SUZUDEN CORPORATION

Business Details

This segment performs a trading function, purchasing FA Equipment, Information & Communication Equipment, Electronic & Device Equipment, and Electrical Installation Materials from leading domestic manufacturers and selling them to major domestic companies centered on the electrical equipment, electronic components, and industrial machinery industries. It is the core segment, accounting for approximately 99% of consolidated group sales. Major customers are semiconductor and LCD manufacturing equipment-related companies, led by Tokyo Electron Miyagi Limited, resulting in a high concentration of sales toward that customer group. The segment's competitive advantages include a quality management system based on ISO9001 and a stable delivery structure supported by inventory expansion and enhanced logistics.

Recent Overview

Both sales and profit declined for the second consecutive period, with a significant drop in sales to the major customer

In FY2026 (ending March 2026), the Electrical & Electronic Components Sales Business recorded sales of ¥45,454 million (down 1.8% year on year) and operating income of ¥2,087 million (down 15.3% year on year), representing a decline in both sales and profit. Sales to the major customer, Tokyo Electron Miyagi, fell sharply to ¥4,655 million from ¥6,066 million in the prior period. By product category, Electrical Installation Materials (up 7.3% year on year) and Information & Communication Equipment (up 0.3% year on year) recorded increased sales, while Electronic & Device Equipment (down 12.7% year on year) and FA Equipment (down 3.0% year on year) weighed on results. This was affected by delays in the timing of recovery and a decline stemming from the reversal of large-scale orders in the prior period.

Key Products

Growth Drivers

• Expectations for a recovery in capital investment for semiconductor manufacturing equipment, driven by growing demand for high-performance semiconductors (HBM and GPUs) related to generative AI (an improvement in the order environment is expected in FY2027, ending March 2027)
• Continuation of the sales growth trend in Electrical Installation Materials (up 7.3% year on year in FY2026, ending March 2026) and solid demand in Information & Communication Equipment
• Capturing demand for internet business through expanded functionality and product range on the online store "FAUbon"
• Expanded sales of robotics and IoT products, and total solution proposals for smart factory conversion by the Engineering Department (Robotics & Solutions Section)
• Business expansion through continued focus on the medical equipment, medical facility, and nursing care-related market (medical market)
• Continued reduction of selling, general and administrative expenses through DX promotion and operational efficiency improvements

Risks

• Risk of sales concentration in a specific customer (Tokyo Electron Group): Sales to this group in FY2026 (ending March 2026) were ¥4,655 million (approximately 10% of total sales), a significant decline of over 23% year on year
• High dependence on capital investment trends among semiconductor and LCD manufacturing equipment-related customers: the FA Equipment category declined 3.0% year on year and Electronic & Device Equipment declined 12.7% year on year in FY2026 (ending March 2026)
• Risk of dependence on the major supplier, OMRON Corporation
• Suppression of customers' production and capital investment due to geopolitical risk and the impact of U.S. trade policy (tariffs)
• Risk of delayed recovery timing: downward pressure on results if the recovery in the order environment among major customers is delayed beyond expectations
• Upward pressure on selling, general and administrative expenses: increased costs from continued investment in human capital and upfront investment in DX, among other factors