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Presentation materials on financial results3150grems,Inc.Electricity and gas

Supplementary Materials for the First-Quarter Financial Results for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue increased 7.2% year on year and operating income increased 11.5%, with both reaching record highs for a first quarter. The operating margin also improved, owing to higher revenue from the retail electricity business and lower selling, general and administrative expenses resulting from the downsizing of the former SHP business.

Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
205
Millions of yen (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,532 million+7.2%
Operating profit¥1,987 million+11.5%
Ordinary income¥1,988 million+11.1%
Net income¥1,333 million+10.7%
Gross Profit Margin
Rate34.9%
Year-on-year change (points)Down 3.2 percentage points from 38.1% in the same period of the prior year
Operating profit margin
Rate23.3%
Year-on-year change (points)Improved by 0.9 percentage points from 22.4% in the same period of the prior year
Results for the three months of the current quarter
Net Sales¥8,532 million
Gross profit¥2,974 million
Operating profit¥1,987 million
Ordinary income¥1,988 million
Quarterly net income¥1,333 million
Full-year earnings forecast
Net Sales¥37,174 million
Gross profit¥11,871 million
Operating profit¥7,900 million
Ordinary income¥7,928 million
Net income for the current fiscal year¥5,376 million
ES business revenue¥13,876 million
Retail electricity business revenue¥23,297 million
ES business operating income¥5,390 million
Retail electricity business operating income¥3,243 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales23.0%
ES business revenue25.3%
Retail electricity business revenue21.6%
Gross profit25.1%
ES business gross profit26.3%
Retail electricity business gross profit22.9%
Operating profit25.2%
ES business operating income26.3%
Retail electricity business operating income23.3%
Corporate and shared administrative expenses25.4%
Ordinary income25.1%
Net income for the current fiscal year24.8%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue+¥569 million
  • Cost of sales+¥114 million
  • Selling Expenses+¥131 million
  • Personnel and recruitment expenses+¥21 million
  • Other SG&A expenses+¥21 million
  • Operating profitChanged from ¥1,781 million to ¥1,987 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Planned electricity sales volume for the retail electricity business in the fiscal year ending March 2027727 GWh
  • Market price assumptions¥18.53 /kWh
  • Bilateral power procurement price assumptions¥12.36 /kWh
  • Planned capacity contribution charge¥1.32 /kWh
  • Planned annual operating rate of storage facilities for the fiscal year ending March 202752.7 %
New initiatives
  • Expand sales of commercial solar power systems and cross-sell storage batteries
  • Bring 6 grid-scale storage facilities into operation sequentially
  • Hedge risk in the retail electricity business through proprietary fuel-cost adjustments, bilateral power procurement and futures trading
  • Sales strategy focused on selectively accepting orders from customers with low load factors
Key KPIsA metric the company considers important as a management benchmark.
  • Retail electricity business contracts77 Thousands of contracts
    Year on year against the same period last year+18.5%
  • Electricity sold by the retail electricity business185 GWh
    Year on year against the same period last year+8.3%
  • Cumulative track record of commercial solar power projects6,300 Engagements
  • Customer-target market penetration rate1 %
  • Number of grid-scale storage facilities under development6 locations
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Contracts77 Thousands of contracts
    Year on year against the same period last year+18.5%
  • Electricity sold185 GWh
    Year on year against the same period last year+8.3%
  • Market Prices¥16.91 /kWh
    Year on year against the same period last year¥10.85/kWh
  • Bilateral power procurement price¥11.74 /kWh
    Year on year against the same period last year¥13.58/kWh
Segment results
  • ES business
    Net Sales¥3,511 million
    Year-on-year change in revenue-9.1
    Operating profit¥1,418 million
    Year-on-year operating profit growth5.7
  • Retail electricity business
    Net Sales¥5,020 million
    Year-on-year change in revenue22.4
    Operating profit¥754 million
    Year-on-year operating profit growth4.1
Financial targets
Actual equity ratio: 71.1%. Financial target: not disclosed
Market Size / Share
  • Low-voltage electricity contract market6,000,000 Engagements
  • Target-screening market1,200,000 Engagements
  • Prospective customer market600,000 Engagements
  • Our cumulative track record6,300 Engagements
  • Customer-target market penetration rate and share1 %
Number of stores and locations
Development is under way at 6 grid-scale storage facilities. Iga BP and Toyohashi BP II are in commercial operation, while Toyohashi BP has begun trial operation. Number of stores: not disclosed
Annual Dividend
Interim dividend of ¥28 + year-end dividend of ¥65, for an annual dividend of ¥93 (forecast)
Payout ratio
Approximately 40%
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥8,532 million (YoY +7.2%)
Operating profit¥1,987 million (YoY +11.5%)
Ordinary income¥1,988 million (YoY +11.1%)
Net income¥1,333 million (YoY +10.7%)
Gross Profit MarginRate 34.9% / Year-on-year change (points) Down 3.2 percentage points from 38.1% in the same period of the prior year
Operating profit marginRate 23.3% / Year-on-year change (points) Improved by 0.9 percentage points from 22.4% in the same period of the prior year
Results for the three months of the current quarterNet Sales ¥8,532 million / Gross profit ¥2,974 million / Operating profit ¥1,987 million / Ordinary income ¥1,988 million / Quarterly net income ¥1,333 million
Full-year earnings forecastNet Sales ¥37,174 million / Gross profit ¥11,871 million / Operating profit ¥7,900 million / Ordinary income ¥7,928 million / Net income for the current fiscal year ¥5,376 million / ES business revenue ¥13,876 million / Retail electricity business revenue ¥23,297 million / ES business operating income ¥5,390 million / Retail electricity business operating income ¥3,243 million
Progress against full-year forecastNet Sales 23.0% / ES business revenue 25.3% / Retail electricity business revenue 21.6% / Gross profit 25.1% / ES business gross profit 26.3% / Retail electricity business gross profit 22.9% / Operating profit 25.2% / ES business operating income 26.3% / Retail electricity business operating income 23.3% / Corporate and shared administrative expenses 25.4% / Ordinary income 25.1% / Net income for the current fiscal year 24.8%
Segment resultsSegment ES business / Net Sales ¥3,511 million / Year-on-year change in revenue -9.1 / Operating profit ¥1,418 million / Year-on-year operating profit growth 5.7, Segment Retail electricity business / Net Sales ¥5,020 million / Year-on-year change in revenue 22.4 / Operating profit ¥754 million / Year-on-year operating profit growth 4.1
Breakdown of Factors Affecting the ChangeFactors Revenue / Amount +¥569 million, Factors Cost of sales / Amount +¥114 million, Factors Selling Expenses / Amount +¥131 million, Factors Personnel and recruitment expenses / Amount +¥21 million, Factors Other SG&A expenses / Amount +¥21 million, Factors Operating profit / Amount Changed from ¥1,781 million to ¥1,987 million
Key KPIsIndicator name Retail electricity business contracts / Value 77 Thousands of contracts / Year on year against the same period last year 18.5 Thousands of contracts, Indicator name Electricity sold by the retail electricity business / Value 185 GWh / Year on year against the same period last year 8.3 GWh, Indicator name Cumulative track record of commercial solar power projects / Value 6,300 Engagements / Year on year against the same period last year Not disclosed, Indicator name Customer-target market penetration rate / Value 1 % / Year on year against the same period last year Not disclosed, Indicator name Number of grid-scale storage facilities under development / Value 6 locations / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Contracts / Value 77 Thousands of contracts / Year on year against the same period last year 18.5 Thousands of contracts, Indicator name Electricity sold / Value 185 GWh / Year on year against the same period last year 8.3 GWh, Indicator name Market Prices / Value ¥16.91 /kWh / Year on year against the same period last year ¥10.85/kWh, Indicator name Bilateral power procurement price / Value ¥11.74 /kWh / Year on year against the same period last year ¥13.58/kWh
Number of stores and locationsDevelopment is under way at 6 grid-scale storage facilities. Iga BP and Toyohashi BP II are in commercial operation, while Toyohashi BP has begun trial operation. Number of stores: not disclosed
Assumptions Underlying the Business OutlookItem Planned electricity sales volume for the retail electricity business in the fiscal year ending March 2027 / Value 727 GWh, Item Market price assumptions / Value ¥18.53 /kWh, Item Bilateral power procurement price assumptions / Value ¥12.36 /kWh, Item Planned capacity contribution charge / Value ¥1.32 /kWh, Item Planned annual operating rate of storage facilities for the fiscal year ending March 2027 / Value 52.7 %
Financial targetsActual equity ratio: 71.1%. Financial target: not disclosed
Annual DividendInterim dividend of ¥28 + year-end dividend of ¥65, for an annual dividend of ¥93 (forecast)
Payout ratioApproximately 40%
Market Size / ShareItem Low-voltage electricity contract market / Value 6,000,000 Engagements, Item Target-screening market / Value 1,200,000 Engagements, Item Prospective customer market / Value 600,000 Engagements, Item Our cumulative track record / Value 6,300 Engagements, Item Customer-target market penetration rate and share / Value 1 %
New initiativesExpand sales of commercial solar power systems and cross-sell storage batteries, Bring 6 grid-scale storage facilities into operation sequentially, Hedge risk in the retail electricity business through proprietary fuel-cost adjustments, bilateral power procurement and futures trading, Sales strategy focused on selectively accepting orders from customers with low load factors
Items this document does not state (9)
Selling, general and administrative expensesSelf-assessment against the planNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited higher unit prices in the retail electricity business due to rising market prices amid the situation in the Middle East, decreases in selling expenses, personnel expenses and recruitment expenses accompanying the reduction in sales in the former SHP business, and contributions from the retail electricity business and grid-scale storage batteries.

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Supplementary Materials for the First-Quarter Financial Results for the Fiscal Year Ending March 2027 | grems,Inc. (3150) timely disclosure | Komori