Executing a Growth Strategy under Innovation Plan 2020 “JUMP”

「As a result, during the cumulative third-quarter period of the current consolidated fiscal year, the number of the group’s customers with ongoing relationships increased by 64 thousand to 3,258 thousand, compared with an increase of 43 thousand in the same period of the previous year, while TLC member service members increased by 53 thousand to 1,139 thousand, compared with an increase of 87 thousand in the same period of the previous year. In June, we acquired shares in Wood Recycle, which operates industrial waste treatment and wood chip manufacturing businesses, making it a consolidated subsidiary. In October, we acquired shares in J-Support, which develops, sells and maintains packaged software for the logistics and warehousing industries, and Okinawa Cable Network, which operates a CATV business, making both companies consolidated subsidiaries. These initiatives produced steady progress in expanding our business base.」

「The Group has been working to expand its operating areas to strengthen its earnings base. During the cumulative third-quarter period, it opened new LP gas sales offices in Kasugai, Aichi Prefecture, and Yokkaichi, Mie Prefecture, in June. In the construction, facilities and real estate business, it acquired shares of 中央電機工事株式会社 (Nagoya, Aichi Prefecture), an electrical contractor, in August and 株式会社イノウエテクニカ (Numazu, Shizuoka Prefecture), which operates a building maintenance business, in November, making both consolidated subsidiaries.」

「The Group has been working to expand its operating areas to strengthen its earnings base. During the cumulative second-quarter period, it opened new LP gas sales offices in Kasugai, Aichi Prefecture, and Yokkaichi, Mie Prefecture, in June. In the construction, facilities and real estate business, it acquired shares of 中央電機工事株式会社 (Nagoya, Aichi Prefecture), an electrical contractor, in August and made it a consolidated subsidiary. This is expected to expand the business in the Chukyo region. Overseas, in June the Group made MIEN TRUNG GAS JOINT STOCK COMPANY and V-GAS PETROLEUM CORPORATION, which operate LP gas sales businesses in the Socialist Republic of Vietnam, equity-method affiliates, thereby entering Vietnam’s LP gas market.」

「Against this backdrop, the Group entered the final year of the 4-year medium-term management plan, Innovation Plan 2020 “JUMP.”」

「Against this backdrop, the current consolidated fiscal year is the third year of the 4-year medium-term management plan, Innovation Plan 2020 “JUMP.” The Group continued to pursue strategies for expanding its earnings base, including developing existing businesses, pursuing M&A and entering new businesses, under the themes of realizing the TLC (Total Life Concierge; the same applies below) concept and “ABCIR+S (ABUSERS).”」

「The Group’s performance for the cumulative third-quarter period benefited from initiatives including customer acquisition and an increase in orders. Revenue rose 2.6% year on year to ¥141,557 million, operating profit rose 31.8% to ¥9,278 million, ordinary profit rose 30.8% to ¥9,478 million, and profit attributable to owners of the parent rose 28.6% to ¥5,103 million. Revenue and each profit item all reached record highs.」

「In July 2019, the Group acquired 99.0% of the issued shares of アムズブレーン (Kita Ward, Okayama City, Okayama Prefecture), which operates a software development business, to strengthen its development capabilities in the information and communications business. In August 2019, after entering into a business alliance agreement, the Group acquired 20.7% of the issued shares of 伊勢崎ガス株式会社 (Isesaki, Gunma Prefecture), which operates city gas and LP gas businesses. In September 2019, it acquired all shares of 日産工業株式会社 (Gero, Gifu Prefecture), which operates a general construction business, to expand its construction and real estate operations.」

「The current consolidated fiscal year is the third year and midpoint of the 4-year medium-term management plan, Innovation Plan 2020 “JUMP.” During the cumulative first-quarter period, the Group continued to pursue strategies for expanding its earnings base, including developing existing businesses, pursuing M&A and entering new businesses, under the themes of realizing the *1 TLC (Total Life Concierge; the same applies below) concept and “*2 ABCIR+S (ABUSERS).” Initiatives during the period included entering Mie Prefecture in April 2019 with its LP gas business. In May, the Group entered into an agreement to acquire the wired cable television business operated by 有限会社シオヤ (Mishima, Shizuoka Prefecture), as well as an agreement to acquire the city gas business operated by Nikaho City, Akita Prefecture.」

「Against this backdrop, during the cumulative third-quarter period of the second year of the medium-term management plan, Innovation Plan 2020 “JUMP,” the Group continued to work on expanding its business base through the development of existing businesses, M&A and entry into new businesses. In September 2018, the Group made ㈱サイズ, which provides self-developed survey systems mainly in the online research field, a new consolidated subsidiary. In October of the same year, the Group received approval from the Kanto Bureau of Economy, Trade and Industry to acquire the gas business operated by Shimonita Town, Gunma Prefecture, and in November it entered into a business alliance agreement with Toell Co.,Ltd. covering delivery services for bottled water.」

「During the cumulative second-quarter period of the second year of the medium-term management plan, Innovation Plan 2020 “JUMP,” the Group continued to work on expanding its business base through regional expansion of existing businesses, M&A and entry into new businesses. In September 2018, the Group made ㈱サイズ, which provides self-developed survey systems mainly in the online research field, a new consolidated subsidiary.」

「The current consolidated fiscal year is the second year of the Group’s medium-term management plan, Innovation Plan 2020 “JUMP.” Since the previous consolidated fiscal year, the Group has pursued initiatives over these 4 years in line with 4 key messages: ① shifting management from defensive to offensive, ② promoting M&A, ③ emphasizing profit growth and ROE, and ④ maintaining a shareholder-focused approach.」

「In May 2017, the Group announced a new medium-term management plan, Innovation Plan 2020 “JUMP,” covering the fiscal year ending March 2020, together with a growth strategy for achieving its targets. The Group is pursuing this growth strategy by increasing customers with ongoing business relationships, diversifying transactions based on the TLC (Total Life Concierge; the same applies below) concept, expanding sales channels through regional expansion, pursuing M&A and entering new business fields, with the aim of achieving further growth. In July 2017, the Group made 東京ベイネットワーク㈱, which operates a CATV business in 2 wards of Tokyo, a new consolidated subsidiary, followed by ㈱テレビ津山 in February 2018.」

「Our group is pursuing growth strategies, including increasing the number of customers with ongoing relationships, expanding multiple customer relationships based on the TLC concept (short for Total Life Concierge, hereinafter the same), expanding sales channels through geographic expansion, and entering new business fields through M&A and other means, with the aim of achieving further growth under the medium-term management plan Innovation Plan 2020 “JUMP.”」

「In May 2017, the Group announced a new medium-term management plan, Innovation Plan 2020 “JUMP,” covering the fiscal year ending March 2020, together with a growth strategy for achieving its targets. In addition to increasing the number of customers with ongoing business relationships and promoting multiple transactions based on the TLC (Total Life Concierge; the same applies below) concept, the Group plans to achieve the targets by expanding sales channels through regional expansion, pursuing M&A expected to generate synergies with existing businesses, and entering new business fields. The Group has begun these initiatives.」