Declining Quarterly Revenue and Segment Losses in the Renewable Energy Business

「Because the group became a single-segment company in the energy-saving business following the exclusion of 株式会社エールケンフォー, formerly a subsidiary, from consolidation in the previous consolidated fiscal year, segment-by-segment disclosures have been omitted from the cumulative first quarter.」

「In the Energy-Saving-Related Business, revenue was ¥1,801 million, up ¥832 million, or 85.9%, from the previous consolidated fiscal year, and the segment loss was ¥211 million, compared with a segment loss of ¥277 million in the previous consolidated fiscal year. In the Renewable Energy Business, revenue was ¥471 million, up ¥159 million, or 51.4%, from the previous consolidated fiscal year, and segment income was ¥50 million, compared with a segment loss of ¥138 million in the previous consolidated fiscal year.」

「In the energy-saving business, revenue was ¥1,030 million, up ¥503 million, or 95.6%, year on year, while the segment recorded a loss of ¥222 million, compared with a segment loss of ¥180 million in the same period of the previous year. (Renewable Energy Business) In the renewable energy business, revenue was ¥467 million, up ¥180 million, or 62.9%, year on year, while segment profit was ¥52 million, compared with a segment loss of ¥120 million in the same period of the previous year.」

「In the energy-saving business, revenue was ¥643 million, up ¥357 million, or 124.8%, year on year, and the segment loss was ¥237 million, compared with a segment loss of ¥161 million in the same period of the previous year. (Renewable energy business) In the renewable energy business, revenue was ¥464 million, up ¥221 million, or 91.5%, year on year, and segment profit was ¥53 million, compared with a segment loss of ¥4 million in the same period of the previous year.」

「In the energy-saving-related business, we primarily operate an ESCO business that provides an integrated service covering surveys of customer companies' energy-saving plans, plan development, design and construction, and verification of effects, as well as sales of various energy-saving products. For the first quarter of the current consolidated fiscal year, net sales were ¥289 million, an increase of ¥202 million, or 234.0%, year on year, and the segment loss (operating loss) was ¥148 million, compared with a segment loss of ¥124 million in the same period of the previous year. In the renewable energy business, we promote planning, design, sales, construction and consulting services for the introduction of renewable energy facilities, including solar power generation and biogas plants. For the first quarter of the current consolidated fiscal year, net sales were ¥242 million, an increase of ¥80 million, or 49.7%, year on year, and segment profit (operating profit) was ¥52 million, compared with a segment loss of ¥3 million in the same period of the previous year.」

「In the energy-saving-related business, active efforts to acquire new clients resulted in higher net sales than in the previous year. However, segment profit remained negative for the second consecutive year due to higher cost ratios and increased costs associated with strengthening the management structure and hiring qualified personnel. As a result, net sales were ¥969 million, up ¥424 million, or 78.1%, year on year, and the segment loss (operating loss) was ¥277 million, compared with an operating loss of ¥215 million in the same period of the previous year. In the renewable energy business, sales and profit fell short of plan compared with the previous year because the projects initially expected were not concluded. As a result, net sales were ¥311 million, down ¥933 million, or 75.0%, year on year, and the segment loss (operating loss) was ¥138 million, compared with an operating loss of ¥227 million in the same period of the previous year.」

「In the energy-saving-related business, although revenue increased substantially from the previous fiscal year, revenue for the nine-month cumulative period of the current consolidated fiscal year was ¥526 million, up ¥158 million year on year, or 43.1%, while the segment loss was ¥180 million, compared with a segment loss of ¥89 million in the same period of the previous year, resulting in an operating loss.」

「In the Energy-Saving-Related Business, revenue was ¥286 million, up ¥65 million, or 29.6%, year on year, and the segment loss was ¥161 million, compared with a segment loss of ¥63 million in the same period of the previous year. (Renewable Energy Business) In the Renewable Energy Business, revenue was ¥242 million, up ¥116 million, or 92.7%, year on year, and the segment loss was ¥4 million, compared with a segment loss of ¥77 million in the same period of the previous year.」

「In the Energy-Saving-Related Business, revenue was ¥86 million, down ¥5 million, or 6.4%, year on year, and the segment loss (operating loss) was ¥124 million, compared with a segment loss of ¥43 million in the same period of the previous year. In the Renewable Energy Business, revenue for the first quarter of the current consolidated fiscal year was ¥162 million, up ¥115 million, or 244.3%, year on year, and the segment loss (operating loss) was ¥3 million, compared with a segment loss of ¥55 million in the same period of the previous year.」

「In the energy conservation-related business, although revenue increased substantially from the previous fiscal year, revenue for the nine months ended 31 December was ¥367 million, up ¥182 million, or 98.7%, year on year, while the segment loss was ¥89 million, compared with a segment loss of ¥88 million in the same period of the previous year, resulting in an operating loss. In the renewable energy business, the Group focused primarily on the installation of solar power generation facilities and the sale of equipment. However, grid connection of some facilities was delayed beyond schedule, with some projects pushed into the fourth quarter. Revenue was ¥316 million, down ¥785 million, or 71.3%, year on year, and the segment loss was ¥137 million, compared with a segment profit of ¥35 million in the same period of the previous year.」

「In the renewable energy business, the company focused on promoting sales of solar power generation equipment installation work and equipment. However, delays in connecting the equipment to the grid resulted in some projects being unable to be recognized as revenue during the second quarter of the current consolidated fiscal year, leading to results below plan. As a result, revenue was ¥108 million, down ¥717 million, or 86.9%, year on year, and segment loss was ¥83 million, a decline of ¥135 million year on year.」

「In the renewable energy business, revenue for the cumulative first quarter was ¥29 million, down ¥482 million, or 94.3%, year on year, and the segment loss (operating loss) was ¥64 million, compared with segment profit of ¥40 million in the same period of the previous year.」

「The energy-saving-related business was actively pursued during the consolidated fiscal year under review together with Yell Kenfour Co., Ltd., a subsidiary of newly acquired subsidiary Yell Co., Ltd. However, sales and profits both fell short of plan because there were few large projects and some planned projects did not reach contract execution. As a result, revenue was ¥301 million, down ¥119 million year on year, or 28.3%, and the segment loss, or operating loss, was ¥33 million, compared with segment operating income of ¥13 million in the same period of the previous year.」

「In the renewable energy business, orders for the installation of solar power generation facilities, including those undertaken by Aile Kenfour Co., Ltd., which became a consolidated subsidiary, progressed as planned. Although revenue increased year on year, the business did not achieve profitability. As a result, revenue was ¥1,101 million, up ¥94 million, or 9.3%, year on year, and the segment recorded a loss of ¥42 million, compared with a segment loss of ¥47 million in the same period of the previous year.」

「In the renewable energy business, some solar power generation facility installation projects planned for completion by the end of September were completed in the second half, resulting in performance below plan. Revenue was ¥825 million, up ¥96 million, or 13.2%, year on year, and the segment profit was ¥2 million, compared with a segment loss of ¥12 million in the same period of the previous year.」

「In the renewable energy business, revenue for the three months ended was ¥511 million, down ¥158 million, or 23.7%, year on year, and the segment loss (operating loss) was ¥1 million, compared with a segment loss of ¥16 million in the same period of the previous year.」