New business development leveraging transaction track records, expertise, and IT capabilities with local governments

「Other businesses include services not included in other reportable segments, such as the corporate hometown tax support business, the vacant-house measures-related business akisol and Machiiro. Revenue for the consolidated fiscal year was ¥306.104 million, up 49.6% year on year, and the segment loss was ¥26.708 million, compared with a segment loss of ¥5.538 million in the previous fiscal year.」

「これらの取組みは官民連携事業を営むジチタイワークスとの連携実績が大半を占めることから、当社グループは、ジチタイワークスと地方創生テクノロジーラボの経営統合を行うことが、シナジーの最大化と事業成長の加速にとって最善であり、ひいては当社グループの企業価値向上に資するものと判断し、本合併を実施することといたしました。」

「Other businesses include services not included in other reportable segments, such as the corporate hometown tax support business, the vacant-house measures-related business akisol (アキソル) and Machiiro. Revenue for the interim consolidated accounting period was ¥95.942 million, up 84.1% from the previous interim consolidated accounting period, and the segment loss was ¥26.544 million, compared with a segment loss of ¥26.721 million in the previous interim consolidated accounting period.」

「In the fiscal year ended March 2024, we newly established a business division to promote securing funding for local governments and regional revitalisation through the use of the corporate hometown tax system. Our group’s corporate hometown tax support business began in September 2021. Leveraging our group’s strengths, we will approach local governments and companies nationwide and seek to generate profit by encouraging donations from a broader range of companies. In the consolidated fiscal year under review, this business was classified as Other in the segment information.」

「In the corporate hometown tax support business, since the service was launched in 2021, the total amount of donations supported through the end of December 2023 was approximately ¥610 million, and the number of contracted local governments was 207. In December 2023, Jichitai Ad, the subsidiary promoting this business, entered into a business alliance with The Bank of Saga. This will promote the use of the corporate hometown tax system by local governments in Saga Prefecture.」

「To expand our service areas, in April 2023 we accepted a training secondee from a local government, Setagaya Ward, Tokyo, in the first such initiative for our group. We also entered into business alliance agreements with ULURU.CO.,LTD. (head office: Chuo-ku, Tokyo; Representative Director and President: Hoshi Tomoya (星 知也)) and CHANGE Holdings,Inc. (head office: Minato-ku, Tokyo; Representative Director and Executive Officer President: Fukudome Taishi (福留 大士)) to promote greater efficiency in local-government procurement operations, and are actively working to promote public-private partnerships.」

「Under this capital and business alliance agreement, we agreed with CHANGE Holdings,Inc. to undertake the following initiatives, centred on promoting digital transformation in local governments. ① Leveraging our group’s marketing and sales capabilities for local governments, expand sales of the CHANGE Group’s DX services and products for local governments, with the aim of ultimately developing a local-government DX platform. ② Leverage the CHANGE Group’s DX expertise to promote the transformation and evolution of our group’s business model through digital technology. ③ Leverage our group’s marketing and sales capabilities and the CHANGE Group’s expertise in the individual hometown tax business to advance collaboration in the corporate hometown tax business. ④ Create new local-government-related businesses and services by promoting personnel exchanges between the CHANGE Group and our group.」

「We are also actively expanding B-to-G solutions that connect the needs of local governments and private companies, leveraging the relationships our group has built with local governments. As part of this effort, in July 2022 we began supporting the introduction to local governments of “Oikura,” a reuse platform operated by MarketEnterprise Co.,Ltd., through our collaboration with that company.」

「We believe it is important to consider strategic partnerships with business partners to create further business value in these businesses.」

「As a further new initiative, the company entered into a “Proposal-Based Naming Rights Partnership Agreement” with Kitakyushu City and decided to participate in the “proposal-based naming rights” programme, jointly with the city, to publicise the programme, support sponsor companies and conduct proposals.」

「Other businesses include the corporate hometown tax support service, which publicises the corporate hometown tax system to companies and provides tax payment guidance to local governments that have outsourced these services, as well as “akisol (アキソル),” an integrated platform addressing the vacant-house problem, for which pilot operations have begun.」

「We also launched the new “SMART FR CONSULTING” service, expanding from support for soliciting advertising to the creation and utilisation of media consulting. Since the service was launched in June 2021, we have already received an engagement from Fukuoka City.」

「In the energy business, we operate the electricity sales business under the service brand “GENEWAT (ジェネワット),” based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic.” As a result, revenue for the cumulative second-quarter period was ¥13,314.990 million, and segment profit was ¥390.726 million.」

「In the energy business, based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic,” we are operating the electricity sales business under the service brand “GENEWAT (ジェネワット)” and steadily expanding our operations. As a result, revenue for the cumulative first-quarter period was ¥6,837.024 million, up 356.9% year on year, and segment profit was ¥762.303 million, up 3,875.5%.」

「As a result, revenue for the fiscal year was ¥12,277.425 million, up 769.6% year on year, and segment profit was ¥1,068.656 million, up 1,035.8%.」

「In the energy business, based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic,” we are promoting the new electricity sales service “GENEWAT (ジェネワット)” and steadily expanding sales. As a result, revenue for the cumulative third-quarter period was ¥6,774.260 million, up 3937.9% year on year, and segment profit was ¥250.705 million, compared with a segment loss of ¥11.724 million in the same period of the previous year.」

「In the energy business, based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic,” we are promoting the new electricity sales service “GENEWAT (ジェネワット)” and steadily expanding sales. As a result, revenue for the cumulative second-quarter period was ¥4,042.157 million, up 6463.1% year on year, and segment profit was ¥161.548 million, compared with a segment loss of ¥14.362 million in the same period of the previous year.」

「In the energy business, based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic,” we are promoting the new electricity sales service “GENEWAT (ジェネワット)” and steadily expanding sales. As a result, revenue for the cumulative first-quarter period was ¥1,560.478 million, up 8834.4% year on year, and segment profit was ¥83.712 million, compared with a segment loss of ¥7.040 million in the same period of the previous year.」

「As a result, revenue for the fiscal year was ¥1,411.907 million, and segment profit was ¥94.007 million.」

「In the energy business, based on our desire to help local governments reduce expenses by proposing the new value that “electricity can also be generic,” we fully launched the new electricity sales service “GENEWAT (ジェネワット)” and have steadily expanded sales as one of the pillars of our new businesses. As a result, revenue for the cumulative third-quarter period was ¥167.765 million, and the segment loss was ¥11.765 million.」

「In the energy business, in addition to the electricity agency sales business launched in the previous fiscal year, we have begun electricity retail operations in which we procure electricity and supply it directly to local governments and others. As one of the pillars of our new businesses, sales have been expanding steadily.」

「In the energy business, in addition to the electricity agency sales business launched in the previous fiscal year, we have begun electricity retail operations in which we procure electricity and supply it directly to local governments and others. As one of the pillars of our new businesses, sales have been expanding steadily.」

「March 2018 Completed registration as a retail electricity provider and launched the “GENEWAT” electricity retail service to help local governments reduce expenses」

「In business development, we entered the electricity retail business in the current third-quarter accounting period, with the primary aim of helping local governments reduce expenses.」

「Specifically, with the goals of restoring the profitability of existing businesses, enhancing their added value and creating new earnings pillars through new business development, we have increased investment in recruitment to prevail in the intensifying competition for talent. We have also newly established functions related to business development, marketing and IT, and have deployed management resources accordingly.」

「January 2017 Launch of the Business Process Consulting Service, which provides solutions to local-government challenges」

「To achieve independent growth going forward, we believe it is important, as a leading PPS operator, to respond nimbly to changes in the environment surrounding local governments, including government policies, while effectively using our transaction track record with local governments, expertise and sales capabilities, pursuing efficient commercialisation through IT, and developing new services that contribute to local governments securing their own-source revenue.」