Worth reading
84Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
7
Year-on-year decrease in ordinary income (%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings briefing transcriptFull fiscal year ending June 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesAmount not stated+5.0%
Ordinary incomeExplained as either ¥1.811 billion or ¥1.84 billion; the figures are inconsistent within the materials-7.0%
Results for the three months of the current quarterFourth-quarter operating margin for the business-use segment was explained as either 24.5% or 25%. Other standalone three-month figures are Not disclosed
Full-year earnings forecast
Net SalesRevenue is expected to increase 21% year on year, but the amount is Not disclosed
Ordinary incomeA slight increase is expected, but the amount is Not disclosed
Home UseA return to segment profit growth is targeted
Renewable energyProfitability is targeted
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both revenue and ordinary income fell short of the previous assumptionsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The company explained that passing through price increases is difficult in home-use services because of intensifying competition, while it is easier in business-use services
- The company explained that Energy Connect collaborates with the Hikari Tsushin Group through a division of roles, and that there has been no capital investment or group integration
- The company explained that the growth strategy combines home-use services and renewable energy, while accumulating expertise in business-use services
- The company regards ¥3 billion in ordinary income in 2030 as one benchmark, but has not specified when it will achieve ¥5 billion
- The renewable energy business covers utility-scale solar, rooftop solar and storage batteries, among other areas, and the company expects to draw down its order backlog and inventory
- The company explained that new-build projects, cross-selling and individual B2C lines are key growth drivers for home-use services
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Home UseApproximately ¥30 million positive
- Business UseApproximately ¥20 million negative
- Renewable energyApproximately ¥90 million negative
- Head office expenses, including M&A-related costsAbove assumptions; amount 非開示
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Number of residential Wi-Fi units80 10,000 units
- Number of renewable energy installations100 Buildings or more
- Average price per renewable energy project4〜500
- B2C premium fixed-line acquisition targetApproximately 10
New initiatives
- Strengthening individual B2C lines, including premium lines
- Expanding cross-selling of network cameras, intercom systems and parcel lockers
- Launching sales of the new product “Smart Call”
- Collaborating with Home Tact on IoT packages and services for apartment buildings
- Renewing the core system around Salesforce
- Launching “CosPower Cube Up,” a subscription-based service with Energy Connect involving the transfer of ownership and maintenance of cubicles
- Collaborating with LA Holdings on communications, IoT and DX for hospice residences and group homes
- Bringing telecommunications construction in-house through M&A and expanding the renewable energy business
Key KPIsA metric the company considers important as a management benchmark.
- Number of residential Wi-Fi units74 10,000 units
- Net increase in residential Wi-Fi units6 10,000 units
- EBITDA8 Hundreds of millions of yenYear on year against the same period last yearDown for the first time in three quarters
- EBITDA margin24 %
- Equity ratio53.3 %Year on year against the same period last yearMaintained at the highest level since listing
- Free cash flow9.8 Hundreds of millions of yenYear on year against the same period last yearPositive for the fourth consecutive year
- Network camera cross-selling ratio17 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Number of residential Wi-Fi units74 10,000 units
- Net increase in units6 10,000 units
- Average price per renewable energy project4〜500
- Number of renewable energy installations100 Buildings or more
Segment results
Home UseRevenue increased, but operating income declined gradually. Approximately ¥30 million above the previous assumptions
Business UseRevenue and profit increased, but fell short of assumptions by approximately ¥20 million
Renewable energyProfit fell approximately ¥90 million short of assumptions. The segment posted a ¥140 million loss in the previous fiscal year
Medium-term management plan targets
- Target fiscal year2,030TargetOrdinary income of ¥3 billion or more
- TargetIncrease ordinary income to ¥5 billion
Financial targets
The company explained that it aims to restore ROE and ROIC, but specific targets are Not disclosedMarket Size / Share
The company referred to the market approaching its limits and intensifying competition, but specific market size and share figures are Not disclosedOrders received and order backlog
The renewable energy order backlog is expanding. Amounts are Not disclosed except for explanations of certain projectsAnnual Dividend
Annual Dividend¥27 per share
Payout ratio
50.2| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | Full fiscal year ending June 2026 |
| Net Sales | 非開示 (YoY +5.0%) |
| Ordinary income | Explained as either ¥1.811 billion or ¥1.84 billion; the figures are inconsistent within the materials (YoY -7.0%) |
| Results for the three months of the current quarter | Fourth-quarter operating margin for the business-use segment was explained as either 24.5% or 25%. Other standalone three-month figures are Not disclosed |
| Full-year earnings forecast | Net Sales Revenue is expected to increase 21% year on year, but the amount is Not disclosed / Ordinary income A slight increase is expected, but the amount is Not disclosed / Home Use A return to segment profit growth is targeted / Renewable energy Profitability is targeted |
| Self-assessment against the plan | Both revenue and ordinary income fell short of the previous assumptions |
| Segment results | Home Use Revenue increased, but operating income declined gradually. Approximately ¥30 million above the previous assumptions / Business Use Revenue and profit increased, but fell short of assumptions by approximately ¥20 million / Renewable energy Profit fell approximately ¥90 million short of assumptions. The segment posted a ¥140 million loss in the previous fiscal year |
| Breakdown of Factors Affecting the Change | Factors Home Use / Amount Approximately ¥30 million positive, Factors Business Use / Amount Approximately ¥20 million negative, Factors Renewable energy / Amount Approximately ¥90 million negative, Factors Head office expenses, including M&A-related costs / Amount Above assumptions; amount Not disclosed |
| Key KPIs | Indicator name Number of residential Wi-Fi units / Value 74 10,000 units / Year on year against the same period last year Not disclosed, Indicator name Net increase in residential Wi-Fi units / Value 6 10,000 units / Year on year against the same period last year Not disclosed, Indicator name EBITDA / Value 8 Hundreds of millions of yen / Year on year against the same period last year Down for the first time in three quarters, Indicator name EBITDA margin / Value 24 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 53.3 % / Year on year against the same period last year Maintained at the highest level since listing, Indicator name Free cash flow / Value 9.8 Hundreds of millions of yen / Year on year against the same period last year Positive for the fourth consecutive year, Indicator name Network camera cross-selling ratio / Value 17 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Indicator name Number of residential Wi-Fi units / Value 74 10,000 units, Indicator name Net increase in units / Value 6 10,000 units, Indicator name Average price per renewable energy project / Value 4〜500, Indicator name Number of renewable energy installations / Value 100 Buildings or more |
| Assumptions Underlying the Business Outlook | Item Number of residential Wi-Fi units / Value 80 10,000 units, Item Number of renewable energy installations / Value 100 Buildings or more, Item Average price per renewable energy project / Value 4〜500, Item B2C premium fixed-line acquisition target / Value Approximately 10 |
| Medium-term management plan targets | Target fiscal year 2,030 / Target Ordinary income of ¥3 billion or more, Target Increase ordinary income to ¥5 billion |
| Financial targets | The company explained that it aims to restore ROE and ROIC, but specific targets are Not disclosed |
| Annual Dividend | Annual Dividend ¥27 per share / Interim and year-end Not disclosed |
| Payout ratio | 50.2 |
| Orders received and order backlog | The renewable energy order backlog is expanding. Amounts are Not disclosed except for explanations of certain projects |
| Market Size / Share | The company referred to the market approaching its limits and intensifying competition, but specific market size and share figures are Not disclosed |
| Key points of the Q&A | The company explained that passing through price increases is difficult in home-use services because of intensifying competition, while it is easier in business-use services, The company explained that Energy Connect collaborates with the Hikari Tsushin Group through a division of roles, and that there has been no capital investment or group integration, The company explained that the growth strategy combines home-use services and renewable energy, while accumulating expertise in business-use services, The company regards ¥3 billion in ordinary income in 2030 as one benchmark, but has not specified when it will achieve ¥5 billion, The renewable energy business covers utility-scale solar, rooftop solar and storage batteries, among other areas, and the company expects to draw down its order backlog and inventory, The company explained that new-build projects, cross-selling and individual B2C lines are key growth drivers for home-use services |
| New initiatives | Strengthening individual B2C lines, including premium lines, Expanding cross-selling of network cameras, intercom systems and parcel lockers, Launching sales of the new product “Smart Call”, Collaborating with Home Tact on IoT packages and services for apartment buildings, Renewing the core system around Salesforce, Launching “CosPower Cube Up,” a subscription-based service with Energy Connect involving the transfer of ownership and maintenance of cubicles, Collaborating with LA Holdings on communications, IoT and DX for hospice residences and group homes, Bringing telecommunications construction in-house through M&A and expanding the renewable energy business |
Items this document does not state (11)
Operating profitNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expenditures
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.Profit was weighed down by the inability to work down inventory inherited from an acquired company in the renewable energy business, the long lead times for new-build projects, which meant construction could not be completed within the fiscal year, the cost burden under the equipment outright-sale model, and higher M&A-related expenses.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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