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Latest Update : May 28, 2025

Back to Financial Results (FY3/2025)

Presentation for FY 3/2025 held on May 9, 2025

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One thing I would like to mention so that there is no misunderstanding is that in this M&A, we have said that "we will protect Japanese technology," and protecting Japanese technology and maximizing our shareholder value are parallel and compatible to a certain extent. However, I believe that from a certain price point, there will come a turning point where it may be for sake of Japan, but not for our company.
At that time, my life is now focused on maximizing the shareholder value of this company, so naturally I would like to give priority to that.
Regarding financial discipline, it seems that 10 times operating income is perceived as if it were the absolutely inviolable first article of the Constitution of the company, and we would like to correct this.
Since the fiscal year ended March 2025, the company has grown to a certain size and is in the process of improving its operating margin in response to market demand. With regard to M&As, we have been able to acquire target companies at 10 times operating income because we have focused on acquiring companies that were not very profitable.
After all, the global standard is that if you want to acquire a company with an operating margin of over 15%, you have to offer a reasonable price. That is why we believe that YAGEO is raising the purchase price anyway, within the scope of its duty of care.
We have received many questions about the fact that the acquisition price of SHIBAURA ELECTRONICS is not within 10 times operating income, and we hope you understand that we have clearly explained in our 2024 Integrated Report that we are not overly tied to the financial discipline in M&A.

41page (total 65pages)

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