Worth reading
47Recurring
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
114
¥100 million (year-on-year increase in net sales)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥485 100 million+31.0%
Operating profit¥6 100 million-56.6%
Ordinary income¥12 100 million +132.3%profit before tax, IFRS
Net income¥8 100 million profit for the quarter attributable to owners of the parent
Selling, general and administrative expenses¥28 100 million
Gross Profit Margin
Rate7.7%
Operating profit margin
Rate1.3%
Results for the three months of the current quarterRevenue: ¥48.5 billion, gross profit: ¥3.7 billion, SG&A expenses: ¥2.8 billion, operating profit: ¥600 million, profit before tax: ¥1.2 billion, and quarterly profit attributable to owners of the parent: ¥800 million. High-voltage electricity sales volume: 664 GWh; low-voltage electricity sales volume: 227 GWh; high-voltage contracted capacity: 1,076 MW; and low-voltage supply accounts: 273,000.
Full-year earnings forecast
Net Sales¥240.6 billion
Gross margin¥19.1 billion
Selling, general and administrative expenses¥13.3 billion
Operating profit¥7.8 billion
Income before taxes¥9.2 billion
Profit for the period attributable to owners of the parent¥5.4 billion
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。
Net Sales20.2%
Gross margin19.5%
Selling, general and administrative expenses21.2%
Operating profit8.1%
Income before taxes13.4%
Profit for the period attributable to owners of the parent15.9%
Retail and trading operating profit22.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress on the retail business KPIs is on track. High-voltage electricity sales volume is broadly in line with the plan, while high-voltage contracted capacity, low-voltage electricity sales volume and the number of low-voltage accounts are above plan. Total electricity sales volume is broadly tracking the plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Factors increasing revenue: higher market prices and unit selling prices, increased external fuel sales volumes, and improved operating rates in the overseas business. Factors decreasing operating profit: higher procurement costs in the retail business, derivative losses, and the reversal of development fees recorded in the same period of the previous fiscal year. Factor increasing profit before tax: the impact of the weaker yen.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Credit price60 US$/t-CO2
- Long-term decarbonized power source auction capacity reservation agreement20 Year
New initiatives
- Investment decision for the third grid-scale battery storage project, with an output capacity of 2 MW and storage capacity of 8 MWh, in Kameoka, Kyoto Prefecture
- Commencement of primary balancing capacity trading in the balancing market at the Kushima Battery Storage Facility in Kushima, Miyazaki Prefecture
- Winning bid by イーレックス新潟 (provisional name) in the long-term decarbonized power source auction
- Execution of a memorandum of understanding with Samsung C&T Japan for an integrated decarbonization project in Niigata
- Selection of the 50 MW biomass power generation project in Cambodia for equipment subsidies under the Joint Crediting Mechanism (JCM)
- Biomass co-firing test plan at the Nonsong coal-fired power plant in Vietnam
- Launch of a Shareholder Benefit Program
Key KPIsA metric the company considers important as a management benchmark.
- High-voltage electricity sold664 GWhYear on year against the same period last year+5.3%
- High-voltage contracted capacity1,076 MWYear on year against the same period last year+4.1%
- Low-voltage electricity sold227 GWhYear on year against the same period last year-2.2%
- Number of low-voltage supply contracts27.3 ten thousand itemsYear on year against the same period last year+1.9%
- Haujan Biomass Power Plant operating rate
Unit price and quantity metricsThese figures show sales broken down by price and volume.
High voltage: electricity sales volume of 664 GWh, revenue of ¥14.9 billion and contracted capacity of 1,076 MW. Low voltage: electricity sales volume of 227 GWh, revenue of ¥7.9 billion and 273,000 supply accounts.Segment results
Retail and trading
Net Sales¥53.8 billion (up ¥13.1 billion year on year)
Operating profit¥1.6 billion (down ¥300 million year on year)
Power generation and fuel
Net Sales¥13.5 billion (up ¥1.9 billion year on year)
Operating profit¥0 (up ¥600 million year on year)
Overseas expansion
Net Sales¥1.1 billion (up ¥1.0 billion year on year)
Operating profit-¥600 million (down ¥300 million year on year)
Other consolidation adjustments
Net Sales-¥20.0 billion (down ¥4.7 billion year on year)
Operating profit-¥400 million (down ¥100 million year on year)
IFRS adjustments
Operating profit¥0 (down ¥600 million year on year)
| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥485 100 million (YoY +31.0%) |
| Operating profit | ¥6 100 million (YoY -56.6%) |
| Ordinary income | ¥12 100 million (profit before tax, IFRS) (YoY +132.3%) |
| Net income | ¥8 100 million (profit for the quarter attributable to owners of the parent) |
| Gross Profit Margin | Rate 7.7% / Year-on-year change (points) Not disclosed |
| Operating profit margin | Rate 1.3% / Year-on-year change (points) Not disclosed |
| Selling, general and administrative expenses | ¥28 100 million |
| Results for the three months of the current quarter | Revenue: ¥48.5 billion, gross profit: ¥3.7 billion, SG&A expenses: ¥2.8 billion, operating profit: ¥600 million, profit before tax: ¥1.2 billion, and quarterly profit attributable to owners of the parent: ¥800 million. High-voltage electricity sales volume: 664 GWh; low-voltage electricity sales volume: 227 GWh; high-voltage contracted capacity: 1,076 MW; and low-voltage supply accounts: 273,000. |
| Full-year earnings forecast | Net Sales ¥240.6 billion / Gross margin ¥19.1 billion / Selling, general and administrative expenses ¥13.3 billion / Operating profit ¥7.8 billion / Income before taxes ¥9.2 billion / Profit for the period attributable to owners of the parent ¥5.4 billion |
| Progress against full-year forecast | Net Sales 20.2% / Gross margin 19.5% / Selling, general and administrative expenses 21.2% / Operating profit 8.1% / Income before taxes 13.4% / Profit for the period attributable to owners of the parent 15.9% / Retail and trading operating profit 22.1% |
| Self-assessment against the plan | Progress on the retail business KPIs is on track. High-voltage electricity sales volume is broadly in line with the plan, while high-voltage contracted capacity, low-voltage electricity sales volume and the number of low-voltage accounts are above plan. Total electricity sales volume is broadly tracking the plan. |
| Segment results | Retail and trading Net Sales ¥53.8 billion (up ¥13.1 billion year on year) / Operating profit ¥1.6 billion (down ¥300 million year on year) / Power generation and fuel Net Sales ¥13.5 billion (up ¥1.9 billion year on year) / Operating profit ¥0 (up ¥600 million year on year) / Overseas expansion Net Sales ¥1.1 billion (up ¥1.0 billion year on year) / Operating profit -¥600 million (down ¥300 million year on year) / Other consolidation adjustments Net Sales -¥20.0 billion (down ¥4.7 billion year on year) / Operating profit -¥400 million (down ¥100 million year on year) / IFRS adjustments Operating profit ¥0 (down ¥600 million year on year) |
| Breakdown of Factors Affecting the Change | Factors increasing revenue: higher market prices and unit selling prices, increased external fuel sales volumes, and improved operating rates in the overseas business. Factors decreasing operating profit: higher procurement costs in the retail business, derivative losses, and the reversal of development fees recorded in the same period of the previous fiscal year. Factor increasing profit before tax: the impact of the weaker yen. |
| Key KPIs | Indicator name High-voltage electricity sold / Value 664 GWh / Year on year against the same period last year 5.3 GWh, Indicator name High-voltage contracted capacity / Value 1,076 MW / Year on year against the same period last year 4.1 MW, Indicator name Low-voltage electricity sold / Value 227 GWh / Year on year against the same period last year -2.2 GWh, Indicator name Number of low-voltage supply contracts / Value 27.3 ten thousand items / Year on year against the same period last year 1.9 ten thousand items, Indicator name Haujan Biomass Power Plant operating rate / Value Not disclosed / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | High voltage: electricity sales volume of 664 GWh, revenue of ¥14.9 billion and contracted capacity of 1,076 MW. Low voltage: electricity sales volume of 227 GWh, revenue of ¥7.9 billion and 273,000 supply accounts. |
| Assumptions Underlying the Business Outlook | Item Credit price / Value 60 US$/t-CO2, Item Long-term decarbonized power source auction capacity reservation agreement / Value 20 Year |
| New initiatives | Investment decision for the third grid-scale battery storage project, with an output capacity of 2 MW and storage capacity of 8 MWh, in Kameoka, Kyoto Prefecture, Commencement of primary balancing capacity trading in the balancing market at the Kushima Battery Storage Facility in Kushima, Miyazaki Prefecture, Winning bid by イーレックス新潟 (provisional name) in the long-term decarbonized power source auction, Execution of a memorandum of understanding with Samsung C&T Japan for an integrated decarbonization project in Niigata, Selection of the 50 MW biomass power generation project in Cambodia for equipment subsidies under the Joint Crediting Mechanism (JCM), Biomass co-firing test plan at the Nonsong coal-fired power plant in Vietnam, Launch of a Shareholder Benefit Program |
Items this document does not state (12)
Number of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.Revenue increased due to higher electricity market prices and the resulting increase in unit selling prices, higher external fuel sales volumes and improved operating rates in the overseas business. Operating profit declined due to higher procurement costs in the retail business, derivative losses and the reversal of development fees recorded in the same period of the previous fiscal year. Profit before tax and quarterly profit attributable to owners of the parent increased due to the weaker yen.
How to read this page
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