Entry into the agrivoltaics business

「Revenue increased year on year, supported by strong orders for commissioned projects involving surveys of sites for battery storage facilities and support for power applications, as well as orders for consulting services related to renewable energy, among other factors.」

「Revenue increased from the previous fiscal year, mainly because orders for construction contracts related to energy storage facilities remained firm and commissioned projects involving site surveys and support for power applications for energy storage facilities were carried out.」

「Although commissioned projects involving site surveys and support for power applications for energy storage facilities decreased from the same period of the previous year, revenue increased year on year, mainly because orders for construction contracts related to energy storage facilities contributed to earnings.」

「During the current interim consolidated fiscal period, net sales remained at approximately the same level as in the same period of the previous year, mainly because the company carried out commissioned projects involving surveys of sites for battery storage facilities and support related to power applications. On the cost side, most selling, general and administrative expenses, including personnel expenses and outsourcing expenses, decreased from the same period of the previous year due to the substantial reduction in the scale of the agrivoltaic solar power generation business. As a result, the loss narrowed year on year.」

「During the current consolidated fiscal year, BS ENERGY, which is promoting the business, continued efforts to develop and monetize agrivoltaic power generation facilities. However, because the required period for grid interconnection work was expected to be extended and consensus-building with parties connected to the planned development sites was taking longer than expected, the company abandoned most of the projects initially planned and continued reviewing the development schedule and areas. It also pursued negotiations with prospective buyers to transfer projects at the current stage rather than deliver completed agrivoltaic solar power plants, but the negotiations did not reach agreement. As a result, both net sales and profit fell substantially short of the initial business plan.」

「During the cumulative period through the third quarter, amid these circumstances, the company continued negotiations to build consensus with parties connected to the planned construction site and negotiations to transfer the project with prospective buyers, while considering the transfer at the current stage of a single project combining certain projects expected to be monetized in the fiscal year ending March 2024 and certain projects scheduled for development from 2025 onward, following a review of the development schedule and areas. The company also continued considering the establishment of new renewable energy-related earnings bases.」

「Of the 3 projects expected to be monetized in the fiscal year ending March 2024, the company abandoned 1. It is continuing negotiations to build consensus with parties connected to the planned construction site and negotiations to transfer the project with prospective buyers, while considering the transfer of the project at the current stage. The remaining 2 projects were combined with projects scheduled for development from 2025 onward into a single project. The company is also continuing to pursue renewable energy consulting projects, broker secondary solar power generation projects, meaning the sale and purchase of used solar power plants, and consider the establishment of other new renewable energy-related earnings bases.」

「During the cumulative period through the first quarter of the current fiscal year, 株式会社ＢＳ　ＥＮＥＲＧＹ, which is promoting the business, held briefing sessions for local residents in preparation for concluding land lease agreements and made preparations for concluding power purchase agreements as part of its ongoing efforts to develop and monetize agrivoltaic power generation facilities. However, because the required period for grid interconnection work was expected to be extended and consensus-building with the parties concerned at the planned development sites was taking longer than initially anticipated, the company continued to review the development schedule and development areas. It also continued considering the establishment of new renewable energy-related earnings bases, including securing renewable energy consulting projects and brokering secondary solar power generation projects, meaning the sale and purchase of used solar power plants.」

「An electric power company notified the company that the required construction period for grid interconnection work for certain renewable energy projects was expected to be approximately 10 months longer than originally notified. The company is currently reviewing the development schedule and development areas, while considering the establishment of new earnings bases, including brokering secondary solar power generation projects, meaning the sale and purchase of used solar power plants, and providing renewable energy consulting services.」

「In addition to promoting a business in a new area for the Group and seeking to increase corporate value through business expansion, the company acquired all shares of BS ENERGY, which operates an agrivoltaic solar power generation business, with the aim of contributing to the resolution of social issues such as decarbonization and carbon neutrality. Agrivoltaics involves installing solar panels on supports erected on farmland and sharing sunlight between agriculture and power generation. The company is pursuing initiatives to develop and monetize power generation facilities.」

「Based on a resolution of the Board of Directors meeting held on 30 August 2022, the Company entered into a share exchange agreement with BS ENERGY on that date, carried out the share exchange on 20 September 2022, and made BS ENERGY and its subsidiary 井の三風力発電株式会社 wholly owned subsidiaries.」

「The company decided to establish a capital relationship with the company in question with the aim of building a new earnings base through an aggressive M&A strategy to enter new business areas.」