Consider and execute M&A targeting 4 priority areas below as | |
---|---|
Light Sources Business | A. Lamp (Development of new markets) |
B. Solid state light sources | |
Equipment Business | C. Optical equipment (Medical) |
D. Imaging equipment (Total solution) |
Past M&A deals (FY14~FY16) | |||
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Name of acquisition target company | Area | Business outline or purpose of M&A | |
May 2014 | Arsenal Media | D. Imaging total solution | Digital content production |
Oct. 2014 | Oclaro Japan, Inc. (demerger of business) | B. Solid state light sources | Acquisition of semiconductor device technology |
Dec. 2014 | BG Radia | D. Imaging total solution | Audio system |
Jan. 2015 | Coolux GmbH | D. Imaging total solution | Imaging processor |
Apr. 2015 | MAXRAY INC. | B. Solid state light sources | LED illumination |
Nov. 2015 | Allure Global Solutions, Inc. | D. Imaging total solution | Digital signage-related |
Jan. 2016 | American Green Technology, Inc. | A. Lamp(Development of new markets) | Lamps for space hygiene and sales channel |
Feb. 2016 | PD-LD, Inc. | B. Solid state light sources | Laser light source for imaging-related |
Apr. 2016 | sunsorit Co., Ltd | C. Medical | Skin care |
Q1
No. Basically, that profit is not included in the target. The \15.0 billion target represents the profit target that we must achieve by executing various initiatives other than M&As.
Q2
We are mainly targeting the following four areas, which are positioned as growth fields:
We are actively undertaking research to identify investment projects by utilizing information from the Marketing & Innovation Division within USHIO INC. and Group companies, in addition to referrals from outside the Company.
Q3
M&As are premised on carefully deliberated negotiations with counterpart companies. Therefore, we do not have any information we can announce at this time regarding the implementation schedule for individual projects or the timing of recouping investments in those projects. However, based on the judgment that M&As are essential to driving further growth in the USHIO Group, we are actively researching and reviewing prospective projects at all times.
Q4
We are giving the highest priority to the allocation of funds to M&A projects. We envision a roughly equal balance of allocations to dividends, capital investment and M&As.
Q5
We recognize that improving ROE is one of our highest priorities. We seek to improve ROE by steadily achieving expansion in operating income by implementing M&As using our abundant financial assets. We will also flexibly buy back shares by constantly gauging the best timing for stock buybacks.