Rebuilding the Business Base through Organic and Inorganic Growth

「Brain, Integ and 富士電工 joined the consolidated group through M&A, driving results higher.」

「During the current consolidated fiscal year, we expanded into the music content, video editing, live entertainment, promotion, and system and software-related fields, including by newly including 株式会社ブレーン, ダイキサウンド株式会社, 株式会社ブレイン and its subsidiary 株式会社インテグ within the scope of consolidation.」

「Through the acquisition of ブレーン and ダイキサウンド, we expect further growth in the music content services, video editing, and live entertainment businesses operated by these companies by leveraging the Group's network and management resources. We also expect that creating synergies through collaboration with Group companies will expand the customer base, diversify the services we can propose to customers, expand the Group overall, and improve its medium- to long-term growth prospects, thereby contributing to enhanced corporate value.」

「After considering the Group's medium- to long-term growth strategy, we concluded that allocating the funds obtained from the transfer of shares in 株式会社クレイトソリューションズ to capital expenditures, M&A and global expansion in businesses expected to offer higher growth for the Group would contribute to maximising shareholder value.」

「Because the results of the 4 companies made consolidated subsidiaries through M&A from the previous consolidated fiscal year through the current consolidated fiscal year, namely 株式会社プリンストン, 株式会社アイティ・クラフト, 株式会社パイオニア・ソフト and 株式会社エクスプローラ, were incorporated into the consolidated results, revenue and profit increased substantially overall.」

「In December of last year, we acquired all shares of 株式会社エクスプローラ from 株式会社ＰＡＬＴＥＫ and made it a consolidated subsidiary. Following the subsequent transfer of some shares, the Company's voting-rights ownership ratio was 99.62%.」

「As a growth strategy that we have pursued to date and will continue to pursue, we formulated the Digital Consortium Initiative, centered on forming and expanding a consortium through collaboration and M&A with other companies in the digital field, creating synergies and enhancing corporate value.」

「株式会社アイティ・クラフト, which was an unconsolidated subsidiary in the previous consolidated fiscal year, was included within the scope of consolidation from the first quarter consolidated accounting period because its importance had increased. In addition, during the first quarter consolidated accounting period, we obtained a majority of the total voting rights in 株式会社パイオニア・ソフト by converting preferred shares held by the Company into common shares, and consequently included the company within the scope of consolidation. Because the difference from the quarterly consolidated balance-sheet date did not exceed 3 months, only its balance sheet was consolidated. As a result, as of 30 June 2021, the Group consisted of the Company and 11 subsidiaries.」

「The Group positions expansion through M&A as one of the key pillars of its growth strategy, and during the current consolidated fiscal year succeeded in adding the following 3 companies to the Group.」

「株式会社プリンストン has been included within the scope of consolidation since the second quarter consolidated accounting period following the acquisition of its shares. The deemed acquisition date was 31 August 2020, and because the difference from the quarterly consolidated balance-sheet date did not exceed 3 months, only its balance sheet had been consolidated. From the third quarter consolidated accounting period, its income statement was also included within the scope of consolidation.」

「As a result of acquiring shares in 株式会社プリンストン during the cumulative second quarter of the current consolidated fiscal year, we included it within the scope of consolidation. The deemed acquisition date was 31 August 2020, and because the difference from the quarterly consolidated balance-sheet date did not exceed 3 months, only its balance sheet was consolidated for the cumulative second quarter. As a result, as of 30 September 2020, the Group consisted of the Company and 9 subsidiaries.」

「As the importance of ジー・ワーカー株式会社 increased, we made it, formerly an unconsolidated subsidiary, a consolidated subsidiary. As a result, as of 30 June 2020, the Group consisted of the Company and 8 subsidiaries.」

「However, as the capital and business alliance with 日本サインホールディングス株式会社 failed to generate the expected synergies or business progress, we concluded that concentrating management resources on the touch-panel and digital signage businesses of our Group companies would contribute more to enhancing corporate value than pursuing joint business development while supporting the management of 日本サインホールディングス株式会社. We therefore decided to transfer the shares and other interests in 日本サインホールディングス株式会社 and terminate the memorandum of understanding concerning the capital and business alliance.」

「Against this backdrop, the Group advanced initiatives aimed at further future growth, including establishing a subsidiary related to the digital signage business and entering into a basic agreement concerning a business alliance with 株式会社AKIBAホールディングス.」

「On 10 May of the current year, we acquired newly issued shares of 日本サインホールディングス株式会社 through a third-party allotment and made the company an equity-method affiliate. We are supporting the company while pursuing synergies with our display solutions-related business, and recorded ¥10 million in equity in earnings of the company.」

「Against this backdrop, in May 2017 the Group entered into a business alliance agreement with ITD Lab株式会社 and entered the intelligent stereo camera business. In April 2018, we formed a capital and business alliance with 日本サインホールディングス株式会社 relating to the signage and advertising businesses and made the company an equity-method affiliate. We will continue to actively pursue the launch of new businesses and M&A while working to expand our existing businesses.」

「Against this backdrop, in December 2016 the Group established ミナト・フィナンシャル・パートナーズ株式会社, which provides financial consulting services, and in March 2017 made 日本ジョイントソリューションズ株式会社, which develops websites and business systems, a subsidiary. We will continue to actively pursue M&A and the launch of new businesses while working to expand our existing businesses.」

「Against this backdrop, on 5 April 2016 the Group made サンマックス・テクノロジーズ株式会社 a subsidiary, brought its memory-module-related business into the Group, and continued expanding its business scale. As a result, consolidated revenue for the cumulative third quarter of the current fiscal year was ¥5,503 million, an increase of ¥3,927 million, or 249.2%, from the same period of the previous year.」

「Against this backdrop, on 5 April 2016 the Group made サンマックス・テクノロジーズ株式会社 a subsidiary, brought its memory-module-related business into the Group, and continued expanding its business scale.」

「Against this backdrop, on 5 April 2016 the Group made サンマックス・テクノロジーズ株式会社 a subsidiary through a special-purpose company wholly funded by the Company, bringing the memory-module-related business into the Group, while advancing sales of the new all-in-one handler in the device-related business.」

「As part of our efforts to achieve profitability, an urgent issue for the Group, we have concluded that it is essential to rebuild our business base by achieving organic growth while actively pursuing external growth opportunities through collaboration with outside companies and capital and business alliances,」