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Results presentation8174NIPPON GAS CO.,LTD.Retail

Earnings Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

For the first half of the fiscal year ending March 2027, operating profit was ¥4.4 billion, down ¥600 million year on year, as narrower electricity margins and lower sales volumes offset growth in LP gas and the platform business. The full-year plan remains unchanged at gross profit of ¥75.5 billion, operating profit of ¥20.0 billion and net profit of ¥14.0 billion.

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Scale
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¥100 million (year-on-year decrease in operating profit)
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Contents of this document

Results presentationSecond quarter (interim period) of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit¥44 100 million-12.0%
Net income¥29 100 million-14.7%
Selling, general and administrative expenses¥269 100 million
Results for the three months of the current quarter
Operating profit
¥6 100 million
Full-year earnings forecast
Gross profit
¥755 100 million
Operating profit
¥200 100 million
Net income
¥140 100 million
EPS
¥44.1post-split basis
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。First-half SG&A expenses were 48% of the full-year plan. By category, personnel expenses were 48%, depreciation and amortization 48%, customer acquisition costs 44%, IT expenses 49%, fees and other expenses 50%, gas-related equipment and other items 66%, gas cylinder transportation costs 43%, repair expenses 45%, taxes and dues and business taxes 52%, communications expenses 42%, advertising and promotion expenses 42%, travel and transportation expenses 57%, call center expenses 40% and other expenses 48%.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half operating profit was ¥300 million above plan, while SG&A expenses were controlled within plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • LP gas gross profit+¥1.4 billion
  • Electricity gross profit-¥2.3 billion
  • City gas gross profit±¥0 billion
  • Platform gross profit+¥200 million
  • Selling, general and administrative expenses-¥100 million (year on year)
  • Electricity margin impact-¥1.9 billion
  • Lower electricity sales volume-¥0.4 billion
  • City gas: equipment and other+¥200 million
  • City gas: gas-¥0.2 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Crude oil CIF price: first-half actual$103 /b
  • Crude oil CIF price: second-half plan$95 /b
  • Exchange rate: first-half actual¥159 /US$
  • Exchange rate: second-half plan¥160 /US$
  • LP gas CP price: assumption from November 2026 onward680 US$/t
  • Average temperature in the second halfAssumed to be higher than in the previous fiscal year
New initiatives
  • Strengthen web marketing and community partnerships in the electricity business
  • Strengthen and expand customer touchpoints in the city gas business
  • Investment in growth areas, centered on acquisitions of LP gas customer territories
  • Expand the service area for opening and closing gas services on the safety platform
Key KPIsA metric the company considers important as a management benchmark.
  • LP gas customers1,062 thousand cases
    yoy+21 thousand accounts
  • City gas customers616 thousand cases
    yoy+18 thousand
  • Electricity customers417 thousand cases
    yoy+22 thousand
  • Electricity bundling rate24.9 %
    yoy+0.8 percentage points
  • Number of platform users+3 companies new
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • LP gas margin164 Yen/kg
    yoy+¥1
  • LP gas sales volume: household69 thousand tonnes
    yoy+4 thousand tonnes
  • LP gas sales volume: commercial51 thousand tonnes
    yoy+2 thousand tonnes
  • City gas sales volume: household52 thousand tonnes
    yoy±0 kt
  • City gas sales volume: commercial92 thousand tonnes
    yoy+2 thousand tonnes
  • Electricity margin¥1.1 /kWh
    yoy-¥2.7
  • Electricity sales volume704 GWh
    yoy-107GWh
  • Hybrid water heater unit sales3.5 thousand units
    yoy+0.5 thousand units
Segment results
  • LP gas
    Gross profit¥213 100 million
  • City gas
    Gross profit¥83 100 million
  • Electricity
    Gross profit¥8 100 million
  • Platforms
    Gross profit¥9 100 million
Medium-term management plan targets
  • Gross profit
    Target fiscal yearFiscal year ending March 2029
    Target value¥82.0 billion
    Comparison with actual resultsActual for the fiscal year ended March 2026: ¥76.8 billion
  • Operating profit
    Target fiscal yearFiscal year ending March 2029
    Target value¥25 billion
    Comparison with actual resultsActual for the fiscal year ended March 2026: ¥21.3 billion
  • Net income
    Target fiscal yearFiscal year ending March 2029
    Target value¥17.5 billion
    Comparison with actual resultsActual for the fiscal year ended March 2026: ¥14.8 billion
Financial targets
  • ROE
    Actual results for the fiscal year ending March 202622%
    Target for the fiscal year ending March 2029Approximately 22%
  • ROIC
    Actual results for the fiscal year ending March 202613%
    Target for the fiscal year ending March 2029Approximately 13%
  • Equity ratio
    Actual results for the fiscal year ending March 202641%
    Target for the fiscal year ending March 2029Approximately 40%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • -¥900 million
    DetailsCity gas lagged-period impact
  • Gross profit: ¥1.8 billion below plan
    DetailsLagged-period impact of higher fuel prices on electricity
  • City gas lagged-period impact factored in at ¥900 million
    DetailsHigher energy prices due to heightened tensions in the Middle East
Market Size / Share
Ranked No. 11 in electricity sales volume in the low-voltage sector (June 2026 actual)
Annual Dividend
Fiscal year ending March 2027
Annual dividend amount¥36.8 per share post-split basis
Acquisition of treasury shares
For the fiscal year ending March 2027, share buybacks will be carried out flexibly under the policy of maintaining an equity ratio of 40%. The specific purchase amount, number of shares and period are Not disclosed.
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Operating profit¥44 100 million (YoY -12.0%)
Net income¥29 100 million (YoY -14.7%)
Selling, general and administrative expenses¥269 100 million
Results for the three months of the current quarterOperating profit ¥6 100 million
Full-year earnings forecastGross profit ¥755 100 million / Operating profit ¥200 100 million / Net income ¥140 100 million / EPS ¥44.1 (post-split basis)
Progress against full-year forecastFirst-half SG&A expenses were 48% of the full-year plan. By category, personnel expenses were 48%, depreciation and amortization 48%, customer acquisition costs 44%, IT expenses 49%, fees and other expenses 50%, gas-related equipment and other items 66%, gas cylinder transportation costs 43%, repair expenses 45%, taxes and dues and business taxes 52%, communications expenses 42%, advertising and promotion expenses 42%, travel and transportation expenses 57%, call center expenses 40% and other expenses 48%.
Self-assessment against the planFirst-half operating profit was ¥300 million above plan, while SG&A expenses were controlled within plan.
Segment resultsSegment LP gas / Gross profit ¥213 100 million / yoy_pct 7, Segment City gas / Gross profit ¥83 100 million / yoy_pct 0, Segment Electricity / Gross profit ¥8 100 million / yoy_pct -74.2, Segment Platforms / Gross profit ¥9 100 million / yoy_pct 28.6
Breakdown of Factors Affecting the ChangeFactors LP gas gross profit / Amount +¥1.4 billion, Factors Electricity gross profit / Amount -¥2.3 billion, Factors City gas gross profit / Amount ±¥0 billion, Factors Platform gross profit / Amount +¥200 million, Factors Selling, general and administrative expenses / Amount -¥100 million (year on year), Factors Electricity margin impact / Amount -¥1.9 billion, Factors Lower electricity sales volume / Amount -¥0.4 billion, Factors City gas: equipment and other / Amount +¥200 million, Factors City gas: gas / Amount -¥0.2 billion
Key KPIsIndicator name LP gas customers / Value 1,062 thousand cases / yoy +21 thousand accounts, Indicator name City gas customers / Value 616 thousand cases / yoy +18 thousand, Indicator name Electricity customers / Value 417 thousand cases / yoy +22 thousand, Indicator name Electricity bundling rate / Value 24.9 % / yoy +0.8 percentage points, Indicator name Number of platform users / Value +3 companies (new) / yoy Not disclosed
Unit price and quantity metricsIndicator name LP gas margin / Value 164 Yen/kg / yoy +¥1, Indicator name LP gas sales volume: household / Value 69 thousand tonnes / yoy +4 thousand tonnes, Indicator name LP gas sales volume: commercial / Value 51 thousand tonnes / yoy +2 thousand tonnes, Indicator name City gas sales volume: household / Value 52 thousand tonnes / yoy ±0 kt, Indicator name City gas sales volume: commercial / Value 92 thousand tonnes / yoy +2 thousand tonnes, Indicator name Electricity margin / Value ¥1.1 /kWh / yoy -¥2.7, Indicator name Electricity sales volume / Value 704 GWh / yoy -107GWh, Indicator name Hybrid water heater unit sales / Value 3.5 thousand units / yoy +0.5 thousand units
Assumptions Underlying the Business OutlookItem Crude oil CIF price: first-half actual / Value $103 /b, Item Crude oil CIF price: second-half plan / Value $95 /b, Item Exchange rate: first-half actual / Value ¥159 /US$, Item Exchange rate: second-half plan / Value ¥160 /US$, Item LP gas CP price: assumption from November 2026 onward / Value 680 US$/t, Item Average temperature in the second half / Value Assumed to be higher than in the previous fiscal year
Risk amount incorporated into the outlookDetails City gas lagged-period impact / Amount -¥900 million, Details Lagged-period impact of higher fuel prices on electricity / Amount Gross profit: ¥1.8 billion below plan, Details Higher energy prices due to heightened tensions in the Middle East / Amount City gas lagged-period impact factored in at ¥900 million
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2029 / Item Gross profit / Target value ¥82.0 billion / Comparison with actual results Actual for the fiscal year ended March 2026: ¥76.8 billion, Target fiscal year Fiscal year ending March 2029 / Item Operating profit / Target value ¥25 billion / Comparison with actual results Actual for the fiscal year ended March 2026: ¥21.3 billion, Target fiscal year Fiscal year ending March 2029 / Item Net income / Target value ¥17.5 billion / Comparison with actual results Actual for the fiscal year ended March 2026: ¥14.8 billion
Financial targetsItem ROE / Actual results for the fiscal year ending March 2026 22% / Target for the fiscal year ending March 2029 Approximately 22%, Item ROIC / Actual results for the fiscal year ending March 2026 13% / Target for the fiscal year ending March 2029 Approximately 13%, Item Equity ratio / Actual results for the fiscal year ending March 2026 41% / Target for the fiscal year ending March 2029 Approximately 40%
Annual DividendFiscal year ending March 2027 Annual dividend amount ¥36.8 per share (post-split basis) / Interim Not disclosed / End of period Not disclosed
Acquisition of treasury sharesFor the fiscal year ending March 2027, share buybacks will be carried out flexibly under the policy of maintaining an equity ratio of 40%. The specific purchase amount, number of shares and period are Not disclosed.
Market Size / ShareRanked No. 11 in electricity sales volume in the low-voltage sector (June 2026 actual)
New initiativesStrengthen web marketing and community partnerships in the electricity business, Strengthen and expand customer touchpoints in the city gas business, Investment in growth areas, centered on acquisitions of LP gas customer territories, Expand the service area for opening and closing gas services on the safety platform
Items this document does not state (10)
Net SalesOrdinary incomeGross Profit MarginOperating profit marginNumber of stores and locationsNumber of employeesPayout ratioCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

LP gas profit increased on higher household and commercial sales volumes, appropriate pricing and growth in equipment sales. Electricity margins narrowed due to the lagged impact of higher fuel prices, while lower sales volumes caused by colder temperatures also weighed on results. Selling, general and administrative expenses were contained through measures including optimization of customer acquisition costs.

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Earnings Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | NIPPON GAS CO.,LTD. (8174) timely disclosure | Komori