Revenue Expansion in the Total Maintenance Business

「Revenue grew steadily as equipment renewal progressed among customers operating multiple locations in the total maintenance services business, and large-scale equipment renewal projects that had entered their second phase progressed smoothly in the maintenance services business.」

「Meanwhile, in periodic maintenance, the value of orders declined due to changes in the policies of certain customers,」

「As a result, during the six months ended the current interim period, in the total maintenance services business, which mainly serves customers operating multiple locations, the company worked to review its service delivery structure to maintain and improve sustainable service quality in light of changes in the status of transactions with certain customers during the previous fiscal year. Meanwhile, sales in the maintenance services business increased following orders for large-scale equipment replacement projects.」

「As a result, during the six months ended the current interim period, the number of orders increased, particularly from major customers in each industry, and the value of orders for total maintenance services and maintenance services, which are recurring businesses, also increased.」

「The steady progress of total maintenance services for a major business partner and major air-conditioning equipment improvement projects, both launched in the previous fiscal year, made a significant contribution to the increase in sales. In addition, the inclusion of 株式会社兵庫機工 in the consolidated group from 1 December 2022 contributed to sales of ¥14,102.905 million, up 41.5% year on year.」

「The steady progress of total maintenance services for a major business partner and major air-conditioning equipment improvement projects, both launched in the previous fiscal year, made a significant contribution to the increase in sales.」

「For the three months ended the first quarter of the current consolidated fiscal year, the steady progress of total maintenance services for a major business partner, which began in the previous fiscal year, and major air-conditioning equipment improvement projects made a significant contribution to the increase in sales. Sales amounted to ¥4,537.397 million, up 68.8% year on year.」

「For the consolidated fiscal year, sales reached a record high of ¥14,733.528 million, up 27.2% year on year, as the launch of total maintenance services for a new major business partner, the results of efforts to strengthen technical capabilities and sales activities during the COVID-19 pandemic, and the steady increase in energy-saving construction work in the high-value-added environmental solutions services business, among other factors, began to bear fruit.」

「Sales amounted to a record high of ¥9,963.349 million, up 14.8% year on year, exceeding sales of ¥8,675.537 million in the third quarter of the fiscal year ended May 2022, due to the steady increase in energy-saving construction work in the high-value-added environmental solutions services business and the launch of total maintenance services for a new major business partner, among other factors.」

「Sales amounted to ¥6,291.975 million, up 16.9% year on year, due to the steady increase in energy-saving construction work in the high-value-added environmental solutions services business and the launch of total maintenance services for a new major business partner, among other factors.」

「By broadening and deepening the technologies held in our total maintenance services, environmental solutions services and maintenance services, and further developing them,」

「As a result, sales for the nine months ended the third quarter of the consolidated fiscal year amounted to ¥8,402.378 million, down 2.9% year on year, and cost of sales amounted to ¥6,535.152 million, down 3.3%. Although the start of services for new major customers and the expansion of maintenance services for existing customers were factors supporting sales, sales declined mainly in the food-service sector due to the impact of COVID-19, as well as sluggish growth in energy-saving construction work and other factors.」

「¥5,799.561 million, up 3.8% year on year, due to the start of services for new major customers, the expansion of maintenance services for existing customers, and increases in whole-building air-conditioning system replacement, store renovation and emergency repair work, among other factors.」

「¥2,938.946 million, up 27.0% year on year, due to the start of services for new major customers and the expansion of maintenance services for existing customers, among other factors.」

「This was mainly because the number of energy-saving construction projects increased compared with the previous consolidated fiscal year and we received orders for new total maintenance contracts.」

「By leveraging our accumulated technical capabilities and maintenance expertise, we need to pursue revenue growth, while increasing the proportion of services performed in-house to improve profit margins.」

「We will increase productivity across the company and expand our total maintenance services.」

「As a result, revenue from the total maintenance business was ¥6,020.833 million, up 50.2% year on year, and segment profit (operating profit) was ¥271.684 million, up 85.2% year on year.」

「On the revenue side, business with the major food supermarket with which transactions began in April 2016 and the major convenience store chains with which transactions began in October 2016 remained strong. On the cost side, we continued to recruit personnel to improve service quality and achieve further expansion. As a result, revenue from the total maintenance business was ¥4,381.268 million, up 63.0% year on year, and segment profit (operating profit) was ¥184.662 million, up 164.3% year on year.」

「As a result, revenue from the total maintenance business was ¥2,842.922 million, up 48.3% year on year, supported by contributions from a major food supermarket with which transactions began in April 2016 and major convenience store chains with which transactions began in October 2016. Segment profit (operating profit) was ¥139.967 million, up 85.1% year on year.」

「As a result, supported by contributions from large-scale projects, including a major food supermarket, stronger relationships with our outsourcing partners and an improved in-house service rate among our service engineers, revenue from the total maintenance business was ¥1,276.654 million, up 37.1% year on year, and segment profit (operating profit) was ¥19.812 million, up 102.3% year on year.」

「To achieve further growth, we believe it is necessary to pursue further revenue growth in the total maintenance business as a strategy, leveraging our accumulated maintenance expertise to centrally manage maintenance for stores and buildings and reduce maintenance and management costs mainly for customers operating multiple stores and buildings.」