Expanding the Revenue Base Through Multiple Transactions

「The group’s customers with ongoing relationships increased by 48 thousand, compared with an increase of 64 thousand in the previous consolidated fiscal year, to 3,471 thousand. TLC members increased by 59 thousand, compared with an increase of 53 thousand in the previous consolidated fiscal year, to 1,326 thousand.」

「During the current interim consolidated fiscal period, the group’s customers with ongoing relationships increased by 41 thousand, compared with an increase of 28 thousand in the same period of the previous year, to 3,399 thousand. TLC members increased by 27 thousand, compared with an increase of 30 thousand in the same period of the previous year, to 1,242 thousand.」

「During the current consolidated fiscal year, the group’s customers with ongoing relationships increased by 59 thousand, compared with an increase of 106 thousand in the previous consolidated fiscal year, to 3,358 thousand. TLC members increased by 56 thousand, compared with an increase of 71 thousand in the previous consolidated fiscal year, to 1,214 thousand.」

「During the cumulative third-quarter period of the current consolidated fiscal year, the group’s customers with ongoing relationships increased by 41 thousand, compared with an increase of 64 thousand in the same period of the previous year, to 3,341 thousand. TLC members increased by 43 thousand, compared with an increase of 53 thousand in the same period of the previous year, to 1,201 thousand.」

「During the cumulative second-quarter period of the current consolidated fiscal year, the group’s customers with ongoing relationships increased by 28 thousand, compared with an increase of 49 thousand in the same period of the previous year, to 3,328 thousand. TLC members increased by 30 thousand, compared with an increase of 36 thousand in the same period of the previous year, to 1,188 thousand.」

「As a result, during the current consolidated fiscal year, the number of the group’s customers with ongoing relationships increased by 106 thousand to 3,299 thousand, compared with an increase of 95 thousand in the previous consolidated fiscal year, while TLC member service members increased by 71 thousand to 1,158 thousand, compared with an increase of 107 thousand in the previous consolidated fiscal year. In June 2022, we acquired shares in Wood Recycle, which operates industrial waste treatment and wood chip manufacturing businesses, making it a consolidated subsidiary, and in October we acquired shares in J-Support and Okinawa Cable Network, making both companies consolidated subsidiaries.」

「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.」

「As a result, during the cumulative second-quarter period of the current consolidated fiscal year, the number of the group’s customers with ongoing relationships increased by 49 thousand to 3,242 thousand, compared with an increase of 26 thousand in the same period of the previous year, while TLC member service members increased by 36 thousand to 1,123 thousand, compared with an increase of 44 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 September, we signed agreements to acquire shares in each of J-Support (Chuo-ku, Fukuoka) and Okinawa Cable Network (Naha, Okinawa), achieving steady progress in expanding our business base.」

「As a result, during the cumulative first-quarter period of the current consolidated fiscal year, the number of the group’s customers with ongoing relationships increased by 19 thousand to 3,213 thousand, compared with an increase of 9 thousand in the same period of the previous year, while TLC member service members increased by 19 thousand to 1,106 thousand, compared with an increase of 19 thousand in the same period of the previous year. In June, we acquired shares in Wood Recycle (Gero, Gifu), which operates industrial waste treatment and wood chip manufacturing businesses, making it a consolidated subsidiary. We achieved steady progress in expanding our business base.」

「As a result of actively pursuing customer acquisition while thoroughly implementing infection-control measures, at the end of the third quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 43 thousand from the end of the previous consolidated fiscal year to 3,142 thousand, while TLC member service members had increased by 87 thousand to 1,066 thousand.」

「As a result of actively pursuing customer acquisition while thoroughly implementing infection-control measures, at the end of the second quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 26 thousand from the end of the previous consolidated fiscal year to 3,125 thousand, while TLC member service members had increased by 44 thousand to 1,023 thousand.」

「As a result of actively pursuing customer acquisition while thoroughly implementing infection-control measures, including remote sales, at the end of the first quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 9 thousand from the end of the previous consolidated fiscal year to 3,108 thousand, while TLC member service members had increased by 19 thousand to 998 thousand.」

「As a result of actively adopting remote sales, including disseminating information and holding business meetings via the web, the number of points of contact with customers increased. At the end of the third quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 60 thousand from the end of the previous consolidated fiscal year to 3,063 thousand, while TLC member service members had increased by 62 thousand to 958 thousand.」

「We also actively pursued remote sales, including newly using the web to disseminate information and hold business meetings. At the end of the second quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 39 thousand from the end of the previous consolidated fiscal year to 3,042 thousand, while TLC member service members had increased by 42 thousand to 938 thousand.」

「In our sales activities, we used communication tools such as web conferences suited to each counterparty, while requiring advance appointments and thorough infection-control measures for visits. As a result, at the end of the first quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 9 thousand from the end of the previous consolidated fiscal year to 3,012 thousand, while TLC member service members had increased by 22 thousand to 917 thousand.」

「At the end of the current consolidated fiscal year, customers with ongoing relationships had increased by 101 thousand from the end of the previous consolidated fiscal year to 3,003 thousand, while TLC member service members had increased by 91 thousand to 896 thousand.」

「At the end of the third quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 31 thousand from the end of the previous consolidated fiscal year to 2,933 thousand, while TLC member service members had increased by 70 thousand to 875 thousand.」

「In promoting our businesses, we continued to pursue strategies to expand the earnings base, including deepening existing businesses, M&A and entering new businesses, under the themes of realizing the TLC concept and “ABCIR+S.” At the end of the second quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 16 thousand from the end of the previous consolidated fiscal year to 2,918 thousand, while TLC member service members had increased by 47 thousand to 852 thousand.」

「Against this backdrop, the current consolidated fiscal year is the third year, or midpoint, of the four-year medium-term management plan Innovation Plan 2020 “JUMP.” During the cumulative first-quarter period of the current consolidated fiscal year, we continued to pursue strategies to expand our earnings base, including deepening existing businesses, M&A and entering new businesses, under the themes of realizing the TLC concept and “ABCIR+S.” At the end of the first quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 5 thousand from the end of the previous consolidated fiscal year to 2,907 thousand, while TLC member service members had increased by 26 thousand to 830 thousand.」

「In addition to realizing the TLC concept, which had long been a core theme, we began working during the current consolidated fiscal year on the utilization of new service technologies to connect with the next generation, “ABCIR+S,” as a second theme, with the aim of achieving further growth. In October 2018, we launched a smartphone app to improve the convenience of TLC member services. At the end of the third quarter of the current consolidated fiscal year, customers with ongoing relationships had increased by 22 thousand from the end of the previous consolidated fiscal year to 2,898 thousand, while TLC member service members had increased by 84 thousand to 783 thousand.」

「During the cumulative second-quarter period of the current consolidated fiscal year, the second year of the medium-term management plan Innovation Plan 2020 “JUMP,” we continued to work to expand our business base through geographic expansion of existing businesses, M&A and entry into new businesses.」

「As a result of M&A conducted in the previous consolidated fiscal year and customer acquisition efforts in each business, the number of the group’s customers with ongoing relationships increased by 313 thousand from the end of the same quarter of the previous year to 2,883 thousand, up 12.2% year on year from 2,570 thousand. Net sales increased 4.8% year on year to ¥44,553 million, while operating profit increased 11.0% to ¥2,390 million, ordinary profit increased 12.9% to ¥2,487 million, and profit attributable to owners of the parent increased 21.2% to ¥1,432 million. At the end of the first quarter of the current consolidated fiscal year, the number of customers with ongoing relationships stood at 2,883 thousand, an increase of 7 thousand from the end of the previous consolidated fiscal year.」

「To achieve sustained revenue growth, our group will differentiate itself from competitors by enhancing each service and maintaining price advantages, while strengthening its customer base and expanding its service areas through M&A. We will also actively promote cross-selling to further increase economies of scale from our customer base and raise ARPU per customer, while strengthening points of contact with customers through multiple customer relationships and working to prevent cancellations.」

「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.” As a result of these initiatives, the number of customers with ongoing relationships stood at 2,839 thousand at the end of the third quarter of the current consolidated fiscal year, an increase of 275 thousand from the end of the previous consolidated fiscal year, while the number of TLC member service members stood at 669 thousand, an increase of 83 thousand.」

「In addition to increasing the number of customers with ongoing relationships, which has long been a business theme, and promoting multiple customer relationships based on the TLC concept (short for Total Life Concierge, hereinafter the same),」

「We adopted the promotion and realization of the TLC concept (short for Total Life Concierge, hereinafter the same), whose objectives are “multiple customer relationships” and “building strong relationships with customers,” as a key theme. During the current consolidated fiscal year, we added electricity to services including gas, ISP, CATV and Aqua, and actively worked to provide services suited to customer needs, from standalone offerings to bundled sales, including package discounts and points awarded according to the number of contracts.」

「The TLC concept promoted by our group (short for Total Life Concierge, hereinafter the same) is based on the themes of “multiple customer relationships” and “building strong relationships with customers.” Accordingly, electricity services were added in April to the lineup of existing residential services, including gas, ISP and CATV, and in addition to customer acquisition activities, we focused on acquiring customers through bundled residential services, including package discounts and points awarded according to the number of contracts.」

「The TLC concept promoted by our group (short for Total Life Concierge, hereinafter the same) is based on the themes of “multiple customer relationships” and “building strong relationships with customers.” Accordingly, electricity services were added in April to the lineup of existing residential services, including gas, ISP, CATV and Aqua.」

「We added electricity to our existing residential services, including gas, ISP, CATV, Aqua and security services, and made expanding the earnings base through multiple customer relationships and providing these services to customers through the “Total Life Concierge” concept (the TLC concept), under which services are offered through one-stop, one-contract arrangements, a group-wide theme. We worked diligently to advance these initiatives.」