Medium-Term Vision: “Innovation & Governance for 2020”

「This is the final year of Medium-Term Vision 2025. As a result of our efforts toward the transformation into an integrated energy business, we achieved the qualitative target of transforming and strengthening our business base, but did not achieve the quantitative targets. However, the basic policy remains unchanged in the next medium-term vision, Medium-Term Vision 2028 (Shift Up), under which we have adopted the slogan "Shift Up" to express our intention to raise the pace another level.」

「In accordance with the policy of Medium-Term Vision 2025, the three-and-a-half-year plan formulated in November 2021, our group continued to focus on the following initiatives. 1) Began reviewing our business structure and allocation of management resources. 2) Further intensified marketing to customers in the extra-high-voltage and high-voltage markets. 3) Arranged the commercialization of grid-scale battery storage. 4) Secured financing and took other measures for core businesses. The current consolidated fiscal year is the final year of Medium-Term Vision 2025. Toward the stated goal of transforming into an integrated energy company, the entire group continues to work primarily on items 2) and 3) above.」

「As a result, the number of customers in the extra-high-voltage and high-voltage markets, measured by billing account, reached 500 in May 2023, up from 400 in March 2023, approximately six months after marketing began, and exceeded 550 as of the end of March 2024.」

「Regarding the latter, we began developing a grid-scale battery storage business in DAX合同会社, in which 3 companies, including our company, make silent partnership investments. During the 6-month period ended the second quarter, we recorded operating revenue of ¥289 million from arrangement services and other activities related to the business development, and ¥60 million in non-operating expenses, representing losses on investments accounted for under the equity method. Operations are scheduled to begin in fiscal 2025.」

「As a result, the number of customers in the extra-high-voltage and high-voltage markets, measured by billing account, increased from 400 in March 2023, approximately six months after marketing began, to more than 500 in May 2023.」

「In Medium-Term Vision 2025, formulated in November 2021, we stated our intention to accelerate the transformation into an integrated energy company and were considering strategic investments and the replacement of business assets as part of a selection and concentration strategy.」

「In Medium-Term Vision 2025, formulated in November 2021, we stated our intention to accelerate the transformation into an integrated energy company and were considering strategic investments and the replacement of business assets as part of a selection and concentration strategy.」

「We determined that investing the capital obtained through this share transfer in businesses directly related to the integrated energy business would contribute to increasing shareholder value for our group.」

「The following 6 items are priority initiatives. 1. Create a "new normal for electricity use." 2. Get ahead of the era in which electricity is "generated, stored and used intelligently." 3. Expand businesses using storage batteries. 4. Strengthen support for establishing local power companies, including support for regional decarbonization. 5. Further expand the management services business for retail electricity providers. 6. Promote infrastructure investment in renewable energy, storage batteries and other areas supporting a decarbonized, carbon-neutral society, funded through financing using funds and other vehicles.」

「In November 2021, we formulated the medium-term vision, "Deepening and Evolution of the Business," covering the period from the fiscal year ending March 2022 through the fiscal year ending March 2025. Our group will celebrate its 30th anniversary in September 2022. We regard the three and a half years covered by this medium-term vision as a second founding period, accelerate our transformation into an integrated energy company and pursue substantial growth. Specifically, based on the promotion of DX (digital transformation) and our strengths, we will deepen and evolve our businesses and achieve priority initiatives toward GX (green transformation). We also set 3 quantitative targets for the fiscal year ending March 2025: consolidated operating revenue of at least ¥20 billion, profit before income taxes of at least ¥700 million, and net assets per share of at least ¥500.」

「Against this backdrop, in the fiscal year ended March 2017, we defined the desired state of our group in 2020, the fiscal year ending March 2020, and formulated the four-year medium-term vision, "Innovation & Governance for 2020," based on the following principles. We completed the third year of the vision in the fiscal year ended March 2019.」

「In the fiscal year ended March 2017, we defined the desired state of our group in 2020, the fiscal year ending March 2020, and formulated the four-year medium-term vision, "Innovation & Governance for 2020," based on the following principles. ① We will manage the company with an emphasis on strengthening and balancing growth through shareholder returns and reinvestment. ② We aim to become a company that can contribute to society through our 4 businesses. ③ Our group will actively pursue innovation and seek to enhance the governance structure that supports it.」