manufacturing equipment maintenance, as production activity at semiconductor plants expanded. Revenue was ¥23,035 million, up 31.1% year on year, and segment profit was ¥6,744 million, up 33.0%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), remained broadly firm. Although some new capital investment at major customers’ semiconductor plants was pushed back beyond expectations, capital investment continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in specialty gas sales and management services and semiconductor manufacturing equipment maintenance, as production activity at semiconductor plants expanded. Revenue was ¥10,543 million, up 26.4% year on year, and segment profit was ¥2,730 million, up 17.4%.」

「Although some major customers’ semiconductor plants temporarily suspended operations, the operations division, which provides specialty gas sales and management services, technical services and other services, remained strong as contracts for ultrapure water plant operation and management and maintenance projects increased against a backdrop of expanded and steady production activity at customers’ semiconductor plants, and TFM was expanded, a stable source of earnings for the Group.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected by a decline in initial projects associated with new capital investment at DRAM plants compared with the previous year’s quarter, although capital investment at NAND flash memory plants continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in specialty gas sales and management services and semiconductor manufacturing equipment maintenance, as overseas spot projects increased and production activity at semiconductor plants expanded. Revenue was ¥26,306 million, up 9.3% year on year, and segment profit was ¥7,717 million, up 14.2%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected by a decline in initial projects associated with new capital investment at DRAM plants compared with the previous year’s quarter, although capital investment at NAND flash memory plants continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in specialty gas management services and semiconductor manufacturing equipment maintenance, as overseas spot projects increased and production activity at semiconductor plants expanded. Revenue was ¥17,569 million, up 12.6% year on year, and segment profit was ¥5,069 million, up 15.7%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected by a decline in initial projects associated with new capital investment at DRAM plants compared with the previous year’s quarter, although capital investment at NAND flash memory plants continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in specialty gas sales and semiconductor manufacturing equipment maintenance, as overseas spot projects increased and production activity at semiconductor plants expanded. Revenue was ¥8,343 million, up 4.6% year on year, and segment profit was ¥2,326 million, up 3.6%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), remained firm at major customers’ semiconductor plants. Although there were some signs of a slowdown in new capital investment, capital investment continued. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), also remained firm, mainly in semiconductor manufacturing equipment maintenance and contracted operation, management and maintenance of ultrapure water plants, as production activity at semiconductor plants expanded. Revenue was ¥24,065 million, up 5.9% year on year, and segment profit was ¥6,760 million, up 25.8%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), saw some signs of a slowdown in new capital investment at major customers’ semiconductor plants. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in semiconductor manufacturing equipment maintenance, as production activity at semiconductor plants expanded. Revenue was ¥15,598 million, down 1.0% year on year, and segment profit was ¥4,383 million, up 26.7%.」

「Against this backdrop, in the Group’s electronics-related business, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), remained firm as new capital investment continued at major customers’ semiconductor plants. The operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), also remained firm, mainly in semiconductor manufacturing equipment maintenance, as production activity at semiconductor plants expanded. Revenue was ¥7,973 million, up 5.0% year on year, and segment profit was ¥2,246 million, up 65.3%.」

「Although the business was affected by the temporary suspension of production at some small and medium-sized display plants, the number of semiconductor manufacturing equipment maintenance projects and contracted operation, management and maintenance projects for ultrapure water plants increased against a backdrop of expansion and steady production activity at customers’ semiconductor plants. The operations division, which provides specialty gas sales and management services, a stable source of earnings, and technical services for other peripheral businesses, remained firm as the Group strengthened its core strength, total facility management (TFM). In the initial division, which develops and manufactures specialty gas supply equipment and designs and installs supply piping, new capital investment at major customers’ semiconductor plants continued but was delayed beyond expectations. Consequently, revenue declined from the previous consolidated fiscal year, but the concentration of supply-piping design and installation projects in the fourth quarter improved work efficiency and reduced the cost ratio, resulting in firm profit.」

「Against this backdrop, in the Group’s electronics-related business, the operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in semiconductor manufacturing equipment maintenance and contracted operation, management and maintenance of ultrapure water plants, as production activity at semiconductor plants expanded. However, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected at major customers’ semiconductor plants by the continued slowdown since the second half of the fiscal year ended March 2019 in new capital investment for NAND flash memory, and by delays in supply-piping design and installation associated with construction work for DRAM applications, despite continued new capital investment. Revenue was ¥22,735 million, down 10.5% year on year, and segment profit was ¥5,375 million, down 22.9%.」

「Against this backdrop, in the Group’s electronics-related business, the operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in semiconductor manufacturing equipment maintenance and contracted operation, management and maintenance of ultrapure water plants, as production activity at semiconductor plants expanded. However, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected at major customers’ semiconductor plants by the continued slowdown since the second half of the fiscal year ended March 2019 in new capital investment for NAND flash memory plants, although capital investment for DRAM continued. Revenue was ¥15,755 million, down 4.3% year on year, and segment profit was ¥3,459 million, down 24.8%.」

「Against this backdrop, in the Group’s electronics-related business, the operations division, which generates business from production activities (specialty gas sales and management, technical services, etc.), remained firm, mainly in semiconductor manufacturing equipment maintenance and contracted operation, management and maintenance of ultrapure water plants, as production activity at semiconductor plants expanded. However, the initial division, which generates business from customers’ capital investment (manufacture of specialty gas supply equipment and design and installation of supply piping), was affected by the continued slowdown in new capital investment at the NAND flash memory plants of major customers since the second half of the fiscal year ended March 2019, as well as higher costs for supply-piping installation associated with new plants. Revenue was ¥7,593 million, down 5.8% year on year, and segment profit was ¥1,359 million, down 41.0%.」

「Against a backdrop of smooth production at major customer plants, the semiconductor manufacturing equipment maintenance business expanded its scope, and our group strengthened its Total Facility Management (TFM) services for semiconductor and small- and medium-sized display plants. As a result, the Operations segment, which provides specialty gas sales and management services, a stable earnings base, as well as technical services for related businesses, performed well.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, performed well as major semiconductor customers continued to invest in facilities to increase production. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed smoothly as production at semiconductor plants progressed steadily, particularly in specialty gas sales and semiconductor manufacturing equipment maintenance. Net sales were ¥25,392 million, up 38.9% year on year, and segment profit was ¥6,967 million, up 54.3%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, performed well as major semiconductor customers continued to invest in facilities to increase production. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed smoothly as production at semiconductor plants expanded, particularly in specialty gas sales and semiconductor manufacturing equipment maintenance. Net sales were ¥16,462 million, up 45.0% year on year, and segment profit was ¥4,600 million, up 57.5%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, performed well as major semiconductor customers continued to invest in facilities to increase production. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed smoothly as production at semiconductor plants expanded, particularly in specialty gas sales and semiconductor manufacturing equipment maintenance. Net sales were ¥8,062 million, up 45.4% year on year, and segment profit was ¥2,303 million, up 52.3%.」

「Against a backdrop of smooth production at major customer plants, the semiconductor manufacturing equipment maintenance business expanded its scope, and our group strengthened its Total Facility Management (TFM) services for semiconductor and small- and medium-sized display plants. As a result, the Operations segment, which provides specialty gas sales and management services, a stable earnings base, as well as technical services for related businesses, performed well.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and mainly covers the design and installation of supply piping, performed smoothly as major semiconductor customers continued to invest in facilities to significantly increase production of advanced, high-capacity memory. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed smoothly as production based on strong demand for NAND flash memory continued, particularly in semiconductor manufacturing equipment maintenance and domestic and overseas specialty gas sales. Net sales were ¥18,280 million, up 20.2% year on year, and segment profit was ¥4,516 million, up 21.6%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, remained generally firm as major semiconductor customers continued to make proactive capital investments. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, performed smoothly as production based on strong demand for NAND flash memory continued, particularly in domestic and overseas specialty gas sales, semiconductor manufacturing equipment maintenance and the on-site business. Net sales were ¥11,354 million, up 9.7% year on year, and segment profit was ¥2,920 million, up 10.8%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, remained firm as major semiconductor customers continued to make proactive capital investments. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also progressed smoothly as production at semiconductor plants remained strong, particularly in domestic and overseas specialty gas sales, semiconductor manufacturing equipment maintenance and the on-site business. Net sales were ¥5,546 million, up 10.1% year on year, and segment profit was ¥1,512 million, up 31.6%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, remained firm as capital investment at the major customers' semiconductor and small- and medium-sized display plants continued. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also remained firm as production at these major customers' plants progressed smoothly, particularly in domestic and overseas specialty gas sales, semiconductor manufacturing equipment maintenance and the on-site business. Net sales were ¥15,207 million, up 23.1% year on year, and segment profit was ¥3,714 million, up 15.5%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, performed well as capital investment at the major customers' semiconductor and small- and medium-sized display plants continued. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed well as production at these major customers' plants progressed smoothly, particularly in domestic and overseas specialty gas sales, the on-site business and semiconductor manufacturing equipment maintenance. Net sales were ¥10,353 million, up 28.0% year on year, and segment profit was ¥2,635 million, up 26.9%.」

「Against this backdrop, in our group's electronics-related business, the Initial segment, which arises from customers' capital investment and covers the manufacture of specialty gas supply equipment and the design and installation of supply piping, performed well as capital investment at semiconductor plants continued. The Operations segment, which arises from production activities and covers specialty gas sales and management services, technical services and other activities, also performed well, mainly in the on-site business, domestic and overseas specialty gas sales, and semiconductor manufacturing equipment maintenance. Net sales were ¥5,038 million, up 28.8% year on year, and segment profit was ¥1,149 million, up 12.5%.」