Structural Transformation of the Electronic Devices Business
First written in FY2016. 8 of 20 entries say "Advanced", first in FY2018. Latest entry: FY2024-Q3.
2 other companies' latest entry also says "Achieved".
- FY2024-Q3AchievedAnnual report
「The share transfer was subsequently completed on 9 January 2024.」
The transfer of all shares of the 4 group companies engaged in the electronic devices business was completed on 9 January 2024, implementing the restructuring policy of moving the business outside the group after the spin-off. - FY2024-Q2ReframedAnnual report
「At a meeting of its Board of Directors held on 29 September 2023, the company resolved to transfer all issued shares of its consolidated subsidiaries 都築エンベデッドソリューションズ株式会社, 都築電産貿易(上海)有限公司, 都築電産香港有限公司 and TSUZUKI DENSAN SINGAPORE PTE.LTD. to 株式会社レスターホールディングス, and entered into a share transfer agreement on the same day. Scheduled share transfer execution date: 9 January 2024.」
The restructuring of the electronic devices business was redefined from continuing the business after the spin-off to a policy of transferring all shares of the 4 companies and moving the business outside the group. The transfer price was scheduled to be approximately ¥12,970 million, with the aim of concentrating management resources on information network solution services. - FY2024-Q1AdvancedAnnual report
「In the electronic devices business, the semiconductor shortage improved in most areas and customers' advance orders had run their course, while production by customers in the company's core markets of FA equipment, industrial equipment and automotive equipment progressed smoothly. Sales of electronic components, including semiconductors, and power semiconductors related to decarbonisation and energy efficiency remained solid.」
Following the spin-off, the electronic devices business reported sales of ¥7,683 million and operating income of ¥216 million, up 13.7% and 20.8%, respectively, year on year. Sales of products for FA equipment, industrial equipment and automotive equipment, as well as power semiconductors, contributed. - FY2023-Q3AdvancedAnnual report
「In the electronic devices business, as the global semiconductor shortage continued for an extended period, production activity normalised in some areas and the supply-demand balance improved, resulting in a decline in customers' advance orders that had continued from the previous fiscal year. Meanwhile, sales of semiconductors and electronic components for FA equipment and industrial markets, as well as power semiconductors for products related to decarbonisation and energy efficiency, remained strong.」
Following the spin-off, the electronic devices business reported sales of ¥22,091 million, up 8.5% year on year, and operating income of ¥740 million, up 63.2%, as semiconductors and electronic components for FA equipment and industrial markets and power semiconductors performed strongly. - FY2022-Q3AchievedAnnual report
「During the second quarter, 都築エンベデッドソリューションズ株式会社 was established and made a subsidiary, and was therefore included in the scope of consolidation.」
The restructuring of the electronic devices business was completed through its transfer to a newly established subsidiary and spin-off, effective 1 October 2021, and the subsidiary was included in the scope of consolidation. - FY2022-Q2AdvancedAnnual report
「At a meeting of its Board of Directors held on 14 May 2021, the company resolved that, with 1 October 2021 as the effective date, the electronic devices business would be transferred to a newly established subsidiary through a simplified absorption-type company split, hereinafter referred to as the Company Split, and entered into an absorption-type company split agreement on 8 July 2021.」
The restructuring of the electronic devices business progressed to specific procedures for spinning off the business, including establishing the transferee company and executing an absorption-type company split agreement, with 1 October 2021 as the effective date. - FY2022-Q1AdvancedAnnual report
「At a meeting of its Board of Directors held on 14 May 2021, the company resolved that, with 1 October 2021 as the scheduled effective date, the electronic devices business would be transferred to a newly established subsidiary through a simplified absorption-type company split, hereinafter referred to as the Company Split.」
The restructuring of the electronic devices business progressed to a specific organisational reorganisation involving a simplified absorption-type company split to be implemented on 1 October 2021, with the business transferred to a newly established subsidiary. The objectives were to accelerate management decision-making and clarify management responsibility. - FY2021Lower sales continued, while profits increasedAnnual report
「In the device business, orders increased on recovering demand in the FA equipment, automotive and other markets, but sales declined as component supplies remained tight in the market. On the earnings side, profits increased as the in-vehicle information systems business remained solid and expenses declined due to restrictions on sales activities associated with the spread of COVID-19. Accordingly, electronic devices reported sales of ¥22,155 million, down 4.8% year on year, and operating income of ¥242 million, up 48.2%.」
Electronic devices continued to report lower sales due to tight component supplies and other factors, while profits increased as the in-vehicle information systems business remained solid and expenses declined. - FY2021-Q3Lower sales continued, while profits increasedAnnual report
「On the earnings side, profits increased as the systems business remained solid and sales activity expenses declined amid restrictions on domestic and overseas business travel and other activities in response to COVID-19. Accordingly, electronic devices reported sales of ¥15,950 million, down 3.3% year on year, and operating income of ¥110 million, compared with operating income of ¥6 million in the same quarter of the previous year.」
Electronic devices continued to report lower sales, while operating income increased due to the solid performance of the systems business and lower sales activity expenses. - FY2021-Q2AdvancedAnnual report
「On the earnings side, profits increased as the systems business remained solid and expenses for sales activities declined due to restrictions on domestic and overseas business travel and other activities in response to COVID-19. Accordingly, electronic devices reported sales of ¥9,843 million, down 10.7% year on year, and operating income of ¥36 million, compared with an operating loss of ¥10 million in the same quarter of the previous year.」
Electronic devices continued to report lower sales, but returned to profitability, changing from an operating loss of ¥10 million in the same period of the previous year to operating income of ¥36 million, due to the solid performance of the systems business and lower sales activity expenses. - FY2021-Q1Lower sales continued, while losses narrowedAnnual report
「In the device business, sales remained sluggish due to weak demand in the FA equipment and automotive markets caused by COVID-19, as well as difficulty obtaining production materials and supply chain disruptions in logistics. On the earnings side, profits increased as a result of cost reductions and voluntary restrictions on domestic and overseas business travel and other activities to prevent COVID-19 infections and reduce the risk of their spread.」
Electronic devices continued to report lower sales due to weak demand, difficulty obtaining materials and supply chain disruptions, while the operating loss narrowed from ¥48 million in the same period of the previous year to ¥42 million due to cost reductions and restrictions on business travel. - FY2020WorsenedAnnual report
「In the semiconductor business, semiconductors for FA equipment and electronic components remained sluggish due to stagnant capital investment demand resulting from the US-China trade friction and the impact of COVID-19. LCD panels for in-vehicle information systems also remained sluggish as demand declined among vehicle models adopting them, resulting in sales well below the previous year's level.」
In the semiconductor business, the impact of COVID-19 was cited in addition to the US-China trade friction, and electronic device sales were ¥23,261 million, while operating income was ¥163 million, both below the previous year's levels. - FY2020-Q3WorsenedAnnual report
「In the semiconductor business, semiconductors for FA equipment and electronic components remained sluggish due to weak capital investment demand in the Chinese market. LCD panels for in-vehicle information systems also remained sluggish as demand declined among vehicle models adopting them, and semiconductor business sales and earnings were significantly below the previous year's results. Accordingly, electronic devices reported sales of ¥16,500 million, down 13.4% year on year, and operating income of ¥6 million, down 93.8% year on year.」
Weak capital investment demand in China and declining demand for LCD panels for in-vehicle information systems continued, resulting in lower sales for electronic devices and a 93.8% year-on-year decline in operating income. - FY2020-Q2WorsenedAnnual report
「In the semiconductor business, capital investment demand in the Chinese market continued to slow, and semiconductors for FA equipment and electronic components remained sluggish. LCD panels for in-vehicle information systems also declined significantly as the number of vehicle models adopting them fell due to model changes. As a result, semiconductor business sales and earnings were significantly below the previous year's results. Accordingly, electronic devices reported sales of ¥11,024 million, down 15.8% year on year, and an operating loss of ¥10 million, compared with operating income of ¥104 million in the same quarter of the previous year.」
Electronic devices continued to report lower sales and a shift from operating income in the same quarter of the previous year to an operating loss, due to the slowdown in capital investment demand in China and the decline in the number of vehicle models adopting the products. - FY2020-Q1From profit to lossAnnual report
「In the semiconductor business, the slowdown in the Chinese economy led to a further decline in capital investment demand and progress in inventory adjustments, resulting in weak performance for semiconductors used in factory automation equipment and electronic components. Liquid crystal panels for automotive information equipment also declined substantially because fewer vehicle models adopted them following model changes. As a result, semiconductor business revenue and profit fell significantly below the previous year's results. Electronic devices reported revenue of ¥5,454 million, down 18.7% from the same period of the previous year, and an operating loss of ¥48 million, compared with operating profit of ¥61 million in the same quarter of the previous year.」
The slowdown in the Chinese market, lower capital investment demand, inventory adjustments and a decline in the number of vehicle models adopted led to lower revenue for electronic devices, which turned from operating profit in the same period of the previous year to an operating loss. - FY2019Deterioration in resultsAnnual report
「Although the company expanded its lineup of strategically promoted products, including products sourced overseas, to improve profitability, results fell below the previous year because of lower semiconductor business revenue. As a result, electronic devices reported revenue of ¥25,168 million, down 15.1% from the previous fiscal year, and operating profit of ¥260 million, down 6.1%.」
While the company advanced profitability improvements by expanding its lineup of strategic products, lower semiconductor revenue caused revenue and operating profit in the electronic devices business to fall below the previous year. - FY2019-Q2AdvancedAnnual report
「Profit significantly exceeded the previous year because of an expanded product lineup and contributions from relatively high-margin projects. As a result, electronic devices reported revenue of ¥1,309.1 million, down 3.3% year on year, and operating profit of ¥104 million, up 714.6%.」
Electronic devices revenue declined 3.3% year on year, while operating profit rose 714.6% because of the expanded product lineup and relatively high-margin projects. - FY2019-Q1AdvancedAnnual report
「In the semiconductor business, inventory adjustments were seen in custom LSIs for factory automation equipment and some electronic components, but overall performance remained solid as devices for air-conditioning equipment and power-related products performed well amid continued capital investment demand. In the information equipment business, embedded products centered on server equipment and memory storage products performed steadily. Profit significantly exceeded the previous year because of an expanded product lineup and contributions from high-margin projects. As a result, electronic devices reported revenue of ¥671.2 million, up 5.2% from the same period of the previous year, and operating profit of ¥61 million, compared with an operating loss of ¥47 million in the same period of the previous year.」
An expanded product lineup and high-margin projects lifted electronic devices revenue 5.2% year on year, while operating results turned from a loss of ¥47 million in the same period of the previous year to a profit of ¥61 million. - FY2018AdvancedAnnual report
「As a result, electronic devices reported revenue of ¥2,965.2 million, up 21.8% from the previous fiscal year, and operating profit of ¥276 million, up 627.8%.」
The structural transformation of the electronic devices business made tangible progress, with full-year revenue up 21.8% and operating profit up 627.8%. - FY2016First statedAnnual report
「To steadily execute the structural transformation of the electronic devices business, we will strengthen organizational functions, review the management structure, and make concentrated investments in human resources development.」
The company explicitly identified the structural transformation of the electronic devices business from its traditional business model as a challenge.