Enhancing Corporate Value by Deepening Strengths and Pursuing New Investment and M&A

「当社の連結子会社である兼松エレクトロニクスは、株式会社 IDAJ およびその子会社等の発行済株式の全てを取得いたしました。これにより、株式会社 IDAJ およびその子会社は当社の連結子会社となりました。」

「Kanematsu will make IDAJ (Yokohama), a seller of design and analysis software, a subsidiary through its systems development subsidiary Kanematsu Electronics (Chuo-ku, Tokyo), thereby establishing a structure capable of providing end-to-end support from design through manufacturing.」

「Through the Japan Cybersecurity Fund 1 (NCSF), established to promote technological innovation and strengthen the industrial base in Japan's cybersecurity sector, we invested in 2 security-related companies. Through our Group company 兼松エレクトロニクス㈱, we also acquired shares in ルートリフ㈱, which employs many engineers with advanced expertise in the ICT sector, making it a subsidiary.」

「Net cash used in investing activities during the current interim consolidated accounting period was ¥5,934 million, reflecting business investments including acquisitions of property, plant and equipment and subsidiaries, compared with ¥6,472 million used in the same period of the previous year.」

「Net cash used in investing activities during the current interim consolidated accounting period was ¥6,472 million, reflecting business investments including acquisitions of property, plant and equipment and subsidiaries, compared with ¥1,818 million used in the same period of the previous year.」

「Net cash used in investing activities during the first nine months of the current consolidated fiscal year was ¥7,617 million, as new business investments and other factors outweighed income from the sale of property, plant and equipment and other assets, compared with ¥14,157 million used in the same period of the previous year.」

「Net cash used in investing activities during the first six months of the current consolidated fiscal year was ¥1,818 million, as new business investments and other factors outweighed income from the sale of property, plant and equipment and other assets, compared with ¥5,535 million used in the same period of the previous year.」

「Cash flows from acquisitions of subsidiaries (△ indicates an outflow) △ 447 Cash paid for business transfers △ 396」

「Investments primarily aimed at expanding scale included the acquisition of 日本アクセス by 兼松エレクトロニクス㈱ and the acquisition of a secondary mobile phone sales agency. Investments primarily aimed at acquiring added value included investments in a manufacturing equipment systems integrator and a Japanese-style yakiniku chain.」

「Net cash used in investing activities during the first nine months of the current consolidated fiscal year was ¥14,157 million, reflecting business investments including acquisitions of subsidiaries, compared with ¥10,341 million used in the same period of the previous year.」

「Net cash used in investing activities during the first six months of the current consolidated fiscal year was ¥5,535 million, reflecting business investments including acquisitions of subsidiaries, compared with ¥6,842 million used in the same period of the previous year.」

「Net cash used in investing activities during the first quarter of the current consolidated cumulative period was ¥2,746 million, reflecting business investments including acquisitions of subsidiaries, compared with ¥4,230 million used in the same period of the previous year.」

「Investments primarily aimed at expanding scale included the acquisition of a secondary mobile phone sales agency, the acquisition of an industrial materials trading company and the establishment of a second plant for the North American steel-pipe processing business. Investments primarily aimed at acquiring added value included an additional equity-method investment in a steel-sheet processing manufacturer and the acquisition of shares in connection with the IPO of an Indonesian diversified food manufacturer.」

「Net cash used in investing activities during the first nine months of the current consolidated fiscal year was ¥10,341 million, reflecting business investments including acquisitions of subsidiaries and additional investments in equity-method affiliates, compared with ¥5,017 million used in the same period of the previous year.」

「Net cash used in investing activities during the first six months of the current consolidated fiscal year was ¥6,842 million, reflecting business investments including acquisitions of subsidiaries and additional investments in equity-method affiliates, compared with ¥3,645 million used in the same period of the previous year.」

「Net cash used in investing activities during the first quarter of the current consolidated cumulative period was ¥4,230 million, reflecting business investments including acquisitions of subsidiaries and business transfers, compared with ¥1,815 million used in the same period of the previous year.」

「In business areas where we have strengths, we pursued two approaches, centered on expansion of scale and enhancement of added value, and made the following business investments during the fiscal year. • In the card-printer business, one of the core businesses of the Electronics & Devices segment, we made 株式会社ジー・プリンテック, which has printer design and development capabilities, a wholly owned subsidiary in order to address diverse customer needs and generate synergies. • In the Steel & Materials segment, we formed a capital alliance with a Korean steel-sheet processing manufacturer to expand synergies in the Group's steel business.」

「Name of acquired company: 株式会社ジー・プリンテック Business description of acquired company: Development, manufacture and sale of card printers and related equipment Acquisition date: 3 December 2018 Voting rights held immediately before the acquisition date: 40.0% Additional voting rights acquired on the acquisition date: 60.0% Voting rights held after the acquisition: 100.0%」

「In the aviation and space business, the next-generation flight inspection aircraft based on the highly reliable Citation 680A manufactured by US-based Textron, which we proposed, was adopted by the Acquisition, Technology & Logistics Agency, and we signed a sales contract for 3 aircraft. We also pursued initiatives to expand earnings, including entering into an exclusive distributorship agreement with US-based Vector, which provides launch services for rockets dedicated to small satellites and related services, to sell its products and services in Japan and 3 Asian countries, India, Thailand and South Korea.」

「In the space sector, amid growing demand for small-satellite launches, we agreed to a business partnership with US-based Vector through a strategic investment in the company, which provides launch services for small-satellite rockets and related services.」

「Legal form of the business combination: Acquisition of shares by 兼松テレコム・インベストメント株式会社, a wholly owned subsidiary of the Company (the acquired company was absorbed through a merger effective 1 April 2016 and renamed 株式会社ダイヤモンドテレコム) Voting rights acquired: 100.0% As a result of the acquisition of ダイヤモンドテレコム, the combined sales volume of the two companies is expected to rank among the industry's highest, significantly enhancing the Group's presence in the mobile phone retailer market.」

「We have positioned VISION-130 as "Kanematsu's Challenge," and intend to further enhance corporate value by deepening the business areas in which we have strengths and making new investments.」