Expansion of Renewable Energy-Related Construction

「In renewable energy-related markets, where commercialization of biomass power plants, grid-scale storage batteries and other projects is progressing through the use of long-term decarbonized power source auctions and other measures」

「Orders received in the fiscal year amounted to ¥106.593 billion, up 16.5% from the previous fiscal year, due to orders for safety-related work on nuclear facilities, electric furnace-related work at steel plants for decarbonization, replacement of aging waste treatment plants nationwide, electrical equipment work at public facilities, renewal work on publicly operated hydroelectric power facilities, O&M (operation and maintenance) and LTSA (long-term service agreement) work for biomass power plants, and on-site PPA facility and construction work in the solar field.」

「Orders received totaled ¥106,593 million, up 16.5% year on year, driven by orders for safety upgrade work at nuclear facilities, electric furnace-related work at steel mills aimed at decarbonization, rebuilding of waste treatment plants that are aging nationwide, electrical equipment work at public facilities, renewal work for publicly operated hydroelectric facilities, O&M (operation and maintenance) and LTSA (long-term service agreement) services at biomass power plants, and on-site PPA equipment and construction work in the solar power field.」

「Orders received in the six-month interim consolidated period amounted to ¥51.543 billion, up 36.3% year on year, due to orders for safety-related work on nuclear facilities, decommissioning-related work at Fukushima Daiichi Nuclear Power Station, new and expanded substation equipment construction, electric furnace-related work at steel plants for decarbonization, electrical equipment work at public facilities, on-site PPA facility work in the solar field, and renewal work on publicly operated hydroelectric power facilities.」

「In the solar and battery storage fields, the Company is pursuing business development through PPAs (power purchase agreements) for private-sector companies, resilience projects for local governments and packaged proposals combining battery storage. It is also continuing efforts to create businesses involving grid-scale battery storage and PPAs.」

「In the solar field, on-site PPA equipment construction, BCP-related construction, disaster recovery work following torrential rains, and new decarbonization retrofit work for thermal power plants leveraging synergies with the parts manufacturing business of an overseas subsidiary」

「In the green energy field, in addition to providing O&M (operations and maintenance) and LTSA (long-term service agreement) services for biomass power plants at various locations in Japan, the Company is proceeding with the procurement and development of new biomass fuels. It will contribute to achieving a carbon-neutral society and to local communities through the safe and stable operation of power plants.」

「Orders received during the nine-month period ended 31 December amounted to ¥41,269 million, down 18.0% year on year. Although the Company received orders for electrical work at large public facilities, new substation construction, electrical instrumentation work for factory facilities, substation equipment renewal work and biomass fuel sales, orders declined for construction work at biomass and solar power plants and other projects. Meanwhile, revenue increased 11.3% year on year to ¥63,648 million, supported by construction work at biomass power plants, hydropower plant renovation work, progress in decommissioning-related work at the Fukushima Daiichi Nuclear Power Station, and electricity sales revenue from the Group’s own biomass power plant, which began commercial operation in October 2022.」

「Orders received in the six-month period ended 30 September amounted to ¥27.790 billion, up 9.6% year on year, due to orders for electrical equipment work at large public facilities, new substation construction, solar power and battery storage facility installation, and biomass fuel sales.」

「Revenue was ¥20,295 million, up 6.8% year on year, due to decommissioning-related work at the Fukushima Daiichi Nuclear Power Station, progress in repair and maintenance work for thermal power generation equipment, and revenue from electricity sales at the Group’s own biomass power plant, which began commercial operation in October of the previous year.」

「In the green energy field, through contracts for the construction of biomass power plants at various locations in Japan, as well as O&M (operations and maintenance) and LTSA (long-term service agreement) services, the Company will contribute to achieving a carbon-neutral society and to local communities through the safe and stable operation of power plants.」

「Order intake for the cumulative first three quarters amounted to ¥5.0336 billion, down 38.3% year on year. Although construction work for solar and biomass power plants increased, this was more than offset by declines in contracted long-term operation and maintenance services for biomass power plants and work related to the decommissioning of the Fukushima Daiichi Nuclear Power Station.」

「Against this backdrop, based on its Medium-Term Management Plan for fiscal 2021–fiscal 2023, the Group carried out an organizational restructuring in July and pursued green energy as a new core business aimed at identifying and resolving regional and social issues, in order to enhance corporate value through strengthening its core businesses and further expanding into new business domains.」

「In the hydropower generation field, the Company began work last September on the Tottori Prefectural Government Hydropower Plant Redevelopment Project, Japan’s first PFI project using a concession scheme for a publicly operated hydropower facility. The Company is proceeding with the construction with the aim of contributing reliably to improved power generation efficiency, which is a customer need, while taking the surrounding and river environments into consideration, utilizing local companies and seeking coexistence with the local community.」

「Orders received during the nine-month period ended 31 December increased to ¥81,636 million, compared with ¥42,199 million in the same period of the previous year, due to increases in construction work for thermal power generation equipment transferred from Hitachi Plant Construction Co., Ltd., decommissioning-related work at the Fukushima Daiichi Nuclear Power Station, and long-term operations and maintenance contracts for biomass power plants.」

「For construction work involving cogeneration systems, air-conditioning equipment and renewable energy equipment such as solar, small-scale hydropower, wind, biomass and geothermal facilities, the Company proposes an integrated one-stop service ranging from EPC (engineering, procurement and construction) through O&M (operations and maintenance),」

「In the hydropower generation field, the Company is further strengthening its renewable energy business through the Tottori Prefectural Government Hydropower Plant Redevelopment Project, drawing on the technical capabilities it has accumulated over more than 70 years since its establishment. The Company is participating in the project from civil engineering and building construction at the power plant through the installation of turbines and generators.」

「Although construction schedules for solar power generation equipment projects had been extended due to natural disasters that occurred in prior fiscal years, orders received during the nine-month period ended 31 December increased to ¥42,199 million, up 10.8% year on year, due to an increase in construction work for thermal power generation equipment and other projects.」

「Revenue was ¥25,750 million, down 9.4% year on year, due to a decrease in construction work for thermal power generation equipment, solar power generation equipment and other projects.」

「Net sales amounted to ¥1.2622 billion, down 10.1% year on year, as progress in nuclear power plant safety-related work was more than offset by declines in construction work for solar and thermal power generation facilities and other projects.」

「Although some decommissioning-related work at the Fukushima Daiichi Nuclear Power Station was extended, revenue increased to ¥44,878 million, up 4.5% year on year, due to an increase in construction work for thermal power generation equipment and solar power generation equipment.」

「Against this backdrop, under its fiscal 2018 Medium-Term Management Plan, the Company identified “sustainable growth and expansion through diversification of the earnings structure and maximization of organizational capabilities” as its highest priority. While maintaining its existing business domains, it worked to establish bases for overseas operations and participate in biomass power generation projects in order to expand its business domains.」

「Orders for cogeneration facilities, solar power generation facilities and other projects increased, including orders for nuclear power plant safety-related work, but」

「Specifically, the Group sought to expand orders and sales and made every effort to generate profits through inspection and maintenance of thermal, nuclear and hydroelectric power plants; decommissioning-related work at Fukushima Daiichi Nuclear Power Station and reconstruction-related work in Fukushima; safety-related work at nuclear power plants; and work involving large-scale thermal power generation facilities, cogeneration facilities, telecommunications facilities and large-scale solar power generation facilities.」

「The company expanded its work in large-scale thermal power generation facilities, cogeneration facilities, large-scale solar power generation facilities and other areas, making a group-wide effort to generate profit.」

「Specifically, the Group sought to expand its business and made every effort to generate profits through inspection and maintenance of thermal, nuclear and hydroelectric power plants, decommissioning-related work at Fukushima Daiichi Nuclear Power Station and reconstruction-related work in Fukushima, safety-related work at nuclear power plants, and work involving large-scale thermal power generation facilities, cogeneration and large-scale solar power generation facilities.」

「Net sales amounted to ¥1.072 billion, down 35.0% year on year, due to the postponement of solar power generation equipment installation work and certain nuclear power plant projects.」

「To broaden its business scope, the company will actively market construction work for power generation facilities operated by new electricity suppliers and other providers nationwide, cogeneration systems, air-conditioning facilities, and renewable energy facilities including geothermal, small hydro, biomass and wind power, rather than limiting its focus to solar power.」

「The company made a group-wide effort to undertake large-scale solar power generation equipment installation work and other projects.」

「Net sales in the energy and industrial business amounted to ¥2.9923 billion, an increase of ¥433.9 million from the same period a year earlier, due to increases in construction work related to power generation equipment at petrochemical plants and solar power generation equipment installation work, among other projects.」

「Net sales in the energy and industrial business amounted to ¥1.6085 billion, an increase of ¥464.9 million from the same period a year earlier, due to increases in construction work for thermal power plants operated by new electricity suppliers and solar power generation equipment installation work, among other projects.」

「The company made a group-wide effort to undertake construction work related to power generation equipment at petrochemical plants, large-scale solar power generation equipment installation work, and post-construction O&M (operation and maintenance), among other projects.」

「The company made a group-wide effort to undertake large-scale solar power generation equipment installation work and other projects.」

「The company made a group-wide effort to undertake construction work related to power generation equipment at chemical plants, large-scale solar power generation equipment installation work and other projects.」

「The company also made every effort to undertake renewable energy-related construction work and other projects.」