Restar Corporation

Business Details

The Device BU consists of two businesses: the Device Business and the EMS Business. The Device Business engages in the sale of semiconductors, electronic components, and related products domestically and internationally, system proposals through combinations of diverse line cards, provision of high-value-added solutions, LSI design development and support, reliability testing contract services, and Global Procurement Trading. The EMS Business provides Electronics Assembly Contract Manufacturing Services incorporating state-of-the-art mounting technology along with procurement, production management, and quality assurance functions at its own factories. This is the Group's largest segment, accounting for approximately 88% of consolidated net sales.

Recent Overview

Device BU net sales grew 12.2% and profit grew 30.8%, driven by strength in AI/data center demand and the FRAMOS Business acquisition.

In FY2026 (ending March 2026), Device BU net sales were ¥555,863 million (up 12.2% year on year), and segment profit was ¥14,669 million (up 30.8% year on year), representing substantial profit growth. In the Device Business, products for generative AI-related data centers performed well in the latter half of the period, contributing factors included the effect of consolidating Restar Dexerials (Hong Kong, Korea, Taiwan), strong performance in consumer products for high-function cameras and PC-related equipment, the launch of new automotive-related businesses, and recovery in industrial equipment demand. On the other hand, the EMS Business saw a decline in net sales to ¥22,057 million (down 23.4% year on year) due to the falloff of effects from new smartphone model installations, among other factors. The FRAMOS Business (acquisition of the Western distributor business and acquisition of RESTAR FRAMOS Technologies Inc. shares) was completed in October 2025, increasing goodwill in the Device BU segment by ¥1,043 million (ending balance of ¥1,763 million). The forecast for FY2027 (ending March 2027) is Device BU net sales of ¥611,000 million (up 9.9% year on year) and segment profit of ¥14,350 million (down 2.2% year on year).

Key Products

Growth Drivers

• Expanding demand for semiconductor products related to generative AI and data centers
• Strong performance of products for high-function cameras and PC-related equipment
• Sales expansion through the consolidation of Restar Dexerials (Hong Kong, Korea, Taiwan)
• Expanded line cards in the West and strengthened global sales through the FRAMOS Business acquisition
• Launch of new businesses for automotive and industrial equipment applications and market recovery
• Further acceleration of Group synergies and promotion of cross-selling strategy
• Expansion of Group synergies based on supply chain management services
• Expansion of business domains through the provision of added value

Risks

• Deterioration in sales mix and gross margin due to delayed recovery in the industrial equipment market
• Deterioration in gross profit due to a sharp appreciation of the yen
• Weakness in the automotive market due to sluggish EV demand
• Risk of global economic slowdown due to trends in U.S. trade policy (tariffs)
• Impact on business performance from geopolitical risk and exchange rate fluctuations
• Fluctuations in consumer demand in the EMS Business (falloff of effects from new smartphone model installations, etc.)
• Goodwill impairment risk associated with M&A (Device BU recorded an impairment loss of ¥152 million in FY2026, with goodwill balance of ¥1,763 million)
• The allocation of the FRAMOS Business acquisition cost is not yet finalized, meaning the goodwill amount is provisional