Creating new businesses beyond the scope of existing operations

「Energy Solution事業では、生成AIの普及に伴いAIデータセンター向けを中心に需要が急拡大しているハイブリッドスーパーキャパシタ（HSC）の供給能力拡大に取り組んでいます。」

「In the Energy Solution business, we are working to expand the supply capacity of hybrid supercapacitors (HSCs), for which demand is rapidly expanding, particularly among AI data centers, as generative AI becomes more widely adopted. Construction of the new plant in Minami-Alps, Yamanashi, has been completed and the plant has been handed over, and we are preparing to commence operations. We are also working to expand production capacity at the existing Hokuto Plant.」

「生成AIの普及に伴いAIデータセンター向けを中心に需要が急拡大しているハイブリッドスーパーキャパシタ（HSC）の供給体制の強化を進めています。北米においても、昨年度に開設したオースティンR&Dセンターを拠点として事業展開を加速しています。」

「In the Energy Solution business, we completed development of a high-output, high-durability hybrid supercapacitor for AI data centers and successfully launched it as a peak-shaving solution.」

「In the new business areas, we are building production capacity for hybrid supercapacitors (HSCs), for which demand from AI data centers is rapidly expanding, in the Energy Solution business. In July, we changed the Energy Solution business to a function-based organizational management structure to further accelerate business growth. In the e-Mobility business, following Kenya, we are pursuing initiatives to promote the adoption of two-wheeler EVs in Ethiopia. We also began collaborating with startups in Bangladesh, accelerating business development in emerging markets.」

「In the Energy Solution business, demand for hybrid supercapacitors (HSCs) for large data centers serving generative AI is rising. We are currently rapidly developing our production system to meet strong demand. In addition to expanding the production capacity of existing plants, we are constructing a new plant in Minami-Alps, Yamanashi Prefecture, with annual production capacity of 5 million cells.」

「With respect to new businesses, we have positioned the next three years as the “1→10 phase,” in which the seeds cultivated to date will be turned into business expansion, and are pursuing both the realization of our growth strategy and the development of an operating foundation. In the Energy Solution business, we decided to construct a new plant in Minami-Alps, Yamanashi Prefecture, to establish production capacity capable of meeting strong demand for hybrid supercapacitors (HSCs), energy storage devices, from data centers for generative AI. In the e-Mobility business, in addition to beginning production of e-Axles for two-wheeler EVs in India, we were selected as an indirect grant recipient for the demonstration project “Feasibility Study Demonstration Project for Digital Services Using Electric Motorcycles and Other Vehicles to Help Reduce Environmental Impact in the Republic of Kenya,” under the Ministry of Economy, Trade and Industry's FY2023 supplementary budget subsidy program for future-oriented co-creation projects in the Global South, and began local operations. In the Smart Industry business, we are making progress in providing new solutions for factory automation, including developing the picking-specification S-CART (automated guided vehicle) to improve material-handling efficiency.」

「In the new business areas, we are accelerating the 1→10 phase—the realization and expansion of businesses—and pursuing initiatives to turn the “seeds” cultivated to date into “results,” namely business expansion.」

「In the new business areas, we are pursuing business development aimed at solving social issues in three fields: Industry, Energy Solutions and Well-being. In the Well-being field, we are engaged in a plant biotechnology business that harnesses the power of plants grown in the fertile soil of the eastern Mikawa region of Aichi Prefecture, where our head office is located. In November 2023, we developed and began selling 「鋼の肝臓KReTA」, the first product in our plant biotechnology business.」

「In addition, in the area of automated material-handling solutions, we acquired the AMR (automated mobile robot) business from ニデックドライブテクノロジー株式会社 and have begun creating new synergies.」

「Effective 30 June 2023, we acquired the automated guided vehicle business from ニデックドライブテクノロジー㈱ through a trust beneficiary interest purchase and sale, with the aim of expanding and enhancing our Group's automated material-handling equipment business. The acquisition cost of the acquired business was ¥1,148 million, and the consideration was paid entirely in cash. Goodwill arising from the transaction amounted to ¥928 million.」

「In the Industry, Energy Solutions and Well-being business areas, we are pursuing synergy creation and business development through open innovation with startups and other companies worldwide, including in North America and Israel, with the aim of creating an impact on society.」

「In October 2022, we invested in Booma Innovative Transport Solutions Private Limited, an Indian EV startup, and began a strategic collaboration to promote the adoption of e-mobility in India.」

「In developing new businesses, we are pursuing synergy creation and business development through open innovation with startups and other companies worldwide, including in North America and Israel, across the Industry, Mobility, Energy Solutions and Well-being business areas, with the aim of creating an impact on society.」

「In the new business areas, we aim to create value that contributes to solving social issues in four key fields: Mobility, Energy, Industry and Well-being.」

「In October of the current fiscal year, we joined the 東三河スタートアップ推進協議会, which comprises companies, universities and government agencies involved in various startup support activities in the eastern Mikawa region where we are located. We are also promoting open innovation through collaboration with startups around the world, including in North America and Africa.」

「REE Automotive社, our capital alliance partner and strategic partner, was listed on the Nasdaq Stock Market in the United States on 23 July 2021 (local time). This is expected to affect the consolidated financial statements from the second quarter of the current fiscal year onward. However, it is currently difficult to reasonably estimate the amount of the impact because we have not yet obtained some of the calculation factors required to determine the fair value of the shares, including the terms of the share split at the time of listing.」

「Effective 1 November 2020, we changed the corporate name of our consolidated subsidiary JMエナジー株式会社 to 武蔵エナジーソリューションズ株式会社, and are accelerating the development of our energy solutions business to build a more resilient corporate structure and achieve a sustainable society. We are also placing increasing emphasis on deepening collaboration with overseas startups and initiatives to create new businesses.」

「In addition to our existing businesses, we are placing increasing emphasis on developing new businesses, including AI-based solution services for manufacturers, an energy solutions business aimed at improving the efficiency of energy storage and supply from renewable energy, and a healthcare business, including cosmetics containing highly functional ingredients extracted from plants in eastern Mikawa.」

「On 27 January 2020, we entered into a share transfer agreement with JSR株式会社 to acquire 80% of the issued shares of JMエナジー株式会社 and make it a subsidiary, and acquired all of its shares on 1 April 2020.」

「On 27 January 2020, we entered into a share transfer agreement with JSR株式会社 to acquire 80% of the issued shares of JMエナジー株式会社 and make it a subsidiary.」

「In the area of new businesses, we newly established Musashi AI株式会社 to help solve social issues through business activities that leverage technology. We are also investing in and pursuing joint development with startups possessing proprietary technologies as a foothold for future business growth.」

「During the period, we continued to strengthen existing businesses, develop advanced technologies and explore new businesses.」

「We will also actively pursue research into improving production efficiency through advanced technologies such as IoT and AI, as well as the creation of new businesses beyond the scope of our existing operations.」