Sale of the Manufacturing Equipment Business and Use of Proceeds in the Measurement and Control Business

「In the manufacturing equipment business, because we sold 大崎エンジニアリング株式会社, formerly a consolidated subsidiary, on 30 September 2022, its results through the cumulative second-quarter consolidated period were included in the consolidated results. Revenue increased 39.2% year on year to ¥761 million, and operating income was ¥9 million, compared with a loss of ¥229 million in the same period of the previous year.」

「The market for manufacturing equipment is on an expansionary trend, partly due to increased semiconductor production and vehicle electrification. Going forward, strengthening business operations and continued investment will be extremely important to expand this business. Although Osaki Engineering had limited synergies within our Group, we highly valued the technical capabilities and product strengths it had accumulated and determined that operating the business under 萩原電気ホールディングス株式会社, where those strengths could be used to their fullest, would be best for Osaki Engineering's sustainable growth. We therefore sold these shares. The funds obtained from this share transfer will be used effectively to support growth in the measurement and control business, the Group's core business.」